24. Provisions

Accounting Policy

(a) Employee benefits - refer note 30

(b) Other Provisions

The amount recognised as a provision is the best estimate of the consideration required to settle the present
obligation at the balance sheet date, taking into account the risks and uncertainties surrounding the obligation. The
amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at
the balance sheet date, taking into account the risks and uncertainties surrounding the obligation. Where a provision
is measured using the estimated cash flows to settle the present obligation, its carrying amount is the present value
of those cash flows. The discount rate used is a pre-tax rate that reflects current market assessments of the time
value of money in that jurisdiction and the risks specific to the liability.

A. Defined benefits - Gratuity

The Company's gratuity benefit scheme for its employees in India is a defined benefit plan (funded).

The Company provides for gratuity for employees in India as per the Payment of Gratuity Act, 1972. Employees
who are in continuous service for a period of 5 years are eligible for gratuity. The amount of gratuity payable on
retirement/ termination is the employees last drawn basic salary per month computed proportionately for 15 days
salary multiplied for the number of years of service. The gratuity plan is a funded plan and the Company makes
contributions to recognised funds in India.

Inherent risk

The plan is defined benefit in nature which is sponsored by the Company and hence it underwrites all the risk
pertaining to the plan. In particular, this exposes the Company, to actuarial risk such as adverse salary growth,
change in demographic experience, inadequate return on underlying plan assets. This may result in an increase in
cost of providing these benefits to employees in future. Since the benefits are lump sum in nature, the plan is not
subject to longevity risk. These defined benefit plans expose the Company to actuarial risks, such as interest rate risk,
salary inflation risk, demographic risk and market (investment) risk.

The following tables analyse present value of defined benefit obligations, expense recognised in Standalone
Statement of Profit and Loss, actuarial assumptions and other information.

26. Revenue from operations
Accounting Policy

The Company's revenue primarily from sale of Carbon materials and chemicals, and power (generation and distribution).
Revenue excludes any taxes and duties collected on behalf of the Government.

Revenue from sale of products is recognised at the point in time when control of the goods is transferred to the customer,
generally on delivery of the products.

Revenue from sale of services is recognised over the period of time when the services are rendered to the customer.

At contract inception, the Company assess the goods promised in a contract with a customer and identifies as a performance
obligation of each promise to transfer to the customer. Revenue from contracts with customers is recognized when
control of goods is transferred to customers and the Company retains neither continuing managerial involvement to the
degree usually associated with ownership nor effective control over the goods sold. Revenue from the sale of goods is
measured at the fair value of the consideration received or receivables, net of returns and allowances and trade discounts.

The Company's derives its power revenue from the production and sale of electricity based on long-term Power Purchase
Agreements. Revenue is recognised upon delivery of electricity produced to the electricity grid based on the agreed
tariff rate.

30. Employee benefits expense
Accounting Policy

Retirement benefit costs and termination benefits

A defined contribution plan is a post-employment benefit plan under which an entity pays fixed contributions into
a separate entity and will have no legal or constructive obligation to pay further amounts. Payments to defined
contribution retirement benefit plans are recognised as an expense when employees have rendered service entitling
them to the contributions.

For defined benefit retirement plans, the cost of providing benefits is determined using the projected unit credit method,
with actuarial valuations being carried out at the end of each annual reporting period. The present value of the defined
benefit obligation is determined by discounting the estimated future cash outflows using market yields of government
bonds having terms approximating to the terms of related obligation. The gratuity fund is being managed by Life
Insurance Corporation of India.

30. Employee benefits expense (Contd.)

Remeasurement, comprising actuarial gains and losses, the effect of the changes to the asset ceiling (if applicable) and
the return on plan assets (excluding interest), is reflected in the balance sheet with a charge or credit recognised in other
comprehensive income in the period in which they occur. Remeasurement recognised in other comprehensive income is
reflected immediately in retained earnings and will not be reclassified to the statement of profit and loss. Past service cost
is recognised in the standalone statement of profit and loss in the period of a plan amendment. Net interest is calculated
by applying the discount rate at the beginning of the period to the net defined benefit liability or asset.

The retirement benefit obligation recognised in the balance sheet represents the actual deficit or surplus in the Company's
defined benefit plans. Any surplus resulting from this calculation is limited to the present value of any economic benefits
available in the form of refunds from the plans or reductions in future contributions to the plans.

The Company has a policy on compensated absences which are both accumulating and non-accumulating in nature. The
expected cost of accumulating compensated absences is determined by actuarial valuation performed by an independent
actuary at each Balance Sheet date using projected unit credit method on the additional amount expected to be paid /
availed as a result of the unused entitlement that has accumulated at the Balance Sheet date. Actuarial gains and losses
arising from experience adjustments and changes in actuarial assumptions are charged or credited to the standalone
statement of profit and loss in the period in which they arise. Expense on non-accumulating compensated absences is
recognized in the period in which they arise.

Compensated absences which are not expected to occur within twelve months after the end of the period in which the
employee renders the related service are recognised based on actuarial valuation at the present value of the obligation
as on the reporting date.

Short-term and other long-term employee benefits

A liability is recognised for benefits accruing to employees in respect of wages and salaries, Bonus etc. in the period the
related service is rendered at the undiscounted amount of the benefits expected to be paid in exchange for that service.

(a) Salaries, wages and bonus includes J1,082.53 lakhs (31 March 2025: H819.58 lakhs) relating to outsource
manpower cost.

(b) On 21 November 2025, the Government of India notified the four Labour Codes - the Code on Wages, 2019, the
Industrial Relations Code, 2020, the Code on Social Security, 2020, and the Occupational Safety, Health and Working
Conditions Code, 2020 - consolidating 29 existing labour laws. The Ministry of Labour & Employment published draft
Central Rules and FAQs to enable assessment of the financial impact due to changes in regulations.

The Company has re-assessed its liability for Gratuity and Leave Encashment using this revised wage base.The
resulting increase in the Present Value of Defined Benefit Obligation (PVDBO) has been recognized as a past service
cost. In accordance with the ICAI FAQ on Labour codes, the total impact of J224.00 lakhs has been debited to the
standalone statement of Profit and Loss for the period ended 31 March 2026. A corresponding Deferred Tax Asset
has been recognized under Ind AS 12, as these costs are tax-deductible only upon actual payment.

The Company has evaluated the impact of the OSHWC Code, 2020 regarding contract labour. Based on this
assessment and existing service contracts, there is no financial impact on the current reporting period. "The
contractual obligation for statutory contributions and wage payments rests with the respective licensed contractors.
The Company has monitored compliance and concluded that no secondary liability has devolved upon it during the
reporting period." As the Company does not engage contract labour for "core activities," no additional direct liability
or permanent employment obligations have been triggered under the new framework.

30. Employee benefits expense (Contd.)

(c) The Company makes contributions, determined as a specified percentage of employee salaries, in respect of
qualifying employees towards Provident and Pension Fund and Employee State Insurance ('ESI') which are defined
contribution plans. The Company has no obligations other than to make the specified contributions. The contributions
are recognised in the Standalone Statement of Profit and Loss as they accrue.

The expense for defined contribution plans amounts to J462.54 lakhs (31 March 2025: H405.59 lakhs). Out of these,
J454.27 lakhs (31 March 2025: H394.83 lakhs) pertains to provident fund plan and J8.27 lakhs (31 March 2025:
H10.76 lakhs) pertains to ESI.

31. Finance costs
Accounting Policy

Borrowing costs are interest and other costs (including exchange differences relating to foreign currency borrowings to
the extent that they are regarded as an adjustment to interest costs) incurred in connection with the borrowing of funds.
Borrowing costs directly attributable to acquisition or construction of an asset which necessarily take a substantial period
of time to get ready for their intended use are capitalised as part of the cost of that asset. Other borrowing costs are
recognised as an expense in the period in which they are incurred.

Where there is an unrealised exchange loss which is treated as an adjustment to interest and subsequently there is a
realised or unrealised gain in respect of the settlement or translation of the same borrowing, the gain to the extent of the
loss previously recognised as an adjustment is recognised as an adjustment to interest.

Nature of major CSR activities undertaken :

(a) Promoting Education

(b) Eradicating hunger, poverty and malnutrition, distribution of food, drinking water and cloth.

(c) Health Care

(d) Rural Development

* In compliance with the provisions laid under Section 135 of the Companies Act, 2013 read with Companies (Corporate Social
Responsibility Policy) Rules, 2014 and Companies (Corporate Social Responsibility Policy) Amendment Rules, 2021,there was no
amount unspent for other than ongoing projects for the year ended 31 March 2026. Amount available for set off in succeeding financial

years J Nil (31 March 2025: H83.00 lakhs).

** The unspent CSR amount related to ongoing projects of J247.11 lakhs for the year 31 March 2026 was deposited to CSR bank account

on 21 April 2026.

33. Income tax
Accounting Policy

Income tax expense represents the sum of the tax currently payable and deferred tax.

Current tax

The tax currently payable is based on taxable profit for the year. The current income tax charge is calculated on the basis
of the tax laws enacted or substantively enacted at the balance sheet date. Taxable profit differs from 'profit before tax'
as reported in the standalone statement of profit and loss because of items of income or expense that are taxable or
deductible in other years and items that are never taxable or deductible. Management periodically evaluates positions
taken in tax returns with respect to situations in which applicable tax regulation is subject to interpretation. It establishes
provisions, where appropriate, on the basis of amounts expected to be paid to the tax authorities using a weighted
average probability.

Deferred tax

Deferred tax liabilities are recognised for all taxable temporary differences. Deferred tax assets are recognised for all
deductible temporary differences to the extent that it is probable that taxable profits will be available against which those
deductible temporary differences can be utilised. Such assets and liabilities are not recognised if the temporary difference
arises from initial recognition (other than in a business combination) of other assets and liabilities in a transaction that
affects neither the taxable profit nor the accounting profit.

Deferred tax on the deductible temporary difference and taxable temporary differences in respect of carrying value
of right of use assets and lease liability and their respective tax bases are recognised separately. The measurement of
deferred tax liabilities and assets reflects the tax consequences that would follow from the manner in which the Company
expects, at the reporting date, to recover or settle the carrying amount of its assets and liabilities.

The carrying amount of deferred tax assets is reviewed at each balance sheet date and reduced to the extent that it is no
longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered.

Current and deferred tax for the period

Current and deferred tax are recognised in the standalone statement of profit and loss, except when they relate to items
that are recognised in other comprehensive income or directly in equity, in which case, the current and deferred tax are
also recognised in other comprehensive income or directly in equity, respectively.

a) Deferred tax assets is not recognised on certain items [such as investment impairment, loss allowances on
advances and capital loss] due to lack of reasonable certainty.

b) Section 115 BAA of the Income-tax Act, 1961, introduced by the Taxation Laws (Amendment) Act, 2019 gives
a one-time irreversible option for payment of income-tax at reduced rate with effect from financial year
commencing 1 April 2019 subject to certain conditions.

The Company contined with existing tax regime till the financial year 2024-25 to utilise the accumulated
Minimum Alternative Tax ('MAT'). Accordingly the Company has revered net deferred tax liability
of H301.10 lakhs and unutlised balance of MAT of H356.67 lakhs has been charged to deferred tax
expense in the standalone statement of profit and loss during the previous year ended 31 March 2025.
Effective 01 April 2025 the Company has migrated to the Lower Tax Regime as prescribed under section 115BAA
of the Income Tax Act 1961.

34. Earnings per equity share (EPS)

Accounting Policy

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

35. Contingent liability and commitments

(to the extent not provided for)

Accounting Policy

Contingent liabilities are disclosed when there is a possible obligation arising from past events, 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 that arises from past events where it is either not probable that an outflow
of resources will be required to settle the obligation or a reliable estimate of the amount cannot be made. Contingent
assets are neither recognised nor disclosed in the standalone financial statements.

Note:

(i) Cash outflows for the above are determinable only on receipt of final judgments pending at various forums/
authorities. The Company has reviewed all its pending litigations and proceedings and has adequately provided for
where provisions are required and disclosed as contingent liabilities where applicable, in its Standalone financial
statements. The Company does not expect the outcome of these proceedings to have a materially adverse effect on
its financial position.

(ii) Others represents dispute with a lessor in respect of arrear dues. The Company based on independent legal opinion,
does not foresee any significant financial liability on this account.

(b) The Company imported capital goods under the EPCG scheme at zero customs duty. The total duty saved against
these imports amounts to J1,709.44 lakhs (31 March 2025: H249.27 lakhs). As of 31 March 2026, the Company has
an outstanding export obligation of J1041.92 lakhs (31 March 2025: Nil). The Company is confident of meeting
these obligations within the stipulated time frame of 6 years from the respective dates of authorisation.

(c) The Company has issued performance guarantees to a supplier on behalf of one of its subsidiary, for the due and
punctual performance of contractual obligations. Management considers the likelihood of a default by the subsidiary
to be remote. Consequently, no provision has been recognised in the financial statements.

(e) Leases (Ind AS 116)

Accounting Policy

The Company assesses whether a contract is or contains a lease, at inception of the contract. The Company
recognises a right-of-use asset and a corresponding lease liability with respect to all lease arrangements in which it
is the lessee, except for short-term leases (defined as leases with a lease term of 12 months or less) and leases of low
value assets. For these leases, the Company recognises the lease payments as an operating expense on a straight¬
line basis over the lease term, unless another systematic basis is more representative of the time pattern in which
economic benefits from the leased assets are consumed. Contingent and variable rentals are recognized as expense
in the periods in which they are incurred.

The lease payments that are not paid at the commencement date are discounted using the interest rate implicit
in the lease. If that rate cannot be readily determined, which is generally the case for leases in the Company, the
lessee's incremental borrowing rate is used, being the rate that the individual lessee would have to pay to borrow the
funds necessary to obtain an asset of similar value to the right-of-use asset in a similar economic environment with
similar terms, security and conditions.

To determine the incremental borrowing rate, the company uses a build-up approach that starts with a risk-free
interest rate adjusted for credit risk and makes adjustments specific to the lease, e.g. term, security etc.

37. Research and development expenses

Research and development expenses aggregating to J6,255.30 lakhs (31 March 2025: H3,587.78 lakhs) in the nature of
revenue expenditure and addition of J182.00 lakhs (31 March 2025: H342.11 lakhs) in the nature of capital expenditure
during the year have been included under the relevant account heads. In addition to the above expenses, research and
develpment expenses in the nature of capital expenditure on identified project of J6,368.82 lakhs (31 March 2025:
H183.13 lakhs) have been incurred during the year and is included in capital work in progress as on 31 March 2026.

38. Share based payments

A. Description of share-based payment arrangement
Himadri Employees Stock Option Plan 2016 (equity-settled)

The Company at its 28^th Annual General Meeting held on 24 September 2016, has approved "Himadri Employees Stock
Option Plan 2016" (ESOP 2016 or Plan) for granting 40,00,000 Employees Stock Options to certain "eligible employees".
The Plan is administered by the Nomination and Remuneration Committee of the Board ("the Committee") in compliance
with the provisions of SEBI (Share Based Employee Benefits and Sweat Equity) Regulations, 2021 and other applicable
provisions of the Companies Act. 2013 for the time being in force. The option granted to certain eligible employees
including certain key management personnel on vesting condition of time basis, Company performance and individual
performance as specified in the grant letter issued to each employee.

Expected volatility has been based on an evaluation of the historical volatility of the Company's share price, particularly
over the historical period commensurate with the expected term. The expected term of the instruments has been based
on historical experience and general option holder behaviour.

Expected life of the options has been calculated on the assumption that options would exercise within one year from the
date of vesting.

The fair value of option on the date of grant have been done by an independent valuer appointed by the management
using the Black Scholes Merton Model.

* Expected volatility on the Company's stock price on National Stock Exchange of India Ltd based on the data commensurate with the

expected life of the options up to the date of grant.

** Expected dividend on underlying shares is taken as 10% on market price as on the date of grant.

40. Financial Instrument
Accounting Policy

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between
market participants at the measurement date, regardless of whether that price is directly observable or estimated using
another valuation technique.

The Company has an established control framework with respect to the measurement of fair values. In estimating the
fair value of an asset or a liability, the Company takes into account the characteristics of the asset or liability if market
participants would take those characteristics into account when pricing the asset or liability at the measurement date.
The management has overall responsibility for overseeing all significant fair value measurements and it regularly reviews
significant unobservable inputs and valuation adjustments. If third party information, such as broker quotes or pricing
services, is used to measure fair values, then the valuation team assesses the evidence obtained from the third parties
to support the conclusion that these valuations meet the requirements of Ind AS, including the level in the fair value
hierarchy in which the valuations should be classified. Fair value for measurement and/or disclosure purposes in the
financial statement is determined on such a basis, except for share-based payment transactions, leasing transactions and
measurements that have some similarities to fair value but are not fair value, such as net realisable value in Inventories
or value in use in Impairment of Assets.

The estimated fair value of the Company's financial instruments is based on market prices and valuation techniques.
Valuations are made with the objective to include relevant factors that market participants would consider in setting a
price, and to apply accepted economic and financial methodologies for the pricing of financial instruments. References
for less active markets are carefully reviewed to establish relevant and comparable data.

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 forced or liquidation sale.

B. Fair value hierarchy

The Company has established the following fair value hierarchy that categories the value into 3 levels. The inputs to
valuation techniques used to measure fair value of financial instruments are:

Level 1: The hierarchy uses quoted (adjusted) prices in active markets for identical assets or liabilities. The fair value
of all bonds which are traded in the stock exchanges is valued using the closing price or dealer quotations as at the
reporting date.

Level 2: The fair value of financial instruments that are not traded in an active market (for example traded bonds, over
the counter derivatives) is determined using valuation techniques which maximise the use of observable market data
and rely as little as possible on company specific estimates. Unquoted mutual fund units are valued using the closing
net asset value. If all significant inputs required to fair value an instrument are observable, the instrument is included in
level 2.

Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is included in
level 3.

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

(a) The fair value of the quoted investments are based on market price at the respective reporting date.

(b) The fair value of the unquoted investments included in level 2 has been determined using valuation techniques with
market observable inputs. The model incorporate various inputs including prevailing market value of investments in
listed company.

(c) The fair value of the quoted /unquoted investments included in level 3 are based on the cost approach to arrive at
their fair value. The cost of unquoted investments approximate the fair value because there is a range of possible fair
value measurements and the cost represents estimate of fair value within that range.

(d) The fair value of forward foreign exchange contracts is calculated as the present value determined using forward
exchange rates and interest rate curve of the respective currencies.

(e) The fair value of currency swap is calculated as the present value determined using forward exchange rates, currency
basis spreads between the respective currencies and interest rate curves.

(f) The fair value of the remaining financial instruments is determined using discounted cash flow analysis. The discount
rate used is based on the Company's estimates.

(g) The fair value of the commodity hedge is determined using the commodity rates existing as at the end of the
reporting period.

The significant observable inputs used in the fair value measurement of the fair value hierarchy of level 3 inputs like
discounted cash flows, market multiple method, option pricing model etc.

There were no transfer of financial assets or liabilities measured at fair value between level 1 and level 2, or transfer into
or out of level 3 during the year ended 31 March 2026 and 31 March 2025.

Calculation of fair values

The fair values of the financial assets and liabilities are defined as the price that would be received on sale of an asset or

paid to transfer a liability in an orderly transaction between market participants at the measurement date. Methods and

assumptions used to estimate the fair values are consistent with those used for the year ended 31 March 2025.

Financial assets and liabilities measured at fair value as at Standalone Balance Sheet date

1. The fair values of investments in mutual fund units is based on the net asset value ('NAV') as stated by the issuers of
these mutual fund units in the published statements as at Balance Sheet date. NAV represents the price at which the
issuer will issue further units of mutual fund and the price at which issuers will redeem such units from the investors.

2. The fair values of the derivative financial instruments has been determined using valuation techniques with market
observable inputs. The models incorporate various inputs including the credit quality of counter-parties and foreign
exchange forward rates.

Other financial assets and liabilities

- Cash and Cash equivalents, trade receivables, investments in term deposits, other financial assets (except derivative
financial instruments), trade payables, and other financial liabilities (except derivative financial instruments) have
fair values that approximate to their carrying amounts.

- Loans have fair values that approximate to their carrying amounts as it is based on the net present value
of the anticipated future cash flows using rates currently available for debt on similar terms, credit risk and
remaining maturities.

Significant unobservable inputs used in level 3 fair values

Certain investments are valued using level 3 techniques. A change in one or more of the inputs to reasonably possible

alternative assumptions would not change the value significantly.

41. Financial risk management

The Company has exposure to the following risks arising from financial instruments:

(i) Credit risk

(ii) Liquidity risk

(iii) Market risk

Risk management framework

The Company's principal financial liabilities, other than derivatives, comprises of borrowings, trade and other payables.
The main purpose of these financial liabilities is to finance the Company operations. The Company's principal financial
assets, other than derivatives include trade and other receivables, investments and cash and cash equivalents that derive
directly from its operations.

The Company's activities expose it to a variety of financial risks, including market risk, credit risk and liquidity risk.
The Company's primary risk management focus is to minimise potential adverse effects of market risk on its financial
performance. The Company uses derivative financial instruments to mitigate foreign exchange related risk exposures.
The Company's exposure to credit risk is influenced mainly by the individual characteristic of each customer and the
concentration of risk from the top few customers. The Company's risk management assessment and policies and
processes are established to identify and analyse the risks faced by the Company, to set appropriate risk limits and
controls, and to monitor such risks and compliance with the same. Risk assessment and management policies and
processes are reviewed regularly to reflect changes in market conditions and the Company's activities.

This note presents information about the Company's exposure to each of the above risks, the Company's objectives,
policies and processes for measuring and managing risk, and the Company's management of capital. The key risks and
mitigating actions are also placed before the audit committee of the Company.

The Company has standard operating procedures and investment policy for deployment of surplus liquidity, which
allows investment in debt securities and restricts the exposure in equity markets.

(i) Credit risk

Credit risk is the risk of financial loss of the Company if a customer or counterparty to a financial instrument fails
to meet its contractual obligations, and arises principally from the Company's receivables from customers and
loans. Credit arises when a customer or counterparty does not meet its obligations under a financial instrument
or customer contract, leading to a financial loss. The Company is exposed to credit risk from its operating activities
(primarily trade receivables) and from its financing/investing activities, including deposits with bank, investments in
debt securities and foreign exchange transactions. The carrying amount of financial assets represent the maximum
credit risk exposure.

Trade receivable

The Company has established a credit policy under which each new customer is analysed individually for
creditworthiness before the Company's standard payment and delivery terms and conditions are offered. All trade
receivables are reviewed and assessed for default on a quarterly basis. Our historical experience of collecting
receivables indicate a low credit risk.

Exposure to credit risks

The Company's exposure to credit risk is influenced mainly by the individual characteristics of each customer.
However the Company also considers the factors that may influence the credit risk of its customer base, including the
default risk associated with the industry and country in which customer operates. The Company limits its exposure
to credit risk from trade receivables by establishing a maximum payment period of three months for customers.

Liquidity risk is defined as the risk that the Company will not be able to settle or meet its obligations on time or at
reasonable price. Prudent liquidity risk management implies maintaining sufficient cash and marketable securities
and the availability of funding through an adequate amount of credit facilities to meet obligations when due. The
Company's finance team is responsible for liquidity, finding as well as settlement management. In addition, processes
and policies related to such risks are overseen by senior management. Management monitors the Company's
liquidity position through rolling forecasts on the basis of expected cash flows.

The Company's approach to managing liquidity is to ensure, as far as possible, that it will have sufficient liquidity to
meet its liabilities when they are due, under both normal and stressed conditions, without incurring unacceptable
losses or risking damage to the Company's reputation.

Market risk is the risk of loss of future earnings, fair value or future cash flows that may result from a change in
the price of a financial instrument. The value of a financial instrument may change as a result of changes in the
interest rates, foreign currency exchange rates, commodity prices, equity prices and other market changes that
effect market risk sensitive instruments. Market risk is attributable to all market risk sensitive financial instruments
including investments and deposits, foreign currency receivables, payables and borrowings.

All such transactions are carried out within the guidelines set by the management. Generally, the Company seeks to
apply hedge accounting to manage volatility in other comprehensive income.

(a) Currency risk

Foreign currency risk is the risk impact related to fair value or future cash flows of an exposure in foreign
currency, which fluctuate due to changes in foreign exchange rates. The Company's exposure to the risk of
changes in foreign exchange rates relates primarily to the foreign currency borrowings, import of raw materials
and spare parts, capital expenditure, exports of finished goods. The currency in which these transactions are
primarily denominated is USD. The Company manages currency exposures within prescribed limits, through
use of forward exchange contracts and cross currency swap. Foreign exchange transactions are covered with
strict limits placed on the amount of uncovered exposure, if any, at any point of time.

The Company evaluates exchange rate exposure arising from foreign currency transactions. The Company
follows established risk management policies and standard operating procedures. It uses derivative instruments
like foreign currency swaps and forwards to hedge exposure to foreign currency risk. When a derivative is
entered into for the purpose of being a hedge, the Company negotiates the terms of those derivatives to match
the terms of the hedged exposure.

(b) Interest rate risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of
changes in market interest rates. The Company's exposure to the risk of changes in market interest rates related
primarily to the Company's current borrowings with floating interest rates. For all non-current borrowings with
floating rates, the risk of variation in the interest rates in mitigated through interest rate swaps. The Company
constantly monitors the credit markets and rebalances its financing strategies to achieve an optimal maturity
profile and financing cost.

Interest rate sensitivity has been calculated assuming the borrowings outstanding at the reporting date have
been outstanding for the entire reporting period and all other variables, in particulars foreign currency exchange
rates, remain constant. Further, the calculation for the unhedged floating rate borrowing have been done on the
notional value of the foreign currency.

(c) Equity price risks

The Company's quoted and unquoted equity instruments are susceptible to market price risk arising from
uncertainties about future values of the investment securities. The reports on the equity portfolio are submitted
to the Company's senior management on a regular basis. The senior management reviews and approves all
equity investment decisions.

Sensitivity analysis

Investment in equity instruments made by the Company are listed on the BSE Ltd (BSE), National Stock
Exchange of India Ltd (NSE) and Calcutta Stock Exchange (CSE) in India. There is no significant investment
outstanding as at 31 March 2026. Hence, sensitivity analysis is not given.

42. Capital management

The Company's policy is to maintain a strong capital base so as to maintain investor, creditor and market confidence
and to sustain future development of the business. The management monitors the return on capital, as well as the level
of dividends to equity shareholders. The Company's objective when managing capital are to: (a) maximise shareholders
value and provide benefits to other stakeholders and (b) maintain an optimal capital structure to reduce the cost of
capital. The Company may take appropriate steps in order to maintain or adjust its capital structure.

42. Capital management (Contd.)

(a) Borrowings include as non-current borrowings, current borrowings and current maturities of non-current borrowings
as described in note 19

(b) Equity includes issued, subscribed and fully paid-up equity share capital and other equity attributable to the equity
holders of the Company as described in note 17 and 18.

(c) Cash and bank balances include cash and cash equivalents, mutual funds and Bank balances other than cash and
cash equivalents (refer note 7, 9 and 10)

43. Segment information

The Company has presented segment information in the Consolidated financial statements which are presented in the
same annual report. Accordingly, in terms of paragraph 4 of Ind AS 108 'Operating segment', no disclosures related to
segments are presented in these Standalone financial statements.

44. Other Additional Regulatory Information (Contd.)

(ii) Details of benami property held

No proceedings have been initiated on or are pending against the Company for holding benami property under
the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and Rules made thereunder.

(iii) Borrowing secured against current assets

The Company has taken working capital borrowings from banks on the basis of security of current assets. The
quarterly statement filed to the banks are in agreement with the books of accounts. The company has not availed
any working capital borrowing from financial institutions during the year.

(iv) Willful defaulter

The Company has not been declared willful defaulter by any bank or financial institution or government or any
government authority.

(v) Relationship with struck off companies

The Company has no transactions with the companies struck off under Companies Act, 2013 or Companies Act,
1956 except the following:

(vi) Compliance with number of layers of companies

The Company has complied with the number of layers prescribed under the Companies Act, 2013.

(vii) Compliance with approved scheme(s) of arrangements

The Company has not entered into any scheme of arrangement which has an accounting impact on current or
previous financial year.

(viii) Utilisation of borrowed funds and share premium

No funds have been advanced or loaned or invested funds (either borrowed funds or share premium or any other
sources or kind of funds) by the Company to or in any other person(s) or entity(ies), including foreign entities
("Intermediaries") with the understanding, whether recorded in writing or otherwise, that the intermediary shall
lend or invest in party identified by or on behalf of the Company (Ultimate Beneficiaries). The Company has not
received any fund from any party(s) (Funding Party) with the understanding that the Company shall whether,
directly or indirectly lend or invest in other persons or entities identified 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.

(ix) Undisclosed income

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

44. Other Additional Regulatory Information (Contd.)

(x) Details of crypto currency or virtual currency

The Company has not traded or invested in crypto currency or virtual currency during the current or previous year.

(xi) Valuation of PP&E, intangible asset and investment property

The Company has not revalued its property, plant and equipment (including right-of-use assets) or intangible
assets or both during the current or previous year.

(xii) Registration of charges or satisfaction with Registrar of Companies

There are no charges or satisfaction which are yet to be registered with the Registrar of Companies beyond the
statutory period.

(xiii) Utilisation of borrowings availed from banks and financial institutions

The borrowings obtained by the Company from banks and financial institutions have been applied for the
purposes for which such loans were taken.

(xiv) The Company has used accounting software for maintaining its books of account which has a feature of recording
audit trail (edit log) facility and the same has operated throughout the year for all relevant transactions recorded
in the software. Further, there are no instance of audit trail feature being tampered and the audit trail has been
preserved by the company as per the statutory requirements for record retention.

45. The management has evaluated all activities of the Company till 23 April 2026 and concluded that there were no
additional subsequent events required to be reflected in the company's financial statements except the following:

On 23 April 2026, the Company achieved a milestone with the commencement of its first anode material production
facility at Mahistikry, Hooghly, West Bengal, with an initial capacity of 200 MTPA.

46. The Company has evaluated the impact of the ongoing geopolitical conflict in the Middle East involving the USA and Iran,
which escalated in February 2026. Based on the Company's current assessment of its operations, supply chains, and
financial exposure, there has been no material impact on the business operations or financial results for the year ended
31 March 2026. The Company continues to monitor the situation closely for any potential long-term indirect effects on
energy prices or global trade routes that could influence future reporting periods.

As per our report of even date attached

For Singhi & Co. For and on behalf of the Board of Directors of Hlmadrl Speciality Chemical Ltd

Chartered Accountants CIN: L27106WB1987PLC042756

Firm's Registration Number: 302049E

Sd/- Sd/- Sd/-

Navindra Kumar Surana Anurag Choudhary Shyam Sundar Choudhary

Partner Chairman cum Managing Director Executive Director

Membership No. 053816 & Chief Executive Officer DIN: 00173732

DIN:00173934

Sd/- Sd/-

Kamlesh Kumar Agarwal Monika Saraswat

Chief Financial Officer Company Secretary

PAN: ******960H & Compliance Officer

Place: Kolkata Place: Kolkata

Date: 23 April 2026 Date: 23 April 2026