balances are considered to be the same as their fair values, due to their short-term nature. Difference between carrying amounts and fair values of bank deposits, earmarked balances with banks, other financial assets, other financial liabilities subsequently measured at amortised cost is not significant in each of the years presented. For all other amortised cost instruments, carrying value represents the best estimate of fair value.

For the financial assets measured at fair values, the carrying amounts are equal to the fair values.

(iii) Valuation technique used to determine fair value:

The fair value of the financials assets and liabilities is reported at the amount at which the instrument could be exchanged in a current transaction between willing parties other than in a forced or liquidation sale. The following methods and assumptions were used to estimate the fair values: a. The use of directly observable unquoted prices

received from the respective mutual funds.

(iv) Fair Value hierarchy:

Financial assets and financial liabilities measured at fair value in the balance sheet are grouped into three Levels of a fair value hierarchy. The three levels are defined based on the observability of significant inputs to the measurement, as follows:

Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities.

Level 2: Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly.

Level 3: Unobservable inputs for the asset or liability.

The following table shows the Levels within the hierarchy, of financial assets and liabilities measured at fair value on a recurring basis as at 31 March 2023, 31 March 2022 and 1 April 2021:

- The Company's material related party transactions and outstanding balances are with related parties with whom the Company routinely enter into transactions are in the ordinary course of business.

- Key Managerial Personnel are entitled to postemployment benefits and other long term employee benefits recognised as per Ind AS 19 - 'Employee Benefits' in the Standalone Ind AS financial statements. As these employee benefits are lump sum amounts provided on the basis of actuarial valuation, the same is not included above.

The Company's principal financial liabilities comprise of trade and other payables and the Company's principal financial assets include investments in mutual funds, trade and other receivables and cash and cash equivalents that derive directly from its operations.

37. Financial Risk Management objectives and policies:

The Company is exposed to financial risks arising from its operations and the use of financial instruments. The key financial risks include market risk, credit risk and liquidity risk. The Company's risk management policies are established to identify and analyse the risks faced by the Company and seek to, where appropriate, minimize potential impact of the risk and to control and monitor such risks. There has been no change to the Company's exposure to these financial risks or the manner in which it manages and measures the risks.

The following sections provide details regarding the Company's exposure to the financial risks associated with financial instruments held in the ordinary course of business and the objectives, policies and processes for management of these risks.

(i) Market risk

Market risk is the risk of loss of future earnings, fair value or future cash flows of a financial instrument that will fluctuate because of changes in market rates and prices. The Company is exposed to market risk primarily related to interest rate risk. Thus, the Company's exposure to market risk is a function

of investing and operating activities in foreign currencies.

(a) Interest rate risk:

Interest rate risk is the risk that the fair value or future cash flows of the Company and the Company's financial instruments will fluctuate because of changes in market interest rates. The Company's investment in deposits with banks are for short durations and therefore do not expose the Company to significant interest rate risk. Further, the terms loans availed by the Company carries a fixed interest rate and therefore not subject to interest rate risk since neither the carrying value nor the future cash flows will fluctuate because of the change in market interest rates.

The Company's policy is to manage its interest rate risk by investing in fixed deposits, debt securities and debt mutual funds. Further, as there are no borrowings, the company's policy to manage its interest cost does not arise.

The Company's exposure to changes in interest rates relates primarily to the Company's outstanding floating rate debt.

(b) Currency Risk:

Currency risk is the risk that the value of a financial instrument will fluctuate due to changes in foreign exchange rates. The Company's exposure to the risk of change in foreign exchange rates relates primarily to the Company's operating activities (when revenue or expense is denominated in foreign currency).

The Company has transactional currency exposures arising from goods sold/purchased or services provided/availed that are denominated in a currency other than the functional currency.

(c) Other price risk

Other price risk is the risk that the fair value or future cash flows of the Company's financial instruments will fluctuate because of changes in market prices (other than those arising from interest rate risk or currency risk), whether those changes are caused by factors specific to the individual financial instrument or its issuer or by factors affecting all similar financial instruments traded in the market.

The Company based on working capital requirement keeps its liquid funds in current accounts. Excess funds are invested in current instruments.

The following table demonstrates the sensitivity of the Company's un-quoted investments on the profit [increase/(decrease)] for the period. The analysis is based on the assumption that net asset values has increased or decrease by 10%, with all other variables held constant.

(ii) Credit risk:

Credit risk is the risk that counterparty will not meet its obligations under a financial instrument or customer contract, leading to a financial loss. The Company is exposed to credit risk from its operating activities (primarily trade receivables and deposits) and from its investing activities, including deposits with banks and other financial instruments.

In addition, receivable balances are monitored on an ongoing basis with the result that the Company's exposure to bad debts is not significant.

(a) Exposure to credit risk:

At the end of the reporting period, the Company's maximum exposure to credit risk is represented by the carrying amount of each class of financial assets recognised in the statement of financial position. No other financial assets carry a significant exposure to credit risk.

(b) Credit risk concentration profile:

At the end of the reporting period, there were no significant concentrations of credit risk. The maximum exposures to credit risk in relation to each class of recognised financial assets is represented by the carrying amount of each financial assets as indicated in the balance sheet.

(c) Financial assets that are neither past due nor impaired:

None of the Company's cash equivalents, other bank balances, security deposits and other receivables were past due or impaired as at 31 March 2023. Trade and other receivables including loans that are neither past due nor impaired are from creditworthy debtors. Cash and short-term deposits investment securities that are neither past due nor impaired, are placed with or entered with reputable banks or financial institutions or companies with high credit ratings and no history of default.

impaired:

The Company doesn't have any significant trade receivables or other financial assets which are either past due or impaired. The Company's exposure to credit risk is influenced mainly by the individual characteristics of each customer. However, the Management also evaluates the factors that may influence the credit risk of its customer base, including the default risk. The Company's receivables turnover is quick and historically, there was no significant default on account of trade and other receivables. An impairment analysis is performed at each reporting date on an individual basis for major clients. The Company has used a practical expedient by computing the expected credit loss allowance for trade receivables based on a provision matrix. The provision matrix takes into account historical credit loss experience and is adjusted for forward looking information.

37. Financial Risk Management objectives and policies (continued):

(iii) Liquidity risk:

Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they become due. The Company manages its liquidity risk by ensuring, 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 risk to the Company's reputation.

Management monitors rolling forecasts of the Company's liquidity position comprising the cash and cash equivalents including other bank balances and investments in mutual funds on the basis of expected cash flows.

The table below summarises the maturity profile of the Company's financial liabilities based on contractual undiscounted payments as of 31 March 2023:

# Total Borrowings include long-term borrowing, current maturities of long-term borrowings and working capital loans like cash credit and buyer's credit.

In order to achieve this overall objective, the Company's capital management, amongst other things, aims to ensure that it meets the financial covenants attached to interest bearing loans and borrowings that define capital structure requirements. Breaches in meeting the financial covenants would permit the bank to immediately call back loans and borrowings.

There have been no breaches in the financial covenants of any interest bearing loans

conditions or its business requirements. To maintain or adjust the capital structure, Company may adjust the dividend payment to shareholders return capital to shareholders or issue new shares.

The Company monitors capital using a debt to capital employed ratio which is debt divided by total capital plus debt. The Company's policy is to keep this ratio at an optimal level to ensure that the debt related covenants are complied with.

and borrowings in the current period. No changes were made in the objectives, policies or processes for managing the capital during the year ended 31 March 2023 and 31 March 2022.

39. Contract Asset and Contract Liability

The amount spent by the company towards fulfilling its performance obligation (or part thereof) in accordance with contracts entered with counter party before the invoicing from such contract is due as per the Ind AS - 115 is regognized as Contract Assets in these financials. A contract asset is an entity's right to the assets for performance obligation that the entity has executed in accordance with the contract.

During the Financial year, Revenue Recognition for certain contracts wherein the Company has agreed to deliver consultancy services and Verified Carbon Units, revenue was recognized upon deployment of carbon credit eligible projects instead of complying with performance obligation as required in the contract. The management was then of the opinion that it has duly satisfied the performance obligations under these arrangements and has accrued corresponding revenue and cost in accordance with the terms of the contract. However, after considering the views of experts in respect of Ind AS - 115, the management of the company has consented that the revenue and corresponding cost shall be recognized upon complying with the entire performance obligation of as mentioned in the contract, instead of substantial performance obligation and accordingly the adjustment in respect of contract assets and contract liability is made as above.

40. Segment reporting

The Company is into climate change & sustainability advisory and carbon offsetting, along with business

excellence services which includes ISO certification, management training on JIT / Kaizen etc., and electrical safety audits. The Board of Directors of the Company have identified the Managing Directos as being the chief operating decision maker (CODM), evaluates the Company performance, allocate resources based on the analysis of the various performance indicators of the Company. As per the requirements of Ind AS 108 - "Operating Segments”, the company has two reportable segments as under:

(i) Trading & Other Business Segment: where the carbon credits are purchased from various vendors and are sold to customers among other ancilliary activities.

(ii) Generation Segment: where the carbon credits are issued from the projects implemented, developed and owned by the company.

The revenue of both these segments are earned majorly from sale of carbon credits, however the decision of CODM is derived separately in both these segments considering the variable outcomes of the respective segments.

42. Employee Stock Option Plan

The establishment of the EKI Employee Stock Option Scheme was approved by shareholders in their Annual General Meeting on 30th August 2021. The Employee Option Plan is designed to provide incentives to employees to deliver long-term returns. Under the plan, participants are granted options which vest in six tranches in two years from the grant date. Participation in the plan is at the board's discretion

on the fair valuation of the options so granted to the employees, who were later transferred to group concerns.

During the year, out of total 172,480 options granted, 15,413 options were exercised during the financial year 2022-23. Accordingly, an amount of Rs. 128.07 lacs was credited by the company in its securities premium account and correspondingly an amount of Rs. 98.80 Lacs is adjusted against Employee Stock Option Reserve. The fair value of the options granted is computed under Black Scholes Model by an Independent Valuer pursuant to Ind AS 102 - Share based payments.

43. Transfer Pricing Adjustment

As per transfer pricing legislation under section 92-92F of the Income Tax Act, 1961, the Company is required to use certain specific methods in computing arm's length prices of certain domestic and certain international transaction with associated enterprises and maintain adequate documentation in this respect.

The legislations require that such information and documentation to be contemporaneous in nature, the Company has appointed independent consultant (the 'Consultant') for conducting the Transfer Pricing Study (the 'Study') to determine whether the transactions with associate enterprises undertaken during the Financial year are on an "arm's length basis”. Management is of the opinion that the Company's domestic and international transactions are at arm's length & require no transfer pricing adjustments.

44. Corporate Social Responsibility

The Company has formulated CSR committee and has set responsibility thereon to plan for expenditures on CSR as per the applicable provisions of the Companies Act, 2013. The company has incurred an amount of Rs. 3,65,00,000/- (Previous Year 21,19,000/-) on account of its contribution for Corporate Social Responsibility for F.Y. 2022-23, at the rate of 2% of the average adjusted Net Profit for the previous three years. The CSR policy and the procedures in relation to it are in line with the requirements of the law.

Also, the company had granted 6,694 options (prebonus, post bonus equivalent options will be 26,776 options) to its employees, who were later transferred to Amrut Nature Solutions Private Limited. Considering the Employee Stock Option Policy of the company, options can be granted and stay vested for employees of group concerns as well. Moreover, since these options were granted to the employees when they were employees of EKI Energy Services Limited, the options are not cancelled by the company and the

entire expenses of stock options is to be borne by EKI Energy Services Limited and not the transferee company. However, owing to the fact that these employees are no longer employees of the company, the entire amount of expenses to be recognized basis the fair valuation of the options for such options so granted was recognized as expenses by the company during the year. Accordingly, an amount of Rs. 171.62 lakhs was charged to profit and loss account considering the expenses to be recognized based

47 Bonus issue of shares

Pursuant to the approval of the Company's shareholders, the company has issued bonus shares on 5 July 2022 in proportion of three equity shares for every one equity shares held. Accordingly, an amount of Rs. 2062.20 Lakhs was transferred by the company from 'Other Equity' to 'Equity Share Capital' (Rs.

1387.85 Lakhs from Security Premium Reserve and Rs. 674.35 Lakhs from Retained Earnings respectively). Accordingly, the basic and diluted earnings per share have been adjusted in accordance with Ind AS-33 "Earnings Per Share”.

48. First time adoption:

In preparing its opening Ind AS balance sheet, the Company has adjusted the amounts reported previously in financial statements prepared in accordance with the accounting standards notified under Companies (Accounting Standards) Rules, 2006 (as amended) and other relevant provisions of the Act (''previous GAAP''). The exemptions and exceptions applied by the Company in accordance with Ind AS 101 'First-time Adoption of Indian Accounting Standards' along with the reconciliations of equity, total comprehensive income and statement of cash flows in accordance with Previous GAAP to Ind AS are explained below.

Exemptions from retrospective application:

Exemptions applied Ind AS 101 allows first-time adopters certain exemptions from the retrospective application of certain requirements under Ind AS. The Company has applied the following exemptions:

a) Property, plant and equipment and intangible assets - Deemed Cost Ind AS 101 permits a first time adopter to elect to continue with the carrying value for all of its property, plant and equipment 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 decommissioning

liabilities included in the cost of property, plant and equipment (Para D7AA of Appendix D). This exemption can also be used for intangible assets covered by Ind AS 38 'Intangible Assets' and investment property covered by Ind AS 40 'Investment Properties'. Accordingly, the Company has elected to measure all of its property, plant and equipment at their previous GAAP carrying value.

b) The estimates as at 1 April 2021 are consistent with those made for the same dates in accordance with Indian GAAP (after adjustments to reflect any differences in accounting policies) apart from impairment of financial assets based on expected credit loss model where application of Indian GAAP did not require estimation. The estimates used by the Company to present these amounts in accordance with Ind AS reflect conditions at 1 April 2021 (transition date) and 31 March 2022.

c) Other comprehensive income (OCI): Under Indian GAAP, the Company had not presented other comprehensive income separately. Hence, it has reconciled Indian GAAP profit or loss to profit or loss as per Ind AS. Further, Indian GAAP profit or loss is reconciled to total comprehensive income as per Ind AS.

Cash flow statement - The transition from Indian GAAP to Ind AS has no material impact on the statement of cash flows.

a) As on the date of transition, the company decided to classify non-current investments as Financial Assets which are measured at fair value with gains or losses recognised in profit and loss (FVTPL). As per previous GAAP these are carried at cost. However, provision for permanent diminution in value is made to recognize any decline other than temporary in value of investments. As per Ind AS 109 all Equity Investments within the scope of Ind AS 109 are measured at Fair Value with the default recognition of gains and losses in Profit and Loss (FVTPL).

b) Leasehold lands held by the company as investments was reported at cost under Indian GAAP. Pursuant to transition to Ind AS, these investments are disclosed as Right of Use assets under Investment property.

Accordingly, depreciation is charged on such investments on the basis of their respective lease tenure on straight line basis.

c) Both under Indian GAAP and Ind AS, the Company recognized costs related to its post-employment defined benefit plan on an actuarial basis. Under Indian GAAP, the entire cost, including actuarial gains and losses, were charged to profit or loss. Under Ind AS, remeasurements comprising of actuarial gains and losses are recognized immediately in the balance sheet with a corresponding debit or credit to retained earnings through OCI.

d) Deferred taxes have been recognised on the adjustments made on transition to Ind AS.

1. Financial year 2021-22 was an exceptional year for the company as the prices for carbon credits vis-a-vis demand for the credits increased substantially. The company held its leadership position in the market and capitalized on the opportunities during the FY 2021-22. Owing to substantial increase in the values as the end on FY 2021-22 as compared to as at the end of FY 2020-21, the ratios stands disrupted as the calculations were made on year end figures whereas the resources were increased only gradually during the year.

2. During the FY 2022-23, owing to various reasons as stated by the company in its investor presentation the overall business of the company slowed-down during the second half of the year. The broad reasons for such slow-down are low pricing of environmental commodity, impact due to international geopolitical turmoil, high interest rate, inflation, regulatory changes, Media trial of green house mitigation projects, rating of project etc.

3. The profit margins of the company has also shrinked owing to unstable market and industry of carbon credit business. The overall business and industry of the company is at nascent stage and accordingly the ratios of the company may vary year on year and not depict the correct trend analysis.

50. Additional regulatory information not disclosed elsewhere in the Financial Statements

a. The Company does not have any benami property and no proceedings have been initiated on or are pending against the Company for holding benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and Rules made thereunder.

b. The Company has not been declared a 'Wilful Defaulter' by any bank or Financial institution (as defined under

the Companies Act, 2013) or consortium thereof, in accordance with the guidelines on wilful defaulters issued by the Reserve Bank of India.

c. 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.

d. The Company does not have any charges or satisfaction which is yet to be registered with Registrar of Companies (ROC) beyond the statutory period.

e. 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.

f. The Company has not traded or invested in crypto currency or virtual currency during the current or previous year.

g. The Company has not revalued its property, plant and equipment (including right-of-use assets) or intangible assets or both during the current or previous year.

h. The Company does not have any transactions with struck off companies.

i. The Company has not entered into any scheme of arrangement which has an accounting impact on current or previous Financial year.

j. The Company has not advanced or loaned or invested funds to any other persons or entities, 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”

k. 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 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

51. Previous year figures

The Schedule III to the Companies Act, 2013 has been amended in respect of certain regrouping / disclosures vide notification dated 24 March 2021 which are applicable w.e.f. 1 April 2021. The figures have been presented in the above financial statements after considering the said amendments.

Also, the company has adopted Indian Accounting Standards for preparation and presentation of its financial statements and these are the first financial statements of the company presented under Ind AS.

For the above reasons, the figures of the corresponding previous year have been regrouped wherever considered necessary to correspond to current year disclosures.