XIV. Provisions

Provisions are recognised when the Company has a present obligation (legal or constructive), as a result
of past events, and it is probable that an outflow of resources, that can be reliably estimated, will be
required to settle such an obligation.

The amount recognised as a provision is the best estimate of the consideration required to settle the
present obligation at the balance sheet date, taking into account the risks and uncertainties surrounding
the obligation. When a provision is measured using the cash flows estimated to settle the present
obligation, its carrying amount is the present value of those cash flows (when the effect of the time value
of money is material).

When some or all of the economic benefits required to settle a provision are expected to be recovered
from a third party, a receivable is recognised as an asset if it is virtually certain that reimbursement will
be received and the amount of the receivable can be measured reliably.

The Company gives a warranty between 25 to 30 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.

XV. Cash and Cash Equivalent

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, which are readily convertible in an known
amount of cash and subject to insignificant risk of changes in value.

For the purpose of the Statement of cash flows, cash and cash equivalent consists of cash and short¬
term deposits, as defined above.

XVI. Earnings per Share

Basic earnings per share is computed by dividing the profit and loss after tax by the weighted average
number of equity shares outstanding during the year. The weighted average number of equity shares
outstanding during the year is adjusted for treasury shares, bonus issue, bonus element in a rights issue
to existing shareholders, share split and reverse share split (consolidation of shares).

Diluted earnings per share is computed by dividing the profit or loss after tax as adjusted for dividend,
interest and other charges to expense or income (net of any attributable taxes) relating to the dilutive
potential equity shares by weighted average number of equity shares considered for deriving basic
earning per share and weighted average number of equity shares which could have been issued on the
conversion of dilutive potential equity shares.

C. Significant judgements and estimates:

In the course of applying the policies outlined in all notes under section B above, the Company is required
to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that
are not readily apparent from other sources. The estimates and associated assumptions are based on
historical experience and other factors that are considered to be relevant. Actual results may differ from
these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting
estimates are recognised in the year in which the estimate is revised if the revision affects only that year,
or in the year of the revision and future year, if the revision affects current and future year.

(i) Useful lives of property, plant and equipment

Management reviews the useful lives of property, plant and equipment at least once a year. Such lives
are dependent upon an assessment of both the technical lives of the assets, and also their likely economic
lives based on various internal and external factors including relative efficiency, the operating conditions
of the asset, anticipated technological changes, historical trend of plant load factor, historical planned and
scheduled maintenance. This reassessment may result in change in depreciation and amortisation
expected in future periods. It is possible that the estimates made based on existing experience are

different from the actual outcomes and could cause a material adjustment to the carrying amount of
property, plant and equipment. For the relative size of the Company's property, plant and equipment refer
note 3(a).

(ii) Provisions and Contingencies

Provisions and liabilities are recognized in the period when it becomes probable that there will be a future
outflow of funds resulting from past events that can reasonably be estimated. The timing of recognition
requires application of judgement to existing facts and circumstances which may be subject to change.
Refer note 18 and 24.

In the normal course of business, contingent liabilities may arise from litigation and other claims against
the Company. Potential liabilities that are possible but not probable of an outflow of resources embodying
economic benefits are treated as contingent liabilities. Such liabilities are disclosed in the notes but are
not recognized. Refer note 38

(iii) Income Taxes

Significant judgements are involved in determining the provision for income taxes, including amount

expected to be paid/recovered for uncertain tax positions. In assessing the realizability of deferred tax
assets arising from unused tax credits, the management considers convincing evidence about availability
of sufficient taxable income against which such unused tax credits can be utilized. The amount of the
deferred income tax assets considered realizable, however, could change if estimates of future taxable
income changes in the future. Refer note 35.

(iv) Defined benefit plans

The cost of defined benefit gratuity plan and other post-employment benefits 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 mortality rate is based on publicly available mortality tables for India. 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. Refer note 37.

(v) Impairment of non-financial assets

Impairment exists when the carrying value of an asset or cash generating unit exceeds its recoverable
amount, which is the higher of its fair value less costs of disposal and its value in use. The fair value less
costs of disposal calculation is based on available data from binding sales transactions, conducted at
arm's length, for similar assets or observable market prices less incremental costs for disposing of the
asset. The value in use calculation is based on a discounted cash flow model. For the purposes of

assessing impairment, assets are grouped at the lowest levels for which there are separately identifiable
cash inflows which are largely independent of the cash inflows from the other assets or groups of assets
(cash generating units). The cash flows are derived from the budget for the next five years and do not
include restructuring activities that the Company is not yet committed to or significant future investments
that will enhance the asset's performance of the CGU being tested. The recoverable amount is sensitive
to the discount rate used for the discounted cash flow model as well as the expected future cash-inflows
and the growth rate used for extrapolation purposes. These estimates are most relevant to goodwill and
other intangibles with indefinite useful lives recognised by the Company.

(vi) Expected credit loss

The measurement of expected credit loss on financial assets is based on the evaluation of collectability
and the management's judgement considering external and internal sources of information. A
considerable amount of judgement is required in assessing the ultimate realization of the loans /

receivables having regard to, the past collection history of each party and ongoing dealings with these
parties, and assessment of their ability to pay the debt on designated dates.

D. Application of new and amended standards:

The company has adopted, with effect from April 1, 2024, the following new and revised standards and
interpretations. Their adoption has not had any significant impact on the amounts reported in the financial
statements.

(i) MCA has issued amendments to IND AS 116 concerning sale and leaseback contracts. The
amendment specifies the requirements for a seller-lessee in measuring the lease liability arising
from a sale and leaseback transaction. It ensures that the seller-lessee does not recognize any
amount of the gain or loss related to the right of use it retains.

a) Capital Reserves

Reserves is created primarily on acquisition as per statutory requirement. This reserve is utilised in accordance with the specific provision of the
Companies Act, 2013.

b) Securities Premium

The amount received in excess of face value of the equity shares is recognised in Securities Premium Reserve. This can be utilized in accordance
with the provisions of the Companies Act, 2013. There is no movement in securities premium during the reporting period.

c) Retained earnings

Retained earning represents the amount of accumulated earnings of the company, less any distribution to shareholder Movement in retained
earnings is as follows:

Note 37 : Employee Benefit Expenses

a) Defined contribution plan

The Company’s defined contribution plan comprises of Provident Fund, Employee State Insurance Scheme and Labour Welfare Fund. The Company has recognised
expense of ? 12.88 lakhs (March 31,2024 : ? 0.50 Lakhs).

b) Defined benefit plan

The Company has the following defined benefit plans.

Gratuity: In accordance with Gratuity Act, 1972, the company provides for gratuity, a defined benefit retirement plan (“The Gratuity Plan”) covering eligible employees.
The gratuity plan provides for a lump sum payment to vested employees on retirement (subject to completion of five years of continuous employment), death,
incapacitation or termination of employment that are based on last drawn salary and tenure of employment. Liabilities with regard to the gratuity plan are determined by
actuarial valuation on the reporting date and the company makes contribution to the gratuity fund administered by life insurance companies under their respective group
gratuity schemes.

Note 40 :Segment Reporting

(i) Operating segments are reported in a manner consistent with the internal reporting provided to the Chief Operating Decision Maker (“CODM”) of the Company. The
CODM, who is responsible for allocating resources and assessing performance of the operating segments, has been identified as the Chief Finance Officer of the
Company. The Company operates only in one Business Segment i.e. “Manufacturing & Trading of Solar Photovoltaic Modules”, hence does not have any reportable
Segments as per Ind AS 108 “Operating Segments”.

(ii) The Company has carried out operations during the year and have revenue from operations in india of ? 32,390.62 lakhs ( March 31, 2024 : Nil). All non-current
assets of the Company are located in India.

(iii) Further, from external customers the Company has revenue of ? 29,163.93 Lakhs (March 31, 2024: ? Nil Lakhs) more than 10% of the total revenue from
operations.

Note 41 : Leases

Effective April 1,2019, the company has adopted Ind AS 116, Leases, using modified restrospective approach. On adoption of the new standard IND AS 116 resulted in
recognition of 'right of use' assets and a lease liability. The cumulative effect of applying the standard, has been debited to retained earnings. The effect of this adoption is
insignificant on the profit before tax, profit for the period and earnings per share. Ind AS 116 will result in an increase in cash inflows from operating activities and an
increase in cash outflows from financing activities on account of lease payments.

Note 42 : Corporate social responsibility (CSR)

As per Section 135 of the Companies Act, 2013, the Company is required to spend 2% of the average net profits of the Company made during the three immediately
preceding financial years towards Corporate Social Responsibility (CSR) activities.

During the year, the Company did not meet the criteria specified in sub-section (1) of Section 135 and accordingly, is not required to constitute a CSR Committee or
spend any amount on CSR activities as per sub-section (5) of Section 135 of the Act.

Note 43 : Financial instruments - fair values and risk management
A. Accounting classification and fair value

The Company uses the following hierarchy for determining and disclosing the fair value of financial instruments by valuation technique:

Level 1: quoted (unadjusted) prices in active markets for identical assets or liabilities.

Level 2: other techniques for which all inputs which have a significant effect on the recorded fair value are observable, either directly or
indirectly.

Level 3: techniques which use inputs that have a significant effect on the recorded fair value that are not based on observable market data.

The following table shows the carrying amounts and fair values of financial assets and financial liabilities, including their levels in the fair
value hierarchy. It does not include fair value information for financial assets and financial liabilities not measured at fair value if the carrying
amount is a reasonable approximation of fair value.

The fair value of the financial assets & liabilities are included at the amount at which the instrument could be exchanged in a current transaction
between willing parties,other than in a forced or liquidation sale. The management assessed that fair value of cash and cash equivalents, trade
payables and other current financial assets and liabilities approximate their carrying amounts largely due to the short-term maturities of these
instruments.

B. Financial Risk Management
B.i. Risk management framework

A wide range of risks may affect the Company's business and operational / financial performance. The risks that could have significant
influence on the Company are market risk, credit risk and liquidity risk. The Company's Board of Directors reviews and sets out policies
for managing these risks and monitors suitable actions taken by management to minimise potential adverse effects of such risks on the
company's operational and financial performance.

B.ii. Credit risk

Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails to meet its contractual
obligations, and arises principally from the Company's trade and other receivables, cash and cash equivalents and other bank balances.
To manage this, the Company periodically assesses financial reliability of customers, taking into account the financial condition, current
economic trends and analysis of historical bad debts and ageing of accounts receivable. The maximum exposure to credit risk in case of
all the financial instruments covered below is restricted to their respective carrying amount.

(a) Trade and other receivables from customers

Credit risk in respect of trade and other receivables is managed through credit approvals, establishing credit limits and monitoring the
credit worthiness of customers to which the group grants credit terms in the normal course of business.

The Company measures the expected credit loss of trade receivables based on historical trend, industry practices and the business
environment in which the entity operates. The Group uses a provision matrix to compute the expected credit loss allowance for trade
receivables. The provision matrix takes into account available external and internal credit risk factors such as credit ratings from credit
rating agencies, financial condition, ageing of accounts receivable and the group's historical experience for customer.

(b) Cash and cash equivalents and other bank balances

The Company held cash and cash equivalents and other bank balances of f 1,709.60 Lakhs as at March 31, 2025 (March 31, 2024: f
504.23 Lakhs). The cash and cash equivalents are held with bank with good credit ratings and financial institution counterparties with
good market standing.

Notes to the financial statements for the year ended March 31, 2025

Note 43 : Financial instruments - Fair values and risk management (continued)

B.iii. 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.

Liquidity risk is managed by Company through effective fund management of the Company’s short, medium and long-term funding and liquidity
management requirements. The Company manages liquidity risk by maintaining adequate reserves, banking facilities and other borrowing facilities, by
continuously monitoring forecast and actual cash flows, and by matching the maturity profiles of financial assets and liabilities.

The following are the remaining contractual maturities of financial liabilities at the reporting date. The amounts are gross and undiscounted.

B.iv. Market risk

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: currency risk, interest rate risk and other price risk.

B.iv.a Currency risk

The Company is exposed to currency risk on account of its operating and financing activities. The functional currency of the group is Indian Rupee. Our
exposure are mainly denominated in U.S. dollars (USD) The Company business model incorporates assumptions on currency risks and ensures any
exposure is covered through the normal business operations. This intent has been achieved in all years presented. The Company has put in place a financial
risk management policy to identify the most effective and efficient ways of managing the currency risks.

B.iv.b Interest rate risk

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.

Exposure to interest rate risk

Company's interest rate risk arises primarily from borrowings. The interest rate profile of the Company's interest-bearing financial instruments is as
follows.

B.iv.c Other price risk

The Company invests its surplus funds in various Equity and debt instruments . These comprise of mainly liquid schemes of mutual funds (liquid
investments), Equity shares, Debentures and fixed deposits. This investments are susceptible to market price risk, mainly arising from changes in the
interest rates or market yields which may impact the return and value of such investments. However due to the very short tenor of the underlying portfolio
in the liquid schemes, these do not pose any significant price risk.

Note 44 : 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 management's 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.

Note 45 : Ratios (refer ratios Note)

Note 46 :

In accordance with the approved Resolution Plan, applications were filed by the Company with Bombay Stock Exchange (BSE) and National Stock
Exchange (NSE) on June 21, 2022 and September 05, 2022, respectively for recommencement of trading of Company’s shares. The Company also sought
waiver of the compliance with Minimum Public Sharing (MPS) holding requirement pursuant to Rule 19A of Securities Contracts (Regulation) Rules 1957
and in accordance with the waiver clauses as provided in the Resolution Plan. In response to which several clarifications were sought by BSE and NSE
and the Company duly addressed the same. However, NSE and BSE had till date didn’t remove suspension of the trading which was suspended w.e.f.
June 27, 2022 (i.e., closing hours of trading on June 26, 2022) on account of Capital Reduction pursuant to NCLT Order dated April 21, 2022.

The Company had submitted multiple representations to BSE and NSE for recommencement of trading. On February 21, 2025, the Company received
conditional listing approval from BSE and NSE for listing whereby BSE and NSE have asked company to undertake corporate actions and comply with
certain pending compliances including convening the general meeting of members for approval of various matters. Accordingly, the Company has
convened the meeting of members vide its notice dated April 16, 2025 to regularize and approve matters inter alia appointment of M/s. S G C O & Co. LLP
as statutory auditors of the Company and appointment of directors of the Company to comply with applicable laws who were earlier appointed by Board of
Directors of the Company.

Note 47 : Additional regulatory information

1. The Company does not have any benami property held in its name. No proceedings have been initiated on or are pending against the Company for
holding benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and Rules made thereunder.

2. The Company is not declared as willful defaulter by any bank or financial institution (as defined under the Companies Act, 2013) or consortium thereof or
other lender in accordance with the guidelines on willful defaulters issued by the Reserve Bank of India.

3. The Company has complied with the requirement with respect to number of layers as prescribed under section 2(87) of the Companies Act, 2013 read
with the Companies (Restriction on number of layers) Rules, 2017.

4. The Company does not have any transactions with companies struck off under section 248 of the Companies Act, 2013 (as amended) or section 560 of
the Companies Act, 1956.

5. 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 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.

6. 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.

7. The Company does not have any transaction which is not recorded in the books of accounts 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.

8. The Company has not traded or invested in crypto currency or virtual currency during the year.

9. The Company does not have any charges or satisfaction of charges which is yet to be registered with Registrar of Companies beyond the statutory
period.

10. The Company has not revalued any of its Property, Plant and Equipment during the year.

Note 48 : Change in registered office address

The Company vide Board resolution dated September 28, 2024 have shifted its registered office from C-12, Friends Colony (East), New Delhi - 110065,
India to Unit no. 301, 3rd floor, Building 02, Southern Park, Saket, New Delhi-110017, India.

Note 49 : Disclosures with regards to section 186 of the Companies Act, 2013

The Company has not given any loan or guarantee or provided any security or made any investment under Section 186 of the Companies Act, 2013.

Note 50 : Previous Year's Figures

The previous year figures have also been reclassified to conform to current year’s classification wherever applicable.

As per our report of even date attached

For S G C O & Co. LLP For and on behalf of the Board of Directors of

Chartered Accountants Indosolar Limited

Firm Regn No. 112081W/W100184

Sd/- Sd/- Sd/- Sd/- Sd/- Sd/-

Nitesh Musahib Hitesh C Doshi Hitesh P Mehta Amit Paithankar Sonal Shrivastava Akalpita Patel

Partner Chairman and Director Chief Executive Officer Chief Financial Officer Company

Managing Director Secretary

Mem. No. 131146 DIN 00293668 DIN 00207506 ACS - A40528

Place : Mumbai Place:Mumbai

Date: April 17, 2025 Date: April 17, 2025