2.16Provisions

General

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 will
be required to settle the said obligation and the amounts
of the said obligation can be reliably estimated.

Provisions are measured at the present value of the
expenditures expected to be required to settle the
relevant obligation (if the impact of discounting is
significant), using a pre-tax rate that reflects current
market assessments of the time value of money and
the risks specific to the obligation. The increase in the
provision due to unwinding of interest over passage of
time is recognised within finance costs.

The Company is involved in various legal and taxation
matters and the matter are in legal course. Management,
in consultation with legal, tax and other advisers,
assesses the likelihood that a pending claim will succeed.
The Company recognises a provision in cases where
it is probable that an outflow of resources embodying
economic benefits will be required to settle the
obligations arising from such claims.

2.17 Contingencies

A disclosure for a contingent liability is made when there
is a possible obligation or a present obligation that may,
but probably will not, require an outflow of resources.
When there is a possible obligation or a present obligation
in respect of which the likelihood of outflow of resources
is remote, no provision or disclosure is made. Contingent
asset is not recognised and is disclosed only where an
inflow of economic benefits are probable.

2.18Revenue recognition

Revenue is recognised upon transfer of control of
promised products or services to the customer at the
amount of transaction price which the Company has
received or expects to receive in exchange of those
products or services, net of any taxes / duties, discounts
and process waivers. When determining the consideration
to which the Company is entitled for providing promised
products or services via intermediaries, the Company
assesses whether it is primarily responsible for fulfilling
the performance obligation and whether it controls the
promised service before transfer to customers. To the
extent that the intermediary is considered a principal,
the consideration to which the Company is entitled is
determined to be that received from the intermediary.

Revenue is recognised when, or as, each distinct
performance obligation is satisfied. The main categories
of revenue and the basis of recognition are as follows:

a. Service revenue

Service revenues mainly pertain to pack subscription
for voice, data, messaging, value added services and
internet protocol television ('IPTV') services. It also
includes revenue from interconnection / roaming
charges for usage of the Company's network by
other operators for voice, data, messaging and
signaling services.

Telecommunication services (comprising voice,
data and SMS) are considered to represent a
single performance obligation as all are provided
over the Company's network and transmitted as
data representing a digital signal on the network.
The transmission consumes network bandwidth
and therefore, irrespective of the nature of the
communication, the customer ultimately receives
access to the network and the right to consume
network bandwidth.

Revenue is recognized upon transfer of control
of promised services to the customers. Pack
subscription charges are recognized over the
subscription pack validity period and where there
is no uncertainty as to collection of consideration.
Revenues in excess of invoicing are classified as
unbilled revenue while invoicing / collection in
excess of revenue are classified as deferred revenue
/ advance from customers.

Revenues from long distance operations comprise
of voice services and bandwidth services (including
installation), which are recognised on provision of
services over the period of respective arrangements.

b. Multiple element arrangements

The Company has entered into certain multiple-
element revenue arrangements which involve
the delivery or performance of multiple products,
services or rights to use assets. At the inception of
the arrangement, all the deliverables therein are
evaluated to determine whether they represent
distinct performance obligations and if so, they are
accounted for separately. Total consideration related
to the multiple element arrangements is allocated
to each performance obligation based on their
standalone selling prices. The stand-alone selling
prices are determined based on the list prices at
which the Company sells equipment and network
services separately.

c. Equipment sales

Equipment sales mainly pertain to sale of
telecommunication equipment and related
accessories for which revenue is recognised
when the control of equipment is transferred to
the customer, i.e. transferred at a point in time.
However, in case of equipment sale forming
part of multiple-element revenue arrangements
which is not a distinct performance obligation,
revenue is recognised over the customer
relationship agreement.

d. Interest income

The interest income is recognised using the EIR
method. For further details, refer note 2.10.

e. Costs to obtain or fulfill a contract with a
customer

The Company incurs certain costs to obtain or
fulfill contracts with customers viz. intermediary
commission, etc. The Company has estimated
that the average customer life derived from
customer churn rate is longer than 12 months and,
thus, such costs are recognised over the average
expected customer life.

f. Dividend income

Dividend income is recognised when the Company's
right to receive the payment is established. For
futher details, refer note 2.10.

M9Government grants

Grants from the government are recognised where there
is a reasonable assurance that the grant will be received
and the Company will comply with all attached conditions.

Government grants relating to income are deferred and
recognised in the Statement of Profit and Loss over the
period necessary to match them with the costs that they
are intended to compensate.

Government grants relating to the purchase of PPE are
included in non-current liabilities as deferred income and
are credited to Statement of Profit and Loss on a straight¬
line basis over the expected lives of the related assets.

2.20 Borrowing costs

Borrowing costs consist of interest and other ancillary costs
that the Company incurs in connection with the borrowing
of funds. The borrowing costs directly attributable to
the acquisition or construction of any asset that takes a
substantial period of time to get ready for its intended use
or sale (qualifying asset) are capitalised. All other borrowing
costs are recognised in the Statement of Profit and Loss
within finance costs in the period in which they are incurred.

2.21 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.

2.22 Dividends paid

Dividend to shareholders is recognised as a liability
on the date of approval by the shareholders. However,
interim dividend is recorded as a liability on the date of
declaration by the Company's Board of Directors.

2.23 Earnings per share ('EPS')

The Company presents the Basic and Diluted EPS.

Basic EPS is computed by dividing the profit for the
period attributable to the shareholders of the Company
by the weighted average number of shares outstanding
during the period.

Diluted EPS is computed by adjusting, the profit for the
year attributable to the shareholders and the weighted
average number of shares considered for deriving Basic
EPS, for the effects of all the shares that could have been
issued upon conversion of all dilutive potential shares. The
dilutive potential shares are adjusted for the proceeds
receivable had the shares been actually issued at fair
value. Further, the dilutive potential shares are deemed
converted as at beginning of the period, unless issued at
a later date during the period.

2.24 Compliance with approved Schemes of
Arrangements

All the Schemes of Arrangements, approved by the
Competent Authority under the relevant provisions of
the Act, have been accounted for in the books of account
of the Company in accordance with the Scheme and
accounting standards.

3. Key sources of estimation uncertainties
and Critical judgements

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

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

3.1 Key sources of estimation uncertainties

The estimates and assumptions that have a significant
risk of causing a material adjustment to the carrying
values of assets and liabilities are discussed below:

a. Useful lives of PPE

As described at note 2.7 above, the Company
reviews the estimated useful lives of PPE at the
end of each reporting period. After considering
market conditions, industry practice, technological
developments and other factors, the Company
determined that the current useful lives of its PPE
remain appropriate. However, changes in economic
conditions of the markets, competition and
technology, among others, are unpredictable and
they may significantly impact the useful lives of PPE
and therefore the depreciation charges. Refer note
2.7 and 5 for the estimated useful life and carrying
value of PPE respectively.

b. Impairment reviews

PPE (including CWIP) and intangible assets with
definite lives, are reviewed for impairment, whenever
events or changes in circumstances indicate that
their carrying values may not be recoverable.
Goodwill and IAUD are tested for impairment, at least
annually and whenever circumstances indicate that
it may be impaired. For details as to the impairment
policy, refer note 2.9. Further, the Company conducts
impairment reviews of investments in subsidiaries /
associates / joint arrangements whenever events
or changes in circumstances indicate that their
carrying amounts may not be recoverable.

In calculating the value in use, the Company is
required to make significant judgements, estimates
and assumptions inter-alia concerning the growth
in earnings before interest, taxes, depreciation
and amortisation ('EBITDA') margins, capita
expenditure, long-term growth rates and discount
rates to reflect the risks involved. Also, judgement
is involved in determining the CGU / grouping of
CGUs for allocation of the goodwill.

c. Taxes

Deferred tax assets are recognised for the unused
tax losses credits for which there is probability
of utilisation against the future taxable profit
Significant management judgement is required tc
determine the amount of deferred tax assets that
can be recognised, based upon the likely timing and
the level of future taxable profits, future tax planning
strategies and recent business performances
and developments.

d. Allowance for impairment of trade
receivables

The ECL is mainly based on the ageing of the
receivable balances and historical experience. The
receivables are assessed on an individual basis or
grouped into homogeneous groups and assessed
for impairment collectively, depending on their
significance. Moreover, trade receivables are written
off on a case-to-case basis if deemed not to be
collectible on the assessment of the underlying
facts and circumstances.

e. Contingent liabilities and provisions

The Company is involved in various legal, tax and
regulatory matters, the outcome of which may not
be favourable to the Company. Management in
consultation with the legal, tax and other advisers
assess the likelihood that a pending claim wil
succeed. The Company has applied its judgement
and has recognised liabilities based on whether
additional amounts will be payable and has included
contingent liabilities where economic outflows are
considered possible but not probable.

3.2 Critical judgements in applying the
Company's accounting policies

The critical judgements, which the management
has made in the process of applying the Company's
accounting policies and have the most significant
impact on the amounts recognised in the said Financia
Statements, are discussed below:

a. Separating lease and non-lease
components

The consideration paid by the Company in
telecommunication towers lease contracts include
the use of land and passive infrastructure as well
as maintenance, security, provision of energy
services etc. Therefore, in determining the allocation
of consideration between lease and non-lease
components, for the additional services that are not
separately priced, the Company performs analysis
of cost split to arrive at relative stand-alone prices
of each of the components. The bifurcation of the
consideration paid (excluding energy) between
lease versus non-lease component across the
Company has been accordingly considered at 60%
as lease component on an overall basis.

b. Determining the lease term

Under Ind AS 116, if it is reasonably certain that a
lease will be extended / will not be early terminated,
the Company is required to estimate the expected
lease period which may be different from the
contractual tenure. The Company has various
tower lease agreements with a right to extend /
renew / terminate wherein it considers the nature
of the contractual terms and economic factors to
determine the lease term. After assessing such
factors, the lease liability has been calculated using
the remaining lease period until which significant
exit penalties are payable.

c. Determining the incremental borrowing
rate for lease contracts

The initial recognition of lease liabilities at present
value requires the identification of an appropriate
discount rate. The Company has determined the
incremental borrowing rate based on considerations
specific to the leases by taking consideration of the
risk free borrowing rates as adjusted for country /
Company specific risk premiums (basis the readily
available data points).

d. Revenue recognition and presentation

The Company assesses its revenue arrangements
in order to determine if it is acting as a principal or
as an agent by determining whether it has primary
obligation basis pricing latitude and exposure
to credit / inventory risks associated with the
sale of goods / rendering of services. In the said
assessment, both the legal form and substance of
the agreement are reviewed to determine each
party's role in the transaction.

4. Significant transactions / new
developments

i. During the year ended March 31, 2026, the Company
has completed first and final Call of H 401.25 per share
(including a premium of H 397.50) (the "First and Final
Call") on 391,176,994 outstanding partly paid-up equity
shares of face value of H 5 each (paid-up of H 1.25 each),
amounting to H 156,960 (share capital - H 1,467 and
securities premium - H 155,493) issued by the Company
on a rights basis, pursuant to the Letter of Offer dated
September 22, 2021. Further, in respect of the remaining
1,110,668 partly paid-up equity shares on which first
and final call remains unpaid, the Company shall issue
reminder notice(s) in due course, in accordance with the
applicable laws and subject to necessary approvals of the
Board/Committee thereof.

ii. Pursuant to the notification issued by the Ministry of
Labour and Employment, the Code on Wages, 2019, the
Code on Social Security, 2020, the Industrial Relations
Code, 2020 and the Occupational Safety, Health and
Working Conditions Code, 2020 (collectively referred
to as the "New Labour Codes") became effective from
November 21, 2025. The Company has assessed the
financial implication of New Labour Codes, which
has resulted in increase in provision for gratuity
and compensated absences amounting to H 2,099.
Considering the impact arising out of enactment of the
new legislation is an event of non-recurring nature, the
Company has presented this incremental amount as
exceptional item. The tax credit on above exceptional
item of H 528 is included under tax expense/(credit).

iii. During the year ended March 31, 2026, Network i2i
Limited, a wholly owned subsidiary of the Company has
converted its outstanding loans taken from the Company
amounting to USD 600 million into 79,321,658 equity
shares of USD 1 each.

iv. During the year ended March 31, 2026, the Company set
up a subsidiary Airtel Money Limited. The said subsidiary
obtained the license to operate as Non-Banking Financial
Company (NBFC) from Reserve Bank of India on February
13, 2026. The subsidiary will be capitalised with Company
contributing 70% and the promoter group via Bharti
Enterprises Limited, contributing the remaining 30%.

v. During the year ended March 31, 2025, the Company had
entered into a Business Transfer Agreement ('BTA') on
February 7, 2025 for transfer of the passive infrastructure
business undertaking by way of a slump sale to Indus
Towers Limited ('Indus'), a subsidiary of the Company. The
transfer of business undertaking completed on March 24,
2025 with receipt of consideration amounting to H 18,288

on March 24, 2025 and H 2,032 was deposited by Indus
into Escrow Account as per terms of BTA on provisional
basis which was subject to adjustments for reconciliation
of site count and category of sites and is to be completed
within 4 months from March 24, 2025.

During the year ended March 31 2026, as required under
the terms of the BTA, the company has completed
the necessary reconciliation and finalized the sales
consideration at H 19,210.

vi. During the year ended March 31, 2026, the Company
purchased additional stake amounting to H 12,178 in
Indus Towers Limited from open market. This resulted in
increasing Company's stake in Indus Towers Limited from
50.005% to 51.26%.

vii. During the year ended March 31, 2025, the Company had, in
accordance with the terms of the Offering Circular dated
January 14, 2020 w.r.t. USD 1,000 million 1.50% Convertible
Bonds due 2025 ('FCCBs'), allotted 47,018,242 equity
shares of the face value of H 5 each fully paid up, against
the conversion request of FCCBs of USD 337.77 million. The
Company redeemed the outstanding FCCBs aggregating
to USD 0.2 million together with accrued interest thereon,
in accordance with the terms and conditions of FCCBs. No
FCCBs are outstanding as at March 31, 2025.

viii. During the year ended March 31, 2025, the Company
had paid H 251,244 to the DoT towards full prepayment
of deferred liabilities pertaining to spectrum acquired in
2012, 2015, 2016, 2021 and 2024.

ix. During the year ended March 31, 2025, the Company had
participated in the latest spectrum auction conducted by
DoT and has been declared successful bidder for total of
82 MHz spectrum in 900 MHz, 1800 MHz and 2100 MHz
frequency bands. This entire spectrum bank had been
secured for a total consideration of H 58,557 payable over
20 years, for which the allocation had been received upon
the payment of the dues as per the demand note received.

x. During the year ended March 31, 2024, the Hon'ble
Supreme Court of India pronounced a judgement
regarding the tax treatment of adjusted revenue linked
Variable License Fee ('VLF') payable to DoT since July
1999 and held that it is capital in nature and not revenue
expenditure for the purpose of computation of taxable
income. This decision does not alter the total amount
of VLF allowed as deduction over the license period
but creates a timing difference wherein later years
would have a higher deduction. This had resulted in an
additional tax provision of H 1,209 primarily due to change
in effective tax rate on account of adoption of new tax
regime. The interest charge of H 9,713 on the above matter

was presented as an exceptional item. The above financial
assessment was based on the Company's best estimate.

During the year ended March 31, 2025, the Hon'ble
Supreme Court of India passed a judgement waiving off
the interest levy on adjusted revenue linked VLF payable
to DoT arising from October, 2023 given the matter for
sub-judice. The Company had reversed interest charge
aggregating to H 9,887, as an exceptional item.

xi. During the year ended March 31, 2025, the transaction
between Bharti Airtel Limited, Dialog Axiata PLC
('Dialog') and Axiata Group, Berhad for the share swap
of Bharti Airtel Lanka (Private) Limited ('Airtel Lanka')
with Dialog had been consummated. Upon completion
of the transaction, Dialog holds 100% shareholding of
Airtel Lanka and Bharti Airtel Limited holds 10.355%
shareholding of Dialog. Investment in Dialog had been
irrevocably treated as investment held at fair value
through other comprehensive income as the Company
considers this investment to be strategic in nature.

xii. During the year ended March 31, 2025, the Company
had sold certain digital assets for H 6,179 comprising of
Hardware and software's ('specified assets') with a view
to consolidate the digital offering under one entity being
Xtelify Limited (a subsidiary of the Company) having net
carrying of H 6,063. Difference between sales consideration
(net of tax) and carrying value was recognised in common
control reserve amounting to H 84.

xiii. During the year ended March 31, 2025, Bharti Hexacom
Limited, a subsidiary of the Company, completed its
Initial Public Offering comprising of an offer for sale by
Telecommunications Consultants India Limited (selling
shareholder) of 75,000,000 equity shares of H 5 each at
a premium of H 565 per share aggregating to H 42,750.
The equity shares were listed and started trading on BSE
Limited and National Stock Exchange of India Limited
with effect from April 12, 2024.

xiv. During the year ended March 31, 2025, Bharti Airtel
Services Limited, a wholly owned subsidiary of the
Company had converted its outstanding loans taken from
the Company amounting to H 13,105 into 320,449 equity
shares amounting to H 6,500 and 325,369 optionally
convertible debentures amounting to H 6,605.

xv. During the year ended March 31, 2025, OneWeb India
Communications Limited ("OneWeb"), a wholly owned
subsidiary of the Company had issued 27,066,923
equity shares to OneWeb Holdings Limited ("Investor")
on preferential allotment basis. Upon completion of
the transaction, Investor holds 74% shareholding of
OneWeb and the Company holds 26% shareholding of
OneWeb. Investment in OneWeb has been treated as
Investment in associate.

xvi. Consequent to the change in composition of Board of
Directors of Indus Towers Limited ('Indus') with effect from
closure of business hours on November 18, 2024, Indus is
controlled by the Company in terms of section 2(27) of
the Companies Act, 2013 and Ind AS 110, 'Consolidated
Financial Statements'. Accordingly, classification of
Indus investment has changed from Joint Venture to
Subsidiary. Additionally, the impairment recognized in
earlier periods has been reassessed and reversed. The
same was recognized as a reversal in exceptional item.

xvii. During the year ended March 31, 2025, the Company
had transferred its 69.94% equity stake in Airtel
Payments Bank Limited, an associate of the Company
to Airtel Limited, a subsidiary of the Company, against
a consideration of H 86,654. Airtel Limited discharged
the consideration through issuance of 0.01% optionally
convertible debentures. The transaction was recorded
as a common control transaction and the difference
between consideration received and the carrying value
of investment transferred, amounting to H 69,400 was
recognised in common control reserve.

xviii. During the year ended March 31, 2025, the Company
had transferred its Internet of Things ('IOT') undertaking
to Xtelify Limited, a subsidiary of the Company, under
slump sale arrangement on going concern basis. The
transfer was completed on February 28, 2025 against a
consideration of H 102,260. Xtelify Limited had discharged
the consideration through issuance of 0.01% optionally
convertible debentures. The transaction was recorded
as a common control transaction and the difference
between consideration received and the carrying value
of net assets transferred, amounting to H 100,420 was
recognised in common control reserve.

b. Rights, preferences and restrictions attached to Shares

The Company has only one class of equity shares having par value of H 5 each. The holder of the equity share is entitled to
dividend right and voting right in the same proportion as the capital paid-up on such equity share bears to the total paid-up
equity share capital of the Company. The declaration of dividend by the Company is associated with the fulfilment of interest
obligation, if any, on the perpetual securities issued by one of its wholly-owned subsidiaries. In the event of liquidation of the
Company, the holders of equity shares will be entitled to receive the remaining assets of the Company, after distribution of
all preferential amounts, in proportion to the number of equity shares held by the shareholders.

c. Terms of conversion / redemption of FCCBs

The Company had outstanding FCCBs of USD 337.97 million as of March 31, 2024, bearing coupon rate of 1.50% issued at par,
listed on the Singapore Exchange Securities Trading Limited. As per Offering Circular issued by the Company, FCCBs are
convertible into Company's fully paid-up equity shares of H 5 each at initial conversion price (as adjusted from time to time), at
any time on or after February 27, 2020 and up to the close of business on February 7, 2025, at the option of the FCCB holders.
The conversion price was subject to adjustment w.r.t events as mentioned in Offering Circular, but cannot be below the floor
price which is H 452.09. All the FCCBs were converted except for USD 0.2 million, which were redeemed at 102.66% of their
principal amount during the year ended March 31, 2025.

d. Details of shareholders (as per the register of shareholders) holding more than 5% shares
in the Company

f. Aggregate number of shares issued for consideration other than cash during the period
of five years immediately preceding the reporting date:

• During the year ended March 31, 2025, 47,018,242 equity shares of H 5 each were issued to the FCCB holders pursuant to
option exercised in accordance with Offering Circular (refer note 4 (vii)).

• During the year ended March 31, 2024, 79,952,427 equity shares of H 5 each were issued to the FCCB holders pursuant
to option exercised in accordance with Offering Circular (refer note 4 (vii)).

• During the year ended March 31, 2023, 11,930,543 equity shares of H 5 each were issued to the FCCB holders pursuant to
option exercised in accordance with Offering Circular.

• During the year ended March 31, 2021, 36,469,913 equity shares of H 5 each were issued on preferential basis to Lion
Meadow Investment Limited, an affiliate to Warburg Pincus LLC as partial consideration for acquisition of equity shares
of Bharti Telemedia Limited.

g. Shares held by Bharti Airtel Welfare Trust against employee share-based payment plans
(face value : J5 each)

16. Reserves and surplus

a) Retained earnings: Retained earnings represent the amount of accumulated earnings of the Company, re-measurement
differences on defined benefits plans, gains / (losses) on common control transactions and any transfer from general reserve.

b) Securities premium: Securities premium is used to record the premium on issue of equity shares. The same is utilised in
accordance with the provisions of the Act.

c) General reserve: The Company had transferred a portion of its profit before declaring dividend in respective prior years to
general reserve, as stipulated under the erstwhile Companies Act, 1956. Mandatory transfer to general reserve is not required
under the Act.

Further, on exercise of the stock options, the difference between the consideration (i.e. the exercise price and the related
amount of share-based payment reserve) and the cost (viz. related amount of loan provided to Bharti Airtel Welfare Trust) of
the corresponding stock options, is transferred to general reserve.

d) Share-based payment reserve: The Share based payment reserve is used to record the fair value of equity-settled share
based payment transactions with employees.

e) Capital reserve: It pertains to capital reserve acquired pursuant to the scheme of arrangements accounted under pooling
of interest method and excess of fair value of net assets acquired over consideration paid in a business combination. This
reserve is not available for distribution as dividend.

f) FVTOCI reserve: The Company has elected to recognise changes in the fair value of a certain investment in equity securities
in OCI. These changes are accumulated within the FVTOCI reserve within equity.

g) Equity component of FCCBs: The equity component is the residual amount after deducting the fair value of the financial
liability component from the net proceeds of the FCCBs.

h) Common control reserve: The transaction arising out of transfer of investments between entities that are under common
control are accounted at their carrying amounts. The difference between the consideration paid and the carrying amount
is recorded in common control reserve. The common control reserve will be transferred to retained earnings when the
underlying investment is sold to a third party (entity outside the scope of common control).

The category wise detail of major contingent liabilities
has been given below:-

a) Sales Tax, Service Tax and GST

The claims for sales tax comprised of cases relating
to the appropriateness of declarations made by
the Company under relevant sales tax legislations,
which were primarily procedural in nature and the
applicable sales tax on disposals of certain property
and equipment items, ITC eligibility and VAT on
value added services. Pending final decisions, the
Company has deposited amounts under protest
with statutory authorities for certain cases.

The service tax demands relate to levy of service tax
on SMS termination and Cenvat credit disallowed
for procedural lapses.

The GST demand pertains to disallowance of ITC
availed by the transitional credit, miscellaneous
interest, differences between ITC claimed and as
availed over portal.

b) Income Tax demand

Income tax demands mainly include the appeals
filed by the Company before various appellate
authorities against the disallowance by income
tax authorities of certain expenses being claimed.
During the year, the Company has reassessed
the existing possible obligations and accordingly
disclosed for such amounts.

c) Customs Duty

There are certain demands related to non¬
submission of export obligation discharge
certificate, classification issue, valuation of goods
imported and levy of anti-dumping duty on
certain products.

d) Entry Tax

In certain states, an entry tax is levied on receipt of
material from outside the state. This position has
been challenged by the Company in the respective
states, on the grounds that the specific entry tax
is ultra vires the Constitution. Classification issues
have also been raised, whereby, in view of the
Company, the material proposed to be taxed is not
covered under the specific category.

During the year ended March 31, 2017, the Hon'ble
Supreme Court upheld the constitutional validity of
entry tax levied by few States. However, the Hon'ble
Supreme Court did not conclude certain aspects
such as whether the levy of entry tax in States is

discriminatory etc. and such question was left open

for the respective jurisdictional High Courts.

e) DoT demands / assessments includes

i. DoT had enhanced the microwave rates by
introducing slab-wise rates based on the
number of carriers vide circulars issued in 2006
and 2008 from erstwhile basis being allocated
frequency. The Company had challenged the
matter in Telecom Disputes Settlement and
Appellate Tribunal ('TDSAT') and it has set
aside the respective circulars of DoT vide its
Judgement dated April 22, 2010. Thereafter,
DoT has challenged the order of TDSAT before
the Hon'ble Supreme Court, which is pending
for adjudication. An amount of H 28,862 which
pertains to pre-migration to Unified License
('UL') i.e Unified Access Service License
('UASL') is disclosed as contingent liability as of
March 31, 2026.

ii. In 2013, DoT introduced UL Regime and
notified guidelines which mandates migration
to new UL regime upon expiry of existing
licenses. Accordingly, the Company migrated
to UL regime in 2014. The Company and
Internet Service Provider ('ISP') Association
challenged the Guidelines and provisions of
UL on the ground that DoT has discriminated
amongst ISP Licensees in violation of principle
of level playing field amongst ISPs. TDSAT
stayed the payment of license fee on revenue
from Pure Internet Service. In October 2019,
TDSAT delivered its judgement in the ISP
Association case (ISPAI Judgement) and set
aside the provision to pay license fee on the
revenue from pure internet service under UL.
TDSAT, following ISPAI judgement, allowed the
petition filed by the Company and set aside the
demand notices.

DoT has filed appeal against ISPAI judgement
before Hon'ble Supreme Court. On January
5, 2021, the Hon'ble Supreme Court admitted
DoT's appeal and also allowed the Company's
intervention application, with a direction
that DoT shall not be required to refund any
amounts pursuant to TDSAT judgement and
parties shall be bound by the final directions as
may be passed by the Hon'ble Supreme Court.

On March 31, 2021, DoT issued amendment to
the ISP Licenses granted under the old regime
i.e. under 2002 and 2007 with immediate effect

(April 1, 2021). Amongst others, DoT included
the revenue from pure internet services in
the AGR for the purposes of license fees in
such contracts (which was earlier allowed
as permissible deduction under old regime).
Accordingly, demand up to March 31, 2021
has been assessed to be a contingent liability
(March 31, 2026: H 48,619 and March 31,
2025: H 42,424).

iii. Demands for the contentious matters in
respect of subscriber verification norms
and regulations including validity of certain
documents allowed as proof of address /
identity. TDSAT and High Courts have granted
interim reliefs to the Company and the matters
are pending for adjudication.

iv. Penalty for alleged failure to meet certain
procedural requirements for EMF radiation
self-certification compliance.

v. Additional demand received for the period
already covered by the AGR judgement which
mainly pertains to spectrum usage charges.

The matters stated above are being contested
by the Company and based on legal advice, the
Company believes that it has complied with all
license related regulations and does not expect
any financial impact due to these matters.

In addition to the amounts disclosed in the table

above, the contingent liability on DoT matters

includes the following:

1) The Company had received SUC demands from
DoT in which DoT had added an incremental
0.5% to the Weighted Average Rate Method
for calculation of SUC instead of applying this
increment only on the SUC rate for the bands
shared with Tata, contrary to DoT's own Sharing
Guidelines. The Company challenged these
demands before the TDSAT in 2024 which was
allowed in the Company's favour by Judgment
dated 30 May 2025. DoT has filed an appeal
before the Supreme Court in January 2026,
which the Company will oppose.

2) In respect of levy of one time spectrum charge
('OTSC'), the DoT has raised demand on the
Company in January 2013. The Company
challenged the OTSC demand and the High
Court of Bombay vide its order dated January
28, 2013 stayed enforcement of the demand and
directed DoT not to take any coercive action. The
DoT has filed its reply and this matter is currently
pending before High Court of Bombay. The DoT
had issued revised demands on the Company

aggregating H 79,403 in June 2018, including
a retrospective charge and a prospective
charge till the expiry of the initial terms of the
respective licenses. The said revised demand
has subsequently also been brought within the
ambit of the earlier order of no coercive action
by the High Court of Bombay. The Company
intends to continue to pursue its legal remedies.

Further, in a similar matter on a petition filed by
another telecom service provider, the TDSAT,
vide its judgement dated July 4, 2019, has
set aside the DoT order for levy of OTSC with
retrospective effect. Accordingly, as per the
said order of the TDSAT; DoT can levy OTSC on
the Spectrum beyond 6.2 MHz allotted after
July 1, 2008, only from the date of allotment
of such spectrum and in case of Spectrum
beyond 6.2 MHz allotted before July 1, 2008,
only prospectively i.e. w.e.f. January 1, 2013.

Further, demand for OTSC on spectrum allotted
beyond start-up and up-to the limit of 6.2 MHz
has been set aside. The TDSAT has asked DoT to
issue revise demands, if any, in terms of the above
directions. The said telecom service provider
filed an appeal before the Hon'ble Supreme
Court against the judgement passed by TDSAT.
On March 16, 2020, the Hon'ble Supreme Court
dismissed the appeal of the telecom service
provider and did not interfere with the TDSAT
judgement. Thereafter, the telecom service
provider had filed a review petition against the
judgement dated March 16, 2020. The Hon'ble
Supreme Court allowed the review petition and
restored the telecom service providers' appeal.
The matter is pending adjudication before the
Hon'ble Supreme Court.

DoT's appeal against the said TDSAT Order for
the levy on Spectrum below 6.2 MHz is pending.
The Hon'ble Supreme Court vide order dated
August 21, 2020, stayed the TDSAT judgement
July 4, 2019 in a case of another telecom
service provider. The Hon'ble Supreme Court,
vide order dated December 7, 2020, directed
status quo to be maintained in case of another
telecom service provider.

On account of prudence, out of the total
demands of H 79,403, the Company had
recorded a charge of H 17,914 during the year
ended March 31, 2020 and interest thereon till
March 31, 2026 amounting H 120,299. Balance
demand of H 61,489 (without interest) has
continued to be contingent liability.

3) DoT had issued notices to the Company (as
well as other telecom service providers) to stop
provision of 3G services to its customers (under
3G Intra Circle Roaming ('ICR') arrangements
executed with other service providers) in such
service areas where the service provider has
not been allocated 3G spectrum and levied
a penalty of H 3,500 on the Company. The
Company contested the notices before TDSAT,
which in 2014 held 3G ICR arrangements
between service providers to be competent
and compliant to the licensing conditions and
quashed the notice imposing penalty. The DoT
has challenged the order of TDSAT before the
Hon'ble Supreme Court which is yet to be
listed for hearing.

Considering the nature of above disputes /
litigations, it is difficult to reliably ascertain the
amount or timing of outflow on settlement.

The Company has entered into non-cancellable lease arrangements to provide dark fiber on IRU basis and tower assets on site¬
sharing basis. Due to the nature of these transactions, it is not possible to compute gross carrying amount, depreciation for the
year and accumulated depreciation of the asset given on operating lease as of March 31, 2026 and March 31, 2025 and accordingly,
the related disclosures are not provided.

36. Financial and Capital risk
1. Financial risk

The business activities of the Company expose it to a variety of financial risks, namely market risks (that is, foreign exchange
risk, interest rate risk and price risk), credit risk and liquidity risk. The Company's risk management strategies focus on
the unpredictability of these elements and seek to minimise the potential adverse effects on its financial performance.
Further, the Company uses certain derivative financial instruments to mitigate some of these risk exposures (as discussed
below in this note).

The financial risk management for the Company is driven by the Company's senior management ('CSM'), in close co¬
ordination with the operating entities' internal / external experts subject to necessary supervision. The Company does not
undertake any speculative transactions either through derivatives or otherwise. The CSM is accountable to the Board of
Directors and Audit Committee. They ensure that the Company's financial risk-taking activities are governed by appropriate
financial risk governance framework, policies and procedures. The senior management / Board of Directors of the respective
operating entities periodically reviews the exposures to financial risks, the measures taken for risk mitigation and the
results thereof.

i. Foreign currency risk

Foreign exchange risk arises on all recognised monetary assets and liabilities and any highly probable forecasted
transactions, which are denominated in a currency other than the functional currency of the Company. The Company
has foreign currency trade payables, trade receivables and borrowings. However, foreign exchange exposure mainly
arises from borrowings and trade payables denominated in foreign currencies.

The foreign exchange risk management policy of the Company requires it to manage the foreign exchange risk by
transacting as far as possible in the functional currency. Moreover, the Company monitors the movements in currencies
in which the borrowings / capex vendors are payable and manage any related foreign exchange risk, which inter-alia
include entering into foreign exchange derivative contracts - as considered appropriate and whenever necessary. For
further details as to foreign currency borrowings, refer note 17. Further, for the details as to the fair value of various
outstanding derivative financial instruments, refer note 37.

ii. 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 interest bearing debt obligations with floating interest rates. However, the short-term
borrowings of the Company do not have a significant fair value or cash flow interest rate risk due to their short tenure.
Accordingly, the components of the debt portfolio are determined by the CSM in a manner which enables the Company
to achieve an optimum debt-mix basis its overall objectives and future market expectations. The Company monitors
the interest rate movement and manages the interest rate risk based on its risk management policies, which inter-alia
may include entering into interest swaps contracts as considered appropriate and whenever necessary. The company
also maintains a portfolio mix of floating and fixed rate debt.

The sensitivity disclosed in the above table is mainly attributable to foreign exchange gains / (losses) on translation
of USD denominated borrowings, derivative financial instruments, trade payables and trade receivables as at the
reporting date.

The above sensitivity analysis is based on a reasonably possible change in the underlying foreign currency against the
respective functional currency while assuming all other variables to be constant.

Based on the movements in the foreign exchange rates historically and the prevailing market conditions as at the reporting date,
the Company's management has concluded that the above mentioned rates used for sensitivity are reasonable benchmarks.

The sensitivity disclosed in the above table is attributable to floating-interest rate borrowings.

The above sensitivity analysis is based on a reasonably possible change in the underlying interest rate of the Company's
borrowings in INR, USD (being the significant currencies in which it has borrowed funds), while assuming all other
variables (in particular foreign currency rates) to be constant as at the reporting date.

Based on the movements in the interest rates historically and the prevailing market conditions as at the reporting
date, the Company's management has concluded that the above mentioned rates used for sensitivity are
reasonable benchmarks.

iii. Price risk

The Company invests its surplus funds in various mutual funds (debt fund, equity fund, liquid schemes and income
funds etc.), short term debt funds, government securities and fixed deposits. In order to manage its price risk arising
from investments, the Company diversifies its portfolio in accordance with the limits set by the risk management
policies. The Company has exposure across mutual fund and money market instruments.

Due to the very short tenure of money market instruments and the underlying portfolio in liquid schemes, these do not
pose any significant price risk.

iv. Credit risk

Credit risk refers to the risk of default on its obligation by the counter-party, the risk of deterioration of credit-worthiness
of the counter-party as well as concentration risks of financial assets and thereby exposing the Company to potential
financial losses.

The Company is exposed to credit risk mainly with respect to trade receivables, investment in bank deposits, debt
securities, mutual funds and derivative financial instruments.

Trade receivables

The Trade receivables of the Company are typically non-interest bearing unsecured and derived from sales made
to a large number of independent customers. As the customer base is widely distributed both economically and
geographically, there is no concentration of credit risk.

As there is no independent credit rating of the customers available with the Company, the management reviews the
credit-worthiness of its customers based on their financial position, past experience and other factors.

Credit risk related to the trade receivables is managed / mitigated by each business unit, basis the Company's established
policy and procedures, by setting appropriate payment terms and credit period and by setting and monitoring internal
limits on exposure to individual customers. The credit period provided by the Company to its customers generally
ranges from 14-30 days except Airtel business segment wherein it ranges from 7-90 days.

The Company uses a provision matrix to measure the ECL of trade receivables, which comprise a very large numbers of
small balances. Refer note 13 for details on the impairment of trade receivables.

Based on the industry practices and the business environment in which the entity operates, management considers that
the trade receivables are impaired if the payments are more than 90 / 120 days past due from due date / invoice date.

The Company performs ongoing credit evaluations of its customers' financial condition and monitors the credit¬
worthiness of its customers to which it grants credit in its ordinary course of business. The gross carrying amount of a
financial asset is written off (either partially or in full) to the extent that there is no realistic prospect of recovery. This is
generally the case when the Company determines that the debtor does not have assets or sources of income that could
generate sufficient cash flows to repay the amount due. Where the financial asset has been written-off, the Company
continues to engage in enforcement activity to attempt to recover the receivable due. Where recoveries are made,
these are recognised in the Statement of Profit and Loss.

Financial instruments and cash deposits

The Company's treasury, in accordance with the board approved policy, maintains its cash and cash equivalents,
deposits and investment in mutual funds & debt securities and enters into derivative financial instruments - with banks,
financial and other institutions, having good reputation and past track record and high credit rating. Similarly, counter¬
parties of the Company's other receivables carry either no or very minimal credit risk. Further, the Company reviews
the credit-worthiness of the counter-parties (on the basis of its ratings, credit spreads and financial strength) of all the
above assets on an ongoing basis and if required, takes necessary mitigation measures.

v. Liquidity risk

Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they become due.
Accordingly, as a prudent liquidity risk management measure, the Company closely monitors its liquidity position
and deploys a robust cash management system. It maintains adequate sources of financing including bilateral loans,
debt and overdraft from both domestic and international banks at an optimised cost. It also enjoys strong access to
domestic and international capital markets across debt and equity.

Moreover, the CSM regularly monitors the rolling forecasts of the entity's liquidity reserve (comprising of the amount of
available un-drawn credit facilities and cash and cash equivalents) and the related requirements, to ensure they have
sufficient cash on an on-going basis to meet operational needs while maintaining sufficient headroom at all times on
its available un-drawn committed credit facilities, so that there is no breach of borrowing limits or relevant covenants
on any of its borrowings. For details as to the borrowings, refer note 17.

Based on past performance and current expectations, the Company believes that the cash and cash equivalents,
cash generated from operations and available un-drawn credit facilities, will satisfy its working capital needs, capital
expenditure, investment requirements, commitments and other liquidity requirements associated with its existing
operations, through at least the next twelve months.

*It includes contractual interest payment based on interest rate prevailing at the end of the reporting period over the tenor
of the borrowings.

#Interest accrued has been included in interest bearing borrowings and excluded from other financial liabilities.

^AIncludes fixed rate and floating rate borrowings.

The Company from time to time in its usual course of business guarantees certain indebtedness of its subsidiaries. The
outflow in respect of these guarantees arises only on any default / non-performance of the subsidiary with respect
to the guaranteed debt / advance. Such loans are due for re-payment between 2 to 25 years from the reporting date
(refer note 22).

2. Capital risk

The Company's objective while managing capital is to safeguard its ability to continue as a going concern (so that it is
enabled to provide returns and create value for its shareholders and benefits for other stakeholders), support business
stability and growth, ensure adherence to the covenants and restrictions imposed by lenders and / or relevant laws and
regulations and maintain an optimal and efficient capital structure so as to reduce the cost of capital. However, the key
objective of the Company's capital management is to, ensure that it maintains a stable capital structure with the focus on
total equity, uphold investor; creditor and customer confidence and ensure future development of its business activities. In
order to maintain or adjust the capital structure, the Company may issue new shares, declare dividends, return capital to
shareholders, etc.

The Company manages its capital structure and makes adjustments to it, in light of changes in economic conditions or its
business requirements. The Company monitors capital using a net gearing ratio calculated as below:

39. Other matters

In 1996, the Company had obtained the permission from DoT to operate its Punjab license through one of its wholly owned
subsidiary. However, DoT cancelled the permission to operate in April 1996 and subsequently reinstated in March 1998. Accordingly,
for the period from April 1996 to March 1998 ('blackout period') the license fee was disputed and not paid by the Company.

Subsequently, basis the demand from DoT in 2001, the Company paid the disputed license fee of H 4,856 for blackout period under
protest. Consequently, the license was restored subject to arbitrator's adjudication on the dispute. The arbitrator adjudicated
the matter in favour of DoT, which was challenged by the Company before Delhi High Court. In 2012, Delhi High Court passed an
order setting aside the arbitrator's award, which was challenged by DoT and is pending before its division bench. Meanwhile, the
Company had filed a writ petition for recovery of the disputed license fee and interest thereto. However, the single bench, despite
taking the view that the Company is entitled to refund, dismissed the writ petition. The Company therefore has filed appeal
against the said order with division bench and is currently pending. DoT had also filed an appeal against the single judge order.
Both these appeals are tagged together and are listed for final hearing.

42. During the year ended March 31, 2026, no funds have been advanced / loaned / invested by the Company to any other
person(s) or entity(ies), including foreign entities (Intermediaries), with the understanding that the Intermediary shall (i) 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 (ii) provide any guarantee, security on behalf of the Ultimate Beneficiaries.

Further, no funds have been received by the Company from any person(s) or entity(ies), including foreign entities (Funding Parties),
with the understanding that the Company shall (i) 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 (ii) provide any guarantee, security on behalf
of the Ultimate Beneficiaries.

During the year ended March 31, 2025, no funds have been advanced / loaned / invested by the Company to any other person(s)
or entity(ies), including foreign entities (Intermediaries), with the understanding that the Intermediary shall (i) 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 (ii) provide any guarantee, security on behalf of the Ultimate Beneficiaries.

Further, no funds have been received by the Company from any person(s) or entity(ies), including foreign entities (Funding Parties),
with the understanding that the Company shall (i) 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 (ii) provide any guarantee, security on behalf
of the Ultimate Beneficiaries.

43. Audit Trail

The Company has used various accounting and related softwares for maintaining its books of account, wherein the audit trail (edit
log) feature was enabled and operating throughout the year and there were no instances of audit trail feature being tampered with
for the aforesaid accounting and related softwares. Additionally, the audit trail records have been preserved as per the statutory
requirements for record retention in respect of above accounting and related softwares.