A provision is recognized when an enterprise has
a present obligation (legal or constructive) as a
result of past event; it is probable that an outflow of
resources will be required to settle the obligation, in
respect of which a reliable estimate can be made.
Provisions are determined based on best estimate
required to settle the obligation at the balance sheet
date, taking into account the risks and uncertainties
surrounding the obligation. These are reviewed at
each balance sheet date and adjusted to reflect
the current best estimates. Where a provision is
measured using the cash flows estimated to settle
the present obligation, its carrying amount is the
present value of those cash flows (when the effect
of the time value of money is material). When some
or all of the economic benefits required to settle a
provision are expected to be recovered from a third
party, a receivable is recognised as an asset if it is
virtually certain that reimbursement will be received
and the amount receivable can be measured
reliably.

A contingent liability is a possible obligation that
arises from past events whose existence will be
confirmed by the occurrence or non-occurrence
of one or more uncertain future events beyond the
control of the Company or a present obligation that
is not recognized because it is not probable that an
outflow of resources will be required to settle the
obligation or the amount of the obligation cannot be
measured with sufficient reliability. The Company
does not recognize a contingent liability but
discloses its existence in the financial statements.

Provisions for warranty-related costs are
recognized when the products are sold. Provision
is estimated based on historical experience and/or
technical estimates. The estimate of such warranty-
related costs is reviewed on a annual basis.

Present obligations arising under onerous contracts
are recognised and measured as provisions. An
onerous contract is considered to exist where
the Company has a contract under which the
unavoidable costs of meeting the obligations
under the contract exceed the economic benefits
expected to be received from the contract.

Provisions for the costs to restore leased assets to
their original condition, as required by the terms and
conditions of the lease, are recognised when the
obligation is incurred, either at the commencement
date or as a consequence of having used the
underlying asset during a particular period of
the lease, at the Company’s best estimate of the
expenditure that would be required to restore
the assets. Estimates are regularly reviewed and
adjusted as appropriate for new circumstances.

1.3.15 Borrowing Costs

Borrowing Costs include interest, amortisation of
ancillary costs incurred and exchange differences
arising from foreign currency borrowings to the
extent they are regarded as an adjustment to the
borrowing costs. Borrowing Costs, allocated to
and utilised for qualifying assets, pertaining to the
period from commencement of activities relating to
construction / development of the qualifying asset
up to the date the asset is ready for its intended use
is added to the cost of the assets. Capitalisation
of Borrowing Costs is suspended and charged to
the Statement of Profit and Loss during extended
periods when active development activity on the
qualifying assets is interrupted. All other borrowing
costs are expensed in the period they occur.

1.3.16 Earnings Per Share

Basic Earnings Per Share is calculated by dividing
the net profit or loss for the year attributable to equity
shareholders by the weighted average number of
equity shares (including equivalent number of equity
shares on conversion of compulsorily convertible
preference shares) outstanding during the year.

The weighted average number of equity shares
outstanding during the year and for all years
presented is adjusted for events, such as bonus
shares, other than the conversion of potential
equity shares, that have changed the number of
equity shares outstanding, without a corresponding
change in resources. For the purpose of calculating
diluted earnings per share, the net profit or loss for
the year attributable to equity shareholders and the
weighted average number of shares outstanding
during the year is adjusted for the effects of all
dilutive potential equity shares.

Employees of the Company receive remuneration
in the form of share-based payments, whereby
employees render services as consideration for
equity instruments (equity-settled transactions).

The cost of equity-settled transactions is
determined by the fair value at the date when the
grant is made using an appropriate valuation model.

That cost is recognised, together with a
corresponding increase in share-based payment
(SBP) reserves in equity, over the year in which the
performance and/or service conditions are fulfilled
in employee benefits expense. The cumulative
expense recognised for equity settled transactions
at each reporting date until the vesting date reflects
the extent to which the vesting year has expired
and the Company’s best estimate of the number
of equity instruments that will ultimately vest. The
expense or credit in the statement of profit and loss
for a year represents the movement in cumulative
expense recognised as at the beginning and end of
that period and is recognised in employee benefits
expense.

Service and non-market performance conditions
are not taken into account when determining the
grant date fair value of awards, but the likelihood
of the conditions being met is assessed as part
of the Company’s best estimate of the number of
equity instruments that will ultimately vest. Market
performance conditions are reflected within the
grant date fair value. Any other conditions attached
to an award, but without an associated service
requirement, are considered to be non-vesting
conditions. Non-vesting conditions are reflected in
the fair value of an award and lead to an immediate
expensing of an award unless there are also service
and/or performance conditions.

No expense is recognised for awards that do not
ultimately vest because non-market performance
and/or service conditions have not been met. Where
awards include a market or non-vesting condition,
the transactions are treated as vested irrespective
of whether the market or non-vesting condition is
satisfied, provided that all other performance and/
or service conditions are satisfied.

1.3.18 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.

A. Financial assets

i. 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,
transaction costs that are attributable to the
acquisition of the financial asset.

Trade receivables that do not contain a
significant financing component or for which
the Company has applied the practical
expedient are measured at the transaction
price determined under Ind AS 115. Refer
accounting policy on ‘Revenue from contracts
with customers’.

ii. Subsequent measurement

For purposes of subsequent measurement,
financial assets are classified in four categories:

a. Financial assets at amortised cost

b. Financial assets at fair value through other
comprehensive income (OCI)

c. Financial assets at fair value through profit or
loss

d. Equity instruments measured at Fair Value
Through Other Comprehensive Income

a. Financial assets at amortised cost

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

• The asset is held within a business
model whose objective is to hold assets
for collecting contractual cash flows,
and

• Contractual terms of the asset give rise
on specified dates to cash flows that
are solely payments of principal and
interest (SPPI) on the principal amount
outstanding.

After initial measurement, such financial
assets are subsequently measured at
amortised cost using the Effective Interest
Rate (EIR) method. Amortised cost is
calculated by taking into account any
discount or premium on acquisition and fees
or costs that are an integral part of the EIR.
The EIR amortisation is included in finance
income in the profit or loss. The losses arising
from impairment are recognised in the profit
or loss. This category generally applies to
trade and other receivables.

b. Financial assets at fair value through other
comprehensive income

A financial asset is subsequently measured
at fair value through other comprehensive
income if both the following conditions are
met:

• The asset is held within a business
where the objective is achieved by both
collecting contractual cash flows and
selling financial assets and

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

After the initial measurement, such financial
assets are subsequently measured at fair value
at each reporting date. Fair value movement
are recognised in the other comprehensive
income and impairment are recognised in
statement of profit & loss. On derecognition,
gains and losses accumulated in OCI are
reclassified to profit or loss.

c. Financial assets at fair value through profit
or loss

A financial assets which is not classified
in any of the above categories are
subsequently fair valued through profit
or loss.

d. Equity instruments measured at Fair Value
Through Other Comprehensive Income

All equity investments in scope of Ind-AS 109
are measured at fair value. Equity instruments
which are held for trading are classified as at
fair value through profit or loss. For all other
equity instruments, the Company decides
to classify the same either as at Fair value
through other comprehensive income or fair
value through profit or loss. The Company
makes such election on an instrument-by¬
instrument basis. The classification is made
on initial recognition and is irrevocable.

If the Company decides to classify an
equity instrument as at fair value through
other comprehensive income, then all fair
value changes on the instrument, excluding
dividends, are recognized in the OCI. There is
no recycling of the amounts from OCI to P&L,
even on sale of investment. However, the
Company may transfer the cumulative gain
or loss within equity.

Equity instruments included within the fair
value through profit or loss category are
measured at fair value with all changes
recognized in the Statement of Profit and
Loss.

iii. De-recognition

A financial asset (or, where applicable, a part of
a financial asset or part of a Company of similar
financial assets) is primarily de-recognised when:

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

• the Company has transferred substantially all
the risks and rewards of the asset.

iv. 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 following financial assets and credit
risk exposure:

• Financial assets that are debt instruments, and
are measured at amortised cost e.g., loans,
debt securities, deposits, trade receivables
and bank balance

The Company follows ‘simplified approach’ for
recognition of impairment loss allowance on
Trade receivables.

The application of simplified approach does
not require the Company to track changes in
credit risk. Rather, it recognises impairment
loss allowance based on lifetime ECLs at each
reporting date, right from its initial recognition.

Lifetime ECL are the expected credit losses
resulting from all possible default events over the
expected life of a financial instrument. ECL is the
difference between all contractual cash flows
that are due to the Company in accordance with
the contract and all the cash flows that the entity
expects to receive, discounted at the original
EIR. When estimating the cash flows, an entity is
required to consider:

• All contractual terms of the financial
instrument (including prepayment, extension,
call and similar options) over the expected life
of the financial instrument. However, in rare
cases when the expected life of the financial
instrument cannot be estimated reliably, then
the entity is required to use the remaining
contractual term of the financial instrument

• Cash flows from the sale of collateral held or
other credit enhancements that are integral to
the contractual terms

ECL impairment loss allowance (or reversal)
recognized during the year is recognized as
income/ expense in the Statement of Profit and
Loss. This amount is reflected under the head ‘other
expenses’ in the Statement of Profit and Loss. The
presentation for various financial instruments in
the Balance Sheet is described below:

• Financial assets measured as at amortised
cost: ECL is presented as an allowance, i.e., as
an integral part of the measurement of those
assets in the balance sheet. The allowance
reduces the net carrying amount. Until the
asset meets write-off criteria, the Company
does not reduce impairment allowance from
the gross carrying amount.

For assessing increase in credit risk and
impairment loss, the Company combines

financial instruments on the basis of shared
credit risk characteristics with the objective of
facilitating an analysis that is designed to enable
significant increases in credit risk to be identified
on a timely basis.

B. Financial liabilities

i. Initial recognition and measurement

All financial liabilities are recognised initially at
fair value and, in the case of loans and borrowings
and payables, net of directly attributable
transaction costs.

The Company’s financial liabilities include trade
and other payables, loans and borrowings
including bank overdrafts and derivative
financial instruments.

ii. Subsequent measurement

The measurement of financial liabilities depends
on their classification, as described below:

Financial liabilities at fair value through profit
or loss

Financial liabilities at fair value through profit or
loss include derivatives, financial liabilities held for
trading and financial liabilities designated upon
initial recognition as at fair value through profit
or loss. Financial liabilities are classified as held
for trading if they are incurred for the purpose of
repurchasing in the near term. This category also
includes derivative financial instruments entered
by the Company that are not designated as hedging
instruments in hedge relationships as defined by
Ind AS 109. Separated embedded derivatives are
also classified as held for trading unless they are
designated as effective hedging instruments.

Gains or losses on liabilities held for trading are
recognised in the profit or loss.

Financial liabilities designated upon initial
recognition at fair value through profit or loss
are designated as such at the initial date of
recognition, and only if the criteria in Ind AS 109
are satisfied. For liabilities designated as FVTPL,
fair value gains/ losses attributable to changes in
own credit risks are recognized in the Statement
of Profit and Loss. These gains/ losses are not

subsequently transferred to Statement of Profit
and Loss. However, the Company may transfer
the cumulative gain or loss within equity. All
other changes in fair value of such liability are
recognised in the Statement of Profit and Loss.

Loans and borrowings

After initial recognition, interest-bearing loans
and borrowings are subsequently measured at
amortised cost using the EIR method. Gains and
losses are recognised in profit or loss when the
liabilities are derecognised as well as through
the EIR amortisation process.

Amortised cost is calculated by taking into
account any discount or premium on acquisition
and fees or costs that are an integral part of the
EIR. The EIR amortisation is included as finance
costs in the Statement of Profit and Loss.

De-recognition

A financial liability is derecognised when the
obligation under the liability is discharged or
cancelled or expires. When an existing financial
liability is replaced by another from the same
lender on substantially different terms, or the
terms of an existing liability are substantially
modified, such an exchange or modification
is treated as the de-recognition of the original
liability and the recognition of a new liability. The
difference in the respective carrying amounts is
recognised in the Statement of Profit and Loss.

Offsetting of 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 on a net basis, to realise the
assets and settle the liabilities simultaneously.

1.3.19 Equity

The transaction costs of an equity transaction are
accounted for as a deduction from equity (net of any
related income tax benefit) to the extent they are
incremental costs directly attributable to the equity
transaction that otherwise would have been avoided.
The transaction costs attributable to new issuance
of shares is deferred on the balance sheet and
recognized in equity once the instrument is issued.

1.3.20 Statement of Cash Flow

Statement of Cash flows are reported using the
indirect method, whereby profit / (loss) before tax
is adjusted for the effects of transactions of non¬
cash nature and any deferrals or accruals of past or
future cash receipts or payments. The cash flows
from operating, investing and financing activities of
the Company are segregated based on the available
information.

1.3.21 Cash and Cash Equivalents

Cash comprises cash on hand and demand deposits
with banks. Cash equivalents are short-term (with
an original maturity of three months or less from the
date of acquisition), highly liquid investments that are
readily convertible into known amounts of cash and
which are subject to insignificant risk of change in
value. Any cash or bank balance held for any specific
use is not considered as cash & cash equivalent.

1.3.22 Exceptional items

Exceptional items comprise income or expenses
arising from events or transactions that are
significant by virtue of their size, nature, or
incidence and are not expected to recur frequently
in the normal course of business. These items,
though arising from ordinary activities, are
considered exceptional when their separate
disclosure is necessary to enable users to obtain a
proper understanding of the Company’s financial
performance. Accordingly, such items are presented
separately in the Statement of Profit and Loss.

1.3.23 Recent pronouncements

Ministry of Corporate Affairs (“MCA”) notifies new
standards or amendments to the existing standards
under Companies (Companies (Indian Accounting
Standards) Rules as issued from time to time. During
the year ended March 31, 2026, MCA has notified
the Companies (Indian Accounting Standards)
Amendment Rules, 2025 and Companies (Indian
Accounting Standards) Second Amendment Rules,
2025, whereby MCA has amended certain Indian
Accounting standards which are applicable to the
company w.e.f. April 01, 2025.

The Company has reviewed the new
pronouncements and based on its evaluation has
determined that it does not have any significant
impact in its financial statements.

Notes :

(a) During the year ended March 31, 2026, the Company has completed Initial Public Offer (“IPO”) of 9,28,67,945 equity shares of face
value of ? 1 each at an issue price of ? 321 per share, comprising of fresh issue of 8,18,16,199 shares, out of which 8,17,16,199 equity
shares were issued at an offer price of ? 321 per equity share to all the allottees and 1,00,000 equity shares were issued at an offer
price of ? 291 per equity share, after a discount of ? 30 per equity share to employees aggregating to ? 2,626.00 crores and offer for
sale of 1,10,51,746 equity shares by the selling shareholders aggregating to ? 354.80 crores. Pursuant to the IPO, the equity shares of
the Company are listed on the National Stock Exchange (“NSE”) and Bombay Stock Exchange (“BSE”) on May 06, 2025.

(b) The Board of Directors of the Company vide their resolution dated July 04, 2024 approved the allotment of 9,07,236 Equity shares of ?
1 each (adjusted for Bonus Issuance) to Tarun Sanjay Mehta and Swapnil Babanlal Jain pursuant to exercise of stock options.

(c) The Board of Directors of our Company in its meeting held on June 18, 2024 and shareholders of our Company in the Extraordinary
General Meeting held on June 21, 2024 approved the issuance of bonus equity share of ? 1 each in the ratio of 260:1 and 224:1 for the
equity shares of ? 1 each and for the equity shares of ? 37 each respectively and also approved the sub-division of 3,530 equity shares
of ? 37 each into 1,30,610 equity shares of ? 1 each. The conversion ratio of the Compulsory Convertible Preference Shares into Equity
Shares and the employee stock options along with its price per option have been adjusted accordingly.

(d) The Board of Directors vide their resolution dated February 25, 2025 approved the conversion of 74,148 Series F CCPS
into 1,93,52,628 equity shares in the conversion ratio of 261:1 with the face value of X 1 each ranking pari-passu with
the existing equity shares of the Company (refer note 12.2.12 (vii)). Further, the Board of Directors vide their resolution
dated 08 March, 2025 approved the conversion of Compulsory Convertible Preference Shares (Series Seed One,
Series Seed Two, Series Seed Three and Series Seed Four), Series A, Series B, Series B1, Series C, Series C1, Series D,
Series E, Series E1, Series E2, Series Bonus CCPS and Series G classes of Compulsory Convertible Preference Shares
(“CCPS”) issued and allotted by the Company from time to time aggregating to 1,73,62,374 Outstanding CCPS of the
Company into 24,04,83,445 fully paid up equity shares of face value of X 1 each ranking pari-passu with the existing
equity shares of the Company (refer note 12.2.12 (viii) and (ix)).

(ii) Rights, preferences & restrictions attached to this class of share

Each holder of the equity shares is entitled to one vote per share and carries a right to dividends as and when declared
by the Company. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the
Company after distribution of all preferential amount, in proportion to their shareholding.

(ii) Rights, preferences & restrictions attached to the above 12.2.2 to 12.2.10 and 12.2.12 (except Series G) classes of
shares

(a) Preference share holders were entitled to receive a dividend at the rate of 0.001% per annum on each preference
share held by such holder, if declared by the Board of Directors. In the event the Company declares a dividend on
the Equity Shares at a rate which is higher than the rate mentioned herein, the holders of Preference Shares shall
be entitled to receive, in priority to the holders of Equity Shares, a dividend at a rate per preference share as would
equal the product of (i) the higher dividend rate payable on each equity share and (ii) the number of equity shares
issuable upon conversion of such preference share. All dividends to such shareholders shall be non-cumulative.

(b) On the occurrence of a liquidation event, the preference share holders were entitled to receive out of the
proceeds or assets of the Company available for distribution to its shareholders, on a pari passu basis and prior
and in preference to any distribution of proceeds of such liquidation event to the holders of equity shares by
reason of their ownership thereof, an amount per share equal to the sum of the applicable original issue price,
plus declared but unpaid dividends thereon.

(c) Preference shares were to be converted to such number of equity shares (refer note 12.2.12 (ix)), at the conversion
ratio then in effect:

• In the event the preference share holder requires Company to convert all or a part of such preference shares
held by such holder;

• upon the earlier of (i) the closing of an IPO, or (ii) the date, or the occurrence of an event, specified by vote or
written consent or agreement of the requisite number of investors.

• upon the date that is twenty (20) years after the date on which such series of Preference Shares were first
issued by the Company.

(d) Holders of preference shares enjoyed such voting rights available to the extent permissible under law, carry
voting rights as if the preference shares have been fully converted into equity shares. Each preference share shall
entitle the holder to the number of votes equal to the number of whole or fractional equity shares into which such
preference share could then be converted. If applicable law does not permit any holder of preference shares to
exercise voting rights on all or any matters submitted to the vote of the Shareholders of the Company (including
the holders of equity shares) (the “Non-Voting Preference Shares”), then until the conversion of all such Non¬
Voting Preference Shares into equity shares, each shareholder shall vote in accordance with the instructions of
the holders of such Non-Voting Preference Shares at a general meeting of the shareholders or provide proxies
without instructions to the holders of the Non-Voting Preference Shares for the purposes of a general meeting
of the shareholders, in respect of such number of equity shares held by each of them such that a relevant
percentage of the equity shares of the Company are voted in the manner required by the holders of the Non¬
Voting Preference Shares.

(iii) The Board of Directors of the Company in its meeting held on May 16, 2024 and shareholders of the Company in
the Extraordinary General Meeting held on May 28, 2024 approved the issuance of 74,148 Series F Compulsory
Convertible Preference Shares (“Series F CCPS”) with face value of X 1 per share at a premium of X 11,673 per share,
aggregating to X 11,674 per share for cash on preferential basis. The Board of Directors vide their resolution dated July
09, 2024 allotted 74,148 Series F - CCPS of face value of X 1 each with a premium of X 11,673 per share to the Promoters,
Tarun Sanjay Mehta and Swapnil Babanlal Jain, and considering the terms of the conversion of Series F CCPS linked
with achievement of internal rate of return, the same has been accounted as share based payments in accordance
“IND AS 102-Share-based Payment” under the head other equity (refer note 12.2.12 (vii)).

(iv) Rights, preferences & restrictions attached to the Series F CCPS

(a) Preference share holders were entitled to receive a dividend at the rate of 0.001% per annum on each preference
share held by such holder, if declared by the Board of Directors. In the event the Company declares a dividend on
the Equity Shares at a rate which is higher than the rate mentioned herein, the holders of Preference Shares were
entitled to receive, in priority to the holders of Equity Shares, a dividend at a rate per preference share as would
equal the product of (i) the higher dividend rate payable on each equity share and (ii) the number of equity shares
issuable upon conversion of such preference share. All dividends to such shareholders shall be non-cumulative.

(b) On the occurrence of a liquidation event, the preference share holders were entitled to receive out of the
proceeds or assets of the Company available for distribution to its shareholders, on a pari passu basis and prior
and in preference to any distribution of proceeds of such liquidation event to the holders of equity shares by
reason of their ownership thereof, an amount per share equal to the sum of the applicable original issue price,
plus declared but unpaid dividends thereon.

(c) Preference shares were to be converted up to a maximum of 1,93,52,628 equity shares (refer note 12.2.12. (vii))
upon meeting the conversion criteria upon occurrence of either of the following, whichever is earlier -

(i) An IPO of the Company prior to agreed date; or

(ii) An Exit Event as specified in the terms of issue of CCPS prior to the agreed date

(iii) upon the date that is twenty (20) years after the date on which such series of Preference Shares were first
issued by the Company.

(d) Holders of preference shares enjoyed such voting rights available to the extent permissible under law, carry
voting rights as if the preference shares have been fully converted into equity shares. Each preference share
entitled the holder to the number of votes equal to the number of whole or fractional equity shares into which
such preference share would be converted. If applicable law did not permit any holder of preference shares to
exercise voting rights on all or any matters submitted to the vote of the Shareholders of the Company (including
the holders of equity shares) (the “Non-Voting Preference Shares”), then until the conversion of all such Non¬
Voting Preference Shares into equity shares, each shareholder shall vote in accordance with the instructions of
the holders of such Non-Voting Preference Shares at a general meeting of the shareholders or provide proxies
without instructions to the holders of the Non-Voting Preference Shares for the purposes of a general meeting
of the shareholders, in respect of such number of equity shares held by each of them such that a relevant
percentage of the equity shares of the Company are voted in the manner required by the holders of the Non¬
Voting Preference Shares.

(v) The Board of Directors vide their resolution dated July 29, 2024 approved the issue of 1,65,28,925 Series G CCPS of
face value of X 10 each at a premium of X 353 per share to India - Japan Fund (Represented by and acting through
its investment manager, National Investment and Infrastructure Fund Limited). Further, our Board of Directors by the
resolution dated 04 September 2024, allotted 1,65,28,925 to Series G CCPS at an issue price of X 363 for an aggregate
consideration of X 600 crores. Considering the terms of the conversion of Series G CCPS into variable number of
equity shares, the same has been accounted as Financial liability under the head “Borrowings” in accordance with
IND AS 32 - Financial Instruments - Presentation” (refer note 12.2.12 (viii)).

(vi) Rights, preferences & restrictions attached to the Series G CCPS

(a) Preference share holders were entitled to receive a dividend at the rate of 0.001% per annum on each preference
share held by such holder, if declared by the Board of Directors. In the event the Company declared a dividend
on the Equity Shares at a rate which is higher than the rate mentioned herein, the holders of Preference Shares
were to be entitled to receive, in priority to the holders of Equity Shares, a dividend at a rate per preference share
as would equal the product of (i) the higher dividend rate payable on each equity share and (ii) the number of
equity shares issuable upon conversion of such preference share. All dividends to such shareholders shall be
non-cumulative.

(b) On the occurrence of a liquidation event, the preference share holders were entitled to receive out of the
proceeds or assets of the Company available for distribution to its shareholders, on a pari passu basis and prior
and in preference to any distribution of proceeds of such liquidation event to the holders of equity shares by
reason of their ownership thereof, an amount per share equal to the sum of the applicable original issue price,
plus declared but unpaid dividends thereon.

(c) Preference shares were to be converted up to a maximum of 3,18,26,050 equity shares (refer note 12.2.12 (viii)), at
the conversion ratio then in effect:

• In the event the preference share holder requires Company to convert all or a part of such preference shares
held by such holder;

• upon the earlier of (i) filing of UDRHP, or (b) a subsequent equity fund raise for a minimum amount of USD 75
million or (iii) the date, or the occurrence of an event, specified by vote or written consent or agreement of the
requisite number of investors.

(d) Holders of preference shares enjoyed such voting rights available to the extent permissible under law, carry
voting rights as if the preference shares have been fully converted into equity shares. Each preference share
entitled the holder to the number of votes equal to the number of whole or fractional equity shares into which
such preference share could then be converted. If applicable law does not permit any holder of preference
shares to exercise voting rights on all or any matters submitted to the vote of the Shareholders of the Company
(including the holders of equity shares) (the “Non-Voting Preference Shares”), then until the conversion of all
such Non-Voting Preference Shares into equity shares, each shareholder shall vote in accordance with the
instructions of the holders of such Non-Voting Preference Shares at a general meeting of the shareholders or
provide proxies without instructions to the holders of the Non-Voting Preference Shares for the purposes of a
general meeting of the shareholders, in respect of such number of equity shares held by each of them such that a
relevant percentage of the equity shares of the Company are voted in the manner required by the holders of the
Non-Voting Preference Shares.

(vii) The Board of Directors vide their resolution dated February 25, 2025 approved the conversion of 74,148 Series F CCPS
into 1,93,52,628 equity shares in the conversion ratio of 261:1 with the face value of X 1 each ranking pari-passu with the
existing equity shares of the Company.

(viii) The Board of Directors vide their resolution dated March 08, 2025 approved the conversion of 1,65,28,925 Series G
CCPS into 2,24,65,447 fully paid up equity shares of face value of X 1 each ranking pari-passu with the existing equity
shares of the Company.

(ix) Further, the Board of Directors vide their resolution dated March 08, 2025 approved the conversion of Series Seed
One, Series Seed Two, Series Seed Three, Series Seed Four, Series A, Series B, Series B1, Series C, Series C1, Series D,
Series E, Series E1, Series E2 and Series Bonus CCPS (collectively referred as “Outstanding CCPS”) issued and allotted
by the Company from time to time aggregating to 8,33,449 Outstanding CCPS of the Company into 21,80,17,998 fully
paid up equity shares of face value of X 1 each ranking pari-passu with the existing equity shares of the Company. The
conversion ratio for each of the series of CCPS is as below:

Nature and purpose of other reserve

(i) Securities Premium

Securities premium is used to record the premium received on issue of shares. It is utilised in accordance with the
provisions of the Companies Act, 2013.

(ii) Retained earnings

Retained earnings are the accumulated profits / (loss) earned by the Company till date, less transfer to general reserves,
dividend and other distributions made to the shareholders.

(iii) Stock Options Outstanding Reserve

The fair value of the equity-settled share based payment transactions with employees is recognised in statement
of profit and loss with corresponding credit to stock options outstanding reserve. The amount of cost recognised is
transferred to equity share capital and security premium on exercise of the related stock options.

Note:

Above amounts are net off unamortised borrowing costs.

(i) Terms and repayment:

(a) Secured term loans from banks and others carry interest rate ranging from 8.85% p.a to 9.5% p.a. These loans are
repayable in monthly / quarterly installments as per the terms of the respective loan agreements. Tenure of these
loans are ranging from 2.5 to 4 years.

(b) The Company has availed short term credit facilities in the form of working capital loans to meet the working capital
requirements of the Company and these facilities carry an floating interest from 8.4% p.a. to 10.5% p.a. These are
repayable on demand.

(ii) Term of security:

(a) Term loans and Working capital loans from banks:

Term Loan : First pari passu charge on Movable / Immovable Property, Plant and Equipment of the
company both present and future, Pari passu charge on brand and trademark/IPR/Intangibles of the
technology stock/product suite if any. Second pari passu charge on current assets both present and future.

Working Capital Loans : Pari passu charge on Current Assets of the company both present and future, Pari passu
charge on Brand and Trademark / IPR / Intangibles of the technology stock / product suite, Cash margin of 25% by
way lien on fixed deposits

(b) Non-convertible debentures

First Pari-passu charge on existing and future property, plant and equipment, Cash and cash equivalents & all
intellectual property rights, Second pari-passu charge on existing and future Current assets of the company which
has been released as on March 31, 2026.

(iii) Additional disclosures:

1. The Company has borrowings from banks on the basis of security of current assets and the statements of current
assets filed by the Company with banks are in agreement with the books of accounts.

2. The Company has utilised the borrowings for the purpose for which it was taken.

3. Charges or satisfaction of charges are registered with ROC within the statutory period, there are no charges or
satisfaction yet to be registered with ROC beyond the statutory period as at March 31, 2026.

4. The Company has not been declared wilful defaulter by any bank or financial institution or government or any
government authority.

NOTE - 30 IMPAIRMENT TESTING OF TANGIBLE ASSETS, INTANGIBLE ASSETS AND INTANGIBLES ASSETS
UNDER DEVELOPMENT

The Company does its impairment evaluation on an annual basis and based on such evaluation, the estimated
recoverable amount of the Cash Generating Unit (CGU) exceeded its carrying amount. For the purpose
of impairment testing, tangible assets, intangible assets (Product Design & Development) and intangible
assets under development are allocated to the CGU. For this, the Company as a whole is considered as CGU.

The recoverable amount of the above CGU has been determined based on ‘value in use’ model, where in
the value of cash generating unit is determined as a sum of the net present value of the projected post tax
cash flows for a period of 5 years and terminal value. The terminal value of cash generating unit is arrived at
by extrapolating cash flows of latest forecasted year to perpetuity using a constant long-term growth rate.

Determination of value in use involves significant estimates and assumptions that affect the reporting CGU’s expected
future cash flows. The Company has performed sensitivity analysis for all key assumptions and concluded that it is unlikely
to cause the carrying amount of the CGU exceed its estimated recoverable amount. The key assumptions used for the
calculations on an annual basis were as follows:”

(a) There are potential equity shares as on March 31, 2026 and March 31, 2025 in the form of stock options issued. As these are antidilutive,
they are ignored in the calculation of diluted earning per share and accordingly the diluted earning per share is the same as basic
earning per share.

(b) The Board of Directors of the Company in its meeting held on June 18, 2024 and shareholders of the Company in the Extraordinary
General Meeting held on June 21, 2024 approved the issuance of bonus equity share of X 1 each in the ratio of 260:1 and 224:1 for
the Equity shares of X 1 each and for the equity shares of X 37 each respectively and also approved the sub-division of 3,530 equity
shares of X 37 each into 1,30,610 equity shares of X 1 each. The number of shares used for the calculation of earnings per share,
and the earnings per share (including that in the comparative year), have been adjusted for pursuant to Paragraph 64 of Ind AS 33 -
“Earnings Per Share”, prescribed under Section 133 of the Companies Act, 2013.

The Company primarily operates in the automotive segment. The automotive segment includes all activities related
to development, design, manufacture, assembly and sale of vehicles, as well as sale of related parts and accessories.
The board of directors of the Company, which has been identified as being the chief operating decision maker (CODM),
evaluates the Company’s performance, allocate resources based on the analysis of the various performance indicator of
the Company as a single unit.

Therefore, based on the guiding principles given in Ind AS 108 on ‘Operating Segments’, the Company’s business activity
fall within a single operating segment, namely automotive segment.

NOTE - 34 EMPLOYEE BENEFIT PLANS

A. Contribution to provident fund (Defined contribution):

The Company make contributions to provident fund which is a defined contribution plan and the Company has
no obligation other than to make the specified contributions. During the year, the Company has charged X 16.76
crores (March 31, 2025 : X 13.64 crores) to the statement of profit and loss towards defined contribution plans.

B. Gratuity (Defined benefit plan):

The Company provides for gratuity for employees in India as per the Code on Social Security, 2020. Employees
who are in continuous service for a period of 5 years are eligible for gratuity. The amount of gratuity payable
on retirement / termination / death / disablement is the employees last drawn wages per month computed
proportionately for 15 days salary multiplied for the number of years of service. The Gratuity plan of the Company
is unfunded.

Note :

(i) The Company received a pre - show cause intimation notice dated March 21, 2024 and subsequently a show cause
notice dated April 16, 2024 (“SCN”) from the Office of the Assistant Commissioner, Chennai under section 73 of the
Central Goods and Services Tax Act, 2017 read with rules and regulations, made thereunder. The GST department
had taken up the scrutiny in accordance with the above section and observed discrepancies in the input tax credit
availed for the Fiscal year 2022-2023 and raised a demand of X 59.81 crores. Against this demand, the Company filed
a reply dated May 14, 2024 explaining the fact that input tax credit has been availed in accordance with law and which
was also reconciled with annual return and hence there was no discrepancy noticed. However, thereafter, an order
was issued against the Company dated November 04, 2024 confirming the above stated demand. The Company
has filed an application for rectification before the Assistant Commissioner, Nungambakkam, Tamil Nadu (the “AC”)
of the order issued, on the grounds that the order has been passed without consideration of the submissions made.
The Company does not foresee the demand materialising as the allegations made are merely on the manner of
disclosures made by the Company in the Annual return filed for the said fiscal period. The matter is currently pending
further adjudication.

B. The Ministry of Environment, Forest and Climate Change (MoEFCC) notified the Battery Waste Management
Rules, 2022, on August 22, 2022 and issued amendments to the same from time to time. These regulations apply
to producers (Manufacturers and Importers included), dealers, consumers, and entities involved in the collection,
segregation, transportation, refurbishment, and recycling of all types of waste batteries. These regulations have
significant implications for the Company being the producer of the batteries (obligation to be met even if the entity
ceases operations). Further guidance or details regarding the practical challenges and concerns related to waste
collection and the associated costs are awaited. Consequently, the Company is unable to reliably estimate a range
of possible outcomes and potential impacts of these rules as at March 31, 2026. The Company will continue to assess
its ability to measure the obligation as and when further guidance/details are available from the Ministry.

The management assessed that carrying value of cash and cash equivalent, other balances with banks, trade receivables,
trade payables, other financial assets, other financial liabilities, lease liabilities and borrowings approximates their fair
value largely due to short-term maturities of these instruments.

iii) Fair value hierarchy

The section explains the judgement and estimates made in determining the fair value of the financial instruments that are:

a) recognised and measured at fair value.

b) measured at amortised cost and for which fair values are disclosed in the financial statement.

To provide an indication about the reliability of the inputs used in determining fair value, the Company has classified its
financial instruments into three levels as mentioned under Indian accounting standards.

Level 1 - Quoted prices (unadjusted) in active markets for identical assets or liabilities. This category consists of quoted
equity share, quoted debt instruments and mutual fund investments. The fair values of investments in units of mutual fund
are based on the Net Asset Value (NAV) as per the fund statement.

Level 2 - This level includes financial assets and liabilities, measured using inputs other than quoted prices included within
Level 1 that are observable for the asset or liability, either directly (i.e., as prices) or indirectly (i.e., derived from prices).

The Company’s activities expose it to a variety of financial risks: credit risk, liquidity risk and market risk. In order to
manage the aforementioned risks, the Company operates a risk management policy and a program that performs close
monitoring of and responding to each risk factors. The Company is constantly evaluating micro and macro economic
factors influencing the business including, economical, geo-political and other risks which may have a bearing on the
business or operations. The Company is of the view that the impact of these risks would not have a material impact on the
business in medium to long term business plans. The Company continuously monitor these risks and other developments
to identify significant uncertainties.

A. CREDIT RISK

Credit risk arises when a counterparty defaults on its contractual obligations to pay resulting in financial loss to the
Company. The Company has adopted a policy of dealing with creditworthy counterparties, as a means of mitigating
the risk of financial loss from defaults. This information is supplied by independent rating agencies wherever available
and if not available, the Company uses other publicly available financial information and its own trading records to rate
its major customer. The Company’s exposure and credit ratings of its counterparties are continuously monitored and
the aggregate value of transactions concluded is spread amongst approved counterparties. The Company usually
collects advances from the customers and hence these risk would not have material impact on the business.

Financial instruments that are subject to concentrations of credit risk, principally consist of balance with banks,
investments in mutual funds, trade receivables and other financial assets. None of the financial instruments of the
Company result in material concentrations of credit risks.

B. LIQUIDITY RISK

(i) Liquidity risk management

Ultimate responsibility for liquidity risk management rests with the board of directors, which has established
an appropriate liquidity risk management framework for the management of the Company’s short, medium

and long-term funding and liquidity management requirements. The Company manages liquidity risk by
maintaining adequate reserves, banking facilities and reserve borrowing facilities, by continuously monitoring
forecast and actual cash flows, and by matching the maturity profiles of financial assets and liabilities.

The above borrowings of the Company with carrying value of X 513.07 crores are in compliance with the quarterly
/ annual covenant requirement as applicable for the respective lending arrangements. Basis the Management’s
estimates, the Company will meet the financial and non financial covenants for a period of twelve months from
the end of the reporting year.

(ii) Maturities of financial liabilities

The following tables detail the Company’s remaining contractual maturity for its non-derivative financial
liabilities with agreed repayment periods. The amount disclosed in the tables have been drawn up based on the
undiscounted cash flows of financial liabilities based on the earliest date on which the Company can be required
to pay. The contractual maturity is based on the earliest date on which the Company may be required to pay.

C. MARKET RISK

Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes
in market prices. Market risk comprises three types of risk: interest rate risk, currency risk and other price risk such
as equity price risk. The objective of market risk management is to manage and control market risk exposures within
acceptable parameters, while optimising the return. All such transactions are carried out within the guidelines set by
the Board of Directors and Risk Management Committee.

There has been no significant changes to the Company’s exposure to market risk or the methods in which they are
managed or measured.

i. Interest Rate Risk

Interest rate risk is the risk that the future cash flows of a financial instrument will fluctuate because of changes
in market interest rates. The Company’s main interest rate risk arises from long term borrowings and short
term borrowings with variable rates. The Company constantly monitors the credit markets and rebalances its
financing strategies to achieve an optimal maturity profile and financing costs.

The Company’s capital management objectives are:

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

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

- to augment requisite resources for future infrastructure requirements

For the purpose of debt to total equity ratio, debt considered is long-term borrowings (including current maturities), short¬
term borrowings and current and non-current lease liabilities. Total equity comprise of issued share capital and all other
equity reserves.

The Company sets the amount of capital in proportion to its overall financing structure, i.e. equity and financial liabilities.
The Company manages the capital structure and makes adjustments to it in the light of changes in economic conditions
and the risk characteristics of the underlying assets.

Notes :

(a) The Board of Directors of our Company in its meeting held on June 18, 2024 and shareholders of our Company in the Extraordinary
General Meeting held on June 21, 2024 approved the issuance of bonus equity share of X 1 each in the ratio of 260:1 and 224:1 for the
equity shares of X 1 each and for the equity shares of X 37 each respectively and also approved the sub-division of 3,530 equity shares
of X 37 each into 1,30,610 equity shares of X 1 each. The conversion ratio of the Compulsory Convertible Preference Shares into Equity
Shares and the employee stock options along with its price per option was adjusted accordingly.

NOTE 42

As of balance sheet date, the Company has an aggregate sum of X 0.09 crores equivalent to USD 8,916.42 and EURO 450.00
(March 31, 2025: X 0.17 crores equivalent to USD 17,920.07 and EURO 1,700) payable to overseas Companies towards import
of goods and services which are outstanding beyond the prescribed time limit for payment as per the extant Foreign
Exchange Management Act (FEMA) regulations.

NOTE 43 - INITIAL PUBLIC OFFER PROCEEDS UTILISATION

During the year ended March 31, 2026, the Company has completed Initial Public Offer (“IPO”) of 92,867,945 equity shares
of face value of X 1 each at an issue price of X 321 per share, comprising of fresh issue of 8,18,16,199 shares, out of which
8,17,16,199 equity shares were issued at an offer price of X 321 per equity share to all the allottees and 1,00,000 equity
shares were issued at an offer price of X 291 per equity share, after a discount of X 30 per equity share to employees
aggregating to X 2,626.00 crores and offer for sale of 1,10,51,746 equity shares by the selling shareholders aggregating to
X 354.80 crores. Pursuant to the IPO, the equity shares of the Company are listed on the National Stock Exchange (“NSE”)
and Bombay Stock Exchange (“BSE”) on May 06, 2025.

Out of the above unutilised IPO proceeds as at March 31, 2026, X 1,615.00 crores is temporarily invested in fixed deposits
with scheduled commercial banks, X 2.06 crores is lying in public offer account and X 0.01 crores is lying in monitoring
account.

NOTE 44

Pursuant to China’s imposition of an export ban on certain categories of heavy rare earth magnets, there has been a
disruption in the global supply chain and the Company’s operation was impacted to some extent. The Company, through
its motor suppliers, had to make temporary adjustments and deviations from Phased Manufacturing Program (“PMP”)
guidelines in the manufacturing process for traction motors (specifically concerning the domestic fitment of magnets).
While this being a temporary change affecting the Company’s ability to submit demand incentive claims under the PM
E-DRIVE scheme, the Company has decided to defer submission of claims for demand incentives and revenue recognition
to the extent of X 24.52 crores on these specific vehicles sold during the year ended March 31, 2026.

NOTE 45

During the year ended March 31, 2026, the Board of Directors of the Company approved for the incorporation
of two Wholly Owned Subsidiary (“”WOS””) companies, a) A Corporate Agent WOS to offer and facilitate
insurance policies which will enable the Company to streamline its insurance offerings, enhance
customer experience and generate a recurring revenue stream by leveraging its existing user base.
b) A Hong Kong based WOS to support the Company’s critical procurement functions and enhance supply chain
resilience within the Asia-Pacific (APAC) region.

NOTE46

According to the management’s evaluation of events subsequent to the balance sheet date, there were no significant
adjusting events that occurred other than those disclosed/given effect to, in these financial statements as of March 31,
2026.

NOTE 47

There were no amounts which were required to be transferred to the Investor Education and Protection Fund by the
Company.

NOTE 48 : OTHER STATUTORY DISCLOSURES

A. The Company has not advanced or loaned or invested funds (either borrowed funds or share premium or any
other sources or kind of funds) to any other persons or entities, 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 to or on behalf of the Ultimate Beneficiaries”

B. The Company has not received any fund from any persons or entities, including foreign entities (Funding
Party) 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.

As at March 31, 2026, there are no proceedings initiated or pending against the Company for holding any benami property
under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and rules made thereunder.

NOTE50

The Company has not traded or invested in Crypto currency or Virtual Currency during the year ended March 31, 2026 and
March 31, 2025.

NOTE 51

The Company has not entered into any scheme of arrangement which has an accounting impact during the year ended
March 31, 2026 and March 31, 2025.

NOTE 52

There is no income surrendered or disclosed as income during the year ended March 31, 2026 and March 31, 2025 in the
tax assessments under the Income Tax Act, 1961, that has not been recorded in the books of account.