1 • Basisof.accounting:-

These financial statements have been prepared In accordance with the Generally Accepted Accounting Principles in India (Indian GAAP) inducing the Accounting Standards notified under Section 133 of the Companies Act 2013. read with Rule 7 of the Companies (Accounts) Rules. 2014 and the relevant provisions of the Companies Act. 2013.

The financial statements havo been prepared under the historical cost convention on accrual basis.

2.    Use of Estimates

The preparation of financial statements in conformity with Indian GAAP requires the management to make judgments, estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities and the disclosure of contingent liabilities, at the end of the reporting period. Although these estimates ore booed on tho management's best knowledge of current events and actions, uncertainty about these assumptions and estimates could result in the outcomes requiring a material adjustment to the carrying amounts of assets or liabilities in future periods.

3.    Revenue Recognition; -

Expenses and Income considered payable and receivable respectively are accounted for on accrual basis.

Revenue is recognized to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured.

4.    Principles of consolidation ("only in case where consolidation is made]

a.    The consolidated financial statements relate to KAY CEE ENERGY & INFRA PRIVATE LIMITED (the Company ) and its associate/subsldiary company

NIL

b.    The consolidated financial statements have been prepared in accordance with requirement of section 129 read with schedule- III of the Companies Act 2013, Accounting Standard (AS) 21 - 'Consolidated Financial Statements’ or 23 -'Accounting for investments in associates in Consolidated Financial Statements' as specified under section 133 of the Companies Act.2013 read with Rule 7 of the Companies (Accounts) Rules.2014 and generally accepted accounting principles

c.    In case of associates' Equity Method as stated in AS-23 "Accounting for Investments in Associates in Consolidated Financial Statements is followed for preparation of consolidated financial statements.

The difference between the cost of investment in the Associate, over the net assets at the time of acquisition of shares in the Associate is disclosed in the consolidated financial statements as Goodwill or Capital Reserve, as the case may

be. Profits/losses resulting from intra-group transactions that are recognised in assets are eliminated in full, if any.

d.    As far as possible, the consolidated financial statements are prepared using uniform accounting policies for like transactions and other events in similar circumstances and are presented in the same manner as the Company's separate financial statements.

e.    Entities controlled by the company are consolidated from the date control commences until the date control ceases.

f.    In case of associates* If. under the equity method, an investor's share of losses of an associate equals or exceeds the carrying amount of the investment, the investor ordinarily discontinues recognising its share of further losses and the investment is reported at nil value. Additional losses are provided for to the extent that the investor has incurred obligations or made payments on behalf of the associate to satisfy obligations of the associate that the investor has guaranteed or to which the investor is otherwise committed. If the associate subsequently reports profits, the investor resumes including its share of those profits only after its share of the profits equals the share of net losses that have not been recognised.

5.    Property, Plant & Equipment

Property. Plant & Equipment including intangible assets are stated at their original cost of acquisition including taxes freight and other incidental expenses related to acquisition and installation of the concerned assets less doprociat on till date.

Company has adopted cost model for all class of items of Property Plant and Equipment.

6.    Depredation

Depredation on Fixed Assets is provided to the extent of depreciable amount on the SI. VI methoc. Depreciation is provided based on useful life of the assets as prescribed in Schedule II to the Companies Act, 2013.

Depreciation on assets acquired/sold during the year is recognised on a pro-rata bas>s to the statement of profit and loss till the date of acquisitionysale.

The carrying amount of assets is reviewed at each balance sheet date if there s any indication of impairment based on internal/extomal factors. An impairment loss is recognised wherever the carrying amount of an asset exceeds its recoverable amount. The recoverable amount is the greater of the assets, net selling price and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and risks specific to the asset.

After impairment, depreciation is provided on the revised carrying amount of the asset over its remaining useful life.

7.    Foreign currency Transactions: -

Transactions arising in foreign currencies during the year are converted at the rates closely app'oximating the rates ruling on the transaction dates. I abilities and receivables in foreign currency are restated at the year-end exchange rates. All exchange rate

differences arising from conversion In terms of the above are included in the statement of profit and loss.

8.    Investments

Investments, which are readily realizable and intended to be held for not more than one year

from the date on which such investments are made, are classified as current investments. All other investments are classified as non-current investments.

On disposal of an investment, the difference between its carrying amount and net disposal proceeds is charged cr credited to the statement of profit and loss.

9.    Inventories

Inventories are valued as under:-

1. Inventories    :    Lower of cost(FIFO/specific cost) or net realizable value

2. Scrap    :    At net realizable value.

10. Borrowing cost:-

Borrowing costs that are attributable to the acquisition or construction of the qualifying assets are capitalized as part of the cost of such assets. A qualifying assets is one that necessarily takes a substantial period of time to get ready for its intondod usog or &alo. All other borrowing costs are charged to revenue in the year of incurrence..

11.    Retirement Benefits:-

The retirement benefits are accounted for as and when liability becomes due for payment.

12. Taxes on Income:-

Provision for current tax is made on the basis of estimated taxable income for the current accounting year in accordance with the Income Tax Act. 1961. The deferred tax for timing differences between the book and tax profits for the year is accounted for. using the tax rates and laws that have been substantively enacted by the balance sheet date. Deferred tax assets arising from timing differences are recognized to the extent there Is virtual certainty with convincing evidence that these would be realized in future. At each Balance Sheet date, the carrying amount of deferred tax is reviewed to reassure 'ealization.

13.    Provisions. Contingent Liabilities and Contingent Assets:- (AS-29)

Provisions are recognized only when there is a present obligation as a result of past events and when a reliable estimate of the amount of the obligation can be made.

Contingent Liabilities is disclosed in Notes to the account for>

(i)    Possible obligations which v/ill be confirmed only by future events not wholly within the control of the company or

(ii)    Present Obligations arising from past events where it is not probable that an outflow of resources w.ll be required to settle the obligation or a reliable estimate of the amount of the obligation cannot be made.

Contingent assets are not recognized in the financial statement since this may result in the recognition of the income that may never be realized.

General:

Except wherever stated, accounting policies are consistent with the generally accepted accounting principles and have been consistently applied.