3.4 Provisions

Provisions are recognised when the Company has a present
legal or constructive obligation as a result of past events, it
is probable that an outflow of resources will be required to
settle the obligation and the amount can be reliably
estimated. Provisions are not recognised for future operating
losses. Provision are measured at the present value of

management's best estimate of the expenditure required
to settle the present obligation at the end of the reporting
period. Provisions are reviewed at each balance sheet
date and adjusted to reflect the current best estimates.

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

3.5 Contingent liabilities, contingent assets and
commitments

Contingent liabilities are disclosed when there is a possible
obligation arising from past events, the existence of which
will be confirmed only by the occurrence or non-occurrence
of one or more uncertain future events not wholly within
the control of the Company or a present obligation that
arises from past events where it is either not probable that
an outflow of resources will be required to settle or a
reliable estimate of the amount cannot be made.
Information on contingent liability is disclosed in the
notes to the standalone financial statements
Contingent assets are not recognized in the standalone
financial statements. However, it is disclosed only when
an inflow of economic benefits is probable.
Commitments include the amount of purchase order (net
of advances) issued to parties for completion of assets.

3.6 Employee benefits

(i) Short-term employee benefits:

All employee benefits payable wholly within twelve months
of rendering the service are classified as short-term
employee benefits. All short-term employee benefits are
accounted on undiscounted basis during the accounting
period based on services rendered by employees and
recognized as expenses in the standalone statement of
profit and loss unless related to the project in which case
they are capitalized. A liability is recognised for the amount
expected to be paid if the Company has a present legal or
constructive obligation to pay this amount as a result of
past service provided by the employee and the obligation
can be estimated reliably. These benefits include salary
and wages, bonus, performance incentives, etc.

(ii) Long-term employee benefits (Post-employment
benefits):

Defined benefit plans - Gratuity:

The liability recognised in the balance sheet is the present
value of the defined benefit obligation at the end of the
reporting period less the fair value of plan assets. The
defined benefit obligation is calculated annually by
actuaries using the projected unit credit method.

The present value is determined by discounting the
estimated future cash outflows by reference to market
yields at the end of the reporting period on government
bonds that have terms approximating to the terms of the
related obligation.

The net interest cost is calculated by applying the discount
rate to the net balance of the defined benefit obligation
and the fair value of plan assets. This cost is included in
employee benefit expense in the standalone statement
of profit and loss.

Remeasurement gains and losses arising from experience
adjustments and changes in actuarial assumptions are
recognised in the period in which they occur, directly in
other comprehensive income. They are included in
retained earnings in the statement of changes in equity
and in the balance sheet.

Changes in the present value of the defined benefit
obligation resulting from plan amendments or curtailments
are recognised immediately in profit or loss as past service
cost.

(iii) Other benefits (Compensated absences):

Accumulated compensated absences, which are expected
to be availed or encashed within 12 months from the end
of the year end are treated as short term employee benefits.
The obligation towards the same is measured at the
expected cost of accumulating compensated absences
as a result of the unused entitlement as at the year end.

Accumulated compensated absences, which are expected
to be availed or encashed beyond 12 months from the
end of the year end are treated as other long term
employee benefits. The obligations are presented as
current liabilities in the balance sheet if the entity does
not have an unconditional right to defer settlement for at
least twelve months after the reporting period, regardless
of when the actual settlement is expected to occur.

3.7 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.

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.

3.8 Segment reporting

Operating segments are reported in a manner consistent
with the internal reporting provided to the Chief Operating
Decision Maker.

The sensitivity analysis have been determined based on reasonably possible changes of the respective assumptions
occurring at the end of the reporting period, while holding all other assumptions constant. The sensitivity analysis
presented above may not be representative of the actual change in the Defined Benefit Obligation as it is unlikely that the
change in assumptions would occur in isolation of one another as some of the assumptions may be correlated.
Furthermore, in presenting the above sensitivity analysis, the present value of the Defined Benefit Obligation has been
calculated using the projected unit credit method at the end of the reporting period, which is the same method as applied
in calculating the Defined Benefit Obligation as recognised in the balance sheet.

Risk exposures: Through its defined benefit plans, the Company is exposed to a number of risks, the most significant of
which are detailed below:

Interest rate risk: A fall in the discount rate which is linked to the G.Sec. rate will increase the present value of the liability
requiring higher provision.

Salary risk: The present value of the defined benefit plan liability is calculated by reference to the future salaries of
members. As such, an increase in the salary of the members more than assumed level will increase the plan's liability.
Asset Liability matching risk: The plan faces the ALM risk as to the matching cash flow. Company has to manage pay-out
based on pay as you go basis from own funds.

Mortality risk: Since the benefits under the plan is not payable for life time and payable till retirement age only, plan does
not have any longevity risk.

During the year, there were no plan amendments, curtailments and settlements.

(ii) The obligation for compensated absences cover the Company's liability for earned leave. The Company during the year
has recognised compensated absences expense amounting to charge of Rs. 0.64 lakhs (31 March 2023: Rs. Nil) disclosed
under Employee benefits expense (refer note 16).

Fair value hierarchy

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

Level 2: Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e.
as prices) or indirectly (i.e. derived from prices).

Level 3: Inputs for the assets or liabilities that are not based on observable market data (unobservable inputs).

Financial instruments - risk management

The Company has exposure to the following risks arising from financial instruments: credit risk (refer note (b) below); liquidity
risk (refer note (c) below); market risk (refer note (d) below).

(a) Risk management framework

The Company's board of directors has overall responsibility for the establishment and oversight of the Company's risk
management framework. The Company's risk management policies are established to identify and analyse the risks faced
by the Company, to set appropriate risk limits and controls and to monitor risks and adherence to limits. Risk management
policies and systems are reviewed regularly to reflect changes in market conditions and the Company's activities.

The Company's board oversees how management monitors compliance with the Company’s risk management policies
and procedures, and reviews the adequacy of the risk management framework in relation to the risks faced by the
Company.

(b) Credit risk

Credit risk is the risk that a counter party fails to discharge its obligation to the Company. The maximum credit risk comprises
the carrying amounts of the financial assets. The Company's exposure to credit risk arises mainly from cash and cash
equivalents and loans.

Cash and cash equivalents

Credit risk on cash and cash equivalent is not significant as it majorly includes deposits with banks with high credit ratings
assigned by credit rating agencies. Management does not expect any losses from non-performance by these counterparties.
Other financial assets measured at amortized cost

Other financial assets measured at amortized cost includes security deposits. Credit risk related to these is managed by
monitoring the recoverability of such amounts continuously. The expected credit loss on these financial instruments is
expected to be insignificant.

(c) Liquidity risk

Liquidity risk is the risk that the Company will not be able to settle or meet its obligations on time. The cash flows from
operating activities are driven primarily by operating results and changes in the working capital requirements.

The table below provides details of financial liabilities further, based on contractual undiscounted payments.

26 Segment information

The Company is engaged into one reportable business segment i.e. 'generation of power”. No other operating segment
has been aggregated to form the above reportable operating segment. Accordingly, the disclosure requirements of Ind AS
- 108, Operating Segments notified under section 133 of the Companies Act, 2013 are not applicable.

27 Dues to micro and small enterprises

There are no dues outstanding to micro and small enterprises as at the end of reporting years. The information regarding
micro and small enterprises has been determined to the extent such parties have been identified on the basis of
information available with the Company. This has been relied upon by the auditors.

29 Subsequent events

There are no subsequent events that have occurred after the reporting period till the date of these standalone financial statements.

30 Other statutory information

i) Details of benami property held: The Company does not have any Benami property, where any proceeding has been initiated
or pending against the Company for holding any Benami property.

ii) Wilful defaulter: The Company is not declared wilful defaulter by any bank or Financial institution or other lender during
the year.

iii) Relationship with struck off companies:The Company does not have any transactions with companies struck off.

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

v) Borrowings secured against current assets:The Company does not have borrowings from banks or financial institutions on the
basis of security of current assets.

vi) Utilisation of borrowed funds and share premium:

A. The Company has not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign
entities (Intermediaries) with the understanding that the Intermediary shall:"

(a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of
the Company (Ultimate Beneficiaries) or

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

B. The Company has not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party) with
the understanding (whether recorded in writing or otherwise) that the Company shall:

(a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of
the Funding Party (Ultimate Beneficiaries) or

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

vii) Compliance with number of layers of companies: The Company has complied with the requirements of the number of layers
prescribed under clause (87) of section 2 of the Companies Act, 2013 read with Companies (Restriction on number of Layers)

Rules, 2017.

_viii) Valuation of Property, Plant and Equipment or Intangible Assets: The Company does not have any property, plant and equipment
or intangible assets, thus, disclosures relating to revaluation of property, plant and equipment or intangible assets is not
applicable.

ix) Loans or advances in the nature of loans to specified persons: The Company has not granted any loans or advances in the
nature of loans to promoters, directors, KMPs and the related parties (as defined under Companies Act, 2013) that are: (a)
repayable on demand or (b) without specifying any terms or period of repayment during the year.

_x) Compliance with approved Scheme of Arrangement: The Company has not entered into any scheme of arrangement which has
an accounting impact on current or previous financial year.

31 Details of crypto currency or virtual currency: The Company has not traded or invested in Crypto currency or Virtual Currency
during the financial year. The Company has also not received any deposits or advances from any person for the purpose of trading
or investing in Crypto Currency or Virtual Currency.

32 Undisclosed income:The Company does not have not any such transaction which is not recorded in the books of accounts that has
been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (such as, search
or survey or any other relevant provisions of the Income Tax Act, 1961.

33 Corporate Social Responsibility: The Company does not fulfil the criteria as as specified under section 135(1) of the Act read

with the Companies (Corporate Social Responsibility Policy) Rules, 2014. Accordingly, provisions of section 135 of the Act
are not applicable to the Company.

34 In the opinion of the board of directors, assets, loans and advances have a value on realization in the ordinary course of the
business at least equal to the amounts at which they are stated and provision for all known liabilities have been made.

35 The Company did not have any long-term contracts including derivative contracts for which there were any foreseeable
losses as at 31 March 2024.

36 There were no amounts which were required to be transferred to the Investor Education and Protection Fund by the
Company during the year ended 31 March 2024.

37 Previous year's figures

Previous year's figures have been regrouped / restated / reclassified, wherever necessary, to confirm to the current year's
presentation.

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

SRM Energy Limited

For Saini Pati Shah & Co LLP

Chartered Accountants Sharad Rastogi Vijay Kumar Sharma

Firm Registration No. 137904W/W100622 Whole-time Director Director

DIN:09828931 DIN:03272034

Ankush Shah

Partner Pankaj Gupta Raman Kumar Mallick

Membership No. 145370 Company Secretary Chief Financial Officer

UDIN: 24145370BKFVDD1264 and Compliance Officer

Place : Mumbai Membership No. A63088

Date : 28/05/2024

Place : New Delhi
Date : 28/05/2024