PROVISIONS

A provision is recognized if, as a result of a past event, the
Company has a present legal or constructive obligation
that is reasonably estimable, and it is probable that an
outflow of economic benefits will be required to settle the
obligation. Provisions are determined by discounting the
expected future cash flows at a pre-tax rate that reflects
current market assessments of the time value of money
and the risks specific to the liability.

18. FOREIGN CURRENCYFunctional currency

The functional currency of the Company is the Indian rupee.
These financial statements are presented in Indian rupees.

Transactions and translations

Foreign-currency-denominated monetary assets and
liabilities are translated into the relevant functional

currency at exchange rates in effect at the Balance Sheet
date. The gains or losses resulting from such translations
are included in net profit in the Statement of Profit and
Loss. Non-monetary assets and non-monetary liabilities
denominated in a foreign currency and measured at fair
value are translated at the exchange rate prevalent at the
date when the fair value was determined. Non-monetary
assets and non-monetary liabilities denominated in a foreign
currency and measured at historical cost are translated at
the exchange rate prevalent at the date of the transaction.

Transaction gains or losses realized upon settlement of
foreign currency transactions are included in determining
net profit for the period in which the transaction is settled.
Revenue, expense and cash-flow items denominated in
foreign currencies are translated into the relevant functional
currencies using the exchange rate in effect on the date of
the transaction.

19. EARNINGS PER EQUITY SHARE

Basic earnings per equity share are computed by dividing
the net profit attributable to the equity holders of the
Company by the weighted average number of equity
shares outstanding during the period. Diluted earnings
per equity share are computed by dividing the net profit
attributable to the equity holders of the Company by the
weighted average number of equity shares considered
for deriving basic earnings per equity share and also the
weighted average number of equity shares that could have
been issued upon conversion of all dilutive potential equity
shares. The dilutive potential equity shares are adjusted for
the proceeds receivable had the equity shares been actually
issued at fair value (i.e. the average market value of the
outstanding equity shares). Dilutive potential equity shares
are deemed converted as of the beginning of the period,
unless issued at a later date. Dilutive potential equity shares
are determined independently for each period presented.

The number of equity shares and potentially dilutive equity
shares are adjusted retrospectively for all periods presented
for any share splits and bonus shares issues including for
changes effected prior to the approval of the financial
statements by the Board of Directors.

20. EMPLOYEE BENEFITS

Provident fund

Eligible employees of Ungarn Renewable Energy Private
Limited receive benefits from a provident fund, if any, which
is a defined benefit plan. Both the eligible employee and
the Company make monthly contributions to the provident
fund plan equal to a specified percentage of the covered
employee's salary. There are no other obligation other than
contribution payable to the respective statutory authorities.

No retirement benefits have been paid to any employee
during the year by the Company. Retirement benefits in the
form of Gratuity and other long term/short term employee
benefits have not been provided in the financial statements.

21. CASH FLOW STATEMENT

Cash flows are reported using the indirect method, whereby
profit for the period is adjusted for the effects of transactions
of a non-cash nature, any deferrals or accruals of past or

future operating cash receipts or payments and item of
income or expenses associated with investing or financing
cash flows. The cash flows from operating, investing and
financing activities of the Company are segregated.

22. DIVIDENDS

The final dividend on shares is recorded as a liability on the
date of approval by the shareholders, and interim dividends
are recorded as a liability on the date of declaration by the
Company's Board of Directors.

23. CONTINGENT LIABILITIES

A contingent liability is a possible obligation that arises
from past events whose existence will be confirmed by the
occurrence or non-occurrence of one or more uncertain
future events beyond the control of the Company or a
present obligation that is not recognised because it is not
probable that an outflow of resources will be required to
settle the obligation. A contingent liability also arises in
extremely rare cases where there is a liability that cannot
be recognised because it cannot be measured reliably.
The Company does not recognize a contingent liability but
discloses its existence in the financial statements.

24. LEASES

Leases under which the Company assumes substantially all
the risks and rewards of ownership are classified as finance
leases. When acquired, such assets are capitalized at fair
value or present value of the minimum lease payments at the
inception of the lease, whichever is lower. Lease payments
under operating leases are recognized as an expense on a
straight-line basis in net profit in the Statement of Profit and
Loss over the lease term.

25. SEGMENT REPORTING

Operating segments are reported in a manner consistent
with the internal reporting provided to the chief operating
decision maker.

Identification of segments

In accordance with Ind AS 108- Operating Segment, the
operating segments used to present segment information
are identified on the basis of information reviewed by the
Company's management to allocate resources to the
segments and assess their performance. An operating
segment is a component of the Company that engages in
business activities from which it earns revenues and incurs
expenses, including revenues and expenses that relate to
transactions with any of the Company's other components.
Results of the operating segments are reviewed regularly
by the management team (chairman and chief financial
officer) which has been identified as the chief operating
decision maker (CODM), to make decisions about resources
to be allocated to the segment and assess its performance
and for which discrete financial information is available.

Allocation of common costs

Common allocable costs are allocated to each segment
accordingly to the relative contribution of each segment to
the total common costs.

Unallocated items

Revenues and expenses, which relate to the Company as a whole and are not allocable to segments on a reasonable basis,
have been included under "Unallocated corporate expenses”. Assets and liabilities, which relate to the Company as a whole
and are not allocable to segments on reasonable basis, are shown as unallocated corporate assets and liabilities respectively.

Segment accounting policies

The Company prepares its segment information in conformity with the accounting policies adopted for preparing and
presenting the financial statements of the Company as a whole.

26. CASH AND CASH EQUIVALENTS

Cash and cash equivalent in the balance sheet comprise cash at banks and on hand and short-term deposits with an
original maturity of three months or less, which are subject to an insignificant risk of changes in value.

27. SIGNIFICANT MANAGEMENT JUDGEMENT IN APPLYING ACCOUNTING POLICIES AND
ESTIMATION UNCERTAINTY

The following are the critical judgments and the key estimates concerning the future that management has made in the
process of applying the Company's accounting policies and that may have the most significant effect on the amounts
recognised in the financial Statements or that have a significant risk of causing a material adjustment to the carrying
amounts of assets and liabilities within the next financial year.

a) Evaluation of indicators for impairment of assets - The evaluation of applicability of indicators of impairment of assets
requires assessment of several external and internal factors which could result in deterioration of recoverable amount
of the assets.

b) Recognition of deferred tax liabilities - The extent to which deferred tax liabilities can be recognised is based on an
assessment of the probability of the future taxable income against which the deferred tax assets can be utilised.

28. RECENT ACCOUNTING PRONOUNCEMENTS

Ministry of Corporate Affairs ("MCA”) notifies new standards or amendments to the existing standards. There is no such
notification which would have been applicable from April 1, 2022.