NOTE 1 : Significant Accounting Policies
a. Corporate information
Solex Energy Limited ("the Company") is a manufacturer of solar photo-voltaic modules as well as engaged in the
business of Engineering, Procurement and Construction (EPC) in the solar energy market, wherein the manufactured
modules are utilized. The registered office of the company is located at Plot No. 131/A, Phase 1, Nr. Krimy Industries,
GIDC, Vitthal Udhyognagar, Anand, Gujarat, India - 388121
b. Significant Accounting Policies
i. Statement of compliance
The financial statements has been prepared in accordance with Accounting Standards ("AS") notified under section
133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014, as amended.
All assets and liabilities have been classified as current and non-current as per the Company's normal operating cycle
and other criteria set out in the Schedule II to the Companies Act, 2013. Based on the nature of products and services
and their realization in cash and cash equivalents, the Company has ascertained its operating cycle as 12 months for
the purpose of current and non-current classification of assets and liabilities.
ii. Basis of preparation and presentation
The financial statements have been prepared on a historical cost basis. The Company has adopted the accrual
system of accounting and the accounts are prepared on a going concern concept.
The functional and presentation currency of the Company is Indian Rupee ("H") which is the currency of the primary
economic environment in which the Company operates.
iii. Property, Plant and Equipment
Property, plant and equipment is stated at cost less accumulated depreciation and accumulated impairment losses,
if any. Cost includes purchase price (net of trade discount and rebates) and any directly attributable cost of bringing
the asset to its working condition for its intended use.
Intangible assets are recorded at the consideration paid for acquisition of such assets and carried at cost less
accumulated amortization and impairment loss, if any.
Capital work in progress is stated at cost, net of accumulated impairment loss, if any. When significant parts of plant
and equipment are required to be replaced at intervals, the Company depreciates them separately based on their
specific useful lives. Likewise, when a major inspection is performed, its cost is recognised in the carrying amount of
the plant and equipment as a replacement if the recognition criteria are satisfied. All other repair and maintenance
costs are recognised in the statement of profit and loss as incurred.
Depreciation
Depreciation commences when as assets is ready for its intended use.
Depreciation is recognised on the cost of assets less their residual values over their estimated useful lives, using the
straight-line method as prescribed in Schedule II to the Companies Act, 2013.
Intangible Assets are amortised on straight line basis over the asset's anticipated useful life estimated by management.
iv. Foreign Currency Transaction
Income & Expenses in foreign currencies are recorded at exchange rates prevailing on the date of the transaction.
Foreign Currency denominated monetary assets and liabilities are translated at the exchange rate prevailing on
the transaction date and exchange gains and losses arising on settlement and restatement are recognized in the
statement of profit and loss account.
The Company has outstanding balances payable to Foreign suppliers of $ 47,40,080.45 (equivalent to H4,056.61
Lacs) on year end which is Hedged through forward Forex booking.
During the year company has direct import of material, services and also Fixed Assets with their parts as follows:
v. Revenue Recognition
Revenue from contracts with customers is recognized when control of goods or services are transferred to the
customer at an amount that reflects the consideration to which the Company expects to be entitled in exchange for
those goods or services. The Company has concluded that it is the principal in its revenue arrangement because it
typically controls the goods or services before transferring them to the customers.
Revenue from sale of goods is recognized at the point when control of asset is transferred to the customer, generally
on delivery of the goods and services.
Revenue on installation and commissioning contracts are recognized as per terms of contracts. Revenue from
maintenance contracts are recognized pro-rata over the period of the contract.
vi. Retirement Benefits
The company is complying the provision of EPF and employer contribution and administration charges for the same
are debited to profit & loss Account.
As per information provided to us provisions of Gratuity are applicable to the Company and have comply the provision
of Gratuity Act and provision for the period is debited to profit & Loss Account
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