Notes to Accounts of RailTel Corporation of India Ltd.

Mar 31, 2025

Significant management judgement is exercised by reviewing the deferred tax assets at each reporting date to

determine the amount of deferred tax assets that can be retained/ recognised, based upon the likely timing and

the level of future taxable profits together with future tax planning strategies.

44 Indian Accounting Standard (Ind AS) 16, Disclosure on Property, Plant & Equipment & Indian Accounting

Standard (Ind AS) 38, Disclosure on Intangible Assets

1 The depreciation / amortization has been charged at the straight-line method.

2 Company assessed the impairment of Assets and is of the opinion that since the Company is going concern and there is no indication exist for the impairment of the PPE except in case of NE project for which disclosure is given under Ind AS-36.

3 The useful life of all the PPE / Intangible Assets have been defined in the accounting policies.

4 A reconciliation of the carrying amount at the beginning and end of the period is as per Note No. 2 & 5 of Balance Sheet.

5 No assets have been classified as held for sale in accordance with Ind AS 105.

6 Company has not revalued its property, plant & Equipment (including right of use assets ).There is no increase or decrease on account of impairment loss recognized or reversed in other comprehensive income in accordance with Ind AS 36.

7 No Capital expenses was incurred on Assets not owned by the Company during the period ended 31.03.2025.

8 There is no obsolete asset which has been so far held under CWIP/Fixed Asset.

9 Depreciation / amortization on all the PPE / Intangible assets have been disclosed separately.

10 There is no restriction on title of PPE / Intangible Assets, and nothing has been pledged as security and liability.

11 The amount of contractual commitment for acquisition of PPE is Rs. 31153 lakhs (March''24 - Rs. 29648 Lakhs).

12 There is no amount to be received on account of compensation from third party for items of PPE / Intangible assets that were impaired, lost or given to Company that is to be recognized in the statement of profit & Loss account.

13 Entire depreciation / amortization has been recognized in the statement of Profit & Loss account; nothing has been charged to cost of other assets. Accumulated depreciation at the end of the year has been shown separately.

14 There are no temporarily idle PPE / intangible assets.

15 Assets of Gross Carrying Value of Rs. 75684 Lakhs (FY24- 68444 Lakhs) have been fully depreciated, but still are in use.

16 During the reporting year Assets having Net Book Value of Rs. 12 Lakh (Gross Book Value 48 Lakhs) has been retired with sale proceeds of Rs. 4 Lakh and loss of Rs 9 lakh has been booked.

17 In the following asset category, depreciation is charged at different rates as compare to the rates prescribed in part C of Schedule II of the Companies Act''2013 on the basis of useful life determined by technical committee:

45 Indian Accounting Standard (Ind AS) 19, Disclosure on Employee Benefits Employee Benefits - Defined Contribution Plan National Pension Scheme

RailTel pays an amount equal to 10% of Basic pay DA of the eligible employees in National pension scheme. Amount for FY 2024-25 is Rs. 692 Lakhs.

Provident Fund

All employees of the Company (excluding those on deputations) are entitled to receive benefits under the Provident Fund, which is a defined contribution plan. Both the employee and employer make monthly contribution to the plan at a pre-determined rate (presently 12%) of the employees'' salary consisting of Basic pay and Dearness allowance. These contributions are made to the fund administered and managed by Provident Fund Commissioner. The contributions of PF of the employee on deputation are made to the funds of their parent department. Amount for FY 2024-25 is Rs. 1020 Lakhs.

Employee Benefits - Defined Benefit Plan Gratuity

The Company has scheme of gratuity plan for its employees from LIC. Every employee who has completed at least five years of service are entitled for gratuity at the time of relinquishment of employment for 15 days of last drawn salary for each completed year of service. The scheme is funded through LIC in the form of qualifying insurance policy for its employees except outsourced Manpower.

Leave Encashment

The Company has scheme of Leave Encashment payable to eligible employees who have accumulated earned leave subject to maximum ceiling of 300 earned leave including half pay leave. Leave salary is provided for based on actuarial valuations, as at the Balance Sheet date. The scheme is funded through LIC.

Post-Retirement Medical

The Company has Post-Retirement Medical Scheme (PRMS) to provide assistance for meeting a part of medical expenses incurred by retired members only after their retirement for dependent family members and self and dependent family members of the ex-employee in case of death of the employee. Post-Retirement Medical is provided for based on actuarial valuations, as at the Balance Sheet date. The following tables summaries 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 the above defined benefit plan.

A description of methods used for sensitivity analysis and its Limitations:

Sensitivity analysis is performed by varying a single parameter while keeping all the other parameters unchanged.

Sensitivity analysis fails to focus on the interrelationship between underlying parameters. Hence, the results may vary if two or more variables are changed simultaneously.

The method used does not indicate anything about the likelihood of change in any parameter and the extent of the change if any.

The Description on funding arrangements and funding policy

The Company has Purchased an Insurance policy to settle the Gratuity Payment to their employees. Company may do the contribution every years based on the funding valuation carry out by insurance company based on the latest data provided by Company.

A description of methods used for sensitivity analysis and its Limitations:

Sensitivity analysis is performed by varying a single parameter while keeping all the other parameters unchanged.

Sensitivity analysis fails to focus on the interrelationship between underlying parameters. Hence, the results may vary if two or more variables are changed simultaneously.

The method used does not indicate anything about the likelihood of change in any parameter and the extent of the change if any.

It was informed by the company that Post Retirement Medical Benefit liabilities of the company are Funded.

There are no minimum funding requirements for a Post Retirement Medical Benefit plan and there is no compulsion on the part of the Company to fully or partially pre-fund the liabilities under the Plan.

The trustees of the plan have outsourced the investment management of the fund to an insurance company. The insurance company in turn manages these funds as per the mandate provided to them by the trustees and the asset allocation which is within the permissible limits prescribed in the insurance regulations. Due to the restrictions in the type of investments that can be held by the fund, it may not be possible to explicitly follow an asset-liability matching strategy to manage risk actively in a conventional fund.

The Description on funding arrangements and funding policy

The Company has Purchased an Insurance policy to settle the Gratuity Payment to their employees. Company may contribute every years based on the funding valuation carried out by insurance company based on the latest data provided by Company.

Grant/Subsidy on NE Project:

1. The Company had undertaken projects of NE-1 and NE-2 with a total projected capital outlay of Rs. 45125 Lakhs for which anticipated subsidy of Universal Service Obligation Fund of Department of Telecommunication, Government of India was pegged at Rs. 38800 Lakhs and net cash outflow of Rs. 6325 Lakhs. Against this, the Company has incurred total capital expenditure of Rs. 28852 Lakhs (Net of Recovery) out of which material of an amount of Rs. 2718 lakhs have been transferred to other projects/regions. Company has received subsidy of Rs. 3146 Lakhs with a net cash outflow of Rs. 22988 Lakhs up to 31.03.2025. In the opinion of the management, the Company has complied with all the conditions set out for the subsidy and accordingly, there is no liability to refund the subsidy already received.

2. During the period ended 31.03.25, depreciation of Rs. 746 Lakhs (March''24 - Rs. 937 lakhs) have been charged to Statement of Profit and Loss due to capitalization and accordingly impact of amortization of subsidy is recognized in Statement of Profit and Loss for Rs.413 Lakhs (March''24 -Rs. 129 lakhs) in proportion to depreciation which is shown under the head other operating revenue.

Grant/Subsidy on Rural Wi-Fi:

The Company had received Rural Wi-Fi Subsidy amounting to Rs. 1653 lakhs up to 31.03.2025 from Department of Telecommunication (DoT-USOF) for installation of Wi-Fi in rural areas. An amount of Rs. 1513 lakhs have been capitalized up to 31.03.2025 on account of commissioning of wi-fi services at the stations. The Company has amortized an amount of Rs. 217 lakhs out of the subsidy received in proportion to the depreciation on assets capitalized and same has been recognized under the head other operating revenue.

48 Indian Accounting Standard (Ind AS) 24, Related Party Disclosures are as follows:

i) Government Related Entities : The Company is a Central Public Sector Enterprise (CPSE) under the Ministry of Railways. The Company is controlled by Government of India (GOI), by holding 72.84% of equity shares in the name of President of India as at 31st March, 2025. Pursuant to Para 25 and 26 of Ind AS 24, entities over which the same government has control or joint control of, or significant influence, then the reporting entity and other entities shall be regarded as related parties. Transactions with these parties are carried out at market terms at arm length basis. The company has applied the exemption available for government related entities and have made limited disclosures in the financial statements.

50 Indian Accounting Standard (Ind AS) 36, Disclosure on Impairment of Assets & Indian Accounting Standard (Ind AS) 113, Disclosure on Fair Value Measurement

Based on an impairment study, The Company has recognized the impairment loss amounting Rs. 1850 lakhs (March''24 - Rs. 1072 lakhs) during the current year in statement of profit and loss for NE Project. This project was halted for the long time due to difficult working conditions in north eastern region and various other reasons. The total impairment loss as at 31.03.2025 of Rs. 12097 lakhs (as at 31.03.24 Rs. 10247 Lakhs).

b. Contingent liabilities:

Contingent liabilities are determined based on available information. These liabilities are not provided for and are disclosed by way of notes on accounts.

(a) Claim against the Company not acknowledged as debts:
							(? in lakhs)
	Particulars	Service	Income	VAT	GST	Arbitration/	Other	Total
		Tax	Tax			Court Cases
	Carrying Amount at the beginning of the year 01.04.2024	380	3,085	39	845	35,815	29,698	69,862
	Additions during the year				1,066	39,384	62	40,512
	Amount adjusted during the year	(60)	(1,717)	-	(627)	(35,431)	(29,698)*	(67,533)
	Carrying amount at the end of the year 31.03.2025	320	1,368	39	1,284	39,768	62	42,841

* Hon''ble Supreme Court passed an order dated 11.06.2020 wherein it was held that definition of AGR as per the licenses given to the Public Sector Undertaking (PSUs) is different than the definition of AGR as per Universal Access Service License (UASL) given to other network service providers. It was also upheld that the Hon''ble Supreme Court Judgement dated 24.10.2019 never dealt with the issue of PSUs as their agreements are quite different and therefore, the judgement held on AGR issue could not have been made the basis for raising the demand against Public Sector Undertaking as they are not in the actual business of providing mobile services to the general Public. The Company filed an application to Ministry of Railways for settlement of the dispute through administrative Mechanism for resolution of CPSE dispute (AMRCD). The Committee of Secretaries (CoS) as part of AMRCD resolution has decided that RCIL being a PSU, be given the same treatment as other PSUs whose demand on non telecom revenue was withdrawn. Accordingly, assessment of license fee upto FY 23-24 has been finalised by DoT and amount of Rs. 987.71 Lakhs has been paid by the Company during current FY and charged to P&L A/c

(b) Bank Guarantees given by the Company to Customers/Government as on 31.03.2025 is Rs. 72395 lakhs (31.03.2024 - Rs. 67290 lakhs).

(c)	Capital Commitments ('' in Lakhs)
	Particulars	March''25	March''24
	Estimated amounts of contracts remaining to be executed on capital account	31,153	29,648

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52 Disclosure Requirements as per IND AS 108 - Operating Segments

The Company''s principle business is to provide neutral telecom infrastructure. The Company operates within India and does not have operations in economic environment with different risks and returns. Hence, it is considered operating in Pan India-single geographical segment

The Company''s operating segments are as follows:

1. Telecom Services -Department of telecommunication has provided licenses to Company, namely ILD, NLD, ISP and IP-1 registration for providing various type of telecommunication services in the country. RailTel with its expertise in Telecom & IT domain for over a decade offers an end-to-end managed data services to its customers within the framework of these licenses.

It provides a wide range of Telecom services to its customer as under:

1. Managed Data Services

2. Leased Line

3. Virtual Private Network

4. Internet Leased Line

5. Data Centre

6. Tower collocation

7. Rack and space

8. NLD for voice carriage

2. Project Work services- To generate revenue through its expertise in telecom field, Company has taken the following projects:

1. Telecom and IT services related projects

2. Enterprise specific IT & ITES Projects

3. Railway Signalling Work

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53 Indian Accounting Standard (Ind AS), Disclosure on Financial Instruments (107), Recognition, Measurement, and Classification (109), and Fair Value Measurement (113)

53.1 FINANCIAL ASSETS Trade receivables

As per Ind AS 109, Company is following simplified approach of expected credit loss model for recognizing the allowance for doubtful debts.

Security Deposits

There are some deposits which are being kept with government authorities e.g., commercial taxes department, Railways, Electricity etc. which are considered as financial asset. A period of 10 years has been assumed for discounting these items.

Investments

Company makes investment in liquid mutual funds which are fair valued based on the unit price prevailing as at the period end and consequent gain/loss is taken to the profit and loss A/c.

53.2 FINANCIAL LIABILITIES

Security Deposits, Retention Money and Earnest Money Deposit are classified as Financial Liabilities.

Valuation techniques and process used to determine fair values

i. The carrying value of financial assets and liabilities with maturity less than 12 months are considered to be representative of their fair value.

ii. Fair value of other financial assets and liabilities carried at amortized cost is determined by discounting of cash flows using discount rate.

iii. A discount rate of 6.45% (5 Year RBI Bond Rate) has been used for balances as on 31.03.2025.

Financial Risk Management

The Company has constituted Risk Management Committee in line with the requirement of Regulation 21 of the SEBI (LODR) Regulations, 2015 (as amended).

The role and responsibilities of Risk Management Committee is in line with the provisions of Regulation 21 of the SEBI (LODR) Regulations, 2015.

Risk Management frame work of the company is as follows:-

a. Apex level Risk Management committee

b. Functional Risk Management Committee

The Company has a risk management policy to identify and analyse the risks faced by the Company. The audit committee evaluates the internal financial controls and risk management system. The Audit Committee monitor the Risk assessment and minimization procedure across the company after review of the same by Risk Management Committee (Apex Level) The audit committee is assisted in its oversight role by Internal Audit. Internal Audit undertakes reviews of risk management controls and procedures, the results of which are reported to the Audit Committee.

The Company has exposure to the following risk from its use of financial instruments: -

1. Credit Risk

2. Liquidity Risk

3. Market Risk

4. Project Risk

5. Insurable Risk

6. Capital Management

1. Credit Risk

Credit risk is the risk of financial losses to the Company if a customer or counterparty to a financial instrument fails to meet its contractual obligation and arises principally from the Company''s trade receivables, employee loans and other activities that are in the nature of leases.

The Company assesses on a forward-looking basis the expected credit loss associated with its financial assets carried at amortized cost. The impairment methodology applied depends on whether there has been a significant increase in credit risk. For trade receivables, the Company follows ''simplified approach'' for recognition of impairment loss and always measures the loss allowance at an amount equal to lifetime expected credit losses. Further, for the purpose of measuring lifetime expected credit loss allowance for trade receivables, the Company has used a practical expedient as permitted under Ind AS 109 i.e. expected credit loss allowance as computed based on historical credit loss experience. Company have used the methodology of provisional matrix as per Ind AS 109 to compute the historical loss rate and adjust the impact of macroeconomic factors into the historical loss rate to compute the forward-looking rates.

Exposure to Credit Risk

In the current year, Company used expected credit loss model to assess the impairment loss or gain. The Company has used a practical expedient by computing the expected credit loss allowance for trade receivables based on a provision matrix. The provision matrix considers historical credit loss experienced and adjusted for forward-looking information. The expected credit loss allowance is based on ageing of the days the receivables are due. The trade receivables which share the similar credit risk characteristics have been taken into the one bucket. Hence, company has divided the trade receivable into two categories as follows:

â¢ Government & PSU Customers

â¢ Private Customers

The gross carrying amount of trade receivables and unbilled revenue, net of any impairment losses recognized represents the maximum credit exposure.

2. Liquidity Risk

Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated with its financial liabilities that are settled by delivering cash or another financial asset. The Company''s approach to managing liquidity is to ensure, as far as possible, that it will always have sufficient liquidity to meet its liabilities when due, under normal and stressed conditions, without incurring unacceptable losses or risking damage to the Company reputation, typically the Company ensures that it has sufficient cash on demand to meet expected operational expenses, servicing of financial obligations.

3. Market Risk

Market risk is the risk of loss of future earnings or fair values or future cash flows that may result from a change in the price of a financial instrument. The value of a financial instrument may change as a result of changes in the interest rates, foreign exchange rates and other market changes that affect market risk sensitive instruments.

The Company makes investment in mutual fund which are subject to market risk. Hence, the investment is classified in the Balance Sheet at fair value through profit and loss (FVTPL) and resultant gain/loss on investment is classified as FVTPL. However, to manage the price risk, the Company invests in liquid funds and the level of the investments is insignificant in view of the level of the operation of the Company.

4. Project Risk

A project risk is an uncertain event that may or may not occur during a project. There is risk of time overrun/ cost overrun which is mitigated by ensuring time schedule for each activity of the project execution based on milestone and monitoring based on cost estimate..

5. Insurable Risk

Insurable Risks are mitigated based on definite policy of the company in regard to insurance of assets, material, Risks during Project execution, workmen and Directors and officers liability as decided by the company from time to time.

6. Capital Management

The Company manages its capital to ensure that the Company will be able to continue as a going concern, while maximizing the return to stakeholders through efficient allocation of capital towards expansion of business, optimization of working capital requirements and deployment of surplus funds. The Company uses the operational cash flows to meet its working capital requirements. The funding requirements are met through internal accruals. The Company is not subject to any externally imposed capital requirements.

54 Indian Accounting Standard (Ind AS) 115, Disclosure on Revenue from Contracts with Customers Disaggregation of Revenue

The company disaggregates revenue from contract with customer into categories that depicts how the nature, amount, timing, and uncertainty of revenue and cash flows are affected by economic factors. In project business segment the company provides warranty to customer which is implicit in the contract revenue. The said warranty is provided by OEMs with back to back performance obligation and hence the company does not have additional obligation for warranty in addition to the same provided by OEMs. Since warranty is implicit in transaction price on back to back agreement with OEMs and hence not been accounted for separately.

The following table illustrates the disaggregation of disclosure by primary geographical region, major product line, market or type of customer, type of contract, contract duration, sales channel and timing of revenue recognition in accordance with Ind AS 115.

The Company''s principal business is to provide neutral telecom infrastructure. The Company operates within India and does not have operations in economic environment with different risks and returns. Hence, it is considered operating in Pan India-single geographical segment.

The Company has been offering NLD Services, infrastructure services (Dark Fibers, Tower space and co-location etc.) under IP-I registration, ILD and Internet services under unified license to its customers under respective operating lease.

The Company has entered into a non-cancellable long-term lease arrangement to provide optical fiber on indefeasible right of use (IRU) basis. The lease rental receivable proportionate to actual kilometres accepted by the customer is credited to the statement of profit and loss on a straight - line basis over the lease term. Due to the nature of the transaction, it is not possible to compute gross carrying amount, depreciation for the period and accumulated depreciation of the asset given on operating lease and accordingly respective disclosures required by IND AS 116 are not provided.

In terms of contractual Clause of agreement, if the customer terminates the services of the link during minimum subscription period, RailTel shall refund or adjust (against the future orders) the already paid IRU charges after deducting the termination penalty.

56 Other Disclosures

56.1 These Financial Statements are presented in Indian Rupees (INR) which is the Company''s functional currency.

56.2 Figures have been rounded off to nearest Rupees in lakhs. Previous year figures have, wherever necessary, been rearranged/regrouped to conform the presentation of the Current year.

56.3 License fee to DoT and Railways Revenue Share computed at prescribed rate of 8% and 7% respectively.

56.4 Employees Benefit Expenses and Administrative Expenses are apportioned to project works based on 2% and 1% respectively of expenses incurred on projects.

56.5 The Current Assets/ Liabilities have been determined if they are receivable / payable within 1 year from the date of Balance Sheet. Rest has been treated as Non-Current.

56.6 Self-Insurance Reserve has been provided @ 0.12% p.a. on the Gross Block of Property, Plant & Equipment''s installed at PoP''s and customer premises to meet future losses which may arise from un-insured risks.

b. Revaluation of property, plant & equipment is as per Note 44 (6)

c. (a) No funds have been advanced or loaned or invested (either from borrowed funds or securities premium

or any other sources or kind of funds) by the company to or in any person(s) or entity(ies), including foreign entities (''the intermediaries''), with the understanding, whether recorded in writing or otherwise, that the intermediary shall, whether, directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the company (''the Ultimate Beneficiaries'') or provide any guarantee, security or the like on behalf the Ultimate Beneficiaries.

(b) No funds have been received by the company from any person(s) or entity(ies), including foreign entities (''the Funding Parties''), with the understanding, whether recorded in writing or otherwise, that the company shall, whether 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 provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

d. The company does not hold any Benami property under the Benami Transactions (Prohibitions) Act, 1988 (45 of 1988) and the rules made thereunder.

e. The company has not been declared wilful defaulter by any bank or financial institution or other lender.

f. Dealing with Struck off Companies:

The details of struck off companies having transaction during the FY 2024-25:

g. The company does not have any charges or satisfaction yet to be registered with ROC beyond the statutory period.

h. The company do not have any investment in step down subsidiaries. Hence the Companies (Restriction on number of layers) Rules, 2017 are not applicable.

i. The company has complied with all the terms of the approved scheme(s) of arrangements for the amalgamation of RailTel Enterprises Limited (Transferor Company) with and into RailTel Corporation of India Limited (Transferee Company) as approved by MCA (Ministry of Corporate Affair) vide approval order dated

27.09.2023.

j. The company has not traded in crypto currency or virtual currency.

k. The company has complied with all the terms of the approved scheme(s) of arrangements for the amalgamation of RailTel Enterprises Limited (Transferor Company) with and into RailTel Corporation of India Limited (Transferee Company) as approved by MCA (Ministry of Corporate Affair) vide approval order dated

27.09.2023.

l. The company does not have any undisclosed income in the tax assessments under the Income tax Act, 1961.

1 Debt Service Coverage Ratio: due to addition of new lease (ROU) for Rs. 1938 Lakhs.

2 Net Capital Turnover Ratio: due to increase in working capital of the company.

3 Return on Investment: due to increase in return on liquid funds.

58 The Board of Directors in its meeting dated 01.05.2025 have approved the company''s financial statements for the FY 2024-25. CMD and/or Director Finance of the company is authorised by the Board to make necessary correction/modification/alteration in the financial statements on behalf of the Board.

Mar 31, 2024

Structure of Shares as above remain unchanged during last five years and no bonus share are issued since incorpoartion of the Company.

b. Right, Preference and restriction attached to shares

The equity share are the only class of Share capital having par value of ''10 per share. Every holder of equity share present at a meeting in person or by a proxy, is entitled to one vote, and upon a poll each share is entitled to one vote.

Equity share carry voting right proportionate to the paid up value per share. In the event of liquidation of the company, holders of the equity share are entitled to be repaid the amounts credited as paid up on those equity share. All surplus assets after settelment of liabilities as at the commencement of winding up shall be paid to the holders of equity share in proportion of their shareholding.

e. Aggregate number of shares issued for consideration other than cash in last five years -NIL

* The President of India acting through the Ministry of Railways has disinvested 8,71,53,369 equity shares of the company of facevalue of ''10 each by way of initial public offering through an offer for sale.The equity shares of the company were listed on the stock exchanges (i.e. BSE Limited ("BSE") and National Stock Exchange of India Ltd. ("NSE") w.e.f. 26.02.2021.

NOTE NO. 43: OTHER EXPLANATORY NOTES AND DISCLOSURES FORMING PART OF FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31, 2024

1. These Financial Statements are presented in Indian Rupees (INR) which is the Company''s functional currency.

2. Figures have been rounded off to nearest Rupees in lakhs. Previous year figures have, wherever necessary, been rearranged/regrouped to conform the presentation of the Current year.

3. License fee to DoT and Railways Revenue Share computed at prescribed rate of 8% and 7% respectively.

4. Employees benefit expenses and administrative expenses are apportioned to project works based on 2% and 1% respectively of expenses incurred on projects.

5. The Current Assets/ Liabilities have been determined if they are receivable / payable within 1 year from the date of Balance Sheet. Rest has been treated as Non-Current.

/ \

6. Self-Insurance Reserve has been provided @ 0.12% p.a. on the Gross Block of Property, Plant & Equipment''s installed at PoP''s and customer premises to meet future losses which may arise from un-insured risks.

Para-wise disclosure of Applicable Indian Accounting Standards are as below:

11. Financial Instruments FINANCIAL ASSETS Trade receivables

As per Ind AS 109, Company is following simplified approach of expected credit loss model for recognizing the allowance for doubtful debts.

Security Deposits

Investments

Company makes investment in liquid mutual funds which are fair valued based on the unit price prevailing as at the period end and consequent gain/loss is taken to the profit and loss A/c.

FINANCIAL LIABILITIES

Security Deposits, Retention Money and Earnest Money Deposit are classified as Financial Liabilities.

12 IND AS 2: Inventories

i The total carrying amounts of inventories as at 31.03.2024 is '' 301 Lakhs (March''23 - '' 92 Lakhs) as shown in Note No. 9 of Balance Sheet.

ii There is no reversal or any write-down that is recognized as a reduction in the amounts of inventories recognized as expense in the year and presented in cost of sales.

iii Nothing out of carrying amounts of inventories has been pledged as security for liabilities.

13 Disclosures in respect of IND AS 8: Acounting Policies, Changes In Accounting Estimates And Errors

Any item of prior period error which exceeds 1% of revenue from operations is considered for materiality test which is in accordance with Schedule III of the Companies Act 2013. Accordingly, in compliance with Ind AS-8, there is no need to re-state financial statements of prior period, since prior period errors are not material in nature.

Reconciliation between the average effective tax rate and the applicable tax rate -

Effective tax rate is generally influenced by various factors, including differential tax rates, non-deductible expenses, provisions, and other tax deductions. The change in effective tax rate from Mar''23 to Mar''24 is mainly due to change in tax rates as tabulated here under:

15 Disclosures as required by Ind AS 16 - Property, Plant & Equipment & Ind AS 38 - Intangible Assets

i The depreciation / amortization has been charged at the straight-line method.

ii Company assessed the impairment of Assets and is of the opinion that since the Company is going concern and there is no indication exist for the impairment of the PPE except in case of NE project for which disclosure is given under Ind AS-36.

iii The useful life of all the PPE / Intangible Assets have been defined in the accounting policies.

iv A reconciliation of the carrying amount at the beginning and end of the period is as per Note No. 2 of Balance Sheet.

v No assets have been classified as held for sale in accordance with Ind AS 105.

vi Company has not revalued its property, plant & Equipment (including right of use assets ).There is no increase or decrease on account of impairment loss recognized or reversed in other comprehensive income in accordance with Ind AS 36.

vii No Capital expenses was incurred on Assets not owned by the Company during the period ended 31.03.2024.

viii There is no obsolete asset which has been so far held under CWIP/Fixed Asset.

ix Depreciation / amortization on all the PPE / Intangible assets have been disclosed separately.

x There is no restriction on title of PPE / Intangible Assets, and nothing has been pledged as security and liability

xi The amount of contractual commitment for acquisition of PPE is '' 29648 lakhs (March''23 - ''14522 Lakhs)

xii There is no amount to be received on account of compensation from third party for items of PPE / Intangible assets that were impaired, lost or given to Company that is to be recognized in the statement of profit & Loss account.

xiii Entire depreciation / amortization has been recognized in the statement of Profit & Loss account; nothing has been charged to cost of other assets. Accumulated depreciation at the end of the year has been shown separately.

xiv There are no temporarily idle PPE / intangible assets.

xv Assets of Gross Carrying Value of '' 68444 (FY23- 53890) Lakhs have been fully depreciated, but still are in use

xvi During the reporting year Assets having Net Book Value of ''12 Lakh (Gross Book Value 84 Lakhs) has been retired with sale proceeds of ''5 Lakh and loss of ''7 lakh has been booked.

xvii In the following asset category, depreciation is charged at different rates as compare to the rates prescribed in part C of Schedule II of the Companies Act''2013 on the basis of useful life determined by technical committee :

16. In terms of contractual Clause of agreement, if the customer terminates the services of the link during minimum subscription period, RailTel shall refund or adjust (against the future orders) the already paid IRU charges after deducting the termination penalty.

17. Disclosure Requirement as per IND AS 19 - Employee Benefits

Employee Benefits - Defined Contribution Plan National Pension Scheme:

RailTel pays an amount equal to 10% of Basic pay DA of the eligible employees in National pension scheme. Amount for FY 2023-24 is '' 623 Lakhs.

Provident Fund:

Employee Benefits - Defined Benefit Plan

Gratuity

Leave Encashment

Post-Retirement Medical:

f >

Leave Encashment Note:

The following material developments in the inter-investigation period have led to a significant variation in the liability.

i) There has been an increase in the number of employees.

ii) The average salary over the period has increased.

iii) The leaves valued over the period has increased."

Due to accounting effect of merger with REL, Opening and closing balance of defined benefit obligation/definec benefit liability, amount recognized in OCI outside P&L statement does not match

18. Disclosure in respect of Indian Accounting Standard (Ind AS) 20 "Accounting for Government Grants and disclosure of Government Assistance":

Grant/Subsidy on NE Project:

1. The Company had undertaken projects of NE-1 and NE-2 with a total capital outlay of ''45125 Lakhs for which anticipated subsidy of Universal Service Obligation Fund of Department of Telecommunication, Government of India was pegged at '' 38800 Lakhs and net cash outflow of '' 6325 Lakhs. Against this, the Company has incurred total capital expenditure of ''29371 Lakhs (Net of Recovery) out of which material of an amount of ''2718 lakhs have been transferred to other projects/regions. Company has received subsidy of ''3146 Lakhs with a net cash outflow of ''23507 Lakhs up to 31.03.2024. In the opinion of the management, the Company has complied with all the conditions set out for the subsidy and accordingly, there is no liability to refund the subsidy already received."

2. During the period ended 31.03.24, depreciation of '' 497 Lakhs (March''23 - ''767 lakhs) have been charged to Statement of Profit and Loss due to capitalization and accordingly impact of amortization of subsidy is recognized in Statement of Profit and Loss for ''129 Lakhs (March''23 -''151 lakhs) in proportion to depreciation which is shown under the head other operating revenue."

Grant/Subsidy on Rural Wi-Fi:

The Company had received Rural Wi-Fi Subsidy amounting to ''1466 lakhs up to 31.03.2024 from Department of Telecommunication (DoT-USOF) for installation of Wi-Fi in rural areas. An amount of ''1513 lakhs have been capitalized up to 31.03.2024 on account of partial commissioning of wi-fi services at the stations. The Company has amortized an amount of ''182 lakhs out of the subsidy received in proportion to the depreciation on assets capitalized and same has been recognized under the head other operating revenue.

20. IND-AS - 24: Related party disclosures

i) Government Related entities : The Company is a Central Public Sector Enterprise (CPSE) under the Ministry of Railways. The Company is controlled by Government of India (GOI), by holding 72.84 % of equity shares in the name of President of India as at 31st March, 2024. Pursuant to Para 25 and 26 of Ind AS 24, entities over which the same government has control or joint control of, or significant influence, then the reporting entity and other entities shall be regarded as related parties. Transactions with these parties are carried out at market terms at arm length basis. The company has applied the exemption available for government related entities and have made limited disclosures in the financial statements.

22 Disclosure as per Ind AS 36 and 113: Impairment of Assets, Fair Value Measurement

Based on an impairment study, the Company has recognized the impairment loss amounting ''1072 lakhs (March''23 - '' 863 lakhs) during the current year in statement of profit and loss for NE Project. This project was halted for the long time due to difficult working conditions in north eastern region and various other reasons. The part of the project is currently accounted under the capital work in progress and contains mainly the plant and machinery. Hence, company has assessed and recognized the impairment loss on the project. Out of the total impairment loss as at 31.03.2024 of '' 10247 lakhs (as at 31.03.23''9175 Lakhs), Impairment loss of ''4313 Lakhs pertains to the assets totally damaged and no future economic benefits are expected from these assets. Impairment loss have been calculated by taking the whole project as "Cash Generating Unit".

Recoverable amount has been calculated as per Ind AS 36 and 113. Recoverable amount is calculated as the higher of an asset''s fair value less costs of disposal and its value in use.

However, the Company will continue review and monitor the impairment assessment at every subsequent reporting period based on comprehensive review of further information that may be available during such reporting periods as required by Ind AS.

23 Disclosures as required by IND AS 37: Provisions, Contingent Liabilities and Contingent Assets

a. Provisions are recognized in respect of obligations, based on the evidence available, and wherever their existence on the Balance Sheet date is considered probable.

b. Contingent liabilities:

Contingent liabilities are determined based on available information. These liabilities are not provided for and are disclosed by way of notes on accounts.

Counter claim of the Company is '' 57924 Lakh (PY-Nil) in arbitration.

* Hon''ble Supreme Court passed an order dated 11.06.2020 wherein it was held that definition of AGR as per the licenses given to the Public Sector Undertaking (PSUs) is different than the definition of AGR as per Universal Access Service License (UASL) given to other network service providers. It was also upheld that the Hon''ble Supreme Court Judgement dated 24.10.2019 never dealt with the issue of PSUs as their agreements are quite different and therefore, the judgement held on AGR issue could not have been made the basis for raising the demand against Public Sector Undertaking as they are not in the actual business of providing mobile services to the general Public. The Company has filed an application to Ministry of Railways for settlement of the dispute through administrative Mechanism for resolution of CPSE dispute (AMRCD). Department of public enterprises (DPE) wide its letter dated 10.02.2023 has notified the committee of secretaries for setttlement of disputes. The same is under active consideration of AMRCD. considering the case in AMRCD, the amount has been shown under contingent liability.

Financial Risk Management

The Company has constituted Risk Management Committee in line with the requirement of Regulation 21 of the SEBI (LODR) Regulations, 2015 (as amended).

The role and responsibilities of Risk Management Committee is in line with the provisions of Regulation 21 of the SEBI (LODR) Regulations, 2015.

Risk Management frame work of the company is as follows:-

a. Apex level Risk Management committee

b. Functional Risk Management Committee

The Company has exposure to the following risk from its use of financial instruments: -

1. Credit Risk

2. Liquidity Risk

3. Market Risk

4. Project Risk

5. Insurable Risk

1. Credit Risk

Exposure to Credit Risk

In the current year, Company used expected credit loss model to assess the impairment loss or gain. The Company has used a practical expedient by computing the expected credit loss allowance for trade receivables based on a provision matrix. The provision matrix considers historical credit loss experienced and adjusted for forwardlooking information. The expected credit loss allowance is based on ageing of the days the receivables are due. The trade receivables which share the similar credit risk characteristics have been taken into the one bucket. Hence, company has divided the trade receivable into two categories as follows:

â¢ Government & PSU Customers

â¢ Private Customers

The company has rationalised the estimate of expected credit loss as per Ind AS-109, which has resulted into reduction of Expected credit loss provision of '' 1,505 Lakhs and corresponding increase in profit before tax.

2. Liquidity Risk:

Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated with its financial liabilities that are settled by delivering cash or another financial asset. The Company''s approach to manageing liquidity is to ensure, as far as possible, that it will always have sufficient liquidity to meet its liabilities when due, under normal and stressed conditions, without incurring unacceptable losses or risking damage to the Company reputation, typically the Company ensures that it has sufficient cash on demand to meet expected operational expenses, servicing of financial obligations.

3. Market Risk:

4. Project Risk:

5. Insurable Risk:

6. Capital Management

26 IND AS 115 - Revenue from Contracts with Customers Disaggregation of Revenue

* Includes trade receivable of '' 4278 lakhs recoverable from a customer out of which '' 2638 lakhs is disputed by the customer and management is of the opinion that it is fully recoverable. However, due to significant increase in credit risk, in addition to the ECL as per Ind AS requirement, the company has made additional provision under ECL in respect of outstanding for more than 3 years taking the underlying obligation into consideration on this project. Further, the Company has also claimed an amount of '' 2666 lakhs towards SLA deduction and interest for delayed payment. However, the same has not been recognized in the books of accounts on conservative basis as per Ind AS-115. Company has filed an application to Ministry of Railways for settlement of the dispute through administrative Mechanism for resolution of CPSE dispute (AMRCD). The same is under active consideration of AMRCD.

Other Disclosure-

a) There are no significant restrictions or covenants imposed by the leases.

b) There are no lease pending commencement to which the Company has committed as at year ended March 31,2024.

c) The incremental borrowing rate considered is the SBI MCLR rate at the lease commencement date for new leases and April 1st, 2019 for pre-existing leases except NOIDA Land lease where there is inbuilt coupon rate in the future financial obligation.

28 Other Disclosures -

a) The Company has been offering NLD Services, infrastructure services (Dark Fibers, Tower space and co-location etc.) under IP-I registration, ILD and Internet services under unified license to its customers under respective operating lease.

b) The Company has entered into a non-cancellable long-term lease arrangement to provide optical fiber on indefeasible right of use (IRU) basis. The lease rental receivable proportionate to actual kilometers accepted by the customer is credited to the statement of profit and loss on a straight - line basis over the lease term. Due to the nature of the transaction, it is not possible to compute gross carrying amount, depreciation for the period and accumulated depreciation of the asset given on operating lease as of September, 2020 and accordingly respective disclosures required by IND AS 116 are not provided.

30 (a) No funds have been advanced or loaned or invested (either from borrowed funds or securities premium or any

other sources or kind of funds) by the company to or in any person(s) or entity(ies), including foreign entities (''the intermediaries''), with the understanding, whether recorded in writing or otherwise, that the intermediary shall, whether, directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the company (''the Ultimate Beneficiaries'') or provide any guarantee, security or the like on behalf the Ultimate Beneficiaries.

31 During the Financial Year:

i The company does not hold any Immovable Property for which Title deed is not in the name of the company.

ii Revaluation of property, plant & equipment is as per disclosure note 15 (vi)

iii The company does not hold any Benami property under the Benami Transactions (Prohibitions) Act, 1988 (45 of 1988) and the rules made thereunder.

iv The company has not been declared wilful defaulter by any bank or financial institution or other lender.

v The company does not have any charges or satisfaction yet to be registered with ROC beyond the statutory period.

vi The company do not have any investment in step down subsidiaries. Hence the Companies (Restriction on number of layers) Rules, 2017 are not apllicable.

vii The company has complied with all the terms of the approved scheme(s) of arrangements for the amalgamation of RailTel Enterprises Limited (Transferor Company) with and into RailTel Corporation of India Limited (Transferee Company) as approved by MCA (Ministry of Corporate Affair) vide approval order dated 27.09.2023.

viii The company does not have any undisclosed income in the tax assessments under the Income tax Act, 1961.

ix The company has not traded in crypto currency or virtual currency.

33. The Board of Directors in its meeting dated 02.05.2024 have approved the company''s financial statements for the FY 2023-24. CMD and/or Director Finance of the company is authorised by the Board to make necessary correction/modification/alteration in the financial statements on behalf of the Board.

34. Merger of RailTel Enterprises Limited (wholly owned subsidiary company):

(1) Pursuant to the Scheme of Amalgamation between erstwhile RailTel Enterprises Limited (REL) with Railtel Corporation of India Limited (the Company) under Sections 230 to 232 of the Companies Act, 2013 sanctioned by Ministry of Corporate Affairs on 31 August, 2023, all assets and liabilities of REL are transferred and vested in the Company with appointed date of October 1,2022.

(2) The amalgamation has been accounted in the books of account of the company in accordance with IND AS 103 ''Business Combination'' read with Appendix C to IND AS 103 specified u/s 133 of the Act, read with the Companies (Accounting Standards) Amendment Rules, 2016. Accordingly, the accounting treatment has been given as follows:

- All the asset, liabilities & reserves of REL have been recognised by the company at their carrying amounts

- Inter-Company balances & transactions between REL & the company have been eliminated.

- 1,00,00,000 equity share of '' 10 each fully paid in REL held as investment by the company stands cancelled.

- Post merger credit balance of ''1239.63 Lakh in Retained Earnings of REL has been transferred to Retained Earnings of the company.

- The financial information in the financial statements in respect of prior period have been restated as if business combination had occurred during the preceding period in the financial statements as the appointed date of merger is October 1, 2022.

(3) Pursuant to the scheme of amalgamation, the authorised share capital of REL of '' 5000 Lakh has been added to authorised share capital of the company. Paid up share capital of REL of '' 1000 Lakh is extinguised (eliminated) with Investment of the company.

Mar 31, 2023

Right, Preference and restriction attached to shares

The equity share are the only class of Share capital having par value of Rs 10 per share. Every holder of equity share present at a meeting in person or by a proxy, is entitled to one vote, and upon a poll each share is entitled to one vote.

1 These Financial Statements are presented in Indian Rupees (INR) which is the Company''s functional currency.

2 Figures have been rounded off to nearest Rupees in lakhs. Previous year figures have, wherever necessary, been rearranged/regrouped to conform the presentation of the Current year.

3 License fee to DoT and Railways Revenue Share computed at prescribed rate of 8% and 7% respectively.

4 Employees benefit expenses and administrative expenses are apportioned to project works based on 2% and 1% respectively of expenses incurred on projects.

5 The Current Assets/ Liabilities have been determined if they are receivable / payable within 1 year from the date of Balance Sheet. Rest has been treated as Non-Current.

6 Self-Insurance Reserve has been provided @ 0.12% p.a. on the Gross Block of Property, Plant & Equipment''s installed at PoP''s and customer premises to meet future losses which may arise from uninsured risks.

Para-wise disclosure of Applicable Indian Accounting Standards are as below:

111. Financial Instruments FINANCIAL ASSETS Trade receivables

As per Ind AS 109, Company is following simplified approach of expected credit loss model for recognizing the allowance for doubtful debts.

Security Deposits

Investments

Company makes investment in liquid mutual funds which are fair valued based on the unit price prevailing as at the period end and consequent gain/loss is taken to the profit and loss A/c.

FINANCIAL LIABILITIES

Security Deposits, Retention Money and Earnest Money Deposit are classified as Financial Liabilities.

12 IND AS 2: Inventories

i The total carrying amounts of inventories as at 31.03.2023 is ''92 Lakhs ( March''22 - '' 94 Lakhs) as shown in Note No 9 of Balance Sheet.

ii There is no reversal or any write-down that is recognized as a reduction in the amounts of inventories recognized as expense in the year and presented in cost of sales.

iii Nothing out of carrying amounts of inventories has been pledged as security for liabilities.

13 Disclosures in respect of IND AS 8: Acounting Policies, Changes In Accounting Estimates And Errors

Reconciliation between the average effective tax rate and the applicable tax rate -

Effective tax rate is generally influenced by various factors, including differential tax rates, non-deductible expenses, provisions, and other tax deductions. The change in effective tax rate from Mar''2022 to Mar''2023 is mainly due to change in tax rates as tabulated here under:

15 Disclosures as required by Ind AS 16 - Property, Plant & Equipment & Ind AS 38 - Intangible Assets

i The depreciation / amortization has been charged at the straight-line method.

iii The useful life of all the PPE / Intangible Assets have been defined in the accounting policies.

iv A reconciliation of the carrying amount at the beginning and end of the period is as per Note No. 2 of Balance Sheet.

v No assets have been classified as held for sale in accordance with Ind AS 105.

vii No Capital expenses was incurred on Assets not owned by the Company during the period ended 31.03.2023.

viii There is no obsolete asset which has been so far held under CWIP/Fixed Asset.

ix Depreciation / amortization on all the PPE / Intangible assets have been disclosed separately.

x There is no restriction on title of PPE / Intangible Assets, and nothing has been pledged as security and liability.

xi The amount of contractual commitment for acquisition of PPE is '' 14522 lakhs (March''22 - '' 17004 Lakhs).

xiv There are no temporarily idle PPE / intangible assets.

xv '' 53890 (FY22- 41072) Lakhs Gross Carrying value of assets have been fully depreciated, but still are in use.

xvi During the reporting year Assets having Net Book Value of '' 20 Lakh (Gross Book Value 53 Lakhs) has been retired with sale proceeds of '' 6 Lakh and loss of Rs 14 lakh has been booked.

16 In terms of contractual Clause of agreement, if the customer terminates the services of the link during minimum subscription period, RailTel shall refund or adjust (against the future orders) the already paid IRU charges after deducting the termination penalty.

17 Disclosure Requirement as per IND AS 19 - Employee Benefits

Employee Benefits - Defined Contribution Plan National Pension Scheme:

RailTel pays an amount equal to 10% of Basic pay DA of the eligible employees in National pension scheme. Amount for FY 2022-23 is '' 530 Lakhs

Provident Fund:

Employee Benefits - Defined Benefit Plan Gratuity

Leave Encashment

Post-Retirement Medical:

Gratuity Note:

The closing net liability amount mentioned in Table XI of Section 9 reconciled with Zero difference.

The following material developments in the inter-investigation period have led to a significant variation in the liability.

i) There has been an increase in the number of employees due to outsourced employees covered under Employees gratuity scheme.

ii) The average salary over the period has decreased due to inclusion of outsourced employees.

Leave Encashment Note:

The closing net liability amount mentioned in Table XI of Section 9 reconciled with Zero difference.

The following material developments in the inter-investigation period have led to a significant variation in the liability.

"i) There has been an increase in the number of employees.

ii) The average salary over the period has increased.

iii) The leaves valued over the period has increased."

Grant/Subsidy on NE Project:

1. The Company had undertaken projects of NE-1 and NE-2 with a total capital outlay of '' 45125 Lakhs for which anticipated subsidy of Universal Service Obligation Fund of Department of Telecommunication, Government of India was pegged at '' 38800 Lakhs and net cash outflow of '' 6325 Lakhs. Against this, the Company has incurred total capital expenditure of '' 29520 Lakhs (Net of Recovery) out of which material of an amount of '' 2707 lakhs have been transferred to other projects/regions. Company has received subsidy of '' 3146 Lakhs with a net cash outflow of ''23667 Lakhs up to 31.03.2023. In the opinion of the management, the Company has complied with all the conditions set out for the subsidy and accordingly, there is no liability to refund the subsidy already received."

2. During the period ended 31.03.23, depreciation of ''767 Lakhs (March''22 - ''1074 lakhs) have been charged to Statement of Profit and Loss due to capitalization and accordingly impact of amortization of subsidy is recognized in Statement of Profit and Loss for '' 151 Lakhs (March''22 - '' 104 lakhs) in proportion to depreciation which is shown under the head other operating revenue"

Grant/Subsidy on Rural Wi-Fi:

The Company had received Rural Wi-Fi Subsidy amounting to '' 1437 lakhs up to 31.03.2023 from Department of Telecommunication (DoT-USOF) for installation of Wi-Fi in rural areas. An amount of '' 1513 lakhs have been capitalized up to 31.03.2023 on account of partial commissioning of wi-fi services at the stations. The Company has amortized an amount of '' 208 lakhs out of the subsidy received in proportion to the depreciation on assets capitalized and the same has been recognized under the head other operating revenue.

20. IND-AS - 24: Related party disclosures Government Related Entities:

The Company is a Central Public Sector Enterprise (CPSE) under the Ministry of Railways. The Company is controlled by Government of India (GOI), by holding 72.84 % of equity shares in the name of President of India as at 31st March, 2023. Pursuant to Para 25 and 26 of Ind AS 24, entities over which the same government has control or joint control of, or significant influence, then the reporting entity and other entities shall be regarded as related parties.Transactions with these parties are carried out at market terms at arm length basis. The company has applied the exemption available for government related entities and have made limited disclosures in the financial statements.

Names of related parties and their relationship:

22 Disclosure as per Ind AS 36 and 113: Impairment of Assets, Fair Value Measurement

Based on an impairment study, the Company has recognized the impairment loss amounting '' 863 lakhs (March''22 - '' 1224 lakhs) during the current year in statement of profit and loss for NE Project. This project was halted for the long time due to difficult working conditions in north eastern region and various other reasons. The part of the project is currently accounted under the capital work in progress and contains mainly the plant and machinery. Hence, company has assessed and recognized the impairment loss on the project. Out of the total impairment loss as at 31.03.2023 of '' 9175 lakhs (as at 31.03.22 '' 8313 Lakhs), Impairment loss of '' 4709 Lakhs pertains to the assets totally damaged and no future economic benefits are expected from these assets. Impairment loss have been calculated by taking the whole project as "Cash Generating Unit".

Recoverable amount has been calculated as per Ind AS 36 and 113. Recoverable amount is calculated as the higher of an asset''s fair value less costs of disposal and its value in use.

23 Disclosures as required by IND AS 37: Provisions, Contingent Liabilities and Contingent Assets

a. Provisions are recognized in respect of obligations, based on the evidence available, and wherever their existence on the Balance Sheet date is considered probable.

b. Contingent liabilities:

Contingent liabilities are determined based on available information. These liabilities are not provided for and are disclosed by way of notes on accounts.

(a). Claim against the Company not acknowledged as debts:							('' in Lakhs)
	Particulars	Service Tax	Income Tax	VAT	GST	Arbitraition/ Court Cases	DOT	Total
	Carrying Amount at the beginning of the year 01.04.2022	845	3,296	96	1,590	13,308	537	19,672
	Additions during the year	-	8	1,925	-	4,585	29156*	35,674
	Amount adjusted during the year	-	-309	-104	-273	-75	-	-761
	Carrying amount at the end of the year 31.03.2023	845	2,995	1,917	1,317	17,818	29,693	54,585

* Hon''ble Supreme Court passed an order dated 11.06.2020 wherein it was held that definition of AGR as per the licenses given to the Public Sector Undertaking (PSUs) is different than the definition of AGR as per Universal Access Service License (UASL) given to other network service providers. It was also upheld that the Hon''ble Supreme Court Judgement dated 24.10.2019 never dealt with the issue of PSUs as their agreements are quite different and therefore, the judgement held on AGR issue could not have been made the basis for raising the demand against Public Sector Undertaking as they are not in the actual business of providing mobile services to the general Public . The Company has filed an application to Ministry of Railways for settlement of the dispute through administrative Mechanism for resolution of CPSE dispute (AMRCD). Department of public enterprises (DPE) wide its letter dated 10.02.2023 has notified the committee of secretaries for setttlement of disputes. considering the case in AMRCD, the amount has been shown under contingent liability.

(b) Bank Guarantees given by the Company to Customers/Government as on 31.03.2023 is '' 37704 lakhs (March''22 - '' 31510 lakhs).

(c)	Capital Commitments ('' in lakhs)
	Particulars	March''23	March''22
	Estimated amounts of contracts remaining to be executed on capital account	14,522	17,004

24 Disclosure Requirements as per IND AS 108 - Operating Segments

The Company publishes this financial statement along with the consolidated financial statements, in accordance with Ind AS 108, Operating Segments, the Company has disclosed the segment information in the consolidated financial statements.

26 Disclosure as required by Ind AS 107, Ind AS 109 & Ind AS 113

Valuation techniques and process used to determine fair values

i. The carrying value of financial assets and liabilities with maturity less than 12 months are considered to be representative of their fair value.

ii. Fair value of other financial assets and liabilities carried at amortized cost is determined by discounting of cash flows using discount rate.

iii. A discount rate of 5.1% (SBI Rate) has been used for balances as on 31/03/2023.

Unbilled dues are provided for based on mercantile accounting system and are not due for payment as at the close of financial year.

* Age analysis is based on date of transaction as payment milestones are not yet achieved as per contractual terms.

Financial Risk Management

The Company has constituted Risk Management Committee in line with the requirement of Regulation 21 of the SEBI (LODR) Regulations, 2015 (as amended).

The role and responsibilities of Risk Management Committee is in line with the provisions of Regulation 21 of the SEBI (LODR) Regulations, 2015.

Risk Management frame work of the company is as follows:-

a. Apex level Risk Management committee

b. Functional Risk Management Committee

The Company has exposure to the following risk from its use of financial instruments: -

1. Credit Risk

2. Liquidity Risk

3. Market Risk

4. Project Risk

5. Insurable Risk

1. Credit Risk:

Exposure to Credit Risk

â¢ Government & PSU Customers

â¢ Private Customers

The company has rationalised the estimate of expected credit loss as per Ind AS-109, which has resulted into reduction of Expected credit loss provision of '' 4,498 Lakhs and corresponding increase in profit before tax.

2. Liquidity Risk:

Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated with its financial liabilities that are settled by delivering cash or another financial asset. The Company''s approach to manageing liquidity is to ensure, as far as possible, that it will always have sufficient liquidity to meet its liabilities when due, under normal and stressed conditions, without incurring unacceptable losses or risking damage to the Company reputation, typically the Company ensures that it has sufficient cash on demand to meet expected operational expenses, servicing of financial obligations.

3. Market Risk:

4. Project Risk:

A project risk is an uncertain event that may or may not occur during a project. There is risk of time overrun/cost overrun which is mitigated by ensuring time schedule for each activity of the project execution based on milestone and monitoring based on cost estimate..

5. Insurable Risk:

6. Capital Management

27 1. IND AS 115 - Revenue from Contracts with Customers Disaggregation of Revenue

29 Other Disclosure-

a) There are no significant restrictions or covenants imposed by the leases.

b) There are no lease pending commencement to which the Company has committed as at year ended March 31, 2023.

Other Disclosures -

31 COVID -19 Impact & Assessment

The Covid-19 pandemic has resulted in economic slowdown throughout the world including India. The Company has evaluated the impact of this pandemic on its business operations and financial position while preparing these financial statements and has considered internal and external information for making this evaluation. The Company''s assessment is based on its current estimates while assessing the provision towards employee benefits and assessing the realizability of trade receivables and other financial assets. The Company has also assessed the impact of this whole situation on its capital and financial resources, profitability, liquidity position, internal financial reporting and controls etc. However, Covid situation in india has improved significantly at the end of financial year, resulting in normailization of business activity to the great extent. However, the impact assessment of COVID-19 is a continuing process given the uncertainties associated with its nature and duration. The Company will continue to closely monitor any material changes to future economic conditions.

32 Benami Property held : N.A

33 Willful Defaulter : N.A

34 Utilization of borrowed funds and share premium : N.A

35 Registration of Charges or satisfaction with Registrar of Companies (ROC) : N.A

36 Compliance with number of layers of companies : N.A

37 Compliance with approved scheme(s) of arrangements : N.A

38 Details of Crypto Currency or virtual currency : N.A

40 The Board of Directors in its meeting dated 17.05.2023 have approved the company''s financial statements for the FY22-23. CMD and /or Director Finance of the company is authorised by the Board to make necessary correction/modification/alteration in the financial statements on behalf of the Board.

41 Board of Holding Company i.e. "Railtel Corporation of India Limited" and board of subsidiary Company i.e."Railtel Enterprises Ltd." has approved the merger of REL with RCIL. Same is pending for approval with NCLT and once approved by NCLT it will be merged with the Holding Company.

Mar 31, 2021

Structure of Shares as above remain unchanged during last five years and no bonus share are issued since incorpoartion of the Company

b. Right, Preference and restriction attached to shares

d. Aggregate number of shares issued for consideration other than cash in last five years - NIL

* The President of India acting through the Ministry of Railways has disinvested 87153369 equity shares of the company of facevalue of ? 10 each by way of initial public offering through an offer for sale.The equity shares of the company were listed on the stock exchanges (i.e. BSELimited (âBSEâ) and National Stock Exchange of India Ltd. (âNSEâ) w.e.f.26.02.2021.

*Deferred Revenue include advance income against IRU lease for providing telecom services under licenses taken.

**It represents money received from BBNL for carrying out project work relating to laying of OFC.

*** Refer item no. 19 of Note no. 43

# Advances from Railways represent advance received towards execution of works from Railways.

1. These Financial Statements are presented in Indian Rupees (INR) which is the Companyâs functional currency.

2. Figures have been rounded off to nearest Rupees in lakhs. Previous year figures have, wherever necessary, been rearranged/regrouped to conform the presentation of the Current year.

3. License fee to DoT and Railways Revenue Share computed at prescribed rate of 8% and 7% respectively.

4. Employees benefit expenses and administrative expenses are apportioned to project works based on 5% and 3% respectively of expenses incurred on projects.

5. The Current Assets/ Liabilities have been determined if they are receivable / payable within 1 year from the date of Balance Sheet. Rest has been treated as Non-Current.

6. Self-Insurance Reserve has been provided @ 0.12% p.a. on the Gross Block of Property, Plant & Equipmentâs installed at PoPâs and customer premises to meet future losses which may arise from un-insured risks.

7. Purchase of leasehold Building at East Kidwai Nagar for 30 years term for creation of Corporate Office. Possession has been given by the lessor, but lease deed is yet to be executed. The total cost capitalized for purchase of the building is ? 11299 lakhs as at 31.03.2021.

12. Financial Instruments

FINANCIAL ASSETS Trade receivables

As per Ind AS 109, Company is following simplified approach of expected credit loss model for recognizing the allowance for doubtful debts.

Security Deposits

There are some deposits which are being kept with government authorities e.g. commercial taxes department, Railways, Electricity etc. which are considered as financial asset. A period of 10 years has been assumed for discounting these items.

Investments

Company makes investment in liquid mutual funds which are fair valued based on the unit price prevailing as at the period end and consequent gain/loss is taken to the profit and loss A/c.

FINANCIAL LIABILITIES

Security deposits, Retention Money & Earnest Money Deposit

Security Deposits, Retention Money and Earnest Money Deposit are classified as Financial Liabilities.

13. IND AS 2: Inventories

1. The total carrying amounts of inventories as at 31-March-2021 is ? 121 Lakhs (Marchâ20 - ? 49 Lakhs) as shown in Note no 9 of Balance Sheet.

2. There is no reversal or any write-down that is recognized as a reduction in the amounts of inventories recognized as expense in the year and presented in cost of sales.

3. Nothing out of carrying amounts of inventories has been pledged as security for liabilities.

14. Disclosures in respect of IND AS 8: âACOUNTING POLICIES, CHANGES IN ACCOUNTING ESTIMATES AND ERRORS

16. Disclosures as required by IND AS 16 - Property, Plant & Equipment & IND AS 38 - Intangible

Assets

a) The depreciation / amortization has been charged at the straight-line method.

b) Company assessed the impairment of Assets and is of the opinion that since the Company is going concern and there is no indication exist for the impairment of the PPE except in case of NE project for which disclosure is given under Ind AS-36.

c) The useful life of all the PPE / Intangible Assets have been defined in the accounting policies

d) A reconciliation of the carrying amount at the beginning and end of the year is as per note no 2 of Balance Sheet.

e) No assets have been classified as held for sale in accordance with IND AS 105.

f) There is no increase or decrease on account of revaluation and from impairment loss recognized or reversed in other comprehensive income in accordance with IND AS 36

g) No Capital expenses was incurred on Assets not owned by the Company during the year ended 31.03.2021.

h) There is no obsolete asset which has been so far held under CWIP/Fixed Asset.

i) Depreciation / amortization on all the PPE / Intangible assets have been disclosed separately.

j) There is no restriction on title of PPE / Intangible Assets, and nothing has been pledged as security and liability.

k) The amount of contractual commitment for acquisition of PPE is ? 7319 lakhs (Marchâ20 - ? 6269 Lakhs).

l) There is no amount to be received on account of compensation from third party for items of PPE / Intangible assets that were impaired, lost or given to Company that is to be recognized in the statement of profit & Loss account.

m) Entire depreciation / amortization has been recognized in the statement of Profit & Loss account; nothing has been charged to cost of other assets. Accumulated depreciation at the end of the year has been shown separately.

n) There are no temporarily idle PPE / intangible assets.

o) ? 33289 Lakhs Gross Carrying value of assets have been fully depreciated, but still are in use.

p) During the reporting Year Assets having Net Book Value of ? 5 Lakh (Gross Book Value 6812 Lakhs) has been retired with sale proceeds of ? 3 Lakh and loss of ? 2 lakh has been booked.

17. In terms of contractual Clause of agreement, if the customer terminates the services of the link during minimum subscription period, RailTel shall refund or adjust (against the future orders) the already paid IRU charges after deducting the termination penalty. Accordingly, RailTel has deducted the termination penalty of ? 347 lakhs during the FY 2019-20 and has been recognized as other operating revenue.

18. Disclosure Requirement as per IND AS 19 - Employee Benefits Employee Benefits - Defined Contribution

Pension:

RailTel will pay an amount equal to 10% of Basic pay DA of the eligible employees.

Provident Fund:

All regular employees of the Company (excluding those on deputations) are entitled to receive benefits under the Provident Fund, which is a defined contribution plan. Both the employee and employer make monthly contribution to the plan at a pre-determined rate (presently 12%) of the employeesâ salary consisting of Basic pay and Dearness allowance. These contributions are made to the fund administered and managed by Provident Fund Commissioner. The contributions of PF of the employee on deputation are made to the funds of their parent department

Employee Benefits - Defined Benefit Gratuity

Leave Encashment

Post-Retirement Medical:

Post-Retirement Medical is provided for based on actuarial valuations, as at the Balance Sheet date.

The following tables summaries 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 the above defined benefit plan.

Grant/Subsidv on NE Project:

1. The Company had undertaken projects of NE-1 and NE-2 with a total capital outlay of ? 45125 Lakhs for which anticipated subsidy of Universal Service Obligation Fund of Department of Telecommunication, Government of India was pegged at ? 38800 Lakhs and net cash outflow of ? 6325 Lakhs. Against this, the Company has incurred total capital expenditure of ? 29858 Lakhs (Net of Stock Transfer amounting to ? 1521 lakhs to other projects and other regions). Company has received subsidy of ? 3146 Lakhs with a net cash outflow of ? 26712 Lakhs up to 31.03.2021. In the opinion of the management, the Company has complied with all the conditions set out for the subsidy and accordingly, there is no liability to refund the subsidy already received.

2. During the year ended 31.03.2021, depreciation of ? 472 Lakhs (Marchâ20 - ? 472 lakhs) have been charged to Statement of Profit and Loss due to capitalization and accordingly impact of amortization of subsidy is recognized in Statement of Profit and Loss for ? 119 Lakhs (Marchâ20 - ? 119 lakhs) in proportion to depreciation which is shown under the head other operating revenue.

Grant/Subsidv on Rural Wi-Fi:

The Company had received Rural Wi-Fi Subsidy amounting to ? 1256 lakhs up to 31.03.2021 from Department of Telecommunication (DoT-USOF) for installation of Wi-Fi in rural areas. An amount of ? 1466 lakhs have been capitalized up to 31.03.2021 on account of partial commissioning of wi-fi services at the stations. The Company has amortized an amount of ? 183 lakhs out of the subsidy received in proportion to the depreciation on assets capitalized and the same i.e. ? 183 lakhs (Marchâ20 - ? 94 lakhs) have been recognized under the head other operating revenue.

23. Disclosure as per Ind AS 36 and 113: Impairment of Assets, Fair Value Measurement

Based on an impairment assessment, using replacement cost approach with applicable depreciation till date of Balance sheet (The replacement cost has been determined based on market-based data), the Company has recognized the impairment loss amounting ? 2158 lakhs (PY - ? 4930 lakhs shown under exceptional items) during the year ending 31^st March 2021 in statement of profit and loss for NE Project. The said amount includes amount of ? 794 lakhs (Marchâ20 - ? 3962 lakhs) relating to assets totally damaged and no future economic benefits are expected from these assets. This project was halted for the long time due to difficult working conditions in north eastern region and various other reasons. This project is currently accounted under the capital work in progress and contains mainly the plant and machinery. Assets constructed under the project become idle for the long time. Hence, company has assessed and recognized the impairment loss on these projects. Out of the total impairment loss as at 31.03.2021 of ? 7088 lakhs, Impairment loss of ? 4756 Lakhs pertains to the assets totally damaged and no future economic benefits are expected from these assets. Impairment loss have been calculated by taking the whole project as âCash Generating Unitâ.

Recoverable amount has been calculated as per Ind AS 36 and 113. The âfair value less cost of salesâ is taken as recoverable amount as computation of âvalue in useâ is not practicable. To compute the fair value, company have used the valuation technique of âcost approachâ. Under the cost approach, âthe amount that would be required currently to replace the service capacity of an assetâ is taken to calculate the fair value. Obsolescence on account of technological, economic and physical deterioration is also adjusted. Unobservable inputs have been taken under the third level of fair value hierarchy to compute the fair value as per Ind AS 36 and 113. Such inputs are latest cost of purchase of similar assets, obsolescence rates etc. Further, company have accounted these assets under the âTelecom Servicesâ segment.

Based on the assessment of the management and the alternative business plans as envisaged, the management confirms that no further provision is required towards damaged assets as at the reporting date. However, the Company will continue review and monitor the impairment assessment at every subsequent reporting period based on comprehensive review of further information that may be available during such reporting periods.

Honâble Supreme Court passed an order dated 11.06.2020 wherein it was held that definition of AGR as per the licenses given to the Public Sector Undertaking (PSUs) is different than the definition of AGR as per Universal Access Service License (UASL) given to other network service providers. It was also upheld that the Honâble Supreme Court Judgement dated 24.10.2019 never dealt with the issue of PSUs as their agreements are quite different and therefore, the judgement held on AGR issue could not have been made the basis for raising the demand against Public Sector Undertaking as they are not in the actual business of providing mobile services to the general Public and hence the DoT was asked to reconsider the demand. Accordingly, DoT has made its submission before Honâble Supreme Court that it has decided to withdraw the demands already raised on PSUs which was considered by Honâble Supreme Court. Accordingly, the Company has not considered any contingent liability in this regard as on 31.03.2021.

24.1(b) Bank Guarantees given by the Company to Customers/Government as on 31.03.2021 is ? 18854 lakhs (Marchâ20 - ? 17028 lakhs).

27. Disclosure as required by IND AS 107, IND AS 109 & IND AS 113

Valuation techniques and process used to determine fair values

i. The carrying value of financial assets and liabilities with maturity less than 12 months are considered to be representative of their fair value.

ii. Fair value of other financial assets and liabilities carried at amortized cost is determined by discounting of cash flows using discount rate.

iii. A discount rate of 3.70% (SBI Rate) has been used for balances as on 31/03/2021.

Financial Instrument

Financial Instruments by Category

Financial Risk Management

The Company has exposure to the following risk from its use of financial instruments: -

1. Credit Risk

2. Liquidity Risk

3. Market Risk

The Company has established a risk management policy to identify and analyze the risks faced by the Company. The audit committee broadly oversees how management monitors compliances with the Companyâs risk management policies and procedures. The audit committee is assisted in its oversight role by Internal Audit. Internal Audit undertakes reviews of risk management controls and procedures, the results of which are reported to the Audit Committee.

1. Credit Risk:

Credit risk is the risk of financial losses to the Company if a customer or counterparty to a financial instrument fails to meet its contractual obligation and arises principally from the Companyâs trade receivables, employee loans and other activities that are in the nature of leases.

The Company assesses on a forward-looking basis the expected credit loss associated with its financial assets carried at amortized cost. The impairment methodology applied depends on whether there has been a significant increase in credit risk. For trade receivables, the Company follows âsimplified approachâ for recognition of impairment loss and always measures the loss allowance at an amount equal to lifetime expected credit losses. Further, for the purpose of measuring lifetime expected credit loss allowance for trade receivables, the Company has used a practical expedient as permitted under Ind AS 109 i.e. expected credit loss allowance as computed based on historical credit loss experience. Company have used the methodology of provisional matrix as per Ind AS 109 to compute the historical loss rate and adjust the impact of macroeconomic factors into the historical loss rate to compute the forward-looking rates.

Exposure to Credit Risk

â¢ Government and PSU Customers

â¢ Telecom and Others

Loss rates are computed by taking last 5 years roll rates and adjust the impact of macroeconomic factors.

* The amount recoverable in respect of dues from one of the customer in respect of agreement dated 16^th September 2010 is being reconciled with the customer. Pending final reconciliation /settlement with customer, the dues outstanding for more than three years amounting to ? 3572 Lakhs has been provided for under expected Credit loss, as a prudent Accounting practices.

Similarly, other receivables from Govt./ PSU above 3 years have been fully provided for where the realization is uncertain.

The company does not hold any collateral or other enhancements to cover its credit risks associated with its trade receivables.

2. Liquidity Risk:

Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated with its financial liabilities that are settled by delivering cash or another financial asset. The Companyâs approach to managing liquidity is to ensure, as far as possible, that it will always have sufficient liquidity to meet its liabilities when due, under normal and stressed conditions, without incurring unacceptable losses or risking damage to the Company reputation, typically the Company ensures that it has sufficient cash on demand to meet expected operational expenses, servicing of financial obligations.

3. Market Risk:

4. Capital Management

28. IND AS 115 - Revenue from Contracts with Customers

Disaggregation of Revenue

* Includes trade receivable of ? 4278 lakhs recoverable from a customer out of which ? 2638 lakhs is disputed by the customer and management is of the opinion that it is fully recoverable. However, due to significant increase in credit risk, in addition to the ECL as per Ind AS requirement, the company has made additional provision under ECL in respect of outstanding for more than 3 years taking the underlying obligation into consideration on this project. Further, the Company has also claimed an amount of ? 2666 lakhs towards SLA deduction and interest for delayed payment. However, the same has not been recognized in the books of accounts on conservative basis as per Ind AS-115. Company has filed an application to Ministry of Railways for settlement of the dispute through administrative Mechanism for resolution of CPSE dispute (AMRCD). The same is under active consideration of AMRCD.

** Includes amount of ? 865 lakhs pertaining to a project executed for a customer for which payment shall be made by the customer after their User Acceptance Test (UAT). However, work has been executed as per agreement. However, UAT is in progress and could not be completed due to pandemic situation.

# The company entered into a contract with a customer for providing Content on Demand (COD Services) on revenue sharing basis with an advance annual Minimum Guarantee fees vide LOA dated 14-01-2020. The revenue so generated by the company is to be shared in the ratio of 1:1 with the Railway Board. The customer paid 50% of the stipulated Annual minimum guarantee amount of Rs 31.50 Crores along with the performance guarantee for the payable balance amount. Due to Covid pandemic, train services were disrupted and the balance towards minimum guarantee fees has not been paid by the customer. The customer had requested for certain concession in terms of LOA which has not been approved by the Railway board vide its communication dated 03.06.2021. The company has recognized income only up to the 13.01.2021 (expiry of the first year) secured with valid Performance Bank guarantee, pending receipt of payment from customer and the same is booked under unbilled revenue. Accordingly, the company has also accounted for the amount payable to Railway board up to 13.01.2021.â

29. Ind AS 116 -Leases

A As a Lessee

Right of Use Assets Comprises of leased assets that do not meet the definition of Investment property.

b) The Company has entered into a non-cancellable long-term lease arrangement to provide optical fiber on indefeasible right of use (IRU) basis. The lease rental receivable proportionate to actual kilometers accepted by the customer is credited to the statement of profit and loss on a straight - line basis over the lease term. Due to the nature of the transaction, 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 Marchâ2021 and accordingly respective disclosures required by IND AS 116 are not provided.

30. Ministry of Railway (MoR) had entered into an MoU with RailTel Enterprises Ltd. (REL)- Subsidiary of the company on 24.03.2017, for installation of Video Surveillance System (VSS) at various stations across Pan India under Nirbhaya Fund. Subsequently, MoR entrusted the work of installation of Video Surveillance System

(VSS) at 6049 stations across Pan India, to the RCIL (Holding company). Total advance amount received by RailTel Enterprises Ltd. (REL) Subsidiary of the company from Railways has been remitted to the Company for execution of the project after adjusting the value of work executed by REL.

31. The Board of Directors in its meeting held on June 25, 2021 considered and recommended a final dividend @ 12% i.e. ? 1.20 per share aggregating to ? 3851 lakhs for the financial year 2020-21. This final dividend is in addition to Interim Dividend of ? 1 per share already paid by the Company for the financial year 2020-21. The final dividend is subject to approval of shareholders in the ensuing Annual General Meeting.

32. COVID -19 Impact & Assessment

The Covid-19 pandemic has already resulted in economic slowdown throughout the world including India. The second wave has impacted India immensely. The operations of the Company have not been significantly impacted following a nationwide lockdown by the Government of India.

The Company has evaluated the impact of this pandemic on its business operations and financial position while preparing these financial statements and has considered internal and external information for making this evaluation. The Companyâs assessment is based on its current estimates while assessing the provision towards employee benefits and assessing the realizability of trade receivables and other financial assets. The Company has also assessed the impact of this whole situation on its capital and financial resources, profitability, liquidity position, internal financial reporting and controls etc.

However, the impact assessment of Covid-19 is a continuing process given the uncertainties associated with its nature and duration. The Company will continue to closely monitor any material changes to future economic conditions.

33. New Accounting Standards not yet adopted by the Company

MCA notifies new standard or amendments to the existing standards. There is no such notification which would have been applicable from April 1, 2021.

34. New Amendments not yet adopted by the Company

On March 24, 2021, the MCA through a notification, amended Schedule III of the Companies Act, 2013. Key amendments relating to Division II which relate to companies whose financial statements are required to comply with Companies (Indian Accounting Standards) Rules 2015 are:

â¢ Lease liabilities should be separately disclosed under the head âfinancial liabilitiesâ, duly distinguished as current or non-current.

â¢ Current maturities of long-term borrowings should be disclosed separately within borrowings instead of earlier disclosure requirement under Other Financial Liabilities.

â¢ Certain additional disclosures in the statement of changes in equity due to prior period errors and restated balances at the beginning of the current reporting period.

â¢ Specified format for disclosure of shareholding of promoters.

â¢ Specified format for ageing schedule of trade receivables, trade payables, capital work-in progress and intangible asset under development.

â¢ Additional disclosures relating to Corporate Social Responsibility, undisclosed income and crypto or virtual currency.

â¢ Disclosure of specified ratios along with explanation for items included in numerator and denominator and explanation for change in any ratio in excess of 25% compared to preceding year.

^_''_''_)

â¢ If a company has not used funds for the specific purpose for which it was borrowed from banks and financial institutions, then disclosure of details of where it has been used.

â¢ Specific disclosure under âadditional regulatory requirementâ such as compliance with approved schemes of arrangements, compliance with number of layers of companies, title deeds of immovable property not held in name of company, loans and advances to promoters, directors, key managerial personnel and related parties and details of benami property held.

These amendments are applicable from April 1, 2021. The Company is currently evaluating the impact of these

amendment on the financial statements.

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