m) Provisions and Contingent liabilities:

Provisions are recognised when there is a present Legal or constructive obligation that can be estimated reliably, as a
result of a past event, when it is probable that an outflow of resources embodying economic benefits will be required to
settle the obligation and a reliable estimate can be made of the amount of the obligation. Provisions are not recognised
for future operating losses.

Any reimbursement that the Company can be virtually certain to collect from a third party with respect to the obligation
is recognised as a separate asset. However, this asset may not exceed the amount of the related provisions.

Provisions are reviewed at each reporting date and adjusted to reflect the current best estimate. If it is no longer probable
that an outflow of economic resources will be required to settle the obligation, the provisions are reversed. Where the
effect of the time value of money is material, provisions are discounted using a current pre-tax rate that reflects, where
appropriate, the risks specific to the liability. When discounting is used, the increase in the provisions due to the passage
of time is recognised as a finance cost.

Where it is not probable that an inflow or an outflow of economic resources will be required, or the amount cannot be
estimated reliably, the asset or the obligation is not recognised in the statements of balance sheet and is disclosed as a
contingent asset or contingent liability. Possible outcomes on obligations/rights, whose existence will only be confirmed
by the occurrence or non-occurrence of one or more future events, are also disclosed as contingent assets or contingent
liabilities.

n) Taxes on income:

Tax expense comprises of current and deferred tax. Current income tax is measured at the amount expected to be paid to
the tax authorities in accordance with the Income Tax Act, 1961. Current tax includes taxes to be paid on the profit earned
during the year and for the prior periods.

Deferred income taxes are provided based on the balance sheet approach considering the temporary differences be¬
tween the tax bases of assets and liabilities and their carrying amounts for financial reporting purposes at the reporting
date.

Deferred tax is measured based on the tax rates and the tax laws enacted or substantively enacted at the balance sheet
date. Deferred tax assets are recognised only to the extent that there is reasonable certainty that sufficient future taxable
income will be available against which such deferred tax assets can be realised. In situations where the Company has
unabsorbed depreciation or carry forward tax losses, all deferred tax assets are recognised only if it is probable that they
can be utilised against future taxable profits.

The carrying amount of deferred tax assets are reviewed at each balance sheet date. The Company writes-down the
carrying amount of a deferred tax asset to the extent that it is no longer probable that sufficient future taxable income
will be available against which deferred tax asset can be realised. Any such write-down is reversed to the extent that it
becomes reasonably certain that sufficient future taxable income will be available.

Deferred tax assets and deferred tax liabilities have been offset wherever the Company has a legally enforceable right
to set-off current tax assets against current tax liabilities and where the deferred tax assets and deferred tax liabilities
relate to income tax levied by the same taxation authority. The power generating assets in the Company are entitled for
certain income tax benefits in the form of an income tax exemption for the proportion of profits earned by these assets,

as specified in the income tax regulations of the underlying geography. The Company has not recognised deferred tax
on temporary differences relating to depreciation which originate and reverse during the tax holiday period and on the
unutilised tax losses which are not eligible to be carried forward after the tax holiday period.

o) Fair value measurement:

The Company measures financial instruments at fair value at each balance sheet date.

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction be¬
tween market participants at the measurement date. The fair value measurement is based on the presumption that the
transaction to sell the asset or transfer the liability takes place either in the principal market for such asset or liability, or
in the absence of a principal market, in the most advantageous market which is accessible to the Company.

The fair value of an asset or a liability is measured using the assumptions that market participants would use when pricing
the asset or liability, assuming that market participants act in their economic best interest.

A fair value measurement of a non-financial asset takes into account a market participant's ability to generate economic
benefits by using the asset in its highest and best use or by selling it to another market participant that would use the
asset in its highest and best use.

The Company uses valuation techniques that are appropriate in the circumstances and for which sufficient data are
available to measure fair value, maximising the use of relevant observable inputs and minimising the use of unobservable
inputs.

All assets and liabilities for which fair value is measured or disclosed in the standalone financial statements are catego¬
rized within the fair value hierarchy, described as follows, based on the lowest level input that is significant to the fair
value measurement as a whole:

a. Level 1 - Quoted (unadjusted market prices) in active markets for identical assets or liabilities.

b. Level 2 - Valuation techniques for which the lowest level input that is significant to the fair value measurements is
directly or indirectly observable.

c. Level 3 - Valuation techniques for which the lowest level input that is significant to the fair value measurement is
unobservable.

p) 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.

Financial assets:

a) Initial recognition and measurement:

All financial assets are recognised initially at fair value plus, in the case of financial assets not recorded at fair
value through profit or loss (FVTPL) transaction costs that are attributable to the acquisition of the financial asset.
However, trade receivables that do not contain a significant financing component are measured at transaction price.
Transaction costs of financial assets carried at FVTPL are expensed in Statement of Profit and Loss. Purchases or
sales of financial assets that require delivery of assets within a time frame established by regulation or convention
in the market place (regular way trades) are recognised on the trade date, i.e., the date that the Company commits
to purchase or sell the asset.

b) Subsequent measurement:

For subsequent measurement, financial assets are classified into following categories:

a. Financial assets at amortised cost

Financial assets are measured at amortised cost if the assets meet the following conditions (and are not des¬
ignated as FVTPL):

• they are held within a business model whose objective is to hold the financial assets and collect its
contractual cash flows, and

• the contractual terms of the financial assets give rise to cash flows that are solely payments of principal
and interest on the principal amount outstanding

After initial recognition, these are measured at amortised cost using the effective interest method.

b. Financial assets at FVTPL

Financial assets held within a different business model other than 'hold to collect' or 'hold to collect and sell'
are categorised at FVTPL. Further, irrespective of the business model used, financial assets whose contractual
cash flows are not solely payments of principal and interest are accounted for at FVTPL.

Assets in this category are measured at fair value with gains or losses recognised in profit or loss. The fair
values of financial assets in this category are determined by reference to active market transactions or using a
valuation technique where no active market exists.

Equity instruments/investment in mutual funds:

Equity instruments/Mutuat funds in the scope of Ind AS 109 are measured at fair value. The classification is
made on initial recognition and is irrevocable. Subsequent changes in the fair values at each reporting date are
recognised in the Statement of Profit and Loss.

All equity investments in subsidiaries are measured at cost less diminution other than temporary. All other eq¬
uity investments in scope of Ind AS 109 are measured at fair value. Equity investments which are held for trad¬
ing are classified as FVTPL. For all other equity investments, the Company may make an irrevocable election
to present in OCI subsequent changes in fair value. The Company makes such election on an instrument-by-in¬
strument basis. The classification is made on initial recognition and is irrevocable. If the Company decides to
classify an equity instrument as at FVOCI, then all fair value changes on the instrument, excluding dividends,
are recognized in OCI. There is no recycling of amounts from OCI to P&L, even on sale of investment. Howev¬
er, the Company may transfer the cumulative gain/loss within equity. Equity instruments included within the
FVTPL category are measured at fair value with all changes recognized in the Statement of Profit and Loss.
De-recognition:

A financial asset or where applicable, a part of a financial asset is primarily derecognised when:

i. The rights to receive cash flows from the asset have expired, or

ii. The Company has transferred its rights to receive cash flows from the asset or has assumed an obligation
to pay the received cash flows in full without material delay to a third party under a 'pass-through'
arrangement and either (a) the Company has transferred substantially all the risks and rewards of the
asset, or (b) the Company has neither transferred nor retained substantially all the risks and rewards of
the asset, but has transferred control of the asset.

When the Company has transferred its rights to receive cash flows from an asset or has entered into
a pass-through arrangement, it evaluates if and to what extent it has retained the risks and rewards of
ownership. When it has neither transferred nor retained substantially all of the risks and rewards of the
asset, nor transferred control of the asset, the Company continues to recognise the transferred asset to
the extent of the Company's continuing involvement.

Impairment of financial assets:

In accordance with Ind AS 109, the Company applies expected credit loss (ECL) model for measurement
and recognition of impairment loss on the debt instruments, that are measured at amortised cost e.g.,
loans, debt securities, deposits, trade receivables and bank balance.

Expected credit loss is the difference between all contractual cash flows that are due to the Company in
accordance with the contract and all the cash flows that the entity expects to receive.

The management uses a provision matrix to determine the impairment loss on the portfolio of trade and
other receivables. Provision matrix is based on its historically observed expected credit loss rates over the
expected life of the trade receivables and is adjusted for forward looking estimates.

Expected credit loss allowance or reversal recognised during the period is recognised as income or ex¬
pense, as the case may be, in the Statement of Profit and Loss. In case of balance sheet, it is shown as
reduction from the specific financial asset.

Financial liabilities:

a) Initial recognition and measurement:

At initial recognition, all financial liabilities are recognised at fair value and in the case of loans, bor¬
rowings and payables, net of directly attributable transaction costs.

b) Subsequent measurement:

i. Financial liabilities at FVTPL:

Financial liabilities at FVTPL include financial liabilities held for trading and financial liabilities
designated upon initial recognition as at FVTPL. Gain or losses on liabilities held for trading are

recognised in the Statement of Profit and Loss.

The Company has not designated any financial liability at FVTPL.

ii. Financial liabilities at amortised cost:

Amortised cost, in case of financial liabilities with maturity more than one year, is calculated by
discounting the future cash flows with effective interest rate. The effective interest rate amor¬
tisation is included as finance costs in the Statement of Profit and Loss.

Financial liability with maturity of less than one year is shown at transaction value.

c) De-recognition:

A financial liability is derecognised when the obligation under the liability is discharged or cancelled
or expires. The difference between the carrying amount of a financial liability that has been extin¬
guished or transferred to another party and the consideration paid, including any non-cash assets
transferred or liabilities assumed, is recognised in profit or loss as other income or finance costs.

q) Financial guarantee contracts:

A financial guarantee contract is a contract that requires the issuer to make specified payments to reimburse the holder
for a loss it incurs because a specified debtor fails to make payment when due in accordance with original or modified
terms of a debt instrument.

The Company measures any financial guarantee on initial recognition at their fair value.

Subsequently these contracts are measured at the higher of:

a. the amount of the loss allowance determined as per impairment requirements of Ind AS 109,
and

b. the amount initially recognised, less where appropriate, cumulative amount of income recognised in accordance
with the principles of Ind AS 115.

r) Derivatives financial instruments:

The Company uses derivative financial instruments such as forward exchange contracts to hedge its risk associated with
foreign currency fluctuations. Such derivative financial instruments are initially recognised at contract/agreed rate on the
date on which a derivative contract is entered into and are subsequently re-measured at fair value. Derivatives are carried
as financial assets when the fair value is positive and as financial liabilities when the fair value is negative.

Any gains or losses arising from changes in the fair value of derivatives are taken directly to the Statement of Profit and
Loss.

s) Non-current assets (or disposal groups) held for sale and discontinued operations (refer note 39):

Non-current assets (or disposal groups) are classified as held for sale if their carrying amount will be recovered princi¬
pally through a sale transaction rather than through continuing use and a sale is considered highly probable. They are

measured at the lower of their carrying amount and fair value less costs to sell, except for assets such as deferred tax
assets, assets arising from employee benefits, financial assets and contractual rights under insurance contracts, which
are specifically exempt from this requirement.

An impairment loss is recognised for any initial or subsequent write-down of the asset (or disposal group) to fair value
less costs to sell. A gain is recognised for any subsequent increases in fair value less costs to sell of an asset (or disposal
group), but not in excess of any cumulative impairment loss previously recognised. A gain or loss not previously rec¬
ognised by the date of the sale of the non-current asset (or disposal group) is recognised at the date of de-recognition.
Non-current assets (including those that are part of a disposal group) are not depreciated or amortised while they are
classified as held for sale. Non-current assets classified as held for sale are presented separately from the other assets
in the balance sheet.

A discontinued operation is a component of the entity that has been disposed of or is classified as held for sale and that

represents a separate major line of business or geographical area of operations, is part of a single co-ordinated plan to
dispose of such a line of business or area of operations, or is a subsidiary acquired exclusively with a view to resale. The
results of discontinued operations are presented separately in the statement of profit and loss.

t) Cash flow statement:

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

u) Share based employee remuneration

The Company operates equity-settled share-based remuneration plans for its employees. None of the Company's plans
are cash-settled.

All goods and services received in exchange for the grant of any share-based payment are measured at their fair values.
Where employees are rewarded using share-based payments, the fair value of employees' services is determined indi¬
rectly by reference to the fair value of the equity instruments granted. This fair value is determined with the assistance of
an external valuer at the grant date and excludes the impact of non market vesting conditions (for example profitability
and sales growth targets and performance conditions).

Non-market vesting conditions are included in assumptions about the number of options that are expected to become
exercisable. Estimates are subsequently revised if there is any indication the number of share options expected to vest
differs from previous estimates. Any adjustment to cumulative share-based compensation resulting from a revision is
recognised in the current period. The number of vested options ultimately exercised by holder does not impact the
expense recorded in any period. Market conditions are taken into account when estimating the fair value of the equity
instruments granted.

All share-based remuneration is recognised as an expense in profit or loss with a corresponding credit to share based
payment reserve. If vesting periods or other vesting conditions apply, the expense is allocated over the vesting period,
based on the best available estimate of the number of share options expected to vest.

Upon exercise of share options, the proceeds received, net of any directly attributable transaction costs, are allocated
to share capital up to the nominal (or par) value of the shares issued with any excess being recorded as share premium.

v) Recent pronouncements

Ministry of Corporate Affairs (“MCA”) notifies new standards or amendments to the existing standards under

Companies (Indian Accounting Standards) Rules as issued from time to time:

Application of new standards and amendments

MCA has announced certain amendments to Ind AS 1, Presentation of Financial Statements, Ind AS 21 - Effects of Chang¬
es in Foreign Exchange Rates, Ind AS 12, , International Tax Reform - Pillar Two Model Rules, Ind AS 7, Statement of Cash
Flows and Ind AS 107, Financial Instruments - Disclosures, which are effective during the current year. These amend¬
ments do not have any material impact on the Company's financial statements.

New standards and amendments to existing Standards which are issued but are not yet effective

MCA has notified amendments to Ind AS 1 - Classification of Liabilities as Current or Non-current liabilities
with Covenants which is effective for annual reporting beginning on or after 1 April 2026 retrospectively in
accordance with the Ind AS 8.

The Company has reviewed the amendments and based on its evaluation has determined that they do not
expect to have any significant impact in its financial statements.

b) Terms/rights attached to equity shares

The Company has only one class of equity shares having a face value of '1/- per share (31 March 2025: '1/-
per share) with one vote per share. The Company declares and pays dividends in Indian rupees. The dividend
proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General
Meeting.

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.

A Nature and purpose of reserves:

(a) Capital redemption reserve

Capital redemption reserve was created in earlier years for the purpose of redemption of preference
shares and for buy-back of equity shares. The Company uses capital redemption reserve for transactions in
accordance with the provisions of the Act.

(b) Securities premium

The amount received in excess of face value of the equity shares is recognised in securities premium. This
reserve is utilised in accordance with the provisions of the Act.

(c ) General reserve

General reserve is used from time to time to transfer profits from retained earnings for appropriation
purposes. This reserve is freely available for use by the Company.

(d) Surplus in Statement of Profit and Loss

Surplus in Statement of Profit and Loss represents the profits that the Company has earned till date, less
any transfers to general reserve, dividends or other distribution to shareholders.

(e) Share based payment reserve: The Company has share option schemes under which options to subscribe
for the Company's shares have been granted to certain executives and senior employees. The share-
based payment reserve is used to recognise the value of equity-settled share-based payments provided to
employees, including key management personnel, as part of their remuneration.

(f) Actuarial gain/(loss) on employment benefits

The reserve represents the remeasurement gains/(losses) arising from the actuarial valuation of the
defined benefit obligations of the Company. The remeasurement gains/(losses) are recognized in other
comprehensive income and accumulated under this reserve within equity. The amounts recognized under
this reserve are not reclassified to Statement of Profit and Loss.

Details of security and other terms of borrowings:

(a) Loans repayable on demand represents cash credit facility availed from banks and carry an interest Linked to the
respective Bank's prime/base lending rates, ranging from 9.20% to 10.20% per annum (31 March 2025: 9.30% to
10.20% per annum). The said facility is secured by hypothecation of all chargeable current assets of the Company,
including raw materials, work-in-progress, finished goods, stores and spares and receivables both present and
future and rank pari pasu with the other lenders. The facility is further secured by a pari pasu second charge on
all fixed assets of the Company both present and future.

18 Provisions (cont'd)

(a) Gratuity

The Company provides for gratuity for its employees as per the Payment of the Gratuity Act, 1972. Employees
who are in continuous service for a period of 5 years are eligible for gratuity. The amount of gratuity payable on
retirement/termination is equivalent to employee's 15 days of last drawn basic salary for each completed years
of service. The gratuity plan is partly funded as at 31 March 2026 and 31 March 2025. Gratuity liability is being
contributed to Group Gratuity Cash Accumulation plans managed by the Life Corporation of India (LIC).

The following table sets out the reconciliation of opening and closing balances of the present value and defined
benefit obligation:

(x) On 21 November 2025, the Government of India notified four Labour Codes, effective immediately, replacing
the existing 29 labour legislations. In accordance with Ind AS 19 - "Employee Benefits” and the guidance
issued by the Institute of Chartered Accountants of India,changes to employee benefit plans arising from
legislative amendments are treated as plan amendments, requiring immediate recognition of past service
cost in the statement of profit and loss. The incremental impact of these changes, assessed by the Company,
on the basis of the information available, resulted in estimated one time increase in provision towards gratuity
and leave encashment by '195.37 lakhs and '60.91 lakhs, respectively and the same has been recognised
as an employee benefit expense in the current reporting period. The company continues to monitor the
developments pertaining to labour codes and will evaluate the impact, if any, on the measurement of
liabilities pertaining to employee benefits.

(ii) The carrying amounts of trade receivables, trade payabtes and cash and cash equivalents are considered to
be the same as their fair values, due to their short-term nature. Difference between carrying amounts and fair
values of bank deposits, earmarked balances with banks, other financial assets, other financial liabilities and
borrowings subsequently measured at amortised cost is not significant in each of the years presented. For att
other amortised cost instruments, carrying value represents the best estimate of fair value.

(iii) Valuation technique used to determine fair value:

The Company's finance team performs valuations of financial items for financial reporting purposes, including
Level 3 fair values, in consultation with third party valuation specialists for complex valuations. Valuation
techniques are selected based on the characteristics of each instrument, with the overall objective of maximising
the use of market-based information.

a. The fair values of the quoted shares are based on price quotations at or near the reporting dates.

b. The fair value of unquoted equity shares are based on the Net Assets Value, available for Equity Shareholders
of the underlying Companies which was ascertained based on data available from the financial statements
of the respective Companies.

c. The fair vatue of quoted mutuat funds, unquoted non-convertibte debentures are based on the statements
received from the undertying funds or the depository agent.

d. Management has assessed the fair value of the borrowings, which approximate their current value largely
since they are carried at ftoating rate of interest.

(iv) Fair Value hierarchy:

Financiat assets and financiat tiabitities measured at fair vatue in the batance sheet are grouped into three Levets
of a fair value hierarchy. The three levels are defined based on the observability of significant inputs to the
measurement, as follows:

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

Level 2: Inputs other than quoted prices included within Level 1 that are observable for the asset or liability,
either directly or indirectly.

Level 3: Unobservable inputs for the asset or liability.

(v) Fair Value hierarchy (continued):

The following table shows the Levels within the hierarchy, of financial assets and liabilities measured at fair
value on a recurring basis as at 31 March 2026 and 31 March 2025:

(b) Claims against the Company not acknowledged as debts:

(i) As of 31 March 2026, the Company is a party to an ongoing dispute in respect of cross-subsidy charges Levied
by the power utility authority of the State of Telangana, which is presently pending with the Honourable High
Court of the State of Telangana. In respect of the claim of '5,427.20 (31 March 2025: '1,486.00) management
has re-assessed, and it continues to beLieve a favourabLe outcome of the proceedings. AccordingLy, no
further adjustments were considered in the accompanying standalone financial statements.

(ii) During the earlier years, the Northern Power Distribution Company of Telangana Limited (NPDCL) levied a
Grid Support Charge (GSC) on the Company, the underlying grounds of which is duly and rightfully contested
by way of an appeal with the Hon'ble High Court of Telangana. The Hon'ble High Court has granted an
interim stay order subject to payment of 50% of the principal duty demand amounting to '1,560, which has
been duLy paid by the Company. Based on the facts of the case and its internaL assessment, as a matter
of prudence, the Company has recorded the LiabiLity demanded towards principaL duty in the financiaL
statements for the year ended 31 March 2022. Based on the legal opinion obtained by the management
and the assessment carried out in consuLtation with internaL LegaL counseL, management beLieves that the
likelihood of crystallization of liability demanded towards interest amounting to '8,689.60, as claimed
by NPDCL, is remote. Accordingly, no further adjustments have been considered necessary in the
accompanying standalone financial statements. A similar claim was lodged by Eastern Power Distribution
Company of Andhra Pradesh Limited for a sum of '163.09 which is also contested by the Company.

(iii) Pursuant to the income tax assessment for the years mentioned beLow, the Company had received
various demands from the income tax authorities in relation to the inadmissibility of certain expenditure
in accordance with the provisions of the income tax law and compliances with the arm's length guidelines
in reLation to internationaL transactions with associated enterprises. The management, on the basis of its
internal assessment of the facts of the case, the underlying nature of transactions, the history ofjudgements
made by the various appeLLate authorities and the necessary advise received from the independent expert
engaged in this regard, is of the view that the probabiLity of the case being settLed against the Company
is remote and accordingLy do not foresee any adjustment to the financiaL statements in this regard. The
details of the relevant financial year which is subject to the dispute and the amount of demand along with
the interest and penaLties demanded is as foLLows:

35 Financial Risk Management objectives and policies:

The Company is exposed to financial risks arising from its operations and the use of financial instruments. The
key financial risks include market risk, credit risk and liquidity risk. The Company's risk management policies are
established to identify and analyse the risks faced by the Company and seek to, where appropriate, minimize potential
impact of the risk and to control and monitor such risks. There has been no change to the Company's exposure to
these financial risks or the manner in which it manages and measures the risks.

The following sections provide details regarding the Company's exposure to the financial risks associated with financial
instruments held in the ordinary course of business and the objectives, policies and processes for management of
these risks.

(i) Market risk

The Company is exposed to market risk primarily related to interest rate risk, currency rate risk and other price
risks, such as equity risk. Thus, the Company's exposure to market risk is a function of investing and borrowing
activities and revenues generated and operating activities in foreign currencies.

a) Interest rate risk:

Interest rate risk is the risk that the fair value or future cash flows of the Company and the Company's financial
instruments will fluctuate because of changes in market interest rates. The Company's exposure to interest rate
risk relates primarily to the floating interest rate borrowings. The Company's investment in deposits with banks,
deposits with others, investments in bonds and non convertible debentures with fixed interest rates and therefore
do not expose the Company to significant interest rate risk. Further, the loans extended by the Company carries
a fixed interest rate and therefore not subject to interest rate risk since neither the carrying value nor the future
cash flows will fluctuate because of the change in market interest rates.

b) Foreign Currency Risk:

Currency risk is the risk that the value of a financial instrument will fluctuate due to changes in foreign exchange
rates. The Company's exposure to the risk of change in foreign exchange rates relates primarily to the Company's
operating activities (when revenue or expense is denominated in foreign currency) and financing activities.

The Company has transactional currency exposures arising from services provided or availed that are
denominated in a currency other than the functional currency. The foreign currencies in which these transactions
are denominated are mainly in US Dollars ($). The Company's trade receivable and trade payable balances at the
end of the reporting period have similar exposures.

The Company does use financial derivatives such as foreign currency forward contracts and swaps.

c) Other price risk

Other price risk is the risk that the fair value or future cash flows of the Company's financial instruments will
fluctuate because of changes in market prices (other than those arising from interest rate risk or currency risk),
whether those changes are caused by factors specific to the individual financial instrument or its issuer or by
factors affecting all similar financial instruments traded in the market.

The Company based on working capital requirement keeps its liquid funds in current accounts. Excess funds are
invested in current investments. The Company has listed and non-listed equity securities that are susceptible
to market price risk arising from uncertainties about future values of the investment securities. The Company
manages the equity price risk through diversification and reports on the equity portfolio are submitted to the
management on a regular basis.

The following table demonstrates the sensitivity to the impact of increase/(decrease) of the index on the
Company's equity and profit for the period. The analysis is based on the assumption that index has increased or

decreased by 10%, with all other variables held constant and that the Company's equity instruments moved in
line with the index.

(ii) Credit risk:

Credit risk is the risk of Loss that may arise on outstanding financial instruments when a counterparty defaults
on its obligations. The Company's exposure to credit risk arises primarily from loans extended, security deposits,

balances with bankers, investments in bonds, non-convertible debentures and fixed deposits other than banks
and trade and other receivables. The Company minimises credit risk by dealing exclusively with high credit rating
counterparties. The Company's objective is to seek continual revenue growth while minimising losses incurred due
to increased credit risk exposure. The Company trades only with recognised and creditworthy third parties. It is the
Company's policy that all customers who wish to trade on credit terms are subject to credit verification procedures.
In addition, receivable balances are monitored on an ongoing basis with the result that the Company's exposure
to bad debts is not significant.

a) Exposure to credit risk:

At the end of the reporting period, the Company's maximum exposure to credit risk is represented by the carrying
amount of each class of financial assets recognised in the statement of financial position. No other financial
assets carry a significant exposure to credit risk.

b) Credit risk concentration profile:

At the end of the reporting period, there were no significant concentrations of credit risk. The maximum exposures
to credit risk in relation to each class of recognised financial assets is represented by the carrying amount of
each financial assets as indicated in the balance sheet.

c) Financial assets, other than trade receivables:

None of the Company's cash equivalents, other bank balances, loans, security deposits and other receivables
were past due or impaired as at 31 March 2026 and 31 March 2025. The credit risk in respect of cash balances
held with banks, deposits with banks and short-term investments are managed via diversification, and are only
with major reputable banks / financial institutions. Other financial assets represents security deposits given and
other assets. Credit risk associated with such deposits and other assets is relatively low.

^d) Trade receivables:

The Company applies the Ind AS 109 simplified model of recognising lifetime expected credit losses for all
trade receivables as these items do not have a significant financing component. In measuring the expected
credit losses, the trade receivables have been assessed on a collective basis as they possess shared credit risk
characteristics.

They have been grouped based on the days past due and also according to the geographical Location of customers.
The expected loss rates are based on the payment profile for sales over the past 48 months before 31 March
2026 and 31 March 2025 respectively as well as the corresponding historical credit losses during that period.
The historical rates are adjusted to reflect current and forwarding looking macroeconomic factors affecting the
customer's ability to settle the amount outstanding. However given the short period exposed to credit risk, the
impact of these macroeconomic factors has not been considered significant within each annual reporting period.
On the above basis no expected credit loss on the unsecured considered good receivables has been provided in
the accompanying financial statements.

(iii) Liquidity risk:

Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they become due.
The Company manages its liquidity risk by ensuring, as far as possible, that it will always have sufficient liquidity
to meet its liabilities when due, under both normal and stressed conditions, without incurring unacceptable
losses or risk to the Company's reputation.

Management monitors rolling forecasts of the Company's liquidity position (comprising the undrawn borrowing
facilities) and cash and cash equivalents on the basis of expected cash flows.

The table below summarises the maturity profile of the Company's financial liabilities based on contractual
undiscounted payments as of 31 March 2026:

36 Segment Information

In accordance with Indian Accounting Standard (Ind AS) 108 on "Operating Segments”, segment information has been
disclosed in the consolidated financial statements of the Company, and therefore no separate disclosure on segment
information is given in these standalone financial statements.

37 Capital management

Capital includes equity capital and aLL other reserves attributable to the equity holders of the parent. The primary
objective of the capital management is to ensure that it maintain an efficient capital structure and healthy capital ratios
in order to support its business and maximise sharehoLder's vaLue. The Company manages its capitaL structure and
make adjustments to it, in light of changes in economic conditions or its business requirements. To maintain or adjust
the capital structure, Company may adjust the dividend payment to shareholders, return capital to shareholders or
issue new shares.

The Company monitors capital using a debt to capital employed ratio which is debt divided by total capital plus debt. The
Company's policy is to keep this ratio at an optimal level to ensure that the debt related covenants are complied with.

Notes:

A Movement in current ratio is primarily due to an increase in current assets as of 31 March 2026 when compared
with 31 March 2025, driven by higher investments made from dividend income and buy back proceeds received
from a foreign subsidiary.

B Movement in debt equity ratio, debt service coverage, return on equity ration, net profit ration, and return on
capital employed ratio is primarily on account of increase in profit during the year on account of exceptional item.

C Movement in trade payables ratio is primarily on account of increase in average trade payables during the year
ended 31 March 2026

D Movement in the return on investment ratio driven primarily by an increase in liquid fund investments, classified
at FVTPL as at the reporting date, which were held for only a portion of the financial year

E Movement in the inventory turnover ratio is primarily driven by an increase in the cost of goods sold, resulting
from higher raw material prices, during the year ended 31 March 2026.

F Movement in trade receivables turnover ratio is due to increase in sales during the year ended 31 March 2026.

39 Discontinued operations

Pursuant to a resolution passed at their meeting held on 2 March 2020, the Board of Directors have resolved to
cease the sugar operations of the Company at its sugar manufacturing facility located at Samalkot, Andhra Pradesh,
('Sugar division') after completion of the crushing season during March 2020, owing to non-availability of sugar cane
and unviable sugar operations. The Board of Directors have also resolved to dispose the non-current assets of the
said sugar division comprising of the underlying land available in Samalkot and the assets pertaining to the sugar
manufacturing facility. Accordingly, these non-current assets have been classified as assets held for sale in these
financial statements as at and for the years ended 31 March 2026 and 31 March 2025. Further, owing to the aforesaid
resolution, the financial performance of the sugar division have been presented as discontinued operations in the
Statement of Profit and Loss for the years ended 31 March 2026 and 31 March 2025 in accordance with the provisions
of Ind AS 105 - Non-Current Assets Held for Sale and Discontinued Operations.

d) Pursuant to the overall plan of disposal of the non-current assets of the sugar division at Samatkot, management
has already commenced necessary actions in this regard by assessing the realisable values of the underlying
plant and equipment and certain buildings located in the said sugar manufacturing facility by engaging an

independent valuer and by seeking necessary quotations from independent prospects. On the basis of the
aforesaid exercise, management has already recorded an impairment charge of 560.85 towards a diminution in
the carrying values of these assets held for sate and is confident of being able to sett these assets by the financial
year ending 31 March 2027 Further, in accordance with the aforesaid plan, management has also accordingly
re-ctassified the carrying values of land and certain other buildings as property, plant and equipment in these
standalone financiat statements in accordance with the accounting principtes.

40 Post reporting date events

The finat dividend recommended by the directors is subject to the approvat of sharehotders in the ensuing generat
meeting (Refer Note 14B).

No adjusting or significant non-adjusting events have occurred between the reporting date and the date of
authorisation of these standatone financiat statements.

41 Disclosure pursuant to requirements of Rule 11(e) (i) & (ii) of the Companies (Audit and Auditors) Rules, 2014:

(A) Utilisation of Borrowed funds and share premium

For the year ended 31 March 2026:

(i) Detaits of funds that have been advanced or toaned 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 person(s) or entity(ies),
inctuding foreign entities ("Intermediaries”) with the understanding, whether recorded in writing or
otherwise, that the Intermediary shatt tend or invest in party identified by or on behatf of the Company
(Uttimate Beneficiaries) is as under:

c) Relevant provisions of the Foreign Exchange Management Act, 1999 (42 of 1999) and Companies Act have
been duly complied.

(ii) The Company has not received any fund from any person(s) or entity(ies), including foreign entities (Funding
Party) with the understanding (whether recorded in writing or otherwise) that the Company shall: (a) directly
or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of
the Funding Party (Ultimate Beneficiaries) or (b) provide any guarantee, security or the like on behalf of the
Ultimate Beneficiaries.

41 Disclosure pursuant to requirements of Rule 11(e) (i) & (ii) of the Companies (Audit and Auditors) Rules, 2014:

(B) For the year ended 31 March 2025:

(i) Details of 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 person(s) or entity(ies),
including foreign entities ("Intermediaries”) with the understanding, whether recorded in writing or
otherwise, that the Intermediary shall lend or invest in party identified by or on behalf of the Company
(Ultimate Beneficiaries):

(a) date and amount of fund advanced or loaned or invested in Intermediaries with complete details of each
Intermediary :

c) Relevant provisions of the Foreign Exchange Management Act, 1999 (42 of 1999) and Companies Act have
been duly complied.

(ii) The Company has not received any fund from any person(s) or entity(ies), including foreign entities (Funding
Party) with the understanding (whether recorded in writing or otherwise) that the Company shall: (a) directly
or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of
the Funding Party (Ultimate Beneficiaries) or (b) provide any guarantee, security or the like on behalf of the
Ultimate Beneficiaries.

42. Share Based Payments

As at 31 March 2026, the Company has one equity-settled share-based payment scheme for employee remuneration,
namely the Nava Restricted Stock Unit Plan 2023 ("Nava RSU 2023”).

The Company has instituted the Nava Restricted Stock Unit PLan 2023 ("Nava RSU 2023”), which has been formulated
and approved by the Board of Directors and the Nomination and Remuneration Committee ("NRC”). The objective of the
PLan is to reward employees for their performance and contribution to the growth and success of the Company, and to
attract, motivate, and retain talent by providing employees an opportunity to participate in the equity of the Company.
The PLan is non-market-Linked and provides for time-based vesting, subject to continued employment of the participants
over the vesting period. The PLan became effective from the date of its adoption by the NRC and shall remain in force until aLl
RSUs granted under the PLan are exercised, Lapse, or are otherwise extinguished, unLess terminated earLier by the NRC.
Each RSU entitLes the hoLder to receive one equity share of the Company upon vesting and exercise. The vested RSUs
are exercisabLe within a period of 90 days from the respective vesting date.

The RSUs vest over a period of four years from the date of grant, in the foLLowing proportions: 20% at the end of the
first year, 20% at the end of the second year, 25% at the end of the third year, and 35% at the end of the fourth year.

The foLLowing tabLe iLLustrates the number and weighted average exercise prices (WAEP) of, and movements in, share
options during the year:

43 Disclosures pursuant to the requirement as specified under Paragraph 6(L)(ix)(a) and (b) of the General
Instruction for preparation as per Balance Sheet of Schedule III to the Act:

Working capital facility with consortium of banks is secured against all the chargeable current assets of the
Company, both present and future. To comply with the provisions of the loan arrangement, select information
relating to trade receivables, inventories, and creditors for purchases are furnished to the lenders on a
quarterly basis. No differences were noted in the quarterly returns or statements filed by the Company with
banks upon comparison with the books of accounts during the year ended 31 March 2026 and 31 March 2025.

44 In the previous year, the Ministry of Corporate Affairs (MCA) has prescribed a new requirement under the proviso
to Rule 3(1) of the Companies (Accounts) Rules, 2014 inserted by the Companies (Accounts) Amendment Rules 2021
requiring companies, which uses accounting software for maintaining its books of account, shall use only such
accounting software which has a feature of recording audit trail of each and every transaction, creating an edit log of
each change made in the books of account along with the date when such changes were made and ensuring that the
audit trail cannot be disabled.

The Company uses an accounting software for maintaining its books of account, which has the capability to record
an audit trail (edit log) of transactions. The audit trail (edit log) feature at the application level was enabled and
operated throughout the current and previous financial years. The audit trail (edit log) feature at the database level
was enabled with effect from 14 March 2026. The users of the Company, except for authorized personnel, do not
have access to database IDs with Data Manipulation Language (DML) authority, which can make direct data changes
(create, change, delete) at the database level. Furthermore, the audit trail has been preserved by the Company as per
the statutory requirements for record retention.

45 Exceptional item represents gain of '40,253.62 lakhs recognised pursuant to the buy back of equity shares by its
subsidiary "Nava Global Pte. Ltd. (formerly Nava Bharat (Singapore) Pte. Ltd.) and an amount of '141.33 lakhs being
profit on transfer of investment in subsidiary "Nava Resources CI” to "Nava Global Pte Ltd”

46 Additional disclosures

(i) No proceedings have been initiated on or are pending against the Company for holding benami property under
the Benami Transactions Prohibition) Act, 1988 (45 of 1988) and Rules made thereunder.

(ii) The Company have not been declared wilful defaulter by any bank or financial institution or government or any
government authority.

(iii) No transactions are carried out with companies struck off under section 248 of the Act or section 560 of
Companies Act, 1956.

(iv) The Company has complied with the number of layers prescribed under the Companies Act, 2013.

(v) The Company has not entered into any scheme of arrangement which has an accounting impact on current or
previous financial year.

(vi) There is no income surrendered or disclosed as income during the current or previous year in the tax
assessments under the Income Tax Act, 1961, that has not been recorded in the books of account.

(vii) The Company has not traded or invested in crypto currency or virtual currency during the current or previous
year.

(viii) There are no charges or satisfaction which are yet to be registered with the registrar of companies beyond the
statutory period.

(ix) There was no revaluation of Property, plant and equipment and Intangible assets carried out by the Company
during the respective reporting periods.