1.19 Provisions, Contingent liabilities and Contingent
Assets
Provisions are recognised when the Company has a present
legal or constructive obligation as a result of past events, it is
probable that an outflow of resources embodying economic
benefits will be required to settle the obligation and the amount
can be reliably estimated.
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.
Contingent liabilities are disclosed when there is a possible
obligation arising from past events, the existence of which
will be confirmed only by the occurrence or non-occurrence
of one or more uncertain future events not wholly within the
control of the Company or a present obligation that arises from
past events where it is either not probable that an outflow of
resources will be required to settle the obligation or a reliable
estimate of the amount cannot be made.
Claims against the Company where the possibility of any
outflow of resources in settlement is remote, are not disclosed
as contingent liabilities.
Contingent assets are not recognised in financial statements
since this may result in the recognition of income that may
never be realised. However, when the realisation of income is
virtually certain, then the related asset is not a contingent asset
and is recognised. A contingent asset is disclosed, in financial
statements, where an inflow of economic benefits is probable.
1.20 Retirement and other Employee benefits
Short-term obligations
Short term employee benefits are recognised as an expense at
an undiscounted amount in the Statement of profit and loss of
the year in which the related services are rendered.
a) Post-employment benefits
Defined Benefit Plans
The liability or asset recognised in the balance sheet in
respect of defined benefit gratuity plans is the present
value of the defined benefit obligation at the end of the
reporting period less the fair value of plan assets. Liability
with regards to gratuity plan is determined using the
projected unit credit method, with actuarial valuations
being carried out by a qualified independent actuary at
the end of each reporting period.
Remeasurement gains and losses arising from experience
adjustments and changes in actuarial assumptions are
recognised in the period in which they occur, directly in
other comprehensive income and will not be reclassified
to Statement of Profit and Loss.
Changes in the present value of the defined benefit
obligation resulting from plan amendments or
curtailments are recognised immediately in profit or loss
as past service cost.
The present value of the defined benefit plan liability is
calculated using a discount rate which is determined
by reference to market yields at the end of the reporting
period on government bonds. The defined benefit
obligation recognised in the Balance Sheet represents the
actual deficit or surplus in the Company's defined benefit
plans. Any surplus resulting from this calculation is limited
to the present value of any economic benefits available in
the form of refunds from the plans or reductions in future
contributions to the plans.
Defined Contribution plans
A defined contribution plan is a post-employment
benefit plan under which the Company pays specified
contributions for provident fund as per the provisions of
the Provident Fund Act, 1952 to the government. The
Company's contribution is recognised as an expense in
the Statement of Profit and Loss during the period in which
the employee renders the related service. The Company's
obligation is limited to the amounts contributed by it.
Other long-term employee benefit obligations -
Compensated Absences
The Company provides for the encashment of leave or
leave with pay subject to certain rules. The employees are
entitled to accumulate leave subject to certain limits, for
future encashment. The liability is provided based on the
number of days of unutilised leave at each balance sheet
date on the basis of an independent actuarial valuation.
1.21 Earnings Per Share (EPS)
Basic earnings per share are calculated by dividing the net
profit or loss for the period attributable to equity shareholders
(after deducting preference dividends, if any, and attributable
taxes) by the weighted average number of equities shares
outstanding during the period.
For the purpose of calculating diluted earnings per share,
the net profit or loss for the period attributable to equity
shareholders and the weighted average number of shares
outstanding during the period are adjusted for the effects of all
dilutive potential equity shares.
1.22 Exceptional items
Exceptional items refer to items of income or expense within
the statement of profit and loss from ordinary activities which
are non-recurring and are of such size, nature or incidence that
their separate disclosure is considered necessary to explain
the performance of the Company.
(ii) The Department of Telecommunications, Ministry of Communications, Government of India ("DoT") has raised demand of '
9,754.15 Million on the Company consisting of Principal amount of ' 2,286.50 Million (as of July 31, 2020) and related interest,
penalty and interest on penalty of ' 7,467.65 Million towards license fee by including the revenue generated from its cable
television business.
These demands are mainly based on Hon'ble Supreme Court's Judgement in the matter of Union of India v/s AUSPI & Ors.
bearing C.A. Nos.6328 - 6399 on AGR dues from telecom operators ("AGR Judgment"). Subsequently, vide order dated June
11 and June 18, 2020, the Supreme Court clarified that the AGR judgement pertaining to telecom companies could not have
been basis for raising demands in the non-telecom PSUs and accordingly DoT withdrew the demands on the non-telecom
PSUs. The Company, in line with the observations made by the Supreme Court has made representations to DoT against said
demands, which DoT has taken on record.
Also, All India Digital Cable Federation (AIDCF) for all its member companies had filed an intervention petition in TDSAT in the
matter of Asianet Satellite Communications Private Limited versus Union of India bearing TP No. 54 of 2020 challenging the
demands raised on such member companies (the Company being a member too) by including its non-licensed income for
computation of license fees. Further, the Ministry of Information & Broadcasting has in February 2021 written to DoT (along with
the representation of AIDCF) that it grants permission to Multi System Operators ("MSOs") for cable tv operations and does not
levy any license fee on the revenue, and hence the revenues earned by MSOs from cable tv business may not be clubbed with
the revenue earned by them under Internet Service Provider's license.
With effect from October 01, 2021,definition of AGR has been amended and Applicable Gross Revenue (ApGR) was introduced
which was starting point for arriving AGR. ApGR specifically excludes revenue from activities under a license / permission issued
by MIB. Further, by an order dated October 05, 2021, the TDSAT has stayed all demands of additional license fee. The interim
order is continuing and the petition is pending before the TDSAT. Additionally, TDSAT in February 2022 set aside the demands
raised by DoT in matter relating to another ISP license holder by treating them at par with some PSUs who held similar license.
The DoT has challenged the TDSAT order which is still pending. Hence, the extent and timing of outflow of funds that may be
required is dependent on the outcome of litigation.
Basis its assessment of the legal position as stated above and based on the opinion of independent legal experts, the Company
is confident that it has good grounds on merit to defend itself. Accordingly, the Company is of the view that no provision is
necessary to be made in the financial statements in relation to the demands and the same has been considered as a contingent
liability.
(iii) The matters listed in (i) and (ii) above are based on either demands received by the Company or are based on expected outflow
of economic resources estimated by management. Based on expert opinion obtained by the Company, The Company does
not expect the outcome of the above proceeding to have materially adverse effect on the functioning of the Company.
31 CLASSIFICATION OF FINANCIAL ASSETS AND LIABILITIES
The Fair value of Assets and Liabilities are not significantly different from the carrying value and Assets and Liabilities are carried at
Amortised cost.
31(a) FAIR VALUE MEASUREMENT
The fair values of the financial assets and liabilities are included at the amount at which the instrument could be exchanged in a
current transaction between willing parties, other than in a forced or liquidation sale.
The Company has established the following fair value hierarchy that categorises the values into 3 levels. The inputs to valuation
techniques used to measure fair value of financial instruments are:-
Level 1: This hierarchy uses quoted (unadjusted) prices in active markets for identical assets or liabilities.
Level 2: The fair value of financial instruments that are not traded in an active market is determined using valuation techniques which
maximise the use of observable market data and rely as little as possible on Company specific estimates. If all significant inputs
required for fair value and instruments are observable, then the instruments are included in Level-2.
Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is included in Level 3.
The Company's principal financial liabilities comprises of borrowings, trade payable, lease liabilities and other payable. The main
purpose of these financial liabilities is to finance the Company's operations. The Company's principal financial assets includes trade
and other receivables, investments, cash and cash equivalents and other assets that derive directly from operations.
The Company's activities expose it to market risk, liquidity risk and credit risk. Company's overall risk management focuses on the
unpredictability of financial markets and seeks to minimise potential adverse effects on the financial performance of the Company.
(A) Market Risk
Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market
prices. Market risk comprises three types of risk: interest rate risk, currency risk and other price risk.
(a) Interest rate risk
Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market
interest rates. The Company constantly monitors the credit markets and rebalances its financing strategies to achieve optimal
maturity profile and financing cost.
(B) Credit Risk
Credit risk is the risk that a customer or counterparty to a financial instrument fails to perform or pay the amounts due causing financial
loss to the Company. Credit risk arises from Company's activities in investments and outstanding receivables from customers.
The Company has a prudent and conservative process for managing its credit risk arising in the course of its business activities.
Credit risk arising from the investments in the nature of Fixed Deposits is actively managed through investment in top rated Banks.
Trade Receivables
Customer credit risk is managed by the Company's established policy, procedures and control relating to customer credit risk
management. Trade receivables are non-interest bearing. Outstanding customers receivables are regularly monitored. With respect
to the cable business, the Company has low concentration of credit risk as the customer base is widely distributed both economically
and geographically.
As per IND AS 109, Company follows the simplified approach in determining allowance for credit losses of trade receivables. However,
for receivables from certain customers , the Company considers the credit risk to be low based on historical default experience
and the nature of the counterparties. Accordingly, the ECL recognised on such balances is considered to be insignificant. This
assessment is periodically reviewed to ensure consistency with the Company's risk management policies and prevailing economic
conditions. The Company makes the provision of expected credit losses on certain trade receivables using provision matrix to
mitigate the risk of defaults of payments. Provision matrix is prepared based on historic data and the same is adjusted considering
forward looking estimates. The provision matrix followed by Company is as follows :
( C )Liquidity Risk
Liquidity Risk is the risk that Company may not be able to meet its present and future cash and collateral obligations without incurring
unacceptable losses. The Company's objective is to maintain optimum level of liquidity to meet its cash and collateral requirements.
The Company closely monitors its liquid position and deploys robust cash management system. It maintains adequate sources of
financing at an optimised cost.
The Company's objectives when managing capital are to safeguard their ability to continue as a going concern, so that they can
continue to provide returns for shareholders and benefits for other stakeholders, and maintain an optimal capital structure to reduce
the cost of capital.
Consistent with others in the industry, the Company monitors capital on the basis of the following gearing ratio:
The Company has given Loan to GTPL Broadband Private Limited, its wholly owned subsidiary Company for its business activities.
The rate of Interest will be mutually decided by the Companies from time to time. The Borrower shall repay each loan together with
accrued and unpaid interest thereon earlier of the Termination date of the Agreement or the date falling within 5 days of written
demand by the Company.
At each reporting date, the Company evaluates, whether there is any indicators of credit risk on such loan resulting into expected
credit loss. For the current year, no such indicators for significant increased in credit risk have been identified and accordingly no
expected credit loss provision is required for the above loan.
The Board of Directors, at its meeting held on March 28, 2025 have approved subscription to the rights issue of 1,30,24,126
equity shares aggregating up to '1549.87 Million of GTPL Broadband Private Limited, a wholly owned subsidiary, by adjusting an
outstanding loan of '1,549.87 Million against it. Subsequent to the year end, the shares have been alloted to the Company at '119
per share. Hence, as at March 31, 2025, the application money is presented under long-term investments.
During the year, the Company entered into a loan extension agreement with GTPL Broadband Private Limited to extend the maturity
date of one tranche of its existing loan amounting to ' 736.18 Million from December 31, 2025 to December 31, 2029.
41(A) DISCLOSURE AS PER SECTION 186 OF THE COMPANIES ACT,2013
The details of loans, guarantees and investment under Section 186 of the Companies Act, 2013 read with the Companies (Meeting
of Board and its Powers)Rules, 2014 are as follows:
(i) Details of Investment made are given in Note 3.
(ii) The loan is given to GTPL Broadband Private Limited, which is a wholly owned subsidiary of the Company.
(iii) The guarantee issued in accordance with section 186 of the companies Act 2013 read with rules issued there under are given
under note 30(B).
The above investments, loans & guarantees are given for the business activities.
42 EMPLOYEE BENEFITS
Defined Contribution Plan
(a) Provident Fund : A defined contribution plan is a post-employment benefit plan under which the Company pays specified
contributions for provident fund as per the provisions of the Provident Fund Act, 1952 to the government. The Company's contribution
is recognised as an expense in the Profit and Loss Statement during the period in which the employee renders the related service.
The Company's obligation is limited to the amounts contributed by it.
Defined Benefits Plan
(a) Gratuity: The Company has a defined benefit gratuity plan. The scheme is funded with an insurance company in the form of
a qualifying insurance policy. Every employee who has completed five or more years of service is eligible for gratuity as per the
provisions of the Gratuity Act, 1972.
Risks: The Plan is defined benefit in nature which is sponsered by the Company and hence it underwrites all the risks pertaining to
the plan. Thus the Company is exposed to various risks in providing the gratuity benefit such as fall in interest rates, adverse salary
growth, change in demographic experience, change in regulations. This may result in an increase in cost of providing these benefits
to employees in future. Since the benefits are lump sum in nature, the plan is not subject to any longevity risk.
These plans typically expose the Company to actuarial risks such as: Investment Risk, Interest Risk, Longevity Risk and Salary Risk.
Investment Risk - The present value of the defined benefit plan liability is calculated using a discount rate which is determined by
reference to market yields at the end of the reporting period on government bonds.
Interest Risk - A decrease in the bond interest rate will increase the plan liability; however, this will be partially offset by an increase
in the return on the plan's debt investments.
Longevity Risk - The present value of the defined benefit plan liability is calculated by reference to the best estimate of the mortality
of plan participants both during and after their employment. An increase in the life expectancy of the plan participants will increase
the plan's liability.
Salary Risk - The present value of the defined plan liability is calculated by reference to the future salaries of plan participants. As
such, an increase in the salary of the plan participants will increase the plan's liability.
(h) Expected contribution during the next annual reporting period is ' 60.41 Million
(i) Asset Liability Matching Strategy
The Company has purchased insurance policy, which is basically a year-on-year cash accumulation plan in which the interest
rate is declared on yearly basis and is guaranteed for a period of one year. The insurance Company, as part of the policy rules,
makes payment of all gratuity outgoes happening during the year (subject to sufficiency of funds under the policy). The policy, thus,
mitigates the liquidity risk. However, being a cash accumulation plan, the duration of assets is shorter compared to the duration of
liabilities. Thus, the Company is exposed to movement in interest rate (in particular, the significant fall in interest rates, which should
result in a increase in liability without corresponding increase in the asset).
43 EXCEPTIONAL ITEMS
The Company has made an assessment of the recoverable values of certain investments made in subsidiary companies wherever
impairment indicators existed. In determining the recoverable values, the Company considered the value in use of the related
investments based on the business performance, prevailing business conditions and revised expectations of the future performance.
Based on such assessment, the Company has recognised an impairment loss of ' 37.94 Million (Previous year - ' 59.63 Million ) in
the investment made in its subsidiaries - GTPL Narmada Cyberzone Private Limited, GTPL DCPL Private Limited and GTPL Link
Network Private Limited for Current year (Previous year - GTPL DCPL Private Limited & GTPL VVC Network Private Limited). The total
recoverable amount of such CGU is ' 254.8 Million (Previous year - ' 253.89 Million) determined based on its value in use less cost
of disposal determined considering a discount rate of 15.25%. (Previous year - 15.75%).
44 EVENTS AFTER REPORTING DATE
(i) The Board of Directors have recommended dividend of ' 2 per fully paid up equity share of ' 10/- each for the financial year
ended March 31, 2025 on outstanding paid up share capital of the Company as on date, in its board meeting held on April 16,
2025, subject to approval of shareholders at ensuing Annual General Meeting of the Company.
(ii) The Board of Directors, at its meeting held on March 28, 2025 have approved subscription to the rights issue of 1,30,24,126
equity shares aggregating up to '1549.87 Million of GTPL Broadband Private Limited, a wholly owned subsidiary, by adjusting
an outstanding loan of '1,549.87 Million against it. Subsequent to the year end, the shares have been alloted to the Company
at '119 per share.
45
a) The Ministry of Corporate Affairs(MCA) has issued a notification(Companies(Accounts) Amendments Rules, 2021) which is
effective from April 01, 2023, state that every Company which uses accounting software for maintaining its books of account
shall use only such accounting software which has a feature of recording audit trail of each and every transaction, and further
creating an edit log of each change made in the books of account along with the date when such changes were made and
ensuring that the audit trail cannot be disabled.
b) The Company uses a SaaS ERP as a primary accounting software for maintaining books of account, which has a feature of
recording audit trail edit logs facility and that has been operative throughout the financial year for the transactions recorded in
the software impacting books of account at application level. The database of the software is operated by third party software
service provider hence audit trail at the database level is not applicable.
c) For subscriber management system audit trail feature was enabled and operative throughout the year for the transactions
recorded in the software impacting at the application level. The audit trail feature at database level to log any direct data
changes were configured and made operative w.e.f. March 24, 2025.
(d) Performance Obligation
Applying the practical expedient as given in Ind AS 115, the Company has not disclosed the remaining performance obligation
related disclosures for contracts as original expected duration is one year or less.
(i) The Contract liability outstanding at the beginning of the year has been recognised as revenue during the year ended on March
31, 2025.
(ii) The Company is engaged in distribution of television channels through digital cable distribution network and earns revenue
primarily in the form of subscription, activation, placement and marketing. The Company does not give significant credit period
resulting in no significant financing component.
(iii) The original contract price is re-negotiated with the customer, the impact of the same is adjusted against the revenue since the
re-negotiated price is considered as the revised contract price.
(iv) With reference to the revenue from EPC contract, as per the terms, the revenue is certain on completion of end to end
connectivity of each location. Accordingly, the Company recognises the revenue on completion of milestone with reference to
end to end connectivity of each location.
(v) The Company was appointed as sub-contractor to execute the works "Laying of Optical Fiber Cable (OFC) and its allied
infrastructure from km. 697.220 (MP-Gujarat Boarder) to km 844.800 of Delhi-Vadodara expressway and from km. 26.600 to
378.722 of Mumbai -Vadodara Express and from km. 0.000 to 79.900 of spur to JNPT on EPC mode in the state of Gujarat and
Maharashtra (Package-II)" hereinafter referred to as "The Project" on behalf of the Contractor on Sub-Contract basis. During
the year end March 31, 2025, The Company has achieved 24.18% completion of the said The Project and recognised revenue
amounting to ' 200.49 Million in year ended March 31, 2025.
49 DETAILS OF BENAMI PROPERTY HELD
The Company does not hold any benami property as defined under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988)
and the rules made thereunder. No proceeding has been initiated or pending against the Company for holding any benami property
under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and the rules made thereunder.
50 RELATIONSHIP WITH STRUCK OFF COMPANIES
During the Current year, The Company does not have any transactions with struck off Companies.
51 BORROWINGS OBTAINED ON THE BASIS OF SECURITY OF CURRENT ASSETS
As per sanctioned letter issued by Banks, the Company is required to submit Book Debts Statement (excluding debtors related to
EPC Project) on quarterly basis and Cash Flow Statement on half yearly basis to the Banks. The Book Debts (excluding debtors
related to EPC projects) are in agreement with books of accounts and there is no reconciliation items.
52 REVALUATION OF PROPERTY, PLANT AND EQUIPMENT AND INTANGIBLE ASSETS
The Company has not done revaluation of PPE / Intangible assets.
53 UTILIZATION OF BORROWED FUNDS AND SHARE PREMIUM
As on March 31, 2025 there is no unutilised amounts in respect of any issue of securities and long term borrowings from banks and
financial institutions. The borrowed funds have been utilised for the specific purpose for which the funds were raised.
54 UNDISCLOSED INCOME
The Company does not have any such transaction which is not recorded in the books of accounts that has been surrendered or
disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (Such as, search or survey or any other
relevant provisions of the Income Tax Act, 1961).
55 DETAILS OF CRYPTO CURRENCY OR VIRTUAL CURRENCY
The Company has not traded or invested in crypto currency or virtual currency during the financial year.
56 REGISTRATION OF CHARGES OR SATISFACTION WITH REGISTRAR OF COMPANIES
The Company does not have any charges or satisfaction, which is yet to be registered with ROC beyond the statutory period.
57 COMPLIANCE WITH NUMBER OF LAYERS OF COMPANIES
The Company is in compliance with the number of layers prescribed under clause (87) of section 2 of the Companies Act read with
the Companies ( Restriction on number of Layers) Rules, 2017.
58
The Company has not advanced or loaned or invested funds (either from borrowed funds or share premium or any other sources
or kind of funds) to any other person(s) or entity(ies), including foreign entities (Intermediaries), with the understanding whether
recoded 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
59
The Company have 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
For and on behalf of Board of Directors of
GTPL HATHWAY LIMITED
Ajay Singh Anirudhsinh Jadeja
Chairman Managing Director
DIN:06899567 DIN:00461390
Place : Ahmedabad Place : Ahmedabad
Saurav Banerjee Shweta Sultania
Chief Financial Officer Company Secretary
Place : Ahmedabad Place : Ahmedabad
Date : April 16, 2025
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