t. Provisions and contingent liabilities

A provision is recognised when the Company has
a present obligation as a result of past events
and it is probable that an outflow of resources
embodying economic benefits will be required to
settle the obligation in respect of which a reliable
estimate can be made.

Contingent liabilities are disclosed when there
is a possible obligation arising from past events,
the existence of which will be confirmed only by
occurrence or non-occurrence of one or more
uncertain future events not wholly within the
control of the Company or a present obligation
that arises from past events where it is either
not probable that an outflow of resources will
be required to settle or a reliable estimate of the
amount cannot be made. Contingent liabilities are
disclosed in the notes. Contingent assets are not
recognised in the financial statements.

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

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

u. Financial instruments

A financial instrument is any contract that gives rise to
a financial asset of one entity and a financial liability or
equity instrument of another entity. Financial assets
and liabilities are recognised when the Company
becomes a party to the contractual provisions of an
instrument. Financial assets and liabilities are initially
measured at fair value. Transaction costs that are
directly attributable to the acquisition or issue of
financial assets and financial liabilities (other than
financial assets and financial liabilities at fair value
through profit or loss) are added to or deducted
from the fair value measured on initial recognition of
financial asset or financial liability.

A. Financial assets

i. Financial assets at amortised cost

Financial assets are subsequently
measured at amortised cost using the
effective interest rate (EIR) if these
financial assets are held within a business
whose objective is to hold these assets
in order to collect contractual cash flows
and the contractual terms of the financial
asset give rise on specified dates to
cash flows that are solely payments of
principal and interest on the principal
amount outstanding.

ii. Financial assets at fair value through
other comprehensive income (FVTOCI)

Financial assets are measured at fair
value through other comprehensive
income if these financial assets are
held within a business model whose
objective is achieved by both collecting
contractual cash flows that give rise on
specified dates to solely payments of
principal and interest on the principal
amount outstanding and by selling
financial assets.

The Company has made an irrevocable
election to present in other
comprehensive income subsequent
changes in the fair value of equity
investments not held for trading.

iii. Financial assets at fair value through
profit or loss (FVTPL)

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
profit or loss. Financial assets at fair
value through profit or loss are carried in
the balance sheet at fair value with net
changes in fair value recognised in the
statement of profit and loss.

iv. De-recognition

A financial asset (or, where applicable, a
part of a financial asset or part of a group

of similar financial assets) is primarily
de-recognised (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.

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 lower of the original
carrying amount of the asset and
maximum amount of consideration
that the Company could be
required to repay.

v. Impairment of financial assets

The Company assesses impairment
based on expected credit loss (ECL)
model to the following:

• Financial assets measured at
amortised cost;

• Financial assets measured
at fair value through other
comprehensive Income

The Company follows ‘simplified
approach' for recognition of impairment
loss allowance on trade receivables.

Under the simplified approach, the
Company does not track changes
in credit risk. Rather, it recognizes
impairment loss allowance based on
lifetime ECL at reporting date.

The Company uses a provision matrix
to determine impairment loss allowance

on the portfolio of trade receivables.

The provision matrix is based on its
historically observed default rates over
the expected life of the trade receivables
and is adjusted for forward looking
estimates. The historically observed
default rates and forward-looking
changes in estimates are analyzed and
updated annually.

For assessing ECL on a collective basis,
financial assets have been grouped on
the basis of shared risk characteristics
and basis of estimation may change
during the course of time due to change
in risk characteristics.

B. Financial liabilities

i. Loans and borrowings

After initial recognition, interest-bearing
loans and borrowings are subsequently
measured at amortised cost on accrual
basis and using the EIR method.

ii. Guarantee fee obligations

Financial guarantee contracts are
subsequently measured at the higher
of the amount of loss allowance
determined and the amount recognised
less cumulative amortisation.

iii. De-recognition

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

C. Offsetting of financial instruments

Financial assets and financial liabilities are
offset and the net amount is reported in
the balance sheet if there is a currently
enforceable legal right to offset the
recognised amounts and there is an intention

to settle on a net basis, to realise the assets
and settle the liabilities simultaneously.

D. Derivative financial instruments - Initial
and subsequent measurement

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

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

At the inception of a hedge relationship, the
Company formally designates and documents
the hedge relationship to which the Company
wishes to apply hedge accounting and the
risk management objective and strategy for
undertaking the hedge. The documentation
includes the Company's risk management
objective and strategy for undertaking
hedge, the hedging/ economic relationship,
the hedged item or transaction, the nature
of the risk being hedged, hedge ratio and
how the entity will assess the effectiveness
of changes in the hedging instrument's fair
value in offsetting the exposure to changes
in the hedged item's fair value or cash flows
attributable to the hedged risk. Such hedges
are expected to be highly effective in achieving
offsetting changes in fair value or cash flows
and are assessed on an ongoing basis to
determine that they actually have been highly
effective throughout the financial reporting
periods for which they were designated.

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

i. Cash flow hedges

The Company uses derivatives such
as Interest Rate Swaps, options and
forwards etc. to hedge its exposure to
interest rate risk on future cash flows on
floating rate loans and foreign currency
risk. The ineffective portion relating to
such contracts is recognised in profit
and loss and the effective portion is
recognised in OCI. Amounts recognised
as OCI are transferred to profit or loss
when the hedged transaction affects
profit or loss, such as when the hedged
financial income or financial expense
is recognised or when a forecast sale
occurs. When the hedged item is the cost
of a non-financial asset or non-financial
liability, the amounts recognised as OCI
are transferred to the initial carrying
amount of the non-financial asset or
liability. If the hedging instrument expires
or is sold, terminated or exercised without
replacement or rollover (as part of the
hedging strategy), or if its designation
as a hedge is revoked, or when the
hedge no longer meets the criteria for
hedge accounting, any cumulative gain
or loss previously recognised in OCI
remains separately in equity until the
forecast transaction occurs or the foreign
currency firm commitment is met.

ii. Embedded derivatives

Derivatives embedded in a host contract
that is an asset within the scope of Ind
AS 109 are not separated. Financial
assets with embedded derivatives
are considered in their entirety when
determining whether their cash flows
are solely payment of principal and
interest. Derivatives embedded in all
other host contract are separated only if
the economic characteristics and risks of
the embedded derivative are not closely
related to the economic characteristics
and risks of the host and are measured
at fair value through profit or loss.
Embedded derivatives closely related to
the host contracts are not separated.

v. Non-current assets held for sale

Non-current assets and disposal groups are
classified as held for sale if their carrying amount
will be recovered principally through a sale

transaction rather than through continuing use.
This condition is regarded as met only when the
asset (or disposal group) is available for immediate
sale in its present condition subject only to terms
that are usual and customary for sales of such
asset (or disposal group) and its sale is highly
probable. The Management must be committed
to the sale, which should be expected to qualify
for recognition as completed sale within one year
from the date of classification.

Non-current assets held for sale/ for distribution
to owners and disposal groups are measured at
the lower of their carrying amount and the fair
value less costs to sell/ distribute. Assets and
liabilities classified as held for sale/ distribution
are presented separately in the balance sheet.
Property, plant and equipment and intangible
assets once classified as held for sale/ distribution
to owners are not depreciated or amortised.

w. Business Combination under common control

Transactions arising from transfers of assets /
liabilities, interest in entities or businesses between
entities that are under the common control, are
accounted at their carrying amounts. The difference,
between any consideration paid / received and the
aggregate carrying amounts of assets / liabilities and
interests in entities acquired / disposed (other than
impairment, if any), is recorded in capital reserve.

x. Recent pronouncements

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 31 March 2025, 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. 01
April 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.

3. Business Combination

The Company has entered into Business Transfer
Agreement dated 22 March 2024 to hive - off the
Company's identified new edged digital services
business (‘identified business undertaking') to its

wholly owned subsidiary, Novamesh Limited as a going
concern on ‘slump - sale' basis w.e.f 01 April 2024.
Accordingly, the amounts for the year ended 31 March
2024 are not comparable with current year.

In accordance to above, the Company has transferred
below assets and liabilities at their carrying values as at
01 April 2024 to Novamesh Limited for a consideration
of H 453.05 crores. Book net worth of the identified
business undertaking is H 452.95 crores and the
difference of H 0.10 crores between the consideration
and net worth is recognised in other income.

10. Investments (Contd..)

I. The Company has an investment of H 3,733.41 crores (31
March 2024: H 3,733.41 crores) in equity shares of Tata
Communications International Pte Limited (‘TCIPL').

In the opinion of the management, having regard to
the nature of the subsidiary's business and future
business projections, there is no diminution, other than
temporary in the value of investment despite significant
accumulated losses (refer note 2(c) (ii) (f)).

During the previous year, the Company had made additional
investment of H 1,212.26 crores in equity shares of TCIPL.

11. During the previous year, the Company had made
additional investment of H 20 crores in equity shares
of Tata Communications Payment Solutions Limited
(‘TCPSL') and also refer note 33 (ii).

10. Investments (Contd..)

Company) and Kaleyra, wherein Kaleyra is the surviving
entity. Additionally, the Company had assumed all of
Kaleyra's outstanding adjusted gross and net debt of
approximately H 1,803.61 crores and H 1,553.59 crores
as on the acquisition date, respectively. Consequent
to the completion of the acquisition on 04 October
2023, Kaleyra, was then delisted on the New York
Stock Exchange.

IV. During the current year, the Company has made
investment of H 500.10 crores in equity shares of
Novamesh Limited, a wholly owned direct subsidiary of
the Company (also refer note 3).

V. During the current year, the Company invested H 223.74
crores in equity shares of TC UK. As a result, TC UK,
previously a direct wholly owned subsidiary of Tata
Communications (Netherlands) B.V. under TCIPL,
became a direct wholly owned subsidiary of the
Company effective 27 September 2024.

In the opinion of the management, having regard to the
nature of the subsidiary's business and future business
projections, there is no diminution, other than temporary
in the value of investment (refer note 2(c) (ii) (f)).

VI. During the current year, the Company has made
additional investment of H 281.44 crores (during
previous year H 267.21 crores) in equity shares of STT
Global Data Centres India Private Limited (STT GDC).

VII. Based on the assessment of the management, the
carrying value of investment in TTSL does not require
any adjustment.

VIII. During the previous year, the Company had divested
equity investment of H 5.63 crores in KAS onsite Power
Solutions LLP consequent to the novation of the power
purchase agreement to STT GDC.

10. Investments (Contd..)

IX. During the current year, the Company has made
following investments:

a) H 8.93 crores in equity shares of Nivade
Windfarm Limited

b) H 0.02 crores in equity shares of Green Infra
Wind Farms Limited

c) H 0.01 crores in equity shares of Green Infra Wind
Generation Limited

X. During the current year, the Company has divested
equity investment in Radhapuram Wintech Private
Limited of H 0.02 crores.

33. Summary of exceptional items (Contd..)

i. Gain on sale of asset “held for sale”

During the year, the Company concluded the sale of few
of its properties which were disclosed under assets held
for sale, for a total consideration of H 926.10 crores (2023¬
24: H 151.37 crores) (net of transaction cost) resulting in
to a gain of H 733.02 crores (2023-24: H 1.97 crores).

The above sale of properties includes one of the property
situated at Ambattur, Chennai sold to an associate
company. Necessary approvals from the shareholders were
obtained as this was a material related party transaction.

ii. Loss on sale of investment in subsidiary

The Company had investment in its wholly owned
subsidiary Tata Communications Payment Solutions
Limited (TCPSL). During the current year, the Company
has divested its entire stake in TCPSL, for a consideration
of H 423.78 crores (net of transaction costs of H 7.50
crores) (including deferred consideration of H 88.30
crores disclosed under other current financial assets)
resulting into a loss (including impairment) on sale of
investment of H 356.50 crores.

iii. Interest on tax on license fees

During the previous year, the Hon'ble Supreme Court
of India had pronounced a judgement regarding the
treatment of Variable License Fee paid to DOT under
New Telecom Policy 1999, since July 1999, to be treated
as capital in nature and not revenue expenditure for the
purpose of computation of taxable income. Pertinently,
even though the Company was not a party to the above
judgement and its case is different and distinguishable
from the above judgment, as a matter of prudence the
Company had assessed and recorded a provision of H
185.52 crores towards interest which had been disclosed
as an exceptional item and a provision of H 21.09 crores
towards tax (net) due to change in effective tax rate on
account of adoption of new tax regime.

During the current year, the Hon'ble Supreme Court of
India has further issued an order waiving the payment
of interest for the period for which the tax demand is
now to be met in respect of the above matter. Based
on said judgement, the Company has written back the
provision of H 185.52 crores towards interest which has
been disclosed as an exceptional item.

iv. Staff cost optimisation

As part of its initiative to enhance the long-term
efficiency of the business, the Company undertook
organisational changes to align to the Company's current
and prospective business requirements. These changes
involved certain positions in the Company becoming
redundant and the Company incurred a one-time charge.

The rules of the Fund administered by the Trust require
that if the Board of Trustees are unable to pay interest
at the rate declared for Employees' Provident Fund
by the Government under the applicable law for the
reason that the return on investment is lower or for any
other reason, then the deficiency shall be made good
by the Company. Having regard to the assets of the
Fund and the return on the investments, the Company
does not expect any deficiency in the foreseeable
future. There has also been no such deficiency since the
inception of the Fund.

Provident fund contributions amounting to H 70.44
crores (2023 - 2024: H 80.29 crores) have been charged
to the Statement of Profit and Loss, under contributions
to provident and other funds in note 29 "Employee
benefit expenses”.

ii. Gratuity

The Company makes annual contributions under the
Employees Gratuity Scheme to a fund administered
by Trustees of the Tata Communications Employees'

Gratuity Fund Trust covering all eligible employees. The
plan provides for lump sum payments to employees
whose right to receive gratuity had vested at the time
of resignation, retirement, death while in employment
or on termination of employment of an amount
equivalent to 15 days' salary for each completed year of
service or part thereof in excess of six months. Vesting
occurs upon completion of five years of service except
in case of death.

iii. Medical benefit

The Company reimburses domiciliary and hospitalisation
expenses not exceeding specified limits incurred by
eligible and qualifying employees and their dependent
family members under the Tata Communications
Employee's Medical Reimbursement Scheme.

iv. Pension plan

The Company's pension obligations relate to certain
employees transferred to the Company from OCS.
The Company purchases life annuity policies from an
insurance company to settle such pension obligations.

35. Employee benefits (Defined benefit plan)

i. Provident fund

The Company makes contributions towards a
provident fund under a defined benefit retirement
plan for qualifying employees. The provident fund
(the ‘Fund') is administered by the Trustees of the
Tata Communications Employees' Provident Fund
Trust (the ‘Trust') and by the Regional Provident Fund
Commissioner. Under this scheme, the Company is
required to contribute a specified percentage of payroll
cost to fund the benefits.

42. Financial risk management objectives and
policies

The Company's principal financial liabilities other than
derivatives, comprise loans and borrowings, trade and
other payables and financial guarantee contracts. The
main purpose of these financial liabilities is to finance the
Company's operations and to provide guarantees to support
its subsidiaries' operations. The Company's principal financial
assets include loans, trade and other receivables, current
investments and cash and cash equivalents that derive
directly from its operations. The Company has investments
on which gain or loss on fair value is recognised through
profit and loss or other comprehensive income and also
enters into derivative transactions.

The Company is exposed to market risk, credit risk and
liquidity risk. The Company's senior management oversees
the management of these risks.

The Company's senior management ensures that financial
risk activities are governed by appropriate policies and
procedures and that financial risks are identified, measured
and managed in accordance with the Company's policies
and risk objectives. All derivative activities for risk
management purposes are carried out by specialist teams
that have the appropriate skills, experience and supervision.
It is the Company's policy that no trading in derivatives
for speculative purposes may be undertaken. The senior
management reviews and agrees policies for managing each
of these risks, which are summarised below:

a) 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. Market risk comprises three
types of risk: interest rate risk, currency risk and other
price risk, such as equity price risk and commodity risk.
Financial instruments affected by market risk include
loans and borrowings, deposits, FVTPL and FVTOCI
investments and derivative financial instruments.

i) Interest rate risk

Interest rate risk is the risk that the future cash flows
with respect to interest receipts and payments on
loans extended or availed will fluctuate because
of changes in market interest rates. The Company
does not have exposure to the risk of changes
in market interest rates as it has long-term debt
obligations and loan receivables with fixed interest
rates and loans extended on variable rate are
classified as short term.

ii) Foreign currency risk

Foreign currency risk is the risk that the fair value
or future cash flows of an exposure will fluctuate
because of changes in foreign exchange rates.
The Company's exposure to the risk of changes
in foreign exchange rates relates primarily
to the Company's operating activities (when

42. Financial risk management objectives and
policies (Contd..)

revenue or expense is denominated in a foreign
currency) and the Company's net investments in
foreign subsidiaries.

The Company's objective is to try and protect the
underlying values of the Company's balance sheet
exposures. Exposures are broadly categorised into
receivables and payable exposures.

The Company manages its foreign currency risk
by entering into derivatives on net exposures, i.e.
netting off the receivable and payable exposures
in order to take full benefit of natural hedge.

Non-crystalised (not in books) exposures for which
cash flows are highly probable are considered for
hedging after due consideration of cost of cover,
impact of such derivatives on profit and loss due
to MTMs (mark to market loss or gains), market /
industry practices, regulatory restrictions etc.

As regard net investments in foreign operations,
hedging decisions are guided by regulatory
requirement, accounting practices and in
consultation and approval of senior management
on such hedging action.

The foreign exchange rate sensitivity is calculated
by aggregation of the net foreign exchange rate
exposure and a simultaneous parallel foreign
exchange rate shift of all the currencies by 5%
against the functional currency of the Company.

The following analysis has been worked out based
on the net exposures of the Company as of the
date of balance sheet which would affect the
Statement of Profit and Loss and equity.

The following tables sets forth information relating
to unhedged foreign currency exposure (net) as at
31 March 2025 and 31 March 2024.

42. Financial risk management objectives and
policies (Contd..)

owned subsidiaries (WOS) with repayment date
in August 2026. As the CCS hedges against the
foreign currency exposure arising out of the
foreign currency loan given to its WOS, with both
the CCS and loan to WOS maturing on the same
date, it has been considered as natural hedge to
arrive at the unhedged foreign currency exposure
(net) amount in table above.

5% appreciation/ depreciation of the respective
foreign currencies with respect to functional
currency of the Company would result in decrease/
increase in the Company's profit before tax by
approximately H 18.67 crores and H 12.76 crores
for the year ended 31 March 2025 and 31 March
2024 respectively.

iii) Equity price risk

The Company's non-listed equity securities are
not susceptible to market price risk arising from
uncertainties about future values of the investment
in securities as these investments are accounted
for at cost in the financial statements.

b) Credit risk

Credit risk is the risk that the counterparty will not
meet its obligations under a financial instrument or
a customer contract, leading to a financial loss. The
Company is exposed to credit risk from its operating
activities (primarily trade receivables) and from its
financing activities including deposits with banks and
financial institutions, foreign exchange transactions and
other financial instruments.

In determining the allowances for doubtful trade
receivables, the Company has used a simplified
approach by computing the expected credit loss
allowance for trade receivables based on a provision
matrix. The provision matrix takes into account historical
credit loss experience and is adjusted for forward
looking information. The expected credit loss allowance
is based on the ageing of the gross receivables as at the
reporting date and the net receivables after considering
expected credit loss allowance is as mentioned below:

42. Financial risk management objectives and
policies (Contd..)

c) Liquidity risk

The Company monitors its risk of a shortage of funds
using a liquidity planning tool.

The Company's objective is to maintain a balance
between continuity of funding and flexibility
through the use of bank overdrafts, bank loans,
debentures, preference shares, finance leases and hire
purchase contracts.

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. The Company's corporate treasury
department is responsible for liquidity, funding as well
as settlement management. In addition, processes
and policies related to such risks are overseen by
senior management.

During the previous year, the Company entered
into cross currency swaps (CCS) for USD 211.83 Mn
against NCD issued for H 1,750 Crores. The maturity
of the CCS matches with the maturity date of the
NCDs i.e. on August 2026. The proceeds from the
CCS was immediately utilised by the Company
to advance a loan of USD 212 Mn to its wholly

46. Contingent liabilities and commitments: (Contd..)

1996-97 onwards and transfer pricing adjustments
carried out by revenue authorities. The Company
has contested the disallowances / adjustments
and has preferred appeals which are pending.

The Company has certain tax receivables against
the ongoing litigations which will be settled
on completion of the respective litigation. The
Company is of the view that the said balances are
recoverable subject to favourable outcome of the
same and hence does not require any adjustments
as at 31 March 2025.

2. Other claims

i. Telecom Regulatory Authority of India
("TRAI”) reduced the Access Deficit Charge
("ADC”) rates effective 1 April 2007. All
telecom service providers including National
Long Distance ("NLD”) and International
Long Distance ("ILD”) operators in India are
bound by the TRAI regulations. Accordingly,
the Company has recorded the cost relating
to ADC at revised rates as directed by TRAI.
However, BSNL continued to bill at the ADC
rate applicable prior to 1 April 2007. BSNL
had filed an appeal against TRAI Interconnect
Usage Charges ("IUC”) regulation of
reduction in ADC and currently this matter is
pending with the Hon'ble Supreme Court. The
excess billing of BSNL amounting to H 311.84
crores (31 March 2024: H 311.84 crores) has
been disclosed as contingent liability.

ii. As at 31 March 2025, the Company has
received ‘Show Cause-cum Demand Notices'
(‘demand notices') from Department
of Telecommunications of India (‘DOT')
aggregating to H 8,064.98 crores for financial
years (FY) ranging from FY 2005-06 to FY
2023-24 (As at 31 March 2024: H 8,082.80
crores for financial years (FY) ranging from
FY 2005-06 to FY 2022-23), which have been
revised over a period of time. These demand
notices include H 276.68 crores (As at 31 March
2024: H 276.68 crores) towards disallowance
of deductions claimed by the Company on
payment basis for FY 2010-11 under ISP license
and FY 2006-07 & FY 2009-10 under NLD
license (‘three years'), considered remote.

The Company has existing appeals relating
to its ILD, NLD & ISP licenses which were
filed in the past and are pending at the
Hon'ble Supreme Court and TDSAT and the

46. Contingent liabilities and commitments: (Contd..)

Company's appeals are not covered by the
Hon'ble Supreme Court judgement dated
October 24, 2019, on AGR under UASL.
Further, the Company believes that all its
licenses are different from UASL, which was
the subject matter of Hon'ble Supreme Court
judgement of October 24, 2019. The Company
has obtained stay orders for payment of
these demands and based on its assessment
and independent legal opinions, believes that
it will be able to defend its position.

Accordingly, the Company has included H
7,734.12 crores (As at 31 March 2024: H 7,751.94
crores) as part of the contingent liability (net of
provision H 54.18 crores (As at 31 March 2024:
H 54.18 crores)) and H 276.68 crores (As at 31
March 2024: H 276.68 crores) as remote, being
the disallowance of deductions claimed by the
Company on payment basis for three years.

The total contingent liability in respect of
all AGR dues including above demands
and interest computed from the date of
the demand till the year end, amounts to
H 9,896.80 crores (As at 31 March 2024 -
H 8,679.06 crores).

iii. Other claims of H 401.83 crores (31 March 2024:
H 341.73 crores) mainly pertain to routine suits
for collection, commercial disputes, claims
from customers and/or suppliers, BSNL port
charges and claim from Employee State
Insurance Corporation.

Based on the management assessment and legal
advice (wherever taken), the Company believes
that the above claims are not probable and would
not result in outflow of resources embodying
economic benefits.

b. Commitments

i. Capital commitments

Estimated amount of contracts remaining to be
executed on capital account, not provided for
amount to H 546.05 crores (31 March 2024: H 214.90
crores) (net of capital advances).

ii. Other commitments

The Company has committed loan facility to
wholly owned subsidiaries to the tune of H 2,692.12
crores (31 March 2024: H 3,085.87 crores) as at 31
March 2025, utilisation of which is subject to future
requirements and appropriate approval processes
from time to time.

Notes:

a. Increased mainly due to investments made and short term borrowings availed during the year.

b. Decreased mainly due to short term borrowings availed during the year.

c. Refer note 33.

d. Bad debts written off H 48.17 crores (2023-24: H 29.59 crores).

51. The Company has used accounting software's 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
software, except that, audit trail feature is not enabled at the database level and certain master fields (asset master,
supplier master and general ledger account master) for users with privileged/administrative access rights were enabled
on 9 August 2024, which relates to SAP application. Also, the audit trail feature has not been enabled for a billing
application with respect to its voice business unit.

Additionally, the audit trail of prior year(s) has been preserved as per the statutory requirements for record retention to
the extent it was enabled and recorded in the respective years.

52. Events after the reporting period

The Company has invested H 772.31 crores in equity shares of Tata Communications (Netherlands) B.V. (‘TC NL'). As a result, TC
NL, previously a direct wholly owned subsidiary of TCIPL, became a direct wholly owned subsidiary of Tata Communications
Limited effective 02 April 2025.

There are no significant subsequent events other than the above between the year ended 31 March 2025 and signing of
financial statements as on 22 April 2025 which have material impact on the financials of the Company.

53. Approval of financial statements

These financial statements are approved for issue by the board of directors in their meeting held on 22 April 2025.

For S.R. Batliboi & Associates LLP For and on behalf of the Board of Directors

Chartered Accountants Tata Communications Limited

ICAI Firm Registration No. 101049W/ E300004 CIN-L64200MH1986PLC039266

HORMUZ ERUCH MASTER N. GANAPATHY SUBRAMANIAM A. S. LAKSHMINARAYANAN

Partner Chairman Managing Director & CEO

Membership No. 110797 DIN : 07006215 DIN : 08616830

Mumbai Mumbai Mumbai

Date: 22 April 2025

KABIR AHMED SHAKIR ZUBIN ADIL PATEL

Chief Financial Officer Company Secretary

Mumbai Mumbai

Date: 22 April 2025