(a) The Company incurred Rs. 561.53 Lakhs for the year ended 31st March, 2024 (31st March, 2023: Rs. 447.39 Lakhs) towards expenses relating to short-term leases and leases of low-value assets. The total cash outflow for leases is Rs. 935.93 Lakhs for the year ended 31st March, 2024 (31st March, 2023: Rs. 918.77 Lakhs), including cash outflow of short-term leases and leases of low-value assets. Interest on lease liabilities for the year ended 31st March, 2024 is Rs. 91.89 Lakhs (31st March, 2023: Rs. 120.25 Lakhs).

(b) Lease contracts entered by the Company majorly pertains for buildings taken on lease to conduct its business in the ordinary course and also taken nodes on lease for customer service.

(c) The weighted average incremental borrowing rate applied to lease liabilities is 8%

(d) The Company does not face a significant liquidity risk with regard to its lease liabilities as the current assets are sufficient to meet the obligations related to lease liabilities as and when they fall due.

* QTL has filed a petition before TDSAT towards financials losses suffered by the Company becuase of refusal by DOT to extend the period of GSM Spectrum and License for another 10 years as per UASL License and the matter is still subjudice, so the value of UASL License has not been retired from books post expiry of the same as on 29-Sep-2017.

a) Terms/rights attached to equity shares

The Company has only one class of equity shares having par value of Re. 1 per share. Each holder of equity shares is entitled to cast one vote per share.

d) Others

(i) 83,070,088 equity shares of Rs. 10/- each (now Re. 1/- each) were allotted on October 16, 2004, pursuant to the Corporate Debt Restructuring ('CDR') Scheme. Out of these, 63,373,110 equity shares were issued by the Company to Industrial Development Bank of India ('IDBI'), at par and the balance of 12,171,778 and 7,525,200 equity shares to Oriental Bank of Commerce ('OBC') and Kotak Mahindra Bank (formerly ING Vysya Bank Limited ('ING')), respectively, at a premium of Re. 0.50 per equity share as per provisions of applicable law.

(ii) 86,743,116 equity shares of Rs. 10/- each (now Re. 1/- each) were issued on July 08, 2009, consequent to the conversion of Optionally Fully Convertible Debentures (OFCDs) pursuant to the Corporate Debt Restructuring (CDR) Cell.

e) Others

Company is having Authorised Capital for the Preference Share of Rs. 30,000.00 Lakhs in current and previous financial year out of which Rs. 22,484.54 Lakhs of fully paid up 2% Cumulative Redeemable Preference Shares had been issued/subscribed (refer note no. 24).

* Non Convertible Debentures (NCD) is secured by first pari passu charge on immovable properties of the Company under equitable mortgage, first pari passu charge of hypothecation of movable properties of the Company including movable plant & machinery, machinery spares, tools & accessories and other movables including book debts by way of hypothecation, both present and future.

** On October 16, 2004, the Company had issued 1,667,761 zero percent Non-Convertible Debentures ('NCDs') of Rs. 100 each in lieu of interest accrued on term loans from a financial institution and a bank for the period April 1, 2003 to December 31, 2003. The 'NCD's earlier redeemable at par on March 31, 2014, then at par on March 31, 2016, are now redeemable at par on March 31, 2024 after repayment of the term loans as per CDR Schemes. (Also refer note no. 43 (a))

(i) "6,500,000, 7.5 percent CRPS were allotted on October 16, 2004, pursuant to the CDR Scheme, where under the specified part of the

amount due to CRPS Holder by the Company was converted into 7.5 percent CRPS redeemable after the repayment of Rupee Term Loan (in Financial Year 2016-17). As per the CDR Scheme, prior approval of the lenders would be required to declare dividend on 7.5 percent CRPS and all the voting rights attached to the CRPS to be assigned in favour of the term lenders. On June 24, 2005 as per revised CDR Scheme, the dividend percentage was reduced to 2 percent from 7.5 percent with effect from date of issuance of CRPS. The CDR dated August 13, 2009 does not stipulate any reference to aforesaid CRPS. Accordingly the CRPS shall be redeemable after the full settlement of dues to term lenders i.e. in Financial Year 2024-25 as against earlier stipulated repayment in Financial Year 201617. (with reference to CDR dated June 24,2005).

The Shareholder of aforesaid CRPS, Shree Dhoot Trading and Agencies Limited was Amalgamated with Electroparts (India) Private Limited w.e.f. July 19, 2017 vide order of The National Company Law Tribunal.

(ii) 15,984,543, 2% Cumulative Redeemable Preference Shares of Rs. 100/- fully paid up, aggregating up to Rs. 1,598,454,300 were allotted on November 9, 2010 to the Banks and Financial Institution, namely, IDBI Bank Limited, Life Insurance Corporation of India, Oriental Bank of Commerce, Kotak Mahindra Bank (formerly ING Vysya Bank) and State Bank of India (formerly State Bank of Patiala) in terms of the Corporate Debt Restructuring Package (CDR Package) approved by the Corporate Debt Restructuring Cell (CDR Cell) vide their letter dated August 13, 2009, in conversion of 25% of their outstanding loans; the CRPSs shall be redeemed (yearly) over a period of four years commencing from March 31, 2021 at a premium of 34% p.a. The entire amount of 2% CRPS amounting to Rs. 15,984.54 Lakh has been classified as current liability which will be due for payment by March 31, 2025.

Critical accounting estimates, assumptions and judgments

The estimates and judgements used in the preparation of the said financial statements are continuously evaluated by the Company, and are based on historical experience and various other assumptions and factors (including expectations of future events), that the Company believes to be reasonable under the existing circumstances. The said estimates and judgements are based on the facts and events, that existed as at the reporting date, or that occurred after that date but provide additional evidence about conditions existing as at the reporting date.

Although the Company regularly assesses these estimates, actual results could differ materially from these estimates - even if the assumptions under-lying such estimates were reasonable when made, if these results differ from historical experience or other assumptions do not turn out to be substantially accurate. The changes in estimates are recognised in the financial statements in the period in which they become known.

b) Defined Benefit Plan

The employees' gratuity fund scheme is partially managed by Life Insurance Corporation of India and ICICI Lombard General Insurance Company Limited which is a defined benefit plan. The present value of obligation is determined based on actuarial valuation using the Projected Unit Credit Method, which recognises each period of service as giving rise to additional unit of employee benefit entitlement and measures each unit separately to build up the final obligation and the obligation for leave encashment is recognised in the same manner as gratuity.

a During the year ended March 31, 2007, Bharat Sanchar Nigam Limited ('BSNL') has raised supplementary bill dated August 10, 2006 for Rs. 1,676.14 Lakh towards Inter-connect Usage Charges ('IUC') and Access Deficit Charges ('ADC') for the period November 14, 2004 to August 31, 2005 on the Company. BSNL further raised invoices to the tune of Rs. 993.47 Lakh on similar grounds for the period September 1, 2005 to February 28, 2006. These charges are on account of unilateral declaration of the Company's Fixed Wireless Terminals (FWT) and Fixed Wireless Phone (FWPs) services as Limited Mobility (LM) Services by BSNL. The Company has submitted its reply to BSNL on August 23, 2006 asking for the calculation/basis for the additional amount raised towards IUC and ADC by BSNL for Rs. 1,676.14 Lakh. Subsequently, BSNL issued a disconnection notice on August 26, 2006 which required the payment of Rs. 2082.37 Lakh (including Rs. 1,676.14 Lakh). The Company has submitted details to BSNL for payments already made for Rs. 406.22 Lakh. The Company

has approached Hon'ble TDSAT on the subject matter and a stay order was granted on Company's petition no 232 of 2006 against the disconnection notice on September 21, 2006. BSNL Jalandhar Office subsequently raised a supplementary bill dated March 20, 2007 for Rs. 52.07 Lakh, to which the Company has submitted its reply on March 23, 2007 intimating that the matter being sub-judice and pending decision by the Hon'ble TDSAT, no coercive action be taken against the Company. The hearing on the matter has been completed and the Hon'ble TDSAT has pronounced the judgment on May 21, 2010 in Company's favour and has directed that BSNL and the Company should exchange relevant information and reconcile the differences. BSNL went for appeal in Hon'ble Supreme Court vide CA No-7435 of 2010. The matter is yet to be listed in SC for hearing. In the absence of information from BSNL, the Company is not in a position to determine the liability with respect to this matter. The Company, based on expert legal opinion, believes that there would be no financial liability against such bills total amounting to Rs. 2,721.68 Lakh and accordingly, has not recorded any liability towards the IUC and ADC supplementary bills during the period ended March 31, 2024, however the same is considered as contingent liability.

b The Company was in receipt of a demand of Rs. 4,331.58 Lakh from Bharat Sanchar Nigam Limited ('BSNL') on December 20, 2008 on account of unilateral revision of Access Deficit Charges (ADC) vide its letter dated April 28, 2001 for the period from June 2001 to May 2003, in contravention of the Interconnect Agreement and TRAI Regulations. The Company, Association of Unified Service Providers of India 'AUSPI' (erstwhile Association of Basic Telephone Operators 'ABTO') and other Basic Service Operators contested aforesaid revision in the rates of access charges before Telecom Dispute Settlement Appellate Tribunal ('TDSAT'). TDSAT vide its reasoned and detailed judgement dated April 27, 2005 allowed the refund claims and struck down the unilateral revision in the rates of access charges by BSNL and held that Telecom Regulatory Authority of India ('TRAI') is the final authority for fixing of access charges and access charges would be payable as rates prescribed by the TRAI and as per the Interconnect agreements. BSNL preferred an appeal in Hon'ble Supreme Court against the order of TDSAT and an interim stay was granted on October 19, 2006 Therefore aggrieved by such unilateral action on the part of BSNL by raising aforesaid demand and disturbing the status-quo, applications were moved by the Company, AUSPI and other Operators in the Hon'ble Supreme Court vide C.A No.5834-5836 of 2005 that was listed for hearing on February 9, 2009 and Hon'ble Supreme Court passed an order clarifying its previous order of October 19, 2006 and stayed the refunds claim against the BSNL there by upholding the TDSAT order dated April 27, 2005 whereby BSNL is refrained from raising the access charges demand. The BSNL went for appeal in Hon'ble Supreme Court vide C.A No 5834-5836 of 2005 BSNL Vs ABTO & Others. The matter was Tagged with CA-5253 of 2010 to decide the preliminary objection raised by TRAI on the TDSAT"s jurisdiction. Next date of hearing is awaited. The Company based on the legal opinion believes that there would be no financial liability against this demand of Rs. 4,331.58 Lakh and has accordingly not recorded any liability towards access charges during the period ended March 31, 2024, however the same is considered as contingent liability.

c The Company was in receipt of demand of Rs. 70.00 Lakh from Department of Telecommunications ('DoT'), Licensing Group (Access Services) vide their letter dated October 21, 2009 for issuance of SIM cards on fake ID in Punjab Service Area, where in the Licensee was required to ensure adequate verification of each and every customer before enrolling him as a subscriber. The Company has replied to DoT vide letter dated November 14, 2009 that the levy of penalty imposed by DoT was based on verification done by an agency other than the DoT - TERM Cell and the exercise was carried out suo moto and in complete disregard of the established procedures and guidelines laid by DoT. Accordingly the Company has requested DoT to have this validation done by the DoT - TERM Cell. The Company believes that there would be no financial liability against this demand of Rs. 70.00 Lakh and has accordingly not recorded any liability towards penalty during the period ended March 31, 2024, however the same is considered as contingent liability.

d As per The Telecommunication Interconnect Usage Charges Regulations 2003, intra circle carriage charges payable per minute for all intra circle calls irrespective of the distance between originating and terminating points. However, Bharat Sanchar Nigam Limited ('BSNL') was charging additional amounts based on distance for the period October 2007 to March 2009 which was against the Telecommunication Interconnect Usage Charges Regulations 2003 of TRAI. The matter was raised to Hon'ble TDSAT by service providers to which Hon'ble TDSAT vide it's order dated May 21, 2010 upheld the demand of BSNL. The liability of the Company on the basis of BSNL demand is amounting to Rs. 41.11 Lakh. Subsequently TRAI appealed against the order of TDSAT in the Hon'ble Supreme Court vide CA No 271-281 of 2011. The matter is sub-judice and the final decision of the Hon'ble Supreme Court in the matter is still awaited. However the Company has considered the demand of Rs. 41.11 Lakh as contingent liability as at March 31, 2024

e The DoT (Term Cell) Punjab has issued another Show Cause Notice to the Company making a demand for Rs. 3,235.00 Lakh DOT vide letter number 8-8/EMR-QTL/TERM-PB/2013/15C dated December 30,2013, wherein the TERM Cell, Punjab has imposed a penalty for alleged non-compliance for Emission Magnetic Frequency ("EMF') radiation norms (share site) with respect to 647 Base Transreceiver Stations ('BTS') as per list attached with said letter, in terms of the Unified Access Services ('UAS') License granted to the company. The Company has since submitted its response to the TERM Cell vide letter dated January 8, 2014, in reply to above, the Term Cell had issued an amended Show Cause Notice vide letter no. 8-8/EMR-QTL/TERM-PB/2013/24C dated August 7, 2014 superseding its earlier Show Cause Notice and revising the amount of penalty to Rs. 267,000,000 for 534 BTS sites (in place of earlier show cause demanding Rs. 3,235.00 Lakh for 647 BTS sites). The Company filed a case in TDSAT and the matter is listed vide Petition No. 423 of 2014 and pending for hearing but the amount of penalty amounting to Rs. 2,670.00 Lakh has been considered as contingent liability.

f The Company had received a Show Cause Notice/Demand Letter dated 11-08-2015 pertaining to the SAF non-compliance of about 5317 SAFs for the year 2013 with CAF Penalty of Rs. 1,846.25 Lakh. We have got examined all the SAFs pointed out by DoT-TERM Cell and the number of non-compliant SAFs reduced to 4564. In the meantime we have represented the case with DDG (TERM) to reexamine all the referred cases. The non-compliances had been occurred due to one of the distributor in Punjab who manipulated the large numbers of ID which were beyond the control of operators. In the present case, all the SAFs of one of the distributors of all the operators in Punjab are non-complied due to the ID problem. The matter is being re-examined by TERM and other departments to assess as how to protect the TSPs interest in case of such non-compliance is done by the Distributors. Industry is working on it by taking appropriate checking mechanisms in place to avoid such non-compliance happening henceforth in any manner. Also, industry is

taking appropriate legal action against the defaulting distributors without affecting the normal business of the Company. DOT-Term Cell reduced the CAF penalty to Rs. 1,542.25 Lakh for 3956 no. of CAFs in default. So the Company has filed petition in TDSAT vide petition No.13 of 2016 which is pending for final arguments and the Company has considered the same as contingent liability.

g The Company was in receipt demand for Rs. 1,400.00 Lakh vide Show Cause Notice dated September12, 2016 from Department of Telecommunications ('DoT') for non fulfilment of First and Second phase roll-out obligations of Unified Access Service License ('UASL') (CDMA) Agreement for Punjab Service Area, wherein, the licensee, as per the terms of the license agreement was required to ensure that at least 10% of the District Headquarter / Towns are covered in the first year and 50% of the District Headquarter will be covered with in the three years of effective dated of License. The date of migration to UASL which commences from the date of Test Certificate issued by Telecom Engineering Centre ('TEC') as stated by DoT in the Show Cause Notice issued, the Company has violated the conditions of UASL and accordingly Liquidated Damages of Rs. 1,400.00 Lakh has been imposed. Company submitted its reply vide letter No. QTL/Reg/DoT/F-11/1611/124 dated November 24, 2016 for personal hearing which has been done on 30.06.2019 at DoT HQ and time has been given by DoT to submit brief submission along with documentary proof. The Company has submitted brief details along with documentary proof to DoT & 2nd personal hearing has been done on 05.11.2019 at DoT HQ and now it is pending at DoT end for finalization. Petition has been filed by QTL challenging the Demand Notice bearing no. 1-5/2016-AS-IV dated 24.06.2020 ("Notice") issued by Department of Telecommunications ("DoT") vide which Company has been directed to pay INR 700.00 Lakh towards imposition of Liquidated Damages ("LD") for default in compliance of 1st Phase Roll-out obligations in respect of Basic Service License agreement CDMA. Company has filed Telecom Petition No. 37 of 2020 before Hon'ble TDSAT against impugned demand dated 24.06.2020 imposing Liquidated Damages of INR 700.00 Lakh. The petition was listed before Hon'ble TDSAT for hearing on 13.07.2020 and interim stay was granted against the impugned demand. The matter is in due course. Interim Order shall continue till the next date of hearing The Company believes that there would be no financial liability against this demand of Rs. 700.00 Lakh and has accordingly not recorded any liability towards penalty during the year ended March 31, 2024 but the same has been considered as contingent liability.

h The Company was in receipt of demand notice for Rs. 700.00 Lakh by Show Cause Notice dated 13th June, 2016 from Department of Telecommunication ("DoT") for Levy of Liquidated Damages (LD) on provisional Basis for default in Compliance of first phase as well as second phase of rollout obligation in respect of dual Technology (Second) spectrum (GSM). AS per NTP -99 was amended introducing two new categories of License and UASL 2007. Principle approval to use GSM Technology (Second Technology) in addition to CDMA technology under the existing UASL (S) was granted to the licensee vide letter No.20-100/2007/Spectrum/AS-I/3 dated 18.10.2007. The Company shall meet the roll-out obligation and other stipulation of the UAS license. As the Company had not fulfilled the first phase Roll out obligation. As per directed to show-cause notice within 21 days from the date of issue of this notice liquidated damages amounting to total Rs. 700.00 Lakh on provisional basis. Company filed reply letter against show cause notice on legal ground on 31.08.2016 for personal hearing which has been done on 30.06.2019 & 05.11.2019 at DoT HQ. Thereafter DoT vide letter dated 28.04.2020 has issued Demand notice of 7 Crores (Seven Crores), so the Company has filed Petition No. 11 of 2020 before Hon'ble TDSAT against impugned demand letter dated 28.04.2020 and Hon'ble TDSAT vide its order dated 14.05.2020 has grant interim stay against the impugned demand letter dated 28-4-2020 and Matter connected with other matter and last listed on 20-August-2020 Next date awaited for arguments, connected matter was listed on 24-May-2022, pleadings and evidences are complete in the matter and the same will be listed before the Hon'ble Bench for hearing in due course. The Company believes that there would be no financial liability against this demand of Rs. 700.00 Lakh and has accordingly not recorded any liability towards penalty during the year ended March 31, 2024 but the same has been considered as contingent liability.

i The company had received a demand of Rs. 759.88 Lakh from a Department of Telecommunications (DOT) vide letter no. 17-41/2018/ LFA/Quadrant dated 31.03.2021 on account of Access Service License Fee dues for F.Y. 2017-18, thereafter, a revised demand notice no. 17- 41/2018/LFA-Quadrant dated 04.07.2023 for Rs 634.78 lakh was received, subsequently the demand notice was revised again vide no. 17- 41/2018/LFA-Quadrant dated 08.01.2024 for Rs 482.19 lakh. The company had received a demand of Rs. 434.14 Lakh from a Department of Telecommunications (DOT) vide letter no. 17-9/2020/LFA/QTL dated 06.01.2022 on account of Access Service License Fee dues for F.Y. 2018-19, thereafter, a revised demand notice no. 17- 9/2020/LFA-QTL dated 10.07.2023 for Rs 352.31 Lakh was received.DoT had offered moratorium for the FY 2017-18 & FY 2018-19, the period which was not covered under the Judgment of hon'ble Supreme Court. The demand raised as per the moratorium offer letter dated 15.06.2022 for the FY 2017-18 was Rs 642 Lakh and for FY 2018-19 Rs 244 Lakh. QTL has accepted moratorium offer vide letter dated 22.06.2022 and the same has been consideration by DOT. Though, DoT has revised its demand for FY 2017-18 from Rs 642 lakh to Rs 482.19 lakh, revised moratorium demand is yet not received. QTL has already provided for license fee amounting to Rs. 267.24 lakh for FY 2017-18 and Rs 231.12 lakh for FY 2018-19 in the books of accounts . So the Company has considered differential demand of Rs. 336.17 Lakh as contingent liability.

j The Company has received a demand of Rs. 5,276.27 Lakh vide letter dated 04-April'2018 and miscellaneous application no. 175 of 2019 from IDEA Cellular Limited (ICL) on account of International SMS Termination Charges for the period from Nov-17 to Feb-18. ICL has billed the Domestic SMS Traffic again to the Company in the pretext of International SMS Traffic, by citing reference to a paragraph of Interim Order of TDSAT vide dated October 13, 2017 towards petition No. 99 of 2017, which is reproduced as " if any International SMS Traffic is terminated from the Company to ICL Network in terms of A2P & P2P based on CLI / GTs or as well as on content, such SMS Traffic shall be charged at the rate of Rs. 5/- per SMS, the CDR reports furnished by ICL shall be considered final & conclusive". Whereas, the Company terminates only Domestic SMS Traffic at the network of ICL. The Company has replied suitably to the above demand letter of ICL vide its letter dated 06.04.2018 and also to the miscellaneous application filed by ICL before TDSAT, but the matter is not yet concluded and it is pending for hearing and the matter is in due course for final arguments. However, the Company is confident that no liability would accrue in future with respect to demand of Rs. 5,276.27 Lakh, however the same is considered as contingent liability .

k The Company (QTL) and Indus Towers Ltd (Indus) had entered into an arrangement/ agreement for Passive Telecom Infrastructure Services, wherein Indus was required to provide Passive Telecom Infrastructure Services under the said agreement. Dispute arisen between the parties, as the Company has closed its GSM operations w. e. f. February 15, 2017.Therefore, Indus has filed a Petition under section 9 of the Arbitration and Conciliation Act, 1996 ("the Act") seeking security i.e. Total Claim Amount of Rs. 6,970.33 Lakh bifurcated into Exit Penalty of Rs. 4885.84 Lakh and disputed Invoices of Rs. 2084.49 Lakh. Consequently, Delhi High Court passed an order on the captioned petition and the applications will be placed before the learned Arbitrator and the learned Arbitrator will treat the petition as an application under Section 17 of the Arbitration and Conciliation Act, 1996. Thereafter, arbitration award was passed against QTL on dated 19-Jul-2019 amounting to Rs. 1,309.51 Lakh along with interest rate @ 15.40% p.a. w.e.f. 08-Mar-17 till realisation as well as arbitration cost of Rs. 37.50 Lakh. Indus has filed a section 34 petition against the arbitration award and QTL has also filed Section 34 petition against the arbitration award and same is listed on 19 May 2023 for Arguments at Delhi High Court. Further, Indus has filed Section 36 petition for the enforcement of arbitration award at Delhi High Court, the matter is now listed on 26.07.2024 for arguments. So the Company has considered contingent liability to the tune of Rs. 1,347.01 Lakh.

l The Company (QTL) and ATC Telecom Infrastructure Ltd (formerly VIOM) had entered into an arrangement/ agreement for Passive Telecom Infrastructure Services, wherein ATC was required to provide Passive Telecom Infrastructure Services under the said agreement. Dispute arisen between both the parties, as the Company has closed its GSM operations w.e.f. February 15, 2017.Therefore, ATC has filed a case under section 9 of the Arbitration and Conciliation Act, 1996 ("the Act") at Delhi High Court on May 11, 2017 for a total claim of Rs. 8,787.00 Lakh bifurcated into Exit Penalty of Rs. 6,683.00 Lakh and disputed Invoices of Rs. 2,100.00 Lakh. It is pertinent to mention herein that as per Clause No 2.4 of supplementary Agreement dated September 12, 2013, if the Company does not pay the dues, Videocon Telecommunications Limited (VTL) has to pay the same on behalf of the Company. Consequently, Delhi High Court has passed an order directing VTL not to withdraw the sum to the extent of Rs. 1757.00 Lakh from the Escrow Account. The matter has been disposed off on 07-Mar'2018 and arbitration award for Rs. 10,463.40 Lakh has been passed against QTL on dated 25-May-2019. QTL has filed Section 34 petition against the arbitration award, next date of hearing is 22-Nov-22 for arguments. Additionally ATC has also filed Section 36 petition for the enforcement of award at Delhi High Court and matter was listed on 12-April-2021 for arguments, but ATC filed withdrawal application to withdraw the petition under Section 36 and as per court order dated 26-Feb-2021 the petition under section 36 is dismissed and the hearing scheduled on 12-April-2021 stands cancelled. Additionally ATC has filed Section 36 petition for the enforcement of arbitration award at Mohali Court (Punjab) and the matter is listed on 04.07.2024. However the arbitration award amounting to Rs. 10,463.40 Lakh has been considered as contingent liability.

m TCL vs QTL petition no. 95 of 2017 was filed on 20.09.2017 in Hon'ble TDSAT in respect of downgrade of bandwidth service charges amounting to Rs. 229.00 Lakh. The next hearing of case was held on 22.05.2018 and after that the PO No. 6700000006 dated 08.07.2016 was issued to paramount for the conditions superseding the terms of the customer order form (COF), there by the terms and conditions of said PO shall prevail, the 12 month contract was applicable only from the date of the implementation of bandwidth up to 5000 E1 and an additional bandwidth was enhanced to 7020 E1, but thereafter upon revision of price the same was downgraded by the Company and Terminated to 3020 E1. The PO did not state any contract period for the up-gradation thereafter. So in lieu of the same, the TCL had filed the case before the TDSAT for recovery of outstanding amount claiming to have lock-in-period of another one year till April 2018 as per the agreement executed. Case is listed for hearing before TDSAT in due course and above amount is considered as contingent liability.

n The Company has received Show Cause Notice bearing no. 311-07/ 2019-QoS, dated 01st October 2020 from Telecom Regulatory Authority

of India (TRAI) towards non-compliance of the provisions of Telecom Commercial Communications Customer Preference, Regulations, 2018 (TCCCPR, 2018) for the month of April, May, June 2020, response for the same is submitted to TRAI vide letter bearing no. QTL/ Reg/TRAI/2010/1366 dated 15th October 2020. After examination, Telecom Regulatory Authority of India (TRAI) vide it letter bearing number 311-08/2019-QoS, dated 23rd November 2020 imposed Financial Disincentive to QTL an amount of INR 141.70 Lakh towards non-compliance of the provisions of Telecom Commercial Communications Customer Preference, Regulations, 2018 (TCCCPR, 2018) for the month of April, May, June 2020. The Company vides it letter bearing number QTL/Reg/TRAI/ 2012/1409 dated 14th December 2020 submit its representation to TRAI on the same. TRAI further raised demand notices for Q2 2020-21 for Rs 150 Lakh, for Q3 2020-21 for Rs 150 Lakh, for Q4 2020-21 for Rs 150 Lakh, for Q1 2021-22 for Rs 149 Lakh, for Q2 2021-22 for Rs 111 Lakh and for Q3 2021-22 for Rs 54 Lakh. TRAI vide its letter dated 25th October 2023 asked to pay the demanded amount. The Company along with Cellular Operator Association of India (COAI) submitted representation vide letter bearing number DG/COAI/2022/121 dated 13th April 2022 and COAI discussed the matter with all Telecom Service Providers (TSPs) and is now approaching Hon'ble TDSAT on behalf of TSPs against the demands raised by TRAI, so the Company has considered contingent liability to the tune of Rs. 905.60 Lakh. The Company has filed case against demand raised by TRAI in High Court - New Delhi on 08-May'2024.

o The Hon'ble TDSAT on dated 18.10.2019 has allowed the Petition No.169 of 2014 and has set aside the DoT's decision to include revenue from pure internet services in the AGR for levy of license fee on the ISPs under Unified License. TDSAT has also directed to refund the UL (ISP) the payment received by DoT towards License Fee on Pure Internet Services. DoT has challenged the TDSAT judgment dated 18.10.2019 vide Civil Appeal No. 14382/2020 before Hon'ble Supreme Court of India. The Hon'ble Supreme Court of India has admitted the Appeal and had passed the following order vide dated 05.01.2021. (i) The Appellant shall not be required to refund any amounts in pursuance of the impugned order of the TDSAT dated 18.10.2019, (ii) The Respondents shall, in the event of the Appeal succeeds, be subject to final directions as may be passed by the Court in its judgment. According to DoT demand notes, total license fees liability from FY 2014-15 to FY 2022-23 is Rs. 25,437 Lakh (which includes interest & penalty), payable if the Supreme Court rules in favour of DoT and same has been considered as contingent liability.

p The Company's pending litigations comprise of claims against the Company and proceedings pending with Tax Authorities / Statutory Authorities. The Company has reviewed all its pending litigations and proceedings and has made adequate provisions, wherever required and disclosed the contingent liabilities, wherever applicable, in its financial statements.

q The Company periodically reviews all its long-term contracts to assess for any material foreseeable losses. Based on such review wherever applicable, the Company has made adequate provisions for these long-term contracts in the books of account as required under any applicable law/accounting standard.

r As at March 31, 2024 the Company did not have any outstanding for long-term derivative contracts.

39 During the year 2021-22, IDBI Bank the lead Bank of the consortium of the Lenders enforce its security interest in respect of Secured non-core assets comprising assets held for sales related to obsolete GSM equipment lying at Bharuch and 1 flat in Surat & 2 flats in Mumbai having total net book value of Rs. 342.14 Lakh as at March 31, 2022 and IDBI Bank has been taken the possession of above mentioned non-core properties located at Mumbai on dated 24-March'2022 and property at Surat and Obsolete GSM equipment lying at Bharuch Warehouse (Gujarat) on dated 12-May'2022. Out of these, IDBI Bank had sold one of the non core property located at Mahim - Mumbai at sale consideration of Rs. 516.00 Lakh and in the FY 2023-24, IDBI Bank sold another non core property (Kandiwali Flat in Mumbai) at a sale consideration of Rs. 138.01 Lakh under SARFAESI auction and the sale proceeds of the said property was shared by the IDBI bank along with other consortium Lenders. The said action by the IDBI Bank is not expected to hamper the operations of the Company in any manner.

40 The Company is in process of reconciliation / adjustments, if any, on its balances of some of the trade payable, other liabilities, advances and security deposits pertaining to erstwhile GSM business. The requisite accounting effect, if any, will be given upon such reconciliation. However the management is in process of reconciliation / adjustments, if any, on its balances of some of the trade payable, other liabilities, advances and security deposits pertaining to erstwhile GSM business. The requisite accounting effect, if any, will be given upon such reconciliation. The management however doesn't expect any material variances.

41 The Company has incurred a net loss of Rs. 11,396.77 Lakhs during the year and the accumulated losses as at March 31, 2024 amounted to Rs. 2,56,687.68 Lakhs, resulting in, the erosion of its net worth, its current liabilities material exceeds current assets, and all the NCD issued to consortium of financial creditors becomes due. Further the financial creditors had filed application before NCLT Mumbai under Insolvency and Bankruptcy code 2016 on 2nd April 2024, these event and conditions indicate material uncertainty exists that may cast significant doubt on the ability of the Company to continue as a going concern. However, the accounts of the Company have been prepared on a going concern for the factors stated in the aforesaid note. However, auditor is claiming in their audit report that they have not obtained sufficient and appropriate audit evidence regarding management's use of the going concern assumption in the preparation of the financial statements of the company and with the events and conditions more explained in the Note no. 5 of the statement does not adequately support the use of going concern assumption in preparation of the financial statements of the Company. However the management is confident of generating cash flows from continue business operations through increasing subscriber' base and ARPU as well as through restructuring of bank loans along with the support of other stakeholders and the application filed under Insolvency and Bankruptcy code 2016 is under scrutiny not admitted. In view of the above, the accounts of the Company have been prepared on a going concern basis.

42 Secured Loans

a As per the CDR Scheme approved on March 10, 2004 and subsequently approved on June 4, 2005, the Lenders had signed Master Restructuring Agreement ('MRA') for restructuring of their Debts and Security Trusteeship Agreement, whereby the Lenders had entered into an agreement and appointed IDBI Trusteeship Services Limited (herein after referred as "ITSL") as their custodian of security. On November 11, 2005, the charges were registered in favour of the ITSL for Rupee Term Loans, for providing Specific Credit Facility, for Working Capital Assistance and Zero percent Secured OFCDs. The same are secured by first pari passu charge on immovable properties of the Company situated at Mahim & Kandivali (East) at Mumbai, and properties situated at Mohali & Jalandhar under equitable mortgage, first pari passu charge of hypothecation of movable properties of the Company including movable plant & machinery, machinery spares, tools & accessories and other movables including book debts by way of hypothecation, both present and future. Further, the same are also secured by assignment of all rights, title, benefits, claims and interest in, under the project documents, insurance policies, all statutory, government and regulatory approvals, permissions, exemptions and waivers on pari passu basis. Subsequently, pursuant to the reworked restructuring scheme approved under CDR mechanism on June 24, 2005, the Company had entered into amendatory Master Restructuring Agreement and amendatory Security Trusteeship Agreement ('STA') on March 9, 2006, whereby HDFC Bank Limited (formerly Centurion Bank of Punjab) had also joined as one of the lenders and has agreed to appoint ITSL as their custodian for security and signed the STA in line with other lenders in consortium.

On the request of the Company, Corporate Debt Restructuring Cell ('CDR') vide their letter no CDR (JCP) No. 138 / 2009-10 ('CDR Letter') dated May 20, 2009 had approved the interim revised restructuring package. The revised restructuring package inter alia includes funding of interest from July 1, 2008 to October 31, 2009 on simple interest basis. Funded Interest on Term Loan ('FITL') would not carry any interest and the FITL shall be repaid in 16 equal monthly instalments commencing from December 1, 2009, and has rescheduled the principle instalments from August 1, 2008 to November 1, 2009 so as to be repayable from December 1, 2009 to March 1, 2011. Corporate Debt Restructuring ('CDR') cell vide their letter no. CDR (JCP) No. 563 / 2009-10 dated August 13, 2009 had approved a new restructuring scheme, which includes the induction of strategic investor / change of management and settlement proposal for Term Lenders. All the term lenders had given their acceptance to the new restructuring scheme. The new restructuring scheme was made effective from April 1, 2009 and accordingly an amount of Rs. 3,730.97 Lakh towards FITL from July 1, 2008 to March 31, 2009 has been considered as term loan.

In pursuant to the new restructuring scheme vide letter no. CDR (JCP) No 563 / 2009-10 dated August 13, 2009, The Company had allotted 15,984,543, 2 % Cumulative Redeemable Preference Shares of Rs. 100/- each aggregating to Rs. 15,984.54 Lakh on November 9, 2010 to Financial Institution / Banks in conversion of 25% of their outstanding loans as on April 01, 2009.

In compliance with the aforesaid new restructuring scheme dated August 13, 2009 the Company had repaid on July 06, 2010 and July 07, 2010 an amount of Rs. 15,984.54 Lakh being 25% of their outstanding loans as on April 01, 2009.

In compliance with the aforesaid new restructuring scheme dated August 13, 2009, the Company had allotted 31,969,088 Redeemable Secured Non-Convertible Debenture ('NCD') of Rs. 100 each aggregating to Rs. 31,969.09 Lakh on January 21, 2013 to Financial Institution/ Banks in conversion of 50% of their outstanding loans as on April 01, 2009.

In terms of CDR Package dated August 13, 2009 stipulating the reduction of paid up capital and pursuant to the Order of the Hon'ble Bombay High Court dated July 4, 2014 under Section 100 to 105 of Companies Act, 1956, which was duly registered by the Registrar of Companies, Mumbai on Sept 3, 2014, the paid-up value of the 61,22,60,268 equity shares stood reduced from Rs. 10/- per share to Re. 1/ - per share w.e.f. Sept 3, 2014; Consequently, paid up equity share capital also stood reduced from Rs. 61,226 Lakh to Rs. 6,122 Lakh and the Accumulated Losses were written-off to the extent of Rs. 55,103 Lakh on Sept 3, 2014. The trading of Equity Shares with reduced face value of Re. 1/- per share has commenced on December 29, 2014 at BSE Ltd.

b The above-mentioned security has been further extended to the amount of secured loans and working capital assistance, together with the interest, compound interest, additional interest, default interest, costs, charges, expenses and any other amount payable by the Company in relation thereto and in terms with MRA and STA entered into between the lenders and ITSL. The Company has complied with all the terms and conditions of Corporate Debt Restructuring Scheme as approved by the CDR Cell letter dated August 13, 2009.

43 Unsecured Loans

a On October 16, 2004, the Company issued 1,667,761 Zero Percent Non-Convertible Debentures ('NCDs') of Rs. 100/- each in lieu of interest accrued on term loans from a financial institution and a bank for the period April 1, 2003 to December 31, 2003. The 'NCD's earlier redeemable at par on March 31, 2014, then at par on March 31, 2016, and now redeemable at par on March 31, 2024 after repayment of the term loans as per CDR Schemes.

b The Company under the terms of the agreement dated May 1, 2007 had taken convertible loan to facilitate expansion and development of businesses amounting to Rs. 4,995 Lakh from Infotel Digicomm Private Limited ('IDPL'). The convertible loan was repayable on demand with an option to convert the Loan into Equity Shares, subject to getting necessary approvals and subject to applicable pricing guidelines as per SEBI and other laws and regulations. On September 16, 2009 Infotel Digicomm Private Limited ('IDPL') had entered into an assignment agreement with Domebell Electronics India Private Limited ('DEIPL'), wherein IDPL had assigned the above convertible loan of Rs. 4,995 Lakh to DEIPL. The Company under the terms of the agreement dated May 1, 2007 had taken buyer's credit facility to facilitate funding of the telecom project amounting to Rs. 4,107 Lakh from Infotel Business Solutions Limited ('IBSL'). IBSL had the option to convert the loan including interest accrued into equity shares, subject to applicable pricing guidelines as per SEBI and other laws and regulations. On September 16, 2009 IBSL had entered into an assignment agreement with Domebell Electronics India Private Limited ('DEIPL'), wherein IBSL had assigned the above buyer's credit facility of Rs. 4,107 Lakh to DEIPL. On May, 2018 Domebell Electronics India Private Limited ('DEIPL') had entered into an Novation agreement with Hyundai Electronics India Limited ('HEIL'), wherein DEIPL had assigned the above both convertible loan amounting to Rs. 9,102 Lakh to HEIL. On November 1, 2019 Hyundai Electronics India Limited ('HEIL') had entered into an Novation agreement (effective from 01.04.2020) with Electroparts (India) Private Limited ('EIPL'), wherein HEIL had assigned the above convertible loan of Rs. 9,102 Lakh to EIPL. Again on June 1, 2020 Electroparts (India) Private Limited ('EIPL') had entered into an Novation agreement with Videocon Infinity Infrastructure Private limited ('VIIPL') wherein EIPL had assigned the above convertible loan of Rs. 9,102 Lakh to VIIPL. All the terms and conditions relating to the convertible loan remained the same. VIIPL have agreed to waive off interest amounting to Rs. 546.12 Lakh from 01-Apr'23 to 31-March'24. Therefore no provision for such interest has been provided in the books of accounts. Consequent to the addendum to the Novation agreement, the convertible loan from VIIPL is now repayable after 14 years from the date of assignment agreement dated September 16, 2009. However the management is in process to take the extension for another three years.

c The Company had taken an unsecured loan from Dombell Electronics India Private Limited on July 01, 2010 of Rs. 15,985 Lakh at the interest rate of 8% per annum, the interest accrues at the end of each quarter. On May, 2018 Domebell Electronics India Private Limited ('DEIPL') had entered into an Novation agreement with Akai Consumer Electronics India Limited (ACEIL), wherein DEIPL had assigned the above unsecured loan to ACEIL. The lender has agreed to waive off the interest from April 1, 2023 to March 31, 2024 amounting to Rs 1,278.80 Lakh. Therefore no provision for such interest has been provided in the books of account. The aforesaid unsecured loan is repayable on demand after 18 years from the commencement of the unsecured loan from the date of assignment agreement dated December 01, 2010 i.e. November 30, 2028.

d During the FY 2016-17, the Company has issued 1,20,00,000 Unsecured Zero Coupon Compulsory Convertible Debentures of face value of Rs. 1,000/- each convertible into 12,00,00,000 2% Non-Cumulative, Non-Convertible, Redeemable Preference Shares of face value of Rs. 100/- each against advance of Rs. 121,939.75 Lakh received from M/s Videocon Telecommunications Limited to fund the entry fee for using GSM Technology and to support business operations for Punjab Service Area on the following terms and conditions:

• Zero Coupon CCDs shall be converted into 2% NCRPS at par, after settlement of entire obligations under CDR. Since the entire obligations under CDR is to be settled/cleared by the year 2024 as per CDR letter dated August 13, 2009, accordingly, the conversion of Zero Coupon CCDs into 2% NCRPS shall not happen before the Settlement Date (hereinafter referred as "Settlement Date") i.e. April 1, 2025.

• 2% NCRPS shall be redeemed in 5 yearly equal instalments payable on 31st March of each year, at par, as mutually agreed between

parties and as approved by the Board and, subject to necessary approvals as may be required in accordance with the provisions of Section 55 of the Act, out of profits available or out of proceeds of fresh issue of shares made for the purpose of redemption or combination of both.

e During the year 2017-18, the Company has issued 8,60,000 Unsecured Zero Coupon Compulsory Convertible Debentures of face value of Rs. 1,000/- each convertible into 86,00,000 2% Non-Cumulative, Non-Convertible, Redeemable Preference Shares of face value of Rs. 100/ - each against outstanding balance of M/s Videocon Telecommunications Limited on the following terms and conditions:^ Zero Coupon CCDs shall be converted into 2% NCRPS at par, after settlement of entire obligations under CDR. Since the entire obligations under CDR is to be settled/cleared by the year 2024 as per CDR letter dated August 13, 2009, accordingly, the conversion of Zero Coupon CCDs into 2% NCRPS shall not happen before the Settlement Date (hereinafter referred as "Settlement Date") i.e. April 1, 2025. • 2% NCRPS shall be redeemed in 5 yearly equal instalments payable on 31st March of each year, at par, as mutually agreed between parties and as approved by the Board and, subject to necessary approvals as may be required in accordance with the provisions of Section 55 of the Act, out of profits available or out of proceeds of fresh issue of shares made for the purpose of redemption or combination of both.

Financial Risk Management Objectives and Policies

The Company's principal financial liabilities, other than derivatives, comprise loans and borrowings, trade and other payables. The main purpose of these financial liabilities is to finance the Company's operations and to provide guarantees to support its operations. The Company's principal financial assets include loans, trade and other receivables, and cash and cash equivalents that derive directly from its operations.

The Company's business activities expose it to a variety of financial risks, namely liquidity risk, market risk and credit risk. The Company's senior management has the overall responsibility for the establishment and oversight of the Company's risk management framework. The Company's risk management policies are established to identify and analyse the risks faced by the Company, to set appropriate risk limits and controls and to monitor risks and adherence to limits. Risk management policies and systems are reviewed regularly to reflect changes in market conditions and the Company's activities.

Management of Liquidity Risk

Liquidity risk is the risk that the Company will face in meeting its obligations associated with its financial liabilities. The Company's approach to managing liquidity is to ensure that it will have sufficient funds to meet its liabilities when due without incurring unacceptable losses. In doing this, management considers both normal and stressed conditions.The following table shows the maturity analysis of the Company's financial liabilities based on contractually agreed undiscounted cash flows as at the Balance Sheet date.

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. Financial instruments affected by market risk include loans and borrowings, deposits, FVTOCI investments.

Credit Risk

Credit risk is the risk that counterparty will not meet its obligations under a financial instrument or 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 and other financial instruments.

Trade Receivables

Customer credit risk is managed by each business unit subject to the Company established policy, procedures and control relating to customer credit risk management. Credit quality of a customer is assessed based on an extensive credit rating scorecard and individual credit limits which are defined in accordance with this assessment. Outstanding customer receivables are regularly monitored. As at 31st March 2024, the Company had top10 customers (As at 31st March 2023: top 10 customers) that owed the Company more than INR 5.51 Cr (As at 31st March 2023: 5.93 Cr ) and accounted for approximately 24.67 % (As at 31st March 2023: 24.61 % ) of all the receivables outstanding.An impairment analysis is performed at each reporting date on an individual basis for major clients. In addition, a large number of minor receivables are grouped into homogenous groups and assessed for impairment collectively. The maximum exposure to credit risk at the reporting date is the carrying value of each class of financial assets disclosed in Note 10. The Company does not hold collateral as security. The Company evaluates the concentration of risk with respect to trade receivables as low, as its customers are located in several jurisdictions and industries and operate in largely independent markets.

Financial Instruments and Cash Deposits

Credit risk from balances with banks and financial institutions is managed by the management in accordance with the Company's policy. Counterparty credit limits are reviewed by the management on an annual basis, and may be updated throughout the year. The limits are set to minimise the concentration of risks and therefore mitigate financial loss through counterparty's potential failure to make payments.The Company's maximum exposure to credit risk for the components of the balance sheet at 31st March 2024 and 31st March 2023 is the carrying amounts as illustrated in Note 11.

Capital Management

Capital includes issued equity capital and share premium and all other equity reserves attributable to the equity holders. The primary objective of the Company's capital management is to maximize the shareholder value.

Management has assessed that cash & cash equivalents, other balances with banks, loans, trade teceivables, other financial assets, borrowings, lease liabilities, tarde payables and other financial liabilities carried amortised cost approximate their carrying amount lergely due to the short term maturities of these instruments

1. Fair Value Measurement

Fair Value Hierarchy and valuation technique used to determine fair value.

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 are categorized into Level 1 , Level 2 and Level 3 inputs.

49 Foreign Currency Exposure

The Company undertakes transactions denominated in foreign currencies; consequently, exposures to exchange rate fluctuations will arise. The Company has not taken any forward contract to hedge its foreign exchange fluctuation risk.

50 As per master circular on Import of Goods and Services vide ref no. RBI/2015-16/82 Master Circular No.13/2015-16, Dated July 01, 2015 (Amended up to November 27, 2015) remittances against imports should be completed not later than six months from the date of shipment. Non payment against import from nine parties beyond stipulated time amounting to Rs. 51.06 Lakhs as at March 31, 2024 (Rs. 50.78 Lakh as at March 31, 2023).

51 Other Statutory Information

i) The title deeds of all the immovable properties, (other than immovable properties where the Company is the lessee and the lease agreements are duly executed in favour of the Company) disclosed in the financial statements included in property, plant and equipment and Right of Use Assets are held in the name of the Company as at the balance sheet date

ii) 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.

iii) There are no investment in properties

iv) The Company does not have any Benami property, where any proceeding has been initiated or pending against the Company for holding any Benami property.

v) The Company has not advanced any loans or advances in the nature of loans to specified persons viz. promoters, directors, KMPs, related parties; which are repayable on demand or where the agreement does not specify any terms or period of repayment.

vi) The Company has not raised fund from issue of securities or borrowings from banks.

vii) The Company has not been declared as a wilful defaulter by any lender who has powers to declare a company as a wilful defaulter at any time during the financial year or after the end of reporting period but before the date when financial statements are approved.

viii) The Company has not been sanctioned working capital limits from banks or financial institutions. However there is non fund bassed limit of Rs. 832 Lakh as on 31-March'2024 from Lender Bank on account of Bank Guuarantees issued on behalf of Company.

xii) The Company has complied with the number of layers prescribed under clause (87) of section 2 of the Companies Act, 2013 read with Companies (Restriction on number of Layers) Rules, 2017.

xiii) The Company does not have any charges or satisfaction which is yet to be registered with the Registrar of Companies (ROC) beyond the statutory period.

xiv) 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.

xv) 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 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.

52 The Company had filed application for Compounding in respect offences under various sections of the Companies Act, 1956 before the Hon'ble Company Law Board.The Company was not able to file the particulars of satisfaction of charge due to non-receipt of NOC for the purpose of satisfaction of charge, hence, the offence was not compounded by the Honb'le Company Law Board Bench in its hearing held on 17th May, 2016 and dismissed the Compounding Application filed by the Company, its present and former Directors for Compounding of Offence under Section 138(1) of the Companies Act, 1956 vide its order dated 18th May, 2016. The Company is in process of obtaining NOC from the respective lender for the satisfaction of charge and will file the compounding application again after the registration of satisfaction of the charge.

53 Segmental Reporting

The Company's operating segments are established on the basis of those components of the Company that are evaluated regularly by the Chief Operating Officer ( the 'Chief Operating Decision Maker' as defined in Ind AS 108 - 'Operating Segments') in deciding how to allocate resources and in assessing performance. The primary reporting of the Company has been performed on the basis of business segments. The Company has only one business segment, which is provision of unified telephony services. Accordingly, the amounts appearing in these financial statements relate to this primary business segment. Further, the Company provides services only in the State of Punjab (including Chandigarh and Panchkula) and, accordingly, no disclosures are required under secondary segment reporting.

54 In absence of any taxable income, no provision for the current tax has been made. Also, in view of losses and unabsorbed depreciation, considering the grounds of prudence, deferred tax assets is recognized to the extent of deferred tax liabilities and balance deferred tax assets have not been recognized in the books of accounts.

55 Debenture Redemption Reserve

Pursuant to the CDR scheme on October 16, 2004, the Company had issued unsecured Zero Percent Non-Convertible Debentures ('NCD') (Erstwhile OFCDs) aggregating to Rs. 1,667.76 Lakh Pursuant to the new restructuring scheme dated August 13th, 2009 the Company had allotted secured Non-Convertible Debentures ('NCD') for Rs. 319,69.09 Lakh to Financial institution and Banks on January 21, 2013, equivalent to 50% of their outstanding loans as on April 01,2009. As per section 71(4) of the Companies Act, 2013, a Debenture Redemption Reserve ('DRR') is to be created to which adequate amounts are to be credited out of the profits of each year until such debentures are redeemed.During the year ended March 31, 2024, the Company has incurred loss of Rs. 11,368.89 Lakh due to which the Company has not created the 'DRR'.

56 The Company has carried out Impairment Test on its Fixed Assets as on March 31, 2024 and the Management is of the opinion that there is no asset for which impairment is required to be made as per IND-AS 36 - "Impairment of Assets".

57 Figures for the previous year has been regrouped/rearranged whenever necessary to confirm current year classification/presentation.