Notes to Accounts of ACME Solar Holdings Ltd.

Mar 31, 2025

j) Provisions, contingent assets and contingent
liabilities

Provisions are recognised only when there is a
present obligation, as a result of past events, and
measured at the estimated expenditure required
to settle the present obligation, based on the most
reliable evidence available at the reporting date,
including the risks and uncertainties associated
with the present obligations as a whole.
Provisions are discounted to their present values,
where the time value of money is material. When
discounting is used, the increase in the provision
due to the passage of time is recognised as
a finance cost. The expense relating to any
provision is presented in the Statement of Profit
and Loss net of any reimbursement.

Any reimbursement that the Company is virtually
certain to collect from a third party with respect
to the obligation is recognised as a separate
asset. However, this asset may not exceed the
amount of the related provision.

No liability is recognised if an outflow of economic
resources as a result of present obligations is

not probable. Such situations are disclosed
as contingent liabilities unless the outflow of
resource is remote.

Contingent liabilities are disclosed by way of
note unless the possibility of outflow is remote.
Contingent assets are neither recognised nor
disclosed. However, when realisation of income is
virtually certain, related asset is recognised

k) Employee benefits

Short-term employee benefits

Liabilities for salaries and wages, including
nonmonetary benefits that are expected to be
settled wholly within 12 months after the end of the
period in which the employees render the related
service are classified as short-term employee
benefits. These benefits include salaries and
wages, short-term bonus, pension, incentives etc.
These are measured at the amounts expected
to be paid when the liabilities are settled. The
liabilities are presented as current employee
benefit obligations in the balance sheet.

Post-employment benefits plans

The Company provides post-employment
benefits through various defined contribution
and defined benefit plans.

Defined contribution plans

The Company pays fixed contribution into
independent entities in relation to several state
plans and insurances for individual employees.
The Company has no legal or constructive
obligations to pay contributions in addition to
its fixed contributions, which are recognised as
an expense in the period that related employee
services are received.

Defined benefit plans

Under the Company''s defined benefit plans, the
amount of pension benefit that an employee will
receive on retirement is defined by reference to
the employee''s length of service and final salary.
The legal obligation for any benefits remains with
the Company, even if plan assets for funding
the defined benefit plan have been set aside.
Plan assets may include assets specifically
designated to a long-term benefit fund as well as
qualifying insurance policies.

The liability recognised in the balance sheet for
defined benefit plans is the present value of the
defined benefit obligation (DBO) at the reporting
date less the fair value of plan assets.

Management estimates the DBO annually
with the assistance of independent actuaries.
Actuarial gains/losses resulting from

re-measurements of the liability/asset are
included in other comprehensive income.

Service cost of the Company''s defined benefit
plan is included in employee benefits expense.
Employee contributions, all of which are
independent of the number of years of service,
are treated as a reduction of service cost. Net
interest expense on the net defined benefit
liability is included in the statement of profit
and loss. Gains and losses resulting from re¬
measurements of the net defined benefit liability
are included in other comprehensive income.

Accumulated leave, which is expected to be
utilised within the next 12 months, is treated as
short-term employee benefit. The Company
measures the expected cost of such absences
as the additional amount that it expects to
pay as a result of the unused entitlement that
has accumulated at the reporting date. The
Company recognises expected cost of short¬
term employee benefit as an expense, when an
employee renders the related service.

The Company treats accumulated leave expected
to be carried forward beyond twelve months, as
long-term employee benefit for measurement
purposes. Such long-term compensated
absences are provided for based on the actuarial
valuation using the projected unit credit method
at the reporting date. Actuarial gains/losses are
immediately taken to the statement of profit and
loss and are not deferred. The obligations are
presented as current liabilities in the balance
sheet if the entity does not have an unconditional
right to defer the settlement for at least twelve
months after the reporting date.

Share Based Payments

The company has granted employee stock
options to the eligible employees of the company.
As per the scheme, on fulfilling of the vesting
condition, the Company will issue its equity
shares to the eligible employees.

The cost of equity-settled transactions is
determined by the fair value of company''s
share at the date when the grant is made
using an appropriate valuation model. That
cost is recognised over the period in which
the performance and/or service conditions
are fulfilled in employee benefits expense. The
cumulative expense recognised for equity-
settled transactions at each reporting date until
the vesting date reflects the extent to which the
vesting period has expired and the companies
best estimate of the number of equity instruments
that will ultimately vest. The expense or credit

in the statement of profit and loss for a period
represents the movement in cumulative expense
recognised as at the beginning and end of that
period and is recognised in employee benefits
expense. Service and non-market performance
conditions are not taken into account when
determining the grant date fair value of awards,
but the likelihood of the conditions being met is
assessed as part of the company''s best estimate
of the number of equity instruments that will
ultimately vest. Non-vesting conditions are
reflected in the fair value of an award and lead to
an immediate expensing of an award unless there
are also service and/or performance conditions.

No expense is recognised for awards that
do not ultimately vest because non-market
performance and/or service conditions have not
been met. Where awards include a market or non¬
vesting condition, the transactions are treated
as vested irrespective of whether the market or
non-vesting condition is satisfied, provided that
all other performance and/or service conditions
are satisfied.

When the terms of an equity-settled award are
modified, the minimum expense recognised is
the grant date fair value of the unmodified award,
provided the original vesting terms of the award
are met. An additional expense, measured as at
the date of modification, is recognised for any
modification that increases the total fair value
of the share-based payment transaction, or is
otherwise beneficial to the employee.

Where an award is cancelled by the entity or
by the counterparty, the value of the award
recognised till date will get reversed from reserve
and adjusted through statement of profit or loss.

l) Earnings per share

Basic earnings per share are calculated by dividing
the net profit or loss for the period attributable to
equity shareholders (after deducting attributable
taxes) by the weighted average number of equity
shares outstanding during the period. Partly paid
equity shares are treated as a fraction of an
equity share to the extent that they are entitled
to participate in dividends relative to a fully
paid equity share during the reporting period.
The weighted average number of equity shares
outstanding during the period is adjusted for
events such as bonus issue, bonus element in
a rights issue, share split and reverse share split
(consolidation of shares) that have changed the
number of equity shares outstanding, without a
corresponding change in resources.

For the purpose of calculating diluted earnings
per share, the net profit or loss for the period
attributable to equity shareholders and the
weighted average number of shares outstanding
during the period are adjusted for the effects of
all dilutive potential equity shares.

m) Investment in subsidiaries

The Company has elected to recognise its
investments in subsidiaries at cost in accordance
with the option available in Ind AS 27, ''Separate
Financial Statements'', less accumulated
impairment loss, if any. Cost represents amount
paid for acquisition of the said investments.

The Company has elected to continue with
the carrying value for all of its investments
in subsidiaries as recognised in the financial
statements. On disposal of an investment, the
difference between the net disposal proceeds
and the carrying amount is charged or credited
to profit or loss. Investment in equity shares of
subsidiaries and in CCD''s which are entirely in the
nature of equity, are carried at cost.

n) Investment Properties

I nvestment properties are measured initially at
cost, including transaction costs. Subsequent
to initial recognition, investment properties are
stated at cost less accumulated depreciation
and accumulated impairment loss, if any.

The cost includes the cost of replacing parts
and borrowing costs for long-term construction
projects if the recognition criteria are met. When
significant parts of the investment properties
are required to be replaced at intervals, the
Company depreciates them separately based
on their specific useful lives. All other repair and
maintenance costs are recognised in profit or
loss as incurred.

I nvestment properties are derecognised either
when they have been disposed of or when they are
permanently withdrawn from use and no future
economic benefit is expected from their disposal.
The difference between the net disposal proceeds
and the carrying amount of the asset is recognised
in profit or loss in the period of derecognition. In
determining the amount of consideration from
the derecognition of investment properties
the Company considers the effects of variable
consideration, existence of a significant
financing component, non-cash consideration,
and consideration payable to the buyer (if any).
Transfers are made to (or from) investment
properties only when there is a change in use.
Transfers between investment property, owner-
occupied property and inventories do not change

the carrying amount of the property transferred
and they do not change the cost of that property
for measurement or disclosure purposes.

o) Inventories

I nventories are stated at the lower of cost and
net realisable value. The cost of inventories
comprises of all costs of purchase, costs of
conversion and other costs incurred in bringing
the inventories to their present location and
condition. Costs of ordinarily interchangeable
items are assigned using the first in, first out cost
formula. Net realisable value is the estimated
selling price in the ordinary course of business
less any applicable selling expenses.

p) Assets held for sale

Non-current assets are classified as held for
sale if their carrying amount will be recovered
principally through a sale transaction rather
than through continuing use. This condition is
regarded as met only when the asset is available
for immediate sale in its present condition subject
only to terms that are usual and customary
for sale of such asset and its sale is highly
probable. Management must be committed to
the sale, which should be expected to qualify
for recognition as a completed sale within one
year from the date of classification. As at each
balance sheet date, the management reviews
the appropriateness of such classification.

Non-current assets classified as held for sale are
measured at the lower of their carrying amount
and fair value less costs to sell. The Company
treats sale/distribution of the asset or disposal
group to be highly probable when:

• the appropriate level of management is
committed to a plan to sell the asset (or
disposal group),

• an active programme to locate a buyer and
complete the plan has been initiated (if
applicable),

• the asset (or disposal group) is being actively
marketed for sale at a price that is reasonable
in relation to its current fair value,

• the sale is expected to qualify for recognition
as a completed sale within one year from the
date of classification, and

• actions required to complete the plan indicate
that it is unlikely that significant changes to
the plan will be made or that the plan will be
withdrawn. Property, plant and equipment and
intangible assets once classified as held for

sale/distribution to owners are not depreciated
or amortised.

For these purposes, sale transactions include
exchanges of non-current assets for other
non-current assets when the exchange has
commercial substance. The criteria for held for
sale classification is regarded met only when
the assets or disposal group is available for
immediate sale in its present condition, subject
only to terms that are usual and customary for
sales/ distribution of such assets (or disposal
groups), its sale is highly probable; and it will
genuinely be sold, not abandoned.

q) Recent accounting pronouncements

Ministry of Corporate Affairs ("MCA") notifies
new standards or amendments to the existing
standards under Companies (Indian Accounting
Standards) Rules as issued from time to time. MCA
has notified below new standards/amendments
which were effective from 1^st April, 2024.

Amendments to Ind AS 116 -Lease liability in a
sale and leaseback

The amendments require an entity to recognise
lease liability including variable lease payments
which are not linked to index or a rate in a way
it does not result into gain on Right of use asset
it retains.

Introduction of Ind AS 117

MCA notified Ind AS 117, a comprehensive standard
that prescribe, recognition, measurement and
disclosure requirements, to avoid diversities in
practice for accounting insurance contracts and
it applies to all companies i.e., to all "insurance
contracts" regardless of the issuer. However, Ind
AS 117 is not applicable to the entities which are
insurance companies registered with IRDAI.

The Company has reviewed the new
pronouncements and based on its evaluation
has determined that these amendments do not
have a significant impact on these Standalone
Financial Statements.

2.2 Significant management judgement
in applying accounting policies and
estimation uncertainty

When preparing the financial statement,
management makes a number of judgements,
estimates and assumptions about the recognition
and measurement of assets, liabilities, income
and expenses.

Deferred tax assets

A deferred tax asset is recognised to the extent
that it is probable that future taxable profit
will be available against which the deductible
temporary differences and tax losses can be
utilised. Accordingly, the Company exercises
its judgement to reassess the carrying amount
of deferred tax assets at the end of each
reporting period.

Impairment of non-financial assets

In assessing impairment, management
estimates the recoverable amount of each asset
or cash-generating units based on expected
future cash flows and uses an interest rate to
discount them. Estimation uncertainty relates to
assumptions about future operating results and
the determination of a suitable discount rate.

Fair value measurement

When the fair value of financial assets and
financial liabilities recorded in the balance
sheet cannot be measured based on quoted

prices in active markets, their fair value is
measured using valuation techniques including
the Discounted Cash Flow model. The inputs to
these models are taken from observable markets
where possible, but where this is not feasible, a
degree of judgement is required in establishing
fair values. Judgements include considerations
of inputs such as liquidity risk, credit risk and
volatility. Changes in assumptions about these
factors could affect the reported fair value of
financial instruments.

Revenue recognition

For performance obligation satisfied over time,
the revenue recognition is done by measuring
the progress towards complete satisfaction
of performance obligation. The progress is
measured in terms of a proportion of actual
cost incurred to-date, to the total estimated cost
attributable to the performance obligation.

e) Transaction price - remaining performance obligation

The remaining performance obligation disclosure provides the aggregate amount of the transaction price
yet to be recognised as at the end of the reporting period and an explanation as to when the Company
expects to recognise these amounts in revenue. Applying the practical expedient as given in Ind AS 115, the
Company has not disclosed the remaining performance obligation related disclosures for contracts as
the revenue recognised corresponds directly with the value to the customer of the entity''s performance
completed till the reporting period.

Credit risk is the risk that a counterparty fails to discharge its obligation to the Company. The Company''s
exposure to credit risk is influenced mainly by cash and cash equivalents, trade receivables and
financial assets measured at amortised cost. The Company continuously monitors defaults of
customers and other counterparties and incorporates this information into its credit risk controls.

a) Credit risk management

i) Credit risk rating

The Company assesses and manages credit risk of financial assets based on following
categories arrived on the basis of assumptions, inputs and factors specific to the class of
financial assets.

A: Low credit risk on financial reporting date
B: Moderate credit risk
C: High credit risk

Based on business environment in which the Company operates, there have been no defaults
on financial assets of the Company by the counterparty. Loss rates reflecting defaults are
based on actual credit loss experience and considering differences between current and
historical economic conditions.

Assets are written off when there is no reasonable expectation of recovery, such as a debtor
declaring bankruptcy or a litigation decided against the Company. The Company continues
to engage with parties whose balances are written off and attempts to enforce repayment.
There have been no cases of write off with the Company.

The credit risk for cash and cash equivalents and other bank balances is considered
negligible, since the counterparties are reputable banks with high quality external credit
ratings. Loan is given to related parties within the Group. Accordingly, credit risk for loan is
considered negligible.

(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 have sufficient liquidity to
meet its liabilities when they are due.

Management monitors rolling forecasts of the Company''s liquidity position and cash and cash
equivalents on the basis of expected cash flows. The Company takes into account the liquidity of the
market in which the Company operates.

Maturities of financial liabilities

The following are the remaining contractual maturities of financial liabilities at the reporting date. The
amounts are gross and undiscounted, and include estimated interest payments, where applicable.

The Company does not have any other price risk than interest rate risk and foreign currency risk
as disclosed above.

Capital management

For the purpose of the Company''s capital management, capital includes issued equity capital,
share premium and all other equity reserves attributable to the equity holders of the parent. The
primary objective of the Company''s capital management is to maximise 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, return capital
to shareholders or issue new shares. The Company monitors capital using a gearing ratio, which

a. Disputed demand for income tax includes a dispute of INR 4.54 million (31^st March 2024: INR 4.54 million) for
assessment year 2018-19 between Athena Karnal Solar Power Private Limited and income tax department
in relation to addition in interest income. The Company had sold Athena Karnal Solar Power Private Limited
to private equity in FY 2021 and had provided indemnity for any tax demands arising for years upto sale
date. Athena Karnal Solar Power Private Limited has filed an appeal before Commissioner of Income-tax
(Appeals) against the order of assessing officer which is currently pending for disposal. Based on the
evaluation of the case, the management is of the view that it is more likely than not that matter will be
decided in favor of Athena Karnal Solar Power Private Limited and accordingly, no provision is required.
The Company had deposited INR 0.91 million (31^st March 2024: INR 0.91 million) under protest while filing the
said appeal.

b. The Company had entered into an agreement with ACME Chittorgarh Solar Power Pvt. Ltd. for supplying
Photovoltaic modules, inverters and other parts for setting up of Solar Power Generating System and the said
goods were covered by the entry no. 234 of notification no. 01/2017- CT (Rate) and the company discharged
5% GST rate on the supplies made. On 16^th November 2021, Anti-evasion team visited the premises of the
Company. Subsequent to visit, department issued a notice dated 31^th January 2022, wherein it has been
alleged that the goods have been wrongly classified as parts of Solar Power Generating System and
differential GST of INR 18.08 million need to be paid by the Company. During the year, the order has been
issued by Officer of Commissioner, CGST and Central Excise Jodhpur, for dropping of demand and related
interest and penalty.

c. The Company has filed a Petition under Section 79(l)(c) and 79(l)(f) of the Electricity Act, 2003 challenging
CTUIL email and letter dated 25^th June 2024 and 20^th August 2024, respectively whereunder the one-time
GNA charges of INR 120 million (31^st March 2024: Nil) (on the basis of calculation @ INR One Lakh per MW for 3
x 400 MW solar projects) for the 1200 MW solar projects in Fatehgarh, Rajasthan being set up by Company''s
subsidiaries i.e., ACME Raisar Solar Energy Private Limited, ACME Phalodi Solar Energy Private Limited, ACME
Deoghar Solar Power Private Limited and ACME Dhaulpur Powertech Private Limited, has been demanded
from the Company under Regulation 22.2(d) and Regulation 40.2 of the CERC (Connectivity and General
Network Access to the inter-State Transmission System) Regulations, 2022. Based on the evaluation of the
matter, the management is of the view that it is more likely then not that the matter will be decided in the
favour of the Company.

d. The Company has filed a Petition under Section 79(1)(c) and 79(1)(f) of the Electricity Act, 2003 challenging
CTUIL email and letter dated 7^th May 2024 and 20^th August 2024, respectively whereunder the one-time
GNA charges of INR 30 million (31^st March 2024: Nil) (on the basis of calculation @ INR One Lakh per MW) for
the Connectivity at Bikaner-II has been demanded from ASHL for the 300 MW Solar Project being set up by
Company''s subsidiary i.e., ACME Sikar Solar Private Limited under Regulation 22.2(d) and Regulation 40.2 of
the CERC (Connectivity and General Network Access to the inter- State Transmission System) Regulations,
2022. Based on the evaluation of the matter, the management is of the view that it is more likely then not
that the matter will be decided in the favour of the Company.

Note 44 Employee benefits

Defined contribution

Contributions are made to the recognised provident and family pension fund, cover all eligible employees under
applicable Acts. Both the employees and the Company make pre-determined contributions to the provident
fund. The contributions are normally based upon a proportion of the employee''s salary. The Company has
recognised an amount of INR 55.01 million (31^st March 2024: INR 23.77 million) towards employer''s contribution in
provident fund and other funds in the statement of profit and loss.

Defined benefit obligation

Provision for gratuity, payable to eligible employees on retirement/separation, is based upon an actuarial
valuation as at the balance sheet date. Major drivers in actuarial assumptions, typically, are years of service
and employee compensation. The obligations are actuarially determined using the ''Projected Unit Credit
Method'' as at the balance sheet date. Gains/ losses on changes in actuarial assumptions are accounted in
Other Comprehensive Income as identified by the management of the Company.

Other long term employee benefits

Provision for compensated absences, payable to eligible employees on ailment/ retirement/ separation,
is based upon an actuarial valuation as at the balance sheet date. Major drivers in actuarial assumptions,
typically, are years of service and employee compensation. The obligation are actuarially determined
using the ''Projected Unit Credit Method'' as at the balance sheet date. Gains/ losses on changes in actuarial
assumptions are accounted in Other Comprehensive Income.

Reasons for variance

♦Increase in current assets lead to increase in the ratio. Current assets has increased as loan to subsidiaries which are repayable
on demand has increased against IPO proceeds.

$ Increase in debt service due to fresh issue of shares at premium during IPO resulting into decrease in ratio.

% Increase in equity due to fresh issue of shares at premium during IPO resulting into decrease in ratio.

^A Due to increase in sale, the ratio has been increased.

** Profit during the current year decreased resulting into decrease in the ratio.

Other explanatory points

(a) Earning for Debt Service = Net Profit after taxes Non-cash operating expenses like depreciation and other
amortisations Interest other adjustments like loss on sale of Fixed assets etc.

Debt service = Interest & Lease Payments Principal Repayments

Net Profit after tax" means reported amount of "Profit/(loss) for the period" and it does not include items of
other comprehensive income.

(b) Capital Employed = Tangible Net Worth Total Debt Deferred Tax Liability

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

c) The Company does not have any charges or satisfaction, which is yet to be registered with Registrar
of Companies, beyond the statutory period prescribed under the Companies Act, 2013 and the rules
made thereunder.

d) The Company has not entered into any transaction which has not been recorded in the books of account,
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).

e) The Company has not traded or invested in crypto currency or virtual currency during the year.

f) The Company does not have any Benami property and further, no proceedings have been initiated or are
pending against the Company, in this regard.

g) The Company has not entered into any transactions with struck off companies, as defined under the
Companies Act, 2013 and rules made thereunder.

h) 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:

(i) 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

(ii) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.

i) 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:

During the previous year, on 28^th December 2023, Company had signed a Binding offer with Acme Solar
Energy Pvt. Ltd. (""Purchaser"") to sell its 100% investments in Equity shares and Debentures in its 5 subsidiaries
companies naming Aarohi Solar Pvt. Ltd., Dayanidhi Solar Power Pvt. Ltd., Acme Jaisalmer Solar Power Pvt.
Ltd., Niranjana Solar Energy Pvt. Ltd., Vishwatma Solar Energy Pvt. Ltd. Purchaser paid INR 3895.44 million to
Company as advance towards consideration, which would have been decided later based on Net Asset Value
provided by chartered accountant/registered valuer/ merchant banker.

During the previous year, on 29 March 2024, both the parties agreed to decline this binding offer due to non
agreement on the valuation of shares to be sold, due to which Company had to return the advance received
towards consideration to Purchaser within 60 days of declining of offer. Company has repaid INR 631.40 million
upto 31^st March 2024 and balance amount of INR 3,264.04 million has been repaid in current year.

During the earlier year, investment in equity instruments of the subsidiary company have been classified as
assets held for sale pursuant to management''s intention to sell. The Company has entered into sale purchase
agreement ("SPA") with a private equity fund for sale of its 100% investment in equity share of above mentioned
subsidiary company.

The assets classified as held for sale have been accounted at lower of carrying amount and fair value less
costs to sell. The fair value of investment classified as assets held for sale has been determined based on the
SPA entered with the private equity fund.

The carrying value and fair value less cost to sell of investment in above mentioned subsidiary company
classified as assets held for sale is detailed below:

Note 50 Share based payment

(i) Description of share based payment arrangements
Share based payment reserve

The ESOP 2024 authorise the maximum number of options that can be granted under this Scheme shall
not exceed 15,666,237 Options to the Employees in one or more tranches, from time to time, which in
aggregate shall be, exercisable into not more than 15,666,237 Shares, with each such Option conferring
a right upon the Employees to apply for one share in the Company to be transferred by the Trust upon
Exercise thereof, in accordance with the terms and conditions as may be decided under the Scheme.
Trust" means ''ACME Employees Welfare Trust, to be set up by the Company for the benefit of the Employees
and which may from time to time administer ESOP 2024 and hold cash, purchase/hold/sell/transfer Shares
or other securities of the Company for the purposes of the ESOP 2024.

The options granted under the Scheme shall vest not earlier than minimum period of 1 year and not later
than maximum period of 4 years from the Grant Date. The Committee at its discretion may grant Option
specifying Vesting Period ranging from minimum and maximum period as aforestated.

The Exercise Period in respect of the Vested Option shall be subject to a maximum period of 5 years from
the date of Vesting of Options. The Grantees can exercise all or part of the Vested Options within the
Exercise Period.

The Exercise Price per Option shall be as determined by the Committee and as set out in the grant Letter
and shall not be less than the face value of the Shares and may be up to the Market Price of the Shares, as
on the grant date."

(iii) During the previous year ended 31^st March 2024, the Company has sold investment in 11,544 Optionally
Convertible redeemable Preference Shares of ACME Hisar Solar Power Private Limited, ACME Bhiwadi Solar
Power Private Limited and ACME Karnal Solar Power Private Limited each , 3,339 Optionally Convertible
redeemable Preference Shares of ACME Jaipur Solar Power Private Limited and 215,335 Optionally
convertible debentures of ACME Jaipur Solar Power Private Limited to private equity.

(vi) Deferred consideration

During the earlier year, 100% investment in equity instruments and compulsory convertible debentures of
subsidiary company, namely ACME Chittorgarh Private Limited were sold to the private equity funds.

Deferred consideration on above investment was dependent on conditions precedent as agreed in the
respective share purchase agreement. The Company is confident to meet all the conditions precedent
as mentioned in the said agreement and is confident that the balance amount of INR 236.25 million (31^st
March 2024: INR 235.91 million) is fully recoverable.

Note 52 Segment information

The Company is engaged in the business of engineering, procurement and construction of solar plants and
related activities. Chief Operating Decision Maker (CODM) reviews the financial information of the Company
as a whole for decision-making and accordingly the Company has a single reportable segment. Further,
the operations of the Company are limited within one geographical segment. Hence, no further disclosure
is required to be made. The details relating to revenue from customers exceeding 10% of total revenue from
operation, if any is shown under note 29.

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 account, 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 account along with the date when such changes were made
and ensuring that the audit trail cannot be disabled.

The Company uses an accounting software (SAP HANA) for maintaining its books of account which has a
feature of recording audit trail (edit log) facility and the same has operated throughout the year for all relevant
transactions recorded in the accounting software. However, the audit trail feature is not enabled at database
level for accounting software SAP HANA to log any direct data changes for users with certain privileged access
rights. Further there is no instance of audit trail feature being tampered with in respect of the accounting
software where such feature is enabled. Additionally, the audit trail has been preserved by the company as per
statutory requirement for record retention.

Presently, the log is enabled at the application level and the privileged access to HANA database continues to
be restricted to limited set of users who necessarily require this access for maintenance and administration
of the database.

Note 54 Other notes

(i) During the previous year, the Board of Directors of Company at their meeting held on 15^th June 2023, had
approved composite scheme of arrangement (""the Scheme"") pursuant to the provisions of Sections
230 to 232 of the Companies Act, 2013 ("Act") read with other applicable provisions of the Act and rules as
applicable, with appointed date of 1^st April 2023, proposed:

a) Demerger of Solar and Wind Business (hereinafter referred to as "Demerged Undertaking" or "Solar and
Wind Business") belonging to M/s ACME Solar Holdings Limited ("Demerged Company" or "Transferor
Company") with and into M/s ACME Cleantech Solutions Private Limited ("Resulting Company") on a
going concern basis.

b) Amalgamation of M/s ACME Solar Holdings Limited ("Demerged Company" or "Transferor Company")
with its Remaining Business, with and into M/s MKU Holdings Private Limited ("Transferee Company").

Upon the Scheme becoming effective, the Transferor Company/ the Company shall after giving effect
to the Scheme stand dissolved, without further process of winding-up. Consequently, the Company
had filed an application with the Hon''ble National Company Law Tribunal (Hon''ble Tribunal), post
shareholders'' approval. The applicability of the Scheme was subject to regulatory and other approvals.

The Board of Director of the Company at their meeting held on 27^th May 2024, has approved the
resolution to withdraw the Scheme amongst M/s MKU Holding Private Limited, M/s ACME Cleantech
Solutions Private Limited and M/s ACME Solar Holdings Limited, filed before the Hon''ble Tribunal. On 29^th
May 2024, the Company has filed an applicable before the Hon''ble Tribunal to withdraw the Scheme
which was accepted by the Hon''ble Tribunal and post hearing the Scheme stand disposed off.

(ii) The Company in its board meeting held on 22^nd June 2024 has approved the "Initial Public Offering (IPO)"
of its equity shares of face value of INR 2 each which may include primary infusion through fresh issue
of equity shares and an offer for sale of equity shares by certain existing shareholders of the Company.
Further, the Company has increased its authorised equity shares from 1,000,000,000 equity shares of INR
10 each to 5,000,000,000 equity shares of INR 2 each.

During the year, the Company has completed an IPO. The equity shares of the Company were listed on BSE
Limited (''BSE'') and National Stock Exchange of India Limited (''NSE'') on 13^th November 2024. Refer note 18 for
further details.

Note 55 Subsequent event-Declaration of Interim Dividend

On 25^th April 2025, the Board of Directors of the Company declared an interim dividend of INR 0.20 per
share, amounting to a total of INR 121.02 million, in respect of the ended 31^st March 2025. This dividend was
declared subsequent to the reporting period and has not been recognised as a liability in these standalone
financial statements.

Certain amounts (currency value or percentages) shown in the various tables and paragraphs included in the
financial statements have been rounded off or truncated as deemed appropriate by company.

For Walker Chandiok & Co LLP For S. Tekriwal & Associates For and on behalf of the Board of Directors

Chartered Accountants Chartered Accountants Manoj Kumar Upadhyay Nikhil Dhingra

Firm''s Registration No.: 001076N/ Firm Registration No.: 009612N Chairman and Managing Director Whole Time Director and

N500013 DIN No. 01282332 Chief Executive Officer

DIN No. 07835556

Anamitra Das Shishir Tekriwal Purushottam Kejriwal Rajesh Sodhi

Partner Partner Chief Financial Officer Company Secretary

Membership No. 062191 Membership No. 088262

Place: Gurugram Place: New Delhi Place: Gurugram

Date: 19^th May 2025 Date: 19^th May 2025 Date: 19 May 2025

---

Mar 31, 2024

¹ On 21 June 2022, the Company had given interest free loan to ACME Deogarh Solar Power Private Limited of Rs. 2,672.44 million that has been converted into Optionally Convertible debentures ''OCD'' (267,243,707 OCD of face value of Rs. 10 each).

² On 3 June 2022, the Company had given interest free loan to ACME Phalodi Solar Energy Private Limited of Rs. 675.40 million that has been converted in to equity instruments ( 67,540,000 Equity Shares of Rs. 10 each).

On 22 June 2022, the Company had given interest free loan to ACME Phalodi Solar Energy Private Limited of Rs. 2,696.90 million has been converted into Compulsorily Convertible debentures ''CCD'' (269,690,000 CCD of face value of Rs. 10 each).

Previous year on 17 August 2021, the Company had given interest free loan ofRs. 236.80 million to ACME Phalodi Solar Energy Private Limited out of which loan of Rs. 226.80 million has been converted in to equity instruments (22,680,000 Equity Shares ofRs. 10 each) and loan ofRs. 10.00 million has been converted into Compulsorily Convertible debentures ''CCD'' (1,000,000 CCD of face value of Rs. 10 each).

³ On 12 January 2023, the Company has acquired 39% shares (49,316,280 Equity Shares of Rs.10 each) of ACME Aklera Power Technology Private Limited from DSDG Holding APS.

On 24 Jaunuary 2023, the Company has acquired 10% shares (12,645,200 Equity Shares ofRs. 10 each) and Compulsorily Convertible debentures ''CCD'' (18,967,800 CCD of face value of Rs. 10 each) of ACME Aklera Power Technology Private Limited from The United Nation Office for Project Service (UNOPS).

On 27 June 2023, the Company has acquired Compulsorily Convertible debentures ''CCD'' (73,974,420 CCD of face value of Rs. 10 each) of ACME Aklera Power Technology Private Limited from DSDG Holdings APS.

⁴ On 14 March 2023, the Company had given interest free loan ofRs. 3,279.90 million to ACME Raisar Solar Energy Private Limited out of which loan ofRs. 1,672.75 million has been converted in to equity instruments (167,274,900 Equity Shares ofRs. 10 each) and loan ofRs. 1,607.15 million has been converted into Optionally Convertible debentures ''OCD'' (160,715,100 OCD of face value of Rs. 10 each).

⁵ On 15 March 2023, the Company had given interest free loan ofRs. 1,658.25 million to ACME Dhaulpur Powertech Private Limited out of which loan ofRs. 845.71million has been converted in to equity instruments (84,570,648 Equity Shares ofRs. 10 each) and loan ofRs. 812.54 million has been converted into Optionally Convertible debentures ''OCD'' (81,254,152 OCD of face value of Rs. 10 each).

Further on 18 March 2023, the Company had given interest free loan ofRs. 1,621.65 million to ACME Dhaulpur Powertech Private Limited out of which loan ofRs. 827.04 million has been converted in to equity instruments (82,704,252 Equity Shares of Rs. 10 each) and loan of Rs. 794.61 million has been converted into Optionally Convertible debentures ''OCD'' (79,460,948 OCD of face value of Rs. 10 each).

⁶On 18 January, 2024 the Company has converted unsecured loan amounting to Rs. 4,036.40 million into 100,902,500 equity shares of Rs. 10 each and 302,737,500 optionally convertible debentures of Rs. 10 each of ACME Sikar Solar Private Limited.

Subsequently, on 4 March. 2024 the company redeemed 201,770,000 optionally convertible debentures of Rs. 10 each.

⁷During the previous year, the company has sold Rs. 4.00 million Optionally Convertible Reedemable Preference Shares ''OCRPS'' (17,316 OCRPS of face value of Rs. 231 each) of ACME Hisar Solar Power Private Limited, ACME Bhiwadi Solar Power Private Limited and ACME Karnal Solar Power Private Limited.

During the current year, the company has sold Rs. 2.67 million Optionally Convertible Reedemable Preference Shares ''OCRPS'' (11,544 OCRPS of face value of Rs. 231 each) of ACME Hisar Solar Power Private Limited, ACME Bhiwadi Solar Power Private Limited and ACME Karnal Solar Power Private Limited.

⁸During the previous year, the company has sold Rs. 6.66 million Optionally Convertible Reedemable Preference Shares ''OCRPS'' (6,661 OCRPS of face value of Rs. 1000 each) of ACME Jaipur Solar Power Private Limited.

During the current year, the company has sold Rs. 3.33 million Optionally Convertible Reedemable Preference Shares ''OCRPS'' (3,339 OCRPS of face value of Rs. 1000 each) and Rs. 215.33 million optionally convertible debenture (215,335 numbers of Rs 1,000 each) of ACME Jaipur Solar Power Private Limited.

⁹On 19 April 2023, the Company has transferred of Rs. 0.10 million equity share capital (10,000 Equity Sharesof Rs. 10 each) of ACME ECO Clean Energy Private Limited to ACME Pokhran Solar Private Limited.

On 13 February, 2024 the Company has converted unsecured loan amounting to Rs. 1,035.70 million into 26,930,000 equity shares of Rs. 10 each and 76,640,000 optionally convertible debentures of Rs. 10 each of ACME Pokhran Solar Private Limited.

¹⁰On 27 December 2023, the Company has acquired 2,163,269 equity shares of face value Rs. 10 each at Rs. 441.48 million and 2,069,489 compulsory convertible debentureof Rs 204.08 each of ACME Solar Rooftop Systems Private Limited from Vittanath Power Private Limited.

*On 6 June 2022, the Company had transferred 58,998,919 equity share capital of face value Rs. 10 each and 621,369 Compulsory Convertible Debenture of face value Rs. 1000 each of ACME Rewa Solar Energy Private Limited, 62,478,119 equity share capital of face value Rs. 10 each and 635,677 Compulsory Convertible Debenture of face value Rs. 1000 each of ACME Jodhpur Solar Power Private Limited and 28,493,700 equity share capital of face value Rs. 10 each and 15,209,056 Compulsory Convertible Debenture of face value Rs. 18 each of ACME Mahbubnagar Solar Energy Private Limited to ACME Solar Energy Private Limited.

On 7 June 2022, the Company had transferred 18,742,500 equity share capital of face value Rs. 10 each and 9,477,632 Compulsory Convertible Debenture of face value Rs. 19 each of ACME Yamunanagar Solar Power Private Limited to ACME Solar Energy Private Limited.

In consideration for above transaction ACME Solar Energy Private Limited has issued Compulsorily Convertible debentures ''CCD'' of Rs. 3,514,50 million (3,514,500 CCD of face value of Rs. 1000 each) to the Company.

@ Investment in instruments have been classified as carried at amortised cost as per IND AS 109, since no ancillary transaction cost has been incurred on issue of such compound financial instruments. Accordingly, amortised cost is equal to the cost of such instruments.

^A On 27 April 2023, the Company has sold ACME ECO Clean Energy Private Limited to ACME Pokhran Solar Private Limited.

*Refer note 47

*The Company had exercised the option under section 115BAA of the Income-tax Act, 1961, as introduced by the Taxation Laws (Amendment) Act, 2019, while filing return of income for the financial year ended 31 March 2021. Consequently, the Company had applied the lower income tax rates on the deferred tax assets/ liabilities to the extent these are expected to be realized or settled in the future period under the new regime.

5. Terms/ rights attached to equity shares

The Company has only one class of equity shares having par value of Rs 10 per share. Each holder of equity shares is entitled to one vote per share. The Company declares and pays dividends in Indian rupees. In the event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets of the Company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholder.

6. Details of shares issued pursuant to contract without payment being received in cash, alloted as fully paid up by way of bonus issues and brought back during the last 5 years for each class of shares

The Company has not issued any shares pursuant to a contract without payment being received in cash, allotted as fully paid up by way of bonus shares nor has there been any buy-back of shares in the current year and immediately preceeding five years.

*Terms of Compulsorily Convertible Debentures (CCDs)

The Company had issued 6,500,000 compulsorily convertible debentures of Rs. 1,000 each to ACME Cleantech Solutions Private Limited. Rate of interest on these CCDs is 8% with a moratorium period of one year from 19 September 2017. These CCDs shall be unsecured and their holders shall not be entitled to have any claim on any asset of the Company. These CCDs along with interest thereon, if any, will be converted into equity shares at any time at the option of CCD holders and the Company after the date of allotment. In case no option exercised by any CCD holders then these shall be compulsory converted into equity shares on expiry of thirty years from the date of allotment. Each CCD alongwith interest shall be mandatorily converted to 1.0444158 equity share of Rs.10 each at a price of Rs. 957.47 (inclusive of premium of Rs. 947.47) subject to ignoring of decimal part in rounding-off.

CCDs holders has waived the interest accrued on these compulsory convertible debentures including for the current year as well as previous year.

Subsequent to year end, the Board of Directors in their meeting held on 27 May 2024 has approved the conversion of 6,500,000 CCDs amounting to Rs. 6,500 million into 6,500,000 non-convertible debentures (NCDs) amounting to Rs. 6,500 million, on the below mentioned terms and conditions:

1.Interest rate on NCDs shall be 8% p.a. payable annually.

2. NCDs shall be redeemable at par.

3. The maximum tenure of NCDs shall be 5 year from the date of allotment of NCDs on conversion of CCDs

4. The Company shall have a call option and debenture holders shall have a put option to redeem the debentures, either full or partial, at any time. If the option is not exercised, then the outstanding debentures will be redeemed on the expiry of tenure.

On 12 June 2024, the Company has redeemed all the outstanding NCDs at par.

Securities premium

Securities premium represents premium received on issue of shares. The reserve is utilised in accordance with the provisions of the Companies Act, 2013.

Debenture redemption reserve

The Company is required to create a Debenture Redemption Reserve out of the profits which are available for payment of dividend for the purpose of redemption of debentures. Accordingly, Debenture redemption reserve has been created to the extent of profits available for payment of dividend.

Retained earnings

All the profits or losses made by the Company are transferred to retained earnings from statement of profit and loss.

Remeasurement of defined benefit plans

This represents the actuarial gains/losses recognised in other comprehensive income.

*Loan from related parties amounting to Rs. Nil (31 March 2023: Rs. 3,988.40 million) that are chargeable to interest (31 March 2023: 9,50% p.a.) and repayable within 12 months and loan from related parties ofRs. nil (31 March 2023: Rs. 2,806.96 million) are interest free and repayable on demand. (refer note 36)

^A Inclusive of accrued interest of Rs. nil (31 March 2023 : Rs. 188.99 million).

#Refer note 40 for assets pledged

The above information regarding dues to Micro, Small and Medium enterprises as defined under the Micro, Small and Medium Enterprises Development Act (MSMED), 2006 has been determined to the extent identified and information available with the Company pursuant to Section 22 of the Micro, Small and Medium enterprises Development Act (MSMED), 2006.

Contract asset is the right to consideration in exchange for goods or services transferred to the customer. Contract liability is the entity''s obligation to transfer goods or services to a customer for which the entity has received consideration from the customer in advance. Contract assets are transferred to receivables when the rights become unconditional i.e. only the passage of time is required before payment of consideration is due and the amount is billable. Contract liabilities are recognized as revenue as and when the performance obligation is satisfied.

e) Transaction price - remaining performance obligation

The remaining performance obligation disclosure provides the aggregate amount of the transaction price yet to be recognized as at the end of the reporting period and an explanation as to when the Company expects to recognize these amounts in revenue. Applying the practical expedient as given in Ind AS 115, the Company has not disclosed the remaining performance obligation related disclosures for contracts as the revenue recognised corresponds directly with the value to the customer of the entity''s performance completed till the reporting period.

(iii) Risk management

The Company’s activities expose it to market risk, liquidity risk and credit risk. The Company board of directors has overall responsibility for the establishment and oversight of the Company''s risk management framework. This note explains the sources of risk which the Company is exposed to and how the Company manages the risk and the related impact in the financial statements.

(A) Credit risk

Credit risk is the risk that a counterparty fails to discharge its obligation to the Company. The Company''s exposure to credit risk is influenced mainly by cash and cash equivalents, trade receivables and financial assets measured at amortised cost. The Company continuously monitors defaults of customers and other counterparties and incorporates this information into its credit risk controls.

a) Credit risk management

i) Credit risk rating

The Company assesses and manages credit risk of financial assets based on following categories arrived on the basis of assumptions, inputs and factors specific to the class of financial assets.

A: Low credit risk on financial reporting date B: Moderate credit risk C: Hish credit risk

Based on business environment in which the Company operates, there have been no defaults on financial assets of the Company by the counterparty. Loss rates reflecting defaults are based on actual credit loss experience and considering differences between current and historical economic conditions.

Assets are written off when there is no reasonable expectation of recovery, such as a debtor declaring bankruptcy or a litigation decided against the Company. The Company continues to engage with parties whose balances are written off and attempts to enforce repayment. There have been no cases of write off with the Company.

The credit risk for cash and cash equivalents and other bank balances is considered negligible, since the counterparties are reputable banks with high quality external credit ratings. Loan is given to related parties within the Group. Accordingly, credit risk for loan is considered negligible.

(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 have sufficient liquidity to meet its liabilities when they are due.

Management monitors rolling forecasts of the Company’s liquidity position and cash and cash equivalents on the basis of expected cash flows. The Company takes into account the liquidity of the market in which the Company operates.

Maturities of financial liabilities

The following are the remaining contractual maturities of financial liabilities at the reporting date. The amounts are gross and undiscounted, and include estimated interest payments, where applicable.

(C) Market risk

a) Foreign exchange risk

The company does not have any foreign exchange risk as there are no foreign currency transactions.

b) Interest rate risk i) Liabilities

The Company’s policy is to minimise interest rate cash flow risk exposures on long-term financing. The Company is currently not exposed to changes in market interest rates as there are no borrowings at variable interest rates.

c) Price risk

The Company does not have any other price risk than interest rate risk and foreign currency risk as disclosed above.

Capital management

For the purpose of the Company''s capital management, capital includes issued equity capital, share premium and all other equity reserves attributable to the equity holders of the parent. The primary objective of the Company''s capital management is to maximise 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, return capital to shareholders or issue new shares. The Company monitors capital using a gearing ratio, which is net debt divided by total capital plus net debt. The Company''s policy is to keep an optimum gearing ratio. The Company includes within net debt, interest bearing loans and borrowings, trade payables, less cash and cash equivalents.

*Compulsorily convertible debentures of Rs 6,500 million (31 March 2023: Rs. 6,500 million) held by Company’s Holding Company, has been considered as equity for the purpose of calculation of gearing ratio.

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

37 Terms of non convertible debentures

Non convertible debenture (issued during the 2021-2022)

1. Nature of securities:

(a) a first ranking exclusive charge on cash flows and receivables of the the Company and ACME Solar Energy Private Limited ("ASEPL") from the Group "A" Companies and proceeds of any liquidity events to the extent required to be paid to the debenture holders in accordance with liquidity events of the debenutre trust deed "DTD";

(b) a first ranking exclusive charge on the DSRA and all amounts deposited therein;

(c) a first ranking exclusive pledge over the pledged securities of the Company;

(d) a first ranking exclusive pledge over the pledged securities of the ASEPL; and

(e) a first ranking exclusive pledge over the pledged securities of the Group "A" Companies.

2. Over all return:

a) Cash coupon of 12.84% payable semi annually

b) Cash coupon of 13.92% payable semi annually after 31 August, 2023

c) Cash coupon of 14.50% payable semi annually after 01 February, 2024

3. Tenure: 5 years with the following amortization schedule:

•Principal moratorium for first 3 years

•End of Year 3: 20% along with accrued Redemption Premium, if any •End of Year 4: 30% along with accrued Redemption Premium, if any •End of Year 5: 50% along with accrued Redemption Premium, if any

Group "A" Companies includes ACME Solar Energy (Madhya Pradesh) Private Limited, ACME Odisha Solar Power Private Limited, Grahati Solar Energy Private Limited, Dayakara Solar Power Private Limited, Nirosha Power Private Limited, ACME Solar Technologies (Gujarat) Private Limited, ACME Raipur Solar Power Private Limited, ACME Nalanda Solar Power Private Limited, ACME Magadh Solar Power Private Limited, ACME PV Powertech Private Limited, Mihit Solar Power Private Limited, ACME Solar Rooftop Systems Private Limited, Acme Rewa Solar Energy Private Limited, ACME Jodhpur Solar Power Private Limited, Acme Yamunanagar Solar Power Private Limited, ACME Mahbubnagar Solar Energy Private Limited, ACME Solar Power Technology Private Limited.

^Incorporated on 20 November 2020 as a wholly owned subsidiary. The Company transferred 49% equity stake to Renew Solar Power Private Limited through execution of a share purchase agreement dated 21 February 2022.

^A On 27 April 2023, the Company has sold ACME ECO Clean Energy Private Limited to ACME Pokhran Solar Private Umited.

## On 12 January 2023, the Company acquired 39% shares (49,316,280 Equity Shares of Rs.10 each) of ACME Aklera Power Technology Private Limited from DSDG Holding APS.

On 25 January 2023, the Company acquired 10% shares (12,645,200 Equity Shares of Rs. 10 each) and Compulsorily Convertible debentures ''CCD'' (18,967,800 CCD of face value of Rs. 10 each) of ACME Aklera Power Technology Private Limited from The United Nation Office for Project Service (UNOPS).

#The company has sold its interests to ACME Cleantech Solutions Private Limited in

a) ACME Urja One Private Hmited (formerly known as ACME Barmer Solar Private Limited) on 17 May, 2023

b) ACME Urja Two Private Limited (formerly known as ACME Pushkar Solar Private Limited) on 27 July, 2023

c) ACME Sun Power Private Limited, ACME Surya Power Private Limited, Acme Surya Energy Private Limited, Acme Solartech Private Limited on 18 September, 2023.

**The company has sold its interests to third party on 03 January, 2024 ***The company has sold its interests to third party on 24 January, 2024

***On 30 March 2024, the Company has acquired 10,000 equity shares of face value Rs. 10 each at par of ACME Venus Urja Private Limited.

39 Earnings/ (loss) per share

Both the basic and diluted earnings/ (loss) per share have been calculated using the profit/ (loss) attributable to shareholders of the parent company as the numerator, i.e. no adjustments to profit/ (loss) were necessary.

* Subsequent to year ended 31 March 2024, the company has sub-divided each equity share of the face value of Rs.10 each in the authorised capital of the Company, into 5 equity shares of Rs 2 each fully paid-up. Further, as per Ind AS 33 ''Earnings Per Share'' , if the number of ordinary or potential ordinary shares outstanding increases as a result of share split after the reporting period but before the financial statements are approved for issue, the per share calculations for those and any prior period financial statements presented shall be based on the new number of shares.

a. The Company had entered into an agreement with ACME Chittorgarh Solar Power Pvt Ltd for supplying Photovoltaic modules, inverters and other parts for setting up of Solar Power Generating System and the said goods were covered by the entry no.234 of notification no. 01/2017- CT (Rate) and the company discharged 5% GST rate on the supplies made. On 16 November 2021, Anti-evasion team visited the premises of the Company. Subsequent to visit, department issued a notice dated 31 January 2022, wherein it has been alleged that the goods have been wrongly classified as parts of Solar Power Generating System and differential GST of Rs.18.08 million need to be paid by the Company. Based on the available documents and inputs from experts, the Company believes that more likely than not, these disputes would not result in additional outflow of resources and thus no adjustment is currently required to be made in these standalone financial statements.

b. Disputed demand for income tax includes a dispute of Rs. 4.54 million (31 March 2023: Rs. 4.54 million) for assessment year 2018-19 between Athena Karnal Solar Power Private Limited and income tax department in relation to addition in interest income. The Company had sold Athena Karnal Solar Power Private Limited to private equity in financial year 2020-21 and had provided indemnity for any tax demands arising for years upto sale date. Athena Karnal Solar Power Private Limited has filed an appeal before Commissioner of Income-tax (Appeals) against the order of assessing officer which is currently pending for disposal. Based on the evaluation of the case, the management is of the view that it is more likely than not that matter will be decided in favor of Athena Karnal Solar Power Private Limited and accordingly, no provision is required. The Company had deposited Rs. 0.91 million (31 March 2023: Rs. 0.91 million) under protest while filing the said appeal.

43 Employee benefits Defined contribution

Contributions are made to the recognised provident and family pension fund, cover all eligible employees under applicable Acts. Both the employees and the Company make pre-determined contributions to the provident fund. The contributions are normally based upon a proportion of the employee’s salary. The Company has recognized an amount of Rs 23.77 million (31 March 2023: Rs 18.30 million) towards employer’s contribution in provident fund and other funds in the statement of profit and loss.

Defined benefit obligation

Provision for gratuity, payable to eligible employees on retirement/separation, is based upon an actuarial valuation as at the balance sheet date. Major drivers in actuarial assumptions, typically, are years of service and employee compensation. The obligations are actuarially determined using the ‘Projected Unit Credit Method’ as at the balance sheet date. Gains/ losses on changes in actuarial assumptions are accounted in Other Comprehensive Income as identified by the management of the Company.

Other long term employee benefits

Provision for compensated absences, payable to eligible employees on availment/ retirement/ separation, is based upon an actuarial valuation as at the balance sheet date. Major drivers in actuarial assumptions, typically, are years of service and employee compensation. The obligation are actuarially determined using the ‘Projected Unit Credit Method’ as at the balance sheet date. Gains/ losses on changes in actuarial assumptions are accounted in Other Comprehensive Income.

Reasons for variance

*Increse in current assets leads to improvement in the ratio.

^ADue to payment received from trade receivables, the ratio has been increased.

^AA Due to payment of trade payable, the ratio has been increased.

**Profit during the current year resulting into improvement in the ratio.

Other explanatory points

(A) Earning for Debt Service = Net Profit after taxes Non-cash operating expenses like depreciation and other amortizations Interest other adjustments like loss on sale of Fixed assets etc.

Debt service = Interest & Lease Payments Principal Repayments

“Net Profit after tax” means reported amount of “Profit / (loss) for the period” and it does not include items of other comprehensive income.

(B) Capital Employed = Tangible Net Worth Total Debt Deferred Tax Liability

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

c) The Company does not have any charges or satisfaction, which is yet to be registered with Registrar of Companies, beyond the statutory period prescribed under the Companies Act, 2013 and the rules made thereunder.

d) The Company has not entered into any transaction which has not been recorded in the books of account, 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).

e) The Company has not traded or invested in crypto currency or virtual currency during the year.

f) The Company does not have any Benami property and further, no proceedings have been initiated or are pending against the Company, in this regard.

g) The Company has not entered into any transactions with struck off companies, as defined under the Companies Act, 2013 and rules made thereunder.

h) 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:

(i) 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

(ii) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.

i) 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:

(i) 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

(ii) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries,

45 During the current year, on 28 December 2023, Company has signed a Binding offer with Acme Solar Energy Pvt. Ltd. ("Purchaser") to sell its 100% investments in Equity shares and Debentures in its 5 subidiaries companies naming Aarohi Solar Pvt. Ltd., Dayanidhi Solar Power Pvt. Ltd., Acme Jaisalmer Solar Power Pvt. Ltd., Niranjana Solar Energy Pvt. Ltd., Vishwatma Solar Energy Pvt. Ltd. Purchase paid Rs. 3895.44 miilion to Company as advance towards consideration, which will be decided later based on Net Asset Value provided by chartered accountant/registered valuer/ merchant banker. On 29 March 2024, both the parties agrred to decline this binding offer due to non agreement on the valuation of shares to be sold, due to which Company will return the advance received towards consideration to Purchaser within 60 days of declining of offer. Company has repaid Rs. 631.40 million upto 31 March 2024 and balance amount of Rs. 3264.04 million has been repaid subsequently and this amount has been classified as Current Liabilities.

During the earlier year, investment in equity instruments of the subsidiary company have been classified as assets held for sale pursuant to management''s intention to sell. The Company has entered into sale purchase agreement ("SPA") with a private equity fund for sale of its 100% investment in equity share of above mentioned subsidiary company.

The assets classified as held for sale have been accounted at lower of carrying amount and fair value less costs to sell. The fair value of investment classified as assets held for sale has been determined based on the SPA entered with the private equity fund.

(ii) During the current year, the Company has sold investment in 11,544 Optionally Convertible redeemable Preference Shares of ACME Hisar Solar Power Private Limited, ACME Bhiwadi Solar Power Private Limited and ACME Karnal Solar Power Private Limited each , 3,339 Optionally Convertible redeemable Preference Shares of ACME Jaipur Solar Power Private Limited and 215,335 Optionally convertible debentures of ACME Jaipur Solar Power Private Limited.

During the previous year, the Company has sold investment in 17,316 Optionally Convertible redeemable Preference Shares of ACME Hisar Solar Power Private Limited, ACME Bhiwadi Solar Power Private Limited and ACME Karnal Solar Power Private Limited each and 6,661 Optionally Convertible redeemable Preference Shares of ACME Jaipur Solar Power Private Limited.

(iii) During the current year, the Company has sold investments in its subsidaries ACME Surya Power Pvt.Ltd, ACME Surya Energy Private Limited, ACME Sun Power Private Limited, ACME Solartech Private Limited, ACME Urja One Private Limited (formerly known as ACME Barmer Solar Private Limited) and ACME Urja Two Private Limited (formerly known as ACME Pushkar Solar Private Limited) to its parent company ACME Cleantech Solutions Private limited.

(iv) During the current year, ACME Kaithal Solar Power Private Limited, ACME Koppal Solar Energy Private Limited, ACME Babadham Solar Power Private Limited, ACME Vijayapura Solar Energy Private Limited, ACME Kittur Solar Energy Private Limited, ACME Guledagudda Solar Energy Private Limited, ACME Hukkeri Solar Energy Private Limited, ACME Kudligi Solar Energy Private Limited, ACME Sandur Solar Energy Private Limited, and Vittanath Power Private Limited, and its subsidaties Mihit Solar Power Private Limited, Devishi Solar Power Private Limited , Eminent Solar Power Private Limited , Sunworld Energy Private Limited , Devishi Renewable Energy Private Limited has been sold to Blupine.

(v) Deferred consideration

During the earlier year, 100% investment in equity instruments and compulsory convertible debentures of subsidiary company, namely ACME Chittorgarh Private Limited were sold to the private equity funds.

Deferred consideration on above investment was dependent on conditions precedent as agreed in the respective share purchase agreement. The Company is confident to meet all the conditions precedent as mentioned in the said agreement and is confident that the balance amount of Rs. 235.91 million (31 March 2023: Rs. 235.91 million) is fully recoverable.

48 Segment information

The Company is engaged in the business of engineering, procurement and construction of solar plants and related activities. Chief Operating Decision Maker(CODM) reviews the financial information of the Company as a whole for decision-making and accordingly the Company has a single reportable segment. Further, the operations of the Company are limited within one geographical segment. Hence, no further disclosure is required to be made. During the year ended 31 March 2024 and 31 March 2023, there is no single external customer who contributes 10% or more to the Company’s revenue.

49 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 account, 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 account along with the date when such changes were made and ensuring that the audit trail cannot be disabled.

The Company uses an accounting software (SAP HANA) for maintaining its books of account which has a feature of recording audit trail (edit log) facility and the same has operated throughout the year for all relevant transactions recorded in the accounting software. However, the audit trail feature is not enabled at database level for accounting software SAP HANA to log any direct data changes for users with certain privileged access rights. Further there is no instance of audit trail feature being tampered with in respect of the accounting software where such feature is enabled.

Presently, the log is enabled at the application level and the privileged access to HANA database continues to be restricted to limited set of users who necessarily require this access for maintenance and administration of the database.

50 Certain amounts (currency value or pecentages) shown in the various tables and paragraphs included in the financial statements have been rounded off or truncated as deemed appropriate by company.

51 Subsequent event

(i) On 22 June 2024, the Company has been converted from Private Limited Company to Public Limited Company.

(ii) During the previous year, the Board of Directors of Company at their meeting held on June 15, 2023, had approved composite scheme of arrangement ("the Scheme") pursuant to the provisions of Sections 230 to 232 of the Companies Act, 2013 (“Act”) read with other applicable provisions of the Act and rules as applicable, with appointed date of 01 April 2023, proposed:

a) Demerger of Solar and Wind Business (hereinafter referred to as “Demerged Undertaking” or “Solar and Wind Business”) belonging to M/s ACME Solar Holdings Limited (“Demerged Company” or “Transferor Company”) with and into M/s ACME Cleantech Solutions Private Limited (“Resulting Company”) on a going concern basis.

b) Amalgamation of M/s ACME Solar Holdings Limited (“Demerged Company” or “Transferor Company”) with its Remaining Business, with and into M/s MKU Holdings Private Limited (“Transferee Company”).

Upon the Scheme becoming effective, the Transferor Company/ the Company shall after giving effect to the Scheme stand dissolved, without further process ofwinding-up. Consequently, the Company had filed an application with the Hon''ble National Company Law Tribunal (Hon’ble Tribunal), post shareholders'' approval. The applicability of the Scheme was subject to regulatory and other approvals.

Subsequent to current year end, the Board of Director of the Company at their meeting held on May 27, 2024, has approved the resolution to withdraw the Scheme amongst M/s MKU Holding Private Limited, M/s ACME Cleantech Solutions Private Limited and M/s ACME Solar Holdings Limited, filed before the Hon’ble Tribunal. On May 29, 2024, the Company has filed an application before the Hon’ble Tribunal to withdraw the Scheme which was accepted by the Hon’ble Tribunal and post hearing the Scheme stand disposed off.