ix. Provisions & Contingent Liability:

All the provisions are recognized as per Ind AS 37.
Provisions (including mine closure) are recognized
when the Company has a present obligation (legal or
constructive) as a result of a past event, it is probable
that an outflow of economic benefits will be required to
settle the obligation and a reliable estimate can be made
of the amount of the obligation.

The amount recognized 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.

When some or all of the economic benefits required to
settle a provision are expected to be recovered from a
third party, the receivable is recognized as an asset, if it

is virtually certain that reimbursement will be received
and the amount of the receivable can be measured
reliably.

Provisions for onerous contracts are recognized when the
expected benefits to be derived by the Company from a
contract are lower than the unavoidable costs of meeting
the future obligations under the contract. Provisions for
onerous contracts are measured at the present value of
lower of the expected net cost of fulfilling the contract
and the expected cost of terminating the contract.

Contingent liabilities are possible obligations that arises
from past events, the existence of which would be
confirmed only by the occurrence or non-occurrence of
one or more uncertain future events not wholly within
the control of the company or a present obligation for
which payment is not probable or the amount cannot be
measured reliably. These are disclosed in the financial
statements unless the possibility of any outflow in
settlement is remote.

x. Revenue recognition

Revenue from contracts with customers is recognized
when control of the goods or services is transferred to the
customer at an amount that reflects the consideration
which is net off discounts and price concessions to
which the Company expects to be entitled in exchange
for those goods or services.

If the consideration in a contract includes a variable
amount, the Company estimates the amount of
consideration to which it will be entitled in exchange
for transferring the goods to the customer. The variable
consideration is estimated at contract inception and
constrained until it is highly probable that a significant
revenue reversal in the amount of cumulative revenue
recognised will not occur when the associated uncertainty
with the variable consideration is subsequently resolved.

All revenue from sale of goods is recognised at a point
in time. Revenue from wind power and services is
recognised over time.

The timing of transfer of control in case of sale of goods
varies depending upon individual transfer terms of the
contract.

Export sales: In Export sales control passes to the
customer on the date of Bill of Lading.

Domestic sales: Control passes to the customer on
the date of delivery which is generally the forwarding
note (rail dispatches)/ lorry receipt/ delivery challan.

However, in case of spot auction under electronic mode,
control passes to the customer on conclusion of the
auction and receipt of money.

Obsolete stores & scrap: Control passes to the customer
on the date of realisation.

Contract asset:

A contract asset is the right to consideration in exchange
for goods or services transferred to the customer. If the
Company performs by transferring goods or services to
a customer before the customer pays consideration or
before payment is due, a contract asset is recognised for
the earned consideration that is conditional.

Trade receivables

A receivable represents the Company's right to an
amount of consideration that is unconditional (i.e., only
the passage of time is required before payment of the
consideration is due).

Contract liability

A contract liability is the obligation to transfer goods
or services to a customer for which the Company has
received consideration (or an amount of consideration is
due) from the customer. If a customer pays consideration
before the Company transfers goods or services to the
customer, a contract liability is recognised when the
payment is made or the payment is due (whichever is
earlier). Contract liabilities are recognised as revenue
when the Company performs under the contract.

xi. Finance income and expense

Finance income consists of interest income on funds
invested, dividend income and gains on the disposal
of Fair value through profit and loss account financial
assets. Interest income is recognized as it accrues in the
statement of profit and loss, using the effective interest
method.

Dividend income is recognized in the statement of profit
and loss on the date the Company's right to receive
payment is established.

Finance expenses consist of interest expense on loans
and borrowings. Borrowing costs are recognized in the
statement of profit and loss using the effective interest
method.

Foreign currency gains and losses are reported on a net
basis. This includes changes in the fair value of foreign
exchange derivative instruments, which are accounted
at fair value through profit or loss.

xii. Income tax

Tax comprises current and deferred tax. Income tax
expense is recognized in the statement of profit and loss
except to the extent it relates to items directly recognized
in equity or in other comprehensive income.

a) Current income tax

Current income tax for the current and prior periods
are measured at the amount expected to be
recovered from or paid to the taxation authorities
based on the taxable income for the period. The tax
rates and tax laws used to compute the current tax
amount are those that are enacted or substantively
enacted by the reporting date and applicable for
the period. The Company offsets current tax assets
and current tax liabilities, where it has a legally
enforceable right to set off the recognized amounts
and where it intends either to settle on a net basis
or to realize the asset and liability simultaneously.

b) Deferred income tax

Deferred income tax is recognized using the balance
sheet approach. Deferred income tax assets and
liabilities are recognized for deductible and taxable
temporary differences arising between the tax base
of assets and liabilities and their carrying amount
in financial statements, except when the deferred
income tax arises from the initial recognition of
goodwill or an asset or liability in a transaction that
is not a business combination and affects neither
accounting nor taxable profits or loss at the time
of the transaction. Deferred income tax asset are
recognized to the extent that it is probable that
taxable profit will be available against which the
deductible temporary differences, and the carry
forward of unused tax credits and unused tax losses
can be utilized. Deferred income tax liabilities are
recognized for all taxable temporary differences.
The carrying amount of deferred income tax assets
is reviewed at each reporting date and reduced
to the extent that it is no longer probable that
sufficient taxable profit will be available to allow
all or part of the deferred income tax asset to be
utilized. Deferred income tax assets and liabilities
are measured at the tax rates that are expected to
apply in the period when the asset is realized or the
liability is settled, based on tax rates (and tax laws)
that have been enacted or substantively enacted at
the reporting date.

xiii. Earnings per share (EPS)

Basic earnings per share is computed using the weighted

average number of equity shares outstanding during the
year.

Diluted EPS is computed by dividing the net profit after
tax by the weighted average number of equity shares
considered for deriving basic EPS and also weighted
average number of equity shares that could have been
issued upon conversion of all dilutive potential equity
shares. Dilutive potential equity shares are deemed
converted as of the beginning of the year, unless issued
at a later date. Dilutive potential equity shares are
determined independently for each year presented. The
number of equity shares and potentially dilutive equity
shares are adjusted for bonus shares, as appropriate.

xiv. Borrowing costs

Borrowings costs directly attributable to acquisition
or construction of an asset that necessarily takes a
substantial period of time to get ready for its intended
use or sale are capitalised as part of the cost of the asset.
All other borrowing costs are expensed in the period in
which it occur. Borrowing costs consists of interest and
other costs that an entity incurs in connection with the
borrowing of funds.

xv. Government Grants

Grants from the government are recognised when there
is reasonable assurance that:(i) the Company will comply
with the conditions attached to them; and (ii) the grant
will be received. Government grants related to revenue
are recognised on a systematic basis in the statement
of profit and loss over the periods necessary to match
them with the related costs which they are intended to
compensate. Such grants are deducted in reporting the
related expense. When the grant relates to an asset, it
is recognized as income over the expected useful life of
the asset. Where the Company receives non-monetary
grants, the asset is accounted for on the basis of its
acquisition cost. In case a non-monetary asset is given
free of cost it is recognised at a fair value. When loan or
similar assistance are provided by government or related
institutions, with an interest rate below the current
applicable market rate, the effect of this favorable
interest is recognized as government grant. The loan
or assistance is initially recognized and measured at
fair value and the government grant is measured as the
difference between the initial carrying value of the loan
and the proceeds received.

Grant related to income are presented as part of profit or
loss, as a deduction to the related expenses.

xvi. Lease

a. Lease liability is initially recognised and measured
at an amount equal to the present value of minimum
lease payments during the lease term that are not
yet paid.

b. Rig ht of u se asset is recognised and m easu red at
cost, consisting of initial measurement of lease
liability plus any lease payments made to the
lessor at or before the commencement date less
any lease incentives received, initial estimate of
the restoration costs and any initial direct costs
incurred by the lessee.

c. The lease liability is measured in subsequent
periods using the effective interest rate method.
The right-of-use asset is depreciated over the lease
term.

d. The following leases are fully charged to expense:

i) Leases for which the underlying asset value is
' 20 Lakhs or less

ii) Short term leases of 12 months or less

xvii. Exploration and Evaluation

Exploration and evaluation expenditure comprise costs
that are directly attributable to:

- researching and analysing existing exploration
data;

- conducting geological studies, exploratory drilling
and sampling;

- examining and testing extraction and treatment
methods; and/or

- compiling pre-feasibility and feasibility studies.

Exploration expenditure relates to the initial search for
deposits with economic potential. Evaluation expenditure
relates to a detailed assessment of deposits or other
projects that have been identified as having economic
potential.

All evaluation and exploration expenses till high degree
of confidence is achieved are expensed. Evaluation
expenditure are capitalised as Intangible assets when
there is a high degree of confidence that the Company
will determine that a project is commercially viable, that
is the project will provide a satisfactory return relative
to its perceived risks, and therefore it is considered
probable that future economic benefits will flow to the
Company.

The carrying values of capitalized evaluation expenditure
are reviewed for impairment every year by management.

xviii Stripping cost

Development stripping cost:

Overburden and other mine waste material removed
during the initial development of a mine in order to
access mineral deposit are capitalized as Intangible
Asset. Amortization of the same is done based on the life
estimated by the management.

Production stripping cost:

During the Production phase, the stripping activity cost
is charged to revenue to the extent the benefit from the
stripping activity is realized in the form of inventory
produced.

To the extent the benefit is improved access to ore, the
entity shall recognise these costs as a non-current asset
ie Stripping Activity Asset, if and only if all the following
conditions are met:

a) It is probable that the future economic benefits
associated with the stripping activity will be realized

b) The component of the ore body for which access
has been improved can be identified and

c) The costs relating to the stripping activity associated
with the improved access can be reliably measured.

To the extent the current period stripping ratio exceeds
the planned stripping ratio as per mine plan, shall be
considered as "Stripping Activity Asset'

The "Stripping Activity Asset" is subsequently
depreciated on a unit of production basis over the life of
the identified component of the ore body that become
more accessible as a result of the stripping activity and
is then stated at cost less accumulated depreciation and
impairment loss, if any.

xix. Prepaid Expenses

Expenses are accounted under prepaid expenses only
when the amount relating to the unexpired period
exceeds rupees Two crore in each case.

xx. Restatement of earliest prior period financials on
material error/omissions

The value of error and omissions is construed to be
material for restating the opening balances of assets
and liabilities and equity for the earliest prior period
presented if the amount in each case of earlier period
income/expenses exceeds 1.00% of the previous year
turnover of the company.

Note 2.2 : RIGHT-OF USE ASSETS (Contd..)

Additional notes to 2.1, 2.2, 2.4 and 2.5 : PPE (Property Plant and Equipment), Right of Use Assets,

Intangible Assets and Intangible Assets under Development.

1. Lease hold land measuring 3021.35 sq.mtrs. (previous year 3021.35 sq.mtrs.) is taken from Vizag Port Trust Authorities for

construction of Regional Office building for a period of 30 years i.e. up to 01.01.2044. Action is on hand to execute the lease deed.

2. Formal agreements / Transfer deeds remain to be executed in respect of the following:

(a) Renewal of Mining Leases at Deposit 10 (Float Ore).

(b) Lease deeds in respect of parts of land for township at Bacheli Complex, Kirandul Complex and Panna Project.

(c) Mining lease to the extent of 33.58 hectares (Mining area) and 19.42 hectares (Plant area) of Silica Sand Plant near Lalapur
(Allahabad).

(d) Provisional allotment letters were issued for the land allotted by M/s APIIC at Industrial park, Paloncha to the extent of 13.43
acres. However, on physical survey found only 11.35 acres of land. No effect is given in books, pending confirmation from M/s
APIIC.

3. Land under CBA Act includes the following:

(a) The Company has acquired rights over land measuring 1,377.57 acres through notifications issued under the provisions of the
Coal Bearing Areas (Acquisition and Development) Act ("CBA Act"). Accordingly, the rights over such land have vested with
the Company. Payment of compensation to the affected landowners, including amounts payable under the Rehabilitation &
Resettlement (R&R) Plan, and transfer of title deeds in the name of the Company are currently under process. Based on the
legal opinion obtained by the Company confirming vesting of rights under the CBA Act, the land has been recognised under
Property, Plant and Equipment (PPE) pending completion of the registration formalities.

(*) Capital Advances includes an amount of ' NIL.(P.Y ' 333.56 crore) towards Tokisud Coal Block and payment of '436.75 crore (P.Y.
' 170.02 crore) towards Rohne Coal Block. (Refer Note -2.51.9)

(**) Includes

a) ' 600 crore (PY ' 600 crore), paid to South Bastar Dantewada under protest against the demand notice for Common Cause

b) ' 144.62 crore (PY ' 144.62 crore), paid to Divisional Forest Officer, Dantewada under protest against the demand notice for Forest
Permit Fee

c) ' 139.77 crore (PY ' 139.77 crore), paid to Dy. Conservator of Forest, Bellary under protest based on the interim judgement of Hon'ble
Hight Court of Karnataka towards Forest Development Tax

d) ' 124.77 crore (PY ' 124.77 crore), recovered by Monitoring Committee against sale of DIOM LG Fines during the year 2011-12 to 2017¬
18, same is contested in Mines Tribunal

e) ' 51.14 crore (PY ' NIL), paid towards differential Royalty, DMF, NMETD & Addl. Royalty, Donimalai. Same is contested

f) ' 64.74 crore (PY ' 50.56 crore), paid towards various demand notices from GST & others and contested

Addl. Notes :

1) No new shares were issued, during the current year

2) During the previous year, pursuant to the approval of Share Holders in EGM dt. December 12, 2024, Company had issued Bonus
Equity Shares in the ration of 2:1. Total of 586,12,11,700 equity shares were alloted to eligible share holders on the record date (ie.,
December 27, 2024) as bonus shares by capitalizing Capital Redemption Reserve and General Reserve

3) Terms/Rights attached to equity shares :

- The company has only one class of equity shares having par value of Re.1/- each and each holder of equity shares is entitled
to one vote per share.

- 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 to the no. of equity shares held"

4) The details of shares in the company held by each shareholder holding more than 5% shares:

2.47.6 Foreign Exchange gain / (loss) - net

The amount of exchange differences (net) credited to statement of profit and loss account is ' 9.51 crore (PY ' 2.80 crore) and included
in Note No. 2.34 - other income

The Company's pending litigations comprise claims against the company and proceedings pending with Tax/Statutory/Government
Authorities. After review of all its pending litigations and proceedings, the company has made adequate provisions wherever required
and disclosed under Contingent liabilities wherever applicable, in the financial statements. The Company does not expect the outcome
of these litigations/proceedings to have a material impact on its financial position.

Bank Guarantee submitted on behalf of NMDC-CMDC Limited (NCL):

Company has submitted Performance Bank Guarantee (PBG) of ' 504.23 crore (PY ' 504.23 crore) on behalf of NCL (JV Company) for
obtaining mining lease of Deposit 13 at Kirandul, Chhattisgarh. The Ministry of Mines vide its order dated September 22,2025 relaxed
the operation of Section 4A(4) of the MMDR Act up to September 21, 2026, thereby providing extended time for the operationalization
of the project in Deposit 13.

Stage-I Forest Clearance in respect of Deposit-13 is awaited from the Ministry of Environment, Forest and Climate Change (MoEFCC),
New Delhi. NCL is continuously pursuing for the clearances. Considering the CMDC Ltd state government enterprise being the partner
of JV, no adverse situation at JV level is expected. Hence, the PBG amount of ' 504.23 crore is considered in contingent liability above
at 2.48.A 1.2

1.3 : Brief description of major contingent liabilities:

1.3.1 Tax on Mineral Rights and Mineral Bearing Land, Karnataka:

The Karnataka Legislature passed the Karnataka (Mineral Rights and Mineral Bearing Land) Tax Bill, 2024 in December 2024.
As of the reporting date, the Bill is pending enactment, awaiting the assent of the Hon'ble President of India. Based on the legal
opinion obtained by the Company, since, the Hon'ble Governor of Karnataka has referred the Bill for Presidential assent along with
reservations on the legality of the said bill, it cannot be treated as law unless and until such assent is received.

The Bill, in its present form, proposes retrospective applicability of tax on mineral rights and mineral-bearing lands. Should it be
enacted as currently drafted, the Company may be liable to pay tax amounting to approximately '15,481.72 crore (PY '13,975.07
crore), as on the reporting date. However, considering the pending legislative process, the reservations of the Governor, and the
ongoing stakeholder discussions, this amount has been considered as contingent liability (refer 2.48.A 1.1a).

Further, as per the terms of the Long-Term Agreements and the Auction Notices, any future imposition of statutory duties, levies, or
taxes is contractually recoverable from customers/bidders. Upon enactment of the Bill, the Company will assess the enforceability
of such recourse provisions and take appropriate legal action to recover the applicable amounts from concerned parties.

1.3.2 Common Cause notice of the District Collector, Dantewada:

The Company received Show Cause Notices dated July 31, 2018, from the District Collector, South Bastar, Dantewada, demanding
'7,241.35 crores as compensation, based on the Hon'ble Supreme Court's judgment in the Common Cause case (W.P. (C) No.
114 of 2014) related to iron ore mines in Odisha. NMDC has been contesting the applicability of this judgment to its operations in
Chhattisgarh.

Revised Show Cause Notices were issued on September 26, 2019, reducing the demand to '1,623.44 crores. Subsequently, demand
notices dated November 15, 2019, were issued, directing NMDC to deposit the amount ('1,131.97 crores for Bacheli and '491.47
crores for Kirandul) within 15 days. Considering that the mining leases of the Company in the State of Chhattisgarh were due for
renewal from March 31, 2020, the Company deposited '600 crores under protest and filed a writ petition before the Hon'ble High
Court of Bilaspur and a revision application before the Mines Tribunal, Ministry of Mines, Government of India, seeking to set aside
the demand.

The High Court, on February 19, 2020, directed no coercive action till March 12, 2020, though hearings were delayed due to the
COVID-19 pandemic. Matter was last listed on September 24, 2025, however, based on the prayer of learned counsel of the parties,
the matter was adjourned and will be listed in due course.

The Mines Tribunal heard the matter on various dates, including March 9, 2022; June 28, 2023; September 13, 2023; January 10,
2024 and June 21, 2024. NMDC obtained the State Government's response on October 23, 2023, and filed its rejoinder on August
2, 2024. Matter was last listed on November 13, 2025, but hearing could not take place and adjourned. The matter is pending and
will be listed in due course.

Pending final adjudication, the '600 crores paid under protest is disclosed under "Other Non-Current Assets," and the '1,623.44
crores demand is considered as "Contingent Liabilities" (refer 2.48.A 1.1b).

1.3.3 Penalty against Dispatch of Mineral without Railway Transit Pass:

The Company has received a show-cause notice dated August 29, 2024 from the District Collector, South Bastar, Dantewada,
alleging mineral dispatches for the period from 01.04.2024 to 25.08.2024 without timely Railway Transit Passes (RTP), resulting
in a penalty of ' 1,620.50 crores (PY ' 1,620.50 crores). As the Company pays royalty in advance, there is no resultant loss to the
exchequer.

Challenging this Notice, the Company has filed Writ Petition No. 4747/2024 in the Hon'ble High Court of Chhattisgarh at Bilaspur.
The matter was last listed on February 27, 2025 and stands adjourned. Since the above matter is sub-judice, the penalty amount of
' 1,620.50 crores on iron ore dispatches for the period from 01.04.2024 to 25.08.2024 has been considered as "Contingent Liabilities"
(refer 2.48.A 1.1c).

1.3.4 Forest Permit Fee at Bailadila Sector:

The State Government of Chhattisgarh, through a notification dated June 14, 2002, imposed a transit permit fee of ' 7 per ton.
Based on this, demand notices dated November 23, 2012, amounting to ' 144.62 crore (' 79.52 crore for Bacheli and ' 65.10 crore
for Kirandul) were issued by the Divisional Forest Officer, Dantewada, for dispatches made during the period from June 14, 2002 to
October 31, 2012.

The Company has challenged the demand before the Hon'ble High Court of Chhattisgarh, contesting the retrospective levy and
citing that transit passes were neither issued by the Forest Department nor demanded at the time of actual transit. The matter was
last listed on April 23, 2026 and adjourned.

As per the Long-Term Agreements with customers, the transit fee is contractually recoverable from them. However, to ensure
uninterrupted operations, the Company paid ' 144.62 crore under protest (' 48 crore in December 2022 and ' 96.62 crore in
February 2023).

Based on legal opinion, the amount has been recognised as recoverable in the books. Since the matter is sub judice, the same is
also disclosed as a contingent liability (refer 2.48.A 1.1d).

1.3.5 Disputed claims under ¹ Karnataka Forest Act:

The Government of Karnataka introduced Forest Development Tax (FDT) at 12% on the sale value of iron ore, effective from August
27, 2008. Company challenged the levy before the Hon'ble High Court of Karnataka, which passed an interim order directing
payment of 50% of the FDT—25% in cash and 25% by way of Bank Guarantee.

Pursuant to this, the Department issued a demand for ' 121.84 crore (25% of 12%) and interest of ' 17.93 crore for delayed payment.
Company complied by paying ' 139.77 crore in cash and providing a Bank Guarantee for an equivalent amount.

On December 3, 2015, the Hon'ble High Court of Karnataka quashed the FDT levy by Govt. of Karntaka, and directed the refund of
the amounts collected. Company lodged refund claims accordingly. However, the Government of Karnataka filed a Special Leave
Petition before the Hon'ble Supreme Court of India, which has admitted the case and stayed the refund. The matter was last listed
on April 29, 2026 and adjourned.

The total liability stands at ' 523.23 crore (FDT of ' 487.38 crore and interest of ' 35.85 crore). Of this, NMDC has recovered '
253.99 crore (' 150.28 crore in cash and ' 103.71 crore in Bank Guarantees) from customers. The balance amount of ' 269.23 crore,
being recoverable from customers, is disclosed as follows:

1.3.6 Amount recovered by Monitoring Committee:

Monitoring Committee has recovered an amount of '124.77 crore against the sale of DIOM LG fines during the year 2011-12 to 2017¬
18 which has been protested by the Company and filed Revision Application with Mines Tribunal on 08.07.2022. The matter was
last listed on November 13, 2025 and adjourned. This has been shown as Amount paid under protest and the same is included in
contingent liability under disputed claims at 2.48.A 1.1f.

1.3.7 GST & Service Tax (includes):

a) Differential GST on Royalty charges including DMF and NMET

Based on the Advance ruling given under section 97(2) of CGST Act,2017 read with Section 98 of CGST Act,2017, tax at the
rate of 5% has been paid for the period from 01.07.2017 to 31.12.2018 in respect of licensing services for right to use minerals
including exploration and evaluation. However, based on the circular dated 06.10.2021 issued by Union of India, Secretary
Ministry of Finance Department of Revenue (Tax Research Unit), on the recommendation of GST Council and tax is sought to be
imposed at the rate of 18% for the aforesaid period and a show cause notice is issued in this regard for payment of Differential
GST on Royalty Charges (Including DMF & NMET) to State Government for the aforesaid period under RCM. Petition has
been filed in Hon'ble High Court of Chhattisgarh and Hon'ble High Court of Karnataka vide case nos. WPT/200/2022 & WPT
249/2022 respectively. The matter was last listed on January 19, 2026 and adjourned. The total demand amount (including
interest) of ' 808.57 crore (PY ' 753.59 crore) is included in contingent liability under disputed claims at 2.48.A 1.1g

b) Demand notice for appropriation of GST paid under protest:

Joint Commissioner (GST) proposed to appropriate GST paid under protest of ' 37.52 crore for the period Jul-17 to Feb-20
and further demanded differential GST @13% of ' 42.93 crore for the period Jul-17 to Dec-18 on contributions made to DMF
and NMET trusts Company contested the same and filed appeal before Commissioner (Appeals), Belagavi. The total demand
amount (including interest) of ' 169.75 crore (PY ' 162.00 crore) is included in contingent liability under disputed claims at
2.48.A 1.1g

c) GST under RCM on contribution to Special Purpose Vehicle (SPV):

As per order of Hon'ble Supreme Court of India, Company is contributing towards Special Purpose Vehicle in the state of
Karntaka. A demand notice is received to pay GST under RCM on SPV. Company contested the same and filed appeal before
Commissioner (Appeals), Belagavi. The total demand (including interest) of ' 157.12 crore (PY ' 148.86 crore) is included in
contingent liability under disputed claims at 2.48.A 1.1g

d) Other various disputed cases with GST & Service Tax Authorities:

Various pending cases amounting to ' 329.58 crore (PY ' 254.29 crore) is included in contingent liability under disputed
claims at 2.48.A 1.1g as the outcome of the cases are subjudice.

2.49.1. D. OTHER DISCLOSURES :

i) Provident fund :

The company has obtained Actuarial valuation in accordance with Ind AS 19 of its Provident Fund and there is no shortfall in the
funds managed by the trust as on 31st March 2026. The present value of obligation, the fair value of the plan assets and other key
assumptions are summarised below.

ii) Pension Scheme :

The defined contribution pension scheme of the Company for its employees administered through a separate trust The Company's
contribution towards pension is made to National Pension System Trust (NPS) for the employees opted for the scheme. An amount
of ' 53.75 crore (PY ' 53.01 crore) for the year is recognized as expense towards contributions made by the Company to the defined
contribution pension scheme of the Company/NPS for the year and charged to the statement of profit and loss.

g) Risk exposure:

Through the defined benefit plans, the Company is exposed to a number of risk, the most significant of which are detailed
below.

i) Investment Risk

Most of the plan asset investments are in government securities, other fixed income securities with high rating
grades and mutual funds/ ETFs ( Exchange Traded Funds). The fair value of these assets is subject to volatility due to
change in interest rates and other market & macro-economic factors. There is also a risk of asset liability matching
i.e the cash flow for plan assets does not match with cash flow for plan liabilities.

ii) Change in discount rate:

The present value of defined benefit plan liabilities is calculated using a discount rate which is determined by
reference to government bond's' yields at the end of the reporting period. A decrease (increase) in discount rate will
increase ( decrease) present values of plan liabilities, although this will be partially offset by an increase in the value
of the plans' investments.

iii) Mortality rate risk

The present value of the defined benefit plan liability is calculated by reference to the best estimate of the mortality of
plan participants both during and after their employment. As increase in the life expectancy of the plan participants
will increase the plan's liability.

iv) Salary escalation risk

The present value of the defined benefit plan liability is calculated by reference to the future salaries of plan
participants. As such, an increase in the salary of the plan participants will increase the plan's liability.

v) Turnover rate/Withdrawal rate of employee

If the actual employee withdrawal rate in the future turns out to be more or less than expected then it may result in
increase/decrease in the liability.

vi) Medical inflation risk

The present value of the defined benefit plan liability is calculated by reference to the future medical expenditure of
plan participants. As such, an increase in the medical expenditure of the plan participants will increase the plan's
liability.

G. Valuation of PF Trust Investments.

The analysis of the Fair Value of the NMDC EPF Trust investment has been carried out as on 31st March 2026 through a
registered valuer. The fair valuation is carried out based on Market Approach and Income Approach. Market approach
is followed for instruments such as Government Securities, frequently / infrequently traded listed corporate bonds, PSU
bonds and Mutual Funds. Income Approach is followed for infrequently trade listed corporate bonds and other less liquid
instruments, theoretical fair values calculated using the discounted cash flow method.

2.49.2. Segment Reporting as per Ind - AS-108

A. Basis for segmentation

An operating segment is a component of the company that engages in business activities from which it may earn revenues and incur
expenses and for which discrete financial information is available. All operating segments' operating results are reviewed regularly
by the Board of Directors to make decisions about resources to be allocated to the segments and assess their performance.

The company has three reportable segments, as described below, which are the company's strategic business units. These business
units offer different products and services, and are managed separately because they require different technology and marketing
strategies. For each of the business units, the company's Board reviews internal management reports on a periodic basis. Iron Ore
being major segment contributes about 78.35% (PY 96.35%) of total revenue of the company, HR Coils contributes to 12.55% (PY
0.84%) and all other items consisting of Iron Ore Pellets, Wind Power sales contribute to 9.10% (PY 2.81%)of total revenue

The following summary describes the operations in each of the company's reportable segments:

B. Information about reportable segments

Information regarding the results of each reportable segment is included below. Performance is measured based on segment profit
(before tax), segment revenue and segment capital employed as included in the internal management reports that are reviewed by
the board of directors. Segment profit is used to measure performance as management believes that such information is the most
relevant in evaluating the results of certain segments relative to other entities that operate within these industries. Inter-segment
pricing is determined on an arm's length basis.

C. Description and Type of Products under each segment:

Iron Ore - Extract and Sale of Iron Ore

Trading - Purchase and Sale of HR_Coils

All other segments:

Pellets - Manufacturing and Domestic sale of Iron ore Pellets - In-House, Domestic and Export sale of pellets through job-work
Wind Power - Generation and sale of Power to BESCOM
Coal - Extract and Sale of Coal
Information about major customers:

Revenue from three major customers contributes to 48% of Company's revenue from operations in Iron Ore Segment and Revenue
from one customer out of three major customers also contributes to 5% of Company's revenue from operations in Pellet Segment.

Measurement of operating segment profit or loss, assets and liabilities:

The Accounting policies of operating segments are same as those described in the Material Accounting Policy Information of the
Company.

Trade receivables are non-interest bearing . As on March 2026, Rs 2,070.45 crore (March 2025: Rs 1,957.50 crore) was recognised
as provision for expected credit losses on trade receivables.

Contract assets are generally recognised in case of supply of services only when the receipt of money is conditional on milestone
even after satisfaction of performance obligation. In case of sale of goods, directly receivable is recognised as company has
unconditional right to payment from the moment performance obligation is satisfied.

Contract liabilities includes advance received from customer which will be adjusted towards supply of goods or services.

iv) Advance to Karnataka Vijayanagar Steels Ltd (KVSL):

The Company has paid an advance of '639.61 crores to Karnataka Industrial Area Development Board (KIADB) towards the cost of
2,857.54 acres of land allotted to its wholly owned subsidiary, Karnataka Vijayanagar Steel Limited (KVSL), for setting up a 3 MTPA
integrated steel plant. The land was allotted on a lease-cum-sale basis vide letter dated July 13, 2017. Possession certificates for
2,843.98 acres were issued on January 11, 2018, and revised on August 1, 2018. The land is currently in the possession of KVSL;
however, the lease agreement is yet to be executed.

As per allotment conditions, construction was to commence within 9 months and production within 5 years from the date of
possession. KVSL has requested an extension of the lease period to 99 years, which is currently under review by the Government of
Karnataka. KIADB has, in principle, agreed to a 10-year lease in place of the earlier 2-year period.

To evaluate alternate business models, NMDC had appointed Business Management Consultant for KVSL. The said Consultant
submitted their report to the Board of KVSL during December 2025. Management of the Company formed an internal committee to
review the said report of the Consultant. Further, legal opinions are also obtained with respect to impact on surrender of Land. The
recommendations of the said committee along with the legal opinions will be placed before the Board of Directors of KVSL for a final
decision and thereafter appropriate action will be taken on this matter. If it is decided not to proceed with any project, Clause 9 of
the Land Allotment Letter dated July 13, 2017, allows for voluntary surrender of the land, subject to a penalty of 15% on the amount
paid

In view of the demerger of NSL and pending decision as mentioned above, the proposal to convert the advance into equity in KVSL
remains under consideration. Accordingly, the amount has been classified as a "Non-Current Asset." The financial impact, if any,
will depend on the final outcome of discussions with the Government of Karnataka and KIADB. Pending the decision of the Board of
Directors of KVSL, an amount of ' 95.94 crores which is equivalent to 15% of ' 639.61 crores is included in the Contingent Liabilities.
(Refer Note no. 2.48. 1.1m)

v) Investment in Bastar Railway Private Limited (BRPL):

Bastar Railway Private Limited (BRPL) is a Joint Venture Company of NMDC, SAIL, IRCON, and CMDC, incorporated on May 5, 2016,
with its registered office at Raipur, Chhattisgarh. BRPL was formed to build, operate, and maintain the 140 km Jagdalpur-Rowghat
rail corridor (via Narayanpur, Kondagaon) and develop related railway infrastructure.

The Ministry of Railways (MoR) has granted in-principle approval for taking over the BRPL project. A joint meeting between
BRPL and MoR was held on November 14, 2024, and the projected expenditure statement up to March 31, 2025, along with final
settlement details, were submitted to the Railways on December 9, 2024.Further, Railway Board vide Letter No. 2015/Infra/12/3PT
dated 20.02.2026 has conveyed approval of the Board (Chairman & CEO and Member Finance) for termination of the Concession
Agreement between SECR and BRPL on mutually agreeable terms, along with guidelines for financial settlement. As per the said
directions:

Expenditure incurred towards land acquisition, litigation, and forest survey shall be reimbursed to BRPL after the physical verfication
and confirmation of clear title in the name of Railways. The adiministrative expenditure till the date of termination of concession
agreement shall be borne by BRPL and SECR shall takeover all pending court cases upon substitution and termination of concession
agreement.

In view of the above developments, pending the survey of land by SECR, BRPL & IRCON, Company expects full recovery of the
project cost incurred by BRPL. Accordingly, the investment is carried at cost.

BRPL had paid compensation for private land acquisition. However, an excess compensation of ' 85.63 crore was identified as per
the report of the Jagdalpur District Collector dated April 30, 2019, and the enquiry committee report dated August 23, 2019. Out
of this, ' 83.63 crore pertain to two individuals who have filed litigation before the Hon'ble Supreme Court of India. The matter is
currently sub judice and pending final verdict.

vi) Transactions with NSL( NMDC Steel Limited):

The Scheme of Arrangement for the demerger of NMDC Iron & Steel Plant (NISP) from NMDC Limited (NMDC) into NMDC Steel
Limited (NSL), along with their respective shareholders and creditors, was sanctioned by the Ministry of Corporate Affairs (MCA) on
October 6, 2022. The Scheme became effective on October 13, 2022, upon filing with the Registrar of Companies, with an Appointed
Date of April 1, 2021.

Pursuant to the Scheme, the Demerged Undertaking stood transferred and vested into NMDC Steel Limited. As per the terms, NMDC
shall act in trust for NSL and accordingly, an amount of ' 2,502.64 crores was incurred by NMDC on behalf of NSL with no specific
repayment schedule defined in the scheme. This amount has arisen due to the difference between the Appointed Date and Effective
Date, with no specific repayment schedule defined in the scheme. Against this amount, NSL has repaid an amount of ' 651.25 crore
and for the balance outstanding receivable as on 31.03.2026 amounts to ' 1,851.39 crores. NSL has since provided a repayment
schedule for the balance amount and based on the same, the said amount is presented under Current Assets - Other Financial
Assets

Additionally, the following balances are outstanding from NSL as at the reporting date:

• ' 4,508.23 crore towards sale of iron ore (Trade Receivables),

• ' 151.53 crore for employee-related services, and

• ' 179.60 crore as advance paid for purchase of HR products."

Considering the increased capacity and consequent scale-up of NSL operations and marketing arrangements, the management is
confident of the ultimate recovery of all the above amounts.

Based on the management estimate of likely timing of realization of trade receivables, an expected credit loss reflecting the time
value of money, amounting to ' 41.25 crore (till PY ' 44.27 crore) has been recognised as on March 31,2026.

vii) Employees outsourcing /deputing to NSL :

The Company seconds its personnel to NSL (entitiy under common control), in accordance with the terms and conditions mutually
agreed between the parties. Costs incurred by the Company are recovered from NSL.

The Company has deployed some of the KIOCL manpower at different units of the Company in accordance with the terms and
conditions mutually agreed between the parties. Further, Company has deployed certain number of KIOCL manpower at NSL (entity
under common control). Costs incurred by the Company are recovered from NSL.

viii) Investment in J&K Mineral Development Corporation Ltd (JKMDC) :

The Ministry of Environment, Forests and Climate Change vide its letter F.No.J-11011/348/2009-IA.II(I) dated 28.10.2016 inter alia
has stated that " it was observed that open cast mining for such as small reserve in closed proximity to holy shrine of Shri Mata
Vaishno Devi may lead to irreversible damage to pristine,fragile and environmentally sensitive area and decided to withdraw the
environmental clearance granted to the said project.

The Board of Directors of JKMDC deliberated upon the proposal in detail and have decided to have a perspective plan which inter-
alia shall include venturing into other minerals available in the state of Jammu and Kashmir, examining the viability of setting up
solar power plants and cement plants, etc.

Since, there was no further development, Board of Directors of JKMDC, in its 149th meeting held on 24.07.2024, decided to surrender
the Mining Lease area of 4.507 Square kms of Panthal Magnesite/ Dolomite Mine to the State Govt. Accordingly JKMDC started
the formalities for surrendering of Mining Lease of Panthal Magnesite/Dolomite Mine. JKMDC vide Letter No JKMDC/2024 dated
31.07.2024 submitted intimation to UT Govt. of J&K regarding surrender of Mining lease of Panthal Magnesite/Dolomite Mine as
per rule 21(1) of the Minerals (Other than Atomic and Hydro carbon Energy Minerals) Concession rules, 2016. Further JKMDC has
submitted Final Mine Closure Plan (FMCP) on IBM portal on 07.02.2026 and same is under approval with Regional Controller of
Mines, Indian Bureau of Mines Dehradun. FMCP is pre-requisite for surrender of Mining Lease of Panthal Magnesite/Dolomite Mine.

Further, Management of JKMDC is exploring alternative options for the company to bring some viable project on 45 Acres propriety
land of JKMDC at Panthal. In this connection JKMDC after engaging SECI (Solar Energy Corporation of India) obtained pre¬
feasibility report for Solar Power Plant at Panthal and same is under examination with Management. Moreover Management is also
exploring other viable projects at propriety land of JKMDC at Panthal.

Considering the above developments, Company has derated the investment and advances given to JKMDC.

ix) Investment in Krishnapatnam Railway Company Limited (KRCL) :

KRCL, an associated Company, acquired lease hold land from South Central Railways and KRCL holds the lease hold rights on the
land till the period of concession agreement, i.e., 30 years or on the attainment of Net Present Value (NPV) payback equal to equity
investment @14% whichever is earlier. In case the NPV payback is reached earlier than 30 years, the concesion agreement would
stand terminated and the project line would be repossessed by Railways. Accordingly, the value of the land will be recovered from
SCR.

In view of the above facts, no impact is given in the books of accounts of the Company.

During the year, KRCL has paid an interim dividend @ ' 0.80 per share. Accordingly, Company has received ' 3.20 crore as dividend
income and included in other income at Note No. 2.34

x) Investment and Mining lease in NMDC CMDC Limited (NCL) :

NMDC-CMDC Limited had issued letter of offer for Rights Issue for raising the funds for obtaining the Statutory Clearances like EC,
FC for Deposit-4 & Deposit-13. Accordingly, during the year, Company has subscribed for the total of 30,46,46,939 shares amounting

to ' 304.65 crores (equivalent to 51%). The total investment of the company as on March 31,2026 in NMDC-CMDC is ' 402.99 crores
(PY ' 98.35 crores)

Deposit: 13: (Reserve of Bailadila Iron ore, Kirandul Distt: Dantewada, Chhattisgarh) Category A mines, Reserve: 324.69 million tons
(in the total area of 315.813 hectare)

Transfer of Mining Lease ('ML') from NMDC Ltd to NCL (incorporated on 19-6-2008 under companies act 1956, Gwalior MP) in the
name of NCL was on 4-12-2017) was done by virtue of Clause 5.1 (3.1) of the mining lease deed dated 7-1-2017 between governor of
Chhattisgarh and NMDC Ltd. Statutory period to commence the mining i.e 2 years from the date of ML has lapsed as the mining
operation could not be commenced. A strike commenced on 07.06.2019 (ended on 12.06.2019) by nearby villagers, protesting
against MDO and demanding enquiry against FRA certificate issued by Gram Sabha.

District Collector, Dantewada vide Order No. 300/Reader/2019 dt.11.06.2019 issued orders to stop all project activities of Dep-13.
Company is hopeful to get the mine operational in the ensuing year. The Ministry of Mines vide its order dated September 22,2025
relaxed the operation of Section 4A(4) of the MMDR Act up to September 21, 2026, thereby providing extended time for the
operationalization of the project in Deposit 13. Further, Stage-I Forest Clearance in respect of Deposit-13 is awaited from the Ministry
of Environment, Forest and Climate Change (MoEFCC), New Delhi. Efforts are made by NCL with competent authorities to get the
mines operational and vacate the stay order.

Bailadila Iron Ore Deposit-4: Ministry of Mines, Government of India vide Gazette Notification No. 697(E) dated 30.09.2019 reserved
Bailadila Iron Ore Deposit-4 over an area of 646.596 Ha in favour of NMDC-CMDC Limited (NCL) under Section 17A(1A) of the
MMDR Act, 1957 for prospecting and mining operations. The Mining Lease deed was executed and registered on 21.01.2026. The
Company has obtained major statutory approvals including Environmental Clearance, Forest Clearance, Mine Plan approval,
Consent to Establish and Consent to Operate for initial capacity from the respective authorities. Land acquisition, infrastructure
development activities including road construction and mine evacuation facilities are under progress and initial mining activities
have commenced after obtaining statutory approvals

Belmundi Diamond Block: NCL has submitted the proposal to Secretary MRD, Chhattisgarh for reservation of Baloda - Belmundi
Diamond block under section 17A(2A) of MM (D&R) Amendment Act,2015 in favour of NCL for Prospecting and Mining operation
(PL) of Diamond. PL Deed executed on 28/02/2023 and registration done on 01.03.2023. The Prospecting Licence (PL) for the block
measuring 156.80 sq. km. was renewed/extended by the Government of Chhattisgarh up to 13 October 2026. The applicable PL fees
and security deposit were paid and supplementary PL deed execution/registration formalities were under process. The earlier Bank
Guarantee amounting to ' 3,92,500 furnished for the PL period up to 28 February 2026 had expired during the year. Consequent to
the extension of the Prospecting Licence, a fresh Bank Guarantee for the said amount was furnished on April 27, 2026.

Pre-Feasibility Report (PFR) study activities for the Baloda-Belmundi Diamond Block were under progress as on 31 March 2026.
Stream sediment sampling, drilling activities and geophysical survey work had commenced and were at various stages of
completion. EPMA analysis and processing of geophysical data were under progress, based on which further exploration activities
were proposed

In view of the above developments, investments is carried at cost

xi) Legacy Iron Ore Ltd, Australia (LIOL):

The principal assets of LIOL are its Exploration and Evaluation (E&E) assets, which are valued at ' 162.36 crore (AUD 24.69 million)
as against ' 121.66 crore (AUD 22.10 million) in the previous year. Following a capital raise in November 2024, LIOL's Board has
approved an aggressive exploration programme at Mt. Celia and other tenements to significantly enhance its gold resource base.

Mining operations at the Mount Celia site, conducted under the Right to Mine (RTM) Agreement with Bain Global Resources,
ceased following completion of Phase I mining at Mount Celia. However, ancillary activities such as ore haulage to the mill and road
maintenance continued until the ore stockpiles were exhausted. These activities were completed in late February 2026. Following
completion of the Right to Mine Agreement, the first phase of mining operations at Mount Celia was concluded. During the period,
mining and development activities at Mount Celia made significant progress.

Additionally, LIOL has entered into a joint venture with Hancock Prospecting Pty Ltd for development of its magnetite iron ore assets,
positioning it strategically for future growth. The company also maintains a cash reserve of ' 23.28 crores (AUD 3.54 million),
supporting operations. The net worth of LIOL as on March 31, 2026 is ' 189.85 crores (PY ' 159.36 crores).

As of March 31, 2026, based on the LIOL's share price, the market value of the investment of ' 357.64 crore is less than the carrying
value of its investment in LIOL. An independent assessment was carried out for the valuation of investment based on the cash flow
projections and value in use of the projects of LIOL. As per the impairment assessment, the recoverable value is more than the
carrying value, indicating no impairment. Accordingly, the investments are carried at cost.

(*) - During the previous year Bonus shares were issued in the ratio of 2:1

2.49.6 Accounting for Deferred Taxes on income (Ind-As-12) : Necessary details have been disclosed in note no: 2.9

2.49.7 Discontinuing Operations (IndAS-105):

Silica Sand Project, Lalapur

On 25/02/2008 the Board of directors had announced a plan to dispose-off the plant and machinery of Silica Sand Project, Lalapur which
is included in the segment of "Other minerals and services." Pending disposal, the unit is kept under care & maintenance.

Screening Plant at Vizag:

Board of Directors in its 525th meeting held on 10th December 2019 approved the termination of Screening Plant operation located at
Vizag.

2.49.8 Intangible Assets (IndAS-38) : R&D

The Research & Development expenditure (including feasibility studies), charged to Statement of Profit & Loss during the year is ' 23.69
crore (previous year ' 26.93 crore). It includes R&D net expenditure of ' 21.31 crore (PY ' 25.98 crore) and expenditure of ' 2.38 crore
(PY ' 0.95 crore) on feasibility studies.

2.49.9: Accounting policies, change in Accounting Estimates and Errors (As per Ind-AS 8):

Change in Accounting Estimate - Mine Closure Obligation (in previous FY 2024-25)

During earlier years, the provision for mine closure obligation was determined based on a technical assessment conducted for a
representative mine and the estimates derived therefrom were applied uniformly across all other mines. This obligation to the extent of

Run of Mine (ROM) which was provided was reviewed and updated annually

During the previos FY 2024-25 , the Company had carried out a mine-wise technical assessment to determine the provision for mine
closure obligations considering the cost estimates and reserves of individual mines. Consequently, net excess provision of ' 110.05
crores had been credited to the Statement of Profit and Loss under "Other Income". This change in the basis of estimation represents a
change in accounting estimate under Ind AS 8 - Accounting Policies, Changes in Accounting Estimates and Errors and had been applied
prospectively.

2.49.11 Impairment of Assets (IndAS - 36):

The impairment of assets has been reviewed during the year in respect of the following cash generating units, included under the
segment 'Other Minerals and Services'. The Assets considered for reversal of impairment in this financial year is ' NIL (PY NIL):

1 The Recoverable amount of the assets of SSP, Lalapur unit has been arrived at considering the 'value in use'. Since the value in use

has resulted in negative cash flows, the recoverable amount has been taken as nil without applying any discount rate.

2 In the case of SAF plant at the Sponge Iron Unit, the impairment is based on fair value as assessed by the approved Valuer.

3 In case of SIIL plant, Impairment is based on the assessed fair value.

4 The recoverable amount of assets of DMP, Panna has been considered based on the fair value as per the valuation report submitted

by the valuer. The fair value of the assets less cost of the fixed assets is significantly higher than their respective carrying amounts.
Hence, there is no indication of impairment loss as per the requirements of Ind AS 36. Accordingly, no impairment loss is considered
during the current FY 2025-26.

2.50.2 There are no Investments by the loanees in the shares of NMDC Ltd.

2.50.3: There are no loans and advances in the nature of loans to firms/companies in which directors are interested except as stated

above.

2.51. Others:

2.51.1 Income Tax :

(a) The company has filed appeal against the disallowances of various expenses in the Income Tax Assessments for earlier years with
tax effect aggregating to '1,235.28 crore (PY ' 1,197.92 crore) as at the year end. Against these adjustments the tax paid under
protest by the company aggregates to ' 1,047.66 crores as at 31st March 2026 (PY ' 801.13 crore). The company continues to
context these disallowances before the Appellate Authorities. As a matter of prudence, the company has fully provided for these
disallowances. The current tax liability as at the year end is NIL (PY ' 251.58 crore)

(b) The Current Tax Assets (net) includes an amount of ' 120.52 crore (PY ' 125.40 crore) receivable from Income Tax Department under
the Viwad -Se-Viswas Scheme (VSV) scheme 2020 & 2024, towards settlement of all disputed income tax cases up to assessment
years 2017-18 and AY 2020-21 respectively.

2.51.2 Treatment of expenditure incurred on Assets not owned by the Company:

During the year, an amount of ' 123.12 crore (PY ' 150.55 crore) was utilised by Indian Railways towards the doubling of railway lines
between Jagdalpur-Ambagaon and Kirandul-Jagdalpur, as well as for the upgradation of in-motion weighbridges and other railway
assets. Further an amount of ' 0.09 crore amount spent for diversion of PWD road at Donimalai for new screening plant-II. Thus, the
total expenditure of ' 123.21 crore (PY ' 150.55 crore) has been accounted for under Other Expenses in the Statement of Profit and Loss.

2.51.3 Property, Plant & Equipment (PPE)

In accordance with Ind AS 16, spare parts, stand-by equipment, and service equipment are capitalised when they meet the definition of
Property, Plant and Equipment (PPE) and are expected to be used over more than one accounting period.

Based on a review of inventory values and consumption patterns across major production units, the Company has, considering materiality,
adopted a threshold limit of ' 20 lakhs for capitalising such items.

During the year 2025-26, the gross value of such items capitalised amounted to ' 119.92 crore (Previous Year: ' 88.98 crore).

2.51.4 Dues from Monitoring Committee- Donimalai complex in Karnataka:

As on March 31, 2026, total trade receivables from the Monitoring Committee stand at ' 1,889.81 crore (Previous Year: ' 1,889.81 crore).
This includes:

• ' 22.18 crore towards long-pending dues for supply of LG Fines to the Pellet Plant, and

• ' 1,867.63 crore towards 10% of sale proceeds retained by the Monitoring Committee for the period prior to April 1, 2019.

The Hon'ble Supreme Court, vide interim order dated February 22, 2023, directed KMERC to refund the 10% contribution collected for
the period from January 1, 2019, to January 31, 2023. Accordingly, Company received ' 1,326.84 crore from KMERC on April 20, 2023.

An additional contribution of ' 24.52 crore made by Company in February 2023 was also refunded by KMERC on April 29, 2024, in line
with the final order of the Hon'ble Supreme Court dated March 14, 2024. The Court clarified that NMDC is liable to contribute 10% of sale
proceeds to the SPV effective from January 1, 2019, and any excess paid thereafter shall be refunded.

However, the Court rejected Company's plea for refund of the 10% amount retained by the Monitoring Committee for the period prior to
December 31, 2018. Company had obtained legal opinions from different Sr. Advocates of Hon'ble Supreme Court / High Courts regarding
possibility of further review / appeal or writing off these amounts. Further, the Company is in the process of seeking a legal opinion from
the learned Attorney General of India.

Pending obtaining legal opinion as mentioned above, the amount of ' 1,867.63 crore recoverable from the Monitoring Committee for the
pre-2019 period, along with a corresponding amount under Expected Credit Loss (ECL), continues to be reflected in the books of account.

In addition to above, an amount of ' 6.71 crores is receivable towards interest amount. Since, Monitoiring Committee rejected the claims
of the Company, equivalent provision is already created in the books of account. Proposal for write off of this amount is under process.

2.51.5: Regularization of Forest Land

a) Donimalai

The Ministry of Environment, Forest and Climate Change (MoEF&CC) granted in-principle (Stage-I) approval for diversion and
regularisation of 99.438 hectares (96.868 ha 2.57 ha) of forest land outside the mining lease area of Donimalai Iron Ore Mine
under the Forest Conservation Act, 1980. Based on the demand raised, the Company paid penal charges and interest amounting to
' 255.40 crore during FY 2023-24.

Additionally, the Company has reviewed and identified a further area of 12.503 hectares requiring regularisation, with an estimated
provision of ' 29.43 crore (Previous Year: ' 28.51 crore) including ' 0.92 crore recognized in the current year which is disclosed
under Non-Current Liabilities.

b) Kirandul

As per the earlier survey conducted in the 1960s, an area of 4.5 Ha of Reserved Forest land was vested under the approved mining
lease of NMDC, and was used for the basecamp. In 2013, during the Joint inspection by NMDC and Forest Department officials on
20.04.2013, on introduction of measurement by DGPS equipment, it was found that, 4.5 hectares of Reserved Forest land is outside
the mining lease area and adjacent to the sanctioned mining lease, which is approximately 0.265 percent of the sanctioned mining
lease area.

Since difference is due to introduction of DGPS survey instead of our past survey systems, matter has been taken up with Forest
department and District Administration on the basis of an online application submitted on 04.11.2016. The proposal no. FP/CG/
ENCRH/22039/2016 was allotted for regularization of 4.5 Ha of Reserved Forest land. A registration fee of Rs 6,000/- was deposited
through DD No. 912172 dated 18.04.2017 and processing fee of '29,000/- was also deposited through DD No. 912171 dated 18.04.2017
to DFO, Dantewada.

During the FY 2025-26, the Company has recognized an estimated provision of ' 3.23 crore towards penalty which is included
under Non-Current Liabilities.

2.51.6: Impact Assessment of New Labour Codes

The Government of India has consolidated 29 existing labour legislations into a unified framework comprising four Labour Codes,
namely: the Code on Wages, 2019; the Code on Social Security, 2020; the Industrial Relations Code, 2020; and the Occupational Safety,
Health and Working Conditions Code, 2020 (collectively referred to as the New Labour Codes). These New Labour Codes have been
made effective from November 21, 2025. The corresponding central rules under these codes were notified by the Central Government
on May 8, 2026.

Based on actuarial valuation, the incremental impact of these changes, assessed by the Company, on the basis of the information
available, consistent with the guidance provided by the Institute of Chartered Accountants of India, has been recognised in the financial
statements of the Company for the year ended 31 March 2026, which is not material.

2.51.7: Land Lease Agreement with RINL:

During the FY 2024-25, the Company entered into a Memorandum of Understanding (MoU) with Rashtriya Ispat Nigam Limited (RINL)
on September 4, 2024, for obtaining a long-term lease of approximately 1,167 acres of land for establishing various facilities. As per the
terms of the MoU and subsequent correspondence, the lease is for a period of 30 years with a nominal annual ground rent of Re. 1. The
lease arrangement entails payment of an upfront premium of '1,502 crores and a security deposit of '90.12 crores.

Pursuant to the MoU and considering the transfer of physical possession of the land, the Company has recognized a Right of Use (ROU)
asset in respect of lease payments including the upfront premium, effective from September 4, 2024, in accordance with Ind AS 116 -
Leases. The lease agreement got registered on May 1, 2025. As of the reporting date, the security deposit of '90.12 crores is yet to be
paid and the same is shown under other commitments (refer note no. 2.48 B). Unpaid upfront premium ' 503.11 crores is included under
lease liability.

2.51.8: Trade Receivables

a) Rashtriya Ispat Nigam Limited (RINL)

As at March 31, 2026, trade receivables from Rashtriya Ispat Nigam Limited (RINL) primarily on account of iron ore and pellets
supplies amounts to ' 4,586.31 crore (PY 4,049.00 crore). On January 17, 2025, the Cabinet Committee on Economic Affairs (CCEA)
approved a revival plan for RINL, under which the Government of India had proposed a financial package amounting to '11,440
crores.

Further, as per the publicly available information, the lenders approved a significant financial plan to support RINL's recovery
from financial distress. Additionally, the Ministry of Steel is actively pursuing various measures to enhance RINL's operational and
financial sustainability.

In view of the above developments and the expected gradual improvement in RINL's operations and financial position, the
management is confident that the entire outstanding receivable will be fully recoverable. Based on the management estimate of
likely timing of realization of trade receivables, an expected credit loss reflecting the time value of money, amounting to ' 127.34
crore (PY ' 10.66 crore) has been recognised as on March 31,2026.

b) NMDC Steel Limited (NSL)

As at March 31, 2026, trade receivables from NMDC Steel Limited (NSL) on account of iron ore supplies amount to ' 4,508.23
crore (PY ' 3,655.14 crore).

Considering the increased capacity and consequent scale-up of NSL operations and marketing arrangements, the management is
confident of the ultimate recovery of all the above amounts.

Based on the management estimate of likely timing of realization of trade receivables, an expected credit loss reflecting the time
value of money, amounting to ' 41.25 crore (PY ' 44.27 crore) has been recognised as on March 31,2026.

2.51.9 Coal Mine Projects - Tokisud North and Rohne

a) Tokisud North Coal Mine - Jharkhand

The Ministry of Coal declared Company as the successful allottee of the Tokisud North coal mine on December 16, 2019. The
Allotment Agreement was signed on December 24, 2019, and the Allotment Order issued on August 17, 2020.

As per the terms and conditions of the allotment order, Company obtained all the requisite approvals from the Competent Authorities.
The ground breaking was done on January 23, 2026 for mining operations

Accordingly, necessary capitalization was made with respect to Mining Rights, Mine Restoration Cost and Land acquired under CBA
Act (including private land which is pending for physical possession) based on the legal opinion obtained by the Company. Amounts
relating to Mine infrastructure facilities and R&R liabilities are accounted under Capital Work-in-Progress. Further, the Company has
commenced the over burden removal in the Government and Forest Land through Mine Developer-Cum-Operator.

In addition to above, the following cases are pending at different authorities:

a) Company has challenged the quantum of the compensation decided by the Nominated Authority (i.e. ' 301.92 crore) before
the CBA Tribunal (CBC No. 1/2022) because of errors in calculation of the land valuation, infrastructure valuation, and irregular
land purchases by prior allottee. The matter was last heard on May 05, 2026 and adjourned for further hearing

b) Company has challenged the above matter in the Jharkhand HC (WP (C) 5076 of 2023). The Jharkhand High Court vide its
order dated 18.02.2025 has already stayed any further disbursement of compensation. The matter was last heard on May 11,
2026 and adjourned for further hearing

b) Rohne Coal Mine - Jharkhand

Company was declared as the successful allottee of Rohne Coal Mine on March 17, 2020. The Allotment Agreement was signed on
February 17, 2021, and the Allotment Order was issued on June 18, 2021.

As on March 31, 2026, Company has paid the total amount of ' 436.75 crore (PY ' 170.02 crore) towards fixed Cost upfront amount,
NPV & CA charges for exploration and others charges. These payments are reported under Capital Advances (Note 2.10). Further, a
Bank Guarantee of ' 405.17 crore (PY ' 405.17 crore) has been submitted, pending lease deed execution.

Environmental and Stage-I Forest Clearances have been obtained, and the Company is in the process of complying with conditions
under Stage-I clearance. Land acquisition under the CB(A&D) Act, 1957 is underway:

• Section 4 Notification: December 12, 2023

• Section 7 Notification: August 2, 2024

• NoC under Section 8: October 25, 2024

• Section 9(1) notification Under CBA Act 1957 issued on 05.06.2025

• Section 11 notification for acquisition of land under CBA(A&D) Act 1957 (Equivalent to ML) was issued, vide Gazette notification
dated 03.11.2025

Further, in line with the MoEF&CC circular dated December 16, 2024, allowing special provisions for PSUs, the Divisional Forest
Officer (DFO) has identified ~3,000 hectares of degraded forest land for compensatory afforestation. Field verification was completed
by April 30, 2025.Draft R&R Plan is submitted by the Company in the month of February 2026. DC Hazaribagh, vide letter dt. March
09, 2026 directed the Company to submit the consent of the villagers regarding approval of R&R Plan.

In addition, feasibility study for identifying optimal route for evacuation of coal from Rohne Coal Block to existing or probable nearby
railway line in under process for which a consultant is being hired. Detailed route survey planning is under process for preparation
of TEFR

2.51.10 CSR Expenditure:

a) Gross amount required to be spent by the company during the year is ' 166.30 crore (2% of the last three years average PBT '
8,315.01 crore), (PY ' 191.14 crore (2% of the last three years average PBT ' 9,557.01 crore).

b) Disclosure in respect of the expenditure on Corporate Social Responsibility activities

e) Details of amount transferred to PM Care Fund under Schedule-VII: In terms of Section 135 (6) of the Companies Act, 2013, the three
year utilization period for Unspent CSR account for the FY 2022-23 concluded on March 31, 2026. Any unspent amount thereafter
is required to be transferred to a fund specified under Schedule-VII within a period of 30 days i.e., on or before April 30, 2026.
Accordingly, Company has transferred ' 60.93 crore and related interest earned in April-2026 amounting to ' 1.87 crore to PM Cares
Fund (A/c No. 39238765008, IFSC Code: SBIN0000691) on April 30, 2026.

f) Reason for shortfall: The shortfall for FY 2025-26 ' 65.86 crore (PY 2024-25 ' 123.36 crore) from the stipulated and prescribed
spend is on account of delay in certain projects due to certain limitations faced by state authorities. However, the shortfall has been
allocated against the specific projects and would be spent as per the provisions of companies Act 2013.

g) Nature of CSR activities: The corporation undertakes impactful social projects which are in alignment with the areas specified under
Schedule VII of the companies Act 2023 of which the company takes up CSR projects largely in the projects related to Education,
Health & Hygiene, Nutrition, Drinking Water, Rural Development, Skill Development and Income Generation, Promotion of Sports,
Protection of Cultural and Heritage, Food Relief & Natural Calamities, Environment & Others.

h) Details of related party transaction: Nil

i) Where a provision is made with respect to a liability incurred by entering a contractual obligation:, the movement in the provision
during the year should be shown separately. : Nil

2.51.11: Un-Authorized removal of Iron Ore from Kumaraswamy Iron Ore Mine

On 16 January 2026, a truck carrying 20 tonnes of iron ore from Kumaraswamy Iron Ore Mine (KIOM) was intercepted and seized by
Sandur Police near Babai Cross due to the absence of valid transport document. FIR was lodged accordingly. Internal Departmental
Enquiry Committee was constituted by the Company to enquire into the matter and to ascertain the facts and circumstance leading to
the occurrence. On verification, another 6 vehicles were identified which exited the mines without proper documents for which complaint
was lodged with the Police. Thus, the total un-authorized removal of Iron Ore from KIOM is 280 tons (7 vehicles).

Parallelly, NMDC Vigilance Department undertook an independent inquiry. Based on the Vigilance Dept. inquiry report, disciplinary
proceedings were initiated. Detailed enquiry is under process and appropriate action will be taken by the Competent Authority accordingly.
The total impact based on the cost of production and statutory levies for 280 tons of iron ore works out to ' 10.82 lakhs. Subsequent
to the year end, a drone survey of iron ore through an external agency was carried out and the variation was found to be not material.

Further, as per the recommendations of the vigilance department, system improvement measures have been initiated to remediate the
deficiencies/ strengthen the internal controls including enhancement of gate controls, surveillance systems, reconciliation processes
and supervisory monitoring mechanisms which were in various stages of implementation as at March 31, 2026.

2.51.12: Utilization of borrowed funds and share premium

a) No funds have been advanced / loaned / invested (either from borrowed funds or from share premium or from any other sources /
kind of funds) by the Company to any other person(s) or entity(ies), including foreign entities (Intermediaries), with the understanding
(whether recorded in writing or otherwise) that the Intermediary shall:

(i) 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

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

b) No funds have been received by the Company from any person(s) or entity(ies), including foreign entities (Funding Parties), with
the understanding (whether recorded in writing or otherwise) that the Company shall (i) 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 (ii) provide
any guarantee, security or the like on behalf of the Ultimate Beneficiaries

2.51.13 Compliance with Rule 3(1) of the Companies (Accounts) Rules, 2014 - Audit Trail Requirement

As per the proviso to Rule 3(1) of the Companies (Accounts) Rules, 2014, effective from April 1, 2023, companies using accounting software
are required to maintain an audit trail of every transaction, capturing an edit log of changes along with corresponding timestamps, and
ensuring that such audit trails cannot be disabled.

The Company uses SAP S/4 HANA ERP for maintaining its books of account since FY 2020-21. Audit trail functionality has been enabled
at the application level for key tables, in line with industry-standard practices. Administrative access to the database is restricted
and secured through HANA Studio, and all admin-level activities are logged. However, the default audit logging at the database level
is not currently enabled due to performance and storage considerations. The management remains committed to ensuring effective
implementation of these statutory requirements.

During the year, on May 21, 2025 two additional application servers were deployed. The feature of recording audit trail (edit log) facility
on these two servers was enabled on January 11, 2026 and has been operational thereafter. The audit trail (edit log) feature was not
enabled for certain custom (Z) tables within the accounting software which was enabled subsequent to the year-end on April 23, 2026.

The audit trail has been preserved by the Company as per the statutory requirements for record retention.

2.51.14 Details of physical quantity of slimes lying at various locations:

As stated in the material accounting policy information, Note No.1.2.2 (vi), no credits taken in respect of stock of run of mine ore,
emebeded ore, Iron Ore Slimes, as there is no active market for slimes. The quantities of slimes lying at various locations of the company
aggregated to 224.58 Lakhs Tons

2.51.15 Operation, Maintenance and Development of Assets (OMDA) of Pellet Plant, Donimalai:

During the year, the company has entered in to a contract for operation, maintenance and development of Assets (OMDA) of Pellet Plant
Donimalai with a consortium under a revenue sharing model for a period of 10 years w.e.f October 19, 2025. The Pellet Production is
expected to commence during October 2026.

2.51.16 General

i. The Company owns an office space in New Delhi. As the property is not held for long-term capital appreciation or rental purposes,
it does not meet the definition of Investment Property under Ind AS 40 and is accordingly classified under Property, Plant and
Equipment (PPE).

ii. Certain balances under Trade Payables, Advances, Security Deposits, and Other Payables are subject to confirmation and
reconciliation. Adjustments, if any, arising on confirmation will be accounted for as and when reconciled. In the opinion of the
management, the impact of such adjustments, if any, is not expected to be material.

(1) Assets that are not financial assets (such as receivables from statutory authorities, prepaid expenses, advances paid and certain
other receivables) as of 31st March 2026, and 31st March 2025, respectively, are not included.

(2) Other liabilities that are not financial liabilities (such as statutory dues payable, advances from customers and certain other
accruals) as of 31st March 2026, and 31st March 2025, respectively, are not included.

The carrying amounts of above financial assets and liabilties are considered to be same at amortized cost.

Note No: 2.52.2 Financial Risk Management

a) Risk management framework

The Company's Board of Directors has overall responsibility for the establishment and oversight of the Company's risk management
framework. The Board of Directors has established the Risk Management Committee, which is responsible for establishment and
implementation of an adequate system of risk management across the company. The committee reports regularly to the Board of
Directors on its activities.

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

The Board of Directors monitors the compliance with the Company's risk management policies and procedures, and reviews the
adequacy of the risk management framework in relation to the risks faced by the Company.

A. Credit risk

Credit risk is the risk that counterparty will not meet its obligations under a financial instrument or customer contract, leading
to a financial loss. The Company is exposed to credit risk from its operating activities (primarily trade receivables) and deposits
with banks.

(a) Trade receivables

The Company sales are generally based on advance payments and through LC's. The trade receivables in the books are
mainly on account of credit sales to M/s RINL Limited & NMDC Steel Limited, CPSEs under the Ministry of Steel.

The ECL provisions for trade receivables disclosed above are based on assumptions about risk of default and expected
loss rates.

As at March 31, 2026, trade receivables are predominantly from Central Public Sector Undertakings (CPSUs) that possess
adequate financial capacity to meet their obligations. Accordingly, the credit risk associated with these receivables is
assessed to be negligible.

ECL provision of ' 113.65 crore (PY ' 54.93 crore) is assessed in the current financial year based on the Company's
accounting policy on Expected Credit Loss (ECL) in accordance with Ind AS 109 - Financial Instruments. Based on
historical trends, current payment behaviour, and recent developments pertaining to the respective customers, the
management is of the view that the outstanding receivables, which are not impaired, are fully collectible.

(b) Financial instruments and cash deposits

Credit risk from balances with banks is managed by the Company's treasury department in accordance with DPE
guidelines & Company's policy. Investments of surplus funds are made only with scheduled commercial banks having
a minimum networth of Rs 500 Crore within limits assigned to each bank and Debt based mutual funds of public sector
AMCs. The limits are reviewed by the Company's Board of Directors on an annual basis. The limits are set to minimise
the concentration of risks and therefore mitigate financial loss through counterparty's potential failure to make payments.

B. Liquidity risk

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

Typically the Company ensures that it has sufficient cash on demand to meet expected operational expenses for a period of 60
days, including the servicing of financial obligations; this excludes the potential impact of extreme circumstances that cannot
reasonably be predicted, such as natural disasters. In addition, the Company has taken fund based limits with banks to meet
its short term financial obligations.

i. Financing arrangements

The Company has access to the following undrawn borrowing facilities at the end of reporting period

C. Market risk

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

(i) Foreign currency risk

Since majority of the company's operations are being carried out in India and since all the material balances are
denominated in its functional currency, the company does not carry any material exposure to currency fluctuation risk.

The Company's exposure to foreign currencies is minimal and hence no sensitivity analysis is presented.

(ii) Interest rate risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of
changes in market interest rates. The company quite often bridges its short term cash flow mismatch by availing unsecured
working capital loans from banks or against its fixed deposits. Such loans have a very short tenure and the interest rate
on such loans is based upon the fixed rates offered by banks on fixed deposits, increased by a few basis points or the rate
of interest applicable for unsecured loans. Since the interest rates on fixed deposits are fixed, the company does not have
any interest rate risk on such loans availed on a loan to loan basis.

The Company's exposure to interest rate risk is minimal and hence no sensitivity analysis is presented.

Note No. : 2.52.3 Capital Management

a) Risk management

The primary objective of the Company's capital management is to maximise the shareholder value. The Company's objectives when
managing the capital are to safeguard their ability to continue as a going concern, so that they can continue to provide returns for
shareholders and benefits for other stakeholders.

The Board's policy is to maintain a strong capital base so as to maintain investor, creditor and market confidence and to sustain
future development of the business. The Board of Directors and senior management monitors the return on capital, which the
Company defines as result from operating activities divided by total shareholders' equity.