(i) APL Apollo Foundation was incorporated on April 19, 2022 to undertake CSR activities. As at March 31, 2026, the Company holds 16.67% (March 31,2025 : 16.67%) equity shares of the Foundation.

(ii) During the year, the Company was sold investment of H0.21 crores in Clover Energy Private Limited. The Company holds 5.66% (March 31,2025 : 6.42%) equity shares of Clover Energy Private Limited, a Company engaged in the business of providing wind energy to its customers.

(iii) The Company holds 3.10% (March 31, 2025 : 3.10%) equity shares of AMPSOLAR Urja Private Limited, a Company engaged in the business of providing solar energy to its cutomers.

(iv) The Company holds 26.00% (March 31, 2025 : 26.00%) equity shares of Radiance Ka Sunrise Two Private Limited, a Company engaged in the business of providing solar energy to its cutomers.

(v) During the current year ended March 31,2026, the Company invested in 1,140,750 equity shares of H10 each of Solarcraft Power India 31 Private Limited, a Company engaged in the business of providing solar energy to its customers. The Company holds 5.66% equity shares of Solarcraft Power India 31 Private Limited as at March 31,2026.

(vi) The Company holds 1.96% (March 31,2025 : 1.96%) equity shares of FP Samruddi Private Limited, a Company engaged in the business of providing solar energy to its cutomers.

(vii) The Company holds 11.21% (March 31, 2025 : 11.21%) equity shares of Solarcarft Power India 25 Private Limited, a Company engaged in the business of providing solar energy to its cutomers.

(vii) During the current year ended March 31,2026, the Company invested in 25,246 equity shares of H10 each at premium of H1,002 each of Sunsure Solar Park Thirty One Private Limited, a Company engaged in the business of providing solar energy to its customers. The Company holds 30.42% equity shares of Sunsure Solar Park Thirty One Private Limited as at March 31,2026.

(ii) Trade receivables from related party has been disclosed in note 41.

(iii) The average credit period on sale of goods is 0-60 days. No interest is charged on the trade receivables for the amount overdue above the credit period.

(iv) In determining the allowance for credit losses of trade receivables, the Company has used a practical expedient by computing the expected credit loss allowance for trade receivables based on a provision matrix. The provision matrix takes into account historical credit loss experience and is adjusted for forward looking information. The expected credit loss allowance is based on the ageing of the receivables that are due and rates used in the provision matrix.

(ii) Rights, Preferences and restrictions attached to equity shares

The Company has one class of equity shares having a par value of H2 each (March 31,2025 : H2 each). Each shareholder is eligible for one vote per share held. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the Annual General Meeting. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the Company after distribution of all preferential amounts, in proportion to their shareholding.

(vi) Aggregate value of Issued, Subscribed and Paid-up Share Capital as on the Balance Sheet date for the period of preceding five years includes:

On September 20, 2021, the Company had allotted 124,896,000 equity shares of H2 each as fully paid up bonus equity shares, in the ratio of 1 equity share H2 each for every 1 existing equity shares of H2 each to eligible shareholders of the Company as on record date of September 18, 2021, in accordance with approval received from the Members by way of postal ballot on September 9, 2021. The said bonus equity shares ranked pari passu in all respects with the then existing equity shares of the Company. As a result of the bonus issue, the paid-up capital of the Company increased to H49.96 crore from H24.98 crore. The paid-up capital on account of bonus issue of H24.98 crore was appropriated from securities premium.

(vii) The Company has neither issued any shares for considration other than cash nor has made any buyback of shares during the period of five years immediately preceeding the reporting date.

(i) General Reserve: The General Reserve is used from time to time to transfer profits from retained earnings for appropriation purposes. General Reserves represents the free profits of the Company available for distribution.

(ii) Securities premium: Securities premium is used to record the premium on issue of shares. The reserve is utilised in accordance with the provisions of the Indian Companies Act, 2013 ("the Companies Act").

(iii) Capital reserve and capital reserve on merger: The excess of fair value of net assets acquired over consideration paid in a business combination is recognised as capital reserve. The reserve is not available for distribution.

(iv) Retained earnings: It represents unallocated/un-distributed profits of the Company. The amount that can be distributed as dividend by the Company as dividends to its equity shareholders is determined based on the separate financial statements of the Company and also considering the requirements of the Companies Act, 2013. Thus amount reported above are not distributable in entirety.

(v) Share option outstanding account: The above reserve relates to SARs granted by the Company to the employees and Directors of the Company and its subsidiaries, under the Stock Appreciation Rights Scheme - 2019" (SAR). (see note 39)

(vi) Items of other comprehensive income: It represents profits / (loss) of the Group which will not be reclassified to statement of profit or loss.

(i) Working capital facilities from banks are secured by first pari passu charge on entire present and future current assets and second charge on present and future movable fixed assets of the company situated at Plot No. A-19 and A-20, Sikandarabad Industrial Area, Distt. Bulandshahar, Uttar Pradesh and Plot No. 332 to 338, Alur Village, Perandapalli, Hosur, Tamilnadu and Khasra No. 215, 223/1,225/7-8, 225/9-10, 227/4, 231/2, 217/1-2 Part, 231/6 Part at village Bendri, Tehsil Raipur, Dist. - Raipur, and M-1, Additional Murbad Industrial Area - V, Kudawali Murbad, Distt. Thane, Maharashtra and Residential Complex situated at Murbad, Distt. Thane, Maharashtra and 443,444,538,539 Wadiaram village Chegunta (Mandal) Medak district Telangana 502255 and KIADB Industrial Area, Plot No. 9-11, Balagaranahalli Village, Attibele, Anekal Taluk, Banglore and Malur, Kolar, Karnataka.

Working capital facilities are further secured by second charge through equitable mortgage of the company land and building situated at Plot No. A-19/A-20, Sikandarabad Industrial Area, Distt. Bulandshahar, Uttar Pradesh and Plot No. 332 to 338, Alur Village, Perandapalli, Hosur, Tamilnadu and Khasra No. 215, 223/1, 225/7-8, 225/9-10, 227/4, 231/2, 217/1-2 Part, 231/6 Part at village Bendri, Tehsil Raipur, Dist. - Raipur and 443,444,538,539 Wadiaram village Chegunta (Mandal) Medak district Telangana 502255 and KIADB Industrial Area, Plot No. 9-11, Balagaranahalli Village, Attibele, Anekal Taluk, Banglore and Malur, Kolar, Karnataka.

(ii) Supplier finance arrangements

The Company has entered into a supplier finance arrangement whereby participating suppliers have the option to receive early settlement of their invoices from banks. Under this arrangement, the banks settles amounts payable to such suppliers and the Company subsequently remits the payment to the banks in accordance with agreed terms. The arrangement is intended to streamline the Company payment processes while enabling suppliers who opt in to access accelerated cash flows relative to original due dates.

The Company continues to recognise the underlying trade payables associated with these arrangements, as there has been no legal extinguishment of the original obligation and the terms of the liability have not undergone substantial modification upon initiation of the arrangement.

35 ALLOCATION OF COMMON EXPENSES

(a) The Company has charged back the "Share based expenses" to employees (included under "Employee benefits expense" in note 31) incurred by it to its group companies on cost basis. The allocation of common expenses has been carried out on the basis of share options held of the Company by employees of the respective group companies.

(b) The Company has charged back the common expenses (included under "Employee benefits expense" in note 31 & "Other expenses" in note 34) incurred by it to its group companies on cost basis. The allocation of common expenses has been carried out on the basis of turnover of the respective companies, as per latest audited financial statements.

(c) The Company has other commitments, for purchase orders which are issued after considering requirements per operating cycle for purchase of services, employee's benefits. The Company does not have any other long term commitments or material non-cancellable contractual commitments /contracts, including derivative contracts for which there were any material foreseeable losses.

(d) There has been no delays in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company.

38 EMPLOYEE BENEFIT OBLIGATIONS(a) Defined contribution plans

The Company makes provident fund contributions which are defined contribution plans, for qualifying employees. Under the scheme, the Company is required to contribute a specified percentage of the payroll costs to fund the benefits. The Company recognised total expense of H8.09 crore (Year ended March 31, 2025 H6.36 crore) for provident fund contributions in the statement of profit and loss. The contributions payable to these plans by the Company are at rates specified in the rules of the schemes. The obligation of the Company is limited to the amount contributed and it has no further contractual nor any constructive obligation.

(b) Defined benefit plans a) Gratuity

The gratuity scheme provides for lump sum payment to vested employees at retirement/death while in employment or on termination of employment of an amount equivalent to 15 days salary payable for each completed year of service or part thereof in excess of 6 months subject to a limit of H0.20 crore (March 31,2025 H0.20 crore). Vesting occurs upon completion of 5 years of service. The scheme is funded with APL Apollo Tubes Limited Employees Group Gratuity Trust.

The above sensitivity analyses are based on a change in an assumption while holding all other assumptions constant. In practice, this is unlikely to occur, and changes in some of the assumptions may be correlated. When calculating the sensitivity of the defined benefit obligation to significant actuarial assumptions the same method i.e. projected unit credit method has been applied as that used for calculating the defined benefit liability recognised in the balance sheet.

(viii) Risk exposure

The defined benefit obligations have the undermentioned risk exposures:

Interest rate risk: The defined benefit obligation calculated uses a discount rate based on government bonds. If bond yields fall, the defined benefit obligation will tend to increase.

Salary Inflation risk: Higher than expected increases in salary will increase the defined benefit obligation.

Demographic risk: This is the risk of variability of results due to unsystematic nature of decrements that include mortality, withdrawal, disability and retirement. The effect of these decrements on the defined benefit obligation is not straight forward and depends upon the combination of salary increase, discount rate and vesting criteria.

Investment risk: The present value of the defined benefit plan liability is calculated using a discount rate determined by reference to high quality corporate bond yields; if the return on plan asset is below this rate, it will create a plan deficit.

(x) The acturial liability for compensated absences as at the year ended March 31,2026 H6.94 crores (March 31,2025 H7.36 crores)

39 SHARE BASED PAYMENTS(a) Employee Share Option Plan :

The ESOS scheme titled "Employee Stock Option Scheme 2015" (ESOS 2015) was approved by the shareholders through postal ballot on July 27, 2015 and December 22, 2015. A total of 7,50,000 options were granted under the scheme, representing 7,50,000 equity shares (before giving effect to the share split and bonus issue). During the current year, the Board of Directors, at its meeting held on July 24, 2025, approved the termination of the erstwhile APL Apollo Employee Stock Option Scheme - 2015.

(b) Stock Appreciation Rights Scheme

(i) The SAR scheme titled "Stock Appreciation Rights Scheme - 2019" (SAR) was approved by the shareholders through postal ballot on 27 January 2020. 1,000,000 SAR units were originally covered under the Scheme, exercisable into not more than 500,000 equity shares. Pursuant to the sub-division of each equity share having a face value of H10 each into 5 equity shares of H2 each, effective from the record date, i.e., December 16, 2020, the Scheme has been suitably adjusted, resulting in 5,000,000 SAR units being covered under the Scheme, exercisable into not more than 2,500,000 equity shares.

(a) Risk free interest rate

The risk-free interest rate considered for the calculation is the interest rate applicable for maturity equal to the expected life of the SARs based on the zero-coupon yield curve for Government Securities.

(b) Expected dividend yield

Expected dividend yield has been calculated based on the final dividend declared during the preceding financial year.

(c) Expected volatility

Volatility is a measure of the amount by which the stock price has fluctuated or is expected to fluctuate during a period. The measure of volatility used in the Black-Scholes right pricing model is the annualized standard deviation of the continuously compounded rates of return on the stock over a period of time. In determining volatility, the Group considers the historical volatility of the stock over the most recent period that is generally commensurate with the expected life of the right being valued. Volatility has been calculated based on the daily closing market price of the Company's stock price on NSE over these years.

(i) C.Y. represents amount as at and for the year ended March 31, 2026 and P.Y. represents amount as at and for the year ended March 31,2025.

(ii) All related party transactions were entered at an arm's length basis and in the ordinary course of business. Outstanding balances at the year-end are unsecured.

(iii) Contribution to gratuity and compensated absences are determined by the actuary on a overall basis at the end of each year. (see note 31)

(iv) As at March 31,2026, the Company has outstanding corporate guarantee amounting to H792.68 crores (March 31,2025 : H926.46 crores) on behalf of its subsidiary i.e. APL Apollo Tubes Company LLC respectively given to their lenders for loans and credit facilities taken by them from banks and financial institutions.

(v) The treasury and finance operations of the Company and its subsidiaries (APL Group Companies) are managed centrally.

Based on the funding requirement, APL group companies provide loan to each other and these are repaid as and when funds are available with respective company. Also interest is charged for the period on such advance in the nature of loan remains outstanding to ensure arms' length transaction. The above transactions are undertaken with the approval of the Board of Directors and the Audit Committee as applicable. The maximum amount outstanding during the year in respect of loan given by the Company to its subsidiaries is as under: (H in crore)

(b) 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 the three levels prescribed under the accounting standard.

Level 1: Level 1 hierarchy includes financial instruments measured using quoted prices. This includes listed equity instruments that have quoted price. The fair value of all equity instruments which are traded in the stock exchanges is valued using the closing price as at the reporting period.

Level 2: The fair value of financial instruments that are not traded in an active market is determined using valuation techniques which maximise the use of observable market data and rely as little as possible on entity-specific estimates. If all significant inputs required to fair value an instrument are observable, the instrument is included in level 2.

Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3. This is the case for unlisted equity securities, security deposits included in level 3.

(c) Assets and liabilities which are measured at amortised cost for which fair values are disclosed

All the financial asset and financial liabilities measured at amortised cost, carrying value is an approximation of their respective fair value.

44 FINANCIAL RISK MANAGEMENT OBJECTIVES

The Company's activities expose it to market risk including foreign currency risk and interest rate risk, liquidity risk and credit risk.

This note explains the sources of risk which the entity is exposed to and how the entity manages the risk :

The Company's risk management is carried out by a treasury department under policies approved by the Board of Directors. Treasury department identifies, evaluates and hedges financial risks in close co-operation with the Company's operating units. The board provides principles for overall risk management, as well as policies covering specific areas, such as hedging of foreign currency transactions foreign exchange risk.

(a) Market risk

Market risk is the risk of any loss in future earnings, in realisable fair values or in future cash flows that may result from a change in the price of a financial instrument. The value of a financial instrument may change as result of changes in interest rates, foreign currency exchange rates, liquidity and other market changes. Future specific market movements can not be normally predicted with reasonable accuracy.

(i) Foreign currency risk

The Company's functional currency is Indian Rupees (INR). The Company undertakes transactions denominated in the foreign currencies; consequently, exposure to exchange rate fluctuations arise. Volatility in exchange rates affects the Company's revenue from export markets and the costs of imports, primarily in relation to import of capital goods. The Company is exposed to exchange rate risk under its trade and debt portfolio.

Adverse movements in the exchange rate between the Rupee and any relevant foreign currency result's in the increase in the Company's overall debt positions in Rupee terms without the Company having incurred additional debt and favourable movements in the exchange rates will conversely result in reduction in the Company's receivable in foreign currency. In order to hedge exchange rate risk, the Company has a policy to hedge cash flows up to a specific tenure using forward exchange contracts and options. At any point in time, the Company hedges its estimated foreign currency exposure in respect of forecast sales over the following 6 months or as deemed appropriate based on market conditions. In respect of imports and other payables, the Company hedges its payable as when the exposure arises.

(b) Credit risk (See note 9)

Credit risk arises when a counter party defaults on contractual obligations resulting in financial loss to the Company. Company's trade receivables are generally categories into following categories:

1. Export customers

2. Institutional customers

3. Dealers

In case of export sales, in order to mitigate credit risk, generally sales are made on advance payment terms. Where export sales are not made on advance payment terms, the same are secured through letter of credit or bank guarantee, etc.

In case of sale to institutional customers, certain credit period is allowed. In order to mitigate credit risk, majority of the sales are secured by letter of credit, bank guarantee, post dated cheques, etc.

In case of sale to dealers certain, credit period is allowed. In order to mitigate credit risk, majority of the sales made to dealers are secured by way of post dated cheques (PDC).

Further, Company has an ongoing credit evaluation process in respect of customers who are allowed credit period.

Cash and cash equivalents and bank deposits of the Company are held with banks which have high external rating. The Company considers that its cash and cash equivalents and bank deposits have low credit risk based on the external credit ratings of the counterparties.

For all other financial assets, if credit risk has not increased significantly, 12-month expected credit loss is used to provide for impairment loss. However, if credit risk has increased significantly, lifetime expected credit loss is used.

In general, it is presumed that credit risk has significantly increased since initial recognition if the payments are more than 30 days past due.

(c) Liquidity risk

The Company has a liquidity risk management framework for managing its short term, medium term and long term sources of funding vis-a-vis short term and long term utilization requirement. This is monitored through a rolling forecast showing the expected net cash flow, likely availability of cash and cash equivalents, and available undrawn borrowing facilities.

Consequent to the Companies (Corporate Social Responsibility Policy) Amended Rules, 2021 ("the rules"), the Company has subsequent to balance sheet date deposited H9.41 crore (March 31, 2025 : H12.18 crore) to a separate bank account. During the current year, amount of H1.92 crores (March 31,2025 : H0.97 crores) was transferred to APL Apollo Foundation for discharge of CSR liabilities.

46 CAPITAL MANAGEMENT (a) Risk management

The Company being in a capital intensive industry, its objective is to maintain a strong credit rating, healthy capital ratios and establish a capital structure that would maximise the return to stakeholders through optimum mix of debt and equity.

The Company's capital requirement is mainly to fund its capacity expansion, repayment of principal and interest on its borrowings and strategic acquisitions. The principal source of funding of the Company has been, and is expected to continue to be, cash generated from its operations supplemented by funding from bank borrowings and the capital markets. The Company is not subject to any externally imposed capital requirements.

The Company regularly considers other financing and refinancing opportunities to diversify its debt profile, reduce interest cost and elongate the maturity of its debt portfolio, and closely monitors its judicious allocation amongst competing capital expansion projects and strategic acquisitions, to capture market opportunities at minimum risk.

The Company monitors its capital using gearing ratio, which is net debt divided to total equity. Net debt includes, interest bearing loans and borrowings less cash and cash equivalents, bank balances other than cash and cash equivalents.

Explanation of formulas used in calculating ratios :

(1) Net debt includes borrowings (long term and short term) net of cash & cash equivalents, bank balances and fixed deposits classified in other financial assets.

(2) Earnings available for debt service includes profit after tax, finance costs, depreciation and other non cash expense.

(3) Debt service includes finance costs paid and principal repayment of borrowings (long term and short term).

(4) Earning before interest and taxes includes Profit before tax plus depreciation.

(5) Capital employed includes Tangible net worth (Total assets - total liability - intangible assets), net debt and deferred tax liability.

Note :

(a) Due to decrease in net debt during the year.

(b) Due to increase in repayment during the year.

(c) Due to increase in net profit during the year.

(d) Due to increase in average trade receivables

(e) Due to increase in net working capital during the year.

(f) Due to increase in earnings during the year.

(g) Due to decrease in fixed deposits during the year.

(c) The Company has no transactions with the companies struck off under Companies Act, 2013 or Companies Act, 1956.

(d) Disclosures under Rule 11(e)(ii) of the Company (Audit & Auditors) Rule, 2014 :

No funds have been advanced or loaned or invested (either from borrowed funds or securities premium or any other sources or kind of funds) by the Company to or in any person(s) or entity(ies), including foreign entities ('the 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 ('the Ultimate Beneficiaries') or provide any guarantee, security or the like on behalf the Ultimate Beneficiaries.

No funds have been received by the Company from any person(s) or entity(ies), including foreign entities ('the 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.

(e) Details of benami property held

No proceeding has been initiated or are pending against the company for holding any benami property under the Benami Transactions (Prohibitions) Act, 1988 (45 of 1988) and the rules made thereunder.

(f) Wilful defaulter

The Company has not been declared as a'Wilful Defaulter' by any bank or financial institution (as defined under the Companies Act, 2013) or consortium thereof, in accordance with the guidelines on wilful defaulters issued by the Reserve Bank of India.

(g) Undisclosed Income

There is no income surrendered or disclosed as income during the current or previous year in the tax assessments under the Income Tax Act, 1961, that has not been recorded in the books of account.

(h) Details of crypto currency or virtual currency

The Company has not traded or invested in crypto currency or virtual currency during the current or previous year.

(i) Valuation of Property, plant and equipments, intangible asset and investment property

The Company has not revalued its property, plant and equipment (including right-of-use assets and investment property) or intangible assets or both during the current or previous year.

(j) Registration of charges or satisfaction with Registrar of Companies

There are no charges or satisfaction which are yet to be registered with the Registrar of Companies beyond the statutory period.

(k) Rounding off amounts

All amounts disclosed in the financial statements and the accompanying notes have been rounded off to the nearest crore as per the requirement of schedule III of the Companies Act, 2013 unless otherwise stated.

(l) Subsequent events

According to management's evaluation of events subsequent to the balance sheet date, there were no significant adjustments that occurred other than disclosed/ given effect to in these financial statement as of March 31,2026.

(o) The Company has complied with the number of layers prescribed under clause (87) of section 2 of the Act read with the Companies (Restriction on Number of Layers) Rules 2017

(p) No scheme of arrangement has been approved by the competent authority in terms of sections 230 to 237 of the Companies Act, 2013, hence this is not applicable.

48 On November 21, 2025, the Government of India notified the four Labour Codes - the Code on Wages, 2019, the Industrial Relations Code, 2020, the Code on Social Security, 2020, and the Occupational Safety, Health and Working Conditions Code, 2020 - consolidating 29 existing labour laws. The Ministry of Labour & Employment published draft Central Rules and FAQs to enable assessment of the financial impact due to changes in regulations. The Company has assessed the incremental impact of these changes on the basis of the best information available, consistent with the guidance provided by the Institute of Chartered Accountants of India in its standalone statement of profit and loss for the year ended March 31,2026. 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.

49 MAINTENANCE OF AUDIT TRAIL LOG

The Ministry of Corporate Affairs (MCA) has prescribed a requirement for companies under the proviso to Rule 3(1) of the Companies (Accounts) Rules, 2014 inserted by the Companies (Accounts) Amendment Rules, 2021 requiring companies, which uses accounting software for maintaining its books of account, shall use only such accounting software which has a feature of recording audit trail of each and every transaction, creating an edit log of each change made in the books of account along with the date when such changes were made and ensuring that the audit trail cannot be disabled.

The Company has used accounting software for maintaining its books of account which has a feature of audit trail (edit log) facility and the same was enabled at the application level. During the year ended March 31, 2026, the Company has not enabled the feature of recording audit trail (edit log) at the database level for the said accounting software to log any direct data changes. Further, except for the instance / matter mentioned above, the audit trail has been preserved by the Company as per the statutory requirements for the record retention.

50 Figures for the previous year have been regrouped/rearranged, wherever considered necessary, to conform to current period's classification. The impact of such reclassification/ regrouping is not material to the standalone financial statements.

The accompanying notes form an integral part of the standalone financial statements