Terms/rights attached to equity shares:

The Company has only one class of equity shares having par value of ' 10 per share. Each holder of equity shares is entitled to one vote per share. The dividend whenever proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General meeting, except in case of interim dividends. In the event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets of the Company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.

On October 18, 2016, the Company had issued non cumulative redeemable preference shares (RPS) for a tenure of 23 months to Tata Teleservices Limited (TTSL) on private placement with dividend of 0.1% per annum. On September 18, 2018, the Company extended the term of RPS for a further period of 24 months with an option to the Company to redeem at such earlier date as may be decided by the Board of Directors or Finance Committee of the Company. Pursuant to Section 47(2) of the Companies Act, 2013, with effect from October 17, 2018, TTSL is entitled to additional voting rights of 26.26% in respect of the RPS, as a result of which the Company became a subsidiary of TTSL.

On September 18, 2020, the Company extended the term of RPS for a further period of 24 months with an option to the Company to redeem at such earlier date as may be decided by the Board of Directors or Finance Committee of the Company. On September 18, 2022, the Company extended the term of RPS for a further period of 24 months with an option to the Company to redeem at such earlier date as may be decided by the Board of Directors or Finance Committee of the Company. In the event of liquidation, the Preference Shareholders will carry a preferential right over the holder of equity shares for payment of dividend and for payment of capital, in proportion to their shareholding.

The cash flow hedging reserve represents the cumulative effective portion of gains or losses arising on changes in fair value of designated portion of hedging instruments entered into for cash flow hedges. The cumulative gain or loss arising on changes in fair value of the designated portion of the hedging instruments that are recognised and accumulated under the heading of cash flow hedging reserve will be reclassified to profit or loss only when the hedged transaction affects the profit or loss.

The equity portion of compound financial instruments, is on account of dividend/interest percentage being lower than effective market rate and is recorded in other equity.

i) Redeemable preference shares of ' NIL (' 314.46 for the year ended March 31,2023) forming part of equity component pertain to extension for a further period of 2 years from the original date of maturity during the year and all other terms are the same as agreed at the time of issue.

ii) Inter-corporate deposits of ' 1,029.11 Crores (' 610.12 Crores for the year ended March 31,2023) forming part of equity component pertain to extension for a further period of 2 years from the original date of maturity during the year and all other terms are the same as agreed at the time of issue.

Undrawn borrowing facilities:

As at March 31,2024 , the Company has undrawn committed borrowing facilities of ' 166.29 Crores (March 31,2023 - ' 127.59 Crores). Compliance with loan covenant:

The Company does not have any financial covenant requirement for the loan outstanding as at March 31, 2024 and March 31, 2023 respectively.

Deferred payment liability for LF and SUC (Refer note 35):

i) Terms of repayment:

Hon'ble Supreme Court directed the Operators to pay 10% of the total outstanding amount claimed by DoT, on or before March 31, 2021. The balance is payable in installments commencing April 1, 2021 up to March 31,2031 payable by 31^st March of every year. In compliance of the SC order, the Company has already made payment of ' 639.39 Crores during quarter ended on March 31,2020.

On September 15, 2021, Government of India informed regarding reform & relief measures for Telecom Service Providers ('TSPs') and on October 14, 2021 issued a communication to TTML granting them opportunity of opting for deferment of the AGR dues by a period of four years and paying interest amount by converting the same in equity. On October 29, 2021, Company has informed DoT about its decision to opt for deferment of its AGR related dues by four years.

Term loans outstanding are secured by way of first pari-passu charge on movable (fixed & current) assets of the Company's enterprise, fixed wire line and broad band division excluding; certain intangible assets and current and future investments in associate and subsidiary company and Joint ventures of the Company.

Refer balance sheet notes for carrying amount of property, plant and equipment and other assets mentioned above as hypothecated by the Company.

Interest rate:- Interest rate for term loans is in the range of 7.35% to 8.75% p.a.

Term loans outstanding are secured by way of first pari-passu charge on movable (fixed & current) assets of the Company's enterprise, fixed wire line and broad band division excluding certain intangible assets and current and future investments in associate and subsidiary company and Joint ventures of the Company.

Refer balance sheet notes for carrying amount of property, plant and equipment and other assets mentioned above as hypothecated by the Company.

Interest rate:- Interest rate for term loans is in the range of 7.10% to 8.35% p.a.

(b) Inter-corporate deposit (ICD)As on March 31, 2024

i) Out of total outstanding, ICDs of ' 6,490.15 Crores (liability component of ' 5,461.04 Crores at the March 31,2024) were extended for a further period of 2 years from the original date of maturity and all other terms are the same as agreed at the time of issue.

ii) Terms of repayment:- ICDs are fully repayable after 2 years from the date of receipt/extension.

iii) Interest rate:- Interest rate for ICD is 0.1% p.a.

iv) As the interest rate of ICD is lower than market rate, it has been considered as compound financial instrument and has been separated into equity component and liability component as per Ind AS 32. Interest on liability component of ICD has been recognised by applying effective interest rate (EIR) within the range of 8.15% to 8.80%

As on March 31, 2023

i) Out of total outstanding, ICDs of ' 4,053 Crores (liability component of ' 3,442.88 Crores at the March 31, 2023) were extended for a further period of 2 years from the original date of maturity and all other terms are the same as agreed at the time of issue.

ii) Terms of repayment:- ICDs are fully repayable after 2 years from the date of receipt/extension.

iii) Interest rate:- Interest rate for ICD is 0.1% p.a.

iv) As the interest rate of ICD is lower than market rate, it has been considered as compound financial instrument and has been separated into equity component and liability component as per Ind AS 32. Interest on liability component of ICD has been recognised by applying effective interest rate (EIR) within the range of 7.35% to 8.50%.

(c) Liability component of redeemable preference shares

On September 18, 2022, the Company further extended the term of RPS for a further period of 24 months with an option to the Company to redeem at such earlier date as may be decided by the Board of Directors or Finance Committee of the Company. The equity portion of these redeemable preference shares, on account of dividend percentage being lower than effective market rate, is recorded in Other equity.

The Company expects that around 45% (March 2023 - 41%) of the performance obligations pending in respect of these long term contracts will be recognised as revenue during the next reporting period with balance in future reporting periods thereafter.

Discount is offered to subscribers based on the tariff opted by the subscribers. No discount is offered other than plan. Accordingly, discount is part of the contract price. Revenue is recognised net of Discount and which is as per the contract price.

Deferred customer contract acquisition costs

Costs to acquire customer contracts are generally deferred and amortised over the estimated economic life of the contracts, subject to an assessment of the recoverability of such costs. For contracts with an estimated amortisation period of less than one year, acquisition costs are expensed immediately. The closing balance of assets recognised from the costs incurred in respect of long term contracts amounts to ' 24.31 Crores as at March 31,2024 (' 22.12 Crores as at March 2023). During the year, in respect of such long term contracts, the Company recognised ' 11.86 Crores (March 31,2023 - ' 10.40 Crores) as acquisition cost in the statement of profit and loss.

Considering all the facts and various legal precedence, the Company has made a provision of ' 5.27 Crores towards litigation relating to municipal taxes & infrastructure charges in the statement of profit and loss for the year ended March 31,2023

Note 34 : Commitments, Contingent Liabilities & other litigations

a) Bharat Sanchar Nigam Limited (BSNL) issued demand notices to pay Access Deficit Charge (ADC) aggregating ' 166.90 Crores, including interest, for the period November 14, 2004 up to February 28, 2006. The demands stated that 'Fixed Wireless' services provided by the Company under the brand name 'WALKY' had mobility features and should be treated as mobile services for the purpose of Interconnect Usage Charges Regulations and ADC was payable on such calls. The Company filed a petition before Telecom Dispute Settlement Appellate Tribunal (TDSAT) in this regard. TDSAT disallowed the Company's petition and held that ADC was payable on such calls. The Company filed an appeal before the Supreme Court, which confirmed that ADC was payable on fixed wireless service vide order dated April 30, 2008. As there were claims and counter-claims between the Company and BSNL, the senior counsel of BSNL offered and Supreme Court directed that quantification of amounts payable to each other be made by TDSAT.

The Company, thereafter, filed a petition in TDSAT to determine / reconcile amounts payable to each other and TDSAT vide its order dated August 12, 2008 held that BSNL and the Company should exchange relevant information and reconcile the differences. On April 15, 2010, TDSAT confirmed BSNL demands for period up to August 25, 2005 and gave BSNL liberty to lodge its claim for a further period up to February 28, 2006. The Company's appeal before SC against the aforesaid TDSAT order dated April 15, 2010 was admitted by the SC vide its order dated July 23, 2010 but stay was not granted. Supreme Court had asked for details / break up of demands which have been filed. Based on the legal advice available with the Company, the penalty clause invoked by BSNL does not apply and the Company is entitled to seek refund of ' 50.73 Crores, the excess ADC amount paid to BSNL along with interest.

Out of the aforesaid ' 166.90 Crores, the Company has till date provided for amounts aggregating ' 111.61 Crores. The balance amounts aggregating ' 55.30 Crores have been disclosed as Contingent Liability.

The matter was last listed before Supreme Court on January 16, 2020 and was adjourned. This shall come up for hearing in due course. Payments made under dispute till date aggregates ' 114.29 Crores in relation to the above. There are similar claims raised by other operators of ' 3.29 Crores, provision of ' 2.68 Crores has been made and Payments made under dispute ' 2.68 Crores, ' 0.61 Crores has been disclosed as Contingent Liability.

b) A demand for ' 290.17 Crores for start-up spectrum beyond 2.5MHz, being a one-time spectrum charges claimed for the period from January 1, 2013 till the date of expiry of the

license, was received from the DoT. The Company has filed a writ petition in the Bombay High Court against the demand and obtained a stay order. The Company has undertaken (written to DoT conveying its intent) to surrender 1.25 MHz of CDMA spectrum after retaining 1.25 MHz of spectrum over and above start up spectrum of 2.5 MHz in Mumbai and to surrender the spectrum beyond 2.5 MHz in Maharashtra. Pursuant thereto, the Company has paid under protest all four installments aggregating ' 119.58 Crores for spectrum retained and also completed the surrender of spectrum in Mumbai and Maharashtra under protest. The DoT filed a Reply. The Company has to file a Rejoinder and an application for modification of the prayer clause in view of payments being made by the Company. The matter has been tagged with similar writs filed by other operators for Hearing and was last listed on February 4, 2020, where Bharti Airtel Limited sought deferment. The matter shall be listed in due course. Based on legal advice, the Company has considered the said demand as remote in nature.

c) DoT has issued instructions to TERM Cell in each Licensed Service Area to conduct monthly audit to check compliance levels of subscriber verification norms. DoT has also issued circulars to impose penalty for non-compliances to its instructions observed during the monthly audits. Total penalty raised to the Company on account of subscriber verification norms is ' 268.84 Crores till March 31,2024. Some of these penalties have been challenged by the Company in various High Courts and TDSAT. Mumbai Term Penalty matter in Delhi High Court was last listed on January 31, 2024, wherein, the Court disposed the Writ as withdrawn while granting the liberty to approach Bombay High Court and protected the Company for 6 weeks. The Company filed Writ Petition vide WPL/7523/2024 on March 2, 2024 for alleged non-compliance with subscriber verification guidelines in Bombay High Court. The matter was listed on March 11, 2024, wherein, the Court allowed WP to be withdrawn with liberty to file an appropriate Interim Application to seek ad-interim reliefs as also amendments in pending Writ Petition No.264 of 2015, while extending the interim protection for three weeks. The Company had filed IA (L) No./10591/2024, and IA (L) No. /10593/2024 in WP No. 264/2015. Vide orders dated April 1, 2024 the Bombay High Court has extended the interim protection by 4 weeks and has granted 2 weeks to DoT to file Reply and 2 weeks to the Company to file Rejoinder Based on legal opinion that the circulars are contrary to Section 20A of the Indian Telegraph Act, 1885, as the circulars prescribe penalties in excess of those prescribed under the Telegraph Act, the Company has disclosed the said demands as contingent liability.

Out of the aforesaid amount of ' 268.84 Crores, the Company has till date provided for amounts aggregating ' 3.69 Crores. The balance amounts aggregating ' 265.15 Crores have been disclosed as Contingent Liability.

d) Bharti raised invoices/demands on the Company for period since June 2009 in respect of SMS terminating on its network based on the interconnection agreement between the Company and the operator. The Company disputed on the grounds that the charges are not reasonable, are discriminatory and that the said quantum of 0.10 paisa as SMS TC is not cost based. TDSAT vide its order dated August 30, 2012, directed TTSL to pay these charges. On October 17, 2012, TTSL's appeal against the said judgment was admitted by the Supreme Court, but SC directed the Company to pay the above amount on a condition that any amounts paid by the Company would be refunded back with interest in the event the matter is adjudged in the Company's favour. Total amount payable to the operator (net of access charges receivable by the Company) amounts to ' 71.85 Crores (March 31, 2023 - ' 71.85 Crores) which has been fully provided by the Company. Amount paid under dispute as at March 31,2024 amounts to ' 66.38 Crores (March 31,2023 -' 66.38 Crores).

Other operators (Idea and Vodafone) have raised claims for SMS termination amounting to ' 53.21 Crores (March 31,2023 - ' 53.21 Crores), which were challenged in TDSAT by the Company. During the year 2015-16, TDSAT has pronounced judgment with respect to SMS termination charges in two of the cases and one (Unitech) is still pending. The Company believes that the amounts adjudged as payable by TDSAT are not tenable in the absence of any contractual arrangements with these operators for SMS termination and that the arrangement between the parties was based on the principle of Bill & Keep and has filed the appeal against the judgment in Supreme Court and the matters were listed before Supreme Court on March 3, 2020 but were not taken up and will be heard in due course. Accordingly, these claims have been disclosed as contingent liabilities.

e) DoT has issued demand notes on March 15, 2018 of ' 7.00 Crores covering GSM Services for the circle of Maharashtra and ' 3.70 Crores covering CDMA services in Mumbai and Maharashtra followed by SCN issued earlier for alleged delay in compliance of the first year roll out obligation of CDMA and GSM services as per License Agreements. The Company has challenged the demand in TDSAT. TDSAT has stayed the demand and restrained DOT from taking coercive action including encashment of Bank Guarantee. The matter was last listed on May 24, 2022, wherein, the Registrar noted that pleadings and evidence in the matter are complete and directed the matters to be listed before the main Court for hearing in due course. On being informed

that cross-examination has not been done yet, the Registrar indicated that from now onwards, as a matter of practice, cross examination shall be necessary only in such matters where the Court deems cross-examination to be necessary. The Company based on the data available and internal assessment, believes that the demand will be quashed and hence, disclosed the demand as contingent liability.

f) The Company, as a lessee of the property known as Al-aqmar Trust, Pune, has been receiving demand notices from Pune Municipal Corporation (PMC) since 1998, in its erstwhile name Hughes Ispat Ltd. PMC had raised its original demand for the year 1998 unilaterally fixing the Annual Rateable Value (ARV) at ' 1.10 Crores. In the Municipal Appeal filed by the Company in 1998 against the demand, the Small Causes Court in Pune vide its judgment of July 28, 2003 set aside all the demands of PMC until 2003. PMC preferred a Writ Petition before the High Court of Bombay in 2004 against the said Judgment, which was dismissed by High Court of Bombay on July 3, 2019. In the meanwhile, the demands raised by PMC for the subsequent years post 2003 were also challenged by the Company in 2007 in the Court in Pune, which held in 2013 in favour of the Company. The demand challenged in 2015 is for ' 11.83 Crores has been stayed by an Order of Injunction by the Court, which Order shall continue to be in force in favour of the Company until disposal of the suit.

PMC in its website had posted , in February 2021, three (3) Demand Notices towards property tax against three (3) property IDs of Al-aqmar property for ' 124.46 Crores, ' 1.27 Crores and ' 0.45 Crores, which included the arrears from the year 2003. The Company moved the Civil Court, Pune again in February 2021 and obtained an Order of Injunction in March 2021 restraining PMC from giving effect to / demanding taxes of the three bills posted on its officials website. In spite of the court order and the TTML's contempt notice through its lawyer, PMC continued to update its tax demands in its website.

In the meetings held in September and October 2022, PMC verbally shared the ARV calculations of the base tax as ' 3.23 Crores and penalty of ' 32.10 Crores for all the three accounts. Surprisingly, PMC issued a physical demand dated March 6, 2023, for ' 213.21 Crores for the financial year 202223, which was received by TTML on April 13, 2023. Upon immediate enquiry, PMC advised TTML to ignore the same as it was an inadvertent error sent in a routine manner. However, TTML vide its communication dated April 21,2023, placed on record the above verbal information of PMC. While there was no further response from PMC, it continued to keep posting its updated demands on its website month on month, which stood at ' 259 Crores as on March 31,2024. While this being so, PMC vide its notice dated November 22,

2023, called for a hearing on November 30, 2023, before its Dy Commissioner- Taxation, which was attended by a senior team of TTML. The Dy. Commissioner instructed his legal and taxation departments to carefully examine the case and make their final proposal, which according to him would be placed before the Commissioner and post his approval would be informed to TTML by February 2024. However, in a subsequent follow up meeting on December 20, 2023, the Dy, Commissioner - Taxation had shared an informal calculation sheet with TTML team quoting that ' 4.50 Crores would be the approximate base property tax amount for all the three accounts from FY 2003 to FY 2024, without any penalty and interest, advising TTML to pay this amount before December 31, 2023 and send a representation to PMC for waiver of interest and penalty showcasing TTML's bonafides in making the payment despite favorable court orders, which may help PMC consider closure of the case appropriately on merits.

I n the meanwhile, TTML had obtained an opinion from a Senior Counsel and subject expert Mr Milind Sathe, who advised, inter alia, to engage a property tax consultant to have the base tax assessed and approach PMC for settlement on the lines of the assessment. He also cautioned that PMC has the right to charge tax on the basis of the capital value under the amended Act.

TTML has paid ' 4.50 Crores to PMC on December 29, 2023, which was in line with the Senior Counsel's advice.

The Dy. Commissioner of PMC, during meetings held on January 2, and on January 4, 2024, proposed for moving the Civil Court, Pune (in the present proceeding), jointly, for appointment of a mediator to settle the penalty issue, which according to him will help closing the issue appropriately, which was accepted by TTML vide its letter dated February 14, 2024 post consulting the Senior Counsel and Group Legal.

However, the senior officials in PMC who handled this matter have been transferred and new officials taken change in March 2024. During a fresh meeting held on March 23,

2024, with the New Dy. Commissioner, he has assured to look into the matter and expedite. We anticipate some delay in this matter due to the intervening general election. The civil suit filed by the Company before the civil court at Pune challenging the levy of the property tax was last listed on April 6, 2024, for hearing and has now been posted to April 24, 2024.

In a meeting on December 20, 2023, PMC's Dy, Commissioner - Taxation had shared an informal calculation sheet with TTML team quoting that ' 4.50 Crores would be the approximate base property tax amount for all the three accounts from FY 2003 to FY 2024, without any penalty and interest, advising TTML to pay this amount before December

31, 2023, and send a representation to PMC for waiver of interest and penalty showcasing TTML's bonafides in making the payment despite favorable court orders, which may help PMC consider closure of the case appropriately on merits.

TTML had obtained an opinion from a Senior Counsel and subject expert Mr. Milind Sathe, who advised, inter alia, to engage a property tax consultant to have the base tax assessed and approach PMC for settlement on the lines of the assessment. He also cautioned that PMC has the right to charge tax on the basis of the capital value under the amended Act. With this background, PMC's above proposal seemingly in line with the Senior Counsel's advice and hence TTML has paid ' 4.50 Croresto PMC on December 29, 2023. TTML vide its letter dated February 14, 2024 has approached PMC for referring the dispute to mediation, over which PMC's response is awaited. Subsequently, a meeting was held with new Dy. Commissioner, Mr. Madhav Jagtap, on March 23, 2024, who assured to examine and expedite the matter.

g) The Company has evaluated the impact of the Supreme Court (SC) judgment dated February 28, 2019 in case of "Vivekananda Vidyamandir And Others Vs The Regional Provident Fund Commissioner (II) West Bengal" and the related circular (Circular No. C-I/1(33)2019/Vivekananda Vidya Mandir/284) dated March 20, 2019 issued by the Employees' Provident Fund Organisation in relation to non-exclusion of certain allowances from the definition of "basic wages" of the relevant employees for the purposes of determining contribution to provident fund under the Employees' Provident Funds & Miscellaneous Provisions Act, 1952. In the assessment of the management which is supported by legal advice, the Company believes that the aforesaid judgment does not have material impact on the Company. The Company will continue to monitor and evaluate its position based on future events and developments.

Note 35 :

The Hon'ble Supreme Court ('SC') pronounced its Judgement on October 24, 2019 ('Judgement'), allowing the appeal ofDepartment of Telecommunication's ('DoT') in respect of the definition of Gross Revenue ('GR') and Adjusted Gross Revenue ('AGR').

Further, on September 1, 2020, SC directed the Operators to pay 10% of the total outstanding as mentioned in the modification application filed by DoT, by March 31, 2021, and the balance in annual installments commencing April 1, 2021 up to March 31, 2031 payable by March 31 of every year. On October 14, 2021, DoT had granted one time opportunity of opting for deferment of the AGR dues by a period of four years. TTML and Tata Teleservices Limited have opted for moratorium for four years on AGR dues vide letter dated October 29, 2021.

In terms of Supreme Court's direction in para 38 (ii) of its Order dated September 1, 2020, TTL has submitted the compliance Affidavit on April 8, 2024.

DoT vide letter June 15, 2022, granted further opportunity to exercise the option of moratorium of AGR related dues up to financial year 2018-19 and not tabulated in the Hon'ble Supreme Court order dated September 1, 2020 for a period of four years. TTML has given acceptance of moratorium for four years as per the terms of said letter from DoT, vide its letter dated June 30, 2022.

On October 17, 2023, TTML and TTSL have filed Curative Petitions requesting SC to reconsider levy of interest, penalty and interest on penalty. The matter shall be listed in due course.

During the year ended March 31, 2024, TTML continues to recognise interest on AGR obligations. The amount has been recorded in compliance with the accounting standards, strictly without prejudice to TTML's legal rights, claims, remedies and contentions available under law.

Note 37 :

The disclosure as required under Ind AS 19 regarding the Employee benefits is as follows:

Employee benefit plans Defined contribution plans

The Company makes Provident Fund contributions which are defined contribution plans, for qualifying employees. Under the schemes, the Company is required to contribute a specified percentage of the payroll costs to fund the benefits. The Company recognised ' 2.28 Crores for the year ended March 31,2024 (' 2.02 Crores for the year ended March 31,2023) for Provident Fund contributions in the Statement of Profit and Loss. The contributions payable to these plans by the Company are at rates specified in the rules of the schemes.

Gratuity and other post-employment benefit plans

The Company offers the following employee benefit schemes to its employees:

i. Gratuity (included as part of Employee benefits expenses- Refer note 28)

ii. Short-term compensated absences (included as part of Employee benefits expenses-Refer note 28)

(i) Gratuity

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

The expected rate of return on plan assets is determined after considering several applicable factors such as the composition of the plan assets, investment strategy, market scenario, etc. In order to protect the capital and optimise returns within acceptable risk parameters, the plan assets are well diversified.

The discount rate is based on the prevailing market yields of Government of India securities as at the balance sheet date for the estimated term of the obligations.

The estimate of future salary increases considered, takes into account the inflation, seniority, promotion, increments and other relevant factors.

Sensitivity analysis:

Significant actuarial assumptions for the determination of the defined obligation are discount rate, expected salary increase and mortality. The sensitivity analyses below 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 above sensitivity analyses are based on a change in an assumption while holding all other assumptions constant. In practice, this is unlikely to occur, and changes in some of the assumptions may be correlated. When calculating the sensitivity of the defined benefit obligation to significant actuarial assumptions the same method (present value of the defined benefit obligation calculated with the projected unit credit method at the end of the reporting period) has been applied as when calculating the defined benefit

liability recognised in the balance sheet. 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.

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

The Expected contribution for the next year is ' 0.82 Crores (March 31,2023 - ' 0.70 Crores)

The weighted average duration of the defined benefit plan obligation at the end of the reporting period is 4.14 years (March 31 2023: 4.53 years).

(ii) Short - term compensated absences

The compensated absences cover the Company's liability for earned leave.

Total compensated absences provision as on March 31,2024 is ' 3.02 Crores (' 2.69 Crores as on March 31,2023) which is presented as current provision, since the Company does not have an unconditional right to defer settlement for any of these obligations. Provision for compensated absences has been made on the basis of actuarial valuation carried out as at the balance sheet date. The amount charged to the statement of profit & loss under Salaries and bonus in Note 28 Employee benefits expenses is ' 0.61 Crores (March 31, 2023 - 0.47 Crores)

(iii) Contribution to other funds

The Company makes Employee State Insurance Scheme contributions which are defined contribution plans, for qualifying employees. The Company recognised ' 0.00 Crores for the year ended March 31,2024 (' NIL for the year ended March 31,2023) for Employee State Insurance Scheme contributions in the statement of profit and loss. The contributions payable to these plans by the Company are at rates specified in the rules of the schemes.

Note 38 : Financial Instruments

The significant accounting policies, including the criteria for recognition, the basis of measurement and the basis on which income and expenses are recognised, in respect of each class of financial assets, financial liability and equity instrument are disclosed in note 2.2 j to the financial statements.

For financial assets and liabilities that are measured at fair value except investments in mutual fund, the carrying amounts are equal to the fair values.

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 — 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 the purpose of fair value disclosures, the Company has determined classes of assets and liabilities on the basis of the nature, characteristics and risks of the asset or liability and the level of the fair value hierarchy as explained above.

The following table summarises financial assets and liabilities measured at fair value on a recurring basis and financial assets that are not measured at fair value on a recurring basis (but fair value disclosures are required)

Assets and Liabilities that are disclosed at Amortised Cost for which Fair values are disclosed are classified as Level 3. If one or more of the significant inputs is not based on observable market data, the respective assets and liabilities are considered under Level 3.

At the end of the reporting year, there are no significant concentrations of credit risk for financial assets and financial liabilities designated at FVTPL. The carrying amount reflected above represents the Company's maximum exposure to credit risk of such financial assets and liabilities.

The fair values of the financial liabilities included in the level 3 category above have been determined in accordance with generally accepted pricing models based on a discounted cash flow analysis, with the most significant inputs being the discount rate that reflects the credit risk of counterparties.

(ii) Capital management

The Company manages it's capital to ensure that it will be able to continue as a going concern while maximising the return to stakeholders through the optimisation of the debt and equity balance. The capital structure of the Company consists of net debt (borrowings as detailed in notes 18 and 21 offset by cash and bank balances and current investments) and total equity of the Company. Also, refer note 1.3 on going concern and note 18 on Deferred payment liability for LF and SUC.

(iii) Financial risk management objectives

I nherent to the nature of the Company's business, there are a variety of financial risks, namely liquidity risk, market risk and credit risk. Developing policies and processes to assess, monitor, manage and address these risks is the responsibility of the Company's Management. The management oversees this risk management framework in the Company and intervenes as necessary to ensure there exists an appropriate level of safeguards against the key risks. Updates on compliance, exceptions and mitigating action are placed before the Audit Committee periodically.

The Company's management works closely to ensure there are appropriate policies and procedures governing the operations of the Company with a view to providing assurance that there is visibility into financial risks and that the business is being run in conformity with the stated risk objectives. Periodic reviews with concerned stakeholders provides an insight into risks to the business associated with currency movements, credit risks, etc. and necessary deliberations are undertaken to ensure there is an appropriate response to the developments.

The risk management objective of the Company is to hedge risk of change in the foreign currency exchange rates associated with it's direct transactions denominated in foreign currency. Since most of the transactions of the Company are denominated in its functional currency ('), any foreign exchange fluctuation affects the profitability of the Company and its financial position. Hedging provides stability to the financial performance by estimating the amount of future cash flows and reducing volatility.

The Company follows a consistent policy of mitigating foreign exchange risk by entering into appropriate hedging instruments as considered from time to time. The Company is having a defined risk management policy for exposure in foreign currencies. The Company does not enter into a foreign exchange transaction for speculative purposes.

(iv) Market Risk

The Company's activities expose it primarily to the financial risks of changes in foreign currency exchange rates and interest rates. The Company enters into a variety of derivative financial instruments to manage its exposure to foreign currency risk and interest rate risk, including:

• Forward foreign exchange contracts to hedge the exchange rate risk arising on foreign currency trade payables

• Cross currency interest rate swap

• Interest rate swaps to mitigate risk of rising interest rate

There has been no change to the Company's exposure to market risks or the manner in which these risks are being managed and measured.

Market risk exposures are measured using sensitivity analysis.

(iv) (a) Foreign Currency risk management

The Company undertakes transactions denominated in foreign currencies; consequently, exposures to exchange rate fluctuations arise.

The Company is having risk management policy which provides the guidelines for managing the currency risk exposure. Exchange rate exposures are managed within approved policy parameters using derivative/forward foreign exchange contracts wherein exposure maturing within 6 months are fully hedged.

Hedging Activities:

The Company uses foreign exchange forward contracts, Interest rate swap to manage some of its exposures. The foreign exchange forward contract is not designated as cash flow hedges and entered into periods consistent with foreign currency exposure of the underlying transactions.

The carrying amounts of the Company's foreign currency denominated monetary assets as at March 31,2024 is USD Nil (USD Nil as at March 31,2023), therefore the foreign currency exposure that are not hedged by derivative instruments is ' Nil as at March 31,2024 (' Nil as at March 31,2023).

(iv) (a) (i) Foreign Currency sensitivity analysis

The Company's sensitivity to a 5% increase and decrease in the Rupees against the relevant foreign currencies is ' Nil as at March 31, 2024 (' Nil as at March 31, 2023). 5% is the sensitivity rate which represents management's assessment of the reasonably possible change in foreign exchange rates. The sensitivity analysis includes only outstanding foreign currency denominated monetary items that are not hedged by derivative instruments and adjusts their translation at the year end for a 5% change in foreign currency rates. The sensitivity analysis includes external loans and vendors.

(iv) (a) (ii) Interest rate risk management

The Company is exposed to interest rate risk because it borrows funds at both fixed and floating interest rates. The floating interest rate risk on borrowings is managed by the Company by the use of interest rate swap contracts. Hedging activities are evaluated regularly to align with the interest rate views and defined risk appetite, ensuring the most cost-effective hedging strategies are applied. The Company's exposures to interest rate on financial asset and financial liabilities are detailed in the liquidity risk management section of this note.

As at March 31, 2024, the Company has variable rate borrowings of ' 3,845.63 Crores (' 3,962.35 Crores as at March 31,2023), out of which net exposure to interest rate risk is ' 3,845.63 Crores (' 2,995.49 Crores as at March 31,2023) after considering the effect of derivative instruments.

The sensitivity analysis below have been determined based on floating rate rupee borrowings that are not hedged by derivative instruments , the analysis is prepared assuming the amount of the liability outstanding at the end of the reporting year was outstanding for the whole year. A 50 basis point increase or decrease represents management's assessment of the reasonably possible change in interest rates.

If interest rate had been 50 basis points higher/lower and all other variables were held constant, the Company's loss for the year ended March 31, 2024 would increase and decrease by ' 19.23 Crores Crores (increase and decrease by ' 14.99 Crores as at March 31,2023).

(iv) (a) (iii) Interest rate swap contract

Using Interest rate swap contracts, the Company agrees to exchange floating rate of interest rate to fixed rate on agreed principal amounts. Such contracts enable the Company to mitigate the interest rate risk on borrowings. Such Contracts are settled on quarterly, semi-annual and on annual basis. The terms of the interest rate swaps generally match the terms of the underlying exposure. In cases where any hedge ineffectiveness arises, it is recognised through profit or loss. Interest Rate Swaps measured at fair value through OCI are designated as hedging instruments in cash flow hedges of floating rate borrowings.

(v) Credit risk management Financial assets

The Company maintains exposure in trade receivables, cash and cash equivalents, investments, term deposits with banks, security deposits with counter-parties. Individual risk limits are set for each counterparty based on financial position, credit rating and past experience. Credit limits and concentration of exposures are actively monitored by the Company.

The Company's maximum exposure to credit risk as at March 31, 2024 and March 31, 2023 is the carrying value of each class of financial assets as disclosed in the financial statements.

Trade receivables

Trade receivables are typically unsecured and are derived from revenue earned from customers. Trade receivables of the Company consist of a large number of customers, spread across diverse industries and geographical areas and hence the Company has minimal concentration of credit risk of its customers. Credit risk has been managed by the Company through credit approvals, establishing credit limits and continuously monitoring the creditworthiness of customers to which the Company grants credit terms in the normal course of business. The Company uses expected credit loss model to assess the impairment loss or gain. The Company uses a provision matrix and forward looking information and an assessment of the credit risk over the expected life of the financial asset to compute the expected credit loss allowance for trade receivables. The Company's maximum exposure to credit risk for the components of the balance sheet at March 31,2024 and March 31,2023 is the carrying amounts as disclosed in Note 11.

(vi) Liquidity risk management

Ultimate responsibility for liquidity risk management rests with the management, which has established an appropriate liquidity risk management framework for the management of the Company's short-term, medium-term and long-term funding and liquidity management requirements. The Company manages liquidity risk by maintaining adequate banking and other borrowing facilities, by continuously monitoring forecast and actual cash flows, and by matching the maturity profiles of financial assets and liabilities. The note below sets out details of undrawn facilities that the Company has at its disposal to further reduce liquidity risk. Also, refer note 1.3 on going concern and note 18 on Deferred payment liability for LF and SUC.

As at March 31,2024, the Company has undrawn committed borrowing facilities of ' 166.29 Crores (March 31,2023 - ' 127.59 Crores) towards working capital limits expiring within a year and renewable at discretion of the banks.

Liquidity and interest risk

The following tables detail the Company's remaining contractual maturity for its financial liabilities with agreed repayment periods. The tables have been drawn up based on the undiscounted cash flows of financial liabilities based on the earliest date on which the Company can be required to pay. The tables include both interest and principal cash flows. The contractual maturity is based on the earliest date on which the Company may be required to pay.

The disclosed financial derivative instruments in the above table are the gross undiscounted cash flows. However, those amounts may be settled gross or net.

Excessive risk concentration

There are no significant concentrations of credit risk, whether through exposure to individual customers, specific industry sectors and/ or regions. Further, the Company's policies and procedures include specific guidelines to whereby maximum bank wise limits are set up to which the Company can hedge with each of the banks.

Note 40 : Company as a lessee Lease liabilitiesA Background of leasing activity

The Company has lease contracts for various Network Sites, land, buildings and dark fibre (IRU) also. Company is using Network Sites for transmission and for in door network coverage purpose. The properties taken on lease are used as offices. The average lease period for the sites is 4 years with an average escalation of 3-5% per annum. The average lease period for properties is 2-3 years with an average escalation of 3-5%. Generally the Company is restricted to sublet the sites taken on lease.

Refer note 38 for Maturity Analysis of Lease liabilities C Total cash outflow

The Company has a total cash flow for leases of ' 61.45 Crores for the year ended March 31, 2024 (' 63.04 Crores - March 31, 2023), out of which the amount paid against interest component is ' 5.41 Crores (' 6.58 Crores - March 31, 2023) and against principal is ' 44.90 Crores (' 42.13 Crores - March 31,2023) for the sites considered for ROU and Lease Liability calculation, the balance payment is made for short term leases and variable rent.

The average escalation rate of 5% is used to calculate the future variable payments.

Additional information pertaining to variable lease payments

The Company has lease contracts for Network sites where a part of the total rent is variable. The additional rent paid is ' 9.63 Crores for year ended March 31,2024 and ' 8.96 Crores for the financial year ended March 31,2023.

F Additional information on short term and low value leases

The Company had a leases of a building and MSC sites which are short term i.e. lease term of less then 1 year and leases of low-value assets. These leases were short term lease and the Company elected not to recognise right to use assets and lease liabilities for these leases. The lease payment of such leases are directly debited to Statement of Profit and Loss.

G Additional information on extension and termination option

Under IND AS 116, lease term is defined as non-cancellable period together with any renewal option or termination option with lessee if it is reasonably certain to exercise the option. Both these options with the Company are only considered for the purpose of determination of lease term and the options with lessor is ignored. Most of the lease contracts have an option of extension and termination on mutual concession. The Company reassesses whether it is reasonably certain to exercise the options if there is a significant event or significant change in circumstances within its control. Generally, the Company assesses at lease commencement whether it is reasonably certain to exercise the options. The Company assesses the probability of options basis the review of the network design and the technology and business plans.

Company as a lessor- operating lease

Company as a lessor- operating lease The Company enters into 'Indefeasible right to use' ('IRU') arrangements wherein the right to use the assets is given over the substantial part of the asset life. However, as the title to the assets and the significant risks associated with the operation and maintenance of these assets remains with the Company, such arrangements are recognised as operating lease. The contracted price is recognised as revenue during the tenure of the agreement. Unearned IRU revenue received in advance is presented as deferred revenue within liabilities in the Balance Sheet.

Note 41 : Segment Reporting

The Company is engaged in providing telecommunication services under Unified License. These, in the context of Ind AS 108 on "Segment reporting", are considered to constitute a single reportable segment. Further, the Company provide telecommunication services only in the Indian domestic market and accordingly secondary segment reporting disclosure are not required. Revenues of approximately ' 161.05 Crores (March 31,2023 ' 175.13 Crores ) are derived from a single external customer.

Note 43 : Deferred tax

No provision for current income tax is required to be made as, on the basis of the Company's computations, there is no taxable income. The Company also carries forward accumulated losses resulting into tax loss carry forward situation. Since, it is not probable thatthe Company will generate future taxable profits; no deferred tax asset has been recognised on unused tax losses. Accordingly, the Company has restricted recognition of deferred tax asset to the extent of deferred tax liability.

Given that uncertainty over future taxable profits available for set off against unabsorbed depreciation and unabsorbed business losses, the Company has not recognised deferred tax assets of ' 4,872.79 Crores (March 31, 2023: ' 6,682.23 Crores) in respect of unabsorbed depreciation and business losses amounting to ' 19,361.05 Crores (March 31,2023: ' 19,122.68 Crores) in aggregate which can be carried forward against future taxable income. Tax losses carry forward for which no deferred tax assets were recorded amounted to:

a. Figures pertaining to the previous period have been disclosed in italics

b. Provision for contingencies is primarily towards the outstanding claims/litigations against the Company. The Company has evaluated the obligations through Probable, Possible and Remote (PPR) model and reassessed the estimates as a result of more information or experience gained and to reflect the current best estimate. In making the evaluation for PPR, the Company has taken into consideration the Industry perspective, legal and technical view, availability of documentation/agreements, recent court judgments, interpretation of the matter, independent opinion from professionals (specific matters) etc

Note 50 : Additional regulatory information required by Schedule III(i) Details of benami property held

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

(ii) Wilful defaulter

The Company has not been declared wilful defaulter by any bank or financial institution or other lender.

(iii) Compliance wit number of layers of companies

The Company does not have any subsidiaries, associates and joint ventures.

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

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

(v) Utilisation of borrowed funds and share premium

(1) The Company has not advanced or loaned or invested funds to any other persons or entities, including foreign entities (Intermediaries) with the understanding that the Intermediary shall:

a. 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

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

(2) The Company has not received any fund from any persons or entities, including foreign entities (Funding Party) with the understanding (whether recorded in writing or otherwise) that the Company shall:

a. directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (Ultimate Beneficiaries) or

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

(vi) Undisclosed income

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

(vii) Details of crypto currency or virtual currency

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

(viii) Valuation of PP&E, right-of-use assets, intangible asset and investment property

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

(ix) Title deeds of immovable properties not held in name of the Company

The title deeds of all the immovable properties (other than properties where the Company is the lessee and the lease agreements are duly executed in favour of the lessee), to the standalone financial statements, are held in the name of the Company.

(x) Registration of Charges

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

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

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

(xii) Borrowing secured against current assets

During the year, the Company has been sanctioned/renewed working capital limits in excess of ' 5 Crores, in aggregate, from banks on the basis of security of current assets and movable fixed assets. The Company was not required to file quarterly returns or statements with the bank and accordingly Company has not filed the same.