4. Property, plant and equipment

No projects have been temporarily suspended as at 31 March 2026 and 31 March 2025.

CWIP includes total interest expense capitalised during the year amounting to INR 28.63 lakhs (31 March 2025: INR 96.72 lakhs).

C. Measurement of fair values

(i) Fair valuation hierarchy

The fair value of investment property has been determined by external, independent property valuers, having appropriate recognised professional qualifications and recent experience in the location and category of the property being valued. The valuer is a registered valuer as defined under Rule 2 of Companies (Registered Valuers and Valuation) Rules, 2017.

The fair value measurement for all of the investment property has been categorised as a level 3 fair value based on the inputs to the valuation technique used (see note 2(E)).

(ii) Valuation technique

Discounted cash flows method and Market comparable method have been used for valuation. The valuation model considers the present value of net cash flows to be generated from the property, taking into account the expected rental growth rate, vacant periods, occupancy rate, lease incentive costs such as rent-free periods and other costs not paid by tenants, if any. The expected net cash flows are discounted using risk-adjusted discount rates. Among other factors, the discount rate estimation considers the quality of a building and its location (prime vs secondary), tenant credit quality and lease terms.

D. Investment property comprises of the following:

(i) The Company along with other co-owners, has developed a plot of land at 25 Barakhamba Road, New Delhi, where the Company's share is 15%. The registration of the said plot of the value of INR 427.60 Lakhs (31 March 2025: INR 427.60 Lakhs) in the name of the Company is pending. Refer details below:

(ii) The Company has given the investment properties located in New Delhi on operating lease to some parties. Certain lease agreements are cancellable and some are non-cancellable in nature. There are no contingent rents in the lease agreements. The lease terms are mainly for 3 to 5 years and are renewable at the option of the lessee. There are no restrictions imposed by lease agreements on realisability of the investment property. Although there are sublease rights given to the lessees, there are no sub-leases as on the reporting date. During the current year, property at Hyderabad have been classified as asset held for sale.

E. Refer note 44 for details of future minimum lease receipts.

(b) The Company has not revalued any intangible assets after initial recognition, during the year ended 31 March 2026 and 31 March 2025.

(c) Impairment

See accounting policy in note 3(g).

Impairment testing for cash generating unit containing goodwill

For the purpose of impairment testing, goodwill is allocated to the Company's operating division which represents the lowest level within the Company at which goodwill is monitored for internal management purposes, not higher than the Company's operating segment. The goodwill acquired through business combination has been allocated to CGU "Cuttack unit" and Crestia Group which are part of the Walls and Pipes & Construction Chemicals segment of the Company, respectively. The carrying amount of goodwill as at 31 March 2026 is INR 747.25 Lakhs and INR 8,323.79 Lakhs, for Cuttack unit and Crestia group, respectively.

(a) Impairment testing for investments held in subsidiary

Basis the indicators of impairment, the Company assesses the possible impairment in the value of its investments in its wholly owned subsidiary company (BirlaNu International GmbH (Formerly HIL International GmbH)) by using discounted cash flow (DCF) method.

(b) Equity shares designated as at fair value through other comprehensive income

The Company designated the investments shown below as equity shares at FVOCI because these equity shares represent investments that the Company intends to hold long-term for strategic purposes.

The cash flow projections include specific estimates for five years and a terminal growth rate thereafter. The terminal growth rate has been determined based on the management's estimate of the long-term compound annual EBITDA growth rate, consistent with the assumptions that a market participant would make.

Weighted average cost of capital % (WACC) = (We*Re) (Wd*Rd)

Re = Risk free return (market premium x beta for the Company) additional risk premium.

Rd = Cost of debt *(1-tax rate)

We,Wd = Average debt to capital ratio

Owing to continuous operating losses made by the subsidiary, the Company had performed impairment assessment during the current year and has accordingly, recorded an impairment loss of INR 7,420 lakhs as an exceptional item in the statement of profit and loss (refer note 66 for details). Further, no impairment charges were recognised for the year ended 31 March 2025.

No strategic investments were disposed off during the year ended 31 March 2026 and 31 March 2025, and there were no transfers of any cumulative gain or loss within equity relating to these investments.

The Company has not traded or invested in Crypto currency or Virtual currency during the year ended 31 March 2026 and 31 March 2025.

Refer note 55(A) and 55(C) for the Group's exposure to fair value measurement, credit risk and market risk.

(ii) Rights, preferences and restrictions attached to the equity shares

The Company has only one class of equity shares having a face value of INR 10/- each. Accordingly, all equity shares rank equal with regard to dividends and share in the Company's residual assets on winding up. Each holder of equity share is entitled to one vote per share. The Company declares and pays dividends in Indian Rupees. The final dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting.

In the event of liquidation of the Company, the equity shareholders will be entitled to receive remaining assets of the Company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.

- Trade receivables are the amounts receivable by the Company from the Revenues from Contracts with customers and other operating revenues.

- The contract assets primarily relate to the Company's rights to consideration for work completed but not billed at the reporting date.

- The contract liabilities primarily relate to the advance consideration received from customers and contract liabilities arising from loyalty programmes of the Company. The amount of INR 3,380.26 Lakhs included in contract liabilities at 31 March 2025 have been recognised as revenue during the year ended 31 March 2026 (31 March 2025: INR 4,023.81 Lakhs).

No information provided about remaining performance obligations as at 31 March 2026 and 31 March 2025 that have an original expected duration of one year or less, as allowed by Ind AS 115.

Invoices are generated at the point in time. Invoices are usually payable within 0 to 90 days.

33 Acquisition

On 7 November 2025, the Company had entered into a Share purchase agreement (SPA) with shareholders of Clean Coats Private Limited ('Clean Coats') for purchase of the shares of Clean Coats at a total purchase consideration of INR 11,321.80 lakhs. Post completion of the agreed closing conditions, the Company obtained control over the Clean Coats effective 11 November 2025.

36 Employee benefits

The Company has the following postemployment benefit plans:

(a) Defined contribution plan

The following amount has been recognised as an expense in standalone statement of profit and loss on account of contribution to provident fund and other funds. There are no other obligations other than the contribution payable to the respective authorities.

and in accordance with statutory requirements (including minimum funding requirements) of the plan of the relevant jurisdiction, the present value of refund or reduction in future contributions is not lower than the balance of the total fair value of the plan assets less the total present value of obligations. As such, no decrease in the defined benefit asset is necessary at 31 March 2026 (31 March 2025: no decrease in defined benefit asset). Project unit credit method has been used for valuation.

i. Reconciliation of the net defined benefit (asset) / liability

The following tables summarises the components of net benefit expense recognised in the standalone statement of profit and loss, the funded status and amount recognised in the standalone balance sheet for the gratuity plan:

(b) Defined benefit plan

In accordance with the applicable law, the Company provides for Gratuity and has created the Employees' Gratuity Fund Scheme (the Gratuity Plan), covering eligible employees. Liabilities with regard to such Gratuity Plan are determined by an actuarial valuation as at the end of the year and are charged to the standalone statement of profit and loss. This defined benefit plans expose the Company to actuarial risks, such as liquidity risk, interest rate risk, investment risk, etc.

Interest Rate risk: The plan exposes the Company to the risk of fall in interest rates. A fall in interest rates will result in an increase in the ultimate cost of providing the above benefit and will thus result in an increase in the value of the liability.

Liquidity Risk: This is the risk that the Company is not able to meet the short-term gratuity payouts. This may arise due to non availability of enough cash / cash equivalent to meet the liabilities or holding of illiquid assets not being sold in time.

Investment Risk: The probability or likelihood of occurrence of losses relative to the expected return on any particular investment.

The Gratuity plan is administered through Group Gratuity Scheme with Life Insurance Corporation of India ("LIC"). Every employee who has completed five years or more of service gets a gratuity on departure at 15 days salary (last drawn salary) for each completed year of service or part thereof in excess of six months.

The Company has determined that, in accordance with the terms and conditions of the gratuity plan,

The discount rate indicated above reflects the estimated timing and currency of benefit payments. It is based on the market yields of high quality corporate bonds on the valuation date.

The salary growth rate indicated above is the Company's best estimate of an increase in salary of the employees in future years, determined considering the general trend in inflation, seniority, promotions, past experience and other relevant factors such as demand and supply in employment market, etc.

Attrition rate indicated above represents the Company's best estimate of employee turnover in future (other than on account of retirement, death or disablement) determined considering various factors such as nature of business, retention policy, industry factors, past experience, etc.

Although the analysis does not take account of the full distribution of cash flows expected under the plan, it does provide an approximation of the sensitivity of the assumptions shown.

There are no changes in the methods and assumptions used in preparing the sensitivity analysis from the previous year.

Expected contributions to the plan for the next annual reporting period

The Company expects to contribute a sum of INR 1,459.55 Lakhs to the plan for the next annual reporting period (31 March 2025: INR 929.96 Lakhs).

Maturity profile of the defined benefit obligation

Expected cash flows on undiscounted basis

As at 31 March 2026, the weighted average duration of the defined benefit obligation was 7 years (31 March 2025: 7 years).

(c) Impact of Labour Code

On 21 November 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, 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 change in regulations. The Company has assessed and accounted the incremental impact of these changes of INR 384 lakhs during the year ended 31 March 2026 based on the information to the extent available in accordance with the guidance provided by the Institute of Chartered Accountants of India. 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.

*As at 31 March 2026: 167,927 (31 March 2025: 65,656) options were excluded from the diluted weighted average number of equity share calculation because their effect would have been anti-dilutive.

The average market value of the Company's shares for the purpose of calculating the dilutive effect of share options was based on quoted market prices for the year during which the options were outstanding.

Other commitments

(i) The Company has issued a corporate guarantee of Euro 27.12 million (31 March 2025: Euro 33.705 million) at a commission of 0.50% p.a. on the outstanding guarantee amount, in favour of the wholly owned subsidiary company, BirlaNu International GmbH (Formerly HIL International GmbH), Germany on 27 September 2023 in respect of the loan taken by the subsidiary from ICICI Bank UK PLC, Germany. Further, the Holding Company has taken a Stand by Letter of Credit (SBLC) on 04 July 2025 from ICICI bank Limited, India in order to facilitate working capital demand loan aggregating up to EUR 10.29 million to BirlaNu International GmbH from ICICI bank UK PLC, Germany at a service fee of 0.53% p.a on the total outstanding loan amount utilised. Holding company has extended an unconditional letter of financial support to BirlaNu International GmbH (formerly HIL International GmbH) and its subsidiaries ('the subsidiary group') to the extent necessary for the subsidiary group. This will enable the subsidiary group to continue to operate their business and meet their financial obligations for the foreseeable future and specifically at least until 31 December 2027. The Company will continue to make available such funds as are needed by the Subsidiary group.

(h) There are other civil matters against the Company of which one such case is pertaining to certain mining activity performed by the Company in the past. The National Green Tribunal (“NGT”), New Delhi, disposed off the above case in the earlier year, directing that the restoration of mine to be carried out by State of Jharkhand; and filing of claims by the victims before the District Judge, Chaibasa for adjudication. Aggrieved by some of the findings in the aforesaid Orders and subsequent Orders passed by NGT, the Company filed a Civil Appeal before the Honourable Supreme Court of India. The Honourable Supreme Court of India directed to issue notice to other parties and maintain status in the meantime. During the earlier year, the district mining officer, Chaibasa, has sought payment of environment compensation of INR 1,344 lakhs from the Company which is in wilful disobedience of the aforesaid order passed by the Honourable Supreme Court. The Company has responded accordingly. In view of the aforesaid Status Quo Order the further proceedings before NGT are being adjourned from time to time. Management believes that the final outcome of the above matter is not expected to be material on the financial statements.

A. Contingent liabilities (not provided for) in respect of: (Contd..)

* Income-tax demand comprises of demand from the Indian tax authorities upon completion of their assessment. The tax demands are mainly on account of disallowance of the benefit on research & development expenses, other expenses not allowed.

** The demands raised by the sales tax authority are mainly towards enhancement of turnover due to certain disallowances, entry tax on stock transfers and local sales tax demand upon completion of assessment and various other miscellaneous cases raised by the respective state authorities.

“During the earlier years, the Company received demands from Goods and Services Tax Department, Government of Tamil Nadu, Chennai amounting to INR 7,630 Lakhs for the period 01 July 2017 to 31 March 2023, with regards to HSN (Harmonized System Nomenclature) Classification code of one of the product sold by the Company. The Company challenged the said Orders by filing Appeals before Deputy Commissioner (Appeals), Chennai. Aggrieved by the order of the Appellate Authority confirming the demand, the Company had challenged the said Orders in the Honourable High Court of Madras by filing writ petition. During the current year, the Company has received a favourable order from Honourable High Court directing to quash the impugned orders.

*** The demand raised by the excise authority is mainly towards excise duty demand including interest and penalty towards disallowance of availment of CENVAT credit and wrong classification of products as taxable versus exempt product.

**** Other claims against the Company not acknowledged as debt mainly includes liability towards fuel surcharge adjustment disputed with electricity board for the financial year 2008-09 and 2009-10.

a Greater Hyderabad Municipal Corporation ("GHMC") had served property tax demand notices on the Company claiming outstanding property tax to the tune of INR 1,083 lakhs and the same was considered as contingent liability. The Company challenged the said demand notices in the Honourable High Court of Telangana ("High Court"). During the earlier year, the

Honourable High Court has passed an order directing GHMC to reassess the tax dues subject to compliance of applicable laws. The original tax dues stand disposed in view of fresh tax computation within the provision of law. While the Company is awaiting fresh demand notice from GHMC consequent to the order of Honourable High Court, the management has created adequate provision basis its own assessment.

The Company is contesting various claims and demands and the Management believes that its position will likely be upheld in the process and accordingly no expense has been accrued in the standalone financial statements for such claims and demands received as the ultimate outcome of this process will not have a material adverse effect on the Company's standalone financial statements.

Pending resolution of the aforesaid respective proceedings, it is not practicable for the Company to estimate the timings of cash outflows, if any, in respect of the above.

The Company has reviewed all its pending litigations and proceedings and has adequately provided for where provisions are required and disclosed as contingent liabilities where applicable, in its standalone financial statements. The Company does not expect any reimbursements in respect of the above contingent liabilities.

B. On 28 February 2019, the Hon'ble Supreme Court of India has delivered a judgment clarifying the principles that need to be applied in determining the components of salaries and wages on which Provident Fund (PF) contributions need to be made by establishments. However, considering that there are numerous interpretative issues relating to retrospective application of this judgement, the Company has made a provision for provident fund contribution based on the best estimate during the earlier year. The Company will evaluate its position and update its provision, if required, on receiving further clarity on the subject.

* During earlier year, the Company made provision for the dividend receivable amounting to INR 9.01 Lakhs from Supercor Industries Limited ("Supercor") as the receipt of same is considered to be doubtful. Further, the Company has also made provision for value of investment in Supercor in the books of account amounting to INR 142.60 Lakhs.

* Payment of insurance costs are made for the Company as a whole, the amount pertaining to the key management personnel is not ascertainable, therefore, not included above.

** The related party loan given to BirlaNu International GmbH, Germany in the earlier year, was for the purpose of partly financing the acquisition of 100% shareholding of Parador Holding GmbH, Germany. The outstanding loan amount is repayable in three instalments starting 16 August 2027 upto 16 August 2029. The said loan carries an interest rate of 8% p.a. (31 March 2025: 8% p.a.).

aa During the earlier year, the Company has given a loan and a corporate guarantee (CG) at a commission of 0.50% p.a on the outstanding CG amount to BirlaNu International GmbH, Germany. During the current year, the Company has taken a Stand by Letter of Credit (SBLC) from ICICI bank Limited, India in order to facilitate working capital demand loan aggregating up to EUR 10.29 million to BirlaNu International GmbH from ICICI bank UK PLC, Germany at service fee of 0.53% p.a on the total outstanding loan amount utilised.

a Disclosures are including Goods and Services Tax, wherever applicable.

42 Share based payments

A. Description of share-based payment arrangements

Employee stock option scheme (equity-settled)

The Company provides share-based payment schemes to its eligible employees as identified in the employee stock option schemes. The relevant details of these schemes and the grants are as below:

On 27 January 2023, the Nomination and Remuneration cum Compensation Committee of the Board of Directors of the Company approved the HIL Employees Stock Option Scheme 2023 (ESOP scheme 2023) for issue of stock options to identified employees of the Company. Subsequently, the scheme was approved by the Shareholders of the Company on 04 April 2023, through Postal Ballot process.

On 17 May 2025, the Nomination and Remuneration cum Compensation Committee of the Board of Directors of the Company approved the amendement to BirlaNu Limited Employee Stock Options Scheme 2019 (ESOP scheme 2019) for issue of stock options to identified employees of the Company. Subsequently, the scheme was approved by the Shareholders of the Company on 31 July 2025, through Postal Ballot process.

According to the scheme, eligible employees identified by the Nomination and Remuneration cum Compensation Committee are entitled to options, subject to satisfaction of the prescribed vesting conditions.

43 Service concession arrangement

On 21 March 2011, the Company entered into a service concession agreement with Gujarat Urja Vikas Nigam Limited (the grantor) to provide the service of generation of electricity and selling the same to grantor. The Power Plant was commissioned and available for use on 18 April 2011. Under the terms of the agreement, the Company will sell all available capacity of electricity generated from the 1.8 MW wind power plant at village Vandhiya, Gujarat for a period of 25 years at a fixed rate of INR 3.56 per kwh for delivered energy as certified by state electricity authority of Gujarat state load dispatch center ("SLDC"), starting from 18 April 2011 (commercial operation date). The Company will be responsible for any maintenance services required during the concession period. The Company does not expect major repairs to be necessary during the concession period.

On 24 September 2014, the Company entered into a service concession agreement with Ajmer Vidyut Vitran Nigam Limited (the grantor) to provide the service of generation of electricity and selling the same to grantor. The Power Plant was commissioned and available for use on 30 September 2014. Under the terms of the agreement, the Company will sell all available capacity of electricity generated from the 2 MW wind power plant at village Rajgarh, district Jaisalmer for a period of 25 years at a fixed rate of INR 5.31 per kwh for the delivered energy conforming the standards as approved by Rajasthan Electricity Regulatory Commission ("RERC"), starting from 30 September 2014 (commercial operation date). The Company will be responsible for any maintenance services required during the concession period. The Company does not expect major repairs to be necessary during the concession period.

The Company recognised service concession arrangement with Gujarat Urja Vikas Nigam Limited and Ajmer Vidyut Vitran Nigam Limited under intangible asset model, on the basis that the Company will receive variable amount of revenue from the respective DISCOMs in Gujarat and Rajasthan depending upon the actual amount of electricity generated and supplied to the respective DISCOMs. The DISCOMs has not assured any minimum amount of proceeds to the Company. The Company bears the demand risk and the right to receive cash from the DISCOMs is not unconditional i.e. it depends upon the actual amount of electricity generated and supplied to the DISCOMs.

The service concession agreements with the Gujarat Urja Vikas Nigam Limited and Ajmer Vidyut Vitran Nigam Limited does not contain a renewal option. The standard rights of the grantor to terminate the agreement in both the arrangements include poor performance by the Company and the event of a material breach of the terms of the agreement by the Company. The standard rights of the Company to terminate the agreement in both the arrangements include failure of the grantor to make payment under the agreement and a material breach by the grantor of the terms of the agreement.

During the year, the Company has recorded revenue of INR 218.46 Lakhs (31 March 2025: INR 151.18 Lakhs) on generation of power, and recorded pofit /(loss) of INR (4.88) Lakhs (31 March 2025: INR 22.96 Lakhs) after considering the impairment of assets amounting to INR 122 lakhs.

44 Leases - In the capacity of lessor

The Company has given certain properties under noncancellable leases to various parties. The Company has classified these leases as operating leases because they do not transfer substantially all of the risks and rewards incidental to the ownership of the assets. Following are the details of future minimum lease receivables under the agreements:

45 Capital management

The Company aims to maintain a strong capital base so as to maintain the confidence of all stakeholders and to sustain future development of the business.

In order to maintain the capital structure, the Company monitors the return on capital, as well as the level of dividends to equity shareholders. The Company aims to

48 The Company has established a comprehensive system of maintenance of information and documents as required by the transfer pricing legislation under Sections 92-92F of the Income-tax Act, 1961. Since the law requires existence of such information and documentation to be contemporaneous in nature, the Company is in the process of updating the documentation for the international transactions entered into with the associated enterprise during the financial year and expects such records to be in existence latest by 31 October 2026, as required by law. The Management confirms that its international transactions are at arm's length so that the aforesaid legislation will not have any impact on the financial statements, particularly on the amount of tax expenses and that of provision for taxation.

49 The Company has a process whereby periodically all long term contracts (including derivative contracts) are assessed for material foreseeable losses. At the year end, the Company has reviewed and ensured that adequate provision as required under any law / accounting standards for material foreseeable losses on such long term contracts (including derivative contracts), if any, has been made in the books of account.

As at balance sheet date, the Company is not exposed to future cash flows for extension / termination options, residual value guarantees and leases not commenced to which lessee is committed.

The Company does not face a significant liquidity risk with regard to its lease liabilities as the current assets are sufficient to meet the obligations related to lease liabilities as and when they fall due.

The Company has taken certain rented premises on lease with contract terms within one year. These leases are short-term in nature and the Company has elected not to recognise right-of-use-assets and lease liabilities for these assets. The Company has incurred following expenses relating to short-term leases for which the recognition exemption has been applied (refer note 31).

53 Investment

a) Interest in subsidiary

(i) The Company incorporated a wholly owned subsidiary “BirlaNu International GmbH (Formerly HIL International GmbH)” at Germany on 04 July 2018 which acquired 100% shareholding of Parador Holding GmbH, Germany through sale and purchase agreement dated 11 July 2018 and completed the acquisition on 27 August 2018.

(ii) The Company had entered into a Share purchase agreement (SPA) with shareholders of Clean Coats Private Limited ('Clean Coats') for purchase of the shares of Clean Coats. Post completion of the agreed closing conditions, the Company obtained 100% control over the Clean Coats effective 11 November 2025 at a total purchase consideration of INR 11,321.80 lakhs.

During the year ended 31 March 2026 and 31 March 2025, the Company did not receive any dividend from Supercor Industries Limited.

c) The Company in financial year 1979-80 had invested in Supercor Industries Limited, Nigeria (“Supercor”). Supercor suspended its operations from November 2015 and closed its offices because of which it has not prepared any financial statements since then. Therefore, the Company has been unable to incorporate the requisite financial information, if any, of Supercor in its consolidated financial statements as required under Section 129(3) of the Companies Act, 2013 and the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015. The Company's investment in Supercor as at 31 March 2026 amounts to INR NIL (31 March 2025: INR NIL), after considering the provision for diminution in value of investments amounting to INR 142.60 Lakhs (31 March 2025: INR 142.60 Lakhs). During the earlier year, on the basis of the request filed by the Company, an intimation was received from Reserve Bank of India for suspension of the Unique Identification Number allotted to Supercor. The Management does not foresee any future liability on account of any claim, with respect to Supercor over and above the amount invested in Supercor.

*Restated at the closing conversion rate as the loan was given in foreign currency.

The above loan given to BirlaNu International GmbH (Formerly HIL International GmbH), Germany was for the purpose of partly financing acquisition of 100% shareholding of Parador Holding GmbH, Germany. The outstanding loan amount is repayable in three instalments starting 16 August 2027 upto 16 August 2029. The said loan carries an interest rate of 8% p.a. (31 March 2025: 8% p.a.).

** The Company has given a long-term loan of Euro 3 million (INR 2,788.43 Lakhs) to its wholly owned subsidiary (WOS) BirlaNu International GmbH (Formerly HIL International GmbH), Germany on 01 October 2024 for the purpose of meeting its financial requirements especially the working capital requirements. The same is outstanding as at the year end. The said loan carries an interst rate of 8% p.a.

i. Valuation technique and significant unobservable inputs

Derivative assets / liabilities: The fair value is determined using forward exchange rates at the reporting date and present value calculations based on high credit quality yield curve in the respective currencies.

Investment in equity instruments: The fair value is determined based on the value determined as per discounted cash flows approach as on the reporting date.

ii. Transfer between Level 1 and 2

There have been no transfers from Level 2 to Level 1 or vice-versa in 2025-26 and no transfers in either direction in 2024-25.

B. Measurement of fair values - assets held for sale

i. Fair value hierarchy

The non-recurring fair value measurement for the assets held for sale has been considered as level 2 based on the quotations received from third party.

ii. Valuation technique

The management has obtained the quotations for sale of assets classifed as held for sale from independent third party

C. Financial risk management

The Company has exposure to the following risks arising from financial instruments:

a) Liquidity risk

b) Market risk

c) Credit risk

The Company's Board of Directors has overall responsibility for the establishment and deployment of risk management framework. The Board of Directors has adopted a Risk Policy, which empowers the management to access and monitoring the risk management parameters along with action taken and the same is updated to Board of Directors.

The Company's risk management policies are established to identify and analyse the risks being faced by the Company, to set appropriate risk limits and controls and to monitor risks and adherence to limits. Risk management policies and systems are reviewed regularly to reflect changes in market conditions and the Company's activities. The Company, through its training and management standards and procedures, aims to maintain a disciplined and constructive control environment in which all employees understand their roles and obligations.

The Company's audit committee oversees how management monitors compliance with the Company's risk management policies and procedures, and reviews the adequacy of the risk management framework in relation to the risk faced by the Company. The audit committee is assisted in its oversight role by internal audit. Internal audit undertakes both regular and adhoc reviews of risk management controls and procedures, the result of which are reported to the audit committee.

a) Liquidity risk

Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated with its financial liabilities that are settled by delivering cash or another financial asset. The Company's approach to managing liquidity is to ensure, as far as possible, that it will have sufficient liquidity to meet its liabilities when they are due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the Company's reputation.

As disclosed in Note 17, the Company has a secured bank loan that contains a loan covenant. A future breach of covenant may require the Company to repay the loan earlier than indicated. Under the agreement, the covenant is monitored on a regular basis by the treasury department and regularly reported to the Management to ensure compliance with the agreement.

The interest payments on variable interest rate loans reflect market forward interest rates at the reporting date and these amounts may change as market interest rates change.

The Company aims to maintain the level of its cash and cash equivalents at an amount in excess of expected cash outflows on financial liabilities (other than trade payables). The Company also monitors the level of expected cash inflows on trade receivables and loans together with expected cash outflows on trade payables and other financial liabilities.

Exposure to liquidity risk

The following are the remaining contractual maturities of financial liabilities at the reporting date. The amounts reflect the principal amounts that are gross and undiscounted, and exclude the impact of netting agreements.

31 March 2026

Market risk is the risk that results from changes in market prices - such as foreign exchange rates, interest rates and others - will affect the Company's income or the value of its holdings of financial instruments. The objective of market risk management is to manage and control market risk exposures within acceptable parameters, while optimising the return.

The Company uses derivatives to manage market risks. i) Foreign currency risk

The Company is exposed to currency risk to the extent that there is a mismatch between the currencies in which sales and purchases are denominated. The functional currency for the Company is Indian Rupees. The currencies in which these transactions are primarily denominated is US dollars and Euros. The Company does not enter into any derivative instruments for trading or speculative purposes.

Currency risks related to the principal amounts of the Company's US dollar trade payables and Euro loan and interest receivables have been hedged using forward contracts that mature on or before the same dates as the payables and receivables are due for repayment. These contracts are designated as derivatives.

Generally, borrowings are denominated in currencies that matter the cash flows generated by the underlying operations of the Company. In addition, interest on borrowings is denominated in the currency of the borrowing. This provides an economic hedge without derivatives being entered into and therefore, hedge accounting is not applied in these circumstances.

In respect of other monetary assets and liabilities denominated in foreign currencies, the Company's policy is to ensure that its net exposure is kept to an acceptable level by buying or selling foreign currencies at spot rates when necessary to address short-term imbalances.

Derivative assets and liabilities

Foreign currency exposures of the Company are hedged by way of forward contracts. These contracts are entered with Banks with AA , based on crisil ratings. Therefore, no risk is expected.

*Refer note 52 for details of hedged foreign currency exposure of the Company, the same are reported as derivative assets and liabilities under financial assets and financial liabilities.

Sensitivity analysis

A reasonably possible strengthening (weakening) of the INR, US dollar or Euro against all other currencies at 31 March would have affected the measurement of financial instruments denominated in a foreign currency and affected equity and profit or loss by the amounts shown below. This analysis assumes that all other variables, in particular interest rates, remain constant and ignores any impact of forecast sales and purchases.

Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails to meet its contractual obligations, and arises principally from the Company's receivables from customers.

Trade receivables :

Customer credit risk is managed by the respective department subject to Company's established policy, procedures and control relating to customer credit risk management. Credit quality of a customer is assessed based on individual credit limits as defined by the Company. Outstanding customer receivables are regularly monitored.

An impairment analysis is performed at each reporting date on an individual basis. The calculation is based on historical data of credit losses. The following table provides information about the exposure to credit risk and expected credit loss (ECL) for trade receivables.

Trade receivables :

The Company uses an allowance matrix to measure the ECL of trade receivables from individual customers, which comprise a very large number of small balances. Based on the industry practice and the business environment in which the entity operates, Management considers that the trade receivables are in default if the payments are more than 180 days past due.

Loss rates are based on actual credit loss experience over the past 5 years.

The ageing analysis of the receivables has been considered from the date the invoice falls due.

Security deposits

Security deposits are primarily given to electricity authorities of states across India. Recoverability of these deposits is probable and no risk is expected.

Contract assets

Contract assets are the unbilled revenues to the state electricity boards of Gujarat, Rajasthan and Tamil Nadu, towards the sale of electricity generated from Wind Turbine Generators of the Company, situated at those locations. Refer Note 43 for details. Recoverability of these receivables is probable and no risk is expected.

Loans and interest accrued on loans to subsidiary

The Company has advanced interest bearing long term loans to its wholly owned subsidiary (WOS) BirlaNu International GmbH (Formerly HIL International GmbH). Receipt of the principal and interest amounts of these loans is probable and no risk is expected.

Corporate guarantee fee receivables

During the year ended 31 March 2026, the Company has taken a Stand by Letter of Credit (SBLC) on 04 July 2025 from ICICI bank Limited, India in order to facilitate working capital demand loan aggregating up to EUR 10.29 million to BirlaNu International GmbH from ICICI bank UK PLC, Germany. The facility is extended for a period of 1 year to BirlaNu International GmbH and carries a service fee of 0.53% p.a on the total outstanding loan amount utilised. Further, during the earlier year, the Company has given a corporate guarantee (CG) at a commission of 0.50% p.a on the outstanding CG amount to BirlaNu International GmbH, Germany.

Other receivables

The balances under other receivables is primarily the dividend receivables from the Company's investment in Supercor. As Supercor is inoperative (refer note 53(c)) the Company has considered the entire balances as credit impaired in its books.

Cash and cash equivalents and other bank balances

The cash and cash equivalents and other bank balances are held with banks. Credit risk on cash and cash equivalents and deposits with banks and financial institutions are generally low as the said deposits have been made with the banks and financial institutions who have been assigned high credit rating by international and domestic credit rating agencies.

Derivatives

The derivatives are entered into with bank and financial institutions who have been assigned high credit rating by international and domestic credit rating agencies.

56 Amalgamation

The Kolkata Bench of the National Company Law Tribunal (“NCLT”) vide its order dated 10 March 2026, has approved the Scheme of Amalgamation (the “Scheme”) of Crestia Polytech Private Limited, Topline Industries Private Limited, Aditya Poly Industries Private Limited, Aditya Polytechnic Private Limited and Prabhu Sainath Polymers Private Limited (together referred to as transferor companies) with the Company with an appointed date of 05 April 2024, under sections 230 to 232 and other applicable provisions of the Companies Act, 2013 read with the rules framed thereunder. The said Scheme has become effective from 10 March 2026 on compliance of all the conditions precedent mentioned therein. Consequently, the transferor companies got amalgamated with the Company w.e.f. 05 April 2024. The transferor companies are engaged in the business of manufacturing and trading of various types of pipes and fittings, water storage injections, molding items etc.

The amalgamated entity is under common control and thus, the accounting of the said amalgamation has been done applying Pooling of interest method as prescribed in Appendix C of Ind AS 103 ‘Business Combinations' with effect from 5 April 2024 since the Company has acquired control over transferor companies on 5 April 2024.

While applying Pooling of Interest method, the Company has recorded all assets, liabilities and reserves including goodwill attributable to the transferor companies at their respective carrying values as appearing in the consolidated financial statements of the Company immediately prior to the amalgamation.

The previous year figures of standalone balance sheet, standalone statement of profit and loss (including other comprehensive income), Standalone statement of changes in equity and standalone statement of cash flows have been restated as if the amalgamation has taken place from the date of acquisition of control over transferor companies i.e., 5 April 2024 as required under Appendix C of Ind AS 103.

58 Benami property

There are no proceeding initiated or pending against the Company as at 31 March 2026 and 31 March 2025, under Prohibition of Benami Property Transactions Act, 1988 (as amended in 2016).

59 Wilful defaulter

The Company is not declared a wilful defaulter by any bank or financial Institution or other lender.

60 Undisclosed incomes

The Company has no such transaction which is not recorded in the books of account that has been surrendered or disclosed as income during the year or previous year in the tax assessments under the Income Tax Act, 1961 (such as, search or survey or any other provisions of the Income Tax Act, 1961).

61 (i) No funds have been advanced or loaned or invested (either from borrowed funds or share premium or any other

sources or kind of funds) by the Company to or in any other person(s) or entity(ies), including foreign entities (“Intermediaries”) with the understanding, whether recorded in writing or otherwise, that the Intermediary shall lend or invest in party identified by or on behalf of the Company (Ultimate Beneficiaries).

(ii) The Company has not received any fund from any party(s) (Funding Party) with the understanding that the Company shall whether, directly or indirectly lend or invest in other persons or entities identified by or on behalf of the Company (“Ultimate Beneficiaries”) or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

63 There are no loans or advances in the nature of loans granted to promoters, directors, KMP's and the related parties (as defined under the Companies Act, 2013) either severally or jointly with any other person, that are :

a) repayable on demand; or

b) without specifying any terms or period of repayment

64 Compliance with number of layers of companies prescribed under clause (87) of Section 2 of the Companies Act, 2013 read with Companies (Restriction on number of Layers) Rules, 2017 is not applicable.

65 Pursuant to the provisions of Sections 230 and 233, and all other applicable provisions, if any, of the Companies Act, 2013, and in accordance with the enabling provisions of the Memorandum of Association and Articles of Association of Clean Coats Private Limited (herein after referred to as the 'Transferor Company'), and BirlaNu Limited (formerly known as 'HIL Limited') (herein after referred to as the 'Transferee Company'), and after securing the required approvals from the Board of Directors in their meetings held on 13 February 2026, subject to the requisite approval of the shareholders / creditors of the respective Companies, the transferor companies and transferee company have filed the necessary 'Company Applications' seeking approval of the Scheme of Amalgamation of the Transferor Company with the Transferee Company before the Hon'ble National Company Law Tribunal ('NCLT'), the Mumbai Bench and the Hyderabad Bench. Hon'ble NCLT Mumbai bench and Hyderabad bench, through their order dated 07 May 2026 and 29 April 2026, respectively dispensed with the requirement of holding shareholders and creditors meeting. Company is in the process initiating the further proceedings.

Note: Certain land and buildings classified under non-current assets held for sale as identified in the previous year have been sold during the year.

67 Ministry of Corporate Affairs had approved the application for the change of the Company's name from 'HIL Limited' to 'BirlaNu Limited,' effective 19 March 2025.