Notes to Accounts of Websol Energy Systems Ltd.

Mar 31, 2025

2.8 Provisions, contingent liabilities and contingent assets

a) Provisions are recognized only when there is a present obligation, as a result of past events and when a reliable estimate of the
amount of obligation can be made at the reporting date and it is probable that an outflow of economic benefits will be required
to settle the obligation. These estimates are reviewed at each reporting date and adjusted to reflect the current best estimates.
If the obligation is expected to be settled more than 12 months after the end of reporting date or has no definite settlement date,
the provision is recorded as non-current liabilities after giving effect for time value of money, if material.

Where discounting is used, the increase in the provision due to the passage of time is recognised as a finance cost.

b) Contingent liability is disclosed for possible obligations which will be confirmed only by future events not wholly within the control
of the Company or present obligations arising from past events where it is not probable that an outflow of resources will be
required to settle the obligation or a reliable estimate of the amount of the obligation cannot be made.

c) Contingent assets are neither recognized nor disclosed except when realisation of income is virtually certain, related asset
is disclosed.

d) Provisions, contingent liabilities and contingent assets are reviewed at each balance sheet date.

2.9 Employee benefits

a) Short-term employee benefits

Short-term employee benefits in respect of salaries and wages, including non-monetary benefits are recognised as an expense
at the undiscounted amount in the Statement of Profit and Loss for the year in which the related service is rendered.

b) Defined contribution plans

Company’s Contributions to Provident fund and superannuation are charged to the Statement of Profit and Loss in the year
when the contributions to the respective funds are due.

c) Defined benefit plans

The Company operates a defined benefit gratuity plan which is unfunded. The liability or asset recognised in the Balance sheet
in respect of gratuity is the present value of the defined benefit obligation as at the balance sheet date less the fair value of plan
assets, if any. The defined benefit obligation is calculated by external actuaries using the projected unit credit method.

The current service cost and interest on the net defined benefit liability / (asset) is recognized in the statement of profit and loss.
Past service cost are immediately recognized in the statement of profit and loss. Actuarial gains and losses net of deferred taxes
arising from experience adjustment and changes in actuarial assumptions are recognized in other comprehensive income in the
period in which they arise.

2.10 Financial instruments, Financial assets, Financial liabilities and Equity instruments

Financial assets and financial liabilities are recognised when the Company becomes a party to the contractual provisions of the
instrument. The Company determines the classification of its financial assets and financial liabilities at initial recognition based on its
nature and characteristics.

Initial Measurement of Financial Instruments:

Financial assets (unless it is a trade receivable without a significant financing component) and financial liabilities are initially measured
at fair value. Transaction costs that are directly attributable to the acquisition or issue of financial assets and financial liabilities (other
than financial assets and financial liabilities at fair value through profit or loss) are added to or deducted from the fair value of the
financial assets or financial liabilities, as appropriate, on initial recognition. Transaction costs directly attributable to the acquisition of
financial assets or financial liabilities at fair value through profit or loss are recognised immediately in the statement of profit and loss.
Trade receivables that do not contain a significant financing component are measured at transaction price.

Subsequent Mesurement:

i) Financial Assets

Financial Assets carried at Amortised Cost (AC):

A financial asset is measured at amortised cost if it is held within a business model whose objective is to hold the asset in order to
collect contractual cash flows and the contractual terms of the financial asset give rise on specified dates to cash flows that are
solely payments of principal and interest on the principal amount outstanding.

Financial Assets at Fair Value through Other Comprehensive Income (FVTOCI):

A financial asset is measured at FVTOCI if it is held within a business model whose objective is achieved by both collecting
contractual cash flows and selling financial assets and the contractual terms of the financial asset give rise on specified dates to
cash flows that are solely payments of principal and interest on the principal amount outstanding.

Investment in equity instruments that are not held for trading are measured at FVTOCI, where an irrevocable election has
been made by management on an instrument-by-instrument basis. These investments are initially measured at fair value
plus transaction costs. Subsequently, they are measured at fair value with gains and losses arising from changes in fair value
recognised in other comprehensive income and accumulated in the reserves. The cumulative gain or loss is not reclassified to
the statement of profit and loss on disposal of the investments. Dividends on such investments are recognised in the statement
of profit and loss unless the dividend clearly represents a recovery of part of the cost of the investment.

Debt investments measured at FVTOCI are subsequently measured at fair value. Interest income under effective interest
method, foreign exchange gains and losses and impairment are recognised in the statement of profit and loss. Other net gains
and losses are recognised in Other Comprehensive Income (OCI). On de-recognition, gains and losses accumulated in OCI are
reclassified to the statement of profit and loss.

Note 2 Financial Assets at Fair Value through Profit or Loss (FVTPL):

A financial asset which is not classified in any of the above categories are measured at FVTPL. A financial asset that meets the amortised
cost criteria or debt instruments that meet the FVTOCI criteria may be designated as at FVTPL upon initial recognition if such designation
eliminates or significantly reduces a measurement or recognition inconsistency that would arise from measuring assets or liabilities or
recognising the gains and losses on them on different bases. The Company has not designated any debt instrument as at FVTPL.

Financial assets at FVTPL are measured at fair value at the end of each reporting period, with any gains or losses arising on re-measurement
recognised in the statement of profit and loss.

Impairment of Financial Assets:

Loss allowance for expected credit losses is recognised for financial assets measured at amortised cost and FVTOCI at each reporting date
based on evidence or information that is available without undue cost or effort.

The Company measures the loss allowance for a financial asset at an amount equal to the lifetime expected credit losses if the credit risk on
that financial instrument has increased significantly since initial recognition. If the credit risk on a financial asset has not increased significantly
since initial recognition, the Company measures the loss allowance for that financial asset at an amount equal to 12-month expected
credit losses.

In case of debt instruments measured at FVTOCI, the loss allowance shall be recognised in other comprehensive income with a corresponding
effect to the profit or loss and not reduced from the carrying amount of the financial asset in the balance sheet. In case of such instrument,
amount recognized in the statement of profit and loss are the same as the amount would have been recognized in case the debt instrument
is measured at amortised cost.

For trade receivables or any contractual right to receive cash or another financial asset that result from transactions that are within the scope
of Ind AS 115, the Company measures the loss allowance using ''simplified approach'' which is at an amount equal to lifetime expected credit
losses taking into account historical credit loss experience and adjusted for forward-looking information.

Derecognition of Financial Assets:

The Company derecognizes a financial asset when the contractual rights to the cash flows from the asset expire, or when it transfers the
financial asset and substantially all the risks and rewards of ownership of the asset to another party

On derecognition of a financial asset accounted under Ind AS 109 in its entirety:

a) for financial assets measured at amortised cost, the gain or loss is recognized in the statement of profit and loss.

b) for financial assets measured at fair value through other comprehensive income, the cumulative fair value adjustments previously
taken to reserves are reclassified to the Statement of Profit and Loss unless the asset represents an equity investment in which case
the cumulative fair value adjustments previously taken to reserves is reclassified within equity

ii) Financial Liabilities and Equity Instruments:

Classification as debt or equity:

Financial liabilities and equity instruments issued are classified according to the substance of the contractual arrangements entered
into and the definitions of a financial liability and an equity instrument.

Equity Instruments

An Equity Instrument is any contract that evidences a residual interest in the assets of the Company after deducting all of its liabilities.
Repurchase of the Company''s own equity instruments is recognised and deducted directly in equity. No gain or loss is recognised in
the statement of profit and loss on the purchase, sale, issue or cancellation of the Company''s own equity instruments. Incremental
costs directly attributable to the issuance of new equity shares and buy-back of equity shares are shown as a deduction from the
Equity net of any tax effects.

Financial Liabilities

Financial liabilities are initially measured at fair value, net of transaction costs, and are subsequently measured at amortised cost using
the effective interest rate method.

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 of financial liabilities

A financial liability is derecognised when the obligation under the liability is discharged or cancelled or expires. When an existing
financial liability is replaced by another from the same lender on substantially different terms, or the terms of an existing liability are
substantially modified, such an exchange or modification is treated as the de-recognition of the original liability and the recognition of a
new liability. The difference between the carrying amount of the financial liability derecognised and the consideration paid and payable
is recognised in the statement of profit and loss.

Off-setting of financial instruments

Financial assets and liabilities are offset and the net amount is reported in the Balance Sheet when there is a legally enforceable right to
offset the recognised amounts and there is an intention to settle on a net basis or realise the asset and settle the liability simultaneously
backed by past practice.

Fair value measurement:

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market
participants at the measurement date. The fair value measurement is based on the presumption that the transaction to sell the asset
or transfer the liability takes place either:

a) In the principal market for the asset or liability, or

b) In the absence of a principal market, in the most advantageous market for the asset or liability
The principal or the most advantageous market must be accessible by the Company.

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

The Company uses valuation techniques that are appropriate in the circumstances and for which sufficient data are available to
measure fair value, maximising the use of relevant observable inputs and minimising the use of unobservable inputs.

All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorised into Level 1, 2, or 3
based on the degree to which the inputs to the fair value measurements are observable and the significance of the inputs to the fair
value measurement in its entirety, which are as follows:

Level 1 - Quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can access at the measurement date;
Level 2 - Other than quoted prices included within Level 1, that are observable for the asset or liability either directly or indirectly; and
Level 3 - Unobservable inputs for the asset or liability.

Expected Credit Loss

Expected credit loss (ECL) is the probability-weighted estimate of credit losses (i.e., the present value of all cash shortfalls) over the
expected life of the financial instrument. A cash shortfall is the difference between scheduled or contractual cash flows and actual
expected cash flows. Consequently, ECL subsumes both the amount and timing of payments - a credit loss would arise even when a
receivable was realised in full but later than when contractually due.

2.11 Income Taxes

Income tax expense comprises current tax and deferred tax. It is recognised in the profit or loss except to the extent that it relates to
items directly recognised in Equity or Other comprehensive income (OCI) in which case, income tax expenses are also recognised
directly in Equity or Other comprehensive income respectively.

Current tax in the Statement of Profit and Loss is provided as the amount of tax payable in respect of taxable income for the period
using tax rates and tax laws enacted or substantively enacted at the balance sheet date, together with any adjustment to tax payable in
respect of previous years. The amount of current tax payable or receivable is the best estimate of the tax amount expected to be paid
or received.

The Company offsets current tax assets and current tax liabilities, where it has a legally enforceable right to set off the recognised
amounts and where it intends either to settle on a net basis or to realise the assets and settle the liabilities simultaneously

Deferred tax is recognised on temporary differences between the carrying amounts of assets and liabilities and the amounts used for
taxation purposes (tax base), at the tax rates and tax laws enacted or substantively enacted by the end of the reporting period.

Deferred tax assets are recognized for deductible temporary differences, the carry forward of unused tax credits and any unused tax
losses to the extent that it is probable that taxable profit will be available against which the deductible temporary differences, and the
carry forward of unused tax credits and unused tax losses can be utilised.

The carrying amount of deferred tax assets is reviewed at each balance sheet date and reduced to the extent that it is no longer
probable that sufficient taxable profit will be available to allow all or part of the deferred tax assets to be utilised.

Deferred tax assets and deferred tax liabilities are offset if a legally enforceable right exists to set off current tax assets against current
tax liabilities, and the current taxes relate to the same taxable entity and the same taxation authority.

2.13 Earnings per Share

a) Basic earnings per share is calculated by dividing the net profit or loss for the period attributable to equity shareholders (after
deducting attributable taxes) by the weighted-average number of equity shares outstanding during the period.

b) 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.

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

2.14 Leases

a) Where the Company is the lessee

The Company''s lease asset classes primarily consist of land. The Company assesses whether a contract contains a lease,
at inception of a contract. A contract is, or contains, a lease if the contract conveys the right to control the use of an identified
asset for a period of time in exchange for consideration. To assess whether a contract conveys the right to control the use of an
identified asset, the Company assesses whether: (a) the contract involves the use of an identified asset, (b) the Company has
substantially all of the economic benefits from use of the asset through the period of the lease and (c) the Company has the right
to direct the use of the asset.

At the date of commencement of the lease, the Company recognizes a right-of use asset (“ROU”) and a corresponding lease
liability for all lease arrangements in which it is a lessee, except for leases with a term of twelve months or less (short-term leases)
and low value leases. For these short- term and low value leases, the Company recognizes the lease payments as an operating
expense on a straight-line basis over the term of the lease.

The right-of-use assets are initially recognized at cost, which comprises the initial amount of the lease liability adjusted for any
lease payments made at or prior to the commencement date of the lease plus any initial direct costs less any lease incentives.
They are subsequently measured at cost less accumulated depreciation and impairment losses.

Right-of-use assets are depreciated from the commencement date on a straight-line basis over the shorter of the lease
term and useful life of the underlying asset. Right of use assets are evaluated for recoverability whenever events or changes
in circumstances indicate that their carrying amounts may not be recoverable. For the purpose of impairment testing, the
recoverable amount (i.e. the higher of the fair value less cost to sell and the value-in-use) is determined on an individual asset
basis unless the asset does not generate cash flows that are largely independent of those from other assets. In such cases, the
recoverable amount is determined for the Cash Generating Unit (CGU) to which the asset belongs.

The lease liability is initially measured at amortized cost at the present value of the future lease payments. The lease payments
are discounted using the interest rate implicit in the lease or, if not readily determinable, using the incremental borrowing rates.
Lease liabilities are re-measured with a corresponding adjustment to the related right of use asset if the Company changes its
assessment of whether it will exercise an extension or a termination option.

Leasehold land classified as Right-of-use assets is depreciated from the commencement date on a straight-line basis over the
lease term.

Lease liability and ROU asset have been separately presented in the Balance Sheet and lease payments have been classified
as financing cash flows.

b) Where the Company is the lessor

Leases for which the Company is a lessor is classified as a finance or operating lease. Whenever the terms of the lease transfer
substantially all the risks and rewards of ownership to the lessee, the contract is classified as a finance lease. All other leases are
classified as operating leases.

When the Company is an intermediate lessor, it accounts for its interests in the head lease and the sublease separately. The
sublease is classified as a finance or operating lease by reference to the right-of-use asset arising from the head lease.

For operating leases, rental income is recognized on a straight line basis over the term of the relevant lease.

2.15 Borrowing Cost

Borrowing costs, general or specific, that are directly attributable to the acquisition or construction of a qualifying asset are capitalised
as part of the cost of such asset till such time that is required to complete and prepare the asset to get ready for its intended use. A
qualifying asset is one that necessarily takes a substantial period of time to get ready for its intended use. Borrowing costs consist of
interest and other costs that the Company incurs in connection with the borrowing of funds. Borrowing costs also include exchange
differences to the extent regarded as an adjustment to the borrowing costs.

All other borrowing costs are charged to the statement of profit and loss in the period in which they are incurred.

2.16 Government grants

Government grants are recognised when there is reasonable assurance that the grant will be received and the Company will comply
with all the conditions attached to them.

Government grants related to property, plant and equipment, including non-monetary grants, are presented in the Balance sheet by
deducting the grant arriving at the asset’s carrying amount.

Government grants of revenue in nature are recognised on a systematic basis in the Statement of Profit and Loss over the period
necessary to match them with the related costs and are adjusted with the related expenditure. If not related to a specific expenditure, it
is considered income and included under “Other operating revenue” or “Other income”.

2.17 Operating Segment

The Company is engaged in production of Solar photo-Voltaic Cells and Modules. Based on its internal organisation and management
structure, the Company operates in only one business segment i.e. manufacturing of Solar photo-Voltaic Cells and Modules and in only
one geographic segment i.e. India. Accordingly there are no separate reportable segments.

2.18 Foreign Currency Transactions

The functional and presentation currency of the Company is Indian Rupee.

Transactions in foreign currency are accounted for at the exchange rate prevailing on the transaction date. Gains/ losses arising on
settlement as also on translation of monetary items are recognised in the Statement of Profit and Loss of the period in which they arise.
Monetary assets and liabilities denominated in foreign currency as at the balance sheet date are translated at the closing rate. The
resultant exchange rate differences are recognised in the statement of profit and loss. Non-monetary assets and liabilities are carried
at the rates prevailing on the date of transaction.

2.19 Cash and cash equivalents

Cash and cash equivalents in the Balance sheet comprise cash on hand, cheques on hand, balance with banks, and short-term highly
liquid investments with an original maturity of three months or less and carry an insignificant risk of changes in value.

2.20 Cash Flow Statement

Cash flows are reported using the indirect method, whereby profit/loss before tax 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 flows. The cash flows from operating, investing and financing activities of the Company are segregated.

2.21 Exceptional items

Exceptional items include income or expenses that are part of ordinary activities. However, they are of such significance and nature
that separate disclosure enables the user of financial statements to understand the impact more clearly. These items are identified by
their size or nature to facilitate comparison with prior periods and assess underlying trends in the Company’s financial performance.

Note 3 Use of critical estimates, judgements and assumptions

The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates
and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities at the date of the financial
statements and the results of operations during the reporting period end. Although these estimates are based upon management’s best
knowledge of current events and actions, actual results could differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the
period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision
affects both current and future periods.

The application of accounting policies that require critical judgements and accounting estimates involving complex and subjective
judgements and the use of assumptions in financial statements have been disclosed herein below.

Key sources of estimation uncertainty

The following are the key assumptions concerning the future, and other key sources of estimation uncertainty at the end of the reporting
period that may have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next
financial year.

(i) Useful lives of property, plant and equipment:

The Company reviews the useful life of property, plant and equipment at the end of each reporting period. This reassessment may
result in change in depreciation expense in future periods.

(ii) Fair value measurement

When the fair value of financial assets and financial liabilities recorded in the balance sheet cannot be measured based on quoted
prices in active markets, their fair value is measured using valuation techniques. The inputs to these models are taken from observable

markets where possible, but where this is not feasible, a degree of judgement is required in establishing fair values. Judgements include
considerations of inputs such as liquidity risk, credit risk and volatility. Changes in assumptions about these factors could affect the
reported fair value of financial instruments.

(iii) Provisions and contingent liabilities

The Company has ongoing litigations with various regulatory authorities and third parties. Where an outflow of funds is believed to
be probable and a reliable estimate of the outcome of the dispute can be made based on management’s assessment of specific
circumstances of each dispute and relevant external advice, management provides for its best estimate of the liability Such accruals
are by nature complex and can take number of years to resolve and can involve estimation uncertainty. Information about such
litigations is provided in notes to the financial statements.

(iv) Valuation of inventories

The Company considers various factors like shelf life, ageing of inventory product discontinuation, price changes and any other factor
which impacts the Company’s business in determining the allowance for obsolete, non-saleable and slow moving inventories. The
Company considers the above factors and adjusts the inventory provision on a periodic basis to reflect its actual experience.

(v) Employee benefits

The accounting of employee benefit plans in the nature of defined benefit requires the Company to use assumptions. These
assumptions include rate of increase in compensation levels, discount rates, expected rate of return on assets and attrition rates

(vi) Provision for income tax and deferred tax assets

The Company exercises significant judgements in determining provision for income taxes, uncertain tax positions and to reassess the
carrying amount of deferred tax assets at the end of the each reporting period.

Deferred tax assets are recognised for unused losses (carry forward of prior years’ losses) to the extent that taxable profit would
probably be available against which the losses and tax credit could be utilised. Significant judgement is required to determine the
amount of deferred tax assets that can be recognised, based upon the likely timing and the level of future taxable profits together with
future tax planning strategies. The Company reviews the carrying amount of deferred tax assets and liabilities at each balance sheet
date with consequential change being given effect to in the year of determination.

Note 4 Recent Pronouncements

(i) New and revised standards adopted by the Company

During the year ended 31^st March 2025, the Company considered the amendments notified by the Ministry of Corporate Affairs (MCA)
through the 1^st Amendment dated 12^th August 2024, the 2^nd Amendment dated 9^th September 2024, and the 3^rd Amendment dated 28^th
September 2024 to the Companies (Indian Accounting Standards) Rules, 2015.

These amendments primarily relate to the introduction of Ind AS 117 - Insurance Contracts and consequential changes to standards
including Ind AS 101,103, 104, 105, 107, 109, 115, and 116, which address accounting and disclosure requirements for insurance contracts,
financial guarantee contracts, and sale and leaseback arrangements, among others.

The adoption of these amendments did not have impact on the profit or loss and earnings per share of the Company for the year.

(ii) Standards issued but not yet effective

The Ministry of Corporate Affairs (MCA), vide notification dated 7^th May 2025, has amended Indian Accounting Standard (Ind AS) 21
- The Effects of Changes in Foreign Exchange Rates and Ind AS 101 - First time Adoption of Indian Accounting Standards. These
amendments are applicable for annual reporting periods beginning on or after 1^st April 2025.

The key amendment relates to providing guidance for assessing lack of exchangeability between currencies and estimating the spot
exchange rate when a currency is not exchangeable. Additional disclosure requirements have also been introduced in such scenarios,
including the nature and financial effect of the currency in exchangeability, the estimation methodology used, and risks arising therefrom.

The Company is currently evaluating the impact of these amendments and expects that their application will not have a material effect
on the financial statements.

Note No. : 14 Other equity (Contd)

2 Securities Premium is used to record the premium on issue of shares. This reserve is being utilised in accordance with the provisions of
the Act.

3 Retained Earnings/(deficit) represents the undistributed profit /accumulated earnings/(loss) of the Company. This includes re¬
measurement of the defined benefit plan resulting from experience adjustments and changes in actuarial assumptions, recognised in
other comprehensive income.

4 During the year, the Company issued 12,10,000 convertible warrants at Rs.530/- per warrant to it’s promoter company, M/s Websol
Green Projects Private Limited in consideration of extinguishment of unsecured loan not exceeding Rs. 600 lakh and balance in cash,
in accordance with the provisions of the Chapter V of the SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018 and
applicable provisions of the Companies Act, 2013 and rules made thereunder. These warrants are convertible in the ratio of 1:1 equity
share of face value Rs. 10/- each at a price of Rs. 530/- each (including premium of Rs. 520/- each) and the conversion can be exercised
at any time during the period of 18 months from the date of allotment of warrants in one or more tranches.

An amount of Rs. 1,603.25 lakh (Previous year Nil) which is equivalent to 25% of the Warrants Issue Price represent subscription amount
and balance 75% shall be payable upon conversion into equity shares.

5 Remeasurement of defined benefit plans comprises actuarial gains and losses which are recognised in other comprehensive income
and then immediately transferred to retained earnings.

i) Nature of security:

Term loan from IREDA is primarily secured by way of hypothecation of movable assets pertaining to the projects, both existing and
future, subject to prior charge of working capital lenders on specified current assets along with personal guarantee of Mr. Sohan Lal
Agarwal, the Managing Director and Corporate guarantee of M/s S.L. Industries Pvt. Ltd. and M/s Websol Green Projects Private Limited
and pledge on 81.38% of shares held by promoters of the Company till the tenure of loan. Also, assignment of leasehold rights of the
entire project land by way of Indenture of Mortgage and creation of DSRA (Refer Note No. 11(ii)).

ii) Rate of interest

Interest is payable @ 9.90% p.a. (previous year @ 9.70% p.a.) on secured loan.

Interest is payable @ 8.00% p.a. to 18.00% p.a. (previous year @ 8.00% p.a. to 18.00% p.a.) on unsecured loan.

iii) Terms of Repayment

Term loan is repayable in 24 quarterly installments starting from 30-06-2025 as below:

Notes:

1. The amounts shown above represent the best possible estimates arrived at on the basis of available information. The uncertainties
and timing of the cash flows are dependent on the outcome of different legal processes which have been invoked by the Company
or the claimants, as the case may be and, therefore, cannot be estimated accurately The Company does not expect any
reimbursement in respect of above contingent liabilities. The Company has recognized a provision of Rs. 750.00 lakhs towards
Income Tax Demand under appeal based on management assessment.

2. The company’s product namely Solar Photovoltaic Modules carry a warranty of 25 years as per International Standards.

A fair estimate of future liability that may arise on this account is not ascertainable. The same shall be accounted for as and when
any claim occurs.

3. Pursuant to the High Court’s order dated 27 September 2012, the Company is required to deposit 25% of the demanded excise duty
and penalty and provide a bond for the remaining 75% of the demand. Aggrieved by this order, the Company has filed GA 3166 of
2017 seeking rectification of the said order.

4. During the previous year, the employee provident fund comprises damages unders section 14B and interest under section 7Q of the
Employees’ Provident Funds Act.

5. The Company’s pending litigation comprises of claim against the Company and proceeding pending against tax authorities. The
Company has reviewed all its pending litigations and proceedings and has made adequate provisions, and disclosed the contingent
liabilities, where applicable, in its Financial Statements. The Company does not expects the outcome of these proceedings to
have a material Impact on its financial position. Future cash outflows in respect of ''A’ above are dependent upon the outcome of
judgments/ decisions.

3. Operating segment

The Company is primarily engaged in only one product line i.e., Solar photo-Voltaic Cells and Modules. All the activities of the Company
revolve around the main business. As such there are no separate reportable segments as per requirements of Accounting Standard
(Ind AS- 108) on operating segment. Further, the Company operates only in India, hence additional information under geographical
segments is also not applicable. The Directors of the Company has been identified as the Chief Operating Decision Maker (CODM).
The Chief Operating Decision Maker also monitors the operating results as one single segment for the purpose of making decisions
about resource allocation and performance assessment and hence, there are no additional disclosures to be provided other than those
already provided in the financial statements.

4 Employee Benefits :

As per Indian Accounting Standard - 19 “ Employee Benefits”, the disclosures of Employee Benefits are as follows:
a) Defined Contribution Plan :

Employee benefits in the form of Provident Fund and Employee State Insurance Corporation are considered as defined
contribution plan.

The contributions to the respective fund are made in accordance with the relevant statute and are recognised as expense when
employees have rendered service entitling them to the contribution. The contributions to defined contribution plan, recognised as
expense in the Statement of Profit and Loss are as under :

b) Defined Benefit Plan :

The Company operates a unfunded defined benefit plan (the gratuity plan) covering eligible employees, which provides a lump
sum payment to vested employees at retirement, death, incapacitation or termination of employment, of an amount based on the
respective employees salary and the tenure of employment. The liability is unfunded. The Company accounted for the liability for
gratuity benefits payable in the future based on an actuarial valuation. The Company was exposed to interest risk, salary inflation
risk and demographic risk.

i. Interest risk: The defined benefit obligation calculated uses a discount rate based on government bonds. If bond yields fall, the
defined benefit obligation will tend to increase.

ii. Salary Inflation risk: Higher than expected increases in salary will increase the defined benefit obligation.

iii. Demographic risk: This is the risk of variability of results due to unsystematic nature of decrements that include mortality,
withdrawal, disability and retirement. The effect of these decrements on the defined benefit obligation is not straight forward
and depends upon the combination of salary increase, discount rate and vesting criteria. It is important not to overstate
withdrawals because in the financial analysis the retirement benefit of a short career employee typically costs less per year as
compared to a long service employee.

The most recent actuarial valuation of the present value of the defined benefit obligation were carried out as at 31^st March,
2025 by a registered Actuary The present value of the defined benefit obligation, and the related current service cost and past
service cost, were measured using the projected unit credit method.

d) During the previous year, the Company issued and allotted 10,62,500 and 2,46,429 Equity Shares pursuant to conversion of loan to the
M/s Websol Green Projects Private Limited and M/s S.L. Industries Private Limited (Promoter Companies) respectively at the rate of Rs.
112 per share of face value of Rs. 10 each aggregating to Rs. 130.89 lakh (Refer note no. 13).

e) Refer Note No.14(4). for terms of warrants convertible into equity shares

f) The Company has received personal guarantee from Mr. S.L. Agarwal (Managing Director) and Corporate guarantee from M/s Websol
Green Projects Private Limited and M/s S.L. Industries Private Limited (Promoter Companies) for the loan taken from IREDA Rs.
15,232.00 Lakh (Previous year: 15,232.00 Lakh) (Refer note no. 15). and given the letter of Comfort on behalf of Mrs. Raj Kumari Agarwal
(Wife of Mr. S. L. Agarwal) for Rs. 590.00 lakh (Previous year: Rs. 590.00 lakh) (Refer note no. 35(1)).

g) Figures in brackets ( ) represents for year ended 31^st March, 2024.

Terms & Conditions :

The transactions with related parties have been entered at an amount which are not materially different from those on normal commercial terms.
Outstanding balances are unsecured and will be settled in cash. No guarantees have been given or received except as stated in para 35(8)(f).

B. Fair value hierarchy

The fair value of the financial assets and financial liabilities are included at the amount at which the instrument could be exchanged in a
current transaction between willing parties, other than in a forced or liquidation sale.

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 or indirectly.

Level 3: Inputs for the assets or liabilities that are not based on observable market data (unobservable inputs).

The fair values of investment in mutual funds represent net asset value as stated by the issuers of these mutual fund units in the published
statements. Net asset values represent the price at which the issuer will issue further units in the mutual fund and the price at which such
units are redeemed.

Fair value of cash and cash equivalents, bank balances other than cash and cash equivalents, trade receivables, other current financial
assets, short term borrowings, trade payables and other current financial liabilities is considered to be equal to the carrying amounts of
these items due to their short-term nature.

Where such items are Non-current in nature (other than investments), the same has been classified as Level 3 and fair value determined
using adjusted net asset value method.

There has been no change in the valuation methodology for Level 3 inputs during the year. The Company has not classified any material
financial instruments under Level 3 of the fair value hierarchy. There were no transfers between Level 1 and Level 2.

The following tables provide the fair value hierarchy of the Company’s assets measured at fair value on a recurring basis:

10. Financial risk management objectives and policies

The Company’s activities expose it to market risk, liquidity risk and credit risk. The Company’s Board of Directors has overall responsibility
for the establishment and oversight of the Company’s risk management framework. This note explains the sources of risk which the
entity is exposed to and how the entity manages the risk and the related impact in the financial statements.

(a) Credit risk

Credit risk is the risk that a customer or counterparty to a financial instrument fails to perform or pay the amounts due causing
financial loss to the Company. Credit risk arises from Company’s activities in receivables from customers, investments, cash and
bank balances and other financial assets. The Company ensure that sales of products are made to customers with appropriate
creditworthiness. Investment and other market exposures are managed against counterparty exposure limits. Credit information
is regularly shared between businesses and finance function, with a framework in place to quickly identify and respond to cases of
credit deterioration.

Note No. : 35 Other disclosures and additional regulatory information (Contcf)

Credit risk arising from balances with banks and other cash equivalents is limited and no collaterals are held against these because
the counterparties are banks and recognised financial institutions with high credit ratings assigned by credit rating agencies.

Other financial assets measured at amortized cost includes security deposits and others. Credit risk related to these financial
assets are managed by monitoring the recoverability of such amounts continuously, while at the same time internal control system
is in place to ensure that the amounts are within defined limits.

Customer credit risk is managed as per company’s established policy, procedure and control related to credit risk management.
Credit quality of the customer is assessed based on his previous track record and funds & securities held by him in his account
amd individual credit limit are defined according to this assessment. Outstanding customer receivables are regularly monitored.
An impairment analysis is performed at each balance sheet 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. Assets are written off when
there is no reasonable expectation of recovery. The Company continues to engage with parties whose balances are written off
and attempts to enforce repayment. Recoveries made are recognized in statement of profit and loss. The maximum exposure to
credit risk at the balance sheet date is the carrying value of each class of financial assets. The maximum exposure to credit risk
is Rs. 9,992.44 lakhs and Rs. 496.58 lakhs as at 31^st March, 2025 and 31^st March, 2024 respectively, being the total of the carrying
amount of balances with banks, bank deposits, trade receivables, other financial assets and investments and these financial assets
are of good credit quality including those that are past due.

The Company assesses and manages credit risk of financial assets on the basis of assumptions, inputs and factors specific to the
class of financial assets. The Company provides for expected credit loss on Cash and cash equivalents, other bank balances and
other financial assets based on 12 months expected credit loss/life time expected credit loss/ fully provided for. Life time expected
credit loss is provided for trade receivables under simplified approach.

(b) Liquidity risk

Liquidity risk is defined as the risk that the company will not be able to settle or meet its obligation on time or at reasonable price.
Prudent liquidity risk management implies maintaining sufficient cash and marketable securities and the availability of funding
through an adequate amount of committed credit facilities to meet obligations when due. Due to the nature of the business, the
Company maintains flexibility in funding by maintaining availability under committed facilities. Management monitors rolling
forecasts of the Company’s liquidity position and cash and cash equivalents on the basis of expected cash flows. The Company
takes into account the liquidity of the market in which the entity operates.

The tables below summarises the Company’s financial liabilities into relevant maturity groupings based on their contractual maturities:

Interest rate risk

Interest rate risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of change in market
interest rate.

i) Liabilities

The Company’s fixed rate borrowings are carried at amortised cost. They are, therefore, not subject to interest rate risk as
defined in Ind AS 107, since neither the carrying amount nor the future cash flows will fluctuate because of a change in market
interest rates.

The Company has no variable rate borrowings.

ii) Assets

The company’s fixed deposits are carried at fixed rate. Therefore, these are not subject to interest rate risk as defined in Ind
AS 107, since neither the carrying amount nor the future cash flows will fluctuate because of a change in market interest rates.

Price risk

Price risk is the risk that the fair value of financial instrument will fluctuate due to change in market traded price.

The Company is not exposed to any price risk arises from investments held in mutual fund and classified as FVTPL.

11. Capital Management
Risk management

For the purpose of the Company’s capital management, capital includes issued equity capital, securities premium and all other equity
reserves attributable to the equity share-holders of the Company. The Company’s objective when managing capital is to safeguard its
ability to continue as a going concern so that it can continue to provide returns to shareholders and other stake holders and maintain an
optimal capital structure to reduce the cost of Capital.

The Company manages its capital structure and makes adjustments in light of changes in the financial condition and the requirements
of the financial covenants. To maintain or adjust the capital structure, the Company may adjust the dividend payment to shareholders,
return capital to shareholders (buy back its shares) or issue new shares.

In order to achieve this overall objective, the Company’s capital management, amongst other things, aims to ensure that it meets
financial covenants attached to the interest-bearing loans and borrowings that define capital structure requirements. The Company has
complied with these covenants.

No changes were made in the objectives, policies or processes for managing capital during the year ended 31^st March, 2025 and 31^st
March, 2024.

12 Komex Inc, Operational Creditor have filed applications with NCLT to initiate Corporate Insolvency Resolution Process under the
Insolvency and Bankruptcy Code, 2016. During the year, the settlement with the creditor was concluded.

13 Corporate Social Responsibility

As per Section 135 of the Companies Act, 2013, a company, meeting the applicability threshold, needs to spend at least 2% of its average
net profit for the immediately preceding three financial years on corporate social responsibility (CSR) activities. The areas for CSR
activities are eradication of hunger and malnutrition, promoting education, art and culture, healthcare, destitute care and rehabilitation,
environment sustainability, disaster relief, COVID-19 relief and rural development projects. A CSR committee has been formed by the
company as per the Act. The funds were primarily allocated to a corpus and utilized through the year on these activities which are
specified in Schedule VII of the Companies Act, 2013:

c) Disclosure required under Additional regulatory information as prescribed under paragraph 6L to general instructions for preparation of
Balance Sheet under Schedule III to the Companies Act, 2013 are not applicable to the Company except as disclosed in Para (a) and (b)
above.

As per our report of even date attached.

For G. P Agrawal & Co. For and on behalf of the Board of Directors

Chartered Accountants Websol Energy System Limited

Firm''s Registration No. - 302082E

(CA. Ajay Agrawal) S.L.Agarwal Sanjana Khaitan

Partner Managing Director Director & CFO

Membership No. 017643 DIN No. 00189898 DIN No. 07232095

Raju Sharma

Place of Signature: Kolkata Company Secretary

Date: The 15^th day of May 2025 Membership No. : A27886

---

Mar 31, 2024

2.10 Provisions, contingent liabilities and contingent assets

a) Provisions are recognized only when there is a present obligation, as a result of past events and when a reliable estimate of the amount of obligation can be made at the reporting date. These estimates are reviewed at each reporting date and adjusted to reflect the current best estimates and it is probable that an outflow of economic benefits will be required to settle the obligation.

If the obligation is expected to be settled more than 12 months after the end of reporting date or has no definite settlement date, the provision is recorded as non-current liabilities after giving effect for time value of money, if material.

Where discounting is used, the increase in the provision due to the passage of time is recognised as a finance cost.

b) Contingent liability is disclosed for possible obligations which will be confirmed only by future events not wholly within the control of the Company or present obligations arising from past events where it is not probable that an outflow of resources will be required to settle the obligation or a reliable estimate of the amount of the obligation cannot be made.

c) Contingent assets are neither recognized nor disclosed except when realisation of income is virtually certain, related asset is disclosed.

d) Provisions, contingent liabilities and contingent assets are reviewed at each balance sheet date.

2.11 Employee benefits

a) Short-term employee benefits

Short-term employee benefits in respect of salaries and wages, including non-monetary benefits are recognised as an expense at the undiscounted amount in the Statement of Profit and Loss for the year in which the related service is rendered.

b) Defined contribution plans

Company''s Contributions to Provident fund and superannuation are charged to the Statement of Profit and Loss in the year when the contributions to the respective funds are due.

c) Defined benefit plans

The Company operates a defined benefit gratuity plan which is unfunded. The liability or asset recognised in the Balance sheet in respect of gratuity is the present value of the defined benefit obligation as at the balance sheet date less the fair value of plan assets. The defined benefit obligation is calculated by external actuaries using the projected unit credit method. The current service cost and interest on the net defined benefit liability / (asset) is recognized in the statement of profit and loss. Past service cost are immediately recognized in the statement of profit and loss. Actuarial gains and losses net of deferred taxes arising from experience adjustment and changes in actuarial assumptions are recognized in other comprehensive income in the period in which they arise."

2.12 Financial instruments, Financial assets, Financial liabilities and Equity instruments

Financial assets and financial liabilities are recognised when the Company becomes a party to the contractual provisions of the relevant instrument and are initially measured at fair value. Transaction costs that are directly attributable to the acquisition or issue of financial assets and financial liabilities (other than financial assets and financial liabilities measured at fair value through profit or loss) are added to or deducted from the fair value on initial recognition of financial assets or financial liabilities.

i) Financial Assets

(a) Recognition

Financial assets include Trade receivables, Advances, Security Deposits, Cash and cash equivalents, Bank balances etc. Such assets are initially recognised at transaction price when the Company becomes party to contractual obligations. The transaction price includes transaction costs unless the asset is being fair valued through

the Statement of Profit and Loss. With the exception of trade receivables that do not contain a significant financing component or for which the Company has applied the practical expedient.

Trade receivables that do not contain a significant financing component or for which the Company has applied the practical expedient are measured at the transaction price determined under Ind AS 115. Refer to the accounting policies in para 2.9.

(b) Classification

Management determines the classification of an asset at initial recognition depending on the purpose for which the assets were acquired. The subsequent measurement of financial assets depends on such classification.

Financial assets are classified as those measured at:

(1) amortised cost, where the financial assets are held solely for collection of cash flows arising from payments of principal and/ or interest.

(2) fair value through other comprehensive income (FVTOCI), where the financial assets are held not only for collection of cash flows arising from payments of principal and interest but also from the sale of such assets. Such assets are subsequently measured at fair value, with unrealised gains and losses arising from changes in the fair value being recognised in other comprehensive income.

(3) fair value through profit or loss (FVTPL), where the assets does not meet the criteria for categorization as at amortized cost or as FVTOCI. Such assets are subsequently measured at fair value, with unrealised gains and losses arising from changes in the fair value being recognised in the Statement of Profit and Loss in the period in which they arise.

Trade receivables, Advances, Security Deposits, Cash and cash equivalents, Bank balances etc. are classified for measurement at amortised cost while investments may fall under any of the aforesaid classes. However, in respect of particular investments in equity instruments that would otherwise be measured at fair value through profit or loss, an irrevocable election at initial recognition may be made to present subsequent changes in fair value through other comprehensive income.

(c) Impairment

The Company assesses at each reporting date whether a financial asset (or a group of financial assets) such as investments, trade receivables, advances and security deposits held at amortised cost and financial assets that are measured at fair value through other comprehensive income are tested for impairment based on evidence or information that is available without undue cost or effort. Expected credit losses are assessed and loss allowances recognised if the credit quality of the financial asset has deteriorated significantly since initial recognition.

(d) Reclassification

When and only when the business model is changed, the Company shall reclassify all affected financial assets prospectively from the reclassification date as subsequently measured at amortised cost, fair value through other comprehensive income, fair value through profit or loss without restating the previously recognised gains, losses or interest and in terms of the reclassification principles laid down in the Ind AS relating to Financial Instruments.

(e) De-recognition

Financial assets are derecognised when the right to receive cash flows from the assets has expired, or has been transferred, and the Company has transferred substantially all of the risks and rewards of ownership. If the asset is one that is measured at:

(i) amortised cost, the gain or loss is recognised in the Statement of Profit and Loss;

(ii) fair value through other comprehensive income, the cumulative fair value adjustments previously taken to reserves are reclassified to the Statement of Profit and Loss unless the asset represents an equity investment in which case the cumulative fair value adjustments previously taken to reserves is reclassified within equity.

ii) Financial liabilities

Borrowings, trade payables and other financial liabilities are initially recognised at the value of the respective contractual obligations. They are subsequently measured at amortised cost.

Financial liabilities are derecognised when the liability is extinguished, that is, when the contractual obligation is discharged, cancelled and on expiry.

iii) Equity instruments

Equity instruments are recognised at the value of the proceeds, net of direct costs of the capital issue.

iv) Offsetting of financial instruments

Financial assets and liabilities are offset and the net amount is included in the Balance Sheet where there is a legally enforceable right to offset the recognised amounts and there is an intention to settle on a net basis or realise the asset and settle the liability simultaneously.

v) Dividend distribution

Dividends paid (including income tax thereon) is recognised in the period in which the interim dividends are approved by the Board of Directors, or in respect of the final dividend when approved by shareholders.

vi) Fair value measurement

Fair value is a market-based measurement, not an entity-specific measurement. Under Ind AS, fair valuation of financial instruments is guided by Ind AS 113 “Fair Value Measurement” (Ind AS - 113).

For some assets and liabilities, observable market transactions or market information might be available. For other assets and liabilities, observable market transactions and market information might not be available. However, the objective of a fair value measurement in both cases is the same—to estimate the price at which an orderly transaction to sell the asset or to transfer the liability would take place between market participants at the measurement date under current market conditions.

In determining the fair value of financial instruments, the Company uses a variety of methods and assumptions that are based on market conditions and risks existing at each balance sheet date.

The Company uses the following hierarchy for determining and disclosing the fair value of financial instruments by valuation technique:

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 or indirectly.

Level 3: Inputs for the assets or liabilities that are not based on observable market data (unobservable inputs).

2.13Taxes

Taxes on income comprises of current taxes and deferred taxes. Current tax in the Statement of Profit and Loss is provided as the amount of tax payable in respect of taxable income for the period using tax rates and tax laws enacted during the period, together with any adjustment to tax payable in respect of previous years.

Deferred tax is recognised on temporary differences between the carrying amounts of assets and liabilities and the amounts used for taxation purposes (tax base), at the tax rates and tax laws enacted or substantively enacted by the end of the reporting period.

Deferred tax assets are recognized for deductible temporary differences, the carry forward of unused tax credits and any unused tax losses to the extent that it is probable that taxable profit will be available against which the deductible temporary differences, and the carry forward of unused tax credits and unused tax losses can be utilised.

The carrying amount of deferred tax assets is reviewed at each balance sheet date and reduced to the extent that it is no longer probable that sufficient taxable profit will be available to allow all or part of the deferred tax assets to be utilised.

Income tax, in so far as it relates to items disclosed under other comprehensive income or equity, are disclosed separately under other comprehensive income or equity, as applicable.

2.14Earnings per Share

a) Basic earnings per share is calculated by dividing the net profit or loss for the period attributable to equity shareholders (after deducting attributable taxes) by the weighted-average number of equity shares outstanding during the period.

b) 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.

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

2.15Leases

a) Where the Company is the lessee

The Company''s lease asset classes primarily consist of land. The Company assesses whether a contract contains a lease, at inception of a contract. A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. To assess whether a contract conveys the right to control the use of an identified asset, the Company assesses whether: (a) the contract involves the use of an identified asset, (b) the Company has substantially all of the economic benefits from use of the asset through the period of the lease and (c) the Company has the right to direct the use of the asset.

At the date of commencement of the lease, the Company recognizes a right-of use asset (“ROU”) and a corresponding lease liability for all lease arrangements in which it is a lessee, except for leases with a term of twelve months or less (short-term leases) and low value leases. For these short- term and low value leases, the Company recognizes the lease payments as an operating expense on a straight-line basis over the term of the lease.

The right-of-use assets are initially recognized at cost, which comprises the initial amount of the lease liability adjusted for any lease payments made at or prior to the commencement date of the lease plus any initial direct costs less any lease incentives. They are subsequently measured at cost less accumulated depreciation and impairment losses.

Right-of-use assets are depreciated from the commencement date on a straight-line basis over the shorter of the lease term and useful life of the underlying asset. Right of use assets are evaluated for recoverability whenever events or changes in circumstances indicate that their carrying amounts may not be recoverable. For the purpose of impairment testing, the recoverable amount (i.e. the higher of the fair value less cost to sell and the value-in-use) is determined on an individual asset basis unless the asset does not generate cash flows that are largely independent of those from other assets. In such cases, the recoverable amount is determined for the Cash Generating Unit (CGU) to which the asset belongs.

The lease liability is initially measured at amortized cost at the present value of the future lease payments. The lease payments are discounted using the interest rate implicit in the lease or, if not readily determinable, using the incremental borrowing rates. Lease liabilities are re-measured with a corresponding adjustment to the related right of use asset if the Company changes its assessment of whether it will exercise an extension or a termination option.

Leasehold land classified as Right-of-use assets is depreciated from the commencement date on a straight-line basis over the shorter of the lease term and useful life of the underlying asset.

Lease liability and ROU asset have been separately presented in the Balance Sheet and lease payments have been classified as financing cash flows.

b) Where the Company is the lessor

Leases for which the Company is a lessor is classified as a finance or operating lease. Whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee, the contract is classified as a finance lease. All other leases are classified as operating leases.

When the Company is an intermediate lessor, it accounts for its interests in the head lease and the sublease separately. The sublease is classified as a finance or operating lease by reference to the right-of-use asset arising from the head lease.

For operating leases, rental income is recognized on a straight line basis over the term of the relevant lease.

2.16Government grants

Government grants are recognised when there is reasonable assurance that the grant will be received and the Company will comply with all the conditions attached to them.

Government grants related to property, plant and equipment, including non-monetary grants, are presented in the Balance sheet by deducting the grant arriving at the asset''s carrying amount.

Government grants of revenue in nature are recognised on a systematic basis in the Statement of Profit and Loss over the period necessary to match them with the related costs and are adjusted with the related expenditure. If not related to a specific expenditure, it is considered income and included under “Other operating revenue” or “Other income”.

2.17Operating Segment

The Company is engaged in production of Solar photo-Voltaic Cells and Modules. Based on its internal organisation and management structure, the Company operates in only one business segment i.e. manufacturing of Solar photo-Voltaic Cells and Modules and in only one geographic segment i.e. India. Accordingly there are no separate reportable segments.

2.19Foreign Currency Transactions

The functional and presentation currency of the Company is Indian Rupee.

Transactions in foreign currency are accounted for at the exchange rate prevailing on the transaction date. Gains/ losses arising on settlement as also on translation of monetary items are recognised in the Statement of Profit and Loss in which they arise. Monetary assets and liabilities denominated in foreign currency as at the balance sheet date are translated at the closing rate. The resultant exchange rate differences are recognised in the statement of profit and loss. Non-monetary assets and liabilities are carried at the rates prevailing on the date of transaction.

2.20Cash and cash equivalents

Cash and cash equivalents in the Balance sheet comprise cash on hand, cheques on hand, balance with banks, and shortterm highly liquid investments with an original maturity of three months or less and carry an insignificant risk of changes in value.

2.21Cash Flow Statement

Cash flows are reported using the indirect method, whereby profit/loss before tax 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 flows. The cash flows from operating, investing and financing activities of the Company are segregated.

2.22Exceptional items

Exceptional items include income or expenses that are part of ordinary activities. However, they are of such significance and nature that separate disclosure enables the user of financial statements to understand the impact more clearly. These items are identified by their size or nature to facilitate comparison with prior periods and assess underlying trends in the Company''s financial performance.

Note 3 Use of estimates and judgements

The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities at the date of the financial statements and the results of operations during the reporting period end. Although these estimates are based upon management''s best knowledge of current events and actions, actual results could differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.

Key sources of estimation uncertainty

The following are the key assumptions concerning the future, and other key sources of estimation uncertainty at the end of the reporting period that may have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year.

(i) Useful lives of property, plant and equipment:

The Company reviews the useful life of property, plant and equipment at the end of each reporting period. This reassessment may result in change in depreciation expense in future periods.

(ii) Fair value measurement

When the fair value of financial assets and financial liabilities recorded in the balance sheet cannot be measured based on quoted prices in active markets, their fair value is measured using valuation techniques. The inputs to these models are taken from observable markets where possible, but where this is not feasible, a degree of judgement is required in establishing fair values. Judgements include considerations of inputs such as liquidity risk, credit risk and volatility. Changes in assumptions about these factors could affect the reported fair value of financial instruments.

(iii) Provisions and contingent liabilities

The Company has ongoing litigations with various regulatory authorities and third parties. Where an outflow of funds is believed to be probable and a reliable estimate of the outcome of the dispute can be made based on management''s assessment of specific circumstances of each dispute and relevant external advice, management provides for its best estimate of the liability. Such accruals are by nature complex and can take number of years to resolve and can involve estimation uncertainty. Information about such litigations is provided in notes to the financial statements.

(iv) Deferred Tax

Deferred tax assets are recognised for unused losses (carry forward of prior years'' losses) to the extent that taxable profit would probably be available against which the losses and tax credit could be utilised. Significant judgement is required to determine the amount of deferred tax assets that can be recognised, based upon the likely timing and the level of future taxable profits together with future tax planning strategies. The Company reviews the carrying amount of deferred tax assets and liabilities at each balance sheet date with consequential change being given effect to in the year of determination.

Note 4 Recent 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. For the year ended 31^st March, 2024, MCA has not notified any new standards or amendments to the existing standards applicable to the Company.

3. Operating segment

The Company is primarily engaged in only one product line i.e., Solar photo-Voltaic Cells and Modules. All the activities of the Company revolve around the main business. As such there are no separate reportable segments as per requirements of Accounting Standard (Ind AS- 108) on operating segment. Further, the Company operates only in India, hence additional information under geographical segments is also not applicable. The Director of the Company has been identified as the Chief Operating Decision Maker (CODM). The Chief Operating Decision Maker also monitors the operating results as one single segment for the purpose of making decisions about resource allocation and performance assessment and hence, there are no additional disclosures to be provided other than those already provided in the financial statements.

4 Employee Benefits :

As per Indian Accounting Standard - 19 " Employee Benefits", the disclosures of Employee Benefits are as follows: a) Defined Contribution Plan :

Employee benefits in the form of Provident Fund and Employee State Insurance Corporation are considered as defined contribution plan.

The contributions to the respective fund are made in accordance with the relevant statute and are recognised as expense when employees have rendered service entitling them to the contribution. The contributions to defined contribution plan, recognised as expense in the Statement of Profit and Loss are as under :

Retiring gratuity

The Company operates a defined benefit plan (the gratuity plan) covering eligible employees, which provides a lump sum payment to vested employees at retirement, death, incapacitation or termination of employment, of an amount based on the respective employees salary and the tenure of employment. The liability is unfunded. The Company accounted for the liability for gratuity benefits payable in the future based on an actuarial valuation. The Company was exposed to interest risk, liquidity risk, salary escalation risk, demographic risk, regulatory risk.

i) Actuarial risk: It is the risk that benefits will cost more than expected. This can arise due to one of the following reasons:

Adverse Salary Growth Experience: Salary hikes that are higher than the assumed salary escalation will result into an increase in Obligation at a rate that is higher than expected.

Variability in mortality rates: If actual mortality rates are higher than assumed mortality rate assumption than the Gratuity benefits will be paid earlier than expected. Since there is no condition of vesting on the death benefit, the acceleration of cash flow will lead to an actuarial loss or gain depending on the relative values of the assumed salary growth and discount rate.

Variability in withdrawal rates: If actual withdrawal rates are higher than assumed withdrawal rate assumption than the Gratuity benefits will be paid earlier than expected. The impact of this will depend on whether the benefits are vested as at there resignation date.

ii) Investment risk: For funded plans that rely on insurers for managing the assets, the value of assets certified by the insurer may not be the fair value of instruments backing the liability. In such cases, the present value of the assets

is independent of the future discount rate. This can result in wide fluctuations in the net liability or the funded status if there are significant changes in the discount rate during the inter-valuation period.

iii. Interest risk: The defined benefit obligation calculated uses a discount rate based on government bonds. If bond yields fall, the defined benefit obligation will tend to increase.

iv. Liquidity risk: This is the risk that the Company is not able to meet the short-term gratuity payouts. This may arise due to non-availability of enough cash / cash equivalent to meet the liabilities or holding of illiquid assets not being sold in time.

v. Salary Escalation risk: Higher than expected increases in salary will increase the defined benefit obligation.

vi. Demographic risk: This is the risk of variability of results due to unsystematic nature of decrements that include mortality, withdrawal, disability and retirement. The effect of these decrements on the defined benefit obligation is not straight forward and depends upon the combination of salary increase, discount rate and vesting criteria. It is important not to overstate withdrawals because in the financial analysis the retirement benefit of a short career employee typically costs less per year as compared to a long service employee.

vii. Regulatory risk: Gratuity benefit is paid in accordance with the requirements of the Payment of Gratuity Act , 1972 (as amended from time to time). There is a risk of change in regulations requiring higher gratuity payouts (e.g. Increase in the maximum limit on gratuity of Rs. 20 Lakh).

The most recent actuarial valuation of the plan assets and the present value of the defined benefit obligation were carried out as at March 31,2024 by a registered Actuary. The present value of the defined benefit obligation, and the related current service cost and past service cost, were measured using the projected unit credit method.

d) The transactions with related parties have been entered at an amount which are not materially different from those on normal commercial terms.

e) The amounts outstanding are unsecured and will be settled in cash. No guarantees have been given or received.

f) The Company issued and allotted 10,62,500 and 2,46,429 Equity Shares pursuant to conversion of loan to the M/s Websol Green Projects Private Limited and M/s S.L. Industries Private Limited (Promoter Companies) respectively at the rate of Rs. 112 per share of face value of Rs. 10 each aggregating to Rs. 130.89 lakh (Refer note no. 12).

During the previous year, the Company issued and allotted 15,00,000 Equity Shares pursuant to conversion of warrant to the Managing Director i.e Mr. Sohanlal Agarwal at the rate of Rs. 50 per warrant by subscribing to one Equity share per warrant of face value of Rs. 10 each aggregating to Rs. 150.00 lakh (Refer note no. 12).

The Company has received personal guarantee from Mr. S.L. Agarwal (Managing Director) and Corporate guarantee from M/s Websol Green Projects Private Limited and M/s S.L. Industries Private Limited (Promoter Companies) for the loan taken from IREDA during the current year Rs. 15,232.00 lakh (Previous year: Nil) (Refer note no. 14) and the letter of Comfort from Mrs. Raj Kumari Agarwal (Wife of Mr. S. L. Agarwal) for Rs. 590.00 lakh (Previous year: Rs. 590.00 lakh) (Refer note no. 34(1)).

g) Figures in brackets-( ) represents for year ended 31^st March, 2024.

Terms & Conditions :

The transactions with related parties have been entered at an amount which are not materially different from those on normal commercial terms.

Outstanding balances are unsecured and will be settled in cash. No guarantees have been given or received except as stated in para 34(8)(f).

B Fair value hierarchy

The fair value of the financial assets and financial liabilities are included at the amount at which the instrument could be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale.

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 or indirectly.

Level 3: Inputs for the assets or liabilities that are not based on observable market data (unobservable inputs).

Fair value of cash and cash equivalents, bank balances other than cash and cash equivalents, trade receivables, loans and other current financial assets, short term borrowings, trade payables and other current financial liabilities is considered to be equal to the carrying amounts of these items due to their short-term nature.

Where such items are Non-current in nature, the same has been classified as Level 3 and fair value determined using adjusted net asset value method.

There has been no change in the valuation methodology for Level 3 inputs during the year. The Company has not classified any material financial instruments under Level 3 of the fair value hierarchy. There were no transfers between Level 1 and Level 2.

Financial assets and financial liabilities measured at fair value on a recurring basis as at 31^st March, 2024 Nil (31^st March, 2023 : Nil).

10. Financial risk management objectives and policies

The Company''s activities expose it to market risk, liquidity risk and credit risk. The Company''s Board of Directors has overall responsibility for the establishment and oversight of the Company''s risk management framework. This note explains the sources of risk which the entity is exposed to and how the entity manages the risk and the related impact in the financial statements.

(a) Credit risk

Credit risk is the risk that a counterparty will not meet its obligations under financial instrument or a customer contract leading to a financial loss. The Company is exposure to credit risk from its operating activities primarily trade receivables with exchanges and from its financing activities including deposits placed with bank and other financial instruments/assets. Credit risk from balances with bank and other financial instrument is managed in accordance with company''s policies.

Credit risk arising from balances with banks and other cash equivalents is limited and no collaterals are held against these because the counterparties are banks and recognised financial institutions with high credit ratings assigned by credit rating agencies.

Loans and other financial assets measured at amortized cost includes loans to related parties, security deposits and others. Credit risk related to these financial assets are managed by monitoring the recoverability of such amounts continuously, while at the same time internal control system is in place to ensure that the amounts are within defined limits.

Customer credit risk is managed as per company''s established policy, procedure and control related to credit risk management. Credit quality of the customer is assessed based on his previous track record and funds & securities held by him in his account amd individual credit limit are defined according to this assessment. Outstanding customer receivables are regularly monitored. An impairment analysis is performed at each balance sheet 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. Assets are written off when there is no reasonable expectation of recovery. The Company continues to engage with parties whose balances are written off and attempts to enforce repayment. Recoveries made are recognized in statement of profit and loss. The maximum exposure to credit risk at the balance sheet date is the carrying value of each class of financial assets.

(b) Liquidity risk

Liquidity risk is defined as the risk that the company will not be able to settle or meet its obligation on time or at reasonable price. Prudent liquidity risk management implies maintaining sufficient cash and marketable securities and the availability of funding through an adequate amount of committed credit facilities to meet obligations when due. Due to the nature of the business, the Company maintains flexibility in funding by maintaining availability under committed facilities. Management monitors rolling forecasts of the Company''s liquidity position and cash and cash equivalents on the basis of expected cash flows. The Company takes into account the liquidity of the market in which the entity operates.The tables below summarises the Company''s financial liabilities into relevant maturity groupings based on their contractual maturities:

Market risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of change in market prices. Market rate risk comprises of currency risk, interest rate risk and other price risk such as equity price risk and commodity risk.

Foreign currency risk

Foreign currency risk is the risk of impact related to fair value of future cash flows if an exposure in foreign currency, which fluctuate due to change in forign currency rate. The Company''s exposure to the risk of changes in foreign exchange rates relates primarily to the Company''s foreign currency denominated borrowings and trade payables. The foreign currency risk is unhedged.

Interest rate risk

Interest rate risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of change in market interest rate.

i) Liabilities

The Company''s fixed rate borrowings are carried at amortised cost. They are, therefore, not subject to interest rate risk as defined in Ind AS 107, since neither the carrying amount nor the future cash flows will fluctuate because of a change in market interest rates.

The Company has no variable rate borrowings.

ii) Assets

The company''s fixed deposits and loans are carried at fixed rate. Therefore, these are not subject to interest rate risk as defined in Ind AS 107, since neither the carrying amount nor the future cash flows will fluctuate because of a change in market interest rates.

Price risk

Price risk is the risk that the fair value of financial instrument will fluctuate due to change in market traded price.

The Company is not exposure to any price risk arises from investments held and classified as FVTPL. To manage the price risk arising from investments in mutual funds, the Company diversifies its portfolio of assets.

11. Capital Management

Risk management

For the purpose of the Company''s capital management, capital includes issued equity capital, securities premium and all other equity reserves attributable to the equity share-holders of the Company. The Company''s objective when managing capital is to safeguard its ability to continue as a going concern so that it can continue to provide returns to shareholders and other stake holders and maintain an optimal capital structure to reduce the cost of Capital.

The Company manages its capital structure and makes adjustments in light of changes in the financial condition and the requirements of the financial covenants. To maintain or adjust the capital structure, the Company may adjust the dividend payment to shareholders, return capital to shareholders (buy back its shares) or issue new shares.

In order to achieve this overall objective, the Company''s capital management, amongst other things, aims to ensure that it meets financial covenants attached to the interest-bearing loans and borrowings that define capital structure requirements. The Company has complied with these covenants.

*Net profitafter tax non cash operating expenses Finance costs # Includes Interest Principal repayment

##Includes Net worth borrowing lease liabilities deferred tax liabilities Reasons for variance in ratios:

1 The current ratio has decreased due to increase in the advance given to vendors resulting in increase in current assets

2 The debt-equity ratio has increased as the Company has raised the term loan from IREDA

3 The debt service coverage ratio has increased as the Company has raised the term loan from IREDA

4 The return on Equity has decreased due to loss incurred in the current year relating to impairment/ discard of property, plant

and equipment

5 The Inventory Turnover Ratio has increased due to increase in revenue from operation during the year

6 The Trade Receivables turnover ratio has increased due to increase in revenue from operation during the year

7 The Trade payables turnover ratio has increased during the year due to increase in the amount of purchase made during

the year

8 The Return on Capital employed has decreased due to loss incurred in the current year relating to impairment/ discard of property, plant and equipment Komex Inc, Operational Creditor have filed applications with NCLT to initiate Corporate Insolvency Resolution Process under the Insolvency and Bankruptcy Code, 2016. Presently, applications are pending with NCLT. The Settlement with the Creditor is in progress.

b) Disclosure required under Additional regulatory information as prescribed under paragraph WB to general instructions for preparation of Balance Sheet under Schedule III to the Companies Act, 2013 are not applicable to the Company except as disclosed in Para (a) and (b) above.

13 Additional Regulatory Information

As per Section 135 of the Companies Act, 2013, a company, meeting the applicability threshold, needs to spend at least 2% of its average net profit for the immediately preceding three financial years on corporate social responsibility (CSR) activities. The areas for CSR activities are eradication of hunger and malnutrition, promoting education, art and culture, healthcare, destitute care and rehabilitation, environment sustainability, disaster relief, COVID-19 relief and rural development projects. A CSR committee has

16 The previous year''s figures have been regrouped, rearranged and reclassified wherever necessary to comply with the amendment in Division II to the Schedule III to the Companies Act, 2012. Amounts and other disclosures for the preceding year are included as an integral part of the current year financial statements and are to be read in relation to the amounts and other disclosures relating to the current year.

As per our report of even date.

For G. P Agrawal & Co. For and on behalf of the Board of Directors

Chartered Accountants

Firm Registration No. - 302082E

(CA. Sunita Kedia) S.L.Agarwal Sanjana Khaitan

Partner Managing Director Director & CFO

Membership No. 060162 DIN No. 00189898 DIN No. 07232095

Raju Sharma

Place of Signature: Kolkata Company Secretary

Date: The 29^th Day of May, 2024 Membership No. : A27886

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Mar 31, 2023

1. Capital work-in-progress amounted to Rs. 239.53 Lakh (Previous year: Rs. Nil) primarily includes Plant & Machinery under construction.

2. For Capital commitment with regards to Property, plant and equipment Refer Note No. 34 (1).

3. Refer note 34.12(b) for ageing of Capital work in Progress.

1. Leasehold Land of Falta SEZ unit has been acquired under a lease of 15 years with a renewal option against which right of use assets is created as per Ind AS 116.

2. Refer Note 34.7 for lease disclosure

In determining the allowance for credit losses of trade receivable, the Company has used a practical expedient by computing the expected credit loss allowance for trade receivable based on a provision matrix. The provision matrix takes into account the historical credit loss experience. The expected credit loss allowance is based on the ageing of the recivables that are due and rates used in the provision matrix.

* Includes due from a related party as at 31^st March, 2023 Rs. Nil (P.Y. Rs. 8.56 lakh).

**During the year, the Company had allotted 10,87,880 shares of face value of Rs. 10 each on a preferential basis to it’s related party Websol Green Projects Private Limited at a stipulated price of Rs. 108 per equity share, pursuant to conversion of loan into shares on 02.11.2022.

(d) The Company has only one class of equity shares having a par value of Rs. 10/- per Equity share. Each holder of equity shares is entitled to vote one per equity share held. All equity shares ranks pari passu with respect to the dividend, voting rights and other terms. The dividend proposed, if any, by the Board of Directors is subject to the approval of the shareholders in the ensuring Annual General Meeting. In the event of the liquidation of the company, the equity shareholders are eligible to receive remaining assets of the company after distribution of all preferential amounts, in proportion to their shareholding.

(g) Foreign Currency Convertible Found (FCCB) amounting to US$ 16.80 million issued by the Company in earlier years was restructured vide a written resolution dated 7^th December, 2016 signed by the bondholders and consequently, a supplementary trust deed was executed on the same date between the Company and the trustee. Post restructuring, the bond convertible into equity shares of the Company at the option of the Bond Holders. During the previous year, FCCB converted into equity shares.

1 Capital Reserve represents various capital receipts such as subsidy, share application money forfeited, receipt on settlement of loan, etc.

2 Securities Premium is used to record the premium on issue of shares. This reserve is being utilised in accordance with the provisions of the Act.

3 Retained Earnings represents the undistributed profit / amount of accumulated earnings of the Company.

4 Remeasurement of defined benefit plans comprises actuarial gains and losses which are recognised in other comprehensive income and then immediately transferred to retained earnings.

i) Nature of security:

Term loan from Invent was primarily secured by way of first pari passu charge on mortgage / hypothecation over 90 MW cell line, plant and equipment including land of Falta unit measuring 28,576.84 sq mts.

It is not possible to estimate the timing/uncertainties relating to utilisation /reversal from the provision for contingencies. Future cash outflow in respect of the above is determinable only upon Court decision/out of Court settlement/disposal of appeals. The Company does not expect any reimbursement in respect of above provisions.

The ultimate realisation of deferred tax assets and carried forward tax losses / unabsorbed depreciation is dependent upon the generation of future taxable income. Deferred tax assets is recognised on management’s assessment of reasonable certainty for reversal/utilisation thereof against future taxable income.

(a) Sundry balances written back amounting to Rs. Nil (Previous Year Rs. 121.86 lakh) includes various credit balance, those were payable to various parties for trade payables and borrowings.

(b) Sundry balances written off amounting to Rs. 19.72 lakh (Previous Year Nil) includes excess debit balance of Cenvat Credit balance being written off.

(c) Write down of inventory includes includes write down in the value of inventory to NRV due to expiry of the materials amounting to Rs. 113.66 lakh (Previous Year Rs. Nil).

(d) Provision amounting to Rs. 116.55 lakh has been made as per High Court Order, rejecting the plea against settlement commision demand of Rs. 216.55 lakh. The company had paid Rs. 100 lakh and already provided for against this demand in the year 200405.

Note No. : 34 Other disclosures and additional regulatory information 1. Contingent liabilities (to the extent not provided for) (Rs. in Lakh)
Sl. No.	Particulars	As at 31st March, 2023	As at 31st March, 2022
A.	Contingent liabilities :
	Claims against the Company not acknowledged as debts :
	(i) Excise duty and penalty	57.12	187.54
	(ii) Trade payable- Liquidated damages	-	20.00
	(iii) Employee Provident Fund	11.68	-
	(iv) Income Tax	2,797.58	487.28
		2,866.38	694.82
B.	Capital Commitments and Advances:
	Capital Commitment - Property, plant and equipment	15,158.91	5.85
	Capital advance given	3,028.09	5.85
	Letter of comfort issued on behalf of a related party	590.00	-

The amounts shown above represent the best possible estimates arrived at on the basis of available information. The uncertainties and timing of the cash flows are dependent on the outcome of different legal processes which have been invoked by the Company or the claimants, as the case may be and, therefore, cannot be estimated accurately. The Company does not expect any reimbursement in respect of above contingent liabilities.

In the opinion of the management, no provision is considered necessary for the disputes mentioned above on the ground that there are fair chances of successful outcome of the appeals.

The company’s product namely Solar Photovoltaic Modules carry a warranty of 25 years as per International Standards.

A fair estimate of future liability that may arise on this account is not ascertainable. The same shall be accounted for as and when any claim occurs.

2. The company has received 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 on 31 March 2023 as micro, small and medium enterprises. Consequently, the amount due to micro and small enterprises as per requirement of Section 22 of the Micro, Small and Medium Enterprises Development Act, 2006 is Rs. 13.15 Lakh (31^st March 2022 - 8.21 Lakh) as follows:

3. Operating segment

The Company is primarily engaged in only one product line i.e., Solar photo-Voltaic Cells and Modules. All the activities of the Company revolve around the main business. As such there are no separate reportable segments as per requirements of Accounting Standard (Ind AS- 108) on operating segment. Further, the Company operates only in India, hence additional information under geographical segments is also not applicable. The Director of the Company has been identified as the Chief Operating Decision Maker (CODM). The Chief Operating Decision Maker also monitors the operating results as one single segment for the purpose of making decisions about resource allocation and performance assessment and hence, there are no additional disclosures to be provided other than those already provided in the financial statements.

4 Employee Benefits :

As per Indian Accounting Standard - 19 “ Employee Benefits”, the disclosures of Employee Benefits are as follows:

a) Defined Contribution Plan :

Employee benefits in the form of Provident Fund and Employee State Insurance Corporation are considered as defined contribution plan.

Retiring gratuity

The Company operates a defined benefit plan (the gratuity plan) covering eligible employees, which provides a lump sum payment to vested employees at retirement, death, incapacitation or termination of employment, of an amount based on the respective employees salary and the tenure of employment. The liability was funded till last year and unfunded in current year. The Company accounted for the liability for gratuity benefits payable in the future based on an actuarial valuation. The Company was exposed to interest risk, liquidity risk, salary escalation risk, demographic risk, regulatory risk.

i. Interest risk: The defined benefit obligation calculated uses a discount rate based on government bonds. If bond yields fall, the defined benefit obligation will tend to increase.

ii. Liquidity risk: This is the risk that the Company is not able to meet the short-term gratuity payouts. This may arise due to non-availability of enough cash / cash equivalent to meet the liabilities or holding of illiquid assets not being sold in time.

iii. Salary Escalation risk: Higher than expected increases in salary will increase the defined benefit obligation.

iv. Demographic risk: This is the risk of variability of results due to unsystematic nature of decrements that include mortality, withdrawal, disability and retirement. The effect of these decrements on the defined benefit obligation is not straight forward and depends upon the combination of salary increase, discount rate and vesting criteria. It is important not to overstate withdrawals because in the financial analysis the retirement benefit of a short career employee typically costs less per year as compared to a long service employee.

v. Regulatory risk: Gratuity benefit is paid in accordance with the requirements of the Payment of Gratuity Act , 1972 (as amended from time to time). There is a risk of change in regulations requiring higher gratuity payouts (e.g. Increase in the maximum limit on gratuity of Rs. 20 Lakh).

The present value of the defined benefit obligation, and the related current service cost and past service cost, were measured using the projected unit credit method.

The current service cost and the net interest expense for the year are included in the "Employee benefit expenses" (Note 27) line item in the statement of profit and loss

The remeasurement of the net defined liability is included in other comprehensive income.

5. Details of Loan, guarantee and Investments covered under section 186 (4) of the Companies Act, 2013 :

The Company has neither given any Loans, security or guarantee nor made any investment during the year.

6. Disclosure under Regulation 34(3) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015

There are no transactions which are required to be disclosed under Schedule V to the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

7. Lease disclosure

a) The Company has adopted IND AS 116 “Leases” with the date of initial application being 1^st April, 2019, using the modified retrospective method.

b) Lease Liabilities is being measured by discounting the lease payments using incremental borrowing rate i.e., 8.00% p.a.

Note : The above remuneration does not include provision for gratuity which is determined for the Company as a whole.

d) The transactions with related parties have been entered at an amount which are not materially different from those on normal commercial terms.

e) The amounts outstanding are unsecured and will be settled in cash. No guarantees have been given or received except comfort letter issued to a lender for loan taken by relative of Managing Director.

f) The company issued and allotted 15,00,000 Equity Shares pursuant to conversion of warrant to the Managing Director i.e Mr. Sohanlal Agarwal at the rate of Rs. 50 per warrant by subscribing to one Equity share per warrant of face value of Rs. 10 each aggregating to Rs. 1,50,00,000 (Previous year Nil).

g) Figures in brackets-( ) represents for year ended 31^st March, 2022

B. Fair value hierarchy

The fair value of the financial assets and financial liabilities are included at the amount at which the instrument could be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale.

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 or indirectly.

Level 3: Inputs for the assets or liabilities that are not based on observable market data (unobservable inputs).

Fair value of cash and cash equivalents, bank balances other than cash and cash equivalents, trade receivables and other current financial assets, short term borrowings, trade payables and other current financial liabilities is considered to be equal to the carrying amounts of these items due to their short-term nature.

Where such items are non-current in nature, the same has been classified as Level 3 and fair value determined using adjusted net asset value method.

There has been no change in the valuation methodology for Level 3 inputs during the year. The Company has not classified any material financial instruments under Level 3 of the fair value hierarchy. There were no transfers between Level 1 and Level 2.

Financial assets and financial liabilities measured at fair value on a recurring basis as at 31^st March, 2023 Nil (31^st March, 2022 : Nil).

10. Financial risk management objectives and policies

The Company’s activities expose it to market risk, liquidity risk and credit risk. The Company’s Board of Directors has overall responsibility for the establishment and oversight of the Company’s risk management framework. This note explains the sources of risk which the entity is exposed to and how the entity manages the risk and the related impact in the financial statements.

(a) Credit risk

Credit risk is the risk that a counterparty will not meet its obligations under financial instrument or a customer contract leading to a financial loss. The Company is exposure to credit risk from its operating activities primarily trade receivables with exchanges and from its financing activities including deposits placed with bank and other financial instruments/assets. Credit risk from balances with bank and other financial instrument is managed in accordance with company’s policies.

Credit risk arising from balances with banks and other cash equivalents is limited and no collaterals are held against these because the counterparties are banks and recognised financial institutions with high credit ratings assigned by credit rating agencies.

Other financial assets measured at amortized cost includes security deposits and others. Credit risk related to these financial assets are managed by monitoring the recoverability of such amounts continuously, while at the same time internal control system is in place to ensure that the amounts are within defined limits.

Customer credit risk is managed as per company’s established policy, procedure and control related to credit risk management. Credit quality of the customer is assessed based on his previous track record and funds & securities held by him in his account amd individual credit limit are defined according to this assessment. Outstanding customer receivables are regularly monitored. An impairment analysis is performed at each balance sheet 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. Assets are written off when there is no reasonable expectation of recovery. The Company continues to engage with parties whose balances are written off and attempts to enforce repayment. Recoveries made are recognized in statement of profit and loss. The maximum exposure to credit risk at the balance sheet date is the carrying value of each class of financial assets.

The Company assesses and manages credit risk of financial assets on the basis of assumptions, inputs and factors specific to the class of financial assets. The Company provides for expected credit loss on Cash and cash equivalents, other bank balances, loans, trade receivables and other financial assets based on 12 months expected credit loss/life time expected credit loss/ fully provided for. Life time expected credit loss is provided for trade receivables.

Expected credit loss for trade receivables under simplified approach

In respect of trade receivables, the Company considers provision for lifetime expected credit loss. Given the nature of business operations, the Company’s trade receivables has low credit risk. Further, historical trends indicate any shortfall between such deposits held by the Company and amounts due from customers have been negligible. Hence, no loss allowances using life time expected credit loss mode is required.

Liquidity risk is defined as the risk that the company will not be able to settle or meet its obligation on time or at reasonable price. Prudent liquidity risk management implies maintaining sufficient cash and marketable securities and the availability of funding through an adequate amount of committed credit facilities to meet obligations when due. Due to the nature of the business, the Company maintains flexibility in funding by maintaining availability under committed facilities. Management monitors rolling forecasts of the Company’s liquidity position and cash and cash equivalents on the basis of expected cash flows. The Company takes into account the liquidity of the market in which the entity operates.

(c) Market risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of change in market prices. Market rate risk comprises of currency risk, interest rate risk and other price risk such as equity price risk and commodity risk.

Foreign currency risk

Foreign currency risk is the risk of impact related to fair value of future cash flows if an exposure in foreign currency, which fluctuate due to change in forign currency rate. The Company’s exposure to the risk of changes in foreign exchange rates relates primarily to the Company’s foreign currency denominated trade payables. The foreign currency risk is unhedged.

Interest rate risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of change in market interest rate.

i) Liabilities

The Company’s fixed rate borrowings are carried at amortised cost. They are, therefore, not subject to interest rate risk as defined in Ind AS 107, since neither the carrying amount nor the future cash flows will fluctuate because of a change in market interest rates.

The Company has no variable rate borrowings.

ii) Assets

The company’s fixed deposits and loans are carried at fixed rate. Therefore, these are not subject to interest rate risk as defined in Ind AS 107, since neither the carrying amount nor the future cash flows will fluctuate because of a change in market interest rates.

Price risk

Price risk is the risk that the fair value of financial instrument will fluctuate due to change in market traded price.

The Company has no investment in shares or other securities.

11. Capital Management Risk management

For the purpose of the Company’s capital management, capital includes issued equity capital, securities premium and all other equity reserves attributable to the equity share-holders of the Company. The Company’s objective when managing capital is to safeguard its ability to continue as a going concern so that it can continue to provide returns to shareholders and other stake holders and maintain an optimal capital structure to reduce the cost of Capital.

The Company manages its capital structure and makes adjustments in light of changes in the financial condition and the requirements of the financial covenants. To maintain or adjust the capital structure, the Company may adjust the dividend payment to shareholders, return capital to shareholders (buy back its shares) or issue new shares.

In order to achieve this overall objective, the Company’s capital management, amongst other things, aims to ensure that it meets financial covenants attached to the interest-bearing loans and borrowings that define capital structure requirements. The Company has complied with these covenants.

No changes were made in the objectives, policies or processes for managing capital during the year ended 31^st March, 2023 and 31^st March, 2022.

c) Disclosure required under Additional regulatory information as prescribed under paragraph WB to general instructions for preparation of Balance Sheet under Schedule III to the Companies Act, 2013 are not applicable to the Company except as disclosed in Para (a) and (b) above.

13 Corporate Social Responsibility

As per Section 135 of the Companies Act, 2013, a company, meeting the applicability threshold, needs to spend at least 2% of its average net profit for the immediately preceding three financial years on corporate social responsibility (CSR) activities. The areas for CSR activities are eradication of hunger and malnutrition, promoting education, art and culture, healthcare, destitute care and rehabilitation, environment sustainability, disaster relief, COVID-19 relief and rural development projects. A CSR committee has been formed by the company as per the Act. The funds were primarily allocated to a corpus and utilized through the year on these activities which are specified in Schedule VII of the Companies Act, 2013:

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Mar 31, 2018

Note 1. : Corporate information

Websol Energy Systems Limited ("the Company") is a public limited entity incorporated in India and is engaged in the business of manufacturing Solar Photo-Voltaic Cells and Modules.

Its registered office is situated at 48, Pramatha Choudhury Sarani, Plot No 849, Block - P, 2nd Floor, New Alipore, Kolkata (West Bengal). The financial statements for the year ended 31st March, 2018 were approved for issue by the Board of Directors on 11th June, 2018.

Note 2. : Use of estimates and judgements

The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities at the date of the financial statements and the results of operations during the reporting period end. Although these estimates are based upon management’s best knowledge of current events and actions, actual results could differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.

Key sources of estimation uncertainty

The following are the key assumptions concerning the future and other key sources of estimation uncertainty at the end of the reporting period that may have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year.

(i) Useful lives of property, plant and equipment:

The Company reviews the useful life of property, plant and equipment at the end of each reporting period. This reassessment may result in a change in depreciation expense in future periods.

(ii) Fair value measurement

When the fair value of financial assets and financial liabilities recorded in the balance sheet cannot be measured based on quoted prices in active markets, their fair value is measured using valuation techniques. The inputs to these models are taken from observable markets where possible, but where this is not feasible, a degree of judgement is required in establishing fair values. Judgements include considerations of inputs such as liquidity risk, credit risk and volatility. Changes in assumptions about these factors could affect the reported fair value of financial instruments.

(iii) Provisions and contingent liabilities

The Company has ongoing litigations with various regulatory authorities and third parties. Where an outflow of funds is believed to be probable and a reliable estimate of the outcome of the dispute can be made based on management’s assessment of specific circumstances of each dispute and relevant external advice, management provides for its best estimate of the liability. Such accruals are by nature complex and can take a number of years to resolve and can involve estimation uncertainty. Information about such litigations is provided in notes to the financial statements.

Notes:

1. Leasehold Land of Salt Lake unit has been acquired under a lease of 90 years with a renewal option.

2. Leasehold Land of Falta SEZ unit has been acquired under a lease of 1 5 years with a renewal option.

3. Refer note no. 18 (i) and (ii) for assets hypothecated as security for borrowings.

(d) The Company has only one class of equity shares having a par value of H10/- per Equity share. Each holder of equity shares is entitled to vote one per equity share held. All equity shares rank pari passu with respect to the dividend, voting rights and other terms. The dividend proposed, if any, by the Board of Directors is subject to the approval of the shareholders in the ensuring Annual General Meeting. In the event of the liquidation of the company, normally the equity shareholders are eligible to receive the remaining assets of the company after distribution of all preferential amounts, in proportion to their shareholding.

Nature of securities:

i) Term loan (Facility A and Facility B) from bank was secured by way of first pari passu charge on the entire property, plant and equipments of the Company situated at the Falta SEZ Unit and second pari passu charge on the entire current assets of the Company and guaranteed by Managing director and corporate guarantee of the promoter company.

ii) Term loan from Invent is primarily secured by way of first pari passu charge on mortgage / hypothecation over 90 MW property, plant and equipment including land of Falta unit measuring 28,576. 84 sq mts. Along with that, the loan is collaterally secured by way of first pari passu on the equitable mortgage of industrial plot at Sector V, Salt lake electronics complex measuring 1.06 acre on pari passu basis.

Nature of securities:

(i) Working capital loan from the bank is secured by way of a first pari passu charge on the entire current assets of the Company and second pari passu charge on the entire property, plant and equipments of the Company situated at Falta SEZ Unit and guaranteed by Managing director and corporate guarantee of the promoter company.

(ii) Machinery purchase loan is secured by way of hypothecation of respective machinery so procured.

(iv) The amounts shown above represent the best possible estimates arrived at on the basis of available information. The uncertainties and timing of the cash flows are dependent on the outcome of different legal processes which have been invoked by the Company or the claimants, as the case may be and, therefore, cannot be estimated accurately. The Company does not expect any reimbursement in respect of above contingent liabilities.

In the opinion of the management, no provision is considered necessary for the disputes mentioned above on the ground that there are fair chances of successful outcome of the appeals.

(v) The company''s product namely Solar Photovoltaic Modules carry a warranty of 25 years as per International Standards. A fair estimate of future liability that may arise on this account is not ascertainable. The same shall be accounted for as and when any claim occurs.

*Company has paid Rs. 55 Lakhs under protest and appeal has been filed against the demand raised by the department

**The Company has paid Rs. 100 Lakhs against this demand in the year 2004-05

3. 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 on 31 March 2018 as micro, small and medium enterprises. Consequently, the amount due to micro and small enterprises as per requirement of Section 22 of the Micro, Small and Medium Enterprises Development Act, 2006 is Nil (31st March 2017 - Nil, 1st April 2016 - Nil).

4. Operating segment

The Company is primarily engaged in only one product line i.e., Solar Photo-Voltaic Cells and Modules. All the activities of the Company revolve around the main business. As such there are no separate reportable segments as per requirements of Accounting Standard (Ind AS- 108) on operating segment. Further, the Company operates only in India, hence additional information under geographical segments is also not applicable. The Director of the Company has been identified as the Chief Operating Decision Maker (CODM). The Chief Operating Decision Maker also monitors the operating results as one single segment for the purpose of making decisions about resource allocation and performance assessment and hence, there are no additional disclosures to be provided other than those already provided in the financial statements.

5. Foreign currency convertible bonds (FCCB) of the company was settled with the Bond Holders and the total amount of outstanding FCCB’s for $ 16.8 million plus accrued and penal interest on default made by the Company was settled for $ 12 million. A supplementary trust deed was executed between the Company, Bond holder and the trustees for the bonds on 7th december, 2016. Profits arised out of the settlement on account of the principal amount of loan was transferred to capital reserve and profit arised on account of exchange fluctuation was transferred to Statement of profit and loss.

6. Employee Benefits :

As per Indian Accounting Standard - 19 " Employee Benefits", the disclosures of Employee Benefits is as follows:

Defined Contribution Plan :

Employee benefits in the form of Provident Fund and Employee State Insurance Corporation are considered as defined contribution plan.

7. Details of Loan, guarantee and Investments covered under section 186 (4) of the Companies Act, 2013 :

All loans and securities as disclosed in respective notes are provided for business purposes. The Company has not given any guarantee during the year.

8. Disclosure under Regulation 34(3) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015

There are no transactions which are required to be disclosed under Schedule V to the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

9. Lease disclosure Finance lease taken

The Company’s significant leasing arrangements is in respect of financial leases for factory in salt lake and falta. Leasehold land of Salt Lake unit has been acquired under a lease of 90 years with a renewal option and Leasehold land of Falta SEZ unit has been acquired under a lease of 15 years with a renewal option. The aggregate lease rentals payable are charged as ''Rent’ under note no. 33.

d) The transactions with related parties have been entered at an amount which are not materially different from those on normal commercial terms.

e) The amounts outstanding are unsecured and will be settled in cash. No guarantees have been given or received. No expense has been recognized in current year and previous year for bad or doubtful debts in respect of the amounts owed by related parties.

f) The remuneration of directors is determined by the Nomination & Remuneration Committee having regard to the performance of individuals and market trends.

g) Figures in brackets-( ) represents for year ended 31st March, 2017 and [ ] represents as at 1st April, 2016.

B. Fair value hierarchy

The fair value of the financial assets and financial liabilities are included at the amount at which the instrument could be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale.

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 or indirectly.

Level 3: Inputs for the assets or liabilities that are not based on observable market data (unobservable inputs).

Fair value of cash and cash equivalents, bank balances other than cash and cash equivalents, trade receivables, loans and other current financial assets, short term borrowings, trade payables and other current financial liabilities is considered to be equal to the carrying amounts of these items due to their short-term nature.

Where such items are Non-current in nature, the same has been classified as Level 3 and fair value determined using adjusted net asset value method.

There has been no change in the valuation methodology for Level 3 inputs during the year. The Company has not classified any material financial instruments under Level 3 of the fair value hierarchy. There were no transfers between Level 1 and Level 2.

Financial assets and financial liabilities measured at fair value on a recurring basis as at 31st March, 2018 Nil (31st March, 2017 : Nil, 1st April, 2016 : Nil).

1. Financial risk management objectives and policies

The Company’s activities expose it to market risk, liquidity risk and credit risk. The Company’s Board of Directors has overall responsibility for the establishment and oversight of the Company’s risk management framework. This note explains the sources of risk which the entity is exposed to and how the entity manages the risk and the related impact in the financial statements.

(a) Credit risk

Credit risk is the risk that a counterparty will not meet its obligations under financial instrument or a customer contract leading to a financial loss. The Company is exposure to credit risk from its operating activities primarily trade receivables with exchanges and from its financing activities including deposits placed with bank and other financial instruments/assets. Credit risk from balances with bank and other financial instrument is managed in accordance with company’s policies.

Credit risk arising from balances with banks and other cash equivalents is limited and no collaterals are held against these because the counterparties are banks and recognized financial institutions with high credit ratings assigned by credit rating agencies.

Loans and other financial assets measured at amortized cost includes loans to related parties, security deposits and others. Credit risk related to these financial assets are managed by monitoring the recoverability of such amounts continuously, while at the same time internal control system is in place to ensure that the amounts are within defined limits.

Customer credit risk is managed as per company’s established policy, procedure and control related to credit risk management. Credit quality of the customer is assessed based on his previous track record and funds & securities held by him in his account and individual credit limit are defined according to this assessment. Outstanding customer receivables are regularly monitored. An impairment analysis is performed at each balance sheet 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. Assets are written off when there is no reasonable expectation of recovery. The Company continues to engage with parties whose balances are written off and attempts to enforce repayment. Recoveries made are recognized in statement of profit and loss. The maximum exposure to credit risk at the balance sheet date is the carrying value of each class of financial assets.

The Company assesses and manages credit risk of financial assets on the basis of assumptions, inputs and factors specific to the class of financial assets. The Company provides for expected credit loss on Cash and cash equivalents, other bank balances, investments, loans, trade receivables and other financial assets based on 12 months expected credit loss/life time expected credit loss/ fully provided for. Life time expected credit loss is provided for trade receivables.

Expected credit loss for trade receivables under simplified approach

In respect of trade receivables, the Company considers provision for lifetime expected credit loss. Given the nature of business operations, the Company’s trade receivables has low credit risk. Further, historical trends indicate any shortfall between such deposits held by the Company and amounts due from customers have been negligible. Hence, no loss allowances using life time expected credit loss mode is required.

(b) Liquidity risk

Liquidity risk is defined as the risk that the company will not be able to settle or meet its obligation on time or at reasonable price. Prudent liquidity risk management implies maintaining sufficient cash and marketable securities and the availability of funding through an adequate amount of committed credit facilities to meet obligations when due. Due to the nature of the business, the Company maintains flexibility in funding by maintaining availability under committed facilities. Management monitors rolling forecasts of the Company’s liquidity position and cash and cash equivalents on the basis of expected cash flows. The Company takes into account the liquidity of the market in which the entity operates.

The tables below summarize the Company’s financial liabilities into relevant maturity groupings based on their contractual maturities.

(c) Market risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of change in market prices. Market rate risk comprises of currency risk, interest rate risk and other price risk such as equity price risk and commodity risk.

Foreign currency risk

Foreign currency risk is the risk of impact related to fair value of future cash flows if an exposure in foreign currency, which fluctuate due to change in foreign currency rate. The Company’s exposure to the risk of changes in foreign exchange rates relates primarily to the Company’s foreign currency denominated borrowings and trade payables. The foreign currency risk is unhedged.

Interest rate risk

Interest rate risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of change in market interest rate.

i) Liabilities

The Company’s fixed rate borrowings are carried at amortised cost. They are, therefore, not subject to interest rate risk as defined in Ind AS 107, since neither the carrying amount nor the future cash flows will fluctuate because of a change in market interest rates.

The Company has no variable rate borrowings.

ii) Assets

The company’s fixed deposits and loans are carried at fixed rate. Therefore, these are not subject to interest rate risk as defined in Ind AS 107, since neither the carrying amount nor the future cash flows will fluctuate because of a change in market interest rates.

Price risk

Price risk is the risk that the fair value of financial instrument will fluctuate due to change in market traded price.

The Company’s exposure to price risk arises from investments held and classified as FVTPL. To manage the price risk arising from investments in mutual funds, the Company diversifies its portfolio of assets.

10. Capital Management Risk management

For the purpose of the Company’s capital management, capital includes issued equity capital, securities premium and all other equity reserves attributable to the equity share-holders of the Company. The Company’s objective when managing capital is to safeguard its ability to continue as a going concern so that it can continue to provide returns to shareholders and other stake holders and maintain an optimal capital structure to reduce the cost of Capital.

The Company manages its capital structure and makes adjustments in light of changes in the financial condition and the requirements of the financial covenants. To maintain or adjust the capital structure, the Company may adjust the dividend payment to shareholders, return capital to shareholders (buy back its shares) or issue new shares.

In order to achieve this overall objective, the Company’s capital management, amongst other things, aims to ensure that it meets financial covenants attached to the interest-bearing loans and borrowings that define capital structure requirements. The Company has complied with these covenants.

No changes were made in the objectives, policies or processes for managing capital during the year ended 31st March, 2018 and 31st March, 2017.

* Net debt = non-current borrowings current borrowings current maturities of non-current borrowings interest accrued -cash and cash equivalents.

11. First-time Adoption of Ind AS

(i) These financial statements, for the year ended 31st March, 2018, are the first financial statements, the Company has prepared in accordance with Ind AS.

Accordingly, the Company has prepared financial statements which comply with Ind AS applicable for year ended 31st March, 2018, together with the comparative figures for the year ended 31st March, 2017, as described in the summary of significant accounting policies [Refer Note No.2-3].

The Company has prepared the opening Balance Sheet as per Ind AS as of 1st April, 2016 (the transition date) by:

a. recognising all assets and liabilities whose recognition is required by Ind AS,

b. not recognising items of assets or liabilities which are not permitted by Ind AS,

c. reclassifying items from previous Generally Accepted Accounting Principles (GAAP) to Ind AS as required under Ind AS, and

d. applying Ind AS in measurement of recognized assets and liabilities.

(iii) Ind AS 101 mandates certain exceptions and allows first-time adopters exemptions from the retrospective application of certain requirements under Ind AS. The Company has applied the following exemptions in the financial statements:

a) "Property, plant and equipment and Intangible assets were carried in the Balance Sheet prepared in accordance with previous GAAP as on 31st March, 2016. Under Ind AS, the Company has elected to regard such carrying values as deemed cost at the date of transition.

b) Ind AS estimates as at 1st April 2016 are consistent with the estimates as at the same date made in conformity with previous GAAP. The Company made estimates for Impairment of financial assets based on expected credit loss model in accordance with Ind AS at the date of transition as these were not required under previous GAAP.

(iv) In addition to the above, the principal adjustments made by the Company in restating its previous GAAP financial statements, including the Balance Sheet as at 1st April, 2016 and the financial statements as at and for the year ended 31st March, 2017 are detailed below:

a) Under previous GAAP financial instruments i.e., loan given and borrowings taken which is non-current in nature, were initially recognized at transaction price. Under Ind AS, such financial instruments are initially recognized at fair value and subsequently carried at amortised cost determined using the effective interest rate. Any difference between transaction price and fair value affects profit and loss unless it quantifies for recognition as some other type of asset / liability.

b) Under previous GAAP, rent on finance lease is charged to profit and loss account under the head "Other expenses". Under Ind AS, lease obligation is recognized as at transition date is calculated as present value of future minimum lease rentals and difference of lease rent and present value of respective year lease obligation is charged to profit and loss under the head "Finance cost". Further, premium paid for finance lease is amortised over the period of lease.

c) Under previous GAAP loans is carried at cost. Under Ind AS, loan has been carried at fair value considering expected credit losses.

d) Under previous GAAP investments is carried at cost, however, provision can be made on permanent decline in the value of investments. Under Ind AS, non-current investments is carried at fair value.

e) Retained earnings and statement of profit and loss has been adjusted consequent to the Ind AS transition adjustments with corresponding impact to deferred tax, wherever applicable.

f) Under Ind AS, there is no impact on cash flow statement.

12. Standards issued but not yet effective:

The standard issued, but not yet effective up to the date of issuance of the Company financial statements is disclosed below. The Company intends to adopt this standard when it becomes effective.

Ind AS 115 Revenue from Contracts with Customers

Ind AS 115 was issued in February 2015 and establishes a five step model to account for revenue arising from contracts with customer. Under Ind AS 115 revenue is recognized at an amount that reflects the consideration to which an entity expects to be entitled in exchange for transferring goods or services to a customer. The new revenue standard will supersede all current revenue recognition requirements under Ind AS. This standard will come into force from accounting period commencing on or after 1st April 2018. The Company will adopt the new standard on the required effective date. During the current year, the Company performed a preliminary assessment of Ind AS 115, which is subject to changes arising from a more detailed ongoing analysis.

13. The previous year’s including figures as at the date of transition have been reworked, regrouped, rearranged and reclassified wherever necessary. Amounts and other disclosures for the preceding year including figures as at the date of transition are included as an integral part of the current year financial statements and are to be read in relation to the amounts and other disclosures relating to the current year.

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Mar 31, 2016

b. Terms and rights attached to the Equity shares

The Company has only one class of Equity Shares having a par value of Rs 10/- per Equity Share. Each holder of equity shares is entitled to one vote per equity share held. All equity shares ranks pari passu with respect to the dividend, voting rights and other terms. The Dividend proposed, if any, 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, normally the equity shareholders are eligible to receive remaining assets of the Company after distribution of all preferential amounts, in proportion to their shareholding .

c. 60,69,422 (27.62%) No. of Equity Shares of the company are held by promoter and the promoter group as on 31st March 2016

e. 99,86,533 nos. of Equitiy Shares of Rs.10/- each fully paid issued by way of Bonus Shares in financial year 2009-10

Notes :

1. Leasehold Land of Salt Lake unit has been acquired under a lease of 90 years with a renewal option.

2. Leasehold Land of Falta SEZ unit has been acquired under a lease of 15 years with a renewal option.

3 The Working Capital borrowing accounts of the Company continue to remain NPA as on the date of Balance sheet under review. Out of the five Working Capital lenders, Allahabad Bank, being in the capacity of the lead bank, has been assigned to an ARC(Invent Assets and Reconstruction Co Pvt Ltd) being intimated to the company vide their letter dated 17.02.2016 and Dena Bank has assigned its credit facilities in favour of M/s Asset Reconstruction Company (India) Ltd. (ARCIL) and as such all rights & obligations in respect of the credit facilities sanctioned & availed by the company from Dena Bank and Allahabad Bank have been transferred in the name of ARCIL and Invent Assets and Reconstruction Co Pvt Ltd.

4 The Company has not provided for interest payable on unsecured Loans obtained from various Companies due to inability of the company to make payment for the same.

5 Terms of repayment of term loans from Banks is as follows : Due to adverse financial position of the Company could not meet its repayment obligation, now the Company is in process of settling all the dues of banks.

6 The Company has completed the process of netting off of its imports and exports with the same party to the extent of 230.82 Lacs USD. The balance amount of approximately 79.70 Lacs USD is in process for applying to the AD banker for netting off.

7 Capital Contracts not provided for Rs.1593.60 Lacs stands unexecuted and cancelled by the company (Previous period Rs.1593.60 Lacs). Total Advances paid there against Rs 457.10 Lacs including Rs.346.15 Lacs in foreign currency (Previous period Rs.553.03 Lacs including Rs.345.75 Lacs in Foreign Currency) are still lying with the creditors and company is in the process of recovery of these amounts.

8 Contingent Liabilities -

(a) The Company''s product, namely, Solar Photovoltaic Modules carry a warranty of 25 years as per International Standards. A fair estimate of future liability that may arise on this account is not ascertainable. The same shall be accounted for as and when any claim occurs.

(b) Demand against the legal expenses and interest by certain Sundry Creditors, amount of which is not ascertainable.

9 Based on and to the extent of information obtained from the suppliers regarding their status as Micro, Small or Medium Enterprises under the Micro, Small and Medium Enterprises Development Act, 2006 there are no amounts overdue to them as at the end of the year under reporting.

10 (a) As the Company has incurred losses in the current year, both as per statement of Profit & Loss and Income Tax computation, the measurement of deferred tax liability has not been considered.

(b) Since the Company has incurred losses for the last 3 years and there is no reasonable certainty that sufficient future taxable income will be available, the measurement of deferred tax asset has not been considered in these accounts.

11 Amounts paid / payable to Statutory Auditors -

(a) Audit fees Rs.3.15 Lacs (Previous period Rs.2.85 Lacs), plus the applicable service tax.

(b) In other capacity in respect of certification work Rs.0.55 Lacs (Previous period Rs.0.50 Lacs) plus the applicable service tax.

12 Balances of Debtors, Creditors, Security Deposits, Certain Bank Accounts and Loans and Advances are subject to confirmation and reconciliation with respective parties.

13 Since the Company is dealing in only one product i.e., Solar Photo-Voltaic Cells and Modules, segmental reporting as prescribed under Accounting Standard 17 is not applicable.

14 A Creditor has filed a suit against the company before honourable high court at Kolkata for recovery of '' 20 lacs. The company is fighting the case and if it goes against the company, the company will be liable to pay the said amount of Rs.20.00 lacs and other charges as may be determined by the court.

15 Previous period figures have been regrouped / rearranged wherever necessary to make them comparable with the current year figures.

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Mar 31, 2015

1 The Working Capital borrowing accounts of the Company continue to remain NPA as on the date of Balance sheet under review. Out of the fi ve Working Capital lenders, Allahabad Bank, being in the capacity of the lead bank, has taken symbolic possession of the Salt Lake land which was given as collateral security against the Working Capital loans. Further Dena Bank has assigned its credit facilities in favor of M/s Asset Reconstruction Company (India) Ltd. (ARCIL) and as such all rights & obligations in respect of the credit facilities sanctioned & availed by the company from Dena Bank fund have been transferred in the name of ARCIL.

2 The Company has not provided for interest payable on unsecured Loans obtained from various Companies due to the stipulation of the Working Capital Lenders in this regard, under the scheme of OTS.

3 The Company has recognized diminution in the value of certain fi xed assets pertaining to the erstwhile factory situated at Salt Lake and also installed at falta plant and as such discarded the obsolete / unusable fi xed assets having the cost of Rs..5759.10 Lacs and accumulated Depreciation of Rs. 1988.07 Lacs.

4 The Company is in the process of making third party adjustments / netting off on account of certain imports and exports from a same party. A part of netting off is complete to the extent of $ 9661825.97 of exports and $ 9666691.90 of imports and therefore debtors and creditors amounting $ 9666691.90 has been netted off in balance sheet as on 31.03.15. As such, there are balance amounts on account of same Sundry Debtors & Sundry Creditors which shall be adjusted against each other subject to the receipt of pending approval by the company in this regard from the concerned authorities.

5 Capital contracts not provided for Rs. 1593.60 Lacs stands unexecuted and cancelled by the company (Previous period Rs. 1593.60 Lacs). Total Advances paid there against Rs. 457.10 Lacs including Rs. 346.15 Lacs in foreign currency (Previous period Rs. 553.03 Lacs including Rs. 345.75 Lacs in Foreign Currency) are still lying wih the creditors and company is in the process of recovery of these amounts.

6 Contingent Liabilities –

(a) The Company's product, namely, Solar Photovoltaic Modules carry a warranty of 25 years as per International Standards. A fair estimate of future liability that may arise on this account is not ascertainable. T e same shall be accounted for as and when any claim occurs.

(b) Demand against the legal expenses and interest by certain Sundry Creditors, amount of which is not ascertainable.

(c) Demand of Rs. 8.96 Lacs against Interest and other payments on TDS by Income Tax Department.

7 Based on and to the extent of information obtained from the suppliers regarding their status as Micro, Small or Medium Enterprises under the Micro, Small and Medium Enterprises Development Act, 2006 there are no amounts overdue to them as at the end of the year under reporting.

8 (a) As the Company has incurred losses in the current year, both as per statement of Profi t & Loss and Income Tax computation, the measurement of deferred tax liability has not been considered.

(b) Since the Company has incurred losses for the last 3 years and there is no reasonable certainty that suffi cient future taxable income will be available, the measurement of deferred tax asset has not been considered in these accounts.

9 Amounts paid / payable to Statutory Auditors –

(a) Audit fees Rs. 2.85 Lacs (Previous period Rs. 2.65 Lacs), plus the applicable service tax.

(b) In other capacity in respect of certifi cation work Rs. 0.50 Lacs (Previous period Rs. 0.50 Lacs) plus the applicable service tax.

10 Balances of Debtors, Creditors, Security Deposits, Certain Bank Accounts and Loans and Advances are subject to confi rmation and reconciliation with respective parties.

11 Since the Company is dealing in only one product i.e., Solar Photo-Voltaic Cells and Modules, segmental reporting as prescribed under Accounting Standard 17 is not applicable.

12 Since the accounting year of the Company is from 01st April, 2014 to 31st March, 2015 these accounts are for a period of twelve months and the figures thereof are comparable with those of previous period which was also for twelve months i.e., 01st April, 2013 to 31st March, 2014.

13 Previous period figures have been regrouped / rearranged wherever necessary to make them comparable with the current year figures.

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Mar 31, 2014

A. Terms and rights attached to the Equity shares

The Company has only one class of Equity Shares having a par value of Rs. 10/- per Equity Share. Each holder of equity shares is entitled to one vote per equity share held. All equity shares ranks pari passu with respect to the dividend, voting rights and other terms.The Dividend proposed, if any, 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, normally the equity shareholders are eligible to receive remaining assets of the Company after distribution of all preferential amounts, in proportion to their shareholding.

B. 60,69,422 (27.62%) No. of Equity Shares of the company are held by promoter and the promoter group as on 31st March 2014

C. 99,86,533 nos. of Equitiy Shares of Rs.10/- each fully paid issued by way of Bonus Shares in financial year 2009-10.

2 The Working Capital borrowing accounts of the Company continue to remain NPA as on the date of Balance sheet under review. Out of the five Working Capital lenders, Allahabad Bank, being in the capacity of the lead bank, has taken symbolic possession of the Salt Lake land which was given as collateral security against the Working Capital loans. Further Dena Bank has assigned its credit facilities in favor of M/s Asset Reconstruction Company (India) Ltd. (ARCIL) and as such all rights & obligations in respect of the credit facilities sanctioned & availed by the company from Dena Bank fund have been transferred in the name of ARCIL.

3 The Company has not provided for interest payable on unsecured Loans obtained from various Companies due to the stipulation of the Working Capital Lenders in this regard, under the scheme of restructuring.

4 The Company has procured certain additional production equipments during the year from M/s Renesola Singapore Pte. Ltd. under the instalment purchase scheme. The said machines are hypothecated to Renesola Singapore Pte. Ltd. vide an agreement executed between the two Companies.

5 The Company has recognized diminution in the value of certain fixed assets pertaining to the erstwhile factory situated at Salt Lake and as such discarded the obsolete / unusable fixed assets having the cost of Rs. 415.61 Lacs and accumulated Depreciation of Rs. 232.70 Lacs.

6 The Company is in the process of making third party adjustments / nettng off on account of certain imports and exports. As such, there are certain amounts on account of Sundry Debtors & Sundry Creditors which shall be adjusted against each other subject to the receipt of necessary approval by the company in this regard from the concerned authorities.

7 (a) Estimated amounts of Capital Contracts as at 31st March, 2014 and not provided for Rs.1593.60 Lacs (Previous period Rs. 1330.96 Lacs). Total Advances paid there against Rs.553.03 Lacs including Rs.345.75 Lacs in foreign currency (Previous period Rs.694.91 Lacs including Rs.345.75 Lacs in Foreign Currency).

(b) Certain Advances, included above, amounting to Rs.542.62 Lacs (previous period Rs.542.62 Lacs) are lying unmoved for a considerable period.

8 Contingent Liabilities -

(a) Outstanding Bank Guarantees Rs.10.00 Lacs (Previous period Rs.46.27 Lacs)

(b) The Company''s product, namely, Solar Photovoltaic Modules carry a warranty of 25 years as per International Standards. A fair estimate of future liability that may arise on this account is not ascertainable. The same shall be accounted for as and when any claim occurs.

(c) Demands against the company not acknowledged as debts Rs.939.61 Lacs (Previous period Rs.1029.95 Lacs)

(d) Outstanding Capex Letter of Credits Rs.Nil (Previous period Rs. 4169.47 Lacs) for import of Capital Goods, since crystallized and debited to CC Account.

(e) Demand against the legal expenses and interest by HDFC Bank against their Outstanding Working Capital Loan.

(f) Demand against the legal expenses and interest by certain Sundry Creditors, amount of which is not ascertainable.

(g) Demand of Rs.8.96 Lacs against Interest and other payments on TDS by Income Tax Department.

9 Based on and to the extent of information obtained from the suppliers regarding their status as Micro, Small or Medium Enterprises under the Micro, Small and Medium Enterprises Development Act, 2006 there are no amounts overdue to them as at the end of the year under reporting.

10 (a) As the Company has incurred losses in the current year, both as per statement of Profit & Loss and Income Tax computation, the measurement of deferred tax liability has not been considered.

(b) Since the Company has incurred losses for the last 3 years and there is no reasonable certainty that sufficient future taxable income will be available, the measurement of deferred tax asset has not been considered in these accounts.

10 Amounts paid / payable to Statutory Auditors -

(a) Audit fees Rs.2.65 Lacs (Previous period Rs.2.00 Lacs), plus the applicable service tax.

(b) In other capacity in respect of certification work Rs.0.50 Lacs (Previous period Rs.0.36 Lacs) plus the applicable service tax.

11 Miscellaneous Expense includes an amount of Rs.53.14 Lacs as Tolling Charges of Modules, invoices for which were raised by the party during the preceding period.

12 Balances of Debtors, Creditors, Security Deposits, Certain Bank Accounts and Loans and Advances are subject to confirmation and reconciliation with respective parties.

13 Since the Company is dealing in only one product i.e., Solar Photo-Voltaic Cells and Modules, segmental reporting as prescribed under Accounting Standard 17 is not applicable.

14 Since the accounting year of the Company is from 01st April, 2013 to 31st March, 2014 these accounts are for a period of twelve months and the figures thereof are not comparable with those of previous period to that extent which was for nine months i.e., 01st July, 2012 to 31st March, 2013.

15 Previous period figures have been regrouped / rearranged wherever necessary to make them comparable with the current year figures.

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Mar 31, 2013

1. The Company has incurred losses during the current financial period as well as the last financial period due to significant decline in the global prices of the raw materials and finished goods. As a consequence the working capital as well as the term loan credit facilities of the Company were restructured by a majority of the lenders on bilateral basis during the last financial period. Three working capital lenders ie. Standard Chartered Bank, Dena Bank and HDFC Bank did not consent to restructure the working capital facilities even as on the date of Balance Sheet under review. As on the date of the Balance Sheet all the working capital lenders viz. Allahabad Bank, The Federal Bank, Standard Chartered Bank, Dena Bank and HDFC Bank to the Company have classified the Company''s borrowings accounts with them as Non Performing Assets (NPA).

2. WCTL/FITL of Working Capital Lenders was considered as Long Term Borrowing in preceding period and the same is now considered as Short Term Borrowings for the current financial period.

3. During the period under review the Company had filed a reference with the Board for Industrial & Financial Reconstruction (BIFR) in view of the complete erosion of Net Worth as on the date of last Balance Sheet. The said reference has been registered by BIFR during the period under review.

4. Estimated amounts of Capital Contracts as at 31st March, 2013 and not provided for Rs. 1330.96 Lacs (Previous period Rs. 2013.93 Lacs). Total Advances paid there against Rs. 694.91 Lacs including Rs. 345.75 Lacs in foreign currency (Previous period Rs. 639.93 Lacs including Rs. 345.20 Lacs in Foreign Currency)

5. Contingent Liabilities –

(a) Outstanding Bank Guarantees Rs. 46.27 Lacs (Previous period Rs. 184.32 Lacs)

(b) Outstanding Letter of Credit Rs. Nil Lacs (Previous period Rs. 70.00 Lacs)

(c) The Company''s product, namely, Solar Photovoltaic Modules carry a warranty of 25 years as per International Standards. A fair estimate of future liability that may arise on this account is not ascertainable. The same shall be accounted for as and when any claim occurs.

(d) Demands against the company not acknowledged as debts Rs. 1029.95 Lacs (Previous period Rs.1029.95 Lacs)

(e) Outstanding Capex Letter of Credits Rs. 4169.47 Lacs (Previous period Rs. 4,667.08 Lacs) for import of Capital Goods

6. Based on and to the extent of information obtained from the suppliers regarding their status as Micro, Small or Medium Enterprises under the Micro, Small and Medium Enterprises Development Act, 2006 there are no amounts overdue to them as at the end of the period under reporting.

7. Since there is no reasonable certainty that sufficient future taxable income will be available, the measurement of deferred tax asset, which may be realized, has not been considered in these accounts.

8. Amounts paid / payable to Auditors –

(a) Audit fees Rs. 2,00,000/- (Previous period Rs. 3,12,500/- ), plus the applicable service tax.

(b) In other capacity in respect of certification work Rs. 36,000/- (Previous period Rs. 62,500/) plus the applicable service tax.

(c) For Audit under section 44AB of the Income Tax Act, 1961 to other firm of Chartered Accountants Rs. 60,000/- (Previous period Rs.93,750/-), plus the applicable service tax.

9. Balances of Debtors, Creditors and Loans and Advances are subject to confirmation and reconciliation with respective parties.

10. Since the Company is dealing in only one product i.e., Solar Photo-Voltaic Cells and Modules, segmental reporting as prescribed under Accounting Standard 17 is not applicable.

11. Since the accounting year of the Company is from 01st July 2012 to 31st March 2013, these accounts are for a period of nine months and the figures thereof are not comparable with those of previous period to that extent which was for fifteen months i.e., 01st April 2011 to 30th June 2012.

12. Previous period figures have been regrouped / rearranged wherever necessary to make them comparable with the current period figures.

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Jun 30, 2012

A.Terms and rights attached to the Equity shares

The Company has only one class of Equity Shares having a par value of 10/- per Share. Each holder of equity shares is entitled to one vote per share held. All shares ranks pari passu with respect to the dividend, voting rights and other terms.The Dividend Proposed, if any, 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, normally the equity shareholders are eligible to receive remaining assets of the Company after distribution of all preferential amounts, in proportion to their shareholding .

b. 80,69,422 (36.72%) No. of Equity Shares of the company are held by promoter and the promoter group as on 30th June 2012

Notes:

1: Leasehold Land of Salt Lake unit has been acquired under a lease of 90 years with a renewal option. 2: Leasehold Land of Falta SEZ unit has been acquired under a lease of 15 years with a renewal option.

2. The Company has incurred substantial losses during the period under report due to significant downturn in the global solar market, abrupt and unprecedented decline in the inventory prices and the high volatility in the foreign exchange rates. This severely impacted the cash flow position of the company and prompted the company to approach the lenders for restructuring of its debts. At the request of the Company the lead Bank of the Company i.e., Allahabad Bank, approved and sanctioned the restructuring scheme, under bilateral restructuring, on 27th March, 2012. Under the debt restructuring scheme, the existing Term Loans have been restructured whereby the term of repayment has been extended till 31st December, 2020 and rates of interest have been linked to the Base Rates of the Banks. The existing irregularity in the working capital facilities have been carved out and converted into working capital term loans with the repayment commencing from 31st October, 2013. In addition, the interest on such facilities w.e.f. 01st October 2011 till 30th September 2013 shall be funded by way of Funded Interest Term Loan which is repayable from 31st October 2013. As on the Balance Sheet date three working capital provider Banks viz., Standard Chartered Bank, Dena Bank and HDFC Bank and one term lender viz., EXIM Bank have not restructured the credit facilities.

3. Estimated amounts of Capital Contracts as at 30th June, 2012 and not provided for Rs. 2013.93 Lacs (Previous period Rs. 5508.73 Lacs). Total Advances paid there against Rs.639.93 Lacs including Rs.345.20 Lacs in foreign currency (Previous period Rs.952.73 Lacs including Rs.313.63 Lacs in Foreign Currency)

4. Contingent Liabilities -

(a) Outstanding Bank Guarantees 184.32 Lacs (Previous period Rs. 97.55 Lacs)

(b) Outstanding Letter of Credit Rs.70.00 Lacs (Previous period Rs.271.02 Lacs)

(c) Outstanding Bills Discounted with Banks Rs. Nil Lacs (Previous period Rs. 2,343.91 Lacs)

(d) The Company's product, namely, Solar Photovoltaic Modules carry a warranty of 25 years as per International Standards. A fair estimate of future liability that may arise on this account is not ascertainable. The same shall be accounted for as and when any claim occurs.

(e) Demands against the company not acknowledged as debts 1029.95 Lacs (Previous period Rs. 763.60 Lacs)

(f) Outstanding Capex Letter of Credits Rs.4667.08 Lacs (Previous period Rs. 4,327.50 Lacs) for import of Capital Goods

5. Based on and to the extent of information obtained from the suppliers regarding their status as Micro, Small or Medium Enterprises under the Micro, Small and Medium Enterprises Development Act, 2006 there are no amounts due to them as at the end of the period under reporting.

6. Since there is no reasonable certainty that sufficient future taxable income will be available, the measurement of deferred tax asset, which may be realised, has not been considered in these accounts.

7. The cash flows prepared by the management and approved by the Banks as per the restructuring scheme were based on the current prices and have been considered for impairment assessment. Based on such analysis, the cash flow projections do not indicate impairment as at the Balance Sheet date.

8. Amounts paid / payable to Auditors -

(a) Audit fees Rs.3,12,500/- (Previous period Rs. 1,50,000/-), plus the applicable service tax.

(b) In other capacity in respect of certification work Rs.62,500/- (Previous period Rs.37,500/) plus the applicable service tax.

(c) For Audit under section 44AB of the Income Tax Act, 1961 Rs.93,750/- (Previous period Rs.50,000/-), plus the applicable service tax.

9. Balances of Debtors, Creditors and Loans and Advances are subject to confirmation and reconciliation with respective parties

10. Since the Company is dealing in only one product i.e., Solar Photo-Voltaic Cells and Modules, segmental reporting as prescribed under Accounting Standard 17 is not applicable.

11. Since the accounting year of the Company is from 01st April 2011 to 30th June 2012, these accounts are for a period of fifteen months and the figures thereof are not comparable with those of previous period to that extent which was for nine months (i.e., 01st July 2010 to 31st March 2011)

12. The financial statements for the nine months ended 31st March 2011 had been prepared as per the then applicable, pre-revised Schedule VI to the Companies Act, 1956. Consequent to the notification of Revised Schedule VI under the Companies Act, 1956, the financial statement for fifteen months period ended 30th June 2012 are prepared as per Revised Schedule VI. Accordingly, the previous period figures have also been reclassified to conform to this period's classification. The adoption of Revised Schedule VI for previous period figures does not impact recognition and measurement.

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Mar 31, 2011

Estimated amounts of Capital Contracts as at 31st March, 2011 and not provided for Rs.5508.73 Lacs (Previous period Rs.4269.14 Lacs). Total Advances paid there against Rs.952.73 Lacs including Rs.313.63 in foreign currency (Previous period ^425.85 Lacs in Foreign Currency)

Contigent Liablities

a) Outstanding Bank Guarantees Rs.97.55 Lacs (Previous period Rs.217.92 Lacs).

b) Outstanding letters of Credit Rs.271.02 Lacs (Previous period Rs.2,336.44 Lacs).

c) Outstanding Bills Discounted with banks Rs.2,343.91 Lacs (Previous period Rs.3,323.10 Lacs).

d) The Company's product, namely, Solar Photovoltaic Modules carry a warranty of 25 years as per International Standards. A fair estimate of future liability that may arise on this account is not ascertainable. The same shall be accounted for as and when any claim occurs.

e) Demands against the company not acknowledged as debts Rs.763.60 lacs (Previous period Rs.739.70 Lacs).

f) Outstanding Capex Letter of Credits Rs.4,327.50 Lacs (Previous period Rs. NIL) for import of Capital Goods.

2. The Company has called back a substantial part of the investment made in the erstwhile Joint Venture named Micro Power Trading Co. Pte Ltd during the period.

3. The amount remaining in the Investment in the Equity Share Capital of Micro Power Trading Co. Pte Ltd, the erstwhile Joint Venture Company based at Singapore, being non-monetary item, no exchange fluctuation has been provided there-for as at the period end.

4. The outstanding Unsecured Loans of US$ 10.582 mn paid to Micro Power Trading Co. Pte Ltd, Singapore against the silicon wafer supply contract has been converted into trade advances during the period which will be adjusted against the monthly supplies of raw materials.

5. The Company has issued convertible warrants amounting to Rs.3000.00 Lacs during the last accounting period to Promoter Group Company and Strategic Investor. The Company has in the last accounting period received upfront application money for warrants from the Promoter Group Company and in the reporting period has received there-against the balance amount against which Equity Shares amounting to Rs.750.00 Lacs (including securities premium) were allotted upon conversion to the said Promoter Group Company.

6. Application money amounting to T282.00 lacs received from the strategic investor against convertible warrants and remaining un-allotted upon their non exercise of the option to convert the said warrants into Equity Shares within a period of 18 months from the date of allotment of warrants has been forfeited.

7. During the period under review, the Company has started the commercial production of its 30MW unit situated at Falta SEZ by the up-gradatlon of its earlier 10MW unit by adding new machines. Now the total annualised production capacity of the Company stands at 60MW.

8. The Company is in the process of compiling information with regard to suppliers covered under Micro, Small and Medium Enterprises Development Act, 2006. To the extent identified, there are no Micro, Small and Medium concerns whose payments have been outstanding for a period exceeding the prescribed time as per the said Act. Further the Company has no information from the other suppliers under the Act and accordingly the disclosure as required in Section 22 of the said Act could not be given in these accounts.

9. Provision for Deferred Tax Liabilities has been made as per Accounting Standard 22 issued by the Institute of Chartered Accountants of India. According thereto, the Company has no deferred tax assets at the period end. The deferred tax liability at the period end is on account of difference of carrying amount of fixed assets in the financial statements and the income tax computation.

10. Impairment in the carrying value of the fixed assets as at the Balance Sheet date has not been ascertained pending detailed review and technical evaluation in this respect. The Company intends to get the said review carried by independent valuer/ consultant and adjustment, if any, will then be made in the accounts.

Sundry Debtors over six months includes Rs.69.18 lacs (Previous year T69.46 lacs) outstanding from certain buyers for a considerable period. In the opinion of the management these will be recovered in due course and as such no provision is considered necessary in this respect.

Miscellaneous Expenditure comprises of expenditure incurred on raising long term funds for the Company and is being written off in five egual annual installments in the books of account.

a) Audit fees Rs.1,50,000/- (Previous year Rs.2,50,000/-), plus the applicable service tax.

b) In other capacity in respect of certification work Rs.37,500/- (Previous year Rs.62,500/) plus the applicable service tax.

c) For Audit under section 44AB of the Income Tax Act, 1961 Rs.50,000/- (Previous year Rs.50,000/-), plus the applicable service tax.

Balances of Debtors, Creditors, certain Bank balances, Loans and Advances etc are subject to confirmation and reconciliation with respect to parties.

Information pursuant to the Provisions of Paragraphs 3, 4(c) & 4(d) of part II of the Schedule VI of the Companies Act, 1956.

Since the Company is dealing in only one product i.e., Solar PV Cells and Modules, segmental reporting as prescribed under Accounting Standard 17 issued by the Institute of Chartered Accountants of India is not applicable.

Since the accounting year of the Company was from 01st July 2010 to 31st March 2011, these accounts have been prepared for a period of nine months and the figures thereof are not comparable with those of previous year to that extent.

The expenses relating to the previous period amounting to Rs.44.53 lacs have been debited to the respective expenditure account heads during the period under review.

Previous years figures are regrouped / rearranged wherever necessary,

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Jun 30, 2010

1. Estimated amounts of Capital Contracts as at 30th June, 2010 and not provided for Rs.4269.14 Lacs (Previous year Rs.732.74 Lacs). Total Advances paid there against Rs.425.85 Lacs in foreign currency (Previous year Rs.483.23 Lacs, including Foreign Currency Rs.472.93 Lacs)

2. Contingent Liabilities –

a) Outstanding Bank Guarantees Rs.217.92 Lacs (Previous year Rs.192.92 Lacs)

b) Outstanding letters of Credit Rs.2,336.44 Lacs (Previous year Rs.1,861.84 Lacs)

c) Bills Discounted with banks Rs.3,323.10 Lacs (Previous year Rs.3,538.49 Lacs)

d) The Companys product, namely, Solar Photovoltaic Modules carry a warranty of 25 years as per International Standards. A fair estimate of future liability that may arise on this account is not ascertainable. The same shall be accounted for as and when any claim occurs. e) Demands against the not acknowledged as debts Rs.739.70 lacs (Previous year Rs.467.76)

3. A Joint Venture with M/s Micro Power Trading Co. Pte Ltd, Singapore formed during the year 2008 for sourcing of Silicon Ingots/ Wafers has since been withdrawn and the Company has initiated steps to call back the investment made in the Joint Venture.

4. A three year contract was entered into with the said M/s Micro Power Trading Co. Pte Ltd, Singapore for supply of Silicon Wafers against which an amount of Rs.1,040.73 Lacs (Previous Year Rs.5,197.03 Lacs) is lying as advance deposit with them and will be adjusted in due course.

5. Investment in the Equity Share Capital of Micro Power Trading Co. Pte Ltd, the erstwhile Joint Venture Company based at Singapore, being non-monetary item, no exchange fluctuation has been provided therefore as at the year end.

6. The Company has issued convertible warrants amounting to Rs.3000.00 Lacs during the year to Promoter Group Company and Strategic Investor. It has received there-against an amount of Rs.1591.50 Lacs out of which Equity Shares amounting to Rs.1122.00 Lacs (including securities premium) were allotted upon conversion.

7. Application money received against convertible warrants allotted during the period and remaining outstanding as at the Balance Sheet date has been shown under the head Reserves and Surplus.

8. The Company has issued fresh equity shares by way of Qualified Institutional Placement ("QIP") amounting to Rs.4540.00 Lacs during the period and 20,00,000 Equity Shares there-against have been issued to the Qualified Institutional Buyers.

9. The proceeds of Qualified Institutional Placement ("QIP") have been used by the Company for for augmenting its working capital.

10. The Company has issued Bonus Shares in the ratio of 1:1 during the period.

11. During the period under review, the Company has started the commercial production of its 30MW unit situated at Falta SEZ. However a major break-down happened during the month of March and April 2010 thereby affecting revenues of the last two quarters.

12. The Company is in the process of compiling information with regard to suppliers covered under Micro, Small and Medium Enterprises Development Act, 2006. To the extent identified, the Company has no information from the suppliers under the Act and accordingly the disclosure as required in Section 22 of the said Act could not be given in these accounts.

13. Provision for Deferred Tax Liabilities up to last year was made as per Accounting Standard 22 issued by the Institute of Chartered Accountants of India. According thereto, the Company has no deferred tax assets at the year end. The deferred tax liability at the year end is on account of difference of carrying amount of fixed assets in the financial statements and the income tax computation up to last year. Since the Companys unit is situated at Falta SEZ, the provision for deferred tax liability has not been made for the current year. The existing provision shall be adjusted at appropriate time.

14. Impairment in the carrying value of the fixed assets as at the Balance Sheet date has not been ascertained pending detailed review and technical evaluation in this respect. The Company intends to get the said review carried by independent valuer / consultant and adjustment, if any, will then be made in the accounts.

15. Sundry Debtors over six months includes Rs.69.46 lacs (previous year Rs.134.44 lacs) outstanding from certain buyers for a considerable period. In the opinion of the management these will be recovered in due course and as such no provision is considered necessary in this respect.

16. Miscellaneous Expenditure comprises of expenditure incurred on raising long term funds for the Company and is being written off in five equal annual installments in the books of account.

17. Amounts paid / payable to Auditors –

a) Audit fees Rs.2,50,000/- (Previous year Rs.1,00,000/-), plus the applicable service tax.

b) In other capacity in respect of certification work Rs.62,500/- (Previous year Rs.25,000/-) plus the applicable service tax.

c) For Audit under section 44AB of the Income Tax Act, 1961 Rs.50,000/- (Previous year Rs.25,000/-), plus the applicable service tax.

18. Balances of Debtors, Creditors, certain Bank balances, Loans and Advances etc are subject to confirmation and reconciliation with respect to parties.

19. Since the Company is dealing in only one product i.e., Solar PV Cells and Modules, segmental reporting as prescribed under Accounting Standard 17 issued by the Institute of Chartered Accountants of India is not applicable.

20. Since the accounting year of the Company has been extended to end on 30th June 2010, these accounts have been prepared for a period of fifteen months and the figures thereof are not comparable with those of previous year to that extent.

21. Previous years figures are regrouped / rearranged wherever necessary.