m) Provisions and contingent liabilities

A provision is recognised when there is a present legal or constructive obligation as a result of past event; it is
probable that an outflow of resources will be required to settle the obligation, and in respect of which a reliable
estimate can be made. These are reviewed at each Balance Sheet date and adjusted to reflect the current best
estimates. A disclosure for a contingent liability is made where there is a possible obligation arising out of past
event, 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 arising out of past event 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.

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 a finance cost.

n) Impairment of non financial assets

The Company tests non financial assets for impairment at the close of the accounting period if and only if there
are indications that suggest a possible reduction in the recoverable value of an asset. If the recoverable value of an
asset, i.e. the net realizable value or the economic value in use of a cash generating unit, is lower than the carrying
amount of the asset, the difference is provided for as impairment. However, if subsequently the position reverses
and the recoverable amount becomes higher than the then carrying value the provision to the extent of the then
difference is reversed, but not higher than the amount provided for.

o) Cash and cash equivalents

Cash and cash equivalent in the balance sheet comprise cash at banks and on hand and short-term deposits with
an original maturity of three months or less, that are readily convertible to a known amount of cash and subject to
an insignificant risk of changes in value.

p) Government grants

Government grants are recognised where there is reasonable assurance that the grant will be received and all
attached conditions will be complied with. When the grant relates to an expense item, it is recognised as income
on a systematic basis over the periods that the costs, which it is intended to compensate, are expensed.

Where the grant relates to an asset, it is either recorded as deferred income and is recognised as income on a
systematic and rational basis over the useful life of the asset, or adjusted against the cost of the asset.

When the Company receives non-monetary grants, the asset and the grant are recorded at fair value and
released to profit or loss over the expected useful life of the asset, based on the pattern of consumption of the
benefits of the underlying asset by equal annual instalments. When loans or similar assistance are provided by
governments or related institutions with an interest rate below the current applicable market rate, the effect
of this favourable interest is regarded as a government grant. The loan or assistance is initially recognized and
measured at fair value and the government grant is measured as the difference between the initial carrying value
of the loan and the proceeds received. The loan is subsequently measured as per the accounting policy applicable
to financial liabilities.

q) Financial instruments

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

Financial assets

All financial assets are recognized initially at fair value plus, in the case of financial assets not recorded at fair
value through profit or loss, transaction costs that are attributable to the acquisition of the financial asset. Trade
receivables that do not contain a significant financing component are measured at transaction price. For all
subsequent measurements financial assets are classified in following categories:

A) Debt instruments

i) Debt instruments at amortised cost: Debt instrument is measured at amortised cost if the asset is held
within a business model whose objective is to hold assets for collecting contractual cash flows, and
contractual terms of the asset give rise on specified dates to cash flow that are solely payments of
principal and interest (SPPI) on the principal amount outstanding.

This category is most relevant to the Company. After initial measurement, such assets are
subsequently measured at amortised cost using the effective interest rate (EIR). Amortised cost is
calculated by taking into account any discount or premium on acquisition and fees for cost that are an
integral part of the EIR. EIR amortisation is included in other income in the Statement of Profit and Loss.
This category generally applies to loans and trade and other receivables.

ii) Debt instruments fair value through OCI (FVTOCI): Debt instrument is classified as FVTOCI if the
financial asset is held within a business model whose objective is achieved by both collecting
contractual cash flows and selling financial assets and the contractual terms of the financial asset give
rise on specified dates to cash flows that are solely payments of principal and interest on the principal
amount outstanding. When the financial asset is derecognised, the cumulative gain or loss previously
recognised in OCI is reclassified from equity to profit or loss and recognised in other gains/(losses).

iii) Debt instruments at fair value through profit and loss (FVTPL): Debt instruments not classified as amortised
cost or FVTOCI are classified as FVTPL. The Company has not classified any debt under this category.

B) Equity instruments

Equity instruments held for trading are classified as FVTPL. For all other equity instruments, the Company
may make an irrevocable election to present in OCI the subsequent changes in fair value. The Company
makes such election on an instrument by instrument basis. If the Company decides to classify an equity
instrument as FVTOCI, then all fair value changes on the instrument, excluding dividends are recognized in
OCI. There is no recycling of the amount from OCI to Statement of Profit and Loss. However, the Company
may transfer the cumulative gain or loss within equity.

The Company has elected to present all equity instruments, other than those in subsidiary, joint ventures and
associate, through FVTPL and all subsequent changes are recognized in Statement of Profit and Loss.

C) Derecognition

A financial asset (or wherever applicable, a part of the financial asset or part of a group of similar financial
assets) is primarily derecognized when the rights to receive cash flow from the assets have expired or the
Company has transferred its rights to receive cash flows from the asset or has assumed an obligation to pay
the received cash flow in full to a third party under a pass through arrangement and either a) the Company has
transferred substantially all risks and rewards of the asset or b) has transferred control of the asset.

D) Impairment of financial assets

In accordance with Ind AS 109, the Company applies expected credit loss (ECL) model for measurement
and recognition of impairment loss (allowance for doubtful debts) and credit risk exposure on the financial
assets that are debt instruments measured at amortised costs e.g. loans, deposits, trade receivables, lease
receivable and bank balances.

The Company follows simplified approach for recognition of impairment loss allowance on trade receivables
and lease receivables. The application of simplified approach does not require the Company to track changes
in credit risk. Rather it recognizes impairment loss allowance based on lifetime ECL's at each reporting date,
right from its initial recognition.

For recognition of impairment loss on other financial assets and risk exposure, the Company determines
that whether there has been a significant increase in the credit risk since initial recognition. If credit risk
has not increased significantly, 12 month ECL is used to provide for impairment loss. However, if credit risk
has increased significantly, lifetime ECL is used. If in subsequent period the credit risk reduces since initial
recognition, then the entity reverts to recognizing impairment loss allowance based on 12 month ECL.

As a practical expedient, the Company uses a provision matrix, based on the age of the receivables classified
into various age buckets, to determine impairment loss allowance on portfolio of its trade receivables. The
matrix is based on its historically observed default rates over the expected life of the trade receivables and
is adjusted for forward looking estimates. At every reporting date, the historical observed default rates
are updated and changes in the forward looking estimates are analysed. The Company has presumed that
default doesn't occur later than when a financial asset is 90 days past due.

Impairment loss allowance including ECL or reversal recognized during the period is recognized as income/
expense in the Statement of Profit and Loss. This amount is reflected under the head 'Other Expenses'
in Statement of Profit and Loss. The impairment loss is presented as an allowance in the Balance Sheet
as a reduction from the net carrying amount of the trade receivable, loan, deposits and lease receivable
respectively.

Financial Liabilities

All financial liabilities are initially recognised at fair value. The Company's financial liabilities include trade and
other payables, other financial liabilities, loans and borrowings and derivative financial instruments.

Subsequent measurement of financial liabilities depends on their classification as FVTPL or at amortised cost.

All changes in fair value of financial liabilities classified as FVTPL is recognized in the Statement of Profit
and Loss. Amortised cost category is applicable to loans and borrowings, trade and other payables. After
initial recognition the financial liabilities are measured at amortised cost using EIR method. Gains and losses
are recognized in Statement of Profit and Loss when the liabilities are derecognized as well as through the
EIR amortisation process. Amortised cost is calculated by taking into account any discount or premium on
acquisition and fees or costs that are integral part of EIR. EIR amortisation is included as finance cost in the
Statement of Profit and Loss.

Derecognition

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

Derivatives

The Company uses derivative financial instruments such as forward currency contracts to hedge its foreign
currency risk. Such derivative financial instruments are initially recognized at fair value on the date on which
a derivative contract is entered and are subsequently remeasured at fair value. Derivatives are carried as
financial assets when the fair value is positive and as financial liabilities when the fair value is negative. Any
gains or losses arising from changes in the fair value of derivatives are taken directly to the Statement of
Profit and Loss.

Embedded derivatives: An embedded derivative is a component of a hybrid (combined) instrument that also
includes a non-derivative host contract - with the effect that some of the cash flows of the combined
instrument vary in a way similar to a standalone derivative. An embedded derivative causes some or all of the
cash flows that otherwise would be required by the contract to be modified according to a specified interest
rate, financial instrument price, commodity price, foreign exchange rate, index of prices or rates, credit rating
or credit index, or other variable, provided in the case of a non-financial variable that the variable is not
specific to a party to the contract. Reassessment only occurs if there is either a change in the terms of the
contract that significantly modifies the cash flows that would otherwise be required or a reclassification of a
financial asset out of the FVTPL category.

If the hybrid contract contains a host that is a financial asset within the scope of Ind AS 109, the Company
does not separate embedded derivatives. Rather, it applies the classification requirements contained in Ind
AS 109 to the entire hybrid contract. Derivatives embedded in all other host contracts are accounted for
as separate derivatives and recorded at fair value if their economic characteristics and risks are not closely
related to those of the host contracts and the host contracts are not held for trading or designated at fair
value though profit or loss. These embedded derivatives are measured at fair value with changes in fair value
recognised in Statement of Profit and Loss, unless designated as effective hedging instruments.

Reclassification of financial instruments

After initial recognition, no reclassification is made for financial assets which are equity instruments and
financial liabilities. For financial assets, which are debt instruments, a reclassification is made only if there is a
change in the business model for managing those assets. Changes to the business model are expected to be
infrequent. If the Company reclassifies the 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 the business model.

Offsetting financial assets and financial liabilities

Financial assets and liabilities are offset and the net amount is reported in the Balance Sheet if there is a
currently enforceable legal right to offset the recognized amounts and there is an intention to settle on a net
basis, to realise the assets and settle the liabilities simultaneously.

r) Dividend distribution

The Company recognises a liability to pay dividend to equity holders of the Company when the distribution is
authorised and the distribution is no longer at the discretion of the Company.

1B Other accounting policies

a) Segment reporting

Operating segments are reported in a manner consistent with the internal reporting provided to the chief
operating decision-maker. The chief operating decision-maker, who is responsible for allocating resources
and assessing performance of the operating segments, has been identified as the Board of Directors that
makes strategic decisions.

b) Earning per Share (EPS)

Basic earnings per share is calculated by dividing the net profit or loss attributable to equity holder of the
Company (after deducting preference dividends and attributable taxes) by the weighted average number
of equity shares outstanding during the period. Partly paid equity shares are treated as a fraction of an
equity share to the extent that they are entitled to participate in dividends relative to a fully paid equity
share during the reporting period. The weighted average number of equity shares outstanding during the
period is adjusted for events such as bonus issue, bonus element in a rights issue, share split, and reverse
share split (consolidation of shares) that have changed the number of equity shares outstanding, without a
corresponding change in resources.

For the purpose of calculating diluted earnings per share, the net profit or loss for the period attributable to
equity shareholders of the Company and the weighted average number of shares outstanding during the
period are adjusted for the effects of all dilutive potential equity shares.

c) Other income

i) Interest income is recognised using effective interest rate method ('EIR'). EIR is the rate that exactly
discounts the estimated future cash payments or receipts over the expected life of the financial
instrument or a shorter period, where appropriate, to the gross amount of the financial asset or to
the amortised cost of a financial liability. When calculating EIR, the Company estimates the expected
cash flows by considering all the contractual terms of the financial instrument but doesn't consider the
expected credit losses. Interest income is included in Other Income in the Statement of Profit and Loss.

ii) Rental income is recognised on straight-line basis over the lease term, other than escalations on
account of inflation.

iii) Dividend income from investments is recognised when the right to receive payment is established.

The investment properties consist of office premises and plants. As at March 31, 2026 the fair value of the properties
is H 1,485.52 Crore (As at March 31, 2025: H 1,451.55 Crore). These fair values are based on valuations performed by a
registered valuer as defined under rule 2 of Companies (Registered Valuers and Valuation) Rules, 2017. A valuation
model as recommended by International Valuation Standards Committee has been applied. The Company considers
factors like management intention, terms of rental agreements, area leased out, life of the assets etc. to determine
classification of assets as investment properties. The rental income considered in the table above is from the date of
rental agreement or date of re-classification from property, plant and equipment as applicable.

The Company has no restrictions on the realisability of its investment properties and no contractual obligations to
purchase, construct or develop investment properties or for repairs, maintenance and enhancements.

Dividend not recognised at the end of the reporting period

In addition to the above dividends, since year end the directors have recommended payment of final dividend of
H 1,275.12 crore for the year ended March 31, 2026 (March 31, 2025: H 928.62 crore) which is H 46 per fully paid up
share (March 31, 2025: H 33.50 per fully paid up share). This proposed dividend is subject to approval of shareholders
in the ensuing Annual General Meeting.

35 Significant accounting judgments, estimates and assumptions

The preparation of the Company's financial statements requires the management to make judgments, estimates and
assumptions that affect the reported amounts of revenues, expenses, assets and liabilities, and the accompanying
disclosures, and the disclosure of contingent liabilities. Uncertainty about these assumptions and estimates could
result in an outcome that requires a material adjustment to the carrying amount of assets or liabilities effected in
future periods.

Judgements

In the process of applying the Company's accounting policies, management has made the following judgements, which
have the most significant effect on the amounts recognized in the financial statements:

Revenue from contracts with customers

The Company applied the following judgements that significantly affect the determination of the amount and timing of
revenue from contracts with customers:

- Identifying performance obligations in a bundled sale of equipment and installation services

The Company provides installation services that can either be sold separately or bundled together with the sale of
equipment to a customer. The installation services are a promise to transfer services in the future and are part of the
negotiated exchange between the Company and the customer. The Company determined that both the equipment and
installation are capable of being distinct.

- Determining method to estimate variable consideration and assessing the constraint

Certain contracts for the sale of services include volume rebates that give rise to variable consideration. In estimating
the variable consideration, the Company applies either the most likely amount method or the expected value method.
The most likely amount method is applied for contracts with a single-volume threshold and the expected value method
is applied for contracts with more than one volume threshold.

The Company determined that the estimates of variable consideration are not constrained based on its historical
experience, business forecast and the current economic conditions. In addition, the uncertainty on the variable
consideration will be resolved within a short time frame.

Contingent Liabilities

The Company has received orders and notices from tax authorities relating to direct and indirect taxes, the ultimate
outcome of which is subject to uncertainty. Management periodically evaluates all available information in respect of
such matters to determine whether a present obligation exists as at the reporting date as a result of past events and
whether it is probable that an outflow of resources will be required to settle the obligation, and a reliable estimate can
be made. These assessments involve the exercise of significant judgement by management. (Refer note 36)

Estimates and assumptions

The key assumptions concerning the future and other key sources of estimation uncertainty at the reporting date that
have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities within the next

financial year, are described below. The Company based its assumptions and estimation on parameters available when
the financial statements were prepared. Existing circumstances and assumptions about future developments, however,
may change due to market changes or circumstances arising beyond the control of the Company. Such changes are
reflected in the assumptions when they occur.

Defined benefit plans:

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

The discount rate is the parameter most subject to change. In determining the appropriate discount rate for plans
operated in India, the management considers the interest rates of government bonds. The mortality rate is based on
publicly available mortality tables for India. Mortality tables tend to change only at interval in response to demographic
changes. Future salary increases and gratuity increases are based on expected future inflation rates. Further details
about gratuity obligations are given in note 40.

Fair value measurements of financial instruments:

When the fair values of financial assets and financial liabilities recorded in the balance sheet cannot be measured based
on quoted prices in active markets, their fair value is measured using valuation techniques including the DCF model. The
inputs to these models are taken from observable markets if available, otherwise, a degree of judgement is required
in establishing fair values. Judgements include considerations of inputs such as liquidity risk, credit risk and volatility.
Changes in assumptions about these factors could affect the reported fair value of the financial instrument. Refer
note 44 for further disclosures.

Warranty, statutory matters and New Engine Performance Inspection (NEPI)

For estimates relating to warranty, statutory matters and NEPI (refer note 39)

* Excludes interest and penalties if any. The above matters pertain to certain disallowances/demand raised by
respective authorities.

The Company is contesting the demands and the management, including its tax/legal advisors, believe that its position
will likely be upheld in the appeal process.

There are numerous interpretative issues relating to the Supreme Court (SC) judgement on Provident Fund dated
February 28, 2019. The Company has implemented the SC decision prospectively.

The Company has various on-going litigations by/or against the Company with respect to tax and 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.

37 Leases

Lease commitments as a Lessee

The Company has entered into leases for office premises. These lease arrangements range for a period between 12 and
120 months with lock in period between 24 and 108 months, which include both renewable and non-renewable leases.
Addition to ROU assets are non-cash investing activities.

39 Disclosure on provisions made, utilised and reversed during the year

i) Provision for warranty

Provision for warranty is on account of warranties given on products sold by the Company. The amount of
provision is based on historical information of the nature, frequency and average cost of warranty claims and
management estimates regarding possible future incidence. The timing and amount of cash flows that will arise
from these matters will be determined at the time of receipt of claims. Amount expected to be paid in next 12
months is classified as current.

iii) Provision for New Engine Performance Inspection (NEPI)

Provision for New Engine Performance Inspection (NEPI) is on account of checks to be carried out by the Company
at specified intervals. The amount of provision is based on historical information of the nature, frequency and
average cost of claims and management estimates regarding possible future incidence. The timing and amount
of the cash flows that will arise from these matters will be determined at the time of receipt of claims. Amount
expected to be paid in next 12 months is classified as current.

Terms and conditions of transactions with related parties:

ii) Outstanding balances at the year end are unsecured and interest free and settlement occurs in cash. There have
been no guarantees provided or received for any related party receivables or payables. For the year ended
March 31, 2026, the Company has not recorded any impairment of receivables relating to amounts owed by
related parties (March 31, 2025: Nil). This assessment is undertaken each financial year through examining the
financial position of the related party and the market in which the related party operates.

iii) Liability for post employment benefits, other long term benefits, termination benefits and certain short term
benefits such as compensated absences is provided on an actuarial basis for the Company as a whole.
Accordingly the amount for above pertaining to key management personnel is not ascertainable and, therefore,
not included above.

iv) Related party transaction, the amount of which is in excess of 10% of the total related party transactions of the
same type are disclosed separately.

v) Services rendered include renting services, testing services, business support services, etc.

vi) Services received include testing services, solution contract support services, license fees, etc.

vii) Includes recoveries on account of employee cost, travel costs, training, IT services, etc.

viii) All transactions entered into with related parties are made on terms equivalent to those that prevail in arm's
length transaction.

42 As set out in section 135 of the Companies Act, 2013, the Company is required to contribute H 37.10 Crores
(March 31, 2025: H 27.95 Crores) towards Corporate Social Responsibility activities, as calculated basis 2% of its
average net profits of the last three financial years. Accordingly, during the current year, the Board has approved
and the Company has contributed H 37.05 Crores (March 31, 2025: H 27.95 Crores) to Cummins India Foundation
towards eligible projects as mentioned in Schedule VII (including amendments thereto) of the Companies Act, 2013
and H 0.05 Crores (March 31, 2025: H NIL) towards social impact assessment. Apart from the above, the Company
has not made any direct expenditure/contributions of capital nature. Unspent contribution amounting to

H 0.31 Crores (March 31, 2025: H 1.62 Crores) has been transferred by the Company to a separate bank account
as per the requirement.

43 Financial risk management objectives and policies

Financial risk factors:

The Company has well written policies covering specific areas, such as foreign exchange risk and investments which
seek to minimise potential adverse effects on the Company's financial performance due to external factors. The
Company uses derivatives to hedge foreign exchange risk exposures. The Company's senior management oversees
the management of these risks. All derivatives and investment activities for risk management purposes are carried
out by specialist team that has appropriate skills, experience and supervision. As per the Company's policy no trading
in derivatives for speculation purpose may be undertaken. The Board of Directors reviews and approves policies for
managing each of these risks.

The Company's activities are exposed to variety of financial risks: market risk (including currency risk, interest rate risk
and price risk), credit risk and liquidity risk.

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 risks as follows:

i) Foreign currency risk

The Company is exposed to foreign exchange risk arising from various currency exposures, primarily with
respect to the US dollar and Euro. Foreign exchange risk arises from future commercial transactions, recognized
assets and liabilities denominated in a currency that is not the entity's functional currency.

Management has set up a policy to manage their foreign exchange risk against their functional currency.

To manage the foreign exchange risk arising from recognised assets and liabilities, the Company uses
forward contracts.

The movement in the pre-tax effect is a result of a change in the fair value of derivative financial
instruments not designated in a hedge relationship and financial assets and liabilities denominated in various
currencies. Although the derivatives have not been designated in a hedge relationship, they act as economic
hedge and offset the underlying transactions when they occur.

ii) Interest rate risk

Interest rate risk is the fair value of future cash flows of a financial instrument which fluctuates because of
changes in the market interest rates. In order to optimise the Company's position with regards to interest
income and interest expense, treasury team manages the interest rate risk by balancing the portion of fixed
rate and floating rate in its total portfolio.

The Company has no borrowings as at March 31, 2026 and as at March 31, 2025.

iii) Price risk

The Company invests its surplus funds in mutual funds which are linked to debt markets. The Company is
exposed to price risk for investments in mutual funds that are classified as fair value through profit or loss.
To manage its price risk arising from investments in mutual funds, the Company diversifies its portfolio.
Diversification and investment in the portfolio is done in accordance with the limits approved by the Board of
Directors.

The following table demonstrates the sensitivity relating to possible change in investment value with all
other variables held constant:

b) Credit risk

Credit risk is the risk that counterparty will not meet its obligation under financial instrument or customer contract,
leading to a financial loss. The Company is exposed to credit risk primarily from trade receivables, contract assets,
other receivables, deposits with banks and investments.

Trade receivable and contract assets

Senior management is responsible for managing and analysing the credit risk for each new customer before
standard payment, delivery terms and conditions are offered. The Company assesses the credit quality of the
customer, taking into account its financial position, past experience and other factors. Individual risk limits are set
based on internal or external assessment. The utilisation of credit limits is regularly monitored.

An impairment analysis is performed at each reporting date for all customers. The maximum exposure to credit
risk at the reporting date is the carrying value of each class of financial assets disclosed in note 10 and 13 and
contract assets.

Other receivables, deposits with banks and investments

Credit risk from balances with banks is managed by the Company's treasury department in accordance with
Company's policy approved by the Risk Management Committee. Investments of surplus funds are made within
the credit limits and as per the policy approved by the Board of Directors.

No credit limits were exceeded during the reporting period, and management does not expect any losses from
non-performance of the above assets. The maximum exposure to credit risk at the reporting date is the carrying
value of each class of financial assets disclosed in note 5, 9, 11, 12 and 13.

c) Liquidity risk

Cash flow forecasting is performed by Treasury function. Treasury team monitors rolling forecasts of the
Company's liquidity requirements to ensure it has sufficient cash to meet the operational needs. Such forecasting
takes into consideration the compliance with internal cash management policy.

As per the Company's policy, treasury team invests surplus cash in marketable securities and time deposits with
appropriate maturities or sufficient liquidity to provide headroom to meet the operational needs. At the reporting
date, the Company held mutual funds of H 1,359.87 Crore (March 31, 2025: H 572.43 Crore) and other liquid
assets of H 688.57 Crore (March 31, 2025: H 594.68 Crore) that are expected to readily generate cash inflows for
managing liquidity risk.

d) Capital management

The Company's objectives when managing capital is to provide maximum returns to shareholders, benefits to
other stakeholders and to maintain an optimal capital structure to reduce the cost of capital. The Company
manages its capital structure and makes adjustments in light of changes in economic conditions.

Gearing ratio is not calculated as the Company has Nil borrowings.

The Management assessed that the fair values of cash and cash equivalents, other bank balances, trade receivables,
trade payables and other current liabilities approximate their carrying amounts largely due to the short term maturities
of these instruments. Fair value of other non-current financial liabilities also approximates it's carrying amount.

The fair value of the financial assets and financial 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 fair value of investments in mutual funds is based on the price quotation at the reporting date obtained from the
asset management companies. The Company enters into derivative financial instruments with various counterparties,
principally financial institutions. Foreign exchange forward contracts are valued using valuation techniques, which
employ the use of market observable inputs. The most frequently applied valuation techniques include forward pricing
using present value calculations.

Fair value hierarchy

The table below analyses financial instruments carried at fair value, by valuation method as defined in accounting policy 1c.

46 Exceptional items

1. The Government of India, on November 21, 2025, notified the four Labour Codes - Code on Wages, 2019; Industrial
Relations Code, 2020; Code on Social Security, 2020; and Occupational Safety, Health and Working Conditions
Code, 2020 - subsuming 29 existing labour laws. The Company has recorded an impact of H 94.20 crore for the
year ended March 31, 2026. As this impact is material, regulatory-driven, and non-recurring, the same is presented
under "Exceptional Items" in the standalone financial statement for the year ended March 31, 2026. The Company
continues to monitor the Central/State Rules and clarifications from the Government on other aspects of the
Labour Codes and would provide appropriate accounting effect on the basis of such developments as needed.

2. The Company has sold 100% stake in its wholly owned subsidiary, namely, Cummins Sales & Service Private
Limited ("CSSPL") and gain amounting to H 44.15 Cr. has been recorded in the standalone financial statements for
the year ended March 31, 2026. Consequent to the transfer of its shares, CSSPL ceased to be a subsidiary of the
Company effective April 1, 2025.

47 Segment Information

In accordance with paragraph 4 of Ind AS 108 "Operating segments", the Company has disclosed segment
information only on the basis of the consolidated financial statements.

48 Relationship with struck off companies

During the year ended March 31, 2026, the Company has not entered into any transactions with the companies
whose names were struck off under applicable regulations.