M. Provisions, Contingent Liabilities and Contingent Assets

a) Provisions are recognized when there is a present
obligation (legal or constructive) as a result of a past event,
it is probable that an outflow of resources embodying
economic benefits will be required to settle the obligation
and a reliable estimate can be made of the amount of
the obligation. The expenses relating to a provision are
recognised in the Statement of Profit & Loss net of any
reimbursement.

b) If the effect of time value of money is material, provisions
are shown at present value of expenditure expected to
be required to settle the obligation, by discounting using
a current pre-tax rate that reflects, when appropriate, the
risks specific to the liability. When discounting is used,
the increase in the provision due to the passage of time is
recognized as a finance cost.

c) Contingent liabilities are possible obligations arising from
past events and whose existence will only be confirmed
by occurrence or non-occurrence of one or more
uncertain future events not wholly within the control of the
Company, or present obligations where it is not probable
that an outflow of resources will be required to settle
the obligation or the amount of the obligation cannot be
measured with sufficient reliability. Contingent liabilities
are not recognized in the financial statements but are
disclosed unless the possibility of an outflow of economic
resources is considered remote.

d) Show-cause notices issued by various Government
Authorities are not considered as obligation. When the
demand notices are raised against such show-cause
notices and are disputed by the Company, these are
classified as disputed obligations.

e) Contingent Assets are not recognised but reviewed at each
balance sheet date and disclosure is made in the Notes
in respect of possible effects that arise from past events
and whose existence is confirmed by the occurrence or
non-occurrence of one or more uncertain future events not
wholly within the control of the Company and where inflow
of economic benefit is probable.

N. Fair Value measurement

a) The Company measures financial instruments i.e.
derivative contracts at fair value at each balance
sheet date.

b) Fair value is the price that would be received on
selling an asset or paid to transfer a liability in an
orderly transaction between market participants
at the measurement date in the principal or, in its
absence, the most advantageous market to which the
Company has access at that date.

c) While measuring the fair value of an asset or liability,
the Company uses valuation techniques that are
appropriate in the circumstances and for which
sufficient data are available to measure the fair value
using observable market data as far as possible
and minimising the use of unobservable inputs. Fair
values are categorised into 3 levels as follows:

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

Level 2: inputs other than quoted prices that are observable
for the assets or liability, either directly (i.e. as prices for
similar item) or indirectly (i.e. derived from prices)

Level 3: inputs that are not based on observable market
data (unobservable inputs)

O. Financial Instruments

i. Financial Assets other than derivatives

All financial assets are recognised initially at fair values
including transaction costs that are attributable to the
acquisition of the financial asset.

A financial asset is measured (subsequent measurement)
at the amortised cost if the asset is held within a business
model whose objective is to hold assets for collecting
contractual cash flows, and the contractual terms of the
asset give rise on specified dates to cash flows that are
solely payments of principal and interest on the principal
amount outstanding.

Amortised cost is net of any write down for impairment
loss (if any) using the effective interest rate (EIR) method

taking into account any discount or premium and fees or
costs that are an integral part of the EIR.

A financial asset is derecognised either partly or fully to
the extent the rights to receive cash flows from the asset
have expired and / or the control on the asset has been
transferred to a third party. On de-recognition, any gains
or losses are recognised in the Statement of Profit & Loss.

ii. Financial Liabilities other than derivatives

All financial liabilities are recognised initially at fair
value net of transaction costs that are attributable to the
respective liabilities.

After initial recognition, financial liabilities are
subsequently measured at amortised cost using the
effective interest rate method (“EIR"). Amortised cost is
calculated by taking into account any discount or premium
on acquisition and fees or costs that are an integral part of
the EIR. The EIR amortisation is included as finance costs
in the Statement of Profit & Loss.

A financial liability is derecognised when the obligation
under the liability is discharged or cancelled or expires.
When an existing financial liability is replaced by another
from the same lender on substantially different terms, or
the terms of an existing liability are substantially modified,
such an exchange or modification is treated as the de¬
recognition of the original liability and the recognition of
a new liability. The difference in the respective carrying
amounts is recognised in the Statement of Profit & Loss.

iii. Derivative financial instruments

The Company uses derivative financial instruments,
such as foreign exchange forward contracts to manage
its exposure to foreign exchange risks. Such derivative
financial instruments are initially recognised at fair value
on the date on which a derivative contract is entered into
and are subsequently re-measured at fair value with the
changes being recognised in the Statement of Profit &
Loss. Derivatives are carried as financial assets when the
fair value is positive and as financial liabilities when the
fair value is negative.

iv. Compound Financial Instrument

Compound financial instruments issued by the Company
which can be converted into fixed number of equity shares
at the option of the holders irrespective of changes in the
fair value of the instrument are accounted by separately
recognising the liability and the equity components. The
liability component is initially recognised at the fair value
of a comparable liability that does not have an equity
conversion option. The equity component is initially
recognised at the difference between the fair value of

the compound financial instrument as a whole and the
fair value of the liability component. Subsequent to initial
recognition, the liability component of the compound
financial instrument is measured at amortised cost using
the effective interest method. The equity component
of a compound financial instrument is not remeasured
subsequently.

v. Offsetting of financial instruments

Financial assets and financial liabilities are offset and the
net amount is reported in the balance sheet if there is a
currently enforceable legal right to offset the recognised
amounts and there is an intention to settle on a net
basis, or to realise the assets and settle the liabilities
simultaneously.

vi. Investment in Equity Instruments

All investments in equity instruments classified under
financial assets are initially measured at fair value, the
Company may, on initial recognition, irrevocably elect to
measure the same either at FVOCI or FVTPL.

The Company makes such election on an instrument-
by-instrument basis. Fair value changes on an equity
instrument are recognised in 'other income' in the
standalone statement of profit and loss unless the
Company has elected to measure such instrument at
FVOCI. Fair value changes excluding dividend, on an
equity instrument measured at FVOCI are recognised in
OCI. Amounts recognised in OCI are not subsequently
reclassified to the standalone statement of profit and loss.

Dividend income on the investments in equity instruments
are recognised as 'other income' in the standalone
statement of profit and loss.

P. Classification of Assets and Liabilities as Current and
Non Current

All assets and liabilities are classified as current if they
are expected to be realised / settled within twelve months
after the reporting period. All other assets and liabilities
are considered as non-current.

Q. Impairment
Non-financial Assets

At each Balance Sheet date, an assessment is made of
whether there is any indication of impairment. 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 the asset's or Cash-Generating Unit's (CGU)
fair value less costs of disposal and its value in use.
Recoverable amount is determined for an individual asset,
unless the asset does not generate cash inflows that are

largely independent of those from other assets or groups
of assets.

When the carrying amount of an asset or CGU exceeds its
recoverable amount, the asset is considered impaired and
is written down to its recoverable amount.

Financial Assets

The Company applies Expected Credit Loss (“ECL") model
for measurement and recognition of impairment loss on
the financial assets measured at amortised cost.

Loss allowances on trade receivables are measured
following the 'simplified approach' at an amount equal to
the lifetime ECL at each reporting date right from initial
recognition. In respect of other financial assets measured
at amortised cost, the loss allowance is measured at 12
months ECL for financial assets with low credit risk at the
reporting date. Where there is a significant deterioration in
the credit risk, the loss allowance is measured since initial
recognition of the financial asset.

R. Taxes on Income
Current Tax

Income-tax assets and liabilities are measured at the
amount expected to be recovered from or paid to the
taxation authorities. The tax rates and tax laws used
to compute the amount are those that are enacted or
substantively enacted, by the end of reporting period.

Deferred tax

Deferred tax (both assets and liabilities) is calculated
using the balance sheet method on temporary differences
between the tax bases of assets and liabilities and their
carrying amounts for financial reporting purposes at the
reporting date.

Deferred tax assets are recognised for all deductible
temporary differences, the carry forward of unused tax
credits and any unused tax losses. Deferred tax assets are
recognised to the extent that it is probable that taxable
profit will be available against which the deductible
temporary differences, and the carry forward of unused tax
credits and unused tax losses can be utilised. The amount
of deferred tax assets is reviewed at each reporting date.

Deferred tax assets and liabilities are measured at the tax
rates that are expected to apply in the year when the asset
is realised or the liability is settled, based on tax rates (and
tax laws) that have been enacted or substantively enacted
at the reporting date.

Deferred tax assets and deferred tax liabilities are offset
if a legally enforceable right exists to set off current tax

assets against current tax liabilities and the deferred taxes
relate to the same taxable entity and the same taxation
authority.

Current tax and Deferred Tax items are recognised in
correlation to the underlying transaction either in the
Statement of Profit & Loss, other comprehensive income
or directly in equity.

S. Earnings per share

Basic earnings per share are calculated by dividing the
net profit or loss for the period attributable to equity
shareholders by the weighted average number of equity
shares outstanding during the period.

Diluted earnings per share are calculated by dividing
the net profit or loss for the period attributable to equity
shareholders and the weighted average number of shares
outstanding during the period, adjusted for the effect of all
dilutive potential equity shares.

T. Cash and Cash equivalents

Cash and cash equivalents include cash at bank, cash,
cheques and draft on hand. The Company considers all
highly liquid investments with original maturity of three
months or less and that are readily convertible to known
amounts of cash to be cash equivalents.

Cash Flows

Cash flows are reported using the indirect method, where
by net profit before tax is adjusted for the effects of
transactions of a non-cash nature, any deferrals or accruals
of past or future operating cash receipts or payments and
item of income or expenses associated with investing
or financing cash flows. The cash flows from operating,
investing and financing activities are segregated.

U. Government Grants

Government grants are recognized to the extent they are
received in cash or kind.

When the grant relates to an expense item, the same is
deducted in reporting the related expense in the Statement
of Profit or Loss for which it is intended to compensate.

Government grants relating to property, plant and
equipment are presented as deferred income and are
credited to the Statement of Profit & Loss on a systematic
basis over the useful life of the asset and in the proportions
in which depreciation expense on the assets is recognised.

Grants related to income are deducted in reporting the
related expense.

V. 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, and the disclosure of contingent liabilities.
Uncertainty about these assumptions and estimates could
result in outcomes that require a material adjustment to
the carrying amount of assets or liabilities affected in
future periods.

Judgements, 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 when the financial statements
were prepared. Existing circumstances and assumptions
about future developments however may change due to
market changes or circumstances arising that are beyond
the control of the Company. Such changes are reflected in
the assumptions when they occur.

W. Impairment of non-financial assets

At each Balance Sheet date, an assessment is made of
whether there is any indication of impairment. 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 the assets or Cash-Generating Unit's (CGU)
fair value less costs of disposal and its value in use.
Recoverable amount is determined for an individual asset,
unless the asset does not generate cash inflows that are
largely independent of those from other assets or groups
of assets.

When the carrying amount of an asset or CGU exceeds its
recoverable amount, the asset is considered impaired and
is written down to its recoverable amount. In assessing
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 the risks specific to the asset. In determining
fair value less cost of disposal, recent market transactions
are taken into account. If no such transactions can be
identified, an appropriate valuation model is used.

a) During the year 2019-20, 3,30,04,082 equity shares of ' 2/- each at a premium of ' 16/- per share were issued and allotted
on preferential basis to promoters / promoter group and business associates including relatives of business associate and
employees of the company.

b) During the year 2019-20, 70,38,882 warrants of ?2/- each at a premium of ' 16/- per share issued on preferential basis
to promoters / promoter group and business associates including relatives of business associate and employees of the
company and allotted equity shares on conversion of warrants.

c) During the year 2022-23, 1,83,33,332 equity shares allloted on conversion of 3,300 OCDs (Optionallly Convertible Debentures).

d) 1,57,91,314 warrants of ?2/- each at a premium of ' 17/- per share issued on preferential basis to promoters / promoter
group, business associates and other parties during the year 2021-22 and allotted equity shares on conversion of warrants
during the year 2022-23.

e) Pursuant to scheme of amalgamation 5,37,40,360 equity shares were allotted on 19^th February 2026 to the shareholders of
transferor companiesfor consideration other than cash. Refer Note-48 on Scheme of Amalgamation

f) Reconciliation of number of equity shares at the beginning and end of the year

** Consequent to the withdrawal of the indexation benefit on long-term capital gains (LTCG) on immovable properties (which were
fair valued at the first time adoption of Ind AS) purchased prior to 23^rd July 2024, the company has assessed the impact of the
same and accounted for the deferred tax liability to the extent of ' 2874.15 lakhs by debiting the retained earnings as adjustment
during the current year in compliance with Ind AS 12- “Income Taxes".

Dividends declared by the Company are based on profits available for distribution. The Board of Directors of the Company have
proposed a final dividend of ?0.20 per share in respect of the year ended 31^st March 2026 subject to the approval of shareholders
at the Annual General Meeting, and if approved, would result in a cash outflow of approximately ?590.31 Lakhs.

Nature of Reserves:

A) Retained earnings represents net profits after distributions and transfers to other reserves.

B) The general reserve represents amounts appropriated out of retained earnings.

C) The money received against convertible warrants represents amount received on issuance of the Convertible Warrants.

D) Capital reserves represents the difference between the consideration paid and net assets received under amalgamation.

E) Capital Redemption reserve represents appropriation from retained earnings for redemption of preference shares.

F) Securities premium represents premium on issue of shares.

G) Other comprehensive income represents Income / (Loss) on remeasurement of Defined Benefit Plans

Note:

1. The Company does not expect any outflow in respect of the above contingent liabilities.

2. The above statement includes principal and penalty wherever the same have been quantified in the orders but does not
include interest (wherever not quantified) at the applicable rates under the respective Acts, as mentioned in the orders.

* Includes:

i) Sales Tax Assessments of Dhrangadhra Unit are pending for 1994-95, 1995-96, 1997-98, 2004-05 & 2005-06. In
respect of Sahupuram Unit Central Sales Tax Assessments and Tamil Nadu General Sales tax / VAT assessment are
completed up to 2017-18 and demand has been raised and the company has filed appeal against the demand with
higher authority.

ii) In the matter of difference in amount in respect Input tax credit on furnace oil, reversal of ITC on Consignment Transfers,
VAT on sale of Windmills etc., by Tamilnadu VAT Department, the Commercial Tax Officer (CTO) has issued assessment
orders for the years from 2010-11 to 2013-14 determining the demand of '3346.43 Lakhs consequent to order dated
30^th July 2024 passed by Madurai bench of the Honourable Madras High Court by disposing of the writ petition filed by
the Company.

@ Includes:

In respect of demand of differential duty of Customs of ' 1,243.77 lakhs plus interest at the applicable rates thereon under
section 28AA of Customs Act, 1962 and redemption fine and penalty of ' 2,600 lacs in respect of coal imports in earlier years,
the Company has been legally advised that it has the fair chance of success before CESTAT. Accordingly, no provision has
been made in the accounts.

# Includes:

The Income-Tax authorities ('the department') had conducted search activity during the month of November 2023 at some
of the premises, plants and residences of few of the directors and employees of the Company. Consequent to the aforesaid
search, The Income Tax Authorities have passed orders under Section 143 (3) read with Section 147 of the Income Tax Act,
1961 for 10 assessments years starting A.Y. 2015-16 to A.Y. 2024-25.

The Income Tax Authorities have raised demand of ' 106.08 Lakhs on account of various disallowances/ additions under
Income Tax Act, 1961.

The orders issued by the Income Tax Authorities also have the effect of reducing the MAT credit available with the company
by an amount aggregating to ' 2893.15 Lakhs for the block period of 10 years ending A.Y. 2024-25. Further, the notices for
initiation of penalty have been issued by the Income Tax Authorities.

The company has been advised by its Tax expert that the above Tax demands/ the denial of MAT credit under the above
referred orders are not tenable in law. The Company has filed appeals against the above said orders and the penalty notices
under the applicable laws.

$ Includes:

i) The Tamil Nadu Government vide Government order dated 23-09-1996 issued under Tamilnadu Electricity (Taxation
& Consumption) Act, 1961, exempted specified industries (including the industry in which the company operates)
permanently from payment of Electricity Tax on consumption of power generated captively. The Supreme Court vide order
dated 15^th May, 2007 held that the withdrawal of the permanent exemption by the Act of 2003 was invalid. In November,
2007 the Tamilnadu government passed the Tamilnadu tax on consumption or Sale of Electricity (Amendment) Act,
amending the Act of 2003 to invalidate the permanent exemption granted with retrospective effect. The writ petition filed
by the company against this amendment has been dismissed by the Madras High Court. The SLP filed by the company
against the High Court Order has been admitted by the Supreme Court.

The Electrical Inspectorate, Government of Tamil Nadu's vide letter dated 2^nd September 2014 informed the Company
that the electricity tax exemption would not be applicable to the Company and demanded Electricity Tax of ' 2,026.72
lakhs and interest of ' 1,541.98 lakhs for the period 2003 to 2012. The Company has filed writ petition before the
Hon'ble High Court of Judicature at Madras and has also obtained interim stay of the said demand vide Order dated 22^nd
September, 2014 on payment of 640.24 lakhs towards pre-deposit.

The appeal filed before the Hon'ble Supreme Court and the writ petition filed before the Hon'ble Madras High Court are
pending for adjudication.

The company has been legally advised and is hopeful of favourable outcome before the Supreme Court on the invalidity
of and the retrospective application of the Amending Act of 2003 and in the writ petition filed before the Hon'ble Madras
High Court. An amount of ' 422.69 lakhs has been provided on a prudent basis in the earlier financial year. No provision is
considered necessary by the management for the balance electricity tax demand and has been disclosed as contingent
liability.

The Tamilnadu Electricity Distribution Circle had raised the demand of ' 1,067 Lakhs for parallel operations charges for
the period from May 2014 to November 2019. The Company has filed writ petition before the Hon'ble High Court, Madras,
Madurai and has obtained the interim stay of the said demand.

ii) In the matter of disputed demand of ' 698.94 lakhs consequent to revision in the lease rent rates fixed by the Tariff
Authority for Major Ports (TAMP) from 2006 to 2016 in respect of the port lands taken on lease by the Company from the
V. O. Chidambaranar Port Trust, the Company has obtained interim stay from the Honourable High Court of Judicature at
Madras vide order dated 01.08.2014. The Company is confident of succeeding in this matter.

iii) The Company has been drawing water for industrial purpose from Tamaraparani River at Mukkani and paying water
charges based on the quantity drawn from the river as per the Water Withdrawal Agreement entered with Public Works
Department- Water Resources. The said agreement expired in 1995 and the company has made an application for
the renewal of the said agreement and has been following up with the department. In the absence of renewed Water
Withdrawal agreement, department has issued various letters for demanding arrears of water charges, interest and
penalty thereon against which the company has filed writ petition and High court has granted stay subject to the company
continuing to pay the admitted arrears i.e water charges & the renewal charges as per the rates prescribed in the earlier
agreement which the company has been paying. As at March 31 2026. demand as per the letter issued by the department
amounting to ' 3184.03 lakhs is disclosed as contingent liability and the Company is confident of getting agreement
renewed and also getting favourable order from the High Court.

(B) Commitments:

i) Estimated amount of Contracts remaining to be executed on Capital Account and not provided for is ' 3658.50 lakhs
(31^st March 2025: ' 3130.22 lakhs).

ii) In respect of land on lease, the future obligations towards lease rentals under the lease agreements as on
31^st March, 2026 amount to ' 698.94 lakhs (31^st March 2025:? 698.94 lakhs)

iii) The Company has given an undertaking for the purposes of obtaining 100% Export Oriented Unit status that it would
achieve positive net foreign exchange earnings as prescribed in the EOU Scheme for a period of five years upto
May 2020 and further extended upto 20.05.2025. During the year, the company has filed an application for second
extension for five more years i.e 21.05.2025 to 20.05.2030 and the same has been accepted by the department. The
Company is hopeful of achieving the said parameters and does not expect any liability on this account as on the
Balance sheet date.

a. Statements of Account/balance confirmations of trade receivables and trade payable, wherever received, have been
reconciled and impact thereof, in any, has been dealt with to the extent agreed upon by the Company.

b. In case of material lying with third party, movement of material is recorded and closing balances have been reconciled on the
basis of periodical statements and / or subsequent movement of such material, as certified by the Management.

c. In the opinion of the Board, any of the assets other than PPE, intangible assets and non-current investments do not have a
value, on realisation in the ordinary course of business, less than the amount at which they are stated.

Key Managerial Personnel who are under the employment of the company are entitled to post- employment benefits and other
long-term benefits recognised as per IND AS 19 Employee Benefits in the financial statements. As the leave encashment is lump
sum amount provided on the basis of actuarial valuation, the same is not included above.

NOTE 39- FINANCIAL DERIVATIVE INSTRUMENTS:

a. Derivative contracts entered by the Company and outstanding as on 31^st March, 2026 for Hedging currency and interest
related risks.

Forward exchange contracts and options (being derivative instruments), which are not intended for trading or speculative
purposes but for hedge purposes to establish the amount of reporting currency required or available at the settlement date
of certain payables and receivables

a. Land includes a land costing ' 3.91 lakhs (fair valued at ' 2380.20 lakhs on transition date) admeasuring 793.39 acres at
Sahupuram Works, the assignment deeds in respect of which are yet to be executed by the State Government in favour of the
Company. The Company had remitted the above land cost as per State Government order in the year 1989.

The State Government vide order dated 31^st March 2017 rejected the request for the assignment of land and issued orders
to repossess the said land and ordered to collect the arrears of lease amount from 1989 with 12%. The Company filed writ
petition against the said order before the Honourable Madras High Court.

The Hon'ble Madras High Court, Madurai Bench vide Order dt 26.2.2024 has set aside the above Order and remanded back
for fresh consideration. The High Court has also given direction to the revenue authorities to fix the land cost, within 6 months
from the date of Order, depending upon the market value of the land as on the date of the Order and considering the fact that
the company has made huge investments in the said lands believing the words of the Government in G.O. Ms. No.76 Revenue
Department dt. 7.1.1959. The company is hopeful of getting the ownership of the land transferred in its name as per Sec.53A
of the Transfer of Property Act. Accordingly, the said land is continued to be treated as “freehold". The determination of cost
of land by the revenue authorities is pending. The company does not expect the outflow of resources to be material.

b. In the matter of leasehold land in respect of the salt works at Kuda, Dhrangadhra, which is an “Operating Lease", the
Honourable Supreme Court has admitted the SLP filed by the Company against the Order of the Gujarat High Court upholding
that the lease of the aforesaid land is not permanent and hence is terminable. The Company is confident of succeeding in the
Supreme Court

NOTE 41- DISCLOSURE PURSUANT TO IND AS-19 “EMPLOYEE BENEFITS":

The Company has classified the various benefits provided to employees as under:

NOTE NO 44- EXPENDITURE INCCURED ON CORPORATE SOCIAL RESPONSIBILITY (CSR)
ACTIVITIES:

a. Gross amount required to be spent by the Company during the year is ' 202.26 lakhs (PY. ' 264.85 lakhs) as against budget
approved by the Board of ' 202.26 lakhs (PY. ' 264.85 lakhs). ' 4.93 lakhs overspent during F.Y. 2024-25 was set-off from the
Budget of F.Y.2025-26 with the approval of the Board and net Budget to be spent during the F.Y.2025-26 was ' 197.33 lakhs

NOTE 45- FAIR VALUE MEASUREMENTS:

The following disclosures are made as required by IND AS -113 pertaining to Fair value measurement:
a. Accounting classification and fair values

The fair values of the financial assets and liabilities are 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 table shows the carrying amounts and fair values of financial assets and financial liabilities, including their
levels in the fair value hierarchy. It does not include fair value information for financial assets and financial liabilities not
measured at fair value if the carrying amount is a reasonable approximation of fair value.

e. Liquidity Risk:

Liquidity risk is defined as the risk that the Company will not be able to settle or meet its obligations on time or at a reasonable
price. 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.

c. Financial risk management

The Company has exposure to the Credit risk, Liquidity risk and Market risk arising from financial instruments.

Risk Management Framework: The Company's Board of Directors has overall responsibility for the establishment and
oversight of the Company's risk management framework. The Board of Directors has established the Risk Management
Committee (RMC), which is responsible for developing and monitoring the Company's risk management policies.

The Company's risk management policies are established to identify and analyse the risks faced by the Company, to set
appropriate risk limits to control / 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 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 risks faced by the Company. The
Audit Committee is assisted by internal audit. Internal audit undertakes reviews of risk management controls and procedures,
the results of which are reported to the Audit Committee.

The Company's financial risk management is an integral part of how to plan and execute its business strategies. The
Company's financial risk management policy is approved by the Board of Directors.

d. Credit Risk

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.

Trade receivables: The Company considers the probability of default upon initial recognition of asset and whether there has
been a significant increase in credit risk on an on-going basis throughout each reporting period.

The following table provides information about the exposure to credit risk and measurement of loss allowance using Life time
expected credit loss for trade receivables:

f. Market Risk

Market risk is the risk that changes in market prices such as foreign exchange rates, interest rates and commodity prices, will
affect the Company's income or the value of its financial instruments. Market risk is attributable to all market risk sensitive
financial instruments including foreign currency receivables and payables, long term debt and commodity prices. The
Company is exposed to market risk primarily related to foreign exchange rate risk, interest rate risk and commodity price risk.
Interest rate risk:

Interest rate risk can be either fair value interest rate risk or cash flow interest rate risk. Fair value interest rate risk is the risk
of changes in fair values of fixed interest bearing investments because of fluctuations in the interest rates, in cases where the
borrowings are measured at fair value through the

Statement of profit and loss. Cash flow interest rate risk is the risk that the future cash flows of floating interest bearing
investments will fluctuate because of fluctuations in the interest rates.

Exposure to Interest rate risk:

Company's interest rate risk arises from borrowings. The interest rate profile of the Company's interest-bearing long term
financial instruments is as follows:

Cash flow sensitivity analysis for variable-rate instruments: A reasonably possible decrease by 100 basis points in interest
rates at the reporting date would have positive impact (before tax) by 189.73 lakhs and ?296.47 lakhs for the outstanding
balance as on 31.3.2026 and 31.3.2025 respectively. Similarly a reasonable possible increase by 100 basis points in interest
rate would have negative impact (before tax) by same amounts.

Currency risk:

The Company is exposed to currency risk on account of its operating and financing activities. The functional currency of the
Company is Indian Rupee.

Sensitivity analysis:

A reasonably possible strengthening of the Indian Rupee against USD at March 31 by 4% would have positive impact
(before tax) by ' 576.18 lakhs and ' 643.39 lakhs for the net unhedged outstanding balance as on 31.3.2026 and 31.3.2025
respectively. Similarly a reasonably possible weakening of the India Rupee against USD would have a negative impact (before
tax) by same amounts.

Capital Management

For the purpose of the Company's capital management, capital includes issued capital, convertible instruments and reserves.
The primary objective of the Company's Capital Management is to maximise shareholder value. The company manages its
capital structure and makes adjustments, if any, required in the light of the current economic environment and other business
requirements.

NOTE 46:

Section 115BAA in the Income Tax Act 1967 (“Act") provides a non-reversible option to domestic companies to pay corporate tax
at a reduced rate effective from 1^st April 2019 subject to certain conditions. The company has assessed the applicability of the Act
and opted to continue the existing normal tax rate (i.e. 34.944%) for the year ended 31^st March 2026.

NOTE 47: Other Statutory Information

• The Company does not have any Benami property, where any proceeding has been initiated or pending against the Company
for holding any Benami property.

• The Company does not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory period.

• The Company has not traded or invested in Crypto currency or Virtual Currency during the financial year.

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

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

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

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

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

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

• The Company is not declared as willful defaulter by any bank or financial institution (as defined under the Companies Act,
2013) or consortium thereof or other lender in accordance with the guidelines on willful defaulters issued by the Reserve Bank
of India.

• The Company has complied with the number of layers for its holding in downstream companies prescribed under clause (87)
of section 2 of the Companies Act, 2013 read with the Companies (Restriction on number of Layers) Rules, 2017.

• The Company has not revalued any of its Property, Plant and Equipment (including Right-of-Use Assets) during the year.

• The company has no transactions with companies struck off under section 248 of the Companies Act, 2013 or section 560
of Companies Act, 1956 for the year ended/ as at 31^st March 2026.

• The Company does not have any investment property.

• The Company does not have any Intangible Assets.

• The Company has borrowings from banks on the basis of security of current assets. The quarterly returns filed by the
Company with such banks are in agreement with the books of accounts of the Company.

• The Company has complied with the number of layers prescribed under clause (87) of section 2 of the Companies Act, 2013
read with Companies (Restriction on number of Layers) Rules, 2017.

NOTE 48: Scheme of Amalgamation:

The Board in its meeting held on 13^th February 2025 considered and approved the Scheme of Amalgamation under Section
232 read with Section 230 and 66 of the Companies Act, 2013 and other applicable provisions of the Companies Act, 2013
(“The Act") and Rules & Regulations framed thereunder between Dhrangadhara Trading Company Private Limited (“Transferor
Company 1" or “DTCPL") and Sahu Brothers Private Limited (“Transferor Company 2" or “SBPL") and DCW Limited (“Transferee
Company" or “DCW") and their respective shareholders (the “Scheme"), The National Company Law Tribunal, Division Bench,
Court-1 Ahmedabad approved the Scheme vide its Order dated 22nd January, 2026 and the amalgamation became effective on 4^th
February 2026. Consequent to the amalgamation prescribed by the Scheme, all the assets and liabilities of transferor companies
were transferred to and vested in the Company with effect from 1st July 2024 (“the Appointed Date") and in consideration thereof,
DCW issued 12,80,500 fully paid equity shares of ' 2/- each to the Equity Shareholders of DTCPL in proportion to their holdings
in DTCPL and 5,24,59,860 fully paid equity shares of ?2/- each to the Equity Shareholders of SBPL in proportion to their holdings
in SBPL, in lieu of the same number of equity shares namely 12,80,500 and 5,24,59,860 respectively, held by the said transferor
companies in DCW before amalgamation. The amalgamation was accounted under the “pooling of interest" method for common
control business combination prescribed under Ind AS 103 - Business Combinations - Appendix C, as prescribed by the Scheme.
Accordingly, all the assets, liabilities and other reserves of transferor companies were aggregated with those of the Company
at their respective book values. The financial statement for previous period has been restated to give effect to the scheme of
amalgamation.

Note 49:

The company entered into power purchase agreement with Kaze Renewables Private Limited (KRPL) for purchase of power. The
company is entitled to liquidated damages as per the said agreement. Accordingly, the company has accounted for the same
during the year by crediting the profit and loss account.

NOTE 51:

The financial statements have been approved and authorized for issue by the Board of Directors on 5^th May 2026.

Note 52: Social Security Code

The Code on Social Security, 2020 ('Code') relating to employee benefits during employment and post-employment benefits
received Presidential assent in September 2020. The Code has been notified in the Gazette of India w.e.f. 21^st November 2025.
The Company has assessed the impact of the Code and has recorded the related impact in the current financial year.

NOTE 53:

The figures of previous year have been rearranged & regrouped wherever necessary and / or practicable to make them comparable
with those of the current year.