iii. Contingent liabilities and provisions

The contingent liability is a possible obligation that
arises from past events whose existence will be
confirmed by the occurrence or non-occurrence of one
or more uncertain future events beyond the control of
the Company. The Company evaluates the obligation
through Probable, Possible or Remote model ('PPR').
In making the evaluation for PPR, the Company take
into consideration the Industry perspective, legal
and technical view, availability of documentation/
agreements, interpretation of the matter, independent
opinion from professionals (specific matters) etc. which
can vary based on subsequent events. The Company
provides the liability in the books for probable cases,
while possible cases are shown as Contingent Liability.
The remote cases are not disclosed in the financial
statement. Contingent assets are neither recognized
nor disclosed in the financial statements.

iv. Defined benefit plans (gratuity benefits)

The cost of the defined benefit gratuity plan and the
present value of the gratuity obligation are determined
using actuarial valuations. An actuarial valuation
involves making various assumptions that may differ
from actual developments in the future. These include
the determination of the discount rate, future salary
increases and mortality rates. Due to the complexities
involved in the valuation and its long-term nature,
a defined benefit obligation is highly sensitive to
changes in these assumptions. All assumptions are
reviewed at each reporting date.

v. Fair value measurement and valuation

Some of Company's assets and liabilities are measured
at fair value for financial reporting purposes. In
estimating the fair value of an asset and liabilities, the
Company uses market - observable data to the extent
it is available. Where Level 1 inputs are not available,
the Company engages third party qualified valuers to
perform the valuation. Information about the valuation
techniques and inputs used in determining the fair
value of various assets and liabilities are disclosed in
note 2.2 (g) and 38.

vi. Going concern

The Company prepares the financial statement on a
Going Concern basis in view of financial support from
Ultimate Holding Company and assuming the cash
flows generation from the continuation of operations,
outflow for capital expenditure and the repayment
obligations of debt and interest for the next twelve
months. In calculating the cash flow generation
from the business, certain assumptions are required
to be made in respect of highly uncertain matters,
including management's expectations of earnings,

interest cost and capex outflow to reflect the risks
involved. The Company also make certain assumptions
regarding the continuation of credit from lenders.

vii. Provision for onerous contracts

Provision for foreseeable losses on long term contracts
is primarily on account of various contracts with
Infrastructure Provider vendors which became onerous
due to closure of IP sites before the agreed lock in
period. An onerous contract is a contract in which the
unavoidable costs of meeting the obligations under
the contract exceed the economic benefit expected
to be received under it.

viii. Leases

The Company evaluates if an arrangement qualifies
to be a lease as per the requirements of Ind AS 116.
The application of Ind AS 116 requires company
to make judgements and estimates that affect the
measurement of right-of-use assets and liabilities. The
Company uses significant judgement in assessing the
lease term and the applicable discount rate.

The Company determines the lease term as the
non-cancellable period of a lease, together with both
periods covered by an option to extend the lease if
the Company is reasonably certain to exercise that
option; and periods covered by an option to terminate
the lease if the Company is reasonably certain not
to exercise that option. In assessing whether the
Company is reasonably certain to exercise an option
to extend a lease, or not to exercise an option to
terminate a lease, it considers all relevant facts and
circumstances that create an economic incentive for
the Company to exercise the option to extend the
lease, or not to exercise the option to terminate the
lease. The Company revises the lease term if there
is a change in the relevant facts and circumstances.
Estimates are required to determine the appropriate
discount rate used to measure lease liabilities.

The Company cannot readily determine the interest
rate implicit in the lease, therefore, it uses its
incremental borrowing rate (IBR) to measure lease
liabilities. The Company uses return on government
securities with similar maturity as base rate and makes
adjustments for spread based on the Company's
credit rating as the implicit interest rate is not
readily ascertainable.

2.4 Summary of other accounting policies

This note provides a list of other accounting policies
adopted in the preparation of these financial statements to
the extent they have not already been disclosed in the other
notes above. These policies have been consistently applied
to all the years presented, unless otherwise stated.

a) Current and non-current classification

The Company presents assets and liabilities
in the balance sheet based on current/
non-current classification.

When an asset meets any of the following criteria it is
treated as current:

• Expected to be realised or intended to be sold or
consumed in normal operating cycle

• Held primarily for the purpose of trading

• Expected to be realised within twelve months after
the reporting period, or

• Cash or cash equivalent unless restricted from
being exchanged or used to settle a liability for at
least twelve months after the reporting period

All other assets are classified as non-current.

When a liability meets any of the following criteria it is
treated as current:

• It is expected to be settled in normal operating cycle

• It is held primarily for the purpose of trading

• It is due to be settled within twelve months after
the reporting period, or

• There is no unconditional right to defer the
settlement of the liability for at least twelve months
after the reporting period

All other liabilities are classified as non-current.

The operating cycle is the time between the acquisition
of assets for processing and their realisation in cash
and cash equivalents. The Company has identified
twelve months as its operating cycle.

b) Foreign currencies

Functional and presentation currency

I tems included in the financial statements of the
Company is measured using the currency of the
primary economic environment in which the entity
operates ('the functional currency'). The Company's
financial statements are presented in Indian Rupees
(INR), which is also the Company's functional and
presentation currency.

Initial measurement

Transactions in foreign currencies on initial recognition
are recorded at the prevailing exchange rate between
the Company's functional currency and the foreign
currency on the date of the transaction. However, for
practical reasons, the Company uses an average rate
if the average approximates the actual rate at the date
of the transaction.

Subsequent measurement

At each balance sheet date, foreign currency monetary
items are reported using the closing exchange rate.
Exchange differences that arise on settlement of
monetary items or on restatement at each balance
sheet date of the company's monetary items at the
closing rate are recognised as income or expenses in
the period in which they arise.

Non-monetary items which are carried at historical
cost denominated in a foreign currency are reported
using the exchange rate at the date of the transaction.
Non-monetary items measured at fair value in
a foreign currency are translated using the exchange
rates at the date when the fair value was determined.
The gain or loss arising on translation of non-monetary
items is recognised in line with the gain or loss of
the item that gave rise to the translation difference
(translation differences on items whose gain or loss
is recognised in other comprehensive income or the
statement of profit and loss is also recognised in other
comprehensive income or the statement of profit and
loss respectively).

c) Finance income

(i) Interest income

The interest income is recognised on accrual
basis. For further details, refer note 2.2(h) on
financial instruments.

(ii) Dividend income

Dividend income is recognised when the Company's
right to receive the payment is established and no
significant uncertainty as to collectibility exist.

d) Borrowing costs

Borrowing costs directly attributable to the acquisition
or construction of a qualifying asset, including interest
attributable to the funding of license fees up to the
date the asset is available for use, are capitalised as a
part of the cost of that asset.

All other borrowing costs are expensed in the period
in which they occur. Borrowing costs consist of interest
and other costs that an entity incurs in connection with
the borrowing of funds. Interest income earned on the
temporary investment of specific borrowings pending
their expenditure on qualifying assets is deducted
from the borrowing costs eligible for capitalisation.

e) Trade receivables

Trade receivables are amounts due from customers
for goods sold or services performed in the
ordinary course of business and reflects company's

unconditional right to consideration (that is, payment
is due only on the passage of time). Trade receivables
are recognised initially at the transaction price as they
do not contain significant financing components.
The company holds the trade receivables with the
objective of collecting the contractual cash flows and
therefore measures them subsequently at amortised
cost, less loss allowance.

f) Trade and other payables

These amounts represent liabilities for goods and
services provided to the company prior to the end
of financial year which are unpaid. Trade and other
payables are presented as current liabilities unless
payment is not due within 12 months after the
reporting period. They are recognized at their fair
value and subsequently measured at amortised cost.

g) Provisions (including asset retirement
obligation)

Provisions are recognised when the Company has a
present obligation (legal or constructive) as a result of
a past event, it is probable that an outflow of resources
embodying economic benefits will be required to
settle the obligation and a reliable estimate can be
made of the amount of the obligation. The expense
relating to a provision is presented in the statement
of profit and loss net of any reimbursement.

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.

Asset Retirement Obligation ("ARO") is provided for
arrangements where the Company has a binding
obligation to restore the said location/premises
at the end of the period in a condition similar to
inception of the arrangement. The restoration and
decommissioning costs are provided at the present
value of expected costs to settle the obligation
using estimated cash flows and are recognised as
part of the cost of the particular asset. The cash
flows are discounted at a current pre-tax rate that
reflects the risks specific to the decommissioning
liability. The unwinding of the discount is expensed
as incurred and recognised in the statement of profit
and loss as a finance cost. The estimated future costs of
decommissioning are reviewed annually and adjusted
as appropriate. Changes in the estimated future
costs or in the discount rate applied are added to or
deducted from the cost of the asset.

h) Cash and cash equivalents

Cash and cash equivalents in the balance sheet comprise
cash at banks and on hand and short-term deposits with
an original maturity of three months or less, which are
subject to insignificant risk of changes in value. For the
purpose of the statement of cash flows, cash and cash
equivalents consist of cash and short-term deposits,
as defined above, net of outstanding bank overdrafts
(including cash credit) as they are considered an integral
part of the Company's cash management.

i) Loss per share

Basic loss per share is calculated by dividing the net
loss for the year attributable to equity shareholders
by the weighted average number of equity shares
outstanding during the year.

For the purpose of calculating diluted loss per share,
the net profit or loss for the year attributable to equity
shareholders and the weighted average number of
shares outstanding during the year are adjusted for
the effects of all dilutive potential equity shares.

j) Taxes

Current income tax

Current income tax assets and liabilities are measured
at the amount expected to be recovered from or paid
to the taxation authorities. Current tax is based on the
taxable profit for the year which may differ from 'profit
or loss before tax' as reported in the statement of profit
and loss because of items of income or expense that
are taxable or deductible in other years and items that
are never taxable or deductible. The tax rates and tax
laws used to compute the amount are those that are
enacted or substantively enacted, at the reporting
date. Current income tax relating to items recognised
outside profit or loss is recognised outside profit or loss
(either in other comprehensive income or in equity).

The Company offsets tax assets and liabilities if and
only if it has a legally enforceable right to set off current
tax assets and current tax liabilities and the current tax
assets and current tax liabilities relate to income taxes
levied by the same tax authority.

The current income tax charge is calculated on the
basis of the tax laws enacted or substantively enacted
at the reporting date. Management periodically
evaluates positions taken in tax returns with respect to
tax incidence (if any) where applicable tax regulation
is subject to interpretation and considers whether it
is probable that a taxation authority will accept an
uncertain tax treatment. The Company measures its
tax balances either based on the most likely amount
or the expected value, depending on which method

provides a better prediction of the resolution of
the uncertainty.

Deferred tax

Deferred tax is recognised on temporary differences
between the carrying amounts of assets and liabilities
in the financial statements and the corresponding tax
bases used in the computation of taxable income.
Deferred tax assets are generally recognised for all
deductible temporary differences, the carry forward of
any unused tax losses, to the extent that it is probable
that taxable profits will be available against which those
deductible temporary differences can be utilised. Such
deferred tax assets and liabilities are not recognised
if the temporary difference arises from the initial
recognition (other than in a business combination)
of assets and liabilities in a transaction that affects
neither the taxable profit nor the accounting profit.

Deferred tax liabilities are recognised for all taxable
temporary differences, except:

• In respect of taxable temporary differences
associated with investments in subsidiaries,
associates and interests in joint ventures, when
the timing of the reversal of the temporary
differences can be controlled and it is probable that
the temporary differences will not reverse in the
foreseeable future.

The carrying amount of deferred tax assets is reviewed
at each reporting date and reduced to the extent that
it is no longer probable that sufficient taxable profit
will be available to allow all or part of the deferred
tax asset to be utilised. Unrecognised deferred tax
assets are re-assessed at each reporting date and are
recognised to the extent that it has become probable
that future taxable profit will allow the deferred tax
asset to be recovered.

Deferred tax assets and liabilities are measured at the
tax rates that are expected to apply in the year when
the asset is realised or the liability is settled, based
on tax rates (and tax laws) that have been enacted or
substantively enacted at the reporting date.

Current and deferred tax are recognised in profit
or loss, except when they relate to items that are
recognised in other comprehensive income or directly
in equity, in which case, the current and deferred tax
are also recognised in other comprehensive income or
directly in equity respectively.

Deferred tax assets and deferred tax liabilities are offset
if a legally enforceable right exists to set off current tax
assets against current tax liabilities and the deferred
taxes relate to the same taxable entity and the same
taxation authority.

Deferred tax relating to items recognised outside
profit or loss is recognised outside profit or loss in
correlation to the underlying transaction either in
other comprehensive income or directly in equity.

k) Exceptional items

When items of income or expense are of such nature,
size and incidence that their disclosure is necessary
to explain the performance of the Company for the
year, the company makes a disclosure of the nature
and amount of such items separately under the head
"exceptional items."

l) License entry fee

The license entry fee has been recognised as an
intangible asset and is amortised on straight line basis
over the remaining license period from the date when
it is available for use in the respective circles. License
entry fee includes interest on funding of license entry
fee and bank guarantee commission up to the date of
license available for use in the respective circles.

Fees paid for migration of the original Unified Access
Service license to the Unified license is amortised over
the remaining period of the license for the respective
circle from the date of migration to Unified licenses/
payment of the license fees on straight line basis.

Fees paid for obtaining in-principle approval to use
alternate technology under the Unified Access Service
licenses has been recognised as an intangible asset
and is amortised from the date of approval over the
balance remaining period of the Unified Access Service
licenses on straight line basis for the respective circles.

m) Revenue sharing fee

Revenue sharing fee on license is computed as per
the licensing agreement at the prescribed rate and
expensed as license fees in the statement of profit
and loss in the year in which the related revenue from
providing unified access services are recognised.

n) Intangible assets

Intangible assets are recognised when the Company
controls the asset, it is probable that future economic
benefits attributed to the asset will flow to the Company
and the cost of the asset can be measured reliably.
Intangible assets acquired separately are measured
on initial recognition at cost. Subsequently, intangible
assets are carried at cost less any accumulated
amortisation and accumulated impairment losses.

The useful lives of intangible assets are assessed as
either finite or indefinite. There are no intangible
assets assessed with indefinite useful life.

Intangible assets with finite lives are amortised over
the useful economic life and assessed for impairment
whenever there is an indication that the intangible
asset may be impaired.

Computer software is amortised over 3 years.

The amortisation period and the amortisation method
for an intangible asset with a finite useful life are
reviewed at least at the end of each year. Changes
in the expected useful life are considered to modify
the amortisation period or method, and are treated
as changes in accounting estimates. The amortisation
expense on intangible assets with finite lives is
recognised in the statement of profit and loss.

Gains or losses arising from de-recognition of an
intangible asset are measured as the difference
between the net disposal proceeds and the
carrying amount of the asset and are recognised
in the statement of profit or loss when the asset is
derecognised. For License fees refer note 2.4(l).

o) Segment reporting

The Company's chief operating decision makers look
at the financials of the Company as a whole without
segregating into any components for the purpose
of allocating resources and assessing performance.
Accordingly, the Company has not identified any
operating segments to be reported.

p) Measurement of Earnings/Loss Before Interest,
Tax, Depreciation and Amortisation (EBITDA)

The Company has elected to present earnings before
finance cost, tax, exceptional items and depreciation
and amortization (EBITDA) as a separate line item
on the face of the statement of profit and loss. The
Company measures EBITDA on the basis of profit/ (loss)
from continuing operations.

q) Contributed equity

Equity shares are classified as equity. Incremental
costs directly attributable to the issue of new shares
are shown in equity as a deduction, net of tax, from
the proceeds.

Notes:

Undrawn borrowing facilities:

As at March 31,2025, the Company has undrawn committed borrowing facilities of I 94.14 Crores (March 31, 2024 - I 166.29 Crores).
Compliance with loan covenant:

The company does not have any financial covenant requirement for the loan outstanding as at March 31, 2025 and March 31,
2024 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 instalments commencing April 1, 2021 up to March 31,2031 payable by March 31 of
every year. In compliance of the SC order, the Company has already made payment of I 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. First instalment is
due on March 31, 2026.

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.

(b) Inter-corporate deposit (ICD)

As on March 31, 2025

i) Out of total outstanding, ICDs of I 4,053 Crores (liability component of I 3,414.78 Crores at the March 31, 2025) were
extended for a further period of 2 years from the respective 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 recognized by applying effective interest rate (EIR) within the range of 8.56% to 8.80%.

As on March 31, 2024

i) Out of total outstanding, ICDs of I 6,490.15 Crores (liability component of I 5,461.04 Crores at the March 31, 2024) were
extended for a further period of 2 years from the respective 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
recognized by applying effective interest rate (EIR) within the range of 8.15% to 8.80%.

(c) Liability component of redeemable preference shares

On September 18, 2024, 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.

Notes:

a) Bharat Sanchar Nigam Limited (BSNL) raised a demand of
I 166.90 Crores including interest for the period November
14, 2004 up to February 28, 2006, claiming Access Deficit
Charge (ADC) was payable on the company's fixed wireless
services - Walky. Telecom Dispute Settlement Appellate
Tribunal (TDSAT) negated the company's petition, and the
Supreme Court in 2008 directed TDSAT to quantify the
amounts. However, TDSAT disposed the Company's Petition
on April 15, 2010, confirming BSNL demands up to August
25, 2005 and gave BSNL liberty to lodge its claim for a further
period up to February 28, 2006. The company appealed to
the Supreme Court against the TDSAT Order. As of March 31,
2024, the company has paid I 114.29 Crores under protest,
provided for the same in accounts, and disclosed I 55.91
Crores as a contingent liability. Based on the legal advice
available with the company maintains that the penalty
clause invoked by BSNL does not apply and is entitled to
seek a refund of excess payment.

b) The Company received a demand of I 290.17 Crores from
Department of telecommunications (DoT) for one-time
spectrum charges for additional CDMA spectrum beyond
2.5MHz from January 1, 2013, until license expiry. The
Company opted to retain only one block in Mumbai and
surrendered the rest, arguing that the demand altered
past financial terms. It challenged the levy in the Hon'ble
Bombay High Court, which granted a stay and later
permitted TTML to withdraw the petition to approach
TDSAT. TDSAT, on March 23, 2025, allowed DoT time to file
an Affidavit on the submission that the matter is covered
by earlier Judgments of the TDSAT on identical issues and
that the Appeals against the aforesaid TDSAT judgments
are pending before Supreme Court. The matter is listed for
directions on April 28, 2025.

c) DoT instructed TERM Cells to conduct monthly audits
for compliance with subscriber verification norms and
issued circulars to impose penalties for non-compliance/s
observed during these audits. Total penalties on TTML
amount to I 268.84 Crores (March 31,2024: I 268.84 Crores).
The Company has challenged some demands/penalties and
circulars in the Hon'ble Bombay High Courts and TDSAT,
arguing that the circulars are ultra vires and impose penalties
beyond those prescribed under the Indian Telegraph Act,
1885. The Company has made representations to TERM Cell
and DoT (HQ) against the demands/penalties. Out of the
aforesaid amount of I 268.84 Crores, the Company has till
date provided for amounts aggregating I 3.69 Crores. Based
on legal advice, the Company has disclosed I 265.15 Crores
as a contingent liability.

d) Bharti raised demands on the Company for SMS termination
charges since June 2009 under their interconnection
agreement. The Company disputed these charges as
unreasonable and discriminatory. In 2012, TDSAT ruled

in Bharti's favour, and the Supreme Court admitted the
Company's appeal but directed the Company to pay the
amount on the 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. The
appeal is pending. As of March 31, 2025, the Company has
fully provided for the I 71.85 Crores liability, with I 66.38
Crores already paid under dispute.

Other operators (Idea and Vodafone) have raised claims for
SMS termination amounting to I 53.21 Crores (March 31,2024
- I 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 issued demand notes on March 15, 2018, for I 3.70
Crores and I 7 Crores due to alleged delays in fulfilling
CDMA and GSM roll-out obligations under the License
Agreements. The Company challenged these demands in
TDSAT. TDSAT has granted a stay and restrained DoT from
taking coercive action. Based on internal assessment, the
Company expects the demands to be quashed and has
disclosed them as contingent liabilities. During a May 24,
2022, hearing, the Registrar confirmed that pleadings and
evidence were complete and that cross-examinations would
only be required if deemed necessary by the Court. The
Company has disclosed the total I 10.70 Crores (March 31,
2024: I 10.70 Crores) as a contingent liability.

^:) TTML has been involved in a long-standing property

tax dispute with the Pune Municipal Corporation (PMC)
concerning its Al-Aqmar office premises, originally taken
on lease by Hughes Telecom in 1997-98. The dispute stems
from PMC revising the property tax from September 1998
onwards, without fixing the Annual Rateable Value (ARV)
which could be revised by PMC only after granting an
opportunity to TTML. The demand of I 1.10 Crores raised
by PMC was thus, challenged before the Civil Court at
Pune when the Court directed PMC to fix ARV after giving
opportunity to TTML and raise fresh demand, which order
was not complied with by PMC.

TTML subsequently challenged another demand of
I 11.83 Crores raised by PMC in Jan 2015 and obtained stay
in March 2015.

In May 2019, PMC raised another undated demand notice
for I 80.78 Crores for the period from 2003 to 2019, which
demand was rebutted by TTML, calling upon PMC to fix the
ARV as per the Court's directions.

PMC later in January 2021 posted demand of I 121.39 Crores
(for FY 2019-20 cumulative from 2003) on its website, which
was challenged by TTML and stay was granted against the
demand in March 2021 and PMC was restrained to post such
demands on its website.

Despite stay orders being in force, PMC again issued three
separate invoices totalling to 276 Crores in April and May
2024, as property tax allegedly due and payable by TTML
for till FY 2024-25 in respect of three separate property
tax accounts.

However, despite stay orders obtained by TTML, PMC
continued posting demands on its website month on month,
which accumulated demand stands at I 349.47 Crores as of
April 1, 2025.

TTML has made several representations to PMC including
issuing contempt notice which did not evoke any
response from PMC. TTML has in March 2025, moved a
Misc. Application before the Civil Court at Pune praying
for striking off PMC's defence on the ground of contempt
of the stay order, which application is listed for further
proceedings on April 21, 2025.

TTML has assessed the property tax liability at I 5.74 Crores
(of which I 10.56 Crores has already been paid) and has
thus demanded a refund of I 4.82 Crores from PMC, vide its
representation made to PMC in September 2024. However,
pending litigation being pursued by TTML against PMC,
TTML has considered contingent liability of I 76.29 Crores of
the total I 276 Crores exposure (based on physical invoices
received from PMC in April & May 2024).

g) The Company has assessed the impact of the Supreme
Court's judgment dated February 28, 2019, in the
"Vivekananda Vidyamandir" case, along with the related
EPFO circular issued on March 20, 2019. The ruling addressed
the inclusion of certain allowances in "basic wages" for
provident fund contributions under the EPF Act, 1952.
Based on legal advice, the Company believes the judgment
does not materially impact its financials. However, it will
continue to monitor and reassess its position based on
future developments.

Note 35:

The Hon'ble Supreme Court ('SC') pronounced its Judgement
on October 24, 2019 ('Judgement'), allowing the appeal of
Department 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 instalments 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. Tata Teleservices Limited and Tata
Teleservices (Maharashtra) 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 01, 2020, Tata Teleservices Limited and
Tata Teleservices (Maharashtra) Limited have submitted the
compliance Affidavit on April 3, 2025.

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 01, 2020 for a period of four years.
Tata Teleservices (Maharashtra) Limited 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, Tata Teleservices Limited and Tata
Teleservices (Maharashtra) Limited had filed Curative Petitions
requesting SC to reconsider levy of interest, penalty and interest
on penalty, which were rejected by Hon'ble Supreme Court vide
order dated August 30, 2024. Further, review application (R.P.
(C) No.1022 of 2021) filed by Tata Teleservices Limited and Tata
Teleservices (Maharashtra) Limited jointly on August 22, 2021
against Hon'ble Supreme Court order dated July 23, 2021 was
also rejected on January 28, 2025.

During the year ended March 31, 2025, Tata Teleservices
(Maharashtra) Limited continues to recognize 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
I 2.49 Crores for the year ended March 31,2025 (I 2.28 Crores for the year ended March 31,2024) 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 (Refer note 29):

i. Gratuity

ii. Compensated absences

(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 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 I 0.30 Crores (March 31, 2024 - I 0.82 Crores)

The weighted average duration of the defined benefit plan obligation at the end of the reporting period is 4.93 years
(March 31 2024: 4.14 years).

ii) Compensated absences

The compensated absences cover the Company's liability for earned leave, which are classified as other long-term benefits.

Total compensated absences provision as on March 31,2025 is I 3.25 Crores (I 3.02 Crores as on March 31,2024) 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 29 Employee benefits expenses is
I 0.58 Crores (March 31, 2024 - I 0.61 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 I Nil Crores for the year ended March 31,2025 (I 0.00 Crores for the year ended March 31,
2024)* 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.

*Figures are below rounding off norms adopted by the Company.

(iv) Long term incentive plans

The Company has made contribution for long term incentive plan for employees and recognised I 0.15 Crores for the year ended
March 31,2025 (I Nil Crores for the year ended March 31,2024) in the statement of profit and loss, with discounting rate of 6.55%.

The fair values of non-current borrowings are based on discounted cash flows using a current borrowing rate. They are classified
as level 3 fair values in the fair value hierarchy due to the use of unobservable inputs, including own credit risk.

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.

Financial instruments

(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 optimization 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

Inherent 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 (INR), 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

• 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.

(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.

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 is USD Nil (USD Nil as at March 31,
2024), therefore there is no unhedged foreign currency risk exposure.

Foreign Currency sensitivity analysis

The Company does not have any unhedged foreign currency exposure, hence the sensitivity analysis is not required.

(b) 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 31,2025, the Company has variable rate borrowings of I 4,051.58 Crores (I 3,845.63 Crores as at March 31,2024),
out of which net exposure to interest rate risk is I 3,084.07 Crores (I 3,845.63 Crores as at March 31,2024) 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 31,2025 would increase and decrease by I 15.42 Crores (increase and decrease by I 19.23 Crores as
at March 31,2024).

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, 2025 and March 31, 2024 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, 2025 and March 31, 2024 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 31,2025, the company has undrawn committed borrowing facilities of I 94.14 Crores (March 31,2024 - I 166.29 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.

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 I 21.78
Crores for year ended March 31, 2025 and I 9.63 Crores for the financial year ended March 31,2024.

F Additional information on short-term and low value leases

The Company had leases of building and MSC sites which are short term i.e. lease term of less than 1 year or 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.

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. It also includes rental income from leasing out office space.

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 I 156.89 Crores (March 31, 2024 I 161.05 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 that
the company will generate future taxable profits; no deferred tax asset has been recognized 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 I 4,890.16 Crores (March 31, 2024: I 4,872.79 Crores) in respect of
unabsorbed depreciation and unabsorbed business losses amounting to I 19,430.05 Crores (March 31, 2024: I 19,361.05 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:

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 with number of layers of companies

The company has complied with the number of layers prescribed under the Companies Act, 2013, read with the Companies
(Restriction on number of Layers) Rules, 2017.

(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), the 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 I 5 Crores, in aggregate, from
banks on the basis of security of current assets and movable fixed assets. Company has filed necessary details wherever applicable
in line with sanction letters.

* Capital Employed includes Total Debt Equity

** Interest expenses exclude notional interest and other finance charges
*** Total debt represents Total borrowings

****Short term borrowings represents current borrowings including current maturities of long term debt
*****Earning before interest and taxes (EBIT) represents (EBITDA- Depreciation- Other income)

****** Not Applicable as equity is negative

# Average trade receivables exclude unbilled receivables

Reasons for variation more than 25%

1. Increase in net current liabilities on account of trade payable and unearned income

Signatures to Notes 1 to 51

In terms of our report attached

For Price Waterhouse Chartered Accountants LLP For and on behalf of the Board of Directors

Firm Registration Number - 012754N/N500016

Nitin Khatri Amur S. Lakshminarayanan Harjit Singh

Partner Chairman Managing Director

Membership Number: 110282 DIN No.: 08616830 DIN No.: 09416905

Place: Mumbai Place: Mumbai

Shinu Mathai Vrushali Dhamnaskar

Chief Financial Officer Company Secretary

ACMA: 38570 ACS: 28356

Place: Mumbai Place: Mumbai Place: Mumbai

Date: April 23, 2025 Date: April 23, 2025