(l) Provisions, contingent liabilities and contingent as¬
sets
(i) Provisions:
Provisions are recognized when the company has a
present obligation (legal or constructive) as a result
of a past event, it is probable that the company
will be required to settle the obligation, and a
reliable estimate can be made of the amount of the
obligation.
The amount recognized as a provision is the best
estimate of the consideration required to settle the
present obligation at the end of the reporting period,
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 recognized as an
asset if it is virtually certain that reimbursement will
be received and the amount of the receivable can be
measured reliably.
(ii) Provision for warranty:
The estimated liability for product warranties is
recorded when products are sold. These estimates
are established using historical information on the
nature, frequency and average cost of warranty
claims and management estimates regarding
possible future incidence based on corrective
actions or product failures. The timing of outflows
will vary as and when warranty claim will arise -
being typically 5 years.
(iii) Contingent liabilities:
Contingent liabilities are disclosed when there
is a possible obligation arising from past events,
the existence of which will be confirmed only by
the occurrence or non- occurrence of one or more
uncertain future events not wholly within the control
of the Company or a present obligation that arises
from past events where it is either not probable that
an outflow of resources will be required to settle or a
reliable estimate of the amount cannot be made.
(iv) Contingent assets:
Contingent assets are not recognized in the accounts.
However they are disclosed when the possible right
to receive exists.
(m) Segment reporting
The Company's segmental reporting is in accordance with
Ind AS 108 Operating Segments. Operating segments are
reported in a manner consistent with the internal reporting
provided to the board of directors, which is responsible
for allocating resources and assessing performance of the
operating segments, and has been identified as the chief
operating decision maker.
(n) Earnings per share
Basic earnings per share CEPS’) is computed by dividing the
net profit or loss (excluding OCI) for the year attributable
to equity shareholders by the weighted average number
of shares outstanding during the year.
Diluted earnings per share are calculated by dividing
the net profit or loss for the year attributable to equity
shareholders as adjusted for dividend, interest and other
charges to expense or income relating to the dilutive
potential equity shares, by the weighted average number
of shares outstanding during the period as adjusted for
the effects of all dilutive potential equity shares. Potential
equity shares are deemed to be dilutive only if their
conversion to equity shares would decrease the net profit
per share from continuing ordinary operations. Potential
dilutive equity shares are deemed to be converted as
at the beginning of the period, unless they have been
issued at a later date. Dilutive potential equity shares are
determined independently for each period presented.
(o) Cash and cash equivalents
In the cash flow statement, cash and cash equivalents
include cash in hand, demand deposits with banks,
other short term highly liquid investments with original
maturities of three months or less, that are readily
convertible to known amounts of cash and which are
subject to an insignificant risk of changes in value. The
cash flow statement has been prepared under the"Indirect
Method" as set out in Indian Accounting Standard 7 (Ind
AS-7) on "Statements of Cash Flows" as specified under
Section 133 of the Companies Act, 2013.
(p) Government grant
Government grants are recognised where there is
reasonable assurance that the grant will be received,
and all attached conditions will be complied with. When
the grant relates to an expense item, it is recognised as
income on a systematic basis over the periods that the
related costs, for which it is intended to compensate,
are expensed. When the grant relates to an asset, it is
recognised as deferred income in the balance sheet and is
recognised in profit or loss on a systematic basis over the
expected useful life of the related asset or by deducting
the grant in arriving at the carrying amount of the asset.
(q) Financial instruments
Financial assets and financial liabilities are recognized
when the company becomes a party to the contractual
provisions of the instruments.
Financial assets and financial liabilities are initially
measured at fair value. Transaction costs that are directly
attributable to the acquisition or issue of financial assets
and financial liabilities (other than financial assets and
financial liabilities at fair value through profit or loss) are
added to or deducted from the fair value of the financial
assets or financial liabilities, as appropriate, on initial
recognition. Transaction costs directly attributable to the
acquisition of financial assets or financial liabilities at fair
value through profit or loss are recognized immediately in
profit or loss.
Financial assets
Initial recognition and measurement
All financial assets are recognized initially at fair value and
transaction cost that is attributable to the acquisition of
the financial asset is also adjusted.
Subsequent measurement
For the purpose of Subsequent measurement, the
Company classifies financial assets in following categories:
(i) Financial assets at amortized cost
(ii) Financial assets at fair value through other
comprehensive income (FVTOCI)
(iii) Financial assets at fair value through profit or
loss (FVTPL)
Financial assets are measured at amortized cost if both of
the following conditions are met:
(i) The asset is held within a business model whose
objective is to hold assets for collecting contractual cash
flows, and
(ii) Contractual terms of the asset give rise on specified
dates to cash flows that are solely payments of principal
and interest (SPPI) on the principal amount outstanding.
Financial assets are measured at fair value through other
comprehensive income if both of the following conditions
are met:
(i) The asset is held within a business model whose
objective is achieved by both collecting contractual cash
flows and selling financial assets; and
(ii) Contractual terms of the asset give rise on specified
dates to cash flows that are solely payments of principal
and interest (SPPI) on the principal amount outstanding.
All financial assets not classified as measured at amortized
cost or FVTOCI as described above are measured at FVTPL.
Financial assets are subsequently measured at amortized
cost using the effective interest rate (EIR) method.
Financial assets are subsequently measured at FVTOCI
with gains and losses arising from changes in fair value
recognized in other comprehensive income.
Financial assets are subsequently measured at FVTPL
with gains and losses arising from changes in fair value
recognized in profit or loss.
All equity instruments in scope of Ind-AS 109 are
measured at fair value. Equity instruments which are
held for trading are classified as at fair value through
profit and loss (FVTPL). For all other equity instruments,
the Company decides to classify the same either as at fair
value through other comprehensive income (FVOCI) or
fair value through profit and loss (FVTPL).
De-recognition of financial assets
A financial asset is primarily de-recognized when the
rights to receive cash flows from the asset have expired
or the Company has transferred its rights to receive cash
flows from the asset.
Financial liabilities
Initial recognition and measurement
All financial liabilities are recognized initially at fair value
and transaction cost that is attributable to the acquisition
of the financial liabilities is also adjusted. These liabilities
are classified at amortized cost.
Subsequent to initial recognition, these liabilities are
measured at amortized cost using the effective interest
method. This category generally applies to long-term
payables and deposits.
De-recognition of financial liabilities
A financial liabilities is de-recognized when the obligation
under the liability is discharged or cancelled or expires.
When an existing financial liability is replaced by another
from the same lender on substantially different terms, or
the terms of an existing liability are substantially modified,
such an exchange or modification is treated as the de¬
recognition of the original liability and the recognition of
a new liability. The difference in the respective carrying
amounts is recognized in the statement of profit and loss.
Offsetting of financial instruments
Financial assets and financial liabilities are offset and the
net amount is reported in the balance sheet if there is a
currently enforceable legal right to offset the recognized
amounts and there is an intention to settle on a net basis, to
realise the assets and settle the liabilities simultaneously.
(r) Impairment of financial instruments
In accordance with Ind-AS 109, the Company applies
Expected Credit Loss (ECL) model for measurement and
recognition of impairment loss for financial assets.
ECL is the difference between all contractual cash flows
that are due to the Company in accordance with the
contract and all the cash flows that the Company expects
to receive. When estimating the cash flows, the Company
is required to consider:
- All contractual terms of the financial assets (including
prepayment and extension) over the expected life of
the assets.
- Cash flows from the sale of collateral held or other credit
enhancements that are integral to the contractual terms
Trade receivables
As a practical expedient the Company has adopted
'simplified approach' using the provision matrix method
for recognition of expected loss on trade receivables.
The provision matrix is based on historical default rate
observed over the expected life of the trade receivable
and is adjusted for forward-looking estimates. At every
reporting date, the historical default rates are updated and
changes in the forward-looking estimates are analysed.
Further receivables are segmented for this analysis where
the credit risk characteristics of the receivables are similar.
Other financial assets
For recognition of impairment loss on other financial
assets and risk exposure, the Company determines
whether there has been a significant increase in the credit
risk since initial recognition and if credit risk has increased
significantly, impairment loss is provided.
(s) Functional and presentation currency
These financial statements are presented in Indian Rupees,
the functional currency of the Company. All amounts have
been rounded to the nearest million, upto two decimal
places, unless otherwise stated.
(t) Operating cycle
Based on the nature of products / activities of the
Company and the normal time between acquisition of
assets and their realization in cash or cash equivalents,
the Company has determined its operating cycle as 12
months for the purpose of classification of its assets and
liabilities as current and non-current.
(e) Rights, preferences and estrictions attached to issued equity shares:
The Company has one class of equity shares having par value of Cl/- per share. Each holder of Equity shares is entitled to one
vote per share. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the Company
after distribution of all preferential amounts, in proportion to their shareholding.
(f) The Company vide resolution passed in the extra-ordinary general meeting held on 27 May 2024 has re-organised its
authorised share capital by cancellation of 8,421,403 unissued preference shares of C100 each and increase authorised equity
share capital by 84,214,030 equity shares of C10 each. Accordingly, the authorised equity share capital of the Company is
modified to 125,000,000 equity shares of C10 each.
(g) Pursuant to the provisions of sections 13, 61 and 64 of the Companies Act, 2013, the board of directors in its meeting held
on 27 November 2024 and the shareholders in their meeting held on 28 November 2024 has approved the sub-division of its
24,574,643 fully paid equity shares having face value of C10 each to 245,746,430 fully paid equity shares having face value of
C1 each. Accordingly, the authorised equity share capital of the Company is also modified to 1,250,000,000 equity shares of
C1 each.
(h) Pursuant to a resolution passed by the board of directors dated 28 November 2024 and a special resolution passed by the
shareholders' dated 20 December 2024, the Company alloted bonus shares to the shareholders (excluding shareholders who
waived its right to bonus shares as per the articles of association) as per the record date 19 December 2024 in the ratio of 1
equity share of Cfor every 4 equity shares of C1 each i.e. 34,348,715 of total bonus shares.
(i) Pursuant to the Employee Stock Option Plan 2023 of the Company ('ESOP'), 401,455 equity shares (31 March 2025: 383,900)
of C1 each has been alloted to the eligible employees at an exercise price of C1 per share and having fair value of C19.37 and
C74.26 (31 March 2025: C19.31) per share for 357,430 and 44,025 number of shares respectively (refer note 47). The shares
exercised during the year is pending for allotment as at 31 March 2026.
(j) The Company has completed the initial public offer of ('IPO') 36,315,789 equity shares of face value of C1 each at the issue
price of C228 per equity share as fresh issue (26,315,789 equity shares) and offer for sale (10,000,000 equity shares). The equity
shares of the Company are listed on BSE Limited and National Stock Exchange Limited on 20 November 2025.
Nature and purpose of each reserve within other equity are as follows:
1. Securities Premium - Securities premium is created on conversion of CCPS into equity shares at a premium.
2. Retained Earnings - Retained earnings represent the profits earned by the Company over the years including
current period.
3. Share based payment reserve - Represent the charge for the current year on employees stock option granted to eligible
employees of the Company.
4. Other comprehensive income / (loss) - Represent actuarial gains/(losses) due to experience adjustments on post
employment benefit plans i.e., Gratuity.
5. Share application money pending allotment - Represent money received on exercise of options under ESOP scheme by
employees, however, allotment is pending as at year end.
37. Segment information
The Company is engaged in the production and sale of solar related products, hence, the disclosure under Ind AS 108 on Operating
segments are not required as the Company deals in one primary segment.
However, as the Company sell products outside India, the secondary segment for the Company is based on the location of its
customers. Information on the geographic segment is as follows:
38. Employee benefits
(A) Defined benefit plans:
Gratuity:
The Company's gratuity scheme provide for lump sum payment to vested employees at retirement, death while in
employment or on termination of employment of an amount equivalent to 15 days wages for each completed year of service
or part thereof in excess of six months in terms of Labour Codes. Vesting occurs upon completion of five years of service.
The present value of defined benefit obligation and the related current service cost were measured using the projected unit
credit method with actuarial valuations being carried out at each balance sheet date. The gratuity scheme of the Company is
unfunded.
Risk exposure:
Through its defined benefit plans, the Company is exposed to a number of risks, the most significant of which are
detailed below:
Interest risk: The plan exposes the Company to the risk of fall in interest rates. A fall in interest rates will result in an increase
in the ultimate cost of providing the above benefit and will thus result in an increase in the value of the liability (as shown in
financial statements).
Liquidity risk: This is the risk that the Company is not able to meet the short-term gratuity payouts. This may arise due to non
availability of enough cash / cash equivalent to meet the liabilities or holding of illiquid assets not being sold in time.
Salary escalation risk: The present value of the defined benefit plan is calculated with the assumption of salary increase rate
of plan participants in future. Deviation in the rate of increase of salary in future for plan participants from the rate of increase
in salary used to determine the present value of obligation will have a bearing on the plan's liability.
Demographic risk: The Company has used certain mortality and attrition assumptions in valuation of the liability. The
Company is exposed to the risk of actual experience turning out to be worse compared to the assumption.
(vi) On November 21,2025, the Government of India has implemented four new Labour Codes (the " Labour Codes"), including
the Code on Wages, 2019, which amended the definition of "wages". Based on the best information available, the Company
carried out the actuarial valuation of gratuity and recorded a provision of ?5.8 million primarily as employee benefit expense
arising from the change in wages definition. The Company continues to monitor the finalization of the Central and State
Rules, as well as any further clarifications issued by the Government on other aspects of the Labour Codes and will record
appropriate accounting impact as and when such developments occur.
(B) Defined contribution plans:
The Company makes Provident Fund and Employee State Insurance Scheme contributions which are defined contribution
plans, for qualifying employees. Under the Schemes, the Company is required to contribute a specified percentage of the
payroll costs to fund the benefits. The Company recognised for 27.95 for Provident Fund contribution (31 March 2025: 7.53)
and 12.41 for Employee State Insurance Scheme (31 March 2025: 7.79) contribution in the Statement of Profit and Loss as
mentioned in note 28.
Methods and assumptions used to estimate the fair values:
1. The carrying value of cash and cash equivalents, trade receivables, trade payables, short term borrowings, other current
financial assets and liabilities represents approximately their fair value mainly due to the short-term maturities of these
instruments.
2. Security deposits received against lease liability, lease liability and long term borrowings are fair valued at initial recognition.
Valuation technique used and key inputs thereto for these level 2 financial liabilities are determined using discounted cash
flow method using appropriate discounting rates. After initial recognition, they are carried at amortized cost.
3. There has been no change in the valuation methodology for level 3 inputs during the year. There were no transfers between
level 1 and level 2 during the year and no transfer into and out of level 3 fair value measurements.
40. Financial risk management objectives
The Company's principal financial liabilities, comprises of borrowings, trade and other payables. The main purpose of these financial
liabilities is to finance the Company's operations. The Company's principal financial assets include trade and other receivables, and
cash and bank balances that derive directly from its operations.
The Company's activities expose it to market risk, liquidity risk and credit risk. The Company's overall risk management focuses
on the unpredictability of financial markets and seeks to minimise potential adverse effects on the financial performance of the
Company.
(I) Market risk:
Market risk is the risk of loss of future earnings, fair values or future cash flows that may result from a change in the price of a
financial instrument. The value of a financial instrument may change as a result of changes in the interest rates, that affect market
risk sensitive instruments. Market risk is attributable to all market risk sensitive financial instruments including borrowings.
(A) Foreign currency risk
Foreign currency risk is the risk of impact related to fair value or future cash flows of an exposure in foreign currency, which
fluctuate due to changes in foreign exchange rates. The Company's exposure to the risk of changes in foreign exchange rates
relates primarily to the trade receivables and trade payables.
(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's exposure to the risk of changes in market interest rates relates primarily to the Company's
borrowing with floating interest rates. For all long-term and short-term borrowings with floating rates, the risk of variation in
the interest rates is mitigated through liasoning and negotiation with the lenders. The Company constantly monitors the credit
markets and rebalances its financing strategies to achieve an optimal maturity profile and financing cost.
Interest rate sensitivity:
The sensitivity analysis below have been determined based on exposure to interest rates for borrowings at the end of the reporting
period and the stipulated change taking place at the beginning of the financial year and held constant throughout the reporting
period in case of borrowings that have floating rates.
If the interest rates had been 50 basis points higher or lower and all the other variables were held constant, the effect on interest
expense for the respective financial years and consequent effect on Company's profit in that financial year would have been
as below:
(II) Credit risk management:
Credit risk arises when a customer or counterparty does 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 from
its financing / investing activities, including deposits with banks, foreign exchange transactions and financial guarantees. The
Company has no significant concentration of credit risk with any counterparty.
Trade receivables
Trade receivables are consisting of a large number of customers. The Company has credit evaluation policy for each customer and
based on the evaluation credit limit of each customer is defined.
As per simplified approach, the Company makes provision of expected credit losses on trade receivables using a provision matrix
to mitigate the risk of default payments and makes appropriate provision at each reporting date wherever outstanding is for
longer period and involves higher risk.
As per policy, receivables are classified into different buckets based on the overdue period ranging from 6 months - one year to
more than two years.
Cash and cash equivalent and deposits with banks
Credit risk on cash and cash equivalents and deposit with banks is generally low.
(III) Liquidity risk management
Liquidity risk is defined as the risk that the Company will not be able to settle or meet its obligations on time or at reasonable price.
Prudent liquidity risk management implies maintaining sufficient cash and marketable securities and the availability of funding
through an adequate amount of credit facilities to meet obligations when due. The Company's treasury team is responsible for
liquidity, funding as well as settlement management. In addition, processes and policies related to such risks are overseen by
senior management. Management monitors the Company's liquidity position through rolling forecasts on the basis of expected
cash flows.
The table below provides details regarding the remaining contractual maturities of financial liabilities and investments held for
managing the risk at the reporting date based on contractual undiscounted payments.
41. Capital management
The Capital management objective of the Company is to (a) maximise shareholder value and provide benefits to other stakeholders
and (b) maintain an optimal capital structure to reduce the cost of capital.
For the purposes of the Company's capital management, capital/equity includes issued equity share capital, share premium and
all other equity.
The Company monitors capital using debt-equity ratio, which is total debt less liquid investments and bank deposits divided by
total equity.
46. Additional disclosures as per schedule III
(i) All the title deeds of Immovable property are in the name of the company and mortgage against secured loan borrowed from
the banks.
(ii) The Company has not revalued its property, Plant and Equipment or intangible assets or both during the year ended 31
March 2026 and 31 March 2025.
(iii) The Company has not given loans or advances to specified persons during the year ended 31 March 2026 and 31 March 2025.
(iv) Benami property : There are no proceedings being initiated or are pending against the Company for holding any benami
property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and rules made thereunder.
(v) The Companyhad borrowed secured loan from bankagainst current assets duringtheyear ended 31March 2026and 31 March 2025.
(i) Quarterly returns or statements of current assets filed by the company with banks or financial institutions are in agreement
with the books of accounts.
(vi) Wilful defaulter : The Company has not been declared as wilful defaulter by any bank or financial institution or other lender.
(vii) The Company does not have any transactions or relationship with struck off companies.
(viii) The Company does not have any subsidiary, hence, the provision of clause (87) of section 2 of the Act read with Companies
(Restriction on number of Layers ) Rules, 2017 is not applicable on the Company.
(ix) There are no scheme of arrangements during the year ended 31 March 2026 and 31 March 2025.
(x) Utilisation of Borrowings availed from banks and financial institution. The borrowings obtained by the company from banks
and financial institution have been applied for the purpose for which such loans were taken and funds raised on short term
basis have not been utilised for long term purposes.
(xi) The Company does not have any undisclosed income during the year ended 31 March 2026 and 31 March 2025.
(xii) The Company does not have any crypto currency or virtual currency during the year ended 31 March 2026 and 31 March 2025.
(xiii) Utilisation of borrowed funds and share premium -The Company has not advanced or loan or invested funds to any other
person(s) or entity(ies), including foreign entities (Intermediaries) with the understanding that the Intermediary shall:
48. Government Grants:
(a) U.P. Electronics Manufacturing Policy
Pursuant to the U.P. Electronics Manufacturing Policy - 2017 and U.P. Electronics Manufacturing Policy - 2020 (as amended) ("the
Policies"), the Company, based on eligible capital investment made in the State of Uttar Pradesh, is entitled to a capital subsidy
at the rate of 15% of fixed capital investment (excluding land), subject to a maximum limit approved by nodal agency under the
policies. The subsidy is disbursed upon fulfilment of prescribed conditions and approval by the nodal agency, U.P. Electronics
Corporation Limited. Accordingly, the Company has claimed the following subsidies in the above policies and has accounted for
the receipt as deferred income under note 18 and amortised on straight line basis over the useful life of plant and machinery:
Further, pursuant to U.P. Electronics Manufacturing Policy - 2017, the Company based on capital investment in the state of Uttar
Pradesh upto 31 March 2022 was also entitled for interest subsidy of 5% per annum for a period of 7 years from FY 2021-2022 on the
rate of interest paid on the loans obtained from Scheduled Banks/Financial Institutions shall be reimbursed subject to a maximum
of ?10 Million per annum per unit and other terms and conditions for approval of grant specified in the policy. Accordingly, during
the year ended 31 March 2025, the interest subsidy has been recognised as other income under note 24 for an amount of ?10
million during the year ended 31 March 2026 (31 March 2025: C28.18 million) in accordance with the computation method stated
in the policy.
(b)Modified Special Incentive Package Scheme (MSIPS)
Pursuant to the Modified Special Incentive Package Scheme (MSIPS) introduced by the Ministry of Electronics and Information
Technology, the Company is eligible for capital subsidy at the rate of 25% of eligible capital expenditure under the scheme.
Accordingly, during the year the Company has recieved the following subsidy under the scheme for the investment made and
for the receipt as deferred income under note 17 and amortised on straight line basis over the useful life of plant and machinery:
49. On 06 May 2026, a major fire broke out at one of the Company's production facility located in Bawal, District Rewari, Haryana.
The incident resulted in damage to building structures, machinery, and inventory with an estimated carrying value of
?1,576.30 million. The Company has comprehensive insurance coverage and is currently in the process of assessing the full
extent of damage with insurer. The event does not impact the Company's ability to continue as a going concern. Management
has implemented a contingency plan to maintain supply chain stability. Production requirements will be met through third-
party procurement until the facility is restored. This incidence has been considered a non-adjusting event occurring after the
reporting period in accordance with IND AS 10- 'Event after the reporting period' and, accordingly, no adjustment has been
made in this regard to the accompanying financial statements.
50. On 24 March 2026, inspection and search was conducted by Bureau of Indian Standards ('BIS') at one of the Company's
production facility located in Ecotech Extension-1, Greater Noida, Uttar Pradesh. Upon conclusion of the inspection, BIS has
seized certain products worth C24.50 million allegeing that the Company is not in compliance with BIS standards. Further,
another inspection was carried out at the facility located in Bawal, District Rewari, Haryana on 28 April 2026 wherein goods
worth ?19 million has been seized by BIS on the above grounds. The Company has sought legal advice in this regard and basis
the legal advice as well as on management assessment, the Company believes it has adhere to all the requirements of BIS Act,
2016 and that all the seized goods meet the standard requirements.
51. On 25 April 2026, the Board of Directors have approved the incremental acquition of 31% equity stake each in Zayo Energy
Private Limited and Zayo Cables Private Limited and accordingly, acquired incremental 3,100 equity shares in each of the
above companies at face value of ?10 per share. Consequently, post this acquisition both these companies have become
Associate to the Company.
52. The financial statements is approved by the Board of Directors in its meeting held on 14 May 2026.
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