1.2.19 Provisions and contingent liabilities

Provisions are recognized when the Company has a present obligation (legal or constructive) as a result of a
past event, it is probable that an outflow of economic benefits will be required to settle the obligation, and a
reliable estimate can be made of the amount of the obligation.

The amount recognized as a provision is the best estimate of the consideration required to settle the present
obligation at the end of the reporting period, taking into account the risks and uncertainties surrounding the
obligation.

When some or all of the economic benefits required to settle a provision are expected to be recovered from a
third party, the receivable is recognized as an asset, if it is virtually certain that reimbursement will be received
and the amount of the receivable can be measured reliably.

Contingent liabilities are possible obligations that arise from past events and whose existence will only be
confirmed by the occurrence or non-occurrence of one or more future events not wholly within the control of
the Company. Where it is not probable that an outflow of economic benefits will be required, or the amount
cannot be estimated reliably, the obligation is disclosed as a contingent liability, unless the probability of
outflow of economic benefits is remote. Contingent liabilities are disclosed on the basis of judgment of the
management/independent experts. These are reviewed at each balance sheet date and are adjusted to reflect
the current management estimate.

1.2.20 Cash and cash equivalents

Cash and cash equivalents in the balance sheet comprise cash at banks and on hand and short-term deposits
with a maturity of three months or less, which are subject to an insignificant risk of changes in value. For the
purposes of the cash flow statement, cash and cash equivalents include cash on hand, in banks and demand
deposits with banks are considered part of the Company's cash management system.

1.2.21 Foreign currency transactions

The Company's financial statements are presented in INR which is also the functional currency of the Company.

Foreign currency transactions are recorded on initial recognition in the functional currency using the exchange
rate at the date of the transaction. At each balance sheet date, foreign currency monetary items are reported
using the closing exchange rate. Exchange differences that arise on settlement of monetary items or on
reporting at each balance sheet date of the Company's monetary items at the closing rate are recognized as
income or expenses in the period in which they arise.

Non-monetary assets and liabilities denominated in foreign currencies that are measured at fair value are
retranslated to the functional currency at the exchange rate at the date that the fair value was determined.
Non-monetary items that are measured in terms of historical cost in a foreign currency are translated using
the exchange rate at the date of the transaction.

1.2.22 Borrowing cost

Borrowing costs that are directly attributable to the acquisition, construction or erection of qualifying assets
are capitalized as part of cost of such asset until such time that the assets are substantially ready for their
intended use. Qualifying assets are assets which take a substantial period of time to get ready for their intended
use or sale.

When the Company borrows funds specifically for the purpose of obtaining a qualifying asset, the borrowing
costs incurred are capitalized. When the Company borrows funds generally and uses them for the purpose of
obtaining a qualifying asset, borrowing costs eligible for capitalization are computed based on the weighted
average cost of general borrowings outstanding during the period and are capitalized to the extent expenditure
on the qualifying asset has been incurred.

Capitalization of borrowing costs ceases when substantially all the activities necessary to prepare the qualifying
assets for their intended uses are complete. Borrowing costs consist of interest and other costs that an entity
incurs in connection with the borrowing of funds. Borrowing costs include exchange differences arising from
foreign currency borrowings to the extent that they are regarded as an adjustment to interest costs.

All other borrowing costs are recognized as an expense in the year in which they are incurred.

1.2.23 Segment Reporting

i) Identification of Segments

The Company's operating businesses are organized and managed separately according to the nature of
products and services provided, with each segment representing a strategic business unit that offers
different products and serves different markets.

ii) Segment Accounting Policies

The Company prepares its segment information in conformity with the accounting policies adopted for
preparing and presenting the financial statements of the Company as a whole.

iii) Inter-Segment Transfers

The Company generally accounts for intersegment transfers at an agreed transaction value.

iv) Unallocated Items

Unallocated items include general corporate income and expense items which are not allocated to any
business segment.

Operating segments are reported in a manner consistent with the internal reporting provided to the chief
operating decision maker. Refer note 34 for details on segment information presented.

1.2.24 Onerous Contracts

Provisions for onerous contracts are recognized when the expected benefits to be derived by the Company
from a contract are lower than the unavoidable costs of meeting the future obligations under the contract. The
provision is measured at lower of the expected cost of terminating/exiting the contract and the expected net
cost of fulfilling the contract.

1.2.25 Cash Flow Statement

Cash flows are reported using the indirect method, whereby net profit before tax is adjusted for the effects
of transactions of a non-cash nature, any deferrals or accruals of past or future operating cash receipts or
payments and item of income or expense associated with investing or financing cash flow. The cash flows from
operating, investing and financing activities of the Company are segregated.

1.2.26 New and amended standards

(i) The Company has not early adopted any standards, amendments, or interpretations that have been issued
but are not yet effective or notified under the Companies (Indian Accounting Standards) Rules.

(ii) The Ministry of Corporate Affairs ("MCA") has notified the following amendments / standards:

- Amendments to Indian Accounting Standards (Ind AS) 107 relating to supplier finance arrangements, which
require enhanced disclosures to improve transparency of such arrangements. These amendments are
applicable only where an entity has supplier finance arrangements and, accordingly, are not applicable to
the Company.

- Indian Accounting Standards (Ind AS) 104, relating to insurance contracts, which permits insurers to continue
applying certain existing accounting practices and is applicable from 1st April 2026. As the standard is
applicable only to insurance companies, it is not applicable to the Company.

The management has assessed the above amendments / standards and concluded that they are not expected
to have any material impact on the financial statements of the Company.

C Terms/rights attached to equity shares

The Company has only one class of equity shares having a par value of ' 1/- per share. Each shareholder is
eligible for one vote per share held. In the event of liquidation of the Company, the holders of equity shares
will be entitled to receive the sales proceeds of the remaining assets of the Company after distribution of all
the preferential amounts. The distribution shall be in proportion to the number of equity shares held by the
shareholders.

(i) During amalgamation, the excess of net assets acquired, over the cost of consideration paid is treated as
capital reserve.

(ii) Capital Redemption Reserve is created on buy back of equity shares, it is to be utilized in accordance with the
provision of Companies Act, 2013.

(iii) Securities premium is used to record the premium received on issue of shares. It is to be utilized in accordance
with the provisions of Companies Act, 2013.

(iv) General Reserve is available for payment of dividend to the shareholders as per the provisions of Companies
Act, 2013.

1) Nature of security :

a) Term Loans from Bank (For Siltara and Mandhar Complex) are secured by first pari-passu charge by way
of hypothecation of entire movable assets of the Company situated at Industrial Growth Centre, Siltara,
Raipur subject to prior charge on current assets in favour of Working Capital Bankers and by way of joint
equitable mortgage of immovable properties of the Company situated at Industrial Growth Centre, Siltara,
Raipur and Urkura, Raipur.

b) Term Loans from Bank (For IPP Division, Binjkot, Raigarh) are secured by first pari-passu charge by way of
hypothecation of entire movable assets of the Company situated at IPP Division, Binjkot, Raigarh and by
way of joint equitable mortgage of immovable properties of the Company situated at IPP Division, Binjkot,
Raigarh.

2) Repayment terms :

a) Rupee term loan of ' 700 crore (Present Outstanding ' 672 crore) from HDFC Bank is payable in 120 quarterly
installments starting from November 2024.

b) Rupee term loan of ' 675 crore (Present Outstanding ' 675 crore) from Axis Bank Limited is payable in 42
quarterly installments starting from May'2026.

Security:

Working Capital loans from banks are secured by first pari-passu charge on stocks & book debts and second pari-
passu charge on all present and future movable Plant & Machinery and second pari-passu charge by way of joint
equitable mortgage of immovable properties located at Industrial Growth Centre, Siltara, Raipur and at Urkura Raipur.
FDOD loans are secured by fixed deposits.

Other Note:

The Company has working capital facilities from banks on the basis of security of current assets and submitting
quarterly financial follow up report as per the terms and conditions of sanction letters. There are no material
discrepancies in the amount of current assets between financial follow up reports and books of accounts.

None of the banks, financial institutions or other landers from whom the Company has borrowed funds has declared
the Company as a wilful defaulter at any time during the current year or in previous year.

Notes:

(1) Revenue from operations Comprises 37.23% (P.Y. 25.53%) from one of its major customer from Power
Segment.

(2) No operating segments have been aggregated to from the above reportable operating segments.

35 BUSINESS COMBINATION

During previous year, on August 21, 2024, the Company completed acquisition of SKS Power Generation
(Chhattisgarh) Limited ('SKS Power') pursuant to the Resolution Plan ('RP') approved by the National Company
Law Tribunal vide its order dated August 13, 2024, under Corporate Insolvency and Resolution Process ('CIRP')
of the Insolvency and Bankruptcy Code, 2016 ('IBC').

Due to business combination, the current year figures are not strictly comparable with that of the previous
year.

Terms and conditions of transactions with related parties

All related party transactions entered during the year were in ordinary course of business and on arm's length basis.
For the year ended 31st March 2026, the Group has not recorded any impairment of receivables relating to amounts
owed by related parties (31st March 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.

(1) Disputed Tax matters and claims:

As at 31st March, 2026, there are pending litigations concerning various matters related to excise, customs,
service tax, VAT, GST and Income Tax, involving demands of ' 49.77 crore (PY: ' 28.95 crore). The details of
significant demands are as follows:

(a) Excise duty cases includes disputes related to the availment of CENVAT Credit, which have been contested
by the Company at different forums. As at 31st March, 2026, the total amount under dispute is ' 0.28 crore
(PY: ' 0.28 crore).

(b) The Principal ADG of DRI, Ahmedabad, issued a SCN alleging that the Company acquired MEIS scrips
(and utilized for payment of custom duty) from an exporter who obtained them through deliberate
misclassification of exported goods to gain undue benefits. The matter has been adjudicated by the
Principal Commissioner of Customs, Mumbai, and confirmed a demand of ' 0.20 Crore (PY: ' 0.20 crore).
Aggrieved by the order, the company has filed an appeal before CESTAT Mumbai.

(c) The Company is involved in a customs dispute pertaining to denial of CVD exemption on import of
Manganese Ore for FY 2011-12 and 2012-13. The Company has paid the differential CVD demand of ' 11.13
crore and availed corresponding CENVAT credit; accordingly, the matter is presently being contested
primarily in respect of interest demand amounting to ' 3.28 crore. The demand, including interest, was
upheld by CESTAT, Hyderabad vide order dated 09.01.2026. Aggrieved by the said order, the Company
proposes to file an appeal before the Hon'ble Supreme Court.

(d) Service tax demand of ' 0.09 crore (PY: ' 0.09 crore) has been raised by the department across various
disputed matters on the ground of Taxability. The Company has contested these demands and preferred
an appeal before the Central Excise and Service Tax Appellate Tribunal (CESTAT) Delhi.

(e) Various matters has been adjudicated by the GST authorities by raising a demand of ' 3.48 Crore including
interest and penalty. The Company appealed to the first appellate authority, who partially allowed the appeal
and re-affirmed the remaining demands. Aggrieved by the appellate order, the Company has submitted a
letter of intent to the department, expressing its intention to file an appeal before the appellate tribunal
once it becomes operational. As at 31st March, 2026, the total amount under dispute is ' 1.11 Crore.

(f) Value Added Tax/Central Sales Tax/ Entry Tax demands of ' 6.40 Crore (PY : ' 9.66 Crore) are pending in
appeal against assessment of various year.

(g) The Company has ongoing disputes with income tax authorities relating to tax treatment of certain
items. These mainly include disallowance of expenses, tax treatment of certain expenses claimed by the
Company as deduction and the computation of or eligibility of the Company's use of certain allowances.
Most of these disputes and/or disallowances are repetitive in nature and have been raised by the income
tax authorities consistently in most of the year. As at 31st March, 2026, there are matters and/or disputes,
pending in appeal amounting to ' 36.53 crore (PY : ' 17.6 crore). The Company expects to sustain its position
on ultimate resolution of the said appeals.

(h) It is not practicable to predict the outcome and timing of cashflow (if any) of the pending litigations with
accuracy. However, basis experts opinions and/or internal assessment, the Company believes that it has
meritorious defences to the claims and 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.

(2) Others Taxes, claims and Litigations:

(a) Chief Electrical Inspector, Govt. of Chhattisgarh has issued a demand for recovery of Energy Development
Cess for the period May 2006 to June 2025 in the light Chhattisgarh Upkar Sansodhan Adhiniyam 2004.

The Company challenged the constitutional validity of Section 3 (1-a) of the act before Hon'ble HC of
Chhattisgarh, wherein the court held the levy of Energy Development Cess as unconstitutional vide its
Order dated 20th June 2008. The State Govt. has filed a Special Leave Petition before the Honourable
Supreme Court.

As at 31st March, 2026, the total amount under dispute is ' 127.07 crore (PY: ' 93.33 crore) which is pending
for resolution.

(b) South East Central Railways (SECR) has invoked and encashed a bank guarantee amounting to ' 40.08
crore in connection with construction of a Road Over Bridge (ROB) pertaining to IPP Raigarh unit
acquired by the Company through CIRP process. The Company has challenged the encashment before

the Hon'ble High Court of Chhattisgarh on the grounds that the obligation to construct the ROB rests
with SECR and that invocation of the guarantee during pendency of insolvency proceedings was not in
accordance with applicable provisions of law. Further, SECR has also raised an additional demand of
' 16.47 crore, which is disputed by the Company and is presently pending before the Commercial Court,
Raipur.

38. CONTINGENT ASSETS

(I) The Company has various pending insurance claims amounting ' NIL (PY: ' 0.30 crore) against Machine Break
Down (MBD).

(II) The Company has claimed refund of ' 6.30 Crore (PY: ' 6.30 Crore) Vikas Upkar and Paryavaran Upkar in respect
of its coal mines at Gare Palma IV/7.

(III) IPP unit of Company filed a claim of ' 13.57 Crore (PY: ' 13.57 Crore) towards reimbursement of taxes and duties
arises from change in Law in pursuant to directions passed by Central Electricity Regulatory Commission
(CERC) in the matter of long-term Power Purchase Agreement entered into between M/s Powerica Limited and
Solar Energy Corporation of India Limited.

(III) Other claims by the Company not recognised as asset is ' 0.45 Crore (PY: ' 0.45 Crore)

39 CORPORATE SOCIAL RESPONSIBILITY

As per Section 135 of the Companies Act, 2013, a company, meeting the applicability threshold, needs to
spend at least 2% of its average net profit for the immediately preceding three financial years on corporate
social responsibility (CSR) activities. The areas for CSR activities are eradication of hunger and malnutrition,
promoting education, art and culture, healthcare, destitute care and rehabilitation, environment sustainability,
disaster relief and rural development projects. A CSR committee has been formed by the Company as per the
Act. The funds were utilized through the year on these activities which are specified in Schedule VII of the
Companies Act, 2013.

a) Gross amount required to be spent by the company during the year is ' 14.79 Crore

b) Amount spent during the year on:

41 FINANCIAL RISK MANAGEMENT OBJECTIVE AND POLICIES

The Company's principal financial liabilities comprise of loans and borrowings in foreign as well as domestic
currency, trade payables and other payables. The main purpose of these financial liabilities is to finance the
Company's operations. The Company's principal financial assets include investments, loans, trade and other
receivables, and cash and short-term deposits that derive directly from its operations. The Company also
enters into derivative contracts.

The Company is exposed to the following risks from its use of financial instruments:

- Credit risk

- Liqui dity risk
Market Risk¬
- Interest rate risk

- Currency risk

- Price risk

The Company's board of directors has overall responsibility for the establishment and oversight of the Group's
risk management framework. This note presents information about the risks associated with its financial
instruments, the Company's objectives, policies and processes for measuring and managing risk, and the
Company's management of capital.

Credit Risk

The Company is exposed to credit risk as a result of the risk of counterparties non performance or default on
their obligations. The Company's exposure to credit risk primarily relates to investments, accounts receivable
and cash and cash equivalents. The Company monitors and limits its exposure to credit risk on a continuous
basis. The Company's credit risk associated with accounts receivable is primarily related to party not able to
settle their obligation as agreed. To manage this the Company periodically reviews the financial reliability of its
customers, taking into account the financial condition, current economic trends and analysis of historical bad
debts and ageing of accounts receivables.

Trade receivables

Trade receivables represent the most significant exposure to credit risk and are stated after an allowance for
impairment and expected credit loss.

Loans and deposits

Financial assets in the form of loans and advances are written off when there is no reasonable expectations
of recovery. Where recoveries are made, these are recognize as income in the statement of profit and loss.
The Company measures the expected credit loss of dues based on historical trend, industry practices and
the business environment in which the entity operates. Loss rates are based on actual credit loss experience
and past trends. Based on historical data and company's assessment, loss on collection of dues has been
considered.

Cash and cash equivalents

Cash and cash equivalents comprise cash in hand and deposits which are readily convertible to cash. These are
subject to insignificant risk of change in value or credit risk.

The carrying amount of financial assets represents the maximum credit exposure. The maximum exposure to
credit risk at the reporting date was:

The Company is exposed to liquidity risk related to its ability to fund its obligations as they become due. The Company
monitors and manages its liquidity risk to ensure access to sufficient funds to meet operational and financial
requirements. The Company has access to credit facilities and debt capital markets and monitors cash balances daily.
In relation to the Company's liquidity risk, the Company's policy is to ensure, as far as possible, that it will always have
sufficient liquidity to meet its liabilities when due, under both normal and stressed conditions as they fall due while
minimizing finance costs, without incurring unacceptable losses or risking damage to the Company's reputation.

Interest rate risk is the risk that an upward movement in the interest rate would adversely effect the borrowing cost
of the company. The Company is exposed to long term and short-term borrowings, Commercial Paper Program. The
Company manages interest rate risk by monitoring its mix of fixed and floating rate instruments, and taking action as
necessary to maintain an appropriate balance.

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

The Company operates internationally and portion of the business is transacted in several currencies and consequently
the Company is exposed to foreign exchange risk through its sales in overseas and purchases from overseas suppliers
in various foreign currencies.

Foreign currency exchange rate exposure is partly balanced by purchasing of goods in the respective currencies.

The Company evaluates exchange rate exposure arising from foreign currency transactions and the Company follows
established risk management policies, including the use of derivatives like foreign exchange forward contracts to
hedge exposure to foreign currency risk.

Price Risk

The entity is exposed to equity price risk, which arised out from FVTPL quoted equity shares & mutual funds and
FVTOCI unquoted equity shares. The management monitors the proportion of equity securities in its investment
portfolio based on market indices. Material investments within the portfolio are managed on an individual basis and
all buy and sell decisions are approved by the management. The primary goal of the entity's investment strategy is to
maximize investments returns.

Sensitivity Analysis for Price Risk

Equity Investments carried at FVTOCI are not listed on the stock exchange. For equity investments and mutual funds
classified as at FVTPL, the impact of a 2 % in the index at the reporting date on profit & loss would have been an
increase of ' 18.23 Crore (2024-25: ' 4.79 Crore ); an equal change in the opposite direction would have decreased
profit and loss. For equity investments classified as at FVTOCI, the impact of a 2 % in the index at the reporting
date on profit & loss would have been an increase of ' 0.029 Crore (2024-25: ' 0.029 Crore); an equal change in the
opposite direction would have decreased profit and loss.

42 CAPITAL MANAGEMENT

The Company's main objectives when managing capital are to:

- ensure sufficient liquidity is available (either through cash and cash equivalents, investments or committed
Credit facilities) to meet the needs of the business;

- ensure compliance with covenants related to its credit facilities and secured debentures; and

• minimize finance costs while taking into consideration current and future industry, market and economic
risks and conditions.

The Board of Directors has the primary responsibility to maintain a strong capital base and reduce the cost
of capital through prudent management of deployed funds and leveraging opportunities in domestic and
international financial markets so as to maintain investor, creditor and market confidence and to sustain
future development of the business.

For the purpose of Company's capital management, capital includes issued capital and all other equity reserves.
The Company manages its capital structure in light of changes in the economic and regulatory environment
and the requirements of the financial covenants.

The Company manages its capital on the basis of net debt to equity ratio which is net debt (total borrowings net
of cash and cash equivalents) divided by total equity.

B. Measurement of fair values

The table shown above analyses financial instruments carried at fair value, by valuation method. The different

levels have been defined below:

- Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities

- Level 2: inputs other than quoted prices included within Level 1 that are observable for the asset or liability,
either directly (i.e., as prices) or indirectly (i.e., derived from prices)

- Level 3: inputs for the asset or liability that are not based on observable market data (unobservable inputs)

C. Valuation techniques

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

1) Fair value of the cash and short term deposits, current loans and advances and other current financial
liabilities, short term borrowing from banks and other financial institutions and other similar items
approximate their carrying value largely due to short term maturities of these instruments.

2) Long-term receivables/borrowings are evaluated by the Company based on parameters such as interest
rates, specific country risk factors, individual credit worthiness of the customer and the risk characteristics
of the financed project. Based on this evaluation, allowances are taken into account for the expected
credit losses of these receivables.

3) The fair values of the quoted instruments and mutual funds are based on price quotations at the reporting
date. The fair value of unquoted instruments, loans from banks and other financial liabilities, obligations
under finance leases, as well as other non-current financial liabilities is estimated by discounting future cash
flows using rates currently available for debt of similar terms, credit risk and remaining maturities.

4) The fair values of the unquoted equity shares designated at FVTOCI has been estimated by using the most
recent purchase price of such shares (level 2).

45 The Company has not undertaken any transactions with companies struck off under section 248 of the
Companies Act 2013 or section 560 of Companies Act 1956 during the current year or in previous year.

46 All the transactions are recorded in the books of accounts and there was no income that has been surrendered
or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961. Also there was
no previously unrecorded income and related assets which has been recorded in the books of account during
the year.

47 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 rules made thereunder.

48 The Company has not advanced or loaned or invested funds to any other persons or entities, including
foreign entities (Intermediaries) with the understanding, whether recorded in writing or otherwise, that the
Intermediary shall 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 provide any guarantee, security or the
like to or on behalf of the Ultimate Beneficiaries. Further, the Company has not received any fund from any
persons or entities, including foreign entities (Funding Party) with the understanding , whether recorded in
writing or otherwise, that the Company shall 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 provide
any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

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

50 The Company has neither traded nor invested in Crypto Currency or Virtual Currency during the financial year.

51 No scheme of compromise or arrangement has been proposed between the Company & its members or the

Company & its creditors under section 230 of the Companies Act 2013 ("The Act”) and accordingly the disclosure
as to whether the scheme of compromise or arrangement has been approved or not by the competent
authority in terms of provisions of sections 230 to 237 of the Act is not applicable.

52 With effect from November 21, 2025, the Government of India has consolidated multiple existing labour

legislations into a unified framework comprising four Labour Codes collectively referred to as the 'New Labour
Codes'. The Ministry of Labour & Employment notified Central Rules on 8th May 2026 however State Rules are
yet to be notified. The Company has estimated and recorded past service cost based on the best available
information and in consultation with external experts which is not material.