Nature and Purpose of Reserves a Retained Earnings

The Retained Earnings represents accumulated earnings of the Company. Retained Earnings is a free reserve of the Company and is used for the purposes like issuing bonus shares, buy back of shares and other purposes (like declaring Dividend etc.) as per the approval of Board of Directors. It includes the re-measurement gain/(loss) on defined benefit plans which will not be re-classified to statement of profit and loss in subsequent periods.

b Capital Redemption Reserve

As per the Companies Act 2013, Capital Redemption Reserve is created when the Company purchases its own shares out of free reserves or securities premium. A sum equal to the nominal value of the shares purchased is transferred to Capital Redemption Reserve. Utilization of this reserve is governed by the provisions of the Companies Act 2013.

c Fair Value Gain/ (Loss) of Equity Instruments

'This reserve represents the cumulative effect of fair value fluctuations of investments made by the company in equity instruments of other entities. The cumulative gain or loss arising on such changes are recognised through Other Comprehensive Income (OCI) and accumulated under this reserve. This will not be re-classified to the statement of profit and loss in subsequent periods.

d Cash Flow Hedge Reserve

The Cash Flow Hedge Reserve represents the cumulative effective portion of gains/ (losses) arising on changes in fair value of designated portion of hedging instruments entered into for cash flow hedges. The cumulative gain/ (loss) arising on such changes are recognised through Other Comprehensive Income (OCI) and accumulated under this reserve. Such gains/ (losses) will be reclassified to statement of profit and loss in the period in which the hedged item occurs/ affects the statement of profit and loss.

International Tax Reform - Pillar Two Model Rules

The Organisation for Economic Co-operation and Development (OECD) has published the model rules for global minimum tax (Pillar Two). The Ministry of Corporate Affairs (MCA) has notified amendments to Ind AS 12 to incorporate these rules, which introduce specific disclosure requirements.

Pillar Two legislation has not yet been enacted in India, where the Company (Ultimate Parent Entity) is headquartered. Pillar Two legislation is applicable in Singapore, where the Company has operations. At present Effective Tax Rate (ETR) of the Singapore constituent entity is above the minimum prescribed rate of 15%. Accordingly, no current tax expense has been recognised in respect of Pillar Two income taxes for the year ended 31 March 2026 (previous year: NIL).

In accordance with the Amendments to Ind AS 12, the Company being the Ultimate Parent Entity has applied the mandatory exception relief from accounting for deferred taxes that arise from implementing the Pillar Two legislation. The company is evaluating the applicability of Transitional Safe Harbour Relief and will continue to monitor developments in India and other jurisdictions in which it operates.

29.Contingent Liabilities and Commitments:

I. Contingent Liabilities:

a. Claims against the Company not acknowledged as debts:

(i) Legal cases for claim of ' 2,967.14 crore (Previous Year: ' 2,988.11 crore) by Suppliers / Contractors etc. on account of Liquidated Damages / Price Reduction Schedule and by Customers for Natural Gas Price Differential and Natural Gas Transmission Charges etc

(ii) Income Tax Demands of ' 0.28 crore (Previous Year ' 0.28 crore) is pending and disclosed as Contingent Liability as on 31^st March 2026.

(iii) Disputed Indirect Tax Demands are as under:

(' in crore)

on compliance of the conditions of depositing a sum of ' 20 crore and furnishing security to the extent of ' 132 crore. The Company has obtained opinion from legal expert and according to them; the Company has a good case on merits as well as on limitation. The matter is pending before the Supreme Court. Accordingly, an amount of ' 3,768 crore (Previous Year: ' 3,642 crore) including interest and penalty is disclosed as Contingent Liability as on 31^st March 2026.

(iv) Miscellaneous claims of ' 26.58 crore (Previous Year: ' 9.16 crore) includes mainly arbitration cases filed by vendors for delayed payments and losses incurred by them etc.

b. Corporate Guarantees for raising Loans:

The Company has issued Corporate Guarantees for ' 5,163.51 crore (Previous Year: ' 4,559.34 crore) on behalf of related parties for raising loan(s). The amount of loan(s) outstanding as on 31^st March 2026 against these Corporate Guarantees are ' 2650.35 crore (Previous Year: ' 2,512.36 crore). Further, Company has provided Corporate Guarantees for Non fund based facilities on behalf of related parties for ' 11,743.57 crore (Previous Year ' 11,012.76 crore). Against the aforesaid guarantees issued, the Company has recognised a financial liability of ' 362.88 crore as at 31^st March 2026 (Previous Year: ' 352.83 crore).

c. The Company has been authorized by the Ministry of Petroleum & Natural Gas (MoPNG), Government of India, for implementation of City Gas Distribution (CGD) projects in six Geographical Areas (GAs) along with the Jagdishpur-Haldia-Bokaro-Dhamra Pipeline (JHBDPL). Due to delays in pipeline connectivity and pending statutory approvals from various authorities, there has been a shortfall in achievement of Minimum Work Programme (MWP) targets. No notices have been received from PNGRB till date. In view of the PNGRB Regulation, , a contingent liability of ' 33.20 crore as at 31^st March, 2026 (Previous Year: ' 33.20 crore) has been disclosed towards possible penalty for nonachievement of MWP targets. The Management is confident of achieving the cumulative MWP targets in subsequent periods. The details of Minimum Work Programme (MWP) (Achievement vs. Targets) towards the same is as under:

c. Other Commitments:

(i) The Company has commitment of ' 3,120.68 crore (Previous Year: ' 4,398.34 crore) towards further investment and disbursement of loans in the Subsidiaries, Joint Ventures, Associates and Other Companies.

(ii) Commitments made by the Company towards the Minimum Work Programme in respect of Jointly Controlled Assets under various Production Sharing Contracts / Revenue Sharing Contracts in respect of E&P Joint Ventures is ' 10 crore (Previous Year ' 44.88 crore)

30. Disclosure relating to Corporate Social Responsibility (CSR):

As per Section 135 of the Companies Act, 2013 read with guidelines issued by Department of Public Enterprises, Government of India, the Company is required to spend, in every financial year, at least two percent of the average net profits of the Company made during the three immediately preceding financial years in accordance with its CSR Policy. The details of CSR expenses are as under:

31. Claims

I. In respect of certain customers towards Ship or Pay charges, matter being sub-judice / under dispute, the Company has been issuing claim letters, aggregate amount of which as on 31^st March 2026 is ' 1,744.84 crore (Previous Year: ' 1,744.84 crore). Income in respect of the same shall be recognized as and when the matter is finally decided. The amount includes ' 816.71 crore pertaining to customers who are under liquidation and CIRP proceesings and there is remote chance of recovery of the said amount.

II. Pending court cases in respect of certain customers for recovery towards invoices raised by the Company for use of APM gas for non-specified purposes by

fertilizer companies pursuant to guidelines of Ministry of Petroleum & Natural Gas (MoPNG), the Company has issued claim letters amounting to ' 1,704.56 crore (Previous Year: ' 1,704.56 crore) on the basis of information provided by Fertilizer Industry Coordination Committee (FICC). The proceeds, if received, will be transferred to the Gas Pool.

III. Few customers have submitted counter claims amounting to ' 36,152 crore (Previous Year: ' 34,361 crore) against Ship or Pay charges / Consequential Losses for not supplying gas. The company does not expect any probable outflow against the stated claims.

32. Pricing and Tariff:

I. With effect from 1^st April 2002, Liquefied Petroleum Gas (LPG) prices have been de-regulated and decided on the basis of import parity prices fixed by the Oil Marketing

Companies. However, the pricing mechanism is provisional and is subject to finalization by the Ministry of Petroleum and Natural Gas (MoPNG). Impact on pricing, if any, will be recognized as and when the matter is finalized

II. Natural Gas Pipeline Tariff and Petroleum Products Pipeline Transportation Tariff are subject to various Regulations issued by Petroleum and Natural Gas Regulatory Board (PNGRB) from time to time. Impact on profits, if any, is being recognized consistently as and when the pipeline tariff is revised by orders of PNGRB.

III. The Company has filed appeals before Appellate Tribunal for Electricity (APTEL) against two provisional tariff orders issued by Petroleum and Natural Gas Regulatory Board (PNGRB) in respect of Petroleum and Petroleum Product Pipelines. Adjustment, if any, will be recognized as and when the matter is finally decided.

IV. PNGRB vide Gazette Notification F. No. PNGRB/COM/11-PPPL(1)/2024 (E- 5022) dated 19^th July 2024, amended the LPG Pipeline tariff determination regulations providing for a one-time escalation of 17% (@3.40% from 2019-20 till 2023-24, based on 10 year WPI CAGR from 2013-14 to 2022-23) over the Railway's goods tariff table of railway rate circular No.19 of 2018 on the base tariff till the end of financial year 2024-25 and an annual escalation based on WPI Data from 2025-26 onwards. Based on the amended regulations, PNGRB has also issued the amended tariff orders for JLPL and VSPL LPG pipelines on 28.11.2024, boosting LPG transportation revenues.

33. On 19^th February 2014, PNGRB notified the Amended Affiliate Code of Conduct Regulations by insertion of Regulation 5A mandating that an entity engaged in both marketing and transportation of natural gas shall create a separate legal entity on or before 31^st March 2017 so that the activity of transportation of natural gas is carried on by such separate legal entity and the right of first use shall, however, be available to the affiliate of such separate legal entity. The Company has challenged the said PNGRB Regulation before Hon'ble Delhi High Court by way of a Writ Petition and the same is pending for final adjudication.

34. Vide Tariff Order Ref. No. TO/NGPL/25 26/09 dated 27.11.2025, PNGRB determined the tariff for INGPL at ' 65.69/ MMBTU (GCV basis) w.e.f. 01.01.2026, as an interim relief

over the existing tariff of ' 58.61/MMBTU. Subsequently, in December 2025, the Company filed a Review Petition before PNGRB challenging the said Tariff Order dated 27.11.2025 pertaining to GAIL's Integrated Natural Gas Pipeline.

PNGRB issued Tariff Order dated 02.03.2026 for the Vizag-Secunderabad LPG Pipeline (VSPL), whereby the pipeline transportation tariff for FY 2026-27 for LPG Class 165 has been determined by applying a 3.4% escalation over the transportation tariff for FY 2025-26, as per PNGRB PPPL Tariff Regulations.

PNGRB issued Tariff Order dated 30.03.2026 for the Jamnagar-Loni LPG Pipeline (JLPL), whereby the pipeline transportation tariff for FY 2026-27 for LPG Class 165 has been determined by applying a 3.4% escalation over the transportation tariff for FY 2025-26, as per PNGRB PPPL Tariff Regulations.

35. The Company has filed Review Petition in respect of declaration of capacity by PNGRB for GAIL's KG Basin Network for the period from 2015-16 to 2023-24 and the same is pending before PNGRB.

36. Pursuant to the Office Memorandum (OM) issued periodically by the Department of Fertilizers (DoF), the Company continued the supply of gas to Nagarjuna Fertilizers and Chemicals Limited (NFCL) in the larger public interest. As on 31^st March 2026, the outstanding amount from NFCL towards gas supplies stood at ' 838.11 crore. Payment for the gas supplied under the subsidy payment mechanism is secured through an Escrow Arrangement, as communicated by DoF vide OM dated 25^th November 2021 which has been extended from time to time. As per the latest communication dated 11^th May 2026, received from DoF, the matter regarding release of remaining subsidy of NFCL against their gas bills is under reconciliation/ process of DoF. Further with respect to revision of energy norms of NFCL, is also under advanced stage of consideration by Cabinet Committee of Economic Affairs.

Based on above stated communication and pending approval from the competent authority for the sanction/release of subsidy, the Company has estimated that subsidy payment against NFCL's bills will be released amounting to ' 163.46 crore through Escrow mechanism and accordingly, on prudence, a provision for the remaining amount of ' 674.65 crore have been made as at 31^st March 2026.

III. The Company continues to pay ground rent to Delhi Development Authority (DDA) at pre revised rate. The half-yearly ground rent payable by GAIL on 15^th January 2026 has been remitted to DDA as per pre-revised rate. The matter of revision of ground rent is being actively followed up with DDA. Latest communication vide letters dated 29 September 2025 and 20 April 2026 have been sent to DDA, requesting for intimating the enhanced ground rent revisable at their end w.e.f. 01^st January, 2018. In the above communication, DDA has also been requested to intimate the process involved in conversion of the said property from Leasehold to Freehold.

IV. For laying Natural Gas pipelines, Company acquires Right of Use (ROU) of Land for which advance is generally paid to Special Land Acquisition Officer (SLAO). The said Advance is being operated by the SLAO through a separate Bank account. However, in some cases, for KYC purposes, PAN number of the Company has been used. These Bank Accounts are solely under the control of the SLAO.

II. Gas Pool Money (Provisional) shown under "Other Financial Liabilities - Current" amounting to ' 580.86 crore (Previous Year: ' 581.33 crore) with a corresponding debit thereof under Trade Receivable will be invested / paid as and when the said amount is received from the customers.

39. The Company is acting as Pool Operator in terms of the decision of the Government of India for capacity utilization of the notified gas-based power plants. The Scheme, which was applicable till 31^st March 2017, envisaged support to the power plants from the Power Sector Development Fund (PSDF) of the Government of India. The gas supplies were on provisional / estimated price basis, which were to be reconciled based on actual cost. Accordingly, current liabilities include a sum of ' 91.21 crore (Previous Year: ' 91.21 crore) on this account, as on 31^st March 2026 which is payable to the above said power plants and / or to the Government of India.

40. Ind AS 115 - Revenue from Contracts with Customers:

Ind AS 115 establishes a five-step model to account for revenue arising from contracts with customers and requires that revenue be recognized at an amount that reflects the consideration to which an entity expects to be entitled in exchange for transferring goods or services to a customer.

Ind AS 115 requires entities to exercise judgement, taking into consideration all of the relevant facts and circumstances when applying each step of the model to contracts with their customers. The standard also specifies the accounting for the incremental costs of obtaining a contract and the costs directly related to fulfilling a contract. In addition, the standard requires extensive disclosures.

43. Disclosure under the Ind AS 19 on Employee Benefits is given as below:

I. Defined Contribution Plans

a. Employees' Superannuation Benefit Fund

During the year, the Company has contributed ' 134.83 crore (Previous Year: ' 124.46 crore) to Superannuation Benefit Fund (including National Pension System) and charged to Statement of Profit and Loss/ CWIP.

b. Employee Pension Scheme (EPS-95)

During the year, the Company has contributed ' 4.56 crore (Previous Year: ' 4.86 crore) to EPS-95 and charged to Statement of Profit and Loss/ CWIP.

II. Defined Benefit Plans:

a. Provident Fund

During the year, the Company has contributed ' 112.60 crore (Previous Year: ' 109.52 crore) to Provident Fund Trust at predetermined fixed percentage of eligible employees' salary and Nil (Previous Year: ' 1.84 crore) towards Provident Fund Contribution for interest shortfall/losses on portfolio basis, and charged to statement of profit and loss/ CWIP. Further, the obligation of the Company is to make good shortfall, if any, in the fund assets based on the statutory rate of interest.

b. Gratuity

Each employee rendering continuous service of 5 years or more is entitled to receive gratuity amount based on completed tenure of service subject to maximum of ' 0.25 crore at the time of separation from the Company.

c. Post-Retirement Medical Scheme (PRMS)

PRMS provides medical coverage to retired employees and their eligible dependant family members.

d Terminal Benefits (TB)

At the time of superannuation, employees are entitled to settle at a place of their choice in India and they are eligible for Transfer Travelling Allowance from their last place of posting.

e. Relief Measures for Dependent Family Members of Deceased Employees

The Company provides various assistance to the dependent family members of the deceased employees for Education of Children, Medical Benefits and Residential Quarter Facilities in the event of death of an employee during the service.

III. Other Long Term Benefit Plans: a Leave Encashment

Earned Leave is accrued 30 days per year. Earned Leave is encashable in the multiple of 5 any no of times in a year while in service, subject to keeping a minimum balance of 15 days in the respective employee's account. Encashment on retirement or superannuation is limited to 300 days. Half Pay Leave is accrued 20 days per year. The encashment of unavailed HPL is allowed as per approved Company rules at the time of Superannuation.

b. Long Service Award (LSA)

As per approved policy of the Company, on completion of specified period of service with the company and also at the time of retirement, employees are rewarded monetarily based on the duration of service completed.

c. Financial Assistance Scheme (FAS)

The Financial Assistance Scheme is formulated by the Company for the welfare of its regular employees. The obligation of the Company is to provide an assured lump sum amount in the event of death or permanent total disablement of an employee while in service.

IV The Government of India has notified four Labour Codes, namely Code on wages, 2019, the Industrial Relations Code, 2020, the Code on Social Security, 2020 and Occupational Safety, Health and Working Conditions Code, 2020, with effect from 21^st November 2025, which consolidates 29 existing labour laws. The rules have been recently notified, and no material liability is envisaged in this regard.

(i) The Company is a Non-operating partner in E&P blocks for which reserves are disclosed.

(ii) The initial oil and gas reserve assessment was made through an expert third party agency / internal expert assessment by respective operators of E&P blocks. The year-end oil reserves are estimated based on information obtained from operators / on the basis of depletion during the year. Re-assessment of oil and gas reserves carried out by the respective Operator as and when there is new significant data or discovery of hydrocarbon in the respective block.

(iii) E&P blocks are assessed individually for impairment.

III The Company's share of balance cost recovery is ' 529.07 crore (Previous Year ' 476.52 crore) to be recovered from future revenues from E&P blocks having proved reserves as per production sharing contracts. The increase in Cost Recovery in FY 2025-26 is due to increase in investment in A-3, Myanmar Block for Phase-IV Development activities

IV Other Disclosures

CY-OS/2: Following a Non-Associated Natural Gas (NANG) discovery, the operator notified an appraisal program on 08.01.2007 and sought a 60-month license extension from MOPNG on 09.10.2008 to establish commerciality. However, DGH, through its communication dated 16.03.2009, declared the license relinquished with immediate effect on the grounds that commerciality had not been declared by 07.03.2009, as applicable to oil discoveries.

The dispute was referred to arbitration, where the Tribunal ruled in favour of the operator on 02.02.2013. MOPNG appealed the award on 08.08.2013 and is presently being heard before the Delhi High Court, with the next hearing scheduled for September 2026. AA-ONN-2002/1: The block contains two gas discoveries. The Kathalchari Development Plan was approved by DGH in August 2015 and the North Atharamura Appraisal Plan in June 2015. However, development and appraisal activities have been delayed due to pending statutory clearances, including extension of the Petroleum Exploration License (PEL), Forest Diversion (FD) permission, and Environmental Clearance (EC). Forest Diversion permissions for well locations are also awaited and are linked to the PEL extension. Further, the EC application submitted to MoEFCC in July 2016 was kept in abeyance due to delayed responses to the Expert Appraisal Committee (EAC). GK-OSN-2010/1: Following appraisal drilling, the two gas discoveries in Block GK-OSN-2010/1 (GKS101NAA-1 and GKS101NCA-1) were found to be economically unviable for development. The operator sought special dispensation of 36 months, but no extension was granted, and the discoveries were subsequently offered under the DSF-IV bid round in 2025 pursuant to DGH's letter dated 29.12.2025. In light of the expiry of block validity, absence of ECS approval, and inclusion of the discoveries in DSF-IV, the operator requested the Operating Committee to relinquish the entire block area, and the consortium has initiated actions toward relinquishment.

48. Impairment of Assets - Ind AS-36 & Ind AS 109:

In compliance of 'Ind AS 36 Impairment of Assets' and 'Ind AS 109 Financial Instruments', the Company carried out assessments of impairment in respect of assets of LPG Plant, Producing Property of Exploration and Production, Plant and Machinery and Right of Use (RoU) for Pipelines as on 31^st March 2026:

I. There is no impairment loss during the FY 2025-26 (Previous Year: ' 0.92 crore) in respect of assets of GAIL Tel.

II. The Company has accounted for a reversal of impairment loss of ' 1.60 crore (Previous Year 0.22 crore) in respect of Plant and

Machinery.

III. The Company accounted impairment loss of ' 2.60 crore (Previous Year ' 0.30 crore) in respect of Producing Property of Exploration and Production business.

IV. The Company has accounted for an impairment loss of ' 7.65 crore (Previous Year ' 8.98 crore) in respect of assets of LPG Plant.

V. The Company conducted impairment study of RoUs for Pipelines in compliance with the provisions of Ind AS 36. There is no

impairment loss found in respect of RoUs.

VI. The Company's investment in subsidiaries, associates and joint ventures are tested for impairment when there is any significant indication that those investments have suffered an impairment loss. During the year impairment assessment of such investments was carried out and the value in use / fair value of such investments were more than the carrying value and therefore no impairment loss has been provided on such investments.

49. In compliance of Ind AS 109 on Impairment of Financial Assets/ Expected Credit Loss (ECL) on Financial Guarantees, the Company has carried out an assessment in respect of its following investments/ Financial Guarantees as on 31^st March 2026:

During the year, based on the fair valuation of GAIL Global USA Inc. (GGUI), the Company has provided for Expected Credit Loss of ' 13.91 crore (Previous Year: ' 49.32 crore) against Corporate Guarantee provided by the company on behalf of GGUI.

53. Interest free advance has been given to M/s. Petronet LNG Ltd. (PLL) for booking of regasification capacity to the tune of ' 561.80 crore during FY 2014-15 & FY 2015-16 in two equal tranches. The said advance is to be adjusted within 15 years against regasification invoices of PLL. Out of above advance, PLL has adjusted ' 38.20 crore during the year (Previous Year: ' 38.20 crore). Balance amount of ' 210.02 crore during the year (Previous Year: ' 248.22 crore) has been accounted as advance in Note No 12 and 12A.

55. Cabinet Committee on Economic Affairs (CCEA), Government of India in its meeting held on 21^st September 2016 approved 40% capital grant of estimated capital cost of ' 12,940 crore i.e. ' 5,176 crore to the Company for execution of Jagdishpur Haldia Bokaro Dhamra Pipeline Project (JHBDPL). The Company has received ' 4,926.29 crore (Previous year ' 4,926.29 crore) towards Capital Grant till 31^st March 2026. During the year, the Company has amortised the capital grant amounting ' 112.96 crore (Previous Year ' 143.42 crore) based on the useful life of the asset capitalized.

56. Financial Risk Management:

The company is exposed to a number of financial risks arising from natural business exposures as well as its use of financial instruments. This includes risks relating to commodity prices, foreign currency exchange, interest rates, credit and liquidity.

I. Market Risk

Market risk is a risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises of interest rate risk, foreign currency risk, equity price risk and commodity price risk. Financial instruments affected by market risk includes Loans, Borrowings, Deposits, FVTOCI Investments and Derivative Instruments.

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

The analysis excludes the impact of movements in market variables on the carrying values of gratuity and other post-retirement obligations, provisions, and other non-financial assets.

a. Interest Rate Risk

I nterest rate risk is a risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Company's exposure to the risk of changes in market interest rates relates primarily to the long-term domestic rupee term loans with floating interest rates. The Company manages its interest rate risk according to its Board approved Foreign Currency and Interest Rate Risk Management Policy. Market interest rate risk is mitigated by hedging through appropriate derivatives products such as interest rate swaps & full currency swaps, in which it agrees to exchange, at specified intervals, the difference between fixed and variable rate interest amounts calculated by reference to an agreed-upon notional principal amount.

b. Foreign Currency Risk

Foreign currency risk is a risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in foreign exchange rates. The Company transacts business in local currency and foreign currency, primarily US Dollars. Company has foreign currency trade payables and receivables and is therefore, exposed to foreign exchange risk. As per its Board approved policy, Company may mitigate its foreign currency risk through plain vanilla derivative products such as foreign exchange option contracts, swap contracts and forward contracts for hedging such risks. These foreign exchange contracts, carried at fair value, may have varying maturities depending upon the underlying contract requirement and risk management strategy of the Company.

c. Commodity Price Risk

The Company imports LNG for marketing and its internal consumption on an on-going basis and is not exposed to the price risk to the extent it has contracted with customers in India and overseas on back to back basis. However, the Company is exposed to the price risk on the volume which is not contracted on back to back basis. As most of the LNG purchase and sales contracts are based on natural gas or crude based index, such price risk arises out of the volatility in these indices. Company also has index linked price exposure on sales of LPG/LHC products and sales of crude oil & natural gas produced from E&P blocks. Further, company may have index linked price exposure for Paraxylene and Propane for its petrochemical segment. In order to mitigate the various index linked price risk, the Company has been taking appropriate derivative products in line with the Board approved Commodity Price Risk Management Policy.

d. Equity Price Risk

The Company's investment in listed and unlisted equity instruments are subject to market price risk arising from uncertainties about future values of these investments. The Company manages the equity price risk through review of investments on a regular basis. The Company's Board of Directors reviews and approves all the equity investment decisions of the Company.

At the reporting date, the exposure to unlisted equity investments at fair value was ' 428.33 crore (Previous Year: ' 386.13 crore).

At the reporting date, the exposure to listed equity investments at fair value was ' 8,785.54 crore (Previous Year: ' 7,608.69 crore). A variation of ( /-) 10% in share price of equity investments listed on the stock exchange could have an impact of approximately ( /-) '878.55 crore (Previous Year ' 760.87 crore) on the OCI and equity investments of the Company. These changes would not have an effect on profit or loss.

II. Liquidity Risk

Liquidity risk is a risk that suitable sources of funding for Company's business activities may not be available. The Company's objective is to maintain optimum level of liquidity to meet its cash and collateral requirements. The Company closely monitors its liquidity position and deploys a robust cash management system. It also maintains adequate sources to finance its short term and long term fund requirements such as overdraft facility and long term borrowing through domestic and international market.

III. Credit risk

Credit risk is a risk that a customer or ship party to a financial instrument may fail to perform or pay the due amounts causing financial loss to the Company. It is considered as a part of the risk-reward balance of doing business and is considered on entering into any business contract to the extent to which the arrangement exposes the Company to credit risk. It may arises from Cash and Cash Equivalents, Derivative Financial Instruments, deposits with financial institutions and mainly from credit exposures to customers relating to outstanding receivables. Credit exposure also exists in relation to guarantees issued by the Company. Each segment is responsible for its own credit risk management and reporting.

The Company has issued Corporate Guarantees on behalf of its group companies, refer note no. 52 for details.

Trade Receivables

Customer credit risk is managed by each business unit subject to the Company's established policy, procedures and controls relating to customer credit risk management. Outstanding receivables from customers are regularly monitored. An impairment analysis is performed at each reporting date on an individual basis for major clients.

Financial Instruments and Cash Deposits

Credit risk from balances with banks and financial institutions is managed by the Company's treasury department in accordance with approved limits of its empanelled banks, for the purpose of investment of surplus funds and foreign exchange transactions. Foreign exchange transaction and investments of surplus funds are made only with empanelled Banks and Liquid & Overnight Mutual Funds. Credit limits of all Banks are reviewed by the Management on regular basis.

IV. Capital Management

Capital includes issued capital and all other equity reserves attributable to the equity holders of the Company. The primary objective of the Company's capital management is to ensure that it maintains a strong credit rating and healthy capital ratios in order to support its business and maximize the shareholder value.

The Company manages its capital structure and makes adjustments 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. No changes were made in the objectives, policies or processes during the reporting year.

57. Accounting classifications and fair value measurements:

The Company uses the following hierarchy for determining and disclosing the fair value of financial instruments by valuation technique: Level 1: quoted (unadjusted) prices in active markets for identical assets or liabilities

Level 2: other techniques for which all inputs which have a significant effect on the recorded fair value are observable, either directly or indirectly

Level 3: technique which use inputs that have a significant effect on the recorded fair value that are not based on observable market data.

i) The carrying cost of Interest-bearing loans & borrowings is approximately equal to their Fair Market Value.

ii) The carrying amount of trade receivables, cash and cash equivalents, other bank balance, others receivables, trade payables, interest accrued and due, other payables and other financial liabilities are considered to be same as their fair value due to their short term nature.

iii) With respect to borrowings, the fair value was calculated based on cash flows discounted using the current lending rate. They are classified as level 3 fair values in the fair value hierarchy due to the inclusion of unobservable inputs including counter party credit risk.

The fair values of the financial assets and liabilities are 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.

58. Hedging Activities and Derivatives

Derivatives not designated as hedging instruments

The Company uses forward currency contracts, interest rate swaps, cross currency interest rate swaps, commodity swap contracts to hedge its foreign currency risks, interest rate risks and commodity price risks. Derivative contracts not designated by management as hedging instruments are initially recognized at fair value on the date on which a derivative contract is entered into and are subsequently remeasured at fair value on each reporting date. Such contracts are entered into for periods consistent with exposure of the underlying transactions.

Derivatives designated as hedging instruments:

Cash Flow Hedges

The Company enters into hedging instruments in accordance with policies as approved by the Board of Directors with written principles which is consistent with the risk management strategy of the Company. Company has decided to apply hedge accounting for certain derivative contracts that meets the qualifying criteria of hedging relationship entered into post October 01, 2017.

Foreign Currency Risk

Foreign exchange forward contracts are designated as hedging instruments in cash flow hedges of firm commitment of capital purchases in USD and existing borrowings e.g. USD / Japanese Yen etc.

Commodity Price Risk

The Company purchases and sells natural gas / liquefied petroleum gas on an ongoing basis as its operating activities. The significant volatility in natural gas / liquefied petroleum gas prices over the years has led to Company's decision to enter into hedging instruments through swap transactions including basis swaps. These contracts are designated as hedging instruments in cash flow hedges of forecasted sales and purchases of natural gas / liquefied petroleum gas.

60. Confirmation of Assets & Liabilities:

I. Some balances of trade and other receivables, trade and other payables are subject to confirmation / reconciliation. Adjustment, if any, will be accounted for on confirmation / reconciliation of the same, which will not have a material impact.

II. In the opinion of management, the value of assets, other than fixed assets and non-current investments, on realization in the ordinary course of business, will not be less than the value at which these are stated in the Balance Sheet.

63. The residual values, useful lives and methods of depreciation of Property Plant and Equipment (PPE) are reviewed at each reporting date by the Company. During the year, technical assessments have been carried out in respect of following PPE:

a. Natural Gas and Liquefied Petroleum Gas Pipelines

b. Polyethylene Plants

c. Telecom Optical Fibre Cables

d. Furniture, Electrical Equipment's and Mobile Phones provided for the use of employees.

Based on technical assessments, useful life of Natural Gas and Liquefied Petroleum Gas Pipelines has been revised from existing 30 years to 40 years and useful life of Polyethylene Plants, has been revised from existing 25 years to 35 years.

The residual value in respect of Telecom Optical Fibre Cables and Furniture, Electrical Equipment's and Mobile Phones provided for the use of employees has been revised from existing 5% to 'NIL' based on internal technical assessments.

The aforesaid revision has been considered as a change in accounting estimate in terms of the applicable provisions of Indian Accounting Standard (Ind AS) 8 - Accounting Policies, Changes in Accounting Estimates and Errors, read with Ind AS 16 - Property, Plant and Equipment, and has been applied prospectively.

Consequent to the aforesaid revision, depreciation in respect of Natural Gas and Liquefied Petroleum Gas Pipelines and Polyethylene Plants reduced by ' 496 crore and ' 189 crore, respectively, during the financial year ended 31^st March 2026.

Due to revision of residual value of Telecom Optical Fibre Cables and Furniture, Electrical Equipment's and Mobile Phones provided for the use of employees, additional depreciation of ' 7 crore and ' 4 crore, respectively, charged during the financial year ended 31^st March 2026.

Further, the estimated impact for future periods is not presently ascertainable, as the same would depend upon asset additions, technological developments, maintenance practices and periodic reassessment of the useful life and residual value of the respective assets.

64. I. The Company has deferred Interest moratorium on Loan given to one of its subsidiary for a period of one year (i.e., from March 2026

to March 2027) and interest accrued till March 2027, shall be payable from December 2027 (in eight equal quarterly instalment). Further, basis for interest rate for the two Inter Corporate Loans given to KLL has been changed from 'SBI 1 Year MCLR 0.20% p.a.' to 'RBI Repo Rate 1.20% p.a.' w.e.f. January 2026.

II. The Company has deferred Principal repayment on Loan given to one of its another subsidiary for a period of 9 months (i.e., from June 2027 to March 2028). The loan payment tenure has been reduced by 1 year i.e. from 40 quarterly instalments to 36 quarterly instalments. Further, the Company has deferred monthly interest payment on the loan given by 11 Months (i.e. from October 2025 to September 2026) and interest accrued till August 2026, shall be payable from March 2027 (in twelve equal quarterly instalments).

65. Under Destination Swap Agreements with M/s Gunvor Singapore Pte Ltd., the company successfully fulfilled its FOB Leg obligation. However, the counterparty did not perform its DES Leg obligation, which carried a delivery window commencing on 10^th March 2026. The counterparty has attributed such non-performance to geopolitical disruptions in the Strait of Hormuz and has invoked Force Majeure under the agreement. The company is examining the matter of the Force Majeure claim, and is also evaluating the alternative options. Pending final resolution, the minimum contractual relief presently available to the company, i.e., cash settlement as stipulated under the agreement, an amount of ' 135.40 crore for quantity of 3393310 MMBTU @ $4.209 per MMBTU has been duly accounted for as on 31^st March 2026.

68. Consequent upon settlement agreement dated 15^th January 2025 entered with one of the LNG supplier, which includes payment of US$ 285 million by LNG supplier to the Company towards settlement of litigation for non-supply of LNG cargos during FY 2022-23, the Company had recognised ' 2,440.03 crore (US$ 285 million) as an exceptional income during the previous financial year 2025-26.

69. The ongoing geopolitical situation in West Asia during March 2026 disrupted LNG supplies from Middle East, resulting in higher LNG prices and foreign exchange volatility. Further, due to force majeure declared by Petronet LNG Limited (PLL) under its supply contract with Qatar Energy on 3 March 2026, RLNG allocation to the company under the said contract was reduced to zero with effect from 4 March 2026. In addition, four LNG cargoes scheduled for loading during March 2026 under other contracts were also impacted.

This affected the Company's operations, including a reduction in natural gas sales and transmission volumes by around 21 MMSCMD and 30MMSCMD, respectively during March 2026 as compared to February 2026.

However, supplies from other sources continued, and the Company took various mitigation measures, including procurement of LNG/ Natural gas from the spot market and alternative sources, to manage the impact and ensure supply to priority sectors in line with the Government of India's Natural Gas (Supply Regulation) Order dated 09 March 2026.

Further, the said geopolitical situation has also impacted the LPG pipeline transmission in the month of March 2026 by 39 TMT as compared to February 2026

70. Wilful Defaulter:

The Company has not been declared as a wilful defaulter by any bank or financial institution or any other lender as on 31^st March 2026 and 31^st March 2025.

71. Benami Property:

The Company is not holding any Benami Property as on 31^st March 2026 and 31^st March 2025. Further, no proceedings have been initiated or pending against the Company for holding any benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and the rules made thereunder.

72. Borrowings Secured against Current Assets:

During the financial year ended 31^st March 2026, the Company has not availed any borrowings from banks or financial institutions against security of current assets. Accordingly there is no requirement for filing quarterly return/statements of current assets by the Company with Banks or Financial Institutions.

75. Previous Year's figures have been regrouped / reclassified, wherever necessary to correspond with the current year's classification / disclosure.

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It includes demand of differential Central Excise Duty confirmed by CESTAT, Delhi vide order dated 30^th November 2018 of ' 2,889 crore including interest and penalty in the matter pertaining to classification of 'Naphtha' manufactured by the Company. The Company has filed an appeal before the Hon'ble Supreme Court against the order, which was admitted and a stay has been granted by the Hon'ble Supreme Court