1. Re-organisation of the Company's Green and Grey Businesses:

The Board at its meeting held on 25^th November, 2021, had approved the re-organisation of the Company's Green (Renewable) Business and Grey (Thermal) Business for streamlining the renewable portfolio and setting up a holding structure to unlock and enhance shareholders' value. Pursuant to the same, the following actions had effectuated during the year ended 31^st March, 2022:

a) 100% of the equity investment held by JSW Future Energy Limited (JSWFEL), a wholly owned subsidiary company, in the following companies were transferred to JSW Neo Energy Limited (JSWNEL), another wholly owned subsidiary of the Company, at cost

• 1SW Renew Energy (Kar) Limited (1SWREKL), a wholly owned subsidiary of JSWFEL of ' 0.01 crore

• 1SW Renewable Energy (Dolvi) Limited (1SWREDL), a wholly owned subsidiary of JSWFEL of ' 22.10 crore

b) 100% of the equity investment held by JSW Hydro Energy Limited (JSWHEL), a wholly owned subsidiary of the Company in JSW Energy (Kutehr) Limited (JSWEKL), a wholly owned subsidiary of JSWHEL amounting to ' 789.33 crore was transferred to JSWNEL at cost.

c) 100% of the equity investment held by the Company in JSWHEL, a wholly owned subsidiary of the Company amounting to '2046.01 crore was transferred to JSWNEL at cost.

During the year ended 31^st March, 2023, the petition filed with National Company Law Tribunal (NCLT), Mumbai bench for scheme of amalgamation of JSW Future Energy Limited with JS W Neo Energy Limited (both wholly owned subsidiaries of the company) with appointed date of 1^st April, 2022, has been approved by the NCLT vide its order delivered on 25^th August, 2022. On 26^th March, 2023, the Scheme has become effective upon receipt of relevant regulatory approvals and necessary filings.

Post consummation of the aforesaid Scheme of Amalgamation, JSWNEL would house the renewable businesses.

2. Terms of conversion of unsecured perpetual securities:

These securities are perpetual in nature with no maturity or redemption and are callable only at the option of the issuer. The distributions on these securities are non-cumulative and at the rate at which dividend has been declared by the issuer on its equity shares for the respective financial year. As these securities are perpetual in nature and repayment shall rank senior to the issuers obligations to make payments / distribution in relation to its preference and equity share capital and any other securities at par with preference and equity share capital of the issuer Company and does not have any redemption obligation, these are considered to be in the nature of investment in equity instruments.

1. Terms of preference shares are as follows:

a) 10% Redeemable Non Cumulative Preference Shares of ' 10 each fully paid up invested in JSW Power Trading Company Limited are redeemable on 30^th April, 2035.

b) 10% Redeemable Non Cumulative Preference Shares of ' 10 each fully paid up invested in JSW Realty & Infrastructure Private Limited are redeemable after 15^th year from the date of allotment in 5 annual installments for the respective tranche of investment from financial year 2022-23 to 2033-34.

1. Figures in brackets relate to maximum amount outstanding during the year.

2. All the above loans have been given for business purpose only.

3. The Company has provided a shareholder loan amounting to ' 4,091.55 crore to its subsidiary, JSW Mahanadi Power Company Limited. As per the terms of the arrangement, no coupon or interest shall accrue or be payable on the loan until the exit of the secured financial creditors of the subsidiary as per the resolution plan approved by the Hon'ble National Company Law Tribunal (""NCLT"") (Refer note 35). Upon such exit, the coupon/interest rate will be determined through mutual agreement between the Company and the subsidiary.

In accordance with the requirements of Ind AS 109 - Financial Instruments, the shareholder loan has been fair valued. Consequently, an amount of ' 518.51 crore has been bifurcated from the total loan and recognized as a deemed investment in the subsidiary (Refer note 6) and subsequently ' 354.97 crore has been recognised as interest income during the year ended 31^st March, 2026 (Refer note 21).

4. The Company has provided a shareholder loan amounting to ' 962.00 crore to its subsidiary, KSK Water Infrastructure Private Limited. As per the terms of the arrangement, no coupon or interest shall accrue or be payable on the loan upto 2 years from the 4^th August,2025 i.e., the execution date of the shareholder loan agreement and the amended agreement dated 7^h January 2026 (Refer note 35). Post completion of 2 years, the coupon/interest rate will be 9% per annum till the repayment of the loan.

In accordance with the requirements of Ind AS 109 - Financial Instruments, the shareholder loan has been fair valued. Consequently, an amount of ' 152.30 crore has been bifurcated from the total loan and recognized as a deemed investment in the subsidiary (Refer note 6) and subsequently ' 47.92 crore has been recognised as interest income during the year ended 31^st March, 2026 (Refer note 21).

5. The Group has given loan to South West Mining Limited of ' 24170 crore (as at 31^st March, 2025'168.90 crore) at an interest rate of 12% p.a. repayable in one year.

6. The Resolution Plan ("Plan") submitted by the Company for Raigarh Champa Rail Infrastructure Private Limited (RCRIPL) was approved by the Committee of Creditors on November 19, 2025 and has received approval of the Hon'ble National Company Law Tribunal, Hyderabad on January 21, 2026. Pursuant to the NCLT Approval Order, the Resolution Plan has now been implemented and the acquisition of RCRIPL is complete. Accordingly, the Company holds 100% equity shares of RCRIPL and consequently, RCRIPL has become a wholly-owned subsidiary of the Company.

b) The average credit period allowed to customers is in the range of 7-45 days and interest on overdue receivables is generally levied at 10.60% to 16.80% per annum as per the terms of the agreement.

c) The Company does not have history of defaults in trade receivables. Loss allowance is estimated for disputed receivables based on assessment of each case by obtaining legal advice, where considered necessary.

d) Trade receivables include ' 59.19 crore (as at 31^st March, 2025'59.19 crore) withheld / unpaid by the customers because of tariff related disputes which are pending adjudication. The Company has, based on legal advice, and subsequent actions by the regulators in certain cases, assessed that there is a reasonable certainty about recoverability of these receivables and no provision is required. Having regard to the said assessment

d) Rights, preferences and restrictions attached to equity shares:

(i) The Company has only one class of equity shares having a par value of ' 10 each. Each holder of equity shares is entitled to one vote per share.

(ii) I n the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the Company after distribution of all preferential amount, in proportion to the shareholding.

g) Dividend:

(i) The Board of Directors in its meeting held on 15^th May, 2025 has recommended dividend of 20% (' 2 per equity share of ' 10 each) for the year ended 31^st March, 2025 and the same was approved by the shareholders at the Annual General Meeting held on 11^th July, 2025, which resulted in a cash outflow of ' 349.55 crore.

(ii) The Board of Directors in its meeting held on 11^th May, 2026 has recommended dividend of 20% (' 2 per equity share of ' 10 each) for the year ended 31^st March, 2026, subject to the approval of shareholders at the ensuing Annual Genearal Meeting.

h) Capital infusion through 'Qualified Institutions Placement' (QIP):

Pursuant to the placement of equity shares to the qualified institutions, the Company has raised ' 5,000 crore on 5^th April, 2024 by allotting 10,30,92,783 Equity Shares of ' 10 each at an Issue price of ' 485 per Equity Share at a discount of ' 25.09 per Equity Share to the floor price of ' 510.09 per Equity Share.

i) Preferential Issue of Equity Shares and Share Warrants

a) Allotment of Equity Shares

During the year ended 31 March 2026, the Company allotted 95,23,809 equity shares of face value '10 each to a promoter group entity, JTPM Metal Traders Limited "JTPM". The shares were issued at a price of '525 per share (including a securities premium of '515 per share), aggregating '500.00 crore for cash consideration.

b) Allotment of Share Warrants

During the year ended 31 March 2026, the Company allotted 4,76,19,047 "unlisted" share warrants to JTPM. Each warrant is convertible into one equity share of face value '10 each at an exercise price of '525 per share (including a premium of '515 per share).

c) Financial Terms and Forfeiture Clause

Upfront Receipt: The Company received 25% of the warrant application money, aggregating '625.00 crore, which is currently recorded in other equity as "Money received against share warrants" as of 31 March 2026.

Balance Receivable: The remaining 75%, aggregating to '1,875.00 crore, is payable in cash upon the exercise of the conversion option.

Expiry Terms: The warrants are exercisable within a period of 18 months.

(1) General reserve

The Company created a general reserve in earlier years pursuant to the provisions of the erstwhile Indian Companies Act 1956, wherein certain percentage of profits were required to be transferred to general reserve before declaring dividend. As per Companies Act, 2013, the requirement to transfer profits to general reserve is not mandatory. General reserve is a free reserve available for distribution subject to compliance with the Companies (Declaration and Payment of Dividend) Rules, 2014.

(2) Retained earnings

Retained earnings comprise balances of accumulated (undistributed) profit and loss at each year end and balances of remeasurement of net defined benefit plans, less any transfers to general reserve.

(3) Capital reserve

Reserve is primarily created on amalgamation as per statutory requirement.

(4) Securities premium

Securities premium comprises premium received on issue of shares.

(5) Equity-settled employee benefits reserve

The Company offers ESOP under which options to subscribe for the Company’s share have been granted to eligible employees. The share based payment reserve is used to recognise the value of equity settled share based payments provided as part of the ESOP scheme.

(6) Equity instrument through other comprehensive income

The fair value change of the equity instruments measured at fair value through other comprehensive income is recognised in Equity instruments through Other Comprehensive Income.

(7) Money received against share warrants

During the year ended 31 March 2026, the Company has allotted 4,76,19,047 share warrants (the "warrants") to JTPM on a preferential basis, each carrying a right exercisable by the warrant holder to subscribe to 1 equity share per warrant by way of private placement, at a price of ' 525 (including premium of ' 515) per warrant, The Company received 25% of the warrant application money, aggregating to '625.00 crore, which is currently classified under "Money received against share warrants" as of 31 March 2026 [Refer Note 14A(i)].

(a) Revenue from contract with customers:

The Company primarily generates revenue from contracts with customers for supply of power generated from power plants (from allocating the capacity of the plant under the long / medium term power purchase agreements including job work arrangements), from sale of power on short term contracts / merchant basis and from providing operations and maintenance services of third party power plants.

Revenue from capacity charges (other than from contracts classified as finance lease) under the long and medium term power supply agreements is recognised over a period of time as the capacity of the plant is made available under the terms of the contracts. Incentives and penalties for variation in availability of the capacity are recognised based on the annual capacity expected to be made available under the agreements. Electricity charges are recognised on supply of power under such power supply agreements.

Revenue from sale of power on merchant basis and under short term contracts, is recognised at point of time when power is supplied to the customers, at contracted rate.

Revenue from third party power plant operations and maintenance activity is recognised over the period of time when services under the contracts are rendered.

Revenue from mining activity is recognised when services under the contracts are rendered.

(b) Significant changes in the contract liability balance during the year:

Contract liability is the Company’s obligation to transfer goods or services to a customer for which the Company has received consideration from the customers in advance are as follows:

3] Others: a) Pledge of shares:

i) 3,158 (as at 31^st March, 2025: 3,158) number of shares held as investments in JSW Energy (Utkal) Limited with carrying amount of ' * (as at 31^st March, 2025: ' *) have been pledged with the lenders towards its borrowings.

ii) a) 49,994 (as at 31^st March, 2025: Nil) number of shares held as investments in JSW Mahanadi Power Company Limited with carrying amount of ' 0.01 crore (as at 31^st March, 2025: Nil) have been pledged with the lenders towards its borrowings. (Refer note 6)

b) In respect of land parcels admeasuring 30.73 hectares (as at 31^st March, 2025: 30.73 hectares), acquired by the Company, the claim by certain parties towards title disputes is not currently ascertainable.

Notes:

(i) Future cash flows in respect of the above matters are determinable only on receipt of judgements / decisions pending at various forums / authorities.

(ii) Third party claims where the possibility of outflow of resources embodying economic benefits is remote, and includes show cause notices, if any which have not yet converted into regulatory demands, have not been disclosed as contingent liabilities.

* Investments value is ' 31,580

ii] Other commitments:

a) The Company from time to time provides need based support to it’s subsidiaries and a joint venture entity towards capital and other requirements.

b) The Company has given letter of comfort to Bank of Baroda for credit facility availed by its joint venture Barmer Lignite Mining Company Limited (BLMCL). The financial obligation of BLMCL shall be endeavoured to be fulfilled by the company in case the same is not met by BLMCL.

Note No. 30 - Operating Lease

A) As lessor:

The Company has leased certain land admeasuring to 122.86 acres with carrying amount of ' 7.08 crore (31^st March, 2025: 122.86 acres with carrying amount of ' 7.08 crore) to related parties for the period ranging from 25 to 99 years. The agreements are renewable with mutual consent. (Refer note 4A)

Note No. 31 - Finance leases

As lessor:

The Company has identified an arrangement for power supply from its power units which are in the nature of finance lease as per the provisions of Ind AS 116 - Leases. After separating lease payments from other elements in the arrangement, the Company has recognized finance lease receivable for the said power units given under finance lease.

Note No. 33 - Employee benefits expense

1] Defined contribution plans:

Retirement Benefits in the form of Provident Fund and National Pension Scheme which are defined contribution schemes are charged to the statement of profit and loss for the period in which the contributions to the respective funds accrue as per relevant rules / statutes.

A] Provident fund:

The Company’s contribution to provident fund recognized in standalone statement of profit and loss of ' 10.65 crore (Previous year ' 6.24 crore) (Included in note 22).

B] National pension scheme:

The Company’s contribution to National Pension Scheme (NPS) recognized in standalone statement of profit and loss of ' 2.81 crore (Previous year: ' 1.81 crore) (Included in note 22).

2] Defined benefits plans:

The Company provides for gratuity to its employees in accordance with the Code on Social Security, 2020, and the Payment of Gratuity Act, 1972, as applicable. The amount of gratuity shall be payable to an employee on the termination of employment after rendering continuous service for not less than five years, or on their superannuation or resignation. For employees engaged on a fixed-term basis, gratuity is payable on a prorata basis upon completion of one year of continuous service. However, in case of death of an employee, the minimum period of five years shall not be required. The gratuity benefit is calculated based on the revised definition of wages under the Code, ensuring the wage base for calculation is at least 50% of the total remuneration. The amount of gratuity payable on retirement / termination is the employee’s last drawn basic salary per month computed proportionately for 15 days salary multiplied by the number of years of service completed. The gratuity plan is a funded plan administered by a separate fund that is legally separated from the entity and the Company makes contributions to the insurer (LIC). The Company does not fully fund the liability and maintains the funding from time to time based on estimations of expected gratuity payments.

The most recent actuarial valuation of the plan assets and the present value of the defined benefit obligation were carried out at 31^st March, 2026 by M/S K. A. Pandit Consultants S Actuaries. The present value of the defined benefit obligation, and the related current service cost and past service cost, were measured using the projected unit credit method.

Sensitivity analysis:

Significant actuarial assumptions for the determination of the defined benefit obligation are discounted rate, expected salary increase and employee turnover. The sensitivity analysis below have been determined based on reasonably possible changes of the respective assumptions occurring at the end of the reporting period, while holding all other assumptions constant. There was no change in the methods and assumptions used in preparing sensitivity analysis from prior years.

Each year an asset-liability-matching study is performed in which the consequences of the strategic investment policies are analysed in terms of risk and return profiles.

The Company expects to contribute ' 11.79 crore (previous year ' 5.19 crore) to its gratuity plan for the next year. The weighted average duration of the plan is 6 years (previous year 7 years).

B. Compensated absences:

The Company has a policy on compensated absences with provisions of accumulation of contingency leave and encashment for priviledged leave by the employees during employment or on separation from the Company due to death, retirement or resignation. The expected cost of contingency leave is determined by actuarial valuation performed by an independent actuary at the balance sheet date using projected unit credit method.

C. Long service award:

The Company has a policy to recognise the long service rendered by employees and celebrate their long association with the Group. This scheme is called- Long Association of Motivation, Harmony S Excitement (LAMHE). The award is paid at milestone service completion years of 10, 15, 20 and 25 years.

D. Employee share based payment plan:

Employees Stock Ownership Plan - 2016 (ESOP 2016)

The Company has offered equity options under ESOP 2016 to the permanent employees of the Company who have been working in India or outside India, including whole-time director, in the identified grades of L16 and above except any employee who is a promoter or belongs to the promoter group or a director who either by himself or through his relatives or through any body corporate, directly or indirectly, holds more than 10% of the outstanding equity shares of the Company and Independent directors, Nominee Directors and NonExecutive Directors.

The grant is determined after having regard to various factors and criteria specified in ESOP 2016. The exercise price is at a discount of 20% to the closing market price on the previous trading day of the grant date at the Exchange having highest trading volume or any other price as may be determined by the Compensation Committee but at least equal to the face value of the shares. The option shall not be transferable and can be exercised only by the employees of the Company.

Vesting of the options granted under the ESOP 2016 shall be at least one year from the date of Grant. 50% of the granted options would vest on the date following 3 years from the date of respective grant and the remaining 50% on the date following 4 years from the date of respective grant.

JSWEL Employees Stock Ownership Plan - 2021 (ESOP 2021)

The Company has offered equity options under ESOP 2021 to the permanent employees, including whole-time director, of the Company who have been working in India or outside India, in the grades of (i) L16 and above, and (ii) select employees in the grade L-11 to L-15 based on last 3 (three) years performance; and in each case, as may be determined based on the eligibility criteria, or any other employee as may be determined by the compensation committee from time to time, except any employee who is a promoter or belongs to the promoter group or a director who either by himself or through his relatives or through any body corporate, directly or indirectly, holds more than 10% of the outstanding equity shares of the Company and Independent directors, Nominee Directors and Non-Executive Directors.

The grant is determined after having regard to various factors and criteria specified in ESOP 2021. The exercise price is '10 or any other price as may be determined by the Compensation Committee. The option shall not be transferable and can be exercised only by the employees of the Company.

Vesting of the options granted under the ESOP 2021 shall be at least one year from the date of Grant. 25% of the granted options would vest on the date following 1 year from the date of respective grant, 25% of the granted options would vest on the date following 2 years from the date of respective grant and the remaining 50% on the date following 3 years from the date of respective grant.

JSWEL Employees Stock Ownership Plan - Samruddhi 2021 (ESOP Samruddhi 2021)

The Company has offered equity options under ESOP Samruddhi 2021 to the permanent employees, including whole-time director, of the Company who have been working in India or outside India, in the grades of L-1 to L-15 (excluding the employees granted options under ESOP 2021), except any employee who is a promoter or belongs to the promoter group or a director who either by himself or through his relatives or through any body corporate, directly or indirectly, holds more than 10% of the outstanding equity shares of the Company and Independent directors, Nominee Directors and Non-Executive Directors.

The grant is determined after having regard to various factors and criteria specified in ESOP Samruddhi 2021. The exercise price is '10 or any other price as may be determined by the Compensation Committee. The option shall not be transferable and can be exercised only by the employees of the Company.

Vesting of the options granted under the ESOP Samruddhi 2021 shall be at least one year from the date of Grant. 25% of the granted options would vest on the date following 2 years from the date of respective grant, 25% of the granted options would vest on the date following 3 years from the date of respective grant and the remaining 50% on the date following 4 years from the date of respective grant.

Note No. 35 - Business acquisition

1. KSK Mahanadi Power Company Limited

The Company has completed the acquisition of JSW Mahanadi Power Company Limited ("JMPCL") (formerly KSK Mahanadi Power Company Limited) on March 06, 2025 pursuant to National Company Law Tribunal ("NCLT") Approval Order and Competition Commission of India ("CCI") Approval Order dated Februrary 13, 2025 and March 04, 2025 respectively. Accordingly, the Company holds 74% equity shares of JSW Mahanadi Power Company Limited and the financial creditors collectively hold the balance 26%, as per the terms of the Resolution Plan, wherein the financial creditors ("FC") have a put option and the Company has a call option for the 26% stake held by FC, excercisable anytime from end of first year from acquisition date of JMPCL till end of 5 years KMPCL owns a 3600 MW (600 MW x 6 units) thermal power plant located at Chhattisgarh. Out of the total capacity, 1800 MW is operational and balance 1800 MW is under construction.

2. KSK Water Infrastructures Private Limited

During the year ended March 31, 2026, the Company acquired control over KSK Water Infrastructures Private Limited ("KWIPL") pursuant to the approval of the settlement plan by the National Company Law Tribunal ("NCLT") vide order dated July 23, 2025, with the settlement plan becoming effective on August 4, 2025. Prior to the settlement, Prudent Asset Reconstruction Company Limited ("Prudent ARC") held 51% of the equity share capital of KWIPL, with the balance 49% held by JSW Mahanadi Power Company Limited ("JMPCL") and accounted for as an associate. Upon the settlement plan becoming effective, JSW Energy Limited acquired the 51% equity stake held by Prudent ARC for a consideration of INR 1. Post acquisition, the Company holds 51% equity interest in KWIPL directly and the remaining 49% indirectly through its subsidiary, JMPCL, thereby exercising control over KWIPL.

KWIPL was established as a special purpose vehicle ("SPV") promoted by the KSK Group, primarily to develop, operate, and maintain water infrastructure projects. Its core business involves the construction, development, operation, and maintenance of water supply systems, including water treatment facilities, pumping stations, and underground pipelines. Notably, KWIPL was responsible for transporting water from the Mahanadi River to the JSW Mahanadi Power Company Limited’s power plant through a buried pipeline network spanning multiple districts in Chhattisgarh.

3. Raigarh Champa Rail Infrastructure Private Limited

During the year ended March 31, 2026, the Company completed the acquisition of Raigarh Champa Rail Infrastructure Private Limited ("RCRIPL") pursuant to the Corporate Insolvency Resolution Process under the Insolvency and Bankruptcy Code, 2016, on March 4, 2026. RCRIPL provides railway infrastructure services to JSW Mahanadi Power Company Limited ("JMPCL"), which operates a 3,600 MW (6 x 600 MW) thermal power plant in Chhattisgarh. Of the total capacity of JMPCL 1,800 MW is currently operational, with the balance under construction.

The acquisition of RCRIPL enables enhanced operational control and efficiency in the management of railway infrastructure services for the entire 3,600 MW capacity of the JMPCL plant, thereby improving reliability and reducing dependency-related risks associated with this critical input. With this acquisition, together with the earlier acquisition of KSK Water Infrastructures Private Limited, JMPCL has secured access to critical infrastructure resources required for its full 3,600 MW operating capacity.

B. Risk Management Strategies

Financial risk management objectives

The Company’s corporate treasury function provides services to the business, co-ordinates access to domestic and international financial markets, monitors and manages the financial risks relating to the operations of the company. These risks include market risk (including currency risk, interest rate risk and other price risk), credit risk and liquidity risk.

The Company seeks to minimise the effects of these risks by using derivative financial instruments to hedge risk exposures, wherever required. The use of financial derivatives is governed by the Company’s policies approved by the board of directors, which provide written principles on foreign exchange and commodity price risk management, the use of financial derivatives and non-derivative financial instruments, and the investment of excess liquidity. Compliance with policies and exposure limits is reviewed by the internal auditors on a continuous basis. The company does not enter into or trade financial instruments, including derivative financial instruments, for speculative purposes.

I. Foreign currency risk management

The Company undertakes transactions denominated in foreign currencies; consequently, exposures to exchange rate fluctuations arise. Exchange rate exposures are managed within approved policy parameters utilizing forward foreign exchange contracts as suitable.

Foreign currency risk sensitivity

The following table details the Company’s sensitivity to a 5% appreciation and depreciation in the INR against the relevant foreign currencies net of hedge accounting impact. The sensitivity analysis includes only outstanding foreign currency denominated monetary items and adjusts their translation at the year-end for a 5% change in foreign currency rates, with all other variables held constant. A positive number below indicates an increase in profit or equity where INR strengthens 5% against the relevant currency. For a 5% weakening of INR against the relevant currency, there would be a comparable impact on profit or equity, and the balances below would be negative.

II. Interest rate risk management

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Company’s exposure to the risk of changes in market interest rates relates primarily to the Company’s long-term debt obligations with fixed and floating interest rates. The risk is managed by the company by maintaining an appropriate mix between fixed and floating rate borrowing and through re-financing of the various term debts at regular intervals to optimise on interest cost.

The Company to manage the interest rate risk arising from its fixed-rate borrowings, has entered into interest rate swap contracts to convert fixed interest obligations into floating rates.The use of interest rate swap contracts is governed by the Company’s strategy approved by the board of directors, which provide principles on the use of such contracts consistent with the Company’s interest risk management policy.

III. Credit risk management

Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in financial loss to the Company. The Company has adopted a policy of only dealing with creditworthy counterparties as a means of mitigating the risk of financial loss from defaults. The Company’s exposure and the credit ratings of its counterparties are continuously monitored.

The state electricity distribution companies (Government companies) and related parties are the major customers of the Company and accordingly, credit risk is minimal.

Revenue from operations includes revenue aggregating to '2767.65 crore (previous year '3,089.88 crore) from three (previous year: three) major customers having more than 10% of total revenue from operations of the Company.

Loans and investment in debt securities:

The Company’s centralised treasury function manages the financial risks relating to the business. The treasury function focusses on capital protection, liquidity and yield maximisation. Investments of surplus funds are made only in approved counterparties within credit limits assigned for each of the counterparty. Counterparty credit limits are reviewed and approved by the Finance Committee of the Company. The limits are set to minimise the concentration of risks and therefore mitigate the financial loss through counter party’s potential failure to make payments.

Cash and cash equivalents, derivatives and financial guarantees:

Credit risks from balances with banks and financial institutions are managed in accordance with the Company policy. For derivative and financial instruments, the Company attempts to limit the credit risk by only dealing with reputable banks and financial institutions having high credit-ratings assigned by creditrating agencies.

I n addition, the Company is exposed to credit risk in relation to financial guarantees given to banks provided by the Company. The Company’s maximum exposure in this respect is the maximum amount the Company could have to pay if the guarantee is called on. No amount has been recognised in the financial position as financial liabilities. (Refer note 38)

IV. Liquidity risk management

Ultimate responsibility for liquidity risk management rests with the Board of Directors, which has established an appropriate liquidity risk management framework for the management of the Company’s short-term, medium-term, 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 liabilities.

The table below summarizes the impact of increases / decreases in market price of the Company’s quoted equity investments for the corresponding period. The analysis is based on the assumption that the share price in market will on an average increase or decrease by 15% (Previous year 15%) with all other variables held constant.

The Company has hypothecated part of its trade receivables, unbilled revenue, loans, short term investments and cash and cash equivalents in order to fulfil certain collateral requirements for the banking facilities extended to the Company. There is obligation to release the hypothecation on these securities to the Company once these banking facilities are surrendered. (Refer note 15)

The amount of guarantees given on behalf of other parties included in Note 29 represents the maximum amount the Company could be forced to settle for the full guaranteed amount. Based on the expectation at the end of the reporting period, the Company considers that it is more likely that such an amount will not be payable under the arrangement.

V. Price Risk

The Company’s exposure to equity price risk arises from investments held by the Company and classified in the balance sheet at fair value through OCI.

VI. Fuel supply risk management

The Company is currently using imported coal from countries like Indonesia, South Africa, Russia, and Australia among others. The interruption in the supply of coal due to regulatory changes, weather conditions in the sourcing country, strike by mine workers and closure of mines due to force majeure may impact the availability and / or cost of coal.

The Company regularly broadens the sources (countries / vendors) and maintains optimum fuel mix and stock level.

Further, the increased long term power tie ups through job work arrangements wherein the coal is being supplied by the power procurer. Accordingly, the coal requirement for operations has also reduced and thereby the fuel supply risk is also minimized.

Note No. 38 - Capital management

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

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

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

Note no. 40 - Other statutory information

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

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

iii) The Company has not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign entities (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

iv) 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.

v) The Company does not have any such transaction which is not recorded in the books of accounts that has been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961. (such as, search or survey or any other relevant provisions of the Income Tax Act, 1961)

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

vii) The Company is not declared wilful defaulter by any bank or financials institution or lender during the year.

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

ix) Quarterly returns or statements of current assets filed by the Company with banks or financial institutions are in agreement with the books of accounts.

x) The Company has used the borrowings from banks and financial institutions for the specific purpose for which it was obtained.

xi) The title deeds of all the immovable properties, (other than immovable properties where the Company is the lessee and the lease agreements are duly executed in favour of the Company) disclosed in the financial statements included in property, plant and equipment and capital work-in progress are held in the name of the Company as at the balance sheet date.

Note No. 42 - Operating segment

The Company publishes the standalone financial statements along with the consolidated financial statements. In accordance with the Ind AS 108, 'Operating Segments’ the company has disclosed the segment information in the consolidated financial statements and therefore no seperate disclosure on segment information is given in the standalone financial statements for the year ended 31^st March, 2026.

b) Non-current assets

All non - current assets (other than financial instruments and deferred tax assets) of the Company are located in India except non-current assets aggregating ' 91.93 crore as at 31^st March, 2026 (as at 31^st March, 2025 ' 83.11 crore) which are located outside India.

Note No. 43

Previous year’s figures have been regrouped / reclassified wherever necessary.