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అకౌంట్స్ గమనికలుSaatvik Green Energy Ltd.
(m) Provisions, contingent liabilities and contingentassets(i) General criterion for provisions
Provisions are recognised when the Company
has a present obligation (legal or constructive)
as a result of a past event, it is probable that
the Company will be required to settle that
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.
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.
The Company gives a warranty to its customers
for 25 years on solar modules designed,
manufactured and supplied by the Company.
In order to meet the expected outflow of
resources against future warranty claims,
the Company makes a provision for warranty.
This provision for warranty represents the
expected future outflow of resources against
claims for performance shortfall on account
of manufacturing deficiencies over the
assured warranty life.
The Company does not recognise a contingent
liability but discloses its existence in the
Financial Statements as per requirements of
Ind AS 37.
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. The Company does not recognise
the contingent asset in its standalone
financial statements since this may result
in the recognition of income that may never
be realised. Where an inflow of economic
benefits are probable, the Company disclose
a brief description of the nature of contingent
assets at the end of the reporting period.
However, when the realisation of income is
virtually certain, then the related asset is not a
contingent asset and the Company recognise
such assets.
Provisions, contingent liabilities and
contingent assets are reviewed at each
Balance Sheet date.
Government grants are not recognised until there
is reasonable assurance that the Company will
comply with the conditions attached to them and
that the grants will be received.
Government grants are recognised in the
statement of profit and loss on a systematic basis
over the years in which the Company recognises
as expenses the related costs for which the grants
are intended to compensate or when performance
obligations are met.
Government grants and subsidies whose primary
condition is that the Company should purchase,
construct or otherwise acquire non-current
assets are recognised as deferred revenue in the
balance sheet which is disclosed as deferred
government grant receivable and transferred to
the Statement of profit and loss on a systematic
basis over the expected useful life of the related
assets. Government grants and subsidies related
to the income are deferred which is disclosed as
deferred revenue arising from government grant in
the balance sheet and recognised in the statement
of profit and loss as income on a systematic basis
over the periods that the related costs, for which it
is intended to compensate, are expensed.
Interest income from a financial asset is recognised
when it is probable that the economic benefits will
flow to the Group and the amount of income can be
measured reliably. Interest income is accrued on a
time basis, by reference to the principal outstanding
and at the effective interest rate applicable, which
is the rate that exactly discounts estimated future
cash receipts through the expected life of the
financial asset to that assetâs net carrying amount
on initial recognition. Intercompany recharges is
accrued on a time basis as an when the services
are rendered to the group companies.
The Company measures financial instruments,
such as, derivatives at fair value at each balance
sheet date.
Fair value is the price that would be received to sell
an asset or paid to transfer a liability in an orderly
transaction between market participants at the
measurement date. The fair value measurement
is based on the presumption that the transaction
to sell the asset or transfer the liability takes place
either:
¦ In the principal market for the asset or liability,
or
¦ In the absence of a principal market, in the
most advantageous market for the asset or
liability
The principal or the most advantageous market
must be accessible by the Company.
The fair value of an asset or a liability is measured
using the assumptions that market participants
would use when pricing the asset or liability,
assuming that market participants act in their
economic best interest.
A fair value measurement of a non-financial asset
takes into account a market participantâs ability to
generate economic benefits by using the asset in
its highest and best use or by selling it to another
market participant that would use the asset in its
highest and best use.
The Company uses valuation techniques that are
appropriate in the circumstances and for which
sufficient data are available to measure fair value,
maximising the use of relevant observable inputs
and minimising the use of unobservable inputs.
All assets and liabilities for which fair value is
measured or disclosed in the financial statements
are categorised within the fair value hierarchy,
described as follows, based on the lowest
level input that is significant to the fair value
measurement as a whole:
¦ Level 1 â Quoted (unadjusted) market prices
in active markets for identical assets or
liabilities
¦ Level 2 â Valuation techniques for which the
lowest level input that is significant to the fair
value measurement is directly or indirectly
observable
¦ Level 3 â Valuation techniques for which the
lowest level input that is significant to the fair
value measurement is unobservable.
For assets and liabilities that are recognised in
the financial statements on a recurring basis, the
Company determines whether transfers have
occurred between levels in the hierarchy by re¬
assessing categorisation (based on the lowest
level input that is significant to the fair value
measurement as a whole) at the end of each
reporting period.
For the purpose of fair value disclosures, the
Company has determined classes of assets and
liabilities on the basis of the nature, characteristics
and risks of the asset or liability and the level of the
fair value hierarchy as explained above.
This note summarises accounting policy for fair
value. Other fair value related disclosures are given
in the relevant notes.
¦ Disclosures for valuation methods, significant
estimates and assumptions
¦ Quantitative disclosures of fair value
measurement hierarchy
¦ Investment in unquoted equity shares
¦ Property, plant and equipment under
revaluation model
¦ Financial instruments (including those carried
at amortised cost)
The Board of Directors are the Companyâs âChief
Operating Decision Makerâ or âCODMâ within the
meaning of Ind AS 108 âOperating Segmentsâ.
CODM monitors the operating results of its
business segments separately for the purpose of
making decisions about resource allocation and
performance assessment. Segment performance
is evaluated based on profit or loss and is measured
consistently with profit or loss in the financial
statements.
Cash and cash equivalent in the balance sheet
comprise cash at banks and on hand, and short¬
term deposits with an original maturity of three
months or less, that are readily convertible
to a known amount of cash and subject to an
insignificant risk of changes in value.
Statement of Cash flows is prepared as per indirect
method prescribed in the Ind AS 7 âStatement of
Cash Flowsâ.
For the purpose of the Standalone statement of
cash flows, cash and cash equivalents consist of
cash and as defined above, net of outstanding bank
overdrafts are considered, as they are an integral
part of the Companyâs cash management.
(t) Earnings per share
Basic earnings per share are calculated by dividing
the net profit or loss for the period attributable
to equity shareholders by the weighted average
number of equity shares outstanding during the
period.
Diluted earnings per share are calculated by
dividing the net profit or loss for the period
attributable to equity shareholders by the weighted
average number of equity shares outstanding
during the period adjusted for the effects of all
dilutive potential equity shares.
2.2 Changes in Accounting Policies and Disclosures(a) 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.
In May 2025, MCA notified amendments to Ind AS 21
- The Effects of Changes in Foreign Exchange Rates,
applicable w.e.f. April 01, 2025. The Company
has reviewed the amendment and based on its
evaluation has determined that it does not have
any significant impact in its financial statements.
In August 2025, MCA notified the following
amendments to:
(i) Ind AS 21 - Effects of Changes in Foreign
Exchange Rates
The amendments introduce guidance
for determining whether a currency is
exchangeable into another currency and
require estimation of the spot exchange rate
when exchangeability is lacking. Enhanced
disclosures are also required regarding the
nature and financial impact of such currency
restrictions.
(ii) Ind AS 1 - Presentation of Financial
Statements
The amendments clarify the principles for
classification of liabilities as current or non¬
current, particularly in cases where such
classification is subject to covenants. The
classification is based on the rights that exist
at the reporting date and requires additional
disclosures relating to such covenants.
The Company has assessed the same,
and there is no significant impact of these
amendments on the financial statements.
(iii) Ind AS 7- Statement of Cash Flows and Ind
AS 107-Financial Instruments
Ind AS 7, Statement of Cash Flows and Ind
AS 107, Financial Instruments: Disclosures,
applicable w.e.f. April 01, 2025 - The
amendment in Ind AS 7 requires to inform
users of financial statements of the existence
of supplier finance arrangements and explain
the nature of the arrangements, the carrying
amount of liabilities and the range of payment
due dates. Ind AS 107 has been amended to
add supplier finance arrangements as a factor
that may cause concentration of liquidity risk.
The Company has reviewed the amendment
and based on its evaluation has determined
that it does not have any significant impact in
its financial statements.
(iv) Ind AS 12- International Tax Reform
Ind AS 12, International Tax Reform - Pillar
Two Model Rules applicable immediately
- The amendments provide a temporary
mandatory relief from deferred tax accounting
for top-up tax and disclose that they have
applied the relief. The Company has reviewed
the amendment and based on its evaluation
has determined that it does not have any
significant impact in its financial statements.
2.3 Critical Estimates and Judgements
The preparation of the Companyâs Standalone financial
statements requires management to make judgements,
estimates and assumptions that affect the reported
amounts of revenues, expenses, assets and liabilities,
and the accompanying disclosures, and the disclosure
of contingent liabilities. Uncertainty about these
assumptions and estimates could result in outcomes
that require a material adjustment to the carrying
amount of assets or liabilities affected in future periods.
In the process of applying the Companyâs
accounting policies, management has made
the following judgements, which have the most
significant effect on the amounts recognised in the
Standalone financial statements:
(i) Leases
a) Determining the lease term
of contracts with renewal and
termination options - Company as
lessee
The Company determines the lease
term as the non-cancellable term of the
lease, together with any periods covered
by an option to extend the lease if it is
reasonably certain to be exercised, or
any periods covered by an option to
terminate the lease, if it is reasonably
certain not to be exercised.
The Company has several lease
contracts that include extension and
termination options. The Company
applies judgement in evaluating whether
it is reasonably certain whether or not to
exercise the option to renew or terminate
the lease. That is, it considers all relevant
factors that create an economic incentive
for it to exercise either the renewal or
termination. After the commencement
date, the Company reassesses the
lease term if there is a significant event
or change in circumstances that is
within its control and affects its ability to
exercise or not to exercise the option to
renew or to terminate (e.g., construction
of significant leasehold improvements or
significant customisation to the leased
asset).
The Company applied the following
judgements that significantly affect the
determination of the amount and timing of
revenue from contracts with customers:
Revenue recognition for Engineering,
Procurement, and Construction contracts
Revenue and costs in respect of construction
contracts are recognised by reference to
stage of completion of the contract activity
at the end of the reporting period, measured
based on the proportion of contract costs
incurred for work performed to date relative
to the estimated total contract costs. The
Company estimates the total cost of the
project at each period end. These estimates
are based on the rates agreed with vendors/
sub-contractors and managementâs best
estimates of the costs that would be incurred
for the completion of project based on past
experience and/or industry data. These
estimates are re-assessed at each period
end. Variations in contract works, claims and
incentive payments are included to the extent
that the amount can be measured reliably,
and its receipt is considered probable. When
it is probable that total contract cost will
exceed total contract revenue, the expected
loss is recognised as an expense immediately.
(B) Estimates(a) Estimation of defined benefit obligation
The cost of the defined benefit gratuity plan
and other post-employment medical benefits
and the present value of the gratuity obligation
are determined using actuarial valuations. An
actuarial valuation involves making various
assumptions that may differ from actual
developments in the future. These include
the determination of the discount rate, future
salary increases and mortality rates. Due to
the complexities involved in the valuation
and its long-term nature, a defined benefit
obligation is highly sensitive to changes in
these assumptions. All assumptions are
reviewed at each reporting date.
The parameter most subject to change is the
discount rate. In determining the appropriate
discount rate for plans operated in India, the
management considers the interest rates of
government bonds where remaining maturity
of such bond correspond to expected term of
defined benefit obligation.
The mortality rate is based on publicly
available mortality tables. Those mortality
tables tend to change only at interval in
response to demographic changes. Future
salary increases and gratuity increases are
based on expected future inflation rates.
(b) Useful life of property, plant and equipment
The estimated useful life of property, plant
and equipment is based on a number of
factors including the effects of obsolescence,
demand, competition and other economic
factors (such as the stability of the industry
and known technological advances) and the
level of maintenance expenditures required
to obtain the expected future cash flows from
the asset.
The Company reviews at the end of each
reporting date the useful life of plant and
equipment.
(c) Provisions and contingencies
The assessments undertaken in recognising
provisions and contingencies have been made
in accordance with Ind AS 37 âProvisions,
Contingent Liabilities and Contingent
Assetsâ. The evaluation of the likelihood
of the contingent events has required best
judgment by management regarding the
probability of exposure to potential loss.
Should circumstances change following
unforeseeable developments, this likelihood
could alter.
Significant estimates are involved in
determining the provision for current and
deferred tax, including amount expected to be
paid/recovered for uncertain tax positions.
v. During the year ended March 31,2026, the Company has reassessed useful life of certain plant and machinery based on
internal assessment and technical evaluation, and accordingly has revised the estimate of its useful life from 15 years
to 10 years in respect of those assets. The impact of above change on the depreciation charge for the current and future
years are as follows:
i. There is no project whose completion is overdue or has exceeded its cost compared to its original plan during the
year ended March 31,2026 and year ended March 31,2025.
ii. No project has been suspended during the year ended March 31,2026 and year ended March 31,2025.
iii. CWIP comprised of new manufacturing unit being constructed in India.
The Company has lease contracts for various items of Plant and machinery and other immovable properties used in its
operations and management of day to day company activities. Leases of plant and machinery generally have lease terms
between 4 to 5 years, and other immovable property have lease terms between 3 to 9 years.
The Companies obligations under its leases are secured by the lessorâs title to the leased assets. Generally, the Company is
restricted from assigning and subleasing the leased assets and some contracts require the company to maintain certain fixed
deposit with the lessor.
The Company also has certain leases of immovable properties with lease terms of 12 months or less. The Company applies
the âshort-term leaseâ recognition exemptions for these leases.
i. Mr. Neelesh Garg and Mr. Manik Garg each held one share in Saatvik Cleantech EPC Private Limited; and Mrs. Sunila Garg
and Mrs. Manavika Garg each held one share in Saatvik Solar Industries Private Limited as nominees on behalf of Saatvik
Green Energy Limited.
ii. The Company has granted Employee Stock Options (ESOP) to the employees of Saatvik Cleantech EPC Private Limited.
Accordingly as per Ind AS 102 the cost related to the ESOP granted as at March 31,2026: INR 5.38 millions (March 31,
2025: INR 2.42 millions) have been treated as deemed investment in the subsidiary company.
iii. The Company has invested in 8,500,000 equity shares having face value of INR 10 per share at a premium of INR 286 each
in the ratio of 850:1 through right issue of Saatvik Solar Industries Private Limited.
iv. The Company has incorporated a wholly owned subsidiary,âSaatvik Power Storage Solutions Limitedâ on March 09, 2026.
i. In general, trade receivables are non-interest bearing and the average credit period is between 30 to 45 days.
ii. Trade receivables have been pledged against borrowings, details of which has been given in assets pledge note
(Refer note 44)
iii. No trade or other receivable are due from directors or other officers of the company either severally or jointly with
any other person; nor any trade or other receivable are due from firms or private companies respectively in which
any director is a partner, a director or a member except as disclosed in note no 42.
iv. Credit risk management regarding trade receivables has been described in note 47(B.)(i.)
v. *Trade receivables are secured againt Letter of Credit received from customers.
i. During the previous year ended March 31, 2025, the Board of Directors of the Company and shareholders of the
Company had approved the increase of authorised share capital of the Company from INR 40 millions (Number of
shares: 4,000,000; face value of INR 10 per share) to INR 750 millions (Number of shares 75,000,000; face value of
INR 10 per share).
ii. During the previous year ended March 31, 2025, the Board of Directors of the Company at its meeting held on
October 19, 2024, approved the allotment of 3,54,900 equity shares on a rights basis, each carrying a face value of
INR 10/-, to the eligible shareholders.
iii. During the previous year ended March 31, 2025, the Company issued 1,86,74,500 fully paid-up equity shares of
INR 10 each as bonus shares, in the ratio of 5:1, to the eligible shareholders. The bonus issue was duly approved by
the Board of Directors at their meeting held on October 23, 2024, and subsequently by a resolution passed by the
shareholders on the same date. Pursuant to this bonus issue, the earnings per share for previous years have been
retrospectively adjusted in compliance with Ind AS 33, "Earnings per Share."
iv. During the previous year ended March 31,2025, the shareholders of the Company approved a stock split, reducing
the face value of the equity shares from INR 10 per share to INR 2 per share, with the authorised and paid-up share
capital of the Company remaining unchanged.
v. During the year, the Company has completed its initial public offer (IPO) of 19,359,079 equity shares of face value of
INR 2 each at an issue price of INR 465 per share (including a share premium of INR 463 per share), comprising fresh
issue of 15,058,004 equity shares aggregating to INR 6,999.99 millions (including an employee discount of INR 44
per share) and offer for sale of 4,301,075 equity shares by selling shareholders aggregating to INR 1,999.99 million,
totalling to INR 8,999.99 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 26, 2025.
c. Terms and rights attached to equity shares
The Company has only one class of equity shares having par value of INR 2 per share as at March 31,2026. Each holder
of equity shares is entitled to one vote per share.
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 preferential amounts. The distribution will be in proportion to the number of equity shares
held by the shareholders.
Every holder of equity shares present at a meeting in person or by proxy is entitled to one vote, and upon a poll each share
is entitled to one vote.
iv. Nature and purpose of reserves and surplus:
Retained earnings:
Retained earnings are the profits/(loss) that the Company has earned/incurred till date, less any transfers to general
reserve, dividends or other distributions paid to shareholders. Retained earnings include re-measurement loss / (gain) on
defined benefit plans, net of taxes that will not be reclassified to Statement of Profit and Loss.
Share Based Payment Reserve is used to recognise the grant date fair value of options issued to employees under
Employee stock option Scheme.
Securities premium reserve is used to record the premium on issue of shares. The reserve can be utilised only for limited
purposes such as issuance of bonus shares in accordance with the provisions of the Companies Act, 2013.
The Companyâs bank loans are subject to various financial covenants, including limitations on indebtedness, debt-equity
ratio, net borrowings to EBITDA ratio, and debt service coverage ratio. All of these covenants have been met, ensuring the
Companyâs financial stability and compliance with its loan agreements.
e. Details of security against loans
The Federal Bank Limited
The bank loan is secured with First pari passu charge on all current assets, both present & future and land of the company.
HDFC Bank Limited
The bank loan is secured with primary charge on all book debts, all plant and machinery and all inventories.
The bank loan is secured with first pari passu charge on entire movable assets (execpt of vehicles) and current assets of
the company, both present & future.
First pari passu charge on all receivables and current assets, both present and future, and mortgage on immovable fixed
assets.
iv. The Company has filed an appeal with the Joint Commissionerate of GST and Customs against an assessment order
for import of manufacturing goods for the financial Year 2019-20 and 2020-21, wherein the department has raised an
additional tax demand amounting to INR 172.31 millions (including tax of INR 59.50 millions and interest and penalties
of INR 112.81 millions) on account of incorrect classification of custom duty rates on imported goods at the time of
payment of custom duties. Consequentially, the Company has accounted for provision for incremental demand of
duty of INR 62.73 millions, and interest on such demand amounting to INR 0.08 millions during the previous year. The
remaining amount of INR 109.50 millions has been disclosed as contingent liability (Refer note 41).
Further, an amount of INR 16.50 millions (March 31,2025: INR 16.50 millions) is the outstanding balance of amount paid
under protest for the purpose of filling the appeal before Commissionerate of GST and Customs [Refer note 14].
v. The entire amount of the provision is presented as current, since the company does not have an unconditional right to
defer settlement for any of these obligations.
37. CORPORATE SOCIAL RESPONSIBILITY
Section 135(5) of the Companies Act, 2013 read with the Companies (Corporate Social Responsibility Policy) Rules, 2014,
requires that the board of directors of every eligible company, shall ensure that the company spends, in every financial year, at
least 2% of the average net profits of the company made during the three immediately preceding financial years, in pursuance
of its Corporate Social Responsibility Policy. The details of CSR expenditure as certified by the management is as follows:
1 As per Section 135 of the Companies Act, 2013 read with the Companies (Corporate Social Responsibility Policy) Rules,
2014, the Company has an unspent CSR amount of INR 16.19 millions relating to ongoing projects as at the end of the
current year. The amount has been transferred to the âUnspent CSR Accountâ within the prescribed timeline and will be
utilised within three financial years in accordance with the applicable provisions and the Companyâs CSR policy.
2 The unspent CSR amount of INR 6.46 millions relating to the year ended March 31,2025 was spent during the year ended
March 31,2026 in accordance with the applicable provisions and the Companyâs CSR policy.
39. EMPLOYEE BENEFITS
The Company makes contribution to Provident Fund, Employee State Insurance Fund and Labour Welfare Fund which
are defined contribution plan, for qualifying employees. Under these schemes, the Company is required to contribute
a specified percentage of the payroll costs to fund the benefits. The Companyâs contribution to the Employee Provident
Fund and Employee State Insurance Fund is deposited with the Provident Fund Commissioner which was recognised as
expenses in the Statement of Profit and Loss are:
B. Compensated absences - other long term employee benefit plan
The employees of the Company are entitled to compensated absences which are both accumulating and non¬
accumulating in nature. The employees can carry forward up to the specified portion of the unutilised accumulated
compensated absences and utilise it in future periods or receive cash at retirement or termination of employment. The
expected cost of accumulating compensated absences is determined by actuarial valuation (using the projected unit
credit method) based on the additional amount expected to be paid as a result of the unutilised entitlement that has
accumulated at the balance sheet date. Actuarial gains/losses are immediately taken to the Statement of Profit and Loss.
C. Define benefit plans
Gratuity
The gratuity plan is governed by the Payment of Gratuity Act, 1972. The plan provides for lump sum payment to vested
employees at retirement, death while in employment or on termination of employment of an amount equivalent to 15
days basic salary payable for each completed year of service or part thereof in excess of 6 months with no ceiling limit on
the amount. Vesting occurs open completion of 1 year of service.
The present value of the defined benefit obligation and the related current service cost were measured using the
projected unit credit method with actuarial valuations being carried out at each reporting date.
v. The plan typically exposes the Company to actuarial risks such as: interest rate, longevity risk and salary risk.
A decrease in the bond interest rate will increase the plan liability.
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.
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.
40. EMPLOYEE STOCK OPTION SCHEME
Defined contribution plans
The Company provides share-based payment scheme to its and subsidiary employees. During the year ended March 31,2026,
an employee stock option scheme (Scheme) was in existence. The relevant details of the scheme and the grant are as below:
On October 29, 2024, the board of directors approved the Saatvik Green Energy Limited Employees Stock Option Scheme-2024
(Scheme) for grant of stock options to the employees of the company and its subsidiaries. According to the Scheme, the
employee selected by the nomination and remuneration committee from time to time will be entitled to stock option, subject
to satisfaction of the prescribed vesting conditions.
Pursuant to the Scheme, on November 18, 2024, the nomination and remuneration committee approved grant of employee
stock options to the company and its subsidiaries employees. The fair value of the share options is estimated at the grant
date using a Black Scholes valuation model, taking into account the terms and conditions upon which the share options were
granted. However, the performance condition is only considered in determining the number of instruments that will ultimately
vest. The Company accounts for the scheme as an equity-settled plan.
a. Claim against the company not acknowledged as debts comprises claims towards Custom authorities for which the
Company has filed appeals with respective authorities. In the opinion of management, no material liability is likely to
arise on account of such claims.
b. As at March 31,2026, the Company had outstanding capital commitments totaling INR 14.78 millions (March 31,2025:
INR 9.17 millions), Capital advance at the end of the year is INR 1.04 millions (March 31,2025: INR 3.16 millions)
c. The Company has issued corporate financials guarantees to banks on behalf of and in respect of loans and facilities
availed by the subsidiaries and entities on which controlling entity or one or more KMP have control. The Company has
designated such guarantees as âinsurance contractsâ and classified such guarantees as contingent liabilities.
Company has given the corporate guarantees to various bankers against credit facilities such as working capital term loan /
financial assistance availed by subsidiaries and other sister concerns companies.
The Companyâs related parties primarily consists of its subsidiaries, associates, joint ventures and other entities which
includes the enterprises owned or significantly influenced by Key Management Personnel and / or their Relatives. The Group
routinely enters into transactions with these related parties in the ordinary course of business at market rates and terms.
Transactions and balances between the Company, its subsidiaries and fellow subsidiaries are eliminated on consolidation.
Derivatives not designated as hedging instruments
The Company uses foreign exchange forward contracts to manage some of its transaction and forecasted transaction
exposures such as foreign currency denominated borrowings and trade payable and receivables. The foreign exchange forward
contracts are not designated as cash flow hedges and fair value hedge and are entered into for periods consistent with foreign
currency exposure of the underlying transactions, generally from one to 24 months.
Such derivatives are initially recognised at fair value at the date the derivative contracts are entered into and are subsequently
remeasured to their fair value at the end of each reporting period. The resulting gain or loss is recognised in Statement of Profit
and Loss immediately.
B. The following methods and assumptions were used to estimate the fair values
1) The carrying value of trade receivables, cash and cash equivalents, trade payables, borrowings, lease liabilities,
other financial assets and other financial liabilities measured at amortised cost approximates to their fair value due
to the short-term maturities of these instruments.
2) The fair value of non-current financial assets and financial liabilities measured are determined by discounting future
cash flows using current rates of instruments with similar terms and credit risk. The current rates used does not
reflect significant changes from the discount rates used initially. Therefore, the carrying value of these instruments
measured at amortised cost approximates to their fair value.
C. The following is the basis of categorizing the financial instruments measured at fair value into Level 1 to Level 3:
Level 1: This level includes financial assets and liabilities that are measured by reference to quoted prices (unadjusted)
in active markets for identical assets or liabilities.
Level 2: This level includes financial assets and liabilities, measured using inputs other than quoted prices included
within Level 1 that are observable for the asset or liability, either directly (i.e., as prices) or indirectly (i.e., derived from
prices).
Level 3: This level includes financial assets and liabilities measured using inputs that are not based on observable
market data (unobservable inputs). Fair values are determined in whole or in part, using a valuation model based on
assumptions that are neither supported by prices from observable current market transactions in the same instrument
nor are they based on available market data.
D. There were no transfers between any levels for fair value measurements.46. CAPITAL MANAGEMENT
The Company aims to manage its capital efficiently so as to safeguard its ability to continue as a going concern and to optimise
returns to its shareholders management monitors the return on capital as well as the debt equity ratio and make necessary
adjustments in the capital structure for the development of the business. The capital structure of the Company is based on
managementâs judgement of the appropriate balance of key elements in order to meet its strategic and day - to - day needs.
In order to maintain or adjust the capital structure, the Company may adjust the amount of dividends paid to shareholders,
return capital to shareholders or issue new shares. ...........
47. FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES
The Companyâs principal financial liabilities, other than derivatives, comprise loans and borrowings, trade payables, and
financial guarantee contracts. The main purpose of these financial liabilities is to finance the Companyâs operations and to
provide guarantees to support its operations. The Companyâs principal financial assets include loans, trade receivables, and
cash and cash equivalents that derive directly from its operations. The Company also holds investments in debt and equity
instruments and enters into derivative transactions.
The Company is exposed to market risk, credit risk and liquidity risk. The Companyâs board of directors have the overall
responsibility for the establishment and oversight of the Companyâs risk management framework. The Companyâs risk
management policies are established to identify and analyze the risks faced by the Company, to set appropriate risk mitigation
measures to monitor risks and adherence to those measures. Risk management policies and systems are reviewed regularly
to reflect changes in market conditions and the Companyâs activities.
Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes
in market prices. Market risk comprises three types of risk: interest rate risk, currency risk and other price risk, such
as equity price risk and commodity risk. Financial instruments affected by market risk include loans and borrowings,
deposits, equity investments and derivative financial instruments.
Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of
changes in market interest rates. The Company is exposed to interest rate risk through the impact of rate changes on
interest-bearing liabilities and assets. The Company manages its interest rate risk by monitoring the movements in the
market interest rates closely.
The sensitivity analysis have been carried out based on the exposure to interest rates for instruments not hedged against
interest rate fluctuations at the end of the reporting periods. The said analysis has been carried on the amount of floating
rate borrowings outstanding at the end of the reporting period.
Currently, the Companyâs borrowings are all at fixed interest rates, except for one working capital demand loan, which is
at a floating rate. There are no floating interest-bearing assets.
Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate because of changes in
foreign exchange rates. The Companyâs exposure to the risk of changes in foreign exchange rates relates primarily to the
Companyâs operating activities (when revenue or expense is denominated in a foreign currency).
(a) The carrying amounts of the companyâs foreign currency denominated monetary assets and monetary liabilities that
have not been hedged by a derivative instrument or otherwise are given below:
Credit risk is the risk that a counter party will not meet its obligations under a financial instrument or customer contract,
leading to a financial loss. The Company is exposed to credit risk from its operating activities (primarily trade receivables),
including deposits (if any) with banks and other financial assets. Management has a credit policy in place and the
exposure to credit risk is monitored on an ongoing basis.
The carrying amount of financial assets represents the maximum credit risk exposure. There is no significant concentration
of credit risk.
The Company is exposed to credit risk in the event of non-payment by trade partners. Trade receivable consist of large
number of various types of customer, spread across geographical areas. On going credit evaluation is performed on
the financial condition of these trade receivables and where appropriate allowance for losses are provided. Further the
Company accesses the trades receivables depending on types of customers and accordingly credit risk is determined.
The maximum exposure to credit risk at the reporting date is the carrying value of each class of financial assets. The
Company does not hold collateral as security.
ii. Cash and cash equivalents and term deposits
The company maintains its cash and cash equivalents and term deposits (if any) with reputed banks. The credit risk on
these instruments is limited because the counterparties are banks with high credit ratings assigned by international
credit rating agencies.
The Company monitors the credit rating of the counterparties on regular basis. These instruments carry very minimal
credit risk based on the financial position of parties and company âs historical experience of dealing with the parties. The
Company determines the loss allowance on security deposits using estimates based on historical credit loss experience
as per the past due status of the counter parties, adjusted as appropriate to reflect current conditions and estimates of
future economic conditions.
C. Liquidity risk
Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated with its financial
liabilities that are settled by delivering cash or another financial asset. The Companyâs approach to managing liquidity
is to ensure, as far as possible, that it will have sufficient liquidity to meet its liabilities when they are due, under both
normal and stressed conditions, without incurring unacceptable losses or risking damage to the Companyâs reputation.
Ultimate responsibility for liquidity risk management rests with the board of directors, who has established an appropriate
liquidity risk management framework for the management of the Companyâs short-term, medium-term and long-term
funding and liquidity management requirements. The Company manages liquidity risk by maintaining adequate funds
through equity infusion and by matching the maturity profiles of financial assets and liabilities.
48. SEGMENT INFORMATIONI. Details of principal activities and 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 Group 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 photovoltaic modules 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
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.
50. OTHER STATUTORY INFORMATION
i Details of benami property held
No proceedings has been initiated or are pending against the company for holding any Benami property under the Benami
Transactions (Prohibition) Act, 1988 and rules made thereunder.
ii Title deeds of Immovable Property not held in the name of the Company
There are no immovable properties (other than properties where the Company is the lessee and the lease agreements
are duly executed in favour of the company) title deeds of which are not held in the name of the company.
The Company has not been declared wilful defaulter by any bank or financial institution or any lender.
iv Relationship with struck off companies
The Company has no transactions with the companies struck off under Companies Act, 2013 or Companies Act, 1956.
v Compliance with approved scheme(s) of arrangements
The Company has not entered into any scheme of arrangement which has an accounting impact on current or previous
financial year.
vi Utilisation of borrowed funds and share premium
The Company has not advanced or loaned or invested (either from borrowed funds or share premium or any other sources
or kind of funds) to any other person(s) or entity(ies), including foreign entities (Intermediaries) with the understanding
that the Intermediary shall:
a. directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf
of the Company (Ultimate Beneficiaries) or
b. provide any guarantee, security or the like to or on behalf of the ultimate beneficiaries.
The Company has not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party) with
the understanding (whether recorded in writing or otherwise) that the Company shall:
a. directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf
of the Funding Party (Ultimate Beneficiaries) or
b. provide any guarantee, security or the like on behalf of the ultimate beneficiaries.
There is no income surrendered or disclosed as income during the current or previous year in the tax assessments under
the Income Tax Act, 1961, that has not been recorded in the books of account.
viii Details of crypto currency or virtual currency
The Company has not traded or invested in crypto currency or virtual currency during the current or previous year.
ix Valuation of property, plant and equipment, intangible asset and investment property
The Company has not revalued its property, plant and equipment (including right-of-use assets) or intangible assets or
both during the current or previous year.
x Registration of charges or satisfaction with Registrar of Companies
There are no charges or satisfaction which are yet to be registered with the Registrar of Companies beyond the statutory
period.
xi Compliance with number of layers of companyâs
The Company has complied with the number of layers prescribed under of Section 2(87) of the Act read with the
Companies (Restriction on number of Layers) Rules, 2017.
xii The Company has not advanced any fund to intermediaries for further advancing to other person on behalf of ultimate
beneficiaries for the year ended March 31,2026.
xiii The Company have not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign
entities (Intermediaries) with the understanding that the Intermediary shall:
(a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf
of the company (Ultimate Beneficiaries) or
(b) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.
xiv The Company have not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party) with
the understanding (whether recorded in writing or otherwise) that the Company shall:
(a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf
of the Funding Party (Ultimate Beneficiaries) or
(b) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries
51. The Company is required to comply with the transfer pricing regulations under Section 92-92F of the Income Tax-Act, 1961.
The management is of the opinion that its international transactions/domestic specified transactions are at arms length and
that the aforesaid legislation will not have any material impact on the financial statements, particularly on the amount of tax
expense and that of provision for taxation. The transfer pricing adjustments, if any, will be made in the books of account of the
following financial year.
52. The Company has used accounting software for maintaining its books of account which has a feature of recording audit
trail (edit log) facility and the same has operated throughout the year for all relevant transactions recorded in the software,
except that audit trail was not enabled at application level for certain critical tables in the software. Further no instance of
audit trail feature being tampered with was noted in respect of accounting software where the audit trail has been enabled.
Additionally, the audit trail, to the extent maintained in the previous years, has been preserved by the Company as per the
statutory requirements for record retention.
53. On November 21, 2025, the Government of India notified provisions of the Code on Wages, 2019, the Industrial Relations
Code, 2020, the Code on Social Security, 2020 and the Occupational Safety, Health and Working Conditions Code, 2020
(âLabour Codesâ) which consolidate twenty-nine existing labour laws into a unified framework governing employees benefits
during employment and post-employment. The Labour Codes, amongst other things introduces changes, including a
uniform definition of wages and enhanced benefits relating to leave. 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 for the year ended March 31,2026 and has been accounted for accordingly. Once Central
/ State Rules are notified by the Government on all aspects of the Codes, the Company will evaluate additional impact, if any,
on the measurement of employee benefits and would provide appropriate accounting treatment.
54. During the year, the Company has completed its initial public offer (IPO) of 19,359,079 equity shares of face value of INR
2 each at an issue price of INR 465 per share (including a share premium of INR 463 per share), comprising fresh issue of
15,058,004 equity shares aggregating to INR 6,999.99 millions (including an employee discount of INR 44 per share) and offer
for sale of 4,301,075 equity shares by selling shareholders aggregating to INR 1,999.99 millions, totalling to INR 8,999.99
millions. 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 26, 2025.
The Companyâs share of total offer expenses are estimated to be INR 424.82 millions (exclusive of GST) . The IPO proceeds
(net of IPO expenses of INR 424.82 millions) which were unutilised as at March 31, 2026 are temporarily invested in fixed
deposits of scheduled commercial banks maintained in the monitoring agency account, and held in the public offer account.
The utilisation of the IPO proceeds in relation to fresh issue is summarised below:
55. The Company has changed its accounting policy for valuation of Raw Materials, Stock-in-trade, Finished Goods, and Work in
Progress from First In First Out (FIFO) to moving weighted average cost method w.e.f. March 31,2026. The Company believes
that this change to moving weighted average cost method is preferable as it reflects better matching
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