o. Provisions, contingent liabilities and contingent assets
Provisions

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

If the effect of the time value of money is material, provisions are discounted using a current pre-tax
rate that reflects, when appropriate, the risks specific to the liability. When discounting is used, the
increase in the provision due to the passage of time is recognised as a finance cost.

Contingent liabilities

A contingent liability is a possible obligation that arises from past events and whose existence will be
confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly
within the control of the entity or a present obligation that arises from past events but is not recognised
because it is not probable that an outflow of resource embodying economic benefit will be required to
settle the obligation or the amount of the obligation cannot be measured with sufficient reliability.
The Company does not recognise a contingent liability but discloses it as per Ind AS 37 Provisions,
Contingent Liabilities and Contingent Assets in the financial statements unless the possibility of an
outflow of resources embodying economic benefit is remote.

Contingent assets

A contingent asset is a possible asset that arises from past events and whose existence 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. The Company does not recognize the contingent asset in its financial
statements since this may result in the recognition of income that may never be realised. Where an inflow
of economic benefits is probable, the Company discloses a brief description of the nature of contingent
assets at the end of the reporting period. However, when the realisation of income is virtually certain,
then the related asset is not a contingent asset, and the Company recognizes such assets.

Provisions, contingent liabilities and contingent assets are reviewed at each reporting date.

p. Employee benefits

i. Short-term employee benefits:

Employee benefits such as short-term compensated absences, bonus, ex-gratia and performance
linked rewards falling due within twelve months of rendering the service are classified as short¬
term employee benefits and are charged to the statement of profit and loss in the period in which
the employee renders the service.

ii. Long-term employee benefits:

The Company provides long-term benefits such as Retention bonus (i.e long service award) and
compensated absences. Retention bonus is awarded to certain cadre of employees on completion
of specific years of service. The obligation recognised in respect of these long-term benefits is
measured at present value of estimated future cash flows expected to be made by the Company
and is recognised on the basis of actuarial valuation, using projected unit credit method as at each
reporting date. As the Company does not have an unconditional right to defer its settlement for 12
months after the reporting date, the entire leave is presented as a current liability in the balance
sheet and expenses recognised in statement of profit and loss. Long-term compensated absences
and retention bonus are unfunded.

iii. Post-employment benefits:

Defined contribution schemes:

The Company provides defined contribution schemes such as statutory provident fund, employee
state insurance, voluntary superannuation and the pension plan. The Company has no obligation
other than the contribution payable to the funds which is recognised as an expense, when an
employee renders the related service. If the contribution payable to the scheme for service received
before the balance sheet date exceeds the contribution already paid, the deficit payable to the
scheme is recognised as a liability after deducting the contribution already paid.

If the contribution already paid exceeds the contribution due for services received before the
balance sheet date, then excess is recognized as an asset to the extent that the pre-payment will
lead to, for example, a reduction in future payment or a cash refund.

Defined benefit plan:

The employee’s gratuity fund scheme managed by board of trustees established by the Company,
represent defined benefit plan. Gratuity is provided for on the basis of actuarial valuation, using
projected unit credit method as at each reporting date.

Re-measurements, comprising of actuarial gains and losses, the effect of the asset ceiling, excluding
amounts included in net interest on the net defined benefit liability and the return on plan assets
(excluding amounts included in net interest on the net defined benefit liability), are recognised
immediately in the balance sheet with a corresponding debit or credit to retained earnings through
OCI in the period in which they occur. Re-measurements are not reclassified to statement of profit
and loss in subsequent periods. Net interest is calculated by applying the discount rate to the net
defined benefit liability or asset. The Company recognised the following changes in defined benefit
obligation as an expense in statement of profit or loss:

• Service cost comprising of current service cost, past service cost, gains and loss on entitlements
and non-routine settlement.

• Net interest expenses or income.

Gains or losses on settlement of any defined benefit plan are recognised when the settlement
occurs. In case of funded plans, the fair value of the plan assets is reduced from the gross obligation
under the defined benefit plans to recognise the obligation on a net basis.

q. Share based payment

Employees of the Company have been granted Employee Stock Option Plan, whereby employees render
services as consideration for equity instruments (equity-settled transactions).

The cost of equity-settled transactions is determined by the fair value at the date when the grant is
made using an appropriate valuation model. Further details are given in Note 36.

That cost is recognised as employee benefits, together with a corresponding increase in Share options
outstanding account in other equity, over the vesting period in which the performance and/or service
conditions are required to be fulfilled. The cumulative expense recognised for equity-settled transactions
at each reporting date until the vesting date reflects the extent to which the vesting period has expired
and the Company’s best estimate of the number of equity instruments that will ultimately vest.

At the end of each reporting period, the Company revises its estimates of the number of options that are
expected to vest based on the performance and/ or service conditions. It recognises the impact of the
revision to original estimates, if any, in statement of profit and loss with a corresponding adjustment
to equity.

The expense or credit in the statement of profit and loss for a period represents the movement in
cumulative expense recognised as at the beginning and end of that period and is recognised in employee
benefits expense with a corresponding movement in Share options outstanding account in other
equity. In case of the employee stock option schemes having a graded vesting schedule, each vesting
tranche having different vesting period has been considered as a separate option grant and accounted
for accordingly.

Where shares are forfeited due to a failure by the employee to satisfy the service conditions, any expenses
previously recognised in relation to such shares are reversed effective from the date of the forfeiture.

Employees of the subsidiary companies also received the options in the form of share-based payment
transactions. The cost of equity settled transactions are recovered by the Company from the subsidiary
companies on yearly basis based on the estimated options that will vest to the employees of the
subsidiary companies.

The dilutive effect of outstanding options is reflected as additional share dilution in the computation of
diluted earnings per share.

r. Financial instruments

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

Financial assets

Initial recognition and measurement

The classification of financial assets at initial recognition depends on the financial asset’s contractual
cash flow characteristics and the Company’s business model for managing them. With the exception of
trade receivables that do not contain a significant financing component or for which the Company has
applied the practical expedient, on initial recognition, a financial asset is recognised at fair value. In
case of financial assets which are recognised at fair value through profit or loss, its transaction cost is
recognised in the statement of profit and loss. In other cases, the transaction cost is attributed to the
acquisition value of the financial asset.

Trade receivables that do not contain a significant financing component or for which the Company has
applied the practical expedient are measured at the transaction price determined under Ind AS 115.
Refer to the accounting policies in 2.3 (e) - Revenue from contracts with customers.

Subsequent measurement

For purposes of subsequent measurement, financial assets are classified in below categories:

• at amortized cost

• at fair value through other comprehensive income (FVTOCI)

• at fair value through profit or loss (FVTPL)

Financial assets are measured at amortised cost when the business model aims to collect contractual
cash flows; and cash flows are solely payments of principal and interest (SPPI). Post initial recognition,
assets are measured using EIR method and are subject to ECL based impairment.

Financial assets are measured at FVTOCI when objective is both collecting cash flows and selling assets;
and cash flows meet SPPI. The Company recognizes the movements in fair value in OCI, interest income,
impairment losses in the statement of profit and loss. On de-recognition of the asset, cumulative gain or
loss previously recognised in OCI is reclassified from OCI to statement of profit and loss. The Company
has not designated any financial asset as at FVTOCI.

Financial assets measured at FVTPL is the default category for assets not qualifying for amortised cost
or FVTOCI. FVTPL asset category is measured at fair value with all changes recognised in the statement
of profit and loss. Equity investments are generally classified as FVTPL unless designated as FVTOCI.

De-recognition

A financial asset is de recognised when rights to cash flows expire, or rights are transferred and risks and
rewards are substantially transferred; or neither transferred nor retained, but control is transferred.

Continuing involvement is recognised only to the extent of retained risks/ obligations and is measured
at the lower of the original carrying amount of the asset and the maximum amount of consideration that
the Company could be required to repay.

Impairment of financial assets

In accordance with Ind AS 109, the Company recognises an allowance for Expected Credit Loss (ECL)
model to financial assets measured at amortised cost, financial assets at FVTOCI, trade receivables,
and loan commitments or financial guarantees. Impairment on trade receivables is recognised using
the simplified approach, which requires lifetime ECL, right from its initial recognition. The Company
has established a provision matrix that is based on its historical credit loss experience, adjusted for
forward-looking factors specific to the debtors and the economic environment. For all other financial
assets, impairment is based on either 12 month ECL or lifetime ECL, depending on whether there has
been a significant increase in credit risk since initial recognition. Financial assets are written off when
there is no reasonable expectation of recovering the contractual cash flows.

Financial liabilities

Initial recognition and measurement

At initial recognition, financial liabilities are classified as FVTPL, at fair value through other equity,
loans and borrowings, payables, or as derivatives designated as hedging instruments in an effective
hedge, as appropriate.

All financial liabilities are recognised initially at fair value and, in the case of loans and borrowings and
payables, net of directly attributable transaction costs.

Subsequent measurement

The measurement of financial liabilities depends on their classification, as described below:

Financial liabilities at fair value through profit or loss (‘FVTPL’)

Financial liabilities as FVTPL include financial liabilities held for trading and designated upon initial
recognition as FVTPL. Financial liabilities are classified as held for trading if they are incurred for the
purpose of repurchasing in the near term. This category also includes derivative financial instruments
entered into by the Company that are not designated as hedging instruments in hedge relationships as
defined by Ind AS 109. Separate embedded derivatives are also classified as held for trading unless they
are designated as effective hedging instruments.

Gains or losses on liabilities held for trading are recognised in the statement of profit and loss.

Financial liabilities designated upon initial recognition as FVTPL are designated as such at the initial date
of recognition, and only if the criteria in Ind AS 109 are satisfied. For liabilities designated as FVTPL,
fair value gains / losses attributable to changes in own credit risk are recognized in OCI. These gains
/ losses are not subsequently transferred to statement of profit and loss. However, the Company may
transfer the cumulative gain or loss within equity. All other changes in fair value of such liability are
recognised in the statement of profit and loss. The Company has not designated any financial liability
at FVTPL.

Financial liabilities at amortised cost

After initial recognition, interest-bearing borrowings are subsequently measured at amortised cost
using the EIR method. Amortised cost is calculated by taking into account any discount or premium
on acquisition and fees or costs that are an integral part of the EIR. Gains and losses are recognised in
statement of profit and loss when the liabilities are derecognised as well as through the EIR amortisation
process. The EIR amortisation is included as finance costs in the statement of profit and loss.

Supplier finance arrangements

The Company enters into supplier finance arrangements through issuance of Letters of Credit, under
which suppliers may, at their discretion, obtain early payment from banks or financial institutions.

Management has assessed that such arrangements do not result in a substantive change in the nature
of the underlying liability, as the obligation continues to arise from purchase transactions forming part
of the Company’s operating cycle. Accordingly, amounts outstanding are presented as trade payables.
Finance costs relating to extended credit periods are recognised as finance costs. Cash flows relating
to such arrangements are classified as operating activities, consistent with the classification of the
underlying liability.

Where an arrangement results in derecognition of trade payable and recognition of a separate financing
arrangement (e.g., buyer’s credit), such balances are presented as borrowings, with related cash flows
classified as financing activities.

Derecognition

A financial liability is derecognised when the obligation under the liability is discharged or cancelled or
expires. When an existing financial liability is replaced by another from the same lender on substantially
different terms, or the terms of an existing liability are substantially modified, such an exchange or
modification is treated as the de recognition of the original liability and the recognition of a new liability.
The difference in the respective carrying amounts is recognised in the statement of profit and loss.

Reclassification of financial assets and liabilities

The Company determines classification of financial assets and liabilities on initial recognition. After
initial recognition, no reclassification is made for financial assets which are equity instruments and
financial liabilities. For financial assets which are debt instruments, a reclassification is made only if
there is a change in the business model for managing those assets. Changes to the business model are
expected to be infrequent. The Company’s senior management determines change in the business model
as a result of external or internal changes which are significant to the Company’s operations. Such
changes are evident to external parties. A change in the business model occurs when the Company either
begins or ceases to perform an activity that is significant to its operations. If the Company reclassifies
financial assets, it applies the reclassification prospectively from the reclassification date which is
the first day of the immediately next reporting period following the change in business model. The
Company does not restate any previously recognised gains, losses (including impairment gains or losses)
or interest.

Offsetting of financial instruments

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

s. Earnings per share

Basic earnings per share are calculated by dividing the net profit / (loss) after tax for the year attributable
to equity shareholders (after deducting preference dividends and attributable taxes) by the weighted
average number of equity shares outstanding during the year. The weighted average number of equity
shares outstanding during the year are adjusted for any bonus shares issued during the year and also
after the balance sheet date but before the date the financial statements are approved by the board
of directors.

Diluted earnings per share are calculated by dividing the net profit/ (loss) after tax for the year
attributable to equity shareholders (after deducting preference dividends and attributable taxes) by
the weighted average number of shares considered for deriving basic earnings per share and the weighted
average number of equity shares which could have been outstanding on issue / conversion of all dilutive
potential equity shares.

The number of equity shares and potentially dilutive equity shares are adjusted for bonus shares as
appropriate. The dilutive potential equity shares are adjusted for the proceeds receivable, had the shares
been issued at fair value. Dilutive potential equity shares are deemed converted as of the beginning of
the year, unless issued at a later date.

t. Cash and cash equivalents

Cash and cash equivalents in the balance sheet comprise cash at banks and in hand and short-term
deposits with an original maturity of three months or less and highly liquid investments that are readily
convertible to known amounts of cash and which are subject to an insignificant risk of changes in value.

u. Dividend

The Company recognises a liability to pay dividend when the distribution is authorised by way of approval
of shareholders. A corresponding amount is recognised directly in equity.

v. Events after the reporting period

If the Company receives information after the reporting period, but prior to the date the financial
statements are approved for issue, about conditions that existed at the end of the reporting period,
the Company assess whether the information affects the amounts that it recognises in its financial
statements. The Company will adjust the amounts recognised in its financial statements to reflect any
adjusting events after the reporting period and update the disclosures that relate to those conditions
in light of the new information. For non-adjusting events after the reporting period, the Company will
not change the amounts recognised in its financial statements but will disclose the nature of the non¬
adjusting event and an estimate of its financial effect, or a statement that such an estimate cannot be
made, if applicable.

2.4. Other accounting policiesa. Government grants and subsidies

Grants and subsidies from the government are recognised when there is reasonable assurance that [i] the
Company will comply with the conditions attached to them, and [ii] the grant / subsidy will be received.

When the grant or subsidy relates to revenue, it is recognised as income on a systematic basis in the
statement of profit and loss over the periods necessary to match them with the related costs, which
they are intended to compensate.

Where the grant relates to an asset, it is recognised as deferred income and released to income in equal
amounts over the expected useful life of the related asset.

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

b. Non-current assets held for sale and discontinued operations

Non-current assets or disposal groups comprising of assets and liabilities are classified as ‘held for sale’
if their carrying amount will be recovered principally through a sale transaction rather than through
continuing use and a sale is considered as highly probable to be concluded within 12 months from the
balance sheet date.

Such non-current assets or disposal groups are measured at the lower of their carrying amount and fair
value less costs to sell. Non-current assets including those that are part of a disposal group held for
sale are not depreciated or amortised while they are classified as held for sale.

Assets and liabilities classified as held for sale are presented separately from other items in the
balance sheet.

Discontinued operations represent a component of the Company that has been disposed of or is classified
as held for sale and represents a separate major line of business or geographical area of operations;
is part of a single coordinated plan to dispose of such a line of business or geographical area; or is a
subsidiary acquired exclusively with a view to resale.

Discontinued operations are excluded from the results of continuing operations and are presented
separately as ‘profit or loss before tax from discontinued operations,’ tax expense/(income] of
discontinued operations,’ and ‘profit or loss after tax from discontinued operations,’ in the statement
of profit and loss.

c. Derivative financial instruments and hedge accounting
Initial recognition and subsequent measurement

The Company uses derivative financial instruments, such as forward currency contracts to hedge its
foreign currency risks. Such derivative financial instruments are initially recognised at fair value on
the date on which a derivative contract is entered into and are subsequently re-measured at fair value.
Derivatives are carried as financial assets when the fair value is positive and as financial liabilities when
the fair value is negative.

Commodity contracts that are entered into and continue to be held for the purpose of the receipt or delivery
of a non-financial item in accordance with the Company’s expected purchase, sale or usage requirements
are held at cost.

Any gains or losses arising from changes in the fair value of derivatives are taken directly to profit or loss,
except for the effective portion of cash flow hedges, which is recognised in OCI and later reclassified to
profit or loss when the hedge item affects profit or loss or treated as basis adjustment if a hedged forecast
transaction subsequently results in the recognition of a non-financial asset or non-financial liability.

For the purpose of hedge accounting, hedges are classified as:

• Fair value hedges when hedging the exposure to changes in the fair value of a recognised asset or
liability or an unrecognised firm commitment,

• Cash flow hedges when hedging the exposure to variability in cash flows that is either attributable to a
particular risk associated with a recognised asset or liability or a highly probable forecast transaction
or the foreign currency risk in an unrecognised firm commitment,

• Hedges of a net investment in a foreign operation.

At the inception of a hedge relationship, the Company formally designates and documents the hedge
relationship to which the Company wishes to apply hedge accounting and the risk management objective
and strategy for undertaking the hedge. The documentation includes the Company’s risk management
objective and strategy for undertaking hedge, the hedging / economic relationship, the hedged item
or transaction, the nature of the risk being hedged, hedge ratio and how the entity will assess the
effectiveness of changes in the hedging instrument’s fair value in offsetting the exposure to changes in
the hedged item’s fair value or cash flows attributable to the hedged risk.

Such hedges are expected to be highly effective in achieving offsetting changes in fair value or cash
flows and are assessed on an ongoing basis to determine that they actually have been highly effective
throughout the financial reporting periods for which they were designated.

Hedges that meet the strict criteria for hedge accounting are accounted for, as described below:

i. Fair value hedges

The change in the fair value of a hedging instrument is recognised in the statement of profit and loss
as finance costs. The change in the fair value of the hedged item attributable to the risk hedged is
recorded as part of the carrying value of the hedged item and is also recognised in the statement
of profit and loss as finance costs.

For fair value hedges relating to items carried at amortised cost, any adjustment to carrying value
is amortised through profit or loss over the remaining term of the hedge using the EIR method. EIR
amortisation may begin as soon as an adjustment exists and no later than when the hedged item
ceases to be adjusted for changes in its fair value attributable to the risk being hedged.

If the hedged item is derecognised, the unamortised fair value is recognised immediately in profit
or loss. When an unrecognised firm commitment is designated as a hedged item, the subsequent
cumulative change in the fair value of the firm commitment attributable to the hedged risk is
recognised as an asset or liability with a corresponding gain or loss recognised in statement of
profit and loss.

ii. Cash flow hedges

The effective portion of changes in the fair value of the hedging instrument is recognised in OCI
in the cash flow hedge reserve, while any ineffective portion is recognised immediately in the
statement of profit and loss.

The Company uses forward currency contracts as hedges of its exposure to foreign currency risk
in forecast transactions and firm commitments, as well as forward commodity contracts for its
exposure to volatility in the commodity prices. The ineffective portion relating to foreign currency
contracts is recognised in finance costs and the ineffective portion relating to commodity contracts
is recognised in finance income or finance cost.

Amounts recognised as OCI are transferred to statement of profit and loss when the hedged
financial income or financial expense is recognised or when a forecast sale occurs.

When the hedged item is the cost of a non-financial asset or non-financial liability, the amounts
recognised as OCI are transferred to the initial carrying amount of the non-financial asset
or liability.

If the hedging instrument expires or is sold, terminated or exercised without replacement or rollover
(as part of the hedging strategy], or if its designation as a hedge is revoked, or when the hedge no
longer meets the criteria for hedge accounting, any cumulative gain or loss previously recognised
in OCI remains separately in equity until the forecast transaction occurs or the foreign currency
firm commitment is met.

2.5. Climate-related matters

The Company considers climate-related matters in estimates and assumptions, where appropriate. This
assessment includes a wide range of possible impacts on the Company due to both physical and transition
risks. Even though the Company believes its business model and products will still be viable after the
transition to a low-carbon economy, climate-related matters increase the uncertainty in estimates and
assumptions underpinning several items in the financial statements.

Even though climate-related risks might not currently have a significant impact on measurement, the
Company is closely monitoring relevant changes and developments, such as new climate-related legislation.
The items and considerations that are most directly impacted by climate-related matters are:

a. Useful life of property, plant and equipment: When reviewing the residual values and expected useful
lives of assets, the Company considers climate-related legislation and regulations that may restrict
the use of assets or require significant capital expenditures.

b. Impairment of non-financial assets: The value-in-use may be impacted in several different ways by
transition risk in particular, such as climate-related legislation and regulations and changes in demand
for the Company’s products. The Company considered expectations for increased costs of emissions,
increased demand for goods sold by the Company’s WTG equipment CGU and cost increases due to
stricter recycling requirements in the cash-flow forecasts in assessing value-in-use amounts.

c. Fair value measurement: For revalued office properties, the Company considers the effect of physical
and transition risks and whether investors would consider those risks in their valuation. The Company
believes it is not currently exposed to severe physical risks, but believes that investors, to some extent,
would consider impacts of transition risks in their valuation, such as increasing requirements for energy
efficiency of buildings due to climate-related legislation and regulations as well as tenants’ increasing
demands for low-emission buildings.

3. Significant accounting judgements, estimates and assumptions

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

3.1 Significant accounting judgements

The management has exercised judgements in applying the Company’s accounting policies and the key
areas where such judgement has a material impact on the amounts recognised and presented in the financial
statements are set out below:

a. Operating lease commitments - Company as a lessor

The Company has entered into commercial property leases on its investment property portfolio. The
Company has determined, based on an evaluation of the terms and conditions of the arrangements,
such as the lease term not constituting a major part of the economic life of the commercial property
and the fair value of the asset, that it retains all the significant risks and rewards of ownership of these
properties and accounts for the contracts as operating leases.

Lease term of contracts with renewal and termination options - Company as lessee

The lease term comprises the non cancellable period together with periods covered by renewal options
where exercise is reasonably certain and termination options where non exercise is reasonably certain.
The Company applies judgement, considering all relevant economic factors, in assessing such certainty.
The lease term is reassessed upon significant events or changes in circumstances within the Company’s
control that affect this assessment. Refer to Note 37.1 for information on potential future rental
payments relating to periods.

b. Revenue from contracts with customers

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

• Identifying performance obligations

The Company supplies WTG that are either sold separately or bundled together with project execution
activities to customers.

The Company determines that both the supply of WTGs and project execution activities can be performed
distinctly on a stand-alone basis which indicates that the customer can benefit from respective
performance obligations on their own. The Company also determines that the promises to supply
the WTG and execute projects are distinct within the context of the contract and are not inputs to a
combined item in the contract. Further, the WTG supply and project execution activities are not highly
interdependent or highly interrelated, as the Company would be able to supply WTGs wherein the project
execution activities can be performed by customers directly. Also, the Company uses output method for
measuring the progress of performance obligation as it represents a faithful depiction of the transfer of
goods or services

• Estimation of variable consideration and assessment of the constraint

Contracts for the supply of WTGs and project execution activities include provision for penalty related
to delayed delivery or commissioning and compensation for performance shortfalls expected over the
life of the guarantee period. Such contractual provisions give rise to variable consideration.

In estimating variable consideration, the Company assess the specific terms of each contract and
considers relevant factors on a case-to-case basis. Before including any amount of variable consideration
in the transaction price, the Company evaluates whether such amounts are subject to the constraint on
variable consideration. Based on historical experience and current economic conditions, the Company
does not expect any significant reversal of revenue recognised from variable consideration, and the
related uncertainty is expected to be resolved in the near term.

c. Supplier finance arrangements

The Company enters into supplier finance arrangements with the suppliers through Letters of Credit,
with extended payment terms beyond normal trade credit periods. Judgement is applied to assess
whether such arrangements continue as trade payables or constitute borrowings, based on whether
there is substantial modification of the original terms.

Based on this assessment, LC-based obligations are classified as trade payables, as they arise from
purchase transactions and do not involve substantive modification of terms. This assessment is reviewed
if the terms of such arrangements change.

3.2 Significant accounting estimates and assumptions

The key assumptions concerning the future and other key sources of estimation of uncertainty at the reporting
date, that have a significant risk of causing a material adjustment to the carrying amounts of assets and
liabilities within the next financial year, are described below. Uncertainty about these assumption and
estimates could result in outcomes that require a material adjustment to the carrying amount of assets or
liabilities affected in future periods.

a. Allowance for trade receivables

Trade receivables do not carry any interest and are stated at their transaction value as reduced by
appropriate allowance for expected credit loss (“ECL”]. The measurement of ECL involves significant
estimation uncertainty. The Company applies the ‘simplified approach’ and recognises lifetime ECL
right from its initial recognition using a provision matrix based on historical credit loss experience.
Such estimates are adjusted for forward-looking information including economic factors which requires
management judgement.

Further, for customer segments with distinct risk profiles, the Company determines impairment loss
allowances using management judgement considering customer specific credit risk and financial
position. Details on movement in allowance for credit impairment and expected credit loss are given in
Note 10.2.

b . Taxes

Deferred tax assets are recognised for all unused tax losses to the extent that it is probable that taxable
profit will be available against which the losses can be utilised. Significant management judgement
is required to determine the amount of deferred tax assets that can be recognised, based upon the
likely timing and the level of future taxable profits, future tax planning strategies. The Company has
unabsorbed depreciation and brought forward losses details of which are given in Note 32.3.

c. Defined benefit plans (gratuity benefits)

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

The parameter most subject to change is the discount rate. In determining the appropriate discount
rate for plans operated, the management considers the interest rates of government bonds in currencies
consistent with the currencies of the post-employment benefit obligation. The estimates of future salary
increase consider the inflation, seniority, promotion and other relevant factors.

Further details about gratuity obligations are given in Note 35.

d. Fair value measurement of financial instruments

When the fair values of financial assets and financial liabilities recorded in the balance sheet cannot
be measured based on quoted prices in active markets, their fair value is measured using valuation
techniques including the Discounted cash flow (“DCF”) model. The inputs to these models are taken
from observable markets where possible, but where this is not feasible, a degree of judgement is required
in establishing fair values. Judgements include considerations of inputs such as liquidity risk, credit
risk and volatility. Changes in assumptions about these factors could affect the reported fair value of
financial instruments. Refer Note 42 for further disclosures.

e. Intangible assets under development

The Company capitalises intangible assets under development for a project in accordance with the
accounting policy. Initial capitalisation of costs is based on management’s assessment that technological
and economic feasibility has been established, which is generally evidenced by the achievement of
defined development milestones in accordance with the Company’s project management framework.
In determining the costs to be capitalised, management applies judgement in assessing the expected
future economic benefits of the project, including assumptions relating to future cash generation and
the period over which such benefits are expected to be realised. The carrying value of intangible assets
under development has been disclosed in Note 8.

f. Property, plant and equipment

Refer Note 2.3 (h) for the estimated useful life and Note 4 for carrying value of property, plant
and equipment.

g. Share based payment

Estimating fair value for share based payment transactions requires determination of the most appropriate
valuation model, which is dependent on the terms and conditions of the grant. This estimate also requires
determination of the most appropriate inputs to the valuation model including the expected life of the
share option, volatility and dividend yield and making assumptions about them. The assumptions and
models used for estimating fair value for share based payment transactions are disclosed in Note 36.

h. Leases - Estimating the incremental borrowing rate

As the interest rate implicit in the lease cannot be readily determined, the Company measures its lease
liabilities using the incremental borrowing rate (IBR). The IBR reflects the rate the Company would pay
to borrow, over a similar term and with similar security, an amount equal to the value of the right-of-use
asset in a comparable economic environment. The determination of the IBR involves estimation when
observable market rates are not available. The Company uses observable inputs where possible (such
as market interest rates) and applies entity-specific judgements, including the subsidiary’s standalone
credit rating, where required.

5. Capital work-in-progress (CWIP)

CWIP as at March 31, 2026, stood at ^ 137.88 Crore (previous year: ^ 59.59 Crore), which primarily includes
office building under construction and plant and equipment under installation.

7.2 Fair value and valuation techniques:

As at March 31, 2026, and March 31, 2025, the fair value of investment properties is ^ 93.44 Crore and ^ 72.57
Crore, respectively. The fair valuation has been determined by management based on the Discounted Cash
Flow (“DCF”) method. The key inputs used in the valuation of investment properties are set out as below:

Under the DCF method, fair value is estimated using assumptions regarding the benefits and liabilities of
ownership over the investment property life including an exit or terminal value. This method involves the
projection of a series of cash flows on a real property interest. To this projected cash flow series, a market-
derived discount rate is applied to establish the present value of the income stream associated with the
investment property.

7.3 Du ring the previous financial year, the Company entered into a sale and leaseback arrangement in respect
of its corporate office premises, “One Earth”, with OE Business Park Private Limited (“OEBPPL”). Based
on the substance of the transaction, including the existence of reciprocal call and put options over the
securities of OEBPPL, the arrangement did not meet the criteria for recognition as a sale under Ind AS 115
- Revenue from Contracts with Customers. Accordingly, the transaction continues to be accounted for as a
financing arrangement, and no gain on transfer has been recognised. The proceeds received are recognised
as a financial liability measured at amortised cost and are presented under financial liabilities in the financial
statements. The carrying amount of the financial liability as at March 31, 2026, is ^ 425.31 Crore (previous
year: ^ 416.95 Crore).

9.4 During the year, the Company’s overseas associate Suzlon Energy (Tianjin) Co. Ltd, incorporated in China
has been subjected to liquidation proceedings as admitted by the competent court under the applicable
laws of its jurisdiction. Following the commencement of the proceedings, the associate is currently being
administered by a court-appointed liquidator. Based on the information available, including the status of the
liquidation proceedings, the Company does not expect any recovery from the investment. Accordingly, the
investment continues to be carried at Nil carrying value, having been fully impaired in earlier periods. As at
the reporting date, the liquidation process has not been legally completed, and the Company continues to
hold its legal interest in the associate. The investment has therefore not been derecognised from the financial
statements. Derecognition will be considered upon completion of the liquidation process and extinguishment
of the Company’s rights in the associate.

9.5 The valuation requires management to make certain assumptions about the model inputs, including forecast
cash flows, discount rate, credit risk and volatility. The probabilities of the various estimates within the range can be
reasonably assessed and are used in management’s estimate of fair value for these unquoted equity investments.

12.1 Bank balances mainly comprise margin money deposits, which are subject to first charge towards non-fund
based facilities from banks and financial institutions.

12.2 Other assets primarily include ^ 41.12 Crore (previous year: ^ 41.12 Crore] towards expenditure incurred by
Company on development of infrastructure facilities for power evacuation arrangements as per authorisation
of the State Electricity Board (‘SEB’) / Nodal agencies in Maharashtra. The expenditure is reimbursed, on
agreed terms, by the SEB/ Nodal agencies. In certain cases, the Company had received contribution towards
power evacuation infrastructure from customers in the ordinary course of business. The cost incurred towards
development of infrastructure facility is reduced by the reimbursements received from SEB/ Nodal agencies
and the net amount is shown as ‘Infrastructure Development Asset’ under other financial assets. During the
year, the Company had provided for ^ Nil (previous year: ^ 5.13] based on ECL at the reporting date.

16.2 Terms / rights attached to equity shares

The Company has only one class of equity shares having a par value of ^ 2 each. The voting rights of the
shareholders shall be in proportion to their shares in the paid-up equity share capital of the Company i.e.
each holder of fully paid-up equity share is entitled to one vote per share and each holder of partly paid-up
equity share is entitled to half a vote per share.

The Company declares and pays dividends in Indian rupees (^). The dividend proposed by the Board of
Directors is subject to approval of the shareholders in the ensuing Annual General Meeting.

In the event of liquidation of the Company, the holder of equity shares will be entitled to receive remaining
assets of the Company, after distribution of all preferential amounts. The distribution will be in proportion
to the number of equity shares held by the shareholders.

17. Other equity

Pursuant to the approval received from National Company Law Tribunal (NCLT) vide it’s order dated April 29,
2026, the Company has implemented a Scheme of Arrangement (‘Scheme’) by and between the Company and its
shareholders and creditors under section 230 and 231 read with section 52 and section 66 and other applicable
provisions of the Companies Act, 2013, effective from appointed date as specified in the scheme, being September
30, 2024. Consequently, the Company has restated the comparative financial information for the year ended
March 31, 2025, presented in these financial statements to give effect to the Scheme as below:

• the debit balance in the Company’s retained earnings account as at September 30, 2024, of ^ 18,418.43
Crore has been adjusted against available reserves, namely Capital Reserve, Capital Contribution, Capital
Redemption Reserve and balance with Securities Premium, in accordance with the order prescribed in the
Scheme for such adjustment; and

• the balance in the General Reserve of ^ 912.06 Crore as at the appointed date has been reclassified to the
retained earnings.

Nature and purposes of various items in other equity:a. Securities premium

Securities premium reserve is used to record the premium on issue of shares. The reserve is utilised in
accordance with the provisions of the Companies Act, 2013.

b. Share options outstanding account

The share options outstanding account is used to recognise the grant date fair value of options issued to
employees under Employee Stock Option Plan.

18. Borrowings

The Company has availed Non-Fund Based (‘NFB’) facilities from certain banks and financial institutions on the
basis of security of current assets of the Company, charge on bank accounts (including TRA, DSRA and cash
margin accounts), charge on identified PPE, assignment of all rights and benefits arising out of the contracts in
respect of the projects for which the facility is being availed , including all rights of SEL under such contracts.

Loan covenants

Under the terms of NFB facilities, the Company is required to comply with certain covenants relating to working
capital ratio, ratio of the total financial indebtedness to consolidated earnings before interest, tax and depreciation
(“EBITDA”), minimum level of net worth of the Company and achieving quarterly EBITDA targets as per the terms
of facility agreement.

The Company has complied with these covenants throughout the tenure of the facility falling within the
reporting period.

Figures in the brackets represents balance of previous year.

Performance guarantee (‘PG’) represents the expected outflow of resources against claims for performance
shortfall expected in future over the life of the guarantee assured. The period of performance guarantee varies for
each customer according to the terms of contract. The key assumptions in arriving at the performance guarantee
provisions are wind velocity, plant load factor, grid availability, load shedding, historical data, wind variation
factor etc.

Machine availability provision represents obligation of the Company to compensate the customer in connection
with unplanned suspension of operations or the expected outflow of resources against claims for the loss incurred
by the customer on account of the wind turbine generator uptime being lower than the specific threshold of the
time the grid was available, as defined in the contracts.

Operation, maintenance and warranty represents the expected liability on account of field failure of parts of WTG
and expected expenditure of servicing the WTGs over the period of free operation, maintenance and warranty,
which varies according to the terms of each sales contract.

Liquidated damages (‘LD’) represents the expected contractual claims which the Company may need to pay for
non-fulfilment or delay in meeting specified performance obligations as per the terms of the respective sales /
purchase contracts. These are determined on a case-to-case basis considering the specific contractual terms and
relevant factors associated with the underlying transaction.

The figures shown against ‘Utilisation’ represent withdrawal from provisions credited to statement of profit and
loss to offset the expenditure incurred during the year and debited to statement of profit and loss.

Trade payables are non-interest bearing and are generally settled within 30-90 days. The Company has
supplier finance arrangements through issuance of Letters of Credit to certain suppliers. Under these
arrangements, suppliers may obtain early payment from banks or financial institutions at their discretion.
Credit period then ranges from 90-180 days, comprising of normal credit period and extended credit. The
Company settles the amounts with the banks or financial institutions on the respective due dates. The
Company bears finance cost on the extended credit period. Amounts outstanding under such arrangements
are included within trade payables.

The carrying amount of trade payables that are part of a supplier finance arrangement is ^ 2,489.24 Crore
(previous year: 1,618.72 Crore).

23.4 Performance obligation

Information about the Company’s performance obligations are summarised below:

a. Sale of equipment

The performance obligation is satisfied at a point in time when control of the goods is transferred to the
customer, which generally occurs upon dispatch of the goods as per the terms of the contract.

Payment is generally due within 30 to 45 days from the completion of the relevant contract milestone,
in accordance with the credit terms agreed with customers.

The Company provides a standard warranty for general repairs / replacement/ refurbishment at the
time of equipment sale to customers. Since this warranty is not sold separately and is customary within
the industry, it covers product defects and routine operation and maintenance during warranty period.
Therefore, it qualifies as an assurance-type warranty, which ensures that the product complies with
agreed-upon specifications. Accordingly, the cost is accounted under Ind AS 37 and a provision for
warranty is recognized at the time of sale.

b. Operation and maintenance service

The performance obligation is satisfied over time by providing services that the customer simultaneously
receives and consumes as they are performed. Invoices are raised as per the contractual agreement,
and payment is generally due within 30 days from the invoice date.

c. Project execution

The performance obligation is satisfied over time based on completion of the respective activities/
milestones, as identified in the terms of the sales order.

d. Power evacuation infrastructure

The performance obligation is satisfied at a point in time upon completion of electrical installation and
commissioning of the WTGs with the power evacuation facilities, followed by receipt of approval for
commissioning from the concerned authorities, in accordance with the terms of the contract.

e. Sale of services

The performance obligation is satisfied over time, as and when the services are rendered, in accordance
with the contractual terms, and the Company has an enforceable right to payment for the services
provided to date.

f. Power generation

The performance obligation is satisfied at a point in time, when control of the electricity generated is
transferred to the customer upon delivery of units to the grid, as evidenced by metering and in accordance
with the power purchase agreement.

g . Land

In case of leasehold land, the performance obligation is satisfied upon the transfer of leasehold rights to
the customers, for outright sale, the performance obligation is satisfied when title of land is transferred
to the customer as per the terms of the respective sales order. The performance obligation for land
development is satisfied upon rendering of the service as per the terms of the respective sales order.

24.1 During the year, the Company received an approval for government grants under production-based
incentive scheme. In accordance with the terms of the grant, the Company is required to fulfil specified
production related conditions. No funds were received during the year in relation to such grants; however, a
significant portion was subsequently received after the reporting date but before approval of the standalone
financial statements.

27.1 The employee benefits expense includes expenses of ^ 29.25 Crore (previous year: ^ 43.43 Crore) pertaining
to research and development.

27.2 Effective November 21, 2025, the Government of India has consolidated multiple existing labour laws
into four unified legislations collectively referred to as the “New Labour Codes” viz: Code on Wages,
2019; Industrial Relations Code, 2020; Code on Social Security, 2020; and Occupational Safety, Health
and Working Conditions Code, 2020. Also the Ministry of Labour & employment published draft Central
Rules and FAQs to enable assessment of the financial impact due to changes in regulations. Accordingly,
the Company has evaluated the implications of the New Labour Codes and recognised an incremental of
^ 10.14 Crore towards past service cost, which has been charged to the statement of profit and loss in the
current year in accordance with Ind AS 19.

30.2 Corporate Social Responsibility (CSR)

The Company has spent ^ 12.68 Crore (previous year: ^ 8.81 Crore) towards various schemes of CSR as
prescribed under section 135 of the Companies Act, 2013. The details are:

a. Gross amount required to be spent by the Company during the year: ^ 11.20 Crore (previous year: ^ Nil);

b. Amount spent in cash for purposes other than construction/ acquisition of any asset during the year is ^
12.68 Crore (previous year: ^ 8.81 Crore) and amount yet to be paid in cash is ^ Nil (previous year: ^ Nil);

c. Above includes a contribution of ^ 12.68 Crore (previous year: ^ 8.21 Crore) to Suzlon Foundation, a
subsidiary registered under Section 8 of the Companies Act, 2013, with the main objectives of working
in the areas of social, economic and environmental issues such as empowerment, health, education,
civic amenities, environment, livelihood, transformative, proactive and enable the less privileged
segments of the society to improve their livelihood by enhancing their means and capabilities to meet
the emerging opportunities.

The Company does not carry any provisions for CSR expenses for current year and previous year.

30.3 The other expense includes expenses of ^ 54.36 Crore (previous year: ^ 28.70 Crore) pertaining to
research and development.

31.1 The Company recognised a net reversal of impairment of investment in subsidiaries amounting to ^ 613.67
Crore (previous year: provision of ^ 165.00 Crore). This primarily comprises reversal of impairment of ^
754.23 Crore relating to investments in SE Forge Limited based on an external valuation report, partially
offset by net impairment provisions recognised for other subsidiaries. Refer Note 46.3, Additionally
during the year, the Company reversed provision of ^ 13.29 Crore (previous year: ^ 267.86 Crore) towards
impairment of loans given to a subsidiary.

31.2 There is Extinguishment of financial liabilities and financial assets pursuant to settlement agreement and
reversal of impairment allowance, related to wholly owned subsidiary of the company (refer note 41.3)
amounting to ^ 546.00 Crore (previous year: ^ Nil).

The Company has opted for concessional tax regime u/s 115BAA of the Income-tax Act, 1961 since
FY 2020-21 and accordingly Minimum Alternate Tax is not applicable.

32.3 Details of carry forward losses and unabsorbed depreciation on which deferred tax asset
has been recognised:

The Company has unabsorbed depreciation and brought-forward tax losses including capital losses amounting
to ^ 11,496.16 Crore (previous year: ^ 14,338.33 Crore). Based on the assessment of the probability of
future taxable profits, the Company has recognised a deferred tax asset during the year amounting to ^
1,278.28 Crore (previous year: ^ 638.05 Crore), in accordance with the principles laid down in Ind AS 12 -
Income Taxes.

The unabsorbed depreciation is available for offsetting all future taxable profits of the Company and can
be carried forward indefinitely whereas the business losses and capital losses can be carried forward for 8
years from the year in which losses arose. The business losses and capital losses, to the extent remaining
unutilized will lapse between FY 2026-27 to FY 2031-32.

33. Components of other comprehensive income (OCI)

It includes gain on account of re-measurement of defined benefit plans of ^ 1.34 Crore (previous year: ^ 5.98
Crore), refer Note 35.1.

35. Post-employment benefit plans35.1 Defined contribution plan:

The Company recognised an expense of ^ 23.68 Crore (previous year: ^ 23.60 Crore) towards defined
contribution plans in the statement of profit and loss (refer Note 2.3 (p)(iii)).

a. Provident fund

The Company contributes to the Employees’ Provident Fund (“EPF”) in accordance with the Employees’
Provident Fund and Miscellaneous Provisions Act, 1952. Contributions are made at prescribed rates to
the Employees’ Provident Fund Organisation (“EPFO”), which administers the scheme. The Company’s
obligation is limited to its contributions, which are recognised as an expense as incurred. Benefits
vest immediately.

b. Superannuation

The Company operates a defined contribution superannuation plan, under which its obligation is
limited to contributions made to an irrevocable trust. During the year, the Company consolidated the
superannuation funds of various group entities into a single Group Superannuation Trust for administrative
and investment efficiencies. Contributions continue to be determined on an entity-specific basis, while
plan assets are pooled at the trust level. The plan is funded through a qualifying insurance policy.

35.2 Defined benefit gratuity plan

The Company has a defined benefit gratuity plan in accordance with the provisions of the Code on Social
Security, 2020, which subsumes the Payment of Gratuity Act, 1972.

Gratuity is payable to employees upon resignation, retirement, superannuation, termination, death or
disablement, subject to applicable service conditions. Fixed term employees are eligible for gratuity on
a proportionate basis upon completion of the respective contract period, in accordance with applicable
statutory provisions. The benefit is computed based on last drawn salary at prescribed rates for each
completed year of service in accordance with applicable regulations.

During the year, the Company consolidated the gratuity funds of various group entities into an approved
Group Gratuity Trust for administrative efficiency and improved fund management. The consolidation does
not impact the measurement of the defined benefit obligation, as actuarial valuation and contributions
continue to be determined on an entity-specific basis, while plan assets are pooled at the trust level.

The gratuity plan is administered through an irrevocable trust and is partly funded through a qualifying
insurance policy, with the balance liability recognised based on actuarial valuation.

The fund has the form of a trust and is governed by the Board of Trustees. The scheme is partially funded
with an insurance company in the form of a qualifying insurance policy.

During the year, the Company has reassessed the actuarial assumption for attrition rate based on trend
of attrition.

35.9 Quantitative sensitivity analysis for significant assumption and risk analysis:

Interest rate risk: The defined benefit obligation is determined using a discount rate based on market yields
on government bonds. A decrease in the discount rate would result in an increase in the present value of the
defined benefit obligation

Salary escalation risk: The present value of the defined benefit obligation is based on assumed future salary
increases. An increase in the assumed salary escalation rate would lead to a higher liability.

Demographic risk: The valuation of the defined benefit obligation is based on assumptions such as mortality
and employee attrition. Adverse deviations in actual experience compared to these assumptions may result
in an increase in the liability.

The expected life of the stock options is based on the Company’s expectations and is not necessarily indicative
of exercise patterns that may actually occur. The expected volatility reflects the assumption that the historical
volatility of the options is indicative of future trend, which may not necessarily be the actual outcome. Further,
the expected volatility is based on the Company’s equity shares volatility for a period of 5 years upto grant date
of an option.

36.4 The total expenses arising from share-based payment transaction recognised in statement of profit and
loss as part of employee benefit expense is ^ 82.59 Crore (previous year: ^ 111.19 Crore).

37. Leases37.1 Company as a lessee

The Company has lease contracts for land, buildings and vehicles used in its operations. Leases of land,
building and vehicles generally have lease terms between 2 to 3 years. The Company’s obligations under its
leases are secured by the lessor’s title to the leased assets.

Generally, the Company is restricted from assigning and subleasing the leased assets. The Company also has
certain leases of premises with lease terms of 12 months or less and with low value. The Company applies
the ‘short-term lease’ and ‘lease of low-value assets’ recognition exemptions for these leases.

37.2 Company as a lessor

The Company has entered into operating leases on its investment property portfolio consisting of certain
office premises (refer Note 7). These leases have terms between two to ten years. All leases include a clause
to enable upward revision of the rental charge on an annual basis according to prevailing market conditions.
Rental income recognised by the Company during the year is ^ 9.52 Crore (previous year: ^ 11.57 Crore).

a. Claims against the Company not acknowledged as debts includes demand from customs duty, service tax,
VAT, GST and labour department for various matters. The Company / tax department has preferred appeals
on these matters and the same are pending with various appellate authorities. Considering the facts of the
matters, no provision is considered necessary by the management.

b. The Company has also various income tax matters where the Company/ tax department has preferred appeals
on these matters and the same are pending with various appellate authorities. As the Company has sufficient
carry forward losses available for set-off in case the Company loses, the liability is neither provided nor
disclosed above under contingent liabilities.

c. In person hearing has taken place post filing of response to a Show Cause Notice (SCN) dated September 26,
2025, received from Securities Exchange Board of India (‘SEBI’) in respect of matters, which were previously
disposed off, in favour of the Company vide an adjudication order dated June 27, 2025. The SCN relates to
certain specific transactions between the Company and its domestic subsidiaries and disclosure of contingent
liability in respect of earlier financial years from 2013-14 to 2017-18. Based on the legal assessment, the
management has disclosed this matter under contingent liability and believes that the Company has strong
case to defend and there is no material impact on these standalone financial statements.

d. A few lawsuits have been filed against the Company by certain suppliers in relation to disputes arising from
the fulfilment of obligations under supply agreements. Further, certain customers of the Company have
disputed amounts claimed as receivable, which the Company believes are contractually not payable. These
matters are pending for hearing before the respective courts and the outcome of which is uncertain. Based
on management’s assessment and as a matter of prudence, a portion of the claims has been provided for as
it represents the probable outflow of resources. The balance claims, for which the likelihood of outflow is
not considered probable, have accordingly not been disclosed as contingent liabilities.

40. Segment information

As permitted by paragraph 4 of Ind AS-108, ‘Operating Segments’, if a single financial report contains both
consolidated financial statements and the separate financial statements of the parent, segment information
need to be presented only on the basis of the consolidated financial statements. Thus, disclosures required by
Ind AS-108 are given in consolidated financial statements

41.5 Terms and conditions of transactions with related parties

All transactions with related parties are made on terms equivalent to those that prevail in arm’s length
transactions. Outstanding balances at the year-end are unsecured and settlement occurs in cash. 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.

42. Fair value measurements

The fair value of the financial assets and liabilities are considered to be same as their carrying values except for
investments in Mutual funds The fair value of investments in mutual funds is derived from the Net Asset Value
(NAV) of the respective units in the active market at the measurement date.

43. Fair value hierarchy

There are no transfers between level 1 and level 2 and level 3 during the year and earlier comparative periods.
The Company’s policy is to recognise transfers into and transfers out of fair value hierarchy levels as at the end
of the financial year.

44. Financial risk management

The Company’s principal financial liabilities comprise borrowings, trade payables and other liabilities. The main
purpose of these financial liabilities is to finance the Company’s operations. The Company’s principal financial
assets include investments, loans, trade receivables and other assets, and cash and cash equivalents that the
company derive directly from its operations. The Company also holds FVTPL investments.

The Company is exposed to market risk, credit risk and liquidity risk which may adversely impact the fair value
of its financial instruments. The Company has constituted an internal Risk Management Committee (‘RMC’),
which is responsible for developing and monitoring the Company’s risk management framework. The focus of
the RMC is that the Company’s financial risk activities are governed by appropriate policies and procedures and
that financial risks are identified, measured and managed in accordance with the Company’s policies and risk
objectives. It is the Company’s policy that no trading in derivatives for speculative purposes may be undertaken.
The Risk Management Policy is approved by the Board of Directors of the Company.

44.1 Market risk

Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because
of changes in market prices.

Market risk comprises three types of risk: interest rate risk, foreign currency risk and price risk, such as
commodity risk. The Company’s exposure to market risk is primarily on account of interest risk and foreign
currency risk. Financial instruments affected by market risk include loans and borrowings, FVTPL investments
and derivative financial instruments.

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

a. Interest rate risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate
due to changes in market interest rates.

b. Foreign currency risk and sensitivity

Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate
because of changes in foreign exchange rates. The Company’s exposure to the risk of changes in foreign
exchange rates relates primarily to the Company’s operating activities (when revenue or expense
is denominated in a foreign currency) and the Company’s borrowings and loans and investments in
foreign subsidiaries.

Foreign currency sensitivity

The Company’s currency exposures in respect of monetary items as at March 31, 2026, and March 31,
2025, that result in net currency gains and losses in the income statement and equity arise principally
from movement in US Dollar and Euro exchange rates.

The following table demonstrates the sensitivity to a reasonably possible change in USD and EURO
exchange rates, with all other variables held constant. The Company’s exposure to foreign currency
changes for all other currencies is not material. The other currencies includes Australian Dollar, Great
Britain Pound, Danish Kroner etc.

44.2 Credit risk

Credit risk is the risk of financial loss to the Company if a customer or counter-party fails to meet its contractual
obligations. The Company is exposed to credit risk from its operating activities (primarily trade receivables)
and from its financing activities. The carrying amount of financial assets represents the maximum exposure
to credit risk. The Company manages credit risk by monitoring the creditworthiness of customers, reviewing
contractual performance and ensuring timely collection in line with agreed terms.

a. Trade receivables

The Company’s exposure to trade receivables is limited due to diversified customer base. The Company
evaluates expected credit loss on trade receivables at each reporting date. The assessment is based on
historical experience, credit profile of customers and current market conditions.

An impairment analysis is performed at each reporting date on an individual basis for major customers.
In addition, a large number of minor receivables are grouped into homogenous groups and assessed for
impairment collectively.

b. Financial instruments

Financial instruments that are subject to concentrations of credit risk primarily consist of cash and cash
equivalents, term deposit with banks, loans given to subsidiaries and other financial assets. Investments
of surplus funds are made only with approved counterparties and within credit limits assigned.

The Company’s maximum exposure to credit risk as at March 31, 2026, and as at March 31, 2025, is the
carrying value of each class of financial assets.

Refer Note 2.3 [r] for accounting policy on financial instruments.

44.3 Liquidity risk

Liquidity risk is the risk that the Company will be unable to meet its financial obligations as they fall due.
The Company’s objective is to maintain sufficient liquidity to meet its obligations under both normal and
stressed conditions. The Company manages liquidity risk by monitoring forecast and actual cash flows
and maintaining adequate cash and credit facilities. The Company’s liquidity is also influenced by supplier
finance arrangements, which provide flexibility of extended interest-bearing credit offered through
issuance of Letters of Credit and are monitored as part of Company’s overall operating cycle and liquidity
management framework.

Reasons For variance

⁽¹⁾There is no significant change (i.e. change of more than 25% as compared to the immediately previous financial year) in the

key financial ratios.

46. Other information

46.1 Effective May 10, 2025, the merger of Suzlon Global Services Limited (Transferor Company), a wholly owned
subsidiary, became effective with the Company (Transferee Company), with an appointed date of August 15,
2024. Accordingly, for FY 2024-25, the Company had accounted for the business combination in accordance
with Appendix C to Ind AS 103 by restating prior year financial statements as if the merger had occurred on
April 1, 2023.

46.2 Subsequently, pursuant to Business Transfer Agreement, effective May 10, 2025, the Company transferred
the business relating to the Southern and Western regions of its Project Division to its step-down wholly
owned subsidiaries, Suzlon Projects (South) Limited (‘SPSL’) and Suzlon Projects (West) Limited (‘SPWL’),
respectively, on a going concern and on an “as-is-where-is” basis.

These transfers included all associated assets and liabilities and were executed for a lump sum consideration
of ^ 102.00 Crore and ^ 74.00 Crore respectively. The carrying value of the net assets transferred as on the
effective date amounted to ^ 99.59 Crore and ^ 70.97 Crore respectively. The excess of consideration over
the carrying value of net assets resulted in a total gain of ^ 5.44 Crore, which has been recognised in the
statement of profit and loss under exceptional items.

46.3 Du ring the year, the Company acquired an additional 21.67% equity stake in Renom Energy Services Private
Limited (‘Renom’) for a consideration of ^ 268.67 Crore, in accordance with the terms agreed at the time of
initial acquisition. Further, the investment in Renom, which was recognised on a 100% basis in the previous
year under the anticipated acquisition method, was assessed for impairment and an impairment loss of ^

80.00 Crore has been recognised during the year against the total investment of ^ 907.40 Crore.

The fair value of the obligation towards acquisition of the remaining 24% equity stake, determined at ^ 197.40
Crore at initial recognition, continues to be recognised as deferred consideration payable and is classified as
non-current as at March 31, 2026.

46.4 On March 25, 2026, the Board of Directors of its wholly owned subsidiary SE Forge Limited (“SEFL”) approved
the transfer of the forging business engaged in the manufacture of forging rings, tower flanges and bearing
products operating in a SEZ unit in Vadodara, to another wholly owned subsidiary of the Company, namely
Suryoday Renewables Limited (“Suryoday”), on a going concern basis, for a lump sum consideration of ^

185.00 Crore subject to working capital related adjustments (if any) which may result in some variation in
the final consideration. The completion of the transaction is subject to requisite regulatory approvals and
fulfilment of conditions stipulated in the BTA and is in the process.

46.5 Pursuant to the proviso to Rule 3(1) of the Companies (Accounts) Rules, 2014, as amended, the Company
uses accounting software having an audit trail (edit log) feature as prescribed by The Ministry of Corporate
Affairs (MCA). During the financial year ended March 31, 2026, the Company used SAP ECC as its accounting
software from April 1, 2025, to April 30, 2025, during which period the audit trail feature was enabled and
operated at the application level. The Company migrated to SAP S/4 HANA with effect from May 2025, and
the audit trail feature at both the application and database level was enabled and remained operative from
May 11, 2025, onwards. However, the audit trail at the database level was not operative for the initial period
from May 1, 2025, to May 10, 2025. Further, no instance of tampering with the audit trail was observed
post the period when such feature was enabled, and the audit trail has been preserved in accordance with
applicable statutory record-retention requirements.

47. Other statutory information

a. In accordance with the provisions of Section 186(4) of the Companies Act, 2013, the Company has given
loans and provided guarantees to related parties for general corporate purposes (refer Note 11 and Note
39). Further the Company has also made certain investments during the year (refer Note 9).

b. The Company does not have any Benami property, where any proceeding has been initiated or pending against
the Company for holding any Benami property.

c. The Company does not have any charges or satisfaction which is yet to be registered with ROC beyond the
statutory period.

d. The Company has not traded or invested in Crypto currency or Virtual Currency during the financial year.

e. The Company has not advanced or loaned or invested funds to any other person(s) or entity(ies), including
foreign entities (Intermediaries) with the understanding that the Intermediary shall

i. 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

ii. provide any guarantee, security or the like to or on behalf of the ultimate beneficiaries.

f. The Company has not received any fund from any person(s) or entity(ies), including foreign entities (funding
party) with the understanding (whether recorded in writing or otherwise) that the Company shall

i. 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

ii. provide any guarantee, security or the like to or on behalf of the ultimate beneficiaries.

g. The Company is in compliance with the number of layers prescribed under clause (87) of section 2 of the
Companies Act, 2013 read with the Companies (Restriction on number of Layers) Rules, 2017 (as amended).

h. The Company is in compliance with the scheme of arrangement which has an accounting impact on current
financial year.

i. The Company does not have any transaction which is 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).

j. Details of title deeds of the immovable properties, in the nature of freehold land, as indicated in the below
mentioned cases were acquired pursuant to the Scheme of Amalgamation involving the merger of Suzlon
Windfarm Services Private Limited (‘SWSPL’) and Suzlon Power Infrastructure Limited (‘SPIL’) with Suzlon
Global Services Limited (“SGSL”) with effect from March 29, 2014 and April 01, 2020 respectively the
Company, as approved by the Hon’ble National Company Law Tribunal (NCLT) wide Order dated May 08,
2025. These properties are not individually held in the name of the Company as on March 31, 2026.

In addition to the cases listed below, certain other immovable properties in the nature of freehold land were
also acquired by the Company, pursuant to the Scheme of Merger of SGSL with the Company. These properties
are not individually held in the name of the Company as on the reporting date.

48. Capital management

For the purpose of the Company’s capital management, capital includes issued equity capital, share premium and
all other equity reserves attributable to the equity holders of the Company. The primary objective of the Company’s
capital management is to safeguard its ability to reduce the cost of capital and to maximise 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, issue new shares or sell assets to
reduce debt. The Company monitors capital using a gearing ratio, which is net debt (total borrowings and lease
liabilities net of cash and cash equivalents divided by total equity (as shown in the balance sheet). The Company
has established a supplier finance arrangement to manage its working capital. See Note 22.1 for further details.

49. The Company has regrouped / reclassified the figures of the previous year wherever necessary to confirm with
current year presentation. The impact of such reclassification / regrouping is not material to the standalone
financial statements.