2.15 Provisions and contingent liabilities

A provision is recognised if, as a result of a past event, the
Company has a present legal or constructive obligation
that can be estimated reliably, and it is probable that an
outflow of economic benefits will be required to settle
the obligation. Provisions are determined by discounting
the expected future cash flows (representing the best
estimate of the expenditure required to settle the present
obligation at the balance sheet date) at a pre-tax rate
that reflects current market assessments of the time
value of money and the risks specific to the liability. The
unwinding of the discount is recognised as finance cost.
Expected future operating losses are not provided for.

Warranty

A provision for warranties is recognised when the
underlying products or services are sold. The provision
is based on technical evaluation, historical warranty
data and a weighting of all possible outcomes by their
associated probabilities.

Onerous contract

A contract is considered to be onerous when the expected
economic benefits to be derived by the Company from
the contract are lower than the unavoidable cost of
meeting its obligations under the contract. The provision
for an onerous contract is measured at the present
value of the lower of the expected cost of terminating

the contract and the expected net cost of continuing
with the contract. Before such a provision is made, the
Company recognises any impairment loss on the assets
associated with that contract.

Restructuring

A provision for restructuring is recognised when the
board has approved a detailed formal restructuring plan,
and the restructuring either has commenced or has been
announced publicly.

Decommission cost

In accordance with the applicable legal requirements, a
provision for decommission of assets, which are taken
on lease, is recognised as per the terms of contract. The
provision is measured at the present value of the best
estimate of the cost of restoration.

Provisions, contingent liabilities, contingent assets and
commitments are reviewed at each balance sheet date.

Contingent liabilities

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 or a reliable estimate of the amount cannot be
made. Contingent assets are neither recognised nor
disclosed in the standalone financial statements.

2.16 Exceptional items

An item of income or expense which its size, type or
incidence requires disclosure in order to improve an
understanding of the performance of the Company
is treated as an exceptional item and the same is
disclosed separately.

2.17 Discontinued Operations

A discontinued operation is a component of the Company
that has been disposed of or is classified as held for sale
and that 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
area of operations, or is a subsidiary acquired exclusively
with a view to resale. The results of discontinued
operation are presented separately in the statement of
profit and loss for all the periods presented.

2.18 Segment reporting

An operating segment is a component that engages in
business activities from which it may earn revenues and
incur expenses, including revenues and expenses that
relate to transactions with any of the other components,
and for which discrete financial information is available.
The Company has considered one business segment
i.e. Power generation, equipment & related services as
the primary reporting segment on the basis that the risk
and returns of the Company is primarily determined by
the nature of products and services.

Chief Operating Decision maker of Company is the
Managing Director, along with the Board of Directors,
who review the periodic results of the Company.

2.19 Cash flow statement

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

2.20 Sale/Transfer of Business under common
control

Sale/Transfer of Business under common control Sale/
Transfer of business under common control includes
transferred business to entities which are ultimately/
intermediately controlled by the same party or parties
both before and after the business transfer and the
control is not transitory. In absence of guidance in Ind -AS
103, "Business Combination” appendix -C on accounting
treatment under such sale/transfer of business under
common control transaction, the management has
adopted accounting policy choice and used the fair
value accounting method for the transfer of business
under common control. This approach is considered by
management to best reflect the economic substance of
the transaction. Under this method:

• Any gain or loss arising from the difference between
the carrying amount and the fair value of the
transferred business calculated in accordance with
Ind AS 113 Fair Value Measurement and determined
by an independent fair value specialist is recognised
in profit or loss.

• Any difference between the fair value and the actual
consideration received is recognised in equity.

2.21 (a) Newly applicable standards:

The Ministry of Corporate Affairs has notified
Companies (Indian Accounting Standards)
Amendment Rules, 2025 dated May 07, 2025, to
amend Ind AS 21 relating to Lack of exchangeability
and Companies (Indian Accounting Standards)
Second Amendment Rules, 2025 dated August 13,
2025, to amend Ind AS 7 and Ind AS 107 relating to
Supplier Finance Arrangements, Ind AS 1 relating to
Classification of Liabilities as Current or Non-current
and Non-current Liabilities with Covenants and Ind
AS 12 relating to International Tax Reform—Pillar
Two Model Rules.

These amendments are effective for annual
reporting periods beginning on or after April 01,
2025. The Company has applied these amendments
for the first-time.

(i) Amendments to Ind AS 21 - Lack of
exchangeability

The amendments specifies how an entity
should assess whether a currency is
exchangeable and how it should determine
a spot exchange rate when exchangeability
is lacking. The amendments also require
disclosure of information that enables users
of its financial statements to understand how
the currency not being exchangeable into
the other currency affects, or is expected
to affect, the entity's financial performance,
financial position and cash flows.

The amendments have no impact on the
Company's financial statements.

(ii) Amendments to Ind AS 7 and Ind AS 107 -
Supplier Finance Arrangements

The amendments clarify the characteristics
of supplier finance arrangements and require
additional disclosures of such arrangements.
The disclosure requirements in the
amendments are intended to assist users
of financial statements in understanding the
effects of supplier finance arrangements on
an entity's liabilities, cash flows and exposure
to liquidity risk.

The amendments have no impact on the
Company's financial statements.

(iii) Amendments to Ind AS 1 - Classification of
Liabilities as Current or Non-current

The amendments specify the requirements for
classifying liabilities as current or non-current.
The amendments clarify:

• What is meant by a right to
defer settlement

• That a right to defer must exist at the
end of the reporting period

• That classification is unaffected by the
likelihood that an entity will exercise
its deferral right

• That only if an embedded derivative in
a convertible liability is itself an equity
instrument would the terms of a liability
not impact its classification

In addition, an entity is required to disclose
when a liability arising from a loan agreement
is classified as non-current and the entity's
right to defer settlement is contingent
on compliance with future covenants
within twelve months.

The amendments have no impact on the
Company's financial statements.

(iv) Amendments to Ind AS 12 - International
Tax Reform—Pillar Two Model Rules

The amendments have been introduced in
response to the OECD's BEPS Pillar Two
rules and include:

• A mandatory temporary exception
to the recognition and disclosure
of deferred taxes arising from the
jurisdictional implementation of the
Pillar Two model rules. This mandatory
temporary exception needs to be applied
retrospectively; and

• Disclosure requirements for affected
entities to help users of the financial
statements better understand an

entity's exposure to Pillar Two income
taxes arising from that legislation,
particularly before its effective date.
The amendments have no impact on the
Company's financial statements.

(b) Standards issued/notified but not yet effective:

The Ministry of Corporate Affairs has notified
Companies (Indian Accounting Standards) Second
Amendment Rules, 2025 dated 13 August 2025,
to amend Ind AS 1 and Ind AS 10 relating to
classification of liabilities as Current or Non-current
and Non-current liabilities with Covenants. The
amendments are effective for annual reporting
periods beginning on or after 01 April 2026.

Amendments to Ind AS 1 and Ind AS 10 -
Classification of Liabilities as Current or Non¬
current and Non-current Liabilities with Covenants

Ind AS 10: Events after the Reporting Period has
been amended to eliminate the earlier requirement
to treat a lender's waiver of a covenant breach,
granted after the reporting date but before approval
of the financial statements, as an adjusting event
where such breach made the liability repayable on
demand at the reporting date.

For annual reporting periods beginning on or after
01 April 2026, any breach of a covenant occurring on
or before the reporting date will require the related
liability to be classified as current in accordance
with Ind AS 1, unless the lender has granted a waiver
of the breach on or before the reporting date and
agreed not to demand repayment for at least 12
months after the reporting date.

The amendments are not expected to have any
impact on the Company's financial statements.

(c) New Income Tax Act

The Government of India has enacted the Income-
Tax Act, 2025, replacing the existing Income Tax
Act, 1961, effective for the financial years beginning
on and after 01 April 2026. Based on management's
assessment, the new legislation will not have
any material impact on the financial statements
of the Company.

b. Terms / rights attached to equity shares

The Company has only one class of equity shares having a par value of H 10 per share. Each holder of equity shares is
entitled to one vote per share. The Company declares and pays dividends, if any, in Indian rupees. The dividend proposed
by the Board of Directors, if any, is subject to the approval of the shareholders in the ensuing Annual General Meeting,
except in case of interim dividend.

In the event of liquidation of Company, the holders 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.

Nature and purpose of reserves :

General reserve:

General reserve created under relevant Act/ statues and will be utilized as per Companies Act/ other relevant act.

Capital reserve:

Sale of Hydro business undertaking [refer note 47 (ii)]

Retained earnings:

Retained earnings represent the net profit or loss accumulated by the Company till date, adjusted for any distributions made
to shareholders and any transfers from Other Comprehensive Income (OCI) or reclassification/adjustments within the other
equity, as per applicable accounting framework.

24. OTHER CURRENT FINANCIAL LIABILITIES (CONTD..)

the tribunal issued a reasoned unanimous award in May 2010 in favour of Alstom entities. HPGC then challenged the award in the District Court of Panchkula
and thereafter at High Court of Punjab & Haryana. However, the Arbitral award was upheld by the District Court as well as the High Court. Thereafter, in 2016,
HPGC moved a Special Leave Petition in the Supreme Court which is currently pending. Supreme court issued an interim stay on the operation of the Award,
subject to payment of H 1,000 million (against bank guarantee) by HPGC to Alstom entities.

The amount of H 1,000 million alongwith interest earned thereon amounting to H 607.0 million (previous year H 553.3 million) is thus held in trust pending final
order of the Supreme Court and presented as "other current financial liabilities".

** There are no amounts which are required to be transfer to Investor Education & Protection Fund as at 31 March 2026

Information about other provisions and significant estimates

Warranty - A provision for warranties is recognised when the underlying products or services are sold. The provision is based
on technical evaluation, historical warranty data and a weighting of all possible outcomes by their associated probabilities.

Contingencies/ others - Provision for contingencies represents estimates made mainly for probable claims arising out of
litigations / disputes pending with various authorities.

Loss orders - Provision for loss orders is created in onerous contracts. A contract is considered to be onerous when the
expected economic benefits to be derived by the Company from the contract are lower than the unavoidable cost of meeting
its obligations under the contract. The provision for an onerous contract is measured at the present value of the lower of the
expected cost of terminating the contract and the expected net cost of continuing with the contract.

Disclosure given pursuant to Ind AS 115:

Revenue recognised/(reversal) during the current year from performance obligation satisfied [arising out of contract modifications
and / or change in estimates) in the previous periods H 70.3 million (previous year H (501.0) million] (net).

Performance obligation

Information about the company's performance obligation are summarised below:

27. REVENUE FROM OPERATIONS (CONTD..)

(i) Execution of construction contracts

Construction contracts are ordinarily presumed to consist of combined obligations which are not distinct in the context
of the contract (i.e., single performance obligation). This is highly attributed to the long-term construction-nature of the
projects, whereby deliverables are typically highly interrelated and combined. The typical scope of long term contracts
arrangements includes a composite range of activities viz. engineering, procurement, manufacturing, construction and
servicing etc. of power plants and equipment. Revenue from contracts, where the performance obligations are satisfied
over time and other consideration, is recognized as per the percentage of completion method.

(ii) Execution of sale of products

Revenue is recognized at a point in time when control of the products passes to the customer.

(iii) Execution of sale of services

Sale of services are recognized in the period in which the services are rendered.

Remaining performance obligation

As of 31 March 2026, the aggregate amount of the contracted revenues allocated to unsatisfied (or partially unsatisfied)
performance obligations was H 16,278 million (previous year H 26,623 million). The conversion to revenue is highly
dependent on meeting the delivery schedules, contractual terms and conditions with customers, availability of customer
sites, changes/variation in scope /price etc. In view of these, it is not practical to define the accurate percentage of
conversion to revenue.

34. gratuity and other post-employment benefit plans

I) Gratuity

The Company has a defined benefit gratuity plan. Every employee who has completed five years or more of service gets
a gratuity on departure at 15 days salary (last drawn salary) for each completed year of service. The plan is funded with
an insurance company in the form of a qualifying insurance policy.

The following tables summarise the components of net employee benefit expense recognised in the statement of profit
and loss and the funded status and amounts recognised in the balance sheet for the respective plans.

i) Sensitivity analysis

Gratuity is a lump sum plan and the cost of providing these benefits is typically less sensitive to small changes in
demographic assumptions. The key actuarial assumptions to which the benefit obligation results are particularly
sensitive to are discount rate and future salary escalation rate. The following table summarizes the impact in
percentage terms on the reported defined benefit obligation at the end of the reporting period arising on account
of an increase or decrease in the reported assumption by 50 basis points.

These sensitivities have been calculated to show the movement in defined benefit obligation in isolation and
assuming there are no other changes in market conditions at the accounting date. There have been no changes
from the previous periods in the methods and assumptions used in preparing the sensitivity analyses.

Special Events:

The Code on Social Security, 2020 has been notified and made effective from 21 November 2025, thereby replacing
the erstwhile Payment of Gratuity Act, 1972. The Code on Social Security, 2020 has updated the definition of the
gratuity salary to "Wages” as defined in the Code on Wages, 2019 and has changed the vesting period for fixed-term
contract employees wherever applicable. This change has resulted in an increase in the liability of the Company,
and has resulted in a past service cost for the company.

II) Provident fund

In respect of certain eligible employees, the Company has a provident fund plan which is administered through
a trust. The Trust deed provides for the Company to make good any deficiency in the interest to be paid by the
Trust to it's members and the income earned by it. Accordingly the plan is as a defined benefit plan. The Company
has obtained an actuarial valuation of the provident fund liability as at the Balance Sheet date and accordingly the
Company has recognised a provision of H Nil million (previous year HNil million) towards provident fund liability.

35. SEGMENT INFORMATION

An operating segment is a component that engages in business activities from which it may earn revenues and incur expenses,
including revenues and expenses that relate to transactions with any of the other components, and for which discrete financial
information is available. The operating results of each of the functions are not considered individually by the Chief Operating
Decision Maker (CODM), the functions do not meet the requirements of Ind AS 108. Therefore Company's business activity
falls within a single operating segment i.e. Power Generation equipment and related services.

Chief Operating Decision Maker (CODM) of Company is the Managing Director, along with the Board of Directors, who review
the periodic results of the Company.

37. CORPORATE SOCIAL RESPONSIBILITY

As per Section 135 of the Companies Act, 2013 ("the Act"), a company is required to spend at least two per cent of its average
net profit for the three immediately preceding financial years on Corporate Social Responsibility (CSR) activities. However, the
Company did not meet the applicability criteria prescribed under section 135 of the Act during the Financial Year 2025-26.
Accordingly, the Company was not required to constitute the CSR Committee, the functions of the CSR Committee, wherever
applicable, were discharged by the Board of Directors during the year.

The Board had approved the projects with specific outlay on the activities as specified in Schedule VII of the Act, in pursuance
of the CSR Policy.

a) Gross amount required to be spent by the Company during the year is H Nil (previous year Nil)

b) Amount voluntary spent during the year on :

42. financial instruments and fair value measurements - accounting classification

Accounting classifications and fair values

The fair value of financial assets and liabilities are included at the amount at which the instrument could be exchanged in
current transaction between willing parties, other than in a forced or liquidation sale.

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

1 Fair valuation of financial assets and liabilities with short term maturities is considered as approximate to respective
carrying amount due to the short term maturities of these instruments.

2 Fair value of non-current financial assets and liabilities has not been disclosed as there is no significant difference between
carrying value and fair value.

The following tables shows the carrying amounts and fair value of financial assets and financial liabilities, including their levels
in the fair value hierarchy.

Measurement of fair values

Derivative instruments (assets and liabilities): Derivatives are fair valued using market observable rates and published prices
for similar assets and liabilities in active markets.

43. FINANCIAL RISK MANAGEMENT

Financial risk relates to Company's ability to meet financial obligations and mitigate exposure to broad market risks, including
volatility in foreign currency exchange rates and interest rates and commodity prices; credit risk; and liquidity risk, including
risk related to our credit ratings and our availability and cost of funding. Credit risk is the risk of financial loss arising from a
customer or counterparty failure to meet its contractual obligations. The Company faces credit risk in its industrial businesses,
as well as in derivative financial instruments activities. Liquidity risk refers to the potential inability to meet contractual or
contingent financial obligations (whether on- or off-balance sheet) as they arise, and could potentially impact Company
financial condition or overall safety and soundness.

(A) Credit risk

Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails to meet
its contractual obligations, and arises principally from the receivables from customers; loans and deposits.

The carrying amounts of financial assets represent the maximum credit risk exposure.

(i) Credit risk management

The Company's exposure to credit risk is influenced mainly by the individual characteristics of each customer.
However, management 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 customers operate.

43. FINANCIAL RISK MANAGEMENT (CONTD..)

The Company also regularly assesses customer credit risk inherent in the carrying amounts of receivables and
contract costs and estimated earnings, including the risk that contractual penalties may not be sufficient to offset
its accumulated investment in the event of customer termination. The Company also gains insight into future
utilization and cost trends, as well as credit risk, through its knowledge of the installed base of equipment and the
close interaction with its customers that comes with supplying critical services and parts over extended periods.

(ii) Provision for expected credit losses

The Company evaluates credit risk based on a variety of data that is determined to be predictive of the risk of loss
(including but not limited to external ratings, audited financial statements and collection plan and available press
information about customers) and applying experienced credit judgement.

(a) Expected credit loss on financial assets other than trade receivables :

With regards to all financial assets including security deposit amounting H64.3 million (previous year H62.1
million) and other financial assets other than security deposits H 360 million (previous year H122 million) with
contractual cash flows other than trade receivable, management believes these to be high quality assets with
negligible credit risk.

The management believes that the parties from which these financial assets are recoverable, have strong
capacity to meet the obligations and where the risk of default is negligible or nil and accordingly no provision
for expected credit loss has been provided on these financial assets. Break up of financial assets other than
trade receivables have been disclosed on balance sheet.

(b) Expected credit loss for trade receivables

Based on assessment which is driven by the historical experience/ credit rating available in relation to default
and delays in collection thereof, the expected credit loss for trade receivables is estimated to be in the
range of 7.3%-13.1%.

The amount of total allowance for credit loss is disclosed in Note 13 and the movement thereof during the
years ended 31 March 2026 and 31 March 2025 is tabulated below:

(B) Liquidity risk

Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated with
its financial liabilities that are settled by delivering cash or another financial asset. 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.

The Company also monitors the level of expected cash inflows on trade receivables and loans (comprising the
undrawn borrowing facilities) together with expected cash outflows on trade payables and other financial liabilities.

43. FINANCIAL RISK MANAGEMENT (CONTD..)

(C) Market risk

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, equity prices and other market changes that affect market risk sensitive instruments.
Market risk is attributable to all market risk sensitive financial instruments including investments and deposits, foreign
currency receivables, payables and loans and borrowings.

(i) Foreign currency risk

The Company operates internationally and is exposed to foreign exchange risk arising from foreign currency
transactions, primarily with respect to the USD and Euro. Foreign exchange risk arises from future commercial
transactions and recognised assets and liabilities denominated in a currency that is not the Company's functional
currency (INR). The risk is measured through a forecast of highly probable foreign currency cash flows.

The Company manages its foreign currency risk by entering into derivatives such as forward contracts. When a
derivative is entered into for the purpose of hedging, the Company negotiates the terms of those derivatives to
match the terms of the foreign currency exposure.

45. The Company has a process whereby periodically all long term contracts (including derivative contracts) are assessed for
material foreseeable losses. At the year end, the Company has reviewed and ensured that adequate provision as required under
any law / accounting standards for material foreseeable losses on such long term contracts (including derivative contracts)
has been made in the books of account.

46. 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. Management monitors the return on capital, as well as the level of dividends to
equity shareholders.

The board of directors seeks to maintain a balance between the higher returns that might be possible with higher levels of
borrowing and the advantages and security afforded by a sound capital position.

The Company monitors capital using gearing ratio, which is total debt (including short term debt) divided by total capital plus debt.

47. EXCEPTIONAL ITEMS

(i) On 10 July, 2024, the Board of Directors ("Board”) and on 14 August 2024, the members of the Company through remote
e-voting, had duly approved the sale of the Gas Power business undertaking of the Company as a going concern on a
slump sale basis (as defined under Section 2(42C) of the Income-tax Act, 1961), to GE Renewable Energy Technologies
Private Limited, a fellow subsidiary (common control entity) of the Company along with its respective assets and
liabilities including the consents, approvals, employees and contracts, for a lumpsum consideration of H 438.6 million
excluding all applicable taxes. The consideration for the transfer was determined basis fair valuation by an independent
valuer basis Discounted Cash Flow (DCF) method.

Accordingly, the Gas Power business undertaking was classified as held for sale and as a discontinued operation. In line
with the requirements of Ind AS 105 "Non-current Assets Held for Sale and Discontinued Operations” effective 14 August
2024, depreciation on tangible assets has been discontinued. On 30 September, 2024, the sale was completed, and the Gas
Power business undertaking ceased to be a part of the Company's operations with effect from that date. Consequently, the
financial results for the previous periods relating to Gas Power business undertaking have been presented/re-presented in
the Standalone profit and loss and Statement of cash flows. The excess of consideration received over the carrying value
of net liability amounting to H 583.4 million was recognized as a gain on sale of the Gas Power business undertaking and
presented under "Exceptional item” in the Statement of Standalone profit and loss for the year ended 31 March 2025.

(ii) On 10 July, 2024 the Board of Directors ("Board”) of the Company, and on 14 August 2024 the members of the Company
through remote e-voting approved the sale of the Hydro business undertaking ('Undertaking') of the Company as a
going concern on a slump sale basis {as defined under Section 2(42C) of the Income-tax Act, 1961}, to GE Vernova
Hydro Power India Private Limited (formerly known as GE Power Electronics (India) Private Limited), a fellow subsidiary
(common control entity) of the Company along with its respective assets and liabilities including the consents, approvals,
employees and contracts, for a lumpsum consideration of H 1/- excluding all applicable taxes.

The Undertaking was classified as held for sale and as a discontinued operation effective 14 August 2024. In line with the
requirements of Ind AS 105 "Non-current Assets Held for Sale and Discontinued Operations” effective 14 August 2024,
depreciation on tangible assets has been discontinued. Consequently, the financial statements for the previous period
relating to Undertaking have been re-presented in the Standalone financial statements and Statement of Cash Flows.
On 31 March 2025, the sale was completed, and the Undertaking ceased to be a part of the Company's operations with
effect from that date. The Undertaking had a net liability of H 2,978.9 million and fair value of negative H 609.0 million
was determined by an independent valuer basis Discounted Cash Flow (DCF) method as at the date of completion of
transaction i.e. 31 March 2025. Since, the transaction price of H 1 was higher than the fair value of negative H 609.0 million,
in accordance with the Accounting Policy of the Company, the gain of H 2,369.9 million, difference between the net liability
and the fair value, had been credited to the statement of Standalone profit and loss for the year ended 31 March 2025
as an exceptional item and the difference between transaction price and fair value had been credited to equity.

(iii) On 18 September 2025, the Board of Directors of the Company have approved the Scheme of Arrangement and
Demerger Co-operation Agreement ("DCA”), between GE Power India Limited ("the Company”) and JSW Energy
Limited ("JSW”) and their respective shareholders under Sections 230 to 232 read with other applicable provisions of
the Companies Act, 2013 ("Scheme” ), for the demerger and transfer of the Company's Durgapur facility ('Demerged
business') on a going concern basis to JSW, with an appointed date of 1 July, 2025.

The transaction will be completed post receipt of certain approvals. The management expects the transaction to be
completed within twelve months from the end of the reporting period.

Accordingly, the Demerged business has been classified as held for sale and as a discontinued operation. The assets and
liabilities related to the Demerged business have been presented as "Assets classified as held for sale” and "Liabilities
directly associated with "Assets classified as held for sale” respectively in the Standalone Statement of Assets and
Liabilities. In line with the requirements of Ind AS 105 "Non-current Assets Held for Sale and Discontinued Operations”,
depreciation on tangible assets has been discontinued effective 18 September 2025. Further, the figures for the previous
periods relating to Demerged business undertaking have been re-presented in the Standalone profit and loss and
Statement of cash flows.

47. exceptional items (contd..)

(iv) 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. Based on the draft rules and FAQs, issued by the
Ministry of Labour and Employment, the Company had estimated the financial implications thereof and has made an
additional provision of H 425.7 million (includes H 150.0 million for discontinued operations) for the quarter ended 31
December 2025 and year ended 31 March 2026.

Considering the materiality, regulatory-driven and non-recurring nature of the impact, the Company has presented such
incremental impact under ""Exceptional item"" in the Statement of profit and loss for the year ended 31 March 2026. The
Company continues to monitor the finalisation of central/state rules and other developments pertaining to Labour codes
and would provide appropriate accounting effect on the basis of such developments, if any.

49.SHARE BASED PAYMENTS

A) Employees stock options

The employees are entitled to shares of GE Vernova Inc., the ultimate holding company. Details of these plan is given below.

The ultimate holding company (GE Vernova Inc.) grant stock options, restricted stock units to employees under the 2007
and 2022 Long-Term Incentive Plan post approval of Board of directors of ultimate holding company. Incentive stock
options can be granted only to employees.

As restricted stock units (RSU's) and stock options have been granted at the fair value of option on the grant date,
therefore the Company measure and disclose the employee's compensation expenses relating to restricted stock option
units and stock options using the fair value.

The employees' compensation expense for stock options & RSU's during the year ended 31 March 2026 amounts to
H14.08 million as included under salaries and wages, charged in the statement of profit and loss during the year. Further,
the Ultimate Holding Company raises charge to the Company for both stock options and RSUs.

The options become exercisable over the vesting period (typically three or five years) and expire 10 years from the grant
date if not exercised. Restricted stock units (RSU) provide an employee with the right to receive shares of GE stock when
the restrictions lapse over the vesting period.

50. Recoverable from Alstom Transport India Limited on account of potential demand from Income tax authorities attributable
to business sold to it in 2014 under Business Transfer Agreement. Corresponding provision is also created against this
potential demand reported under provision for contingencies.

51. In respect of the fire incident on 20 July, 2022, at the Flue Gas Desulphurization System project site at Solapur, Maharashtra,
leading to damage of certain items, the estimated loss of H 997.5 million had been accounted under "Cost of material
and erection services”. The Company has accounted and received all payments from the insurer aggregating to H 646.1
million (which include interim payments of H 400 million during the quarter ended 31 March 2024, H 180 million during the
quarter ended 30 September 2024 and final payment of H 66.1 million in the month of October'25), and H 14 million from
sale of salvage material (H 13 million during the quarter ended 31 December 2024 and H 1 million during the quarter ended
31 March 2025).

52. In respect of the fire incident on 21 May 2023, at the covered main store in the Flue Gas Desulphurization System project
at NTPC Sipat, Chhattisgarh, leading to damage of items stored therein, the estimated loss of H 694 million had been
accounted under "Cost of material and erection services” in the statement of profit and loss. Procurement of fire-impacted
materials has been completed, and subsequent restoration works were completed by end of March 2025. Surveyors
carried out visits progressively and assessed the total loss (covered under insurance) at H 355 million. The Company
has accounted and received all payments from Insurer aggregating to H 318.2 million (which include interim payments of
H 100 million during the year ended 31 March 2024, H 100 million during the year ended 31 March 2025 and, final payment
of H 118.2 million during the year ended 31 March 2026).

53. During the year, GE Power India Limited ("the Company” or "GEPIL”) executed, along with other GE Vernova entities,
a settlement agreement with Bharat Heavy Electricals Limited (BHEL) on 9 September 2025. As per the terms of the
agreement, BHEL agreed to make payments totaling H 3,400 million to the Company in a phased manner till 31 March
2026, on fulfilment of certain conditions.

Pursuant to the above agreement, the Company has received H 3,430.6 million till date. In line with the Company's Expected
Credit Loss (ECL) policy, an amount of H 1050.5 million has been reversed during the year ended 31 March 2026 and
such reversal has been classified under "Other Expenses.” The carrying amount of trade receivables and the related ECL
provisions will continue to be reviewed by the Board of Directors and adjustment, if required, will be accounted for in the
Consolidated profit and loss in subsequent reporting periods in accordance with the Company's ECL Policy.

54. The Company and Jaiprakash Power Ventures Limited (JPVL) amicably settled the contractual disputes arising from the
contracts for Flue Gas Desulphurization (FGD) systems at JPVL's Bina and Nigrie projects, formalized through an agreement
dated 3 October 2025. On 14 October 2025, Hon'ble High Court issued an Order, which recorded the settlement and
directed withdrawal of the appeals filed by JPVL thereby resulting in closure of all related proceedings. Pursuant to the
Order, the said settlement agreement became effective on 14 October 2025.

As part of the above agreement, JPVL returned the performance bank guarantees (PBGs) along with unconditional discharge
letters on 21 October 2025, while the Company withdrew its arbitration notice. As per the agreement terms, the Company
supplied all materials in its possession to JPVL pursuant to which JPVL made a payment of H 250 million (excluding taxes)
to the Company towards the agreed settlement amount. With the completion of said supply and corresponding payment,
neither party has any further obligation towards each other and both parties stand duly discharged.

During the year, all project costs incurred by the Company up to 30 September 2025, have been charged to the statement
of standalone profit and loss and revenue on account of collection, arising from the above agreement has been recognised
in the current quarter in accordance with the Company's accounting policy.

55. Due to extended technology problems on the Ministry of Corporate Affairs (MCA) portal in previous year, duly communicated
by the Company to the relevant authorities, the Company deposited the IEPF amount of INR 0.91 millions on October 16,
2024 (due date September 29, 2024). There has been no other delay in transferring amounts, required to be transferred,
to the Investor Education and Protection Fund by the Company.

56. The Company has established a comprehensive system of maintenance of information and documents as required by the
transfer pricing regulation under Sections 92-92F of the Income-tax Act, 1961. Since, the law requires existence of such
information and documentation to be contemporaneous in nature, the Company continuously updates its documentation
to determine whether the transactions entered into with the associated enterprises during the financial year on an arm's
length basis. The management is of the opinion that such transactions are at arm's length so that the aforesaid legislation
will not have any impact on the financial statements, particularly on the amount of tax expense and that of provision for
taxation.

57. Ministry of Corporate Affairs (MCA) vide its notification number G.S.R. 206(E) dated March 24, 2021 (amended from
time to time) in reference to the proviso to Rule 3 (1) of the Companies (Accounts) Amendment Rules, 2021, introduced
the requirement of only using such accounting software w.e.f April 01, 2023 which has a feature of recording audit
trail of each and every transaction, creating an edit log of each change made in the books of account along with the
date when such changes were made and ensuring that the audit trail cannot be disabled. The Institute of Chartered
Accounts of India ("ICAI”) issued an "Implementation guide on reporting on audit trail under rule 11(g) of the Companies
(Audit and Auditors) Rules, 2014 (Revised 2024 edition)” in February 2024 relating to feature of recording audit trail.
The Company has identified relevant applications that record financial transactions, along with the primary SAP system
to which the aforementioned provision and guidance apply for the year ended March 31, 2026 and which has a feature
of recording audit trail (edit log) facility wherein:

- in respect of one accounting software (SAP), the audit trail feature was enabled throughout the year at application
level and at database level;

- in respect of software operated by a third-party service provider, for maintaining payroll records, based on an
independent auditor's System and Organization controls report which covers the requirements of audit trail, 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;

- in respect of software operated by a third-party service provider for maintaining employee database, though
application 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 however testing of audit trails is not covered in an independent
auditor's System and Organisation Controls report

Only authorized personnel have access to the underlying database for the purpose of system support after obtaining
explicit permission from the Company. The Company has enabled sufficient logs at the database level which captures
objects edited along-with timing and personnel identity. Any data changes would undergo inherent checks that are built
onto application and any impermissible changes at the database level creates multiple errors like operational failure,
corrupting of tables etc. and rule out the possibility of such changes.

58. No funds have been advanced or loaned or invested (either from 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 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 on behalf of the Ultimate Beneficiaries.

59. The Company had decided to surrender the exemption granted by EPFO (Employees' Provident Fund Organization) in
accordance with applicable laws and regulatory requirements.

In this regard, the Board of Trustees of the Trust passed a resolution dated 19^th May 2025 approving the surrender of
exemption; the necessary application and related documents were submitted before PF authorities to this effect.

The application for surrender of exemption has been accepted and approved by Regional Provident Commissioner,
Regional Office, Durgapur on 19^th March 2026 with effect from 1 April, 2026. Accordingly, with effect from 01 April,
2026, GE Power India Limited shall commence provident fund compliances as an un-exempted establishment under the
jurisdiction of RPFC Durgapur.

Consequent to the aforesaid approval from EPFO, the process relating to surrender of exemption, transfer of records and
past accumulations and other allied activities has been initiated and shall be completed in due course in accordance with
applicable statutory requirements.

60. The Company is in the process of appointing designated Company Secretary as required under the provisions of the
Companies Act, 2013 and applicable regulations for listed entities. The Company will complete the appointment in time
to ensure compliance with all applicable statutory requirements.

61. The Board of Directors has recommended a final dividend of H 7 per equity share (face value of H 10/- each) aggregating
to H 470.6 million for the financial year ended March 31, 2026 at the Board Meeting held on 11^th May 2026, which is subject
to the approval of the Shareholders of the Company at the ensuing Annual General Meeting.