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 company’s 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 ,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 finance income
in the 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.
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("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 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.
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 (“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 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 (“MCA”) notifies new standards or amendments to the existing standards under Companies (Indian Accounting Standards) Rules as issued
from time to time. For the year ended 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 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. The company’s 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 “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.
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) “Within India”, and (b) “Outside India”. 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
in™™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 “bonus shares’ 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 \<A RalellaSreenivasa Rao <Irnlll><isWreKlia«MwJI —
*'Ý/ rHORTFRFD \ rn\ Company Secretary ChW4=inarTSaiaficer
O l accountants] rn Membership Number: A17765 Membership Number: 074967
\Ta\ /AA Place: Hyderabad
ÝQ .___./&>/ Date: June 22,2024
Pi Mi
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