2.12 Provisions, Contingent Liabilities and Contingent Assets:-

This accounting policy is formulated in accordance with the principles laid down
under Indian Accounting Standard (Ind AS) 37 - Provisions, Contingent Liabilities and
Contingent Assets.

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 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. The expense relating to a
provision is presented in the statement of profit and loss.

foreign currencies are retranslated at the rates prevailing at that date. Non monetary
items carried at fair value that are denominated in foreign currencies are retranslated
at the rates prevailing at the date when the fair value was determined. Non-monetary
items that are measured in terms of historical cost in a foreign currency are translated
using exchange rate at the dates of initial recognition

According to Appendix B of Ind AS 21 "Foreign currency transactions and advance
consideration", purchase or sale transactions must be translated at the exchange rate
prevailing on the date the asset or liability is initially recognised. In practice, this is
usually the date on which the advance payment is paid or received. In the case of
multiple advances, the exchange rate must be determined for each payment and
collection transaction

Exchange differences on monetary items are recognised in statement of profit and loss.

2.17 Cash Flow Statement:-

Cash flows are reported using indirect method whereby profit for the period is
adjusted for the effects of the transactions of non-cash nature, any deferrals or
accruals of past or future operating cash receipts and payments and items of income
or expenses associated with investing and financing cash flows. The cash flows from
operating, investing and financing activities of the Company are segregated.

2.18 Events after reporting date:-

Where events occurring after the Balance Sheet date provide evidence of conditions
that existed at the end of the reporting period, the impact of such events is adjusted
within the financial statements. Otherwise, events after the Balance Sheet date of
material size or nature are only disclosed.

2.19 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, 2025, MCA has not notified any
new standards or amendments to the existing standards applicable to the Company.

2.20 Expected credit loss

The Company applies the Expected Credit Loss model as prescribed under Ind AS
109 - Financial Instruments for the recognition and measurement of impairment on
financial assets measured at amortized cost or at fair value through other
comprehensive income (FVOCI). These financial assets primarily include trade
receivables. The ECL is estimated using a provision matrix that is based on the
Company's historical credit loss experience, adjusted for current conditions and
forward-looking information such as customer risk profiles, economic trends, and
industry outlook. Receivables are grouped into homogeneous segments and
different ECL rates are applied depending on the number of days past due.

Changes in the expected credit loss allowance are recognized in the Statement of
Profit and Loss ( Refer note 10)

2.21 Segment Reporting

In accordance with Ind AS 108 - Operating Segments, the Company is required to
disclose segment information based on the internal financial reporting provided to
the chief operating decision maker (CODM). However, the Company operates in a
single segment, primarily engaged in the generation of electricity through its solar
power plants. The management does not assess performance or allocate resources
on a segmental basis. Therefore, segment reporting is not applicable, and no
segmental information is disclosed in these financial statements.( Refer note 40)

2.22 Share-Based Payments

The Company has formulated Employee Stock Option Plans (ESOPs) which are equity-
settled share-based payment schemes. The Company measures the cost of equity-
settled transactions with employees based on the fair value of the options at the
grant date, in accordance with the requirements of Ind AS 102 - Share-based
Payment. The fair value is determined using the Black-Scholes valuation model or any
other appropriate method, and is recognized as an employee compensation expense
on a straight-line basis over the vesting period, based on the Company's estimate of
the number of equity instruments that will ultimately vest. At each reporting date,
the Company revises its estimate of the number of options expected to vest and
recognizes the impact of the revision of original estimates, if any, in the Statement of
Profit and Loss, with a corresponding adjustment to equity under the "Share-Based
Payment Reserve."( Refer note : 39)

Rights, preferences and restrictions:

i. The Company has only one class of equity shares referred to as equity shares having a par value of Rs. 10. Each holder of equity share
is entitled to one vote per share.

ii. Dividends, if any, is declared and paid in Indian Rupees. The dividend, if any, proposed by the Board of Directors is subject to the
approval of the shareholders in the ensuing Annual General Meeting.

iii. In the event of liquidation of the company, the holders of equity shares will be entitled to receive any of the remaining assets of the
company, after distribution of all preferential amounts. However, no such preferential amounts exist currently. The distribution will be
in proportion to the number of equity shares held by the shareholders.

iv. During the financial year ended 31st March 2025, the Company has issued 4,35,700 equity shares of face value ?10 each at a premium
of ?678.50 per share, aggregating to ?2,999.79 lakhs through a Qualified Institutional Placement (QIP). The shares were allotted
pursuant to the provisions of Chapter VI of the SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018 and Section 42 of
the Companies Act, 2013, read with Rule 14 of the Companies (Prospectus and Allotment of Securities) Rules, 2014.

As of March 31, 2025, the entire amount of ^2,999.79 lakhs raised through the Qualified Institutional Placement (QIP) has been fully
utilized towards the objectives stated in the Placement Document. The utilization includes ?2,266.77 lakhs for solar power projects
under the PM Kusum Scheme, ?518.02 lakhs for other corporate purposes, and ?215 lakhs towards issue-related expenses. There are no
unutilized proceeds remaining as on the reporting date.

v. During the financial year ended March 31, 2025, the Company allotted 27,000 equity shares of face value ?10 each, pursuant to the
exercise of options under the Zodiac Energy Limited Employee Stock Option Plan - 1 by eligible employees. These shares were issued
as fully paid-up at the exercise price in accordance with the terms of the ESOP scheme approved by the shareholders. The allotment
resulted in an increase in the Company's paid-up share capital by ?2.70 Lakhs. The related share premium, if any, has been
appropriately accounted for under securities premium.

For details of shares reserved under the ESOP of the Company refer to note no 39.

16.1 - State Bank of India - Total Sanctioned Limit - Rs. 8,562 Lakhs (Modified Charge):

The loan is secured by hypothecation of stock and receivables, including those related to MSPVL and MSEL, and plant and machinery acquired
for eight solar projects. Collateral security includes mortgage over immovable property located at Survey Nos. 359 & 360, Kheda, Gujarat, which
are in the name of Mr. Kunjbihari Shah lien on bank deposits, and pledge of equity shares amounting to Rs 852 Lakhs held by the promoter Mr.
Kunjbihari Shah.

Pledge of FDR of Rs.93.5 Lakhs for MSVPL with Bank's Lien noted thereon.

Pledge of FDR of Rs.222 Lakhs for MSEL with Bank's Lien noted thereon.

The personal Guarantor's includes Directors named Mr. Kunjbihari Jugalkishor Shah and Mrs Parul Shah.

16.2 - Bank of Baroda - Total Sanctioned Limit - Rs. 3,645 Lakhs:

This borrowing is secured by hypothecation of receivables and movable assets. Collateral includes leasehold rights on lands situated at:

a) Vankaner, District Arvalli (Khata No.. 218 - 18.04 Acre)

b) Golavada, District Sabarkantha (Khata No.. 161 - 16.00 Acre)

c) Alampura, District Arvalli (Khata No. 23 - 5.50 Acre)

d) Didhiya, District Khedbrahma ( Khata No.155,158- 7.83 Acre)

It is further secured by a 20% cash margin on BG limits, assignment of power purchase agreements, and pledge of 10.50 Lakhs equity shares by
Mr. Kunjbihari Shah.

Pledge of FDR of Rs.250 Lakhs with Bank's Lien noted thereon.

A second charge, ranking pari passu with Axis Bank, has been created on the assets given as collateral to Axis Bank as detailed in point no. 3,
excluding the FDR pledge with Axis Bank. Additionally, the charge extends to the entire fixed assets (both present and future), including project
assets, and the entire current assets (both present and future), including stock and book debts of the company.

16.3 - Axis Bank - Total Sanctioned Limit - Rs. 6,607 Lakhs:

The credit facilities are secured by an extension of charge over current assets of the Company, including present and future stock and book debts. A
first pari passu charge is also created over specified collateral securities shared with Bank of Baroda, except FDR's Pledged with Axis bank Such
Securites include :

a) Residential property situated at Flat no. A 101, Devraj, Judges Bungalow Road, Bodakdev, Ahmedabad owned by Mrs Parul Shah and Mrs Aruna
Shah.

b) Commercial property Office No.1204 12th Floor, Tower A Siddhi Vinayak Towers, Makarba ,Ahmedabad Owned by Mr. Kunjbihari Jugalkishor
Shah.

c) Residential property sitvated at Bungalow No. 6 Aaryaman Residency, near kalhar Bungalow,Shilaj Ahmedabad- 380059 Owned by Mrs. Parul
Kunjbihari Shah and Mr.Kunjbihari Jugalkishor Shah.

d) Commercial property Shop No. UG-4 UG-5, UG-6 Ground Floor "Parivrudh Co. OP. Housing Society Pvt Ltd", Milestone Building. Drive In Rd,
Nilmani Society, Memnagar Ahmedabad, Gujarat 380059 Owned by Mr. Kunjbihari Jugalkishor Shah.

e) Open industrial Plot. Sheet No. NA 99 City Survey No NA 363, City Survey word Pingloj City Survey Office Kheda Gujarat. Owner: Mr. Kunjbihari
Jugalkishor Shah.

f) Open industiial City Survey No NA 364, City Survey Word Pinglaj City Survey Office Kheda Gujarat Owned by Mr. Kunjbihari Jugalkishor Shah.

g) Open industrial plot City survey No NA 365, City Survey Word Pinglaj City Survey Office Kheda Gujarat, Owned by
Mr. Kunjbihari Jugalkishor Shah.

Liquid Collaterals and Cash Margin Pledged by Bank includes :

Pledge of FDR of Rs.275 Lakhs with Bank's Lien noted thereon.

Pledge of FDR of Rs.351 Lakhs with Bank's Lien noted thereon.

Pledge of FDR equialent to 15% of limit with Bank's Lien noted thereon
The personal Guarantor's includes Directors named Mr. Kunjbihari Jugalkishor Shah, Mrs Parul Shah and Mrs Aruna Shah.

21.1 Buyer's credit - acceptances (secured)

The Company has been sanctioned Buyer's Credit facilities from Axis Bank, State Bank of India (SBI), and Ratnaafin Capital to meet its
short-term trade financing requirements. These facilities are denominated in USD and are utilized to settle import and domestic
liabilities through Letters of Credit.The facility from SBI is availed at an interest rate of LIBOR 1.25%, also repayable within 180
days.The facility from Ratnaafin Capital is structured under a Purchase Invoice Discounting mechanism, with an interest rate of LIBOR
2.00% and a tenure of 360 days.These facilities are classified under current liabilities in the financial statements. The related foreign
currency risk is monitored and managed by the Company in accordance with its risk management policies.

The Company has been sanctioned a secured Working Capital Demand Loan facility amounting to Rs 6.25 crores shared between
Capsave Finance Private Limited (Rs 5.00 crores) and Ratnaafin (Rs 1.25 crore) classified under short-term borrowings. The facility is
structured as a Product Purchase Finance arrangement and is specifically intended for procurement of materials from suppliers.
Disbursements are made in tranches, each with a repayment tenor of up to 120 days, and interest is charged at 12% per annum,
collected upfront at the time of disbursement. The facility is secured by a 15% cash collateral in the form of a non-interest-bearing
security deposit, NACH mandates, post-dated cheques, and personal guarantees from the directors. The loan is repayable within the
respective tranche periods and is to be utilized exclusively for working capital needs related to material procurement. It is not to be
used for investments, inter-corporate lending, or the purchase of immovable property.

21.2 Working Capital Loan from Bank

The Company has availed a Cash Credit facility from Axis Bank amounting to Rs.35.55 Crores, which has been structured with a
defined repayment schedule. The loan carries an interest rate of EBLR applicable spread (effective rate ~9.35% p.a.), repayable over a
tenure of 12 months. The facility is secured against hypothecation of stock and receivables, and is further backed by personal guarantees
of Directors named Mr. Kunjbihari Jugalkishor Shah, Mrs Parul Shah and Mrs Aruna Shah.

Note:31.3
Risk To Plan

Following are the risk to which the plan exposes the entity :

A) Actuarial Risk

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

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

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

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

B) Investment Risk

For funded plans that rely on insurers for managing the assets, the value of assets certified by the insurer may not be the fair value of instruments
backing the liability. In such cases, the present value of the assets is independent of the future discount rate. This can result in wide fluctuations in

the net liability or the funded status if there are significant changes in the discount rate during the inter-valuation period.

C) Liquidity Risk:

Employees with high salaries and long durations or those higher in hierarchy, accumulate significant level of benefits. If some of such employees
resign / retire from the company there can be strain on the cash flows.

D) Market Risk:

Market risk is a collective term for risks that are related to the changes and fluctuations of the financial markets. One actuarial assumption that has a
material effect is the discount rate. The discount rate reflects the time value of money. An increase in discount rate leads to decrease in Defined
Benefit Obligation of the plan benefits & vice versa. This assumption depends on the yields on the corporate / government bonds and hence the
valuation of liability is exposed to fluctuations in the yields as at the valuation date.

E) Legislative Risk:

Legislative risk is the risk of increase in the plan liabilities or reduction in the plan assets due to change in the legislation / regulation. The
government may amend the Payment of Gratuity Act thus requiring the companies to pay higher benefits to the employees. This will directly affect
the present value of the Defined Benefit Obligation and the same will have to be recognized immediately in the year when any such amendment is
effective.

Note: 35

Financial Risk Management:

The Company's financial liabilities comprise mainly of borrowings, trade payables and other financial liabilities. The Company's
financial assets comprise mainly of trade receivables, cash and cash equivalents and other financial assets.

The Company's business activities are exposed to a variety of financial risks, namely market risk, credit risk and liquidity risk.

The Company's senior management has the overall responsibility for establishing and governing the Company's risk management
framework who are responsible for developing and monitoring the Company's risk management policies. The Company's risk
management policies are established to identify and analyse the risks faced by the Company, to set and monitor appropriate risk limits
and controls, periodically review the changes in market

conditions and reflect the changes in the policy accordingly. The key risks and mitigating actions are also placed before the Board of
directors of the Company. Internal audit undertakes both regular and ad hoc reviews of risk management controls and procedures, the
results of which are reported to the Board of directors.

Market Risk

The market risk is the risk that the fair value or 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. The company does not have any
investment in securities, hence it is not exposed to any price risk.

Foreign currency risk:

The Company imports various material in foreign currencies. At the end of the year company has liability for import of material,
repayments are made in foreign currencies and thus it is exposed to exchange rate fluctuations. The company's exposure to foreign
currency risk at the end of the reporting period expressed as follows:

Interest rate risk:

Interest rate risk is the risk that fair value or future cash flows of a financial instrument will fluctuate because of changes in market
interest rates. The Interest risk arises to the Company mainly from borrowings with variable rates. The Company measures risk through
sensitivity analysis. The banks are now finance at variable rate only, which is the inherent business risk.

Note: 36.1
Liquidity risk:

Liquidity risk is defined as the risk that the Company will not be able to settle or meet its obligations on time, or at a reasonable price.
The objective of liquidity risk management is to maintain sufficient liquidity and ensure that funds are available for use as per
requirements. The Company generates cash flows from operations to meet its financial obligations, maintains adequate liquid assets in
the form of cash and cash equivalents and has undrawn short term line of credits from banks to ensure necessary liquidity. The
Company closely monitors its liquidity position and deploys a robust cash management system.

Note: 39

Employee Stock Option Plan (ESOP)

1. The shareholders of the Company, vide special resolution passed through postal ballot on March 16, 2023, approved the "Zodiac Energy Limited Employee Stock Option Plan - 2023"
("ESOP 2023" or "Plan"), authorizing the Nomination and Remuneration Committee ("the Committee") to grant up to 2,92,670 (Two Lakhs Ninety-Two Thousand Six Hundred Seventy)

employee stock options in one or more tranches to eligible employees, which shall be exercisable into an equivalent number of equity shares of the Company.

2. Pursuant to the above approval and in-principle approval received from NSE and BSE dated March 29, 2023, the Committee has granted options as follows:

i) Grant 1 (FY 2022-23): On May 22, 2023, the Committee approved the grant of 1,76,000 (One Lakh Seventy-Six Thousand) stock options to eligible employees at an exercise price of H0

per option. Each option, upon vesting and exercise, entitles the holder to one fully paid-up equity share of face value H0 each. These options shall vest in the following manner:

20% on May 22, 2024

20% on May 22, 2025
25% on May 22, 2026
35% on May 22, 2027

The options are exercisable within 30 days from the respective vesting dates.

ii) Grant 2 (FY 2023-24): On May 22, 2024, the Committee granted 22,500 (Twenty-Two Thousand Five Hundred) stock options to eligible employees under the same plan and on similar
terms and conditions as Grant 1.

3. The options have been granted at face value and are equity-settled in nature. The fair value of the options has been determined on the grant dates using the Black-Scholes model as per
Ind AS 102, and the expense is recognized on a straight-line basis over the vesting period in the Statement of Profit and Loss, with a corresponding credit to the "Share-Based Payment
Reserve."

4. Options that lapse, expire, or remain unexercised due to employee separation or any other reason, shall be returned to the ESOP pool and may be re-granted in the future, subject to
applicable laws and approvals.

5. The Company confirms that no individual employee has been granted options exceeding the threshold limit prescribed under the SEBI (Share Based Employee Benefits and Sweat

Note: 47

Other additional regulatory information :

1. During the year ended 31st March, 2025 the company has not announced any dividend.The retained earnings have been appropriated as
per applicable laws and regulations.

2. No proceeding has been initiated, nor any case is pending against the group for holding any benami
property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and rules made thereunder.

3. The Company has not been declared as a wilful defaulter by any bank, financial institution or other lender.

4. No charges or satisfaction is pending to be registered with ROC beyond its statutory period.

5. The Company has no transactions or balances outstanding with companies struck off under Section 248 of the Companies Act, 2013 or
Section 560 of the Companies Act, 1956.

6. The Company does not have any subsidiaries and is in compliance with the prescribed limit of corporate layers as per applicable rules.

7. The Company has not traded or invested in cryptocurrencies or virtual digital assets during the financial year

8. The Company has not revalued its property, plant and equipment or intangible assets during the year.

9. There were no instances of charges or satisfaction of charges which were not registered with ROC within the statutory period.

10. There is no transaction recorded in the books of account that has been surrendered or disclosed as income in tax assessments under the
Income-tax Act, 1961 during the year.

11. The Company does not own any immovable property as on the balance sheet date. Accordingly, the disclosure regarding title deeds of
immovable properties is not applicable.

12. The company has not granted Loans or Advances in the nature of loans to promoters, directors, KMPs and the related parties (as defined
under Companies Act, 2013,) either severally or jointly with any other person, that are repayable on demand.

13. No Scheme of Arrangements has been approved by the Competent Authority in terms of sections 230 to 237 of the Companies Act, 2013
for the company during the year

14. The borrowings obtained by the company from banks have been applied for the purposes for which such loans were was taken.

As per our report of even date attached

For N P K U & Associates For and on behalf of the Board of Directors of

Chartered Accountants Zodiac Energy Limited

FRN: 127079W

Urjit H Ravat Kunjbihari Shah Parul Shah

(Partner) Managing Director Whole Time Director

Membership No. : 135555 DIN: 00622460 DIN: 00378095

Shefali Karar

Date : 16/0^/2025 Chief Financial Officer

Place : Ahmedabad AYJPK5188N