3.12 Provisions and Contingencies

The Company recognizes provisions when a present
obligation (legal or constructive) as a result of a past event
exists and it is probable that an outflow of resources
embodying economic benefits will be required to settle
such obligation and the amount of such obligation can be
reliably estimated.

The amount recognised as a provision is the best estimate
of the consideration required to settle the present obligation
at the end of the reporting period, taking into account the
risks and uncertainties surrounding the obligation. If the
effect of the time value of money is material, provisions
are discounted 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 recognised as a finance cost.

A disclosure for a contingent liability is made when there is
a possible obligation or a present obligation that may, but
probably will not require an outflow of resources embodying
economic benefits or the amount of such obligation cannot
be measured reliably. When there is a possible obligation
or a present obligation in respect of which the likelihood of
the outflow of resources embodying economic benefits is
remote, no provision or disclosure is made.

Contingent liabilities acquired in a business combination
are initially measured at fair value at the acquisition date. At
the end of the subsequent period, such contingent liabilities
are measured at the higher of the amounts that would
be recognised in accordance with Ind AS 37 Provisions,
Contingent Liabilities and Contingent Assets and the amount
initially recognised less cumulative amortisation recognised
in accordance with Ind AS 18 Revenue, if any.

3.13 Financial instruments

Financial assets and financial liabilities are recognised when
the Company becomes a party to the contractual provisions
of the instruments. Financial assets and financial liabilities
are initially measured at fair value. Transaction costs that are
directly attributable to the acquisition or issue of financial
assets and financial liabilities (other than financial assets and
financial liabilities at fair value through profit or loss) are added
to or deducted from the fair value of the financial assets
or financial liabilities, as appropriate, on initial recognition.
Transaction costs are directly attributable to the acquisition of
financial assets or financial liabilities at fair value through profit
or loss are recognised immediately in profit or loss.

A] Financial assets

a) Initial recognition and measurement:

Financial assets are recognised when the
Company becomes a party to the contractual
provisions of the instrument. On initial recognition,
a financial asset is recognised at fair value, in the
case of financial assets which are recognised
at fair value through profit and loss (FVTPL), its
transaction costs are recognised in the Statement
of Profit and Loss. In other cases, the transaction
costs are attributed to the acquisition value of the
financial asset.

b) Effective interest method:

The effective interest method is a method of
calculating the amortised cost of a debt instrument
and of allocating interest income over the relevant
period. The effective interest rate is the rate that
exactly discounts estimated future cash receipts
(including all fees and points paid or received
that form an integral part of the effective interest
rate, transaction costs and other premiums or
discounts) through the expected life of the debt
instrument, or, where appropriate, a shorter period,
to the net carrying amount on initial recognition.

Income is recognised on an effective interest basis
for debt instruments other than those financial
assets classified as at FVTPL. Interest income is
recognised in profit or loss and is included in the
“Other income” line item.

c) Subsequent measurement:

For subsequent measurement, the Company
classifies a financial asset in accordance with the
below criteria:

i. The Company’s business model for
managing the financial asset and

ii. The contractual cash flow characteristics of
the financial asset.

Based on the above criteria, the Company
classifies its financial assets into the
following categories:

i. Financial assets measured at amortized

cost:

A financial asset is measured at the
amortized cost if both the following
conditions are met:

a) The Company’s business model
objective for managing the financial
asset is to hold financial assets in order
to collect contractual cash flows, and

b) The contractual terms of the financial
asset give rise on specified dates to
cash flows that are solely payments of
principal and interest on the principal
amount outstanding.

This category applies to cash and bank
balances, trade receivables, loans other
financial assets and certain investments
of the Company. Such financial assets are
subsequently measured at amortized cost
using the effective interest method.

The amortized cost of a financial asset is
also adjusted for loss allowance, if any.

ii. Financial assets measured at FVTOCI:

A financial asset is measured at FVTOCI if
both of the following conditions are met:

a) The Company’s business model
objective for managing the financial
asset is achieved both by collecting
contractual cash flows and selling the
financial assets, and

b) The contractual terms of the financial
asset give rise on specified dates to
cash flows that are solely payments of
principal and interest on the principal
amount outstanding.

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 FVTOCI or FVTPL.
The Company makes such election on
an instrument-by-instrument basis. Fair
value changes on an equity instrument
are recognised as other income in the
Statement of Profit and Loss unless the
Company has elected to measure such
instrument at FVTOCI.

This category does not apply to any of
the financial assets of the Company other
than the derivative instrument for the
cash flow hedges.

Hi. Financial assets measured at FVTPL:

A financial asset is measured at FVTPL
unless it is measured at amortized cost or
FVTOCI as explained above.

This is a residual category applied to all
other investments of the Company. Such

financial assets are subsequently measured
at fair value at each reporting date. Fair value
changes are recognized in the Statement
of Profit and Loss. Dividend income on
the investments in equity instruments
is recognised as ‘other income’ in the
Statement of Profit and Loss.

d) Foreign exchange gains and losses

The fair value of financial assets denominated in
a foreign currency is determined in that foreign
currency and translated at the spot rate at the
end of each reporting period.

For foreign currency-denominated financial
assets measured at amortised cost and FVTPL,
the exchange differences are recognised in profit
or loss except for those which are designated as
hedging instruments in a hedging relationship.

e) Derecognition:

A financial asset (or, where applicable, a part
of a financial asset or part of a group of similar
financial assets) is derecognized (i.e. removed
from the Company’s Balance Sheet) when any of
the following occurs:

i. The contractual rights to cash flows from
the financial asset expires;

ii. The Company transfers its contractual
rights to receive cash flows of the financial
asset and has substantially transferred all
the risks and rewards of ownership of the
financial asset;

iii. The Company retains the contractual
rights to receive cash flows but assumes
a contractual obligation to pay the cash
flows without material delay to one or
more recipients under a ‘pass-through’
arrangement (thereby substantially
transferring all the risks and rewards of
ownership of the financial asset);

iv. The Company neither transfers nor
retains substantially all risk and rewards of
ownership and does not retain control over
the financial asset.

In cases where the Company has neither
transferred nor retained substantially all of
the risks and rewards of the financial asset,
but retains control of the financial asset, the
Company continues to recognize such financial
asset to the extent of its continuing involvement

in the financial asset. In that case, the Company
also recognizes an associated liability.

The financial asset and the associated liability are
measured on a basis that reflects the rights and
obligations that the Company has retained.

On derecognition of a financial asset, the
difference between the asset’s carrying amount
and the sum of the consideration received and
receivable and the cumulative gain or loss that
had been recognised in other comprehensive
income and accumulated in equity is recognised
in profit or loss if such gain or loss would have
otherwise been recognised in profit or loss on
disposal of that financial asset.

f) Impairment of financial assets:

The Company applies the expected credit losses
(ECL) model for measurement and recognition of
loss allowance on the following:

i. Trade receivables

ii. Financial assets measured at amortized
cost (other than trade receivables)

iii. Financial assets measured at fair
value through other comprehensive
income (FVTOCI)

In the case of trade receivables, the Company
follows a simplified approach wherein an amount
equal to lifetime ECL is measured and recognized
as a loss allowance.

In the case of other assets (listed as ii and iii
above), the Company determines if there has
been a significant increase in the credit risk of the
financial asset since initial recognition. If the credit
risk of such assets has not increased significantly,
an amount equal to 12-month ECL is measured
and recognized as a loss allowance. However, if
credit risk has increased significantly, an amount
equal to lifetime ECL is measured and recognized
as loss allowance.

Subsequently, if the credit quality of the
financial asset improves such that there is no
longer a significant increase in credit risk since
initial recognition, the Company reverts to
recognizing impairment loss allowance based on
a 12-month ECL.

ECL is the difference between all contractual cash
flows that are due to the Company in accordance
with the contract and all the cash flows that the

entity expects to receive (i.e., all cash shortfalls),
discounted at the original effective interest rate.

12-month ECL is a portion of the lifetime ECL
which results from default events that are possible
within 12 months from the reporting date. Lifetime
ECL are the expected credit losses resulting from
all possible default events over the expected life
of a financial asset.

ECL is measured in a manner that they reflect
unbiased and probability weighted amounts
determined by a range of outcomes, taking
into account the time value of money and other
reasonable information available as a result of
past events, current conditions and forecasts of
future economic conditions.

As a practical expedient, the Company uses a
provision matrix to measure lifetime ECL on its
portfolio of trade receivables. The provision matrix
is prepared based on historically observed default
rates over the expected life of trade receivables
and is adjusted for forward-looking estimates.
At each reporting date, the historically observed
default rates and changes in the forward-looking
estimates are updated.

ECL impairment loss allowance (or reversal)
recognized during the period is recognized as
expense/income in the Statement of Profit and Loss
under the head ‘Other expenses'/'other income'.

B] Financial liabilities and equity instruments

Debt and equity instruments issued by the Company
are classified as either financial liabilities or as equity
in accordance with the substance of the contractual
arrangements and the definitions of a financial liability
and an equity instrument.

i. Equity instruments: -

An equity instrument is any contract that
evidences a residual interest in the assets of
an entity after deducting all of its liabilities.
Equity instruments issued by the Company are
recognised at the proceeds received, net of
direct issue costs.

Repurchase of the Company's own equity
instruments is recognised and deducted directly
in equity. No gain or loss is recognised in profit or
loss on the purchase, sale, issue or cancellation of
the Company's own equity instruments.

ii. Financial Liabilities:-

a) Initial recognition and measurement:

Financial liabilities are recognised
when the Company becomes a party
to the contractual provisions of the
instrument. Financial liabilities are initially
measured at fair value.

b) Subsequent measurement:

Financial liabilities are subsequently
measured at amortised cost using the
effective interest rate method. Financial
liabilities carried at fair value through profit
or loss is measured at fair value with all
changes in fair value recognised in the
Statement of Profit and Loss.

The Company has not designated any
financial liability at FVTPL other than the
derivative instrument.

c) Foreign exchange gains and losses:

For financial liabilities that are denominated
in a foreign currency and are measured at
amortised cost at the end of each reporting
period, the foreign exchange gains and
losses are determined based on the
amortised cost of the instruments and are
recognised in profit or loss.

The fair value of financial liabilities
denominated in a foreign currency is
determined in that foreign currency and
translated at the closing rate at the end of
the reporting period. For financial liabilities
that are measured as at FVTPL, the foreign
exchange component forms part of the fair
value gains or losses and is recognised in
profit or loss.

d) Derecognition of financial liabilities:

A financial liability is derecognized 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 derecognition
of the original liability and the recognition
of a new liability. The difference between
the carrying amount of the financial liability
derecognized and the consideration
paid is recognized in the Statement of
Profit and Loss.

3.14 Derivative financial instruments and hedge
accounting

The Company enters into a variety of derivative financial
instruments to manage its exposure to interest rate and
foreign exchange rate risks, including foreign exchange
forward contracts, interest rate swaps and cross currency
swaps. Further details of derivative financial instruments are
disclosed in Note 40.

Derivatives are initially recognised at fair value at the date the
derivative contracts are entered into and are subsequently
re-measured to their fair value at the end of each reporting
period. The resulting gain or loss is recognised in profit or
loss immediately unless the derivative is designated and
effective as a hedging instrument, in which event the timing
of the recognition in profit or loss depends on the nature of
the hedging relationship and the nature of the hedged item.

The Company designates certain hedging instruments,
which include derivatives, as either fair value hedges, or
cash flow hedges.

At the inception of the hedge relationship, the Company
documents the relationship between the hedging instrument
and the hedged item, along with its risk management
objectives and its strategy for undertaking various hedge
transactions. Furthermore, at the inception of the hedge and
on an ongoing basis, the Company documents whether the
hedging instrument is highly effective in offsetting changes
in fair values or cash flows of the hedged item attributable to
the hedged risk.

The hedge relationship so designated as fair value is
accounted for in accordance with the accounting principles
prescribed for hedge accounting under Ind AS 109,
‘Financial Instruments’.

a) Fair value hedge:

The hedging instrument is initially recognized at fair
value on the date on which a derivative contract is
entered into and is subsequently measured at fair
value at each reporting date. Gain or loss arising from
changes in the fair value of the hedging instrument
is recognized in the Statement of Profit and Loss. A
hedging instrument is recognized as a financial asset
in the Balance Sheet if its fair value as at reporting date
is positive as compared to carrying value and as a
financial liability if its fair value as at reporting date is
negative as compared to carrying value.

Hedged item is initially recognized at fair value on
the date of entering into contractual obligation and is
subsequently measured at amortized cost. The gain
or loss on the hedged item is adjusted to the carrying
value of the hedged item and the corresponding effect
is recognized in the Statement of Profit and Loss.

Hedge accounting is discontinued when the hedging
instrument expires or is sold, terminated, or exercised,
or when it no longer qualifies for hedge accounting.

Note 40 sets out details of the fair values of the
derivative instruments used for hedging purposes.

b) Cash flow hedges

The effective portion of changes in the fair value of
derivatives that are designated and qualify as cash
flow hedges is recognised in other comprehensive
income and accumulated under the heading of cash
flow hedging reserve. The gain or loss relating to
the ineffective portion is recognised immediately in
profit or loss.

Amounts previously recognised in other
comprehensive income and accumulated in equity
relating to (effective portion as described above) are
reclassified to profit or loss in the periods when the
hedged item affects profit or loss, in the same line
as the recognised hedged item. However, when the
hedged forecast transaction results in the recognition
of a non-financial asset or a non-financial liability, such
gains and losses are transferred from equity (but not
as a reclassification adjustment) and included in the
initial measurement of the cost of the non-financial
asset or non-financial liability.

Hedge accounting is discontinued when the hedging
instrument expires or is sold, terminated, or exercised,
or when it no longer qualifies for hedge accounting.

Any gain or loss recognised in other comprehensive
income and accumulated in equity at that time
remains in equity and is recognised when the forecast
transaction is ultimately recognised in profit or loss.
When a forecast transaction is no longer expected
to occur, the gain or loss accumulated in equity is
recognised immediately in profit or loss.

3.15 Earnings Per Share

Basic earnings per share is computed by dividing the net
profit for the period attributable to the equity shareholders
of the Company by the weighted average number of equity
shares outstanding during the period. The weighted average
number of equity shares outstanding during the period and
for all periods presented is adjusted for events, such as
bonus shares, other than the conversion of potential equity
shares that have changed the number of equity shares
outstanding, without a corresponding change in resources.

For the purpose of calculating diluted earnings per share, the
net profit for the period attributable to equity shareholders
and the weighted average number of shares outstanding
during the period is adjusted for the effects of all dilutive
potential equity shares.

3.16 Recent Pronouncement

Ministry of Corporate Affairs (“MCA”) notifies new standards
or amendments to the existing standards under Companies
(Indian Accounting Standards) Rules as issued from time to
time. During the year ended March 31, 2026, MCA has notified
the Companies (Indian Accounting Standards) Amendment
Rules, 2025 applicable to the Company w.e.f. April 1, 2025.

(i) Amendments to Ind AS 21 - Lack of exchangeability

The amendment requires the Effects of Changes
in Foreign Exchange Rates to specify how an entity
should assess whether a currency is exchangeable
and how it should determine a spot exchange rate
when exchangeability is lacking. The amendments also
require disclosure of information that enables users of
its financial statements to understand how the currency
not being exchangeable into the other currency
affects, or is expected to affect, the entity’s financial
performance, financial position and cash flows. The
amendments are effective for annual reporting periods
beginning on or after 1st April 2025. When applying the
amendments, an entity cannot restate comparative
information. The amendments do not have a material
impact on the Company’s financial statements.

(ii) Amendments to Ind AS 1 - Classification of
Liabilities as Current or Non-current and Non¬
current Liabilities with Covenants.

In August 2025, the MCA notified amendments
to paragraphs 69 to 76 of Ind AS 1 to specify the
requirements for classifying liabilities as current or
non-current. The amendments clarify: y What is meant
by a right to defer settlement y That a right to defer
must exist at the end of the reporting period y That
classification is unaffected by the likelihood that an
entity will exercise its deferral right y That only if an
embedded derivative in a convertible liability is itself
an equity instrument would the terms of a liability
not impact its classification In addition, a requirement
has been introduced to require disclosure when a
liability arising from a loan agreement is classified as
non-current and the entity’s right to defer settlement
is contingent on compliance with future covenants
within twelve months. If there is a breach of a material
covenant of a long term loan arrangement on or before
the end of the reporting period, resulting in the liability
becoming payable on demand as at the reporting date,
and the lender agrees-after the reporting period but
before the financial statements are approved for issue-
not to demand repayment for at least 12 months as a
consequence of the breach, this shall be treated as an
adjusting event. Accordingly, the entity is not required
to classify the liability as current. The amendments are
effective for annual reporting periods beginning on or
after 1st April 2025 retrospectively in accordance with

Ind AS 8. The amendments have resulted in additional
disclosure in the financial statements, refer Note 17A
(vi) but not had an impact on the classification of
Company’s liabilities.

(iii) Amendments to Ind AS 7 and Ind AS 107 - Supplier
Finance Arrangements

In August 2025, the MCA notified amendments to Ind
AS 7 Statement of Cash Flows and Ind AS 107 Financial
Instruments: Disclosures to clarify the characteristics of
supplier finance arrangements and require additional
disclosure of such arrangements. The disclosure
requirements in the amendments are intended to
assist users of financial statements in understanding
the effects of supplier finance arrangements on an
entity’s liabilities, cash flows and exposure to liquidity
risk. As a result of implementing the amendments, the
Company has provided additional disclosures about its
supplier finance arrangement. Please refer to Note 17C.

(iv) International Tax Reform-Pillar Two Model Rules

Amendments to Ind AS 12 In August 2025, the MCA
notified amendments to Ind AS 12 Income Taxes in
response to the OECD’s BEPS Pillar Two rules and
include: y A mandatory temporary exception to the
recognition and disclosure of deferred taxes arising
from the jurisdictional implementation of the Pillar Two
model rules; and y Disclosure requirements for affected
entities to help users of the financial statements better
understand an entity’s exposure to Pillar Two income
taxes arising from that legislation, particularly before its
effective date. The mandatory temporary exception -
the use of which is required to be disclosed - applies
immediately. The remaining disclosure requirements
apply for annual reporting periods beginning on or
after 1 April 2025, but not for any interim periods ending
on or before 31 March 2026. The amendments had no
impact on the Company’s financial statements as the
Company is not in scope of the Pillar Two model rules.

3.17 Standard issued but not effective

The Ministry of Corporate Affairs (MCA), as part of India’s
continued convergence with IFRS, has initiated the process
for introduction of Ind AS 118 - Presentation and Disclosure in
Financial Statements, which is converged with IFRS 18 issued
by the IASB in April 2024. Ind AS 118 is intended to replace Ind
AS 1 (Presentation of Financial Statements) and focuses on
improving how entities present and communicate financial
performance, particularly in the Statement of Profit and
Loss. This standard is proposed to be applicable for annual
reporting periods beginning on or after 1 April 2027, subject
to final notification by the MCA through amendment to the
Companies (Indian Accounting Standards) Rules.

4 Critical accounting judgements and use of
estimates

In application of Company’s accounting policies, which
are described in Note 3, the directors of the Company are
required to make judgements, estimations and assumptions
about the carrying value of assets and liabilities that are not
readily apparent from other sources. The estimates and
associated assumptions are based on historical experience
and other factors that are considered to be relevant. Actual
results may differ from these estimates.

The estimates and underlying assumptions are reviewed
on an ongoing basis. Revisions to accounting estimates are
recognised in the period in which the estimate is revised
if the revision affects only that period or in the period of
revision or future periods if the revision affects both current
and future periods.

4.1 Following are the key assumptions concerning the future,
and other key sources of estimation uncertainty at the end
of the reporting period that may have a significant risk of
causing a material adjustment to the carrying amounts of
assets and liabilities within the next financial year.

a) Useful lives of Property, Plant & Equipment (PPE)
and intangible assets (other than goodwill):

The Company has adopted useful lives of PPE and
intangible assets (other than goodwill) as described in
Note 3.8 above. The Company reviews the estimated
useful lives of PPE at the end of each reporting period.

b) Fair value measurements and valuation processes

The Company measures financial instruments at
fair value in accordance with the accounting policies
mentioned above.

For assets and liabilities that are recognized in the
financial statements at fair value on a recurring
basis, the Company determines whether transfers
have occurred between levels in the hierarchy by re¬
assessing categorization at the end of each reporting
period and discloses the same.

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 value is measured using valuation techniques,
including the discounted cash flow model, which

involves various judgements and assumptions. Where
necessary, the Company engages third-party qualified
valuers to perform the valuation.

Information about the valuation techniques and inputs
used in determining the fair values of various assets
and liabilities are disclosed in Note 40.

c) Other assumptions and estimation uncertainties,
included in respective notes are as under:

• Recognition of deferred tax assets is based
on estimates of taxable profits in future years.
The Company prepares detailed cash flow and
profitability projections, which are reviewed by
the board of directors of the Company. Estimation
of current tax expense and payable, recognition of
deferred tax assets and the possibility of utilizing
available tax credits - see Note 10 and Note 41

• Measurement of defined benefit obligations and
other long-term employee benefits: - see Note 37

• Assessment of the status of various legal cases/
claims and other disputes where the Company
does not expect any material outflow of resources
and hence these are reflected as contingent
liabilities Recognition and measurement of
provisions and contingencies: key assumptions
about the likelihood and magnitude of an outflow
of resources - see Note 23 and Note 42

• Impairment of financial assets - see Note 40

• The Company follows the standard costing/
pre-defined Bill of Materials (BOM) method for
the consumption of inventory related to WTG
manufacturing, project development, erection &
commissioning work and Common infrastructure
facilities. Standard costs are determined based
on technical assessments, historical cost trends,
and management estimates. Management
reviews the standard rates at regular intervals
and revises them, where necessary, to reflect
the most current and realistic cost estimates.
The determination of standard cost involves
the use of significant management judgment
and estimates, particularly in relation to material
consumption patterns, wastage norms, and
market price fluctuations.

(b) Rights, preferences and restrictions attached to equity shares

The Company has only one class of equity shares having par value of H 10 per share. Each shareholder is eligible for one vote per
share held and entitled to receive dividend as declared from time to time. In the event of liquidation of the Company, the holders of
equity shares will be entitled to receive the remaining assets of the Company, in proportion of their shareholding.

*Pursuant to board resolution passed as on 25 April 2024 and share holder resolution passed in EGM dated 17 May 2024, the Company has issued 97,78,45,488.00
fully paid up bonus equity shares of H10/- each in the ratio of 3 (One) equity share of H 10/- each for every 1 (One) existing equity share of H 10/- each during the
year ended March 31, 2025.

**The Board of Directors of the Company, at its meeting held on July 17, 2025, approved the proposal for issuance of equity shares of the Company on a rights
basis to the eligible shareholders, for an amount aggregating up to H1,25,000 lakhs, in accordance with the applicable laws and regulations.

Subsequently, the Company received in-principle approvals from the National Stock Exchange of India Limited (NSE) and BSE
Limited (BSE) vide their letters dated July 21, 2025 and July 22, 2025, respectively.

Further, the Board of Directors, at its meeting held on July 23, 2025, inter alia, considered and approved the detailed terms of the
Rights Issue, as under:

• Total number of Rights Equity Shares: 10,41,10,712 fully paid-up equity shares

• Face Value per share: H10/- each

• Issue Price per Rights Equity Share: H120/- (including a premium of H 110/- per share)

• Aggregate Issue Size: H 1,24,933.00 lakhs

• Rights Entitlement Ratio: 5 Rights Equity Shares for every 78 fully paid-up equity shares held by the eligible shareholders as on
the Record Date - July 29, 2025

• Issue Period: Opens on August 6, 2025 and closes on August 20, 2025

There has been no deviation in the use of proceeds of the Rights Issue, from the objects stated in the Offer document. The part of
the proceeds has been temporarily invested in fixed deposits as on March 31, 2026.

Note:-The Company issued ESOP’s during the financial year 2024-25 & 2025-26 which could potentially dilutes basic earnings per share
in the future, but were not included in the calculations of diluted earnings per share because they are anti-dilutive.

Further, the weighted average numbers of equity share has been computed after considering the impact of bonus share and merger effect.

37 . Employee benefits:

(a) Defined Contribution Plans

The Company contributes to the Government managed provident and pension fund for all qualifying employees.

Contribution to provident fund of H 330.57 Lakhs (previous year: H 279.11 Lakhs) is recognized as an expense and included in
“Contribution to provident and other funds” in Statement of Profit and Loss.

Contribution to employee state insurance scheme of H 0.24 Lakhs (previous year: H 5.42 Lakhs) is recognized as an expense and
included in “Contribution to provident and other funds” in Statement of Profit and Loss.

(b) Defined Benefit Plans:

The Company has defined benefit plan for payment of gratuity to all qualifying employees. It is governed by the Payment of
Gratuity Act, 1972. Under this Act, an employee who has completed five years of service is entitled to the specified benefit. The
level of benefits provided depends on the employee’s length of service and salary at retirement age.The Company’s defined benefit
plan is unfunded.

There are no other post retirement benefits provided by the Company.

The most recent actuarial valuation of the present value of the defined benefit obligation were carried out as at 31 March 2026
and 31 March 2025 by Charan Gupta Consultants Private Limited, Fellow of the Institute of the Actuaries of India. The present
value of the defined benefit obligation, the related current service cost and past service cost, were measured using the projected
unit credit method.

Estimates of future salary increases considered in actuarial valuation take account of inflation, seniority, promotion and other
relevant factors such as supply and demand in the employment market.

These plans typically expose the Company to actuarial risks such as interest rate risk and salary risk.

a) Interest risk: a decrease in the bond interest rate will increase the plan liability.

b) Salary risk: the present value of the defined benefit plan liability is calculated by reference to the future salaries of plan
participants. As such, a variation in the expected rate of salary increase of the plan participants will change the plan liability.

c) Investment risk-since the scheme is unfunded the Company is not exposed to investment risk.

Sensitivity Analysis

Significant actuarial assumptions for the determination of defined obligation are discount rate and expected salary increase. The
sensitivity analysis below have been determined based on reasonably possible changes of the respective assumptions occuring at
the end of the reporting period, while holding all other assumptions constant.

(C) Guarantee

a) The Company has issued Corporate guarantee 31 March 2026 H 18,050.00 lakhs (31 March 2025 H 18,945.72 lakhs) given
to Bank against loan taken by Inox Clean Energy Limited (formerly Inox Clean Energy Private Limited and Nani Virani Wind
Energy Private Limited).

b) The Company has given guarantee 31 March 2026 H 2,915.87 lakhs (31 March 2025 H 2,097.34 lakhs) to Bank/financial institution
against facility taken by Inox Green Energy Services Limited

c) The Company has issued board resolution (BR) for short fall undertaking against borrowings taken from Financial institution
by Inox Renewables Solution limited. The outstanding balance of such borrwoings as at 31 March 2026 is H 32,500.00 Lakhs
(as at 31 March 2025 :Nil)

Notes:

(a) Sales, purchases and service transactions with the related parties are exclusive of taxes and made at arm's length price.

(b) Amounts outstanding are unsecured and will be settled in cash or receipts of goods and services.

(c) Expense has been recognised for the year ended 31 March 2026 NIL (31 March 2025 H 1,346 Lakhs ) for doubtful inter-corporate
deposit in respect of amounts owed by related parties.

(d) There have been no gurantees received or provided for any related party receivables or payables.

(e) Compensation of Key management personnel:

39 . Capital Management

For the purpose of the Company’s capital management, capital includes issued equity share capital, security premium and all other
equity reserves attributable to the equity holders of the Company.

The Company’ s capital management objectives are:

• to ensure the Company’s ability to continue as a going concern

• to provide an adequate return to shareholders by pricing products and services commensurately with the level of risk.

The Company manages its capital structure and makes adjustments in light of changes in economic conditions and the requirements
of the financial covenants. To maintain or adjust the capital structure, the Company may adjust the dividend payment to shareholders,
return capital to shareholders or issue new shares. The Company monitors capital using a gearing ratio, which is net debt divided by
total equity. The Company includes within net debt, interest bearing loans and borrowings, trade and other payables, less cash and cash
equivalents, excluding discontinued operations, if any.

Investment in subsidiaries are classified as equity investments have been accounted at historical cost. Since these are scope out of
Ind As 109 for the purpose of measurement, the same have not been disclosed in the table above.

The carrying amount reflected above represents the Company's maximum exposure to credit risk for such financial assets.

(ii) Financial risk management

The Company's corporate finance function provides services to the business, coordinates access to financial market, monitors and
manages the financial risks relating to the operations of the Company through internal risk reports which analyse exposures by
degree and magnitude of the risk. These risks include market risk (including currency risk, interest rate risk and other price risk),
credit risk and liquidity risk.

The use of financial derivatives is governed by the Company's policies approved by the Board of Directors of the Company, which
provide written principles on foreign exchange risk, interest rate risk, credit risk, the use of financial derivatives and non-derivative
financial instruments and the investment of the excess liquidity. Compliance with policies and exposure limits is reviewed by the
Company on a continuous basis. The Company does not enter into or trade financial instruments including derivative financial
instruments for speculative purpose.

(iii) Market Risk

The Company's activities expose it primarily to the financial risks of changes in foreign currency exchange rates and interest rates.

(iv) (a) Interest rate risk management

Interest rate risk refers to the possibility that the fair value or future cash flows of a financial instrument will fluctuate because
of changes in market interest rate. The Company is exposed to interest rate risk because it borrows funds at both fixed and
floating interest rates. The risk is managed by the Company by maintaining an appropriate mix between fixed and floating rate
borrowings. Hedging activities are evaluated regularly to align with interest rate views and defined risk appetite, ensuring the
most cost-effective hedging strategies are applied.

(v) (b) Interest rate sensitivity analysis

The sensitivity analysis below have been determined based on the exposure to interest rates for floating rate liabilities at the
end of the reporting period. For floating rate liabilities, a 50 basis point increase or decrease is used when reporting interest
rate risk internally to key management personnel and represents management’s assessment of the reasonably possible
change in interest rates.

If interest rates had been 50 basis points higher/lower and all other variables were held constant, the Company's profit for the
year ended 31 March 2026 would decrease/increase by H 457.17 Lakhs net of tax (for the year ended 31 March 2025 decrease/
increase by H 142.16 Lakhs net of tax). This is mainly attributable to the Company’s exposure to interest rates on its variable rate
on financial liabilities.

(vi) Other price risks

Other price risk is the risk that the fair value of a financial instrument will fluctuate due to changes in market traded price. Other
price risk arises from financial assets such as investments in equity instruments and mutual funds. The Company does not have
investment in equity instruments, other than investments in subsidiary which are held for strategic rather than trading purposes.
The Company does not actively trade these investments. The Company's investment in mutual funds are in debt funds. Hence the
Company's exposure to equity price risk is minimal.

(vii) Credit risk management

Credit risk refers to risk that a counterparty will default on its contractual obligations resulting in financial loss to the Company. Credit
risk arises primarily from financial assets such as trade receivables, investment in mutual funds, derivative financial instruments,
other balances with banks, loans and other receivables.

(a) Trade receivables

Credit risk arising from trade receivables is managed in accordance with the Company’s established policy, procedures and
control relating to customer credit risk management. The Company supplies wind turbine equipments to customers which
are installed and commissioned generally by a group company and it involves various activities such as civil work, electrical
& mechanical work and commissioning activities. The payment terms with customers are fixed as per industry norms. The
above activities lead to certain amounts becoming due for payment on completion of related activities and commissioning.
The Company considers such amounts as due only on completion of related milestones. However, the group company has
also long term operation and maintenance contract with such customers. Accordingly, risk of recovery of such amounts
is mitigated. Customers who represents more than 5% of the total balance of Trade Receivable as at 31 March 2026 is H
2,83,306.55 lakhs (as at 31 March 2025 is H 2,05,252.01 lakhs) are due from 5 major customers (5 customers as at 31 March
2025 ) who are reputed parties. All trade receivables are reviewed and assessed for default at each reporting period.

For trade receivables, as a practical expedient, the Company computes credit loss allowance based on a provision matrix.
The provision matrix is prepared based on historically observed default rates over the expected life of trade receivables from
PSU-Non disputed and others and is adjusted for forward-looking estimates.The expected credit loss (ECL) is not calculated
for balance outstanding with related parties.

b) Loans and other receivables

The Company applies expected credit losses (ECL) model for measurement and recognition of loss allowance on the loans
given by the Company to the external parties. ECL is the difference between all contractual cash flows that are due to the
Company in accordance with the contract and all the cash flows that the Company expects to receive (i.e., all cash shortfalls),
discounted at the original effective interest rate.

The Company determines if there has been a significant increase in credit risk of the financial asset since initial recognition. If
the credit risk of such assets has not increased significantly, an amount equal to 12-month ECL is measured and recognized as
loss allowance. However, if credit risk has increased significantly, an amount equal to lifetime ECL is measured and recognized
as loss allowance.

12 months ECL are a portion of the lifetime ECL which result from default events that are possible within 12 months from the
reporting date. Lifetime ECL are the expected credit losses resulting from all possible default events over the expected life of
a financial asset.

ECL are measured in a manner that they reflect unbiased and probability weighted amounts determined by a range of
outcomes, taking into account the time value of money and other reasonable information available as a result of past events,
current conditions and forecasts of future economic conditions.

ECL impairment loss allowance (or reversal) recognized during the period is recognized as expense/income in the Statement
of Profit and Loss under the head ‘Other expenses’/'other income'.

c) Other financial assets

Credit risk arising from investment in debt funds, derivative financial instruments and other balances with banks is limited
because the counterparties are banks and recognised financial institutions with high credit ratings assigned by the various
credit rating agencies. There are no collaterals held against such investments.

Liquidity Risk Management

Ultimate responsibility for liquidity risk management rests with the committee of board of directors of the Company, which has
established an appropriate liquidity risk management framework for the management of the Company's short, medium and
long-term funding and liquidity management requirements. The Company manages liquidity risk by maintaining adequate
reserves, banking facilities and reserve borrowing facilities, by continuously monitoring forecast and actual cash flows, and by
matching the maturity profiles of financial assets and liabilities.

Interest risk tables

The following table detail the analysis of derivative as well as non-derivative financial liabilities of the Company into relevant
maturity groupings based on the remaining period from the reporting date to the contractual maturity date. The amounts
disclosed in the table are the contractual undiscounted cash flows.

The tax rate used for the year ended 31 March 2026 and 31 March 2025 in reconciliations above is the corporate tax rate of 25.17%
(previous year 25.17%) payable by corporate entities in India on taxable profits under the Indian tax law.

Provision for tax in the standalone financial statement for the year ended 31 March 2026 and year ended 31 March 2025 are only
provisional in the respective years and subject to change at the time of filing of Income Tax Return based on actual addition/deduction
as per provisions of Income Tax Act 1961.

42 . Contingent liabilities:

(a) Claims against the Company not acknowledged as debts: claims made by vendors - H 1,303.61 lakhs plus interest thereon if any
(as at 31 March 2025: H 1,510.41 lakhs)

Some of the suppliers have raised claims including interest on account of non payment in terms of the respective contracts. The
Company has contended that the suppliers have not adhered to some of the contract terms. At present the matters are pending
before the jurisdictional authorities or are under negotiations.

(b) In respect of claims made by customers for operational matters- H 12,151.18 lakhs plus interest thereon if any (as at 31 March 2025:
H 11,817.67 lakhs) (to the extent of oustanding balances). In view of the management, the company may be liable only to the extent
of outstanding receivable balance from respective customers and possibility of an outflow of resources for any claims made by
customers over and above of outstanding balances are remote.

Some of the customer have raised claims including interest on account of non compliance of terms of the respective contracts. At
present the matters are pending before the jurisdictional authorities or are under negotiations.

(c) Claims made by vendors in National Company Law Tribunal (NCLT) for H 278.00 lakhs plus interest thereon if any (as at 31 March
2025 : H 460.50 lakhs)

(d) In respect of Litigation with one of the state electricity distribution board as at 31 March 2026 H Nil lakhs (as at 31 March 2025 :
H 435.00 lakhs)

(e) The SECI has been invoked Bank Gurantee of H 5,544.00 Lakhs (as at March 2025:H 5,544.00 Lakhs) the matter is under appellate
authority (CERC) and same is pending with regulators and disclosed as a contigent liability .

(f) In respect of VAT matters - H 611.82 lakhs (as at 31 March 2025: H 427.82 lakhs) plus interest thereon if any.

The Company had received orders for the financial years ended 31 March 2017 , in respect of Andhra Pradesh on account of Entry
Tax and CST demand on the issue of non-deposit of Entry Tax and non-submission of Statutory Forms for H 84.25 lakhs and H
343.56 lakhs and penalty of H 84.06 lakhs has been recovered from Input tax Credit (ITC). The Company had obtained stay from
Hon’ble High Court of Tirupati against entry tax and deposited 25% of the demand and filed appeals before the first appellate
authority in the matter of CST Addition of H 343.56 Lakhs and also for stay of demand by depositing H 82.45 Lakhs and a refund of
H 315.89 Lakhs has been appropriated towards demand of H 659.46 Lakhs.

The company had obtained VAT demand from GUJ VAT for H 1,304.88 lakhs on account of VAT Assessments due to mismatch
of ITC and non-submission of Statutory forms for FY 2014-2015 and 2015-2016 and filed appeal before the joint commissioner,
Ahmedabad in this matter and the appeal has been partly decided in our favour with balance demand of H 184.00 Lakhs against
which the Company has filed second appeal. The Company has also filed amnesty application for H 171.00 Lakhs. Both these
applicatons are pending as on reporting date.

(g) In respect of Service/central Excise tax matter - H 3,980.60 lakhs plus interest thereon if any (as at 31 March 2025: H 3,980.60 lakhs)

The Company has received orders for the period September 2011 to March 2016, in respect of Service Tax, levying demand of
H 1,401.63 lakhs on account of disallowance of exemption of Research & Development cess from payment of service tax. The
Company has received adverse order from CESTAT, Allahabad Bench.

The company has preferred an appeal before Hon’ble Bench of Allahabad High Court and the Hon’ble Bench of Allahabad High
Court has stayed the proceedings subject to submission of the Security before the Assessing officer.

The Company has received order for the period April to March 2017, in respect of Service Tax, levying demand of H 11.19 lakhs on
account of disallowance of exemption of Research & Development cess from payment of service tax in the month of March, 2021
and has preferred an appeal before Noida Commissioner of Appeals.

The company has received order from central Excise orders from MP and GUJ rejecting the concessional duty claims on steel
purchased in MP and Gujrat, not treating the steel as main input material in relation to the final products and had levied demand of
H 1,128.70 lakhs and H 772.31 lakhs respectively and filed appeal before the CESTAT, Delhi and Ahmedabad respectively.

The Company has received Service tax demand order of H 645.77 Lakh from central GST commissionerate (Noida) dated 29 March
2023 including the penalty of H 322.83 lakh.

(h) In respect of Income tax matters - H 4,506.11 lakhs (31 March 2025: H 5,822.87 Lakhs) plus interest thereon if any

This includes demand for assessment year 2013-14 of H 641.96 lakhs received by the Company, mainly on account of disallowance
of deduction u/s 80IC of sale of scrap and other interest Income against which the company has obtained favourable order from
CIT-Appeals on the substantial issues and filed second appeal before ITAT, Bench, Chandigarh in June 2020 against the issues on
which relief has not been granted.

This includes demand for assessment year 2013-14 of H 272.64 lakhs received in the previous year by the Company, mainly on
account of reduction in the amount of tax incentive claimed, against which the company has obtained favourable order from
CIT-Appeals on the substantial issues and filed second appeal before ITAT, Bench, Chandigarh in June 2020 against the issues on
which relief has not been granted.

This includes demand for assessment year 2013-14 of H 373.09 lakhs received in the current year by the Company, mainly on
account of less deduction on payment made to subsidiary company u/s 194C, rather it should have been deducted u/s 194J, in
the assessment order passed by the Assessing officer. The Company has preferred an appeal before CIT (Appeals) Palampur
and hopeful to get favourable judgement in view of supported Judgement of Hon’ble Punjab and Haryana High Court and
CBDT instructions.

The Company has received Notice u/s 143(3) for Income Tax matters for AY. 2013-14, 2014-15 and 2015-16 amounted 483.24 lakh.
The comany has deposited 20% of demand and filled appeal before the CIT appeals. The matter is still pending. During the year
Company has received favorable order from CIT - Appeals in January 2025 for A.Y. 2015-16 amounted to 257.63 Lakhs and filled
an application for appeallate effect with the Jurisdictional appeal. The demand dis likely to be reduced to NIL. We have received
favourable CIT-Appeal order dated 31/01/2025 in respect of AY 2014-2015 and 2016-2017 and the AO Shimla has given appeal effect
in respect of both the years and has deleted the demand of H 2.5 cr and released the refund of H 2.45 cr and has adjusted the same
against the outstanding demand of subsequent/preceding years.

The Company has received Notice u/s 147 for Income Tax matters for AY. 2013-14, 2014-15, 2016-17 and 2018-19 for 1772.61 lakh. The
matter is pending for hearing before CIT Appeals Ahmedabad. Rectification application has been filled by the company.

The Company has received Notice u/s 143(3) in previous year for Income Tax matters for AY. 2015-16 and 2016-17 for 748.85 lakh.
The matter is pending for hearing before CIT Appeals Ahmedabad. Rectification application has been filled by the company. During
the year Company has received favorable order from CIT - Appeals in January 2025 for A.Y. 2015-16 amounted to 257.63 Lakhs
and filled an application for appeallate effect with the Jurisdictional AO and the AO Shimla has given appeal effect in respect of
both the years and has deleted the demand of H 2.5 cr and released the refund of H 2.45 cr and has adjusted the same against the
outstanding demand of subsequent/preceding years.

The Company has received Notice u/s 143(3) in previous year for Income Tax matters for AY. 2021-22 for 2430.03 lakh and the matter
is pending for hearing before CIT Appeals Ahmedabad. Writ petition filed with Hon’ble HC, Ahmedabad. Hon’ble HC, Ahmedabad
has quashed the judgement and directed the assessing officer to decide the case afresh within a period of 12 weeks. The AO has
completed the assessment with a demand of H 2430.03 lakh and we have obtained stay of demand by depositing the 10% of the
alleged demand plus H 25 lakhs in compliance with the Stay order issued by Hon’ble PCIT, Vadodara.

(i) In respect of GST matters - H 2,869.13 lakhs (31 March 2025: H 5,828.84 lakhs) plus interest thereon if any

This includes demand order received by the Company for non payment of Interest on delayed payment of GST amounting of H
11.57 lakhs and late payment of GST in cash against taxable supplies of H 218.54 lakhs for the period Dec 2017, Feb 2018, March 2018
which has already been deposited by the company and penalty of H 240.39 lakhs read with section 73 of the CGST Act. Appeal
against the peanalty order has been filled before Commissioner Appeal Jaipur.

An audit has been carried for which observation report has been issued u/s 65(6) leving penalty of H 69.67 lakhs. The Company has
filled appeal with Commissioner GST in Vijayapura.

This Includes Show Cause notice received by the company pertaining to A.Y. 2019-20 of H 1,997.48 Lakhs on account ITC availed on
Invoices pertaining to Previous Period. Company has filled reply to the show cause notice and a final order u/s 73 has been recevied
by the company for H 641.24 Lakhs. The Company has filled further appeal with Commissioner GST in Vijayapura

This Includes Demand order received by the company pertaining to A.Y. 2019-20 of H 38.05 Lakhs on account short payment of
taxes. The Company has filled further appeal with Appellate Authority

This Includes Demand order received by the company on 20th Dec 2024 of H 1,271.18 Lakhs on account short payment of taxe on
supply of goods & services. Reply has been filled by the company on 22 Nov 2024 for which final order is received in December
2024. The company has filled further appeal agaist the order.

This Includes Demand order received by the company on 30th April 2024 of H 762.48 Lakhs for A.Y. 2019-20. Appeal has been filled
by the company against the said order. Appeal Filed and favourable order dated received for concluded demand of H 21.37 Lakhs
including interest and penalty.

This Includes Demand order received by the company on 29th April 2024 of H 41.86 Lakhs for A.Y. 2019-20 on account of Incorrect
determination of time and value of supply of goods or services. The company has filled further appeal agaist the order on 25th July
2024. Appeal Filed and Resultantly, the appeal is rejected and the impugned order dated 25.04.2024 is to be upheld by Additional
Commissioner Appeals, Bhopal Shri G. Manigandasamy vide order dated 08/04/2026. We have to file appeal before GSTAT within
three months from the date of communication of this order.

This Includes Demand order received by the company on 22th August 2024 of H 315.24 Lakhs for A.Y. 2020-21 on account of
Incorrect determination of time and value of supply of goods or services and incorrect determination of liability to pay taxes. The
company has filled further appeal agaist the order on 7th December 2024. Appeal Filed and dismissed by Commissioner Appeals,
Bhopal Shri Dheerendra Mani Tripathi vide order dated 25/02/2026. We have to file appeal before GSTAT within three months from
the date of communication of this order or the extended time upto 30th June, 2026.

The Company has received Scrutiny Notice from Raj GST Deptt against which Reply was filed by the Company. The Deptt has
passed Demand of H (2.1854 Cr) with Interest ( H 0.1157 Cr) & Penalty (H 2.1854 Cr) and Appropriated the same with already paid Tax
amount. The Company has filed Amnesty Application against the Penalty and Interest Demand.

(j) In respect of Labour Cess under Building and Other Construction Workers Act, 1966 - H 61.11 lakhs (as at 31 March 2025: H 61.11 Lakhs)

The Company has received the order for the financial year ended 31 March 2015, 31 March 2016 in respect of Labour Cess on
construction work at Relwa Khurd MP plant.

(k) Corporate Guarantee of H 20,965.87 lakhs (as at 31 March 2025: H 31,445.72 lakhs) given to financial institution and Bank against loan
taken by Subsidiary Companies.

(l) In respect of custom duty of H 1,000.00 lakhs (as at 31 March 2025: H 1,000.00 lakhs) paid to Directorate of Revenue Intelligence .

(m) Amount of customs duty exemption availed by the Company under EPCG Scheme for which export obligations is pending H
3,217.76 Laklhs.

In respect of above matters, no additional provision is considered necessary as the Company expects favourable outcome. Further,
it is not possible for the Company to estimate the timing and amounts of further cash outflows, if any, in respect of these matters.

43 . Capital and other Commitments

Estimated amounts of contracts remaining to be executed on capital account and not provided for (net of advances) is H 11,010.50 lakhs
(as at 31 March 2025: H 9,390.04 lakhs).

44 . Bank guarantees issued by the Company to its customers/Government bodies for H 1,11,380.30 lakhs (as at 31 March 2025 : H

1,04,413.00 lakhs).

45 . Segment information

The Company has presented segment information in the consolidated financial statements which are presented in the same financial
report. Accordingly, in terms of Paragraph 4 of Ind AS 108 ‘Operating Segments’, no disclosures related to segments are presented in this
standalone financial statements.

Three customers contributed more than 10% of the total Company’s revenue amounting to H 1,61,318.19 lakhs (as at 31 March 2025: Three
customers amounting to H 1,68,030.09 lakhs).

46 . Revenue from contracts with customers as per Ind AS 115

(A) Disaggregated revenue information

In the following table, revenue from contracts with customers is disaggregated by primary major products and service lines Since
the Company has only one reportable business segment, no reconciliation of the disaggregated revenue is required:

(b) Rights, preferences and restrictions attached to 0.01% Non Convertible, Non Cumulative, Participating, Redeemable

Preference Shares of J 10/- each:

(i) NCPRPS shall rank for dividend in priority to the Equity Share of the Company

(ii) The holder of ; NCPRPS will be entitled to receive a participatory dividen in a financial yeari which the Company pays dividend
to its equity shareholders (Participatory) dividenv). Such participatory dividend will be payable at the same rate as the dividend
paid on the equity shares;

(iii) NCPRPS shall, in case of winding up, be entitled to rank, as regards repayment of capital and dividend to the Equity Shares and
shall also be entitled to participation in profit or assets or surplus funds, on the event of winding-up which may remain after the
entire capital has been repaid;

(iv) Holders of NCPRPS shall be paid dividend on a non-cumulative basis;

(v) NCPRPS shall not be convertible into Equity Shares;

(vi) NCPRPS shall not carry any voting rights;

(c) The reason of shortfall: The Company’s business experienced abrupt stoppage for around three years due to sectoral issues,
related to policy (shifting from feed-in-tariff regime to reverse auction based regime) and grid related delays amongst others. The
wind power sector was virtually shut down during this period. This led to mismatch of cash flows in the Company as inventories
increased due to drop in sales. The limited funds available were used to complete the pending projects and to meet the day to day
expenditures and therefore the Company could not allocate/spend the required CSR expenditure.

(d) The nature of CSR activities undertaken:NA
(Figures in brackets pertain to previous year)

54 . The Subsidiary Company (IGESL) incorporated 6 wholly-owned step down subsidiaries (hereafter referred to as SPVs) through

its subsidiary company (IGESL) , through a request for selection (Rfs) process under the Solar Energy Corporation of India (SECI)
to set up wind farm projects. The company invested funds in the SPVs through Inter-Corporate deposits and also provided bank
guarantees of H 5,578 Lakh. The management believes that once the projects are commissioned and subject to pending regulatory
matters and operational performance improvement, the company will be able to recover the funds from the SPVs and release the
bank guarantees. However, as at March 31, 2026, the SPVs' project completion date had expired and applications for extensions has
been rejected on 02.09.2024 and Bank Guarantee has been invoked and IGESL further filed the appeal before appellate authority
(CERC) and the same is disposed off vide order dated 17th November 2025 and prayer of IGESL to retain or reserve the 300
MW connectivity at Bhuj-II was rejected. The company is in the process of filing an appeal in the APTEL with condonation of
delay. In annual general meeting held on September 29, 2023 & September 29, 2023 of the Company and subsidiary company
respectively approves that if the IGESL is unable to recover the funds provided as Inter-Corporate deposits and Bank Guarantee
from the SPVs, Inox Wind Limited will bear the costs. Further during the previous year, investment in shareholding of 3 SPV has
been sold by the IGESL.

55 . The Government of India has consolidated 29 existing labour legislations into a united framework comprising four Labour Code

viz Code on wages 2019, Code on Social Security 2020, Industrial Relation Code 2020, Occupational Safety, Health and Working
Condition Code 2020 (collectively referred to as the New Labour Codes). These Codes have been made effective from November
21, 2025. All corresponding supporting rules under these codes are yet to be notified.

The Company has evaluated the Imapct of H 209.01 Lakhs on their financial statement . Further, 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.

56 . During the Quarter ended 31 March 2026, 31 December 2025 & 31 March 2025, and year ended 31 March 2026 & 31 March

2025 material pertaining to related parties amounting to H 9,283 Lakh, H 5,910 Lakh, H 8,000 Lakh, H 22,050 Lakh, & H 19,405 Lakh
respectively has been received by the Company and accounted as a purchase of stock in trade and the same has been transferred
to related parties.

57 . There have been no delays in transferring amounts required to be transferred to the Investor Education and Protection Fund.

(iii) The Company complies with the number of layers of companies in accordance with clause 87 of Section 2 of the Act read with the
Companies (Restriction on number of layers) rules 2017 during the year ended March 31, 2026 and March 31, 2025.

(iv) The Company has not invested or traded in cryptocurrency or virtual currency during the year ended March 31, 2026 and
March 31, 2025.

(v) No proceedings have been initiated on or are pending against the company for holding Benami property under the Prohibition of
Benami Property Transaction Act 1988 (as amended in 2016) (formally the Benami Transactions (Prohibition) Act, 1988 (45 of 1988)
and Rules made thereunder during the year ended March 31, 2026 and March 31, 2025.

(vi) During the year ended March 31, 2026 and March 31, 2025, the Company has not surrendered or disclosed as income any
transactions not recorded in the books of accounts in the course of tax assessments under the Income Tax Act, 1961 (such as
search or survey or any other relevant provisions of the Income Tax Act 1961).

(vii) Except below, During the year ended March 31, 2026 and March 31, 2025, the Company has not advanced or loaned or invested
funds (either borrowed funds or the share premium or kind of funds) to any other person or entities, including foreign entities
(Intermediaries) with the understanding (whether recorded in writing or otherwise) that the intermediary shall:

a. directly or indirectly land 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.

59. Business Combination

The company via its Board Meeting dated 12th June 2023 approved the scheme of amalgamation of Inox Wind Energy Limited into Inox
Wind Limited and petition is allowed by NCLT, Chandigarh vide order dated May 23 2025 and the Company is in process of implementation
the scheme/order with due statutory compliances. Pursuant to merger of Inox Wind Energy Limited {'Transferor Company') and Inox
Wind Limited ('Company' or 'Transferee Company'), as per the Scheme, the merger of Transferor Company into Company has been
accounted to comply with the accounting treatment prescribed in the Scheme in accordance with appendix C of Ind AS 103 under
common control. The share capital of Transferor Company and its investment at face value in the Transferee Company is cancelled and
the Company is required to issue 76,14,06,614 equity shares of INR 10 each fully paid-up to the shareholders of the Transferor Company.
The equity shares of the Company were listed on National Stock Exchange (NSE) and Bombay Stock Exchange (BSE).

Being a common control business combination, Ind AS 103 Business Combinations requires the Company to account for business
combination from the combination date (i.e., the date on which control has been transferred) or the earliest date presented in the financial
statements, whichever is later. Subsequent to the period end, SEBI granted the relaxation to the Company on from the applicability of
Rule 19 (2)(b) of Securities Contract (Regulation) Rule 1957 for the listing of the shares on stock exchanges.

The impact of the scheme in these Ind AS financial statements is given below:

(a) All assets, liabilities and reserves of the transferor company have been recorded in the books of account of the Company at their
existing carrying amounts and in the same form

(b) To the extent that there are inter-company loans, advances, deposits, balances or other obligations as between the transferor
Company and the Company, have been eliminated.

(c) The balance of assets and liabilities transferred from the transferor company as on April 01, 2023 are as follows:

60. Employees' stock option plan

The Company has ESOP Schemes namely "Inox Wind - Employee Stock option Scheme 2024". ("Scheme").

The shareholders of the Company approved Inox Wind- Employee Stock Option Scheme 2024” ('Scheme')" at the Extraordinary General
Meeting held on May 05, 2024 to grant a maximum of not exceeding 1% of the equity share capital of the Company to specified categories
of employees of the Company. Each option granted and vested under Scheme shall entitle the holder to acquire one equity share of face
value of H 10 each of the Company.

The Nomination and Remuneration committee ("Committee") of the Group formulated and approved "Inox Wind - Employee Stock Option
Scheme 2024 ("Scheme") at its meeting held on November 11, 2024 which is also approved by the board of director of the Company at
its meeting held on August 09, 2024. Under this scheme, the maximum number of options that can be granted to any eligible employee
during one year shall not be equal to or exceed 1% of the issued equity share capital of the Group at the time of grant. The committee
decide to grant such number of options equal to or exceeding 1% of the issued equity share capital to any eligible employee as the case
may be, subject to the separate approval of the shareholders in a general meeting.

The fair value of the share options is estimated at the grant date using the Black- Scholes option pricing model, taking into account the
terms and conditions upon which the share options were granted. However, the above performance condition is only considered in
determining the number of instruments that will ultimately vest.

a) The management has reviewed the carrying amount of inter-corporate deposits given to the subsidiary. After considering the
position of losses of the subsidiary, provision is made for impairment in the value of inter-corporate deposits.

62 . During the previous year, the Company had certain disagreements with one of its customer, its associates/affiliates for certain

pending projects due to various matters and due to covid -19 pandemic etc. After various discussions with the customer, the
company has taken back certain un-commissioned Wind Turbine Generators (WTGs) and entered into settlement dated 6th May
2024 to settle all outstanding recoverable balances and other related matters.

63 . As per RBI Guidelines, remittance against import should be completed not later than six months. As at March 31, 2026 certain party

balances of imports are outstanding for more than six months. Considering that the balances are for more than six months, the
Company is in process of payments/statutory approval, as applicable for such payments.

64 . The Ministry of Corporate Affairs (MCA) has prescribed a requirement for companies under the proviso to Rule 3(1) of the Companies

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

The Company, in respect of the financial year, has used an accounting software for maintaining books of accounts. The audit
trail (edit log) was enabled and operated throughout the year at application level for such software. However, the feature of the
recording audit trail (Audit Log) Facility was not enabled at the database layer to log any direct data changes for all the software
used for maintaining the financial information.

Further, the Company, has used payroll software for Payroll data maintenance which is operated by a third-party. The audit trail
(edit log) was enabled and operated throughout the year at application level and database level for such software. The Company
has obtained the ‘Independent Service Auditor’s Assurance Report on the Description of Controls, their Design and Operating
Effectiveness’ (Type 2 report’ issued in accordance with ISAE 3000 (Revised), Assurance Engagements Other than Audits or
Reviews of Historical Financial Information).

65 . The Previous year figures have been regrouped, wherever necessary to confirm the respective year presentation. The figures have

been rounded off to the nearest rupee and any discrepancies in any note between the total and sums of the amounts are due
to rounding off.