c. Provisions, Contingent Liability & Contingent Assets
Provisions involving substantial degree estimation in measurement are recognized when there is a result of past
events and it is probable that there is a presence obligation as result of past events and it is probable that there will
be an outflow of resources. Contingent liabilities are not recognized but disclosed in notes. Contingent Assets are
neither recognized nor disclosed in the financial statement.
For the year company has executed various tenders and recovered O&M charges from various customers from
services and maintenance during future period as specified under respective contracts and has been provided in
proportionate maintenance income for remaining period of contract. The outstanding obligation towards O&M
charges is J1,28,81,275/- as on date of balance sheet.
d. Use of Estimates
The preparation of financial statements in conformity with the generally accepted accounting principles requires
estimates and assumptions to be made that affect the reported amount of assets and liabilities on the date of
financial statements and the reported amount of revenues and expenses during the reported period. Difference
between the actual and estimates are recognized in the period in which the result are known or materialize.
e. Provision for Current and Deferred Tax
Current income tax expense comprises of taxes on income from operations in India. Income tax payable in India
is determined in accordance with the applicable rates and the provisions of the Income Tax Act, 1961. A provision
@ Amounts unpaid to Micro and Small Enterprises vendors on account of retention money have not been considered for the purpose of interest
calculation.
@ Amounts unpaid to Micro and Small Enterprises vendors on account of terms of payment have not been considered for the purpose of interest
calculation.
j. Balance of sundry Debtors/ Creditors/Loans/Advances and deposits are subject to confirmation, reconciliation and
necessary adjustments.
k. Previous year's figures have been re-classified, re-grouped or re-arranged wherever necessary to make them
comparable with the current year figures.
l. Cash & Cash equivalents (for purpose of cash flow statement)
Cash & Cash equivalents in the cash flow statement comprise cash at bank, cash in hand and balance in current
account with bank.
m. Earnings per share
Basic earnings per share is computed by dividing the profit / (loss) after tax for the period by the number of the equity
shares outstanding during the year. Diluted earnings per share is computed by dividing the profit / (loss) after tax
as adjusted for dividend, interest and other charges to expenses or income relating to the dilutive potential equity
shares, by the weighted average number of equity shares which could have been issued on the conversion of all
dilutive potential equity shares.
n. Impairment of Assets
Assets are tested for impairment whenever events or changes in circumstances indicate that the carrying amount of
the assets may not be recoverable. An impairment loss is recognized for the amount by which the asset's carrying
amount exceeds its recoverable amount. The recoverable amount is the higher of an asset's fair value less costs of
disposal and value in use. In assessing value in use, the estimate future cash flows are discounted to their present
value using a pre-tax discount rate that reflects current market assessment of the time value of money and the
risks specific to the asset. In determining fair value less costs of disposal, recent market transactions are taken into
account. For the purpose of assessing impairment, assets are grouped at the lowest levels for which there are
separately identifiable cash inflows which are largely independent of the cash inflows from other assets or groups of
assets (cash -generating units).
o. Inventories
Inventories are stated at lower of cost and net realisable value. Costs of inventories are determined on a weighted
average basis.
Raw materials is stated at Cost. Raw Materials cost includes cost of purchase and other costs incurred in bringing the
inventories to their present location and condition.
Finished Goods is valued based on method which carried by the management which includes cost of direct materials,
labour and proportion of manufacturing overheads based on the normal operating capacity.
Traded Goods cost includes cost of purchase and other costs incurred in bringing the inventories to their present
location and condition.
p. Segment Reporting
The Company is a manufacturer of solar photo-voltaic modules as well as engaged in the business of the Engineering,
Procurement and Construction (EPC) in the solar energy market, wherein the manufactured modules are utilized.
Based on the "management approach" as defined in AS-17 Segment Reporting, the Chief Operating Decision Marker
(CODM) evaluates the Company's performance and allocates resources based on an analysis of various performance
indicators by the overall business segment, i.e. the performance of the EPC projects. As the allocation of resources
and profitability of the business is evaluated by CODM on an overall basis, with evaluation into individual categories
to understand the reason for variations, no separate segments have been identified. Accordingly no additional
disclosure has been made for the segment revenue, segment results and the segment assets and liabilities.
q. The Company has borrowed fund from Banks on the basis of security of current assets and the company has filed
monthly statement of current assets with the Bank and the same are generally in agreement with books of accounts.
r. Immovable Property Not Held In Company's Name
The Company holds the title deeds of all immovable properties in their name.
s. Details Of Benami Property
The Company does not have any Benami property, where any proceeding has been initiated or pending against the
Company for holding any Benami property.
t. Transaction with Struck off Companies
The Company did not enter any transaction with struck off companies.
u. Registration Of Charges or Satisfaction with Registrar of Companies
The Company does not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory
period.
v. Undisclosed Income
The Company does not have any such transaction which is not recorded in the books of accounts that has been
surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (such as,
search or survey or any other relevant provisions of the Income Tax Act, 1961).
w. Details of Crypto / Virtual Currency
The Company has not traded or invested in crypto currency.
x. Wilful defaulter
The Company has not been declared as wilful defaulter by any bank or financial institution or any other lender.
y. Number of layers
The Company has complied with the number of layers prescribed under clause (87) of section 2 of the Act read with
Companies (Restriction on number of Layers) Rules, 2017.
z. The financial statements have been approved for issue by Company's Board of Directors on 12th May, 2025.
aa. Data back up
As per MCA notification dated August 05,2022, the Central Government has notified that Companies (Accounts)
Fourth Amendment Rules, 2022. As per the amended rules, the companies are required to maintain back up of the
books of account and other relevant books and papers in electronic mode that should be accessible in India at all
the time. Also, the companies are required to create back up on servers physically located in India on a daily basis.
To comply with this requirement, the Company takes the back up on daily basis.
7. Short Term Borrowings Contd.
7.1 Annexure to Working Capital borrowing
Security Details : Working capital loans repayable on demand from banks is secured by hypothecation of :
- Joint deed of Hypothecation with first pari-passu charge of all consortium member Banks on entire stock of
raw material, Plant & Machinery and Book Debts, both present and future (excluding machinery/ Equipments
hypothecated to other financial institutions
- Pari-passu charge by equitable mortgage of house situated at B/2,Punit Society,Opp. Mahi Canal, Nr. Vaikuth
Apartment, Behind N.D.D.B Auditorium, Anand-Sojitra Road, Anand, admeasuring 112.87 sq.mtrs, R.S.No.1606/2/P,
FP No.124/A, TP Seheme No.4 of Anand Nagar Palika standing in the name of Kalpeshkumar Ramanbhai Patel.
- Pari-passu charge by equitable mortgage of leasehold factory land bearing R.S.No.755/p (original R.S.No.755),
Plot No. 131/A admeasuring 821 sq mtrs and construction thereon admeasuring of 1653.63 sq mtrs, GIDC
Industrial Estate, Vithal Udyognagar, Tal. and Dist. Anand belonging to Mr. Kalpeshkumar Ramanbhai Patel.
- Pari-passu charge by equitable mortgage of lease hold property situated at R.S. No.755 paiki Plot No.131/B in
GIDC Industrial estate, Vithal Udyognagar admeasuring 696.01 sq. mtrs and construction thereon admeasuring
of 500.05 Sq. Mtr. belonging to Mr. Kalpeshkumar R Patel.
- Pari-passu charge by equitable mortgage of lease hold property situated at R.S. No 770/P2, Ground floor shop
no G-90, Jai Bhavani security services admeasuring 18.58 sq. mtr. situated at ""Pooja estate"" bh. Dmart, Nr Janta
Chowkdi, Vithal Udhyonagar GIDC area, Off. Anand Sojita road, At Anand- 388121
- Pari-passu charge by equitable mortgage of factory Land & Building at Block no 938, Plot no 1 (A-Type),
Tadkeshwar, Mandvi, Surat admeasuring 36742.88 sq. mtrs and construction thereon admeasuring of 242151
Sq. Mtr. belonging to M/s Shree Vasudev Industries.
- Pari-passu charge by extension of charge on Bungalow No 106, Shree Sant Tukaram Co-op. Housing Society
Ltd., Part 3, Bhattar Road, Surat admeasuring 406.82 sq yards and construction thereon admeasuring of 4394 Sq.
Mtr. belonging to Mr. Chetan Shah, Mr. Jayesh Shah and Mr. Paresh Shah.
- Pari-passu charge by 203 (Build up area of 50.25 sq mtr) and shop no 204 (build up area of 50.25 sq mtr) (Second
floow in, Adhyashakti Complex, Beside Honest Hotel, */A, National Highway, Lalpar, Morbi, Gujarat- 363642
belonging to Mr. Vipul Shah.
- Pledge of FDR of H70.00 Lacs in the name of the company."
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