Sungarner Energies Ltd. కంపెనీ అకౌంటింగ్ విధానాలు

Mar 31, 2025

2.1 Basis of Preparation of Financial Statements:

The financial statements of the Company have been prepared in accordance with the Generally Accepted Accounting
Principles in India (Indian GAAP) to comply with the Accounting Standards specified under Section 133 of the
Companies Act, 2013 (“the 2013 Act”) and the relevant provisions of the 1956 Act / 2013 Act, as applicable. The
financial statements of the Company are prepared under the historical cost convention using the accrual method of
accounting. The accounting policies adopted in the preparation of the financial statements are consistent with those of
the previous year. All assets and liabilities have been classified as current or non-current as per the Company’s normal
operating cycle and other criteria set out in Schedule III to the 2013 Act.

2.2 Use of Estimates:

The presentation of the financial statements, in conformity with Indian GAAP, requires the Management to make
estimates and assumptions that affect the reported amounts of assets and liabilities, revenues and expenses and
disclosure of contingent liabilities. Management believes that the estimates used in the preparation of the financial
statements are prudent and reasonable, future results could differ, the differences between the actual results and the
estimates are recognized in the period in which the results are known / materialize.

2.3 Property, plant and equipment (PPE)

Tangible assets are carried at cost less accumulated depreciation and accumulated impairment losses, if any. Cost
comprises of the purchase price including import duties and non-refundable taxes, and directly attributable expenses
incurred to bring the asset to the location and condition necessary for it to be capable of being operated in the manner
intended by management. Capital expenditure incurred on rented properties is classified as ‘Leasehold improvements’
under property, plant and equipment.

Subsequent costs related to an item of Property, Plant and Equipment are recognized in the carrying amount of the
item if the recognition criteria are met. Items of Property, Plant and Equipment that have been retired from active use
and are held for disposal are stated at the lower of their net carrying amount and net realizable value and are shown
separately in the financial statements under the head ‘Other current assets’. Any write-down in this regard is recognized
immediately in the Statement of Profit and Loss. An item of Property, Plant and Equipment is derecognized on
disposal or when no future economic benefits are expected from its use or disposal. The gain or loss arising on
derecognition is recognized in the Statement of Profit and Loss.

Depreciation on tangible asset is recognized on a straight-line basis based on a useful life of the assets prescribed in
Schedule II to the Act. If the management’s estimates of the useful life of an asset at the time of acquisition of assets
or of the remaining useful life on a subsequent review is shorter than that envisaged in the aforesaid schedule,
depreciation is provided at a higher rate owing to their risk of higher obsolesce / wear & tear. The useful life of the
assets has been reassessed based on the number of years for which the assets have already been put to use and the
estimated minimum balance period for which the assets can be used in the Company. The estimated life of property,
plant and equipment has been determined as follows:

2.4 Intangible assets

Intangible assets are stated at acquisition cost, net of accumulated amortization and accumulated impairment losses, if
any. Intangible assets are amortized on a straight-line basis over their estimated useful lives. A rebuttable presumption
that the useful life of an intangible asset will not exceed fifteen years from the date when the asset is available for use is
considered by the management. The amortization period and the amortization method are reviewed at least at each
financial year end. If the expected useful life of the asset is significantly different from previous estimates, the
amortization period is changed accordingly.

Gains or losses arising from the retirement or disposal of an intangible asset are determined as the difference between
the net disposal proceeds and the carrying amount of the asset and recognized as income or expense in the Statement
of Profit and Loss. The estimated useful lives of intangible assets are as follows:

2.5 Impairment

The Company assesses at each balance sheet date whether there is any indication that an asset may be impaired. If any
such indication exists, the Company estimates the recoverable amount of the asset. If such recoverable amount of the
asset or the recoverable amount of the cash generating unit to which the asset belongs is less than its carrying amount,
the carrying amount is reduced to its recoverable amount and the reduction is treated as an impairment loss and is
recognized in the Statement of Profit and Loss account. If at the balance sheet date there is an indication that if a
previously assessed impairment loss no longer exists, the recoverable amount is reassessed and the asset is reflected at
the recoverable amount subject to a maximum of depreciated historical cost.

2.6 Investment

Investments are classified between long term and current categories as per the Accounting Standards issued by
Institute of Chartered Accountants of India.

Long term investments are stated at cost. Provision for diminution in the value of investments, if any, is made if the
decline in value is of permanent nature. Current investments are valued at lower of cost or market value.

As a conservative and prudent policy, the Company does not provide for increase in the book value of individual
investment held by it on the date of Balance Sheet.

2.7 Inventories

The figure of closing stock is taken on the basis of physical count of stock by the management at the end of the year.
Inventories are valued at lower of historical cost and net realizable value.

Cost of inventories have been computed to include all costs of purchases, cost of conversion, all non-refundable duties
& taxes and other costs incurred in bringing the inventories to their present location and condition.

Stock-in-trade are based on weighted average cost basis.

Obsolete, slow moving and defective inventories are valued at net realizable value i.e. scrap rate.

Goods in transit are stated at actual cost incurred up to the date of Balance Sheet.

Net realizable value is the estimated selling price in the ordinary course of business, less estimated cost of completion
and estimated cost necessary to make the sale. Necessary adjustment for shortage / excess stock is given based on the
available evidence and past experience of the Company.

2.8 Revenue Recognition

- Revenue from sale of product

Revenue is recognized in respect of sales on dispatch of product to the customers. Quality rebates, claims and
other discounts, if any, are disclosed separately.

- Other revenue

Interest on bank deposits is recognized on the time proportion basis taking into account the amounts invested
and the rate of interest as applicable.

2.9 Employee Benefits

Gratuity is a post-employment benefit and is in the nature of a defined benefit plan. The liability recognized in the balance
sheet in respect of gratuity is the present value of the defined benefit obligation at the balance sheet date. The defined
benefit obligation is calculated at the balance sheet date by an independent actuary using the projected unit credit method.
Actuarial gains and losses arising from past experience and changes in actuarial assumptions are charged to the Statement
of Profit and Loss in the year in which such gains or losses are determined.

Employee benefits in the form of Provident Fund and Employee State Insurance Scheme are defined contribution plans
and the contributions are charged to the Statement of Profit and Loss of the year when the contributions to the respective
funds are due. There are no other obligations other than the contribution payable to the respective funds

Short-term employee benefits: All employee benefits payable wholly within twelve months of rendering the service are
classified as short-term employee benefits and are recognized in the Statement of Profit and Loss in the period in which
the employee renders the related service.

Liability in respect of compensated absences becoming due or expected to be availed within one year from the date is
recognized on the basis undiscounted value of estimated amount required to be paid or estimated value of benefit
expected to be availed by the employees. Liability in respect of compensated absences becoming due or expected to be
availed more than one year after the balance sheet date is estimated on the basis of an actuarial valuation performed by an
independent actuary using the projected unit credit method.

2.10 Foreign currency transactions
Initial recognition

Foreign currency transactions are recorded in the reporting currency, by applying to the foreign currency amount the
exchange rate between the reporting currency and the foreign currency at the date of the transaction.

Conversion

Foreign currency monetary items are reported using the closing rate. Non-monetary items which are carried in terms of
historical cost denominated in a foreign currency are reported using the exchange rate at the date of the transaction;
and non-monetary items which are carried at fair value or other similar valuation denominated in a foreign currency are
reported using the exchange rates that existed when the values were determined.

Exchange differences

Exchange differences arising on the settlement of monetary items or on restatement of the Company’s monetary items
at rates different from those at which they were initially recorded during the year, or reported in previous financial
statements, are recognized as income or as expenses in the year in which they arise other than of the capitalization of
exchange differences which is referred to in PPE above.

2.11 Taxation

The tax expense comprises of current tax and deferred tax. Current tax is the amount of income tax determined to be
payable in respect of taxable income for a period as per the provisions of Income Tax Act, 1961. Deferred tax is the
effect of timing differences between taxable income and accounting income that originate in one period and are
capable of reversal in one or more subsequent periods. Deferred tax is measured based on the tax rates and the tax
laws enacted or substantively enacted at the balance sheet date. Deferred tax assets are reviewed at each balance sheet
date and recognized/derecognized only to the extent that there is reasonable/virtual certainty, depending on the nature
of the timing differences, that sufficient future taxable income will be available against which such deferred tax assets
can be realized.

Minimum Alternate Tax (‘MAT’) credit is recognized as an asset only when and to the extent there is convincing
evidence that the Company will pay normal income tax during the specified period. In the year in which MAT credit
becomes eligible to be recognized as an asset in accordance with the recommendations contained in Guidance Note on
Accounting for Credit Available in respect of Minimum Alternative Tax under the Income-tax Act, 1961, the said asset
is created by way of a credit to the Statement of Profit and Loss and shown as MAT credit entitlement. The Company
reviews the same at each balance sheet date and writes down the carrying amount of MAT credit entitlement to the
extent it is not reasonably certain that the Company will pay normal income tax during the specified period.

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Mar 31, 2024

Data Not Available

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Mar 31, 2023

1. Background of the Company:

Sungarncr Energies Limited having its registered office at 1/5322, S/F, Plot No. 19A, Cali No. 13, Balbir Nagar Kxtn., New Delhi - 110032 and corporate office at Plot No. 113 Udyog Kcndra-II, Greater Noida, Gautam Buddha Nagar, Uttar Pradesh - 201306, was incorporated on 30* April 2015, under Companies Act, 2013.

The corporate identification number of the company is U34100DL2015PTC279632. The Company is engaged in Manufacturing, Design, Engineering of Power Equipments and Appliances such as Online UPS, Solar Inverters, L\ Chargers, Storage Solutions (Lead Acid and Lithium ion), Solar Equipment and Installation and Commissioning ol Solar Power Plants. The Company presently provides these products and these services to corporate houses / Channel Partners all over India and Abroad.

2. Statement of Significant Accounting Policies

2.1 Basis of Preparation of Financial Statements:

The financial statements of the Company have been prepared in accordance with the Generally Accepted Accounting Principles in India (Indian GAAP) to comply with the Accounting Standards specified under Section 133 of the Companies Act, 2013 (“the 2013 Act”) and the relevanr provisions of the 1956 Act / 2013 Act, as applicable. I he financial statements of the Company arc prepared under the historical cost convention using the accrual method of accounting. The accounting policies adopted in the preparation of the financial statements are consistent with those ol the previous year. All assets and liabilities have been classified as current or non-current as per the Company’s normal operating cycle and other criteria set out in Schedule III to the 2013 Act.

2.2 Use of Estimates:

The presentation of the financial statements, in conformity with Indian GAAP, requires the Management to make estimates and assumptions that affect the reported amounts of assets and liabilities, revenues and expenses anti disclosure of contingent liabilities. Management believes that the estimates used in the preparation of the financial statements are prudent and reasonable, future results could diilcr, the differences between the actual results and the estimates arc recognised in the period in which the results are known / materialise.

2.3 Property, plant and equipment (PPE)

Tangible assets are carried at cost less accumulated depreciation and accumulated impairment losses, it any. Cost comprises of tire purchase price including import duties and non refundable taxes, and directly attributable expenses incurred to bring the asset to the location and condition necessary for it to he capable of being operated in the manner intended by management. Capital expenditure incurred on rented properties is classified as ‘Leasehold improvements under property, plant and equipment.

Subsequent costs related to an item of Property, Plant and Equipment are recognised in the carrying amount ol the item if the recognition criteria are met. Items of Property, Plant and Equipment that have been retired from active use and are held for disposal are stated at the lower of their net carrying amount and net realisable value and arc shown separately in the financial statements under the head ‘Other current assets’. Any write down in this regard is recognised immediately in the Statement of Profit and Loss. An item of Property, Plant and Equipment is derecognised on disposal or when no future economic benefits arc expected Irom its use or disposal. 1 lie gain or loss arising on derecognition is recognised in the Statement of Profit and Loss.

Depreciation on tangible asset is recognised on a straight-line basis based on a useful life of the assets prescribed in Schedule II to the Act. If the management’s estimates of the useful life of an asset at the time of acquisition of assets or of the remaining useful life on a subsequent review is shorter than that envisaged in the aforesaid schedule, depreciation is provided at a higher rate owing to their risk of higher obsolesce / wear & tear. 1 he useful life of die assets lias been reassessed based on the number of years for which the assets have already been pur to use and the estimated minimum balance period for which the assets can be used in the Company. The estimated life of property, plant and equipment has been determined as tollows:

Estimated useful life has been tabulated below:
Nature of Assets	Useful Life (In years)
Building	30
Building (Temporary Structure)	3
Computer	3
Electric Installations	10
Office Equipment	5
Furniture & Fixture	10
Plant And Machinery	15

2.4 Intangible assets

Intangible assets are stated at acquisition cost, net of accumulated amoruzauon and accumulated impairment losses, it any- Intangible assets are amortized on a straighr-hne basis over their estimated useful lives. A rebuttable presumption that the useful life of an intangible asset will not exceed fifteen years from the date when the asset is available for use is considered by the management. The amortisation period and the amortisation method are reviewed at least at each financial year end. If the expected useful life of the asset is significantly different from previous estimates, the amortisation period is changed accordingly.

Gains or losses arising from die retirement or disposal ot an intangible asset are determined as the difference between the net disposal proceeds and the carrying amount of the asset and recognized as income or expense in the Statement of Profit and Loss. The estimated useful lives of intangible assets are as follows:

Nature of Assets	Useful Life (In years)
Software	3

2.5 Impairment

The Company assesses at each balance sheet date whether there is any indication that an asset may be impaired- It any such indication exists, the Company estimates the recoverable amount of the asset. If such recoverable amount ot the asset or the recoverable amount of the cash generating unit to which the asset belongs is less than its carrying amount, the carrying amount is reduced to its recoverable amount and the reduction is treated as an impairment loss and is recognized in the Statement of Profit and Loss account. If at the balance sheet date there is an indication that if a previously assessed impairment loss no longer exists, the recoverable amount is reassessed and the asset is reflected at the recoverable amount subject to a maximum of depreciated historical cost.

2.6 Investment

Investments are classified between long term and current categories as per the Accounting Standards issued by Institute of Chartered Accountants of India.

Long term investments ate stared at cost. Provision for diminution in the value of investments, if any, is made il the decline in value is of permanent nature. Current investments arc valued at lower of cost or market value.

As a conservative and prudent policy, the Company does not provide for increase in the book value of individual

investment held by it on the date of Balance Short

2.7 Inventories

The figure of closing Stock is taken on the basis of physical count of stock by the management at the end of the year Inventories are valued at lower of historical cost and net realizable value.

Cost of inventories have been computed to include all costs of purchases, cost of conversion, all non refundable duties & taxes and other costs incurred in bringing the inventories to their present location and condition.

Stock-in-trade arc based on weighted average cost basis.

Obsolete, slow moving and defective inventories are valued at net realizable value i.e. scrap rate.

Goods in transit arc stated at actual cost incurred up to the date of Balance Sheet.

Met realizable value is the estimated selling price in the ordinal*)'' course of business, less estimated cost of completion and estimated cost necessary to make the sale. Necessary adjustment for shortage / excess stock is given based on the available evidence and past experience of the Company.

2.8 Revenue Recognition

Revenue from sale of product

Revenue is recognized in respect of sales on dispatch of product to the customers. Quality rebates, claims and other discounts, if any, are disclosed separately.

Other revenue

Interest on hank deposits is recognized on the time proportion basis taking into account the amounts invested and the rate of interest as applicable.

2.9 Employee Benefits

Gratuity is a post-employment benefit and is in the nature of a defined benefit plan. The liability recognised in the balance sheet in respect of gratuity is the present value of the defined benefit obligation at the balance sheet date. The defined benefit obligation is calculated at the balance sheet date by an independent actuary using the projected unit credit method. Actuarial gains and losses arising from past experience and changes in actuarial assumptions arc charged to the Statement of Profit and Loss in the year in which such gains or losses are determined.

Employee benefits in the form of Provident Fund and Employee State Insurance Scheme arc defined contribution plans and the contributions are charged to the Statement of Profit and Loss of the year when the contributions to the respective funds are due. There are no other obligations other than the contribution payable to the respective funds

Short-term employee benefits: All employee benefits payable wholly within twelve months of rendering the service are classified as short-term employee benefirs and are recognised in the Statement of Profit and Loss in the period in which

the employee renders the related service.

Liability in respect of compensated absences becoming due or expected to be availed within one year from the date is recognised on the basis undiscounted value of estimated amount requited to be paid or estimated value ot benefit expected to be availed by the employees. Liability in respect of compensated absences becoming due or expected to be availed more than one year after the balance sheet date is estimated on the basis of an actuarial valuation performed bv an independent actuary using the projected unit credit method.

2.10 Foreign currency transactions

Initial recognition

Foreign currency transactions are recorded in die reporting currency, by applying to the foreign currency amount the exchange rate between the reporting currency and the foreign currency at the date of the transaction.

Conversion

Foreign currency monetary items are reported using the closing rate. Non-monctary items which are carried in terms ot historical cost denominated in a foreign currency are reported using the exchange rate at the date of the transaction;

and non-monerary items which are carried at fair value or other similar valuation denominated in a foreign currency are reported using the exchange rates that existed when the values were determined.

Exchange differences

Exchange differences arising on the settlement of monetary items or on restatement of the Company''s monetary items at rates different from those at which they were initially recorded during the year, or reported in previous financial statements, are recognised as income or as expenses in the year in which they arise other than of the capitalisation of exchange differences which is referred to in PPE above.

2.11 Taxation

Tlte tax expense comprises of current tax and deferred tax. Current tax is the amount of income tax dcterminit! to he payable in respect of taxable income for a period as per the provisions of Income Tax Act, 1961. Deferred tax is the effect of timing differences between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods Deferred rax is measured based on the tax rates and the tax laws enacted or substantively enacted at the balance sheet date. Deterred tax assets arc reviewed at each balance sheet date and recognised/derecognized only to the extent that there is reasonable/vimial certainty, depending on the nature of the riming differences, that sulficient future taxable income will be available against which such deferred tax assets can be realized.

Minimum Alternate Tax (‘MAT’) credit is recognised as an asset only when and to the extent there is convincing evidence that the Company will pay normal income rax during the specified period. In the year in which MAT credit becomes eligible to be recognised as an asset in accordance with the recommendations contained in Guidance Note on Accounting for Credit Available in respect of Minimum Alternative Tax under the Income- tax Act, 1961, the said asset is created by way of a credit to the Statement of Profit and boss and shown as MAT credit entitlement. I he Company reviews the same at each balance sheet date and writes down the carrying amount of MA I credit entitlement to the

extent it is not reasonably certain that the Company will pay normal income tax during the specified period.

2.12 Contingent liabilities and provisions

A contingent liability is a possible obligation that arises from past events whose existence will be confirmed by the occurrence or non-occurrence of one or more uncertain future events beyond the control of the Company or a present obligation that is not recognised because it is not probable that an outflow of resources will be required to settle the obligation. A contingent liability also arises in extremely rare cases where there is a liability that cannot be recognised because it cannot be measured reliably,

A disclosure is made for a contingent liability¹ when there is a:

a) possible obligation, the existence of which will he confirmed by die occurrcncc/non -occurrence of one or more uncertain events, not fully with in the control of the Company;

b) present obligation, where it is not probable that an outflow of resources embodying economic benefits will be required to settle the obligation;

c) present obligation, where a reliable estimate cannot be made.

A provision is recognised when the Company'' has a present obligation as a result of past events, it is probable that an outflow'' of resources embodying economic benefits will be required to setde the obligation and a reliable estimate can be made of the amount of the obligation. Provisions are not disclosed to their present value and are determined based on best estimates required to settle the obligation at the reporting date. These estimates are reviewed at each reporting date and are adjusted to reflect the current best estimates.

2.13 Earnings per share

Basic earnings per share is calculated by dividing the net profit or loss for the year attributable to equity shareholders

by the weighted average number of equity'' shares outstanding during the year.

2.14 Cash, Cash Equivalents and Bank Balances

Cash, Cash Equivalents and Bank Balances for the purpose of Cash Flow Statement comprise Cash at Bank, Cash in Hand, Cheques / Drafts in Hand, Deposits with Bank within 12 months maturity and other permissible instruments as per Accounting Standard AS-3.

2.15 Borrowing Cost:

Borrowing Cost attributable to the acquisition or construction of a qualifying asset is capitalized as part of the cost of the asset. Other borrowing costs are recognized as an expense in the period in which they are incurred.

2.16 Segment Information;

Based on the principles for determination of segments given in Accounting Standard 17 “Segment Reporting” issued by accounting standard notified by Companies (Accounting Standard) Rules. 2008, the Company is mainly engaged in the activity surrounded with main business of the Company hence there is no reportable segment.

2.17 Prior Period Expenditure;

The change in estimate due to error or omission in earlier period is treated as prior period items. The items in respect of which liability has arisen/crystallized in the current year, though perraining to earlier year is not treated as prior period expenditure.

2.18 Extra Ordinary Items:

The income or expenses that arise from event or transactions which are clearly disunct from the ordinary

activities of the Company and are not recurring in nature are treated as extra ordinary items. The extra ordinary items are disclosed in the statement of profit and loss as a part of net profit or loss for the period in a manner so as the impact of the same on current profit can be perceived.