22. Provisions, Contingent Liabilities and Contingent
Assets

a) Provisions

i) Provisions are recognised when the
Company has a present obligation (legal
or constructive) as a result of a past event,
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 the
obligation.

Provisions is measured using the cash flows
estimated to settle the present obligation
and when the effect of time value of money
is material, Provisions are determined by
discounting the expected future cash flows
(representing the best estimate of the
expenditure required to settle the present
obligation at the balance sheet date) at
a pre-tax rate that reflects current market

assessments of the time value of money
and the risks specific to the liability. The
unwinding of the discount is recognized
as finance cost. Reimbursement expected
in respect of expenditure required to settle
a provision is recognised only when it is
virtually certain that the reimbursement will
be received.

ii) Decommissioning Liability

Restoration/ Rehabilitation/ Decommissioning
cost are provided for in the accounting period
when the obligation arises based on the NPV
of the estimated future cost of restoration
to be incurred. It includes the dismantling
and demolition of infrastructure and removal
of residual material. This provision is based
on all regulatory requirements and related
estimated cost based on best available
information.

iii) Onerous Contracts

Present obligations arising under onerous
contracts are recognized and measured
as provisions. An onerous contract is
considered to exist when a contract under
which the unavoidable costs of meeting the
obligations exceed the economic benefits
expected to be received from it.

b) 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 recognized 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 recognized because it
cannot be measured reliably. The Company does
not recognize a contingent liability but discloses its
existence in the standalone financial statements.

c) Contingent Assets

Contingent assets usually arise from unplanned
or other unexpected events that give rise to the
possibility of an inflow of economic benefits.
Contingent Assets are not recognized though are
disclosed, where an inflow of economic benefits
is probable.

23. Operating Segment

The identification of operating segment is consistent with
performance assessment and resource allocation by the
chief operating decision maker. An operating segment is
a component of the Company that engages in business
activities from which it may earn revenues and incur
expenses including revenues and expenses that relate
to transactions with any of the other components of the

Company and for which discrete financial information is
available. All operating segment's operating results are
reviewed regularly by the chief operating decision maker
to make decisions about resources to be allocated to
the segments and assess their performance.

24. Employee Share based payment

Equity- settled share-based payments to employees
are measured at the fair value of the employee stock
options at the grant date. The fair value of option at the
grant date is expensed over the vesting period with a
corresponding increase in equity as “Employee Stock
Options Account”. In case of forfeiture of unvested
option, portion of amount already expensed is reversed.
In a situation where the vested option forfeited or
expires unexercised, the related balance standing to
the credit of the “Employee Stock Options Account” are
transferred to the “General Reserve”. When the options
are exercised, the Company issues new equity shares
of the Company of '1/- each fully paid-up. The proceeds
received and the related balance standing to credit of
the Employee Stock Options Account, are credited to
share capital (nominal value) and Securities Premium
Account.

25. Measurement of Fair Values

A number of the Company's accounting policies and
disclosures require the measurement of fair values, for
both financial and non-financial assets and liabilities.

Fair value is the price that would be received to sell
an asset or paid to transfer a liability in an orderly
transaction between market participants at the
measurement date. The fair value measurement is
based on the presumption that the transaction to sell
the asset or transfer the liability takes place either:

a) In the principal market for the asset or liability, or

b) In the absence of a principal market, in the most
advantageous market for the asset or liability.

The principal or the most advantageous market must
be accessible by the Company. The fair value of an
asset or a liability is measured using the assumptions
that market participants would use when pricing the
asset or liability, assuming that market participants act in
their economic best interest. A fair value measurement
of a non-financial asset takes into account a market
participant's ability to generate economic benefits by
using the asset in its highest and best use or by selling
it to another market participant that would use the asset
in its highest and best use.

26. Non-Current Assets held for sale

The Company classifies non-current assets as held
for sale if their carrying amounts will be recovered
principally through as sale rather than through continuing
use of the assets and actions required to complete such
sale Indicate that it is unlikely that significant changes
to the plan to sell will be made or that the decision to
sell will be withdrawn. Also, such assets are classified
as held for sale only if the management expects to
complete the sale within one year from the date of

classification. On-current assets classified as held for
sale are measured at the lower of their carrying amount
and the fair value less cost to sell. Non-current assets
are not depreciated or amortized.

27. Events after Reporting date

Where events occurring after the Balance Sheet date
provide evidence of conditions that existed at the end
of the reporting period, the impact of such events is
adjusted within the financial statements. Otherwise,
events after the Balance Sheet date of material size
or nature are only disclosed.

28. Research and Development

Expenditure on research is recognized as an expense
when it is incurred. Expenditure on development which
does not meet the criteria for recognition as an intangible
asset is recognized as an expense when it is incurred.

Items of property, plant and equipment and acquired
Intangible Assets utilized for Research and Development
are capitalized and depreciated in accordance with the
policies stated for Property, Plant and Equipment and
Intangible Assets.

18(a) Term Loan from HDFC Bank Limitd is secured by way of exclusive charge on the receivables from Solar
Power Project at Gujarat, additionally secured by way of first and exclusive charge on the assets of Solar
Power unit at Gujarat and P&M of Wind Power unit at Karnataka and equitable mortgage on one plot situtated
at Cherlapally, Hyderabad. Further, it has been guaranted by the some of the directors of the company. The
loan is repayable from July 2019. Accordingly, amount due with in a Year is INR 753.87 lacs (Principal only)
which is classified under “Borrowings(Current)” . The loan is repayable in 59 Installments ending in April
2024.

18(b) Vehicle loan from Kotak Mahindra Bank Limited is secured against hyphotication of vehicle. The loan has
been taken during the financial year 2022-23 and is repayable in monthly installment of INR 5.08 lacs
each. Accordingly, Installments due with in a year is INR 42.95 (Principal only) has been clasified under
“Borrowings(Current)” The loan is repayable in 60 installments ending in November 2027.

18(c) Vehicle loan from HDFC Bank Limited is secured against hyphotication of vehicle. The loan has been taken
during the financial year 2021-22 and is repayable in monthly installment of INR 0.24 lacs each. Accordingly,
Installments due with in a year is INR 2.67 lacs (Principal only) has been clasified under “Borrowings(Current)”.
The loan is repayable in 36 Installments ending in October 2024.

48. financial risk management objectives and policies

The Company's principal financial liabilities other than derivatives comprise long-term and short-term borrowings, capital
creditors and trade and other payables. The main purpose of these financial liabilities is to finance the Company's
operations. The Company's principal financial assets other than derivatives include trade and other receivables, cash and
cash equivalents and deposits that derive directly from its operation.

The Company is exposed tomarket, credit, liquidity and regulatory risks. The Company's senior management oversees
the management of these risks. The Board of Directors reviews and agrees policies for managing each of these risks,
which are summarised below :

A. Market risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of
changes in market prices. Market risk comprises three types of risk: commodity risk, interest rate risk and foreign
currency risk.

(i) Commodity Price Risk

Company is affected by the price volatility of certain commodities, primarily, Solar Module. Its operating
activities require the on-going purchase of these materials. The company has arrangement to pass-through
the increase/decrease in these material price through price variance clause in majority of the contract.

(ii) 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's exposure to the risk of changes in foreign exchange rate
relates primarily to the Company's operating activities (when revenue or expense is denominated in a foreign
currency). Further, the Company has foreign currency risk on import of input materials, capital commitment
and also borrow funds in foreign currency for its business. The Company evaluates the impact of foreign
exchange rate fluctuations by assessing its exposure to exchange rate risks. Certain transactions of the
Company act as a natural hedge as a portion of both assets and liabilities are denominated in similar foreign
currencies, for the remaining exposers to foreign exchange risks, the Company adopts a policy of selective

hedging based on risk perception of management using derivative, whenever required, to mitigate or eliminate
the risks.

(iii) Interest Rate risk

The Company is exposed to interest rate risk on financial liabilities such as borrowings, both short-term
and long-term. It maintains a balance of fixed and floating interest rate borrowings and the proportion is
determined by current market interest rates, projected debt servicing capability and view on future interest
rates.

B. Credit Risk

Financial Asset of the Company include trade receivables, employee advances and bank deposits which represents
Company's maximum exposure to the credit risk.

With respect to credit exposure from customers, the Company has a procedure in place aiming to minimise collection
losses. Credit Control team assesses the credit quality of the customers, their financial position, past experience
in payment and other relevant factors. The Company's exposure to credit risk is influence mainly by the individual
characteristics of each customer. However, management also considers the factors that may influence the credit
risk of its customer base, including default risk associated with the industry and country in which customers operate.
Credit quality of a customer is assessed based on an extensive credit rating scorecard and individual credit limits
are defined in accordance with this assessment. with respect to other financial riskViz loan and advances , deposit
with government, the credit risk is insignificant since the loans and advances are given to its employees only and
deposits are held with reputable banks. The credit quality of the financial assets is satisfactory, taking into account
the allowance for credit losses.

C. Regulatory Risks

The Company performance may be impacted due to change in Regulatory Environment. The Company is closely
monitoring the regulatory developments and risks thereof and proactively implementing course correction for proper
compliance commensurate with new regulatory requirements.

D. Liquidity Risk

The company's objective is to maintain a balance between continuity of funding and flexibility through the use of
bank deposits and loans

49. 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 maximize the shareholder value.

The Company manages its capital structure and makes adjustments in light of changes in economic conditions and the
requirements of the financial covenants. To maintain or adjust the capital structure, the Company may adjust the dividend
payment to shareholders. The Company monitors capital using a gearing ratio, which is net debt divided by total capital
plus net debt. The Company includes within net debt, interest bearing loans and borrowings, trade and other payables,
less cash and cash equivalents.

Compiled by: Dion Global Solutions Limited

(0) SURANA TELECOM AND POWER LIMITED

Notes forming part of the Standalone Financial Statements

(All amounts are in Indian Rupee (lakhs) except share data and where otherwise stated)

Debt = Non current borrowings Current Borrowings.
Equity = Equity Share capital Other Equity

50. Ratio analysis and its elements.

Notes

a) Change in the Current ratio is due to increase in the current Assets on account of investment in Mutual Funds.

b) Change in Debt Equity ratio is due to Prepayments of Long Term borrowings

c) Change in Debt service ratio is due to decrease in Long Term Liabilities and Net Profit.

d) Change in the Return on Equity ratio is on account of Increase in Net Profit.

e) Change in the Trade Payables ratio is due to increase in purchases.

f) Change in the Net Capital Turnover ratio is due to increase in Certain Assets.

g) Change in the Net Profit ratio is due to Increase in other income and decrease in Finance cost.

51. Other Statutory Information

A. RELATIONSHIP WITH STRUCK OFF COMPANIES

The company do not have any transactions with company's struck off under Section 248 of the Companies Act,
2013 or Section 560 of the Companies Act, 1956 during the year ended 31st March, 2023 (Previous year: Nil).

B. DISCLOSURE IN RELATION TO UNDISCLOSED INCOME

The company do not have any such transactions which is not recorded in the books of accounts that has been
surrendered or disclosed as income during the year ended 31st March, 2023 and also for the year ended 31st
March, 2022 in the tax assessments under Income Tax Act, 1961 (such as, search or survey or any other relevant
provisions of the Income Tax Act, 1961).

C. DETAILS OF BENAMI PROPERTY HELD

The Company do not hold any property under Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and rules
made thereunder, hence there are no proceedings against the company for the year ended 31st March, 2023 and
also for the year ended 31st March, 2022.

D. REGISTRATION OF CHARGES OR SATISFACTION WITH REGISTRAR OF COMPANIES (ROC)

The Company do not have any charges or satisfaction, which are yet to be registered with ROC beyond the
statutory period, during the year ended 31st March, 2023 and also during the year ended 31st March, 2022.

E. DETAILS OF CRYPTO CURRENCY OR VIRTUAL CURRENCY

The company have not traded or invested in crypto currency or virtual currency during the year ended 31st March,
2023 and also during the year ended 31st March, 2022.

F. UTILISATION OF BORROWED FUND AND SHARE PREMIUM

The company have not advanced or loaned or invested funds to any other person(s) or entity (ies), including
foreign entities (intermediaries) with the understanding that the 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.

The company have not received any fund from any person(s) or entity(ies), including foreign entities (funding party)
with the understanding (whether recorded in writing or otherwise) that the 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.

G. The Company has not been declared wilful defaulter by any bank or financial institution or government or any
government authority.

52. Confirmation letters of majority of balances under the heads Trade Payables, Claims Recoverable, Loans & Advances,
Trade Receivables and Deposits from and with various parties/ Government Departments have been sent but in number
of cases such confirmation letters from the parties are yet to be received.

53. Previous year's figures have been regrouped and rearranged, wherever found necessary

As per our report of even date attached For and on behalf of the BOD of Surana Telecom and Power Ltd

For Luharuka & Associates
Chartered Accountants
Firm Reg No - 01882S

Naveen Lohia Narender Surana Devendra Surana

Partner Managing Director Director

M.No: 214548 DIN: 00075086 DIN: 00077296

Place: Secunderabad T.R. Venkataramanan Mansa Thakur

Date: 30^th May, 2023 Chief Financial Officer Company Secretary

M.No: A67140