N. DISCLOSURE OF CONTINGENT LIABILITIES

Contingent liability are disclosed by way of notes on

balance sheet.

(a) Provisions

A provision is recognized when the Company has a
present obligation as a result of past event, if it is
probable that an outflow of resources embodying
economic benefits will be required to settle the
obligation and a reliable estimate can be made of
the amount of obligation.

(b) Contingent Liability

Contingent Liabilities are disclosed when there is
a possible obligation arising from past events, the
existence of which will be confirmed only on 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.

(c) Contingent Assets

Contingent Assets are neither recognized nor
disclosed in the financial statements.

O. SEGMENT REPORTING

The Company is engaged in manufacturing of a wide

range of Solar Panels which includes Solar Module,

Solar PCU, Solar Battery. Considering the nature of
Business and Financial Reporting of the Company,
the Company is operating in only one segment.

Hence Segment reporting is not applicable.

P. CASH AND CASH EQUIVALENTS

Cash & cash equivalents comprise cash on hand and
demand deposit with banks and corporations. The
company considers all highly liquid investments with
a remaining maturity at the date of purchase of three
months or less and that are readily convertible to
known amount of cash to be cash equivalents.

Q. STATEMENT OF CASH FLOW

Cash flows are reported using the indirect method,
whereby profit/loss before tax is adjusted for the
effects of transactions of non cash nature and any
deferrals or accruals of past or future cash receipts
or payments. Cash flow for the year are classified by
operating, investing and financing activities of the
Company are segregated.

R. IPO EXPENSES / SHARE ISSUE EXPENSES

Expenses relates to IPO expenses and issue of shares
under the companies act, 2013 have been expensed
out of reserve & surplus (Security premium of shares)
of the Company.

S. MISCELLANEOUS EXPENDITURE

(a) Preliminary expenses will be amortized over a
period of 5 years to the project.

(b) Pre-operative expenditure incurred during the
construction period will be capitalizes under the
respective assets head as the part of indirect
construction cost to the extent the indirect
expenses related to the assets. Other indirect
expenditure incurred during the construction
period , which is not directly related to
construction activity are capitalised in the assets.

(c) Deferred revenue expenditure, for which payment
has been made on liability has been raised but
benefit will arise for subsequent period or period
shall be changed in profit & loss accrued in equal
amount upto five years. The deferred revenue
expenses which are incurred on annual basis are
written off in 12 months.

1. Security of secured term loan of Bank (SBI) and Short
term borrowing Bank (SBI)

Primary: (a) First charge by way of Hypothecation on
all current & fixed assets including book debts of the
Company both present and future.

b) First Charge on all other movable and immovable
fixed assets, plant & Machinery etc. (present and
future) of the Company.

Collateral: (a) Equitable mortgage of factory Land
and Building situated at Khasra No. 766/2, Village
Bagwara, Tehsil-Amer Dist. -Jaipur in the name of
Sh. Manish Gupta and Sh. Vikas Jain Director of the
Company admeasuring 5645.89 sq. mtrs.

Personal Guarantees of Directors:

1. Sh. Vikas Jain s/o Sh. Mahendra Kumar Jain
(Director)

2. Sh. Manish Gupta s/o late Sh. Subhash Chandra
Gupta (Director)

2. Loan details are as under : (a) Term Loan III of SBI is
repayable in 60 monthly installment commencing
from Dec. 2021 (Instalment 1 to 60 of Rs. 1.42 Lakhs).

(b) Term Loan IV of SBI is repayable in 66 monthly
installment commencing from Dec. 2021 (Instalment
1 to 65 of Rs. 1.53 Lakhs and last i.e. 66th instalment
of Rs. 1.54 Lakhs).

3. Details for Car Loans given under : (a) Bank of Baroda
Car Loan is secured by first charge on Car and
secured by personal Guarantee of Manish Gupta,
Vikas Jain, Directors of the Company.

(b) Bank of Baroda Car Loan (Volvo XC 60) is secured
by Hypothecation of Car of Rs. 50,00,000/- repayable
in 59 equal monthly instalments of Rs. 99834/-
(principal plus interest) and 1 instalment of Rs.
111494/- starts from April 2021.

Company has taken External Commercial Borrowings
from Energy Access Relief Fund B.V., A company
incorparated at Netherlands having registered office at
Amsterdam. Loan taken on Personal Guarantees of
following Directors :

1. Sh. Vikas Jain s/o Sh. Mahendra Kumar Jain
(Director)

2. Sh. Manish Gupta s/o late Sh. Subhash Chandra
Gu p ta (Di rect or )

General Description of the Plan

(a) Defined contribution plan The Company makes provident fund contributions to defined contribution plans for
qualifying employees. Under the plan, the Company is required to contribute a specified percentage of the payroll
costs to fund the benefits. The contributions payable under these plans by the Company are at rates specified in the
rules of the schemes. The contributions are charged to the statement of profit and loss as they accrue. The amount
as an expense towards contribution to provident fund and employees state insurance for the period aggregated to
Rs. 13.10 lakhs (Previous Year: Rs. 22.96 lakhs)

(b) Defined benefit plan
Gratuity

The Company operates post-employment unfunded defined benefit plan that provides gratuity. The scheme
provides for lumpsum payment to eligible employees on retirement, death while in employment or on termination of
employment, of an amount equivalent to 15 days salary payable for each completed year of service or part thereof in
excess of six months subject to a limit of Rs. 20 lakhs. The amounts in excess of the limit are to be borne by the
Company as per policy. Eligibility occurs upon completion of five years of service.

The present value of the defined benefit obligation and current service cost are measured using the projected unit
credit method with actuarial valuations being carried out at each balance sheet date.

Note:

i. Earning available for Debt Service = Net Profit before taxes Non-cash operating expenses Interest other
exceptional item-T ax Expenses

ii. Debt service = Interest & Lease Payments Principal Repayments

iii. Capital Employed = T angible Net Worth T otal Debt Deferred T ax Liability

iv. Total Investment = Share capital Reserve and surplus - Mis. Expenses

Reasons for Variances

1. Current Ratio:- Reasons for variation in excess of 25% - Due to increase in current assets

2. Debt Equity Ratio :- Reasons for variation in excess of 25% - Due to issue of shares - Equity increased

3. Debt Services Coverage Ratio:- Reasons for variation in excess of 25% - Due to increase in repayments in
term loan/ECB

4. Return on Equity- Reasons for variation in excess of 25% - Due to issue of shares

5. Inventory Turnover Ratio :- Reasons for variation in excess of 25% - Due to decrease in turnover and
increase in trade receivable

6. Trade Receivable Ratio:- Reasons for variation in excess of 25% - Due to decrease in turnover

7. Trade Payable Ratio:- Reasons for variation in excess of 25% - Due to decrease in purchase and increase in
trade payable

8. Net Capital Turnover Ratio:- Reasons for variation in excess of 25% - Due to issue of shares

9. Net Profit Ratio:- Reasons for variation in excess of 25% - Due to increase in profit

10. Return on Capital Employed Ratio:- Reasons for variation in excess of 25% - Due to issue of shares

11. Return on Investment :- Reasons for variation in excess of 25% - Due to issue of shares

44. OTHER STATUTORY DISCLOSURES AS PER THE COMPANIES ACT, 2013

1. In the opinion of Management current assets, loans & advance are stated approximately of the value if realized
in ordinary course of business unless other wise stated. The provision of liabilities are adequate and not
excess of the amount reasonable necessary.

2. Figures for Previous year has been regrouped/ rearranged where are necessary.

3. Amounts in the standalone financial statements are rounded off to Rupees in lakhs. Figures in brackets
indicate negative values.

4. Company is contingent liable

(i) In respect of demand/ penalty if any in respect of Pending GST/Income Tax/ Other Taxes ,if any. The same
will be accounted for in the year of actual arise demand/payment.

(ii) Estimated amount of Contracts remaining to be execute on capital account net of advances Rs. 81.35 crore
(Previous Year of Rs. Nil)

(iii) In respect of corporate guarantee given to the bank of Rs. 99.68 crore (Previous Year Rs. 75.67 crore) for
loans granted to Insolation Green Energy Private Limited.

(iv) In respect of counter guarantee given to bank of Rs. 10.50 crore (Previous Year Rs. 0.51 crore) for gurantee
by the bank on behalf of company.

(v) The company is liable for Export obligation to be fullfill under machine imports under EPCG license amount
Nil (Previous Year 104.65 Lakh)

5. There is no immovable property of the company whose title deeds are not held in the name of the company

6. The disclosure of the Loans and Advances in the nature of the loans granted to promoters, directors, KMPs and
the related parties (as defined in Companies Act, 2013) either severally or jointly with any other persons that
are (a) Repayable on demand or (b) Without specifying any terms or period of repayments.

7. Benami Property

No proceedings have been initiated or pending against the company for holding any benami property under the
Benami Transections (Prohibition) Act, 1988 (45 of 1988) and the rules thereunder

8. Returns and filing to Banks and financial institutions

The company has availed borrowings from banks and financial institutions on the basis of the security of its
current assets. The quarterly returns and statements filed with them are in agreements with the books of
accounts

9. Wilful Defaulters

The company is not declared as wilful defaulter by any bank or financial institutions or other lender

10. Relationship with struck of companies

The company has not entered into any transaction with companies struck off under section 248 of the
Companies Act, 2013 or section 560 of the Companies Act, 1956.

11. Registration or satisfaction of charges with Registrar of Companies

There are no loans taken by the company on the security of the assets of the company and registration of the
charges has not been done with Registrar of Companies beyond the statutory period allowed for registration.
12 Trade payables, Trade receivables, Unsecured Loans, Sundry Advances, loans and advances, security deposits
are subject to confirmation.

13. The Company is in compliance with the number of layers prescribed under clause (87) of section 2 of the
Companies Act read with the Companies (Restriction on number of Layers) Rules, 2017.

14. The Company have not 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

15. As at March 31, 2025 there is untilised amounts in FD with Au bank Rs 250.00 Crores and SBI of Rs 60.00
Crores in respect of any issue of securities and long term borrowings from banks and financial institutions.

The borrowed funds have been utilised for the specific purpose for which the funds were raised.

16. The cost of raw material consumed includes cost of raw material sales.

17. The Company has neither traded nor invested in crypto currency or virtual currency during the year.

18. Utilisation of Borrowed Funds and Share Premium

The company has not advanced or loan or invested funds to any other persons or entities with the
understanding that, that person/entity should invest in any other person or entity identified in any manner
whatsoever by or on behalf of the company or provided any guarantee, security, or like to or on behalf of the
company.

The company has not received any amount from any other persons/entity with the understanding, whether
written or oral, that the company shall directly or indirectly invest in any other person or entity.

19. Returns and filing to Banks and financial instituations

Tha company has availed borrowings from banks and financial instituations on the basis of the security of its
current assets. The returns and statements filed with them are in agreements with the books of accounts.

As per our report of even date

For BADAYA & CO For and on behalf of the Board of

Chartered Accountants INSOLATION ENERGY LIMITED

Firm's Registration No. 006395C

Rohit Badaya Nitesh Sharma Ravi Dusad Manish Gupta Vikas Jain

Partner Company Secretary Chief Financial Officer Whole time Director Managing Director

Membership No. 078599 KZSPS0655G AGYPD5446K 02917023 00812760

UDIN: 25078599BMGIKU9688
Place: Jaipur
Date: 26 May 2025