I. The Company has an investment of H 2,521.15 crores (31 March 2022: H 2,521.15 crores) in equity shares of Tata Communications International Pte Limited.
In the opinion of the management, having regard to the nature of the subsidiary's business and future business projections, there is no diminution, other than temporary in the value of investment despite significant accumulated losses (refer note 2(c)(ii)).
II. The Company has investment in its wholly owned subsidiary Tata Communications Payment Solutions Limited (‘TCPSL'). Management performed impairment assessment as at 31 March 2023. The recoverable value was determined by Value in use (‘VIU') of TCPSL business. The recoverable amount was lower than the carrying value of investment in TCPSL and hence the Company recorded a diminution in the fair value of the investment of H 322.76 crores. This has been disclosed as an exceptional item.
The Company has considered it appropriate to undertake the impairment assessment with reference to the latest business plan which includes a 5 year cash flow forecast. The growth rates used in the value in use calculation reflect those inherent to the Company's business. The future cash flows consider potential risks given the current economic environment and key assumptions, such as volume forecasts and margins.
TCSPL continues to implement various initiatives directed towards improving the profitability through transforming the business model and operational efficiencies. The license issued by the Reserve Bank of India (‘RBI') authorising TCPSL for setting up and operating payment system for White Label ATMs is due for renewal on 30 June 2023 and TCPSL is in the process of filing the application with the RBI for the renewal.
III. During the current year, the Company has made
additional investment of H 50 crores (during previous year H 110.01 crores) in equity shares of TCPSL.
IV. During the current year, the Company has made
additional investment of H 48.59 crores in equity shares of TCCSPL.
V. During the current year, the Company has made additional investment of H 90.51 crores (during previous year H 169.59 crores) in equity shares of STT Global Data Centers India Private Limited.
VI. During the current year, the Company has made
investment of H 1.84 crores in equity shares of Nivade
Windfarm Limited.
i. The Company has issued corporate guarantees for the loans and credit facility arrangements in respect of various subsidiaries.
ii. As at 31 March 2023, the proportionate share of pension obligations and payments of H 61.15 crores (31 March 2022: H 61.15 crores) to the erstwhile OCS employees was recoverable from the Government of India (the “Government”). Pursuant to discussion with the Government in prior years, the Company had made a provision of H 53.71 crores (31 March 2022: H 53.71 crores) resulting in a net amount due from the Government towards its share of pension obligations of H 7.44 crores (31 March 2022: H 7.44 crores).
Association of Competitive Telecom Operators (ACTO') filed a petition in TDSAT for declaring retrospective applicability of the newly notified amendment regulations dated 28 November 2018 on CLS, which was dismissed by TDSAT vide its judgment dated 16 April 2020. The order of TDSAT was challenged by RJIO and ACTO before Supreme Court by way of separate Statutory appeal wherein no stay was granted and the matter is pending for final adjudication as at the year end. During the current year, based on the Hon'ble Supreme Court direction, one of the customers paid H 70 crores for these services. The said receipt is without prejudice to the said customers' rights and subject to the final outcome of the appeals and application pending in the Hon'ble Supreme Court. The gross receivable balances for these services of H 111.71 crores (As at 31 March 2022 - H 164.00 crores), being sub judice are considered good and recoverable and have been disclosed ‘Disputed Trade receivables -considered good'.
i. The Management intends to dispose off few staff quarters and few buildings of the Company having net block of H 154.94 crores (31 March 2022: H 152.28 crores). The Company was only able to partially dispose off its assets classified as held for sale as on 31 March 2022 on account of certain circumstances beyond its control that lead to extension of the period required to complete the sale. The addition during the year is on account of assets transferred in from Property, plant and equipment for H 3.51 crores. Accordingly, these assets have been classified as assets held for sale as on 31 March 2023.
ii. Further the fair value of these assets is higher than their carrying value as on 31 March 2023 and hence, no impairment loss has been recognised.
a. Issued, subscribed and paid up
There is no change in the issued, subscribed and paid up share capital of the Company during the current and past five financial years.
b. Terms / rights attached to equity shares
The Company has only one class of equity shares with a face value of H 10 per share. Each shareholder of equity shares is entitled to one vote per share at any general meeting of shareholders. The Company declares and pays dividends in INR. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the Company, after distribution of all preferential amounts, in proportion to their shareholding.
i. Capital reserve includes H 205.22 crores (As at 31 March 2022 H 205.22 crores) in respect of foreign exchange gains on unutilised proceeds from Global Depository Receipts in earlier years.
ii. Other comprehensive income: This represents the cumulative gains and losses arising on the revaluation of equity instruments measured at fair value through other comprehensive income, net of amounts reclassified to retained earnings when those assets have been disposed off and remeasurement of defined employee benefit plans (net of taxes).
i. Secured debentures
During the year 31 March 2021, the Company issued 5,250, 7.48% debentures of face value H 10 lakhs each amounting to H 524.07 crores (net of arrangement fees). These debentures are secured by first ranking floating pari-passu charge by way of hypothecation and/or mortgage on the moveable property, plant and equipment of the Company (excluding immovable property, computers, motor vehicles, furniture and fixtures and office equipment). These debentures are due for redemption on 19 April 2023 and have been redeemed in accordance with the terms of redemption contained in the debenture trust deed dated 23 June 2020.
ii. Unsecured loan from financial institution
a. During the current year, the Company availed H 3.57 crores loan from a financial institution. The present value of the said loan is calculated using an interest rate of 6.03% and the loan is repayable in 12 equal instalments with final maturities in June 2025. During the current year, H 0.90 crores was paid on due date. There are no covenants on the said loan. The repayment schedule of the balance loan is as under:
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Year of Repayment
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Amount of Repayment (J in crores)
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FY 23-24
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1.19
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FY 24-25
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1.19
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FY 25-26
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0.29
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ii. During the previous year, pursuant to the conclusion of agreement between the Company and Central Board of Direct Taxes, the Company charged incremental guarantee fees and letter of comfort fees to its subsidiaries. Accordingly, other income and tax expense (including interest) for the year ended 31 March 2022, includes an amount of H 31.86 crores and H 23.95 crores respectively, for the earlier years.
i. Charges for use of transmission facilities include cost of certain equipment ancillary to Data and Managed Services ('DMS') of H 183.06 crores (2021 - 2022: H 139.09 crores) which is as per contracts with customers.
ii. Inventory comprises of certain equipment, software, etc which are ancillary to DMS.
(CESTAT) such items were classified under a different category at a higher rate. Accordingly, the Company has filed request for reassessment of Bill of Entry under the CESTAT suggested category for these goods with the various Customs ports so that payment can be made for the differential amount of custom duty. The Company has provided H 25.99 crores in its financial statements (amount greater than 6 months H 22.13 crores).
As required by the relevant rules, the Company deposited the unspent amount in a specified bank account subsequent to the year ended 31 March 2022.
ii. During the period from May 2020 to March 2023, basis the self-assessment the Company had classified imports of certain goods into categories as prescribed under the Customs Tariff Act. However, during a recent judgement by the Customs, Excise and Service Tax Appellate Tribunal
34. Staff cost optimisation
As part of its initiative to enhance the long term efficiency of the business during the year, the Company undertook organisational changes to align to the Company's current and prospective business requirements. These changes involved certain positions in the Company becoming redundant and the Company incurred a one-time charge/ (reversal) in earlier years.
35. Gain on sale of fixed assets (net)
During the current year, the Company concluded the sale of few of its properties, for a total consideration of H 47.59 crores (net of transaction cost) resulting into a gain of H 46.74 crores. These assets were disclosed under assets held for sale.
36. Insurance claim
During the earlier years, the Company had recognized an insurance claim of H 24.25 crores based on assessment by the insurance company on minimum loss admissible against loss caused due to malfunctioning of the fire suppression system in earlier years. Further, during the previous year, the Company recognised an amount of H 10.08 crores based on final settlement of claim.
37. Provision for diminution in fair value of investment
The Company has investment in its wholly owned subsidiary TCPSL. During the current year, there has been diminution in the fair value of the investment resulting into a loss of H 322.76 crores (refer note 11 (A) (II)).
39. Employee benefits (Defined benefit plan)
Provident fund
The Company makes contributions towards a provident fund under a defined benefit retirement plan for qualifying employees. The provident fund (the ‘Fund') is administered by the Trustees of the Tata Communications Employees' Provident Fund Trust (the ‘Trust') and by the Regional Provident Fund Commissioner. Under this scheme, the Company is required to contribute a specified percentage of payroll cost to fund the benefits.
The rules of the Fund administered by the Trust require that if the Board of Trustees are unable to pay interest at the rate declared for Employees' Provident Fund by the Government under the applicable law for the reason that the return on investment is lower or for any other reason, then the deficiency shall be made good by the Company. Having regard to the assets of the Fund and the return on the investments, the Company does not expect any deficiency in the foreseeable future. There has also been no such deficiency since the inception of the Fund.
Provident fund contributions amounting to H 70.11 crores (2021 - 2022: H 57.35 crores) have been charged to the Statement of Profit and Loss, under contributions to provident and other funds in note 29 "Employee benefits”.
Gratuity
The Company makes annual contributions under the Employees Gratuity Scheme to a fund administered by Trustees of the Tata Communications Employees' Gratuity Fund Trust covering all eligible employees. The plan provides for lump sum payments to employees whose right to receive gratuity had vested at the time of resignation, retirement, death while in employment or on termination of employment of an amount equivalent to 15 days' salary for each completed year of service or part thereof in excess of six months. Vesting occurs upon completion of five years of service except in case of death.
Medical benefit
The Company reimburses domiciliary and hospitalisation expenses not exceeding specified limits incurred by eligible and qualifying employees and their dependent family members under the Tata Communications Employee's Medical Reimbursement Scheme.
Pension plan
The Company's pension obligations relate to certain employees transferred to the Company from OCS. The Company purchases life annuity policies from an insurance company to settle such pension obligations.
39. Employee benefits (Defined benefit plan) (Contd..)
Furthermore, in presenting the above sensitivity analysis, the present value of the defined benefit obligation has been calculated using the projected unit credit method at the end of the reporting period, which is the same as that applied in calculating the defined benefit obligation liability recognized in the balance sheet.
iii. Leave plan and compensated absences
For executives
Leaves unavailed by eligible employees may be carried forward upto 60 days and for employees who have joined post 1 January 2020 carry forward shall be restricted to 45 days. Encashment will be maximum of 30 days by them / their nominees in the event of death or permanent disablement or resignation.
For non executives
Leave unavailed of by eligible employees may be carried forward / encashed by them / their nominees in the event of death or permanent disablement or resignation, subject to a maximum leave of 300 days.
The liability for compensated absences as at the year end is H 56.17 crores (31 March 2022: H 50.61 crores) as shown under non-current provisions H 37.26 crores (31 March 2022: H 43.37 crores) and current provisions H 18.91 crores (31 March 2022: H 7.14 crores). The amount charged to the Statement of Profit and Loss under Salaries and related costs in note 29 "Employee benefits” is H 12.47 crores (2021 - 2022: H 14.58 crores).
42. Segment reporting
The Board of Directors and the Managing Director of the Company together constitute the Chief Operating Decision Makers ("CODM”) which allocate resources to and assess the performance of the segments of the Company. The Company's reportable segments are Voice Solutions ("VS”), Data and Managed Services ("DMS”) and Real Estate ("RE”). The composition of the reportable segments is as follows:
Voice Solutions (VS)
VS includes international and national long distance voice services.
Data and Managed Services (DMS)
DMS includes corporate data transmission services, virtual private network signalling and roaming services, television and other network and managed services.
i. Revenues and network and transmission costs are directly attributable to the segments. Network and transmission costs are allocated based on utilisation of network capacity. License fees for VS and DMS have been allocated based on adjusted gross revenues from these services. Depreciation and certain other costs have been allocated to the segments based on various allocation parameters. Segment result is segment revenues less segment expenses. Other income and exceptional items have been considered as “Unallocable”.
ii. For the year ended 31 March 2023 and 31 March 2022, capital expenditure includes H 65.03 crores and H 22.83 crores respectively towards right of use assets.
43. Derivatives
Derivatives are not designated as hedging instruments.
The Company uses foreign exchange forward and option contracts to manage some of its transaction exposures. The foreign exchange forward and option contracts are not designated as cash flow hedges and are entered into for periods consistent with foreign currency exposure of the underlying transactions, generally within 1 year.
The significant accounting policies, including the criteria for recognition, the basis of measurement and the basis on which income and expense are recognised, in respect of each class of financial asset, financial liability and equity instrument are disclosed in note 2(t) to the financial statements.
Carrying amounts of cash and cash equivalents, trade receivables, loans and trade payables as at 31 March 2023 and 31 March 2022 approximate the fair value because of their short term nature. Difference between carrying amount and fair value of other bank balances, other financial assets, other financial liabilities and borrowings subsequently measured at amortised cost is not significant in each of the years presented.
The following table summarises financial assets and liabilities measured at fair value on a recurring basis and financial assets that are not measured at fair value on a recurring basis (but fair value disclosure are required)
45. Financial risk management objectives and policies
The Company's principal financial liabilities other than derivatives, comprise loans and borrowings, trade and other payables and financial guarantee contracts. The main purpose of these financial liabilities is to finance the Company's operations and to provide guarantees to support its subsidiaries' operations. The Company's principal financial assets include loans, trade and other receivables, current investments and cash and cash equivalents that derive directly from its operations. The Company has investments on which gain or loss on fair value is recognised through other comprehensive income and also enters into derivative transactions.
The Company is exposed to market risk, credit risk and liquidity risk. The Company's senior management oversees the management of these risks.
The Company's senior management ensures that financial risk activities are governed by appropriate policies and procedures and that financial risks are identified, measured and managed in accordance with the Company's policies and risk objectives. All derivative activities for risk management purposes are carried out by specialist teams that have the appropriate skills, experience and supervision. It is the Company's policy that no trading in derivatives for speculative purposes may be undertaken. The senior management reviews and agrees policies for managing each of these risks, which are summarised below:
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, such as equity price risk and commodity risk. Financial instruments affected by market risk include loans and borrowings, deposits, FVTPL and FVTOCI investments and derivative financial instruments.
b) Interest rate risk
Interest rate risk is the risk that the future cash flows with respect to interest receipts and payments on loans extended or availed will fluctuate because of changes in market interest rates. The Company does not have
exposure to the risk of changes in market interest rates as it has long-term debt obligations and loan receivables with fixed interest rates and loans extended on variable rate are classified as short term.
c) 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) and the Company's net investments in foreign subsidiaries.
The Company's objective is to try and protect the underlying values of the Company's balance sheet forex exposures. Exposures are broadly categorised into receivables and payable exposures.
The Company manages its foreign currency risk by entering into derivatives on net exposures, i.e. netting off the receivable and payable exposures in order to take full benefit of natural hedge.
Non-crystalised (not in books) exposures for which cash flows are highly probable are considered for hedging after due consideration of cost of cover, impact of such derivatives on profit and loss due to MTMs (mark to market loss or gains), market / industry practices, regulatory restrictions etc.
As regard net investments in foreign operations, hedging decisions are guided by regulatory requirement, accounting practices and in consultation and approval of senior management on such hedging action.
The foreign exchange rate sensitivity is calculated by aggregation of the net foreign exchange rate exposure and a simultaneous parallel foreign exchange rate shift of all the currencies by 5% against the functional currency of the Company.
The following analysis has been worked out based on the net exposures of the Company as of the date of balance sheet which would affect the Statement of Profit and Loss and equity.
45. Financial risk management objectives and policies (Contd..)
5% appreciation/ depreciation of the respective foreign currencies with respect to functional currency of the Company would result in decrease/ increase in the Company's profit before tax by approximately H 9.63 crores and H 5.74 crores for the year ended 31 March 2023 and 31 March 2022 respectively.
d) Equity price risk
The Company's non-listed equity securities are not susceptible to market price risk arising from uncertainties about future values of the investment in securities as these investments are accounted for at cost in the financial statements.
e) Credit risk
Credit risk is the risk that the counterparty will not meet its obligations under a financial instrument or a 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, foreign exchange transactions and other financial instruments.
In determining the allowances for doubtful trade receivables, the Company has used a simplified approach by computing the expected credit loss allowance for trade receivables based on a provision matrix. The provision matrix takes into account historical credit loss experience and is adjusted for forward looking information. The expected credit loss allowance is based on the ageing of the gross receivables as at the reporting date and the net receivables after considering expected credit loss allowance is as mentioned below:
f) Liquidity risk
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, debentures, preference shares, finance leases and hire purchase contracts.
Liquidity risk is defined as the risk that the Company will not be able to settle or meet its obligations on time or at a reasonable price. The Company's corporate treasury department is responsible for liquidity, funding as well as settlement management. In addition, processes and policies related to such risks are overseen by senior management.
The Company's objective for capital management is to maximise shareholder value, safeguard business continuity and support the growth of the Company. The Company determines the capital requirement based on annual operating plans and long-term and other strategic investment plans. The funding requirements are met through loans and operating cash flows generated. The Company is not subject to any externally imposed capital requirements.
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.
b. As lessor
i. In case of certain operating lease agreements relating to dark fiber contracts aggregating H 101.15 crores (31 March 2022: H 98.70 crores) as at 31 March 2023, the gross block, accumulated depreciation and depreciation expense of the assets given on an IRU basis cannot be identified as these assets are not exclusively leased. The lease rentals associated with such IRU arrangements for the year ended 31 March 2023 amount to H 5.73 crores (2021 - 2022: H 4.98 crores).
48. Operating lease arrangements
a. As lessee
The Company has lease contracts for immovable properties across various locations used in its operations. Such leases generally have lease terms between 1 to 80 years. Generally, the Company is restricted from assigning and subleasing the leased assets. There are several lease contracts that include extension and termination options and variable lease payments.
The Company also has certain leases with lease terms of 12 months or less.
1. Claims for taxes on income
Significant claims by the revenue authorities in respect of income tax matters relate to disallowance of deductions claimed under section 80 IA of the Income Tax Act, 1961 from assessment years 199697 onwards and transfer pricing adjustments carried out by revenue authorities. The Company has contested the disallowances / adjustments and has
preferred appeals which are pending.
The Company has certain tax receivables against the ongoing litigations which will be settled on completion of the respective litigation. The Company is of the view that the said balances are recoverable subject to favourable outcome of the same and hence does not require any adjustments as at 31 March 2023.
2. Other claims
i. Telecom Regulatory Authority of India ("TRAI”) reduced the Access Deficit Charge ("ADC”) rates effective 1 April 2007. All telecom service providers including National Long Distance ("NLD”) and International Long Distance ("ILD”) operators in India are bound by the TRAI regulations. Accordingly, the Company has recorded the cost relating to ADC at revised rates as directed by TRAI. However, BSNL continued to bill at the ADC rate applicable prior to 1 April 2007. BSNL had filed an appeal against TRAI Interconnect Usage Charges ("IUC”) regulation of reduction in ADC and currently this matter is pending with the Hon'ble Supreme Court. The excess billing of BSNL amounting to H 311.84 crores (31 March 2022: H 311.84 crores) has been disclosed as contingent liability.
ii. During the previous year ended 31 March 2020, the Company had received demands from Department of Telecommunications (DOT) aggregating to H 6,633.43 crores towards License Fee on its Adjusted Gross Revenue (AGR) for the financial years 2006-07 till 201718 in respect of its ILD, NLD and ISP licenses.
The demands received by the Company included an amount of H 5,433.70 crores which were disallowed by the DOT towards the cost adjusted to Gross Revenues by the Company that were claimed on ‘accrual basis' instead of payment basis, for which a revised statement on the basis of actual payment has been submitted to the DOT. Though, the Company believes that it has case to defend, it made a provision of H 337.17 crores during the year ended 31 March 2020 and for the balance amount of H 5,096.53 crores, the Company believed that the likelihood of the same materializing is remote since the deduction of payment basis has not been considered by DOT. During the year ended 31 March 2021, the Company had made
a payment of H 379.51 crores under protest to DOT as disclosed in note 15.
During the current year, in October 2022, the Company received "Revised Show Cause cum Demand Notices” (Notices) aggregating to H 4,980.56 crores for the above mentioned financial years, except FY 2010-11 for ISP license, and FYs 2006-07 & FY 2009-10 for NLD licenses. These Notices replaces the earlier Demand issued during the year ended 31 March 2020. In its assessment, DoT accepted the Company's submissions along with relevant certificates in respect of disallowed deductions in the demands issued earlier. The Company has made suitable representations to the Notices, showing cause as to why these demands are not sustainable.
The Company has existing appeals relating to its ILD, NLD & ISP licenses which were filed in the past and are pending at the Hon'ble Supreme Court and Hon'ble Madras High Court and the Company's appeals are not covered by the Hon'ble Supreme Court's judgment dated 24 October 2019, on AGR under UASL. Further, the Company believes that all its licenses are different from UASL, which was the subject matter of Hon'ble Supreme Court judgement of 24 October 2019. The Company believes that it will be able to defend its position and had obtained independent legal opinions in this regard.
The earlier demands which are not revised amounts to H 194.22 crores of which H 166.04 crores is considered remote since the deduction on payment basis is not considered by DoT and H 28.18 crores is considered as contingent liability. Accordingly, the Company has disclosed contingent liability of H 5,008.74 crores (As at 31 March 2022 - H 1,199.73 crores) towards this matter and total contingent liability in respect of all AGR dues including above demands and interest computed from the date of the demand till the year end, amounts to H 6,546.74 crores (As at 31 March 2022 - H 2,605.08 crores).
iii. Upon expiry of the Company's Internet Service Provider (‘ISP') license on 24 January 2014, DoT vide letter dated 20 February 2014 extended the validity of the said license for 3 months with condition that entire ISP revenue will be subject
to license fees. This conditional extension by DoT, was challenged by the Company in TDSAT and on 18 October 2019 the Company's petition has been allowed by TDSAT. DoT has filed an appeal in Hon'ble Supreme Court, against the said order, but no stay has been granted by the Hon'ble Supreme Court and appeal is yet to be heard. The Company has continued to disclose an amount of H 1,479.35 crores (31 March 2022: H 1,287.15 crores) including interest under contingent liabilities. In the previous year, the Company has signed UL-ISP License on 6 August 2021 and is duly paying the license fees thereunder.
iv. Other claims of H 329.97 crores (31 March 2022: H 290.41 crores) mainly pertain to routine suits for collection, commercial disputes, claims from customers and/or suppliers, BSNL port charges and claim from Employee State Insurance Corporation.
3. During the earlier years, the Company and its two directors and an ex-employee had received show cause notices (SCNs) from Directorate of Enforcement, Ministry of Finance on alleged violation of the rules and regulations under the Foreign Exchange Management Act, 1999. The contravention amount involved in all these notices is H 593 crores. The liability could extend up to three times the amount quantified as contravention. The Company had provided H 4.50 crores as compounding penalty, based on a legal opinion. During the previous year, Ministry of Information and Broadcasting approval was received and based on the same the Company had filed its application with RBI for compounding of charges. The Company and the named individuals in the SCNs filed their replies to the SCNs refuting the allegations made therein and without prejudice to their contentions and claims filed compounding applications with the RBI. RBI vide its separate orders dated 18 October 2019, had disposed off the compounding applications and had compounded the contravention subject of payment of H 1.48 crores by the Company and H 0.14 crores each by the individuals. The Company had made the payment on its behalf and also on behalf of the individuals. Thereafter, the Company and named individuals have also filed their representation with ED requesting for the closure of the proceedings.
Based on the management assessment and legal advice (wherever taken), the Company believes that the above
49. Contingent liabilities and commitments: (Contd..)
claims are not probable and would not result in outflow of resources embodying economic benefits.
b. Commitments
i. Capital commitments
Estimated amount of contracts remaining to be executed on capital account, not provided for amount to H 539.68 crores (31 March 2022: H 484.17 crores) (net of capital advances).
ii. Other commitments
1. The Company has committed loan facility to wholly owned subsidiaries to the tune of H 3,586.87 crores (31 March 2022: H 3,281.02 crores) as at 31 March 2023, utilisation of which is subject to future requirements and appropriate approval processes from time to time.
50 . The DOT has amended the definition of Gross Revenue (GR) /AGR in the Unified License and including licenses held by the Company. The new definition allows for deduction of revenue from activities other than telecom activities / operations which is less than 20% of the total revenue from operations. The association of Internet Service providers has written to the DOT, seeking clarification on certain non-
licensed services that it provides and in the interim, the Company has considered the revenue from such services under the deduction provided by the new definition. The Company also obtained independent legal view in this regard.
a. Decreased mainly due to reclassification of loan given to subsidiary from current to non - current and reclassification of secured debentures from non -current to current as per repayment terms.
b. Decreased due to reclassification of secured debentures from non-current to current as per repayment terms.
c. Provision for diminution in the fair value of investment in subsidiary has resulted in a decline in the ratio.
d. Bad debts written off H 21.65 crores (2021-22 H 4.67 crores)
55. Events after the reporting period
There are no significant subsequent events between the year ended 31 March 2023 and signing of financial statements as on 19 April 2023 which have material impact on the financials of the Company.
56. Approval of financial statements
The financial statements were approved for issue by the board of directors on 19 April 2023.
57. Previous year's figures have been regrouped/ rearranged where necessary to conform to current year's classification/ disclosure.
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