(b) The title deeds of immovable properties (other than properties where the Company is the lessee and the lease agreements are duly executed in favour of the lessee) are held in the name of the Company except:

a. Flat at Kalyani Nagar in possession of the Company since April 01, 1987, whose title deed is in the name of Shri Anajwala Khozema F & Smt. Anajwala Amina aggregating gross block ' 0.31 million and net block ' 0.13 million for which the exchange deed is registered with authority, however, a certified true copy and Index II are awaited.

b. Hangar at Lohegoan in possession of the Company since April 01, 1977, aggregating gross block of ' 0.12 million and net block of ' 0.04 million and Tenements at Kharadi-Vimannagar in possession of the Company since April 01, 1981 aggregating gross block of ' 0.16 million and net block of ' 0.01 million for which title deeds are not available with the Company.

(c) Capitalised borrowing costs:

The Company capitalises borrowing costs in the capital work-in-progress (CWIP) first. The amount of borrowing costs capitalised as other adjustments in the above note reflects the amount of borrowing cost transferred from Capital work-inprogress (CWIP) balances. The borrowing costs capitalised during the year ended March 31, 2026 were ' 3.82 million (March 31, 2025: ' nil).

(d) Assets include assets lying with third parties amounting to net block of ' 989.51 Million (March 31, 2025: ' 332.30 Million)

(a) Bharat Forge Global Holding GmbH (BFGH)

Contributions to the capital reserves of BFGH as per the German Commercial Code (code) form part of the equity share capital and accordingly, have been considered an investment and are redeemable subject to the provisions of the code.

During the current year, the Company made further capital contributions to BFGH of ' 2,805.28 million (Euro 26.00 million) for investment in the step-down subsidiaries Bharat Forge CDP GmbH and Bharat Forge Aluminiumtechnik GmbH.

During the previous year, the Company had made further capital contributions to BFGH of ' 3,455.75 million (Euro 39.00 million) for investment in its subsidiaries Bharat Forge CDP GmbH, Bharat Forge Aluminiumtechnik GmbH and Bharat Forge Kilsta AB and converted a loan of Euro 1.00 million amounting to ' 90.95 million.

(b) Bharat Forge America Inc.

During the previous year, the Company had invested an amount of ' 8,833.86 million by way of additional paid-in capital (USD 104.50 million) for further investment in its subsidiaries Bharat Forge Aluminium USA, Inc., Bharat Forge PMT Technologie LLC and has converted a loan of USD 12.00 million amounting to ' 1,025.28 million.

(c) Kalyani Powertrain Limited (KPL)

During the current year, the Company has invested an amount of ' 657.00 million by acquiring 65,700,000 right shares of ' 10 each in Kalyani Powertrain Limited. Also the company has made additional provision for diminution in value of investment amounting to ' 4,996.50 million in investment in equity instruments of KPL.

During the previous year, the Company had invested an amount of ' 3,779.50 million by acquiring 377,950,000 right shares of ' 10 each in Kalyani Powertrain Limited for further investment in Tork Motors Private Limited, REFU Drive GmbH and Electro Forge Limited. Also the company has made provision for diminution in value of investment amounting to ' 1,456.63 million in investment in equity instruments of KPL.

(d) BF Industrial Solutions Limited (BFISL)

During the current year, the Company had invested an amount of ' 290 million by acquiring 11,600,000 right shares of ' 10 each at a premium of ' 15 each in BF Industrial Solutions Limited for futher investment in J S Auto Cast Foundry India Private Limited.

During the previous year, the Company had invested an amount of ' 180 million by acquiring 7,826,087 right shares of ' 10 each at a premium of ' 13 each in BF Industrial Solutions Limited for further investment in J S Auto Cast Foundry India Private Limited.

(e) BF NTPC Energy Systems Limited (BFNTPCESL)

During an earlier year, the shareholders of BFNTPCESL, at their extraordinary general meeting held on October 9, 2018, decided to voluntarily liquidate the Company and engaged a liquidator under the provisions of Section 59 of the Insolvency and Bankruptcy Code 2016.

(f) BF Infrastructure Limited (BFIL)

During an earlier year, the company had made provision for impairment of investment of ' 133.35 million in investment in equity instruments of BFIL. The provision was recognised as an exceptional item in the statement of profit and loss.

(g) REFU Drive GmbH (Refu)

During the previous year, the company transferred its investments in REFU Drive GmbH to Kalyani Powertrain Limited, its wholly-owned subsidiary, for an amount of ' 1,054.50 million by transferring 12,500 equity shares of EUR 1 each, due to which REFU Drive GmbH ceased to be a joint venture of the company, in its standalone financial statements.

(h) BF Elbit Advanced Systems Private Limited

During the previous year, the company made provision for impairment of the value of investment of ' 10.10 million in equity instruments of BF Elbit. The provision has been recognised as an exceptional item in the statement of profit and loss.

(i) Avaada MHVidarbha Private Limited

During an earlier year, the Company had invested ' 113.75 million by acquiring 11,375,000 equity shares of ' 10 each to procure solar power.

(j) K Drive Mobility Private Limited (formerly AAM India Manufacturing Corporation Limited)

During the current year, the Company has acquired equity shares of ' 10 each (at a premium of ' 4.18) of K Drive Mobility Private Limited for an aggregate consideration of ' 7,474.16 million.

(k) Kalyani Strategic Systems Limited

During the current year, the company has transfered identified assets and liabilities of the Defence Business to Kalyani Strategic Systems Limited ("KSSL"), as a part of an internal restructuring exercise at a consideration of ' 4,533.00 million settled by allotment of 2,569,728 8% Optionally Convertible Redeemable Preference Shares of ' 10 each at a premium of ' 1,754.00 each [Refer Note 32 (e)].

(l) Compliance with number of layers

The Company has invested funds in subsidiaries, associates and joint ventures directly or through its wholly-owned subsidiaries. The Company has complied with the number of layers prescribed under Section 2 (87) of the Companies Act, 2013, read with the Companies (Restriction on number of Layers) Rules, 2017.

(a) Gupta Energy Private Limited (GEPL)

Shares of GEPL pledged against the facility obtained by Gupta Global Resources Private Limited. This investment is carried at fair value of ' Nil.

(b) Investments at fair value through OCI (fully paid) reflect investment in quoted and unquoted equity. Refer Note 48 for the determination of their fair values.

(c) Investments at fair value through profit or loss (fully paid) reflect investment in quoted/unquoted equity, mutual funds and debt securities. Refer Note 48 for the determination of their fair values.

(d) Sunsure Solarpark Twenty Eight Private Limited

During the previous year, the Company had invested in Sunsure Solarpark Twenty Eight Private Limited of ' 12.94 million by acquiring 10,349 equity shares of ' 10 each at a premium of ' 1,240 each.

(c) During the previous year, the Company had raised capital of ' 16,500 million through Qualified Institutions Placement

(“QIP”) of equity shares. The Investment Committee constituted by the Board of Directors of the Company, at its meeting held on December 09, 2024, had approved the allotment of 12,500,000 equity shares of face value ' 2 each to eligible

investors at a price of ' 1,320 per equity share (including a premium of ' 1,318 per equity share). The objectives of the

QIP were repayment/prepayment of certain borrowings availed by certain subsidiaries, the proposed acquisition of the equity shares of AAM India Manufacturing Corporation Private Limited, including all associated costs in relation to the proposed acquisition and general corporate purposes. During the current year, the unspent amount of ' 5,500.39 million has been utilised for the acquisition of AAM India Manufacturing Corporation Private Limited ("AAMIMCPL").

(d) Information regarding issue of shares in the last five years

(i) The Company has not issued any shares without payment being received in cash.

(ii) The Company has not issued any bonus shares.

(iii) The Company has not undertaken any buy-back of shares.

(b) Warrants subscription money:

The Company had issued and allotted to Qualified Institutional Buyers, 10,000,000 equity shares of ' 2/- each at a price of ' 272/- per share, aggregating to ' 2,720 million on April 28, 2010, simultaneously with the issue of 1,760, 10.75% Non-Convertible Debentures (NCD) of a face value of ' 1,000,000/- at par, together with 6,500,000 warrants at a price of ' 2/- each entitling the holder of each warrant to subscribe for 1 equity share of ' 2/- each at a price of ' 272/- at any time within 3 years from the date of allotment. Following the completion of the three-year term, the subscription money received on the issue of warrants was credited to the capital reserve, as the same is not refundable/adjustable. Further, the warrants had lapsed and ceased to be valid from April 28, 2013.

(c) Securities premium:

The securities premium is used to record the premium on issue of shares. The reserve can be utilised in accordance with the provisions of the Companies Act, 2013. During the previous year, the Company had issued 12,500,000 equity shares of ' 2/- each at a price of ' 1,320/- per share (including a premium of ' 1,318 per equity share). The costs that were attributable directly to the above transaction amounting to ' 302.67 million, had been adjusted against securities premium.

(d) General reserve:

General reserve is created by way of transfer from profits for the year.

(e) Retained earnings:

Retained earnings in the statement of profit and loss represent the undistributed profits of the Company as on the balance sheet date.

(c) Preshipment credit

The loan is secured against hypothecation of inventories (Refer Note 11) and trade receivables (Refer Note 12)

Pre-shipment credit - foreign currency (secured and unsecured) is repayable within 90 to 180 days and carries interest @ SOFR/Euribor 55 bps to SOFR/Euribor 110 bps p.a., respectively.

(d) Bill discounting with banks

The loan is secured against hypothecation of inventories (Refer Note 11) and trade receivables (Refer Note 12).

Bill discounting (secured and unsecured) with banks is repayable within 30 to 210 days.

Rupee and Foreign bill discounting (secured and unsecured) with banks carries interest @ 7.00% p.a. to 8.15% p.a. and SOFR 55 bps to SOFR 110 bps p.a. & EURIBOR 55 bps to EURIBOR 110 bps p.a. respectively.

(e) Loans availed for a specific purpose and their utilisation for the specified purpose:

During the previous year, the Company had availed of an unsecured rupee term loan and issued listed, rated, unsecured, redeemable, non-convertible debentures on a private placement basis. Proceeds from the said term loan had been partially utilised for the intended purpose and the balance amount had been parked in a designated bank account.

(f) Working capital facilities and statements filed with the bank

The Company has availed working capital facilities from banks in the form of pre-shipment credit, bill discounting, working capital demand loan and cash credit. The Company has filed quarterly statements with banks with regard to the securities provided against such working capital facilities on a periodic basis. The statements filed by the Company are in agreement with the books of account of the Company.

The Company has been sanctioned a fund-based limit of ' 40,080 million and a non-fund-based limit of ' 12,750 million as on March 31, 2026 and (fund-based limit of ' 40,080 million and non-fund-based limit of ' 7,250 million as on March 31, 2025) in respect of working capital facilities by its bankers.

(g) The Company has not been declared a willful defaulter by any bank or financial institution or government or any government authority.

(a) REFU Drive GmbH (Refu)

During the previous year, the Company had transferred shares of its joint venture REFU Drive GmbH to its subsidiary, Kalyani Powertrain Limited. The Company has recognised a gain on the transfer of this investment.

(b) TMJ Electric Vehicles Limited (Formerly Tevva Motors (Jersey) Limited) (Tevva)

During the previous year, the company had transferred its investments in TMJ Electric Vehicles Limited to its subsidiary, Bharat Forge International Limited. The Company has recognised a loss on the transfer of this investment.

(c) Kalyani Powertrain Limited (KPL)

The company has made provision for impairment of the value of investment in equity instruments of KPL amounting to ' 4,996.50 million for the current year and ' 1,456.63 million for the previous year.

(d) BF Elbit Advanced Systems Private Limited

During the previous year, the company had made provision for impairment of the carrying cost of the loan given to BF Elbit Advanced Systems Private Limited of ' 192.59 million and provision for impairment of the value of the investment of ' 10.10 million in equity instruments of BF Elbit.

(e) Kalyani Strategic Systems limited (KSSL)

The Board of Directors of the Company approved the transfer of identified assets and liabilities pertaining to its Defence Business to Kalyani Strategic Systems Limited ('KSSL'), a wholly-owned subsidiary of the Company, as part of an internal restructuring exercise. During the year, the Company has recognised a gain of ' 413.55 million resulting from this transfer.

(f) Expenses incurred for restructuring of subsidiary

Expenses incurred in relation to the restructuring of steel forging operations of the wholly-owned subsidiary, Bharat Forge CDP GmbH, Germany.

The Company had total cash outflows for leases of ' 463.68 million (March 31, 2025: ' 461.46 million). The Company also had non-cash additions to right-of-use assets and lease liabilities of ' 2.27 million (March 31, 2025: ' 0.60 million) respectively.

The Company has several lease contracts that include extension and termination options. These options are negotiated by management to provide flexibility in managing the leased-asset portfolio and align with the Company’s business needs. Management exercises judgement in determining whether the extension and termination options are reasonably certain to be exercised [Refer Note 52].

(b) Company as lessor

The Company has entered into agreements/arrangements in the nature of lease/sub-lease agreements with different lessees for plant and machinery, land and building. Periods of agreement/arrangement are generally three to 25 years and cancellable with a notice of 30 days to six months and renewal at the option of the lessee/lessor.

37. GRATUITY AND OTHER POST-EMPLOYMENT BENEFIT PLANS

(a) Gratuity plan Funded scheme

The Company has a defined benefit gratuity plan for its employees. The gratuity plan is governed by the Code on Social Security, 2020. The gratuity plan provides for a lump-sum payment to vested employees at retirement, death while in employment or on termination of employment in accordance with the provisions of the Code on Social Security, 2020 or as per the Company Scheme, as applicable. Vesting occurs upon completion of the contractual period of continuous years of service as defined in the Code on Social Security, 2020. The Company manages the plan through a Trust.

Risk exposure and asset-liability matching

Provision of a defined benefit scheme poses certain risks, some of which are detailed hereunder, as the Company takes on uncertain long-term obligations to make future benefit payments.

1) Liability risks

a) Asset-liability mismatch risk

Risk arises when there is a mismatch between the duration of assets and liabilities. By matching duration and the defined benefit liabilities, the Company can neutralise valuation swings caused by interest rate movements. Hence, companies are encouraged to adopt asset-liability management.

b) Discount rate risk

Variations in the discount rate used to compute the present value of liabilities may appear minor, but they can have a significant impact on the defined benefit liabilities.

c) Future salary escalation and inflation risk

Since price inflation and salary growth are linked economically, they are combined for disclosure purposes. Rising salaries will often lead to higher future defined benefit payments, resulting in a higher present value of liabilities, especially since unexpected salary increases provided at management's discretion may lead to uncertainties in estimating this increasing risk.

2) Asset risks

All plan assets are managed by the Trust and are invested in various funds (mainly LIC of India). LIC has a sovereign guarantee and has been providing consistent and competitive returns over the years. The Company has opted for a traditional fund wherein all assets are invested primarily in risk-averse markets. The Company has no control over the management of funds, and this option provides a high level of safety for the total corpus. A single account is maintained for both investment and claim settlement, and hence, 100% liquidity is ensured, and interest rate and inflation risk are also taken care of.

The following table summarises the components of net benefit expenses recognised in the Statement of Profit and Loss and the funded status and amounts recognised in the balance sheet for the gratuity plans.

Weighted average duration of the defined benefit plan obligation (based on discounted cash flows using mortality, withdrawal and interest rate) is 10.28 years (March 31, 2025: 10.78 years).

(b) Special gratuity

The Company has a defined benefit special gratuity plan. Under this plan, every eligible employee who has completed 10 years of service receives an additional gratuity upon departure, which is the salary for specified months based on the last drawn basic salary. The scheme is unfunded.

1) Liability risks

a) Asset-liability mismatch risk

Risk arises when there is a mismatch between the duration of the assets and liabilities. By matching duration and the defined benefit liabilities, the Company can neutralise valuation swings caused by interest rate movements. Hence, companies are encouraged to adopt asset-liability management.

b) Discount rate risk

Variations in the discount rate used to compute the present value of the liabilities may appear minor, but they can have a significant impact on the defined benefit liabilities.

c) Future salary escalation and inflation risk

Since price inflation and salary growth are linked economically, they are combined for disclosure purposes. Rising salaries will often lead to higher future defined benefit payments, resulting in a higher present value of liabilities, especially since unexpected salary increases provided at management's discretion may lead to uncertainties in estimating this increasing risk.

2) Unfunded plan risk

This represents unmanaged risk and a growing liability. There is an inherent risk here that the Company may default on paying the benefits in adverse circumstances. Funding the plan removes volatility in the Company's financial statements and also benefit risk through return on the funds made available for the plan.

(c) Provident Fund

In accordance with the law, all employees of the Company are entitled to receive benefits under the provident fund. The Company operates two plans for its employees to provide employee benefits in the nature of provident fund, viz. defined contribution plan and defined benefit plan.

Under the defined contribution plan, the provident fund is contributed to the government-administered provident fund. The Company has no obligation, other than the contribution payable to the provident fund (Refer to Note 28).

Under the defined benefit plan, the Company contributes to the "Bharat Forge Company Limited Staff Provident Fund Trust". The Company has an obligation to make good the shortfall, if any, between the return from the investments of the trust and the notified interest rate.

The details of the defined benefit plan based on actuarial valuation report are as follows:

1) Liability risks:

a) Asset-liability mismatch risk

Risk arises when there is a mismatch between the duration of assets and liabilities. By matching duration and the defined benefit liabilities, the Company is successfully able to neutralise valuation swings caused by interest rate movements. Hence, companies are encouraged to adopt asset-liability management.

b) Discount rate risk

Variations in the discount rate used to compute the present value of the liabilities may seem small, but in practice can have a significant impact on the defined benefit liabilities.

c) Future salary escalation and inflation risk

Since price inflation and salary growth are linked economically, they are combined for disclosure purposes. Rising salaries will often lead to higher future defined benefit payments, resulting in a higher present value of liabilities, especially since unexpected salary increases provided at management's discretion may lead to uncertainties in estimating this increasing risk.

2) Asset risks:

All plan assets are managed by the Trust and funds are invested in various securities as per the prescribed pattern by the Government. The Company has no control over the management of funds, and this option provides a high level of safety for the total corpus.

(a) (a) The Company has issued various financial guarantees/support letters for the working capital requirement of the

subsidiary and step-down subsidiary companies. The management has considered the probability of outflow of the same to be remote.

The Company, for its newly set-up plant located at Mambattu, Nellore, Andhra Pradesh, for the manufacture of aluminium castings, had imported capital goods under the Export Promotion Capital Goods Scheme of the Government of India at a concessional duty, giving an undertaking to fulfil the quantified export. As at March 31, 2025, the export obligation aggregates to ' 697.18 million. This is to be satisfied over a period of 6 years (block years 1^st to 4^th year - 50%, and 5^th to 6^th year - 50%) from December 14, 2018, as specified. Period for which had been completed in the previous financial year and all outstanding obligations are paid in the current financial year.

41. CAPITAL MANAGEMENT

For the purpose of the Company’s capital management, capital includes issued equity share capital, securities premium and all other equity reserves attributable to the equity holders of the Company. The primary objective of the Company’s capital management is to maximise shareholder value.

The Company manages its capital structure and makes adjustments in light of changes in economic conditions and the financial covenant requirements. To maintain or adjust the capital structure, the Company may adjust the dividend payments to shareholders, return capital to shareholders or issue new shares. The Company monitors capital using a net debt-to-equity ratio, which is net debt divided by equity. The Company’s policy is to keep the net debt-to-equity ratio below 1.00. The Company includes within its borrowings net debt and interest-bearing loans less cash and cash equivalents.

(f) Details of shortfall, cumulative shortfall and reasons for shortfall

During the year ended March 31, 2026, as against required expenditure of ' 360.20 million (March 31, 2025: ' 306.00 million), the Company has incurred expenditure of ' 298.91 million (March 31, 2025: ' 244.78 million) and an amount of ' 61.29 million (March 31, 2025: ' 61.22 million) remained unspent due to phase-wise implementation of CSR activities. The unspent amount for the year ended March 31, 2026, has been transferred to the unspent CSR account, and the same shall be utilised by the Company in the next year for CSR projects undertaken by the Company.

(g) Nature of activities Ongoing projects

As part of ongoing projects for CSR, the Company has undertaken initiatives such as village development (water, internal roads, livelihood, health & education), environment sustenance (water harvesting, trees plantation, renewal of solar energy and waste management), skill development, rural development, education, community development & women empowerment, health initiatives (telemedicine setups, cancer screening camps, strengthening of primary health care centres), protection of art & culture and promotion of sports.

Other than ongoing projects

These include activities related to educational sponsorship.

(b) KPIT Technologies Limited

The Company had invested in 613,000 equity shares of ' 2/- each of KPIT Technologies Limited. The Hon'ble National Company Law Tribunal, Mumbai Bench, has by its order approved the composite scheme of arrangement (Scheme) amongst Birlasoft (India) Limited, KPIT Technologies Limited, KPIT Engineering Limited and their respective shareholders. Pursuant to the Scheme, the engineering business of KPIT Technologies Limited has been transferred to KPIT Engineering Limited.

Pursuant to the order, Birlasoft (India) Limited has merged with KPIT Technologies Limited and KPIT Technologies has been renamed as 'Birlasoft Limited'. KPIT Engineering Limited has been renamed as 'KPIT Technologies Limited'.

Pursuant to the Scheme, the Company had received 1 equity share of KPIT Technologies Ltd. of ' 10/- each for 1 equity share of Birlasoft Ltd. for ' 2/- each. The ratio of the cost of acquisition per share of Birlasoft Ltd. and KPIT Technologies Ltd. was 56.64% to 43.36%.

The investment in shares has been classified under level 1 of the fair value hierarchy as on March 31, 2026 and March 31, 2025.

49. FINANCIAL INSTRUMENTS BY CATEGORY

Set out below is a comparison, by class, of the carrying amounts and fair values of the Company’s financial instruments as of March 31, 2026; other than those with carrying amounts that are reasonable approximations of fair values:

(a) Gupta Energy Private Limited (GEPL)

The Company has an investment in the equity instrument of GEPL. The same is classified as at fair value through profit and loss. Over the years, GEPL has been making consistent losses. The management of the Company has attempted to obtain the latest information for valuation. However, such information is not available as GEPL has not filed financial statements with the Ministry of Corporate Affairs (MCA) since FY 2014-15. In view of the above, the management believes that the fair value of the investment is Nil as at April 1, 2015 and thereafter.

* Investments do not include investments in subsidiaries, joint ventures and associates that are carried at cost and hence are not required to be disclosed as per Ind AS 107 "Financial Instruments Disclosures”.

The management assessed that the fair value of cash and cash equivalents, current trade receivables, derivative instruments, trade payables and other current financial assets and liabilities approximates their carrying amounts, largely due to the short-term maturities of these instruments.

Further, the management assessed that the fair value of security deposits, non-current trade receivables and other non-current receivables approximates their carrying amounts, largely due to discounting/expected credit loss at rates which are an approximation of current lending rates.

The fair value of the financial assets and liabilities is included at the amount at which the instrument could be exchanged in a

current transaction between willing parties, other than in a forced or liquidation sale. The following methods and assumptions

were used to estimate the fair values:

(i) Long-term fixed-rate and variable-rate receivables are evaluated by the Company based on parameters such as the individual creditworthiness of the customer. Based on this evaluation, allowances are taken into account for the expected credit losses of these receivables.

(ii) The fair values of quoted instruments are based on price quotations at the reporting date. The fair value of unquoted instruments, loans from banks as well as other non-current financial liabilities, is estimated by discounting future cash flows using rates currently available for debt on similar terms, credit risk and remaining maturities. In addition to being sensitive to reasonably possible changes in forecast cash flows or the discount rate, the fair value of the equity instruments is also sensitive to reasonably possible changes in growth rates. The valuation requires management to use unobservable inputs in the model, of which the significant unobservable inputs are disclosed in Note 48. Management regularly assesses a range of reasonably possible alternatives for those significant unobservable inputs and determines their impact on the total fair value.

(iii) The fair values of the unquoted equity shares have been estimated using a cost method (KEIPL) as well as the current market value method (ASPL, AMPL and STEPL). The valuation requires management to make certain assumptions about the model inputs, including forecast cash flows, discount rate, credit risk and volatility. The probabilities of the various estimates within the range can be reasonably assessed and are used in management’s estimates of fair value for these unquoted equity investments.

(iv) The Company enters into derivative financial instruments with various counterparties, principally financial institutions with investment-grade credit ratings. Foreign exchange forward contracts are valued using valuation techniques that employ market-observable inputs. The most frequently applied valuation techniques include forward pricing using present value calculations. The models incorporate various inputs, including the credit quality of counterparties, foreign exchange spot and forward rates, yield curves of the respective currencies, currency basis spreads between the respective currencies and forward rate curves of the underlying. All derivative contracts are fully cash-collateralised, thereby eliminating both counterparty and the Company’s own non-performance risk. As at March 31, 2026, the marked-to-market value of derivative asset positions is net of a credit valuation adjustment attributable to derivative counterparty default risk. The changes in counterparty credit risk had no material effect on the hedge effectiveness assessment for derivatives designated in hedge relationships and other financial instruments recognised at fair value.

(v) The Company’s borrowings and loans are appearing in the books at fair value since they are interest-bearing; hence, discounting of the same is not required. The own non-performance risk as at March 31, 2026 and March 31, 2025 was assessed to be insignificant.

50. HEDGING ACTIVITIES AND DERIVATIVES

Cash flow hedges

Foreign exchange forward contracts measured at fair value through OCI are designated as hedging instruments in cash flow hedges of forecast sales in US dollars and euros. These forecast transactions are highly probable.

In the current year, cross-currency swap contracts being measured at fair value through OCI are designated as hedging instruments in cash flow hedges of forecast sales in Euro. These forecast transactions are highly probable.

During the current year, the company has converted one of its term loans issued in Indian Rupees (INR) into a Euro loan for

interest rate arbitrage. Under the original agreement, the interest rate for the term loan was fixed at 5.90%, but due to the

cross-currency swap arrangement, the effective interest rate was fixed at 1.75% on the EURO equivalent.

During the previous year, the company had converted one of its term loan issues in Indian Rupees (INR) into a Euro loan for

interest rate arbitrage. Under the original agreement, the interest rate for the term loan was fixed at 7.96%, but due to the

cross-currency swap arrangement, the effective interest rate was fixed at 3.58% on the EURO equivalent.

During the previous year, the Company had converted one of its Non-Convertible Debentures (NCD) issued in Indian Rupees (INR) into a Euro loan for interest rate arbitrage. Under the original agreement, the interest rate for 7.80% Bharat Forge Limited 2027 listed, rated, unsecured, redeemable, non-convertible debentures was fixed at 7.80%, but due to the cross-currency swap arrangement, the effective interest rate has been fixed at 3.52% on the EURO equivalent, decreasing the corresponding interest cost on borrowings from NCD issuance.

The cash flow hedges of the expected future sales and underlying loan during the year ended March 31, 2026 were assessed to be highly effective and a net unrealised (loss)/gain of ' (4,440.94) million (March 31, 2025: ' 748.93 million), with a deferred tax liability/(asset) of ' (1,117.74) million (March 31, 2025: ' 188.50 million) relating to the hedging instruments, is included in the OCI.

The amount removed from the OCI during the year and included in the carrying amount of the hedged item as an adjustment for the year ended March 31, 2026, as detailed in Note 33, totalling ' 509.69 million (gross of deferred tax) (March 31, 2025: ' 1,130.69 million). The amounts retained in OCI as on March 31, 2026, are expected to mature and affect the Statement of Profit and Loss for the year ended March 31, 2026.

Derivatives not designated as hedging instruments

During the previous year, the company had converted one of its term loan issues in Indian Rupees (INR) into a Euro loan for interest rate arbitrage. Under the original agreement, the interest rate for the term loan was fixed at 7.96%, but due to the cross-currency swap arrangement, the effective interest rate was fixed at 3.58% on the EURO equivalent.

During the previous year, the Company had converted two of its Non-Convertible Debentures (NCD) issued in Indian Rupees (INR) into a Euro loan for interest rate arbitrage. Under the original agreement, the interest rate for 5.80% BFL 2025 listed, rated, unsecured, redeemable, non-convertible debentures was fixed at 5.80%, but due to the cross-currency swap arrangement, the effective interest rate has been fixed at 2.40% on the EURO equivalent. The interest rate for 7.80% Bharat Forge Limited 2027 listed, rated, unsecured, redeemable, non-convertible debentures was fixed at 7.80%, but due to the cross-currency swap arrangement, the effective interest rate has been fixed at 3.52% on the EURO equivalent, decreasing the corresponding interest cost on borrowings from NCD issuance.

52. SIGNIFICANT ACCOUNTING JUDGEMENTS, ESTIMATES AND ASSUMPTIONS

The preparation of the Company’s financial statements requires management to make judgements, estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities and the accompanying disclosures, including the disclosure of contingent liabilities. Uncertainty about these assumptions and estimates could result in outcomes requiring a material adjustment to the carrying amount of assets or liabilities affected in future periods.

Judgements

In the process of applying the Company’s accounting policies, the management has made the following judgements, which have the most significant effect on the amounts recognised in the financial statements:

1) Leases

Determining the lease term of contracts with renewal and termination options - Company as lessee

The Company determines the lease term as the non-cancellable term of the lease, together with any periods covered by an option to extend the lease if it is reasonably certain to be exercised, or any periods covered by an option to terminate the lease, if it is reasonably certain not to be exercised.

The Company has several lease contracts that include extension and termination options. The Company applies judgement in evaluating whether it is reasonably certain to exercise the option to renew or terminate the lease. That is, it considers all relevant factors that create an economic incentive for it to exercise either the renewal or termination. After the commencement date, the Company reassesses the lease term if there is a significant event or change in circumstances that is within its control and affects its ability to exercise or not to exercise the option to renew or to terminate (e.g., construction of significant leasehold improvements or significant customisation to the leased asset).

Refer to Note 35 for information on potential future rental payments relating to periods following the exercise date of extension and termination options that are not included in the lease term.

Property lease classification - Company as lessor

The Company has entered into commercial property leases on its investment property portfolio. The Company has determined, based on an evaluation of the terms and conditions of the arrangements, such as the lease term not constituting a major part of the economic life of the commercial property and the present value of the minimum lease payments not amounting to substantially all of the fair value of the commercial property, that it retains substantially all the risks and rewards incidental to ownership of these properties and accounts for the contracts as operating leases.

2) Embedded derivatives

The Company has entered into certain hybrid contracts, i.e. where an embedded derivative is a component of a non-derivative host contract in the nature of a financial liability. The Company has exercised judgement to evaluate if the economic characteristics and risks of the embedded derivative are closely related to the economic characteristics and risks of the host. Based on the evaluation, the Company has concluded that these economic characteristics and risks of the embedded derivatives are closely related to the economic characteristics and risks of the host and thus not separated from the host contract and not accounted for separately.

3) Revenue from contracts with customers

The Company applied the following judgements that significantly affect the determination of the amount and timing of revenue from contracts with customers:

a) Identifying contracts with customers

The Company enters into a Master service agreement ('MSA') with its customers that defines the key terms of the contract. However, the rates and quantities to be supplied is are separately agreed through purchase orders. Management has exercised judgement to determine that the contract with customers for Ind AS 115 is an MSA and customer purchase orders identifying performance obligations and other associated terms.

b) Identifying performance obligation

The Company enters into contracts with customers for the sale of goods and tooling income. The Company determined that both the goods and tooling income are capable of being distinct. The fact that the Company regularly sells these goods on a standalone basis indicates that the customer can benefit from them on an individual basis. The Company also determined that the promises to transfer these goods are distinct within the context of the contract. These goods are not inputs to a combined item in the contract. Hence, the tooling income and the sale of goods are separate performance obligations.

c) Determination of the timing of satisfaction of performance obligation

The Company concluded that the sale of goods and tooling income is to be recognised at a point in time because it does not meet the criteria for recognising revenue over a period of time. The Company has applied judgement in determining the point in time when the control of the goods and tooling income is transferred based on the criteria mentioned in the standard read along with the contract with customers, applicable laws and considering the industry practices which are as follows:

(1) Sale of goods

The goods manufactured are "Build to print" as per the design specified by the customer for which the tools/ dies are approved before commercial production commences. Further, the dispatch of goods is made on the basis of purchase orders obtained from the customer, taking into account the just-in-time production model with the customer.

(2) Tooling income

Tools are manufactured as per the design specified by the customer, which is approved on the basis of the customer acceptance. Management has used judgement in the identification of the point in time when the tools are deemed to have been accepted by customers.

d) Litigations

The Company has various ongoing litigations, the outcome of which may have a material effect on the financial position, results of operations or cash flows. The Company’s legal team regularly analyses current information about these matters and assesses the requirement for a provision for probable losses, including estimates of legal expense to resolve such matters. In making the decision regarding the need for loss provision, management considers the degree of probability of an unfavourable outcome and the ability to make a sufficiently reliable estimate of the amount of loss. The filing of a lawsuit or formal assertion of a claim against the Company or the disclosure of any such suit or assertions does not automatically indicate that a provision for a loss may be appropriate.

Considering the facts on hand and the current stage of certain ongoing litigations where it stands, the Company foresees a remote risk of any material claim arising from claims against the Company. Management has exercised significant judgement in assessing the impact, if any, on the disclosures in respect of litigations in relation to the Company.

Estimates and assumptions

The key assumptions concerning the future and other key sources of estimation uncertainty at the reporting date that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are described below. The Company based its assumptions and estimates on parameters available at the time the financial statements were prepared. Existing circumstances and assumptions about future developments, however, may change due to market changes or circumstances that are beyond the control of the Company. Such changes are reflected in the assumptions when they occur.

— —- -- - - ---— —........— ------- - — 7 " " -- '' —— " ---— ‘ -- ---1 — — ... f

1) Estimating the incremental borrowing rate to measure lease liabilities

The Company cannot readily determine the interest rate implicit in the lease; therefore, it uses its incremental borrowing rate (IBR) to measure lease liabilities. The IBR is the rate of interest that the Company would have to pay to borrow over a similar term and with similar security for the funds necessary to obtain an asset of a similar value to the right-of-use asset in a similar economic environment. The IBR therefore reflects what the Company ‘would have to pay’. It requires estimation when no observable rates are available or when they need to be adjusted to reflect the terms and conditions of the lease. The Company estimates the IBR using observable inputs (such as market interest rates) when available and is required to make certain entity-specific estimates.

2) Impairment of non-financial assets (tangible and intangible)

The Company assesses at each reporting date whether there is an indication that an asset may be impaired. If any indication exists, or when annual impairment testing for an asset is required, the Company estimates the asset’s recoverable amount. An asset’s recoverable amount is the higher of an asset’s or a Cash Generating Unit's (CGU’s) fair value less costs of disposal and its value in use. It is determined for an individual asset, unless the asset or CGU exceeds its recoverable amount, the asset is considered impaired and is written down to its recoverable amount.

In assessing the 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. In determining the fair value less costs to disposal, recent market transactions are taken into account. If no such transactions can be identified, an appropriate valuation model is used. These calculations are corroborated by valuation multiples or other available fair value indicators.

3) Warranty

Provision for assurance-type warranties predominantly covers risk arising from expected claims for damages on the products sold by the Company, based on the expectation of the level of repairs for the components. Provisions related to these assurance-type warranties are recognised when the product is sold to the customer and are accounted for as warranty provisions. The estimate of warranty-related costs is revised annually. The Company usually provides assurance-type warranty for a period of two years.

The Company also provides a warranty beyond fixing defects to ensure that the products are made available for a pre-defined period during the tenure of the warranty. These are classified as service-type warranties. Refer to the accounting policy on service-type warranty.

Service-type warranty

Apart from assurance-type warranties covered in warranty provisions, the Company also provides a warranty beyond fixing defects to ensure that the products are made available for a pre-defined period during the tenure of warranty. These service-type warranties are usually sold bundled together with the product. Contracts for bundled sales of product and service-type warranties comprise two performance obligations because the product and service-type warranties are distinct within the context of the contract. Using the expected cost-plus margin approach, a portion of the transaction price is allocated to the service-type warranty and recognised as a contract liability. Revenue for service-type warranties is recognised over the period in which the service is provided based on the time elapsed.

4) Defined benefit plans

The cost of the defined benefit gratuity plan, other defined benefit plan and other post-employment plans are determined using actuarial valuations. An actuarial valuation involves making various assumptions that may differ from developments in the future. These include the determination of the discount rate, future salary increases, expected returns on plan assets and mortality rates. Due to the complexities in valuation and its long-term nature, a defined benefit obligation is highly sensitive to changes in these assumptions. All assumptions are reviewed at each reporting date.

The mortality rate is based on publicly available mortality tables for India. Those mortality tables tend to change only at intervals in response to demographic changes. Future salary increases, discount rate and return on planned assets are based on expected inflation rates for India. Further details about defined benefit plans are given in Note 37.

5) Fair value measurement of financial instruments

When the fair values of financial assets and financial liabilities recorded in the balance sheet cannot be measured based on quoted prices in active markets, their fair values are measured using different valuation techniques, including the DCF model. The inputs to these models are taken from observable markets where possible, but where this is not feasible, a degree of judgement is required in establishing fair values. Judgements and estimates include considerations of inputs such as liquidity risk, credit risk and volatility. Changes in assumptions about these factors could affect the reported fair value of financial instruments. Refer to Note 48 and 49 for further disclosures.

6) Impairment of financial assets

The impairment provisions for financial assets are based on assumptions about the risk of default and expected loss rates. The Company uses judgement in making these assumptions and selecting the inputs to the impairment calculation, based on the Company’s past history, existing market conditions as well as forward-looking estimates at the end of each reporting period. Further, the Company also evaluates risk with respect to the expected loss on account of loss in time value of money, which is calculated using the average cost of capital for relevant financial assets.

The Company assesses impairment of investments in subsidiaries, associates and joint ventures which are recorded at cost. The recoverable amount requires estimates of profit, discount rate, future growth rate, terminal values, etc., based on management’s best estimate.

7) Provision for inventories

Management reviews the inventory age listing on a periodic basis. This review involves a comparison of the carrying value of aged inventory items with the respective net realisable value. The purpose is to ascertain whether an allowance is required to be made in the financial statements for any obsolete slow-moving items and net realisable value. Management is satisfied that an adequate allowance for obsolete and slow-moving inventories has been made in the financial statements.

53. FINANCIAL RiSK MANAGEMENT OBJECTiVES AND POLiCiES

The Company’s principal financial liabilities other than derivatives comprise loans and borrowings, trade payables and financial guarantee contracts. The main purpose of these financial liabilities is to finance the Company’s operations. The Company’s principal financial assets include loans, trade and other receivables and cash and cash equivalents that derive directly from its operations. The Company also holds FVTOCI and FVTPL investments and enters into derivative transactions.

The Company is exposed to market risks, credit risks and liquidity risks. The Company’s senior management oversees the management of these risks. The Company’s senior management is supported by a Finance and Risk Management Committee (FRMC) that advises on financial risks and the appropriate financial risk governance framework for the Company. The FRMC provides assurance that there are appropriate policies and procedures governing the Company’s financial risk activities and that financial risks are identified, measured and managed in accordance with the Company’s policies and risk objectives. Further, all derivative activities for risk management purposes are carried out by experienced members of the senior management who have the relevant expertise, appropriate skills and supervision. It is the Company’s policy that no trading in derivatives for speculative purposes may be undertaken. The Board of Directors reviews and agrees on policies for managing each of these risks, which are summarised as follows.

53. FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES (CONTD.)

Market risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate following changes in market prices. Market risk comprises three types of risk: interest rate risk, currency risk and other price risk, such as equity price risk and commodity risk. Financial instruments affected by market risk include loans and borrowings, deposits, investments in mutual funds, FVTOQ investments and derivative financial instruments.

The sensitivity analysis in the following sections relates to the position as at March 31, 2026 and March 31, 2025.

The sensitivity analysis has been prepared on the basis that the amount of net debt, the ratio of fixed to floating interest rates of the debt and derivatives and the proportion of financial instruments in foreign currencies are all constant and based on hedge designations in place at March 31, 2026 and compared to March 31, 2025. The analysis excludes the impact of movements in market variables on the carrying values of gratuity and other post-retirement obligations and provisions.

The following assumptions have been made in calculating the sensitivity analysis:

• The sensitivity of the relevant profit or loss item is the effect of the assumed changes in respective market risks. This is based on the financial assets and financial liabilities held as at March 31, 2026 and March 31, 2025, including the effect of hedge accounting.

Interest rate risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Company’s exposure to the risk of changes in market interest rates relates primarily to the Company’s long-term debt obligations with floating interest rates, other than 5.97% rated unsecured non-convertible debentures, 5.80% rated unsecured non-convertible debentures, 7.80% rated unsecured non-convertible debentures and 5.90% rupee term loan from the bank, which have a fixed interest rate.

The Company generally borrows in foreign currency, considering the natural hedge it has against its exports. Long-term and short-term foreign currency debt obligations carry floating interest rates.

The Company avails short-term debt in foreign currency up to a tenor of 9 months, in the nature of export financing for its working capital requirements. SOFR or EURIBOR for the said debt obligations is fixed for the entire tenor of the debt at the time of availing it.

During the current and earlier years, the Company has availed a Rupee term loan with a floating interest rate from a bank, which is linked to a 3-month T-bill.

The Company has the option to reset LIBOR/SOFR or EURIBOR either for 6 Months or 3 months for its long-term debt obligations. To manage its interest rate risk, the Company evaluates the expected benefit either from the LIBOR/SOFR or EURIBOR resetting options and accordingly decides. The Company also has an option for its long-term debt obligations to enter into interest rate swaps, in which it agrees to exchange, at specified intervals, the difference between fixed and variable rate interest amounts calculated with a reference to an agreed-upon notional principal amount.

As at March 31 2026, the Company’s 78.29% of total long-term borrowings are covered under a floating interest rate (March 31 2025: 39.75%).

Foreign currency risk

Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate because of changes in foreign exchange rates. The Company’s exposure to the risk of changes in foreign exchange rates relates primarily to its export revenue and long-term foreign currency borrowings.

The Company manages its foreign currency risk by hedging its forecasted sales up to 3 to 4 years to the extent of 25%-65% on a rolling basis and the Company keeps its long-term foreign currency borrowings unhedged, which will be a natural hedge against its unhedged exports. The Company may hedge its long-term borrowing near the repayment date to avoid rupee volatility in the short term.

The Company avails pre-shipment credit and export bill discounting facilities in INR to avail interest subvention benefits. The Company manages foreign currency risk by hedging the receivables against the said liability. The Company also manages foreign currency risk in relation to export receivable balances through forward exchange contracts.

The following analysis has been worked out based on the net exposures of the Company as of the date of the balance sheet, which could affect the Statement of Profit and Loss and other comprehensive income and equity. Further, the exposure as indicated below is mitigated by some of the derivative contracts entered into by the Company as disclosed in Note number 50.

Commodity price risk

The Company is affected by the price volatility of certain commodities. Its operating activities require an on-going purchase of steel. Due to the significant volatility of the steel prices, the Company has agreed with its customers for the pass-through of increase/decrease in the steel prices There may be a lag effect in the case of such pass-through arrangements.

Commodity price sensitivity

The Company has back-to-back pass-through arrangements for volatility in raw material prices for most of customers. However, in a few cases there may be a lag effect in the case of such pass-through arrangements and it might affect the Company’s profit and equity.

Equity price risk

The Company is exposed to price risk in equity investments and classified on the balance sheet as fair value through profit and loss and through other comprehensive income. To manage its price risk arising from investments in equity, the Company diversifies its portfolio. Diversification and investment in the portfolio are done in accordance with the limits set by the Board of Directors.

At the reporting date, the exposure to unlisted equity securities at fair value was ' 1,466.13 million (March 31, 2025: ' 1,423.35 million). Sensitivity analysis of major investments has been provided in Note 48.

At the reporting date, the exposure to listed equity securities at fair value was ' 592.95 million (March 31, 2025: ' 1,039.13 million). An increase/decrease of 10% on the NSE market index could have an impact of approximately ' 59.29 million (March 31, 2025: ' 103.91 million) on the OCI or equity attributable to the Company. These changes would not affect profit and loss.

Other price risks

The Company invests its surplus funds in mutual funds which are linked to debt markets. The Company is exposed to price risk in investments that are classified as fair value through profit and loss. To manage its price risk arising from investments in mutual funds, the Company diversifies its portfolio. Diversification and investments in the portfolio are done in accordance with the Company’s investment policy approved by the Board of Directors. Accordingly, an increase/decrease in interest rates by 0.25% will have an impact of ' 21.08 million (March 31, 2025: ' 25.92 million).

Credit risk

Credit risk is the risk that the counterparty will not meet its obligations under a financial instrument or customer contract, leading to a financial loss. The Company is exposed to credit risk from its operating activities (primarily trade receivables) and from its financing activities, including deposits with banks and financial institutions, investment in mutual funds, other receivables and deposits, foreign exchange transactions and other financial instruments.

Trade receivable

Customer credit risk is managed by the Company’s established policies, procedures and controls relating to customer credit risk management. Further, the Company’s customers include marquee Original Equipment Manufacturers and Tier I companies, having long-standing relationships with the Company. Outstanding customer receivables are regularly monitored and reconciled. At March 31, 2026, receivables from the Company’s top 5 customers accounted for approximately 65.96% (March 31, 2025: 73.52%) of all the receivables outstanding. The Company has used a practical expedient by

computing the expected credit loss allowance for trade receivables based on the provision matrix (Refer to the table below). Further, an impairment analysis is performed at each reporting date on an individual basis for major customers. In addition, a large number of minor receivables are grouped into homogeneous groups and assessed for impairment collectively. The calculation is based on historical data and subsequent expectations of receipts. The maximum exposure to credit risk at the reporting date is the carrying value of each class of financial assets disclosed in Note 12. The Company does not hold collateral as security except in the case of a few customers. The Company evaluates the concentration of risk with respect to trade receivables as low, as its customers are located in several jurisdictions and industries and operate in largely independent markets.

Other receivables, deposits with banks, mutual funds and loans given

Credit risk from balances with banks, financial institutions and mutual funds is managed in accordance with the Company’s approved investment policy. Investments of surplus funds are made only with approved Counterparties and within credit limits assigned to each counterparty. Counterparty credit limits are reviewed by the Company’s Board of Directors on a regular basis and the said limits are revised as and when appropriate. The limits are set to minimise the concentration of risks and therefore mitigate financial loss through the counterparty’s potential failure to make payments.

The Company’s maximum exposure to credit risk for the components of the balance sheet at March 31, 2026 and March 31, 2025 is the carrying amounts as illustrated in the respective notes except for financial guarantees and derivative financial instruments. The Company’s maximum exposure relating to financial guarantees and financial derivative instruments is noted in Note 38 and Note 50, respectively.

Liquidity risk

Cash flow forecasting is performed by the Treasury function. Treasury monitors rolling forecasts of the Company’s liquidity requirements to ensure it has sufficient cash to meet operational needs. Such forecasting takes into consideration the compliance with internal cash management. The Company’s treasury invests surplus cash in marketable securities as per the approved policy, choosing instruments with appropriate maturities or sufficient liquidity to provide headroom as determined by the above-mentioned forecasts. At the reporting date, the Company held mutual funds of ' 10,376.75 million (March 31, 2025: ' 12,207.33 million) and other liquid assets of ' 3,594.76 million (March 31, 2025: ' 3,591.84 million) that are expected to readily generate cash inflows for managing liquidity risk.

As per the Company’s policy, there should not be a concentration of loan repayments in a particular financial year. In the case of such concentration of repayments, the Company evaluates the option of refinancing the entire or part of the repayments with an extended maturity. The Company assessed the concentration of risk with respect to refinancing its debt and concluded it to be low. The Company has access to a sufficient variety of funding sources, and debt maturing within 12 months can be rolled over with existing lenders. The Company is also maintaining surplus funds with a short-term liquidity for future repayment of loans.

The management believes that the probability of any outflow on account of financial guarantees issued by the Company being called on is remote. Hence, the same has not been included in the above table. Further, as and when required, the Company also gives financial support letters to subsidiaries.

54. STANDARDS ISSUED BUT NOT YET EFFECTIVE

The Ministry of Corporate Affairs (“MCA”) notifies new standards or amendments to existing standards under the Companies (Indian Accounting Standards) Rules as issued from time to time.

In May 2025, the MCA notified amendments to Ind AS 21 - The Effects of Changes in Foreign Exchange Rates, applicable w.e.f. April 1, 2025. The Company has reviewed the amendment and based on its evaluation, has determined that it does not have any significant impact on its financial statements.

In August 2025, the MCA notified the following amendments to:

1) Ind AS 1, Presentation of Financial Statements, effective from April 1, 2025, introduces amendments concerning the classification of liabilities as current or non-current, including non-current liabilities subject to covenants. Specifically, regarding the classification of a liability as current, the amendment eliminates the previous requirement that the right to defer settlement must exist for at least 12 months after the reporting date. Instead, it mandates that such a right must be present and substantive as of the reporting date. Additionally, the amendment provides guidance on the classification of liabilities that are subject to covenants. The Company has determined that these amendments do not affect its existing criteria for classifying current and non-current liabilities.

2) Ind AS 7, Statement of Cash Flows, and Ind AS 107, Financial Instruments: Disclosures, effective from April 1, 2025, have been amended to enhance transparency regarding supplier finance arrangements. The revision to Ind AS 7 mandates that entities disclose the existence of such arrangements, describe their nature, report the carrying amount of related liabilities, and provide information on the range of payment due dates. Concurrently, Ind AS 107 has been updated to recognise supplier finance arrangements as a potential source of liquidity risk concentration. The Company has reviewed these amendments and, based on its assessment, has concluded that they do not have a material impact on its financial statements.

3) Ind AS 12, International Tax Reform - Pillar Two Model Rules applicable immediately - The amendments provide a temporary mandatory relief from deferred tax accounting for top-up tax and disclose that they have applied the relief. This relief is immediate and applies retrospectively. It has no impact on financial statements.

55. OTHER STATUTORY INFORMATION

a. There is no proceeding initiated or pending against the Company for holding any Benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and rules made thereunder.

b. The Company does not have any charge which is yet to be registered with the Registrar of Companies beyond the statutory period. With regard to satisfaction of charges, a few cases of the company are outstanding with the ROC due to technical reasons and the Company is in the process of obtaining no dues certificates from the lenders, which the Company will file with the Registrar of Companies for satisfaction of the related charges.

c. The Company has not traded or invested in Cryptocurrency or virtual currency during the financial year.

d. During the year ended March 31, 2026, the Company was not a party to any approved scheme which needs approval from the competent authority in terms of sections 230 to 237 of the Companies Act, 2013.

56. As per the proviso to Rule 3(1) of the Companies (Accounts) Rules, 2014, for maintaining books of account,using accounting software which has a feature of recording audit trail (edit log) facility is applicable to the Company w.e.f. April 1, 2023, and accordingly the Company has used accounting software for maintaining its books of account which have a feature for recording audit trail (edit log) facility and the same has operated throughout the year for all relevant transactions recorded in the respective software. However, the audit trail functionality is not enabled at the database level and also in the case of a few fields in SAP at the application layer.

The company is in the process of evaluating the feasibility of extending the audit trail facility in such fields in SAP as well as at the database layer of accounting software used for maintaining the books of account. Additionally, the audit trail has been preserved by the Company as per the statutory requirements for records retention.