Notes to Accounts of Synergy Green Industries Ltd.

Mar 31, 2026

NOTE 33.14. Provisions

A Provision is recognized when the Company has a present obligation (legal or constructive) as a result of a past
event and it is probable that an outflow of resources is expected to settle the obligation, in respect of which a reliable
estimate can be made.

If the effect of the time value of money is material, provisions are discounted using a current pre-tax rate that reflects,
when appropriate, the risks specific to the liability. When discounting is used, the increase in the provision due to the
passage of time is recognised as a finance cost.

Contingent liability is disclosed in case of:

a) a present obligation arising from past events, when it is not probable that an outflow of resources will be required
to settle the obligation.

b) present obligation arising from past events, when no reliable estimate is possible

c) a possible obligation arising from past events where the probability of outflow of resources is remote.

Contingent assets are neither recognized, nor disclosed except when an inflow of economic benefits is probable.
Provisions, contingent liabilities and contingent assets are reviewed at each Balance Sheet date.

NOTE 33.15. Leases

Lease is a contract that provides to the customer (lessee) the right to use an asset for a period of time in exchange for
consideration. A lessee is required to recognize assets and liabilities for all leases with a term that is greater than 12
months, unless the underlying asset is of low value, and to recognize depreciation of leased assets separately from
interest on lease liabilities in the statement of Profit and Loss.

As a Lessee

Initial Measurement

Right to use asset

At the commencement date, the Company measures the right-of-use asset at cost. The cost of the right of-use asset
shall comprise:

• the amount of the initial measurement of the lease liability

• any lease payments made at or before the commencement date, less any lease incentives received;

• any initial direct costs incurred by the lessee; and

• an estimate of costs to be incurred by the lessee in dismantling and removing the underlying asset, restoring the
site on which it is located or restoring the underlying asset the lease, unless those costs are incurred to produce
inventories.

The lessee incurs the obligation for those costs either at the commencement date or as a consequence of having
used the underlying asset during a particular period.

Lease liability

At the commencement date, the Company measures the lease liability at the present value of the lease payments that
are not paid at that date. The lease payments are discounted using the interest rate implicit in the lease, if that rate can
be readily determined. If that rate cannot be readily determined, the Company uses its incremental borrowing rate.
Lease payments included in the measurement of the lease liability comprise the following payments:

• fixed payments (including in substance fixed payments), less any lease incentives receivable;

• variable lease payments that depend on an index or a rate, initially measured using the index or rate as at the
commencement date;

• amounts expected to be payable by the Company under residual value guarantees;

• the exercise price of a purchase option if the Company is reasonably certain to exercise that option; and payments
of penalties for terminating the lease, if the lease term reflects the lessee exercising an option to terminate the
lease.

Subsequent measurement Right to use asset

Subsequently the Company measures the right-of-use asset at cost less any accumulated depreciation and any
Accumulated impairment losses.

Lease Liability

Subsequently the Company measures the lease liability by:

• increasing the carrying amount to reflect interest on the lease liability at the interest rate implicit in the lease, if
that rate can be readily determined or the Company''s incremental borrowing rate.

• reducing the carrying amount to reflect the lease payments made; and

• re-measuring the carrying amount to reflect any reassessment or lease modifications or to reflect revised in¬
substance fixed lease payments.

NOTE 33.16. Impairment of non-financial assets

The company assesses at each balance sheet date whether there is any indication that an asset or cash generating
unit (CGU) may be impaired. If any such indication exists, the company estimates the recoverable amount of the asset.
The recoverable amount is the higher of an asset''s or CGU''s net selling price or its value in use. Where the carrying
amount of an asset or CGU exceeds its recoverable amount, the asset is considered impaired and is written down
to its recoverable amount and the reduction is treated as impairment loss and recognized in profit and loss account.
If at any subsequent balance sheet date there is an indication that a previously assessed impairment loss no longer
exists, the recoverable amount is reassessed and the asset is reflected at recoverable amount subject to a maximum
of depreciated historical cost and is accordingly reversed in the statement of profit and loss.

NOTE 33.17. Fair value measurement

The Company measures financial instruments at fair value if they are to be measured at fair value in accordance with
Ind AS, such as investment at each balance sheet date.

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction
between market participants at the measurement date.

The fair value measurement is based on the presumption that the transaction to sell the asset or transfer the liability
takes place either:

• In the principal market for the asset or liability OR

• In the absence of a principal market, in the most advantageous market for the asset or liability. The principal or
the most advantageous market must be accessible by the Company.

The fair value of an asset or a liability is measured using the assumptions that market participants would use when
pricing the asset or liability, assuming that market participants act in their economic best interest.

A fair value measurement of a non-financial asset takes into account a market participant''s ability to generate economic
benefits by using the asset in its highest and best use or by selling it to another market participant that would use the
asset in its highest and best use.

The Company uses valuation techniques that are appropriate in the circumstances and for which sufficient data
are available to measure fair value, maximising the use of relevant observable inputs and minimising the use of
unobservable inputs.

All assets and liabilities for which fair value is measured or disclosed in the Standalone financial statements are
categorized within the fair value hierarchy, described as follows, based on the lowest level input that is significant to
the fair value measurement as a whole:

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

• Level 2 — Valuation techniques for which the lowest level input that is significant to the fair value measurement
is directly or indirectly observable.

• Level 3 — Valuation techniques for which the lowest level input that is significant to the fair value measurement
is unobservable.

For assets and liabilities that are recognised in the Standalone financial statements on a recurring basis, the Company
determines whether transfers have occurred between levels in the hierarchy by reassessing categorization (based on
the lowest level input that is significant to the fair value measurement as a whole) at the end of each reporting period.

The Company''s management determines the policies and procedures for both recurring fair value measurement,
such as derivative instruments and unquoted financial assets measured at fair value.

External valuation experts are involved for valuation of significant assets and liabilities. The involvement of external
valuation experts is decided upon annually by the management.

NOTE 33.18. Financial instruments

A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity
instrument of another entity.

Financial assets and financial liabilities are recognised when the Company becomes a party to the contractual
provisions of the instrument. Financial assets and liabilities are initially measured at fair value. Transaction costs that
are directly attributable to the acquisition or issue of financial assets and financial liabilities (other than financial assets
and financial liabilities at fair value through profit and loss) are added to or deducted from the fair value measured on
initial recognition of financial asset or financial liability. The transaction costs directly attributable to the acquisition of
financial assets and financial liabilities at fair value through profit and loss are immediately recognised in the statement
of profit and loss. Trade Receivables that do not contain a significant financing component are measured at transaction
price.

Effective interest method

The effective interest method is a method of calculating the amortised cost of a financial instrument and of allocating
interest income or expense over the relevant period. The effective interest rate is the rate that exactly discounts future
cash receipts or payments through the expected life of the financial instrument, or where appropriate, a shorter period.

Financial assets
Cash and bank balances

Cash and bank balances consist of:

(i) Cash and cash equivalents - which includes cash on hand, deposits held at call with banks and other short-term
deposits which are readily convertible into known amounts of cash, are subject to an insignificant risk of change
in value and have original maturities of less than three months. These balances with banks are unrestricted for
withdrawal and usage.

(ii) Other bank balances - which includes balances and deposits with banks that are restricted for withdrawal and
usage.

Financial assets at amortised cost

Financial assets are subsequently measured at amortised cost if these financial assets are held within a business
model whose objective is to hold these assets in order to collect contractual cash flows and the contractual terms of
the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the
principal amount outstanding.

The Company in respect of certain equity investments (other than in subsidiaries, associates and joint ventures) which
are not held for trading has made an irrevocable election to present in other comprehensive income subsequent
changes in the fair value of such equity instruments. Such an election is made by the Company on an instrument-by¬
instrument basis at the time of initial recognition of such equity investments. These investments are held for medium
or long-term purposes. The Company has chosen to designate these investments in equity instruments as fair value
through other comprehensive income as the management believes this provides a more meaningful presentation for
medium or long-term investments, than reflecting changes in fair value immediately in the statement of profit and loss.

Financial assets not measured at amortised cost or at fair value through other comprehensive income are carried at
fair value through profit and loss.

Impairment of financial assets

Loss allowance for expected credit losses is recognised for financial assets measured at amortised cost and fair value
through other comprehensive income.

Company applies expected credit loss (ECL) model for measurement and recognition of impairment loss on the
following financial assets and credit risk exposure:

a. Financial assets that are debt instruments, and are measured at amortised cost e.g., loans, debt securities,
deposits etc.

b. Financial assets that are debt instruments and are measured as at FVTOCI

c. Trade receivables or any contractual right to receive cash or another financial asset that result from transactions
that are within the scope of Ind AS 115

d. Loan commitments which are not measured as at FVTPL

The company follows ‘simplified approach'' for recognition of impairment loss allowance on trade receivables or
contract revenue receivables.

The application of simplified approach does not require the company to track changes in credit risk. Rather, it
recognises impairment loss allowance based on lifetime ECLs at each reporting date, right from its initial recognition.
For recognition of impairment loss on other financial assets and risk exposure, the company determines whether there
has been a significant increase in the credit risk since initial recognition. If credit risk has not increased significantly,
12-month ECL is used to provide for impairment loss. However, if credit risk has increased significantly, lifetime ECL
is used.

The Company de-recognises a financial asset only when the contractual rights to the cash flows from the asset expire,
or it transfers the financial asset and substantially all risks and rewards of ownership of the asset to another entity.

If the Company neither transfers nor retains substantially all the risks and rewards of ownership and continues to
control the transferred asset, the Company recognises its retained interest in the assets and an associated liability for
amounts it may have to pay.

If the Company retains substantially all the risks and rewards of ownership of a transferred financial asset, the Company
continues to recognise the financial asset and also recognises a borrowing for the proceeds received.

Financial liabilities and equity instruments

Classification as debt or equity

Financial liabilities and equity instruments issued by the Company are classified according to the substance of the
contractual arrangements entered into and the definitions of a financial liability and an equity instrument.

Equity instruments

An equity instrument is any contract that evidences a residual interest in the assets of the Company after deducting all
of its liabilities. Equity instruments are recorded at the proceeds received, net of direct issue costs.

Financial liabilities

Trade and other payables are initially measured at fair value, net of transaction costs, and are subsequently measured
at amortised cost, using the effective interest rate method where the time value of money is significant.

Interest bearing bank loans, overdrafts and issued debt are initially measured at fair value and are subsequently
measured at amortised cost using the effective interest rate method. Any difference between the proceeds (net of
transaction costs) and the settlement or redemption of borrowings is recognised over the term of the borrowings in
the statement of profit and loss.

Fees paid on the establishment of loan facilities are recognised as transaction costs of the loan to the extent that it
is probable that some or all of the facility will be drawn down. In this case, the fee is deferred until the draw down
occurs. To the extent there is no evidence that it is probable that some or all of the facility will be drawn down, the fee
is capitalised as a prepayment for liquidity services and amortised over the period of the facility to which it relates.

Borrowings are removed from the balance sheet when the obligation specified in the contract is discharged, cancelled
or expired. The difference between the carrying amount of a financial liability that has been extinguished or transferred
to another party and the consideration paid, including any non-cash assets transferred or liabilities assumed, is
recognised in profit or loss as other gains/(losses).

Borrowings are classified as current liabilities unless the Company has the right, at the end of the reporting period, to
defer settlement of the liability for at least twelve months after the reporting period.

The classification of borrowings is based on the rights and conditions existing at the end of the reporting period. The
Company''s expectation or intention to settle the liability, or to exercise its right to defer settlement, does not affect the
classification.

Where the Company''s right to defer settlement of a borrowing for at least twelve months after the reporting period is
subject to compliance with specified conditions or loan covenants, the borrowing is classified in accordance with the
requirements of Ind AS 1. Any waiver or agreement obtained from the lender after the reporting period does not affect
the classification of the borrowing at the reporting date

De-recognition of financial liabilities

The Company de-recognises financial liabilities when, and only when, the Company''s obligations are discharged,
cancelled or they expire.

In the ordinary course of business, the Company uses certain derivative financial instruments to reduce business
risks which arise from its exposure to foreign exchange and interest rate fluctuations. The instruments are confined
principally to cross currency swaps & interest swap. The instruments are employed as hedges of transactions included
in the Standalone financial statements.

Derivatives are initially accounted for and measured at fair value on the date the derivative contract is entered into and
are subsequently remeasured to their fair value at the end of each reporting period.

Note: 33.19. Earnings per share

Basic earnings per share are calculated by dividing the net profit or loss for the period attributable to equity shareholders
by the weighted average number of equity shares outstanding during the period as reduced by number of shares
bought back, if any. 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.

Note:33.20. Share-based payments- Equity-settled transactions-ESOPs

Employees of the Company who are entitled to receive remuneration in the form of share-based payments, whereby
employees render services as consideration for equity instruments (equity-settled transactions).

Equity settled transactions

The cost of equity-settled transactions is determined by the fair value at the grant date using fair valuation model.

The cost is recognised, together with a corresponding increase in share-based payment reserves in equity, 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 Company''s best estimate of the number of equity instruments that will
ultimately vest. The Statement of Profit and Loss represents the movement in cumulative expense recognised as at
the beginning and at the end of the period and to be recognised in the 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.

Note:33.21. Treasury Shares

The Company has created an Employee Benefit Trust (EBT) for providing share-based payment to its employees. The
Company uses EBT as a vehicle for distributing shares to employees under the employee remuneration schemes.
The EBT buys shares of the Company from the market, for giving shares to employees on exercise of equity-settled
ESOP. Share options exercised during the reporting period are satisfied with treasury shares. The Company treats EBT
as its extension and shares held by EBT are treated as treasury shares. Own equity instruments that are reacquired
(treasury shares) are recognised at cost and deducted from equity. No gain or loss is recognised in profit or loss on the
purchase, sale, issue or cancellation of the Company''s own equity instruments.

Note:33.22. Events occurring after the Balance Sheet Date

Events occurring after the Balance Sheet date and till the date on which the standalone financial statements are
approved, which are material in the nature and indicate the need for adjustments in the Standalone financial statements
have been considered.

Note:33.23. Government Grant

Grants from the government are recognised at their fair value where there is a reasonable assurance that the grant
will be received and the company will comply with all attached conditions. Government grants relating to income are
deferred and recognised in the Statement of Profit and Loss over the period necessary to match them with the costs
that they are intended to compensate and presented within other income.

Note:33.24. Supplier finance arrangements

The Company enters into supplier finance arrangements through

(i) Usance Payable at Sight (UPAS) Letter of Credit facilities,

(ii) Supplier bills discounting on the Trade Receivables Discounting System (TReDS) platform

Under UPAS Letter of Credit and TReDS arrangements, banks and financial institutions make payments directly to
suppliers against accepted invoices, and the Company settles the obligation with the finance providers on agreed
maturity dates. Based on the economic substance, obligations arising from such arrangements are presented as Bills
payable and Supplier Finance Arrangements (SFA), as applicable.

Under reverse factoring arrangements (supplier bills discounting), payments to suppliers are funded through the
Company''s fund based working capital facilities, and the resulting obligation is presented as Short term Borrowings.

Payments made by banks and financial institutions directly to suppliers under supplier finance arrangements are
treated as non cash transactions, as the finance providers do not act as agents of the Company. Cash outflows are
recognised when the Company settles its obligations with the respective finance providers. Interest and discounting
charges are recognised as finance costs over the tenure of the arrangements.

Note: 33.25. Standards issued but not yet effective and amendments

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 amendments to the existing
standard IND AS 21: The Effects of changes in Foreign Exchange rates applicable to the Company w.e.f. April 01, 2025
to address concerns about currency exchange ability and provide guidance on estimating spot exchange rates when
a currency is not exchangeable. There is no significant impact on the Company in the current year.

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. For the year ended March 31, 2026, MCA has notified
Ind AS - 117 Insurance Contracts and amendments to Ind AS 116 - Leases, relating to sale and leaseback transactions,
applicable to the Company w.e.f. April 1, 2025.

In August 2025, MCA notified the following amendments to:

Ind AS 1, Presentation of Financial Statements, applicable w.e.f April 1, 2025 - The amendment relates to classification
of liabilities as current or non -current and non-current liabilities with covenants. In the context of classifying a liability
as current, it removes the requirement of existence of a right to defer settlement for at least 12 months after the
reporting date, and instead requires that the said right should exist on the reporting date and have substance. The
amendment also introduces guidance on classification of liabilities with covenants.

Ind AS 7, Statement of Cash Flows and Ind AS 107, Financial Instruments - Disclosures, applicable w.e.f April 1, 2025
- The amendment in Ind AS 7 requires to inform users of financial statements of the existence of supplier finance
arrangements and explain the nature of the arrangements, the carrying amount of liabilities and the range of
payment due dates. Ind AS 107 has been amended to add supplier finance arrangements as a factor that may cause
concentration of liquidity risk.

Ind AS 12, International Tax Reform - Pillar Two Model Rules applicable immediately - The amendments provide a
temporary mandatory relief from deferred tax accounting for top-up tax and disclose that they have applied the relief.
This relief is immediate and applies retrospectively.

The Company has reviewed the new pronouncements and has appropriately recognised and/or disclosed in the
Standalone Financial Statements.

Note A : EPCG License towards duty saved and interest thereon

i Authorization Holder shall be under obligation to export items as per details mentioned in this Authorization. The
Export Obligation shall be 6 times of the duty saved on import of Capital Goods on FOB basis within a period of
6 years (Block Years: 1st to 4th year (1st Block) - 50% and 5th to 6th year (2nd Block)- 50%) and shall be reckoned
from the date of issue of this Authorization.

ii Authorization Holder shall also be required to maintain the past average level of exports [achieved by the
EPCG applicant in the preceding three licensing years] for the same and similar products, as endorsed on this
Authorization for the entire export obligation period, including extended period, if any. This annual average Export
Obligation is in addition to the FOB value of exports mentioned in Point i above.

iii EO shall be fulfilled by the authorization holder through export of goods which are manufactured by him or his
supporting manufacturer / services rendered by him, for which the EPCG authorization has been granted.

iv Authorization Holder may discharge the export obligation by way of direct exports as well as through third party
exports. Exports to SEZ units/Supplies to developers/co-developers irrespective of currency of realisation
would also be counted for discharge of Export Obligation. Deemed exports as specified under Para 7.02 (a), (b),
(e), (f) and (h) of the Foreign Trade Policy 2015-2020 shall also be counted towards fulfilment of Export Obligation.

v Authorization Holder shall mention this EPCG Authorization number and date on all export documents of
shipments for consideration of exports towards EO fulfilment of the EPCG Authorization. In case, the Authorization
Holder has supporting manufacturer(s), the name of the supporting manufacturer(s) shall also be indicated in
Shipping Bills.

Note B : PSI Scheme 2007 and PSI Scheme 2019

Commitments mentioned under point ii,iii & iv in table above are based on commitments mentioned in Eligibility
certificate issued by the authority. This includes unrestricted access to factory for inspection of books and register
etc., employment of employees and salaries based on conditions mentioned in certificate, submission of documents,
forms etc. Also

i not to transfer/shift/lease/hire with or without consideration of fixed assets,

ii diuse/keep assets without write of, shift or close unit from existing location

iii Change in constitution or management of company

iv Company should not get merged or amalgamate with other company.

NOTE : 36 EMPLOYEE BENEFITS

i. Defined Contribution Plans:

a. Provident fund:

The Company provides provident fund benefits for eligible employees as per applicable regulations
wherein both employees and the Company make monthly contributions at a specified percentage of the
eligible employee''s salary. Contributions under such schemes are made to state managed funds. Benefits
provided under plans wherein contributions are made to state managed funds and the Company does not
have a future obligation to make good short fall if any, are treated as a defined contribution plan.

Amount of ''74.64 Lakhs in F.Y: 2025-26 (''63.72 lakhs in F.Y: 2024-25) is recognised as an expense and
included in Employees benefits expense (Note-25 in the Statement of Profit and Loss.)

j) Principal actuarial assumptions at the balance sheet date (expressed as weighted averages)

1 Discount rate as at 31-03-2026- 7.10% (6.70% in F.Y: 2024-25)

2 Expected return on plan assets as at 31-03-2026 - 6.70% (7.20% in F.Y: 2024-25)

3 Salary Increment rate as at 31-03-2026 Staff 10.00% & Directors 0% (Staff 10.00% & Directors 6% in F.Y:
2024-25)

4 Attrition rate as at 31-03-2026: 8.65% (8.64% in F.Y: 2024-25)

5 The estimates of future salary increase considered in actuarial valuation takes into account inflation,
seniority, promotion and other relevant factors, such as supply and demand in the employment
market.

k) General descriptions of defined plans:

1 Gratuity Plan:

The Company operates gratuity plan wherein every employee is entitled to the benefit equivalent to fifteen
days salary last drawn for each completed year of service. The same is payable on termination of service
or retirement whichever is earlier. The benefit vests after five years of continuous service.

2 Company''s Pension Plan:

The company operates a Pension Scheme for specified ex-employees through a Employees family pension
Scheme of 1971 notified by government. wherein the beneficiaries are entitled to defined monthly pension.

l) The Company has contributed ''20.42 Lakhs to its gratuity fund in 2026 (Previous Year ''15.42 Lakhs)

m) Sensitivity analysis

Sensitivity analysis indicates the influence of a reasonable change in certain significant assumptions on the
out come of the Present value of obligation (PVO) and aids in understanding the uncertainty of reported
amounts.

Average Duration

Weighted average duration of the plan (based on discounted cash flows using mortality, withdrawal rate
and interest rate) is 11.28 years
Expected Future Benefit Payments

The following benefits payments for each of the next five years and the aggregate five years thereafter, are
expected to be paid:

Risk Exposure:

Provision of a defined benefit scheme poses certain risks, some of which are detailed hereunder, as companies
take on uncertain long term obligations to make future benefit payments.

1. Liability Risk

a. Asset liability Mismatch Risk

Risk which arises if there is a mismatch in the duration of the assets relative to the liabilities. By
matching duration with the defined benefit liabilities, the company is successfully able to neutralize
valuation swings caused by interest rate movements. Hence companies are encouraged to adopt
asset-liability management.

b. Discount Rate Risk

Variations in the discount rate used to compute the present value of the liabilities may seem small,
but in practise can have a significant impact on the defined benefit liabilities

c. Future Salary Escalation and Inflation Risk

Since price inflation and salary growth are linked economically, they are combined for disclosure
purposes. Rising salaries will often result in higher future defined benefit payments resulting in a
higher present value of liabilities especially unexpected salary increases provided at management''s
discretion may lead to uncertainties in estimating this increasing risk.

2. Asset Risk

All plan assets are maintained in a trust fund managed by a public sector insurer viz; Life Insurance
Corporation of India.LIC has a sovereign gurantee and has been providing consistent and competitive
returns over the years.

The company has opted for a traditional fund wherein all assets are invested primarily in risk averse markets.
The company has no control over the management of funds but this option provides a high level of safety
for the total corpus. A single account is maintained for both the investment and claim settlement and hence
100% liquidity is ensured. Also interest rate and inflation risk are taken care of.

The fair value of the financial assets and liabilities are included at the amount at which the instrument that would
be received to sell an asset or paid to transfer liability in an orderly transaction between market participants at the
measurement date.

The carrying amounts of financial assets and liabilities measured at amortised cost are a reasonable approximation
of their fair values.

Fair value hierarchy

This section explains the judgements and estimates made in determining the fair values of the financial instruments
that are (a) recognised and measured at fair value and (b) measured at amortised cost and for which fair values are
disclosed in the financial statements. To provide an indication about the reliability of the inputs used in determining
fair value, the Company has classified its financial instruments into three levels prescribed under the accounting
standard. An explanation of each level is

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

• Level 2 — Valuation techniques for which the lowest level input that is significant to the fair value measurement
is directly or indirectly observable.

• Level 3 — Valuation techniques for which the lowest level input that is significant to the fair value measurement
is unobservable.

Company''s principal financial liabilities, comprise borrowings, trade and other payables, and other financial
liabilities. The main purpose of these financial liabilities is to finance company''s operations. Company''s principal
financial assets include trade and other receivables, investments, cash and cash equivalents and other bank
balances that are derived directly from its operations.

Company is exposed to certain risks which includes market risk, credit risk and liquidity risk.

Risk Management committee of the company oversees the management of these risks. This committee
is accountable to audit committee of the board. This process provides assurance to the company''s senior
management that company''s financial risk- taking activities are governed by the appropriate policies and
procedures and that financial risks are identified, measured and managed in accordance with company''s policies
and risk appetite.

The policies for managing these risks are summarised below."

1) 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 from its financing activities, foreign exchange transactions and other
financial instruments.

Company uses expected credit loss model for assessing and providing for credit risk.

a) Trade receivable

Customer credit risk is managed through the company''s policy, procedures and control relating to
customer credit risk management. Credit quality of a customer is assessed based on company''s
internal policies and procedures. Outstanding customer receivables are regularly monitored. Trade
receivables are non interest bearing and are generally on, 30 days to 120 days credit terms. The
company has concentration risk as customer base is not widely distributed, almost 74% of total
revenue is contributed by top six customers both economically and geographically.

b) Expected Credit Loss for Trade Receivable

The Company estimates its allowance for trade receivable using lifetime expected credit loss -
simplified approach on the balance past due for more than 6 month (net of expected credit loss
allowance)

Credit risk from balances with banks and financial institutions is managed by the company''s CFO in
accordance with company''s policy. Investments of surplus funds are made as per company''s policy.
Company monitors rating, credit spreads and financial strength of its counter parties. Based on
ongoing assessment company adjust it''s exposure to various counterparties. Company''s maximum
exposure to credit risk for the components of statement of financial position is the carrying amount.

2) Liquidity risk

Liquidity risk is the risk that the company may not be able to meet it''s present and future cash flow and
collateral obligations without incurring unacceptable losses. Company''s objective is to, at all time maintain
optimum levels of liquidity to meet it''s cash and collateral requirements. Company closely monitors
its liquidity position and deploys a robust cash management system. It maintains adequate sources of
financing including overdraft, debt from domestic banks at optimised cost and financing arrangement for
suppliers.

The table summarises the maturity profile of company''s financial liabilities based on contractual
undiscounted payments

3) Market Risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because
of changes in market prices. Market risk comprises three types of risk interest rate risk, currency risk and
other price risk such as equity price risk and commodity risk. Financial instruments affected by market
risk include loans and borrowings, deposits and investments. Company''s activities expose it to variety of
financial risks, including effect of changes in foreign currency exchange rate and interest rate.

a) Interest rate risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate
because of changes in market interest rates. Company manages its interest rate risk by having a
balanced portfolio of fixed and variable rate loans and borrowings. The company does not account
for any fixed-rate financial assets or financial liabilities at fair value through profit or loss. Therefore, a
change in interest rates at the reporting date would not affect profit or loss.

b) Foreign Currency Exposure Risk

Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate
because of changes in foreign exchange rates. The Company''s exposure to the risk of changes in
foreign exchange rates relates primarily to the Company''s operating activities (when revenue,
expense, assets & liabilities is denominated in a foreign currency).

The company manages its foreign currency risk by mapping receive bale against payables in order to
minimize currency fluctuation impact.

NOTE 39: CAPITAL MANAGEMENT
(a) Risk management

The company''s objective when managing capital are to

- safeguard it''s ability to continue as a going concern, so that it can continue to provide returns for shareholders
and benefits for other stakeholders, and

- Maintain an optimal capital structure to reduce the cost of capital.

In order to maintain or adjust the capital structure, the company may adjust the amount of dividends paid to
shareholders, return capital to shareholders, issue new shares or sell assets to reduce debt. Consistent with
others in the industry, the company monitors capital on the basis of the following Gearing ratio: Net debt (Total
borrowings net of cash and cash equivalents) divided by Total ‘equity'' (as shown in the balance sheet, including
non-controlling interests).

(b) Dividend

The Board of Directors have recommended Preference Dividend of ''10/- per Preference Shares of ''100/-
each (Previous year ''10/- per Preference Shares of ''100 /-) on 10% Redeemable Cumulative Preference
Shares for F.Y 2025-26, subject to approval of members in the ensuing annual general meeting.

a) The Company at its right issue committee meeting held on 12th October 2024 has allotted 14,13,000 rights equity
shares of Face value of ''10 each issued at a premium of ''315 per share, total price of ''325 per share. Company
has raised ''4592.25 lakhs through this right issue. On 12th October 2024, allotment process was completed.

b) Proceeds from the rights issue have been utilised upto March 31, 2026 in the following manner:

There has been no variation or deviation in the utilization of the funds raised by the Company as stated in the Letter
of Offer, dated September 13, 2024

As discussed & approved by the Board out of ''853.25 Lakhs allocated for General Corporate Expenses (GCE), ''841.07
Lakhs have been utilized for floor-type milling and boring machines under new machining capacity at Five Star MIDC,
Kagal, Kolhapur-416216, Maharashtra

Company has deposited right issue proceeds in fixed deposit and has availed overdraft facility against the same fixed
deposit. Above mentioned expenses/advances are made out of the same overdraft facility

There is no transaction with struck off companies during current year & previous year
NOTE 45: SEGMENT REPORTING

Company operates in single operating segment of manufaturing & machining of castings. The executive management
committee monitors the operating results of entire Company as a whole for the purpose of making decisions about
resource allocation and performance assessment.

Details of revenue contributed by single customer that exceeds 10% of total revenue:

NOTE 46: DUES TO MICRO, SMALL, MEDIUM ENTERPRISES

The Company has compiled this information based on the current information in its possession as at March 31, 2026, no
supplier has intimated the Company about its status as Micro and Small Enterprises or its registration with the appropriate
authority under the Micro, Small and Medium Enterprises Development Act, 2006 except as disclosed below.

A. Employee Stock Option Plan

Pursuant to the applicable requirements of the erstwhile Securities and Exchange Board of India (Employee
Stock Option Scheme and Employee Stock Purchase Scheme) Guidelines, 1999 (“the SEBI guidelines”), the
Company had framed and instituted Employee Stock Option Plan to attract, retain, motivate and reward its
employees and to enable them to participate in the growth, development and success of the Company.

B. ESOP 2025 scheme:

During the previous year, the Company formulated an Employee Stock Option Scheme titled
“Synergy Green Industries Limited ESOP Trust” (“ESOP 2025” or the “Scheme”) in accordance with
the SEBI (Share Based Employee Benefits and Sweat Equity) Regulations, 2021. Under ESOP 2025,
stock options are granted to eligible employees of the Company, including senior executives
and key managerial personnel, in line with the eligibility criteria prescribed under the Scheme.
The Scheme was approved by the shareholders through a Special Resolution passed via Postal Ballot
on April 22, 2025. Pursuant to the approval of the Scheme, stock options were granted on 01st Oct,2025.
As per the terms of the Scheme, the options vest over a period of Three (3) years from the respective dates
of grant, subject to the service condition of employee''s continued employment with the Company. Vested
options may be exercised within a maximum period of Three (3) years from the respective date of vesting.
The fair value of the stock options granted under ESOP 2025 has been determined on the respective grant dates
using the Black-Scholes Option Pricing Model, taking into account the terms and conditions of the grants. The
contractual life of the options ranges from Two (2) to Four (4) years, with a weighted average contractual life of
Three (3) years. The Scheme does not provide for any cash settlement alternatives

ESOP 2025 envisages an Synergy Green Industries Limited ESOP Trust (“ESOP Trust”) which is authorised for
secondary acquisition. During the year, ESOP trust has bought 8,000 shares (March 31, 2025:Nil shares) from
open market which is held by the ESOP Trust as at March 31, 2026.

The Company uses a graded vesting method for expense recognition, based on the respective vesting tranches
The share-based payment reserve at the end of the year amounts to ''34.68 Lakhs (previous year Nil). (Refer Note 11)
NOTE 48 : NOTE ON CHARGE CREATION

The company has registered all details of registration or satisfaction of charges with ROC, Pune within the prescribed
time from the execution of documents.

NOTE 49 : FOREIGN EXCHANGE EARNINGS

Company has earned foreign currency amounting to ''10,564.63 Lakhs (Previous Year ''9,777.44 Lakhs)

NOTE 50 : WILLFUL DEFAULTER

The company has not been declared as willful defaulter by any banks/Financial Institutions.

NOTE 51 : CRYPTO CURRENCY OR VIRTUAL CURRENCY

The company has not traded or invested in Crypto Currency or Virtual Currency

NOTE 52 : NOTE ON UNDISCLOSED INCOME IF ANY

The Company does not have any transaction 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).

Also none of the previously unrecorded income and related assets have been recorded in the books of account
during the year.

Company has not made investments in any other company, hence provisions under clause (87) of section 2 of the Act
read with the Companies (Restriction on number of Layers) Rules, 2017, are not applicable.

NOTE 54 : COMPLIANCE WITH APPROVED SCHEME OF ARRANGEMENT

The Company has not entered into any scheme of arrangement which has an accounting impact on current period.
NOTE 55 : UTILISATION OF BORROWED FUNDS AND SHARE PREMIUM.

1) No funds have been advanced or loaned or invested (either from borrowed funds or share premium or any
other sources or kind of funds) by the company to or any other person or entities, including foreign entities
(“Intermediaries”), with the understanding, whether recorded in writing or otherwise, that the Intermediary shall,
whether, 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 provide any guarantee, security or the like on behalf of
the Ultimate Beneficiaries.

2) No funds have been received by the Company from any person or entity, including foreign entities (“Funding
Parties”), with the understanding, whether recorded in writing or otherwise, that the Company shall, whether,
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 provide any guarantee, security or the like on behalf of
the Ultimate Beneficiaries.

Note 56 : Availability of books of accounts & Maintenance of backups

The Company has complied with the Rule(3) of Companies (Accounts) Rules 2014 amended on August 5, 2022, relating
to the maintenance of electronic books of account and other relevant books and paper. The Company''s books of
accounts and relevant books and papers are accessible in India at all times and backup of the accounts and other
relevant books and papers are maintained in electronic mode within India and kept in servers physically located in
India on a daily basis.

NOTE 57. CODE ON WAGES 2019

On 21 November 2025, the Government of India notified the code on wages 2019, the Industrial Relations Code,2020,
the Code on Social Security,2020, and Occupational Safety , Health and Conditions Code,2020, thereby consolidating
29 exiting labour laws.The Company has applied the revised definition of wages under the new Labour codes while
measuring employee benefit provisions. Pending the notification of the final central and state rules and related legal
guidance, the company has estimated the related obligations based on current legal interpretations and actuarial
valuations.The Company continues to monitor the finalisation of Central / State Rules and clarifications from the
Government on other aspects of the Labour Code and would provide appropriate accounting effect on the basis of
such developments as needed. Based on acturial results and ICAI guidance the impact of past service cost is shown
as exceptional item in Profit & Loss account.

---

Mar 31, 2025

NOTE 33.14. Provisions

A Provision is recognized when the Company has a present obligation (legal or constructive) as a result of a past
event and it is probable that an outflow of resources is expected to settle the obligation, in respect of which a
reliable estimate can be made.

If the effect of the time value of money is material, provisions are discounted using a current pre-tax rate that
reflects, when appropriate, the risks specific to the liability. When discounting is used, the increase in the provision
due to the passage of time is recognised as a finance cost.

a) a present obligation arising from past events, when it is not probable that an outflow of resources will be
required to settle the obligation.

b) present obligation arising from past events, when no reliable estimate is possible

c) a possible obligation arising from past events where the probability of outflow of resources is remote.

Contingent assets are neither recognized, nor disclosed except when an inflow of economic benefits is probable.
Provisions, contingent liabilities and contingent assets are reviewed at each Balance Sheet date.

NOTE 33.15. Leases

Lease is a contract that provides to the customer (lessee) the right to use an asset for a period of time in exchange
for consideration. A lessee is required to recognize assets and liabilities for all leases with a term that is greater
than 12 months, unless the underlying asset is of low value, and to recognize depreciation of leased assets
separately from interest on lease liabilities in the statement of Profit and Loss.

As a Lessee

Initial Measurement

Right to use asset

At the commencement date, the Company measures the right-of-use asset at cost. The cost of the right of-use
asset shall comprise:

• the amount of the initial measurement of the lease liability

• any lease payments made at or before the commencement date, less any lease incentives received;

• any initial direct costs incurred by the lessee; and

• an estimate of costs to be incurred by the lessee in dismantling and removing the underlying asset, restoring
the site on which it is located or restoring the underlying asset the lease, unless those costs are incurred to
produce inventories.

The lessee incurs the obligation for those costs either at the commencement date or as a consequence of
having used the underlying asset during a particular period.

Lease liability

At the commencement date, the Company measures the lease liability at the present value of the lease
payments that are not paid at that date. The lease payments are discounted using the interest rate implicit in
the lease, if that rate can be readily determined. If that rate cannot be readily determined, the Company uses
its incremental borrowing rate. Lease payments included in the measurement of the lease liability comprise the
following payments:

• fixed payments (including in substance fixed payments), less any lease incentives receivable;

• variable lease payments that depend on an index or a rate, initially measured using the index or rate as at
the commencement date;

• amounts expected to be payable by the Company under residual value guarantees;

• the exercise price of a purchase option if the Company is reasonably certain to exercise that option; and
payments of penalties for terminating the lease, if the lease term reflects the lessee exercising an option to
terminate the lease.

Subsequent measurement Right to use asset

Subsequently the Company measures the right-of-use asset at cost less any accumulated depreciation and any
Accumulated impairment losses.

Subsequently the Company measures the lease liability by:

• increasing the carrying amount to reflect interest on the lease liability at the interest rate implicit in the lease,
if that rate can be readily determined or the Company’s incremental borrowing rate.

• reducing the carrying amount to reflect the lease payments made; and

• re-measuring the carrying amount to reflect any reassessment or lease modifications or to reflect revised
in-substance fixed lease payments.

NOTE 33.16. Impairment of non-financial assets

The company assesses at each balance sheet date whether there is any indication that an asset or cash generating
unit (CGU) may be impaired. If any such indication exists, the company estimates the recoverable amount of the
asset. The recoverable amount is the higher of an asset’s or CGU’s net selling price or its value in use. Where
the carrying amount of an asset or CGU exceeds its recoverable amount, the asset is considered impaired and
is written down to its recoverable amount and the reduction is treated as impairment loss and recognized in
profit and loss account. If at any subsequent balance sheet date there is an indication that a previously assessed
impairment loss no longer exists, the recoverable amount is reassessed and the asset is reflected at recoverable
amount subject to a maximum of depreciated historical cost and is accordingly reversed in the statement of
profit and loss.

NOTE 33.17. Fair value measurement

The Company measures financial instruments at fair value if they are to be measured at fair value are accordance
with Ind AS, such as investment at each balance sheet date.

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction
between market participants at the measurement date.

The fair value measurement is based on the presumption that the transaction to sell the asset or transfer the
liability takes place either:

• In the principal market for the asset or liability OR

• In the absence of a principal market, in the most advantageous market for the asset or liability. The principal
or the most advantageous market must be accessible by the Company.

The fair value of an asset or a liability is measured using the assumptions that market participants would use
when pricing the asset or liability, assuming that market participants act in their economic best interest.

A fair value measurement of a non-financial asset takes into account a market participant’s ability to generate
economic benefits by using the asset in its highest and best use or by selling it to another market participant that
would use the asset in its highest and best use.

The Company uses valuation techniques that are appropriate in the circumstances and for which sufficient data
are available to measure fair value, maximising the use of relevant observable inputs and minimising the use of
unobservable inputs.

All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorized
within the fair value hierarchy, described as follows, based on the lowest level input that is significant to the fair
value measurement as a whole:

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

• Level 2 — Valuation techniques for which the lowest level input that is significant to the fair value measurement
is directly or indirectly observable.

• Level 3 — Valuation techniques for which the lowest level input that is significant to the fair value measurement
is unobservable.

For assets and Liabilities that are recognised in the financial statements on a recurring basis, the Company
determines whether transfers have occurred between levels in the hierarchy by reassessing categorization
(based on the lowest level input that is significant to the fair value measurement as a whole) at the end of each
reporting period.

The Company’s management determines the policies and procedures for both recurring fair value measurement,
such as derivative instruments and unquoted financial assets measured at fair value.

External valuation experts are involved for valuation of significant assets and liabilities. The involvement of
external valuation experts is decided upon annually by the management.

NOTE 33.18. Financial instruments

A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or
equity instrument of another entity.

Financial assets and financial liabilities are recognised when the Company becomes a party to the contractual
provisions of the instrument. Financial assets and liabilities are initially measured at fair value. Transaction costs
that are directly attributable to the acquisition or issue of financial assets and financial liabilities (other than
financial assets and financial liabilities at fair value through profit and loss) are added to or deducted from the
fair value measured on initial recognition of financial asset or financial liability. The transaction costs directly
attributable to the acquisition of financial assets and financial liabilities at fair value through profit and loss are
immediately recognised in the statement of profit and loss. Trade Receivables that do not contain a significant
financing component are measured at transaction price.

Effective interest method

The effective interest method is a method of calculating the amortised cost of a financial instrument and of
allocating interest income or expense over the relevant period. The effective interest rate is the rate that exactly
discounts future cash receipts or payments through the expected life of the financial instrument, or where
appropriate, a shorter period. Company amortizes all transactions cost over period of financial instrument on
straight line basis.

Financial assets

Cash and bank balances

Cash and bank balances consist of:

(i) Cash and cash equivalents - which includes cash on hand, deposits held at call with banks and other short¬
term deposits which are readily convertible into known amounts of cash, are subject to an insignificant risk
of change in value and have original maturities of less than three months. These balances with banks are
unrestricted for withdrawal and usage.

(ii) Other bank balances - which includes balances and deposits with banks that are restricted for withdrawal
and usage.

Financial assets at amortised cost

Financial assets are subsequently measured at amortised cost if these financial assets are held within a business
model whose objective is to hold these assets in order to collect contractual cash flows and the contractual
terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and
interest on the principal amount outstanding.

The Company in respect of certain equity investments (other than in subsidiaries, associates and joint ventures)
which are not held for trading has made an irrevocable election to present in other comprehensive income
subsequent changes in the fair value of such equity instruments. Such an election is made by the Company on an
instrument-by-instrument basis at the time of initial recognition of such equity investments. These investments
are held for medium or long-term purposes. The Company has chosen to designate these investments in equity
instruments as fair value through other comprehensive income as the management believes this provides a more
meaningful presentation for medium or long-term investments, than reflecting changes in fair value immediately
in the statement of profit and loss.

Financial assets not measured at amortised cost or at fair value through other comprehensive income are carried
at fair value through profit and loss.

Impairment of financial assets

Loss allowance for expected credit losses is recognised for financial assets measured at amortised cost and fair
value through other comprehensive income.

Company applies expected credit loss (ECL) model for measurement and recognition of impairment loss on the
following financial assets and credit risk exposure:

a. financial assets that are debt instruments, and are measured at amortised cost e.g., loans, debt securities,
deposits etc.

b. financial assets that are debt instruments and are measured as at FVTOCI

c. Trade receivables or any contractual right to receive cash or another financial asset that result from
transactions that are within the scope of Ind AS 115

d. Loan commitments which are not measured as at FVTPL

The company follows ‘simplified approach’ for recognition of impairment loss allowance on trade receivables or
contract revenue receivables.

The application of simplified approach does not require the company to track changes in credit risk. Rather,
it recognises impairment loss allowance based on lifetime ECLs at each reporting date, right from its initial
recognition. For recognition of impairment loss on other financial assets and risk exposure, the company
determines whether there has been a significant increase in the credit risk since initial recognition. If credit risk
has not increased significantly, 12-month ECL is used to provide for impairment loss. However, if credit risk has
increased significantly, lifetime ECL is used.

De-recognition of financial assets

The Company de-recognises a financial asset only when the contractual rights to the cash flows from the asset
expire, or it transfers the financial asset and substantially all risks and rewards of ownership of the asset to
another entity.

If the Company neither transfers nor retains substantially all the risks and rewards of ownership and continues
to control the transferred asset, the Company recognises its retained interest in the assets and an associated
liability for amounts it may have to pay.

If the Company retains substantially all the risks and rewards of ownership of a transferred financial asset, the
Company continues to recognise the financial asset and also recognises a borrowing for the proceeds received.

Financial liabilities and equity instruments

Classification as debt or equity

Financial liabilities and equity instruments issued by the Company are classified according to the substance of
the contractual arrangements entered into and the definitions of a financial liability and an equity instrument.

Equity instruments

An equity instrument is any contract that evidences a residual interest in the assets of the Company after
deducting all of its liabilities. Equity instruments are recorded at the proceeds received, net of direct issue costs.

Financial liabilities

Trade and other payables are initially measured at fair value, net of transaction costs, and are subsequently
measured at amortised cost, using the effective interest rate method where the time value of money is significant.

Interest bearing bank Loans, overdrafts and issued debt are initially measured at fair value and are subsequently
measured at amortised cost using the effective interest rate method. Any difference between the proceeds
(net of transaction costs) and the settlement or redemption of borrowings is recognised over the term of the
borrowings in the statement of profit and loss.

Fees paid on the establishment of loan facilities are recognised as transaction costs of the loan to the extent that
it is probable that some or all of the facility will be drawn down. In this case, the fee is deferred until the draw
down occurs. To the extent there is no evidence that it is probable that some or all of the facility will be drawn
down, the fee is capitalised as a prepayment for liquidity services and amortised over the period of the facility
to which it relates.

Borrowings are removed from the balance sheet when the obligation specified in the contract is discharged,
cancelled or expired. The difference between the carrying amount of a financial liability that has been extinguished
or transferred to another party and the consideration paid, including any non-cash assets transferred or liabilities
assumed, is recognised in profit or loss as other gains/(losses).

Borrowings are classified as current liabilities unless the group has an unconditional right to defer settlement
of the liability for at least 12 months after the reporting period. Where there is a breach of a material provision
of a long-term loan arrangement on or before the end of the reporting period with the effect that the liability
becomes payable on demand on the reporting date, the entity does not classify the liability as current, if the
lender agreed, after the reporting period and before the approval of the financial statements for issue, not to
demand payment as a consequence of the breach.

De-recognition of financial liabilities

The Company de-recognises financial liabilities when, and only when, the Company’s obligations are discharged,
cancelled or they expire.

Derivative financial instruments

In the ordinary course of business, the Company uses certain derivative financial instruments to reduce business
risks which arise from its exposure to foreign exchange and interest rate fluctuations. The instruments are confined
principally to cross currency swaps & interest swap. The instruments are employed as hedges of transactions
included in the financial statements.

Derivatives are initially accounted for and measured at fair value on the date the derivative contract is entered
into and are subsequently remeasured to their fair value at the end of each reporting period.

Note: 33.19. Earnings per share

Basic earnings per share are calculated by dividing the net profit or loss for the period attributable to equity
shareholders by the weighted average number of equities shares outstanding during the period as reduced
by number of shares bought back, if any. The weighted average number of equities 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 equities 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.

Note: 33.20. Standards issued but not yet effective and amendments

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 amendments to
the existing standard IND AS 21: The Effects of changes in Foreign Exchange rates applicable to the Company
w.e.f. April 01, 2025 to address concerns about currency exchangeability and provide guidance on estimating
spot exchange rates when a currency is not exchangeable. There is no significant impact on the Company in the
current year.

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. For the year ended March 31, 2025,
MCA has notified Ind AS - 117 Insurance Contracts and amendments to Ind AS 116 - Leases, relating to sale
and leaseback transactions, applicable to the Company w.e.f. April 1, 2024. The Company has reviewed the new
pronouncements and based on its evaluation has determined that it does not have any significant impact in its
financial statements.

Note A : EPCG License towards duty saved and interest thereon

i Authorisation Holder shall be under obligation to export items as per details mentioned in this Authorisation.
The Export Obligation shall be 6 times of the duty saved on import of Capital Goods on FOB basis within a
period of 6 years (Block Years: 1st to 4th year (1st Block) - 50% and 5th to 6th year (2nd Block)- 50%) and shall
be reckoned from the date of issue of this Authorisation.

ii Authorization Holder shall also be required to maintain the past average level of exports [achieved by the
EPCG applicant in the preceding three licensing years] for the same and similar products, as endorsed
on this Authorisation for the entire export obligation period, including extended period, if any. This annual
average Export Obligation is in addition to the FOB value of exports mentioned in Point i above.

iii EO shall be fulfilled by the authorisation holder through export of goods which are manufactured by him
or his supporting manufacturer / services rendered by him, for which the EPCG authorisation has been
granted.

iv Authorization Holder may discharge the export obligation by way of direct exports as well as through third
party exports. Exports to SEZ units/Supplies to developers/co-developers irrespective of currency of
realisation would also be counted for discharge of Export Obligation. Deemed exports as specified under
Para 7.02 (a), (b), (e), (f) and (h) of the Foreign Trade Policy 2015-2020 shall also be counted towards fulfilment
of Export Obligation.

v Authorization Holder shall mention this EPCG Authorisation number and date on all export documents
of shipments for consideration of exports towards EO fulfilment of the EPCG Authorisation. In case, the
Authorization Holder has supporting manufacturer(s), the name of the supporting manufacturer(s) shall also
be indicated in Shipping Bills.

Note B : PSI Scheme 2007

Commitments mentioned under point ii & iii above are based on commitments mentioned in Eligibility certificate
issued by the authority. This includes unrestricted access to factory for inspection of books and register etc.,
employment of employees and salaries based on conditions mentioned in certificate, submission of documents,
forms etc. Also

i not to transfer/shift/lease/hire with or without consideration of fixed assets,

ii diuse/keep assets without write of, shift or close unit from existing location

iii Change in constitution or management of company

iv Company should not get merged or amalgamate with other company.

Note : 36 Employee Benefits
i. Defined Contribution Plans:

a. Provident fund:

The Company provides provident fund benefits for eligible employees as per applicable regulations
wherein both employees and the Company make monthly contributions at a specified percentage
of the eligible employee''s salary. Contributions under such schemes are made to state managed
funds. Benefits provided under plans wherein contributions are made to state managed funds and the
Company does not have a future obligation to make good short fall if any, are treated as a defined
contribution plan.

Amount of ^6372 Lakhs in FY: 2024-25 (^57.86 lakhs in FY: 2023-24) is recognised as an expense and
included in Employees benefits expense (Note-25 in the Statement of Profit and Loss.)

Significant estimates

j) Principal actuarial assumptions at the balance sheet date (expressed as weighted averages)

1 Discount rate as at 31-03-2025- 6.70% (7.20% in FY: 2023-24)

2 Expected return on plan assets as at 31-03-2025 - 7.20% (7.50% in FY: 2023-24)

3 Salary Increment rate as at 31-03-2025 Staff 10.00% & Directors 6% (Staff 9.00% & Directors 5% in FY:
2023-24)

4 Attrition rate as at 31-03-2025: 8.64% (10.10% in FY: 2023-24)

5 The estimates of future salary increase considered in actuarial valuation takes into account inflation,
seniority, promotion and other relevant factors, such as supply and demand in the employment
market.

k) General descriptions of defined plans:

1 Gratuity Plan:

The Company operates gratuity plan wherein every employee is entitled to the benefit equivalent to
fifteen days salary last drawn for each completed year of service. The same is payable on termination
of service or retirement whichever is earlier. The benefit vests after five years of continuous service.

2 Company''s Pension Plan:

The company operates a Pension Scheme for specified ex-employees through a Employees family
pension Scheme of 1971 notified by government. wherein the beneficiaries are entitled to defined
monthly pension.

l) The Company has contributed ^15.42 Lacs to its gratuity fund in 2025.

m) Sensitivity analysis

Sensitivity analysis indicates the influence of a reasonable change in certain significant assumptions
on the out come of the Present value of obligation (PVO) and aids in understanding the uncertainty of
reported amounts.

Risk Exposure:

Provision of a defined benefit scheme poses certain risks, some of which are detailed hereunder, as companies
take on uncertain long term obligations to make future benefit payments.

1. Liability Risk

a. Asset liability Mismatch Risk

Risk which arises if there is a mismatch in the duration of the assets relative to the liabilities. By matching
duration with the defined benefit liabilities, the company is successfully able to neutralize valuation
swings caused by interest rate movements. Hence companies are encouraged to adopt asset-liability
management.

b. Discount Rate Risk

Variations in the discount rate used to compute the present value of the liabilities may seem small, but
in practise can have a significant impact on the defined benefit liabilities

c. Future Salary Escalation and Inflation Risk

Since price inflation and salary growth are linked economically, they are combined for disclosure
purposes. Rising salaries will often result in higher future defined benefit payments resulting in a higher
present value of liabilities especially unexpected salary increases provided at management''s discretion
may lead to uncertainties in estimating this increasing risk.

2. Asset Risk

All plan assets are maintained in a trust fund managed by a public sector insurer viz; Life Insurance
Corporation of India

The company has opted for a traditional fund wherein all assets are invested primarily in risk averse markets.
The company has no control over the management of funds but this option provides a high level of safety
for the total corpus. A single account is maintained for both the investment and claim settlement and hence
100% liquidity is ensured. Also interest rate and inflation risk are taken care of.

The fair value of the financial assets and liabilities are included at the amount at which the instrument that
would be received to sell an asset or paid to transfer liability in an orderly transaction between market
participants at the measurement date.

The carrying amounts of financial assets and liabilities measured at amortised cost are a reasonable
approximation of their fair values.

Fair value hierarchy

This section explains the judgements and estimates made in determining the fair values of the financial
instruments that are (a) recognised and measured at fair value and (b) measured at amortised cost and for
which fair values are disclosed in the financial statements. To provide an indication about the reliability of the
inputs used in determining fair value, the Company has classified its financial instruments into three levels
prescribed under the accounting standard. An explanation of each level is n Level 1 — Quoted (unadjusted)
market prices in active markets for identical assets or liabilities.

Level 2 — Valuation techniques for which the lowest level input that is significant to the fair value measurement
is directly or indirectly observable.

Level 3 — Valuation techniques for which the lowest level input that is significant to the fair value measurement
is unobservable.

Company’s principal financial liabilities, comprise borrowings, trade and other payables, and other financial
liabilities. The main purpose of these financial liabilities is to finance company''s operations. Company’s principal
financial assets include trade and other receivables, investments, cash and cash equivalents and other bank
balances that are derived directly from its operations.

Company is exposed to certain risks which includes market risk, credit risk and liquidity risk.

Risk Management committee of the company oversees the management of these risks. This committee
is accountable to audit committee of the board. This process provides assurance to the company''s senior
management that company''s financial risk- taking activities are governed by the appropriate policies and
procedures and that financial risks are identified, measured and managed in accordance with company''s policies
and risk appetite.

The policies for managing these risks are summarised below.

1) 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 from its financing activities, foreign exchange transactions and other
financial instruments.

Company uses expected credit loss model for assessing and providing for credit risk.

a) Trade receivable

Customer credit risk is managed through the company’s policy, procedures and control relating to
customer credit risk management. Credit quality of a customer is assessed based on an extensive credit
rating scorecard and individual credit limits are defined in accordance with this assessment. Outstanding
customer receivables are regularly monitored. Trade receivables are non interest bearing and are
generally on, 30 days to 120 days credit terms. The company has concentration of risk as customer
base is not widely distributed, almost 90% of total revenue is contributed by top six customers both
economically and geographically.

Credit risk from balances with banks and financial institutions is managed by the company’s CFO
in accordance with company’s policy. Investments of surplus funds are made only in fixed deposits
and within credit limits assigned to each counterparty. Company monitors rating, credit spreads and
financial strength of its counter parties. Based on ongoing assessment company adjust it''s exposure to
various counterparties. Company''s maximum exposure to credit risk for the components of statement
of financial position is the carrying amount.

2) Liquidity risk

Liquidity risk is the risk that the company may not be able to meet it''s present and future cash flow and
collateral obligations without incurring unacceptable losses. Company''s objective is to, at all time maintain
optimum levels of liquidity to meet it''s cash and collateral requirements. Company closely monitors its
liquidity position and deploys a robust cash management system. It maintains adequate sources of financing
including overdraft, debt from domestic banks at optimised cost.

The table summarises the maturity profile of company''s financial liabilities based on contractual undiscounted
payments

3) Market Risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of
changes in market prices. Market risk comprises three types of risk interest rate risk, currency risk and other
price risk such as equity price risk and commodity risk. Financial instruments affected by market risk include
loans and borrowings, deposits and investments. Company''s activities expose it to variety of financial risks,
including effect of changes in foreign currency exchange rate and interest rate.

a) Interest rate risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate
because of changes in market interest rates. Company manages its interest rate risk by having a
balanced portfolio of fixed and variable rate loans and borrowings. The company does not account
for any fixed-rate financial assets or financial liabilities at fair value through profit or loss. Therefore, a
change in interest rates at the reporting date would not affect profit or loss.

b) Foreign Currency Exposure Risk

Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate
because of changes in foreign exchange rates. The Company’s exposure to the risk of changes in foreign
exchange rates relates primarily to the Company’s operating activities (when revenue, expense, assets
& liabilities is denominated in a foreign currency).

The company manages its foreign currency risk by mapping receivable against payables in order to
minimize currency fluctuation impact.

Note 39: Capital management
(a) Risk management

The company''s objective when managing capital are to

- Safeguard it''s ability to continue as a going concern, so that it can continue to provide returns for
shareholders and benefits for other stakeholders, and

- Maintain an optimal capital structure to reduce the cost of capital.

In order to maintain or adjust the capital structure, the company may adjust the amount of dividends paid to
shareholders, return capital to shareholders, issue new shares or sell assets to reduce debt. Consistent with
others in the industry, the company monitors capital on the basis of the following Gearing ratio: Net debt
(Total borrowings net of cash and cash equivalents) divided by Total ''equity'' (as shown in the balance
sheet, including non-controlling interests).

Note 41: Note on Corporate Social Responsibility (CSR)

a) CSR required to be spent by the Company as per Section 135 of the Companies Act 2013 read with schedule
VII thereof during the year is ^12.94 Lacs (Previous Year ?NiL)

b) Expenditure related to CSR is ? 14.50 Lacs (Previous year ?NiL)

c) CSR Amount carried forward (i.e. Excess spent pertaining to FY 2022-2023) is ^0.39 Lacs and CSR Amount
brought forward is ^1.95 Lacs for current year.

Details of Amount spent towards CSR is given below:

The Company at its right issue committee meeting held on 12th October 2024 has allotted 14,13,000 rights equity
shares of Face value of ? 10 each issued at a premium of ^315 per share, total price of ^325 per share. Company
has raised ^4592.25 Lakhs through this right issue. On 12th October 2024, allotment process was completed.
Accordingly, as per Ind AS-33 Earnings per Share, E.P.S. of previous reporting periods are restated.

Note 43: Rights Issue of Equity Shares

a) The Company at its right issue committee meeting held on 12th October 2024 has allotted 14,13,000 rights
equity shares of Face value of ? 10 each issued at a premium of ^315 per share, total price of ^325 per share.
Company has raised ^4592.25 Lakhs through this right issue. On 12th October 2024, allotment process was
completed.

Accordingly, as per Ind AS-33 Earnings per Share, E.P.S. of previous reporting periods are restated.

Note 46: Dues to Micro, Small, Medium Enterprises

The Company has compiled this information based on the current information in its possession as at March 31,
2025, no supplier has intimated the Company about its status as Micro and Small Enterprises or its registration
with the appropriate authority under the Micro, Small and Medium Enterprises Development Act, 2006 except
as disclosed below.

Note 47 : Note on Charge Creation

The company has registered all details of registration or satisfaction of charges with ROC, Pune within the
prescribed time from the execution of documents, except in two cases were charge creation was delayed by 27
days for 32 crore & 23 days for 40 crore charge due to delay in receipt of legal documents from the bank. These
charges were registered immediately on receipt of legal documents from the bank.

Note 48 : Foreign Exchange Earnings

Company has earned foreign currency amounting to ? 9777.44 Lacs (Previous Year ? 3713.33 Lacs)

Note 49 : Willful Defaulter

The company has not been declared as willful defaulter by any banks/Financial Institutions.

Note 50 : Crypto Currency or Virtual Currency

The company has not traded or invested in Crypto Currency or Virtual Currency
Note 51 : Note on Undisclosed Income If any

The Company does not have any transaction 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).

Also none of the previously unrecorded income and related assets have been recorded in the books of account
during the year.

Note 52 : Note on layers of Companies

Company has not made investments in any other company, hence provisions under clause (87) of section 2 of the
Act read with the Companies (Restriction on number of Layers) Rules, 2017, are not applicable.

Note 53 : Compliance with approved scheme of arrangement

The Company has not entered into any scheme of arrangement which has an accounting impact on current
period.

Note 54 : Utilisation of borrowed funds and share premium.

1) No funds have been advanced or loaned or invested (either from borrowed funds or share premium or any
other sources or kind of funds) by the company to or any other person or entities, including foreign entities
(“Intermediaries”), with the understanding, whether recorded in writing or otherwise, that the Intermediary
shall, whether, 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 provide any guarantee, security or
the like on behalf of the Ultimate Beneficiaries.

2) No funds have been received by the Company from any person or entity, including foreign entities (“Funding
Parties”), with the understanding, whether recorded in writing or otherwise, that the Company shall, whether,
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 provide any guarantee, security or the like on behalf
of the Ultimate Beneficiaries.

Note 55 : Availability of books of accounts & Maintenance of backups

The Company has complied with the Rule(3) of Companies (Accounts) Rules 2014 amended on August 5, 2022,
relating to the maintenance of electronic books of account and other relevant books and paper The Company’s
books of accounts and relevant books and papers are accessible in India at all times and backup of the accounts
and other relevant books and papers are maintained in electronic mode within India and kept in servers physically
located in India on a daily basis.

Note 56 : Note on regrouping of figures

Figures of the previous year have been regrouped wherever necessary.

As per our report of even date For and on behalf of the board of directors of

For M/s DAB & ASSOCIATES SYNERGY GREEN INDUSTRIES LIMITED

Chartered Accountants
Firm Registration No. 101119W

Sachin R. Shirgaokar Sohan S. Shirgaokar

Chairman & Managing Director Jt. Managing Director

Guruprasad Bobhate DIN:00254442 DIN:00217631

Partner

Membership No.198670

Place: Kolhapur Pratik P. Dukande Nilesh M. Mankar

Date: 9th May 2025 Chief Financial Officer Company Secretary

---

Mar 31, 2024

Note : 34 Contingent liabilities Other money for which the company is contingently liable for		'' in Lacs
Particulars	31 March 2024	31 March 2023
i) Excise & Service Tax [Amount paid under protest '' 9.39 Lacs (Previous Year '' 9.39 Lacs)]	12.34	12.34
ii) Goods & Service Tax [Amount paid under protest '' 26.90 Lacs.(Previous Year '' 26.90 Lacs)]	534.12	534.12
Total	546.46	546.46
Note : 35 Commitments		'' in Lacs
Particulars	31 March 2024	31 March 2023
a) Estimated amount of contracts remaining to be executed on capital account and not provided for (net of capital advances) (b)Other Commitments	528.72	244.18
i) EPCG License towards duty saved and interest thereon (Refer Note A below)	340.47	335.99
ii) PSI Scheme 2007 towards exemption of stamp duty on mortgage (Refer Note B below)	19.91	18.90
iii) PSI Scheme 2007 towards exemption of Electricity duty for a period of 15 years (Refer Note B below)	2,495.65	2,017.97
Total	3,384.75	2,617.04

Note A : EPCG License towards duty saved and interest thereon

i Authorisation Holder shall be under obligation to export items as per details mentioned in this Authorisation. The Export Obligation shall be 6 times of the duty saved on import of Capital Goods on FOB basis within a period of 6 years (Block Years: 1st to 4th year (1st Block) - 50% and 5th to 6th year (2nd Block)- 50%) and shall be reckoned from the date of issue of this Authorisation.

ii Authorization Holder shall also be required to maintain the past average level of exports [achieved by the EPCG applicant in the preceding three licensing years] for the same and similar products, as endorsed on this Authorisation for the entire export obligation period, including extended period, if any. This annual average Export Obligation is in addition to the FOB value of exports mentioned in Point i above.

iii EO shall be fulfilled by the authorisation holder through export of goods which are manufactured by him or his supporting manufacturer / services rendered by him, for which the EPCG authorisation has been granted.

iv Authorization Holder may discharge the export obligation by way of direct exports as well as through third party exports. Exports to SEZ units/Supplies to developers/co-developers irrespective of currency of realisation would also be counted for discharge of Export Obligation. Deemed exports as specified under Para 7.02 (a), (b), (e), (f) and (h) of the Foreign Trade Policy 2015-2020 shall also be counted towards fulfilment of Export Obligation.

v Authorization Holder shall mention this EPCG Authorisation number and date on all export documents of shipments for consideration of exports towards EO fulfilment of the EPCG Authorisation. In case, the Authorization Holder has supporting manufacturer(s), the name of the supporting manufacturer(s) shall also be indicated in Shipping Bills.

Note B : PSI Scheme 2007

Commitments mentioned under point ii & iii above are based on commitments mentioned in Eligibility certificate issued by the

authority. This includes unrestricted access to factory for inspection of books and register etc., employment of employees and

salaries based on conditions mentioned in certificate, submission of documents, forms etc. Also

i not to transfer/shift/lease/hire with or without consideration of fixed assets,

ii diuse/keep assets without write of, shift or close unit from existing location

iii Change in constitution or management of company

iv Company should not get merged or amalgamate with other company.

Note : 36 Employee Benefits:

i. Defined Contribution Plans:

a. Provident fund:

The Company provides provident fund benefits for eligible employees as per applicable regulations wherein both employees and the Company make monthly contributions at a specified percentage of the eligible employee’s salary. Contributions under such schemes are made to state managed funds. Benefits provided under plans wherein contributions are made to state managed funds and the Company does not have a future obligation to make good short fall if any, are treated as a defined contribution plan.

Amount of '' 57.86 Lakhs in F.Y: 2023-24 (''55.34 lakhs in F.Y: 2022-23) is recognised as an expense and included in Employees benefits expense (Note-25 in the Statement of Profit and Loss.)

j) Principal actuarial assumptions at the balance sheet date (expressed as weighted averages)

1 Discount rate as at 31-03-2024 - 7.20% (7.50% in F.Y: 2022-23)

2 Expected return on plan assets as at 31-03-2024 - 7.50% (7.10% in F.Y: 2022-23)

3 Salary Increment rate as at 31-03-2024 Staff 9.00% & Directors 5% (Staff 7.00% & Directors 5% in F.Y: 2022-23)

4 Attrition rate as at 31-03-2024: 10.10% (9.43% in F.Y: 2022-23)

5 The estimates of future salary increase considered in actuarial valuation takes into account inflation, seniority,

promotion and other relevant factors, such as supply and demand in the employment market.

k) General descriptions of defined plans:

1 Gratuity Plan:

The Company operates gratuity plan wherein every employee is entitled to the benefit equivalent to fifteen days salary last drawn for each completed year of service. The same is payable on termination of service or retirement whichever is earlier. The benefit vests after five years of continuous service.

2 Company’s Pension Plan:

The company operates a Pension Scheme for specified ex-employees through a Employees family pension Scheme of 1971 notified by goverment. wherein the beneficiaries are entitled to defined monthly pension.

l) The Company has contributed '' 29,77,862 to its gratuity fund in 2024. The Company has informed me that it intends to contribute '' 30,00,000 towards its gratuity fund in 2023.

m) Sensitivity analysis

Sensitivity analysis indicates the influence of a reasonable change in certain significant assumptions on the out come of the Present value of obligation (PVO) and aids in understanding the uncertainty of reported amounts. Sensitivity analysis is done by varying one parameter at a time and studying its impactt '' in Lacs

Average Duration

Weighted average duration of the plan (based on discounted cash flows using mortality, withdrawal rate and interest rate) is 13.08 years.

The above cashflows have been arrived at based on the demographic and financial assumptions mentioned earlier in section

Risk Exposure:

Provision of a defined benefit scheme poses certain risks, some of which are detailed hereunder, as companies take on uncertain long term obligations to make future benefit payments.

1. Liability Risk

a. Asset liability Mismatch Risk

Risk which arises if there is a mismatch in the duration of the assets relative to the liabilities. By matching duration with the defined benefit liabilities, the company is successfully able to neutralize valuation swings caused by interest rate movements. Hence companies are encouraged to adopt asset-liability management.

b. Discount Rate Risk

Variations in the discount rate used to compute the present value of the liabilities may seem small, but in practise can have a significant impact on the defined benefit liabilities

c. Future Salary Escalation and Inflation Risk

Since price inflation and salary growth are linked economically, they are combined for disclosure purposes. Rising salaries will often result in higher future defined benefit payments resulting in a higher present value of liabilities especially unexpected salary increases provided at management’s discretion may lead to uncertainities in estimating this increasing risk.

2. Asset Risk

All plan assets are maintained in a trust fund managed by a public sector insurer viz; Life Insurance Corporation of India

The company has opted for a traditional fund wherein all assets are invested primarily in risk averse markets. The company has no control over the management of funds but this option provides a high level of safety for the total corpus. A single account is maintained for both the investment and claim settlement and hence 100% liquidity is ensured. Also interest rate and inflation risk are taken care of.

The fair value of the financial assets and liabilities are included at the amount at which the instrument that would be received to sell an asset or paid to transfer liability in an orderly transaction between market participants at the measurement date.

The carrying amounts of financial assets and liabilities measured at amortised cost are a reasonable approximation of their fair values.

Fair value hierarchy

This section explains the judgements and estimates made in determining the fair values of the financial instruments that are (a) recognised and measured at fair value and (b) measured at amortised cost and for which fair values are disclosed in the financial statements. To provide an indication about the reliability of the inputs used in determining fair value, the Company has classified its financial instruments into three levels prescribed under the accounting standard. An explanation of each level is

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

• Level 2 — Valuation techniques for which the lowest level input that is significant to the fair value measurement is directly or indirectly observable.

• Level 3 — Valuation techniques for which the lowest level input that is significant to the fair value measurement is unobservable.

Note 38 A: Financial risk management policy and objectives

Company’s principal financial liabilities, comprise borrowings, trade and other payables, and other financial liabilities. The main purpose of these financial liabilities is to finance company’s operations. Company’s principal financial assets include trade and other receivables, investments, cash and cash equivalents and other bank balances that are derived directly from its operations.

Company is exposed to certain risks which includes market risk, credit risk and liquidity risk.

Risk Management committee of the company oversees the management of these risks. This committee is accountable to audit committee of the board. This process provides assurance to the company’s senior management that company’s financial risktaking activities are governed by the appropriate policies and procedures and that financial risks are identified, measured and managed in accordance with company’s policies and risk appetite.

The policies for managing these risks are summarised below.

1) 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 from its financing activities, foreign exchange transactions and other financial instruments.

Company uses expected credit loss model for assessing and providing for credit risk.

a) Trade receivable

Customer credit risk is managed through the company’s policy, procedures and control relating to customer credit risk management. Credit quality of a customer is assessed based on an extensive credit rating scorecard and individual credit limits are defined in accordance with this assessment. Outstanding customer receivables are regularly monitored. Trade receivables are non interest bearing and are generally on, 30 days to 120 days credit terms. The company has concentration of risk as customer base is not widely distributed, almost 90% of total revenue is contributed by top six customers both economically and geographically.

c) Financial instruments and cash deposits

Credit risk from balances with banks and financial institutions is managed by the company’s CFO in accordance with company’s policy. Investments of surplus funds are made only in fixed deposits and within credit limits assigned to each counterparty. Company monitors rating, credit spreads and financial strength of its counter parties. Based on ongoing assessment company adjust it’s exposure to various counterparties. Company’s maximum exposure to credit risk for the components of statement of financial position is the carrying amount.

2) Liquidity risk

Liquidity risk is the risk that the company may not be able to meet it’s present and future cash flow and collateral obligations without incurring unacceptable losses. Company’s objective is to, at all time maintain optimum levels of liquidity to meet it’s cash and collateral requirements. Company closely monitors its liquidity position and deploys a robust cash management system. It maintains adequate sources of financing including overdraft, debt from domestic banks at optimised cost.

3) Market Risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises three types of risk interest rate risk, currency risk and other price risk such as equity price risk and commodity risk. Financial instruments affected by market risk include loans and borrowings, deposits and investments. Company’s activities expose it to variety of financial risks, including effect of changes in foreign currency exchange rate and interest rate.

a) Interest rate risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. Company manages its interest rate risk by having a balanced portfolio of fixed and variable rate loans and borrowings. The company does not account for any fixed-rate financial assets or financial liabilities at fair value through profit or loss. Therefore, a change in interest rates at the reporting date would not affect profit or loss.

b) Foreign Currency Exposure Risk

Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate because of changes in foreign exchange rates. The Company’s exposure to the risk of changes in foreign exchange rates relates primarily to the Company’s operating activities (when revenue, expense, assets & liabilities is denominated in a foreign currency).

The company manages its foreign currency risk by mapping receive bale against payables in order to minimize currency fluctuation impact.

(a) Risk management

The company’s objective when managing capital are to

- safeguard it’s ability to continue as a going concern, so that it can continue to provide returns for shareholders and benefits for other stakeholders, and

- Maintain an optimal capital structure to reduce the cost of capital.

In order to maintain or adjust the capital structure, the company may adjust the amount of dividends paid to shareholders, return capital to shareholders, issue new shares or sell assets to reduce debt. Consistent with others in the industry, the company monitors capital on the basis of the following Gearing ratio: Net debt (Total borrowings net of cash and cash equivalents) divided by Total ‘equity’ (as shown in the balance sheet, including non-controlling interests).

(b) Dividend

The Board of Directors have proposed & recommended Preference Dividend of Rs.10/- per Preference Shares of Rs.100/-each on 10% Redeemable Cumulative Preference Shares per year for last 5 years i.e. from F.Y. 2019-20 to F.Y. 2023-24, subject to approval of members.

For the year ended March 31, 2024 the Board of Directors has not proposed equity dividend on equity share capital (Previous year Nil).

Note 44: Segment reporting

Company operates in single operating segment of manufaturing of castings. The executive management committee monitors the operating results of entire Company as a whole for the purpose of making decisions about resource allocation and performance assessment.

Note 46 : Note on Charge Creation

The company has registered all Details of Registration or satisfaction of charges with ROC within the prescribed time from the execution of document.

Note 47 : Foreign Exchange Earnings

Company has earned foreign currency amounting to '' 3713.33 Lacs (Previous Year '' 2933.39 Lacs)

Note 48 : Willful Defaulter

The company has not been declared as willful defaulter by any banks/Financial Institutions.

Note 49 : Crypto Currency or Virtual Currency

The company has not traded or invested in Crypto Currency or Virtual Currency.

Note 50 : Note on Undisclosed Income If any

The Company does not have any transaction 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).

Also none of the previously unrecorded income and related assets have been recorded in the books of account during the year. Note 51 : Note on layers of Companies

Company does not have any investment, hence provisions under clause (87) of section 2 of the Act read with the Companies (Restriction on number of Layers) Rules, 2017, are not applicable.

Note 52 : Compliance with approved scheme of arrangement

The Company has not entered into any scheme of arrangement which has an accounting impact on current period.

1) No funds have been advanced or loaned or invested (either from borrowed funds or share premium or any other sources or kind of funds) by the company to or any other person or entities, including foreign entities (“Intermediaries”), with the understanding, whether recorded in writing or otherwise, that the Intermediary shall, whether, 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 provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

2) No funds have been received by the Company from any person or entity, including foreign entities (“Funding Parties”), with the understanding, whether recorded in writing or otherwise, that the Company shall, whether, 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 provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

Note 54 : Availability of books of accounts & Maintenance of backups

The Company has complied with the Rule(3) of Companies (Accounts) Rules 2014 amended on August 5, 2022, relating to the maintenance of electronic books of account and other relevant books and paper. The Company’s books of accounts and relevant books and papers are accessible in India at all times and backup of the accounts and other relevant books and papers are maintained in electronic mode within India and kept in servers physically located in India on a daily basis.

Note 55 : Note on regrouping of figures

Figures of the previous year have been regrouped wherever necessary.

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Mar 31, 2018

Notes to Financial Statements for the year ended on 31-03-2018

NOTE A-1: CORPORATE INFORMATION

Incorporated as on 08-10-2010, Synergy Green Industries Ltd., is a subsidiary of S.B.Reshellers Pvt.Ltd. The Company manufactures Heavy Cast Iron(CI) and SG Iron Castings required for Wind Turbines, Machine Tools and for Pumps & Valves. The Works is situated at Kagal - Hatkanangale Five Star Industrial Area, Kolhapur - 416216 and at Gokulshirgaon MIDC, Kolhapur.

NOTE A-2: BASIS OF PREPARATION

The financial statements of the Company have been prepared in accordance with generally accepted accounting principles in India (Indian GAAP). The Company has prepared these financial statements to comply in all material respects with the accounting standards notified under the Companies (Accounting Standards) Rules, 2006, as amended, and the relevant provisions of The Companies Act,2013. The financial statements have been prepared on an accrual basis and under the historical cost convention. The financial statements have been presented as per requirements of Schedule III to The Companies Act, 2013.

Note B: OTHER INFORMATION AND DISCLOSURES

1 Contingent Liabilities & Commitments:

a. Contingent Liabilities not provided for

i) Disputed Income Tax Liability

a) Matter relating to A. Y. 2012-13 is under Appeal: Total amount Rs.2,02,500.00 out

b) Matter relating to A. Y. 2016-17 is under Appeal: TDS amount of Rs.5,52,988.00 out ) of which paid under protest Rs. 1,10,600.00 (Previous Year Nil, paid under protest

c) Matter relating to A. Y. 2017-18 is under Appeal: TDS amount of Rs. 10,93,113.00

Matter relating to A. Y. 2017-18 is under Appeal: TDS amount of Rs. 3,88,861.00 ) out of which paid under protest Rs. 77,800.00 (Previous Year Nil, paid under

ii) Disputed Excise and Service Tax Liability

a) Matter relating to F. Y. 2012-13 and 2013-14 is under Appeal : Total amount Rs.

iii) Claims against the Company not acknowledged as debts: Nil (Previous Year Nil)

iv) Guarantees : Nil (Previous Year Nil)

b. Commitments

i) Estimated amount of contracts remaining to be executed on capital account and not

iii) Others :

a. Commitments under EPCG license towards duty saved and Interest thereon for Rs.

b. Commitments under PSI Scheme 2007 towards exemption of stamp duty on mortgage for Rs. 13,83,750/- (Previous Year Rs. 12,82,500/-)

c. Commitments under PSI Scheme 2007 towards exemption of Electricity Duty for a period of 15 years for Rs. 3,93,91,483/- (Previous Year Rs. 2,97,93,433/-)

2 The amount due to Micro and Small Enterprises as defined in the, “The Micro, Small and Medium Enterprises Development Act, 2006” has been determined to the extent such parties have been identyfied on the basis of information available with the Company. The disclosures relating to Micro and Small Enterprises as at 31.03.2018 are as under;

3 Borrowing Cost capitalised during the year Rs. Nil (Previous Year Rs.Nil)

4 Disclosure as per requirement of AS 15:

The Company has implemented Revised Accounting Standard-15 on Employee Benefits and made the Defined Contribution plan

Contribution to Defined Contribution plan, recognised and charged off to Statement of Profit & Loss for the year as under :

Gratuity

In accordance with the applicable laws, the Company provides for gratuity, a defined retirement plan (Gratuity plan) covering all staff, workers, and officers. The Gratuity Plan provides for, at retirement or termination of employment, an amount based on the respective employee’s last drawn salary and the years of employment with the company. The Gratuity Scheme is not entirely funded, so appropriate liability as required under AS 15 (revised) is being provided in the balance sheet.

5. Segment Reporting

The Company has only one reportable segment viz: Castings. Hence reporting under Accounting Standard - 17 is not applicable.

6. Operating Leases

a. The Company has taken on lease the premises situated at Plot no. C-16, Gokulshirgaon MIDC, Kolhapur-416234.

b. Accounting Policy adopted in respect of initial Direct Cost: Initial Direct Cost is charged to Profit and Loss Account in the year in which incurred.

7. Figures for previous year has been regrouped / recast/ rearranged wherever necessary.