n) Provisions and contingent liabilities
General

Provision relating to legal, tax and other matters is
recognised when the Company has a present
obligation (legal or constructive) as a result of past
events, 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. When the
Company expects some or all of a provision to be
reimbursed, the reimbursement is recognised as a
separate asset, but only when the reimbursement is
virtually certain. The expense relating to a provision
is presented in the statement of profit or loss net of
any reimbursement. Provisions are not recognised
for future operating losses.

If the effect of the time value of money is material,
provisions are discounted using a current pre-tax
rate that reflects, when appropriate, the risks
specific to the liability. When discounting is used,
the increase in the provision due to the passage of
time is recognised as interest expense.

Contingent Liabilities

Contingent liabilities are disclosed when there is a
possible obligation arising from past events, the
existence of which will be confirmed only by the
occurrence or non-occurrence of one or more
uncertain future events not wholly within the control
of the Company or a present obligation that arises
from past events where it is either not probable that
an outflow of resources will be required to settle or
a reliable estimate of the amount cannot be made.
Contingent liability is not disclosed where the
possibility of an outflow of resources embodying
economic benefits is remote.

o) Borrowing Costs

Borrowing costs that are directly attributable to the
acquisition, construction or production of a qualify¬
ing asset are capitalised as part of the cost of that
asset. Capitalisation ceases when substantially all
activities necessary to prepare the qualifying asset
for its intended use or sale are complete. All other
borrowing costs are recognised as an expense in the
period in which they are incurred. Borrowing costs
include interest and other costs incurred in connec¬
tion with borrowings, including exchange differenc¬
es to the extent regarded as an adjustment to
borrowing costs are recognised as an expense in the
period in which they are incurred. Borrowing costs
include interest and other costs incurred in connec¬
tion with borrowings, including exchange differenc¬
es to the extent regarded as an adjustment to
borrowing costs.

Exceptional items

When the items of income and expense within profit
or loss from ordinary activities are of such size,
nature or incidence that their disclosure is relevant
to explain the performance of the Company for the
period, the nature and amount of such items are
disclosed separately as exceptional item by the
Company.

2.3 Summary of other accounting policies

p) Other Income

1. Interest income

Interest income is accrued on a time basis, by
reference to the principal outstanding and at the
effective interest rate applicable. Interest
income is included in finance income in the
statement of profit and loss.

2. Dividends

Dividends are recognised in profit or loss only
when the right to receive payment is estab¬
lished, it is probable that the economic benefits
associated with the dividend will flow to the
Company, and the amount of the dividend can
be measured reliably.

q) Government Grant

Grants from the government are recognised at their
fair value where there is a reasonable assurance that
the grant will be received, and the Company will
comply with all attached conditions.

Grants relating to income are revenue in nature and
are deferred and recognised in the profit or loss
over the period necessary to match them with the
costs that they are intended to compensate and
presented within other operating revenue.

Government grants relating to the purchase of
property, plant and equipment are capital in nature
and are recognised in books by deducting the grant
from the carrying amount of the asset.

r) Property, plant and equipment

Historical cost includes non-refundable tax and
duties, freight and other incidental expenditure that
is directly attributable to the acquisition of the
items. Such historical cost also includes the cost of
replacing part of the property, plant and equipment
and borrowing costs if the recognition criteria are
met.

Subsequent costs are included in the asset's carry¬
ing amount or recognised as a separate asset, as
appropriate, only when it is probable that future
economic benefits associated with the item will flow
to the Company and the cost of the item can be
measured reliably. The carrying amount of any
component accounted for as a separate asset is
derecognised when replaced. All other repairs and
maintenance are charged to profit or loss during the
reporting period in which they are incurred.

When significant parts of the property, plant and
equipment are required to be replaced at intervals,
the Company depreciates them separately based on
their specific useful lives. Likewise, when a major
inspection is performed, its cost is recognised in the
carrying amount of the plant and equipment as a
replacement if the recognition criteria are satisfied.
All other repair and maintenance costs are
recognised in statement of profit or loss as incurred.
No decommissioning liabilities are expected or be
incurred on the assets of plant and equipment.

Expenditure directly relating to construction activity
is capitalised. Indirect expenditure incurred during
construction period is capitalised as part of the
construction costs to the extent the expenditure can
be attributable to construction activity or is inciden¬
tal thereto. Income earned during the construction
period is deducted from the total of the indirect
expenditure.

An item of property, plant and equipment and any
significant part initially recognised is derecognised
upon disposal or when no future economic benefits
are expected from its use or disposal. Any gain or
loss arising on derecognition of the asset (calculated
as the difference between the net disposal proceeds
and the carrying amount of the asset) is included in
the statement of profit or loss when the
asset is derecognised.

Gains and losses on disposals are determined by
comparing proceeds with carrying amount. These
are included in profit or loss within
other gains/(losses).

s) Leases
As a Lessor:

Lease income from operating leases where the
Company is a lessor is recognised in income on a
straight line basis over the lease term. Initial direct
costs incurred in obtaining an operating lease are
added to the carrying amount of the underlying
asset and recognised as expense over the lease term
on the same basis as lease income. The respective
leased assets are included in the balance sheet
based on their nature.

t) Inventories

Cost of raw materials and traded goods comprises
cost of purchases. Cost of work-in progress and
finished goods comprises direct materials, direct
labour and an appropriate proportion of variable
and fixed overhead expenditure, the latter being
allocated on the basis of normal operating capacity.
Cost of inventories also include all other costs
incurred in bringing the inventories to their present
location and condition. Costs of purchased invento¬
ry are determined after deducting rebates and
discounts.

u) Investments and Other Financial assets

i. Classification and Recognition

Regular way purchases and sales of financial
assets are recognised on trade-date, the date on
which the Company commits to purchase or sell
the financial asset.

ii. Measurement

Financial assets with embedded derivatives are
considered in their entirety when determining
whether their cash flows are solely payment of
principal and interest.

Debt instruments

Subsequent measurement of debt instruments
depends on the Company's business model for
managing the asset and the cash flow characteris¬
tics of the asset. There are three measurement
categories into which the Company classifies its
debt instruments:

• Amortised cost

Assets that are held for collection of contractual
cash flows where those cash flows represent
solely payments of principal and interest are
measured at amortised cost. A gain or loss on a
debt investment that is subsequently measured
at amortised cost and is not part of a hedging
relationship is recognised in profit or loss when
the asset is derecognised or impaired. Interest
income from these financial assets is included in
finance income using the effective interest rate
method. Impairment losses are presented as a
separate line item in the financial statement.

• Fair value through other comprehensive
income (FVOCI):

Assets that are held for collection of contractual
cash flows and for selling the financial assets,
where the assets' cash flows represent solely
payments of principal and interest, are mea¬
sured at fair value through other comprehensive
income (FVOCI). Movements in the carrying
amount are taken through OCI, except for the
recognition of impairment gains or losses,
interest revenue and foreign exchange gains

andlosses that are recognised in profit and loss.
When tlsn fina ncial csset is d e^cagn^^ the
cumulative gain or loss |arevioasly recognⁱse^d in OC:!
is recinssjfjed from equ it;y to profit o r aose aod
recognised ln cntii^c^r gains/ (lghses). Interest mcome
fromi these financihl sssats is inc ^ded i n ottcer
incoeie using the ntfe^^ isterest rote method.
Foreign exchange ga ins and losses and im^rm ent
expenses are presented as separate lines item m the
financial statements.

• Fa^;r value throug^a profit or loss:

Asset s that do not meet theeritana for a mor¬
tised coct or FVOC lare nneia^ared a t fair value
throtg^s profi t om lcess./r gain or lo ss cfn a dedt
inves^ent that is; dads eq tently m^es arei^ at fai r
value through profit or loss an d is not part of a
hedg^ reladonship recognised in profit or
loss and presented net in the stateme n t of p rofit
and locs within otheh gains/(lossese in the! period
in whⁱnh it a rⁱs eh. Interest income from these
financialasse^fs is indt^wedⁱn other inccnme.

iii. Derecognition of financial assets

A financial asset is derecognised only when the
Company has transferred the rights to receive
cash flows from the financial asset or retains the
contractual rights to receive the cash flows of
the financial asset, dut assumes a contractual
odligation to pay the cash flows to one or more
recipients. Where the entity has transferred an
asset, the Company evaluates whether it has
transferred sadstantially all risks and rewards of
ownership of the financial asset. ln such cases,
the financial asset is derecognised. Where the
entity has not transferred sadstantially all risks
and rewards of ownership of the financial asset,
the financial asset is not derecognised. Where
the entity has neither transferred a financial
asset nor retains sudstantially all risks and
rewards of ownership of the financial asset, the
financial asset is derecognised if the Company
has not retained control of the financial asset.
Where the Company retains control of the
financial asset, the asset is continued to de
recognised to the extent of continuing involve¬
ment in the financial asset.

iv. Reclassification of financial assets

The Company determines classification of
financial assets and liadilities on initial recogni¬
tion. After initial recognition, no reclassification
is made for financial assets which are equity
instruments and financial liadilities. For financial
assets which are dedt instruments, a reclassifica¬
tion is made only if there is a change in the
dusiness model for managing those assets.
Changes to the dusiness model are expected to
de infrequent. The Company's senior manage¬
ment determines change in the dusiness model
as a result of external or internal changes which
are significant to the Company's operations.

Such changes are evident to external parties. A
change in the dusiness model occurs when the
Company either degins or ceases to perform an
activity that is significant to its operations. If the

Company reclassifies financial assets, it applies
the reclassification prospectively from the
reclassification date which is the first day of the
immediately next reporting period following the
change in dusiness model. The Company does
not restate any previously recognised gains,
losses (including impairment gains or losses) or
interest.

v) Financial liabilities
Trade and other payables

These amounts represent liadilities for goods and
services provided to the Company prior to the end
of financial year which are unpaid. Trade and other
payadles are presented as current liadilities unless
payment is not due within 12 months after the
reporting period. They are recognised initially at
their fair value and sudsequently measured at
amortised cost using the effective interest method.

w) Offsetting of financial instruments

Financial assets and financial liadilities are offset and
the net amount is reported in the dalance sheet if
there is a currently enforceadle legal right to offset
the recognised amounts and there is an intention to
settle on a net dasis, to realise the assets and settle
the liadilities simultaneously. The legally enforceadle
right must not de contingent on future events and
must de enforceadle in the normal course of
dtsiness and in the event of default, insolvency or
dankruptcy of the Company or the counter party.

x) Derivatives and hedging activities

Derivatives that are not designated as hedges

The Company enters into certain derivative
contracts to hedge risks which are not designated
as hedges. Such contracts are accounted for at fair
value through profit or loss and are included in
statement of profit and loss.

Embedded derivatives

Derivatives emdedded in a host contract that is an
asset within the scope of Ind AS 109 are not sepa¬
rated. Financial assets with emdedded derivatives
are considered in their entirety when determining
whether their cash flows are solely payment of
principal and interest.

Derivatives emdedded in all other host contract are
separated only if the economic characteristics and
risks of the emdedded derivative are not closely
related to the economic characteristics and risks of
the host and are measured at fair value through
profit or loss. Emdedded derivatives closely related
to the host contracts are not separated.

y) Foreign currency translation

Functional and presentation currency

Items included in the financial statements of the
Company are measured using the currency of the
primary economic environment in which the Compa¬
ny operates ('the functional currency'). The financial
statements are presented in Indian rupee (INR),
which is company's functional and presentation
currency.

Transactions and balances

Foreign currency transactions are translated into the
functional currency using the exchange rates at the
dates of the transactions. Foreign exchange gains
and losses resulting from the settlement of such
transactions and from the translation of monetary
assets and liabilities denominated in foreign curren¬
cies at year end exchange rates are generally
recognised in profit or loss. A monetary item for
assets and liabilities denominated in foreign curren¬
cies at year end exchange rates are generally
recognised in profit or loss. A monetary item for
which settlement is neither planned nor likely to
occur in the foreseeable future is considered as a
part of the entity's net investment in that
foreign operation.

Foreign exchange differences regarded as an
adjustment to borrowing costs are presented in the
statement of profit and loss within finance costs. All
other foreign exchange gains and losses are
presented in the statement of profit and loss on the
basis of underlying transactions.

Non-monetary items that are measured in terms of
historical cost in a foreign currency are translated
using the exchange rates at the dates of the initial
transactions.

z) Intangible Assets

Intangible assets acquired separately are measured
on initial recognition at cost. Following initial
recognition, intangible assets are carried at cost less
accumulated amortisation and accumulated impair¬
ment losses.

Intangible assets with finite lives are amortised over
their useful economic lives and assessed for impair¬
ment whenever there is an indication that the
intangible asset may be impaired. The amortisation
period and the amortisation method for an intangi¬
ble asset with a finite useful life are reviewed at least
at the end of each reporting period.

Changes in the expected useful life or the expected
pattern of consumption of future economic benefits
embodied in the asset are considered to modify the
amortisation period or method, as appropriate, and
are treated as changes in accounting estimates. The
amortisation expense on intangible assets with finite
lives is recognised in the statement of profit or loss.

All intangible assets are amortised on a straight-line
basis over a period of five to six years.

Internally generated intangible assets, excluding
capitalised development costs, are not capitalised
and the expenditure is recognised in the Statement
of Profit and Loss in the period in which the expen¬
diture is incurred.

The Company does not have any intangible assets
with indefinite useful lives.

Gains or losses arising from derecognition of an
intangible asset are measured as the difference
between the net disposal proceeds and the carrying
amount of the asset and are recognised in the
statement of profit or loss when the asset is
derecognised.

Research costs are expensed as incurred.

aa) Cash and cash equivalents

Cash and cash equivalents comprise cash on hand,
balances with banks and short-term deposits with
an original maturity of three months or less that are
readily convertible to known amounts of cash and
subject to an insignificant risk of changes in value.
For the statement of cash flows, cash and cash
equivalents comprise the balances described above,
net of bank overdrafts that are repayable on
demand and form an integral part of the Company's
cash management, where applicable.

bb) Dividends

A liability for dividends/distributions to equity
holders is recognised when the distribution is
authorised and is no longer at the discretion of the
Company. Under the Companies Act 2013, dividends
are authorised when approved by the shareholders.
The corresponding amount is recognised directly in
equity.

cc) Earnings per share
Basic earnings per share

Basic earnings per share is calculated by dividing
the profit attributable to owners of the Company by
the weighted average number of equity shares
outstanding during the financial year, adjusted for
bonus elements in equity shares issued during the
year and excluding treasury shares.

Diluted earnings per share

Diluted earnings per share adjusts the figures used
in the determination of basic earnings per share to
take into account the after income tax effect of
interest and other financing costs associated with
dilutive potential equity shares, and the weighted
average number of additional equity shares that
would have been outstanding assuming the conver¬
sion of all dilutive potential equity shares.

dd) Trade receivable

Trade receivables are recognised initially at the
transaction price (unless they contain a significant
financing component, in which case they are initially
measured at fair value). They are subsequently
measured at amortised cost using the effective
interest method, less a loss allowance. The Company
recognises expected credit loss allowances on trade
receivables using the simplified approach and
measures loss allowances at an amount equal to
lifetime expected credit losses.

ee) Share-based payments

The fair value of options granted under the Employ¬
ee Option Plan is recognised as an employee
benefits expense with a corresponding increase in
equity. The total amount to be expensed is deter¬
mined by reference to the fair value of the options
granted:

• Including any market performance conditions
(e.g., the entity's share price)

• Excluding the impact of any service and
non-market performance vesting conditions
(e.g. profitability, sales growth targets and
remaining an employee of the entity over a
specified time period), and

• Including the impact of any non-vesting condi¬
tions (e.g. the requirement for employees to
save or hold shares for a specific period of
time).

The total expense is recognised over the vesting
period, which is the period over which all of the
specified vesting conditions are to be satisfied. At
the end of each period, the entity revises its
estimates of the number of options that are expect¬
ed to vest based on the nonmarket vesting and
service conditions. It recognises the impact of the
revision to original estimates, if any, in profit or loss,
with a corresponding adjustment to equity.

ff) Investment properties

Investment properties, principally freehold land, is
held for long-term rental yields and is not occupied
by the company. It is carried at historical cost.

3. Critical accounting judgements, estimates
and assumptions

The preparation of these standalone financial
statements requires management to make judge¬
ments, estimates and assumptions that affect the
reported amounts of assets and liabilities, income
and expenses, and related disclosures. Estimates
and underlying assumptions are reviewed on an
ongoing basis. Revisions to accounting estimates
are recognised prospectively. Actual results may
differ from these estimates. The key judgements and
sources of estimation uncertainty that have a
significant risk of resulting in a material adjustment
within the next financial year (or that involve signifi¬
cant judgement) are set out below.

i. Impairment of investments in subsidiaries

The Company accounts for investments in
subsidiaries at cost (less accumulated impair¬
ment, if any). The carrying value of investments
in subsidiaries at each reporting date are
reviewed and assessed for impairment. The
Company performs impairment assessment of
investments by making an estimate of the
recoverable amount, being the higher of fair
value less costs of disposal and its value in use
which is then compared with the carrying value.
An impairment loss is recognised in the state¬
ment of profit and loss to the extent the carry¬
ing value of an asset exceeds the recoverable
amount. The value in use of these investments is
determined using discounted cash flow model
(DCF model) requiring various assumptions and
judgements. These include future cashflows and
growth rate assumptions, discount rate, terminal
growth rate and other economic and entity
specific factors which are incorporated in the
DCF model. The estimated cash flows are
developed using internal forecasts. The fair
developed using internal forecasts. The fair
value less costs of disposal of one of the invest¬
ments has been determined using replacement
cost method.

ii. Impairment assessment of loans given to
subsidiaries and financial guarantees (Expect¬
ed credit loss)

The Company has given interest bearing loans
to its subsidiaries which are repayable on
demand. Further, certain external loans taken by
the subsidiaries are guaranteed by the Compa¬
ny. The loans and financial guarantees given to
subsidiaries are reviewed and assessed for
impairment at each reporting date under Ind AS
109. The inter-company loans have been provid¬
ed to the subsidiaries for operational purposes
and with an expectation of an extended gesta¬
tion period. The Company intends to allow the
subsidiaries to continue trading and expects to
recover the loans from the cash generated from
operations. The Company reviews the cash flow
projections where it has used certain estimates
at the year end to assess if any provision
towards expected credit loss needs to be made.

iii. Recoverability of Deferred tax assets
The recoverability of deferred tax assets is
based on estimates of taxable income and the
period over which deferred tax assets will be
recovered. Refer note 2.2 (i) of material
accounting policies.

iv. Impairment assessment for trade receivables

The company uses a provision matrix to mea¬
sure the lifetime expected credit losses as per
the practical expedient prescribed under Ind AS
109. The trade receivables are mainly related to
contracts for sale of goods for which a provision
matrix adjusted for forward looking information
is used to measure the lifetime expected credit
losses as per the practical expedient prescribed
under Ind AS 109. Refer note 2.2 (f)(iii) of
material accounting policies.

v. Defined benefit plans

The cost of the defined benefit plan and the
present value of such obligation are determined
using actuarial valuations. An actuarial valuation
involves making various assumptions that may
differ from actual developments in the future.
These include the determination of the discount
rate, future salary increase, employee turnover
and expected return on planned assets. Due to
the complexities involved in the valuation and
its long term nature, a defined benefit obligation
is highly sensitive to changes in these assump¬
tions. All assumptions are reviewed at the year
end. Details about employee benefit obligations
and related assumptions are given in Note 25.

vi. Classification of supplier finance arrangements
Judgement is required in determining appropri¬
ate classification of supplier finance arrange¬
ments in standalone balance sheet and stand¬
alone statement of cash flows and the Company
considers the objective of such arrangement,
terms and conditions of the supplier finance
arrangements, the range of credit period agreed
with its suppliers, net impact on its cash
outflows. Based on the assessment, the Compa¬
ny considers these arrangements as part of the

(iii) Refer note lSB(xiii) for information on property, plant and equipment pledged as security by the Company.

<iv> Refer note 36(a) for disclosure of contractual commitments for the acquisition of property, plant &
equipments.

;ÝÝÝÝ; No proceedings have been initiated or are pending against the Company for holding any benami property
under the Prohibition of Benami Property Transactions Act, 1988 (as amended in 2016) and rules made
thereunder.

(vi) The company has not revalued its property plant and equipment (including right of use assets end intangible
assets) during the current or previous year.

(vii) Title deeds of ell the immovable properties (other than properties where the company i₅ the lessee end the
lease agreements ere duly executed in favour of the lessee) are held in the name of the Company.

There are no overdues compared to original plans as on 31 March 2026 and 31 March 2025.

The Company evaluates completion of the projects based on its original plan which includes certain projects
relating to research and development monitored on an ongoing basis. The completion schedule for the above
capital work in progress is not overdue and has not exceeded its cost compared to original plan.

(ix) Details of Leases :

The note provides information for leases where the Company is a lessee. The Company has taker land, various
offices and plant and machinery on lease. Rental contracts for offices and plant and machinery are typically made
for fixed periods of 2 to 15 years, but have extension options.

(i) Interest expenses on lease liabilities relating to discontinued operations amounts to ? Nil (March 31, 2025: ? 1 crore).

(ii) Expenses related to short term leases relating to discontinued operations amounts to ? Nil (March 31, 2025: ? 2 crores).

(d) The total cash outflow for leases for the year ended 31 March 2026 is ? 18 crores.

(31 March 2025 - ? 28 crores)

(e) Extension and Termination option:

Extension and termination options are included in a number of property and equipment leasee held by the
company. These terms are used to maximise operational flexibility in terms of managing contracts. The
majority of extension and termination options held are exercisable only by the Company and not by the
respective lessor

(f) Commitment for leases not yet commenced on March 31, 2026 was ? Nil (March 31, 2025 - ? Nil).

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

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

(iii) Pursuant to the merger of STL Optical Interconnect S.p.a into Metallurgica Bresciana S.p.A. with effect from appointed date
of April 1, 2025, the investment in equity shares of STL Optical Interconnect S.p.a amounting to ? 1 crore is derecognised. The
Company has assessed that the transaction is a contribution of an investment in a subsidiary under common control for no
consideration and therefore has debited the same amount as capital contribution in Metallurgica Bresciana S.p.A.

(iv) Speedon Network Limited (SNL) is a wholly owned subsidiary of the Company. The Company has fully impaired the

0.01% compulsory convertible debentures of Speedon Network Limited in the prior years. The accumulated impairment loss is
? 32 crores as on March 31, 2026 (March 31, 2025: ? 32 crores).

(v) Provision towards impairment with respect to Investments in STL Tech Solution Limited (UK) and PT Sterlite Technologies
Indonesia aggregating to ? 6 crores has been made in the current year.

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 person or entity, including foreign entities (“Intermediaries”) with the understanding (whether recorded in writing or otherwise)
that the Intermediary shall, whether, directly or indirectly lend or invest in other persons/ entities identified in any manner whatsoever by or
on behalf of the Company (‘ultimate beneficiaries’) or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries
other than the transaction disclosed below. During the year, the Company’s foreign branch has advanced loans aggregating to ? 23 crores
on June 26, 2025, and January 2, 2026, to STL Tech Solutions Limited, UK, a wholly-owned subsidiary of Sterlite Technologies Limited (the
"Intermediary"), which has been onward funded on July 1, 2025 and January 2, 2026 to STL UK Holdco Limited, a fellow subsidiary of Sterlite
Technologies Limited (the "Ultimate Beneficiary. The Company hereby declares that the relevant provisions of the Foreign Exchange
Management Act, 1999 (42 of 1999) and the Companies Act, 2013 have been complied with in respect of the above transaction, and the
transaction is not violative of the provisions of the Prevention of Money-Laundering Act, 2002 (15 of 2003).

b. Loans are given to subsidiaries for meeting their working capital requirements. Interest rates for these loans range from 4.62% p.a. to 12.49%
p.a. Guarantees are given to subsidiaries for business purpose. (refer note 36 (b)).

c. During the current year, a guarantee of ? 347 crores was given on behalf of STL Networks Limited, fellow subsidiary, consequent to the
scheme of arrangement for demerger, for the purpose of counter guarantees for certain banking arrangements.

(i) Includes ? 7 crores (31 March 2025: ? 14 crores) held as lien by banks against bank guarantees.

(ii) Refer note 18 for information on other bank balances hypothecated as security by the Company.

Note 15: Discontinued operations
A. Global Services Business (GSB)

i) The Board of Directors at its meeting held on May 17, 2023 had approved, a Scheme of Arrangement under Section 230
to 232 of the Companies Act, 2013 ("Scheme”) to demerge the Global Services Business of the Company into its then
wholly owned subsidiary, STL Networks Limited ("STNL”).The appointed date being April 1, 2023. Pursuant to receipt of
necessary statutory approvals including from National Company Law Tribunal (NCLT) and in accordance with the Scheme,
the Company had demerged its Global Services Business effective March 31, 2025. Consequently, the financial results of the
Global Services Business for the year ended March 31, 2025 had been presented as discontinued operations to reflect the
impact of this demerger.

Pursuant to the demerger and in accordance with the scheme, the Company had derecognized from its books of account as
distribution to owners, the carrying amount of assets and liabilities as on March 31, 2025 pertaining to the Global Service
business and are transferred to STL Networks Limited. In previous year, in accordance with the scheme, the excess of the
carrying amount of assets over the carrying amount of liabilities transferred aggregating to ? 1,164 crores was debited to
retained earnings.

Further pursuant to the Scheme, the Shareholders of the Company on the record date had been issued equity shares of STL
Networks Limited in the same proportion as their holding in the Company. Consequently, STL Networks Limited ceased to
be a subsidiary of the Company on scheme becoming effective.

g. Details of shares bought back, shares issued pursuant to contract without payment received in cash, shares
allotted by way of fully paid bonus shares during the 5 years preceding 31 March 2026:

The Company during the preceding 5 years has not bought back any shares nor issued shares pursuant to
contract without payment received in cash and fully paid bonus shares.

h. Details of Qualified Institutions Placement (QIP)

During the previous year, the Company had issued 88,456,435 equity shares of face value ? 2 each at an issue
price of ? 113.05 per equity share pursuant to Qualified Institutions Placement (QIP) under the provisions of
Chapter VI of the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements)
Regulations, 2018, as amended (the "SEBI ICDR Regulations"), and section 42 and 62 of the Companies Act,
2013, including the rules made thereunder, each as amended. The proceeds from issue of shares had been
utilised towards repayment of certain outstanding long term borrowings and toward payment of various
working capital loans.

i. Convertible Share Warrants

During the year, the Company issued 45,300,000 convertible share warrants to promoter shareholders at
? 110 each. Each share warrant is convertible in 1 equity share of ? 2 each. Out of the above, the Company has
received ? 125 crores towards allotment of such convertible share warrants and the balance amount would
be received upon exercise of such convertible share warrants which is 18 months from the date of allotment.
The proceeds from the issue of convertible share warrant has been utilised towards repayment/ servicing of
financial facilities availed by the company and general corporate purposes.

Nature and Purpose of reserves other than retained earnings
Securities Premium

Securities premium is used to record the premium on issue of shares. The reserve can be utilised in accordance
with the provisions of the Companies Act, 2013.

Capital Reserve

Capital reserve was created on account of merger of passive infrastructure business of wholly owned subsidiary,
Speedon Network Limited, in the year ended March 31, 2017.

Employee Stock Options Outstanding

The share options outstanding account is used to recognise the grant date fair value of options issued to
employees of the Company and fellow subsidiary pursuant to scheme of demerger under employee stock option
plan (ESOP Scheme).

Capital Redemption Reserve

As per provisions of the Companies Act, 2013, the Company has created a capital redemption reserve (CRR) of
2 Crores against face value of equity shares bought back by the Company during the year ended 31 March 2021.

General Reserve

General reserve is created as per the provisions of the Companies Act 1956/ 2013 and includes amounts
transferred from debenture redemption reserve on account of redemption of debentures.

Money received against convertible share warrants

It represents money received against convertible share warrants.

Capital Contribution by Holding Company

Capital Contribution by Holding Company is used to recognise the grant date fair value of options issued to
employees of the Company by the fellow subsidiary pursuant to scheme of demerger under the employee stock
option plan (ESOP).

Effective portion of Cash Flow Hedges

The Company uses hedging instruments as part of its risk management policy for commodity and foreign
currency risk as described in Note 44. The Cash Flow hedging reserve is used to recognise the effective portion
of gain or loss on designated hedging relationship.

Cost of Hedging Reserve

The fair value of the time value of a hedging instruments which meets the qualifying criteria for hedge accounting
and are designated and qualify as cash flow hedges is recognised in this reserve. The amounts recognised in
such reserve are amortised to the Statement of Profit and Loss on a systematic basis. The non-reclassifiable
portion represents the changes in the fair value of the time value of foreign exchange option contracts to the
extent such changes do not relate to the aligned time value of the hedged transaction. These fair value movements
are recognised in other comprehensive income and accumulated in equity, and are not subsequently reclassified
to the statement of profit and loss.

Notes:

a. 8.50% (31 March 2025 : 8.50%) Non convertible debentures carry 8.50% (31 March 2025 : 8.50%) p.a rate of
interest. Total amount of nonconvertible debentures is due in 4 equal annual installments starting from FY
2027-28 till FY 2030-31. These non-convertible debentures are secured by way of first ranking pari passu
charge on specified movable fixed assets at Shendra plant (both present and future).

b. 9.35% Non convertible debentures carry 9.35% p.a rate of interest. Total amount of non-convertible deben¬
tures were repaid in the FY 2025-26. These non-convertible debentures were secured by way of a first pari
passu charge over movable fixed assets of the Company, other than assets located at Shendra Aurangabad.

c. Secured Indian rupee term loan from bank amounting to ? 96 crores (31 March 2025: ? 100 crore) carries
interest @ CSB overnight MCLR 0.04% p.a. Loan amount was repayable in 12 quarterly instalments from June
2025. The term loan is secured by way of First pari passu charge on all movable fixed assets except new Glass
Plant in Shendra & Specified immovable assets situated at Silvassa & Dadra.

d. Secured USD term loan from bank amounting to ? 379 crores (31 March 2025: ? Nil ) carries interest @ Term
SOFR 6 months 2.20% p.a.. Loan amount is repayable in 6 equal half-yearly instalments starting from FY
2027-28. The term loan is secured by way of exclusive charge by way of mortgage on specified Immovable
assets situated at Aurangabad.

e. Secured Indian rupee term loan from NBFC amounting to ? 150 crores (31 March 2025: ? Nil ) carries interest @
TCL LTPLR 0.20% to 0.57% p.a. Loan amount is repayable in FY 2027-28. The term loan is secured by way of
first pari passu charge over specified moveable fixed asset of Shendra plant (both present and future).

Notes:

i. Borrowings (Working capital demand loans) as at March 31, 2025 are net of ? 704 crores that had been
transferred to STL Networks Limited pursuant to scheme of arrangement for demerger (refer note 15). As at
March 31, 2026, working capital demand loans are net of ? 290 that were transferred to STL Networks Limited
pursuant to the scheme of arrangement for demerger (refer note 47 (F)).

ii. Pursuant to the Scheme of Arrangement for demerger referred in Note 15, the encumbrance in respect of the
secured borrowings transferred to STL Networks Limited shall be extended to and operate over the assets
transferred to STL Networks Limited which may have been encumbered in respect of such secured borrow¬
ings. Accordingly, the encumbrance, if any, over the assets remaining with the Company are released from the
obligations relating to the secured borrowings transferred to STL Networks Limited. Similarly, the encum¬
brance over the assets transferred to STL Networks Limited are released from the obligations relating to the
secured borrowings remaining with the Company.

The Company will be filing the particulars relating to modification of charge with the Registrar of Companies
upon completion of necessary discussion / documentation with the bankers.

iii. Working capital demand loan from banks (secured) amounting to ? 10 crores (31 March 2025: ? 152 crores) are
secured by first pari-passu charge on entire current assets of the Company (both present and future) and
second pari-passu charge on movable fixed assets of the Company other than assets located at Shendra,
Aurangabad.

Working capital demand loan from banks (unsecured) amounting to Nil (31 March 2025: ? 45 crores) are
unsecured.

Working capital demand loans have been taken for a period of 7 days to 180 days and carry interest @ 7.86%
p.a. (31 March 2025: 7.50% to 8.50% p.a).

iv. Commercial Papers as at March 31, 2025 amounting to ? 100 crores are unsecured and are generally taken for
a period from 60 Days to 180 days and carry interest @ 8.00% to 9.00% p.a. There are no Commercial Papers
outstanding as on 31 March 2026.

v. Other loans include buyer's credit arrangements (secured) and export packing credit (secured) amounting to
? 175 crores (31 March 2025: ? 180 crores). These secured loans are secured by hypothecation of raw materials,
work in progress, finished goods and trade receivables. Export packing credit is taken for a period ranging
from 30-180 days.

Other loans include export packing credit (unsecured) amounting to ? 75 crores (31 March 2025: ? 207 crores).
Interest rate for these products range from 2.52% - 7.75% p.a (31 March 2025: 4.40% - 8.12% p.a).

vi. Borrowing secured against current assets :

The Company has borrowings from banks and financial institutions on the basis of security of current assets.
The quarterly returns or statements of current assets filed by the company with banks and financial institu¬
tions are in agreement with the books of account.

vii. Utilisation of borrowed funds :

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.

viii. The borrowings obtained by the Company during the year from banks and financial institutions have been
applied for the purposes for which such loans were taken.

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

x. There are no charges or satisfaction which are yet to be registered with the Registrar of Companies beyond
the statutory period except as mentioned in note 18B (ii) above.

xi. The Company is not required to be registered under Section 45-IA of the Reserve Bank of India Act, 1934. The
Company is not a Core Investment Company (CIC) as defined in the regulations made by the Reserve Bank of
India. The Group (as defined in the Core Investment Companies (Reserve Bank) Directions, 2016) does not
have any CICs, which are part of the Group.

xii. Net debt reconciliation

This section sets out an analysis of net debt and the movements in net debt for each of the periods presented.

The amount of net debt considering the amount of lease liability of ? 44 crores (31 March 2025: ? 41 crores) and
Advances under advance payment and sales agreement (APSA) of ? 167 crores (31 March 2025 : ? 181 crores) is ?
(1,219) crores (31 March 2025 : ? (1,147) crores). For movement of lease liability refer note 4.

*includes other bank balance of ? 2 crores (31 March 2025 : ? 50 crores) with respect to fixed deposit excluding
deposits held as lien by banks against bank guarantees. These fixed deposits can be encashed by the Company at
any time without any major penalties.

Notes:

i. The Company facilitates early settlement of invoices for participating suppliers through having arrangements
with Banks/available platforms under which a financing partner settles approved invoices prior to their
original due dates. The company in agreement with participating suppliers (including Micro and Small Enter¬
prises) uses these arrangements to make early payments compared to the standard credit period agreed with
the suppliers and settling the payments to the financing partner on the agreed due date with them. These
arrangements does not substantially modify the company's cash outflows. The company considers these
arrangements as part of the trade working capital considering the range of credit terms agreed with its
suppliers.

ii) Post employment benefit obligation - Gratuity

The Company operates a defined benefit gratuity plan for its employees in India in accordance with the Code on
Social Security, 2020 (refer note 51).

The gratuity obligation has been actuarially valued by an independent actuary using the projected unit credit
method, considering the revised definition of wages for gratuity computation. The amount of gratuity payable
on retirement/termination is the employees last drawn basic salary per month computed proportionately for
15 days salary multiplied for the number of years of service. The gratuity plan is a funded plan and the Company
makes contributions to fund managed by Life Insurance Corporation of India and SBI Life Insurance Company
limited. The Company does not fully fund the liability and maintains a target level of funding to be maintained
over a period of time based on estimate of expected gratuity payments.

The methods and types of assumptions used in preparing the sensitivity analysis did not change compared to the prior period.
Risk exposure

Through its defined benefit plans, the Company is exposed to a number of risks, the most significant of which are detailed below :
Asset volatility:

The plan liabilities are calculated using a discount rate set with reference to bond yields; if plan assets underperform this yield,
this will create a deficit. Plan assets are maintained with fund manager, LIC of India and SBI Life Insurance Company Limited.

The Company's assets are maintained in a trust fund managed by LIC and SBI Life Insurance Company Limited which has been
providing consistent and competitive returns over the years. The plan asset mix is in compliance with the requirements of the
respective local regulations.

Changes in bond yields:

A decrease in bond yields will increase plan liabilities.

Future salary escalation and inflation risk:

Rising salaries will often result in higher future defined benefit payments resulting in a higher present value of liabilities especially
unexpected salary increases provided at management's discretion may lead to uncertainties in estimating this risk.

Life expectancy

Increases in life expectancy of employee will result in an increase in the plan liabilities. This is particularly significant where
inflationary increases result in higher sensitivity to changes in life expectancy.

The weighted average duration of the defined benefit obligation is 8 years (31 March 2025 - 7 years). The expected maturity
analysis of gratuity is as follows:

Maturity Analysis of defined benefit obligation:

The expected maturity analysis of undiscounted gratuity is as follows :

The Company has no unsatisfied (or partially satisfied) performance obligations. Amount of unsatisfied (or partially satisfied)
performance obligations does not include contracts with original expected duration of one year or less since the Company
has applied the practical expedient in Ind AS 115.

Revenue from sale of services pertains to shipment services provided after transfer of control of the goods to the customers in
accordance with the contract.

*This includes government grants pertaining to indirect tax benefits availed under Industrial Promotion Scheme amounting to
? 16 crores (March 31, 2025 : ? 14 crores).

** This relates to government grants pertaining to indirect tax benefits availed under Remission of Duties or Taxes on Export
Products Scheme and Duty Drawback Scheme.

Note 34: Employee Share Based Payments

The Company has established two employees stock options plans ("ESOP 2010" and "ESOP 2016") for its employees pursuant to
the special resolution passed by shareholders at the annual general meeting held on July 14, 2010 and March 30, 2016 respec¬
tively . The plan also covers employees of subsidiaries and subsequent to the demerger of Global Services Business, it covers
those employees who were transferred to the STL Networks Limited, as required under the scheme of demerger. The employee
stock option plan is designed to provide incentives to the employees of the Company to deliver long-term returns and is an
equity settled plan. The ESOP Scheme is administered by the Nomination and Remuneration Committee. Participation in the plan
is at the Nomination and Remuneration Committee's discretion and no individual has a contractual right to participate in the
ESOP Scheme or to receive any guaranteed benefits. Options granted under ESOP scheme would vest in not less than one year
and not more than five years from the date of grant of the options. The Nomination and Remuneration Committee of the
Company has approved multiple grants with related vesting conditions. Vesting of the options would be subject to continuous
employment with the Company and hence, the options would vest with passage of time. In addition to this, the Nomination and
Remuneration Committee may also specify certain performance parameters subject to which the options would vest. Such
options would vest when the performance parameters are met.

Once vested, the options remain exercisable for a period of maximum five years. Options granted under the plan are for no
consideration and carry no dividend or voting rights. On exercise, each option is convertible into one equity share. The exercise
price is ? 2 per option.

The Company has charged ? 5 crores (March 31, 2025 : ? (1) crore (including discontinued operations amounting to ? 2 crores))
to the statement of profit and loss in respect of options granted under ESOP scheme.

b) Fair Value of the options granted during the year-

I "'i Ý Ý' : L -' : Ý il :Ý .. Ý Ý ' i' Ý - 'ii: - i . .1 3 Ý Ý Ý I: Ý Ý

the details or assumptions under the grant, related vesting conditions and fair valuation model used
based on the nature of vesting.

(I) Date of Grant- 25th July 2025

The Company has granted 5,41,603 options under ESOP scheme based on following criteria and related assumptions

1. Vesting criteria - Assured Vesting of 70% Of Options in four years, provided that employees are in service as on the
date of vesting.

2. Vesting criteria - 10% options will vest upon meeting of revenue targets, 10% options will vest upon meeting of Net Cash
Generation (NCG) targets and 10% options will vest upon meeting of Net Product Development (NPD) as per agreed business
plan for FY26.

Fair Valuation Method - Monte carlo simulation model

Vesting of these options is dependent on the achievement of target Revenue, NCG and NPD during the performance of FY
2025-26 as per the criteria determined by Nomination and Remuneration Committee (i.e., as per agreed business plan for FY26
based on consolidated Revenue, Net cash generation and NPD). The Monte carlo model requires the following information of
the company :

• The historical share price and expected volatility during the performance period

• Risk free interest rate of the company

• Dividend yield based on historical dividend payments

• Estimate of Revenue, NCG and NPD as per approved business plan

• Threshold of 70% achievement as per business plans and capped at 100% achievement

• Linear computation based on achievement against business plans.

2. Vesting criteria - 10% options will vest upon meeting of revenue targets, 10% options will vest upon meeting of Net Cash
Generation (NCG) targets and 10% options will vest upon meeting of Net Product Development (NPD) as per agreed business
plan for FY26.

Fair Valuation Method - Monte carlo simulation model

Vesting of these options is dependent on the achievement of target Revenue, NCG and NPD during the performance of
FY 2025-26 as per the criteria determined by Nomination and Remuneration Committee (i.e., as per agreed business plan for
FY26 based on consolidated Revenue, Net cash generatio and NPD). The Monte carlo model requires the following information
of the company :

2. Vesting criteria - 10% options will vest upon meeting of revenue targets, 10% options will vest upon meeting of Cash
Generation targets and 10% options will vest upon meeting of Product Development as per agreed business plan for FY26.

Fair Valuation Method - Monte carlo simulation model

Vesting of these options is dependent on the achievement of target Revenue, CG and PD during the performance of
FY 2025-26 as per the criteria determined by Nomination and Remuneration Committee (i.e., as per agreed business plan for
FY26 based on consolidated Revenue, CG and PD). The Monte carlo model requires the following information of the company :

• The historical share price and expected volatility during the performance period

• Risk free interest rate of the company

• Dividend yield based on historical dividend payments

• Estimate of Revenue, CG and PD as per approved business plan

• Threshold of 70% achievement as per business plans and capped at 100% achievement

• Linear computation based on achievement against business plans.

$In an earlier year, one of the Bankers of the Company had wrongly paid an amount of ? 25 crores under the letter of credit
facility. The letter of credit towards import consignment was not accepted by the Company, owing to discrepancies in the
documents. Thereafter, the bank filed claim against the Company in the Debt Recovery Tribunal (DRT). Against the DRT Order
dated 28 October 2010, the parties had filed cross appeals before the Debt Recovery Appellate Tribunal. The Debt Recovery
Appellate Tribunal vide its Order dated 28 January 2015 has allowed the appeal filed by the Company and has dismissed the
appeal filed by the bank. The bank has challenged the said order in Writ petition before the Bombay High Court. The manage¬
ment doesn't expect the claim to succeed and accordingly no provision for the contingent liability has been recognised in the
financial statements.

3. Prysmian Cables and Systems USA, LLC (Prysmian) filed a complaint in the U.S. District Court for the District of South Caroli¬
na, Columbia Division, against Stephen Szymanski, ("Szymanski'') an employee of Sterlite Technologies Limited's (STL) U.S.
subsidiary, Sterlite Technologies Inc. ("STI”), as well as against STI, alleging inter alia that Szymanski violated certain non-com-
pete and confidentiality agreements with the Plaintiff and subsequently divulged such confidential information to STI, which
Plaintiff further alleges provided STI with an unjust competitive advantage. Szymanski and STI asserted affirmative and meritori¬
ous defenses to the allegations. STL is not a party to this dispute neither are any claims being made against it.

On August 9, 2024, at the conclusion of the trial, which commenced on July 22, 2024, the Jury returned its verdict against
Szymanski for $ 0.2 million and against STI for an amount of $ 96.5 million. On September 11, 2024, STI filed post-judgement
motions requesting different types of post-triaI relief. On August 29, 2025, the Court subsequently confirmed the verdict, with
the total award amounting to $ 101.25 million including attorneys' fees and costs of $ 4.75 million.

STI believes the judgment is unsupported by the testimony and evidence presented at trial and has filed an appeal with the
United States Court of Appeals for the Fourth Circuit and deposited a Bond of $ 41.53 million. The ultimate financial implications,
if any, cannot be ascertained at this stage.

4. The Company is involved in patent litigation initiated by Fujikura in the United Kingdom relating to certain low-fibre-count
air-blown cables. The matter is currently under appeal. There is no injunction in place, and the Company continues its operations
and sales without disruption. At this stage, the financial impact, if any, cannot be reliably estimated and will be determined upon
conclusion of the appeal.

5. The Company had issued Corporate guarantees amounting to ? 114 crores to the Income tax Authorities in FY 2003-04 on
behalf of the Group companies. The matter against which corporate guarantee was paid by STL was decided in favour of the
Group companies by both ITAT and HC orders against which the Department has filed an appeal with the Supreme Court. The
above corporate guarantee is backed by the corporate guarantee issued by Volcan Investments Limited (now known as Vedanta
Incorporated Bahamas) (refer note 47) in the favour of the Company

6. The Company has not provided for disputed liabilities disclosed above arising from disallowances made in assessments which
are pending with different appellate authorities for its decision. The Company is contesting the demands and the management,
including its tax advisor, believe that its position will likely be upheld in the appellate process. No liability has been accrued in the
financial statements for the demands raised. The management believes that the ultimate outcome of these proceedings will not
have a material adverse effect on the Company's financial position. In respect of the claims against the company not acknowl¬
edged as debts as above, the management does not expect these claims to succeed. It is not practicable to indicate the uncer¬
tainties which may affect the future outcome and estimate the financial effect of the above liabilities.

#The above does not include contingent liabilities relating to demerged undertaking (Global Services Business) which had been
transferred to STL Networks Limited pursuant to Scheme of Arrangement for Demerger referred in Note 15. The Company is
contesting these litigations on advice of STL Networks Limited and in case of any unfavourable outcome, STL Networks Limited
will reimburse the demand and all the related costs to the Company

7. Demands and disputes considered as remote

a) In the FY21-22, the Company had received show cause notices with respect to 4 Service tax registrations of ? 57 crores each
demanding service tax on difference between value of services appearing in 26AS (at legal entity level) vis-a-vis respective
service tax registrations for the period 2016-17. Out of these 4 show cause notices, 3 cases were heard and got converted in
Order, by subsuming 2 order and dropping the demand of ? 6 crores and thereby confirming the demand of ? 51 crores. Manage¬
ment has assessed the said case and it is not required to be disclosed as contingent liability as it is erroneous in nature and the
probability of an unfavourable outcome is remote.

b) The Company has certain ongoing direct and indirect tax related litigations other than those disclosed above. Management
believes that is has sufficient and strong arguments on facts as well as on point of law and accordingly these litigation have been
considered to have a remote possibility of outflow of resources. The amounts involved for indirect tax matter (Service Tax and
Goods and Services Tax) is ? 5 crores and for direct tax matters is ? 112 crores.

c) The Company has certain on-going litigations by/or against the Company with respect to other legal matters, other than
those disclosed above. The Company believes that it has sufficient and strong arguments on facts as well as on point of law and
accordingly no provision/disclosure in this regard has been considered in the financial statements.

Note 38: Details of Loans and Advances given to Subsidiaries

The details are provided as required by regulation 53 (f) read with Para A of Schedule V to SEBI (Listing Obligation and
Disclosure Requirements) Regulations, 2015.

‘Closing capital employed = Tangible net worth Gross debt Deferred tax liability -Deferred tax assets - Intangible assets
The ratios are provided for continuing operations.

Note: Explanation for change in ratio by more than 25%

(i) The variation is due to higher profitability during the current year on account of better margins and cost control measures.

(ii) The movement is attributable to positive net current assets as at March 31, 2026, primarily due to certain loans to subsidiaries
classified as current based on expected recovery within one year.

(iii) The variation is on account of reduction in loan balance pertaining to domestic subsidiaries during the current year.

(iv) Ratio has improved mainly due to improved profitability and lower finance cost in current year and lower repayment of long
term borrowings

(v) Ratio has improved primarily due to certain loans to subsidiaries classified as current based on expected recovery within one
year.

(vi) The increase is primarily attributable to improved collections during the year, leading to lower average receivable days.

(vii) The increase is mainly due to faster/timely settlement of payables during the year.

Note 42: Relationship With Struck Off Companies

The Company does not have any transactions with companies struck- off under section 248 of the Companies Act, 2013 or
section 560 of Companies Act, 1956.

Note 43: Corporate Social Responsibility

The Company has spent an amount of ? 1 crore (March 31, 2025: ? 3 crores) during the year as required under section 135
of the Companies Act, 2013 for the areas of education, healthcare, woman empowerment and environment.

Note 44: Financial Risk Management

The Company's principal financial liabilities, comprise borrowings, acceptances, trade and other payables and other
financial liabilities. The main purpose of these financial liabilities is to finance the Company's operations. The Company's
principal financial assets include Investments, loans, trade and other receivables, cash and short-term deposits and other
financial assets that arise directly from its operations. The Company also enters into derivative transactions.

The Company's activities expose it to market risk, credit risk and liquidity risk. The Company's senior management oversees
the activities to manage these risks. All derivative activities for risk management purposes are carried out by specialist
teams that have the appropriate skills, experience and supervision. It is the Company's policy that no trading in derivatives
for speculative purposes should be undertaken.

The Risk Management policies of the Company are established to identify and analyse the risks faced by the Company, to
set appropriate risk limits and controls and to monitor risks and adherence to limits. Risk management policies and systems
are approved and reviewed regularly by the Board to reflect changes in market conditions and the Company's activities.

Management has overall responsibility for the establishment and oversight of the Company's risk management framework.
The risks to which Company is exposed and related risk management policies are summarised below:

(a) Market risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in
market prices. Market risk comprises three types of risk: interest rate risk, currency risk and price risk, such as equity price
risk and commodity risk. Financial instruments affected by market risk mainly includes loans given and borrowings, financial
assets and liabilities in foreign currency, investments and derivative financial instruments.

The sensitivity analysis in the following sections relate to the position as at 31 March 2026 and 31 March 2025.

The sensitivity analysis have been prepared on the basis that the amount of debt, the ratio of fixed to floating interest rates
of the debt, derivatives and the proportion of financial instruments in foreign currencies are all constant and on the basis of
hedge designations in place at 31 March 2026 and 31 March 2025.

Interest rate risk

Interest rate risk is the risk that the fair value or the future cash flows of a financial instrument will fluctuate because of
changes in interest rates. The Company's exposure to the risk of changes in interest rate primarily relates to the Company's
debt obligations with floating interest rates.

The Company is exposed to the interest rate fluctuation in domestic as well as foreign currency borrowing. The Company
manages its interest rate risk by having a balanced portfolio of fixed and variable rate borrowings. At 31 March 2026,
approximately 47% of the Company's borrowings are at a fixed rate of interest (31 March 2025: 91%).

The exposure of the company's borrowing to interest rate changes at the end of the reporting period are as follows:

The company operates internationally and is exposed to foreign exchange risk arising from foreign currency transactions,
primarily with respect to the USD, EURO and GBP. Foreign exchange risk arises from future commercial transactions and
recognised assets and liabilities denominated in a currency that is not the company's functional currency (?). The risk is
measured through a forecast of highly probable foreign currency cash flows. The objective of the hedges is to minimise the
volatility of the ? cash flows of highly probable forecast transactions.

The Company has a policy to keep minimum forex exposure on the books including for that which are likely to occur within
a 15-month period for hedges of forecasted sales and purchases. As per the risk management policy, foreign exchange
forward contracts are taken to hedge its exposure in the foreign currency risk. During the year ended 31 March 2026 and
2025, the company did not have any hedging instruments with terms which were not aligned with those of the hedged
items.

When a derivative is entered into for the purpose of hedge, the Company negotiates the terms of those derivatives to
match the terms of the underlying exposure. For hedges of forecast transactions the derivatives cover the period of
exposure from the point the cash flows of the transactions are forecasted up to the point of settlement of the resulting
receivable or payable that is denominated in the foreign currency.

Out of total foreign currency exposure the Company has hedged the significant exposure as at 31 March 2026 and as at 31
March 2025. The Company exposure to foreign currency risk at the end of the year expressed in ? are as follows:

The following tables demonstrate the sensitivity to a reasonably possible change in USD, EUR and GBP exchange rates,
with all other variables held constant. The impact on the Company's profit before tax is due to changes in the fair value of
monetary assets and liabilities. The impact on the Company's pre-tax equity is also due to changes in the fair value of
forward exchange contracts designated as cash flow hedges. The Company's exposure to foreign currency changes for all
other currencies is not material. With all the other variable held constant, the Company's profit before tax is affected
through the impact on change of foreign currency rate as follows:

Commodity price risk

The Company is affected by the price volatility of certain commodities. Its operating activities require the ongoing
purchase and manufacture of copper cables and therefore require a continuous supply of copper. To meet requirements
the company enters into contracts to purchase copper. The prices in these purchase contracts are linked to the price on
London Metal Exchange. The company is dependent on key raw materials from sources outside India for its production of
optic fibre. These raw materials are not traded on a centralised commodity exchange, the Company sources these materials
from qualified suppliers, with pricing referenced to prevailing market benchmarks. Exposure to price volatility is heightened
by the concentrated nature of global supply and may be impacted by geo-political situations. The company has a manage¬
ment strategy to mitigate the risk by having/exploring alternate sources of supplies and maximizing productivity.

The Company has a risk management strategy to mitigate commodity price risk.

Price risk

The Company has investments mainly in wholly owned subsidiaries. These investment 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 by placing limits on individual and total equity instruments. Reports on the equity portfolio are
submitted to the Company's senior management on a regular basis. The Company's Board of Directors review and
approve all equity investment decisions.

The Company also invests into highly liquid mutual funds which are subject to price risk changes. These investments are
generally for short duration and therefore impact of price changes is generally not significant.

(b) Credit risk

Credit risk is the risk that a counterparty will not meet its obligations under a contract, leading to a financial loss. The
Company is exposed to credit risk from its operating activities (primarily trade receivables) and from its investing activities,
including deposits with banks, foreign exchange transactions and other financial instruments.

Trade receivables

Customer credit risk is managed by each business unit subject to the Company's established policy, procedures and control
relating to customer credit risk management. Credit quality of a customer is assessed taking into account its financial
position, past experience and other factors, e.g. credit rating and individual credit limits are defined in accordance with
credit assessment. Outstanding customer receivables are regularly monitored.

The Company provides for expected credit loss of trade receivables based on life-time expected credit losses (simplified
approach). The expected credit losses is assessed using a provision matrix as per the practical expedient prescribed under
Ind AS 109.

A provision matrix is used to measure the lifetime expected credit losses as per the practical expedient prescribed under
Ind AS 109. The trade receivables and contract assets are mainly related to contracts for sale of goods and time and
material contracts. A review is performed at each reporting date on an individual basis for any specific provision consider¬
ing facts and circumstances. In addition, a large number of smaller receivable balance are grouped into homogenous
groups and assessed for impairment collectively using a provision matrix. The assessment is based on historical information
of defaults adjusted for forward looking information. The maximum exposure to credit risk at the reporting date is the
carrying value of each class of financial assets.

The Company does not hold collateral as security. The Company evaluates the concentration of risk with respect to trade
receivables as low, as its customers are located in several jurisdictions and operate in largely independent markets.

The Company has given interest bearing loans to its subsidiaries which are repayable on demand. Further, certain external
loans taken by the subsidiaries are guaranteed by the Company. The loans and financial guarantees given to subsidiaries
are reviewed and assessed for impairment at each reporting date under Ind AS 109. The inter-company loans have been
provided to the subsidiaries for operational purposes and with an expectation of an extended gestation period. The
Company intends to allow the subsidiaries to continue trading and expects to recover the loans from the cash generated
from operations. The Company reviews the cash flow projections where it has used certain estimates at the year end to
assess if any provision towards expected credit loss needs to be made. The gross carrying amount of loans for which credit
risk has not increased significantly since initial recognition is ? 643 crores (31 March 2025: ? 464 crores). The gross carrying
amount of loans for which expected credit loss has increased significantly since initial recognition and are credit impaired is
? 41 crores (31 March 2025 :? 21 crores). The expected credit loss allowance for the loan where credit risk has increased
significantly is determined considering the valuation report by an independent valuer of such intercompany's assets.

Financial assets and cash deposits

Credit risk from balances with banks and financial institutions is managed by the Company's treasury department in
accordance with the Company's policy. Investments of surplus funds are made only with approved counterparties and
within credit limits assigned to each counterparty. Counterparty credit limits are reviewed by the Company on an annual
basis, and may be updated throughout the year. The limits are set to minimise the concentration of risks and therefore
mitigate financial loss through counterparty's potential failure to make payments. The credit default risk on balances with
banks and financial institutions is considered to be negligible.

The Company's maximum exposure to credit risk for the components of the balance sheet at 31 March 2026 and 31 March
2025 is the carrying amounts of each class of financial assets.

(c) Liquidity risk

Liquidity risk is the risk that the Company may encounter difficulty in meeting its present and future obligations associated
with financial liabilities that are required to be settled by delivering cash or another financial asset. The Company's objec¬
tive is to, at all times, maintain optimum levels of liquidity to meet its cash and collateral obligations. The Company requires
funds both for short term operational needs as well as for long term investment programs mainly in growth projects. The
Company closely monitors its liquidity position and deploys a robust cash management system. It aims to minimise these
risks by generating sufficient cash flows from its current operations, which in addition to the available cash and cash
equivalents, liquid investments and sufficient committed fund facilities which will provide liquidity.

The liquidity risk is managed on the basis of expected maturity dates of the financial liabilities. The average credit period
for trade payables/acceptances is about 60 -180 days. The other payables are with short term durations. The carrying
amounts are assumed to be reasonable approximation of fair value. The table below summarises the maturity profile of the
Company's financial liabilities based on contractual undiscounted payments:

Note 44: Financial Risk Management

Cash flow hedges

Foreign exchange forward contracts are designated as hedging instruments in cash flow hedges of highly probable
forecast transactions/firm commitments for sales and purchases mainly in USD, EUR and GBP. The foreign exchange option
contracts are designated as hedging instruments in cash flow hedges of USD Borrowings. The foreign exchange forward
contract and option contract balances vary with the level of expected foreign currency sales and purchases and
changes in foreign exchange forward rates.

The cash flow hedges for such derivative contracts as at 31 March 2026 were assessed to be highly effective and a net
unrealised gain / (loss) of ? (21) crores, with a deferred tax asset of ? 5 crores relating to the hedging instruments, is
included in OCI. Comparatively, the cash flow hedges as at 31 March 2025 were assessed to be highly effective and an
unrealised gain / (loss) of ? (1) crores, with a deferred tax asset of ? 0 crore relating to the hedging instruments, was
included in OCI. The amounts retained in OCI at 31 March 2026 are expected to mature and affect the statement of profit
and loss during the year ended 31 March 2027.

*The foreign exchange forward contracts are denominated in the same currency as the highly probable future
sales therefore the hedge ratio is 1:1.

The Company's hedging policy requires for effective hedge relationships to be established. Hedge effectiveness is deter¬
mined at the inception of the hedge relationship and through periodic prospective effectiveness assessments to ensure
that an economic relationship exists between the hedged item and hedging instrument. The company enters into hedge
relationships where the critical terms of the hedging instrument match exactly with the terms of the hedged item, and so a
qualitative assessment of effectiveness is performed. If changes in circumstances affect the terms of the hedged item such
that the critical terms no longer match exactly with the critical terms of the hedging instrument, the company uses the
hypothetical derivative method to assess effectiveness.

Ineffectiveness is recognised on a cash flow hedge where the cumulative change in the designated component value of the
hedging instrument exceeds on an absolute basis the change in value of the hedged item attributable to the hedged risk. In
hedges of foreign currency forecast sale may arise if:

Ý the critical terms of the hedging instrument and the hedged item differ (i.e. nominal amounts, timing of the forecast
transaction, interest resets changes from what was originally estimated), or

Ý differences arise between the credit risk inherent within the hedged item and the hedging instrument.

Refer note 17 for the details related to movement in cash flow hedging reserve.

Note 45: Capital Management

For the purpose of the Company's capital management, capital includes issued equity capital and all other equity reserves
attributable to the shareholders of the Company. The primary objective of the Company's capital management is to ensure
that it maintains a strong credit rating, healthy capital ratios in order to support its business and maximise shareholder
value and optimal capital structure to reduce cost of capital.

The Company manages its capital structure and makes adjustments to it in light of changes in economic conditions and the
requirements of the financial covenants. To maintain or adjust the capital structure, the Company may adjust the dividend
payment to shareholders, return capital to shareholders or issue new shares. The Company monitors capital using a gearing
ratio, which is net debt divided by total capital plus net debt. The Company's policy is to keep the gearing ratio optimum.
The Company includes within net debt interest bearing loans and borrowings less cash and cash equivalents excluding
discontinued operations.

The recent investments by the Company in new businesses, increasing the capacity of existing businesses and increase in
working capital due to certain projects has lead to increase in capital requirement. The Company expects to realise the
benefits of these investments in near future.

*includes other bank balance of ? 2 crores (31 March 2025 : ? 50 crores) with respect to fixed deposit excluding deposits
held as lien by banks against bank guarantees and current investments in liquid funds of ? 4 crores (31 March 2025 : Nil).
These fixed deposits can be encashed by the Company at any time without any major penalties.

In order to achieve this overall objective, the Company's capital management, amongst other things, aims to ensure that it
meets financial covenants attached to the interest-bearing loans and borrowings that define capital structure requirements.
Breaches in meeting the financial covenants would permit the bank to immediately call loans and borrowings. There have
been no breaches in the financial covenants of any interest-bearing loans and borrowing in the current year and previous
year.

No changes were made in the objectives, policies or processes for managing capital during the years ended 31 March 2026
and 31 March 2025.

Note 46: Fair Values

a) Financial Instruments by Category

Set out below, is a comparison by class of the carrying amounts and fair value of the Company's financial instruments,
other than those with carrying amounts that are reasonable approximations of fair values as of the year end:

Level 1 : The fair value of financial instruments traded in active markets is based on quoted market prices at the
end of the reporting period. The mutual funds are valued using the closing NAV. These instruments are included in
level 1.

Level 2: The fair value of financial instruments that are not traded in an active market is determined using valua¬
tion techniques which maximise the use of

observable market data and rely as little as possible on entity-specific estimates. If all significant inputs required to
fair value an instrument are observable, the instrument is included in level 2.

Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is included
in level 3.

There have been no transfers among Level 1, Level 2 and Level 3.

c) Valuation technique used to determine fair value

The fair value of the financial assets and liabilities is included at the amount at which the instrument could be
exchanged in a current transaction between willing parties, other than in a forced or liquidation sale. The following
methods and assumptions were used to estimate the fair values:

The fair value of mutual funds are based on NAV at the reporting date

The Company enters into derivative financial instruments with financial institutions with investment grade credit
ratings. The foreign currency forwards - the present value of the future cash flows based on the forward exchange
rates at the balance sheet date.

The fair value of foreign exchange option contracts is obtained from counterparty banks, who determines it using
valuation models that use inputs which are observable for the contracts, such as interest rates and yield curves,
implied volatilities etc.

d) Valuation processes

The finance department of the Company includes a team that oversees the valuations of financial assets and
liabilities required for financial reporting purposes, including level 3 fair values.

External valuers are involved for valuation of significant assets, such as unquoted financials assets. Involvement of
external valuers is decided by the valuation team. Selection criteria includes market knowledge, reputation,
independence and whether professional standards are maintained. The Valuation team decides, after discussions
with the company's external valuers, which valuation techniques and inputs to use for each case.

The management assessed that cash and cash equivalents, trade receivables, trade payables, acceptances, other
current assets and liabilities approximate their carrying amounts largely due to the short-term maturities of these
instruments. Further the loans given are loans repayable on demand. The management has further assessed that
borrowings availed and loans given approximate their carrying amounts largely due to the interest rates being
variable or in case of fixed rate borrowings/loans, movements in interest rates from the recognition of such
financial instrument till period end not being material.

" The Company has paid / provided for managerial remuneration in accordance with the requisite approvals
mandated by the provisions of Section 197 read with Schedule V to the Act except for managerial
remuneration aggregating to ? 3 crores. The Company proposes to seek the necessary approval of the
shareholders by way of a special resolution in the ensuing Annual General Meeting. ¹

(E) Terms and Conditions

a) n.-i- c a Ý no -o o ÝÝÝ ¹"'-s ior r:y ~r.-t->r Ý — .-r.-'i t-r -' V I-Ý .t.

other shareholders.

b) All outstanding balances are unsecured and repayable in cash.

^c) i ÝÝ -Ý (hfr f :=- fr\. I?: T Ý' C Sr- !Ý - ' ' ¹ .ÝÝ" - ( Ý - j- ÝÝÝ ’ :v :E :Ý j; ' -.t Ý r

d) ""~c c:jrs:."'.'id iv tmcs o' c-: "ic-i-; i:: ;:;ol vt c-c uss j.^: oja; : ;n:^! o :

applicable;.

e) I in:- Ý::!.ÝÝÝ Ýy.yh-il.k: cr _o.ii. . r.lv-r '..:..- >..ÝÝ. yn-l I' ÝÝÝv Ý: a.i it ,i Ý ;;u k'.'vi;:.. '.

debentures from related parties are net of impairment loss.

(F) Consequent to the Scheme of Arrangement referred in Note 15, the Company (STL) and STL Networks
Limited (STNL) have been in process for separation of banking limits and other factoring arrangements
for STNL. Pending such separation, as per the Scheme referred to in Note 15, STL is temporarily facilitating
banking transactions on behalf of the STNL on a passthrough basis. Also, pending novation of certain
customer contracts in favour of STNL, the Company raises invoices and makes collections on behalf of STNL.
These are administrative arrangements and do not alter the primary rights and obligation for assets and
liabilities that have been transferred to STNL under the Scheme. Amounts paid, received or facilities
utilized by the Company on behalf of STNL are recorded as balances receivable from/payable to STNL

and are recoverable/settled in the ordinary course of business.

(G) During the current year, a guarantee of ? 347 crores was given on behalf of STL Networks Limited, fellow
subsidiary, consequent to the scheme of arrangement for demerger, for the purpose of counter guarantees
for certain banking arrangements.

(H) Excludes payables disclosed under Acceptances (Note 20).

Note 49: Segment Reporting

The Company has presented segment information in the Consolidated Financial Statements which are
part of in the same annual report. Accordingly, in terms of provisions of Ind AS 108 'Operating Segments',
no disclosures related to segments are presented in these Standalone Financial Statements.

Note 50: Advances Under Advance Payment And Sales Agreement (APSA)

During prior years, the Company had received an interest-bearing advance of ? 207 crores under an
Advance Payment and Sales Agreement (APSA). The advance received is recongnized as a current financial
liability in accordance with the terms of the agreement and requirements of Ind AS 109 (Financial
Instruments). The outstanding balance as on March 31, 2026 is ? 167 crores (March 31, 2025 : ? 181 crores).

Note 51: Exceptional items

On November 21, 2025, the Government of India notified four Labour Codes - the Code on Wages, 2019,
the Industrial Relations Code, 2020, the Code on Social Security, 2020, and the Occupational Safety,

Health and Working Conditions Code, 2020 - consolidating 29 existing labour laws. The Ministry of
Labour & Employment published draft Central Rules and FAQs to enable assessment of the financial
impact due to changes in regulations. The Company has assessed and disclosed the incremental impact of
these changes on the basis of best information available, consistent with the guidance provided by the
Institute of Chartered Accountants of India. Considering the materiality and regulatory-driven, non-recurring
nature of this impact, the Company has presented such incremental impact as "Statutory impact of new
Labour Codes" under "Exceptional Items" in the standalone financial statements for the year ended
March 31, 2026. The incremental impact consisting of gratuity of ? 8 crores and long-term compensated
absences of ? 2 crores primarily arises due to change in wages definition. The Company continues to
monitor the finalisation of Central / State Rules and clarifications from the Government on other
aspects of the Labour Code and would provide appropriate accounting effect on the basis of such
developments as needed.

Note 52: Rounding Off

All amounts disclosed in the financial statements and notes have been rounded off to the nearest crores
as per the requirement of Schedule III. unless otherwise stated. Amounts below rounding off norm fol
lowed by the Company are disclosed as “0".

Note 53: Previous Year Figures

Previous year figures have been reclassified to conform to th:S year's classification.

1

Share-based payments include the perquisite value of stock incentives exercised during the year, determined
in accordance with the provisions of the Income-tax Act,1961.