1 COMPANY INFORMATION
Ahasolar Technologies Limited is engaged in the business of CleanTech enabling Energy Transition through Digital Transformation and thereby empowering stakeholders to adopt renewable energy. Our Company does this through multiple digital solutions and advisory in the field of renewable energy. Our Company is a DPIIT recognised startup and registered vide registration no. DIPP34701. The core idea of AHAsolar to work in the space of Climate Change, Renewable and Digital space.“Our primary focus in renewable energy has been in solar industry and to cater it, we developed an AI based intelligent Solar Digital Platform. We have developed Software as a Service (SaaS) products for solar companies to streamline the processes, design PV, do project management and monitor generation alongwith an integrated Marketplace to connect the demand & supply digitally. Apart from this, another SaaS product is for the governments to implement the distributed renewable programme in their services area.
As at March 31, 2024, Directors owned 30% of the Company’s equity share capital and has the ability to control its operating and financial policies. The Company’s registered office is in Ahmedabad, Gujarat, having a Corporate Identification No. (CIN) L74999GJ2017PLC098479.
2 SIGNIFICANT ACCOUNTING POLICIES
i. Basis for Accounting
These financial statements are prepared in accordance with Indian Generally Accepted Accounting Principles (GAAP) under the historical cost convention on accrual basis and comply with the relevant provisions of the Companies Act, 2013 (‘the Act’). GAAP comprises mandatory accounting standards as prescribed under Section 133 of the Act read with Rule 7 of the Companies (Accounts) Rules, 2014 read with Companies (Accounting Standards) Amendment Rule, 2016 applicable with effect from 1 April 2016 and other generally accepted accounting principles. Accounting policies have been consistently applied except where a newly-issued accounting standard is initially adopted or a revision to an existing accounting standard requires a change in the accounting policy hitherto in use. The financial statements are presented in Indian rupees in lakhs.
ii. Use of Estimates
The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Application of accounting policies that require critical accounting estimates involving complex and subjective judgments and the use of assumptions in these financial statements are, useful lives of Property, plant and equipment, Provisions and contingencies, Income tax and deferred tax, Measurement of defined employee benefit obligations. The estimates & assumptions used in these financial statements are based upon management’s evaluation of relevant events & circumstances of the data of the financial statements. Actual results could differ from these estimates. Estimates and underlying assumptions are reviewed on an ongoing basis, any revision to accounting estimates is recognized prospectively in current and future periods.
iii Current versus non-current classication
The Schedule III to the Act requires assets and liabilities to be classified as either Current or Noncurrent.
An asset is treated as current when it is:
- Expected to be realized or intended to be sold or consumed in normal operating cycle;
- Held primarily for the purpose of trading;
- Expected to be realized within twelve months after the reporting period, or
- Cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at least twelve months after the reporting period.
All other assets are classified as non-current.
A liability is current when:
- It is expected to be settled in normal operating cycle; or
- It is held primarily for the purpose of trading; or
- It is due to be settled within twelve months after the reporting period; or
- There is no unconditional right to defer the settlement of the liability for at least twelve months after the reporting period.
All other liabilities are classified as non-current.
Deferred tax assets and liabilities are classified as non-current assets and liabilities respectively.
The operating cycle is the time between the acquisition of assets for processing and their realisation in cash or cash equivalents. The Company has identi ed twelve months as its operating cycle.
iv Revenue Recognition
Sales are recorded net of trade discounts, rebates, Goods and Services Tax (GST) as applicable. Revenue from sale of products is recognised when all the significant risks and rewards of ownership of the goods have passed to the buyer. Revenue from contracts is recognised to the extent that it is probable that the economic benefits will flow to the company and can be reliably measured.
v Property, Plant and Equipment, Depreciation and Amortisation Property, Plant and Equipment:
Tangible assets are carried at cost less accumulated depreciation, amortisation and impairment loss, if any. Cost comprises of purchase price including inward freight, non rebatable duties & taxes and expenses directly related to the acquisition, construction and installation of the Property, Plant and Equipment. Borrowing costs directly attributable to acquisition or construction of those Property, Plant and Equipment which necessarily take a substantial period of time to get ready for their intended use are capitalised.
Expenditure incurred on acquisition/construction of Property, Plant and Equipment which are not ready for their intended use at each balance sheet date are disclosed under capital work in progress.
Depreciation on Fixed Assets is provided to the extent of depreciable amount on the Written Down Value (WDV) Method. Depreciation is provided based on useful life of the assets as prescribed in Schedule II to the Companies Act, 2013. Depreciation on Property, Plant and Equipment acquired / discarded during the year is provided on a pro-rata basis from / upto the date of addition / deletion.
Intangible assets:
Intangible assets are amortised in statement of profit and loss over their estimated useful lives, from the date that they are available for use based on the expected pattern of consumption of economic benefits of the asset. Accordingly, at present, these are being amortised on Written Down Value (WDV) basis. In accordance with the applicable Accounting Standard, the Company follows a rebuttable presumption that the useful life of an intangible asset will not exceed ten years from the date when the asset is available for use. However, if there is persuasive evidence that the useful life of an intangible asset is longer than ten years, it is amortised over the best estimate of its useful life. Such intangible assets and intangible assets that are not yet available for use are tested periodically for impairment.
vi Impairment of Assets:
The carrying amount of tangible or intangible assets are reviewed at each Balance Sheet date if there is any indication of impairment based on internal / external factors. An impairment loss is recognized in profit and loss account wherever the carrying amount of an asset exceeds its recoverable amount. The recoverable amount is greater of the asset’s net selling price and value in use. In assessing value in use, the estimated future cash flows are discounted to the present value by using weighted average cost of capital. A previously recognized impairment loss is further provided or reversed depending on changes in circumstances.
vii Accounting for Taxes on Income
Income-tax expense comprises current tax (i.e. amount of tax for the period determined in accordance with the income-tax law) and deferred tax charge or credit (reflecting the tax effects of timing differences between accounting income and taxable income for the period). Income-tax expense is recognised in profit or loss except that tax expense related to items recognised directly in reserves is also recognised in those reserves.
Current tax is measured at the amount expected to be paid to (recovered from) the taxation authorities, using the applicable tax rates and tax laws. Deferred tax is recognised in respect of timing differences between taxable income and accounting income i.e. differences that originate in one period and are capable of reversal in one or more subsequent periods. The deferred tax charge or credit and the corresponding deferred tax liabilities or assets are recognised using the tax rates and tax laws that have been enacted or substantively enacted by the balance sheet date. Deferred tax assets are recognised only to the extent there is reasonable certainty that the assets can be realised in future; however, where there is unabsorbed depreciation or carried forward loss under taxation laws, deferred tax assets are recognised only if there is a virtual certainty supported by convincing evidence that sufficient future taxable income will be available against which such deferred tax assets can be realised. Deferred tax assets are reviewed as at each balance sheet date and written down or written-up to reflect the amount that is reasonably/virtually certain (as the case may be) to be realised.
Minimum Alternative Tax (‘MAT’) under the provisions of the Income-tax Act, 1961 is recognised as current tax in the Statement of Profit and Loss. The credit available under the Act in respect of MAT paid is recognised as an asset only when and to the extent there is convincing evidence that the company will pay normal income tax during the period for which the MAT credit can be carried forward for set-off against the normal tax liability. MAT credit recognised as an asset is reviewed at each balance sheet date and written down to the extent the aforesaid convincing evidence no longer exists.
viii Provisions and Contingencies Provisions :
Provision is recognised in the balance sheet when, the Company has a present obligation as a result of a past event; it is probable that an outflow of economic benefits will be required to settle the obligation; and a reliable estimate of the amount of the obligation can be made.
A disclosure by way of a contingent liability is made when there is a possible obligation or a present obligation that may, but probably will not, require an outflow of resources.
Contingencies :
Provision in respect of loss contingencies relating to claims, litigation, assessment, fines, penalties, etc. are recognised when it is probable that a liability has been incurred, and the amount can be estimated reliably.
ix Inventories
Inventories include traded goods. Inventories are valued at lower of cost and net realizable value. Cost is computed on the weighted average basis and is net of taxes. Traded goods include cost of purchase (net of refundable taxes and levies) and other costs incurred in bringing the inventories to their present location and condition. Provision is made for cost of obsolescence and other anticipated losses, whenever considered necessary.
x Employee benefits Short-term employee benefits :
All employee benefits payable wholly within twelve months of rendering the service are classified as short-term employee benefits. The undiscounted amount of short-term employee benefits expected to be paid in exchange for the services rendered by employees is recognized during the period.
Long-term employee benefits :
The Company’s gratuity obligation is a defined benefit plans. The Company’s net obligations in respect of gratuity is calculated by estimating the amount of future benefit that employees have earned in return for their service in the current and prior periods; that benefit is discounted to determine its present value.
The present values of the obligation under such defined benefit plans are determined based on actuarial valuation carried out by an independent actuary at each balance sheet date using the Projected Unit Credit Method, which recognizes each period of service as giving rise to additional unit of employee benefit entitlement and measures each unit separately to build up the final obligation.
The obligations are measured at the present values of the estimated future cash flows. The discount rates used for determining the present values of the obligations under defined benefit plans, are based on the market yields on Government securities as at the balance sheet date. Actuarial gains and losses are recognized immediately in the Profit and Loss account.
Compensated Absences :
The employees can carry-forward a portion of the unutilised accrued compensated absences and utilise it in future service periods or receive cash compensation on termination of employment. Since the compensated absences do not fall due wholly within twelve months after the end of the period in which the employees render the related service and are also not expected to be utilized wholly within twelve months after the end of such period, the benefit is classified as a long-term employee benefit. The Company records an obligation for such compensated absences in the period in which the employee renders the services that increase this entitlement. The obligation is measured on the basis of independent actuarial valuation using the projected unit credit method.
xi Foreign exchange transactions
Foreign exchange transactions are recorded into Indian rupees using the average of the opening and closing spot rates on the dates of the respective transactions. Monetary assets and liabilities denominated in foreign currencies as at the balance sheet date are translated into Indian rupees at the closing exchange rates on that date. The resultant exchange differences are recognised in the Statement of Profit and Loss of the year.
xii Leases Operating lease :
Assets acquired under leases other than finance leases are classified as operating leases. The total lease rentals (including scheduled rental increases) in respect of an asset taken on operating lease are charged to the Statement of Profit and Loss on a straight line basis over the lease term unless another systematic basis is more representative of the time pattern of the benefit. Initial direct costs incurred specifically for an operating lease are deferred and charged to the Statement of Profit and Loss over the lease term.
xiii Government Grants
Government grants are recognised after there is reasonable assurance that (i) the company will comply with the conditions attached to them, and (ii) the grants will be received.
Government grants related to specific fixed assets are presented in the balance sheet by showing the grant as a deduction from the gross value of the assets concerned in arriving at their book value.
Government grants related to revenue are recognised on a systematic basis in the profit and loss statement over the periods necessary to match them with the related costs which they are intended to compensate. Revenue grants are shown separately under ‘other income’ net of related expenses.
xiv Earnings per share
The basic earnings per share are computed by dividing the net profit attributable to the equity shareholders for the year by the weighted average number of equity shares outstanding during the reporting year. Diluted earnings per share is computed by dividing the net profit attributable to the equity shareholders for the year by the weighted average number of equity and dilutive equity equivalent shares outstanding during the year, except where the results would be anti-dilutive.
xv General
Accounting policies not specifically referred to above are consistent with generally accepted accounting principles.
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