u) Provisions and Contingent Liabilities

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

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.

i. Asset Retirement Obligation (ARO)

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

ii. Contingent Liabilities

A Contingent Liability is disclosed where
there is a possible obligation or a present
obligation that may, but probably will not,

require an outflow of resources. Contingent
Assets are not recognised.

iii. Onerous Contract

An onerous contract is a contract under
which the unavoidable costs (i.e., the costs
that the Company cannot avoid because it
has the contract) of meeting the obligations
under the contract exceed the economic
benefits expected to be received under it. The
unavoidable costs under a contract reflect the
least net cost of exiting from the contract,
which is the lower of the cost of fulfilling it
and any compensation or penalties arising
from failure to fulfil it.

If the Company has a contract that is onerous,
the present obligation under the contract
is recognised and measured as a provision.
However, before a separate provision for
an onerous contract is established, the
Company recognises any impairment loss
that has occurred on assets dedicated to
that contract.

v) Business Combinations

Business Combinations are accounted for using Ind
AS 103 ‘Business Combination'. Acquisitions of
businesses are accounted for using the acquisition
method unless the transaction is between entities
under common control.

Business Combinations arising from transfer
of interests in entities that are under common
control, are accounted using pooling of interest
method wherein, assets and liabilities of the
combining entities are reflected at their carrying
value. No adjustment is made to reflect fair values,
or recognize any new assets or liabilities other
than those required to harmonise accounting
policies. The identity of the reserves is preserved
and appears in the financial statements of the
transferee in the same form in which they appeared
in the financial statements of the transferor.

w) Segment Information

The Chief Operating Decision maker primarily
focusses on Mobility business in making decisions

on operating matters and on allocating resources
in evaluating performance. Accordingly, the
Company operates only in one reportable segment

i.e. Mobility and hence no separate disclosure is
required for Segment.

x) Recent pronouncements

Ministry of Corporate Affairs (“MCA") notifies
new standards or amendments to the existing
standards under Companies (India Accounting
Standards) Rules as issued from time to time.
During the year ended March 31, 2025, MCA has
notified Ind AS-117 Insurance Contracts (vide
notification no G.S.R 492(E)) and amendments
to Ind AS 116- Leases, relating to sale and
leaseback transactions (vide notification no G.S.R
554(E)), applicable to the Company on or after
April 1, 2024,

The Company has reviewed the new pronouncements
and based on its evaluation has determined that it
does not have any material impact on the Financial
Statements of the Company.

7. USE OF ESTIMATES, ASSUMPTIONS AND
JUDGEMENTS

The preparation of the financial statements requires
management to make judgements, estimates and
assumptions that affect the reported amounts of
revenues, expenses, assets and liabilities, and the
accompanying disclosures including the disclosure
of contingent liabilities. Uncertainty about these
assumptions and estimates could result in outcomes
that require an adjustment to the carrying amount
of assets or liabilities in future periods. Difference
between actual results and estimates are recognised
in the periods in which the results are known /
materialise.

The Company has based its assumptions and
estimates on parameters available when the financial
statements were prepared. Existing circumstances and
assumptions about future developments, however,
may change due to market changes or circumstances
arising that are beyond the control of the Company.
Such changes are reflected in the assumptions when
they occur.

Estimates and Assumptions

i. Taxes

The company provide for tax considering the
applicable tax regulations and based on reasonable
estimates. Management periodically evaluates
positions taken in the tax returns giving due
considerations to tax laws and establishes
provisions in the event if required as a result of
differing interpretation or due to retrospective
amendments, if any.

Deferred tax asset (DTA) is recognized only when
and to the extent there is convincing evidence that
the company will have sufficient taxable profits in
future against which such assets can be utilized.
Significant management judgement is required to
determine the amount of deferred tax assets that
can be recognised, based upon the likely timing
and the level of future taxable profits together with
future tax planning strategies, recent business
performance and developments.

Minimum alternative tax (MAT) is recognized as
an asset only when and to the extent there is
convincing evidence that the Company will pay
normal income tax and will be able to utilize such
credit during the specified period. In the year in
which the MAT credit becomes eligible to be
recognized as an asset, the said asset is created
by way of a credit to the Statement of Profit and
loss and is included in Deferred Tax Assets. The
Company review the same at each Balance Sheet
date and if required, writes down the carrying
amount of MAT credit entitlement to the extent
there is no longer convincing evidence to the effect
that Company will be able to absorb such credit
during the specified period. Further details about
taxes refer note 55 and 56.

ii. Defined benefit plans (gratuity and
compensated absences benefits)

The Company's obligation on account of gratuity
and compensated absences is determined based
on actuarial valuations. An actuarial valuation
involves making various assumptions that may
differ from actual developments in the future.
These include the determination of the discount
rate, future salary increases, attrition rate and

mortality rates. Due to the complexities involved
in the valuation and its long-term nature, these
liabilities are highly sensitive to changes in these
assumptions.

All assumptions are reviewed at each reporting
date. The parameter subject to frequent changes
is the discount rate. In determining the appropriate
discount rate, the management considers the
interest rates of government bonds in currencies
consistent with the currencies of the post¬
employment benefit obligation.

The mortality rate is based on publicly available
mortality tables in India. Those mortality tables
tend to change only at interval in response to
demographic changes. Future salary increases are
based on expected future inflation rates.

Further details about gratuity obligations are given
in note 53 (A).

iii. Allowance for Trade receivable

For the purpose of measuring the expected credit
loss for trade receivables, the Company estimates
irrecoverable amounts based on the ageing of
the receivable balances and historical experience.
Further, a large number of minor receivables are
grouped into homogeneous groups and assessed
for impairment collectively depending on their
significance. Individual trade receivables are
written off when management deems them not
to be collectible on assessment of facts and
circumstances. Refer note 15.

iv. Useful life of Property, Plant and Equipment
and Intangible assets

The useful life to depreciate or amortise
property, plant and equipment and Intangible
assets respectively is based on technical
obsolescence, nature of assets, estimated usage
of the assets, operating conditions of the asset,
and manufacturers' warranties, maintenance
and support period, etc. The charge for the
depreciation or amortisation is derived after
considering the expected residual value at end
of the useful life.

The residual values, useful lives and methods of
depreciation or amortisation of property, plant and

equipment and Intangible assets respectively are
reviewed by the management at each financial year
end and adjusted prospectively over the remaining
useful life.

v. Leases - Estimating the incremental
borrowing rate

The Company cannot readily determine the interest
rate implicit in the lease, therefore, it uses its
incremental borrowing rate (IBR) to measure lease
liabilities. The IBR is the rate of interest that the
Company would have to pay to borrow over a
similar term, and with a similar security, the funds
necessary to obtain an asset of a similar value
to the right-of-use asset in a similar economic
environment. The Company estimates the IBR
using observable inputs (such as market interest
rates) when available and is required to make
certain specific estimates such as Company's
credit rating.

vi. Leases-Estimate of lease period

Ind AS 116 requires lessees to determine the
lease term as the non-cancellable period of a lease
adjusted with any option to extend or terminate
the lease, if the use of such option is reasonably
certain. The Company makes an assessment on
the expected lease term on a lease-by-lease basis
and thereby assesses whether it is reasonably
certain that any options to extend or terminate
the contract will be exercised.

vii. Provisions and Contingent Liabilities

Provisions and contingent liabilities are reviewed
at each balance sheet date and adjusted to
reflect the current best estimates. Evaluations
of uncertain provisions and contingent liabilities
and assets requires judgement and assumptions
regarding the probability of realization and the
timing and amount, or range of amounts, that may
ultimately be incurred. Such estimates may vary
from the ultimate outcome as a result of differing
interpretations of laws and facts. Refer note 46
for details about Contingent liabilities.

NOTE 44: SIGNIFICANT TRANSACTIONS / NEW DEVELOPMENTS

i) On July 23, 2018, the Company had paid an amount of ' 39,263 Mn under protest for the differential amount of entry fees paid and
market determined price of 4.4 Mhz, as demanded by the DoT. The Company had thereafter filed a petition with TDSAT disputing
' 13,636 Mn as excess amount calculated by the DoT. Based on probability assessment of ultimate outflow, the Company had
capitalised ' 39,263 Mn, paid under protest, along with the respective spectrum of the circles and amortised substantially over
the balance life of the respective spectrum.

During the previous year, the DoT accepted the Company’s contention to the extent of ' 7,555 Mn resulting in TDSAT issuing
order dated December 15, 2023, directing the DoT to adjust this amount. The DoT vide letter dated December 27, 2023 has
communicated such adjustment. Accordingly, the Company has recognised the same as an Exceptional Items in the Statement
of Profit and loss in financial year 2023-24.

ii) On October 16, 2023, the Honourable Supreme Court of India pronounced a judgement, on an ongoing litigation, regarding the
tax treatment of annual Revenue Share License Fee (RSLF) paid to the DoT since July 1999 and held that it merits the same tax
treatment as the upfront fee that is paid at the time of acquisition of a telecom license. The Company has been treating RSLF as
revenue expenses for the purpose of taxation. This decision does not result in a permanent disallowance but leads to a staggered
allowance of RSLF over the balance period of the license resulting into lower taxable deduction in the initial years of a license and
a higher deduction in the later period of the license.

Over the years, the Company has acquired various licenses from the DoT and also acquired companies having telecom licenses
and merged these entities into the Company resulting in cancellation of licenses pertaining to those entities on merger. During
previous year, based on initial evaluation and after considering the allowable deductions for the periods and on a best estimate basis,
a tax provision of ' 8,220 Mn and interest of ' 2,630 Mn has been recorded under “Current tax” and “Finance costs” respectively,
and corresponding effect has been recorded as Current tax liability of ' 5,217 Mn and adjusted ' 5,633 Mn in Other Non-Current
Assets in the financial statements in financial year 2023-24. Due to tax losses carried forward, higher deductions in future periods
do not meet the criteria for the recognition of deferred tax assets under Ind AS 12 - Income Taxes. During the current year, on
May 17, 2024 the Honourable Supreme Court of India pronounced a further judgement in this regard waiving applicable interest.
Based on this judgement, the Company has reversed the accrued interest charge of ' 2,630 Mn under finance cost.

iii) The Board of Directors of the Company at its meeting held on January 31, 2023 has re-approved issuance of upto 16,000
optionally convertible, unsecured, unrated and unlisted Indian Rupee denominated debentures (OCDs) having a face value of
' 1,000,000 each, in one or more tranches, aggregating upto ' 16,000 Mn, each convertible into 100,000 equity shares of face
value of ' 10/- each at a conversion price of ' 10/- to ATC Telecom Infrastructure Private Limited (‘ATC’), a non-promoter of the
Company, on a preferential basis. On March 18, 2024, in accordance with the terms of the OCDs, ATC requested the Company for
conversion of 14,400 OCDs into 1,440,000,000 fully paid-up Equity Shares and accordingly, on March 23, 2024, the Company
allotted 1,440,000,000 equity shares of face value of ' 10/- each at an issue price of ' 10/- per equity share to ATC.

During the current year, on July 11, 2024, ATC requested the Company for conversion of balance 1,600 OCDs into 160,000,000
fully paid-up Equity Shares and accordingly, on July 12, 2024, the Company allotted 160,000,000 equity shares of face value of
' 10/- each at an issue price of ' 10/- per equity share to ATC. All the outstanding OCDs stand converted into equity shares.

iv) Further Public Offer (FPO)

On April 23, 2024 the Company has allotted 16,363,636,363 equity shares of ' 10 each at an issue price of ' 11 (including a
premium of Re. 1.00 per equity share) aggregating to ' 180,000 Mn by way of FPO. The issue proceeds have been utilised in
accordance with the issue object(s) stated in offer document.

v) Preferential issue

a) On May 21, 2024, the Company has allotted 1,395,427,034 equity shares of ' 10 each at an issue price of ' 14.87 (including
a premium of ' 4.87 per equity share) aggregating to ' 20,750 Mn on a preferential basis to an existing shareholder entity
forming part of the promoter group.

b) On July 18, 2024, and July 19, 2024, the Company has allotted 1,027,027,024 equity shares to Nokia Solutions and Networks
India Private Limited and 633,783,780 equity shares to Ericsson India Private Limited of face value of ' 10 each at an issue
price of '14.80 (including a premium of ' 4.80 per equity share) aggregating to ' 24,580 Mn on a preferential basis.

c) On January 9, 2025, the company has allotted 1,693,218,361 equity shares of face value of ' 10/- each at an issue price of
' 11.28 (including a premium of ' 1.28 per equity share) aggregating to ' 19,100 Mn on a preferential basis to an existing
shareholder entity forming part of the promoter group.

All the above preferential issue proceeds have been utilised in accordance with the issue object(s) as stated in respective offer
document.

vi) The DoT conducted auctions for various spectrum bands which got concluded on June 26, 2024. The Company successfully bid for
50 MHz of spectrum (900 MHz, 1800 MHz and 2500 MHz) in 11 circles at a total cost of ' 34,967 Mn. The validity of the spectrum
is for a period of 20 years starting from the effective date as per the Frequency Assignment Letter for Respective Service Areas.
The Company has made the upfront payment of ' 3,315 Mn and based on the available payment options, the Company has opted
for the deferred payment option for balance amount. The Company has capitalised the cost under “Intangible Assets”.

vii) The Implementation Agreement (IA) entered between the parties defines a settlement mechanism between the Company and the
promoters of erstwhile Vodafone India Limited (“VInL”) for any cash inflow/outflow that could possibly arise to/by the Company
towards settlement of certain outstanding disputes pertaining to the period until May 31, 2018. Based on the AGR judgement
from Hon’ble SC in October 2019, the Company had recognised a receivable of ' 83,694 Mn, being the cap under the IA, as the
AGR liability which was contingent at the time of the merger, got crystalized following this judgement.

Basis the discharge of AGR liability by the Company until March 2020, VInL promotors had paid ' 19,750 Mn as per the IA in
April 2020 and hence, the net settlement amount receivable by VIL was reduced to ' 63,939 Mn. The settlement of such assets
recognized was to happen periodically based on outflow towards AGR dues, as defined in the Implementation Agreement for the
period June 2020 to June 2025 (Settlement period).

Under the IA, the Company can claim the amounts should it discharge part of the AGR dues by 30th June 2025. However,
considering the moratorium by GoI, these amounts have not been paid by the Company. Subsequent to the balance sheet date,
the parties have agreed to extend the settlement date from June 30, 2025 to September 30, 2025. The Company believes that
it will be able to realise this asset.

viii) One Time Spectrum Charges (Beyond 4.4 MHz):

During the financial year 2012-13, the DoT had issued demand notices towards one time spectrum charges (hereinafter referred to
as “OTSC”). The demands on the Company i.e. formerly Idea Cellular Limited have been challenged by way of writ petition before
the Bombay High Court (BHC). The erstwhile Vodafone India Limited (VInL) and erstwhile Vodafone Mobile Services Limited (VMSL)
had challenged the demands before the TDSAT. The grounds taken before BHC and TDSAT were different though.

On July 4, 2019 TDSAT in its judgement quashed the demands levied on erstwhile VInL and VMSL and inter alia held that:

- For spectrum up to 6.2 MHz, OTSC is not chargeable and accordingly demand set aside.

- For spectrum beyond 6.2 MHz,

• Allotment after July 1, 2008, OTSC shall be levied from the date of allotment of such spectrum.

• Allotment before July 1, 2008, OTSC shall be levied from January 1, 2013 till the date of expiry of license.

• Conditions as stated in para 1 (v) of the impugned order dated December 28, 2012 (given hereunder) is arbitrary and
illegal and is accordingly set aside, i.e. Upfront charges in the case of spectrum holding in multiple bands (900 MHz and
1800 MHz), spectrum in 1800 MHz band will be accounted for first, towards the limit of 4.4 MHz was held to be arbitrary
and illegal and accordingly set aside.

Thereafter the Company filed an appeal before the Honourable Supreme Court against the TDSAT judgement. On March 16, 2020,
Honourable Supreme Court dismissed the petition filed by the Company challenging the levy of OTSC beyond 6.2 MHz. Following
the dismissal of the Company’s appeal by the Honourable Supreme Court on March 16, 2020, the Company is yet to receive any
demand from the DoT in line with the TDSAT order. The DoT preferred an appeal against the entire TDSAT judgement and sought

stay on the impugned judgement. The matter is pending before the Honourable Supreme Court. The Company proceedings before
the BHC in respect of Idea Cellular Limited is under adjudication.

The Company, on prudence basis, has recognized a charge for spectrum holding beyond 6.2 MHz in line with the TDSAT order. The
amount has been calculated basis the demand computation that was raised by the DoT in July 2018 for Bank Guarantees to be
given for OTSC in line with the M&A guidelines at the time of merger. Accordingly, the Company has recognised interest cost of '
10,403 Mn (March 31, 2024: ' 8,961 Mn) in the Statement of Profit and loss. Accordingly, the Company has disclosed an accrual
towards One Time Spectrum Charges of ' 75,813 Mn (March 31, 2024: ' 65,410 Mn) under Other current financial liabilities.

ix) On March 28, 2023, the Company has entered into a term sheet with a prospective buyer for assignment of certain leasehold
rights of land. Accordingly, the Company has reclassified such leasehold land from RoU assets to Assets held for sale (AHFS) in
FY 2023. The sale transaction has been completed during the current financial year.

NOTE 45: CAPITAL AND OTHER COMMITMENTS

Estimated amount of commitments are as follows:

• Contracts remaining to be executed for capital expenditure (net of advances) and not provided for are ' 31,511 Mn (March 31,
2024: ' 23,361 Mn).

• Long term contracts remaining to be executed including early termination commitments (if any) are ' 19,057 Mn (March 31, 2024:
' 17,219 Mn).

NOTE 46: CONTINGENT LIABILITIES NOT PROVIDED FOR

A) Licensing Disputes:

i. OTSC (Less than 4.4 MHz) - ' 38,570 Mn (March 31, 2024: ' 38,570 Mn):

In FY 2015-16 erstwhile VMSL received demands from DoT towards One time spectrum charges for less than 4.4 MHz
pursuant to the transfer of licenses of certain subsidiaries amounting to ' 33,495 Mn. The Company believes the charges
levied by DoT are not tenable, since the merger guidelines are not applicable considering that the said merger did not involve
any intra-circle merger and did not result in increase in spectrum holding of the Company. The Demand is challenged and
remains sub-judice at TDSAT.

Further, erstwhile VMSL received demand from DoT towards extension of license of Tamil Nadu circle for making it co-terminus
with license of Chennai circle amounting to ' 5,075 Mn. The Company believes the charges levied by DoT are not tenable,
considering the merger of licenses is as per the guidelines issued by DoT in 2005 and as such does not get covered under as
per clause 3 (i) and (m) of the M&A guidelines dated February 20, 2014. The Demand is challenged and remains sub-judice
at TDSAT.

ii. Other Licensing Disputes - ' 105,800 Mn (March 31, 2024: ' 97,805 Mn):

a) In December 2016, the Company had challenged the TRAI recommendation of levying penalty for allegedly denying
points of interconnect (PoIs) to Reliance Jio, citing Telecom Regulatory Authority of India’s (TRAI) move “arbitrary and
biased” and one which exceeds the sectorial watchdog jurisdiction. The Honourable Delhi High Court suggested that
DoT could consider objections raised by VIL in its plea along with the TRAI recommendations.

On September 29, 2021, DoT had issued demand notice for imposition of financial penalty amounting to ' 20,000 Mn for
violation of the provisions of license agreements and standards of Quality of service of basic telephone service (wireline)
and SMTS regulation 2009. On October 11,2021, The Company had filed petition with Hon’ble TDSAT challenging the
demand raised by DoT. In the recent hearing, interim relief has been granted stating no coercive action shall be taken
for realisation of penalty under challenge. The matter is pending adjudication.

b) Additional demands towards AGR dues till FY 2018-19 (mainly including amounts for the period till FY 16-17 not forming
part of the affidavit submitted by the DoT to SC) which are subject to correction/revision on account of disposal of
representations and any other outcome of litigations as finally determined by December 31, 2025 (refer note 3).

c) Disputes relating to alleged non-compliance of licensing conditions & other disputes with DoT (including those towards
CAF Audit and EMF), either filed by or against the Company or pending before Hon’ble Supreme Court / TDSAT. The
matter is pending with Term-cell (DoT).

d) Demands on account of alleged violations in license conditions relating to amalgamation of erstwhile Spice Communications
Limited currently sub-judice before the Hon’ble TDSAT. The matter is pending adjudication.

e) Demand with respect to upfront spectrum amounts for continuation of services from February 2, 2012 till various dates
in the service areas where the licenses were quashed following the Hon’ble Supreme Court Order. The matter is pending
adjudication.

In October 2015, DoT issued guidelines, wherein Microwave Spectrum held by expired /expiring licenses was declared as being
held on a provisional basis subject to final outcome of DoT’s decision on recommendation by TRAI on the allocation and pricing
of Microwave Spectrum. The guidelines issued by DoT are not in line with the understanding provided during the earlier auctions
as part of Notice Inviting Application (NIA) for the spectrum auction. Basis the guidelines, DoT has instructed the Company to
provide an undertaking that the pricing and allocation decisions of DoT would be considered final in this respect. The Company
has not provided the said undertaking or signed the agreement being against the express and binding confirmations under NIA.
Further TDSAT vide its order dated March 13, 2019 set aside the Impugned guidelines and stated 2006 rates hold to be valid,
which should be applied from future date as and when notified by DoT as per the judgment. Both DoT and Company challenged the
TDSAT judgement dated March 13, 2019 before the Supreme Court. The Honorable Supreme Court vide its order dated November
8, 2019 stayed the TDSAT judgement and directed the Company to furnish bank guarantee till the next date of hearing. The matter
was last listed on March 01, 2024 where Supreme Court admitted the appeals, pending adjudication, the impact of the said order
is not considered in these Financial Statements.

i. Income Tax Matters (including Tax deducted at source)

- Appeals filed by the Group against the demands raised by the Income Tax. Authorities relates to disputes on not
allowing full deduction under section 80IA due to other income on account of rent, interest and other similar income
and determination of initial assessment year.

ii. Sales Tax and Entertainment Tax

- Sales Tax demands mainly relates to the demands raised by the VAT/Sales Tax authorities of few states on SIM cards
etc. on which the Company has already paid Service Tax.

- Demand of tax for non-submission of Declaration forms viz. C forms & F forms in stipulated time limit.

- In one state entertainment tax is being demanded on revenue from value added services.

iii. Service Tax/ Goods and Service Tax (GST)

Service Tax / GST demands mainly relates to the following matters:

- Disallowance of Cenvat Credit on input services viewed as ineligible credit.

- Demand of service tax on SMS termination charges.

- Demand of service tax on reversal of input credit on various matters.

- Disallowance of carry forward of transitional credit on cesses, disallowances of input tax credit on ineligible items.

- Demand of GST on revenue difference between returns and Financial Statements.

During the year, Honourable Supreme court ruled in favour of telecom companies, granting them the right to claim tax credits
on duties and taxes paid for infrastructure components like tower parts and green shelters and installation thereof, resulting
in reduction of the contingent liability mainly with respect to this matter.

iv. Entry Tax and Customs

- Entry Tax disputes pertains to classification / valuation of goods.

- Demand of customs duty/anti-dumping duty on dispute relating to classification issue. The Company has challenged
these demands which are pending at various forums.

v. Other claims not acknowledged as debts

- Mainly include consumer forum cases, disputed matters with local Municipal Corporation, Regional Provident Fund
Commission and other miscellaneous sub-judiced disputes.

- Disputes with the Electricity Boards on matters relating classification of Mobility Towers into Industrial v/s commercial.

The future cash outflows in respect of the above matters are determinable only on receipt of judgments/ decisions from
such forums/ authorities. Further, based on the Company’s evaluation, it believes that it is not probable that the claims will
materialise and therefore, no provision has been recognised for the above.

NOTE 52: SHARE BASED PAYMENTS

Employee stock option plan - options granted by Vodafone Idea Limited

The Company has granted stock options and restricted stock units (RSU’s) under ESOS 2013 to the eligible employees of the Company
and its subsidiaries (“Group”) from time to time. These options, subject to fulfilment of vesting conditions, would vest in 4 equal annual
instalments after one year of the grant and the RSU’s will vest after 3 years from the date of grant. The maximum period for exercise
of options and RSU’s is 5 years from the date of vesting. Each option and RSU when exercised would be converted into one fully paid-
up equity share of ' 10 each of the Company. The options and options RSUs granted under the ESOS 2013 scheme carry no rights to
dividends and no voting rights till the date of exercise.

The fair value of the share options is estimated at the grant date using Black and Scholes Model, taking into account the terms and
conditions upon which the share options were granted.

There were no modifications to the options/RSU’s during the year ended March 31, 2025 and March 31, 2024. During the year,
certain unvested options were cancelled on non-fulfilment of certain vesting conditions under ESOS 2013. In the current year, ' 2 Mn
(March 31, 2024: ' 4 Mn) is adjusted against Retained earnings in respect of cancellation/expiration of vested stock option.

NOTE 53: EMPLOYEE BENEFITS
A. Defined Benefit Plan (Gratuity)

General description and benefits of the plan

The Company operates a defined benefit final salary gratuity plan through a trust. The gratuity benefits payable to the employees
are based on the employee’s service and last drawn salary at the time of leaving. The benefit is payable on termination of service
or retirement, whichever is earlier. The employees do not contribute towards this plan and the full cost of providing these benefits
are borne by the Company.

Regulatory framework, funding arrangement and governance of the Plan

The gratuity plan is governed by the Payment of Gratuity Act, 1972 (Gratuity Act). The trustees of the gratuity fund have a fiduciary
responsibility to act according to the provisions of the trust deed and rules. Since the fund is income tax approved, the Company
and the trustees have to ensure that they are at all times fully compliant with the relevant provisions of the income tax act and
rules. The Company is bound to pay the statutory minimum gratuity as prescribed under Gratuity Act. There are no minimum
funding requirements for a gratuity plan in India. The Company’s philosophy is to fund the benefits based on its own liquidity and
tax position as well as level of underfunding of the plan vis-a-vis settlements. The trustees of the trust are responsible for the
overall governance of the plan. The trustees of the plan have outsourced the investment management of the fund to insurance
companies which in turn manage these funds as per the mandate provided to them by the trustees and applicable insurance and
other regulations.

Inherent risks

The plan is of a final salary defined benefit in nature which is funded by the Company and hence it underwrites all the risks pertaining
to the plan. In particular, there is a risk for the Company that any significant change in salary growth or demographic experience or
inadequate returns on underlying plan assets can result in an increase in cost of providing these benefits to employees in future.

The following tables summarizes the components of net benefit expense recognized in the Statement of Profit and Loss and the
funded status and amounts recognized in the Balance Sheet for gratuity:

(Figures in bracket are as at March 31, 2024)

⁽¹⁾ Includes rental expenses pertaining to Indus Towers Limited. However, the same has been accounted for, in accordance with
IND AS 116 in these financial statements.

⁽²⁾ Remuneration includes amounts towards LTIP and ESOP basis actual payment/exercise.

* Numbers are below one million under the rounding off convention adopted by the Company and accordingly not reported.
Note:

(i) Above excludes any cash inflow/outflow that could possibly arise from the settlement of certain outstanding disputes pertaining to
the period until May 31, 2018 pursuant to the implementation agreement entered between the Company and VInL shareholders.
The Company has recognized settlement assets (net) amounting to ' 63,939 Mn as at March 31, 2025 (March 31, 2024 :
' 63,939 Mn) (refer note 44(vii)).

(ii) Guarantees given by bankers to third party on behalf of the Company, counter guaranteed by the VITIL of ' 19,350 Mn (March 31,
2024: ' 39,350 Mn), is availed by the Company.

(iii) With respect to options that have already exercised there is an outstanding liability of ' 1,296 Mn payable to entities having
significant influence (March 31, 2024: ' 1,232 Mn).

C) Valuation Technique used to determine fair value:

Investments traded in active markets are determined by reference to quotes from the financial institutions; for example: Net asset
value (NAV) for investments in mutual funds declared by mutual fund house.

The fair value of the financial assets and liabilities is included at the amount at which the instrument could be exchanged in a
current transaction between knowledgeable and willing parties, other than in a forced or liquidation sale. The valuation techniques
used to determine the fair values of financial assets and financial liabilities classified as level 2 include use of quoted market prices
or dealer quotes for similar instruments and generally accepted pricing models based on a discounted cash flow analysis using
rates currently available for debt on similar terms, credit risk and remaining maturities.

NOTE 61: FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES

The Company’s principal financial liabilities comprise of borrowings, lease liabilities, trade and other payables. The main purpose of
these financial liabilities is to finance and support the Company’s operations. The Company’s principal financial assets comprise of
current investments, cash and bank balance, trade and other receivables. The Company also enters into derivative transactions such
as foreign forward exchange contracts as a part of Company’s financial risk management policies. It is the Company’s policy that no
trading in derivatives for speculative purposes may be undertaken.

The Company is exposed to various financial risks such as market risk, credit risk and liquidity risk. The Company’s senior management
comprising of a team of qualified finance professionals with appropriate skills and experience oversees management of these risks and
provides assurance to the management that financial risks are identified, measured and managed in accordance with the Company’s
policies and risk objectives. All derivative activity for risk management purposes are carried by specialist team having appropriate skills
and experience. The risks and measures to mitigate such risks is reviewed by the committee of Board of Directors periodically.

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. Financial instruments affected by market
risk include borrowings, bank deposits, current investments and derivative financial instruments.

The sensitivity of the relevant profit or loss item reflects the effect of the assumed changes in respective market risks, factors based
on the financial assets and financial liabilities held at March 31, 2025 and March 31, 2024.

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’s exposure to the risk of changes in market interest rates relates primarily to the Company’s
long-term borrowing with floating interest rates.

The Company manages its interest rate risk by having a balanced portfolio of fixed and floating rate loans from banks & others. As
at March 31, 2025, approximately 98.76% of the Company’s borrowings are at a fixed rate of interest (March 31, 2024: 98.06% ).

Interest rate sensitivity

The following table demonstrates the sensitivity to a reasonably possible change in interest rates on the portion of loans and
borrowings affected, after taking hedge accounting into account. With all other variables held constant, the Company’s profit/
(loss) before tax is impacted through floating rate borrowings, as follows:

The assumed movement in basis points for the interest rate sensitivity analysis is based on the currently observable market
environment.

b) Foreign currency risk

Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate because of changes in foreign
exchange rates. The Company’s exposure to the risk of changes in foreign exchange rates relates primarily to the Company’s
operating activities (when revenue or expense is denominated in a foreign currency), payables for capital expenditure denominated
in foreign currency.

The Company’s foreign currency risks are identified, measured and managed at periodic intervals in accordance with the Company’s
policies.

When a derivative contract is entered into for the purpose of hedging any foreign currency exposure, the Company negotiates the
terms of those derivatives contracts to match the terms of the hedged exposure. The Company has major foreign currency risk in
USD, EURO and GBP.

The Company has not hedged its foreign currency trade payables and other financial liabilities in USD, EURO and GBP.

Foreign currency sensitivity

The following tables demonstrate the sensitivity to a reasonably possible change in foreign currency rates, with all other variables
held constant. The impact on the Company’s profit/(loss) before tax is due to changes in the fair value of monetary assets and
liabilities including non-designated foreign currency derivatives. The Company’s exposure to foreign currency changes for all other
currencies other than USD, EURO and GBP is not material.

c) Price risk

The Company invests its surplus funds in various debt mutual funds. These comprise of mainly liquid schemes of mutual funds
(overnight liquid investments).

Mutual fund investments are susceptible to market price risk, mainly arising from changes in the interest rates or market yields
which may impact the return and value of such investments. However due to the very short tenor of the underlying portfolio in the
liquid schemes, these do not pose any significant price risk.

d) 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 and other receivables) and from
its financing activities, including deposits with banks, foreign exchange transactions and other financial instruments.

- Trade receivables

Customer credit risk is managed in accordance with the Company’s established policy, procedures and controls relating to
customer credit risk management. Trade receivables are non-interest bearing and are generally on 15 to 30 days’ credit terms.
Outstanding customer receivables are regularly monitored.

The Company follows a ‘simplified approach’ (i.e. based on lifetime Expected credit losses (ECL)) for recognition of impairment
loss allowance on Trade receivables. A large number of minor receivables are grouped into homogeneous groups and assessed
for impairment collectively. For the purpose of measuring lifetime ECL allowance for trade receivables, the Company estimates
irrecoverable amounts based on the ageing of the receivable balances and historical experience. The Company, based on
past trends, recognizes allowance for trade receivables: a) for retail subscribers (net of security deposit) remaining unpaid

beyond 90/120 days from date of billing and b) for other trade receivables on account of Interconnect, Roaming, Fixed line
Voice and data service etc. remaining unpaid beyond 180/365 days. Further, allowance is also recognised for cases indicating
any specific trail of credit loss within the ageing brackets mentioned above. Individual trade receivables are written off when
management deems them not to be collectible. Any subsequent recovery is recognized as Income in the Statement of Profit
and Loss. Refer Note 15 for the carrying amount of credit exposure as on the Balance Sheet date.

- Other financial assets and cash deposits

Credit risk from balances with banks is managed by the Company’s treasury department. Investments of surplus funds are
made only with approved counterparties and within credit limits assigned to each counter party. Counterparty credit limits
are reviewed by the Company’s Treasury Department periodically, and may be updated throughout the year. The limits are
intended 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 as at March 31, 2025 and March 31,
2024 on its carrying amounts as disclosed in notes 11, 14, 15, 16, 17, 18 and 19 except for derivative financial instruments.
The Company’s maximum exposure relating to financial derivative instrument is noted in liquidity table below note 61 (e).

e) Liquidity risk

Liquidity risk is the risk that the 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, at all times maintain optimum levels of liquidity to meet its cash
and collateral requirements. The Company monitors its risk of a shortage of funds using a liquidity planning tool.

The Company’s objective is to maintain a balance between continuity of funding and flexibility through the use of bank overdrafts,
bank loans. As at March 31, 2025, approximately 6.58% of the Company’s debt excluding interest will mature in less than one
year, without considering reclassification into current maturity of debt due to convent breach (March 31, 2024: 1.26%) based on
the carrying value of borrowings reflected in the financial statements.

The Company’s ability to settle the above liabilities is dependent on further support from the DoT on the AGR matter as explained
in note 3, fund raise through equity and debt and generation of cash flow from operations. Based on current efforts, the Company
believes that it would be able to get DoT support, successfully arrange funding and generate cash flow from operations, it will be
able to settle its liabilities as they fall due.

⁽¹⁾ Interest accrued but not due on loans from banks and others of ' 197 Mn (March 31, 2024: ' 166 Mn) has been excluded from
other financial liabilities and included in Loans from banks and others.

⁽²⁾ Interest accrued but not due on Deferred Payment Obligations of ' 9,404 Mn (March 31, 2024: ' 80,377 Mn) has been excluded
from other financial liabilities and included in Deferred Payment Obligations.

⁽³⁾ Payable for capital expenditure of ' 54,096 Mn (March 31, 2024: ' 70,260 Mn) and accrual towards One Time Spectrum
Charges (OTSC) of ' 75,813 Mn (March 31, 2024: ' 65,410 Mn) has been excluded from other financial liabilities and included
in trade and other payables.

* The Company has classified an amount of ' 7,260 Mn (March 31, 2024: ' 23,636 Mn) from non-current borrowings to current
maturities of long term debt although the Company believes that there will be no acceleration of payment in this regard (refer
note 24(C)).

^AA Includes payable for capital expenditure of ' 8,812 Mn (March 31, 2024 : 53,864 Mn) due for payment.

NOTE 62: CAPITAL MANAGEMENT

For the purpose of the Company’s capital management, capital includes issued equity capital, securities premium and all other equity
reserves attributable to the equity holders. The primary objective of the Company’s capital management is to maximise the value of
shareholders.

The Company manages its capital structure and makes adjustments in light of changes in economic conditions. The Company monitors
capital using the net debt-equity ratio, which is net debt divided by total equity

⁽¹⁾ Current Ratio = [Current assets/Current liabilities (excluding short term borrowings]

⁽²⁾ Debt-Equity Ratio = [Debt (excluding interest accrued but not due)/ Equity]

⁽³⁾ DSCR = [Profit/(loss) before exceptional items and tax Depreciation & Amortisation expenses (excluding depreciation on
ROU assets) Finance costs (excluding fair value gains/losses on derivatives and interest on lease liabilities)] / [Finance costs
(excluding fair value gains/losses on derivatives and interest on lease liabilities) interest capitalised scheduled long term
principal repayments(excluding prepayments)]

⁽⁴⁾ Return on Equity Ratio = [Net Profit/(loss) after tax/ Average Equity]

⁽⁵⁾ Trade Receivables turnover ratio = [(Average trade receivables/(Revenue from operations)*Number of days during the year]

⁽⁶⁾ Trade Payables turnover ratio = [Total purchases/Average Trade Payables]

⁽⁷⁾ Net capital turnover ratio = [Revenue from operations / (Current asset - Current liability (excluding Short term borrowings))

⁽⁸⁾ Net profit ratio = [Profit after tax/Revenue from operations]

⁽⁹⁾ Return on Capital employed = [(Profit/(loss) before tax Finance costs-Other income) / (Equity share capital Other equity
Debt (excluding interest accrued but not due)

⁽¹⁰⁾ Return on investment = [Gain on Mutual Fund (including fair value gain/(loss)) / Average Investment in Mutual Fund]

* This ratio is not applicable as the Net-worth as on March 31, 2025 and as on March 31, 2024 is negative.

NOTE 64

The Company uses accounting software for maintaining its books of account which has a feature of recording audit trail (edit log) facility
and the same has operated throughout the year for all relevant transactions recorded in the accounting software.

The Company also uses certain other peripheral software applications that support the recording of revenue, related subscriber acquisition
costs, and vendor invoice validation, wherein, the audit trail feature is fully enabled through the year at application and at database level
for all transactions except for a few of the other peripheral software application, for which audit trail is not enabled. Further, there are no
instances of audit trail feature being tampered with. Additionally, the audit trail has been preserved as per the statutory requirements
for record retention in respect of software where the audit trail is enabled.

Further, the Company uses software applications which are operated by third-party software service providers, for processing the payroll
and for roaming revenue accounting. The Company has obtained the Service Organisation Controls (“SOC”) report from the payroll
service provider covering audit trail feature at application and at database level. Also, the Company is in process of obtaining revised
SOC report from roaming revenue accounting service provider covering audit trail feature.

As per our report of even date

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

Chartered Accountants

^{ICAI Firm Registration No: 101049W/E300004} Sunil Sood Himanshu Kapania

Non-Executive Director Non-Executive Director

(DIN : 03132202) (DIN : 03387441)

Amit Poddar Akshaya Moondra Murthy G.V.A.S. Pankaj Kapdeo

Partner Chief Executive Officer Chief Financial Officer Company Secretary

Membership No.: 509192

Place: Mumbai
Date : May 30, 2025