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అకౌంట్స్ గమనికలుPremier Energies Ltd.
J Provisions, Contingent Liabilities, Contingent
Assets and Commitments
Provisions are recognised when the Company has a
present obligation (legal or constructive) as a result of a
past event, it is probable that an outflow of resources
embodying economic benefits will be required to settle
the obligation and a reliable estimate can be made of the
amount of the obligation. When the Company expects
some or all of a provision to be reimbursed, for example,
under an insurance contract, the reimbursement is
recognised as a separate asset, but only when the
reimbursement is virtually certain. The expense relating
to a provision is presented in the statement of profit and
loss net of any reimbursement.
If the effect of the time value of money is material,
provisions are discounted using a current pre-tax rate
that reflects, when appropriate, the risks specific to the
liability. When discounting is used, the increase in the
provision due to the passage of time is recognised as a
finance cost.
Contingent liabilities are disclosed in respect of possible
obligations that arise from past events, but their existence
is confirmed by the occurrence or non-occurrence of
one or more uncertain future events not wholly within the
control of the Company.
A contingent asset is a possible asset that arises from
past events and whose existence will be confirmed only
by the occurrence or non-occurrence of one or more
uncertain future events not wholly within the control of
the entity. Contingent assets are not recognised till the
realization of the income is virtually certain.
Warranty
The Company gives a warranty between 25 to 30 years on
solar modules designed, manufactured and supplied by
the Company. Provision is made for estimated warranty
claims in respect of products sold which are still under
warranty at the end of the reporting period. These claims
are expected to be settled as and when warranty claims
will arise. Management estimates the provision based
on historical warranty claim information and any recent
trends that may suggest future claims could differ from
historical amounts.
Employees of the Company receive remuneration in the
form of share-based payments, whereby employees
render services as consideration for equity instruments.
Equity settled transactions
The cost of equity-settled transactions is determined by
the fair value at the date when the grant is made using
Black Scholes valuation model.
That cost is recognised, together with a corresponding
increase in share-based payment reserves in equity,
over the period in which the performance and/or service
conditions are fulfilled in employee benefits expense.
The cumulative expense recognised for equity-settled
transactions at each reporting date until the vesting date
reflects the extent to which the vesting period has expired
and the Companyâs best estimate of the number of equity
instruments that will ultimately vest. The statement of
profit and loss expense or credit for a period represents
the movement in cumulative expense recognised as at
the beginning and end of that period and is recognised in
employee benefits expense.
Service and non-market performance conditions are not
taken into account when determining the grant date fair
value of awards, but the likelihood of the conditions being
met is assessed as part of the Companyâs best estimate
of the number of equity instruments that will ultimately
vest. Market performance conditions are reflected within
the grant date fair value.
Cash and cash equivalents in the balance sheet
comprise cash at banks and on hand and short-term
deposits with an original maturity of three months
or less, which are subject to an insignificant risk of
changes in value.
Cash flows are reported using the indirect method,
whereby net profit before tax is adjusted for the effects
of transactions of a non-cash nature and any deferrals
or accruals of past or future cash receipts or payments.
The cash flows from operating, investing and financing
activities of the Company are segregated.
Certain arrangements entered with financiers have been
classified as borrowings by the Company. The Company
presents cash outflows to settle the liability arising from
financing activities in its statement of cash flows.
Revenue from contracts with customers is recognised
to the extent that it is probable that the economic
benefits will flow to the Company and the revenue can
be reliably measured, regardless of when the payment
is being made. When a performance obligation is
satisfied, the revenue is measured at the transaction
price which is consideration received or receivable,
net of returns, credit price concessions, incentives,
liquidated damages or other similar deductions in a
contract except when it is highly probable it will not
be provided after taking into account contractually
defined terms of payment and excluding taxes or duties
collected on behalf of the government.
The Company derives revenues primarily from sale
of solar modules, solar cells, solar accessories and
construction/project related activity.
The following is summary of material accounting policies
relating to revenue recognition.
Revenue from sale of goods
The Company recognises revenue for supply of goods
to customers against orders received. The majority
of contracts that Company enters into relate to sales
orders containing single performance obligations for the
delivery of solar modules, solar cells, solar accessories
and silicon wafers as per Ind AS 115. Product revenue
is recognised when control of the goods is passed to
the customer. The point at which control passes is
determined based on the terms and conditions by each
customer arrangement.
Revenue from sale of solar power customers is
recognised when control of the goods (power) or services
is transferred to the customer at an amount that reflects
the consideration to which the Company expects to be
entitled in exchange for transferring promised goods or
services having regard to the terms of the agreement
with customer.
Variable Consideration forming part of the total
transaction price including compensation on account
of change in law will be allocated and recognised when
the terms of variable payment relate specifically to the
Company''s efforts to satisfy the performance obligation
i.e. in the year of occurrence of event linked to variable
consideration.
Revenue from construction/ project related activity
In revenue arrangements with multiple performance
obligations, the Company accounts for individual
products and services separately if they are distinct - i.e.
if a product or service is separately identifiable from other
items in the arrangement and if a customer can benefit
from it. The consideration is allocated between separate
products and services in the arrangement based on their
estimated stand-alone selling prices determined using
suitable methods as defined in Ind AS 115.
Contract revenue is recognised at allocable transaction
price which represents the amount of consideration to
which the company expects to be entitled in exchange
for transferring good or service to a customer excluding
amounts collected on behalf of a third party and is
adjusted for variable considerations.
Contract Balances
(i) Contract liabilities
A contract liability is the obligation to transfer goods
or services to a customer for which the Company
has received consideration (or the amount is due)
from the customer. If a customer pays consideration
before the Company transfers goods or services
to the customer, a contract liability is recognised
when the payment is made, or the payment
is due (whichever is earlier). Contract liabilities
are recognised as revenue when the Company
performs under the contract.
(ii) Trade receivables
A receivable represents the Company''s right to
an amount of consideration that is unconditional
(i .e., only the passage of time is required before
payment of the consideration is due). However,
trade receivables that do not contain a significant
financing component are measured at transaction
price.
(iii) Contract assets
A contract asset is the right to consideration in
exchange for goods or services transferred to
customer. If the Company performs by transferring
goods or services to a customer before the
customer pays consideration or before payment is
due, a contract asset is recognized for the earned
consideration that is conditional.
Interest income
For all debt financial instruments measured either
at amortised cost or at fair value through other
comprehensive income, interest income is recorded
using the effective interest rate (EIR). EIR is the rate that
exactly discounts the estimated future cash payments or
receipts over the expected life of the financial instrument
or a shorter period, where appropriate, to the gross
carrying amount of the financial asset or to the amortised
cost of a financial liability. Interest income is included in
other income in the statement of profit and loss.
Dividends
Revenue is recognised when the Companyâs right to
receive the payment is established, which is generally
when shareholders approve the dividend.
Government grants are recognised where there is
reasonable assurance that the grant will be received and
all attached conditions will be complied with.
Government grants relating to income are deferred and
recognised in the statement of profit or loss over the
period necessary to match them with the costs that
they intend to compensate and are presented as "other
income".
Government grants relating to assets which is received
subsequent to purchase of asset is treated as deferred
income under non-current liabilities and credited to
statement of profit or loss on straight-line basis over the
expected remaining useful life of the related assets under
other income. Grants received in the form of rebate or
exemptions or deferment of certain duties at time of
purchase of asset is presented as a reduction to the
carrying amount of the related asset.
Export incentives under various schemes are recognized
as income when the right to receive such entitlements/
credit as per the terms of the respective schemes is
established and where there is no significant uncertainty
regarding the ultimate collection of the relevant export
proceeds.
The Company evaluates if an arrangement qualifies to be a
lease as per the requirements of Ind AS 116. Identification
of a lease requires significant judgment. 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. The determination of
whether an arrangement is (or contains) a lease is based
on the substance of the arrangement at the inception
of the lease. The arrangement is, or contains, a lease if
fulfilment of the arrangement is dependent on the use of
a specific asset or assets and the arrangement conveys
a right to use the asset or assets, even if that right is not
explicitly specified in an arrangement.
Company as a lessee
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: (i) the
contract involves the use of an identified asset (ii) the
Company has substantially all of the economic benefits
from use of the asset through the period of the lease
and (iii) the Company has the right to direct the use of
the asset. The Company uses significant judgement in
assessing the lease term (including anticipated renewals)
and the applicable discount rate. The determination of
whether an arrangement is (or contains) a lease is based
on the substance of the arrangement at the inception
of the lease. The arrangement is, or contains, a lease if
fulfilment of the arrangement is dependent on the use of
a specific asset or assets and the arrangement conveys
a right to use the asset or assets, even if that right is not
explicitly specified in an arrangement.
At the date of commencement of the lease, the
Company recognizes a right-of-use asset(âROUâ) 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
lease term and useful life of the underlying asset. 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 in the country
of domicile of these leases. Lease liabilities are
remeasured with a corresponding adjustment to the
related right of use asset if the Company changes its
assessment if whether it will exercise an extension or a
termination option.
Lease liability and ROU asset have been separately
presented in the balance sheet and lease payments have
been classified as financing cash flows.
Company as a lessor
Leases in which the Company does not transfer
substantially all the risks and rewards of ownership of an
asset are classified as operating leases. Rental income
from operating lease is recognised on a straight-line
basis over the term of the relevant lease. Initial direct
costs incurred in negotiating and arranging an operating
lease are added to the carrying amount of the leased
asset and recognised over the lease term on the same
basis as rental income.
Leases are classified as finance leases when
substantially all of the risks and rewards of ownership
transfer from the Company to the lessee. Amounts
due from lessees under finance leases are recorded
as receivables at the Companyâs net investment in the
leases. Finance lease income is allocated to accounting
periods so as to reflect a constant periodic rate of
return on the net investment outstanding in respect of
the lease.
Current tax
Current income tax assets and liabilities are measured
at the amount expected to be recovered from or paid
to the taxation authorities. The tax rates and tax laws
used to compute the amount are those that are enacted
or substantively enacted, at the reporting date in the
countries where the Company operates and generates
taxable income. Current income tax relating to items
recognised outside profit or loss is recognised outside
profit or loss (either in other comprehensive income
(âOCIâ) or in equity). Current tax items are recognised
in correlation to the underlying transaction either in
OCI or directly in equity. Management periodically
evaluates positions taken in the tax returns with respect
to situations in which applicable tax regulations are
subject to interpretation and establishes provision where
appropriate.
Deferred tax
Deferred tax is provided using the liability method on
temporary differences between the tax bases of assets
and liabilities and their carrying amounts for financial
reporting purposes at the reporting date.
Deferred tax liabilities are recognised for all taxable
temporary differences except for:
a) When the deferred tax liability arises from the initial
recognition of goodwill
b) In respect of taxable temporary differences
associated with investments in subsidiaries,
associates and interests in joint ventures, when the
timing of the reversal of the temporary differences
can be controlled and it is probable that the
temporary differences will not reverse in the
foreseeable future.
Deferred tax assets are recognised for all deductible
temporary differences, the carry forward of unused tax
credits and any unused tax losses. Deferred tax assets
are recognised 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 utilized. The
carrying amount of deferred tax assets is reviewed at
each reporting 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 asset to
be utilised. Unrecognised deferred tax assets are re¬
assessed at each reporting date and are recognised to
the extent that it has become probable that future taxable
profits will allow the deferred tax asset to be recovered.
Deferred tax assets and liabilities are measured at the tax
rates that are expected to apply in the year when the asset
is realised or the liability is settled, based on tax rates and
tax laws that have been enacted or substantively enacted
at the reporting date.
Deferred tax relating to items recognised outside profit
or loss is recognised outside profit or loss (either in other
comprehensive income or in equity). Deferred tax items
are recognised in correlation to the underlying transaction
either in OCI or directly in equity.
General and specific borrowing costs that are directly
attributable to the acquisition, construction or production
of a qualifying asset are capitalised during the period of
time that is required to complete and prepare the asset for
its intended use or sale. Qualifying assets are assets that
necessarily take a substantial period of time to get ready
for their intended use or sale.
I nvestment income earned on the temporary investment
of specific borrowings pending their expenditure on
qualifying assets is deducted from the borrowing costs
eligible for capitalisation.
All other borrowing costs are expensed in the period in
which they are incurred.
The Company has created an Employee Welfare Trust
- PEL ESOP Trust ("the Trust") for implementation of the
schemes that are notified or may be notified from time to
time by the Company under the plan, for providing share
based payments to its employees. The Trust purchases
shares of the Company out of funds borrowed from the
Company. The Company treats the Trust as its extension
and shares held by the Trust are treated as treasury
shares. Treasury shares are recognised at cost and
deducted from equity. Profit on sale of treasury shares
by the Trust is recognised in PEL ESOP Trust reserve.
(i) Basic earnings per share
Basic Earnings Per Share (''EPS'') is computed by
dividing the net profit attributable to the equity
shareholders by the weighted average number
of equity shares outstanding during the year.
The weighted average number of equity shares
outstanding during the year is adjusted for treasury
shares and events such as bonus issue that have
changed the number of shares outstanding, without
a corresponding change in resources.
(ii) Diluted earnings per share
Diluted earnings per share is computed by dividing
the net profit by the weighted average number
of equity shares considered for deriving basic
earnings per share and also the weighted average
number of equity shares that could have been
issued upon conversion of all dilutive potential
equity shares. Dilutive potential equity shares
are deemed converted as of the beginning of the
year, unless issued at a later date. In computing
diluted earnings per share, only potential equity
shares that are dilutive and that either reduces
earnings per share or increases loss per share
are included.
U Adoption of new and revised standards
Recent accounting
Pronouncements Ministry of Corporate Affairs (âMCAâ)
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 March 31, 2026, MCA has notified following
Amendment to Ind AS, applicable to the Company w.e.f.
April 01,2025.
- Ind AS 21 - The Effects of Changes in Foreign
Exchange Rates Lack of Exchangeability.
- I nd AS 12 - Income Taxes relating to International
Tax Reform - Pillar Two Model Rules - Exception to
recognition and disclosure of deferred tax.
- Ind AS 7 - Cash flow statement and Ind AS 107 -
Financial Instrument Disclosures relating to supplier
finance arrangements.
- I nd AS 1 - Presentation of Financial Statements-
Classification of Liabilities as current or non- current
and non- current liabilities with covenants.
The Group has reviewed the new pronouncements and
based on its evaluation has determined that it does not
have any significant impact in its financial statements.
New and amended standards issued but not effectivec
The MCA has issued certain amendments to Indian
Accounting Standards which are not yet effective as at
March 31, 2026. The Group has not early adopted any
standard, interpretation or amendment that has been
issued but is not yet effective.
Notes :
1 As at March 31, 2026 and March 31, 2025, the fair values of the properties are ? 85.74 and ? 108.04 respectively.
These valuations are based on valuations performed by the management of the companies (Registered Valuers
and Valuation) Rules, 2017. A valuation model in accordance with that recommended by the International Valuation
Standards Committee has been applied.
2 There has been no change to the valuation technique during the year.
3 The title deeds of all investment properties are held in the name of the Company. The Company has not revalued its
investment property.
4 The property rental income earned by the Company from its investment property, all of which is leased out under
operating leases, amounted to ? 0.11 (March 31,2025: ? 0.64)
a) As of March 31, 2026, the Company has pledged 123,918,755 unquoted equity shares (March 31, 2025: 97,076,999)
of its subsidiary, Premier Energies Photovoltaic Private Limited, to Indian Renewable Energy Development Agency
Limited (IREDA) as security for the subsidiaryâs borrowings from IREDA.
b) During the previous year ended March 31, 2025, the Company converted an unsecured loan of ?90.79 given to
Premier Energies Global Environment Private Limited (âPEGEPLâ) into 106,681 equity shares of PEGEPL at ?10 face
value and ?841 premium per share, in compliance with Section 62 of the Companies Act, 2013.
c) During the year ended March 31,2026, the Company invested in 5,874,846 equity shares of Premier Energies Global
Environment Private Limited (âPEGEPLâ), each having a face value of ? 10 per share at a premium of ? 1,057 per share.
(Also refer note 47(viii)(b))
d) (i) During the year ended March 31, 2026, the Company invested in 1,362,862 Compulsory Convertible Preference
Shares (âCCPSâ) of Premier Energies Global Environment Private Limited, each having a face value of ? 10 per
CCPS at a premium of ? 1164 per CCPS. (Also refer note 47(viii)(b))
(ii) During the year ended March 31, 2025, the Company invested in 6,632,638 (March 31, 2025: 6,632,638)
Compulsory Convertible Preference Shares (âCCPSâ) of Premier Energies Global Environment Private Limited,
each having a face value of ? 10 per CCPS at a premium of ? 1,057 per CCPS. (Also refer note 47(viii)(b))
e) As of March 31, 2026, the Company has pledged 2,996,172 unquoted equity shares (being 51% of 58,74,846
equity shares) (March 31, 2025: Nil) of its subsidiary, Premier Energies Global Environment Private Limited, to Indian
Renewable Energy Development Agency Limited (IREDA) as security for the subsidiaryâs borrowings from IREDA till
the tenure of the borrowing.
f) As of March 31, 2026, the Company has pledged 33,82,646 unquoted CCPS (being 51% of 66,32,638 CCPS) (March
31,2025: Nil) of its subsidiary, Premier Energies Global Environment Private Limited (âPEGEPLâ), to Indian Renewable
Energy Development Agency Limited (IREDA) as security for the subsidiaryâs borrowings from IREDA till the tenure of
the borrowing. Pledge creation in respect of 6,95,060 CCPS (being 51% of 13,62,862 CCPS issued during the year) is
in process as at March 31, 2026.
g) As of March 31, 2026, the Company has pledged 1,102,228 unquoted equity shares (March 31, 2025: 1,102,228) of its
subsidiary, Premier Energies International Private Limited, to Indian Renewable Energy Development Agency Limited
(IREDA) as security for the subsidiaryâs borrowings from IREDA.
h) As of March 31, 2026, the Company has pledged 2,550,000 Compulsory Convertible Debentures (March 31, 2025:
2,550,000) of its subsidiary, Premier Energies International Private Limited, to Indian Renewable Energy Development
Agency Limited (IREDA) as security for the subsidiaryâs borrowings from IREDA.
i) During the year ended March 31, 2026, the Company invested in 100,000 equity shares of Premier-Green Aluminium
Private Limited (âPGAPLâ), each having a face value of ? 10. and further invested in 43,516 equity shares, each having
face value of ? 10 per share at a premium of ? 2380 per share.
j) During the year ended March 31, 2026, the Company invested in 10,000 equity shares of Premier Energies GWC
Private Limited of ?10 each (âPEGWCPLâ), each having a face value of ? 10 per share.
k) During the year ended March 31, 2026, the Company invested in 7,700,000 equity shares of Premier Energies Storage
Solutions Private Limited (âPESSPLâ), each having a face value of ? 10 per share.
l) On October 23, 2025, the Company entered into a Securities Subscription and Shareholdersâ Agreement (âSSSHAâ) for
acquisition of majority stake (51%) in Transcon Ind Limited (âTransconâ), which is engaged in business of manufacturing
and selling of transformers, for a purchase consideration aggregating up to ? 5,003.00 . On December 26, 2025, the
Company acquired 34.21% (52,009 equity shares each having a face value of ? 10 per share at a premium of ? 48,059
per share) for a consideration of ? 2,500.02 accordingly, Transcon is considered as an associate for the year ended
March 31, 2026.
Subsequent to the year ended March 31, 2026 the Company paid the remaining consideration of ? 2,502.98 (52,075
equity shares each having a face value of ? 10 per share at a premium of ? 48,059 per share), resulting in the
acquisition of 51% shareholding. Consequently, Transcon has become the subsidiary of the Company with effect from
April 03, 2026. (Also refer note 47(viii)(b))
m) During the year ended March 31, 2026, the Company invested in 104,550 equity shares of HeliosAnthos Energies
Private Limited, each having a face value of ? 10 per share.
n) During the year ended March 31, 2026, the company 10,50,000 Optionally Convertible Redeemable Preference
Shares(OCRPS) of Mavyatho Ventures Private Limited, each having a face value of ? 10 per share.
(i) As of March 31, 2026, the Company has given inter-corporate unsecured loan of ? 432.50 (March 31, 2025: ? Nil)
extended to its subsidiary, Premier Photovoltaic Gajwel Private Limited, to meet its business and related opertations.
The loan is repayable in 16 quarterly instalments, repayment commence 12 months from scheduled commercial
operations i.e; 30th June 2026 and carries an interest rate of 8.5% per annum. Maximum amount outstanding during
year ? 432.50 (March 31, 2025: ? Nil)
(ii) As of March 31, 2026, the Company has given inter-corporate unsecured loan of ? 2,200 (March 31, 2025: ? Nil) to
its subsidiary, Premier Energies Global Environment Private Limited, to meet its funding requirements for Capex and
other business-related activities, the repayment will commence 12 months from the schedule commercial operations
i.e; 30th October 2026 of the IPO project. The loan shall be repayable in 32 quarterly instalments and carried an
interest rate range of 7.95% to 8.5% for per annum. (Also refer note 47(viii)(b)) maximum amount outstanding during
year ? 2,200 (March 31, 2025: ? Nil)
Notes:
(i) (i) As of March 31, 2026, the Company has given inter-corporate unsecured loan of f Nil (March 31, 2025: f 200) to
its subsidiary, Premier Photovoltaic Gajwel Private Limited, to meet its business and related opertations.The loan is
repayable on demand and carries an interest rate of 8.5% per annum. Maximum amount outstanding during the year
f 200 (March 31, 2025: f 200)
(ii) As of March 31, 2026, the Company has given inter-corporate unsecured loan of f 2.45 (March 31,2025: f 1.45) to its
subsidiary, Premier Photovoltaic Zaheerabad Private Limited, to support its working capital requirements. The loan is
repayable on demand and carries an interest rate of 8.5% per annum. Maximum amount outstanding during the year
f 2.45 (March 31, 2025: f 1.45)
(iii) As of March 31, 2026, the Company has given inter-corporate unsecured loan of f 4.50 (March 31, 2025: f Nil) to its
subsidiary Premier-Green Aluminium Private Limited, to meet its working capital requirements. The loan is repayable
on demand and carries an interest rate of 8.5% per annum. Maximum amount outstanding during the year f 4.50
(March 31, 2025: f Nil)
(iv) As of March 31, 2026, the Company has given inter-corporate unsecured loan of f 6.00 (March 31, 2025: f Nil) to its
subsidiary Premier Energies Storage Solutions Private Limited, to meet its working capital requirements. The loan is
repayable on demand and carries an interest rate of 8.5% per annum. Maximum amount outstanding during the year
f 26.00 (March 31, 2025: f Nil)
(v) As of March 31, 2026, the Company has given inter-corporate unsecured loan of Nil (March 31, 2025: f15) to its
subsidiary Premier Solar Powetech Private Limited, to support its working capital requirements. The loan is repayable
on demand and carries an interest rate of 8.5% per annum. Maximum amount outstanding during the year f 15
(March 31, 2025: f 17.80)
* Pursuant to the shareholders approval in their extra-ordinary general meeting held on April 10, 2024, the Company issued
and allotted fully paid-up bonus shares of ? 1 each in the ratio of 0.268 bonus shares for every equity share held.
**During the previous year, pursuant to the provisions of the Companies Act, 2013, the Securities and Exchange Board of
India (Issue of Capital and Disclosure Requirements) Regulations, 2018, the Articles of Association of the Company, and
the Shareholdersâ Agreement dated December 19, 2022, as amended, the Company converted 17,487,360 and 112,640
Compulsorily Convertible Debentures (CCDs) held by South Asia Growth Fund II Holdings LLC and South Asia EBT Trust,
respectively, into 87,436,800 and 563,200 fully paid-up equity shares of ? 1 each, respectively, in the ratio of 5 equity shares
of every CCD held. The equity shares issued upon conversion rank pari passu with the existing equity shares.
***During the current year, the Company allotted 22,20,000 equity shares of face value to ? 1 each, to PEL ESOP Trust
under the PEL ESOP Scheme 2021 at a premium of ? 20.29 per share.
During the previous year, the Company completed its Initial Public Offer (IPO) of 62,909,200 equity shares of face value of ?
1 each at an issue price of ? 450 per share (including a share premium of ? 449 per share). A discount of ? 22 per share was
offered to eligible employees bidding in the employeeâs reservation portion of 233,644 equity shares. The issue comprised
of a fresh issue of 28,709,200 equity shares aggregating to ? 12,914 million and offer for sale of 34,200,000 equity shares
by selling shareholders aggregating to ? 15,390 million. Pursuant to the IPO, the equity shares of the Company were listed
on National Stock Exchange of India Limited (NSE) and BSE Limited (BSE) on September 03, 2024.
On April 06, 2025, the shareholders of the Company have approved the Premier Energies Limited - Employee Stock Option
Plan, 2025 (PEL ESOP Scheme 2025) which forms part of the Premier Energies Limited Stock Option Plan. The plan is
administered by the âNomination and Remuneration Committeeâ constituted by the Board of Directors of the Company.
Subsequent to the year ended March 31,2026, the Company allotted 9,57,142 equity shares of face value ? 1 each to PEL
ESOP Trust on April 20, 2026 under the PEL ESOP Scheme 2025 at a premium of ? 699 per share.
The Company has only one class of equity shares having a par value of ? 1 per share. Each shareholder is eligible for
one vote per share held. Incase, the Company declares dividend then it pays dividend in Indian rupees. Such dividend
shall be proposed by the Board of Directors subject to the approval of the shareholders in the ensuing Annual General
Meeting, except in case of interim dividend.
I n the event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets of
the Company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity
shares held by the shareholders.
(v) For the period of five years immediately preceding March 31,2026:
(a) The Company has not allotted any equity shares as fully paid pursuant to contract without payment being
received in cash except as disclosed below:
- During the year ended March 31, 2022, the Company has entered into share swap transaction with a
shareholder to acquire 88,200 shares of Premier Solar Powertech Private Limited (PSPT) in exchange of
7,677,120 shares of the Company.
(b) During the year ended March 31,2025, the Company has allotted 70,606,834 fully paid-up equity shares by way
of bonus shares in the ratio of 0.268 bonus shares for every equity share held.
(c) The Company has not bought back any equity shares.
(vi) There are no shares reserved for issue under options and contracts or commitments for the sale of shares or disinvestment
except for the ones disclosed under note (vii) below.
(vii) Share-based payments
Employees of the Group receive remuneration in the form of share-based payments in consideration of the services
rendered. Under the equity settled share based payment, the fair value on the grant date of the award given to employees
is recognised as âemployee benefit expensesâ with a corresponding increase in equity over the vesting period. The fair
value of the options at the grant date is calculated by an independent valuer basis scenario based method and Black
Scholes model. At the end of each reporting period, apart from the non-market vesting conditions, the expense is
reviewed and adjusted to reflect changes to the level of options expected to vest.
The Company constituted the âPremier Energies Limited Employee Stock Option Plan (âPlanâ) â to grant equity based
incentives to its eligible employees. The Company has established a trust called the PEL ESOP Trust (âTrustâ) to
As of March 31, 2025, compulsorily convertible debentures treated as Instruments entirely equity in nature represents
compulsorily convertible debentures issued pursuant to the agreement entered into by the Company with South
Asia Growth Fund Il Holdings LLC and South Asia EBT Trust dated September 10, 2021 (ââthe agreementââ). The
members at their Extra Ordinary General Meeting held on December 20, 2022 have approved the amended terms of
conversion as defined in para 4 of Schedule 7 âââTerms of the Investor CCDsââ of the Share Subscription Agreement
dated September 10, 2021. Based on amended terms, these Debentures are convertible in the ratio of 5 equity shares
for every 1 debenture held by the debenture holders. The holders of CCDs shall be entitled to nominate in office two
directors of the Company and will be entitled to be members of such committees of the Board to whom the decision
making power has been delegated by the Board. These debenture holders are not entitled to any other form of
distribution of profits by the Company until its conversion to equity shares. There is no buyback obligation upon the
Company.
Nature and purpose of other equity
(i) Securities premium
Amounts received on issue of shares in excess of the par value has been classified as securities premium. The
utilisation of securities premium is governed by the Section 52 of the Companies, Act 2013.
(ii) Retained earnings:
Retained earnings are the profits that the Company has earned till date, less dividend paid to shareholders. Retained
earnings is a free reserves available to the Company.
(iii) Other comprehensive income:
Other comprehensive income comprises actuarial gains and losses on defined benefit obligation and change in fair
value of investment.
(iv) Treasury Shares
Represents the outstanding number of shares, options which are yet to be exercised by the employees to whom those
share options have been granted.
(v) Share based payment reserve
The above reserve relates to share options granted by the Parent Company to certain employees under its employee
share option plan. Further information about share-based payments to employees is set out in note 40.
(vi) PEL ESOP Trust reserve
Represents the profit earned by the PEL ESOP trust on exercise of the share options and on disposal of forfeited
shares options.
(i) As of March 31, 2026, the Company had an unsecured loan of ?2,900 (March 31, 2025: Nil) carrying interest rate of
8.5% p.a. from its subsidiary, Premier Energies Photovoltaic Private Limited for investing the proceeds in its subsidiary
Premier Energies Global Environment Private Limited as equity contribution by subscribing to compulsory convertible
preference shares and equity instruments. The loan is repayable in 32 quarterly instalments, commencing after 12
months from the commercial operation date of the subsidiaryâs project. Maximum amount outstanding during the year
? 2,900.00 (March 31,2025: ? Nil)
(ii) As of March 31, 2026, the Company had an unsecured loan of ?2,500 (March 31, 2025: Nil) carrying interest rate
of 8.5% p.a. from its subsidiary, Premier Energies Photovoltaic Private Limited for investing in 52,009 equity shares
of Transcon Ind Limited, each having a face value of ? 10 per share at a premium of ? 48,059 per share. Maximum
amount outstanding during the year ? 2500.00 (March 31,2025: ? Nil)
(iii) As of March 31,2026, the PEL ESOP Trust had an unsecured loan of ?324 (March 31, 2025: Nil) carrying interest-free
loans from its subsidiary Premier Energies Photovoltaic Private Limited for the purpose of acquiring shares under ESOP
Scheme of the company in complains with relevant provision of companies Act 2013,. The loan is repayable within
five years from the date of disbursement or upon the exercise of employee stock options by employees, whichever is
earlier. Maximum amount outstanding during the year ? 324.00 (March 31,2025: ? Nil)
(iv) As of March 31, 2026, the PEL ESOP Trust had an unsecured loan of ?28.70 (March 31, 2025: Nil) carrying interest-
free loans from its subsidiary Premier Energies Global Environment Private Limited for the purpose of acquiring
shares under ESOP Scheme of the company in complains with relevant provision of companies Act 2013,. The
loan is repayable within five years from the date of disbursement or upon the exercise of employee stock options by
employees, whichever is earlier. Maximum amount outstanding during the year ? 28.70 (March 31, 2025: ? Nil)
(v) As of March 31, 2026, the PEL ESOP Trust had an unsecured loan of ?138.90 (March 31, 2025: Nil) carrying interest-
free loans from its subsidiary Premier Energies International Private Limited for the purpose of acquiring shares under
ESOP Scheme of the company in complains with relevant provision of companies Act 2013, The loan is repayable
within five years from the date of disbursement or upon the exercise of employee stock options by employees,
whichever is earlier. Maximum amount outstanding during the year ? 138.90 (March 31, 2025: ? Nil)
During the current year, the Company has spent ? 20.12 (March 31, 2025 ? 6.23) as against mandatory requirement of ?
11.14 (March 31, 2025 ? 3.61) The excess spent of ? 11.60 (March 31 2025 ? 2.62) is treated as an asset and intended to
be setoff against the requirements to spend under section 135(5) in future years subject to requirements of the Act.
Basic EPS amounts are calculated by dividing the profit for the year attributable to shareholders by the weighted average
number of shares outstanding during the year. Diluted EPS amounts are calculated by dividing the profit attributable to
shareholders by the weighted average number of shares outstanding during the year plus the weighted average number of
shares that would be issued on conversion of all the dilutive potential shares into share capital.
(i) Pursuant to the approval of shareholders at the Extraordinary General Meeting held on April 10, 2024, the Company
issued and allotted fully paid-up bonus shares of ?1 each in the ratio of 0.268 bonus shares for every equity share
held, and accordingly, the earnings per share (EPS) for the year ended March 31, 2025 has been retrospectively
adjusted to reflect the bonus issue as if it had occurred at the beginning of the earliest period presented, in compliance
with Ind AS 33.
a) Disclosures related to direct contribution plan
The employees of the Company are members of a state-managed retirement benefit plan operated by the government
of India. The Company is required to contribute a specified percentage of payroll costs to the retirement benefit plan
to fund the benefits. The only obligation of the Company with respect to the retirement benefit plan is to make the
specified contributions
b) Disclosures related to defined benefit plan
In respect of Gratuity, a defined benefit plan, the plan is funded with Life Insurance Corporation in the form of a
qualifying insurance policy governed by the payment of Gratuity Act, 1972. Under the Gratuity Act, every employee
who has completed five years or more of service is entitled to gratuity on departure at 15 days last drawn salary for
each completed year of service or part thereof in excess of six months. The level of benefit provided depends on the
memberâs length of service and salary at the time of retirement/termination age. Provision for gratuity is based on
actuarial valuation done by an independent actuary. Each year, the Company reviews the level of funding in gratuity
fund and decides its contribution. The Company aims to keep annual contributions relatively stable at a level such that
the fund assets meets the requirements of gratuity payments in short to medium term.
This defined benefit plan exposes the Company to actuarial risk, such as investment risk, interest rate risk, longevity
risk and salary risk.
i) Investment risk - The present value of the defined benefit plan liability denominated in Indian Rupee is calculated
using a discount rate determined by reference to market yields at the end of the reporting period on government
bonds.
ii) Interest risk - A decrease in the bond interest rate will increase the plan liability; however, this will be partially
offset by an increase in the return on the plan assets.
iii) Longevity risk - The present value of the defined benefit plan liability is calculated by reference to the best
estimate of the mortality of plan participants both during and after their employment. An increase in the life
expectancy of the plan participants will increase the planâs liability.
iv) Salary risk - The present value of the defined benefit plan liability is calculated by reference to the future salaries
of plan participants. As such, an increase in the salary of the plan participants will increase the planâs liability.
The plan is funded with Life Insurance Corporation in the form of a qualifying insurance policy. The following
tables summarise net benefit expenses recognised in the Statement of Profit and Loss, the status of funding and
the amount recognised in the Balance sheet for the gratuity plan:
d) The Government of India has consolidated multiple existing labour legislations into a unified framework comprising four
Labour Codes collectively referred to as the New Labour Codes. The Codes have been made effective from November
21,2025. The Ministry of Labour & Employment published draft Central Rules and FAQs to enable assessment of the
financial impact due to changes in regulations.
The incremental impact of these changes, assessed by the Company, on the basis of the information available,
consistent with the guidance provided by the Institute of Chartered Accountants of India, is not material and has
been recognised in the standalone financial statements of the Company for the year ended March 31, 2026. The
Government is in the process of notifying related rules to the New Labour Codes and impact of these will be evaluated
and accounted for in accordance with applicable accounting standards in the period in which they are notified.
(b) Measurement of fair values
The section explains the judgement and estimates made in determining the fair values of the financial instruments that are:
a) recognized and measured at fair value
b) measured at amortized cost and for which fair values are disclosed in the financial statements.
To provide an indication about the reliability of the inputs used in determining fair value, the Company has classified
its financial instruments into the three levels prescribed under the accounting standard. An explanation of each level is
mentioned below:
Level 1: Level 1 hierarchy includes financial instruments measured using quoted prices. This includes listed equity
instruments, traded bonds and mutual funds that have quoted price. The fair value of all equity instruments (including
bonds) which are traded in the stock exchanges is valued using the closing price as at the reporting period. The mutual
funds are valued using the closing NAV.
Level 2: The fair value of financial instruments that are not traded in an active market (for example, traded bonds, over-the
counter derivatives) is determined using valuation techniques which maximise the use of observable market data and rely
as little as possible on entity-specific estimates. If all significant inputs required to fair value an instrument are observable,
the instrument is included in Level 2.
Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is included in Level
3.
Transfers between Level 1, Level 2 and Level 3
There were no transfers between Level 1, Level 2 or Level 3 during the year ended March 31, 2026 and March 31, 2025.
Determination of fair values
Fair values of financial assets and liabilities have been determined for measurement and/or disclosure purposes based
on the following methods. When applicable, further information about the assumptions made in determining fair values is
disclosed in the notes specific to that asset or liability.
i) The fair value of mutual funds are based on price quotations at reporting date.
ii) The fair values of other current financial assets and financial liabilities are considered to be equivalent to their carrying
values.
iii) The fair values of borrowings at fixed rates are considered to be equivalent to present value of the future contracted
cashflows discounted at the current market rate.
iv) The fair value of equity instruments measured through FVTOCI is determined using âNet asset value methodâ. The net
asset value is computed based on the latest audited Balance Sheet of the Company. The loan funds are deducted.
Contingent liabilities, to the extent that in the opinion of the management can be fairly expected to impair the net asset
value of the business, are also deducted.
v) The fair value of derivative foreign currency forward contracts is determined using quoted forward exchange rates at
the reporting date.
The Company has exposure to the following risks arising from financial instruments: credit risk ; liquidity risk ; market risk
Financial risk management framework
The Company is exposed primarily to Credit risk, liquidity risk and market risk (fluctuations in foreign currency exchange
rates and interest rate), which may adversely impact the fair value of its financial instruments. The Company assesses the
unpredictability of the financial environment and seeks to mitigate potential adverse effects on the financial performance of
the Company.
(a) Credit risk
Credit risk is the risk that counterparty will not meet its obligations under a financial instrument or customer contract,
leading to a financial loss. Credit risk encompasses of both, the direct risk of default and the risk of deterioration of
creditworthiness as well as concentration of risks. Credit risk is controlled by analysing credit limits and creditworthiness
of customers on a continuous basis to whom the credit has been granted after obtaining necessary approvals for
credit. Financial instruments that are subject to concentrations of credit risk principally consist of trade receivables,
investments, derivative financial instruments, cash and cash equivalents, bank deposits and other financial assets.
The customer credit risk is managed by the Companyâs established policy, procedures and control relating to customer
credit risk management. Credit quality of a customer is assessed based on the individual credit limits as defined in
accordance with this assessment and outstanding customer receivables are regularly monitored. Ind AS requires an entity
to recognise in profit or loss, the amount of expected credit losses (or reversal) that is required to adjust the loss allowance at
the reporting date to the amount that is required to be recognised in accordance with Ind AS 109. The Company assesses
at each date of statements of financial position whether a financial asset or a company of financial assets is impaired. The
Company has used a practical expedient by computing the expected credit loss allowance for trade receivables based on a
provision matrix. The provision matrix takes into account historical credit loss experience and adjusted for forward-looking
information.
The Company maintains exposure in cash and cash equivalents, other receivables from bank and derivative instruments
with financial institutions.
The Companyâs maximum exposure to credit risk as at March 31, 2026 and March 31, 2025 is the carrying value of each
class of financial assets
(b) Liquidity risk
Liquidity risk refers to the risk that the Company cannot meet its financial obligations. The objective of liquidity risk
management is to maintain sufficient liquidity and ensure that funds are available for use as per requirements. The
Company manages liquidity risk by maintaining adequate reserves, banking facilities and reserve borrowing facilities,
by continuously monitoring forecast and actual cash flows, and by matching the maturity profiles of financial assets
and liabilities.
Exposure to liquidity risk
The table below details the Companyâs remaining contractual maturity for its non-derivative financial liabilities. The
contractual cash flows reflect the undiscounted cash flows of financial liabilities based on the earliest date on which
the Company can be required to pay.
(c) Market risk
Market risk is the risk that changes in market prices, such as foreign exchange rates, interest rates and other market
changes , which will affect the Companyâs income or the value of its holdings of financial instruments. The objective
of market risk management is to manage and control market risk exposures within acceptable parameters.
(ii) Foreign currency exchange rate risk
The fluctuation in foreign currency exchange rates may have potential impact on the statement of profit or loss and
other comprehensive income and equity, where any transaction references more than one currency or where assets/
liabilities are denominated in a currency other than the functional currency of the respective entities. Considering the
countries and economic environment in which the Company operates, its operations are subject to risks arising from
fluctuations in exchange rates in those countries. The risks primarily relate to fluctuations in US Dollar against the
functional currency of the Company. The Company, as per its risk management policy, uses derivative instruments
primarily to hedge foreign exchange. The information on derivative instruments is as follows:
a) Forward contract (Derivatives):
Forward contract outstanding as at Balance Sheet date:
March 31, 2026 Buy US $ 50,61,396.56
March 31, 2025 Buy US $ 4,211,645.35
b) Details of Unhedged Foreign Currency Exposure:
The year end foreign currency exposures that have not been hedged by a derivative instrument or otherwise are
as under:
46 On May 04, 2026 Premier Energies Global Environment Private Limited (âWholly Owned Subsidiary) entered into a Share
Subscription and Shareholdersâ Agreement (âSSSHAâ) for acquisition of a minimum 26% equity stake aggregating to ? 687.00
million in Hexa Energy BH Five Private Limited, a company engaged in the generation and transmission of renewable energy.
The purchase consideration is subject to fulfilment of closing conditions agreed under the SSSHA.
47 Other statutory information:
(i) The Company does not have any Benami property, where any proceeding has been initiated or pending against the
Company for holding any Benami property.
(ii) The Company does not have any transactions with companies struck off.
(iii) The Company does not have any charges or satisfaction which is yet to be register
J Provisions, Contingent Liabilities, Contingent Assets
and Commitments
Provisions are recognised when the Company has a
present obligation (legal or constructive) as a result of
a past event, it is probable that an outflow of resources
embodying economic benefits will be required to settle
the obligation and a reliable estimate can be made of the
amount of the obligation. When the Company expects some
or all of a provision to be reimbursed, for example, under
an insurance contract, the reimbursement is recognised
as a separate asset, but only when the reimbursement
is virtually certain. The expense relating to a provision is
presented in the standalone statement of profit and loss net
of any reimbursement.
If the effect of the time value of money is material, provisions
are discounted using a current pre-tax rate that reflects,
when appropriate, the risks specific to the liability. When
discounting is used, the increase in the provision due to the
passage of time is recognised as a finance cost.
Contingent liabilities are disclosed in respect of possible
obligations that arise from past events, but their existence is
confirmed by the occurrence or non-occurrence of one or
more uncertain future events not wholly within the control
of the Company.
A contingent asset is a possible asset that arises from past
events and whose existence will be confirmed only by the
occurrence or non-occurrence of one or more uncertain
future events not wholly within the control of the entity.
Contingent assets are not recognised till the realization of
the income is virtually certain.
Warranty
The Company gives a warranty between 25 to 30 years on
solar modules designed, manufactured and supplied by the
Company. Provision is made for estimated warranty claims in
respect of products sold which are still under warranty at the
end of the reporting period. These claims are expected to be
settled as and when warranty claims will arise. Management
estimates the provision based on historical warranty claim
information and any recent trends that may suggest future
claims could differ from historical amounts.
K Share based payments
Employees of the Company receive remuneration in the
form of share-based payments, whereby employees render
services as consideration for equity instruments.
Equity settled transactions
The cost of equity-settled transactions is determined by the
fair value at the date when the grant is made using Black
Scholes valuation model.
That cost is recognised, together with a corresponding
increase in share-based payment reserves in equity, over the
period in which the performance and/or service conditions
are fulfilled in employee benefits expense. The cumulative
expense recognised for equity-settled transactions at each
reporting date until the vesting date reflects the extent to
which the vesting period has expired and the Company''s
best estimate of the number of equity instruments that will
ultimately vest. The standalone statement of profit and loss
expense or credit for a period represents the movement
in cumulative expense recognised as at the beginning
and end of that period and is recognised in employee
benefits expense.
Service and non-market performance conditions are not
taken into account when determining the grant date fair
value of awards, but the likelihood of the conditions being
met is assessed as part of the Company''s best estimate of
the number of equity instruments that will ultimately vest.
Market performance conditions are reflected within the
grant date fair value.
L Cash and cash equivalents
Cash and cash equivalents in the standalone balance
sheet comprise cash at banks and on hand and short-term
deposits with an original maturity of three months or less,
which are subject to an insignificant risk of changes in value.
M Cash flow statement
Standalone cash flows are reported using the indirect
method, whereby net profit before tax is adjusted for the
effects of transactions of a non-cash nature and any deferrals
or accruals of past or future cash receipts or payments.
The standalone cash flows from operating, investing and
financing activities of the Company are segregated.
Certain arrangements entered with financiers have been
classified as borrowings by the Company. The Company
presents cash outflows to settle the liability arising from
financing activities in its statement of cash flows.
N Revenue Recognition
Revenue from contracts with customers is recognised to the
extent that it is probable that the economic benefits will flow
to the Company and the revenue can be reliably measured,
regardless of when the payment is being made. When a
performance obligation is satisfied, the revenue is measured
at the transaction price which is consideration received
or receivable, net of returns, credit price concessions,
incentives, liquidated damages or other similar deductions
in a contract except when it is highly probable it will not be
provided after taking into account contractually defined
terms of payment and excluding taxes or duties collected on
behalf of the government.
The Company derives revenues primarily from sale of solar
modules, solar cells, solar accessories and construction/
project related activity.
The following is summary of material accounting policies
relating to revenue recognition.
Revenue from sale of goods
The Company recognises revenue for supply of goods to
customers against orders received. The majority of contracts
that Company enters into relate to sales orders containing
single performance obligations for the delivery of solar
modules, solar cells, solar accessories and silicon wafers
as per Ind AS 115. Product revenue is recognised when
control of the goods is passed to the customer. The point at
which control passes is determined based on the terms and
conditions by each customer arrangement.
Revenue from sale of solar power customers is recognised
when control of the goods (power) or services is transferred
to the customer at an amount that reflects the consideration
to which the Company expects to be entitled in exchange for
transferring promised goods or services having regard to the
terms of the agreement with customer,
Variable Consideration forming part of the total transaction
price including compensation on account of change in law
will be allocated and recognised when the terms of variable
payment relate specifically to the Company''s efforts to satisfy
the performance obligation i.e. in the year of occurrence of
event linked to variable consideration.
Revenue from construction/ project related activity
In revenue arrangements with multiple performance
obligations, the Company accounts for individual products
and services separately if they are distinct - i.e. if a product
or service is separately identifiable from other items in the
arrangement and if a customer can benefit from it. The
consideration is allocated between separate products and
services in the arrangement based on their estimated stand¬
alone selling prices determiend using suitable methods as
defined in Ind AS 115.
Contract revenue is recognised at allocable transaction price
which represents the amount of consideration to which the
group expects to be entitled in exchange for transferring
good or service to a customer excluding amounts collected
on behalf of a third party and is adjusted for variable
considerations.
Contract Balances
(i) Contract liabilities
A contract liability is the obligation to transfer goods
or services to a customer for which the Company has
received consideration (or the amount is due) from the
customer. If a customer pays consideration before the
Company transfers goods or services to the customer,
a contract liability is recognised when the payment
is made, or the payment is due (whichever is earlier).
Contract liabilities are recognised as revenue when the
Company performs under the contract.
(ii) Trade receivables
A receivable represents the Company''s right to an
amount of consideration that is unconditional (i .e.,
only the passage of time is required before payment of
the consideration is due). However, trade receivables
that do not contain a significant financing component
are measured at transaction price.
(iii) Contract assets
A contract asset is the right to consideration in exchange
for goods or services transferred to customer. If the
Company performs by transferring goods or services to
a customer before the customer pays consideration or
before payment is due, a contract asset is recognized
for the earned consideration that is conditional.
Interest income
For all debt financial instruments measured either
at amortised cost or at fair value through other
comprehensive income, interest income is recorded
using the effective interest rate (EIR). EIR is the rate that
exactly discounts the estimated future cash payments
or receipts over the expected life of the financial
instrument or a shorter period, where appropriate,
to the gross carrying amount of the financial asset or
to the amortised cost of a financial liability. Interest
income is included in other income in the standalone
statement of profit and loss.
Dividends
Revenue is recognised when the Company''s right to
receive the payment is established, which is generally
when shareholders approve the dividend.
O Government grants
Government grants are recognised where there is reasonable
assurance that the grant will be received and all attached
conditions will be complied with.
Government grants relating to income are deferred and
recognised in the standalone statement of profit or loss over
the period necessary to match them with the costs that they
intend to compensate and are presented as ""other income"".
Government grants relating to assets which is received
subsequent to purchase of asset is treated as deferred
income under non-current liabilities and credited to
statement of profit or loss on straight-line basis over
the expected remaining useful life of the related assets
under other income. Grants received in the form of rebate
or exemptions or deferment of certain duties at time of
purchase of asset is presented as a reduction to the carrying
amount of the related asset.
Export incentives under various schemes are recognized as
income when the right to receive such entitlements/ credit
as per the terms of the respective schemes is established
and where there is no significant uncertainty regarding the
ultimate collection of the relevant export proceeds.
P Leases
The Company evaluates if an arrangement qualifies to be a
lease as per the requirements of Ind AS 116. Identification
of a lease requires significant judgment. 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. The determination of whether
an arrangement is (or contains) a lease is based on the
substance of the arrangement at the inception of the lease.
The arrangement is, or contains, a lease if fulfilment of the
arrangement is dependent on the use of a specific asset
or assets and the arrangement conveys a right to use the
asset or assets, even if that right is not explicitly specified in
an arrangement.
Company as a lessee
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: (i) the
contract involves the use of an identified asset (ii) the Company
has substantially all of the economic benefits from use of the
asset through the period of the lease and (iii) the Company
has the right to direct the use of the asset. The Company uses
significant judgement in assessing the lease term (including
anticipated renewals) and the applicable discount rate. The
determination of whether an arrangement is (or contains) a
lease is based on the substance of the arrangement at the
inception of the lease. The arrangement is, or contains, a lease
if fulfilment of the arrangement is dependent on the use of a
specific asset or assets and the arrangement conveys a right
to use the asset or assets, even if that right is not explicitly
specified in an arrangement.
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 lease term and useful
life of the underlying asset. 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 in
the country of domicile of these leases. Lease liabilities are
remeasured with a corresponding adjustment to the related
right of use asset if the Company changes its assessment if
whether it will exercise an extension or a termination option.
Lease liability and ROU asset have been separately presented
in the standalone balance sheet and lease payments have
been classified as financing cash flows.
Company as a lessor
Leases in which the Company does not transfer substantially
all the risks and rewards of ownership of an asset are
classified as operating leases. Rental income from operating
lease is recognised on a straight-line basis over the term of
the relevant lease. Initial direct costs incurred in negotiating
and arranging an operating lease are added to the carrying
amount of the leased asset and recognised over the lease
term on the same basis as rental income.
Leases are classified as finance leases when substantially
all of the risks and rewards of ownership transfer from the
Company to the lessee. Amounts due from lessees under
finance leases are recorded as receivables at the Company''s
net investment in the leases. Finance lease income is
allocated to accounting periods so as to reflect a constant
periodic rate of return on the net investment outstanding in
respect of the lease.
Q Income tax
Current tax
Current income tax assets and liabilities are measured at the
amount expected to be recovered from or paid to the taxation
authorities. The tax rates and tax laws used to compute
the amount are those that are enacted or substantively
enacted, at the reporting date in the countries where
the Company operates and generates taxable income.
Current income tax relating to items recognised outside
profit or loss is recognised outside profit or loss (either in
other comprehensive income ("OCI") or in equity). Current
tax items are recognised in correlation to the underlying
transaction either in OCI or directly in equity. Management
periodically evaluates positions taken in the tax returns with
respect to situations in which applicable tax regulations
are subject to interpretation and establishes provision
where appropriate.
Deferred tax
Deferred tax is provided using the liability method on
temporary differences between the tax bases of assets and
liabilities and their carrying amounts for financial reporting
purposes at the reporting date.
Deferred tax liabilities are recognised for all taxable
temporary differences except for:
a) When the deferred tax liability arises from the initial
recognition of goodwill
b) In respect of taxable temporary differences associated
with investments in subsidiaries, associates and
interests in joint ventures, when the timing of the
reversal of the temporary differences can be controlled
and it is probable that the temporary differences will
not reverse in the foreseeable future.
Deferred tax assets are recognised for all deductible temporary
differences, the carry forward of unused tax credits and any
unused tax losses. Deferred tax assets are recognised 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 utilized. The carrying amount of deferred tax assets
is reviewed at each reporting 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 asset to be
utilised. Unrecognised deferred tax assets are re-assessed at
each reporting date and are recognised to the extent that it
has become probable that future taxable profits will allow the
deferred tax asset to be recovered.
Deferred tax assets and liabilities are measured at the tax
rates that are expected to apply in the year when the asset
is realised or the liability is settled, based on tax rates and tax
laws that have been enacted or substantively enacted at the
reporting date.
Deferred tax relating to items recognised outside profit
or loss is recognised outside profit or loss (either in other
comprehensive income or in equity). Deferred tax items
are recognised in correlation to the underlying transaction
either in OCI or directly in equity.
R Borrowing Costs
General and specific borrowing costs that are directly
attributable to the acquisition, construction or production
of a qualifying asset are capitalised during the period of
time that is required to complete and prepare the asset for
its intended use or sale. Qualifying assets are assets that
necessarily take a substantial period of time to get ready for
their intended use or sale.
Investment income earned on the temporary investment of
specific borrowings pending their expenditure on qualifying
assets is deducted from the borrowing costs eligible for
capitalisation.
All other borrowing costs are expensed in the period in
which they are incurred.
S Treasury shares
The Company has created an Employee Welfare Trust - PEL
ESOP Trust ("the Trust") for implementation of the schemes
that are notified or may be notified from time to time by the
Company under the plan, for providing share based payments
to its employees. The Trust purchases shares of the Company
out of funds borrowed from the Company. The Company
treats the Trust as its extension and shares held by the Trust
are treated as treasury shares. Treasury shares are recognised
at cost and deducted from equity. Profit on sale of treasury
shares by the Trust is recognised in PEL ESOP Trust reserve.
T Earnings per share
(i) Basic earnings per share
Basic Earnings Per Share (''EPS'') is computed by dividing
the net profit attributable to the equity shareholders
by the weighted average number of equity shares
outstanding during the year. The weighted average
number of equity shares outstanding during the
year is adjusted for treasury shares and events such
as bonus issue that have changed the number
of shares outstanding, without a corresponding
change in resources.
(ii) Diluted earnings per share
Diluted earnings per share is computed by dividing
the net profit by the weighted average number of
equity shares considered for deriving basic earnings
per share and also the weighted average number
of equity shares that could have been issued upon
conversion of all dilutive potential equity shares.
Dilutive potential equity shares are deemed converted
as of the beginning of the year, unless issued at a
later date. In computing diluted earnings per share,
only potential equity shares that are dilutive and that
either reduces earnings per share or increases loss per
share are included.
U Adoption of new and revised standards
New andamended Ind ASs that are effective for the current year
For the year ended March 31, 2025, MCA has notified Ind
AS - 117 Insurance contracts and amendments to Ind AS
116 - Leases, relating to sale and leaseback transactions,
applicable to the Company w.e.f. April 01, 2024. The
Company has reviewed the new pronouncements based
on its evaluation has determined that it does not have any
material impact in its standalone financial statements.
New Accounting standards, amendments and
interpretations not yet adopted by the Company:
Ministry of Corporate Affairs (âMCA") notifies new standards
or amendments to the existing standards under Companies
(Indian Accounting Standards) Rules as issued from time to
time. As on the date of release of these standalone financial
statements, Ministry of Corporate Affairs (âMCA") has not
issued any new standard or amendments to the existing
standards under Companies (Indian Accounting Standards)
Rules which are applicable from April 01, 2025.
Notes :
1 Pledge on investment property:
Investment property (land at Gurgaon and land & buildings at Balanagar) with a carrying amount of H Nil (March 31, 2024: H 40.48)
has been pledged by the Company under consortium arrangement to secure general banking facilities granted to the Company.
2 As at March 31, 2025 and March 31, 2024, the fair values of the properties are H 108.04 and H 106.29 respectively. These valuations
are based on valuations performed by the management of the companies (Registered Valuers and Valuation) Rules, 2017. A
valuation model in accordance with that recommended by the International Valuation Standards Committe has been applied.
3 There has been no change to the valuation technique during the year.
4 The title deeds of all investment properties are held in the name of the Company. The Company has not revalued its
investment property.
5 The property rental income earned by the Company from its investment property, all of which is leased out under operating leases,
amounted to H 0.64 (March 31, 2024: H 1.05)
a) As of March 31, 2025, the Company has pledged 97,076,999 unquoted equity shares (March 31, 2024: 97,076,999) of its
subsidiary, Premier Energies Photovoltaic Private Limited, to Indian Renewable Energy Development Agency Limited (IREDA)
as security for the subsidiary''s borrowings from IREDA.
b) During the year ended March 31, 2025, the Company converted an unsecured loan of H90.79 given to Premier Energies Global
Environment Private Limited ("PEGEPL") into 106,681 equity shares of PEGEPL at H10 face value and H841 premium per share,
in compliance with Section 62 of the Companies Act, 2013.
c) During the year ended March 31, 2025, the Company invested in 2,960,643 equity shares of Premier Energies Global
Environment Private Limited ("PEGEPL"), each having a face value of H 10 per share at a premium of H1,057 per share.
d) During the year ended March 31, 2025, the Company invested in 6,632,638 Compulsory Convertible Preference Shares
("CCPS") of Premier Energies Global Environment Private Limited, each having a face value of H 10 per CCPS at a premium of
H 1,057 per CCPS.
e) As of March 31, 2025, the Company has pledged 493,667 unquoted equity shares (March 31, 2024: 493,667) of its subsidiary,
Premier Energies Global Environment Private Limited, to Indian Renewable Energy Development Agency Limited (IREDA) as
security for the subsidiary''s borrowings from IREDA.
f) As of March 31, 2025, the Company has pledged 1,102,228 unquoted equity shares (March 31, 2024: 1,102,228) of its
subsidiary, Premier Energies International Private Limited, to Indian Renewable Energy Development Agency Limited (IREDA)
as security for the subsidiary''s borrowings from IREDA.
g) As of March 31, 2025, the Company has pledged 2,550,000 Compulsory Convertible Debentures (March 31, 2024: 2,550,000)
of its subsidiary, Premier Energies International Private Limited, to Indian Renewable Energy Development Agency Limited
(IREDA) as security for the subsidiary''s borrowings from IREDA.
h) The Company has complied with number of layers prescribed under clause 87 of Section 2 of the Companies Act, 2013, read
with the Companies (Restriction on number of layers) Rule, 2017.
* Pursuant to the shareholders approval in their extra-ordinary general meeting held on April 10, 2024, the Company issued and allotted fully
paid-up bonus shares of H 1 each in the ratio of 0.268 bonus shares for every equity share held.
**On August 16, 2024, pursuant to the provisions of the Companies Act, 2013, the Securities and Exchange Board of India (Issue of Capital and
Disclosure Requirements) Regulations, 2018, the Articles of Association of the Company, and the Shareholders'' Agreement dated December 19,
2022, as amended, the Company converted 17,487,360 and 112,640 Compulsorily Convertible Debentures (CCDs) held by South Asia Growth
Fund II Holdings LLC and South Asia EBT Trust, respectively, into 87,436,800 and 563,200 fully paid-up equity shares of H 1 each, respectively,
in the ratio of 5 equity shares of every CCD held. The equity shares issued upon conversion rank pari passu with the existing equity shares.
*** The Company had completed its Initial Public Offer (IPO) of 62,909,200 equity shares of face value of H 1 each at an issue price of H 450 per
share (including a share premium of H 449 per share). A discount of H 22 per share was offered to eligible employees bidding in the employee''s
reservation portion of 233,644 equity shares. The issue comprised of a fresh issue of 28,709,200 equity shares aggregating to H 12,914 million
and offer for sale of 34,200,000 equity shares by selling shareholders aggregating to H 15,390 million. Pursuant to the IPO, the equity shares of
the Company were listed on National Stock Exchange of India Limited (NSE) and BSE Limited (BSE) on September 03, 2024.
(ii) Terms/rights attached to equity shares
The Company has only one class of equity shares having a par value of H 1 per share. Each shareholder is eligible for one
vote per share held. Incase, the Company declares dividend then it pays dividend in Indian rupees. Such dividend shall be
proposed by the Board of Directors subject to the approval of the shareholders in the ensuing Annual General Meeting, except
in case of interim dividend.
In the event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets of the
Company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares
held by the shareholders.
(v) For the period of five years immediately preceding March 31, 2025:
(a) The Company has not allotted any equity shares as fully paid pursuant to contract without payment being received in
cash except as disclosed below:
- During the year ended March 31, 2022, the Company has entered into share swap transaction with a shareholder
to acquire 88,200 shares of Premier Solar Powertech Private Limited (PSPT) in exchange of 7,677,120 shares
of the Company.
(b) During the year ended March 31, 2025, the Company has alloted 70,606,834 fully paid-up equity shares by way of bonus
shares in the ratio of 0.268 bonus shares for every equity share held.
(c) The Company has not bought back any equity shares.
(vi) There are no shares reserved for issue under options and contracts or commitments for the sale of shares or disinvestment
except for the ones disclosed under note (vii) below.
(vii) Share-based payments
Employees of the Group receive remuneration in the form of share-based payments in consideration of the services rendered.
Under the equity settled share based payment, the fair value on the grant date of the award given to employees is recognised
as ''employee benefit expenses'' with a corresponding increase in equity over the vesting period. The fair value of the options
at the grant date is calculated by an independent valuer basis scenario based method and Black Scholes model. At the end of
each reporting period, apart from the non-market vesting conditions, the expense is reviewed and adjusted to reflect changes
to the level of options expected to vest.
The Company constituted the "Premier Energies Limited Employee Stock Option Plan (''Plan'') " to grant equity based incentives
to its eligible employees. The Company has established a trust called the PEL ESOP Trust ("Trust") to implement the Plan. The
Company has given advance to the trust for purchase of the Company''s shares and such advance outstanding as at March 31,
2025 and March 31, 2024 is H 110.07.
Under the plan a maximum number of options available for grant under ESOP 2021 shall be 13,948,000 will be granted to the
eligible employees. All these options are planned to be settled in equity at the time of exercise at the option of the employee.
These options have an exercise price of H 21.29 per share and vests on a graded basis as follows:
(iv) Terms/rights attached to compulsorily convertible debentures
As of March 31, 2024, compulsorily convertible debentures treated as Instruments entirely equity in nature represents
compulsorily convertible debentures issued pursuant to the agreement entered into by the Company with South Asia Growth
Fund Il Holdings LLC and South Asia EBT Trust dated September 10, 2021 (""the agreement""). The members at their Extra
Ordinary General Meeting held on December 20, 2022 have approved the amended terms of conversion as defined in para
4 of Schedule 7 ""Terms of the Investor CCDs"" of the Share Subscription Agreement dated September 10, 2021. Based on
amended terms, these Debentures are convertible in the ratio of 5 equity shares for every 1 debenture held by the debenture
holders. The holders of CCDs shall be entitled to nominate in office two directors of the Company and will be entitled to be
members of such committees of the Board to whom the decision making power has been delegated by the Board. These
debenture holders are not entitled to any other form of distribution of profits by the Company until its conversion to equity
shares. There is no buyback obligation upon the Company.
During the year, the Compulsory Convertible Debentures (CCDs) were converted into 88,000,000 equity shares of H 1 each.
Nature and purpose of other equity
(i) Securities premium
Amounts received on issue of shares in excess of the par value has been classified as securities premium. The utilisation of securities
premium is governed by the Section 52 of the Companies, Act 2013.
(ii) Retained earnings:
Retained earnings are the profits that the Company has earned till date, less dividend paid to shareholders. Retained earnings is a
free reserves available to the Company.
(iii) Other comprehensive income:
Other comprehensive income comprises actuarial gains and losses on defined benefit obligation and change in fair
value of investment.
b) Disclosures related to defined benefit plan
In respect of Gratuity, a defined benefit plan, the plan is funded with Life Insurance Corporation in the form of a qualifying insurance
policy governed by the payment of Gratuity Act, 1972. Under the Gratuity Act, every employee who has completed five years or
more of service is entitled to gratuity on departure at 15 days last drawn salary for each completed year of service or part thereof in
excess of six months. The level of benefit provided depends on the member''s length of service and salary at the time of retirement/
termination age. Provision for gratuity is based on actuarial valuation done by an independent actuary. Each year, the Company
reviews the level of funding in gratuity fund and decides its contribution. The Company aims to keep annual contributions relatively
stable at a level such that the fund assets meets the requirements of gratuity payments in short to medium term.
This defined benefit plan exposes the Company to actuarial risk, such as investment risk, interest rate risk, longevity risk and salary risk.
i) Investment risk - The present value of the defined benefit plan liability denominated in Indian Rupee is calculated using a
discount rate determined by reference to market yields at the end of the reporting period on government bonds.
ii) Interest risk - A decrease in the bond interest rate will increase the plan liability; however, this will be partially offset by an
increase in the return on the plan assets.
iii) Longevity risk - The present value of the defined benefit plan liability is calculated by reference to the best estimate of the
mortality of plan participants both during and after their employment. An increase in the life expectancy of the plan participants
will increase the plan''s liability.
iv) Salary risk - The present value of the defined benefit plan liability is calculated by reference to the future salaries of plan
participants. As such, an increase in the salary of the plan participants will increase the plan''s liability.
The plan is funded with Life Insurance Corporation in the form of a qualifying insurance policy. The following tables summarise net
benefit expenses recognised in the Statement of Profit and Loss, the status of funding and the amount recognised in the Balance
sheet for the gratuity plan:
b Measurement of fair values
The section explains the judgement and estimates made in determining the fair values of the financial instruments that are:
a) recognized and measured at fair value
b) measured at amortized cost and for which fair values are disclosed in the financial statements.
To provide an indication about the reliability of the inputs used in determining fair value, the Company has classified its financial
instruments into the three levels prescribed under the accounting standard. An explanation of each level is mentioned below:
Level 1: Level 1 hierarchy includes financial instruments measured using quoted prices. This includes listed equity instruments,
traded bonds and mutual funds that have quoted price. The fair value of all equity instruments (including bonds) which are traded in
the stock exchanges is valued using the closing price as at the reporting period. The mutual funds are valued using the closing NAV.
Level 2: The fair value of financial instruments that are not traded in an active market (for example, traded bonds, over-the counter
derivatives) is determined using valuation techniques which maximise the use of observable market data and rely as little as
possible on entity-specific estimates. If all significant inputs required to fair value an instrument are observable, the instrument is
included in Level 2.
Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is included in Level 3.
Transfers between Level 1, Level 2 and Level 3
There were no transfers between Level 1, Level 2 or Level 3 during the year ended March 31, 2025 and March 31, 2024.
Determination of fair values
Fair values of financial assets and liabilities have been determined for measurement and/or disclosure purposes based on the
following methods. When applicable, further information about the assumptions made in determining fair values is disclosed in the
notes specific to that asset or liability.
i) The fair value of mutual funds are based on price quotations at reporting date.
ii) The fair values of other current financial assets and financial liabilities are considered to be equivalent to their carrying values.
iii) The fair values of borrowings at fixed rates are considered to be equivalent to present value of the future contracted cashflows
discounted at the current market rate.
iv) The fair value of equity instruments measured through FVTOCI is determined using ''Net asset value method''. The net asset
value is computed based on the latest audited Balance Sheet of the Company. The loan funds are deducted. Contingent
liabilities, to the extent that in the opinion of the management can be fairly expected to impair the net asset value of the
business, are also deducted.
v) The fair value of derivative foreign currency forward contracts is determined using quoted forward exchange rates at the
reporting date.
36 Financial risk management
The Company has exposure to the following risks arising from financial instruments: credit risk ; liquidity risk ; market risk
Financial risk management framework
The Company is exposed primarily to Credit risk, liquidity risk and market risk (fluctuations in foreign currency exchange rates and interest
rate), which may adversely impact the fair value of its financial instruments. The Company assesses the unpredictability of the financial
environment and seeks to mitigate potential adverse effects on the financial performance of the Company.
(a) Credit risk
Credit risk is the risk that counterparty will not meet its obligations under a financial instrument or customer contract, leading to
a financial loss. Credit risk encompasses of both, the direct risk of default and the risk of deterioration of creditworthiness as well
as concentration of risks. Credit risk is controlled by analysing credit limits and creditworthiness of customers on a continuous
basis to whom the credit has been granted after obtaining necessary approvals for credit. Financial instruments that are subject to
concentrations of credit risk principally consist of trade receivables, investments, derivative financial instruments, cash and cash
equivalents, bank deposits and other financial assets.
Trade receivables:
The customer credit risk is managed by the Company''s established policy, procedures and control relating to customer credit
risk management. Credit quality of a customer is assessed based on the individual credit limits as defined in accordance with this
assessment and outstanding customer receivables are regularly monitored. Ind AS requires an entity to recognise in profit or loss,
the amount of expected credit losses (or reversal) that is required to adjust the loss allowance at the reporting date to the amount
(b) Liquidity risk
Liquidity risk refers to the risk that the Company cannot meet its financial obligations. The objective of liquidity risk management
is to maintain sufficient liquidity and ensure that funds are available for use as per requirements. The Company manages liquidity
risk by maintaining adequate reserves, banking facilities and reserve borrowing facilities, by continuously monitoring forecast and
actual cash flows, and by matching the maturity profiles of financial assets and liabilities.
Exposure to liquidity risk
The table below details the Company''s remaining contractual maturity for its non-derivative financial liabilities. The contractual
Standalone cash flows reflect the undiscounted Standalone cash flows of financial liabilities based on the earliest date on which the
Company can be required to pay.
For the purpose of the Company''s capital management, capital includes issued equity capital, share premium and all other equity
reserves attributable to the equity holders of the Company. The primary objective of the Company''s capital management is to maximize
the shareholder value.
The Company monitors capital using a ratio of ''adjusted net debt'' to ''adjusted equity''. For this purpose, adjusted net debt is defined as
total liabilities, including interest-bearing loans and borrowings less cash and cash equivalents and other bank balances. Adjusted equity
comprises all components of equity.
38 Leases
The Company''s lease asset classes primarily consist of leases for certain office facilities under cancellable lease arrangements. The
Company evaluates if an arrangement qualifies to be a lease as per the requirements of Ind AS 116. Identification of a lease requires
significant judgment. The Company uses significant judgement in assessing the lease term (including anticipated renewals) and the
applicable discount rate.
The Company determines the lease term as the non-cancellable year of a lease, together with both years covered by an option to extend
the lease if the Company is reasonably certain to exercise that option; and years covered by an option to terminate the lease if the Company
is reasonably certain not to exercise that option. In assessing whether the Company is reasonably certain to exercise an option to extend a
lease, or not to exercise an option to terminate a lease, it considers all relevant facts and circumstances that create an economic incentive
for the Company to exercise the option to extend the lease, or not to exercise the option to terminate the lease. The Company revises the
lease term if there is a change in the non-cancellable year of a lease.
The discount rate is generally based on the incremental borrowing rate specific to the lease being evaluated or for a portfolio of leases
with similar characteristics.
The Company has elected not to recognise right-of-use assets and lease liabilities for short-term leases of all assets that have a lease term
of 12 months or less.
39 Segment Reporting
Identification of Reportable Segments:
Segments are identified in line with Indian Accounting Standard (Ind AS) 108 "Operating Segments", taking into consideration the
internal organisation and management structure as well as the differential risk and returns of each of the segments. Operating segments
are components of the Company whose operating results are regularly reviewed by the Company''s Chief Operating Decision Maker
(CODM) to make decisions about resources to be allocated to the segment and assess its performance and for which discrete information
is available. Based on the Company''s business model of vertical integration, Solar energy market have been considered as a single
business segment for the purpose of making decisions on allocation of resources and assessing its performance. Hence, no separate
financial disclosures provided in respect of its single business segment.
Premier Energies Limited Employees Stock Option Plan 2021 Scheme
The establishment of the Premier Energies Limited ESOP Scheme 2021 (''Plan''/ ''ESOP 2021'') was approved by the Board of Directors in the
meeting held on September 04, 2021 and by the members in the Extra Ordinary General Meeting held on September 09, 2021 . The plan
is designed to provide incentives to the eligible employees. The ESOP scheme shall be administered by Nomination and Remuneration
committee through the PEL ESOP Trust (''Trust'') set up by the Company.
Participation in the plan is at the Board''s discretion and no individual has a contractual right to participate in the plan or to receive any
guaranteed benefits. The maximum number of options available for grant under the plan shall be 11,000,000. The Company further
increased the number of options by 2,948,000 under the ESOP Scheme 2021 by issue of bonus shares in the ratio of 0.268 for every one
equity share held at the extraordinary general meeting of shareholders held on April 10, 2024. Accordingly, the number of shares that can
be issued under the ESOP 2021 scheme increased from 11,000,000 to 13,948,000.
Options are granted under the plan for no consideration and carry no dividend or voting rights. The options granted shall vest in a graded
manner between completion of 1 year up to 3 years of service from the grant date, unless specific details are laid out by the administrator.
Once vested, the options remain exercisable for a period of 7 years. The exercise price of the share underlying an option shall be H 21.29
per share after considering the impact of bonus shares. When exercised, each option is convertible into one equity share.
The Company has issued 3,862,050 equity shares at H 20/- per equity share of H 1/- face value on September 17, 2021 and 1,627,521
equity shares at H 20.05/- per equity share of H 1/- face value on September 28, 2021 to the Trust for the purpose of further issuance to the
employees in lieu of the stock options that shall be granted to identified employees. The said shares including the impact of bonus shares
are treated as treasury shares (Refer Note 12(iv)).
Employees of the Company receive remuneration in the form of share-based payments in consideration of the services rendered. Under
the equity settled share based payment, the fair value on the grant date of the awards given to employees is recognised as ''employee
benefit expenses'' with a corresponding increase in equity over the vesting period. The fair value of the options at the grant date is
calculated by an independent valuer basis scenario based method and Black Scholes model. At the end of each reporting period, apart
from the non-market vesting conditions, the expense is reviewed and adjusted to reflect changes to the level of options expected to vest.
Exercise period
(1) Long-Term borrowings Short-Term borrowings Lease liabilities interest accrued
(2) Net profit after tax Non-operating cash exp like depreciation, amortisation and provisions Interest
(3) Interest and lease payments Principal repayments
(4) Represents cost of material consumed purchases of stock-in-trade changes in inventories of finished goods and work-in-progress
(5) Adjusted expenses includes purchase of stock in trade, purchases of raw material, contract execution expenses, employee benefit
expenses (excluding contribution to provident and other funds, gratuity and compensated absences expense, share based payment
expense) and other expenses (excluding provision for warranty, provision for doubtful debts, foreign exchange loss, bad debts/
assets written off, loss on sale of property, plant and equipment and provision for impairment of investment).
(6) Average capital employed is the average of opening and closing values of total equity, total debt (including lease liabilities and
accrued interest), deferred tax liabilities (net of deferred tax asset) less intangible assets.
44 Utilisation of funds raised through initial public offer (IPO)
The Company had completed its Initial Public Offer (IPO) of 62,909,200 equity shares of face value of H 1 each at an issue price of H 450
per share (including a share premium of H 449 per share). A discount of H 22 per share was offered to eligible employees bidding in the
employee''s reservation portion of 233,644 equity shares. The issue comprised of a fresh issue of 28,709,200 equity shares aggregating to
H 12,914 million and offer for sale of 34,200,000 equity shares by selling shareholders aggregating to H15,390 million. Pursuant to the IPO, the
equity shares of the Company were listed on National Stock Exchange of India Limited (NSE) and BSE Limited (BSE) on September 03, 2024,
The Company has received an amount of H 12,388.89 million (net of estimated IPO expenses of H 525.11 million) from the fresh issue of
equity shares. The utilization of IPO proceeds is summarized below:
* Aggregate of utilised and unutilised by the Company and Premier Energies Global Environment Private Limited, wholly-owned subsidiary. Net proceeds
which were utilised as March 31, 2025 were temporarily invested in fixed deposits and held in current account with scheduled commercial banks.
45 As per the proviso to Rule 3(1) of the Companies (Accounts) Rules 2014, for the financial year commencing on or after the 1st day of April 2023,
every company which uses accounting software for maintaining its books of account, shall use only such accounting software which has a feature
of recording audit trail of each and every transaction, creating an edit log of each change made in the books of account along with the date when
such changes were made and who made those changes within such accounting software and ensuring that the audit trail cannot be disabled.
The Company uses accounting software systems for maintaining its books of account, which have the feature of recording audit trail (edit log)
facility and the same have operated throughout the year for all relevant transactions recorded in the software systems. Further no instance of
audit trail feature being tampered with was noted in respect of the software.
46 Other statutory information:
(i) The Company does not have any Benami property, where any proceeding has been initiated or pending against the Company for
holding any Benami property.
(ii) The Company does not have any transactions with companies struck off.
(iii) The Company does not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory period.
(iv) The Company has not traded or invested in Crypto currency or Virtual Currency during the financial year.
(v) The Company has not been declared wilful defaulter by any bank or financial institution or government or any government authority.
(vi) The Company does not have any such transaction which is not recorded in the books of account that has been surrendered or
disclosed as income during the year in the tax assessments under the Income-tax Act, 1961 (such as, search or survey or any other
relevant provisions of the Income Tax Act, 1961.
(vii) The Company has complied with the number of layers prescribed under clause (87) of section 2 of the Act read with Companies
(Restriction on Number of Layers) Rules, 2017.
(viii) a. The Company has not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign entities
(Intermediaries) with the understanding that the Intermediary shall:
- directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the
group (Ultimate Beneficiaries) or
- provide any guarantee, security or the like to or on behalf of the ultimate beneficiaries
b. Other than as disclosed below, The Company has not received any fund from any party (Funding Party) with the understanding
that the Company shall whether, directly or indirectly lend or invest in other persons or entities identified by or on behalf of the
Company ("Ultimate Beneficiaries") or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.
(ix) No scheme of arrangement has been approved by the competent authority in terms of sections 230 to 237 of the Companies Act,
2013 during the period.
(x) The loan has been utilised for the purpose for which it was obtained and no short term funds have been used for long term purpose.
For and on behalf of the Board of Directors
Premier Energies Limited
Surenderpal Singh Saluja Chiranjeev Singh Saluja
Chairman & Whole Time Director Managing Director
DIN: 00664597 DIN: 00664638
Ravella Sreenivasa Rao Nand Kishore Khandelwal
Company Secretary Chief Financial Officer
Membership Number: A17755 Membership Number: 074967
Place: Hyderabad
Date: May 17, 2025
I Provisions, Contingent Liabilities, Contingent Assets and Commitments
Provisions are recognised when the Company has a present obligation (legal or constructive) as a result of a past event, it is probable that an outflow of resources
embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation. When the company expects
some or ail of a provision to be reimbursed, for example, under an insurance contract, the reimbursement is recognised as a separate asset, but only when the
reimbursement is virtually certain. The expense relating to a provision is presented in the Statement of Profit and Loss net of any reimbursement.
If the effect of the time value of money is material, provisions are discounted using a current pre-tax rate that reflects, when appropriate, the risks specific to the liability.
When discounting is used, the increase in the provision due to the passage of time is recognised as a finance cost
Contingent liabilities are disclosed in respect of possible obligations that arise from past events, but their existence is confirmed by the occurrence or non-occurrence of
one or more uncertain future events not wholly within the control of the company.
A contingent asset is a possible asset that arises from past events and whose existence will be confirmed only by the occurrence or non-occurrence of one or more
uncertain future events not wholly within the control of the entity. Contingent assets are not recognised till the realization of the income is virtually certain.
Warranty
Provis''on is estimated for expected warranty claim in respect of products sold during the year based on past experience regarding defective claim of products and cost of
rectification or replacement. It is expected that most of this cost will be incurred over next 12 months which is as per warranty terms.
Employees of the company receive remuneration in the form of share-based payments, whereby employees render services as consideration for equity instruments
Equity settled transactions
The cost of equity-settled transactions is determined by the fair value at the date when the grant is made using Black Scholes valuation model.
That cost is recognised, together with a corresponding increase in share-based payment reserves in equity, over the period in which the performance and/or service
conditions are fulfilled in employee benefits expense. The cumulative expense recognised for equity-settled transactions at each reporting date until the vesting date
reflects the extent to which the vesting period has expired and the company''s best estimate of the number of equity instruments that will ultimately vest. The statement of
profit and loss expense or credit for a period represents the movement in cumulative expense recognised as at the beginning and end of that period and is recognised in
employee benefits expense. s
Service and non-market performance conditions are not taken into account when determining the grant date fair value of awards, but the likelihood of the conditions beinq
met is assessed as part of the Company''s best estimate of the number of equity instruments that will ultimately vest. Market performance conditions are reflected within
the grant date fair value.
K Cash and cash equivalents
Cash and cash equivalents in the Balance Sheet comprise cash at banks and on hand and short-term deposits with an original maturity of three months or less, which are
subject to an insignificant risk of changes in value.
Cash and cash equivalents in the Balance Sheet comprise cash at banks and on hand and short-term deposits with an original maturity of three months or less which are
subject to an insignificant risk of changes in value.
L Cash flow statement
Cash flows are reported using the indirect method, whereby net profit before tax is adjusted for the effects of transactions of a non-cash nature and any deferrals or
accruals of past or future cash receipts or payments. The cash flows from operating, investing and financing activities of the Company are segregated..
Certain arrangements entered with financiers have been classified as borrowings by the company. The company presents cash outflows to settle the liability arising from
financing activities in its statement of cash flows.
M Revenue Recognition
Revenue from contracts with customers is recognised to the extent that it is probable that the economic benefits will flow to the company and the revenue can be reliablv
measured, regardless of when the payment is being made. When a performance obligation is satisfied, the revenue is measured at the transaction price which is
consideration received or receivable, net of returns and allowances, trade discounts and volume rebates after taking into account contractually defined terms of payment
and excluding taxes or duties collected on behalf of the government.
When another party is involved in providing goods or services to a customer, the company determines whether the nature of its promise is a performance obligation to
provide the specified goods or services itself (i.e., the company is a principal) or to arrange for the other party to provide those goods or services (i.e., the company is an
agent) When the company considers itself as a principal and satisfies its performance obligation in a given arrangement, the company recognises revenue in the qross
amount of consideration to which it expects to be entitled in exchange for those goods or services transferred. When the company considers itself as an agent and
satisfies its performance obligation in a given arrangement, the company recognises revenue in the amount of any fee or commission to which it expects to be entitled in
exchange for arranging for the other party to provide its goods or services. The companyâs fee or commission is the net amount of consideration that the company retains
after paying the other party the consideration received in exchange for the goods or services to be provided by that party.
The company derives revenues primarily from sale of solar modules, solar cells, solar accessories and Construction/project related activity.
The following is summary of significant accounting policies relating to revenue recognition. Further, refer note no. 20 for disaggregate revenues from contracts with
customers.
Revenue from sale of goods
The company recognises revenue for supply of goods to customers against orders received. The majority of contracts that company enters into relate to sales orders
containing single performance obligations for the delivery of solar modules, solar cells, solar accessories and silicon wafers as per Ind AS 115 Product revenue is
recognised when control of the goods is passed to the customer. The point at which control passes is determined based on the terms and conditions by each customer
arrangement 3
Revenue from sale of power is recognised net of cash discount, rebate, etc. when the power is supplied as it best depicts the value to the customer and complete
satisfaction of performance obligation.
Variable Consideration forming part of the total transaction price including compensation on account of change in law will be allocated and recognised when the terms of
variable payment relate specifically to the company''s efforts to satisfy the performance obligation i.e. in the year of occurrence of event linked to variable consideration.
Revenue from construction/project related activity
Contract revenue is recognised over time to the extent of performance obligation satisfied and control is transferred to the customer. Contract revenue is recognised at
allocable transaction price which represents the amount of consideration to which the company expects to be entitled in exchange for transferring good or service to a
customer excluding amounts collected on behalf of a third party and is adjusted for variable considerations.
Contract Balances
(i) Contract liabilities
A contract liability is the obligation to transfer goods or services to a customer for which the company has received consideration (or the amount is due) from the
customer. If a customer pays consideration before the company transfers goods or services to the customer, a contract liability is recognised when the payment is made
or the payment is due (whichever is earlier). Contract liabilities are recognised as revenue when the company performs under the contract.
(ii) Trade receivables
A receivable represents the company''s right to an amount of consideration that is unconditional (i ,eâ only the passage of time is required before payment of the
consideration is due). However, trade receivables that do not contain a significant financing component are measured at transaction price.
(iii) Contract assets
A contract asset is the right to consideration in exchange for goods or services transferred to customer. If the company performs by transferring goods or services to a
customer before the customer pays consideration or before payment is due, a contract asset is recognized for the earned consideration that is conditional.
Interest income
For all debt financial instruments measured either at amortised cost or at fair value through other comprehensive income, interest income is recorded using the effective
interest rate (EIR). EIR is the rate that exactly discounts the estimated future cash payments or receipts over the expected life of the financial instrument or a shorter
period, where appropriate, to the gross carrying amount of the financial asset or to the amortised cost of a financial liability. Interest income is included in finance income
in the Statement of Profit and Loss.
Dividends
Revenue is recognised when the companyâs right to receive the payment is established, which is generally when shareholders approve the dividend.
N Government grants
Government grants are recognised where there is reasonable assurance that the grant will be received and all attached conditions will be complied with.
Government grants relating to income are deferred and recognised in the profit or loss over the period necessary to match them with the costs that they intend to
compensate and are presented as other income.
Government grants relating to assets which is received subsequent to purchase of asset is treated as deferred income under non-current liabilities and credited to
statement of profit or loss on straight-line basis over the expected remaining useful life of the related assets under other income. Grants received in the form of rebate or
exemptions or deferment of certain duties at time of purchase of asset is presented as a reduction to the carrying amount of the related asset. In case of grant received
towards non-depreciable asset, the same is credited to capital reserve.
Export Incentives under various schemes are recognized as income when the right to receive such entitlements/ credit as per the terms of the respective schemes is
established and where there is no significant uncertainty regarding the ultimate collection of the relevant export proceeds.
O Leases
The company evaluates if an arrangement qualifies to be a lease as per the requirements of Ind AS 116. Identification of a lease requires significant judgment. 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. The determination of
whether an arrangement is (or contains) a lease is based on the substance of the arrangement at the inception of the lease. The arrangement is, or contains, a lease if
fulfilment of the arrangement is dependent on the use of a specific asset or assets and the arrangement conveys a right to use the asset or assets even if that riqht is not
explicitly specified in an arrangement.
Company as a lessee
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: (i) the contract involves the use of an identified asset (ii) the company has substantially all of the economic benefits from use of the asset
through the period of the lease and (iii) the company has the right to direct the use of the asset. The company uses significant judgement in assessing the lease term
(including anticipated renewals) and the applicable discount rate. The determination of whether an arrangement is (or contains) a lease is based on the substance of the
arrangement at the inception of the lease. The arrangement is, or contains, a lease if fulfilment of the arrangement is dependent on the use of a specific asset or assets
and the arrangement conveys a right to use the asset or assets, even if that right is not explicitly specified in an arrangement.
At the date of commencement of the lease, the company recognizes a right-of-use asset("ROUâ) 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 lease term and useful life of the underlying asset. 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 in the country of domicile of these leases. Lease liabilities are remeasured with a corresponding
adjustment to the related right of use asset if the Company changes its assessment if whether it will exercise an extension or a termination option.
Lease liability and ROU asset have been separately presented in the Balance Sheet and lease payments have been classified as financing cash flows.
Company as a lessor
Leases in which the Company does not transfer substantially all the risks and rewards of ownership of an asset are classified as operating leases. Rental income from
operating lease is recognised on a straight-line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are
added to the carrying amount of the leased asset and recognised over the lease term on the same basis as rental income.
Leases are classified as finance leases when substantially all of the risks and rewards of ownership transfer from the company to the lessee. Amounts due from lessees
under finance leases are recorded as receivables at the companyâs net investment in the leases. Finance lease income is allocated to accounting periods so as to reflect a
constant periodic rate of return on the net investment outstanding in respect of the lease.
P Income tax
Current tax
Current income tax assets and liabilities are measured at the amount expected to be recovered from or paid to the taxation authorities. The tax rates and tax laws used to
compute the amount are those that are enacted or substantively enacted, at the reporting date in the countries where the company operates and generates taxable
income. Current income tax relating to items recognised outside profit or loss is recognised outside profit or loss (either in other comprehensive income (âOCI") or in
equity). Current tax items are recognised in correlation to the underlying transaction either in OCI or directly in equity. Management periodically evaluates positions taken
in the tax returns with respect to situations in which applicable tax regulations are subject to interpretation and establishes provision where appropriate.
Deferred tax
Deferred tax is recognised on temporary differences between the carrying amounts of assets and liabilities in the Financial Statements and the corresponding tax bases
used in the computation of taxable profit under Income-tax Act, 1961
Deferred tax liabilities are recognised for all taxable temporary differences.
Deferred tax assets are recognised for all deductible temporary differences, the carry forward of unused tax credits and any unused tax losses. Deferred tax assets are
recognised 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 utilized. The carrying amount of deferred tax assets is reviewed at each reporting 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 asset to be utilised. Unrecognised deferred tax assets are re-assessed at each
reporting date and are recognised to the extent that it has become probable that future taxable profits will allow the deferred tax asset to be recovered.
Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the year when the asset is realised or the liability is settled, based on tax
rates and tax laws that have been enacted or substantively enacted at the reporting date.
Deferred tax relating to items recognised outside profit or loss is recognised outside profit or loss (either in other comprehensive income or in equity). Deferred tax items
are recognised in correlation to the underlying transaction either in OCI or directly in equity.
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 deferred taxes
relate to the same taxable entity and the same taxation authority.
Q Borrowing Costs
Borrowing costs directly attributable to the acquisition, construction or production of an asset that necessarily takes a substantial period of time to get ready for its intended
use or sale are capitalised as part of the cost of the asset. All other borrowing costs are expensed in the period in which they occur. Borrowing costs consist of interest and
other costs that an entity incurs in connection with the borrowing of funds. Borrowing cost also includes exchange differences to the extent regarded as an adjustment to
the borrowing costs.
R Treasury shares
The company has created an Employee Welfare Trust - PEL ESOP Trust ("the Trust")) for implementation of the schemes that are notified or may be notified from time to
time by the Company under the plan, providing share based payment to its employees. The Trust purchases shares of the Company out of funds borrowed from the
Company. The Company treats the Trust as its extension and shares held by the Trust are treated as treasury shares. Own equity instruments (treasury shares) are
recognised at cost and deducted from equity. Profit on sale of treasury shares by the Trust is recognised in Share based payment reserve.
S Earnings per share
(i) Basic earnings per share
Basic Earnings Per Share (''EPS'') is computed by dividing the net profit attributable to the equity shareholders by the weighted average number of equity shares
outstanding during the year. The weighted average number of equity shares outstanding during the period is adjusted for treasury shares.
(ii) Diluted earnings per share
Diluted earnings per share is computed by dividing the net profit by the weighted average number of equity shares considered for deriving basic earnings per share and
also the weighted average number of equity shares that could have been issued upon conversion of all dilutive potential equity shares. Dilutive potential equity shares are
deemed converted as of the beginning of the year, unless issued at a later date. In computing diluted earnings per share, only potential equity shares that are dilutive and
that either reduces earnings per share or increases loss per share are included.
T Non-current assets held for sale
Non-Current assets are classified for sale if their carrying amount will be recovered principally through continuous use and sale is considered highly probable They are
measured at the lower of the carrying amount and fair value less cost to sell. Non-Current assets are not depreciated or amortised while they are classified as held for sale,
fors''alerrem asse,s classified as held for sale are presented separately from other assets in the balance sheet as net of liabilities of a disposal company classified as held
U Recent pronouncements
Ministry of Corporate Affairs (âMCAâ) 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 March 31, 2024, MCA has not notified any new standards or amendments to the existing standards applicable to the Company.
b Measurement of fair values
The section explains the judgement and estimates made in determining the fair values of the financial instruments that are:
a) recognized and measured at fair value
b) measured at amortized cost and for which fair values are disclosed in the financial statements.
To provide an indication about the reliability of the inputs used in determining fair value, the company has classified its financial instruments into the three levels
prescribed under the accounting standard. An explanation of each level is mentioned below:
Level 1: Level 1 hierarchy includes financial instruments measured using quoted prices. This includes listed equity instruments, traded bonds and mutual funds
that have quoted price. The fair value of all equity instruments (including bonds) which are traded in the stock exchanges is valued using the closing price as at the
reporting period. The mutual funds are valued using the closing NAV.
Level 2: The fair value of financial instruments that are not traded in an active market (for example, traded bonds, over-the counter derivatives) is determined using
valuation techniques which maximise the use of observable market data and rely as little as possible on entity-specific estimates. If all significant inputs required to
fair value an instrument are observable, the instrument is included in Level 2.
Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is included in Level 3.
Transfers between Level 1, Level 2 and Level 3
There were no transfers between Level 1, Level 2 or Level 3 during the year ended March 31, 2024 and March 31, 2023.
Determination of fair values
Fair values of financial assets and liabilities have been determined for measurement and/or disclosure purposes based on the following methods. When
applicable, further information about the assumptions made in determining fair values is disclosed in the notes specific to that asset or liability,
i) The fair value of mutual funds are based on price quotations at reporting date.
ii) The fair values of other current financial assets and financial liabilities are considered to be equivalent to their carrying values.
iii) The fair values of borrowings at fixed rates are considered to be equivalent to present value of the future contracted cashflows discounted at the current market rate.
____
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36 Financial risk management
The Company has exposure to the following risks arising from financial instruments: credit risk; liquidity risk ; market risk
(a) Financial risk management framework
The Company is exposed primarily to Credit risk, liquidity risk and market risk (fluctuations in foreign currency exchange rates and interest rate), which may adversely impact the fair value of its financial
instruments. The Company assesses the unpredictability of the financial environment and seeks to mitigate potential adverse effects on the financial performance of the Company.
(b) Credit risk
Credit risk is the risk that counterparty will not meet its obligations under a financial instrument or customer contract, leading to a financial loss. Credit risk encompasses of both, the direct risk of default and the
risk of deterioration of creditworthiness as well as concentration of risks. Credit risk is controlled by analysing credit limits and creditworthiness of customers on a continuous basis to whom the credit has been
granted after obtaining necessary approvals for credit. Financial instruments that are subject to concentrations of credit risk principally consist of trade receivables, investments, derivative financial instruments,
cash and cash equivalents, bank deposits and other financial assets.
Trade receivables:
The customer credit risk is managed by the companyâs established policy, procedures and control relating to customer credit risk management. Credit quality of a customer is assessed based on the individual
credit limits as defined in accordance with this assessment and outstanding customer receivables are regularly monitored. The companyâs receivables turnover is quick and historically, there was no significant
defaults on account of those customer in the past. Ind AS requires an entity to recognise in profit or loss, the amount of expected credit losses (or reversal) that is required to adjust the loss allowance at the
reporting date to the amount that is required to be recognised in accordance with Ind AS 100. The company assesses at each date of statements of financial position whether a financial asset or a company of
financial assets is impaired. Expected credit losses are measured at an amount equal to the 12 month expected credit losses or at an amount equal to the life time expected credit losses if the credit risk on the
financial asset has increased significantly since initial recognition. The company has used a practical expedient by computing the expected credit loss allowance for trade receivables based on a provision
matrix. The provision matrix takes into account historical credit loss experience and adjusted for forward-loo king information.
39 Segment Reporting
39.1 Identification of Reportable Segments:
Segments are identified in line with Indian Accounting Standard (Ind AS) 108 âOperating Segmentsâ, taking into consideration the internal organisation and management structure as well as the differential risk
and returns of each of the segments. Operating segments are components of the Company whose operating results are regularly reviewed by the Companyâs Chief Operating Decision Maker (CODM) to make
decisions about resources to be allocated to the segment and assess its performance and for which discrete information is available. Based on the Companyâs business model of vertical integration, Solar
energy market have been considered as a single business segment for the purpose of making decisions on allocation of resources and assessing its performance. Hence, no separate financial disclosures
provided in respect of its single business segment.
Operations of the Company are managed from different locations each of these locations are aggregated based on exchange control regulations; and the underlying currency risk. Accordingly, the following
have been identified as operating and reportable segments: (a) âWithin Indiaâ, and (b) âOutside Indiaâ. In presenting geographic information, segment revenue has been based on the location of the customer
and segment assets are based on geographical location of assets.
44 Other statutory information:
(i) The Company does not have any Benami property, where any proceeding has been initiated or pending against the company for holding any Benami property.
(it) The Company does not have any transactions with companies struck off.
(iii) The Company does not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory period.
(iv) The Company has not traded or invested in Crypto currency or Virtual Currency during the financial year ended March 31, 2024 and March 31, 2023.
(v) The Company has not been declared wilful defaulter by any bank or financial institution or government or any government authority.
(Vi) The Company has not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign entities (Intermediaries) with the understanding that the Intermediary shall-
(a) directly or indirectly lend or invest in other persons or entities identified in any manner
(b) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.
(vii) The Company has not received any fund from any person(s) or entityfles), including foreign entities (Funding Party) with the understanding (whether recorded in writing or otherwise) that the company shall
(a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (Ultimate Beneficiaries) or
(b) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.
(vii) The Company has not any such transaction which is not recorded in the books of account that has been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act
1961 (such as, search or survey or any other relevant provisions of the Income Tax Act, 1961.
(viii) The Company has complied with the number of layers prescribed under clause (87) of section 2 of the Act read with Companies (Restriction on Number of Layers) Rules, 2017.
(ix) No scheme of arrangement has been approved by the competent authority in terms of sections 230 to 237 of the Companies Act, 2013 during the year.
(x) There are no term loans taken during the year.
45 The Nomination and Remuneration Committee in its meeting held on August 31,2024 recommended increase in remuneration of one director with effect from April 01, 2023 The Company subject to
shareho ders approval made payment to one director in excess of the amount computed in line with Section 197 read with Schedule V to the Companies Act, 2013 aggregating to ? 0.69 million for the year
ended March 31, 2024. The Company ts in the process of recovering such excess payment made. y
46 Subsequent events after the reporting period
inâ¢â¢t0£e aPProy®''sh,areholders granted in the extra-ordinary general meeting held on April 10,2024, the Company issued and allotted fully paid-up equity shares of 7 1 each as âbonus sharesâ on April
!°'' tt,'' h a® of 0-268:1 for every one equity share held. The Earnings Per Share (EPS) for the year ended March 31,2024 and March 31,2023 has been adjusted for issue of these bonus shares as if
the event had occurred at the beginning of the earliest period presented in accordance with Ind AS 33 (Refer Note 32).
For and on behalf of Board of Directors l /
Premier Energies Limited I ''A /
Surprfferpal Sin^itdjS CrtLmje/v Singh Saluja
Cflairmari&WdftTrime Director ManSgiHfe Direct*
DIN: OO^Sl A. DIM- 00664638
/Ky \
*''¦/ rHORTFRFD \ rn\ Company Secretary ChW4=inarTSaiaficer
O l accountants] rn Membership Number: A17765 Membership Number: 074967
\Ta\ /AA Place: Hyderabad
¦Q .___./&>/ Date: June 22,2024
Pi Mi
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