Insolation Energy Ltd ಖಾತೆಯ ಉಪಯುಕ್ತ ಮಾಹಿತಿ

(ii) Terms/ Rights attached to equity shares

a. The Company has only one class of shares referred to as equity shares having a par value of Rs.1/-.
Each Holder of equity shares is entitled to one vote per share and Dividend as and when declared by
the Company.

b. In the event of liquidation of the company, the holders of equity shares will be entitled to receive
any of the remaining assets of the company, after distribution of all preferential amounts.

c. The Company has not issued any shares for consideration other than cash.

d. The Company has not made bought back any shares from the date of incorporation.

e. During the Financial year 2024-25 on 11/12/2024 company has raised money of Rs. 39519.60 lakhs by
issuing through Preferential Share issue of12,02,300 shares of Rs. 10 each on a premium of Rs. 3277
per share (Rs. 3287 Including premium) total amounting of Rs. 39,51,960,100 through preferential
share issue.

f. During the Financial year 2024-25 on 11/12/2024 company has raised money of Rs. 39519.60 lakhs by
issuing through Preferential Share issue of 12,02,300 shares of Rs. 10 each on a premium of Rs. 3277
per share (Rs. 3287 Including premium) total amounting of Rs. 39,51,960,100 through preferential
share issue.

g. During the year 2022-23 the Company has issued shares through IPO(Initial Public Offering) of Rs.

5.83.20.000 (Rupees Five crore Eighty three lakhs Twenty thousand only) each share of Rs. 10 i.e.

58.32.000 shares.

h. During the year 2021-22 the Company has issued bonus shares of Rs. 12,50,00,000 (Rupees Twelve
crore fifty lakhs only) each share of Rs. 10 i.e. 1,25,00,000 equity shares for consideration other than
cash

i. During the Financial Year 2025-26 on 14/11/2026 company has issued Employee stock option plan
for Rs 1.96 lakhs [51,625 shares of Rs. 1 each on a premium of Rs 2.80 per share (Rs. 3.80 including
premium) total amounting of Rs. 1,96,175 through ESOP issue.]

Nature and purpose of reserves:

(i) Securities premium

The amount received in excess of face value of equity shares is recognised in share premium. This
reserve is utilised in accordance with the specific provisions of the Companies Act 2013.

(ii) Share based payment reserve

The company offers Employee share option plan (ESOP), under which options to subscribe for the
company''s share have been granted to certain employees and senior management. The share based
payment reserve is used to recognise the value of equity settled share based payments provided as
part of the ESOP scheme.

(iii) Retained earnings

Retained earnings represents surplus/accumulated earnings of the Company and are available for
distribution to shareholders.

* Security and Guarantee against loan taken from HDFC Bank
Primary Security

1. Exclusive charge on plant and machinery financed out of the term loan for the project.

2. Service Reserve Account (DSRA) in the form of fixed deposits equivalent to one quarter of debt
servicing obligations (including principal and interest), to be shared among the proposed term
lenders.

Collateral Security

1. Subservient charge on present and future movable fixed assets of the Company.

2. Subservient charge on immovable fixed assets mortgaged with State Bank of India situated at
Khasra No. 766/2, Village Bagwara, Tehsil Amer, District Jaipur -303805, measuring 60,771.85 sq. ft.

Personal Guarantees of Directors and Third Party Guarantees:

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

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

Corporate Guarantee :

1. Insolation Green Energy Private Limited

* Security and Guarantee against loan taken from AU Small Finance Bank
Primary Security

1. The term loan is secured by a first and exclusive charge by way of hypothecation over the plant and
machinery acquired/financed out of the said facility.

Personal Guarantees of Directors and Third Party Guarantees:

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

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

Corporate Guarantee :

1. The facility is also backed by a corporate guarantee provided by Insolation Green Energy Private
Limited, having its registered office at C-02, New Aatish Market Extension, Jaipur, Rajasthan -
302029.

* Security against Secured loan taken from Bank (SBI)

Primary Security

1. First charge by way of Hypothecation on all current & fixed assets including book debts of the
Company both present and future.

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

Collateral Security

1. 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 and Third Party Guarantees:

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

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

*Car Loan Details

1. 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.

2. 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. 1,11,494/- starts from April 2021.

*External Commercial Borrowings Details

"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 Gupta (Director)"

Note No. 34:- Earning Per Share

Basic EPS amounts are calculated by dividing the profit for the year attributable to equity holders by
the weighted average number of equity shares outstanding during the year.

Diluted EPS amounts are calculated by dividing the profit attributable to equity holders by the
weighted average number of Equity shares outstanding during the year plus the weighted average
number of equity shares that would be issued on conversion of all the dilutive potential equity shares
into equity shares.

Note No. 37:- Disclosure as per Ind AS-116 “Leases”

As part of transition, under Ind AS 116 ‘Leases’ during the Previous year, the Company had availed the
practical expedient of not to apply the recognition requirements of Ind AS 116 to short term leases and
also applied materiality threshold for recognition of assets and liabilities related to leases.

The Company’s leased assets primarily consists of lease for land. The Company recorded the lease
liability at the present value of the remaining lease payments discounted at the incremental
borrowing rate as on the date of transaction and has measured right-of-use asset at an amount equal
to lease liability.

Note No. 42:- Disclosure as per Ind AS 101 ‘First Time Adoption of Ind AS

Explanation of Transition to Ind AS and effect of Ind AS adoption
First-time adoption-mandatory exceptions, optional exemptions

(i) Overall Principle

These financial statements represent the Company’s first standalone financial statements prepared
in accordance with Indian Accounting Standards (Ind AS). Until 31 March 2025 , the Company
prepared its financial statements under previous Indian GAAP, including the accounting standards
notified under the Companies (Accounting Standards) Rules, 2006 (as amended).

The transition date to Ind AS is 1 April 2024, and the Company has prepared its Opening Balance Sheet
as per Ind AS on this date. The impact of the transition has been reflected in the Opening Reserves as
of 1 April 2024. To ensure compliance with Ind AS and Schedule III, the financial figures for the
previous period have been restated, regrouped, and reclassified, wherever necessary. In accordance
with Ind AS 101, the Company has:

- Recognized all assets and liabilities whose recognition is required under Ind AS.

- Not recognized items that are not permitted by Ind AS.

- Reclassified items from previous GAAP to Ind AS, wherever required.

- Applied Ind AS measurement principles for recognized assets and liabilities.

However, this principle is subject to certain exceptions and optional exemptions availed by the
Company, as detailed below.

(ii) Optional Exemptions and Mandatory Exemptions

Under Ind AS 101, the carrying amounts of assets and liabilities as per previous GAAP as on 31 March
2024 have generally been recognized and measured as per Ind AS standards effective on 31 March
2026. However, certain optional exemptions and mandatory exceptions from retrospective
application have been applied.

The Company has availed the following key exemptions and exceptions:

Ind AS optional exemptions

1. Investment in Subsidiary

The Company has elected to carry its investment in subsidiary at deemed cost which is its previous
GAAP carrying amount at the date of transition to Ind AS.

2. Deemed cost for property, plant and equipment and intangible assets:

Ind AS 101 permits a first-time adopter to elect to continue with the carrying value for all of its
property, plant and equipment and intangible assets as recognised in the financial statements as
at the date of transition to Ind AS, measured as per the previous GAAP and use that as its deemed
cost as at the date of transition after making necessary adjustments for de-commissioning
liabilities.The Company has elected to continue with the carrying value of all of its plant and
equipment and intangible assets as recognised as of April 01,2024 (transition date) measured as per
the previous GAAP and use that carrying value as its deemed cost as of the transition date.

3. Borrowings

Ind AS 101 permits that if it is impracticable for an entity to apply retrospectively the effective

interest method in Ind AS 109 ‘Financial Instruments’, the fair value of the financial liability at the
date of transition to Ind AS shall be the new amortised cost of that financial liability at the date of
transition to Ind AS.

4. Fair Value of Financials Liabilities

As per Ind AS 109, the Company is required to measure financial liabilities at fair value on initial
recognition, and account for the difference between fair value and transaction price as a gain/loss.
The Company has elected to apply the exemption provided in Ind AS 101 to apply these
requirements prospectively to transactions entered into after the date of transition.

5. Leases

Ind AS 116 requires an entity to assess whether an arrangement contains a lease at its inception.
However, Ind AS 101 provides an option to make this assessment on the basis of facts and
circumstances existing at the date of transition to Ind AS. The Company has elected to apply this
exemption for such contracts/ arrangements.

The company has also elected to apply the following exemptions:

1. Measure Right of Use Assets on date of transition at an amount equal to the lease liability,
adjusted by the amount of prepaid/accrued lease payments.

2. Apply a single discount rate to a portfolio of leases with reasonably similar characteristics.

3. Elect not to recognise lease liability for leases for which the lease term ends within 12 months of
the date of transition, and instead account for them as short term leases.

4. Exclude initial direct cost from the measurement of right of use assets as at date of transition.

Ind AS mandatory exceptions

6. Derecognition of financial assets and liabilities

The Company has applied the derecognition requirements of financial assets and financial
liabilities prospectively for transactions occurring on or after 1st April, 2024 (the transition date).

7. Estimates

An entity’s estimates in accordance with Ind AS at the date of transition to Ind AS shall be consistent
with estimates made for the same date in accordance with previous GAAP (after adjustments to
reflect any difference in accounting policies), unless there is objective evidence that those
estimates were in error. Ind AS estimates as at 1 April 2024 are consistent with the estimates as at the
same date made in conformity with previous GAAP. The Company made estimates for Impairment
of financial assets based on expected credit loss model in accordance with Ind AS at the date of
transition as these were not required/made under previous GAAP.

8. Classification and measurement of financial assets

The classification of financial assets to be measured at amortised cost or fair value through other
comprehensive income is made on the basis of facts and circumstances that existed on the date of
transition to Ind AS.

VIII. Notes to First time adoption

(a) Leases

Under Ind AS, Right-of-Use (ROU) Assets and Lease Liabilities amounting to ^ 560.36 lakhs have been
recognized as of 1st April 2024 for contracts previously classified as operating leases under previous
GAAP. Additionally, during 2024-25, an ROU asset of ^ 92.95 lakhs and a lease liability of ^ 92.95 lakhs
have been recorded for new lease contracts. As a result of the transition, expenses previously
classified under rent and legal expenses (initial direct cost) have been reduced by ^ 85.63 lakhs and
amount of Rs. 5.43 lakhs were reversed from the balance of CWIP as on 31.03.2025. However, finance
costs have increased by ^ 55.86 lakhs and depreciation has increased by ^ 68.70 lakhs during 2024-25,
reflecting the accounting treatment under Ind AS 116 - Leases.

(b) Defined Benefit Liabilities:

Both under Previous GAAP and Ind AS, the Company recognised costs related to its post¬
employment defined benefit plan on an actuarial basis. Under previous GAAP, the entire cost,
including actuarial gains and losses, are charged to Statement of Profit and Loss. Under Ind AS,
remeasurements (comprising of actuarial gains and losses excluding amounts included in net
interest on the net defined benefit liability) are recognised through Other Comprehensive Income
instead of Profit or Loss. Accordingly TI6.64 lakhs have been reclassified from Profit or Loss to OCI.

(c) Financial Instuments:

(i) Investment in Quoted Securities:-

In accordance with Ind AS 109 “Financial Instruments", investments in Quoted Equity Shares are
recognised at fair value through the statement of profit and loss at each reporting period. This has
resulted gain/(loss) amounting ^(18.23) lakhs recognized through other equity as at 1st April 2024 and
gain/(loss) amounting ^ 34.09 lakhs during FY 2024-25.

(ii) Security deposits(Leased Properties):-

Under Ind AS, security deposits have been reclassified and measured at their present value, with the
difference accounted for as prepaid rent. As of the transition date on 1st April 2024, the total security
deposit under Previous GAAP was ^ 1.05 lakhs. During the financial year 2025-26, an additional ^ 6.25
lakhs was recorded, bringing the closing balance to ^ 7.30 lakhs as of 31st March 2025.

As part of the transition, the security deposit was reclassified into various financial and non-financial
assets.

The discounting of non-current financial assets resulted in the recognition of prepaid rent, with ^ 0.19
lakhs recorded as non-current prepaid rent and ^0.09 lakhs as current prepaid rent. Subsequent new
security deposit led to an increase of ^ 5.45 lakhs in non-current prepaid rent and increase of ^ 0.22
Lakh in current prepaid rent. The present value of non-current financial security deposits was ^ 0.77
lakhs at transition, which increased to ^ 0.85 lakhs during the year.

Additionally, unwinding of the prepaid rent resulted in a charge of ^0.20 lakhs, and interest income
on the security deposit amounted to ^ 0.10 lakhs during 2024-25. The net impact in profit or loss was a
loss of ^0.10 lakhs.

These adjustments reflect the fair value measurement of security deposits under Ind AS, ensuring
compliance with the revised financial reporting framework.

(d) Deferred Tax

Previous GAAP required deferred tax accounting using the income statement approach, which
focuses on differences between taxable profits and accounting profits for the period. Ind AS 12
requires entities to account for deferred taxes using the balance sheet approach, which focuses on
temporary differences between the carrying amount of an asset or liability in the balance sheet and
its tax base. The application of Ind AS 12 approach has resulted in recognition of deferred tax on new
temporary differences which was not required under Previous GAAP. In addition, the various
transitional adjustments discussed above lead to temporary differences and reclassification of tax
expense from Profit or Loss to OCI. According to the accounting policies, the Company has to account
for such differences. Deferred Tax adjustments are recognised in correlation to the underlying
transaction either in retained earnings or profit and loss respectively.

(e) Prior Period Items

(i) Deferred Expenses

Under Previous GAAP, certain expenses amounting to Rs. 228.24 Lakh were deferred and presented
as part of other non-current assets. Upon transition to Ind AS, such expenses do not meet the
recognition criteria of an asset and have therefore been adjusted against the opening retained
earnings as at the transition date.

(ii) Other Current Liabilities (Rent Payable)

Under Previous GAAP, rent expenses amounting to Rs.2.31 Lakh were not recognized on an accrual
basis. Under Ind AS, rent has been recognized on an accrual basis and, to the extent applicable, has
been capitalized as part of Capital Work-in-Progress (CWIP) in accordance with the applicable
accounting standards. Consequently, a corresponding rent payable liability has also been recognized,
with the impact adjusted in the opening retained earnings as at the transition date.

(iii) Preliminary Expenses

Under Previous GAAP, preliminary expenses amounting to Rs 3.61 Lakhs were recognised in the
statemnt of profit and loss. Upon transition to Ind AS, such expenses have been adjusted against the
opening retained earnings as at the transition date.

Note No. 43:- Share-based payments (ESOP)

1. The shareholders of the Company in its Extraordinary General Meetings held on 4th March, 2024
and 17th June, 2024 passed the special resolution for approval of Insolation Energy Employee Stock
Option Plan 2024 the Plan authorizing the Board/Committee to Grant not exceeding 20,00,000
Options to the eligible Employees in one or more tranches, from time to time, which in aggregate
shall be exercisable into not more than 20,00,000 Shares of face value of Re. 1/- each fully paid up,
with each such Option conferring a right upon the Employees to apply for one Share in the
Company in accordance with the terms and conditions as may be decided under the Plan.

2. The maximum number of Options that may be granted per Employee and in aggregate shall be
decided by the Committee depending upon the designation and the appraisal/assessment
process. However, the Grant of Options to identified Employees, during any one year shall not be
equal to or exceeding 1% of the issued capital of the company at the time of grant of option. Further,
approval of shareholders by way of separate resolution in the general meeting shall be obtained
before Grant of Options to identified Employees, during any one year equal to or exceeding 1% of
the issued capital of the company at the time of grant of option.In addition, the maximum number
of options that may be granted in aggregate shall not exceed 20,00,000 options.

3. If an Option cancels, expires, lapses or becomes un-exercisable due to any reason, it shall be
brought back to the Options pool as mentioned in Sub-clause 3.1 and shall become available for
future Grants, subject to compliance with all Applicable Laws.

4. Where Shares are issued consequent upon exercise of an Option under the ESOP 2024, the
maximum number of Shares that can be issued under ESOP 2024 as referred to in Clause 3.1 above
shall stand reduced to the extent of such Shares issued.

5. In case of a Share split or consolidation, if the revised face value of the Share is less or more than the
current face value as prevailing on the date of coming into force of this Plan, the maximum number
of Shares available for being granted under ESOP 2024 as specified above shall stand modified
accordingly, so as to ensure that the cumulative face value (no. of Shares X face value per Share)
prior to such Share split or consolidation remains unchanged after such Share split or
consolidation. Thus, for example, if the prevailing face value of each Share is Rs.10 per Share and the
revised face value after the Share consolidation is Rs 100 per Share, the total number of Shares
available under ESOP 2024 would be (Shares reserved at Sub-Clause 3.1/10) Shares of Rs.100 each.
Accordingly, the number of Options to be issued will also undergo a change. Similarly, in case of
bonus issue, etc. the available number of Shares under Plan shall be revised to restore the value.

* The Board of Directors approved, the sub-division/ split of The equity shares of the Company, such
that 1 (one) equity share having face value of Rs. 10.00 (Rupees Ten only) each, fully paid-up, was sub¬
divided into 10 (ten) equity shares having face value of Rs. 1.00 (Rupee One only) each, fully paid-up.
Further, the members in its Extraordinary General Meeting (EGM) on 05th December, 2024, approved
the said sub-division/ split of equity shares. The effect of the change in face value of the share was
reflected on the share price at the Stock Exchange where the Company is listed (BSE), effective from
24th January 2025 i.e. record date for the purpose of subdivision/ split of equity shares of your
Company.

(A) Capital management

For the purpose of the Company’s capital management, capital includes issued equity capital and all
other equity reserves attributable to the equity holders of the Company. The primary objective of the
Company’s capital management is to ensure that it maintains an efficient capital structure and
healthy capital ratios in order to support its business and maximise shareholder value.

The Company manages its capital structure and makes adjustments to it in light of changes in
economic conditions or its business requirements. To maintain or adjust the capital structure, the
Company may adjust the dividend payment to shareholders, return capital to shareholders or issue
new shares. The Company monitors capital using a gearing ratio and includes within net debt,
interest bearing loans and borrowings less Cash and cash equivalents.

(B) Financial risk management

The Company’s principal financial liabilities comprise Borrowings, trade payables 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 & other receivables, cash & cash Equivalent, deposits.

Company is exposed to following risk from the use of its financial instrument:

a. Credit Risk

b. Liquidity Risk

c. Market Risk

d. Foreign Currency Risk

e. Interest Rate Risk

The Company’s Financial Risk Management is an integral part of how to plan and execute its business
strategies. The Company’s financial risk management is set by the Managing Board.

a. 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 resulting in a financial loss to the Company. Credit
risk arises principally from trade receivables, loans & advances, cash & cash equivalents and deposits
with banks and financial institutions.

Trade Receivable

Customer credit risk is managed by each business unit subject to the Company’s established policy,
procedures and control relating to customer credit risk management. Trade receivables are non¬
interest bearing and are generally on 7 days to 90 days credit term. Credit limits are established for all
customers based on internal rating criteria. Outstanding customer receivables are regularly
monitored. The Company has no concentration of credit risk as the customer base is widely
distributed both economically and geographically.

Other Financial Instruments and Cash & Cash Equivalent

The Company maintain its cash & cash equivalent in current account to meet the day to day
requirements. Other financial instruments are Deposit, Accrued Interest, and Other Receivables. The
Company’s maximum exposure to credit risk for the component of the Balance Sheet as of 31st March
2026, 31st March, 2025, and 1st April, 2024 is the carrying amount as disclosed in Note 12,13 & 8B.

b. 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. The
Company’s approach to managing liquidity is to ensure, 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 risking damage to the Company’s reputation.

The table below summarises the maturity profile of the Company’s financial liabilities based on
contractual undiscounted payments:

c. Market Risk

Market risk is the risk that changes in market prices, such as foreign exchange rates and interest rates
will affect the Company’s income. The objective of market risk management is to manage and control
market risk exposures within acceptable parameters, while optimising the return.

The Board of Directors is responsible for setting up of policies and procedures to manage market risks
of the Company. All such transactions are carried out within the guidelines set by the Managing
Board.

d. Foreign Currency Risk

Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate
because of changes in foreign exchange rates. The Company is exposed to foreign currency risk on
certain transactions that are denominated in a currency other than entity’s functional currency,
hence exposure to exchange rate fluctuations arises. The risk is that the functional currency value of
cash flows will vary as a result of movements in exchange rates. The company uses forward contracts
to mitigate its risk from foreign currency fluctuations.

Derivative instruments and unhedged foreign currency exposure:-

(i) Derivative outstanding as at the reporting date - Nil

(ii) Particulars of unhedged foreign currency exposure as at the reporting date

The Company’s investment consists of investments in non traded (Un-quoted) company held for
purposes other than trading. Such investments held in connection with non-consolidated
investments represent a low exposure risk for the Company and are not hedged.

As at 31st, March 2026 Company does not have material exposure to listed or unlisted equity price risk.

Note No. 46:- Disclosure as per Ind AS 113 ‘Fair Value Measurement
Fair Value Hierarchy

This section explains the judgments and estimates made in determining the fair values of the
financial instruments that are:-

a. Recognised and measured at fair value and;

b. Measured at amortised cost and for which fair values are disclosed in financial statements. To
provide an indication about the reliability of the inputs used in determining fair value, the Company
has classified its financial instruments into three levels prescribed under the accounting standard.

Fair value are categorised into different level in a fair value hierarchy which are as follows:

Level 1 - Level 1 hierarchy includes financial instruments measured using quoted prices.

Level 2 - The fair value of financial instruments that are not traded in an active market is determined
using valuation techniques which maximize the use of observable market data and rely as little as
possible on entity specific estimates.

Level 3 - If one or more of the significant inputs is not based on observable market data, the
instrument is included in Level 3 is determined in accordance with generally accepted pricing models
based on discounted cash flow analysis using prices from observable market transactions and dealer
quotes of similar instruments.

Valuation Techniques used to determine fair values:

(A) Specific valuation technique is used to determine the fair value of the financial instruments
which include:

i. For financial instruments other than (ii):- In accordance with generally accepted pricing models
based on discounted cash flow analysis using prices from observable market transactions and
dealer quotes of similar instruments.

ii. For financial liabilities (domestic currency loans) :- appropriate market borrowing rate of the entity
as of each balance sheet date used.

Note No. 45:- Disclosure as per Ind AS 108 ‘ Operating segment

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. Further, from one customer (Insolation Green Energy Limited) the Company has revenue of
T7816.16 Lakhs (March 31,2025: 37.16 Crore) which is 79.74% of the total revenue from operations.

iii. Information about Geographical revenue and non-current asset.

Leave Encashment

The Company provides for leave encashment benefit to its employees in India in accordance with the
Company’s leave policy. Employees are entitled to encash unutilized earned leave at the time of
retirement, resignation, or termination, subject to the rules of the Company. The liability for leave
encashment is determined based on actuarial valuation, considering the number of accumulated
leave days and the last drawn basic salary of the employee. The amount payable is calculated based
on the unutilized leave balance at the applicable salary rate as on the reporting date.

Note No. 53:- Disclosure required as per Ind AS 23 "Borrowing Costs”

The amount of interest capitalised during the year is Rs. 26.02 Lakh.(PY: Rs.- 4.11 Lakh)

Note No. 54:- Regrouped, Recast, Reclassified

a. All amounts disclosed in the financial statements and notes have been rounded off to the nearest
Lakhs upto two decimals as per the requirements of Schedule III, unless otherwise stated.

b. Previous period’s figures in the financial statements, including the notes thereto, have been
reclassified wherever required to confirm to the current period’s presentation/classification.

Note No. 56:-

The Ministry of Corporate Affairs (MCA) has prescribed a new requirement for companies under the
proviso to Rule 3(1) of the Companies (Accounts) Rules, 2014 inserted by the Companies (Accounts)
Amendment Rules 2021 requiring companies, which uses accounting software for maintaining its
books of accounts, shall use only such accounting software which has a feature of recording audit trail

of each and every transaction, creating an edit log of each change made in the books of accounts
along with the date when such changes were made and ensuring that the audit trail cannot be
disabled.

The company has used such accounting software for maintaining its books of account which has a
feature of recording audit trail (edit log) facility and the same has been operated throughout the year
for all transactions recorded in the software and the audit trail feature has not been tampered with
and the audit trail has been preserved by the company as per the statutory requirements for record
retention.

Note No. 57:- Other Particulars/Disclosures as required by schedule-III are either Nil or Not
Applicable.

Note No. 58:- Other Additional Regulatory Information

i. During the year ended March 31,2026 the Company has not announced any dividend

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

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

iv. The Company do not have any charges or satisfaction which is yet to be registered with ROC
beyond the statutory period.

v. The Company is in compliance with the number of layers prescribed under clause (87) of Section 2
of the Companies Act, 2013 read with Companies (Restriction on number of layers) rules, 2017.

vi. The Company has not traded, nor invested in any Crypto currency or virtual currency during the
year ended March 31,2026 and March 31,2025.

vii. During the period, the Company has not advanced or given any loan or invested funds to any other
persons or entities, including foreign entities (Intermediaries) with the understanding that
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

viii. During the period, 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 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.

ix. There is no Scheme of Arrangements has been approved by the Competent Authority in terms of
sections 230 to 237 of the Companies Act, 2013 during the Year ended March 31, 2026 and March 31,
2025.

x. 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.

xi. The Company has no outstanding balances with the struck off companies.

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

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.

(xv) 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.

(xvi) 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.

(xvii) 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.

(xviii) IPO EXPENSES

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

(xix) 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.

_24 OTHER NOTES AND CONTINGENT LIABILITIES

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 nearest Lakhs. Figures in brackets indicate negative values.

4 Company is contingent liable:-

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

Company is contingent liable for GST Demand raised for Rs_on_by department. Company has already deposited Rs 3.86 Lacs under

Protest.

⁽ⁱⁱ⁾ Estimated amount of Contracts remaining to be execute on capital account and not provide for amount of Rs. Nil (Previous Year of Rs. Nil)

⁽"⁾ The Company is liable for Export obligations to be fullfill under machine imports under EPCG Licence amount of Rs. 104.65 lakhs (Previous year 104.65 lakhs). In case Company is unable to fulfill export obligation then company is liable to pay amounting to Rs.216.22 Lakhs (previous year of Rs. 200.39 Lakhs) the amount of duty save plus interest thereon.

(iv) In respect of counter guarantee given to the bank of Rs. 75.67 crore (Previous Year Rs. 48.00 crore) for guarantee given by the bank on behalf of the Insolation Green Energy Private Limited.

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.

15 Utilisation of Borrowed Funds and Share Premium

The company has not advanced or loaned 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.

For and on behalf of the Board of Directors

Insolation Energy Limited. As per our report of even date attached

SD/- ^SD/- For Badaya & Co.

(Manish Gupta) (Vikas Jain) Chartered Accountants

DIN:02917023 DIN:00812760 F.R. No.: 006395C

Chairman and Managing Director

Whole time Director

SD/- SD/- SD/-

(Madhuri Maheshwari) (Sneha Goenka) (Rohit Badaya)

Chief Financial Officer Company Secretary Partner

PAN: ANGPM6102J PAN: ATYPC0854B M No.: 078599

Place: Jaipur Date:17-05-2024

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 ofresources 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.

xv. 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.

xvi. 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.

xvii. 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.

xviii IPO EXPENSES

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

xix 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.