(xv) Provisions, Contingent Liabilities and
Contingent Assets

Provisions are recognized when the company
has a present obligation (legal or constructive)
as a result of a past event, for which it is probable
that an outflow of resources embodying
economic benefits will be required to settle
the obligation and are reliable estimate can be
made of the amount of the obligation. As the
timing of outflow of resources is uncertain,
being dependent upon the outcome of the
future proceedings, these provisions are not
discounted to their present value.

A disclosure for a contingent liability is made
when there is a possible obligation or a present
obligation that may, but probably will not require
an outflow of resources. When there is a possible
obligation or a present obligation in respect
of which likelihood of outflow of resources is
remote, no provision or disclosure is made.

Contingent assets are neither recognised nor
disclosed in the Standalone Financial Statements
since this may result in the recognition of income
that may never be realised.

(xvi) Earnings Per Share

Basic earnings per equity share is computed
by dividing the profit or loss for the period
attributable to the equity holders of the
company by the weighted average number of
equity shares outstanding during the period.

Diluted earnings per share is computed by
adjusting the net profit or loss for the period
attributable to equity shareholders and the
weighted average number of shares outstanding
during the period, for the effects of all dilutive
potential equity shares, if any.

(xvii) Financial instruments

A financial instrument is any contract that
gives rise to a financial asset of one entity and a
financial liability or equity instrument of another
entity.

(i) Initial recognition

The company recognises the financial
assets and financial liabilities when it
becomes party to the contractual provision
of the instruments. All financial assets
and liabilities are recognised at fair value
on initial recognition except for trade
receivables which are initially measured
at transaction price. Transaction costs that
are directly attributable to the acquisition
of financial assets and or issue of financial
liabilities that are not recognized at fair
value through profit or loss, are added to or
reduced from the fair value of the financial
assets or financial liabilities, as appropriate.
Transaction cost directly attributable to the
acquisition of financial assets and financial
liabilities recognized at fair value through
Profit or Loss are recognised immediately
in the Statement of Profit and Loss.

(ii) Subsequent measurement

For the purposes of subsequent
measurement, financial instruments are
classified as follows:

A. Non-derivative financial instruments
(a) Financial assets carried at
amortized cost

A financial asset is subsequently
measured at amortized cost if it is
held with a business model whose
objective is to hold the asset in order
to collect contractual cash flows and
the contractual terms of the financial
instrument give rise on specified
dates to cash flows that are solely
payments of principal and interest on
the principal amount outstanding.

Interest income for such instruments
is recognised in profit or loss using
the effective interest rate (EIR)
method, which is the rate that exactly
discounts estimated future cash
receipts through the expected life of
the financial asset to that asset's gross
carrying amount.

Fair value changes on such assets are
recognised in the statement of profit
and loss.

(d) Investment in Subsidiary and
Associates

Investment in subsidiary and
associates is carried at cost less
provision for impairment, if any.
Investment is tested for impairment
whenever events or changes in
circumstances indicate that the
carrying amount may not be
recoverable. An impairment loss is
recognised for the amount by which
the carrying amount of investment
exceeds its recoverable amount.

(e) Financial liabilities

Financial liabilities are subsequently
carried at amortized cost using the
effective interest method, except for
contingent consideration recognized
in a business combination or is
held for trading or it is designated
as at FVTPL which is subsequently
measured at fair value through profit
and loss. For trade and other payables
maturing within one year from the
balance sheet date, the carrying
amount approximates fair value
due to the short maturity of these
instruments.

All changes in fair value in respect
of liabilities measured at fair value
through profit and loss are recognised
in the statement of profit and loss.

B. Derivative financial instruments

The company holds derivative
financial instruments such as foreign
exchange forward and option
contracts to mitigate the risk of
changes in exchange rates on foreign
currency exposures. The counterparty
for these contracts is generally a bank.
Although the company believes that
these derivatives constitute hedges
from an economic perspective,

they may not qualify for hedge
accounting under Ind AS 109,
Financial Instruments. Any derivative
that is either not designated a hedge,
or is so designated but is ineffective
as per Ind AS 109, is categorized as a
financial asset or financial liability, at
fair value through profit or loss.
Derivatives not designated as hedges
are recognized initially at fair value
and attributable transaction costs are
recognized in the statement of profit
and loss when incurred. Subsequent to
initial recognition, these derivatives are
measured at fair value through profit or
loss and the resulting exchange gains
or losses are charged to Statement of
Profit and Loss.

C. Equity Instruments

An equity instrument is any contract
that evidences a residual interest
in the assets of the Company
after deducting all of its liabilities.
Equity instruments are recorded at the
proceeds received. Incremental costs
directly attributable to the issuance
of equity instruments and buy back
of equity instruments are recognized
as a deduction from equity, net of any
tax effects.

(iii) Impairment of Financial Assets

Financial assets that are carried at
amortized cost and fair value through
other comprehensive income (FVOCI)
are assessed for possible impairments
basis expected credit losses taking into
account the past history of recovery, risk
of default of the counterparty, existing
market conditions etc. The impairment
methodology applied depends on whether
there has been a significant increase in
credit risk since initial recognition.
Expected Credit Losses are measured
through a loss allowance at an amount
equal to:

• 12-months expected credit losses
(expected credit losses that result from

those default events on the financial
instrument that are possible within 12
months after the reporting date); or
• Lifetime expected credit losses
(expected credit losses that result from
all possible default events over the life
of financial instruments).

For trade receivables or any contractual
right to receive cash or another financial
asset that result from transaction that are
within the scope of Ind AS 115 and Ind AS
116, the Company always measures the loss
allowance at an amount equal to lifetime
expected credit losses.

For all other financial assets, expected
credit losses are measured at an amount
equal to the 12-month ECL, unless there
has been a significant increase in credit risk
from initial recognition in which case those
are measured at lifetime ECL.

(iv) De-recognition

A financial asset (or, a part of a financial
asset) is primarily derecognized when:

(i) The contractual right to receive cash
flows from the financial assets expire, or

(ii) The company transfers the financial
assets or its right to receive cash
flow from the financial assets and
substantially all the risks and rewards
of ownership of the asset to another
party.

On de-recognition of a financial asset, the
difference between the asset's carrying
amount and the sum of the consideration
received/receivable is recognised in the
profit or loss.

A financial liability (or, a part of financial
liability) is derecognized when the
obligation specified in the contract is
discharged or cancelled or expires.

On de-recognition of a financial liability, the
difference between the carrying amount of
the financial liability de-recognised and the
consideration paid/payable is recognised
in profit or loss.

(v) Offsetting financial instruments

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

(vi) Write-off

The gross carrying amount of a financial
asset is written off when the Company has
no reasonable expectations of recovering
the financial asset in its entirety or a portion
thereof.

(xviii) Statement of Cash flows

The statement of cash flows is prepared
in accordance with the Indian Accounting
Standard (Ind AS) - 7 "Statement of Cash
flows" using the indirect method for
operating activities whereby profit for
the period is adjusted for the effects of
transaction of a non-cash nature, and
item of income or expenses associated
with investing or financing cash flows.
The cash flows from operating, investing
and financing activities of the company
are segregated. The Company considers all
highly liquid investments that are readily
convertible to known amounts of cash to
be cash equivalents.

(xix) Cash and cash equivalents

The Cash and cash equivalent in the balance
sheet comprise balance at banks and cash
on hand and short-term deposits with
original maturity period of three months
or less from the acquisition date, which are
subject to an insignificant risk of changes in
value.

(xx) Dividends

Final dividends on shares are recorded
as a liability on the date of approval by
the shareholders and interim dividends
are recorded as a liability on the date of
declaration by the Board of Directors.

2.4 Significant accounting judgements, estimates
and assumptions

The preparation of financial statements in conformity
with Indian Accounting Standards (Ind AS) require
management to make judgements, estimates and
assumptions in the application of accounting policies
that affect the reported amount of income, expenses,
assets and liabilities and disclosure of contingent
liabilities.

The estimates and associated assumptions are based
on historical experience and other factors that are
considered to be relevant. Actual results may differ
from these estimates. The estimates and underlying
assumptions are reviewed on an ongoing basis and
the effect of revision to accounting estimates is
recognized prospectively from the period in which
the estimate is revised.

The following are the areas of critical judgements,
estimates and assumptions that the management
has made in the process of preparation of Standalone
Financial Statements and that have the significant
effect on the amounts recognised in the Standalone
Financial Statements:

Useful lives of property, plant and equipment

The estimated useful lives of property, plant and
equipment are based on a number of factors including
the effects of obsolescence, internal assessment of
user experience and other economic factors (such as
the stability of the industry and known technological
advances) and the level of maintenance expenditure
required to obtain the expected future cash flows
from the asset. The Company reviews the useful life
of property, plant and equipment at the end of each
reporting date.

Defined benefit plans and other post-employment
benefits

The cost of the defined benefit plan and other
post-employment benefits and the present value
of such obligation are determined using actuarial
valuations. An actuarial valuation involves making
various assumptions that may differ from actual
developments in the future. These include the
determination of the discount rate, future, salary
increases and mortality rates etc. Due to the
complexities involved in the valuation and its
long-term nature, a defined benefit obligation is
highly sensitive to changes in these assumptions.
All assumptions are reviewed at each reporting date.

Provisions/Contingencies

Management judgement is required for estimating
the possible outflow of resources, if any, in respect of
contingencies/claims/litigations against the Company
as it is not possible to predict the outcome of pending
matters with accuracy. The Company annually assesses
such claims and monitors the legal environment on
an ongoing basis, with the assistance of external legal
counsel, wherever necessary.

Fair Value measurements

When the fair values of financial assets and financial
liabilities recorded in the Balance Sheet cannot be
measured based on quoted prices in active markets,
their fair values are measured using valuation
techniques, including the discounted cash flow model,
underlying asset model, comparable companies
multiple method and comparable transaction method
which involve various judgements and assumptions.

Current tax and Deferred tax

Significant judgement is required in determination
of provision for current tax and deferred tax e.g.
determination of taxability of certain incomes and
deductibility of certain expenses etc. The carrying
amount of income tax assets/liabilities is reviewed
at each reporting date. The factors used in estimates
may differ from actual outcome which could lead to
signification adjustment to the amounts reported in
financial statements.

Inventories

Management estimates the net realizable values of
inventories, taking into account the most reliable
evidence available at each reporting date. The future
realization of these inventories may be affected by
market driven changes.

2.5. Current - non-current classification

All assets and liabilities have been classified as current
and non-current on the basis of the following criteria:

Assets

An asset is classified as current when it satisfies any of
the following criteria:

a) it is expected to be realised in, or is intended for
sale or consumption in, the company's normal
operating cycle;

b) it is held primarily for the purpose of being
traded;

c) it is expected to be realised within 12 months
after the reporting date; or

d) It is cash or cash equivalent unless it is restricted
from being exchanged or use to settle a liability
for at least 12 months after the reporting date.
Current assets include the current portion of
non-current financial assets.

All other assets are classified as non-current.

Liabilities

A liability is classified as current when it satisfies
any of the following criteria:

a) it is expected to be settled in the company's
normal operating cycle;

b) it is held primarily for the purpose of
trading;

c) it is due to be settled within 12 months after
the reporting date; or

d) There is no unconditional right to defer
settlement of the liability for at least 12
months after the reporting date. Terms of
a liability that could, at the option of the
counterparty, result in its settlement by the
issue of equity instruments do not affect its
classification.

Current liabilities include current portion of
non-current financial liabilities.

All other liabilities are classified as
non-current

Operating cycle

Operating cycle is the time between the
acquisition of assets for processing/servicing
and their realization in cash or cash equivalents.
The normal operating cycle is considered as
twelve months.

. Applicability of new and revised Ind AS

Ministry of Corporate Affairs ("MCA") notifies new
accounting standards or amendments to the existing
standards under Companies (Indian Accounting
Standards) Rules as issued from time to time.
As at March 31, 2025, MCA has not notified any new
standards or amendments to the existing standards
applicable to the Company.

b) Terms/rights attached to equity shares

Company has only one class of equity shares having a par value of H2 each (Post sub-division of equity shares).
Each holder of equity shares is entitled to one vote per share. The dividend (if any) proposed by the Board of Directors
is subject to the approval of the shareholders in the ensuing Annual General Meeting except in case of interim dividend.
In the event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets
of the Company, after distribution of all preferential amounts. The distribution will be in proportion to the number of
equity shares held by the shareholders.

Note (i): Update regarding sub-division of equity Shares (New Face Value H2 per equity share):

(a) Pursuant to approval granted by the Shareholders of HEG Limited through Postal Ballot on 20-09-2024, for the Sub-Division of
one (1) equity share of HEG Limited ('Company') of Face Value of H10 each into five (5) equity shares of Face Value of H2 each,
necessary post sub-division credits have been made to the shareholders holding shares in demat form as on record date through
NSDL/CDSL system and new share certificates have been issued to the shareholders having shares in physical form. Record Date
for the said Sub-Division was 18-10-2024.

(b) As a result of above said sub-division, Promoter/Promoter Group shareholding has been changed from 2,15,27,974 equity shares
of Face Value of H10 each to 10,76,39,870 equity shares of Face Value of H2 each (Ratio 5 : 1). Pre and Post sub-division holding
percentage is appearing same i.e. 55.78%. There was no change in percentage holding of Promoter/Promoter Group.

(c) Total paid up share capital (in equity shares) has been changed from 3,85,95,506 equity shares of Face Value of H10 each to
19,29,77,530 equity shares of Face Value of H2 each. There was no change in paid up share capital (Pre and Post sub-division of
equiry shares) in Rupees i.e. H38,59,55,060.

Note (ii): Update regarding Promoter/Promoter Group shareholding:

(a) Redrose Vanijya LLP (Formerly known as Redrose Vanijya Private Limited) has shown as share holder of 28.95% by way
of acquisition of 5,58,73,775 shares from promoter group companies through off market transfer pursuant to Scheme of
Arrangement approved by Hon'ble NCLT, Kolkata Bench, therefore became member of promoter group of HEG Limited pursuant
to provisions of Regulation 2 (1) (q) of SEBI SAST Regulations, 2011 read with Regulation 2 (1) (pp) (iii) of SEBI ICDR Regulations,
2018. The Promoter Group Companies of HEG Limited amalgamated pursuant to above NCLT Order were Bharat Investment
Growth Limited, Dreamon Commercial Private Limited, Giltedged Industrial Securities Limited, Investors India Limited, India
Texfab Marketing Limited, Jet (India) Private Limited, LNJ Financial Services Limited, M.L. Finlease Private Limited, Purvi Vanijya
Niyojan Limited, Raghav Commercial Limited and Shashi Commercial Company Limited. In this regard, necessary disclosures
under the SEBI (SAST) Regulations, 2011 and the SEBI (PIT) Regulations, 2015 have already been made to BSE Limited and National
Stock Exchange of India Limited alongwith the required explanation.

(b) As a result of the above said Scheme of Arrangement duly sanctioned by Hon'ble NCLT, Kolkata Bench, the above said 11 (Eleven)
Promoter Group Companies of HEG Limited were amalgamated into Redrose Vanijya LLP (Formerly known as Redrose Vanijya
Private Limited). The same has been disclosed in the shareholding pattern for year ended 31^st March, 2025 under the Category
"Statement showing shareholding pattern of the Promoter and Promoter Group”.

1 O • r-m Ý Ý Ý I

Note 37: Segment information

The Company's Chief Operational Decision Makers consisting of Executive whole time director (CEO) examines the
Company's performance both from product and geographic perspective and has identified two segments, i.e., Graphite
electrodes (including other carbon products) and Power. The business segments are monitored separately for the purpose
of making decisions about resource allocation and performance assessment.

The reportable segments are:

• Graphite Electrodes (including other carbon products)- The segment comprises of manufacturing of graphite
electrodes.

• Power Generation - The segment comprises of generation of power for sale.

Segment measurement

The measurement principles for segment reporting are based on Ind AS 108. Segment's performance is evaluated based
on segment revenue and profit/loss from operating activities. Operating revenues and expenses related to both third party
and inter-segment transactions are included in determining the segment results of each respective segment.

Inter segment transactions are carried out at arm's length price.

6) The Company's major sales are export based which is diversified in different countries and no single customer
contributes more than 10% of the total Company's revenue in 2024-25 and 2023-24

7) The Company has business operations only in India and does not hold any non current asset outside India.

8) For the purpose of reporting as per the requirements of Ind AS 108 'Operating Segments', until the last financial
year, the 'Power Segment' comprised of two Thermal Power Plants having total capacity of 63 MW at Mandideep,
Bhopal (MadhyaPradesh) and a Hydro Power Plant having capacity of 13.5 MW at Tawa Nagar, District Hoshangabad
(Madhya Pradesh). Keeping in view the intended future use of the Thermal Power Plants exclusively to meet the power
requirement of graphite business, the thermal power plants have been considered as a part of 'Graphite Segment'
w.e.f. current financial year. Further the Hydro Power Plant is considered a separate segment and is being continued to
be disclosed under 'Power segment' for reporting as per Ind AS 108 'Operating Segments', Accordingly, Previous year
figures relating to these have been rearranged/regrouped, wherever considered necessary, to make them comparable
with those of current year.

(B) Defined benefit plan

The Company sponsors funded defined benefit plan for qualifying employees. This defined benefit plan of gratuity is
administered by a separate trust that is legally separate from the entity. The trust is responsible for investment policy with
regard to the assets of the trust and the contributions are invested in a scheme with Life Insurance Corporation of India (LIC)
as permitted by Law. The management of fund is entrusted with the LIC. The liability for employee gratuity is determined
on actuarial valuation using projected unit credit method.

These plans typically expose the Company to actuarial risks such as Investment risk, Interest rate risk, Longevity risk and
Salary risk.

(i) Investment risk

The probability or likelihood of occurrence of losses related to the expected return on investment. if the actual return on
plan assets is below the expected return, it will create plan deficit.

(ii) Interest risk

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

(iii) Longevity risk

The present value of defined benefit plan liability is calculated by reference to the best estimate of the mortality of plan
participants. An increase in the life expectancy of the plan participants will increase the plans liability.

(iv) Salary risk

The present value of defined benefit plan is calculated with the assumption of salary increase rate of plan participants
in future. Deviation in rate of increase in salary in future for plan participants from the rate of increase in salary used to
determine the present value of obligation will have a bearing on the plan's liability.

The following table set out the funded status of the gratuity plan and amounts recognised in the balance sheet:

Note 45: Financial instruments and risk management
45A. Capital management

The Company's objective when managing capital are to:

(i) Safeguard their ability to continue as a going concern, so that they can continue to provide returns for shareholders
and benefits for other stakeholders, and

(ii) Maintain an optimal capital structure to reduce the cost of capital

In order to maintain or adjust the capital structure, the Company may adjust the amount of dividends paid to
shareholders, return capital to shareholders, issue new shares or sell assets to reduce debt.

The Company monitors capital using a gearing ratio, which is net debt (net of cash and cash equivalents) divided by
total equity.

The Company is not subject to any externally imposed capital requirements.

(ii) Loan covenants:

In order to achieve overall objective of capital management, amongst other things, the management aims to ensure
that it meets financial covenants attached to the loans and borrowings. The management carefully negotiates the
terms and conditions of the loans and ensures adherence to all the financial covenants. Breaches in meeting the
financial covenants would permit the bank to call loans and borrowings or charge some penal interest. There have
been no breaches in the loan covenants of in respect of loans and borrowings during the year ended March 31,2025
and March 31,2024.

Fair value of cash and short-term deposits, trade and other short term receivables, trade payables, other current liabilities,
short term loans from banks and other financial institutions approximate their carrying value largely due to the short-term
maturities of these instruments.

(b) Fair value measurement

The fair value of the financial assets and liabilities is the amount at which the instrument could be exchanged in a current
transaction between willing parties, other than in a forced or liquidation sale. This section explains the judgements and
estimates made in determining the fair values of the financial instruments. To provide an indication about the reliability
of inputs used in determining fair values, the Company has classified its financial instruments into three levels prescribed
under the accounting standards.

The Company uses the following hierarchy for determining and disclosing the fair value of the financial instruments by
valuation techniques:

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

Level 2: Other techniques for which all the inputs have a significant effect on the recorded fair values are observable, either
directly or indirectly.

Level 3: Techniques which use inputs that have a significant effect on the recorded fair value that are not based on observable
market data.Sensitivity of Level 3 Financial Instruments is insignificant.

The following methods and assumptions were used to estimate the fair values:

Quoted equity investments: Fair value is derived from quoted market prices in active markets.

Investments in mutual funds/ fixed maturity Plans/bond funds: Fair value is determined by reference to quotes from
the financial institutions, i.e. net asset value (NAV) declared by fund house.

Investment in market linked non-convertible debentures: Fair value is determined by reference to valuation provided
by CRISIL.

Investment in infrastructure trust: Fair value is derived on the basis of valuation certificate by independent professional
based on net asset at fair value approach, in this approach the net asset at fair value is used to capture the fair value of
these investments.

Derivative contracts: The Company has entered into foreign currency contracts to manage its exposure to fluctuations
in foreign exchange rates. These financial exposures are managed in accordance with the Company's risk management
policies and procedures. Fair value of derivative financial instruments are determined using valuation techniques based on
information derived from observable market data, i.e., mark to market values determined by the authorised dealers banks.

Note 45C Financial risk management

This note explains the risk which Company is exposed to and policies and framework adopted by the Company to manage
these risks.

The Company's principal financial liabilities comprise borrowings, trade and other payables and the main purpose of these
financial liabilities is to manage finances for the day to day operations of the Company. The Company's principal financial
assets include trade and other receivables, and cash and bank balances that arise directly from its operations.

The Company is exposed to market risk, credit risk and liquidity risk. The Company's senior management oversees the
management of these risks. The Board of Directors reviews and approves policies for managing each of these risks, which
are summarized below.

(A) Market risk:

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes
in market prices. Market risk comprises three types of risk: currency risk, interest rate risk and other price risk, such as
equity price risk and commodity risk. Financial instruments affected by market risk include loans and borrowings, deposits,
investments, and derivative financial instruments. The sensitivity of the relevant profit or loss item is the effect of the
assumed changes in respective market risks.

(i) Foreign currency risk:

Foreign currency risk is the risk that the fair value of future cash flows of an exposure will fluctuate because of changes in
foreign exchange rates. Company is exposed to foreign exchange risk arising from foreign currency transactions, primarily
with respect to USD and EURO. The Company uses foreign currency forward contracts to hedge its risks associated with
foreign currency fluctuations relating to accounts receivable and accounts payable. The use of foreign currency forward
contracts is governed by the Company's strategy approved by the Board of Directors, which provide principles on the use
of such forward contracts consistent with the Company's Risk Management Policy. The Company does not use forward
contracts for speculative purposes.

(iii) Security price risk:

(a) Price risk:

The Company manages the surplus funds majorly through investments in debt based fixed maturity plans, mutual fund
schemes, equity instruments and infrastructure trust. The price of investment in Fixed Maturity Plans, mutual fund schemes
is reflected through net asset value (NAV) declared by the asset management Company on daily basis as reflected by the
movement in the NAV of invested schemes. The price of investment in equity instruments is reflected through price listed on
stock exchange. The price of investment in infrastructure trust is reflected through valuation certificate by the independent
professional on quarterly basis where valuation is determined based on fair value of assets of trust as on date of valuation.
The Company is exposed to price risk on such Investments.

(B) Credit risk:

Credit risk arises from the possibility that the counterparty will default on its contractual obligations resulting in financial
loss to the Company. The Company is exposed to credit risk from its operating activities (primarily trade receivables, loans to
employees and security deposits). Credit risk on cash and cash equivalents, other bank balances is limited as the Company
generally invests in deposits with banks and financial institutions with high credit ratings assigned by credit rating agencies.
The Company's credit risk in case of all other financial instruments is negligible.

To manage this, the Company periodically assesses the financial reliability of customers, taking into account the financial
conditions, current economic trends, and analysis of historical bad debts and ageing of accounts receivable.

The Company considers the probability of default upon initial recognition of assets and whether there has been a significant
increase in credit risk on an ongoing basis through each reporting period.

The Company's major sales are export based which is diversified in different countries and none of the customer contributes
10% or more of the total Company's revenue for the financial year 2024-25 and 2023-24

(C) Liquidity risk:

Liquidity risk is defined as the risk that Company will not be able to settle or meet its obligation on time or at a reasonable
price. The financial liabilities of the Company, other than derivatives, include loans and borrowings, trade and other
payables. The Company's principal sources of liquidity are cash and cash equivalents and the cash flow that is generated
from operations. The Company's treasury department is responsible for liquidity, funding as well as settlement management.
In addition, processes and policies related to such risk are overseen by senior management. Management monitors the
Company's net liquidity position through rolling, forecast on the basis of expected cash flows.

Prudent liquidity risk management implies maintaining sufficient availability of standby funding through an adequate line
up committed credit facilities to meet financial obligations as and when due.

Note 52

The Company has taken borrowings from banks on the basis of security of current assets. The quarterly returns/statements

filed by the Company with the banks are in agreement with the books of account.

Note 53: Disclosures required as per Schedule III to the Companies Act,2013

(i) The Company did not have any transaction with companies struck off under Section 248 of the Companies Act, 2013
or section 560 of Companies Act, 1956 during the financial year.

(ii) No proceeding have been initiated or pending against the Company for holding any benami property under the
Benami Transactions (Prohibition) Act, 1988 (45 of 1988).

(iii) The Company has not been declared as wilful defaulter by any bank or financial Institution or other lender.

(iv) No funds that have been advanced or loaned or invested (either from borrowed funds or share premium or any
other sources or kind of funds) by the Company to or in any other persons or entities, including foreign entities
("Intermediaries"), with the understanding, whether recorded in writing or otherwise, that the Intermediary shall
directly or indirectly lend or invest or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

(v) No funds have been received by the Company 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 directly or indirectly
lend or invest in other persons or entities in any manner whatsoever by or on behalf of the funding party ("Ultimate
beneficiaries") or provide ny guarantee, security or the like on behalf of the ultimate beneficiaries.

(vi) During the financial year, the Company has not traded or invested in Crypto currency or virtual currency.

(vii) The Company does not have any charge or satisfaction thereof which is pending for registration with ROC beyond the
statutory period.

(viii) The Company has utilised the borrowings from banks and financial institutions for the specific purpose for which it
was taken.

(ix) The Company did not have any long-term contracts including derivative contracts for which there were any material
foreseeable losses.

(x) The Company does not have any 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, survey
or any other relevant provisions of the Income Tax Act, 1961.

Note 54:

The Board of Directors of the Company at its meeting held on 22 May 2024 had approved the Composite Scheme of

Arrangement amongst HEG Limited ("the Company") and HEG Graphite Limited ("Resulting Company") and Bhilwara Energy

Limited ("Transferor Company") and their respective shareholders and creditors ("Scheme").

The proposed Scheme inter alia provides for:

(a) the demerger of the Demerged Undertaking (i.e. Graphite Business) from the Company into the Resulting Company
on a going concern basis and issue of equity shares by the Resulting Company to the shareholders of the Company in
consideration thereof, and

(b) amalgamation of the Transferor Company with the Company and issue of equity shares by the Company to the
shareholders of the Transferor Company (except the Company itself) in consideration thereof. The Appointed Date
for the Scheme is 1^st April 2024.

Thereafter, the Company had filed the requisite application with the stock exchanges (viz. BSE Limited and National Stock
Exchange of India Limited) under Regulation 37 of the listing Regulations ("Regulation 37 Application").

Taking into consideration the business needs, the board of directors of the Transferor Company vide its resolution dated 10
March 2025 has approved the execution of definitive agreements in connection with the issue of further shares to proposed
investors.

In view of the aforesaid, the companies involved in the Scheme have modified the Scheme basis SEBI's observation, after
taking into account, inter alia, the updated valuation reports issued by the registered valuer and fairness opinion issued by
the merchant banker on the modified scheme.

The Company has thereafter filed fresh Regulation 37 application with the stock exchanges in relation to the modified
Scheme. The Scheme is, inter alia, subject to receipt of approval from the statutory and regulatory authorities, including
BSE Limited, National Stock Exchange of India Limited, jurisdictional National Company Law Tribunal and the shareholders
and creditors (as applicable) of the Companies involved in the Scheme.

Pending receipt of final approvals, no adjustments have been made in the financial statements for the year ended
31^st March 2025.

See accompanying notes to the standalone financial statements

As per our report of even date attached For and on behalf of the Board of Directors

For SCV & Co. LLP Ravi Jhunjhunwala Riju Jhunjhunwala Manish Gulati

Chartered Accountants Chairman, Managing Director & CEO Vice Chairman Executive Director

Firm Regn. No. 000235N/N500089 DIN: 00060972 DIN: 00061060 DIN: 08697512

Sunny Singh Shekhar Agarwal Satish Chand Mehta

Partner Director Director

Membership No. 516834 DIN: 00066113 DIN: 02460558

Ravi Kant Tripathi Vivek Chaudhary

Place : Noida(U.P) Chief Financial Officer Company Secretary

Date : May 19, 2025 Membership No. A13263