h. Provisions and Contigencies
Provisions are recognized when the Company has a present
obligation (legal or constructive) as result of a past event,
it is probable that the Company will be required to settle
the obligation, and a reliable estimate can be made of the
amount of the obligation.
The amount recognized as a provision is the best estimate
of the consideration required to settle the present obligation
at the end of the reporting period, taking into account the
risks and uncertainties surrounding the obligation. When a
provision is measured using the cash flows estimated to settle
the present obligation, its carrying amount is the present
value of those cash flows (when the effect of the time value
of money is material). The discount rate used to determine
the present value is a pre-tax rate that reflects current market
assessments of the time value of money and the risks specific
to the liability. The increase in the provision due to the passage
of time is recognized as interest expense.
A disclosure for contingent liabilities is made where there is a
possible obligation or a present obligation that may probably
not require an outflow of resources or an obligation for which
the future outcome cannot be ascertained with reasonable
certainty. When there is a possible or a present obligation
where the likelihood of outflow of resources is remote, no
provision or disclosure is made.
Provision for warranty
The estimated liability for product warranties is recorded
when products are sold. These estimates are established
using historical information on the nature, frequency and
average cost of warranty claims and management estimates
regarding possible future incidence based on corrective
actions on product failures. The timing of outflows for
warranty will be upto three years.
As per the terms of the contracts, the Company provides post
sale support / warranty support to some of its customers. The
Company accounts for the post-contract support / provision
for warranty on the basis of the information available with the
Management duly taking into account the current and past
technical estimates.
i. Income taxes
The income tax expense or credit for the period is the tax
payable on the current period's taxable income based on the
applicable income tax rate adjusted by changes in deferred
tax assets and liabilities attributable to temporary differences
and unused tax losses.
The current income tax charge is calculated on the basis of
the tax laws enacted or substantively enacted at the end of
the reporting period. Management periodically evaluates
positions taken in tax returns with respect to situations in
which applicable tax regulation is subject to interpretation.
It establishes provisions where appropriate on the basis of
amounts expected to be paid to the tax authorities. The
Company measures its tax balances for uncertain tax positions
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.
Current and deferred tax is recognized in statement of profit
and loss, except to the extent that it relates to item recognized
in other comprehensive income or directly in equity. In this
case, the tax is also recognized in other comprehensive
income or directly in equity, respectively.
j. Employee Benefits
(i) Short-term employee benefits
Liabilities for wages and salaries and performance incentives
that are expected to be settled wholly within 12 months
after the end of the period in which the employees render
the related service are recognized in respect of employees'
services up to the end of the reporting period and are
measured at the amounts expected to be paid when the
liabilities are settled. The liabilities are presented as current
employee benefit obligations in the balance sheet.
(ii) Other long-term employee benefit obligations
The liabilities for earned leave is not expected to be settled
wholly within 12 months after the end of the period in which
the employees render the related service. They are therefore
measured at the present value of expected future payments
to be made in respect of services provided by employees up
to the end of the reporting period using the projected unit
credit method. The benefits are discounted using the market
yields on Government bonds that at the end of the reporting
period that have terms approximating to the terms of the
related obligation. Remeasurements as a result of experience
adjustments and changes in actuarial assumptions are
recognised in Statement of profit and loss.
The obligation for earned leave (despite not being expected
to be settled wholly within 12 months) is presented as current
liabilities in the balance sheet as the Company does not have
an unconditional right to defer settlement for at least twelve
months after the reporting period, regardless of when the
actual settlement is expected to occur.
(iii) Gratuity obligations (Defined Benefit Plan)
The Company provides for gratuity, a defined benefit plan (the
“GratuityPlan”) covering eligible employees in accordance with
the Payment of Gratuity Act, 1972. The Gratuity Plan provides
a lump sum payment to vested employees at retirement,
death, incapacitation or termination of employment, of an
amount based on the respective employee's salary and the
tenure of employment.
The liability or asset recognized in the balance sheet in
respect of defined benefit gratuity plan is the present value
of the defined benefit obligation at the end of the reporting
period less the fair value of plan assets. The defined benefit
obligation is calculated annually by an actuary using the
projected unit credit method.
The present value of the defined benefit obligation is
determined by discounting the estimated future cash
outflows by reference to market yields at the end of the
reporting period on government bonds that have maturity
terms approximating to the terms of the related obligation.
The net interest cost is calculated by applying the discount
rate to the net balance of the defined benefit obligation and
the fair value of plan assets. This cost is included in employee
benefit expense in the statement of profit and loss.
Remeasurement gains and losses arising from experience
adjustments and changes in actuarial assumptions are
recognized in the period in which they occur, directly in
other comprehensive income. They are included in retained
earnings in the statement of changes in equity and in the
balance sheet.
Changes in the present value of the defined benefit obligation
resulting from plan amendments or curtailments are
recognized immediately in profit or loss as past service cost.
(iv) Defined contribution plans
The Company pays provident fund and pension contributions
to publicly administered funds as per local regulations.
The Company has no further payment obligations once
the contributions have been paid. The contributions are
accounted for as defined contribution plans and are
recognized as employee benefit expense when they are due.
Prepaid contributions are recognised as an asset to the extent
they reduce the amount of future contributions.
(v) Share-based payments
Share-based compensation benefits are provided to
employees via Employee Stock Option Plans and Restricted
Stock Units.
The Company has constituted the following plans - ‘Tejas
Networks Limited Employee Stock Option Plan 2014', ‘Tejas
Networks Limited Employee Stock Option Plan 2014 - A', ‘Tejas
Networks Limited Employees Stock Option Plan 2016', ‘Tejas
Networks Limited Employee Stock Option Plan 2024' ‘Tejas
Networks Limited Restricted Stock Unit Plan 2017' (“RSU -
2017”) and ‘Tejas Networks Limited Restricted Stock Unit Plan
2022' (“RSU - 2022”) for the benefit of eligible employees.
The fair value of options granted under the Employee Option
Plan is recognised as an employee benefits expense with
a corresponding increase in equity. The total amount to be
expensed is determined by reference to the fair value of the
options granted:
a) including any market performance conditions
b) excluding the impact of any service and non-market
performance vesting conditions
c) including the impact of any non-vesting conditions
The total expense is recognized over the vesting period, which
is the period over which all of the specified vesting conditions
are to be satisfied. At the end of each period, the Company
revises its estimates of the number of ESOP/RSU that are
expected to vest based on the non-market vesting and
service conditions. It recognizes the impact of the revision to
original estimates, if any, in Statement of profit and loss, with
a corresponding adjustment to equity.
k. Government grants
Grants related to assets are reduced from the carrying amount
of the asset. Such grants are recognised in the Statement of
profit and loss over the useful life of the related depreciable
asset by way of reduced depreciation charge.
l. Cash Flow Statement
Cash flows from operating activities are reported using the
indirect method, whereby profit for the period is adjusted
for the effects of transactions of a non-cash nature, any
deferrals or accruals of past or future operating cash receipts
or payments and items of income or expenses associated
with investing or financing cash flows. The cash flows from
operating, investing and financing activities of the Company
are segregated.
m. Inventories
Inventories (raw material - components including assemblies
and sub assemblies) are stated at the lower of cost and net
realisable value. Cost of inventory includes cost of purchases
and all other costs incurred in bringing the inventories to their
present location and condition. Net realisable value is the
estimated selling price in the ordinary course of business less
the estimated costs of completion and the estimated costs
necessary to make the sale.
n. 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 using the effective
interest method, less loss allowance.
The Company classifies the right to consideration in exchange
for deliverables either as receivable or unbilled revenue.
A receivable is a right to consideration that is conditional
only upon passage of time. Revenue recognised in excess
of billings is towards unbilled revenue and is classified as a
financial asset as only the passage of time is required before
the payment is due.
Trade receivables and unbilled revenue are presented net of
expected credit losses in the Balance Sheet.
Invoicing in excess of earnings are classified as contract
liabilities which is disclosed as deferred revenue.
o. Cash and cash equivalents
For the purpose of presentation in the statement of cash
flows, cash and cash equivalents include cash on hand,
deposits held at call with financial institutions, other short¬
term, highly liquid investments with original maturities of
three months or less that are readily convertible to known
amounts of cash and which are subject to an insignificant risk
of changes in value.
p. Borrowings
Borrowings are initially recognized at fair value, net of
transaction costs incurred. Borrowings are subsequently
measured at amortised cost. Any difference between the
proceeds (net of transaction costs) and the redemption
amount is recognized in profit or loss over the period of the
borrowings using the effective interest method. Fees paid
on the establishment of loan facilities are recognized as
transaction costs of the loan to the extent that it is probable
that some or all of the facility will be drawn down. In this
case, the fee is deferred until the draw down occurs. To the
extent there is no evidence that it is probable that some or
all of the facility will be drawn down, the fee is capitalized as
a prepayment for liquidity services and amortised over the
period of the facility to which it relates.
Borrowings are removed from the balance sheet when the
obligation specified in the contract is discharged, cancelled
or expired. The difference between the carrying amount of a
financial liability that has been extinguished or transferred to
another party and the consideration paid, including any non¬
cash assets transferred or liabilities assumed, is recognised in
Statement of profit and loss under other expenses.
Borrowings are classified as current liabilities unless the
Company has an unconditional right to defer settlement of
the liability for at least 12 months after the reporting period.
Where there is a breach of material provision of a long term
loan arrangement on or before the date of the reporting
period with the effect that the liability becomes payable on
demand on the reporting date, the Company does not classify
the liability as current, if the lender agreed, after the reporting
period and before approval of the financial statements for
issue, not to demand payment as a consequence of the
breach.
q. Borrowing cost
Specific borrowing costs that are directly attributable to the
acquisition, construction or production of a qualifying asset are
capitalized during the period of time that is required to complete
and prepare the asset for its intended use or sale. Qualifying
assets are assets that necessarily take a substantial period of time
to get ready for their intended use or sale.
Investment income earned on the temporary investment of
specific borrowings pending their expenditure on qualifying
assets is deducted from the borrowing costs eligible for
capitalization.
Other borrowing costs are expensed in the period in which
they are incurred.
r. Foreign Currency Transactions
(i) Functional and presentation currency
Items included in the financial statements of the entity are
measured using the currency of the primary economic
environment in which the entity operates ('the functional
currency'). The financial statements are presented in Indian
rupee, which is the Company's functional and presentation
currency.
(ii) Transactions and translations
Foreign currency transactions are translated into the
functional currency using the exchange rates at the dates of
the transactions. Foreign exchange gains and losses resulting
from the settlement of such transactions and from the
translation of monetary assets and liabilities denominated in
foreign currencies at year end exchange rates are generally
recognized in statement of profit and loss. A monetary item
for which settlement is neither planned nor likely to occur
in the foreseeable future is considered as a part of entity's
net investment in that foreign operation. Non-monetary
assets and non-monetary liabilities denominated in a foreign
currency and measured at fair value are translated at the
exchange rate prevalent at the date when the fair value
was determined. Non-monetary assets and non-monetary
liabilities denominated in a foreign currency and measured at
historical cost are translated at the exchange rate prevalent at
the date of transaction.
Foreign exchange differences arising on translation of
foreign currency borrowings are presented in the statement
of profit and loss, within finance costs, where applicable. All
other foreign exchange gains and losses are presented in
the statement of profit and loss on a net basis within other
income or other expense.
s. Earnings per equity share
(i) Basic earnings per share
Basic earnings per share is calculated by dividing:
- the profit attributable to owners of the Company
- by the weighted average number of equity shares
outstanding during the financial year, adjusted for bonus
elements in equity shares issued during the year and
excluding treasury shares.
(ii) Diluted earnings per share
Diluted earnings per share adjusts the figures used in the
determination of basic earnings per share to take into
account:
- the after income tax effect of interest and other financing
costs associated with dilutive potential equity shares, and
- the weighted average number of additional equity shares
that would have been outstanding assuming the conversion
of all dilutive potential equity shares.
- potentially issuable equity shares, that could potentially
dilute basic earnings per share, are not included in the
calculation of diluted earnings per share when they are anti
dilutive for the period presented.
t. Segment Reporting
Operating segments are reported in a manner consistent
with the internal reporting provided to the chief operating
decision maker (CODM).
u. Contributed Equity
Equity shares are classified as equity. Incremental costs
directly attributable to the issue of new shares or options are
shown in equity as a deduction, net of tax from the proceeds.
v. Dividends
Provision is made for the amount of any dividend declared,
being appropriately authorised and no longer at the discretion
of the entity, on or before the end of the reporting period but
not distributed at the end of the reporting period.
w. Exceptional Items
When an item of income or expense within Statement of
profit and loss from ordinary activity is of such size, nature
or incidence that its disclosure is relevant to explain the
performance of the Company for the year, the nature and
amount of such items is disclosed as exceptional items.
x. Rounding of amounts
All amounts disclosed in the financial statements and notes
have been rounded off to the nearest crore with two decimals
as per the requirement of Schedule III, unless otherwise
stated.
Note no. 33: Employee Stock Option Plan (ESOP) and
Restricted Stock Units (RSU)
(i) . Employees Stock Option Plan 2008 (ESOP Plan 2008)
(Saankhya Labs Private Limited)#: Saankhya Labs Private
Limited has introduced the Equity settled Employees Stock
Option Plan (ESOP) Scheme 2008 effective from 1st February,
2008. The total Pool size of the scheme 2008 is 2,00,000
options, with an exercise price of 710/- each and with an
exercise period of 20 years from the vesting date. Pursuant
to the ESOP scheme 2008, the company has given various
grants to employees from time to time. The ESOP Scheme
2008 is revised on 22nd December, 2011 with retrospective
effect by incorporating a change in the frequency of vesting
and other vesting conditions. The life of the options granted
is 4 years with annual 25% vesting under the original scheme
2008. As per the revised Scheme 2012, there is a change in
the vesting, i.e. after the first annual vesting, all subsequent
vesting are on a quarterly basis. (Refer Note (ix)(a) below)
(ii) Employees Stock Option Plan 2012 (ESOP Plan 2012)
(Saankhya Labs Private Limited)#: Saankhya Labs Private
Limited has introduced a new Equity settled ESOP Scheme
2012 on 22nd December, 2011 with immediate effect. The total
Pool size of the scheme 2012 was with 1,00,000 options with
an exercise price of 710/- each and with an exercise period of
20 years from the vesting date. The scheme provides for the
grade vesting, upon completion of 1st year 25% and 6.25%
every quarter thereafter. The total pool size is increased to
11.00. 000 options in November 2018. (Refer Note (ix)(b) below)
(iii) Employees Stock Option Plan - 2014 (“ESOP Plan 2014”)
The Company pursuant to resolutions passed by the Board
and the Shareholders, dated May 29, 2014 and September
24, 2014, respectively, has adopted ESOP Plan 2014. This
was subsequently modified pursuant to the Shareholders'
resolutions dated March 28, 2016 and November 19, 2016.
Pursuant to ESOP Plan 2014, options to acquire Equity
Shares may be granted to eligible employees (as defined in
ESOP Plan 2014). The aggregate number of Equity Shares,
which may be issued under ESOP Plan 2014, shall not exceed
71,01,767 Equity Shares. The options granted under the plan
have a graded vesting over a period of four years, which are
exercisable within fifteen years from the date of vesting.
Options granted under the plan are equity settled. (Refer
Note (ix)(c) below)
(iv) Employees Stock Option Plan - 2014-A (“ESOP Plan 2014-
A”) The Company pursuant to resolutions passed by the
Board and the Shareholders, dated June 27, 2016 and July
25, 2016, respectively has adopted ESOP Plan 2014-A. This
was subsequently modified pursuant to the Shareholders
resolution dated November 19, 2016. Further modified by
resolution passed by board dated October 21, 2020. Pursuant
to ESOP Plan 2014-A, options to acquire Equity Shares may
be granted to eligible employees (as defined in ESOP Plan
2014-A). The aggregate number of Equity Shares, which
may be issued under ESOP Plan 2014-A, shall not exceed
20.00. 000 Equity Shares. The options granted under the
plan have a graded vesting over a period of four years, which
are exercisable within eight years from the date of vesting.
Options granted under the plan are equity settled. (Refer
Note (ix)(d) below)
(v) Employees Stock Option Plan - 2016 (“ ESOP Plan 2016”)
The Company pursuant to resolutions passed by the Board
and the Shareholders, dated August 02, 2016 and August
29, 2016, respectively has adopted ESOP Plan 2016. This
was subsequently amended pursuant to the Shareholders
resolution dated November 19, 2016. Further modified by
resolution passed by board dated October 21, 2020. Pursuant
to ESOP Plan 2016, options to acquire Equity Shares may be
granted to eligible employees (as defined in ESOP Plan 2016).
The aggregate number of Equity Shares, which may be issued
under ESOP Plan 2016, shall not exceed 50,00,000 Equity
Shares. The options granted under the plan have a graded
vesting over a period of four years, which are exercisable
within eight years from the date of vesting. Options granted
under the plan are equity settled. (Refer Note (ix)(e) below)
(vi) Employees Stock Option Plan -2024 (“ ESOP Plan 2024”)
Employees Stock Option Plan -2024 (“ ESOP Plan 2024”) The
Company pursuant to resolutions passed by the Board dated
October 9, 2024 and has adopted ESOP Plan 2024. This Plan
was implemented following the merger of Saankhya Labs
Private Limited with the Company, pursuant to the Scheme
of Amalgamation. The aggregate number of Equity Shares,
which may be issued under ESOP Plan 2024, shall not exceed
11,26,854 Equity Shares. All options granted to under the
Saankhya ESOP Plans have been automatically cancelled.
Pursuant to ESOP Plan 2024, options may be granted to
eligible employees (as defined in ESOP Plan 2024). The
options granted under the plan are equity settled. (Refer Note
(ix)(f) below)
#In terms of the scheme of amalgamation, the existing
Saankhya ESOP plan is discontinued and Tejas Networks
Limited ESOP Plan- 2024 has been instituted for employees
of the Company, including such employees who were the
employees of erstwhile Saankhya Labs Private Limited
(Saankhya Labs) and Saankhya Strategic Electronics Private
Limited (SSE) and have become employees of the Company
pursuant to the scheme of amalgamation.
(vii) Restricted Stock Unit Plan 2017 (“RSU Plan 2017”) The
Company pursuant to resolutions passed by the Board and
the Shareholders, dated August 26, 2017 and September 27,
2017, respectively, has adopted RSU Plan 2017. Pursuant to
RSU Plan 2017, restricted stock units (“RSUs”) may be granted
to eligible employees (as defined in RSU Plan 2017). The
aggregate number of Equity Shares, which may be issued
under RSU Plan 2017, shall not exceed 30,00,000 Equity Shares.
The RSUs granted under the plan have a graded vesting over
a period of four years, which are exercisable within four years
from the date of vesting. The RSUs granted under the plan
are equity settled. (Refer Note (ix)(g) below)
(viii) Restricted Stock Unit Plan 2022 (“RSU Plan 2022”) The
Company pursuant to resolutions passed by the Board and
the Shareholders, dated April 22, 2022 and July 26, 2022,
respectively, has adopted RSU Plan 2022. Pursuant to RSU
Plan 2022, restricted stock units (“RSUs”) may be granted
to eligible employees (as defined in RSU Plan 2022). The
aggregate number of Equity Shares, which may be issued
under RSU Plan 2022, shall not exceed 50,00,000 Equity
Shares. The RSUs granted under the plan have a graded
vesting over a period of four years, which are exercisable
within four years from the date of vesting. The RSUs granted
under the plan are equity settled. (Refer Note (ix)(h) below)
As the Company has implemented RSU plan during the
financial year 2017-18, the Company does not plan to grant
any new options from the pool available from the current
ESOP Schemes. Consequently, the options available for grant
were considered as "NIL" for the current ESOP schemes.
Hence, other information is not applicable for the year ended
March 31, 2025 and March 31, 2024.
Note no. 39: Additional regulatory information
(i) Details of benami property held
No proceedings have been initiated on or are pending against
the Company under the Prohibition of Benami Property
Transactions Act, 1988 (as ammended in 2016) (formerly the
Benami Transactions (Prohibition) Act, 1988 (45 of 1988)) and
Rules made thereunder.
(ii) Borrowing secured against current assets
The Company has borrowing limits sanctioned from banks
on unsecured basis. The quarterly returns or statements
filed by the Company with banks are in agreement with the
books of accounts. The Company does not have any secured
borrowings as at March 31, 2025 and March 31, 2024.
(iii) Wilful defaulter
The Company has not been declared wilful defaulter by
any bank or financial institution or government or any
government authority.
(iv) Relationship with struck off companies
The Company has no transactions with the companies struck
off under Companies Act, 2013 or Companies Act, 1956.
(iv) Compliance with number of layers of companies
The Company has complied with the number of layers
prescribed under section 2(87) of the Companies Act, 2013
read with Companies (Restriction of number of layers) Rules,
2017.
(v) Compliance with approved scheme(s) of arrangements -
Refer Note no. 41
(vii) Utilisation of borrowed funds and share premium
The Company has not advanced or loaned or invested funds
to any other person(s) or entity(ies), including foreign entities
(Intermediaries) with the understanding (whether recorded
in writing or otherwise) 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.
The company has not received any fund from any person(s) or
entity(ies), 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
(viii) 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.
(ix) 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.
(x) Valuation of property, plant and equipment, 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.
(xi) Other regulatory information
i) Registration of charges or satisfaction with Registrar of
Companies
There are no charges or satisfaction which are yet to be
registered with the Registrar of Companies beyond the
statutory period.
ii) Core investment companies (CIC)
The Group (including entities part of the ultimate holding
company) has five CICs which are registered with the
Reserve Bank of India and one CIC which is not required
to be registered with the Reserve Bank of India.
Note no. 40: Dividend
The Board of Directors in their meeting held on April 25, 2025,
recommended the payment of dividends of ' 2.5 per fully paid
up equity share of ' 10 each for the financial year 2024-25. The
proposed dividend is subject to the approval of shareholders
in the ensuing annual general meeting.
Note no. 41 : Business Combination
The Board of Directors of Saankhya Labs and SSE (transferor
companies) and the Company, at their respective meetings
held on September 29, 2022, approved the draft Scheme of
Amalgamation (the “Scheme”) in relation to the amalgamation
of Saankhya Labs and SSE with the Company under Sections
230 to 232 and other applicable provisions of the Companies
Act, 2013 and the rules thereunder. The scheme was approved
by the National Company Law Tribunal (NCLT) on August 20,
2024. The Company received the certified copy of the NCLT
order on September 05, 2024 and filed the orders with the
Registrar of Companies (RoC), Bengaluru on September 25,
2024. The scheme provided for an appointed date of July 01,
2022. Pursuant to filing of the orders with the RoC, Saankhya
Labs and SSE stand dissolved without being wound up.
In accordance with the terms of the approved Scheme,
the shareholders of Saankhya Labs were to receive 112
equity shares of the Company for every 100 equity shares of
Saankhya Labs, held by them. During the year, the Company
has allotted 38,71,084 shares to the aforesaid shareholders of
Saankhya Labs.
In accordance with the Scheme all assets, liabilities, reserves
and surplus of the transferor companies have been transferred
to and vested in the Company with effect from the appointed
date.
Pursuant to scheme of amalgamation:
a) All assets, liabilities and reserves relating to the financial
statements of the transferor companies have been
transferred and vested in the Company.
b) The Company had credited to the Share issuance pending
allotment account, the aggregate face value of the new
equity shares to be issued and allotted under the Scheme
to shareholders of Saankhya Labs, which has been issued
subsequently.
c) The amount of any intercompany balances between
the transferor companies and the Company have been
cancelled.
d) The accounting policies followed by the transferor
companies have been adjusted for differences (if any)
between the accounting policies followed by the
Company and the transferor companies. The accounting
policies followed by the Company have prevailed.
e) The surplus arising out of: (i) the values of assets over
the values of liabilities and reserves taken over on
amalgamation; (ii) Existing investment of the Company
in Saankhya Labs; (iii) Face value of equity shares to be
issued to the shareholders of Saankhya Labs; and (iv) after
considering adjustments for elimination of intercompany
balances and differences in accounting policies followed
by the transferor companies, is recorded as capital reserve.
Note no. 42: Government grants
Pursuant to the approval received from the Department of Telecommunication under the Production Linked
Incentive (PLI) Scheme, the Company has recognised PLI incentive of ' 467.70 crore for the year ended March 31, 2025
(March 31, 2024: 156.36) under "Other operating revenue" in the financial statements, considering there is reasonable assurance that
the Company will comply with the conditions attached to the PLI scheme and that the grant will be received. (Refer Note no. 22).
Note no. 43:
The Company has identified "telecom and data networking related products and services" as its only reportable segment. The
Company publishes the Standalone Financial Statements of the Company along with the Consolidated Financial Statements. In
accordance with Ind AS 108 - Operating Segments, the Company has disclosed the segment information in the Consolidated
Financial Statements.
for Price Waterhouse Chartered Accountants LLP for and on behalf of the Board of Directors of
Firm Registration Number (FRN 012754N/N500016) Tejas Networks Limited
Prasanna Padar Mahabala N Ganapathy Subramaniam Anand S Athreya
Partner Non-Executive Chairman Managing Director and CEO
Membership no: 206477 (DIN: 07006215) (DIN:10118880)
Arnob Roy Sumit Dhingra
Executive Director and COO Chief Financial Officer
(DIN:03176672)
N R Ravikrishnan
General Counsel,
Place: Bengaluru Chief Compliance Officer &
Date: April 25, 2025 Company Secretary
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