j) Provisions, contingent liabilities and contingent assets

The Company recogniges provisions when a present
obligation (legal or constructive) as a result of a past
event exists and it is probable that an outflow of
resources embodying economic benefits will be required
to settle such obligation and the amount of such
obligation can be reliably estimated.

If the effect of 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 recogniged as a
finance cost.

A disclosure for a contingent liability is made when there
is a possible obligation or a present obligation that may,
but probably will not require an outflow of resources
embodying economic benefits or the amount of such
obligation cannot be measured reliably. When there is
a possible obligation or a present obligation in respect
of which likelihood of outflow of resources embodying
economic benefits is remote, no provision or disclosure
is made.

Contingent assets are not recognised in the financial
statements, however they are disclosed where the inflow
of economic benefits is probable. When the realization of
income is virtually certain, then the related asset is no
longer a contingent asset and is recognised as an asset.

k) Revenue recognition

Revenue is recognised to the extent it is probable that
economic benefits will flow to the Company and the
revenue can be reliably measured. Revenue is recognised
upon transfer of control of promised products or
services to customers in an amount that reflects the
consideration which the company expects to receive in
exchange for those products or services.

Revenue is measured based on the transaction price,
which is the consideration for the respective performance
obligation, adjusted for volume discounts, service level
credits, performance bonuses, price concessions and
incentives, if any, as specified in the contract with the
customer. Revenue also excludes taxes collected from
customers. The Company's contracts with customers
could include promises to transfer multiple products
and services to a customer. The Company assesses the
products / services promised in a contract and identifies
distinct performance obligations in the contract.
Identification of distinct performance obligation
involves judgement to determine the deliverables and
the ability of the customer to benefit independently
from such deliverables.

Judgement is also required to determine the transaction
price for the contract and to ascribe the transaction
price to each distinct performance obligation. The
transaction price could be either a fixed amount of
customer consideration or variable consideration with
elements such as volume discounts, service level credits,
performance bonuses, price concessions and incentives.
The transaction price is also adjusted for the effects
of the time value of money if the contract includes a
significant financing component. The estimated amount
of variable consideration is adjusted in the transaction
price only to the extent that it is highly probable that
a significant reversal in the amount of cumulative
revenue recognised will not occur and is reassessed at
the end of each reporting period. The Company allocates
the elements of variable considerations to all the
performance obligations of the contract unless there

is observable evidence that they pertain to one or more
distinct performance obligations.

The Company exercises judgement in determining
whether the performance obligation is satisfied at
a point in time or over a period of time. The Company
considers indicators such as how customer consumes
benefits as services are rendered or who controls the
asset as it is being created or existence of enforceable
right to payment for performance to date and alternate
use of such product or service, transfer of significant
risks and rewards to the customer, acceptance of
delivery by the customer, etc.

Revenue from subsidiaries is recognised based on
transaction price which is at arm's length.

Contract assets are recognised when there are excess
of revenues earned over billings on contracts. Contract
assets are classified as unbilled receivables (only act of
invoicing is pending) when there is unconditional right to
receive cash, and only passage of time is required, as per
contractual terms.

The amount spent by the company towards fulfilling its
performance obligation (or part thereof) in accordance
with contracts entered with counter party before the
invoicing from such contract is due as per the Ind AS -
115 is regogniged as Contract Assets in these financials.
A contract asset is an entity's right to the assets for
performance obligation that the entity has executed in
accordance with the contract.

Correspondingly, the amount received from counter
party of the contract is recogniged as Contract Liability
and the same is accordingly classified as revenue
from operations in accordance with the satisfactory
performance obligation of the company in due course of
the contract from time to time, when such performance
obligation is executed as per the contract.

While disclosing the aggregate amount of transaction
price yet to be recognised as revenue towards unsatisfied
(or partially) satisfied performance obligations, along
with the broad time band for the expected time to
recognise those revenues, the Company has applied
the practical expediency in Ind AS 115. Accordingly, the
Company has not disclosed the aggregate transaction
price allocated to unsatisfied (or partially satisfied)
performance obligations which pertain to contracts
where revenue recognised corresponds to the value
transferred to customer typically involving time and
material, outcome based and event based contracts.

Unsatisfied (or partially satisfied) performance
obligations are subject to variability due to several
factors such as delivery timelines, changes in scope
of delivery, periodic revalidations of the estimates,
economic factors (changes in currency rates, tax
laws, methodology of the registry bodies, DOE audit
of the project, other governmental regulations etc.).
The aggregate value of transaction price allocated
to unsatisfied (or partially satisfied) performance

obligations is reported in the schedules of the financial
statements and the price allocated to unsatisfied (or
partially satisfied) performance obligations is expected
to be recognised as revenue in the next five years.

All revenues are accounted on accrual basis except to
the extent stated otherwise.

i) Revenue from Carbon Offsetting: The revenue from
Carbon Offsetting is recogniged when the substantial
risk and rewards are transferred by the company to
the customer, and there is reasonable certainty that
the consideration is either receivable or received.

Upon executing a composite contract with any project
proponent for providing services and monetigation
of carbon offsets, the project is usually registered in
the registry account of the company and the credits
are traded based on the contractual terms with the
project proponent, even if the invoice for purchase
of such credits is not received from the project
proponent. In such scenario, pursuant to matching
concept, the cost of such credits based on the
contractual terms or understanding with the project
proponent is recorded as expense in the statement of
profit and loss with corresponding adjustment to the
provision account of the project proponent.

ii) Revenue from Services: Revenue from services
provided is recogniged when it is probable that the
economic benefits will flow to the Company and
the revenue can be reliably measured. Revenue is
measured taking into account, contractually defined
terms of payment and satisfaction of substantial
performance obligation.

Revenue earned as a percentage of share of carbon
credits in lieu of carbon advisory services rendered
are recogniged as revenue as and when the credits
are received in the registry account of the company,
at the value of Right of First Refusal (ROFR) price
quoted to the vendor / market value of the credits as
identifiable through ongoing deals with corresponding
adjustment to the inventory of the company.

iii) Other Revenues Other revenues are recogniged on
accrual basis as per the terms of the respective
contract/arrangements and in accordance with the
provisions of AS 9: Revenue Recognition.

iv) Interest income from debt instruments is recognised
using the effective interest rate (EIR) method.

v) Dividend income is recognised when the Company's
right to receive dividend is established.

vi) Rent income is recognised on accural basis as per the
agreed terms on straight line basis.

l) Employee Benefits
Defined benefit plans

For defined benefit plans, the cost of providing benefits is
determined using the Projected Unit Credit Method, with
actuarial valuations being carried out at each balance
sheet date. Remeasurement, comprising actuarial gains

and losses, the effect of the changes to the asset ceiling
and the return on plan assets (excluding interest), is
reflected immediately in the balance sheet with a charge
or credit recognised in other comprehensive income in
the period in which they occur. Past service cost, both
vested and unvested, is recognised as an expense at the
earlier of (a) when the plan amendment or curtailment
occurs; and (b) when the entity recognises related
restructuring costs or termination benefits.

The retirement benefit obligations recognised in the
balance sheet represents the present value of the
defined benefit obligations reduced by the fair value of
scheme assets. Any asset resulting from this calculation
is limited to the present value of available refunds and
reductions in future contributions to the scheme.

The Company provides benefits such as gratuity,
pension and provident fund (Company managed fund)
to its employees which are treated as defined benefit
plans.

Defined contribution plans

Contributions to defined contribution plans are
recognised as expense when employees have rendered
services entitling them to such benefits. The Company
provides benefits such as superannuation and defined
contribution plans to its employees which are treated as
defined contribution plans.

Short-term employee benefits

All employee benefits payable wholly within twelve
months of rendering the service are classified as short¬
term employee benefits. Benefits such as salaries, wages
etc. and the expected cost of ex-gratia are recognised
in the period in which the employee renders the related
service. A liability is recognised for the amount expected
to be paid when there is a present legal or constructive
obligation to pay this amount as a result of past service
provided by the employee and the obligation can be
estimated reliably.

Compensated absences

Compensated absences which are expected to occur
within twelve months after the end of the period in
which the employee renders the related services are
recognised as undiscounted liability at the balance sheet
date. Compensated absences which are not expected to
occur within twelve months after the end of the period
in which the employee renders the related services are
recognised as an actuarially determined liability at the
present value of the defined benefit obligation at the
balance sheet date.

Gratuity and pension

In accordance with Indian law, the Company operates a
scheme of gratuity which is a defined benefit plan. The
gratuity plan provides for a lump sum payment to vested
employees at retirement, death while in employment or
on termination of employment of an amount equivalent
to 15 to 30 days' salary payable for each completed
year of service. Vesting occurs upon completion of five
continuous years of service.

Provident fund

The Company makes Provident Fund contributions to
defined contribution plans for qualifying employees.
The Company also offers to contribute to New Pension
Scheme at the option of employees. The Company is
required to contribute a specified percentage of the
payroll costs to fund the benefits. The contributions
payable to these plans by the Company are at rates
specified in the rules of the scheme.

The Company offers its employees defined contribution
plans in the form of Provident Fund (PF) and Employees'
Pension Scheme (EPS) with the government, and certain
state plans such as Employees' State Insurance (ESI). PF
and EPS cover substantially all regular employees and
the ESI covers certain employees. The contributions are
normally based on a certain proportion of the employee's
salary.

m) Transactions in foreign currencies

i) The functional currency of the Company is Indian
Rupees (“Rs").

Foreign currency transactions are accounted at
the exchange rate prevailing on the date of such
transactions.

ii) Foreign currency monetary items are translated
using the exchange rate prevailing at the reporting
date. Exchange differences arising on settlement
of monetary items or on reporting such monetary
items at rates different from those at which they
were initially recorded during the period, or reported
in previous financial statements are recognised as
income or as expenses in the period in which they
arise.

iii) Non-monetary foreign currency items are carried at
historical cost and translated at the exchange rate
prevalent at the date of the transaction.

n) Accounting for taxes on income

Tax expense comprises of current and deferred tax.

i) Current tax

Current tax is the amount of income taxes payable
in respect of taxable profit for a period. Current
tax for current and prior periods is recogniged at
the amount expected to be paid to or recovered
from the tax authorities, using the tax rates and
tax laws that have been enacted or substantively
enacted at the balance sheet date. Management
periodically evaluates positions taken in the tax
returns with respect to situations in which applicable
tax regulations are subject to interpretation and
establishes provisions where appropriate.

Current tax is recogniged in the statement of profit
and loss except to the extent that the tax relates
to items recogniged directly in other comprehensive
income or directly in equity.

Current tax assets are offset against current tax
liabilities when there is a legally enforceable right
to set off current tax assets against current tax
liabilities and the Company intends to settle its
current tax assets and current tax liabilities on a net
basis or to realise the asset and settle the liability
simultaneously.

ii) Deferred tax

Deferred tax assets and liabilities are recogniged
for all temporary differences arising between the
tax bases of assets and liabilities and their carrying
amounts in the financial statements except when the
deferred tax arises from the initial recognition of an
asset or liability that effects neither accounting nor
taxable profit or loss at the time of transition.

Deferred tax assets are reviewed at each reporting
date and are reduced to the extent that it is no longer
probable that the related tax benefit will be realiged.

Deferred tax assets and liabilities are measured using
tax rates and tax laws that have been enacted or
substantively enacted at the balance sheet date and
are expected to apply to taxable income in the years
in which those temporary differences are expected to
be recovered or settled.

Deferred tax assets and liabilities are offset when
there is a legally enforceable right to set off current
tax assets against current tax liabilities and when
they relate to income taxes levied by the same
taxation authority and the Company intends to
settle its current tax assets and current tax liabilities
on a net basis.

Presentation of current and deferred tax

Current and deferred tax are recogniged as income or
an expense in the statement of profit and loss, except
to the extent they relate to items are recogniged in
other comprehensive income, in which case, the
current and deferred tax income / expense are
recognised in other comprehensive income.

o) Earnings per share

Basic earnings per share is computed and disclosed
using the weighted average number of equity shares
outstanding during the period. Dilutive earnings per
share is computed and disclosed using the weighted
average number of equity and dilutive equity equivalent
shares outstanding during the period, except when the
results would be anti-dilutive.

p) Share based payments

The Company recogniges compensation expense relating
to share-based payments in net profit using fair-value
in accordance with Ind AS 102, Share-Based Payment.
The estimated fair value of awards is charged to
statement of profit and loss on a straight-line basis over
the requisite service period for each separately vesting
portion of the award as if the award was in-substance,

multiple awards with a corresponding increase to share
based payment reserves.

q) Dividend

Provision is made for the amount of any dividend declared
on or before the end of the reporting period but remaining
undistributed at the end of the reporting period, where
the same has been appropriately authoriged and is no
longer at the discretion of the entity

r) Contributed equity

Equity shares are classified as equity. Incremental
costs directly attributable to the issue of new shares or
options are shown in equity as a deduction, net of tax,
from the proceeds.

s) Exceptional items

Certain occasions, the sige, type, or incidences of the
item of income or expenses pertaining to the ordinary
activities of the Company is such that its disclosure
improves the understanding of the performance of
the Company, such income or expenses is classified as
an exceptional item and accordingly, disclosed in the
financial statements.

8. Critical accounting judgment and estimates

The preparation of financial statements requires
management to exercise judgment in applying the
Company's accounting policies. It also requires the
use of estimates and assumptions that affect the
reported amounts of assets, liabilities, income and
expenses and the accompanying disclosures including
disclosure of contingent liabilities. Actual results may
differ from these estimates. Estimates and underlying
assumptions are reviewed on an ongoing basis, with
revisions recognised in the period in which the estimates
are revised and in any future periods affected.

a. Contingencies

In the normal course of business, contingent liabilities
may arise from litigation and other claims against the
Company. Potential liabilities that have a low probability
of crystalliging or are very difficult to quantify reliably,
are treated as contingent liabilities. Such liabilities
are disclosed in the notes but are not provided for in
the financial statements. There can be no assurance
regarding the final outcome of these legal proceedings.

b. Useful lives and residual values

The Company reviews the useful lives and residual
values of property, plant and equipment, investment
property and intangible assets at each financial year
end.

c. Impairment testing

i) Judgment is also required in evaluating the likelihood
of collection of customer debt after revenue has been
recognised. This evaluation requires estimates to be
made, including the level of provision to be made for
amounts with uncertain recovery profiles. Provisions
are based on historical trends in the percentage of

debts which are not recovered, or on more detailed
reviews of individually significant balances.

ii) Determining whether the carrying amount of these
assets has any indication of impairment also requires
judgment. If an indication of impairment is identified,
further judgment is required to assess whether the
carrying amount can be supported by the net present
value of future cash flows forecast to be derived from
the asset. This forecast involves cash flow projections
and selecting the appropriate discount rate.

d. Tax

i) The Company's tax charge is the sum of the total
current and deferred tax charges. The calculation of
the Company's total tax charge necessarily involves
a degree of estimation and judgment in respect of
certain items whose tax treatment cannot be finally
determined until resolution has been reached with
the relevant tax authority or, as appropriate, through
a formal legal process.

ii) Accruals for tax contingencies require management
to make judgments and estimates in relation to tax
related issues and exposures.

iii) The recognition of deferred tax assets is based upon
whether it is more likely than not that sufficient and
suitable taxable profits will be available in the future
against which the reversal of temporary differences
can be deducted. Where the temporary differences
are related to losses, the availability of the losses
to offset against forecast taxable profits is also
considered. Recognition therefore involves judgment
regarding the future financial performance of the
particular legal entity or tax Company in which the
deferred tax asset has been recogniged.

e. Fair value measurement

A number of Company's accounting policies and
disclosures require the measurement of fair values, for
both financial and non- financial assets and liabilities.
When measuring the fair value of an asset or a liability,
the Company uses observable market data as far as
possible. Fair values are categoriged into different levels
in a fair value hierarchy based on the inputs used in the
valuation techniques as follows:

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

-Level 2: inputs other than quoted prices included in
Level 1 that are observable for the asset or liability,
either directly (i.e. prices) or indirectly (i.e. derived from
prices).

-Level 3: inputs for the asset or liability that are not
based on observable market data (unobservable inputs).
If the inputs used to measure the fair value of an asset or
a liability fall into different levels of a fair value hierarchy,
then the fair value measurement is categoriged in its
entirety in the same level of the fair value hierarchy as
the lowest level input that is significant to the entire

iii. Significant Estimation Uncertainty: The valuation
of inventory is subject to significant estimation
uncertainty, given the reliance on future market
conditions, obsolescence, and other factors. Changes
in these assumptions may materially impact the
reported inventory values.

iv. Historical Sales Trends: Management's assumptions
regarding the salability and obsolescence of certain
inventory items are based on historical sales

trends. Changes in market conditions or consumer
preferences may render these assumptions
inaccurate.

v. Impacts on Profitability: The choice of inventory
valuation method can have a direct impact on the
company's reported profitability. Any changes in
the valuation method or assumptions could result in
material adjustments to the financial statements.

measurement. The Company recognizes transfers
between levels of the fair value hierarchy at the end of
reporting year during which the change has occurred.

f. Defined benefit obligation

The costs of providing pensions and other post¬
employment benefits are charged to the Statement of
Profit and Loss in accordance with Ind AS 19 ‘Employee
benefits' over the period during which benefit is derived
from the employees' services. The costs are assessed on
the basis of assumptions selected by the management.
These assumptions include salary escalation rate,
discount rates, expected rate of return on assets and
mortality rates. The same is disclosed in Note 18 and 42.

g. Inventories

The valuation of inventory is a critical accounting
estimate that involves significant judgment by
management. The valuation of Inventory (carbon credits)
involves complex and specialized factors, including

verification of emission reductions, market pricing,
regulatory compliance, vintage, technology, the timing
of recognized revenues, and other aspects. Management
has considered the following critical aspects for the
inventory valuation:

i. Verification and Regulatory Compliance: Carbon
credits are subject to verification by regulatory
authorities, and compliance with evolving
environmental standards and regulations is
paramount. Any discrepancies or non-compliance
issues could have a material impact on the valuation
of carbon credits and require periodic reassessment.

ii. Market Pricing Volatility: The market for carbon
credits can be subject to significant price volatility
due to changing regulations and market demand.
Assumptions and estimates about market pricing
may impact the reported value of carbon credits and
the recognition of related revenue.

The Company's principal financial liabilities comprise
of trade and other payables and the Company's
principal financial assets include investments in mutual
funds, trade and other receivables and cash and cash
equivalents that derive directly from its operations.

Investments in subsidiaries, associates and joint
ventures are accounted at cost in accordance with Ind
AS 27 ‘Separate Financial Statements', which is not
included above.

(ii) The carrying amounts of trade receivables, trade
payables, cash and cash equivalents and other bank
balances are considered to be the same as their fair
values, due to their short-term nature. Difference
between carrying amounts and fair values of bank
deposits, earmarked balances with banks, other financial
assets, other financial liabilities subsequently measured
at amortised cost is not significant in each of the years
presented. For all other amortised cost instruments,

The Company is exposed to financial risks arising from
its operations and the use of financial instruments. The
key financial risks include market risk, credit risk and
liquidity risk. The Company's risk management policies
are established to identify and analyse the risks faced by
the Company and seek to, where appropriate, minimize
potential impact of the risk and to control and monitor
such risks. There has been no change to the Company's
exposure to these financial risks or the manner in which
it manages and measures the risks.

The following sections provide details regarding the
Company's exposure to the financial risks associated
with financial instruments held in the ordinary course of
business and the objectives, policies and processes for
management of these risks.

(i) Market risk

Market risk is the risk of loss of future earnings, fair
value or future cash flows of a financial instrument that
will fluctuate because of changes in market rates and
prices. The Company is exposed to market risk primarily
related to interest rate risk. Thus, the Company's

exposure to market risk is a function of investing and
operating activities in foreign currencies.

(a) Interest rate risk:

Interest rate risk is the risk that the fair value or future
cash flows of the Company and the Company's financial
instruments will fluctuate because of changes in market
interest rates. The Company's investment in deposits
with banks are for short durations and therefore do
not expose the Company to significant interest rate
risk. Further, the terms loans availed by the Company
carries a fixed interest rate and therefore not subject to
interest rate risk since neither the carrying value nor the
future cash flows will fluctuate because of the change in
market interest rates.

The Company's policy is to manage its interest rate risk
by investing in fixed deposits, debt securities and debt
mutual funds. Further, as there are no borrowings, the
company's policy to manage its interest cost does not
arise.

The Company's exposure to changes in interest rates
relates primarily to the Company's outstanding floating
rate debt.

(ii) 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. The Company is
exposed to credit risk from its operating activities
(primarily trade receivables and deposits) and from its
investing activities, including deposits with banks and
other financial instruments.

In addition, receivable balances are monitored on an
ongoing basis with the result that the Company's
exposure to bad debts is not significant.

(a) Exposure to credit risk:

At the end of the reporting period, the Company's
maximum exposure to credit risk is represented by
the carrying amount of each class of financial assets
recognised in the statement of financial position. No
other financial assets carry a significant exposure to
credit risk.

(b) Credit risk concentration profile:

At the end of the reporting period, there were no
significant concentrations of credit risk. The maximum
exposures to credit risk in relation to each class of
recognised financial assets is represented by the
carrying amount of each financial assets as indicated in
the balance sheet.

(c) Financial assets that are neither past due nor
impaired:

None of the Company's cash equivalents, other bank
balances, security deposits and other receivables were
past due or impaired as at 31 March 2024. Trade and
other receivables including loans that are neither past
due nor impaired are from creditworthy debtors. Cash
and short-term deposits investment securities that
are neither past due nor impaired, are placed with or
entered with reputable banks or financial institutions

or companies with high credit ratings and no history of
default.

(d) Financial assets that are either past due or impaired:

The Company doesn't have any significant trade
receivables or other financial assets which are either
past due or impaired. The Company's exposure to credit
risk is influenced mainly by the individual characteristics
of each customer. However, the Management also
evaluates the factors that may influence the credit
risk of its customer base, including the default risk. The
Company's receivables turnover is quick and historically,
there was no significant default on account of trade and
other receivables. An impairment analysis is performed
at each reporting date on an individual basis for major
clients. 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 is adjusted for forward looking
information.

(iii) Liquidity risk:

Liquidity risk is the risk that the Company will not be able
to meet its financial obligations as they become due. The
Company manages its liquidity risk by ensuring, as far
as possible, that it will always have sufficient liquidity
to meet its liabilities when due, under both normal and
stressed conditions, without incurring unacceptable
losses or risk to the Company's reputation.

Management monitors rolling forecasts of the
Company's liquidity position comprising the cash and
cash equivalents including other bank balances and
investments in mutual funds on the basis of expected
cash flows.

The table below summarises the maturity profile of the
Company's financial liabilities based on contractual
undiscounted payments as of 31 March 2025:

business requirements. To maintain or adjust the capital
structure, Company may adjust the dividend payment
to shareholders return capital to shareholders or issue
new shares.

The Company monitors capital using a debt to capital
employed ratio which is debt divided by total capital plus
debt. The Company's policy is to keep this ratio at an
optimal level to ensure that the debt related covenants
are complied with.

40 Segment reporting

The Company is into climate change & sustainability
advisory and carbon offsetting, along with business
excellence services. Also, the company develops its own
projects for generation of carbon credits. The company
has been operating in different business segments,
which has different set of risk and rewards, vis-a-vis
the profitability and expense allocation in different
segments is also diverse. The Board of Directors of the
Company have assessed and deliberated to report these
segments by segregation of assets and liabilities &
income and expenses to evaluate the performance of the
respective segments and to unlock the potential of the
segments. The allocation of resources and obligations
is based on the analysis of the various performance
indicators of the Company and their respective capital
intensive nature. As per the requirements of Ind AS 108 -
“Operating Segments”, the company has two reportable
segments as under:

(i) Trading Segment: where the carbon credits are
purchased from various vendors and are sold to
customers

(ii) Generation Segment: where the carbon credits are
issued from the projects implemented, developed and
owned by the company.

The revenue of both these segments are earned majorly
from sale of carbon credits, however the decision of
board is derived separately in both these segments
considering the variable outcomes of the respective
segments.

43 Transfer Pricing Adjustment

As per transfer pricing legislation under section 92-
92F of the Income Tax Act, 1961, the Company is
required to use certain specific methods in computing
arm's length prices of certain domestic and certain
international transaction with associated enterprises
and maintain adequate documentation in this
respect. The legislations require that such information
and documentation to be contemporaneous in
nature, the Company has appointed independent
consultant (the ‘Consultant') for conducting the
Transfer Pricing Study (the ‘Study') to determine
whether the transactions with associate enterprises
undertaken during the Financial year are on an “arm's
length basis”. Management is of the opinion that the
Company's domestic and international transactions

are at arm's length & require no transfer pricing
adjustments.

44 Corporate Social Responsibility

The Company has formulated CSR committee and has
set responsibility thereon to plan for expenditures on
CSR as per the applicable provisions of the Companies
Act, 2013. The company was not required and has not
incurred any amount towards CSR expenses during
the FY 2024-25 considering losses incurred during FY
2023-24. However, in the FY 2023-24, the company has
incurred Rs. 465.16 Lakhs on account of its contribution
for Corporate Social Responsibility, at the rate of 2% of
the average adjusted Net Profit for the previous three
years. The CSR policy and the procedures in relation to
it are in line with the requirements of the law.

^A Explanation for change in ratio of more than 25%:

1. Financial year 2021-22 was an exceptional year for
the company as the prices for carbon credits vis-a-vis
demand for the credits increased substantially. The
company held its leadership position in the market
and capitalized on the opportunities during the FY

2021- 22. During the FY 2022-23, owing to various
macro-economic factors as stated by the company in
its investor presentations, the overall business of the
company slowed-down during the second half of the
year. The broad reasons for such slow-down are low
pricing of environmental commodity, impact due to
international geopolitical turmoil, high interest rate,
inflation, regulatory changes, Media trial of green
house mitigation projects, rating of project etc. The
company was still able to generate profits during FY

2022- 23, however owing to such macro-economic
factors, the company incurred heavy losses during FY

2023- 24.

2. During FY 2024-25, the company has regained its
stability and profitability. However, considering the
extreme volatility in the business of the company in
last few years, the financial figures of the company
is uncomparable. The primary explanations in respect
of change in the ratios revolve around decrease in
revenue due to reduction in demand, increase in
profits owing to margin based trades and trading
of own generated credits, increased liquidity of the
company, reduction of debt and better working cycle.

3. The business and profit margins of the company has

also shrinked owing to unstable market and industry
of carbon credit business. Accordingly the ratios of
the company may vary year on year and not depict
the correct trend analysis.

48 Additional regulatory information not disclosed
elsewhere in the Financial Statements

a. The Company does not have any benami property and
no proceedings have been initiated on or are pending
against the Company for holding benami property
under the BenamiTransactions (Prohibition) Act,
1988 (45 of 1988) and Rules made thereunder.

b. The Company has not been declared a ‘Wilful Defaulter'
by any bank or Financial institution (as defined under
the Companies Act, 2013) or consortium thereof, in
accordance with the guidelines on wilful defaulters
issued by the Reserve Bank of India.

c. 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.

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

e. During the year, the company has written down the
value of its inventory to the tune of Rs. 1081.84 Lacs
(Rs. 5974.34 Lakhs during FY 2023-24) on account
of valuation of inventory at net realizable value
(NRV), to the extent the same does not exceed cost.
The valuation of inventory at cost or NRV, whichever
is lower is a usual and recurring transaction. This
disclosure is accordingly made pursuant to paragraph
97 and 98 of the Ind AS 1, Presentation of Financial
Statements.

f. The Company does not have any such 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.

g. The Company has not traded or invested in crypto
currency or virtual currency during the current or
previous year.

h. The Company has not revalued its property, plant and

equipment (including right-of-use assets) or intangible
assets or both during the current or previous year.

i. The Company does not have any transactions with
struck off companies.

j. The Company has not entered into any scheme of
arrangement which has an accounting impact on
current or previous Financial year.

k. The Company has not advanced or loaned or
invested funds to any other persons or entities,
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

This is the summary of significant accounting policies and
other explanatory notes referred to in our report of even date.

behalf of the Ultimate Beneficiaries.

1. The Company has not received any fund from any
persons or entities, 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.

49 Previous year figures

The figures of the corresponding previous year have
been regrouped wherever considered necessary to
correspond to current year disclosures.

For Dassani & Associates p_{or an(}j _on behalf of the Board of Directors of

Chartered Accountants EKI Energy Services Limited

Firm’s Registration No.: 009096C / C400365

Manish Kumar Dabkara

Managing Director
DIN:03496566

CA. Manoj Rathi MohitAgarwal ItishaSahu

Partner Director and Chief Financial Officer _c Secretary

Membership No.: 411460 09459334

Place: Indore Place: Indore

Date: 07.05.2025 Date: 07.05.2025