Date: June 16, 2026

Regulatory Filing Context

This document is a regulatory filing submitted to BSE Limited and NSE Limited pursuant to SEBI Notification No SEBI/LAD-NRO/GN2016-17/001 dated May 26, 2016, and Circular No CIR/CFD/CMD/56/2016 dated May 27, 2016. It contains the mandatory Statement on Impact of Audit Qualifications for the Audited Financial Results (Standalone and Consolidated) for the financial year ended March 31, 2026.

Financial Results Impact (Standalone)

The auditors' qualified opinion pertains to the non-recognition of an additional provision of ₹82.82 crore. The quantified impact on key standalone financial line items, as reported, is:

  • Turnover / Total income: ₹180.58 crore (Unaffected)
  • Total Expenditure: Reported as -₹282.72 crore; would be -₹199.90 crore after adjustment
  • Net Profit/(Loss): Reported as ₹212.07 crore; would be ₹129.25 crore after adjustment (a reduction of ₹82.82 crore)
  • Earnings Per Share: Reported as ₹1.41; would be ₹0.86 after adjustment
  • Total Assets: ₹2374.28 crore (Unaffected)
  • Total Liabilities: ₹2374.28 crore (Unaffected)
  • Net Worth: Reported as ₹1699.13 crore; would be ₹1616.31 crore after adjustment (a reduction of ₹82.82 crore)

Financial Results Impact (Consolidated)

The impact on consolidated financials is also provided:

  • Turnover / Total income: ₹180.58 crore (Unaffected)
  • Total Expenditure: Reported as -₹282.72 crore; would be -₹199.90 crore after adjustment
  • Net Profit/(Loss): Reported as ₹387.38 crore; would be ₹304.56 crore after adjustment (a reduction of ₹82.82 crore)
  • Earnings Per Share: Reported as ₹2.58; would be ₹2.03 after adjustment
  • Total Assets: ₹2795.87 crore (Unaffected)
  • Total Liabilities: ₹2795.87 crore (Unaffected)
  • Net Worth: Reported as ₹2120.72 crore; would be ₹2037.90 crore after adjustment (a reduction of ₹82.82 crore)

Basis for Audit Qualification (Annexure 1)

The statutory auditors issued a qualified opinion concerning the Anglo Coal case. The key facts are:

  • An amount of ₹1088.62 crore (₹1087.76 crore deposited with court + ₹0.86 crore attached from bank) was deposited with the Hon'ble Delhi High Court.
  • The Hon'ble Delhi High Court order dated May 9, 2025, allowed Anglo to withdraw the amount with interest. The company's SLP was dismissed by the Supreme Court on November 3, 2025.
  • The company filed an application on November 3, 2025, admitting a total liability of ₹1169.14 crore (including interest up to November 1, 2025).
  • Pursuant to a Delhi High Court order dated November 10, 2025, ₹1000 crore was released to Anglo on November 17, 2025.
  • Management's calculation estimated a remaining liability of ₹170.58 crore as of November 17, 2025.
  • The company recognized a provision of only ₹87.76 crore against this estimated obligation, resulting in a shortfall of ₹82.82 crore, which was disclosed as a contingent liability instead.
  • The auditors state this non-recognition constitutes a departure from accounting standards (AS prescribed u/s 133 of the Act). The adjustment would increase provisions and reduce net profit and shareholders' funds by ₹82.82 crore.

Management's View (Annexure 2)

Management disagrees with the qualification and provides its response:

  • The original deposit of ₹1088.62 crore was fully provided for in the books.
  • The calculations submitted to the court (for ₹1170.00 crore) were provisional, without prejudice, and subject to further adjudication on the USD exchange rate and methodology.
  • Substantial accrued interest of approximately ₹259.74 crore had accrued on the deposited amount by November 1, 2025, as disclosed in Notes to Accounts No. 10.
  • Management assessed that this accrued interest is available for adjustment against any additional amount payable, and thus, no incremental outflow of resources for the alleged ₹82.82 crore is probable.
  • Citing Ind AS 37, management argues that a provision is not required as the condition of 'probable outflow of resources' is not satisfied.
  • The incremental amount remains subject to final adjudication by the court, judicial clarification on the exchange rate, and adjustment against accrued interest.
  • Therefore, management believes the disclosure as a contingent liability is appropriate and the provision is not warranted.