3.16 Provisions, Contingent Liabilities & Contingent
Assets

Provision is recognised when the Company has a
present obligation as a result of past events & it is
probable that the outflow of resources will be required
to settle the obligation & in respect of which reliable
estimates can be made. A disclosure for contingent
liability is made when there is a possible obligation
that may, but probably will not require an outflow of
resources. When there is a possible obligation or a
present obligation in respect of which the likelihood of
outflow of resources is remote, no provision/ disclosure
is made. Contingent assets are not recognised in the
financial statement.

Provisions & contingencies are reviewed at each
balance sheet date & adjusted to reflect the correct
management estimates.

3.17 Statement of Cash Flows

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

3.18 Events occurring after the Reporting Date

Adjusting events (that provides evidence of condition
that existed at the balance sheet date) occurring
after the balance sheet date are recognized in the
Standalone Financial Statements. Material non
adjusting events (that are inductive of conditions that
arose subsequent to the balance sheet date) occurring
after the balance sheet date that represents material
change & commitment affecting the financial position
are disclosed in the Directors’ Report.

3.19 Earnings per Share

Basic earnings per share are calculated by dividing
the net profit or loss [excluding other comprehensive
income] for the year attributable to equity shareholders
by the weighted average number of equity shares
outstanding during the year. The weighted average
number of equity shares outstanding during the year
is adjusted for events such as bonus issue, bonus
element in a right issue, shares split & reserve share
splits [consolidation of shares] that have changed
the number of equity shares outstanding, without a
corresponding change in resources. For the purpose
of calculating diluted earnings per share, the net profit
or loss [excluding other comprehensive income] for the
year attributable to equity shareholders & the weighted
average number of shares outstanding during the year
are adjusted for the effects of all dilutive potential
equity shares.

3.20 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 instruments also include derivative
contracts such as foreign exchange forward contracts,
cross currency interest rate swaps, interest rate
swaps, currency options and embedded derivatives in
the host contract.

a. Financial Assets

(i) Initial recognition and measurement

All financial assets are recognized initially at

fair value (plus transaction costs attributable

to the acquisition of the financial assets, in
the case of financial assets are not recorded
at fair value through profit or loss).

(ii) Classifications

The company classifies its financial assets
as subsequently measured at either
amortized cost or fair value depending on the
company’s business model for managing the
financial assets and the contractual cash
flow characteristics of the financial assets.

(iii) Business model assessment

The company assesses the objective of a
business model in which an asset is held at
a portfolio level because this best reflects
the way the business is managed, and
information is provided to management.

Assessment whether contractual cash
flows are solely payments of principal and
interest

For the purposes of this assessment,
‘principal’ is defined as the fair value of
the financial asset on initial recognition.
‘Interest’ is defined as consideration for
the time value of money and for the credit
risk associated with the principal amount
outstanding during a period, for other basic
lending risks, costs (e.g. liquidity risk and
administrative costs), and profit margin.

In assessing whether the contractual cash
flows are solely payments of principal
and interest, the company considers
the contractual terms of the instrument.
This includes assessing whether the
financial asset contains a contractual term
that could change the timing or amount of
contractual cash flows such that it would
not meet this condition.

Financial Assets at amortised cost

A financial asset is measured at amortised
cost only if both of the following conditions
are met:

- It is held within a business model
whose objective is to hold assets to
collect contractual cash flows.

- the contractual terms of the financial
asset represent contractual cash flows
that are solely payments of principal
and interest.

After initial measurement, such financial
assets are subsequently measured at
amortised cost using the EIR method.
Amortised cost is calculated by considering
any discount or premium on acquisition
and fees or costs that are an integral part
of the EIR. The EIR amortisation is included
as finance income in the profit or loss.
The losses arising from impairment are
recognised in the profit or loss.

Financial Assets at Fair Value through Other
Comprehensive Income (FVOCI)

A financial asset is measured at amortized
cost only if both of the following conditions
are met:

- it is held within a business model
whose objective is to hold assets in
order to collect contractual cash flows.

- the contractual terms of the financial
asset represent contractual cash flows
that are solely payments of principal
and interest.

On initial recognition, the Company makes
an irrevocable election on an instrument-by¬
instrument basis to present the subsequent
changes in fair value in other comprehensive
income pertaining to investments in equity
instruments, other than equity investment
which are held for trading. Subsequently,
they are measured at fair value with gains
and losses arising from changes in fair value
recognised in other comprehensive income
and accumulated in the ‘Reserve for equity
instruments through other comprehensive
income’. The cumulative gain or loss is not
reclassified to profit or loss on disposal of
the investments.

Financial Assets at Fair Value through Profit
and Loss (FVTPL)

Investments in equity instruments are
classified as at FVTPL, unless the Company
irrevocably elects on initial recognition
to present subsequent changes in fair
value in other comprehensive income for
investments in equity instruments which are
not held for trading.

Other financial assets are measured at
fair value through profit or loss unless it is
measured at amortised cost or at fair value

through other comprehensive income on
initial recognition. The transaction costs
directly attributable to the acquisition of
financial assets and liabilities at fair value
through profit or loss are immediately
recognised in statement of the profit and
loss.

Investment in Subsidiaries, Jointly
Controlled Entities and Associates

Investment in subsidiaries, jointly controlled
entities and associates are measured at
cost less impairment as per the Ind AS 27
-Separate Financial Statements.

Impairment of investments

The Company reviews its carrying value of
investments carried at cost or amortised
cost annually, or more frequently when
there is indication for impairment. If the
recoverable amount is less than its carrying
amount, the impairment loss is accounted
for.

(iv) Derecognition of financial assets

A financial asset (or, where applicable, a part
of a financial asset or part of a group of similar
financial assets) is primarily derecognized
(i.e. removed from the company’s balance
sheet) when:

- The rights to receive cash flows from
the asset have expired, or

- The company has transferred its rights
to receive cash flows from the asset
or has assumed an obligation to pay
the received cash flows in full without
material delay to a third party under
a ‘pass-through’ arrangement; and
either (a) the company has transferred
substantially all the risks and rewards
of the asset, or (b) the company has
neither transferred nor retained
substantially all the risks and rewards
of the asset, but has transferred control
of the asset.

When the company has transferred its rights
to receive cash flows from an asset or has
entered into a pass-through arrangement,
it evaluates if and to what extent it has
retained the risks and rewards of ownership.
When it has neither transferred nor retained
substantially all of the risks and rewards

of the asset, nor transferred control of the
asset, the company continues to recognize
the transferred asset to the extent of
the company’s continuing involvement.
In that case, the company also recognizes
an associated liability. The transferred asset
and the associated liability are measured
on a basis that reflects the rights and
obligations that the company has retained.

Continuing involvement that takes the form
of a guarantee over the transferred asset 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.

On derecognition of a financial asset, the
difference between the carrying amount of
the asset (or the carrying amount allocated
to the portion of the asset derecognised)
and the sum of (i) the consideration received
(including any new asset obtained less any
new liability assumed) and (ii) any cumulative
gain or loss that had been recognised in the
OCI is recognised in profit or loss.

Impairment of financial assets

The Company assesses the expected credit
losses associated with its assets carried at
amortised cost and FVOCI debt instruments
on a forward-looking basis. The impairment
methodology applied depends on whether
there has been a significant increase in
credit risk.

With regard to trade receivable, the
Company applies the simplified approach
as permitted by the Ind AS 109, Financial
Instruments, which requires expected
lifetime losses to be recognised from the
initial recognition of the trade receivables.

For all other financial assets, expected credit
losses are measured at an amount equal to
the 12 month expected credit losses or at
an amount equal to the life time expected
credit losses if the credit risk on the financial
assets has increased significantly since
initial recognition.

b. Financial Liabilities

i. Initial recognition and measurement

Financial liabilities are classified at initial
recognition as financial liabilities at fair

value through profit or loss or amortised
cost, as appropriate.

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

ii. Subsequent measurement

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

Financial Liabilities measured at amortised
cost

After the initial recognition, interest-bearing
loans and borrowings are subsequently
measured at amortised cost using the EIR
method. Gains and losses are recognised
in profit or loss when the liabilities are
derecognised as well as through the EIR
amortisation process.

Amortised cost is calculated by considering
any discount or premium on acquisition and
fees or costs that are an integral part of the
EIR. The EIR amortisation is included as
finance costs in the statement of profit and
loss.

Financial liabilities at fair value through
profit or loss

Financial liabilities at fair value through profit
or loss include financial liabilities held for
trading and financial liabilities designated
upon initial recognition as at fair value
through profit or loss. Financial liabilities
are classified as held for trading if they are
incurred for the purpose of repurchasing in
the near term.

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

Financial liabilities designated upon initial
recognition at fair value through profit or
loss are designated as such at the initial
date of recognition, and only if the criteria
in the 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 the P&L.
However, the Company may transfer the
cumulative gain or loss within equity. All the

other changes in fair value of such liability
are recognised in the statement of profit or
loss.

iii. Derecognition of financial liabilities

The company derecognises a financial
liability when its contractual obligations are
discharged or cancelled or expire.

c. Modifications of financial assets and financial
liabilities
Financial assets

If the terms of a financial asset are modified, the
company evaluates whether the cash flows of the
modified asset are substantially different. If the
cash flows are substantially different, then the
contractual rights to cash flows from the original
financial asset are deemed to have expired. In this
case, the original financial asset is derecognised
and a new financial asset is recognised at fair
value.

If the cash flows of the modified asset carried at
amortised cost are not substantially different,
then the modification does not result in
derecognition of the financial asset. In this case,
the company recalculates the gross carrying
amount of the financial asset and recognises the
amount arising from adjusting the gross carrying
amount as a modification gain or loss in profit or
loss. If such a modification is carried out because
of financial difficulties of the borrower, then the
gain or loss is presented together with impairment
losses. In other cases, it is presented as interest
income. The gain / loss is recognised in other
equity in case of transaction with shareholders.

Financial liabilities

Borrowings and other financial liabilities are
initially recognised at fair value (net of transaction
costs incurred). Difference between the fair
value and the transaction proceeds on initial is
recognised as an asset / liability based on the
underlying reason for the difference.

Subsequently all financial liabilities are measured
at amortised cost using the effective interest rate
method. The company derecognises a financial
liability when its terms are modified, and the cash
flows of the modified liability are substantially
different. In this case, a new financial liability
based on the modified terms is recognised at
fair value. The difference between the carrying
amount of the financial liability extinguished and

the new financial liability with modified terms
is recognised in profit or loss. The gain / loss is
recognised in other equity in case of transaction
with shareholders.

The Company has computed the Equity
component of the Preference Shares considering
the terms of the RPS to be non-cumulative and
further modified the estimates of future cash
flows.

3.21 Fair Value Measurements

These Standalone Financial Statements are prepared
under the historical cost convention, except certain
financial assets & liabilities measured at fair value
(refer accounting policy on financial instruments) as
per relevant applicable Ind AS.

Fair value is the price that would be received to sell
an asset or paid to transfer a liability in an orderly
transaction between market participants at the
measurement date. The fair value measurement
is based on the presumption that the transaction
to sell the asset or transfer the liability takes place
either in the principal market for the asset or liability,
or in the absence of a principal market, in the most
advantageous market for the asset or liability.
The principal or the most advantageous market must
be accessible to the Company.

Management applies valuation techniques to
determine the fair value of financial instruments
(where active market quotes are not available)
and non-financial assets. This involves developing
estimates and assumptions consistent with how
market participants would price the instrument.
Management bases its assumptions on observable
data as far as possible but this is not always available.
In that case management uses the best information
available. Estimated fair values may vary from the
actual prices that would be achieved in an arm’s length
transaction at the reporting date

The fair value of an asset or a liability is measured
using the assumptions that market participants would
use when pricing the asset or liability, assuming
that market participants act in their economic best
interest. A fair value measurement of a non-financial
asset takes into account a market participant’s ability
to generate economic benefits by using the asset in
its highest & best use or by selling it to another market
participant that would use the asset in its highest &
best use.

The Company uses valuation techniques that are
appropriate in the circumstances & for which sufficient
data are available to measure fair value, maximising
the use of relevant observable inputs & minimising
the use of unobservable inputs. All assets & liabilities
for which fair value is measured or disclosed in the
Standalone Financial Statements are categorized
within the fair value hierarchy, described as follows,
based on the lowest level input that is significant to the
fair value measurement as a whole:

• Level 1 — Quoted (unadjusted) market prices in
active markets for identical assets or liabilities

• Level 2 — Valuation techniques for which the
lowest level input that is significant to the fair
value measurement is directly or indirectly
observable

• Level 3 — Valuation techniques for which the
lowest level input that is significant to the fair
value measurement is unobservable

For assets & liabilities that are recognised in the
Standalone Financial Statements on a recurring
basis, the Company determines whether transfers
have occurred between Levels in the hierarchy by re¬
assessing categorisation (based on the lowest level
input that is significant to the fair value measurement
as a whole) at the end of each reporting period.

3.22 The previous year numbers have been reclassified
wherever necessary. Unless otherwise stated, all
amounts are in Million Indian Rupees. Items reflecting
as 0.00 denotes value less than '' 5000.

3.23 The Ministry of Corporate Affairs (“MCA”) notifies
new standards or amendments to the existing
standards under the Companies (Indian Accounting
Standards) Rules from time to time. In May 2025, the
MCA notified amendments to Ind AS 21, The Effects of
Changes in Foreign Exchange Rates, applicable with
effect from April 1, 2025. The Company has reviewed
the amendment and, based on its evaluation, has
determined that it does not have any significant impact
on its financial statements.

In August 2025, the MCA notified the following
amendments:

1. Ind AS 1, Presentation of Financial Statements

The amendment is applicable with effect from
April 1, 2025 and relates to the classification of

liabilities as current or non-current, including
non-current liabilities with covenants. In the
context of classifying a liability as current, the
amendment removes the requirement that a right
to defer settlement for at least 12 months after
the reporting date must exist. Instead, it requires
that such right should exist and have substance
as at the reporting date. The amendment also
introduces guidance on the classification of
liabilities with covenants. The Company has
assessed these amendments and concluded
that they do not have any impact on its criteria
for classification of liabilities as current or non¬
current.

2. Ind AS 7, Statement of Cash Flows, and Ind AS
107, Financial Instruments: Disclosures

The amendments are applicable with effect from
April 1,2025. The amendment to Ind AS 7 requires
entities to provide information to users of financial
statements regarding the existence of supplier
finance arrangements and to explain the nature
of such arrangements, the carrying amount of
the related liabilities and the range of payment
due dates. Ind AS 107 has also been amended to

include supplier finance arrangements as a factor
that may result in a concentration of liquidity risk.
The Company has reviewed these amendments
and, based on its evaluation, has determined
that they do not have any significant impact on its
financial statements.

3. Ind AS 12, Income Taxes. International Tax
Reform. Pillar Two Model Rules
The amendments are applicable immediately and
provide temporary mandatory relief from deferred
tax accounting in respect of top-up tax. They also
require companies to disclose that they have
applied such relief. The relief applies immediately
and retrospectively. The amendments further
require companies to provide additional
disclosures to compensate for the potential loss
of information resulting from the application
of the relief. Such disclosures are required
for annual reporting periods beginning on or
after April 1, 2025. The Company has applied
the mandatory relief and will evaluate the new
disclosure requirements applicable to its annual
financial statements and provide the necessary
disclosures, as appropriate.

c Terms / rights attached to equity shares:

(i) Equity Shares:

The company has only one class of equity shares having par value of '' 10 per share. Equity shareholders are
entitled to one vote per share held. The dividend provided, if any, by board of directors is subject to approval of
shareholders in Annual General Meeting, except, in case of interim dividend. In the event of liquidation of the
company, the equity shareholders shall be entitled to proportionate share of their holding in the assets remaining
after distribution of all preferential amounts.

(ii) The Company during the preceding 5 years

(A) Has not allotted shares pursuant to contracts without payment received in cash.

(B) Has not issued shares by way of bonus shares.

(C) Has not bought back any shares.

Notes:

i) The portion of profits not distributed among the shareholders are termed as Retained Earnings. The Company may
utilize the retained earnings for making investments for future growth and expansion plans or any other purpose
as approved by the Board of Directors of the Company.

ii) The equity component of redeemable preference shares represents the residual value of the instrument classified
as equity upon initial recognition, after separately recognising the liability component in accordance with the
applicable accounting standards. The purpose of this reserve is to present the equity portion of the compound
financial instrument separately from its liability component and to reflect the amount attributable to the holders’
equity interest. This component forms part of equity and is not subsequently remeasured.

iii) Security premium represents the premium received on issue of shares over and above the face value of Equity
Shares. Such amount is available for utilization in accordance with the Provisions of Section 52 of the Companies
Act, 2013.

iv) The Capital Redemption Reserve is a statutory, non-distributable reserve created on redemption of preference
shares. It is maintained to preserve the company’s capital base and protect the interests of creditors. The reserve
can be used only for issuing fully paid bonus shares and is not available for dividend.

(B) The details of security given for all loans are as under :

(i) The Working Capital is secured as below:

- Second Charge on movable and immovable assets (both present and future) relating to the specific projects
on pari passu basis.

- First charge on current assets (incl. cash flows, receivables, etc), both present and future, of the specific
projects on pari passu basis

(ii) There is no default in repayment of loan and interest thereon as on March 31,2026 and March 31, 2025.

(iii) The Gross book value of the fixed assets as on March 31,2026 charged in favour of the lenders is '' 9072.67 million
(March 31, 2025''8300.94 million)

(iv) For more security details on bank financing, refer Note-39

(v) The borrowings obtained by the company from banks have been applied for the purposes for which such loans
were taken.

33 Employee Benefits:

(i) Short term employee benefits

AH employee benefits payable wholly within twelve months of rendering the service are classified as short term
employee benefits. Benefits such as Salaries, incentives & allowances, short terms compensated absences, etc., &
the expected cost of bonus, ex-gratia are recognised in the year in which the employee renders the related service.

(ii) Long term employee benefits
(a) Gratuity (Unfunded):

The Company provides for gratuity for employees in India as per the Payment of Gratuity Act, 1972. Employees who
are in continuous service for a period of 5 years are eligible for gratuity. The amount of gratuity payable on
retirement/termination is the employees last drawn basic salary per month computed proportionately for 15 days
salary multiplied for the number of years of service. The gratuity plan is an unfunded plan. The Group has made
provision in the accounts for Gratuity based on actuarial valuation. The particulars under the Ind AS 19 “Employee
Benefits” furnished below are those which are relevant and available to the Group for this year.

Characteristics of defined benefit plan

The entity has a defined benefit gratuity plan in India (unfunded). The entity’s defined benefit gratuity plan is a
final salary plan for employees. During the year, there were no plan amendments, curtailments and settlements.

Risks associated with defined benefit plan

Gratuity is a defined benefit plan and entity is exposed to the Following Risks:

(i) Interest rate risk: A fall in the discount rate which is linked to the G.Sec. Rate will increase the present value
of the liability requiring higher provision.

(ii) Salary Risk: The present value of the defined benefit plan liability is calculated by reference to the future
salaries of members. As such, an increase in the salary of the members more than assumed level will
increase the plan’s liability.

(iii) Asset Liability Matching Risk: The plan faces the ALM risk as to the matching cash flow. entity has to
manage pay-out based on pay as you go basis from own funds.

(iv) Mortality risk: Since the benefits under the plan is not payable for life time and payable till retirement age
only, plan does not have any longevity risk.

The sensitivity analysis have been determined based on reasonably possible changes of the respective
assumptions occurring at the end of the reporting period, while holding all other assumptions constant.

The sensitivity analysis presented above may not be representative of the actual change in the Defined Benefit
Obligation as it is unlikely that the change in assumptions would occur in isolation of one another as some of the
assumptions may be correlated.

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

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

(b) Leave Encashment (unfunded):

The employees of the company are entitled to leave as per the leave policy of the company. The liability on account
of accumulated leave as on last day of the accounting year is recognised [net of the fair value of plan assets as at
the balance sheet date] at present value of the defined obligation at the balance sheet date based on the actuarial
valuation carried out by an independent actuary using projected unit credit method.

34 Financial risk management:

The Company’s activities expose it to credit risk, liquidity risk, interest rate risk, price risk and market risk. This note
explains the sources of risk which the entity is exposed to & how the entity manages the risk & the related impact
in the Standalone Financial Statements. The Companies risk management is done in close co-ordination with the
board of directors & focuses on actively securing the Companies short, medium & long-term cash flows by minimizing
the exposure to volatile financial markets. Long-term financial investments are managed to generate lasting returns.
The Company does not actively engage in the trading of financial assets for speculative purposes nor does it write
options. The most significant financial risks to which the Company is exposed are described below:

(i) Credit risk:

Credit risk arises from the possibility that counter party may not be able to settle their obligations as agreed.
The Company is exposed to credit risk from trade receivables, bank deposits, loans,investments and other
financial assets.

Bank deposits are placed with reputed banks / financial institutions. Hence, there is no significant credit risk on
such fixed deposits.

The Company periodically assesses the financial reliability of the counter party, taking into account the
financial condition, current economic trends, & analysis of historical bad debts & ageing of accounts receivable.
Individual limits are set accordingly.

The Company trades with recognized & credit worthy third parties and balance credit sales it’s against securities
in the form of customer security deposits. It is the Companies policy that all customers who wish to trade on
credit terms are subject to credit verification procedures. In addition, trade receivable balances are monitored on
an on-going basis with the result that the Companies exposure to bad debts is not significant.

An impairment analysis is performed at each reporting date on an individual basis for major clients. In addition, a
large number of minor receivables are grouped into homogenous groups & assessed for impairment collectively.
Also, the Company does not enter into sales transaction with customers having credit loss history.

(ii) 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.

Management monitors rolling forecasts of the Company’s liquidity position and cash and cash equivalents on
the basis of expected cash flows. Short term liquidity requirements comprises mainly of trade payables arising in
the normal course of business and is managed primarily through internal accruals and/or short term borrowings.
Long term liquidity requirement is assessed by the management on periodical basis and managed through
internal accruals as well as from undrawn borrowing facilities.

(iii) Maturities of financial liabilities:

The tables below analyse the Companies financial liabilities into relevant maturity groupings based on their
contractual maturities for all non-derivative financial liabilities. The amounts disclosed in the table are the
contractual undiscounted cash flows. Balances due within 12 months equal their carrying balances as the impact
of discounting is not significant.

(iv) Market risk:

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because
of changes in market prices,such as foreign exchange rates, interest rates & equity prices — will affect the
Company’s income or the value of its holdings of financial instruments.

(v) Commodity Price Risk :

Commodity price risk arises from the change in the commodity prices that may have an adverse effect on the
Company’s result in the current reporting period and future periods. The company’s exposure to commodity risk is
in relation to volatility in prices of natural gas. The administered price determined by the PPAC cell of Petroleum and
Natural Gas Regulatory Board minimises the company’s exposure to price risk . The Company manages its risk by
maintaining a balanced procurement at administered and spot purchase rates. Further, risk arising on account of
fluctuationsin price of natural gas ismitigated by company’sabilityto pass on thefluctuations in prices to customers.
The Company invests its temporary surplus funds in various mutual funds and fixed deposits. In order to manage
its price risk arising from investments, the Company diversifies its portfolio in accordance with the limits set by
the risk management policies.

(vi) Foreign exchange risk:

The Company is not directly exposed to foreign exchange risk as there is no direct foreign currency transaction
is entered into by Company. Although payments against Gas procurement bills are in INR however they are
denominated in USD, hence company proposes to start suitable Hedging in addition to passing on the cost to the
end consumers.

(vii) Interest Rate Risk:

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of
changes in market interest rates. The Companies exposure to the risk of changes in market interest rates relates
primarily to the Companies long-term debt obligations with floating interest rates.

35 Capital Management:

Total equity as shown in the balance sheet includes equity share capital, general reserves, capital redemption reserve,
retained earnings,etc.

The company’s objective when managing capital is to safeguard its ability to continue as a going concern so that it can
continue to provide returns for shareholders & benefits for other stakeholders and maintain an optimal structure to
reduce the cost of capital.

Net Debt = Total term loan borrowings less cash & cash equivalents including current investments in mutual funds.

Total ‘equity’ means share capital issued (Equity Shares & Equity component of Preference Shares) & accumulated
reserves.

The Company’s policy is to maintain a stable and strong capital structure with a focus on total equity so as to maintain
investor, creditors and market confidence and to sustain future development and growth of its business. The Company
will take appropriate steps in order to maintain, or if necessary, adjust its capital structure. The management monitors
the return on capital as well as the level of dividends to shareholders.

(i) AH transactions with related parties are placed before the Audit Committee for its prior approval. An omnibus
approval from Audit Committee is obtained for the related party transactions which are repetitive in nature.
All transactions with related parties entered into during the year under review were at arm’s length basis and in the
ordinary course of business and in accordance with the provisions of the Act and the rules made thereunder,the
SEBI Listing Regulations and your Company’s Policy on Related Party Transactions.”

(ii) Remuneration to Key Managerial Personnel does not include provision for Leave Encashment and Gratuity as it is
provided in the books of account on the basis of actuarial valuation for the Group as a whole and hence individual
figures cannot be identified.

(iii) All the amounts reported in above are exclusive of GST wherever applicable.

3. The company has extended Corporate Guarantee against the loans availed from banks and financial institutions
by associate entities . The aggregate amount of corporate guarantee outstanding as on March 31, 2026 was
'' 491.30 Millions (March 31,2025''481.10 Millions).

4. The banks have issued Performance Bank Guarantee in favor of PNGRB (regulatory board) on company’s behalf.
The aggregate amount of performance bank guarantee outstanding as on March 31, 2026 was '' 1581.20 Millions
(March 31, 2025 '' 1581.20 Millions).

*The Company has filed an appeal against the said order before the Hon’ble Appellate Authority Commissioner (Appeals), Central
GST on April 28, 2025.

The company has received judgement from the Hon’ble Appellate Authority Commissioner (Appeals), Central GST dated January 16,
2026 and the judgement is in favour of the company. Hence, there is no liability to be paid.

39 The Company has taken limits for issuance of Performance Bank Guarantee (PBG) in favor of PNGRB,
(except Performance bank guarantee for Diu, Gir and Somnath GA, which is unsecured) which is secured
as under-

a First Charge on movable and immovable assets (both present and future) relating to the specific projects on pari
passu basis.

b First charge on current assets (incl. cash flows, receivables, etc), both present and future, of the specific projects
on pari passu basis

40 Corporate Social Responsibility:

As per Section 135 of the Companies Act, 2013, a Corporate Social Responsibility (CSR) committee has been formed
by the Company. The CSR activities of the Company are generally been carried out by making payment contribution to
eligible Trusts. The Trusts carry out the CSR activities as specified in Schedule VII to the Companies Act, 2013 on behalf
of the Company.

Refer note 36 (b) for Related Party Transactions

Refer Annexure C-Annual Report on Corporate Social Responsibility Activity of the Board Report.

41 Segment Information

a Description of segments and principal activities

The Company has a single operating segment that is “Sale of Natural Gas”. Accordingly, the segment revenue, segment
results, segment assets & segment liabilities are reflected in the Standalone Financial Statements themselves as at &
for the period/financial year ended March 26 and March 25.

b Entity wide disclosures

i Information about products and services: The Company is in a single line of business of “Sale of Natural Gas”.

ii Geographical Information: The company operates presently in the business of city gas distribution in India.
Accordingly, revenue from customers earned and non-current asset are located, in India.

iii Information about major customers: In the current year, revenue from none of the external customer individually
accounted for more than ten percent of the revenue.

42 Registration of charges or satisfaction with Registrar of Companies (ROC)

There is no charge or satisfaction yet to be registered with the Registrar of Companies beyond the statutory period.

43 Details of Benami Property held

The company does not hold any benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988)
and rules made thereunder, hence no proceeding initiated or pending against the company under the said Act and
Rules.

44 Loans and advances granted to specified person

Except as stated in the notes to accounts and financial statement, there is no other loan or advance granted to specified
persons namely promoters, directors, KMPs and related parties.

45 Land, Building and Plant & Machinery on lease for more than 12 months

The Company has taken Land, Building and Plant & Machinery on Lease for the period of more than 12 Months.
The Company has taken other Buildings also on lease for the period of 12 months or less for which the company applies
the “Short-term leases” recognition exemptions. Disclosures as per Ind AS 116 - Leases are as follows:

46 Utilisation of borrowed funds, share premium and other funds

The Company has not received any fund from any person or entity with the understanding that the Company would
directly or indirectly lend or invest in other person or entity identified in any manner whatsoever by or on behalf of
the funding party (ultimate beneficiary) or provided any guarantee or security or the like on behalf of the ultimate
beneficiary.

The Company have 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

47 Compliance with number of layers of companies

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

48 Details of Crypto Currency or Virtual Currency

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

49 Undisclosed Income

There is no transaction, which has not been recorded in books of accounts, that has been surrendered or disclosed as
income during the year in tax assessments under the Income Tax Act, 1961.

50 Relationship with struck off companies

The Company do not have any transactions with companies struck off under section 248 of the Companies Act, 2013
or section 560 of Companies Act, 1956

51 Wilful Defaulter

The company is not declared as wilful defaulter by any bank or financial institution or other lender.

52 Revaluation of property, Plant and equipment

The Group has not revalued its property, plant and equipment (including right-of-use assets) or intangible assets or
both during year ended March 31,2026 and March 31,2025.

53 Details regarding Financial Instruments
Fair Value Hierarchy

The fair value hierarchy is based on inputs to valuation techniques that are used to measure fair value that are either
observable or unobservable and consists of the following three levels:

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

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

Level-3 : Inputs are not based on observable market data (unobservable inputs). Fair values are determined in whole or
in part using a valuation model based on the assumptions that are neither supported by prices from observable current
market transactions in the same instrument nor are they based on available market data.

54 Revenue from contracts with customers :

Sale of Natural gas is the main activity of city gas distribution business and other operating income is incidental to sale
of natural gas. Company sells and distributes natural gas in India.

Sale of natural gas includes excise duty but excludes VAT and GST collected from the customers on behalf of the
Government. All the revenue mentioned above are earned by transfer of goods or services at a point of time.

Performance obligations -Connection, Service and Fitting Income

Connection charges from customers are Recognised when the performance obligation is satisfied:

(i) Industrial & Commercial Customers: The performance obligations as per the contractual arrangement with the
customer is to deliver gas as per the contract. Consequently, the connection charges are to be recognised when
the amount is received from the Customer.

(ii) Domestic Customer: The connection charges are to be recognised when the amount is received from the
Customer. It is reasonably expected by the Company that the gas is procured by the customer and supplied by the
Company on a Regular basis. Consequently the connection charges are to be recognised when the connection
facility is provided.

55 Following are the details of loans and advances in nature of loans given to subsidiaries, associates and other entities
in which directors are interested in terms of regulation 53(f) read together with Para A of Schedule V of SEBI (Listing
Obligations and Disclosure Requirements) 2015, as amended

56 For Ni-Hon Loan and impairment

The Company had as per board resolution dated September 24, 2021, extended a loan of '' 74.90 million to its joint
venture, Ni-Hon Cylinders Pvt. Ltd., on October 19, 2021, for a period of 18 months at an interest rate of 10.50% per
annum, to support the operational requirements of the joint venture. The loan tenure was subsequently extended until
July 31,2024.

During the current financial year, the Company has recognized an impairment loss of '' 50.94 million on loans, interest,
and other receivables from its joint venture, Ni-Hon Cylinders Pvt. Ltd., due to uncertainty regarding recoverability of
the outstanding balances. The joint venture has not carried out any business operations during the last three years and
its net worth is negative. The financial statements of the joint venture, however, have been prepared on a going concern
basis. The impairment assessment has been carried out based on management’s evaluation of the financial position,
operational performance and other relevant factors relating to the joint venture.

57 For Land Advances

The Company had acquired land at a cost of '' 183.23 million in the Patan District for the purpose of developing a solar
park. As of March 2026, an advance of '' 69.16 million remains outstanding and 69.16 for the March 2025. which was
originally extended towards the proposed acquisition of additional land in the area.Subsequently, the Company is in
the process of acquiring additional land against the said advances.

58 For Advances to Farm Gas Private limited (FGPL)

As on March 31, 2026, outstanding advances in the nature of loan & receivables amount to '' 122.84 million(as on
March 31, 2025 '' 134.12 million) classified as advances to suppliers and other receivables.

The Company is actively pursuing the recovery of other business advances amounting to '' 122.84 million from FGPL.
FGPL is going through the recovery phase after disruption in plant operations during majority part of financial year
2024-25. These matters have been taken up with the management of FGPL for realization of these funds.

59 Inter Corporate Loan to Venuka Polymers Private Limited (VPPL)

In line with the approval of the Board in its meeting held in November 2025, the company has entered into an unsecured
inter-corporate loan agreement with JV Company wherein the advances outstanding in JV company has been
converted to loans in M/s. Venuka Polymers Private Limited (VPPL) for 100.00 Million with effect from January 23, 2026.
Balance outstanding as on March 31, 2026 of '' 101.68 million including accrued interest and '' 6.78 million against
capital advances & other receivables.

60 Investment in Redeemable Preference Share of Venuka Polymers Private Limited (VPPL)

The Company has invested '' 37.35 million in the redeemable preference share capital of VPPL, its joint venture. Out of
the aforesaid investment, redeemable preference shares aggregating '' 22.35 million, together with dividend accrued
thereon amounting to '' 4.70 million, were due for redemption during the year. As at the balance sheet date, these
amounts remain outstanding.

The management of VPPL has request extension for redemption of the said preference shares, pursuant to which the
extension in the tenor of the redeemable preference share capital is under discussion. Based on evaluation of that
plan, the underlying business and cash flow projections of VPPL, the Company has assessed that the amounts due are

fully recoverable and no impairment is considered necessary in the carrying value of the investment and the dividend
receivable as at the balance sheet date.

61 Investment in Redeemable Preference Share of Farm Gas Private Limited (FGPL)

The Company has invested '' 44.50 million in the redeemable preference share capital of FGPL, its associate company.
Out of the aforesaid investment, redeemable preference shares aggregating '' 15.90 million, together with dividend
accrued thereon amounting to '' 3.34 million, were due for redemption during the year. As at the balance sheet, these
amounts remain outstanding. Based on the assessment that the amounts are expected to be received in due course,
considering the financial commitment and support from the majority shareholder of FGPL. Accordingly, no adjustment
has been made to the carrying amount of the aforesaid investment and dividend due thereon.

62a Events Occurring After the Balance Sheet Date :

The Company evaluates events and transactions that occur subsequent to the balance sheet date but prior to approval
of the financial statements to determine the necessity for recognition and/or reporting of any of these events and
transactions in the financial statements. As on date of approval of these financial statements, there is no subsequent
event to be recognized or reported that is not already disclosed.

62b The Board of Directors have recommended final equity dividend of '' 1.50 (15%) per equity share of the face value of 10
each for the financial year 2025-26. This proposed dividend is subject to approval of the shareholders in the ensuing
annual general meeting.

3.16 Provisions, Contingent Liabilities & Contingent
Assets

Provision is recognised when the Company has
a present obligation as a result of past events &
it is probable that the outflow of resources will be
required to settle the obligation & in respect of which
reliable estimates can be made. A disclosure for
contingent liability is made when there is a possible
obligation that may, but probably will not require
an outflow of resources. When there is a possible
obligation or a present obligation in respect of which
the likelihood of outflow of resources is remote, no
provision/ disclosure is made. Contingent assets
are not recognised in the financial statement.

Provisions & contingencies are reviewed at each
balance sheet date & adjusted to reflect the correct
management estimates.

3.17 Statement of Cash Flows

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

3.18 Events occurring after the Reporting Date

Adjusting events (that provides evidence of condition
that existed at the balance sheet date) occurring
after the balance sheet date are recognized in the
Standalone Financial Statements. Material non
adjusting events (that are inductive of conditions that
arose subsequent to the balance sheet date) occurring
after the balance sheet date that represents material
change & commitment affecting the financial position
are disclosed in the Directors’ Report.

3.19 Earnings per Share

Basic earnings per share are calculated by
dividing the net profit or loss [excluding other
comprehensive income] for the year attributable
to equity shareholders by the weighted average
number of equity shares outstanding during the
year. The weighted average number of equity shares
outstanding during the year is adjusted for events
such as bonus issue, bonus element in a right issue,
shares split & reserve share splits [consolidation of
shares] that have changed the number of equity
shares outstanding, without a corresponding
change in resources. For the purpose of calculating
diluted earnings per share, the net profit or loss
[excluding other comprehensive income] for the
year attributable to equity shareholders & the
weighted average number of shares outstanding
during the year are adjusted for the effects of all
dilutive potential equity shares.

3.20 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
instruments also include derivative contracts such
as foreign exchange forward contracts, cross
currency interest rate swaps, interest rate swaps,
currency options and embedded derivatives in
the host contract.

a. Financial Assets

(i) Initial recognition and measurement

All financial assets are recognized initially
at fair value (plus transaction costs
attributable to the acquisition of the
financial assets, in the case of financial
assets are not recorded at fair value
through profit or loss).

(ii) Classifications

The company classifies its financial assets
as subsequently measured at either
amortized cost or fair value depending
on the company’s business model for
managing the financial assets and the
contractual cash flow characteristics of
the financial assets.

(iii) Business model assessment

The company assesses the objective of a
business model in which an asset is held at
a portfolio level because this best reflects
the way the business is managed, and
information is provided to management.

Assessment whether contractual cash
flows are solely payments of principal
and interest

For the purposes of this assessment,
‘principal’ is defined as the fair value of
the financial asset on initial recognition.
‘Interest’ is defined as consideration for
the time value of money and for the credit
risk associated with the principal amount
outstanding during a period, for other basic
lending risks, costs (e.g. liquidity risk and
administrative costs), and profit margin.

In assessing whether the contractual cash
flows are solely payments of principal
and interest, the company considers the
contractual terms of the instrument. This
includes assessing whether the financial
asset contains a contractual term that
could change the timing or amount of
contractual cash flows such that it would
not meet this condition.

Financial Assets at amortised cost

A financial asset is measured at
amortised cost only if both of the following
conditions are met:

- It is held within a business model
whose objective is to hold assets to
collect contractual cash flows.

- the contractual terms of the financial
asset represents contractual cash
flows that are solely payments of
principal and interest.

After initial measurement, such financial
assets are subsequently measured at
amortised cost using the EIR method.
Amortised cost is calculated by
considering any discount or premium on
acquisition and fees or costs that are an
integral part of the EIR. The EIR amortisation
is included as finance income in the profit
or loss. The losses arising from impairment
are recognised in the profit or loss.

Financial Assets at Fair Value through
Other Comprehensive Income (FVOCI)

A financial asset is measured at
amortized cost only if both of the following
conditions are met:

- it is held within a business model
whose objective is to hold assets in
order to collect contractual cash flows.

- the contractual terms of the financial
asset represent contractual cash
flows that are solely payments of
principal and interest.

On initial recognition, the Company makes
an irrevocable election on an instrument-
by-instrument basis to present the
subsequent changes in fair value in other
comprehensive income pertaining to
investments in equity instruments, other
than equity investment which are held for
trading. Subsequently, they are measured
at fair value with gains and losses arising
from changes in fair value recognised
in other comprehensive income and
accumulated in the ''Reserve for equity
instruments through other comprehensive
income''. The cumulative gain or loss is not
reclassified to profit or loss on disposal of
the investments.

Financial Assets at Fair Value through
Profit and Loss (FVTPL)

Investments in equity instruments are
classified as at FVTPL, unless the Company
irrevocably elects on initial recognition
to present subsequent changes in fair
value in other comprehensive income for
investments in equity instruments which
are not held for trading.

Other financial assets are measured at
fair value through profit or loss unless it is
measured at amortised cost or at fair value
through other comprehensive income on
initial recognition. The transaction costs
directly attributable to the acquisition of
financial assets and liabilities at fair value
through profit or loss are immediately
recognised in statement of the profit and loss.

Investment in Subsidiaries, Jointly
Controlled Entities and Associates

Investment in subsidiaries, jointly controlled
entities and associates are measured at
cost less impairment as per the Ind AS 27
-Separate Financial Statements.

Impairment of investments

The Company reviews its carrying value of
investments carried at cost or amortised cost
annually, or more frequently when there is
indication for impairment. If the recoverable
amount is less than its carrying amount, the
impairment loss is accounted for.

(iv) Derecognition of financial assets

A financial asset (or, where applicable, a
part of a financial asset or part of a group
of similar financial assets) is primarily
derecognized (i.e. removed from the
company’s balance sheet) when:

- The rights to receive cash flows from
the asset have expired, or

- The company has transferred its
rights to receive cash flows from the
asset or has assumed an obligation
to pay the received cash flows in full
without material delay to a third party
under a ‘pass-through’ arrangement;
and either (a) the company has
transferred substantially all the risks
and rewards of the asset, or (b) the
company has neither transferred nor
retained substantially all the risks
and rewards of the asset, but has
transferred control of the asset.

When the company has transferred
its rights to receive cash flows from an
asset or has entered into a pass-through
arrangement, it evaluates if and to
what extent it has retained the risks and
rewards of ownership. When it has neither
transferred nor retained substantially
all of the risks and rewards of the asset,
nor transferred control of the asset, the
company continues to recognize the
transferred asset to the extent of the
company’s continuing involvement. In that
case, the company also recognizes an
associated liability. The transferred asset
and the associated liability are measured
on a basis that reflects the rights and
obligations that the company has retained.

Continuing involvement that takes the form
of a guarantee over the transferred asset
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.

On derecognition of a financial asset, the
difference between the carrying amount
of the asset (or the carrying amount
allocated to the portion of the asset
derecognised) and the sum of (i) the
consideration received (including any
new asset obtained less any new liability

assumed) and (ii) any cumulative gain or
loss that had been recognised in the OCI is
recognised in profit or loss.

Impairment of financial assets

The Company assesses the expected
credit losses associated with its assets
carried at amortised cost and FVOCI debt
instruments on a forward-looking basis.
The impairment methodology applied
depends on whether there has been a
significant increase in credit risk.

With regard to trade receivable, the
Company applies the simplified approach
as permitted by the Ind AS 109, Financial
Instruments, which requires expected
lifetime losses to be recognised from the
initial recognition of the trade receivables.

For all other financial assets, expected
credit losses are measured at an amount
equal to the 12 month expected credit
losses or at an amount equal to the life
time expected credit losses if the credit
risk on the financial assets has increased
significantly since initial recognition.

b. Financial Liabilities

i. Initial recognition and measurement

Financial liabilities are classified at initial
recognition as financial liabilities at fair
value through profit or loss or amortised
cost, as appropriate.

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

ii. Subsequent measurement

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

Financial Liabilities measured at
amortised cost

After the initial recognition, interest¬
bearing loans and borrowings are
subsequently measured at amortised cost
using the EIR method. Gains and losses
are recognised in profit or loss when the
liabilities are derecognised as well as
through the EIR amortisation process.

Amortised cost is calculated by considering
any discount or premium on acquisition and
fees or costs that are an integral part of the
EIR. The EIR amortisation is included as finance
costs in the statement of profit and loss.

Financial liabilities at fair value through
profit or loss

Financial liabilities at fair value through
profit or loss include financial liabilities
held for trading and financial liabilities
designated upon initial recognition as at
fair value through profit or loss. Financial
liabilities are classified as held for trading
if they are incurred for the purpose of
repurchasing in the near term.

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

Financial liabilities designated upon initial
recognition at fair value through profit or
loss are designated as such at the initial
date of recognition, and only if the criteria
in the 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 the P&L.
However, the Company may transfer the
cumulative gain or loss within equity. All the
other changes in fair value of such liability are
recognised in the statement of profit or loss.

iii. Derecognition of financial liabilities

The company derecognises a financial
liability when its contractual obligations
are discharged or cancelled or expire.

c. Modifications of financial assets and financial
liabilities

Financial assets

If the terms of a financial asset are modified,
the company evaluates whether the cash flows
of the modified asset are substantially different.
If the cash flows are substantially different, then
the contractual rights to cash flows from the
original financial asset are deemed to have
expired. In this case, the original financial asset
is derecognised and a new financial asset is
recognised at fair value.

If the cash flows of the modified asset carried at
amortised cost are not substantially different,
then the modification does not result in
derecognition of the financial asset. In this case,
the company recalculates the gross carrying

amount of the financial asset and recognises
the amount arising from adjusting the gross
carrying amount as a modification gain or
loss in profit or loss. If such a modification is
carried out because of financial difficulties of
the borrower, then the gain or loss is presented
together with impairment losses. In other cases,
it is presented as interest income. The gain
/ loss is recognised in other equity in case of
transaction with shareholders.

Financial liabilities

Borrowings and other financial liabilities
are initially recognised at fair value (net of
transaction costs incurred). Difference between
the fair value and the transaction proceeds on
initial is recognised as an asset / liability based
on the underlying reason for the difference.

Subsequently all financial liabilities are measured
at amortised cost using the effective interest
rate method. The company derecognises a
financial liability when its terms are modified,
and the cash flows of the modified liability
are substantially different. In this case, a new
financial liability based on the modified terms is
recognised at fair value. The difference between
the carrying amount of the financial liability
extinguished and the new financial liability with
modified terms is recognised in profit or loss. The
gain / loss is recognised in other equity in case
of transaction with shareholders.

The Company has computed the Equity
component of the Preference Shares
considering the terms of the RPS to be non¬
cumulative and further modified the estimates
of future cash flows.

3.21 Fair Value Measurements

These Standalone Financial Statements are
prepared under the historical cost convention,
except certain financial assets & liabilities measured
at fair value (refer accounting policy on financial
instruments) as per relevant applicable Ind AS.

Fair value is the price that would be received to sell
an asset or paid to transfer a liability in an orderly
transaction between market participants at the
measurement date. The fair value measurement
is based on the presumption that the transaction
to sell the asset or transfer the liability takes place
either in the principal market for the asset or liability,
or in the absence of a principal market, in the most
advantageous market for the asset or liability. The
principal or the most advantageous market must
be accessible to the Company.

Management applies valuation techniques to
determine the fair value of financial instruments
(where active market quotes are not available)
and non-financial assets. This involves developing
estimates and assumptions consistent with how
market participants would price the instrument.
Management bases its assumptions on observable
data as far as possible but this is not always
available. In that case management uses the best
information available. Estimated fair values may
vary from the actual prices that would be achieved
in an arm’s length transaction at the reporting date

The fair value of an asset or a liability is measured
using the assumptions that market participants
would use when pricing the asset or liability,
assuming that market participants act in their
economic best interest. A fair value measurement of
a non-financial asset takes into account a market
participant''s ability to generate economic benefits
by using the asset in its highest & best use or by
selling it to another market participant that would
use the asset in its highest & best use.

The Company uses valuation techniques that
are appropriate in the circumstances & for which
sufficient data are available to measure fair
value, maximising the use of relevant observable
inputs & minimising the use of unobservable
inputs. All assets & liabilities for which fair value is
measured or disclosed in the Standalone Financial
Statements are categorized within the fair value
hierarchy, described as follows, based on the
lowest level input that is significant to the fair value
measurement as a whole:

• Level 1 — Quoted (unadjusted) market prices in
active markets for identical assets or liabilities

• Level 2 — Valuation techniques for which
the lowest level input that is significant to
the fair value measurement is directly or
indirectly observable

• Level 3 — Valuation techniques for which the
lowest level input that is significant to the fair
value measurement is unobservable

For assets & liabilities that are recognised in the
Standalone Financial Statements on a recurring
basis, the Company determines whether
transfers have occurred between Levels in
the hierarchy by re-assessing categorisation
(based on the lowest level input that is
significant to the fair value measurement as a
whole) at the end of each reporting period.

3.22 The previous year numbers have been reclassified
wherever necessary. Unless otherwise stated,
all amounts are in Million Indian Rupees. Items
reflecting as 0.00 denotes value less than? 5000.

3.23 3.23 Ministry of Corporate Affairs (“MCA”) notifies
new standards or amendments to the existing
standards under Companies (Indian Accounting
Standards) Rules as issued from time to time.
MCA has notified Ind AS - 117 Insurance Contracts
and amendments to Ind AS 116 - Leases, relating
to sale and leaseback transactions, applicable to
the Company w.e.f. April 1, 2024. The Company has
reviewed the new pronouncements and based on
its evaluation has determined that it does not have
any significant impact in its financial statements.

C Terms / rights attached to equity shares:

(i) Equity Shares:

The company has only one class of equity shares having par value ofH 10 per share. Equity shareholders are
entitled to one vote per share held. The dividend provided, if any, by board of directors is subject to approval
of shareholders in Annual General Meeting, except, in case of interim dividend. In the event of liquidation of
the company, the equity shareholders shall be entitled to proportionate share of their holding in the assets
remaining after distribution of all preferential amounts.

(ii) Redeemable Non- Cumulative Preference Shares (rps):

The preference shares carries redemption period of 10 years from the date of issuance. The dividend provided,
if any, by board of directors is subject to approval of shareholders in Annual General Meeting, except, in case
of interim dividend. In the event of liquidation of the company, the equity shareholders shall be entitled to
proportionate share of their holding in the assets remaining after distribution of all preferential amounts.

(iii) The Company during the preceding 5 years

(a) Has not allotted shares pursuant to contracts without payment received in cash.

(b) Has not issued shares by way of bonus shares.

(c) Has not bought back any shares.

(b) The details of security given for all loans are as under :

(i) The Rupee Term Loan is secured as below:

- First Charge on movable and immovable assets (both present and future) relating to the specific
projects on pari passu basis.

- First charge on the Trust and Retention Account of the specific project on pari passu basis.

- First charge on current assets (incl. cash flows, receivables, etc), both present and future of the
specific projects on pari passu basis.

(ii) The Working Capital is secured as below:

- Second Charge on movable and immovable assets (both present and future) relating to the specific
projects on pari passu basis.

- First charge on current assets (incl. cash flows, receivables, etc), both present and future of the
specific projects on pari passu basis

(iii) There is no default in repayment of loan and interest thereon as on 31st March, 2025 and 31 March, 2024.

(iv) The Gross book value of the fixed assets as on March 31, 2025 charged in favour of the lenders isH 8300.94

million (March 31, 2024H 7075.71 million)

(v) For more security details on bank financing, refer Note - 39

(vi) The borrowings obtained by the company from banks have been applied for the purposes for which

such loans were taken.

(ii) Long term employee benefits
(a) Gratuity (Unfunded):

The Company provides for gratuity for employees in India as per the Payment of Gratuity Act, 1972. Employees
who are in continuous service for a period of 5 years are eligible for gratuity. The amount of gratuity payable
on retirement/termination is the employees last drawn basic salary per month computed proportionately for
15 days salary multiplied for the number of years of service. The gratuity plan is an unfunded plan. The Group
has made provision in the accounts for Gratuity based on actuarial valuation. The particulars under the Ind AS
19 "Employee Benefits” furnished below are those which are relevant and available to the Group for this year.

Characteristics of defined benefit plan

The entity has a defined benefit gratuity plan in India (unfunded). The entity’s defined benefit gratuity plan is
a final salary plan for employees.Gratuity is paid from entity as and when it becomes due and is paid as per
entity scheme for Gratuity.

During the year, there were no plan amendments, curtailments and settlements.

Risks associated with defined benefit plan

Gratuity is a defined benefit plan and entity is exposed to the Following Risks:

(i) Interest rate risk: A fall in the discount rate which is linked to the G.Sec. Rate will increase the present
value of the liability requiring higher provision.

(ii) Salary Risk: The present value of the defined benefit plan liability is calculated by reference to the future
salaries of members. As such, an increase in the salary of the members more than assumed level will
increase the plan''s liability.

(iii) Asset Liability Matching Risk: The plan faces the ALM risk as to the matching cash flow. Entity has to
manage pay-out based on pay as you go basis from own funds.

(iv) Mortality risk: Since the benefits under the plan is not payable for life time and payable till retirement
age only, plan does not have any longevity risk.

Salary escalation & attrition rate are considered as advised by the Company; they appear to be in line with the
industry practice considering promotion and demand & supply of the employees.

During the year, there were no plan amendments, curtailments and settlements.

Any benefit payment and contribution to plan assets is considered to occur at the end of the year to depict
liability and fund movement in the disclosures.

#The rate of discount is considered based on market yield on Government Bonds having currency & terms in consistence with the currency
& terms of the post-employment benefit obligations.

34 Financial risk management:

The Company''s activities expose it to credit risk, liquidity risk, interest rate risk, price risk and market risk. This note
explains the sources of risk which the entity is exposed to & how the entity manages the risk & the related impact in
the Standalone Financial Statements. The Company’s risk management is done in close co-ordination with the board
of directors & focuses on actively securing the Company’s short, medium & long-term cash flows by minimizing the
exposure to volatile financial markets. Long-term financial investments are managed to generate lasting returns. The
Company does not actively engage in the trading of financial assets for speculative purposes nor does it write options.
The most significant financial risks to which the Company is exposed are described below:

(i) Credit risk:

Credit risk arises from the possibility that counter party may not be able to settle their obligations as agreed.
The Company is exposed to credit risk from trade receivables, bank deposits, loans,investments and other
financial assets.

Bank deposits are placed with reputed banks / financial institutions. Hence, there is no significant credit risk on
such fixed deposits.

The Company periodically assesses the financial reliability of the counter party, taking into account the financial
condition, current economic trends, & analysis of historical bad debts & ageing of accounts receivable. Individual
limits are set accordingly.

The Company trades with recognized & credit worthy third parties and balance credit sales it''s against securities
in the form of customer security deposits. It is the Company’s policy that all customers who wish to trade on credit
terms are subject to credit verification procedures. In addition, trade receivable balances are monitored on an
on-going basis with the result that the Company’s exposure to bad debts is not significant.

An impairment analysis is performed at each reporting date on an individual basis for major clients. In addition,
a large number of minor receivables are grouped into homogeneous groups & assessed for impairment
collectively. The calculation is based on exchange losses historical data. Also, the Company does not enter into
sales transaction with customers having credit loss history.

There is no significant credit risk with related parties of the Company. Adequate expected credit losses are
recognized as per the assessments.

(ii) 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.

Management monitors rolling forecasts of the Company’s liquidity position and cash and cash equivalents on
the basis of expected cash flows. Short term liquidity requirements comprises mainly of trade payables arising in
the normal course of business and is managed primarily through internal accruals and/or short term borrowings.
Long term liquidity requirement is assessed by the management on periodical basis and managed through
internal accruals as well as from undrawn borrowing facilities.

(iv) Market risk:

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of
changes in market prices.such as foreign exchange rates, interest rates & equity prices — will affect the Company''s
income or the value of its holdings of financial instruments.

(v) Commodity Price Risk :

Commodity price risk arises from the change in the commodity prices that may have an adverse effect on the
Company''s result in the current reporting period and future periods. The company''s exposure to commodity risk
is in relation to volatility in prices of natural gas. The administered price determined by the PPAC cell of Petroleum
and Natural Gas Regulatory Board minimizes the company''s exposure to price risk . The Company manages its
risk by maintaining a balanced procurement at administered and spot purchase rates. Further, risk arising on
account of fluctuations in price of natural gas is mitigated by company''s ability to pass on the fluctuations in
prices to customers.

The Company invests its temporary surplus funds in various mutual funds and fixed deposits. In order to manage
its price risk arising from investments, the Company diversifies its portfolio in accordance with the limits set by the
risk management policies.

(vi) Foreign exchange risk:

The Company is not directly exposed to foreign exchange risk as there is no direct foreign currency transaction is
entered into by Company.

(vii) Interest Rate Risk:

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of
changes in market interest rates. The Company’s exposure to the risk of changes in market interest rates relates
primarily to the Companies long-term debt obligations with floating interest rates.

The Company’s investments in fixed deposits are at fixed interest rates.

35 Capital Management:

Total equity as shown in the balance sheet includes equity share capital, general reserves , capital redemption reserve,
retained earnings,etc.

The company''s objective when managing capital is to safeguard its ability to continue as a going concern so that it
can continue to provide returns for shareholders & benefits for other stakeholders and maintain an optimal structure
to reduce the cost of capital.

Net Debt = Total term loan borrowings less cash & cash equivalents including current investments in mutual funds.

Total ''equity'' means share capital issued (Equity Shares & Equity component of Preference Shares) &
accumulated reserves.

The Company''s policy is to maintain a stable and strong capital structure with a focus on total equity so as to maintain
investors, creditors and market confidence and to sustain future development and growth of its business. The Company
will take appropriate steps in order to maintain, or if necessary, adjust its capital structure. The management monitors
the return on capital as well as the level of dividends to shareholders

41 Segment Information

a Description of segments and principal activities

The Company has a single operating segment that is “Sale of Natural Gas”. Accordingly, the segment revenue,
segment results, segment assets & segment liabilities are reflected in the Standalone Financial Statements
themselves as at & for the period/financial year ended March 25 and March 24.

b Entity wide disclosures

i Information about products and services: The Company is in a single line of business of “Sale of Natural Gas”.

ii Geographical Information: The company operates presently in the business of city gas distribution in India.
Accordingly, revenue from customers earned and non-current asset are located, in India.

iii Information about major customers: In the current year, revenue from none of the external customer
individually accounted for more than ten percent of the revenue.

42 Registration of charges or satisfaction with Registrar of Companies (ROC)

There is no charge or satisfaction yet to be registered with the Registrar of Companies beyond the statutory period.

43 Details of Benami Property held

The company does not hold any benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and
rules made thereunder, hence no proceeding initiated or pending against the company under the said Act and Rules.

46 Utilisation of borrowed funds, share premium and other funds

The Company has not received any fund from any person or entity with the understanding that the Company would
directly or indirectly lend or invest in other person or entity identified in any manner whatsoever by or on behalf of the
funding party (ultimate beneficiary) or provided any guarantee or security or the like on behalf of the ultimate beneficiary.

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

47 Compliance with number of layers of companies

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

48 Details of Crypto Currency or Virtual Currency

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

49 Undisclosed Income

There is no transaction, which has not been recorded in books of accounts, that has been surrendered or disclosed as
income during the year in tax assessments under the Income Tax Act, 1961.

50 Relationship with struck off companies

The Company does not have any transactions with companies struck off under section 248 of the Companies Act, 2013
or section 560 of Companies Act, 1956

51 Willful Defaulter

The company is not declared as wilful defaulter by any bank or financial institution or other lender.

52 Revaluation of property, Plant and equipment

The Group has not revalued its property, plant and equipment (including right-of-use assets) or intangible assets or
both during year ended March 31, 2025 and March 31, 2024.

53 Details regarding Financial Instruments

Fair Value Hierarchy

The fair value hierarchy is based on inputs to valuation techniques that are used to measure fair value that are either
observable or unobservable and consists of the following three levels:

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

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

Level-3 : Inputs are not based on observable market data (unobservable inputs). Fair values are determined in whole
or in part using a valuation model based on the assumptions that are neither supported by prices from observable
current market transactions in the same instrument nor are they based on available market data.

Performance obligations -Connection, Service and Fitting Income

Connection charges from customers are Recognised when the performance obligation is satisfied:

(i) Industrial & Commercial Customers: The performance obligations as per the contractual arrangement with the
customer is to deliver gas as per the contract. Consequently, the connection charges are to be recognised when
the amount is received from the Customer.

(ii) Domestic Customer: The connection charges are to be recognised when the amount is received from the
Customer. It is reasonably expected by the Company that the gas is procured by the customer and supplied
by the Company on a Regular basis. Consequently the connection charges are to be recognised when the
connection facility is provided.

55 Following are the details of loans and advances in nature of loans given to subsidiaries, associates and other

entities in which directors are interested in terms of regulation 53(f) read together with Para A of Schedule V of SEBI

(Listing Obligations and Disclosure Requirements) 2015, as amended

56 For Ni-Hon Loan and impairment"

The Company had as per board resolution dated 24th September 2021,extended a loan ofH74.90 million to its joint venture,
Ni-Hon Cylinders Pvt. Ltd., on 19th October 2021, for a period of 18 months at an interest rate of 10.50% per annum, to support
the operational requirements of the joint venture. The loan tenure was subsequently extended until 31st July 2024.

During the current financial year, the loan along with the accrued interest ofH20.57 million became due for repayment.
As of the reporting date, the joint venture has not yet repaid the said dues.

The Company has continued to account for interest income for the period of default, as the management remains
hopeful and reasonably confident about the recoverability of the outstanding loan and interest, based on ongoing
discussions with the joint venture partners. In view of this, and considering the overall circumstances, no impairment
has been considered necessary in respect of the said loan and related investments in the joint venture.

57 For Land Advances

The Company had acquired land at a cost ofH181.25 million in the Patan District for the purpose of developing a solar
park. As of March 2025, an advance ofH69.16 million remains outstanding and 108.29 for the March 2024.which was
originally extended towards the proposed acquisition of additional land in the area.

Subsequently, the Company has reassessed its plans and, based on strategic and operational considerations, has
decided not to pursue further land acquisitions in the region. The focus has now shifted towards initiating recovery
of the outstanding advance. The Company is actively engaged in discussions and necessary follow-ups with the
concerned parties to ensure an appropriate resolution of the matter.

58 For Advances to Venuka & Farm Gas

The Company has, in the ordinary course of business, extended advances to associate companies towards procurement
of MDPE Pipes (capital goods) and purchase of natural gas. As on 31st March 2025, outstanding advances amount
toH110.00 million(as on March 31,2024H150.09 million) in the case of Venuka Polymers Pvt. Ltd. andH134.12 million(as on
March 31,2024H107.38 million) in the case of Farm Gas Pvt. Ltd.,classified as advances to suppliers.

It has been observed that the amounts advanced exceed the typical value of purchase orders and have remained
outstanding for a period longer than what is generally expected under normal trade practices. In light of this, the
Company is reviewing these transactions to ensure alignment with the applicable provisions of the Companies Act,
including those relating to transactions that may be considered in the nature of loans. Appropriate steps are being
initiated to recover the outstanding balances, including interest wherever applicable, in line with prevailing industry
norms and comparable third-party arrangements.

59 Events occurring After the Balance Sheet Date :

The Company evaluates events and transactions that occur subsequent to the balance sheet date but prior to approval
of the financial statements to determine the necessity for recognition and/or reporting of any of these events and
transactions in the financial statements. As on date of approval of these financial statements, there is no subsequent
event to be recognized or reported that is not already disclosed.

60 Ministry of Corporate Affairs (“MCA”) notifies new standards or amendments to the existing standards under
Companies (Indian Accounting Standards) Rules as issued from time to time. MCA has notified Ind AS - 117 Insurance
Contracts and amendments to Ind AS 116 - Leases, relating to sale and leaseback transactions, applicable to the
Company w.e.f. April 1, 2024. The Company has reviewed the new pronouncements and based on its evaluation has
determined that it does not have any significant impact in its financial statements.

61 The Board of Directors have recommended final equity dividend ofH 1.50 (15%) per equity share of the face value of
10 each for the financial year 2024-25. This proposed dividend is subject to approval of the shareholders in the ensuing
annual general meeting.

See accompanying Notes to the Financial statements
As per our report of even date

For Mukesh M Shah & Co. For and on behalf of the Board

Chartered Accountants IRM Energy Limited

Firm Registration No: 106625W

Harsh Kejriwal Dr. Rajiv I Modi Manoj Kumar Sharma

Partner Chairman CEO

Membership Number : 128670 DIN:01394558

Place : USA

Harshal Anjaria Akshit Soni

CFO Company Secretary

Place : Ahmedabad
Date : May 15,2025

3.16 Provisions, Contingent Liabilities & Contingent Assets

Provision is recognised when the Company has a present obligation as a result of past events & it is probable that the outflow of resources will be required to settle the obligation & in respect of which reliable estimates can be made. A disclosure for contingent liability is made when there is a possible obligation that may, but probably will not require an outflow of resources. When there is a possible obligation or a present obligation in respect of which the likelihood of outflow of resources is remote, no provision/ disclosure is made. Contingent assets are not recognised in the financial statement.

Provisions & contingencies are reviewed at each balance sheet date & adjusted to reflect the correct management estimates.

3.17 Statement of Cash Flows

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

3.18 Events occurring after the Reporting Date

Adjusting events (that provides evidence of condition that existed at the balance sheet date) occurring after the balance sheet date are recognized in the Standalone Financial Statements. Material non adjusting events (that are inductive of conditions that arose subsequent to the balance sheet date) occurring after the balance sheet date that represents material change & commitment affecting the financial position are disclosed in the Directors'' Report.

3.19 Earnings per Share

Basic earnings per share are calculated by dividing the net profit or loss [excluding other comprehensive income] for the year attributable to equity shareholders by the weighted average number of equity shares outstanding during the year. The weighted average number of equity shares outstanding during the year is adjusted for events such as bonus issue, bonus element in a right issue, shares split & reserve share splits [consolidation of shares] that have changed the number of equity shares outstanding, without a corresponding change in resources. For the purpose of calculating diluted earnings per share, the net profit or loss [excluding other comprehensive income] for the year attributable to equity shareholders & the weighted average number of shares outstanding during the year are adjusted for the effects of all dilutive potential equity shares.

3.20 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 instruments also include derivative contracts such as foreign exchange forward contracts, cross currency interest rate swaps, interest rate swaps, currency options and embedded derivatives in the host contract.

a. Financial Assets

(i) Initial recognition and measurement

All financial assets are recognized initially at fair value (plus transaction costs attributable to the acquisition of the financial assets, in the case of financial assets are not recorded at fair value through profit or loss).

(ii) Classifications

The company classifies its financial assets as subsequently measured at either amortized cost or fair value depending on the company''s business model for managing the financial assets and the contractual cash flow characteristics of the financial assets.

(iii) Business model assessment

The company assesses the objective of a business model in which an asset is held at a portfolio level because this best reflects the way the business is managed, and information is provided to management.

Assessment whether contractual cash flows are solely payments of principal and interest

For the purposes of this assessment, ''principal'' is defined as the fair value of the financial asset on initial recognition. ''Interest'' is defined as

consideration for the time value of money and for the credit risk associated with the principal amount outstanding during a period, for other basic lending risks, costs (e.g. liquidity risk and administrative costs), and profit margin.

In assessing whether the contractual cash flows are solely payments of principal and interest, the company considers the contractual terms of the instrument. This includes assessing whether the financial asset contains a contractual term that could change the timing or amount of contractual cash flows such that it would not meet this condition.

Financial Assets at amortised cost

A financial asset is measured at amortised cost only if both of the following conditions are met:

- It is held within a business model whose objective is to hold assets to collect contractual cash flows.

- the contractual terms of the financial asset represents contractual cash flows that are solely payments of principal and interest.

After initial measurement, such financial assets are subsequently measured at amortised cost using the EIR method. Amortised cost is calculated by considering any discount or premium on acquisition and fees or costs that are an integral part of the EIR. The EIR amortisation is included as finance income in the profit or loss. The losses arising from impairment are recognised in the profit or loss.

Financial Assets at Fair Value through Other Comprehensive Income (FVOCI)

A financial asset is measured at amortized cost only if both of the following conditions are met:

- it is held within a business model whose objective is to hold assets in order to collect contractual cash flows.

- the contractual terms of the financial asset represent contractual cash flows that are solely payments of principal and interest.

On initial recognition, the Company makes an irrevocable election on an instrument-byinstrument basis to present the subsequent changes in fair value in other comprehensive income pertaining to investments in equity instruments, other than equity investment which are held for trading. Subsequently, they are measured at fair value with gains and losses

arising from changes in fair value recognised in other comprehensive income and accumulated in the ''Reserve for equity instruments through other comprehensive income''. The cumulative gain or loss is not reclassified to profit or loss on disposal of the investments.

Financial Assets at Fair Value through Profit and Loss (FVTPL)

Investments in equity instruments are classified as at FVTPL, unless the Company irrevocably elects on initial recognition to present subsequent changes in fair value in other comprehensive income for investments in equity instruments which are not held for trading.

Other financial assets are measured at fair value through profit or loss unless it is measured at amortised cost or at fair value through other comprehensive income on initial recognition. The transaction costs directly attributable to the acquisition of financial assets and liabilities at fair value through profit or loss are immediately recognised in statement of the profit and loss.

Investment in Subsidiaries, Jointly Controlled Entities and Associates

Investment in subsidiaries, jointly controlled entities and associates are measured at cost less impairment as per the Ind AS 27 -Separate Financial Statements.

Impairment of investments

The Company reviews its carrying value of investments carried at cost or amortised cost annually, or more frequently when there is indication for impairment. If the recoverable amount is less than its carrying amount, the impairment loss is accounted for.

iii. Derecognition of financial assets

A financial asset (or, where applicable, a part of a financial asset or part of a group of similar financial assets) is primarily derecognized (i.e. removed from the company''s balance sheet) when:

- The rights to receive cash flows from the asset have expired, or

- The company has transferred its rights to receive cash flows from the asset or has assumed an obligation to pay the received cash flows in full without material delay to a third party under a ''pass-

through'' arrangement; and either (a) the company has transferred substantially all the risks and rewards of the asset, or (b) the company has neither transferred nor retained substantially all the risks and rewards of the asset, but has transferred control of the asset.

When the company has transferred its rights to receive cash flows from an asset or has entered into a pass-through arrangement, it evaluates if and to what extent it has retained the risks and rewards of ownership. When it has neither transferred nor retained substantially all of the risks and rewards of the asset, nor transferred control of the asset, the company continues to recognize the transferred asset to the extent of the company''s continuing involvement. In that case, the company also recognizes an associated liability. The transferred asset and the associated liability are measured on a basis that reflects the rights and obligations that the company has retained.

Continuing involvement that takes the form of a guarantee over the transferred asset 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.

On derecognition of a financial asset, the difference between the carrying amount of the asset (or the carrying amount allocated to the portion of the asset derecognised) and the sum of (i) the consideration received (including any new asset obtained less any new liability assumed) and (ii) any cumulative gain or loss that had been recognised in the OCI is recognised in profit or loss.

Impairment of financial assets

The Company assesses the expected credit losses associated with its assets carried at amortised cost and FVOCI debt instruments on a forward-looking basis. The impairment methodology applied depends on whether there has been a significant increase in credit risk.

With regard to trade receivable, the Company applies the simplified approach as permitted by the Ind AS 109, Financial Instruments, which requires expected lifetime losses to be recognised from the initial recognition of the trade receivables.

For all other financial assets, expected credit losses are measured at an amount equal to the 12 month expected credit losses or at an amount equal to the life time expected credit losses if the credit risk on the financial assets has increased significantly since initial recognition.

b. Financial Liabilities

i. Initial recognition and measurement

Financial liabilities are classified at initial recognition as financial liabilities at fair value through profit or loss or amortised cost, as appropriate.

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

ii. Subsequent measurement

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

Financial Liabilities measured at amortised cost

After the initial recognition, interest-bearing loans and borrowings are subsequently measured at amortised cost using the EIR method. Gains and losses are recognised in profit or loss when the liabilities are derecognised as well as through the EIR amortisation process.

Amortised cost is calculated by considering any discount or premium on acquisition and fees or costs that are an integral part of the EIR. The EIR amortisation is included as finance costs in the statement of profit and loss.

Financial liabilities at fair value through profit or loss

Financial liabilities at fair value through profit or loss include financial liabilities held for trading and financial liabilities designated upon initial recognition as at fair value through profit or loss. Financial liabilities are classified as held for trading if they are incurred for the purpose of repurchasing in the near term.

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

Financial liabilities designated upon initial recognition at fair value through profit or loss are designated as such at the initial date of recognition, and only if the criteria in the 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 the P&L. However, the Company may transfer the cumulative gain or loss within equity. All the other changes in fair value of such liability are recognised in the statement of profit or loss.

iii. Derecognition of financial liabilities

The company derecognises a financial liability when its contractual obligations are discharged or cancelled or expire.

c. Modifications of financial assets and financial liabilities

Financial assets

If the terms of a financial asset are modified, the company evaluates whether the cash flows of the modified asset are substantially different. If the cash flows are substantially different, then the contractual rights to cash flows from the original financial asset are deemed to have expired. In this case, the original financial asset is derecognised and a new financial asset is recognised at fair value.

If the cash flows of the modified asset carried at amortised cost are not substantially different, then the modification does not result in derecognition of the financial asset. In this case, the company recalculates the gross carrying amount of the financial asset and recognises the amount arising from adjusting the gross carrying amount as a modification gain or loss in profit or loss. If such a modification is carried out because of financial difficulties of the borrower, then the gain or loss is presented together with impairment losses. In other cases, it is presented as interest income. The gain / loss is recognised in other equity in case of transaction with shareholders.

Financial liabilities

Borrowings and other financial liabilities are initially recognised at fair value (net of transaction costs incurred). Difference between the fair value and the transaction proceeds on initial is recognised as an asset / liability based on the underlying reason for the difference.

Subsequently all financial liabilities are measured at amortised cost using the effective interest rate method. The company derecognises a financial liability when its terms are modified, and the cash flows of the modified liability are substantially different. In this case, a new financial liability based on the modified terms is recognised at fair value.

The difference between the carrying amount of the financial liability extinguished and the new financial liability with modified terms is recognised in profit or loss. The gain / loss is recognised in other equity in case of transaction with shareholders.

The Company has computed the Equity component of the Preference Shares considering the terms of the RPS to be non-cumulative and further modified the estimates of future cash flows.

3.21 Fair Value Measurements

These Standalone Financial Statements are prepared under the historical cost convention, except certain financial assets & liabilities measured at fair value (refer accounting policy on financial instruments) as per relevant applicable Ind AS.

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value measurement is based on the presumption that the transaction to sell the asset or transfer the liability takes place either in the principal market for the asset or liability, or in the absence of a principal market, in the most advantageous market for the asset or liability. The principal or the most advantageous market must be accessible to the Company.

Management applies valuation techniques to determine the fair value of financial instruments (where active market quotes are not available) and non-financial assets. This involves developing estimates and assumptions consistent with how market participants would price the instrument. Management bases its assumptions on observable data as far as possible but this is not always available. In that case management uses the best information available. Estimated fair values may vary from the actual prices that would be achieved in an arm''s length transaction at the reporting date

The fair value of an asset or a liability is measured using the assumptions that market participants would use when pricing the asset or liability, assuming that market participants act in their economic best interest. A fair value measurement of a non-financial asset takes into account a market participant''s ability to generate economic benefits by using the asset in its highest & best use or by selling it to another market participant that would use the asset in its highest & best use.

The Company uses valuation techniques that are appropriate in the circumstances & for which sufficient data are available to measure fair value, maximising the

use of relevant observable inputs & minimising the use of unobservable inputs. All assets & liabilities for which fair value is measured or disclosed in the Standalone Financial Statements are categorized within the fair value hierarchy, described as follows, based on the lowest level input that is significant to the fair value measurement as a whole:

• Level 1 - Quoted (unadjusted) market prices in active markets for identical assets or liabilities

• Level 2 - Valuation techniques for which the lowest level input that is significant to the fair value measurement is directly or indirectly observable

• Level 3 - Valuation techniques for which the lowest level input that is significant to the fair value measurement is unobservable

For assets & liabilities that are recognised in the Standalone Financial Statements on a recurring basis, the Company determines whether transfers have occurred between Levels in the hierarchy by re-assessing categorisation (based on the lowest level input that is significant to the fair value measurement as a whole) at the end of each reporting period.

3.22 The previous year numbers have been reclassified wherever necessary. Unless otherwise stated, all amounts are in Million Indian Rupees. Items reflecting as 0.00 denotes value less than H 5000.

3.23 Ministry of Corporate Affairs ("MCA") notifies new standards or amendments to the existing standards under Companies (Indian Accounting Standards) Rules as issued from time to time. For the year ended March 31, 2024, MCA has not notified any new standards or amendments to the existing standards applicable to the Company.

The company adopted Disclosure of Accounting (amendment to Ind AS 1) from April 1, 2023. Although the amendment did not result in any changes in the accounting policies themselves, they impacted the accounting policy information disclosed in the standalone financial statement.

The amendment requires the disclosure of ''material'' rather than ''significant'' accounting policies. The amendments also provide guidance on the application of materiality to disclosure of accounting policies, assisting entities to provide useful, entity specific accounting policy information that users need to understand other information in the standalone financial statement.

(B) The details of security given for all loans are as under :

(i) The Rupee Term Loan is secured as below:

- First Charge on movable and immovable assets (both present and future) relating to the specific projects on pari passu basis.

- Exclusive charge on DSRA created for the specific project.

- First charge on the Trust and Retention Account of the specific project on pari passu basis.

- First charge on current assets (incl. cash flows, receivables, etc), both present and future, of the specific projects on

pari passu basis.

(ii) The Working Capital is secured as below:

- Second Charge on movable and immovable assets (both present and future) relating to the specific projects on pari passu basis.

- First charge on current assets (incl. cash flows, receivables, etc), both present and future, of the specific projects on pari passu basis

(iii) The Vehicle Loans are secured by Charge on Vehicle.

(iv) There is no default in repayment of loan and interest thereon as on 31st March 2024 and 31 March, 2023

(v) The Gross book value of the fixed assets as on March 31, 2024 charged in favour of the lenders is H 7075.71 million (

March 31,2023 H 5125.84 million)

(vi) For more security details on bank financing, refer Note - 39

(vii) The borrowings obtained by the company from banks have been applied for the purposes for which such loans were taken.

33 Employee Benefits:

(i) Short term employee benefits

All employee benefits payable wholly within twelve months of rendering the service are classified as short term employee benefits. Benefits such as Salaries, incentives & allowances, short terms compensated absences, etc., & the expected cost of bonus, ex-gratia are recognised in the year in which the employee renders the related service.

(ii) Long term employee benefits (a) Gratuity (Unfunded):

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

34 Financial risk management:

The Company''s activities expose it to credit risk, liquidity risk & market risk. This note explains the sources of risk which the entity is exposed to & how the entity manages the risk & the related impact in the Standalone Financial Statements. The Companies risk management is done in close co-ordination with the board of directors & focuses on actively securing the Companies short, medium & long-term cash flows by minimizing the exposure to volatile financial markets. Long-term financial investments are managed to generate lasting returns. The Company does not actively engage in the trading of financial assets for speculative purposes nor does it write options. The most significant financial risks to which the Company is exposed are described below:

(i) Credit risk:

Credit risk arises from the possibility that counter party may not be able to settle their obligations as agreed. The Company is exposed to credit risk from trade receivables, bank deposits & other financial assets.

Bank deposits are placed with reputed banks / financial institutions. Hence, there is no significant credit risk on such fixed deposits.

The Company periodically assesses the financial reliability of the counter party, taking into account the financial condition, current economic trends, & analysis of historical bad debts & ageing of accounts receivable. Individual limits are set accordingly.

The Company trades with recognized & credit worthy third parties. It is the Companies policy that all customers who wish to trade on credit terms are subject to credit verification procedures. In addition, trade receivable balances are monitored on an on-going basis with the result that the Companies exposure to bad debts is not significant.

An impairment analysis is performed at each reporting date on an individual basis for major clients. In addition, a large number of minor receivables are grouped into homogenous groups & assessed for impairment collectively. The calculation is based on exchange losses historical data. Also, the Company does not enter into sales transaction with customers having credit loss history.

34 Financial risk management: (Contd..)

There are no significant credit risks with related parties of the Company. Adequate expected credit losses are recognized as per the assessments.

(ii) Liquidity risk:

Liquidity risk is defined as the risk that the Company will not be able to settle or meet its obligations on time or at a reasonable price. For the Company, liquidity risk arises from obligations on account of financial liabilities - borrowings, trade payables & other financial liabilities.

The Company''s principle sources of liquidity are cash & cash equivalents & the cash flow that is generated from operations. The Company believes that the working capital is sufficient to meet its current requirements. Accordingly, no liquidity risk is perceived. The Company closely monitors its liquidity position & maintains adequate source of funding.

(iii) Maturities of financial liabilities:

The tables below analyse the Companies financial liabilities into relevant maturity groupings based on their contractual maturities for all non-derivative financial liabilities. The amounts disclosed in the table are the contractual undiscounted cash flows. Balances due within 12 months equal their carrying balances as the impact of discounting is not significant.

(iv) Market risk:

Market risk is the risk that changes in market prices- such as foreign exchange rates, interest rates & equity prices - will affect the Companies income or the value of its holdings of financial instruments.

(v) Commodity Price Risk :

Risk arising on account of fluctuations in price of natural gas is mitigated by ability to pass on the fluctuations in prices to customers over period of time. The company monitors movements in the prices closely on regular basis.

(vi) Foreign exchange risk:

The Company is not directly exposed to foreign exchange risk as no direct foreign currency transactions are entered into.

(vii) Interest Rate Risk:

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Companies exposure to the risk of changes in market interest rates relates primarily to the Companies long-term debt obligations with floating interest rates.

The Companies investments in fixed deposits are at fixed interest rates.

35 Capital Management:

Total equity as shown in the balance sheet includes equity share capital, general reserves and retained earnings.

The company objectives when managing capital are to safeguard their ability to continue as a going concern so that they can continue to provide returns for shareholders & benefits for other stakeholders, & maintain an optimal structure to reduce the cost of capital.

Net Debt = Total term loan borrowings less cash & cash equivalents including current investments

Total ''equity'' means share capital issued (Equity Shares & Equity component of Preference Shares) & accumulated reserves.

The Company''s policy is to maintain a stable and strong capital structure with a focus on total equity so as to maintain investor, creditors and market confidence and to sustain future development and growth of its business. The Company will take appropriate steps in order to maintain, or if necessary adjust, its capital structure. The management monitors the return on capital as well as the level of dividends to shareholders.

Loan Covenants:

Under the terms of the major borrowing facilities, the Company is required to comply any 2 of the following financial covenants failing which penal interest as prescribed in the facility agreement shall apply. The Financial Covenants shall be tested at the end of each Fiscal Year based on the certification of the Auditor.

(i) Gross DSCR

(ii) Interest Coverage ratio

(iii) FACR = (Net Property, Plant and Equipment/ Loan Outstanding)

Note: The company has complied with all Loan Covenants for the period ending March 31,2024 and March 31,2023 as per Facility Agreement

39 The Company has taken limits for issuance of Performance Bank Guarantee (PBG) in favor of PNGRB which is secured as under-

a First Charge on movable and immovable assets (both present and future) relating to the specific projects on pari passu basis.

b First charge on current assets (incl. cash flows, receivables, etc), both present and future, of the specific projects on pari passu basis

Further, Cadila Pharmaceuticals Ltd has given corporate guarantee for the limits taken by the company for submission of PBG of H 250 millon for the Diu and Gir somanth city gas distribution project.

40 Corporate Social Responsibility:

As per Section 135 of the Companies Act, 2013, a Corporate Social Responsibility (CSR) committee has been formed by the Company. The CSR activities of the Company are generally been carried out by making payment contribution to eligible Trusts. The Trusts carry out the CSR activities as specified in Schedule VII to the Companies Act, 2013 on behalf of the Company.

41 Segment Information

a Description of segments and principal activities

The Company has a single operating segment that is "Sale of Natural Gas". Accordingly, the segment revenue, segment results, segment assets & segment liabilities are reflected in the Restated Consolidated Financial Statements themselves as at & for the period/financial year ended March 24 and March 23.

b Entity wide disclosures

i Information about products and services: The Company is in a single line of business of "Sale of Natural Gas".

ii Geographical Information: The company operates presently in the business of city gas distribution in India. Accordingly, revenue from customers earned and non-current asset are located, in India.

iii Information about major customers: In the current year, revenue from none of the external customer individually accounted for more than ten percent of the revenue.

42 Registration of charges or satisfaction with Registrar of Companies (ROC)

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

43 Details of Benami Property held

The company does not hold any benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and rules made thereunder, hence no proceedings initiated or pending against the company under the said Act and Rules.

44 Loans and advances granted to specified person

46 Utilisation of borrowed funds, share premium and other funds

The Company has not received any fund from any person or entity with the understanding that the Company would directly or indirectly lend or invest in other person or entity identified in any manner whatsoever by or on behalf of the funding party (ultimate beneficiary) or provided any guarantee or security or the like on behalf of the ultimate beneficiary.

The Company have 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

47 Compliance with number of layers of companies

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

48 Details of Crypto Currency or Virtual Currency

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

49 Undisclosed Income

There is no transaction, which has not been recorded in books of accounts, that has been surrendered or disclosed as income during the year in tax assessments under the Income Tax Act, 1961.

50 Relationship with struck off companies

The Company do not have any transactions with companies struck off under section 248 of the Companies Act, 2013 or section 560 of Companies Act, 1956

51 Wilful Defaulter

The company is not declared as wilful defaulter by any bank or financial institution or other lender.

52 Revaluation of property, Plant and equipment

The Group has not revalued its property, plant and equipment (including right-of-use assets) or intangible assets or both during year ended 31 March 2024 and 31 March 2023

53 Details regarding Financial Instruments

54 Revenue from contracts with customers :

Sale of Natural gas is the main activity of city gas distribution business and other operating income is incidental to sale of natural gas. Company sells and distributes natural gas in India.

Sale of natural gas includes excise duty but excludes VAT and GST collected from the customers on behalf of the Government. All the revenue mentioned above are earned by transfer of goods or services at a point of time.

Reconciliation of the amount of revenue recognised in the statement of Profit and Loss with the contracted price :

Performance obligations -Connection, Service and Fitting Income

Connection charges from customers are Recognised when the performance obligation is satisfied:

(i) Industrial & Commercial Customers: The performance obligations as per the contractual arrangement with the customer is to deliver gas as per the contract. Consequently, the connection charges is to be recognised when the amount is received from the Customer.

(ii) Domestic Customer: The connection charges is to be recognised when the amount is received from the Cutomer. It is reasonably expected by the Company that the gas is procured by the customer and supplied by the Company on a Regular basis. Consequently the connection charges are to be recognised when the connection facility is provided.

55 Since the license fee was waived till December 31,2023 as per the addendum agreement signed between the Company and IRM Trust (Promoter), the Company has made entire full provision of license fees of Rs. 42.89 million for the quarter ending March 31,2024.

56 Events Occuring After the Balance Sheet Date :

The Company evaluates events and transactions that occur subsequent to the balance sheet date but prior to approval of the financial statements to determine the necessity for recognition and/or reporting of any of these events and transactions in the financial statements. As on date of approval of these financial statements, there are no subsequent events to be recognized or reported that are not already disclosed.

57 The Ministry of Corporate Affairs (MCA) has prescribed a new requirement for companies under the proviso to Rule 3(1) of the Companies (Accounts) Rules, 2014 inserted by the Companies (Accounts) Amendment Rules 2021 requiring companies, which uses accounting software for maintaining its books of account, shall use only such accounting software which has a feature of recording audit trail of each and every transaction, creating and 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 Company uses an accounting software for maintaining its books of account which has a feature of recording audit trail (edit log) facility and the same has operated throughout the year for all relevant transactions recorded in the accounting software

As per our report of even date For and on behalf of the Board

For Mukesh M Shah & Co. IRM Energy Limited

Chartered Accountants

Firm Registration No: 106625W M. Sahu Karan Kaushal

Chairman CEO

DIN : 00034051

Harsh Kejriwal

Partner Harshal Anjaria Shikha Jain

Membership Number : 128670 CFO Company Secretary

Place : Ahmedabad Place : Ahmedabad

Date : May 21,2024 Date : May 21,2024