(c) Terms/rights attached to equity shares

The Company has only one class of equity shares having par value of C 1 per share. Each holder of equity share is entitled to one vote per share. The Company declares dividend in Indian Rupees. The dividend, if any, proposed by the Board of Directors is subject to approval of the Shareholders in the ensuing Annual General Meeting.

In the event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets of the Company after payment of all liabilities. The distribution will be in proportion to the number of equity shares held by the shareholders.

(d) Aggregate number of bonus shares issued, shares issued for consideration other than cash and shares bought back during the period of five years immediately preceding the reporting date:

In accordance with Section 68 of the Companies Act, 2013 and buy back regulations of SEBI, the Company has not buy back any equity shares during the five years immediately preceding 31^st March, 2026.

Also, during the five years immediately preceding 31^st March, 2026, the Company has not allotted any equity shares as bonus shares and also not issued any share for consideration other than cash.

As per records of the Company, including its register of shareholders/members and other declarations received from shareholders regarding beneficial interest, the above shareholding represents both legal and beneficial ownership of shares.

(f) (i) Employees Stock Option Scheme (JSPL ESOP Scheme-2017)

The Board of Directors in its meeting held on 8^th August, 2017 approved the JSPL Employee Stock Option Plan 2017 (JSPL ESOP Scheme-2017) and the same was approved by the shareholders in the Annual General Meeting held on 22^nd September 2017, in accordance with SEBI (Share Based Employee Benefits) Regulations 2014.

Pursuant to the JSPL ESOP Scheme-2017, the Company may grant upto 4,50,00,000 options convertible into equal number of equity shares of C 1 each.

The Nomination and Remuneration Committee of the Board in its meeting held on 5^th January, 2018 granted 51,21,735 options convertible into equal number of equity shares of the Company to the eligible employees of the Company and its subsidiaries, at an exercise price of C 244.55 per option. As per JSPL ESOP Scheme-2017, the vesting period shall not be less than one year and maximum period will be three years. The employee shall exercise his options within a period of six months from respective vesting. 50,45,222 options have been surrendered/lapsed and balance outstanding as on 31^st March 2021 was 76,513 options (vesting schedule is over and period of exercise is six month from respective vesting schedule). During the year ended 31^st March 2022, the Company had allotted 72,126 equity shares at an exercise price of C 244.55 per share including premium of C 243.55 per share to the eligible employees of the Company and its subsidiaries, under JSPL ESOP Scheme - 2017 and balance outstanding is NIL option as on 31^st March, 2026.

(ii) Employee Stock Option Scheme/Employee Share Purchase Scheme

The Board of Directors in its meeting held on 25^th April, 2013 and 9^th August, 2018 approved JSPL ESPS-2013 and JSPL ESPS-2018 respectively and the same were approved by the shareholders through Postal Ballot on June 21, 2013 and in the Annual General Meeting held on September 28, 2018 respectively, in accordance with the Securities and Exchange Board of India (Share Based Employee Benefits ) Regulations, 2014.

Equity Shares/grants as per JSPL ESPS-2013 and JSPL ESPS-2018 will be allotted in upcoming financial years.

(iii) Jindal Steel Employee benefit scheme-2022

In March 2022, the Company instituted the Jindal Steel Employee Benefit Scheme - 2022 (formerly known as Jindal Steel & Power Employee Benefit Scheme - 2022) ("ESOP Scheme 2022”) to provide equity-based remuneration to all its eligible employees, including those of its Group Company(ies) including subsidiary or its Associate company(ies), in India or outside India or of a holding company, of the Company. The Scheme is administered by the Nomination and Remuneration Committee (NRC) of the Board of Directors of the Company and is implemented through Jindal Steel Employee Benefit Trust (formerly known as JSP Employee Benefit Trust) (""Trust""). A maximum of 5,10,00,798 options may be granted under the Scheme. Each option granted under the Scheme entitles the holder to one fully paid up equity share of the Company at an exercise price, which will be decided by the Board of Directors (which term shall be deemed to include the Nomination and Remuneration Committee).

Till 31^st March 2024, the Trust had acquired 1,76,60,427 nos. of equity shares (Treasury Shares) (including 93,51,748 nos., 57,08,679 nos. and 26,00,000 nos. during FY 2021-22, FY 2022-23 and FY 2023-24 respectively). Pending allocation/apportion of Treasury Shares, the Trust has sold 93,51,748 nos. of equity shares in July 2024 (which were acquired during FY 2021-22) and 57,08,679 nos. of equity shares during the year (which were acquired during FY 2022-23), being the unapportion inventory of Treasury shares not backed by ESOP grants and the net gain of C 374.69 crore (net of tax of C 51.09 crore) and C 302.02 crore (net of tax of C 53.22 crore) on this has been recognised under "Other Equity” in the year ended 31^st March, 2025 and 31^st March, 2026 respectively.

During the year, pursuant to the recommendation of the Nomination and Remuneration Committee (NRC) and approval of the Board of Directors and shareholders dated October 4, 2025 and November 22, 2025 respectively, the Company has amended the ESOP Scheme 2022 and thereafter the NRC, at its meeting held on December 20, 2025 and February 13, 2026, approved the grant of ESOPs and consequently the Company has granted stock options (5,96,939 Options granted on December 20, 2025 & 80,695 Options granted on February 13, 2026) to eligible employees of the Company and its subsidiaries under the ESOP Scheme 2022. Each option is convertible into 1 (one) equity share of face value of C 1 each. The exercise price of the options is face value plus amount equal to 50% of the market price.

Further, the Company has requested SEBI to grant an additional 12 months period to appropriate the remaining unallocated inventory of 19,22,366 nos. shares acquired by the Trust in FY 2023-24.

(i) Securities Premium Reserve represents the amount received in excess of par value of securities issued by the company. This reserve is utilised/to be utilised in accordance with provisions of the Act.

(ii) Capital Redemption Reserve represents the statutory reserve created on buy back of shares. It is not available for distribution.

(iii) Dividend excludes dividend paid to Jindal Steel Employee Benefit Trust (formerly known as JSP Employee Benefit Trust) of C 0.52 crore (31^st March, 2025 C 1.66 crore) (read with note no. 57)

(iv) Share Option Outstanding Account relate to stock option granted by the company to employee under Jindal Steel Employees Benefit Scheme - 2022 (refer note no. 20(f)(iii))

(v) Other Comprehensive income reserve represents the balance in equity for items to be accounted in classified into Items that will not be reclassified to profit & loss.

I Term Loans from Banks

(i) Loans of C 739.90 crores (March 31, 2025 C 904.48 crores ) are secured as under:

» First pari-passu charge over entire immovable properties (except leasehold land having aggregate area of 1,716.17 acres at Angul, Odisha) pertaining to 6 million tonnes per annum steel plant of the company situated at Angul, Odisha, both present and future;

» First pari-passu charge over all movable fixed assets pertaining to 6 million tons per annum steel plant of the company situated at Angul, Odisha by way of hypothecation, both present and future and

» Second ranking pari-passu charge by way of hypothecation over all the current assets of the company, both present and future.

Repayment schedule of this loan is as follows:

The loan has been repaid on 27^th April, 2026.

(ii) Term Loans of C355.63 crores (March 31, 2025 C 2,740.54 crores) are secured as under:

» First pari-passu charge over entire immovable properties (except leasehold land having aggregate area of 1,716.17 acres at Angul, Odisha) pertaining to 6 million tonnes per annum steel plant of the company situated at Angul, Odisha, both present and future;

» First pari-passu charge over all movable fixed assets pertaining to 6 million tons per annum steel plant of the company situated at Angul, Odisha by way of hypothecation, both present and future;

» Second ranking pari-passu charge by way of hypothecation over all the current assets of the company, both present and future.

Repayment schedule of these Term loans are as follows:

Loans of C 355.63 crores is repayable in upcoming 5 quarterly instalments and the next instalment is due on

30^th June, 2026.

(iii) Loans of C 149.24 crores (March 31, 2025 C 313.44 crores) are secured as under:

» First ranking pari-passu mortgage over entire immovable properties (including freehold and leasehold aggregate area of approx. 249 acres of land at Barbil Plant, Odisha) of the company situated at Barbil Odisha, both present and future and

» First ranking pari-passu charge by way of hypothecation over all movable fixed assets of the company situated at Barbil Odisha, both present and future of the company.

Repayment schedule of these Term loans are as follows:

Loans of C 149.24 crores is repayable in upcoming 4 quarterly instalments and the next instalment is due on

30^th June, 2026

(iv) Loans of C 249.92 crores (March 31, 2025 C 416.61) are secured as under:

» First pari-passu charge over entire immovable properties (except leasehold land having aggregate area of 1,716.17 acres at Angul, Odisha) pertaining to 6 million tonnes per annum steel plant of the company situated at Angul, Odisha, both present and future. Subsequent to March 31, 2026, the said security has been waived by the Bank

» First pari-passu charge over all movable fixed assets pertaining to 6 million tonnes per annum steel plant of the company situated at Angul, Odisha by way of hypothecation, both present and future.”

Repayment schedule of this Term loan is as follows:

Loans of C 249.92 crores is repayable in upcoming 3 half yearly instalments and the next instalment is due on

30^th September, 2026.

(v) Term Loans of C 1,066.54 crores (March 31, 2025 K Nil) are secured as under:

» First pari-passu charge over entire immovable properties (except leasehold land having aggregate area of 1,716.17 acres at Angul, Odisha) pertaining to 6 million tonnes per annum steel plant of the company situated at Angul, Odisha, both present and future (Security to be created) and

» First pari-passu charge over all movable fixed assets pertaining to 6 million tonnes per annum steel plant of the company situated at Angul, Odisha by way of hypothecation, both present and future.”

Repayment schedule of this Term loan is as follows:

Loans of C 1,066.54 crores is repayable in upcoming 16 quarterly instalments and the next instalment is due on

30^th June, 2026.

(vi) Loans of K Nil (March 31, 2025 K 205.39 crores) were secured as under:

» First pari-passu charge over entire immovable properties (except leasehold land having aggregate area of 1,716.17 acres at Angul, Odisha) pertaining to 6 million tonnes per annum steel plant of the company situated at Angul, Odisha, both present and future of the company (Security is to be created) however entire loan has been repaid on 2^nd April, 2025 and

» First pari-passu charge over all movable fixed assets pertaining to 6 million tonnes per annum steel plant of the company situated at Angul, Odisha by way of hypothecation, both present and future;

» First pari-passu mortgage over the newly allocated coal mines (i.e Utkal BI & B2 and Utkal C coal mines in Odisha and Gare Palma IV/6 coal mine in Chhattisgarh), etc (Security over Utkal B2 coal mine is to be created) however entire loan has been repaid on 2^nd April, 2025 and

» Second ranking pari-passu charge by way of hypothecation over all the current assets of the company, both present and future.”

(vii) Term Loans of K50.00 crores (March 31, 2025 K Nil) are secured as under:

» First pari-passu charge over entire immovable properties (except leasehold land having aggregate area of 1,716.17 acres at Angul, Odisha) pertaining to 6 million tonnes per annum steel plant of the company situated at Angul, Odisha, both present and future (security to be created)

» First pari-passu charge over all movable fixed assets pertaining to 6 million tons per annum steel plant of the company situated at Angul, Odisha by way of hypothecation, both present and future;

» Second ranking pari-passu charge by way of hypothecation over all the current assets of the company, both present and future.

Repayment schedule of these loans is as follows:

Loans of C50.00 crores is repayable in upcoming 34 quarterly instalments and the first instalment is due on

31^st December, 2026.

(viii) Term Loans of K995.80 crores (March 31, 2025 K Nil) are secured as under:

» First pari-passu charge over all movable fixed assets pertaining to 6 million tons per annum steel plant of the company situated at Angul, Odisha by way of hypothecation, both present and future and

» Second ranking pari-passu charge by way of hypothecation over all the current assets of the company, both present and future.

Repayment schedule of this Term loan is as follows:

Loans of C 995.80 crores is repayable in upcoming 20 quarterly instalments and the next instalment is due on 30^th June, 2026.

(ix) Term Loans of K200 crores (March 31, 2025 K Nil) are secured as under:

» First pari-passu charge over all movable fixed assets pertaining to 6 million tons per annum steel plant of the company situated at Angul, Odisha by way of hypothecation, both present and future and

» Second ranking pari-passu charge by way of hypothecation over all the current assets of the company, both present and future.

Repayment schedule of this Term loan is as follows:

Loans of C200 crores is repayable in upcoming 20 quarterly instalments and the first instalment is due on 30^th June, 2026.

(x) Term Loans of K1,100 crores (March 31, 2025 K Nil) are secured as under:

» First pari-passu charge over all movable fixed assets pertaining to 6 million tons per annum steel plant of the company situated at Angul, Odisha by way of hypothecation, both present and future.

Repayment schedule of this Term loan is as follows:

Loans of C1,l 00 crores is repayable in upcoming 20 quarterly instalments and the first instalment is due on 30^th June, 2026.

II Term Loans from Others

(i) Term Loans of K899.96 crores (March 31, 2025 K Nil) from Exim Bank are secured as under:

» First pari-passu charge over all movable fixed assets pertaining to 6 million tonnes per annum steel plant of the company situated at Angul, Odisha by way of hypothecation, both present and future.

Repayment schedule of this Term loan is as follows:

Loans of C899.96 crores is repayable in upcoming 14 quarterly instalments and the next instalment is due on 30^th June, 2026.

I Cash Credit from Banks and Buyer's Credit

The working capital facility mentioned in 26 (i) & 26 (ii) of C 311.92 crore (31^st March, 2025 C 585.72 crore) are secured by way of

» First ranking pari-passu charge by way of hypothecation over all the current assets, both present and future, of the company;

» Second pari-passu charge over entire immovable properties (except leasehold land having aggregate area of 1,716.17 acres at Angul, Odisha) pertaining to 6 million tonnes per annum steel plant of the company situated at Angul, Odisha, both present and future and » Second pari-passu charge over all movable fixed assets pertaining to 6 million tonnes per annum steel plant of the company situated at Angul, Odisha by way of hypothecation, both present and future.”

II Rate of Interest

The Weighted average rate of interest for Cash credit/Working Capital Demand Loan outstanding as on 31^st March, 2026 is 7.00% p.a (Previous Year 7.20% p.a.)

The Weighted average rate of interest for Buyer's Credit outstanding as on 31^st March, 2026 is 3.95% p.a. (Previous Year 4.76% p.a.)

The Weighted average rate of interest for loan from related parties as at 31^st March, 2026 is 8.00% p.a. (Previous Year 8.00% p.a.)

The Company has trade payables balance, which are part of supplier finance arrangements, of C 610.33 Crore (March 31, 2025 C 562.56 Crore). The key terms and conditions of the arrangement are:

a. The Company decides which invoices will be financed.

b. The financier pays the supplier before the due date of the invoice.

c. The Company pays the financier on the due date of the invoice.

d. The financing terms are negotiated by the Company, and it bears interest in the range of 6%-7% on the credit availed beyond the due date.

Further, the Company has not provided comparative information in respect of the amendments to Ind AS 7 and Ind AS 107 relating to supplier finance arrangements, as it has applied the transitional relief available on initial adoption of these amendments, which allows entities not to present comparative disclosures for prior periods.

It is not possible to predict the outcome of the pending litigations with accuracy, the Company believes, based on legal opinions received and/or internal assessment, that it has meritorious defences to the claims. The management believe the pending actions will not require outflow of resources embodying economic benefits and will not have a material adverse effect upon the results of the operations, cash flows or financial condition of the Company.

(i) During the earlier year, the company has received two demand notices from Deputy Director of Mines, Joda in relation to its mining operations at Kasia, Iron & Dolomite block, Odisha alleging for loss of royalty, mining premium etc. amounting to C 293.90 crore and C 3.17 crore (aggregating to C 297.06 crore) for dispatch of iron ore without taking permission from competent authority and for dispatching 10-25mm CLO as 10-40 mm CLO. The company believes that the mining operations are being carried out in compliance with the extent mining laws, regulations and as per the mining lease agreement signed by the Company. The company has contested the demand of C 293.90 crore by filing writ petition before the Hon'ble High Court of Orissa, Cuttack against the order passed by the Director of Mines and Geology and C 3.17 crore (paid under protest) by filing revision application before the Hon'ble Revisional Authority, Ministry of Mines, Govt. of India, New Delhi. The company has evaluated the matter and concluded that the outflow of resources is remote based on facts available on records and in the opinion of the management has creditable case in its favour, accordingly no provision is made in this regard.

(ii) The Directorate of Enforcement had passed a provisional attachment order in earlier year to attach fixed deposits of C 60 crore [to the extent of C 58.01 crore with interest accrued as on date of taking possession after confirmation of this order] in relation to the alleged excess mining from Gare Palma IV/1 which was granted to Jindal Steel Limited (the Company). The Company has filed a writ petition challenging the said provisional attachment order and the Hon'ble High Court of Delhi had stayed the proceedings before the Adjudicating Authority.

Further the Company had paid the royalty amount as per the applicable rates, in terms of the lease agreement and had also filed returns with the authorities in time. Further, in the opinion of the company the attachment is bad in law as attachment pertains to alleged access mining which is not a Scheduled Offence under the PMLA. Based on above and as per the advise of an expert the management believes that it has a creditable case in its favour.

(iii) During the earlier year, the Company has received Order of Seizure dated March 24, 2023 from Assistant Director, Directorate of Enforcement, (Prevention of Money Laundering Act 2002 & Foreign Exchange Management Act, 1999) alleging contravention of provisions of FEMA on account of non-repatriation of foreign exchange (held outside India) to India and during the previous year, the authority has seized the Bank fixed deposits of C 109.55 crore.

In this regard, Company has filed appeal with Appellant Tribunal under Foreign Exchange Management Act, 1999 and management believes that it has a creditable case in its favour and there will be no material impact of this on standalone financial statement.

(iv) Regarding the ORISED Act, 2004, the Government of Odisha notified the act effective February 1, 2005, to levy tax on mineral-bearing land. While the Orissa High Court struck down the Act in 2005, a nine-judge Constitution Bench of the Supreme Court ruled on July 25, 2024, that States possess the legislative power to tax mineral rights.

The matter has not yet reached finality, as curative petitions remain pending and case-specific hearings regarding the Act's applicability are ongoing. Since the matter remains sub-judice and no crystallized demand exists, the Company is currently unable to assess any certain obligation. Accordingly, there is no financial impact or recognized contingent liability as of 31^st March, 2026.

b) Non-Current Assets

All non-current assets other than financial instruments of the company are located in India.

c) Information about Major Customers

Revenue from one major customer (related party) of the company represents approximately C 15,314.35 crore (24.30%) {Previous year C 11,198.72 crore (19.57%)}, which is more than 10% of the company's total revenues (figures are inclusive of taxes) (refer note no. 54)

46_

a) During the earlier year, the Company has won in the auction held for the coal blocks at Utkal C, Utkal B1 and Utkal B2 in the State of Odisha and the Gare Palma IV/6 mine in the state of Chhattisgarh and out of the above mines, Company had executed the mining leases in favour of Utkal C, Utkal B1 and Gare Palma IV/6 coal mines and has started the coal production from Gare Palma IV/6, Utkal C and Utkal B1 coal mines with coal production of about 4.00 MT, 3.37 MT and 0.04 MT (previous year 4.00 MT, 3.37 MT and Nil) respectively. Execution of mining lease deed in respect of Utkal B2 coal mine is pending.

b) During the current year, the Company has won in the auction held for the Thakurani-A1 Iron ore Block, Rengalaberha North-East Extension and Nuagaon West iron Ore Block (Previous year-Saradhapur Jatpal East Coal block) in the State of Odisha. Execution of mining lease deed in respect of above mentioned mines is pending.

d) Securities given

i) Pari Passu charges over pledge of shares of Jindal Steel Odisha Limited (JSO) held by the Company. As on 31^st March, 2026, in terms of debt facilities of C 15,727 crore sanctioned by the lenders of JSO (for setting up 6MTPA Integrated steel plant in JSO), the Company has pledged 16,15,55,619 no. of fully paid up equity shares (upto 51% of total paid up equity shares) and 45,27,09,000 no. of fully paid up Compulsory convertible preference shares (CCPS) of JSO (100% of total CCPS).

Further, Company has given undertaking to the Lenders for investment in JSOL upto C 12,495 crore (C 10,888.25 crore infused till 31^st March, 2026) (Refer Note no. 47(d)). Outstanding as on 31^st March, 2026 is C 13,170.88 crore (Non Fund Based and Fund Based) (Previous year C 12,310.25 crore).

ii) Pari Passu charge by way of Pledge of shares of Jindal Paradip Port Limited (JPPL) held by the Company. As on 31^st March, 2026, in terms of debt facilities of C 2,854.43 crore sanctioned by lenders of JPPL, the Company has pledged 13,17,12,154 no. of fully paid up equity shares (upto 51% of total Jindal Steel shareholding) (Refer Note no. 47(d)). Outstanding as on 31^st March, 2026 is C 2,682.03 crore (previous year C 1,326.85 crore)

iii) Non-fund based credit facility of C Nil (Previous Year 246.17 Crore (AUD 45.80 million)) availed by step down wholly owned subsidiary Wollongong Resources PTY Ltd and Wongawilli Resources Pty Limited was secured by the way of corporate guarantee from the company, amount outstanding as on 31^st March, 2026 is C Nil (previous year C 246.17 crore).

A The Company has an investment of C 575.73 crores in its wholly owned subsidiary, Jindal Steel (Mauritius) Limited {formerly known as Jindal Steel & Power (Mauritius) Limited} ("JSML") which was fully provided for in earlier years. Further, outstanding balance of loan (including interest) in the books of the Company as on 31st March, 2026 is of C 4,586.80 crores {as on March 31, 2025 C 5,162.01 crores (net off provision)}. JSML has been incurring losses and holds investments in step-down subsidiaries (incorporated in various countries) which are mainly operating in mining activities and certain subsidiaries (including incorporated in Australia, which are presently not in operation) has been incurring losses over the years. During the year ended 31st March, 2026 based on a reassessment of the realisable value of the outstanding loan, taking into account future expected cash flows, the present condition of mines in Australia, prevailing global conditions, and expert reports, the Company has recognized a write-off aggregating to C 3,311.34 crores (including provisions of C 1,877.93 crores recognised in earlier years towards principal and interest). The above amount excludes de-recognition of interest income receivable aggregating to C 339.98 crores for the current financial year ( FY 2025-2026).

As at 31^st March, 2026, JSML has accumulated losses and negative net worth is of C 6,966.30 crores and C 5,379.27 crores respectively (as at March 31, 2025: C4,894.32 crores and C3,459.32 crores respectively). The Auditors of JSML have drawn attention on material uncertainty relating to Going Concern matter in their audit report for the year ended 31^st March, 2026 and Auditor have not modified their opinion. The directors of JSML have prepared the financial statements of the Company on a 'Going Concern' basis, based on continued support from the Holding Company (Jindal Steel Limited). In the opinion of the management of the Company the outstanding carry over balance in JSML is good and realisable.

B The 'Exceptional Items' for the year ended 31^st March, 2026 of C 1,470.16 crores (Previous Year C 1,313.64 crores), respectively, comprises the following:

Current year

(a) The Company has recognized a write-off aggregating to C 3,311.34 crores of loans outstanding in accont of a subsidiary Jindal Steel (Mauritius) Limited and simultaneously written back provisions of C 1,877.93 crores recognised in earlier years towards principal and interest (refer note no. 49A above & 49B(c)) ;

(b) The Government of India has notified and brought into force on 21^st, November 2025 four new Labour Codes viz the Code on Social Security, 2020 (""Social Security Code""); the Occupational Safety, Health and Working Conditions Code, 2020; the Industrial Relations Code, 2020 and the Code on Wages, 2019 (collectively, the ""Labour Codes""), which subsume, amend and replaces numerous existing central labour legislations. Till date certain specific rules and corresponding State-level notifications are yet to be notified. The Company has recognised estimated additional provisions for past service obligations/ cost on account of gratuity and leave encashment absences on best estimate basis of C 36.75 crores during the year ended 31^st March, 2026;

Previous year

(c) During the previous year ended 31^st March, 2025, Exceptional items of C 1,313.64 crore, represents, in respect of Jindal Steel (Mauritius) Limited. (i) Loss allowance against Loan of C 588.85 crore and (ii) loss allowance against Interest Receivables of C 724.79 crore (refer note no. 49A above).

Fair valuation of financial guarantees

Financial guarantees issued by the company on behalf of its subsidiary companies have been measured at fair value through profit and loss account. Fair value of said guarantees as at 31^st March, 2026 is C Nil (31^st March, 2025 C Nil) have been considered by the management on the basis of valuation carried out by an independent professional.

Fair valuation techniques

The Company maintains policies and procedures to value financial assets or financial liabilities using the best and most relevant data available. The fair values of the financial assets and liabilities are included at the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.

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

1) Fair value of cash and deposits, trade receivables, trade payables, and other current financial assets and liabilities approximate their carrying amounts largely due to the short-term maturities of these instruments.

2) Long-term fixed-rate and variable-rate receivables/borrowings are evaluated by the Company based on parameters such as interest rates, specific country risk factors, credit risk and other risk characteristics. Fair value of variable interest rate borrowings approximates their carrying values. For fixed interest rate borrowing fair value is determined by using the discounted cash flow (DCF) method using discount rate that reflects the issuer's borrowings rate. Risk of non-performance of the Company is considered to be insignificant in valuation.

3) The fair values of derivatives are estimated by using pricing models, where the inputs to those models are based on readily observable market parameters basis contractual terms, period to maturity, and market parameters such as interest rates, foreign exchange rates, and volatility. These models do not contain a high level of subjectivity as the valuation techniques used do not require significant judgement, and inputs thereto are readily observable from actively quoted market prices. Management has evaluated the credit and nonperformance risks associated with its derivative counterparties and believe them to be insignificant and not warranting a credit adjustment.

52 FINANCIAL RISK MANAGEMENT_

The Company's principal financial liabilities, other than derivatives, comprise borrowings, trade and other payables, and financial guarantee contracts. The main purpose of these financial liabilities is to manage finances for the Company's operations and project. The Company's financial assets comprise investments, loan, trade and other receivables, cash, and deposits that arise directly from its operations.

The Company's activities are exposed to market risk, credit risk and liquidity risk. In order to minimise adverse effects on the financial performance of the Company, derivative financial instruments such as forward contracts are entered into to hedge foreign currency risk exposure. Derivatives are used exclusively for hedging purposes and not as trading and speculative purpose. Further, this to be read with note 50a.

I. 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 as well as conditions. Market prices comprise three types of risk: currency rate risk, interest rate risk and other price risks, such as equity price risk and commodity risk. Financial instruments affected by market risk include loans and borrowings, deposits, investments, and derivative financial instruments.

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

The analysis exclude the impact of movements in market variables on: the carrying values of gratuity and other post-retirement obligations; provisions. The sensitivity of the relevant profit or loss item is the effect of the assumed changes in respective market risks. The Company uses derivative financial instruments such as foreign exchange forward contracts of varying maturity depending upon the underlying contract and risk management strategy to manage its exposures to foreign exchange fluctuations.

(a) Interest rate risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. In order to optimize the Company's position with regard to interest income and interest expenses and to manage the interest rate risk, the Company performs a

The assumed movement in basis point for interest rate sensitivity analysis is based on currently observable market environment.

(b) Foreign currency risk

Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate because of changes in foreign exchange rates. The Company transacts business primarily in Indian Rupees and US dollars. The Company has obtained foreign currency loans and has foreign currency trade payables and receivables and is therefore exposed to foreign exchange risk. Certain transactions of the Company act as a natural hedge as a portion of both assets and liabilities are denominated in similar foreign currencies. For the remaining exposure to foreign exchange risk the Company executes hedging based upon guidelines of Board approved risk management policy. Foreign exchange contracts are carried at fair value. All hedging activities are carried out in accordance with the Company's internal risk management policies, as approved by the Board of Directors, and in accordance with the applicable regulations where the Company operates.

(c) Commodity price risk

Commodity price risk is the risk that future cash flow of the Company will fluctuate on account of changes in market price of key raw materials.

The Company is exposed to the movement in price of key raw materials in domestic and international markets. The Company has in place policies to manage exposure to fluctuations in the prices of the key raw materials used in operations. The Company enters into contracts for procurement of materials, most of the transactions are short term fixed price contract and a few transactions are long term fixed price contracts.

II. Credit risk

Credit risk arises from the possibility that the counterparty will default on its contractual obligations resulting in financial loss to the Company. To manage this, the Company periodically assesses the financial reliability of customers, taking into account the financial conditions, current economic trends, and analysis of historical bad debts and ageing of accounts receivable.

The Company considers the probability of default upon initial recognition of assets and whether there has been a significant increase in credit risk on an ongoing basis in each reporting period. To assess whether there is significant increase in credit risk, it considers reasonable and supportive forward looking information such as:

(i) Actual or expected significant adverse changes in business.

(ii) Actual or expected significant changes in the operating results of the counterparty.

(iii) Financial or economic conditions that are expected to cause a significant change to the counterparty's ability to meet its obligation.

(iv) Significant increase in credit risk and other financial instruments of the same counterparty.

(v) Significant changes in the value of collateral supporting the obligation or in the quality of third party guarantees or credit enhancements."

Assets are tested for impairment whenever there are any internal or external indicators of impairment.

Impairment test is performed at the level of each Cash Generating Unit ('CGU') or groups of CGUs within the Company at which the goodwill or other assets are monitored for internal management purposes, within an operating segment.

The impairment assessment is based on higher of value in use and value from sale calculations.

During the year and previous year, the testing did not result in any impairment in the carrying amount of assets except as disclosed in note no. 8, 9, 10, 17 & 19.

The measurement of the cash generating units' value in use is determined based on financial plans that have been used by management for internal purposes. The planning horizon reflects the assumptions for short to- mid term market conditions.

Key assumptions used in value-in-use calculations:

» Operating margins (Earnings before interest and taxes)

» Discount Rate » Growth Rates » Capital expenditures

Operating margins: Operating margins have been estimated based on historical performance and current market dynamics of the steel manufacturing industry. Margins reflect operational efficiencies achieved through process optimization, economies of scale, and improved capacity utilization. Although raw material price fluctuations and market-driven pricing pressures may have some impact, the Company expects stable to improved margins due to ongoing cost control initiatives and favorable demand outlook in the infrastructure and construction sectors.

Discount rate: Discount rate reflects the current market assessment of the risks specific to a CGU or group of CGUs. The discount rate is estimated based on the weighted average cost of capital for respective CGU or group of CGUs.

Growth rates: The growth rates used are in line with the long term average growth rates of the steel industry and the Indian economy, and are consistent with the forecasts included in the industry reports.

Capital expenditures: The cash flow forecasts of capital expenditure are based on past experience coupled with additional capital expenditure required for maintenance and strategic growth projects.

56 ASSETS HELD FOR SALE_

The Company has identified certain assets for disposal. The management is in discussions with potential buyers. Based on preliminary discussions with potential buyers/external valuation, the carrying value of these assets has been considered as fair value :-

The company considers the Jindal Steel Employee Benefit Trust (formerly known as JSP Employee Benefit Trust) ('Trust') as an extension of the entity and hence has consolidated the assets and liabilities of the Trust in the standalone financial statements of the company. The shares of the company held by the trust are shown under 'Treasury shares held through ESOP Trust' in share capital and the difference between the secondary market transaction cost (purchase/sale) and the face value of the treasury shares is adjusted in Retained Earnings under "Consolidation of Jindal Steel Employee Benefit Trust” (refer note no. 20(f)(iii))

58 _

The company and Rashtriya Ispat Nigam Limited (RINL) (together 'parties ) have entered into a Memorandum of Understanding (MOU) for advancing/funding for raw material supply and conversion agreement as per requirement agreed/to be scheduled by the company as per the mutually agreed conditions and Company had paid advances and outstanding as on 31^st March, 2026 is of C 764.56 crore (Trade receivable C 181.54 crore, Advances C 564.06 crore & Interest receivable C 18.96 crore) (Previous year C 961.09 crore (Trade receivable C 378.01 crore, Advances C 564.12 crore & Interest receivable C 18.96 crore)) which as per the MOU shall be offset against the cost of the material to be supplied to the Company.

In the past RINL has consistently failed to abide by its obligations under the signed MOU and the parties have been unable to resolve issues/differences arising from the breach on the part of RINL (party’s obligations under the MOU). In this regard the company filed an application with the Hon'ble High court of Andhra Pradesh at Hyderabad in terms of Section 21 of the Arbitration and Conciliation Act, 1996 (the "Act"). Considering the stated facts, pending final settlement/adjustment and present state of affairs the management have been advised by legal experts that it has creditable case in its favour. Accordingly the management is confident for the recovery of full outstanding amount as stated above.

59 COMPLIANCE WITH AUDIT TRAIL FOR ACCOUNTING SOFTWARE._

The Company has used a widely used ERP as its accounting software for maintaining its books of account during the year ended 31^st March, 2026, which has a feature of recording the audit trail (edit log) facility. The audit trail (edit log) facility has been operated throughout the year for relevant transactions in the accounting software. The company did not come across any instance of the audit trail being tampered with, in respect of the accounting software for the period for which the audit trail feature was enabled and operating.

Additionally, the audit trail for prior years has been preserved by the company as per statutory requirements for record retention to the extent it was enabled and recorded in the respective years.

64 OTHER STATUTORY INFORMATION_

a) The Company does not have any benami property, where any proceeding has been initiated or pending against the Company for holding any benami property.

b) The Company has not traded or invested in Crypto currency or Virtual currency during the financial year.

c) The Company has not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign entities (intermediaries) with the understanding that the intermediary shall:

(i) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Company (ultimate beneficiaries) or

(ii) provide any guarantee, security or the like on behalf of the ultimate beneficiaries.

d) 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:

(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.

e) The Company does not have any such transaction which is not recorded in the books of accounts that has been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (such as, search or survey or any other relevant provisions of the Income Tax Act, 1961).

f) The Company has complied with the number of layers prescribed under clause (87) of section 2 of the Act read with the Companies (Restriction on number of Layers) Rules, 2017.

g) The Company is not declared wilful defaulter by and bank or financial institution or lender during the year.

h) The Company does not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory period except the charges yet to be created as stated in footnotes to note no. 22

i) Quarterly returns or statements of current assets filed by the Company with banks or financial institutions are in agreement with the books of accounts.

j) The Company has used the borrowings from banks and financial institutions for the specific purpose for which it was obtained.

k) The title deeds of all the immovable properties, (other than immovable properties where the Company as the lessee and the lease agreements are duly executed in favour of the Company) disclosed in the financial statements included in property, plant and equipment and capital work-in progress are held in the name of the Company as at the balance sheet date except as stated in footnote no 2 of note no.5.

l) The Company does not have any transactions with companies which are struck off.

65 _

Previous year figures have been regrouped/rearranged, wherever considered necessary to conform to current year's classification. Figures less than 50000 have been shown as absolute number.

66 _

Notes 1 to 66 are annexed to and form an integral part of standalone financial statements.