(D) Tax option:

Available deduction under Section 80 -IA and MAT Credit Receivable being more beneficial, the company has not

exercised the option under Section 115BAA of the Income Tax Act.

(E ) Deferred Tax :

MAT credit of ' 215 lakhs (net) for the year (previous year ' 200 lakhs) and ' 215 lakhs as on 31st March 2026

(' 2053 lakhs as on 31st March 2025 ) is recognised and carried forward as deferred tax asset as there exists

reasonable certainty to recover the same in future.

(F ) Reassessment of tax provision:

(i) The company in respect of its profits from Cogen business is eligible for tax holiday under section 80-IA of the Income Tax Act 1961 for a period of 10 years. The company has opted to avail same from FY 2017-18. In view of this tax relief, the company has been paying only Minimum Alternate Tax (MAT) since FY 2017-18. MAT so paid is available for set off against tax payable under normal computation within a period of 15 succeeding years. Accordingly, MAT credit entitlement aggregating ' 2053 lakhs was carried forward as of 31st March 2025.

(ii) In computing eligible profits for purpose of Section 80-IA, the company has adopted the price for captive consumption of bagasse at rates fixed by the Regulator - namely Tamil Nadu Electricity Regulatory Commission (TNERC) from time to time based on market prices for determining the tariff rate for sale of power. While this was accepted in earlier years, the Tax Department for the assessment year 2023-24, substituted the market price data for bagasse collected by them and proposed to nullify the deduction under Section 80-IA . The company has contested the proposal and related proceedings before appropriate legal forum. Similar proceedings have been initiated for Assessment year 2021-22.

(iii) The company remains confident of the correctness of its adopting the regulatory price for bagasse. The issue may however involve long drawn legal battle and stakes involved are material. It has therefore been considered prudent to reassess tax liability for the past periods, basis the transfer price norm of Tax Department and make suitable and adequate provision for the exposure based on management’s best estimates.

(iv) Pursuant to the above, the company during the year has reversed ' 2053 lakhs of ‘MAT Credit receivable’ as of 31st March 2025. Further, it has made additional tax provision of ' 634 lakhs relating to earlier years and ' 483 lakhs for the current year.

30. Revenue recognition for tariff revision:

(i) The company supplies electricity to Tamil Nadu Power Distribution Corporation Limited (TNPDCL) under a long term agreement for 20 years. The tariff for this is determined on ‘cost plus’ basis by the Regulator, namely, Tamil Nadu Electricity Regulatory Commission (TNERC) at periodic intervals in terms of the Electricity Act 2003 and Regulations made thereunder. Accordingly, revenue recognition by the company in its financial statements since the commissioning of the Cogeneration power plant from August 2012 to March 2025 was at rates prescribed in the tariff orders issued by TNERC from time to time.

(ii) The company had challenged certain key assumptions of TNERC on cost components in tariff determination before the appellate authority, namely, Appellate Tribunal for Electricity (APTEL). It has during the year received the judgement dated 03-09-2025 from APTEL. This effectively grants an enforceable right for the Company to recover additional tariff and interest. While APTEL in its detailed order has in clear and unequivocal terms settled the principles and methodology for cost computation under different heads, it remanded the case to TNERC for passing consequential orders and determining revised tariff, following due process.

(iii) Pursuant to above, TNERC has initiated proceedings for revising tariff. The Company has been legally advised that the APTEL judgement, in the absence of appeal filed against same within permissible time limit, has attained finality and the role of TNERC is confined only to passing consequential order involving computational exercise.

(iv) The company has further been legally advised that its right to additional tariff and interest has arisen from the APTEL judgement which is an enforceable right. The company following accrual based accounting under Companies Act 2013 is hence obligated to recognize the effect of APTEL judgement in these financial statements based on reasonable and reliable estimate in accordance with Ind AS 115 - Revenue from contracts with customers and other applicable Ind AS.

(v) Having regard to the above, the company has estimated the most likely amount expected to arise from the clear contours of APTEL order to the best of its judgement. In doing so, the company has duly considered constraining estimates of variable consideration. Accordingly, revenue has been recognized only to the extent it is highly probable that a significant reversal in the amount of cumulative revenue recognized will not occur when TNERC passes its order giving effect to the APTEL judgement.

31. Other Electricity cases:

(i) Revenue recognition respect of annual power generation over 60% PLF is based on the order of Tamil Nadu Electricity Regulatory Commission (TNERC) in Dec ’23. Appeal filed by Tamil Nadu Power Distribution Corporation Limited (TNPDCL) before the Appellate Tribunal for Electricity (APTEL) is pending.

(ii) APTEL in its judgement dated 16.06.2025 has held that Parallel Operation Charges are not leviable in our case. Consequently, the company has derecognized the liability of ' 491 lakhs pertaining to earlier years and no further liability is recognized for the year. TNPDCL has challenged the APTEL judgement in Supreme Court.

(iii) In the absence of present obligation and considering outflow of resources is not probable, no provision in respect of above two items is considered necessary. Contingent liability in respect of same is disclosed (Note 32).

1. The fair value of investment in quoted equity shares is measured at the closing price in the Stock Exchange on the reporting date.

2. In case of trade receivables, cash and cash equivalents, trade payables and other financial assets and liabilities it is assessed that the fair values approximate their carrying amounts largely due to the short-term maturities of these instruments.

3. The fair values of the financial assets and financial liabilities included above have been determined in accordance with generally accepted pricing models based on a discounted cash flow analysis, with the most significant inputs being the discount rate that reflects the credit risk of counter-parties.

(ii) Financial Instrument measured at Amortised Cost

The carrying amount of financial assets and financial liabilities measured at amortised cost in the financial statements are a reasonable approximation of their fair values since the Company does not anticipate that the carrying amounts would be significantly different from the values that would eventually be received or settled.

34C - Financial Risk Management - Objectives and Policies:

The Company’s financial liabilities comprise mainly trade payables and other payables. The Company’s financial assets comprise mainly of investments, cash and cash equivalents, other balances with banks, security deposits, trade receivables and other receivables.

The Company is exposed to Market risk, Credit risk and Liquidity risk. The Board of Directors (‘Board’) oversee the management of these financial risks in its regular meetings. Risk Management guidelines as discussed in the Audit Committee and approved by the Board, states the Company’s approach to address uncertainties in its endeavor to achieve its stated and implicit objectives. It prescribes the roles and responsibilities of the Company’s management, the structure for managing risks and the framework for risk management. The framework seeks to identify, assess and mitigate financial risks in order to minimize potential adverse effects on the Company’s financial performance.

The following disclosures summarize the Company’s exposure to financial risks and information regarding use of derivatives employed to manage exposures to such risks.

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 interest rate risk, currency risk and other price risk. Financial instruments affected by market risk includes borrowings, investments, trade payables, trade receivables, loans and derivative financial instruments.

(i) Interest Rate Risk

Interest rate risk is not material.

(ii) Foreign Currency Risk

Foreign currency exposure at end of the reporting period - Nil

(iii) Equity Price Risk

Equity price Risk is related to the change in market reference price of the investments in equity securities.

All the investments are held for strategic purposes and not held for trading.

b. Credit Risk

Credit Risk is the risk of financial loss arising from counter party default on its contractual obligations resulting in financial loss to the company. Credit risk encompasses both the direct risk of default and the risk of deterioration of credit worthiness as well as concentration risks.

Financial instruments that are subject to concentrations of credit risk principally consist of trade receivables, loans and advances and derivative financial instruments. None of the financial instruments of the Company result material concentrations of credit risks.

Exposure to Credit Risk - The carrying amount of financial assets represents the maximum credit exposure. The maximum exposure to Credit risk was ' 12285 lakhs as at 31st March 2026, and ' 6115 lakhs as at 31st March 2025 being the total of the carrying amount of balances with banks, short term deposits with banks, trade receivables and other financial assets excluding equity investments.

The credit risk arising for the exposure of investing in other balances with banks and bank balances is limited and there is no collateral held against these because the counter parties are scheduled banks under RBI oversight.

c. Liquidity Risk

Liquidity risk refers to the risk that the Company cannot meet its financial obligations. The objective of liquidity risk management is to maintain sufficient liquidity and ensure that funds are available for use as per requirements.

The Company invests its surplus funds in bank fixed deposit, which carry no / low mark to market risks.

d. Working Capital Borrowing

The company has obtained sanction of fund-based limit of '15 crores from consortium banks towards working capital loan which is secured by first charge of inventories, book debts and immovables. However, utilization against the above facilities as at 31.03.2026 is Nil (PY Nil).

38. Employee Benefits

(i) Defined Contribution Plans

The Company makes Provident Fund and Superannuation Fund contributions which are defined contribution plans, for qualifying employees. Under the Schemes, the Company is required to contribute a specified percentage of eligible pay to fund the benefits.

The Company has recognised ' 143 Lakhs (previous year ' 133 Lakhs) for Provident Fund contributions and ' 49 Lakhs (previous year ' 42 Lakhs) for Superannuation Fund contributions in the Statement of Profit and Loss. The contributions payable to these plans by the Company are at rates specified in the rules of the schemes.

(ii) Defined Benefit Plans (a) Gratuity

In respect of Gratuity plan, the most recent actuarial valuation of the plan assets and the present value of the defined benefit obligation were carried out as of March 31,2026. The present value of the defined benefit obligation and the related current service cost and past service cost, were measured using the projected unit cost method.

The following table sets forth the status of the Gratuity Plan of the Company and the amount recognised in the Balance Sheet and Statement of Profit and Loss. The Company provides the gratuity benefit through annual contributions to the funds managed by the ICICI Prudential Life Insurance Company Ltd.

The Company pays contribution under the Group Gratuity Scheme to ICICI Prudential Life Insurance Company Ltd. that is invested by the insurer in the plan assets in Government Securities, Debt Funds, Equity shares, Mutual Funds and Money Market Instruments. The expected rate of return on plan assets based on expectation of the average long term rate of return expected on investments of the fund during the estimated term of the obligation. Significant actuarial assumptions for the determination of the defined benefit obligation are as discussed above.

Sensitivity analysis presented above may not be representative of the actual change in the defined benefit obligation as it is unlikely that the change in assumptions would occur in isolation of one another as some of the assumptions may be correlated.

Furthermore, in presenting the above sensitivity analysis, the present value of the defined benefit obligation has been calculated using the projected unit credit method at the end of the reporting period, which is the same as that applied in calculating the defined benefit obligation liability recognised in the balance sheet.

There was no change in the methods of assumptions used in preparing the sensitivity analysis from prior years.

Since the measurement of other long term employee benefits is not usually subject to the same degree of uncertainty as the measurement of post-employment benefits - gratuity, simplified method of accounting is adopted i.e., remeasurements are not recognized in Other comprehensive income but directly in the Statement of Profit and Loss (para 154 of Ind AS- 19).

The short-term leave obligation covers the company’s liability for casual leave. The entire provision of ' 3 lakhs (PY ' 3 lakhs) is presented as current, since the company does not have an unconditional right to defer settlement for the short-term obligations.

(c ) New Labour Codes

The company has recognized and given effect to the four Labour Codes notified by the Government of India in November 2025. Additional financial impact for the year is not material.

42. Approval of Financial Statements

The financial statements are in compliance with all the requirements of applicable Ind AS and have been approved for issue by the Board of Directors on 11th May 2026.