Notes to Accounts of Tamilnadu Telecommunications Ltd.

Mar 31, 2025

15 Provisions and Contingent Liabilities

A provision is recognised, when the Company has the present obligation as result of past events and it is probable that an
outflow of resources will be required to settle the obligation in respect of which reliable estimate can be made.

Where no reliable estimate can be made or when there is a possible obligation or present obligations that may, but probably
will not, require an outflow of resources, disclosure is made as contingent liability.

When there is a possible obligation or a present obligation in respect of which the likelihood of outflow of resources is
remote, no provision or disclosure is made.

16 Onerous Contract

The excess of unavoidable costs of meeting the obligations on onerous contracts over economic benefits expected to be
received is charged to the Statement of Profit and Loss in the year in which the contract become onerous and is recognized
and measured as loss.

1 Financial Instruments: (Indian Rupees in Hundreds)
i Financial Risk Management:

The Company''s principal financial liabilities, other than derivatives, comprise loans and borrowings, trade and
other payables. The main purpose of these financial liabilities is to finance the Company''s operations to support its
operations. The Company''s principal financial assets include loans, trade and other receivables, and cash and cash
equivalents that derive directly from its operations.

The Financial Risks in a Business Entity can be classified as Market Risk, Credit Risk and Liquidity Risk. The status
of these Risks at the Company is as brought out hereunder:

a) Market Risk:

Market risk is the risk that the changes in market prices such as foreign exchange rates, interest rates and
equity prices will affect the Company''s income or the value of its holdings of financial instruments. The objective
of market risk management is to manage and control market risk exposures within acceptable parameters,
while optimising the return.

i) Interest rate risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate
because of changes in market interest rates. The floating rate borrowings are determined based on SBI
base rate which is the minimum rate. Since the company had borrowed only form the Holding company
(TCIL), the effect of increase in interest rates will not impact the group. During the year Company did not
have any floating rate borrowings.

ii) Foreign currency risk

Exposures to currency exchange rates arise from the Company''s overseas sales and purchases,
which are primarily denominated in US dollars (USD). The Company has not entered into any hedging
transaction to mitigate the foreign exchange fluctuation risk, the fluctuation risk is controlled by way of
natural hedging.

The carrying amounts of the Company''s foreign currency denominated monetary assets and monetary
liabilities at the end of the reporting period are as follows:

b) Credit Risk:

Credit risk arises from the possibility that customers or counterparty to financial instruments may not be
able to meet their obligations. To manage this, the Company periodically assesses the financial reliability of
customers, taking into account the financial condition, current economic trends, analysis of historical bad debts
and ageing of accounts receivable. Credit risks arises from cash and cash equivalents, deposits with banks,
financial institutions and others, as well as credit exposures to customers, including outstanding receivables.
The Company''s policy is to place cash and cash equivalents and short term deposits with reputable banks and
financial institutions.

The Company continuously monitors defaults of customers and other counterparties, identified either
individually or by the Company, and incorporates this information into its credit risk controls. The company had
filed legal cases for recoverability of the trade receivables and had created adequate provision for expected
credit loss:

c) 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 have sufficient liquidity to meet its liabilities when
they are due, under both normal and stressed conditions, without incurring unacceptable losses or risking
damage to Company''s reputation.

ii. Fair Values Hierarchy

Financial assets and Financial liabilities measured at fair value in the statement of financial position are categorized
into three levels of a fair value hierarchy. The three levels are defined based on the observability of significant inputs
to the measurement, as follows:

Level 1 - Quoted Prices (unadjusted) in active markets for financial instruments

Level 2 - The fair value of financial instruments that are not traded in an active market is determined using valuation
techniques which maximize the use of observable market data rely as little as possible on entity specific estimates.

Level 3 - If one or more of the significant inputs is not based on observable market data, the instrument is included in
level 3.

Valuation Techniques:

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

There has been no change in the valuation methodology for Level 3 inputs during the year. The Company has
not classified any material financial instruments under Level 3 of the fair value hierarchy. There were no transfers
between Level 1 and Level 2 during the year.

iv. Capital Management:

The Company''s capital management objectives are:

- to ensure the Company''s ability to continue as a going concern

- to provide an adequate return to shareholders

The Company monitors capital on the basis of the carrying amount of equity less cash and cash equivalents as
presented on the face of Balance Sheet.

Management assesses the Company''s capital management in order to maintain an efficient overall financing structure
while avoiding excessive leverage. This takes into account the subordination levels of the Company''s various classes
of debt. The Company manages the capital structure and makes adjustments to it in the light of changes in economic
conditions and the risk characteristics of the underlying assets. In order to maintain or adjust the capital structure, the
Company may adjust the amount of dividends paid to shareholders, return capital to shareholders, issue new shares,
or sell assets to reduce debt.

NOTE NO. 29:

The Company is having a system of sending letters to the
vendors & customers for confirming the balance as at the year-
end 31st March. However, the balances of Trade receivables,
Trade payables, loans and advances & Deposits (other than
Telecommunications Consultants India Limited (TCIL)) are
subject to confirmation.

NOTE NO. 30:

(a) No provision is made for BSNL which is a long pending
debtor of Rs. 3,39,505 (previous year Rs. 3,39,505) in
view of the arbitration proceeding completed against
the Purchaser for which the Award was received on
14th January 2005 in favour of the Company but has
since been challenged by the Purchaser in the court.
Further the court remitted back the case to the Arbitrator
for speaking orders which also had been awarded
on 14th November 2014 in favour of the Company
after arguments, cross examinations and written
submissions. The purchaser has again appealed in the
High Court. Now the matter is posted on list of final
hearings of High court.

(b) No provision is made for Rs.13,397 (previous year
Rs.13,397) due from RailTel arbitration case was
appealed against award in Delhi High Court which was
disposed by Delhi high court.

(Indian Rupees in Hundreds)

NOTE NO.31:

After restructuring as per the Sanctioned Scheme of erstwhile
BIFR during 2010-11, the net worth of the Company was
positive during 2010-11. However, during the year 2011-12
the net worth had again eroded. The Company was under
rehabilitation period as per the erstwhile BIFR Sanctioned
Scheme. Lack of executable orders and dull phase of Optical
Fiber Cable (OFC) market from the year 2010-11 onwards is
the reason for the poor performance.

During the year 2012-13 the Company had received order from
BSNL for supply of 3206 KMs of OFC valuing Rs.15,97,011
and successfully executed the order in time and got 50% add¬
on order of 1602 KMs and executed during 2013-14 valuing
Rs.7,98,007. These two were the only major orders executed
during these two years.

Bharat Broadband Network Limited (BBNL), the Special
Purpose Vehicle of the Government, had floated the tender
towards the National Optic Fiber Network (NOFN) project to
connect all the villages by broad band. The date of tender
opening was 08.05.2013. Though the initial projection was
600000 KMs, the tender called for is to cover 404995 KMs
under six packages based on geographical location. For this
huge quantum, BBNL has fixed the delivery time frame of

eight months only including initial two months for preliminary
arrangements. The Company has participated in one package
considering its production capacity to cover the quantum in the
given short delivery period. The Company has received APO
and given acceptance during February, 2014 for 5800 KMs
including accessories. The Value of the APO is Rs.31,90,444.
BBNL has proposed to issue PO in two phases of 50%
each. During April, 2014, BBNL has issued the first 50% PO
for 2900 KMs including accessories valuing Rs.1,595,273.
Delivery period was upto October, 2014. BBNL has issued
the consignee details in full periodically for four months
consignments of 1740 KMs only. For fifth month consignment,
consignee details were provided for only 48 KMs out of 580
KMs. Hence consignee details are not provided for balance
around 1112 KMs. BBNL has extended the delivery schedule
by another six months beyond October, 2014. Hence the
supply of balance around 1112 KMs and second 50% PO for
2900 KMs was anticipated during 2016-17 and 2017-18 for
execution. However, BBNL did not decide on the consignees
and no supply could, therefore, be made thereafter.

The Company had participated in the tender floated by BSNL
for supply of 24,000 KMs of 24F HDPE DS OFC. The technical
bid opened and the company has been technically qualified.
Financial bid opened on 21.5.2015 which was followed by
e-reverse auction but TTL could not compete in the e-reverse
auction.

The company had railway orders worth Rs.10 cr during the
financial year 2016-17 and 2017-18. But due to non-availability
of fiber from Fujikura, Japan, the orders could not be executed.

The requirement of OFC in the country is huge; however the
delay in procurement is due to various procedural matters /
issues in execution of big projects by the Government Clients.

The Company is hoping to get continuous orders since the
OFC market has picked up. The order booking position is
expected to improve as there is huge requirement of OF cable
in the near future due to the impact of 5G.

Therefore, the company and its promoters were taking various
efforts for revival of the company as detailed below:

i. MOU was signed with ITI Limited (PSU) in the presence
of Hon''ble Minister of Communication during the
synergy meeting held on 22th February 2018 at New
Delhi for contract manufacturing.

ii. The proposal of taking over the company/utilizing
capacity by BSNL was discussed with BSNL & TCIL
both under Department of Telecommunication. DOT
discussed in the meeting held on 07.03.2019 with
regard to takeover of TTL by BSNL, it was suggested
by Ministry to BSNL to utilize the capacity of TTL since
BSNL requirement is 100000 km per annum against
TTL capacity of 10000 Km per annum. Follow up action
has been taken up by the company and TCIL.

iii. Diversion of existing skilled employees to Fiber Optic
Splicing, Survey, Optical Laying Supervision and other
telecom related service contracts to maximize the
utilization of existing skilled manpower has been taken
care. Orders for deputation to TCIL were issued to
all the employees of TTL and 60 employees joined in
TCIL on deputation basis till Last Financial Year. Few
employees were posted at TCIL Chennai to attend of
minimum requirement of TTL factory and TTL office
work.

iv. To obtain preferential orders from Tamilnadu State
PSU, for supplying Optical Fiber Cable in Tamilnadu.
Management has been continuously pursuing and
approaching the concerned secretaries and ministers of
Government of Tamilnadu.

v. To obtain Turnkey contracts with the help of TCIL on
nomination basis from DOT / PSUs / Tamilnadu Govt.
and execute the orders so that excess skilled manpower
will be utilized.

vi. TCIL management has been taking efforts to revive
TTL through various correspondence and meeting
with Ministers of Government of Tamilnadu and TIDCO
CMD.

vii. Department of Telecom has also been pursuing the
matter and required data has been shared. EoI was
floated in the year 2021 for engaging Consultant to
explore various revenue generation options. Consultant
was appointed for monetization of factory and factory
premises. Based on the consultant report RFP was
floated on 29/12/2021 was floated through company
website and newspaper advertisement for “Grant of
Lease of the Manufacturing Facilities and Premises of
TTL”. The proposal was taken to the approval of Board
in their 176 Board meeting dt.20th May 2022 and in
the AGM on September 2022. The selected party did
not come for signing the agreement and tender was
cancelled. RFP was floated again on 02.01.2023.
Single party quoted. LoA was issued by TTL. After
the receipt of LoA, the party withdrew from the tender
process.

Again RFP (No. TTL/RFP/22-23/CHENNAI/02 dated
15.03.2023) was published on 16.03.2023 in the
websites of TCIL (www.tcil.net.in) and TTL (www.ttlofc.
in) for grant of lease of manufacturing facilities and
premises of TTL Factory at Maraimalainagar, near
Chennai, Tamilnadu. It was also advertised in the leading
newspapers All India English edition and Chennai Tamil
edition. Single quote was received for Grant of Lease
of the Manufacturing Facilities and Premises of TTL
located in Maraimalai Nagar, near Chennai, Tamilnadu,
on lease cum revenue sharing model basis. The bid
has been accepted. With the approval from competent
authority Letter of Award has been issued to the party
on 24.05.2023. Electricity connection has been restored

on 12.04.2024. After signing of Lease cum revenue
sharing agreement, TIDCO vide its letter Dt. 10.10.2023
informed TTL to refrain from proceeding further with the
proposal of leasing and not to execute / register the
lease. The Lessee did not take over the factory. The
lease has been cancelled. Company is exploring other
possible avenues to generate revenue.

Present status of Revival of TTL

a) As a first step, electricity connection has been restored
in the factory on 12th April 2024.

b) Business partners are being explored for fresh
investment in the company for revival of the factory and
in the new areas of business.

c) Promoter TCIL has initiated the proposal of sale of
entire stake of TCIL in TTL through DIPAM as per
the revised procedure for strategic disinvestment in
CPSEs. DIPAM has given the In-principal approval
and the same has been communicated to Department
of Telecom, Ministry of Communication. Tenders for
Transaction Adviser and Legal adviser were floated by
TCIL and were uploaded in websites of TCIL & TTL in
April-25. This strategic disinvestment will pave the way
for revival of the company by the prospective buyers.

Considering the scope during the immediate future, the
accounts have been prepared on going concern basis.

NOTE NO.32: LAND

a) The Company is currently in possession of 2.42 acres
of land acquired from CMDA. In respect of the said land
Memorandum of Lease cum Sale Agreement has been
entered and on completion of payment, the Company
has executed Sale Deed and the same in original was
surrendered to SBI, which is yet to be returned by SBI
for which due clearances were received from all the
banks of the consortium. The Company is following up
with SBI, in this regard.

b) The Company is also in possession of 7.36 acres of
free hold land of the Tamilnadu State Government. The
cost of land determined by the Government in 2010 was
paid by the Company. Land delivery receipt was issued
to the Company by the Government. In the case of TN
Government land, it is to be utilized for the purpose for
which it is allotted.

NOTE NO.33: Actuarial Valuation

As per Indian Accounting Standard 19 “Employee Benefits”,

the disclosures of Employee benefits are given below:

A. Defined contribution Plan (Indian Rupees in Hundreds):

Contribution to Defined Contribution Plan, recognized
as expense for the year are as under.

Upto the year 2008-09 the Company has set up separate
Trust for Provident Fund and has been contributing towards
the same. In view of the fact that the Company is industrially
sick as declared by erstwhile BIFR and its net worth has fully
eroded, the Provident Fund Commissioner-I has withdrawn
with effect from 01.04.2009 the relaxation order issued under
Para 79 of the Employees'' Provident Fund Scheme 1952, with
a direction to remit the whole cash balance to Employees''
Provident Fund (EPF) Account No.1 and the balance available
in Special Deposit Account to Central Board of Trustees,
Employees'' Provident Fund. During the year the Company has
followed the directions of the Provident Fund Commissioner-I
and remitted the monthly contributions to the concerned
Regional Provident Fund Commissioner.

B. Defined Benefit Plan (All Figures in Rs. hundreds)
Gratuity (Un Funded)

The Company provides for gratuity, a defined benefit retirement
plan (the “Gratuity Plan”) covering eligible employees.
The Gratuity Plan provides a lump sum payment to vested
employees at retirement, death, incapacitation or termination
of employment, of an amount based on the respective
employee''s salary and the tenure of employment. Vesting
occurs upon completion of five years of service. Liabilities
with regard to the Gratuity Plan are determined by actuarial
valuation as of the balance sheet date. The present value of
obligation is determined based on actuarial valuation using the
Projected Unit Credit Method.

C Leave encashment (All Figures in Rs. in Hundreds)

The employees of the Company are entitled to compensate
absence. The employees can carry forward a portion of the
unutilized accrued compensated absence and utilize it in
future periods or receive cash compensation at retirement
or termination of employment for the unutilized accrued
compensated absence for a maximum of 240 days. The
Company records an obligation for compensated absences
in the period in which the employee renders the services
that increase this entitlement. The Company measures the
expected cost of compensated absence as the additional
amount that the Company expects to pay as a result of the
unused entitlement that has accumulated at the balance sheet
date based on actuarial valuations.

NOTE NO.34:

a. Current Tax: No provision for income tax is made in view
of the current year loss and the accumulated losses of
previous years available for set off.

b. Deferred tax: During the year, the Company has not
accounted/taken the credit/charge for the deferred tax
assets/liabilities. The excess of timing difference over
the deferred tax liability has been ignored for want of
reasonable certainty of the company making taxable
income in the near future. Similarly, for the same
reason, certain other provisions made in the earlier
years have been ignored for creation of deferred tax
asset. The accumulated losses and carried forward
depreciation under the tax laws have been ignored for
creating the deferred tax asset considering that there is
no reasonable certainty of the company making taxable
income in the future. The treatment noted above is
in accordance with the Indian Accounting Standard
12 “Taxes on Income/ Income Taxes” notified under
Section 133 of the companies Act, 2013.

NOTE NO.35:

Work-in-Progress under Inventories as on 31.03.2025 includes
realizable scrap comprising short length cables, quality
defects cables, excess production cables for operational
reasons, type approval cables and disputed returned cables.
The above items are saleable with further processing and
re-testing to the same or other customers. Due provision is
made in respect of non-moving/ slow moving WIP inventories
wherever necessary.

NOTE NO.36:

a. The Componentization of Fixed Assets have already
been done at the time of capitalization of Fixed Assets.
Further Componentization of Fixed Assets, at present is
not technically felt appropriate by the Company.

b. As stipulated in Ind AS - 36, the company is of the
view that assets employed in continuing business are
capable of generating adequate returns over their

useful life in the usual course of business. There is no
indication to the company of impairment of any asset
and accordingly the Management is of the view that no
impairment provision is called for during the year.

NOTE NO.37:

The Company is having only one segment namely

“manufacturing of cables” and there are no other business

segments to be disclosed.

NOTE NO.38:

Contingent Liabilities (Indian Rupees in Hundreds)

(a) Claims against the company not acknowledged as
debt:

(i) Commercial Tax Department had demanded a
sum of Rs.1,86,088 as Additional Sales Tax in
respect of Financial Year 2000-2001 and 2001¬
2002 (up to November 2001). The company
has obtained a Stay from Madras High Court
against the collection of above demand by
depositing a sum of Rs.75,000 with Commercial
Tax Department as directed by the High Court
while granting the stay (Refer Note No. 7). As
the demand is disputed, the same is not provided
for in the accounts. The case came up for hearing
during November, 2011and directions were
issued to post the case along with the writ appeal
before the Bench in another similar case where
the judgment is in favour of the assessee. The
writ petitions were heard by High Court, Madras,
on 02-09-2015 and on 09-09-2015. On hearing
the argument single Judge of High court Madras
reserved the judgement. Orders are still not given
by the Court.

(ii) The Sales Tax department has demanded a sum
of Rs. 22,950 during the financial year 2006¬
07 for non-submission of “C” Forms from BSNL
/ MTNL pertaining to AY 2001-02, 2002-03 and
2003-04. The Government has exempted “C”
forms in respect of inter-state sales to BSNL /
MTNL. The company has represented to the
Department and also referred the matter to BSNL
/ MTNL. Next hearing date is not yet fixed.

(iii) The Customs Authority has demanded an amount
of Rs. 102,067 towards difference in classification
of Optical Fibre during the year 2006-07. However,
the order of the Commissioner of Customs has
come in favour of the Company during the year
2009-10 dropping the proceedings. Department
has gone for appeal against the order. The
company has filed the Counter. The Tribunal
vide its Final Order dated 19/12/2017 remanded
the matter back to the Commissioner for fresh

decision after the outcome of the case pending in
Supreme Court on the issue of jurisdiction of DRI
to issue the notice. As such, the issue has to be
argued and decided afresh.

(iv) Total penalty amounting to Rs. 47,766 is levied
by BSE and NSE stock exchanges pursuant to
noncompliance with SEBI (Listing Obligations
and Disclosure Requirements) during the year
2018-19 and Rs. 38,373 during the year 2019-20.
The company has made written representation to
the stock exchanges for waiver of this penalties.

b. Guarantees (Indian Rupees in Hundreds)

Guarantees extended by TCIL (the Holding Company)
on behalf of the Company against performance
obligation and EMD bank guarantee in the name of
BSNL for an amount of Rs.3,88,000 as on 31.03.2025
(previous year Rs.3,88,000).

NOTE NO.39: (Indian Rupees in Hundreds)

The Sales Tax department has demanded a sum of Rs.
45,835/- during the financial year 2018-19 pertaining to the
years 2011-12 to 2015-16 for Tax on non-submission of C
forms Rs. 14,354/-, ITC Reversal for CST sales without C
forms Rs. 27,793/-, Tax on cross verification of buyer and
seller Rs.3,430/- and TN vat 14.50% on disposal of movable
assets Rs. 257/-. Provision for the same has been made in
the books of accounts.

NOTE NO.40:

Commitments

(a) Estimated amount of Contracts remaining to be
executed on Capital Account and not provided for
during the year is Rs. ‘Nil'' (previous year Rs. ‘Nil'').

(b) Uncalled liability on shares and other investments which
are partly paid up during the year is Rs.''Nil'' (previous
year Rs.''Nil'').

NOTE NO.41:

The Company has no long term operating lease. No financial
lease has been availed during the year.

(Indian Rupees in Hundreds)

NOTE NO.42:

A writ petition has been filed by the Company in Madras High
Court during the year 2008 against BSNL for reducing the
awarded rate during the scheduled delivery period, in one of
their orders without giving effect to BSNL''s amendment to the
‘Fall clause'' applicable from 01.08.2005. BSNL has rejected
and returned the differential claim invoice of the company
for Rs.1,39,913. The case was disposed off by Madras High
Court rejecting our claim.

NOTE NO.44:

(i) A civil suit has been filed by the company in Delhi High
court on 31.03.2011 to stay the Advance Purchase
Order issued by BSNL, HQ for supply of 42000 KMs of
OFC. This is in addition to the purchase order issued
during January, 2011 for supply of 18000 KMs. The
order for OFC supply is with Nylon 12 jacketing and
subsequently BSNL has changed the specification
with HDPE Double sheathing. During the year 2011-12
BSNL has floated tender for 42000 KMs with the new
specification. Initially the case was filed in Delhi High
Court against the APO. Now the matter is transferred
from Delhi High court to District court (Patiala House)
for deciding the APO. BSNL issued show cause notice
for encashing the EMD BG of Rs.1.12 crs. TTL filed a
stay order. Arguments were heard on 13.05.2025 the
Application (filed by BSNL) for framing of additional
issues and Order was reserved. The Order is yet to be
uploaded; however, the Court was inclined to dismiss
BSNL''s Application and putting up the matter for final
arguments.

(ii) Limitation issue was dismissed by the High Court. BSNL
sent a notice to bank for encashment of performance
bank guarantee for Rs.2.76 crs. The PBG was given to
BSNL by the promotor TCIL on behalf of the company.
TTL took the last and final chance and filled SLP(2) at the
Hon''ble Supreme court against the order 06.11.2024.
The Hon''ble Supreme Court didn''t allow SLP. The PBG
amount of Rs. 2.76 crs was settled by promotor TCIL
on behalf of the company (by providing working capital
loan to TTL) through Indian Overseas Bank to BSNL on
23.04.2025 against the encashment notice.

NOTE NO.45:

The Company has not received information from vendors

regarding their status under the Micro, Small and Medium

51.1 Details of Immovable Property not held in name of
company:

The Company does not have any Immovable property
not held in the name of the Company. However,
Immovable property of 7.36 acres situated at
maraimalai nagar, has been allotted to the company
by the Government of Tamilnadu, during the financial
year 2010-11 by issuing a land delivery receipt note
which constitutes as property held in the name of the
Company.

51.2 Investment Property:

The company does not have any Investment property
as on 31.03.2025.

51.3 Revaluation of Property, Plant & Equipment

The company has not revalued its Property Plant &
Equipment during the current year.

51.4 Revaluation of Intangible Assets

The company does not have any Intangible assets as
on 31.03.2025.

51.5 Loans Granted to Related Parties

The Company has not granted any loans to related
parties as on 31.03.2025.

51.7 Intangible Assets Under Development

There are no Intangible assets under development
during the year.

51.8 Benami Property

The Company does not have any Benami property,
where any proceeding has been initiated or pending
against the Company for holding any Benami property.

51.9 Secured loans

The Company has not availed any borrowings on
security of current assets from banks or financial
institution as on 31.03.2025.

51.10 Willful Defaulter

The company is not a declared wilful defaulter by any
bank or financial institution or other lender.

51.11 Relationship with Struck off Companies:

The Company do not have any transaction with the
Struck off Companies.

51.12 Registration of Charges:

The MCA portal shows that the following loan for the
creation of charges availed in the earlier years, for which
the company is yet to file the satisfaction of charges as
on 31.03.2025. There are no outstanding balances in
respect of the loans mentioned below in the books of
accounts as on 31.03.2025.

51.6 Capital Work in Progress

a) Capital Work in Progress

There are no amounts in CWIP as on 31.03.2025.

b) Capital work in progress Completion
Schedule

There are no capital-work-in progress, whose
completion are overdue or has exceeded its cost
compared to its original plan.

51.13 Compliance with Number of Layers of Companies

Since the company does not have layers of holding
beyond prescribed limit, the disclosure of number of
layers prescribed under clause (87) of section 2 of the
Companies Act, 2013 read with Companies (Restriction
on number of Layers) Rules,) 2017 is not applicable.

51.15 Compliance with approved schemes of Arrangements:

The company has no approved scheme of arrangements as on 31-03-2025 by the Competent Authority in terms of sections
230 to 237 of the Companies Act, 2013.

51.16 Utilization of Borrowed funds and share premium:

a) The company has not advanced or loaned or invested funds to any other persons or entities with the understanding that the
Intermediary shall:-

i) Directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of
the company (Ultimate Beneficiaries) or

ii) Provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.

b) The company has not received funds from persons or entities, including foreign entities (Funding Party) with the
understanding (whether recorded in writing or otherwise) that the company shall-

i) Directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of
the Funding Party (Ultimate Beneficiaries) or

ii) Provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

52 Undisclosed Income:

The company has not surrendered or disclosed any transactions, previously unrecorded as income in the books of accounts
in the tax assessments under the Income Tax Act, 1961 (43 of 1961) as income during the year and in previous year.

53 Details of Crypto Currency or Virtual Currency:

The Company has not traded or invested in Crypto currency or Virtual Currency during the financial year.

54 Previous year figures have been regrouped and reclassified wherever required.

As per our report of even date attached

Sundaram & Srinivasan For and on behalf of Board of Directors

Chartered Accountants
Firm Regn No. 004207S

-Sd/- -Sd/- -Sd/-

P.Menakshi Sundaram J. Ramesh Kannan D.Porpathasekaran

Partner Managing Director & CFO Chairman

Membership No. 217914

-Sd/-

Place : Chennai Swapnil Gupta

Date : 28th May 2025 Company Secretary

---

Mar 31, 2024

1 Financial Instruments: (Indian Rupees in Hundreds) i Financial Risk Management:

The Company''s principal financial liabilities, other than derivatives, comprise loans and borrowings, trade and other payables. The main purpose of these financial liabilities is to finance the Company''s operations to support its operations. The Company''s principal financial assets include loans, trade and other receivables, and cash and cash equivalents that derive directly from its operations.

The Financial Risks in a Business Entity can be classified as Market Risk, Credit Risk and Liquidity Risk. The status of these Risks at the Company is as brought out hereunder:

a) Market Risk:

Market risk is the risk that the changes in market prices such as foreign exchange rates, interest rates and equity prices will affect the Company''s income or the value of its holdings of financial instruments. The objective of market risk management is to manage and control market risk exposures within acceptable parameters, while optimising the return.

i) Interest rate risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The floating rate borrowings are determined based on SBI base rate which is the minimum rate. Since the company had borrowed only form the Holding company (TCIL), the effect of increase in interest rates will not impact the group. During the year Company did not have any floating rate borrowings.

Interest rate sensitivity analysis

The table below summarises the impact of increase/decrease of the interest rates on floating rate borrowings at the reporting date, on the Company''s equity and loss for the year. The analysis is based on the assumption of /-1% change.

ii) Foreign currency risk

Exposures to currency exchange rates arise from the Company''s overseas sales and purchases, which are primarily denominated in US dollars (USD). The Company has not entered into any hedging transaction to mitigate the foreign exchange fluctuation risk, the fluctuation risk is controlled by way of natural hedging.

b) Credit Risk:

Credit risk arises from the possibility that customers or counterparty to financial instruments may not be able to meet their obligations. To manage this, the Company periodically assesses the financial reliability of customers, taking into account the financial condition, current economic trends, analysis of historical bad debts and ageing of accounts receivable. Credit risks arises from cash and cash equivalents, deposits with banks, financial institutions and others, as well as credit exposures to customers, including outstanding receivables. The Company''s policy is to place cash and cash equivalents and short term deposits with reputable banks and financial institutions.

The Company continuously monitors defaults of customers and other counterparties, identified either individually or by the Company, and incorporates this information into its credit risk controls. The company had filed legal cases for recoverability of the trade receivables and had created adequate provision for expected credit loss:

03-2023

97,258

98,696

c) 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 have sufficient liquidity to meet its liabilities when they are due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to Company''s reputation.

ii. Fair Values Hierarchy

Financial assets and Financial liabilities measured at fair value in the statement of financial position are categorized into three levels of a fair value hierarchy. The three levels are defined based on the observability of significant inputs to the measurement, as follows:

Level 1 - Quoted Prices (unadjusted) in active markets for financial instruments

Level 2 - The fair value of financial instruments that are not traded in an active market is determined using valuation techniques which maximize the use of observable market data rely as little as possible on entity specific estimates

Level 3 - If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3.

Valuation Techniques:

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

There has been no change in the valuation methodology for Level 3 inputs during the year. The Company has not classified any material financial instruments under Level 3 of the fair value hierarchy. There were no transfers between Level 1 and Level 2 during the year.

iv. Capital Management:

The Company''s capital management objectives are:

- to ensure the Company''s ability to continue as a going concern

- to provide an adequate return to shareholders

The Company monitors capital on the basis of the carrying amount of equity less cash and cash equivalents as presented on the face of Balance Sheet.

Management assesses the Company''s capital management in order to maintain an efficient overall financing structure while avoiding excessive leverage. This takes into account the subordination levels of the Company''s various classes of debt. The Company manages the capital structure and makes adjustments to it in the light of changes in economic conditions and the risk characteristics of the underlying assets. In order to maintain or adjust the capital structure, the Company may adjust the amount of dividends paid to shareholders, return capital to shareholders, issue new shares, or sell assets to reduce debt.

OTHER EXPLANATORY NOTES TO THE FINANCIAL STATEMENTS:NOTE NO. 29:

The Company is having a system of sending letters to the vendors & customers for confirming the balance as at the year-end 31st March. However, the balances of Trade receivables, Trade payables, loans and advances & Deposits (other than Telecommunications Consultants India Limited (TCIL)) are subject to confirmation.

NOTE NO. 30:

(a) No provision is made for BSNL which is a long pending debtor of Rs. 3,39,505 (previous year Rs. 3,39,505) in view of the arbitration proceeding completed against the Purchaser for which the Award was received on 14th January 2005 in favour of the Company but has since been challenged by the Purchaser in the court. Further the court remitted back the case to the Arbitrator for speaking orders which also had been awarded on 14th November 2014 in favour of the Company after arguments, cross examinations and written submissions. The purchaser has again appealed in the High Court. Now the matter is posted on list of final hearings of High court.

(b) No provision is made for Rs. 13,397 (previous year Rs. 13,397) due from RailTel arbitration case was appealed against award in Delhi High Court which was disposed by Delhi high court.

(Indian Rupees in Hundreds)NOTE NO.31:

After restructuring as per the Sanctioned Scheme of erstwhile BIFR during 2010-11, the net worth of the Company was positive during 2010-11. However, during the year 2011-12 the net worth had again eroded. The Company was under rehabilitation period as per the erstwhile BIFR Sanctioned Scheme. Lack of executable orders and dull phase of Optical Fiber Cable (OFC) market from the year 2010-11 onwards is the reason for the poor performance.

During the year 2012-13 the Company had received order from BSNL for supply of 3206 KMs of OFC valuing Rs.15,97,011 and successfully executed the order in time and got 50% addon order of 1602 KMs and executed during 2013-14 valuing Rs.7,98,007. These two were the only major orders executed during these two years.

Bharat Broadband Network Limited (BBNL), the Special Purpose Vehicle of the Government, had floated the tender towards the National Optic Fiber Network (NOFN) project to connect all the villages by broad band. The date of tender opening was 08.05.2013. Though the initial projection was 600000 KMs, the tender called for is to cover 404995 KMs under six packages based on geographical location. For this huge quantum, BBNL has fixed the delivery time frame of

eight months only including initial two months for preliminary arrangements. The Company has participated in one package considering its production capacity to cover the quantum in the given short delivery period. The Company has received APO and given acceptance during February, 2014 for 5800 KMs including accessories. The Value of the APO is Rs. 31,90,444. BBNL has proposed to issue PO in two phases of 50% each. During April,2014, BBNL has issued the first 50% PO for 2900 KMs including accessories valuing Rs. 1,595,273. Delivery period was upto October, 2014. BBNL has issued the consignee details in full periodically for four months consignments of 1740 KMs only. For fifth month consignment, consignee details were provided for only 48 KMs out of 580 KMs. Hence consignee details are not provided for balance around 1112 KMs. BBNL has extended the delivery schedule by another six months beyond October,2014. Hence the supply of balance around 1112 KMs and second 50% PO for 2900 KMs was anticipated during 2016-17 and 2017-18 for execution. However, BBNL did not decide on the consignees and no supply could, therefore, be made thereafter.

The Company had participated in the tender floated by BSNL for supply of 24,000 KMs of 24F HDPE DS OFC. The technical bid opened and the company has been technically qualified. Financial bid opened on 21.5.2015 which was followed by e-reverse auction but TTL could not compete in the e-reverse auction.

The company had railway orders worth Rs.10 cr during the financial year 2016-17 and 2017-18. But due to non-availability of fiber from Fujikura, Japan, the orders could not be executed.

The requirement of OFC in the country is huge; however the delay in procurement is due to various procedural matters / issues in execution of big projects by the Government Clients.

The Company is hoping to get continuous orders since the OFC market has picked up. The order booking position is expected to improve as there is huge requirement of OF cable in the near future due to the impact of 5G.

Therefore, the company and its promoters were taking various efforts for revival of the company as detailed below:

i. MOU was signed with ITI Limited (PSU) in the presence of Hon''ble Minister of Communication during the synergy meeting held on 22th February 2018 at New Delhi for contract manufacturing.

ii. The proposal of taking over the company/utilizing capacity by BSNL was discussed with BSNL & TCIL both under Department of Telecommunication. DOT discussed in the meeting held on 07.03.2019 with regard to takeover of TTL by BSNL, it was suggested by Ministry to BSNL to utilize the capacity of TTL since BSNL requirement is 100000 km per annum against TTL capacity of 10000 Km per annum. Follow up action has been taken up by the company and TCIL.

iii. Diversion of existing skilled employees to Fiber Optic Splicing, Survey, Optical Laying Supervision and other telecom related service contracts to maximize the utilization of existing skilled manpower has been taken care. Orders for deputation to TCIL were issued to all the employees of TTL and 60 employees joined in TCIL on deputation basis till Last Financial Year. Few employees were posted at TCIL Chennai to attend of minimum requirement of TTL factory and TTL office work.

iv. To obtain preferential orders from Tamilnadu State PSU, for supplying Optical Fiber Cable in Tamilnadu. Management has been continuously pursuing and approaching the concerned secretaries and ministers of Government of Tamilnadu.

v. To obtain Turnkey contracts with the help of TCIL on nomination basis from DOT / PSUs / Tamilnadu Govt. and execute the orders so that excess skilled manpower will be utilized.

vi. TCIL management has been taking efforts to revive TTL through various correspondence and meeting with Ministers of Government of Tamilnadu and TIDCO CMD.

vii. Promoter TCIL has initiated the proposal of sale of entire stake of TCIL in TTL through DIPAM as per the revised procedure for strategic disinvestment in CPSEs. The same has been pursued with Department of Telecom, Ministry of Communication. The strategic disinvestment will pave the way for revival of the company by the prospective buyers.

viii. Department of Telecom has also been pursuing the matter and required data has been shared. EoI was floated in the year 2021 for engaging Consultant to explore various revenue generation options. Consultant was appointed for monetization of factory and factory premises. Based on the consultant report RFP was floated on 29/12/2021 was floated through company website and newspaper advertisement for “Grant of Lease of the Manufacturing Facilities and Premises of TTL”. The proposal was taken to the approval of Board in their 176 Board meeting dt.20th May 2022 and in the AGM on September 2022. The selected party did not come for signing the agreement and tender was cancelled. RFP was floated again on 02.01.2023. Single party quoted. LoA was issued by TTL. After the receipt of LoA, the party withdrew from the tender process.

Present status of Revival of TTL

a) As a first step, electricity connection has been restored in the factory on 12th April 2024.

b) Preferential orders being pursued through promotors of the company.

c) Request for Proposal (RFP) No. TTL/RFP/22-23/ CHENNAI/02 dated 15.03.2023 was published on 16.03.2023 in the websites of TCIL (www.tcil.net.in) and TTL (www.ttlofc.in) for grant of lease of manufacturing facilities and premises of TTL Factory at Maraimalai nagar, near Chennai, Tamilnadu. It was also advertised in the leading newspapers All India English edition and Chennai Tamil edition. Single quote was received for Grant of Lease of the Manufacturing Facilities and Premises of TTL located in Maraimalai Nagar, near Chennai, Tamilnadu, on lease cum revenue sharing model basis. The bid has been accepted. With the approval from competent authority Letter of Award has been issued to the party on 24.05.2023. Electricity connection has been restored on 12.04.2024. Lease cum revenue is expected to commence during the FY 24-25 for 9 years and 11 months. Against the Letter of Award, the company has received partial security deposit of Rs.15,000 (in Hundreds) which is grouped under Note No. 16.

Considering the scope during the immediate future, with the assured income from the lease period of 9 years & 11 months and with TCIL''s financial / preferential order support to TTL, the accounts have been prepared on going concern basis.

NOTE NO.32: LAND

a) The Company is currently in possession of 2.42 acres of land acquired from CMDA. In respect of the said land Memorandum of Lease cum Sale Agreement has been entered and on completion of payment, the Company has executed Sale Deed and the same in original was surrendered to SBI, which is yet to be returned by SBI for which due clearances were received from all the banks of the consortium. The Company is following up with SBI, in this regard.

b) The Company is also in possession of 7.36 acres of free hold land of the Tamilnadu State Government. The cost of land determined by the Government in 2010 was paid by the Company. Land delivery receipt was issued to the Company by the Government. In the case of TN Government land, it is to be utilized for the purpose for which it is allotted.

NOTE NO.33: Actuarial Valuation

As per Indian Accounting Standard 19 “Employee Benefits”,

the disclosures of Employee benefits are given below:

A. Defined contribution Plan (Indian Rupees in Hundreds):

Contribution to Defined Contribution Plan, recognized as expense for the year are as under.

Upto the year 2008-09 the Company has set up separate Trust for Provident Fund and has been contributing towards the same. In view of the fact that the Company is industrially sick as declared by erstwhile BIFR and its net worth has fully eroded, the Provident Fund Commissioner-I has withdrawn with effect from 01.04.2009 the relaxation order issued under Para 79 of the Employees'' Provident Fund Scheme 1952, with a direction to remit the whole cash balance to Employees'' Provident Fund (EPF) Account No.1 and the balance available in Special Deposit Account to Central Board of Trustees, Employees'' Provident Fund. During the year the Company has followed the directions of the Provident Fund Commissioner-I and remitted the monthly contributions to the concerned Regional Provident Fund Commissioner.

B. Defined Benefit Plan (All Figures in Rs. hundreds) Gratuity (Un Funded)

The Company provides for gratuity, a defined benefit retirement plan (the “Gratuity Plan”) covering eligible employees. The Gratuity Plan provides a lump sum payment to vested employees at retirement, death, incapacitation or termination of employment, of an amount based on the respective employee''s salary and the tenure of employment. Vesting occurs upon completion of five years of service. Liabilities with regard to the Gratuity Plan are determined by actuarial valuation as of the balance sheet date. The present value of obligation is determined based on actuarial valuation using the Projected Unit Credit Method.

The following table set out the status of the gratuity plan as required under Ind AS 19.

* Total gratuity provision included in Note 13 and 18 amounts to Rs.5,23,000 (Previous year Rs.4,73,782)

Note: The estimates of rate of escalation in salary considered in actuarial valuation, taken into account inflation, seniority, promotion and other relevant factors including supply and demand in the employment market. The above information is based on the valuation certified by the actuary.

• The base liability is calculated at discount rate of 7.19% per annum and salary inflation rate of 4.00% per annum for all future years.

• Liabilities are very sensitive to salary escalation rate, discount rate & withdrawal rate.

• Liabilities are very less sensitive due to change in mortality assumptions. Hence, sensitivities due to change in mortality are ignored

C Leave encashment (All Figures in Rs. in Hundreds)

The employees of the Company are entitled to compensate absence. The employees can carry forward a portion of the unutilized accrued compensated absence and utilize it in future periods or receive cash compensation at retirement or termination of employment for the unutilized accrued compensated absence for a maximum of 240 days. The Company records an obligation for compensated absences in the period in which the employee renders the services that increase this entitlement. The Company measures the expected cost of compensated absence as the additional amount that the Company expects to pay as a result of the unused entitlement that has accumulated at the balance sheet date based on actuarial valuations.

The following table set out the status of the Leave Benefit plan as required under Ind AS 19.

* Total Leave encashment provision included in Note 13 and 18 and amounting to Rs. 1,33,627 (Previous year Rs. 90,891)

NOTE NO.34:

a. Current Tax: No provision for income tax is made in view of the current year loss and the accumulated losses of previous years available for set off.

b. Deferred tax: During the year, the Company has not accounted/taken the credit/charge for the deferred tax assets/liabilities. The excess of timing difference over the deferred tax liability has been ignored for want of reasonable certainty of the company making taxable income in the near future. Similarly, for the same reason, certain other provisions made in the earlier years have been ignored for creation of deferred tax asset. The accumulated losses and carried forward depreciation under the tax laws have been ignored for creating the deferred tax asset considering that there is no reasonable certainty of the company making taxable income in the future. The treatment noted above is in accordance with the Indian Accounting Standard 12 “Taxes on Income/ Income Taxes” notified under Section 133 of the companies Act, 2013.

NOTE NO.35:

Work-in-Progress under Inventories as on 31.03.2024 includes realizable scrap comprising short length cables, quality defects cables, excess production cables for operational reasons, type approval cables and disputed returned cables. The above items are saleable with further processing and re-testing to the same or other customers. Due provision is made in respect of non-moving/ slow moving WIP inventories wherever necessary.

NOTE NO.36:

a. The Componentization of Fixed Assets have already been done at the time of capitalization of Fixed Assets. Further Componentization of Fixed Assets, at present is not technically felt appropriate by the Company.

b. As stipulated in Ind AS - 36, the company is of the view that assets employed in continuing business are capable of generating adequate returns over their

useful life in the usual course of business. There is no indication to the company of impairment of any asset and accordingly the Management is of the view that no impairment provision is called for during the year.

NOTE NO.37:

The Company is having only one segment namely

“manufacturing of cables” and there are no other business

segments to be disclosed.

NOTE NO.38:Contingent Liabilities (Indian Rupees in Hundreds)(a) Claims against the company not acknowledged as debt:

(i) Commercial Tax Department had demanded a sum of Rs.1,86,088 as Additional Sales Tax in respect of Financial Year 2000-2001 and 20012002 (up to November 2001). The company has obtained a Stay from Madras High Court against the collection of above demand by depositing a sum of Rs.75,000 with Commercial Tax Department as directed by the High Court while granting the stay (Refer Note No. 7). As the demand is disputed, the same is not provided for in the accounts. The case came up for hearing during November, 2011 and directions were issued to post the case along with the writ appeal before the Bench in another similar case where the judgment is in favour of the assessee. The writ petitions were heard by High Court, Madras, on 02-09-2015 and on 09-09-2015. On hearing the argument single Judge of High court Madras reserved the judgement. Orders are still not given by the Court.

(ii) The Sales Tax department has demanded a sum of Rs. 22,950 during the financial year 200607 for non-submission of “C” Forms from BSNL / MTNL pertaining to AY 2001-02, 2002-03 and 2003-04. The Government has exempted “C” forms in respect of inter-state sales to BSNL / MTNL. The company has represented to the Department and also referred the matter to BSNL / MTNL. Next hearing date is not yet fixed.

(iii) The Customs Authority has demanded an amount of Rs. 102,067 towards difference in classification of Optical Fibre during the year 2006-07. However, the order of the Commissioner of Customs has come in favour of the Company during the year 2009-10 dropping the proceedings. Department has gone for appeal against the order. The company has filed the Counter. The Tribunal vide its Final Order dated 19/12/2017 remanded the matter back to the Commissioner for fresh

decision after the outcome of the case pending in Supreme Court on the issue of jurisdiction of DRI to issue the notice. As such, the issue has to be argued and decided afresh.

(iv) There is a demand from IT department for Rs.29,052 towards short deduction of TDS against interest payable to TCIL. The Company have represented the case with IT Department.

(v) There is a IT demand for the AY 2009-2010, of Rs.2,978.

(vi) Total penalty amounting to Rs. 47,766 is levied by BSE and NSE stock exchanges pursuant to noncompliance with SEBI (Listing Obligations and Disclosure Requirements) during the year 2018-19 and Rs. 38,373 during the year 2019-20. The company has made written representation to the stock exchanges for waiver of this penalties.

b. Guarantees (Indian Rupees in Hundreds)

Guarantees extended by TCIL (the Holding Company) on behalf of the Company against performance obligation and EMD bank guarantee in the name of BSNL for an amount of Rs.3,88,000 as on 31.03.2024 (previous year Rs. 4,09,877).

NOTE NO.39: (Indian Rupees in Hundreds)

The Sales Tax department has demanded a sum of Rs. 45,835/- during the financial year 2018-19 pertaining to the years 2011-12 to 2015-16 for Tax on non-submission of C forms Rs. 14,354/-, ITC Reversal for CST sales without C forms Rs. 27,793/-, Tax on cross verification of buyer and seller Rs.3,430/- and TN vat 14.50% on disposal of movable assets Rs. 257/-. Provision for the same has been made in the books of accounts.

NOTE NO.40:Commitments

(a) Estimated amount of Contracts remaining to be executed on Capital Account and not provided for during the year is Rs. ‘Nil'' (previous year Rs. ‘Nil'').

(b) Uncalled liability on shares and other investments which are partly paid up during the year is Rs.''Nil'' (previous year Rs.''Nil'').

NOTE NO.41:

The Company has no long term operating lease. No financial lease has been availed during the year.

(Indian Rupees in Hundreds)NOTE NO.42:

A writ petition has been filed by the Company in Madras High Court during the year 2008 against BSNL for reducing the

awarded rate during the scheduled delivery period, in one of their orders without giving effect to BSNL''s amendment to the ‘Fall clause'' applicable from 01.08.2005. BSNL has rejected and returned the differential claim invoice of the company for Rs.1,39,913. The case was disposed off by Madras High Court rejecting our claim. However, the company has decided to make an appeal at AMRCD.

NOTE NO.44:

(i) A civil suit has been filed by the company in Delhi High court on 31.03.2011 to stay the Advance Purchase Order issued by BSNL, HQ for supply of 42000 KMs of OFC. This is in addition to the purchase order issued during January, 2011 for supply of 18000 KMs. The order for OFC supply is with Nylon 12 jacketing and subsequently BSNL has changed the specification with HDPE Double sheathing. During the year 2011-12 BSNL has floated tender for 42000 KMs with the new specification. Initially the case was filed in Delhi High Court against the APO. Now the matter is transferred from Delhi High court to District court (Patiala House) for deciding the APO. The both PBGs are kept alive as per Court direction. The rejoinder before Supreme Court was submitted. Last hearing was held in 06.03.2017, but again the matter appeared in the court and arguments held and stay on award will continue till the High court decides over limitation issue.

(ii) The Company has invoked Arbitration Clause during the year 2014-15 in respect of BSNL''s short closure of the PO for supply of 18000 kms.

(iii) For the further proceedings case is transferred to High Court.The Hon''ble Division Bench noted that the Written Submissions have been filed by both the parties. The captioned matter on transfer from other bench was listed before the Hon''ble Division Bench of HMJ Rajiv Shakdher & HMJ Amit Bansal. They heard preliminary arguments in April.

NOTE NO.45:

The Company has not received information from vendors regarding their status under the Micro, Small and Medium Enterprises Development Act, 2006 and hence the disclosure relating to amounts unpaid as at the year- end together with interest paid / payable under this Act could not be ascertained.

The remuneration has been paid by the Holding company TCIL and the company accounted the expenditure based on the debit advice issued by the TCIL. Hence, section 197 of Companies Act, 2013 will not be applicable as the above persons are not employees on the roll of the company.

(Indian Rupees in Hundreds)NOTE NO.48:

In view of the commitment by the company to pay Telecommunications Consultants India Limited (the holding company) on demand basis, the company has taken a conservative approach to reflect the amount due of Rs.1,57,85,738 (previous year Rs.1,46,41,843) at book value and not at fair value. Further since the aforesaid financial liabilities are current in nature there would only be an immaterial finance cost/income involved, on account of restatement of the balances to fair value.

(Indian Rupees in Hundreds)NOTE NO.49:

On 16.08.2021, theft took place in the Electrical Substation of the company''s factory located at Maraimalainagar,

Chengalpattu District. Bus bars and accessories were stolen from two transformers, HT & LT panels and the electrical substation unit is in a damaged condition. A complaint has been filed in the local police station against which an FIR copy is also received. The company has also submitted for insurance claim with the Insurance company and it is in process. The valuation for the insurance claim was done by a professional Valuer, who has given an estimated valuation of Rs.48,970 for the assets that were stolen. The same has been claimed for insurance. MV panel and transformer work has been completed and power has been restored on 12th April-2024. Surveyor from the New India Assurance has scheduled to come to factory for inspection in the month end of May-2024. After their assessment, the claim will be settled.

NOTE NO.50:

Particulars of Imports, Consumption etc.,

(a) Value of imports during the year- CIF Basis is nil (previous year nil)

(b) Expenditure in foreign currency during the year (on payment basis) is nil (previous year nil)

(c) Consumption of imported and indigenous raw materials, spare parts and components is nil (previous year nil)

(d) Amount remitted in foreign currency during the year is nil (previous year nil)

(e) Earnings in Foreign exchange (on realization basis) is nil (previous year nil)

(f) Dividends proposed to be distributed is nil (previous year nil)

(g) Raw Materials Consumed is nil (previous year nil)

Note -51 Additional Regulatory Disclosure Requirement51.1 Details of Immovable Property not held in name of company

The Company does not have any Immovable property not held in the name of the Company. However, Immovable property of 7.36 acres situated at maraimalai nagar, has been allotted to the company by the Government of Tamilnadu, during the financial year 2010-11 by issuing a land delivery receipt note which constitutes as property held in the name of the Company.

51.2 Investment Property:

The company does not have any Investment property as on 31.03.2024.

51.3 Revaluation of Property, Plant & Equipment

The company has not revalued its Property Plant & Equipment during the current year.

51.4 Revaluation of Intangible Assets

The company does not have any Intangible assets as on 31.03.2024.

51.5 Loans Granted to Related Parties

The Company has not granted any loans to related parties as on 31.03.2024.

51.6 Capital Work in Progress

a) Capital Work in Progress Ageing Schedule

CWIP ageing schedule as on 31.03.2024.

There are no capital-work-in progress, whose completion are overdue or has exceeded its cost compared to its original plan.

51.7 Intangible Assets Under Development

There are no Intangible assets under development during the year.

51.8 Benami Property

The Company does not have any Benami property, where any proceeding has been initiated or pending against the Company for holding any Benami property.

51.9 Secured loans

The Company has not availed any borrowings on security of current assets from banks or financial institution as on 31.03.2024.

51.10 Willful Defaulter

The company is not a declared wilful defaulter by any bank or financial institution or other lender.

51.11 Relationship with Struck off Companies:

The Company do not have any transaction with the Struck off Companies.

51.12 Registration of Charges:

The MCA portal shows that the following loan for the creation of charges availed in the earlier years, for which the company is yet to file the satisfaction of charges as on 31.03.2024. There are no outstanding balances in respect of the loans mentioned below in the books of accounts as on 31.03.2024.

There are no amounts in CWIP as on 31.03.2023.

b) Capital work in progress Completion Schedule51.13 Compliance with Number of Layers of Companies

Since the company does not have layers of holding beyond prescribed limit, the disclosure of number of layers prescribed under clause (87) of section 2 of the Companies Act, 2013 read with Companies (Restriction on number of Layers) Rules,) 2017 is not applicable.

51.15 Compliance with approved schemes of Arrangements:

The company has no approved scheme of arrangements as on 31-03-2024 by the Competent Authority in terms of sections 230 to 237 of the Companies Act, 2013.

51.16 Utilization of Borrowed funds and share premium:

a) The company has not advanced or loaned or invested funds to any other persons or entities with the understanding that the Intermediary shall:-

i) Directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the company (Ultimate Beneficiaries) or

ii) Provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.

b) The company has not received funds from persons or entities, including foreign entities (Funding Party) with the understanding (whether recorded in writing or otherwise) that the company shall-

i) Directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (Ultimate Beneficiaries) or

ii) Provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

52 Undisclosed Income

The company has not surrendered or disclosed any transactions, previously unrecorded as income in the books of accounts in the tax assessments under the Income Tax Act, 1961 (43 of 1961) as income during the year and in previous year.

53 Details of Crypto Currency or Virtual Currency

The Company has not traded or invested in Crypto currency or Virtual Currency during the financial year.

54 Previous year figures have been regrouped and reclassified wherever required.

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Mar 31, 2015

1. The Company is having a system of sending letters to the Debtors for confirming the balance as at the year end 31st March. However the balances of debtors, creditors, loans and advances (other than Telecommunications Consultants India Limited (TCIL)) are subject to confirmation.

2 a. No provision is made for one long pending debtor Rs. 33,950,521 (previous year Rs. 33,950,521) in view of the arbitration proceeding completed against the Purchaser for which the Award is received in favour of the Company but has since been challenged by the Purchaser in the court. Further the court remitted back the case to the Arbitrator for speaking orders which also has been awarded in favour of the Company after arguments, cross examinations and written submissions, during the year. The purchaser has again appealed in the Court.

b. No provision is made for Rs. 1,339,656 (previous year Rs. 1,339,656) due from RailTel which was under arbitration. In the Arbitration award, six claims were in favour of the Company and one against the Company. Company has appealed against the award in Delhi High Court and the proceedings are in progress.

3. After restructuring as per the Sanctioned Scheme of BIFR during 2010-11, the net worth of the Company was positive during 2010-11. However during the year 2011-12 the net worth has again eroded. The Company is already under rehabilitation period as per the BIFR Sanctioned Scheme. Lack of executable orders and dull phase of Optical Fiber Cable (OFC) market from the year 2010-11 onwards is the reason for the poor performance. During the year 2012-13 the Company had received order from BSNL for supply of 3206 KMs of OFC valuing Rs.159,701,104 and successfully executed the order in time and got 50% add-on order of 1602 KMs and executed during 2013-14 valuing Rs.79,800,740. These two were the only major orders executed during these two years. Bharat Broadband Network Limited (BBNL), the Special Purpose Vehicle of the Government, had floated the tender towards the National Optic Fiber Network (NOFN) project to connect all the villages by broad band. The date of tender opening was 08.05.2013. Though the initial projection was 600000 KMs, the tender called for is to cover 404995 KMs under six packages based on geographical location. For this huge quantum, BBNL has fixed the delivery time frame of eight months only including initial two months for preliminary arrangements. The Company has participated in one package considering its production capacity to cover the quantum in the given short delivery period. The Company has received APO and given acceptance during February, 2014 for 5800 KMs including accessories. The Value of the APO is Rs. 3,190,44,437. BBNL has proposed to issue PO in two phases of 50% each. During April,2014, BBNL has issued the first 50% PO for 2900 KMs including accessories valuing Rs. 159,527,319. Delivery period was upto October, 2014. BBNL has issued the consignee details in full periodically for four months consignments of 1740 KMs only. For fifth month consignment, consigee details were provided for only 48 KMs out of 580 KMs. Hence consignee details are not provided for balance around 1112 KMs. BBNL has extended the delivery schedule by another six months beyond October,2014. Hence the supply of balance around 1112 KMs and second 50% PO for 2900 KMs may be anticipated during 2015-16 for execution. The Company has participated in the tender floated by BSNL for supply of 24,000 KMs of 24F HDPE DS OFC. The technical bid opened and the company has been technically qualified. Financial bid opened on 21.5.2015 and is under evaluation, which will be followed by e- reverse auction. Company is hopeful of getting orders around 2500 KMs which is projected to be executed during 2015- 16. The requirement of OFC in the country is huge; however the delay in procurement is due to various procedural matters / issues in execution of big projects by the Government Clients. The Company is hoping to get continuous orders from 2015-16 onwards regularly since the OFC market is picking up. The order booking position is expected to be continuously good. Considering the scope during the immediate future and TCIL's continuous financial support, the accounts have been prepared on going concern basis.

4 Land: The Company is in possession of free hold land from Chennai Metropolitan Development Authority (CMDA) and the Tamilnadu State Government measuring around 9.82 acres. In case of sale of CMDA land by the company it has to be first offered to CMDA at the same purchase price. The land can be sold to other third parties only after getting No Objection Certificate (NOC) from CMDA. In the case of Tamilnadu State Government land it is to be utilized for the purpose for which it is allotted and surplus land if any, has to be surrendered.

5 As per Accounting Standard 15 "Employee Benefits", the disclosures of Employee benefits as defined in the Accounting Standard are given below:

A) Defined contribution Plan

Upto the year 2008-09 the Company has set up separate Trust for Provident Fund and has been contributing towards the same. In view of the fact that the Company is industrially sick as declared by BIFR and its net worth has fully eroded, the Provident Fund Commissioner-I has withdrawn with effect from 01.04.2009 the relaxation order issued under Para 79 of the Employees' Provident Fund Scheme 1952, with a direction to remit the whole cash balance to Employees' Provident Fund (EPF) Account No.1 and the balance available in Special Deposit Account to Central Board of Trustees, Employees' Provident Fund. During the year the Company has followed the directions of the Provident Fund Commissioner- I and remitted the monthly contributions to the concerned Regional Provident Fund Commissioner.

B) Defined Benefit Plan

Gratuity (Un Funded) :

The Company provides for gratuity, a defined benefit retirement plan (the "Gratuity Plan") covering eligible employees. The Gratuity Plan provides a lump sum payment to vested employees at retirement, death, incapacitation or termination of employment, of an amount based on the respective employee's salary and the tenure of employment. Vesting occurs upon completion of five years of service. Liabilities with regard to the Gratuity Plan are determined by actuarial valuation as of the balance sheet date. The present value of obligation is determined based on actuarial valuation using the Projected Unit Credit Method.

The following table set out the status of the gratuity plan as required under AS 15

Note: The estimates of rate of escalation in salary considered in actuarial valuation, taken into account inflation, seniority, promotion and other relevant factors including supply and demand in the employment market. The above information is based on the valuation certified by the actuary.

C) Leave encashmentThe employees of the Company are entitled to compensated absence. The employees can carry forward a portion of the unutilized accrued compensated absence and utilize it in future periods or receive cash compensation at retirement or termination of employment for the unutilized accrued compensated absence for a maximum of 240 days. The Company records an obligation for compensated absences in the period in which the employee renders the services that increase this entitlement. The Company measures the expected cost of compensated absence as the additional amount that the Company expects to pay as a result of the unused entitlement that has accumulated at the balance sheet date based on actuarial valuations.

6 a) Current Tax: No provision for income tax is made in view of the current year loss and the accumulated losses of previous years available for set off.

b) Deferred tax: During the year the Company has not accounted/taken the credit/charge for the deferred tax assets/liabilities. The excess of timing difference over the deferred tax liability has been ignored for want of reasonable certainty of the company making taxable income in the near future. Similarly, for the same reason, certain other provisions made in the earlier years have been ignored for creation of deferred tax asset. The accumulated losses and carried forward depreciation under the tax laws have been ignored for creating the deferred tax asset considering that there is no reasonable certainty of the company making taxable income in the future in terms of para 26 of AS-22.

The treatment noted above is in accordance with the Accounting Standard 22 "Taxes on Income" notified under Section 133 of the companies Act, 2013.

7 Work-in-Progress under Inventories as on 31.03.2015 includes realizable scrap comprising short length cables, quality defects cables, excess production cables for operational reasons, type approval cables and disputed returned cables valuing Rs.5,116,178 (previous year Rs. 13,867,175). The above items are saleable with further processing and re- testing to the same or other customers.

8 As stipulated in AS – 28, the company is of the view that assets employed in continuing business are capable of generating adequate returns over their useful life in the usual course of business. There is no indication to the company of impairment of any asset and accordingly the Management is of the view that no impairment provision is called for during the year.

9. The Company had undertaken on test basis during 2012-13, a new venture of assembling and supply of Tablet PCs to one of the promoters, Telecommunications Consultants India Limited (TCIL), towards TCIL's CSR Project of supplying 150 nos. of Tablet PCs to 10 State Government Schools in Vellore district of Tamilnadu. The project was successfully executed during 2012-13. No further business on this front,during the year 2014-15.

10 CONTINGENT LIABILITIES

(a) Claims against the company not acknowledged as debt:

(i) Commercial Ta x Department had demanded a sum of Rs.18,608,794 as Additional Sales Ta x in respect of Financial Year 2000-2001 and 2001-2002 (up to November 2001). The company has obtained a Stay from Madras High Court against the collection of above demand by depositing a sum of Rs.7,500,000 with Commercial Tax Department as directed by the High Court while granting the stay. As the demand is disputed, the same is not provided for in the accounts. The case came up for hearing during November, 2011and directions were issued to post the case along with the writ appeal before the Bench in another similar case where the judgement is in favour of the assessee.

(ii) The Sales Ta x department has demanded a sum of Rs. 2,295,000 during the financial year 2006-07 for non submission of "C" Forms from BSNL / MTNL pertaining to AY 2001-02, 2002-03 and 2003-04. The Government has exempted "C" forms in respect of inter-state sales to BSNL / MTNL. The company has represented to the Department and also referred the matter to BSNL / MTNL.

(iii) The Customs Authority has demanded an amount of Rs. 3,155,226 towards difference in classification of Optical Fibre during the year 2006-07. However the order of the Commissioner of Customs has come in favour of the Company during the year 2009-10 dropping the proceedings. Department has gone for appeal against the order.

(b) Guarantees:Guarantees arranged by TCIL in favour of the Company and issued by Banks outstanding as at March 31, 2015 is Rs.108,494,216 including expired Bank Guarantees to the extent of Rs.11,717,894 (previous year Rs.142,139,028 including expired Bank Guarantees to the extent of Rs. 10,874,154 )

11 Commitments

(a) Estimated amount of Contracts remaining to be executed on Capital Account and not provided for during the year is Rs. 'Nil' (previous year Rs. 'Nil')

(b) Uncalled liability on shares and other investments which are partly paid up during the year is Rs.'Nil' (previous year Rs.'Nil')

12 The Company has no long term operating lease. No financial lease has been availed during the year

13 A demand was raised by Income Tax Department towards tax to be deducted at source on Royalty amounting to Rs.2,542,165 (for the years 2000-01 & 2001-02). The company, has however, paid the entire amount of demand, out of which Rs. 2,193,733 is kept as recoverable. Appeal filed by the company for the above is pending in the Tribunal.

14 A writ petition has been filed by the Company in Madras High Court during the year 2008 against BSNL for reducing the awarded rate during the scheduled delivery period, in one of their orders without giving effect to BSNL's amendment to the 'Fall clause' applicable from 01.08.2005. BSNL has rejected and returned the differential claim invoice of the company for Rs.13,991,251. The case is pending in Madras High Court.

15 Figures of previous year have been regrouped / rearranged, wherever necessary, to conform to the current year's classification.

16. Applicability of Companies Act, 2013:Since it is notified as per General Circular No. 8/2014 dated 04.04.2014 issued by Ministry of Corporate Affairs that the financial statements as per Companies Act, 2013 is applicable with effect from Financial Year commencing from 01.04.2014, the financial statements have been prepared as per the Companies Act, 2013.

17. There was a fire incident in the store yard of the factory on 12.01.2015 and most of the WIP inventories, part of external portion of factory building, minor part of Plant & machinery including electrical installations got damaged. Insurance claims lodged with the Insurer. The total insurance claim lodged for Rs.74,723,904. Out of this, the cost of damaged WIP inventories excluding excise duty and salvage value Rs.62,386,677 and reimbursement of actual expenditures incurred during the fire incident Rs. 83,917 only have been accounted as insurance claims receivable under 'Other Current Assets' with credit to 'Other Income'. The corresponding stock value of the damaged WIP reduced from the WIP inventories. For other claims, the same shall be accounted as per expenditure incurred / insurance claims settled. The claim amount being huge, the insurance claim settlement process takes time. However, based on the surveyor's interim report, the insurer has made provisions towards this claim to the extent of Rs.64,000,000.

18. a) A civil suit has been filed by the company in Delhi High court on 31.03.2011 to stay the Advance Purchase Order issued by BSNL, HQ for supply of 42000 KMs of OFC. This is in addition to the purchase order issued during January, 2011 for supply of 18000 KMs. The order for OFC supply is with Nylon 12 jacketing and subsequently BSNL has changed the specification with HDPE Double sheathing. During the year 2011-12 BSNL has floated tender for 42000 KMs with the new specification. The case in Delhi High Court against the APO is in progress. b) The Company had taken up with BSNL for short closure of the PO for supply of 18000 KMs or to invoke the Arbitration clause. During the year the Arbitration clause has been invoked and arbitration proceedings are in progress.

19. The Company has not received information from vendors regarding their status under the Micro, Small and Medium Enterprises Development Act, 2006 and hence the disclosure relating to amounts unpaid as at the year end together with interest paid / payable under this Act could not be ascertained

20. Related Party Disclosures : Disclosures as required by the Accounting Standard 18 "Related Party Disclosures" are as given below:

List of Related Parties:

Associate Companies 1. Fujikura Ltd., Japan, Technical Collaborator & Equity Partner

2. Telecommunications Consultants India Ltd., New Delhi, Equity Partner

Key Managerial Personnel 1. Shri.V.S.Parameswaran, Managing Director

2. Shri.V.Mohan, Group General Manager (Finance)

* Movement in balance includes exchange rate fluctuation ** Includes only Shri.V.S.Parameswaran, Managing Director

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Mar 31, 2014

1. The Company is having a system of sending letters to the Debtors for confirming the balance as on the year end 31st March. However the balances of debtors, creditors, loans and advances (other than TCIL) are subject to confirmation.

2. a. No provision is made for certain long pending debtors Rs. 33,950,521 (previous year Rs. 35,283,109) in view of the arbitration proceeding completed against the Purchaser for which the Award is received in favour of the Company but has since been challenged by the Purchaser in the court. Further the court remitted back the case to the Arbitrator in one case for speaking orders. Final arguments completed and speaking order expected. In another case the court has given order in favour of the Company and the Company has realized Rs.1,332,588 along with interest through the Court of District Judge, Thiruvananthapuram, Kerala.

b. No provision is made for Rs. 1,339,656 (previous year Rs. 1,339,656) due from RailTel which was under arbitration. In the Arbitration award, six claims were in favour of the Company and one against the Company. Company has appealed against the award in Delhi High Court and the proceedings in progress.

3. After restructuring as per the Sanctioned Scheme of BIFR during 2010-11, the net worth of the Company was more than the accumulated losses. However during the year 2011-12 the net worth has again eroded. The Company is already under rehabilitation period as per the BIFR Sanctioned Scheme. Lack of executable orders and dull phase of OFC market from the year 2010-11 onwards is the reason for the poor performance. During the year 2012-13 the Company had received order from BSNL for supply of 3206 KMs of OFC valuing Rs.159,701,104 and successfully executed the order in time and got 50% add-on order of 1602 KMs during 2013-14 valuing Rs.79,800,740. During the year this add-on order has been executed. All other orders executed during the said period were only of small quantum. M/s.Bharat Broadband Network Limited (BBNL), the Special Purpose Vehicle of the Government, has floated the tender towards the National Optic Fiber Network (NOFN) project to connect all the villages by broad band. The date of tender opening was 08.05.2013. Though the initial projection was 600000 KMs, the tender called for is to cover 404995 KMs under six packages based on geographical location. For this huge quantum, BBNL has fixed the delivery time frame of eight months only including initial two months for preliminary arrangements. The Company has participated in one package considering its production capacity to cover the quantum in the given short delivery period. The Company has received APO and given acceptance during February, 2014 for 5800 KMs including accessories. The Value of the APO is Rs. 319,044,437. BBNL has proposed to issue PO in two phases of 50% each. This order would be executed during the year 2014-15. The project is going to be funded by USOF. The Company has participated in RailTel tenders and has received initial orders for 517 KMs and subsequently variation order for 155 KMs. Out of this 279.36 KMs valuing Rs. 17,197,717 despatched during 2013-14 and balance 392.64 KMs valuing Rs. 24,192,279 will be supplied during 2014-15. The Company has participated in another tender floated by PGCIL covering 2124 KMs of various designs, and is a single bidder. PGCIL''s Assessment Committee is evaluating the tender for further decisions. The Company is hopeful of getting order from PGCIL. The Company is hoping to get continuous orders from 2014-15 onwards regularly since the OFC market is picking up. The order booking position is expected to be continuously good. Considering the scope during the immediate future and TCIL''s continuous financial support, the accounts have been prepared on going concern basis.

4. Land: The Company is in possession of free hold land from CMDA and the Tamilnadu State Govt. measuring around 9.82 acres. In case of sale of CMDA land by the company it has to be first offered to CMDA at the same purchase price. The land can be sold to other third parties only after getting NOC from CMDA. In the case of Tamilnadu State Govt. land it is to be utilized for the purpose for which it is allotted and surplus land if any, has to be surrendered.

A) Defined Benefit Plan

Gratuity (Un Funded) :

The Company provides for gratuity, a defined benefit retirement plan (the "Gratuity Plan") covering eligible employees. The Gratuity Plan provides a lump sum payment to vested employees at retirement, death, incapacitation or termination of employment, of an amount based on the respective employee''s salary and the tenure of employment. Vesting occurs upon completion of five years of service. Liabilities with regard to the Gratuity Plan are determined by actuarial valuation as of the balance sheet date. The present value of obligation is determined based on actuarial valuation using the Projected Unit Credit Method.

Note: The estimates of rate of escalation in salary considered in actuarial valuation, taken into account inflation, seniority, promotion and other relevant factors including supply and demand in the employment market. The above information is based on the valuation certified by the actuary.

B) Leave encashment

The employees of the Company are entitled to compensated absence. The employees can carry forward a portion of the unutilized accrued compensated absence and utilize it in future periods or receive cash compensation at retirement or termination of employment for the unutilized accrued compensated absence for a maximum of 240 days. The Company records an obligation for compensated absences in the period in which the employee renders the services that increase this entitlement. The Company measures the expected cost of compensated absence as the additional amount that the Company expects to pay as a result of the unused entitlement that has accumulated at the balance sheet date based on actuarial valuations.

6 a) Current Tax: No provision for income tax is made in view of the current year loss and the accumulated losses of previous years available for set off.

b) Deferred tax: During the year the Company has not accounted/taken the credit/charge for the deferred tax assets/ liabilities. The excess of timing difference over the deferred tax liability has been ignored for want of reasonable certainty of the company making taxable income in the near future. Similarly, for the same reason, certain other provisions made in the earlier years have been ignored for creation of deferred tax asset. The accumulated losses and carried forward depreciation under the tax laws have been ignored for creating the deferred tax asset considering that there is no reasonable certainty of the company making taxable income in the future in terms of para 26 of AS-22.

The treatment noted above is in accordance with the Accounting Standard 22 " Taxes on Income" notified under Sub section 3(C) of Section 211 of the Companies Act, 1956.

7 Work-in-Progress under Inventories as on 31.03.2014 includes realizable scrap comprising short length cables, quality defects cables, excess production cables for operational reasons, type approval cables and disputed returned cables valuing Rs.13,867,175 (previous year Rs. 13,503,182). The above items are saleable with further processing and re- testing to the same or other customers.

8 As stipulated in AS - 28, the company is of the view that assets employed in continuing business are capable of generating adequate returns over their useful life in the usual course of business. There is no indication to the company of impairment of any asset and accordingly the Management is of the view that no impairment provision is called for during the year.

9 The Company had undertaken on test basis during 2012-13, a new venture of assembling and supply of Tablet PCs to one of the promoters, M/s. Telecommunications Consultants India Limited (TCIL), towards TCIL''s CSR Project of supplying 150 nos. of Tablet PCs to 10 State Government Schools in Vellore district of Tamilnadu. The project was successfully executed during 2012-13. No further business in this front and during the year small quantum supplied to TCIL.

10 CONTINGENT LIABILITIES

(a) Claims against the company not acknowledged as debt:

(i) Commercial Tax Department had demanded a sum of Rs.18,608,794 as Additional Sales Tax in respect of Financial Year 2000-2001 and 2001-2002 (up to November 2001). The company has obtained a Stay from Madras High Court against the collection of above demand by depositing a sum of Rs.7,500,000 with Commercial Tax Department as directed by the High Court while granting the stay. As the demand is disputed, the same is not provided for in the accounts. The case came up for hearing during Nov, 2011 and directions were issued to post the case along with the writ appeal before the Bench in another similar case where the judgement is in favour of the assessee.

(ii) The Sales Tax department has demanded a sum of Rs. 2,295,000 during the financial year 2006-07 for non submission of "C" Forms from BSNL / MTNL pertaining to AY 2001-02, 2002-03 and 2003-04. The Govt. has exempted "C" forms in respect of inter-state sales to BSNL / MTNL. The company has represented to the Department and also referred the matter to BSNL / MTNL.

(iii) The Customs Authority has demanded an amount of Rs. 3,155,226 towards difference in classification of Optical Fibre during the year 2006-07. However the order of the Commissioner of Customs has come in favour of the Company during the year 2009-10 dropping the proceedings. Department has gone for appeal against the order.

(iv) One of the clients M/s. Team Engineers, Hyderabad demanded for replacement of around 110 kms of cables for quality issues. All the cables are tested at manufacturing stage and at the final stage for manufacturing defects before leaving the factory. The company has noticed some technical defaults in the installation procedures followed by the said client. Hence the claim has not been acknowledged as debt. The equivalent value for 110 kms would be around Rs. 8,000,000.

(b) Guarantees:Guarantees arranged by TCIL in favour of the Company and issued by Banks outstanding as at March 31, 2014 is Rs.142,139,028 including expired Bank Guarantees to the extent of Rs.108,74,154 (previous year Rs.72,847,358 including expired Bank Guarantees to the extent of Rs. 110,03,977)

11. Commitments

(a) Estimated amount of Contracts remaining to be executed on Capital Account and not provided for during the year is Rs. ''Nil'' (previous year Rs. ''Nil'')

(b) Uncalled liability on shares and other investments which are partly paid up during the year is Rs.''Nil'' (previous year Rs.''Nil'')

12. The Company has no long term operating lease. No financial lease has been availed during the year.

13. A demand was raised by Income Tax Department towards tax to be deducted at source on Royalty amounting to Rs.2,542,165 (for the years 2000-01 & 2001-02). The company, has however, paid the entire amount of demand, out of which Rs. 2,193,733 is kept as recoverable. Appeal filed by the company for the above is pending in the Tribunal.

14. A writ petition has been filed by the Company in Madras High Court during the year 2008 against BSNL for reducing the awarded rate during the scheduled delivery period, in one of their orders without giving effect to BSNL''s amendment to the ''Fall clause'' applicable from 01.08.2005. BSNL has rejected and returned the differential claim invoice of the company for Rs.13,991,251. The case is pending in Madras High Court.

15. Figures of previous year have been regrouped / rearranged, wherever necessary, to conform to the current year''s classification.

16. Applicability of Companies Act, 2013:

Since it is notified as per General Circular No. 8/2014 dated 04.04.2014 issued by Ministry of Corporate Affairs that the financial statements as per Companies Act, 2013 is applicable with effect from Financial Year commencing from 01.04.2014, reference is made for Companies Act, 1956 wherever applicable.

III A civil suit has been filed by the company in Delhi High court on 31.03.2011 to stay the Advance Purchase Order issued by BSNL, HQ for supply of 42000 KMs of OFC. This is in addition to the purchase order issued during Jan, 2011 for supply of 18000 KMs. The order for OFC supply is with Nylon 12 jacketing and subsequently BSNL has changed the specification with HDPE Double sheathing. During the year 2011-12 BSNL has floated tender for 42000 KMs with the new specification. The case in Delhi High Court against the APO is in progress. The Company has also taken up with BSNL for short closure of the PO for supply of 18000 KMs or to invoke the Arbitration clause.

IV The Company has not received information from vendors regarding their status under the Micro, Small and Medium Enterprises Development Act, 2006 and hence the disclosure relating to amounts unpaid as at the year end together with interest paid / payable under this Act could not be ascertained

---

Mar 31, 2013

1 The Company is having a system of sending letters to the Debtors for confirming the balance as on the year end 31st March. However the balances of debtors, creditors, loans and advances (other than TCIL) are subject to confirmation.

2 a. No provision is made for certain long pending debtors Rs. 35,283,109 (previous year Rs. 35,283,109) in view of the arbitration proceeding completed against the Purchaser for which the Award is received in favour of the Company but has since been challenged by the Purchaser in the court. Further the court remitted back the case to the Arbitrator in one case for speaking orders. In another case the court has given the order in favour of the Company,

b. No provision is made for Rs. 1,339,656 (previous year Rs. 1,339,656) due from RailTel which is under arbitration. Arbitration proceedings in progress.

3 After restructuring as per the Sanctioned Scheme of BIFR during 2010-11, the net worth of the Company was more than the accumulated losses. However during the year 2011-12 the net worth has again eroded. The Company is already under rehabilitation period as per the BIFR Sanctioned Scheme. Lack of orders and dull phase of OFC market during the years 2010-11 and 2011-12 were .the reasons for the poor performance. However the Company has received order from BSNL for supply of 3206 KMs of OFC during the year valuing Rs. 159,701,104. The Company has successfully executed the order in time and got add-on order APO during first week of May,2013, for another 1602 KMs valuing Rs.79,800,740. The Company''s earlier expectation of good order from M/s.Reliance Ingoted has riot matured, since Reliance has changed their modus operandi. M/s.Bharat Broadband Network Limited (BBNL), the Special Purpose Vehicle of the Government, has floated the tender towards the National Optic Fiber Network (NOFN) project to connect all the villages by broad band. The date of tender opening was 08.05.2013. Though the initial projection was 600000 KMs, the tender called for is to cover 404995 KMs under six packages based on geographical location. For this huge quantum, ''BBNL has fixed the delivery time frame of eight months only including initial two months for preliminary arrangements. The Company has participated in one package considering its production capacity to cover the quantum in the given short delivery period. The Company is hopeful of getting orders to the extent of around 7000 KMs and the composite value expected is around Rs. 39 crores. The project is going to be funded by USOF. The Company has proposed to participate in another two big tenders of RailTel due for opening in May & June, 2013, covering 7726 KMs and the composite value expected is around Rs. 50 Crores, to be awarded to two parties. Even at 40% the expected value would be Rs. 20 crores. The Company is hoping to get continuous orders from 2013-14 onwards regularly since the OFC market is picking up. The order booking position is expected to be continuously good. Considering the scope during the immediate future and TCIL''s continuous financial support, the accounts have been prepared on going concern basis.

4 Land: The Company is in possession of free hold land from CMDA and the Tamilnadu State Govt, measuring around 9.82 acres. In case of sale of CMDA land by the company it has to be first offered to CMDA at the same purchase price. The land can be sold to other third parties only after getting NOC from CMDA. In the case of Tamilnadu State Govt, land it is to be utilized for the purpose for which it is allotted and surplus land if any, has to be surrendered.

5 As per Accounting Standard 15 "Employee Benefits", the disclosures of Employee benefits as defined in the Accounting Standard are given below:

Upto the year 2008-09 the Company has set up separate Trust for Provident Fund and has been contributing towards the same. In view of the fact that the Company is industrially sick as declared by BIFR and its net worth has fully eroded, the Provident Fund Commissioner-I has withdrawn with effect from 01.04.2009 the relaxation order issued under Para 79 of the Employees'' Provident Fund Scheme 1952, with a direction to remit the whole cash balance to EPF Account No.1 and the balance available in Special Deposit Account to Central Board of Trustees, Employees'' Provident Fund. During the year the Company has followed the directions of the Provident Fund Commissioner-I and remitted the monthly contributions to the concerned Regional Provident Fund Commissioner.

B) Defined Benefit Plan Gratuity (Un Funded) :

The Company provides for gratuity, a defined benefit retirement plan (the "Gratuity Plan") covering eligible employees. The Gratuity Plan provides a lump sum payment to vested employees at retirement, death, incapacitation or termination of employment, of an amount based on the respective employee''s salary and the tenure of employment. Vesting occurs upon completion of five years of sen/ice. Liabilities with regard to the Gratuity Plan are determined by actuarial valuation as of the balance sheet date. The present value of obligation is determined based on actuarial valuation using the Projected Unit Credit Method.

Note: The estimates of rate of escalation in salary considered in actuarial valuation, taken into account inflation, seniority, promotion anc| other relevant factors including supply and demand in the employment market. The above information is based on the valuation certified by the actuary. .

C) Leave encashment .

The employees of the Company are entitled to compensated absence. The employees can carry forward a portion of the unutilized accrued compensated absence and utilize it in future periods or receive cash compensation at retirement or termination of employment for the unutilized accrued compensated absence for a maximum of 240 days. The Company records an obligation for compensated absences in the period ih which the employee renders the services that increase this entitlement. The Company measures the expected cost of compensated absence as the additional amount that the Company expects to pay as a result of the unused entitlement that has accumulated at the balance sheet date based on actuarial valuations.

a) Current Tax: No provision for income tax is made in view of the current year loss and the accumulated losses of previous years available for set off.

b) Deferred tax: During the year the Company has not accounted/taken the credit/charge for the deferred tax assets/ liabilities. The excess of timing difference over the deferred tax liability has been ignored for want of reasonable

b) Change in plan assets - Unfunded

c) Reconciliation of present value of the obligation :

certainty of the company making taxable income in the near future. Similarly, for the same reason, certain other provisions made in the earlier years have been ignored for creation of deferred tax asset. The accumulated losses and carried forward depreciation under the tax laws have been ignored for creating the deferred tax asset considering that there is no reasonable certainty of the company making taxable income in the future in terms of para 26 of AS-22.

The treatment noted above is in accordance within the Accounting Standard 22 " Taxes on Income" notified under Sub section 3 ( C ) of Section 211 of the Companies Act, 1956.

6 Work-in-Progress under Inventories as on 31.03.2013 includes realizable scrap comprising short length cables, quality defects cables, excess production cables for operational reasons, type approval cables and disputed returned cables valuing Rs.13,503,182 (previous year Rs. 13,291,606). The above items are saleable with further processing and retesting to the same or other customers.

7 As stipulated in AS - 28, the company is of the view that assets employed in continuing business are capable of generating adequate returns over their useful life in the usual course of business. There is no indication to the company of impairment of any asset and accordingly the Management is of the view that no impairment provision is called for during the year.

8 The Company has undertaken on test basis, a new venture of assembling and supply of Tablet PCs to one of the promoters, M/s. Telecommunications Consultants India Limited (TCIL), towards TCIL''s CSR Project of supplying 150 nos. of Tablet PCs to 10 State Government Schools in Vellore district of Tamilnadu. During the year the company has assembled and supplied 150 nos. of Tablet PCs and imparted training at schools.

9 CONTINGENT LIABILITIES

(a) Claims against the company not acknowledged as debt:

(i) Commercial Tax Department had demanded a sum of Rs. 18,608,794 as Additional Sales Tax in respect of Financial Year 2000-2001 and 2001-2002 (up to November 2001). The company has obtained a Stay from

Madras High Court against the collection of above demand by depositing a sum of Rs.7,500,000 with Commercial

Tax Department as directed by the High Court while granting the stay. As the demand is disputed, the same is not provided for in the accounts. The case came up for hearing during Nov, 201 land directions were issued to post the case along with the writ appeal before the Bench in another similar case where the judgment is in favour of the assessed.

(ii) The Sales Tax department has demanded a sum of Rs. 2,295,000 during the financial year 2006-07 for non submission of "C" Forms from BSNL / MTNL pertaining to AY 2001-02, 2002-03 and 2003-04. The Govt, has exempted "C" forms in respect of inter-state sales to BSNL / MTNL. The company has represented to the

Department and also referred the matter to BSNL / MTNL.

(iii) The Customs Authority has demanded an amount of Rs. 3,155,226 towards difference in classification of Optical Fabre during the year 2006-07. However the order of the Commissioner of Customs has come in favor of the Company during the year 2009-10 dropping the proceedings. Department has gone for appeal against the order.

(iv) One of the clients M/s. Team Engineers, Hyderabad demanded for replacement of around 110 kms of cables . for quality issues. All the cables are tested at manufacturing stage and at the final stage for manufacturing defects before leaving the factory. The company has noticed some technical defaults in the installation procedures followed by the said client. Hence the claim has not been acknowledged as debt. The equivalent value for 110 kms would be around Rs. 8,000,000.

(b) Guarantees: ,

Guarantees arranged by TCIL in favour of the Company and issued by Banks outstanding as at March 31, "2013 is Rs.72,847,358 (previous year Rs.69,193,957)

10 Commitments

(a) Estimated amount of Contracts remaining to be executed on Capital Account and not provided for during the year is Rs.''Nil" (previous year Rs. ''Nil'')

(b) Uncalled liability on shares and other investments which are partly paid up during the year is Rs.''Nil'' (previous year Rs.''Nil'')

11 The Company has no long term operating lease. No financial lease has been availed during the year.

12 A demand was raised by Income Tax Department towards tax to be deducted at source on Royalty amounting to Rs.2,542,165 (for the years 2000-01 & 2001-02). The company, has however, paid the entire amount of demand, out of which Rs. 2,193,733 is kept as recoverable. Appeal filed by the company for the above is pending in the Tribunal.

13 A writ petition has been filed by the Company in Madras High Court during the year 2008 against BSNL for reducing the awarded rate during the scheduled delivery period, in one of their orders without giving effect to BSNL''s amendment to the ''Fall clause'' applicable from 01.08.2005. BSNL has rejected and returned the differential claim invoice of the company for Rs.13,991,251. This amount has been accounted during the year 2011-12 as prior period income. The case is pending in Madras High Court.

14 Figures of previous year have been regrouped / rearranged, wherever necessary, to conform to the current year''s classification. .

III A civil suit has been filed by the company in Delhi High court on 31.03.2011 to stay the Advance Purchase Order issued by BSNL, HQ for supply of 42000 KMs of OFC. This is in addition to the purchase order issued during Jan, 2011 for supply of 18000 KMs. The order for OFC supply is with Nylon 12 jacketing and subsequently BSNL has changed the specification with HDPE Double sheathing. During the year 2011-12 BSNL has floated tender for 42000 KMs with the new specification. The case in Delhi High Court against the APO is in progress.

IV The Company has not received information from vendors regarding their status under the Micro, Small and Medium Enterprises Development Act, 2006 and hence the disclosure relating to amounts unpaid as at the year end together with interest paid / payable under this Act could not be ascertained

V Related Party Disclosures : Disclosures as required by the Accounting Standard 18 "Related Party Disclosures" are given below: , ''

List of Related Parties:

Associate Companies 1. M/s. Fujikura Ltd., Japan - Technical Collaborator & Equity Partner

2. Telecommunications Consultants India Ltd., New Delhi - Equity Partner .

Key Managerial Personnel Shri.V.S.Parameswaran, Managing Director

---

Mar 31, 2012

1 The Company is having a system of sending letters to the Debtors for confirming the balance as on the year end 31st March. However the balances of debtors(only two confirmed), creditors, loans and advances (other than TCIL) are subject to confirmation.

2 a. No provision is made for certain long pending debtors Rs. 35,283,109 (previous year Rs. 35,283,109 ) in view of

- the arbitration proceeding completed against the Purchaser for which the Award is received in favour of the

- Company but has since been challenged by the Purchaser in the court. Further the court remitted back the case to ’ the Arbitrator in one case for speaking orders.

b. No provision is made for Rs. 1,339,656 due from IRCQN which is under arbitration. Arbitration proceedings in progress.

3 After restructuring as per the Sanctioned Scheme of BIFR, the net worth of the Company was more than the accumulated losses. However during the year the net worth has again eroded. The Company is already under rehabilitation period as per the BIFR Sanctioned Scheme. Lack of orders and dull phase of OFC market during the years 2010-11 and 2011-12

were the reasons for the poor performance. However the Company has already received order from BSNL for supply of 3206 KMs of OFC valuing Rs. 156,890,836. The Company is confident of getting Reliance InfoTel order for supply of 48F OFC and the volume is expected to be around Rs. 33 crores. The National Optic Fiber Network (NOFN) project of the iGovt.of India to connect all the villages by broad band is likely to take off during 2012-13 wherein the total requirement of OFC is around 600,000 KMs which is to be funded by USOF. The OFC orders are expected by middle of 2012-13. Even at minimum of 5% Company is hopeful of getting 30000 KMs expected to be around Rs. 147 crores, and the design and ' fiber count is likely to be the same of BSNL. The above order in hand / projected orders are expected to yield net revenue of around Rs. 11 crores during 2012-13 and 2013-14. From 2012-13 onwards the OFC market is expected to pick up in a big way. Considering the scope during the immediate future and TCIL’s continuous financial support, the accounts have been prepared on going concern basis.

4 Land: The Company is in possession of free hold land from CMDA and the Tamilnadu State Govt, measuring around 9.82 acres. In case of sale of CMDA land by the company it has to be first offered to CMDA at the same purchase price. The land can be sold to other third parties only after getting NOC from CMDA. In the case of Tamilnadu State Govt.land it is to be utilised for the purpose for which it is allotted and surplus land if any, has to be surrendered.

5 As per Accounting Standard 15 “Employee Benefits", the disclosures of Employee benefits as defined in the Accounting Standard are given below:

A) Defined contribution Plan

Contribution to Defined Contribution Plan, recognized as expense for the year are as under:

Upto the year 2008-09 the Company has set up separate Trust for Provident Fund and has been contributing towards the same. In view of the fact that the Company is industrially sick as declared by BIFR and its net worth has fully eroded, the Provident Fund Commissioner-I has withdrawn with effect from 01.04.2009 the relaxation order issued under Para 79 of the Employees’ Provident Fund Scheme 1952, with a direction to remit the whole cash balance to EPF Account No.1 and the balance available in Special Deposit Account to Central Board of Trustees, Employees’ Provident Fund. During the year the Company has followed the directions of the Provident Fund Commissioner-I.

B) Defined Benefit Plan Gratuity (Un Funded):

The Company provides for gratuity, a defined benefit retirement plan (the “Gratuity Plan") covering eligible employees. The Gratuity Plan provides a lump sum payment to vested employees at retirement, death, incapacitation or termination of employment, of an amount based on the respective employee's salary and the tenure of employment. Vesting occurs upon completion of five years of service. Liabilities with regard to the Gratuity Plan are determined by actuarial valuation as of the balance sheet date. The present value of obligation is determined based on actuarial valuation using the Projected Unit Credit Method.

C) Leave encashment

The employees of the Company are entitled to Compensated absence^ The employees can carry forward a portion of the unutilized accrued compensated absence and utilize it in future periods or receive cash compensation at retirement or termination of employment for the unutilized accrued compensated absence for a maximum of 240 days. The Company records an obligation for compensated absences in the period in which the employee renders the sen/ices that increase this entitlement. The Company measures the expected cost of compensated absence as the additional amount that the Company expects to pay as a result of the unused entitlement that has accumulated at the-balance sheet date based on actuarial valuations.

6 a) Current Tax: No provision for income tax is made in view of the current year loss and the accumulated losses of previous years available for set off.

b) Deferred tax: During the year the Company has not accounted/taken the credit/charge for the deferred tax assets/ liabilities. The excess of timing difference over the deferred tax liability has been ignored for want of reasonable certainty of the company making taxable income in the near future. Similarly, for the same reason, certain other provisions made in the earlier years have been ignored for creation of deferred tax asset. The accumulated losses and carried forward depreciation under the tax laws have been ignored for creating the deferred tax asset considering that there is no reasonable certainty of the company making taxable income in the future in terms of para 26 of AS-22.

The treatment noted above is in accordance with the Accounting Standard 22 “ Taxes on Income" notified under

Sub section 3( C ) of Section 211 of the Companies Act, 1956. .

7 Work-in-Progress under Inventories as on 31.03.2012 includes realizable scrap comprising short length cables, quality defects cables, excess production cables for operational reasons, type approval cables and disputed returned cables valuing Rs. 13,291,606. The above items are saleable with further processing and re-testing to the same or other customers

8 As stipulated in AS - 28, the company is of the view that assets employed in continuing business are capable of generating adequate returns over their useful life in the usual course of business. There is no indication to the company of impairment of any asset and accordingly the Management is of the view that no impairment provision is called for during the year.

9 CONTINGENT LIABILITIES

(a) Claims against the company not acknowledged as debt:

(i) Commercial Tax Department had demanded a sum of Rs.18,608,794 as Additional Sales Tax in respect of Financial Year 2000-2001 and 2001-2002 (up to November 2001). The company has obtained a Stay from Madras High Court against the collection of above demand by depositing a sum of Rs.7,500,000 with Commercial Tax Department as directed by the High Court while granting the stay. As the demand is disputed, the same is not provided for in the accounts. The case came up for hearing during Nov, 2011 and directions were issued to post the case along with the writ appeal before the Bench in another similar case where the judgement is in favour of the assessee. ......

(ii) The Sales Tax department has demanded a sum of Rs. 2,295,000 during the financial year 2006-07 for non submission of “C" Forms from BSNL / MTNL pertaining to AY 2001-02, 2002-03 and 2003-04. The Govt, has exempted “C" forms in respect of inter-state sales to BSNL / MTNL. The company has represented to the Department and also referred the matter to BSNL / MTNL.

(iii) The Customs Authority has demanded an amount of Rs.3,155,226 towards difference in classification of Optical Fibre during the year 2006-07. However the order of the Commissioner of Customs has come in favour of the Company during the year 2009-10 dropping the proceedings. Department has gone for appeal against the order. :f:

(iv) One of the clients M/s. Team Engineers, Hyderabad demanded for replacement of around 110 kms of cables for quality issues. All the cables are tested at manufacturing stage and at the final stage for manufacturing defects before leaving the factory. The company has noticed some technical defaults in the installation procedures followed by the said client. Hence the claim has not been acknowledged as debt. The equivalent value for 110 kms would be around Rs. 8,000,000.

(b) Guarantees: -

Guarantees arranged by TCIL in favour of the Company and issued by Banks outstanding as at MarjEh 31, 2012 is Rs.69,193,957 (Previous year Rs.66,828,035)

10 Commitments

(a) Estimated amount of Contracts remaining to be executed on Capital Account and not provided for during the year

is Rs. ‘Nil’ (previous year Rs. ‘Nil’)

(b) Uncalled liability on shares and other investments which are partly paid up during the year is Rs.’Nil’ (previous year Rs.’Nil’) -

11 The Company has no long term operating lease. No financial lease has been availed during the year

12 A demand was raised by Income Tax Department towards tax to be deducted at source on Royalty amounting to Rs.2,542,165 (for the years 2000-01 & 2001-02). The company, has however, paid the entire amount of demand, out of which Rs. 2,193,733 is kept as recoverable. Appeal filed by the company for the above is pending in the Tribunal.

13 A writ petition has been filed by the Company in Madras High Court during the year 2008 against BSNL for reducing the awarded rate during the scheduled delivery period, in one of their orders without giving effect to BSNL’s amendment to the ‘Fall clause’ applicable from 01.08.2005. BSNL has rejected and returned the differential claim invoice of the company for Rs. 13,991,251. This amount has been accounted during the year as prior period income. ,

14 Figures of previous year have been regrouped / rearranged to conform to the current year’s classification as per the revised Schedule VI format

III A civil suit has been filed by the company in Delhi High court on 31.03.2011 to stay the Advance Purchase Order issued by BSNL, HQ for supply of 42000 KMs of OFC. This is in addition to the purchase order issued during Jan, 2011 for supply of 18000 KMs. The order for OFC supply is with Nylon 12 jacketing and subsequently BSNL has changed the specification with HDPE Double sheathing. During the year BSNL has floated tender for 42000 KMs with the new specification. The case in Delhi High Court against the APO is in progress.

IV The Company has not received information from vendors regarding their status under the Micro, Small and Medium Enterprises Development Act, 2006 and hence the disclosure relating to amounts unpaid as at the year end together with interest paid / payable under this Act could not be ascertainede

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Mar 31, 2011

1 Sanction Scheme issued by BIFR

a. During the year BIFR has issued a Sanctioned Scheme to the Company and accordingly restructuring has been made in the books of accounts. Rs. 1543.27 lakhs loans / credit of M/s. Telecommunications Consultants India Limited (TCIL) have been converted into equity at face value. TCIL has provided Rs. 1165.73 lakhs as bridge loan towards settlement of OTS to consortium bankers and for remittance of compensation to the Govt of Tamil Nadu land.

b. Part of the loans amounting to Rs.758.33 lakhs of the three consortium bankers viz.. State Bank of India, Andhra Bank and Punjab National Bank have been converted into equity at face value. Another part of the loans amounting to Rs. 885.02 Lakhs (Net after adjustment of margin money deposits with interest) settled to the three consortium bankers under OTS and balance loans of Rs. 979.71 Lakhs of the three consortium bankers waived off. The same has been given effect in the books of account. The waived off portion has been treated as "Capital Restructuring Reserve" in the books of account

c. After restructuring as per the Sanctioned Scheme of BIFR, the net worth of the Company is more than the accumulated losses and hence the accounts have been prepared on going concern basis.

2. Secured Loans

Bridge loan from TCIL is secured on all the fixed assets as well as current assets of the Company as at present existing and to be acquired in future. The formalities for creation of charge are being carried out

3. The Company is having a system of sending letters to the Debtors for confirming the balance as on the year end 31st March. However the balances of debtors, creditors, Loans and advances (other than TCIL) are subject to confirmation.

4. a. No provision is made for certain long pending debtors Rs. 3.52 crores (previous year Rs 3 52 crores) in view of the arbitration proceeding completed against the Purchaser for which the Award is received in favour of the Company but has since been challenged by the Purchaser in the court Further the court remitted back the case to the Arbitrator in one case for speaking orders

b. No provision is made for Rs. 13.40 lakhs due from IRCON which-is under arbitration. Arbitration proceedings in progress.

5. a. Special State Capital Subsidy of Rs.20 lakhs received during the year 2001-02 from Government of Tamilnadu towards capital outlay of Optical Fiber Project at' Maraimalai Nagar is treated as Capital Reserve

b. Proportionate depreciation of Rs. 206,800 on the assets acquired thereon was being credited to profit and loss account every year. During the year balance depreciation of Rs. 138.800 has been credited to profit and loss account and fully adjusted.

6. The company, as a measure of cost control, implemented Voluntary Separation Scheme (VSS) for its employees till 2006-07 and the unadjusted balances at the beginning of the year was Rs. 3.40 Lakhs. Entire Rs.3.40 Lakhs has been adjusted during the year.

7. Land: In respect of the OFC project at Maraimalai Nagar, the Land has been capitalized based on the possession certificate and lease cum sale agreement of Govt of Tamil Nadu and CMDA respectively. The sale deed for CMDA land has been executed during 2006-07. During the year, compensation for the Govt.of Tamil Nadu land measuring about 2.98 hectares has been remitted out of the bridge loan received from TCIL, and the Land Delivery Order is awaited from the Govt.of Tamil Nadu.

8. As per Accounting Standard 15 "Employee Benefits", the disclosures of Employee benefits as defined in the Accounting Standard are given below:

A) Defined Contribution Plan

Contribution to Defined Contribution Plan, recognized as expense for the year are as under:

Upto the year 2008-09 the Company has set up separate Trust for Provident Fund and has been contributing towards the same. In view of the fact that the Company is industrially sick as declared by BIFR and its networth has fully eroded, the Provident Fund Commissioner-I has withdrawn with effect from 01.04.2009 the relaxation order issued under Para 79 of the Employees' Provident Fund Scheme 1952, with a direction to remit the whole cash balance to EPF Account No.1 and the balance available in Special Deposit Account to Central Board of Trustees, Employees' Provident Fund. During the year the Company has followed the directions of the Provident Fund Commissioner-I.

B) Defined Benefit Plan

Gratuity (Un Funded):

The Company provides for gratuity, a defined benefit retirement plan (the "Gratuity Plan") covering eligible employees. The Gratuity Plan provides a lump sum payment to vested employees at retirement, death, incapacitation or termination of employment, of an amount based on the respective employee's salary and the tenure of employment. Vesting occurs upon completion of five years of service. Liabilities with regard to the Gratuity Plan are determined by actuarial valuation as of the balance sheet date. The present value of obligation is determined based on actuarial valuation using the Projected Unit Credit Method.

The following table set out the status of the gratuity plan as required under AS 15

b) Change in plan assets - Unfunded

d) Gratuity cost for the year ended March 31 2011

Note: The estimates of rate of escalation in salary considered in actuarial valuation, taken into account inflation, seniority, promotion and other relevant factors including supply and demand in the employment market. The above information is based on the valuation certified by the actuary.

C) Leave encashment

The employees of the Company are entitled to compensated absence. The employees can carry forward a portion of the unutilized accrued compensated absence and utilize it in future periods or receive cash compensation at retirement or termination of employment for the unutilized accrued compensated absence for a maximum of 240 days. The Company records an obligation for compensated absences in the period in which the employee renders the services that increase this entitlement. The Company measures the expected cost of compensated absence as the additional amount that the Company expects to pay as a result of the unused entitlement that has accumulated at the balance sheet date based on actuarial valuations.

9 Dues against material credit facility provided by TCIL is secured on the raw materials, work-in-progress, finished goods, book debts and all the fixed assets of the Company

10. (1) Estimated value of contracts yet to be executed on account of capital work not provided for is NIL. (Previous year Rs. Nil).

11. Taxation :

a. Current Tax: No provision for income tax is made in view of the current year loss and the accumulated losses of previous years available for set off.

b. Deferred tax: During the year the Company has not accounted/taken the credit/charge for the deferred tax assets/liabilities. The excess of timing difference over the deferred tax liability has been ignored for want of reasonable certainty of the company making profits in the near future. Similarly, for the same reason, certain other provisions made in the earlier years have been ignored for creation of deferred tax asset. The losses and carried forward depreciation under the tax laws have been ignored for creating the deferred tax asset considering that there is no virtual certainty of the company making profits in the future. The treatment noted above is in accordance with the Accounting Standard 22 " Taxes on Income" notified under Sub section 3 (C) of Section 211 of the Companies Act, 1956.

13. Contingent Liability

a. On account of Guarantees issued by Banks outstanding as at March 31, 2011 is Rs. 668.28 lakhs (Previous year Rs. 337.44 lakhs) out of which Rs. 668.28 lakhs (previous year Rs. 320.78 lakhs) pertain to the banks arranged by TCIL.

b. Commercial Tax Department had demanded a sum of Rs. 186.09 lakhs as Additional Sales Tax in respect of Financial Year 2000-2001 and 2001-2002 (up to November 2001). The company has obtained a Stay from Madras High Court against the collection of above demand by depositing a sum of Rs.75 lakhs with Commercial Tax Department as directed by the High Court while granting the stay. As the demand is disputed, the same is not provided for in the accounts. Will be taken up at appropriate time for consideration as directed in the Sanctioned Scheme of BIFR.

c. The Sales Tax department has demanded a sum of Rs. 22.95 lakhs during the financial year 2006-07 for non submission of "C" Forms from BSNL / MTNL pertaining to AY 2001-02, 2002-03 and 2003-04. Govt, has exempted "C" forms in respect of inter-state sales to BSNL / MTNL. The company has represented to the Department. The company has also referred the matter to BSNL / MTNL.

d. The Customs Authority has demanded an amount of Rs. 31.55 lakhs towards difference in classification of Optical Fibre during the year 2006-07. However the order of the Commissioner of Customs has come in favour of the Company during the year 2009-10 dropping the proceedings. Department has gone for appeal against the order.

14. Managerial Remuneration :

Particulars of Managerial Remuneration of Managing Director Shri M. Sengupta

In addition, the Managing Director is allowed the use of car for private purpose to the limits prescribed by the department of Public Enterprises from time to time, on payment of Rs.250/- per month.

15. Dividend paid to Non-resident shareholder(s): Nil (last year Nil )

16. The company has no long term operating lease. No financial lease has been availed during the year.

17 A demand was raised by Income Tax Department towards tax to be deducted at source on Royalty amounting to Rs.25.41 lakhs (for the years 2000-01 & 2001-02). The company, has however, paid the entire amount of demand. Out of which Rs. 21.94 lakhs is kept as recoverable in Loans and Advances. Appeal for the above is pending in the Tribunal.

18. Figures of previous year have been regrouped / rearranged, wherever necessary, to conform to the current year's classification.

IV The Company has not received information from vendors regarding their status under the Micro, Small and Medium Enterprises Development Act, 2006 and hence the disclosure relating to amounts unpaid as at the year end together with interest paid / payable under this Act could not be ascertained.

V Related Party Disclosures : Disclosures as required by the Accounting Standard 18 "Related Party Disclosures" are given below :

List of Related Parties

Associate Companies 1. M/s. Fujikura Ltd., Japan Technical Collaborator & Equity Partner

2. Telecommunications Consultants India Ltd., New Delhi. - Equity Partner

Key Managerial Personnel - Shri. M. Sengupta, Managing Director

VI. Segment Reporting: The company's sole business segment is 'Telephone Cables' and the only geographical segment is India. Consequently the need for separate disclosure as required under Accounting Standard - 17 viz. Segment Reporting is not considered relevant.

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Mar 31, 2010

1. During the year the Company has increased its Authorised Share Capital from Rs. 30 crores to Rs. 50 crores consisting 50000000 Equity shares of Rs. 10 each, as approved in the AGM conducted on 30th September 2009.

2. Secured Loans

a. Term Loans from State Bank of India and Punjab National Bank, working capital Term loans and Funded Interest Term Loans from Consortium of Bankers comprising of State Bank of India, Andhra Bank and Punjab National Bank are secured by way of equitable mortgage of land and factory building at Maraimalai Nagar and hypothecation of Fixed Assets at Maraimalai Nagar .

b. Working Capital Loans from banks are in the form of Cash Credit, bills paid by banks under Letters of credit and External Commercial Borrowings. They are secured by way of hypothecation of Raw Materials, Work-in-progress, Finished Goods, Book Debts and Spares and also by way of Second charge on the Fixed Assets of the Company.

c. Term loan from M/s. Telecommunications Consultants of India Limited (TCIL) is secured by way of second charge on Fixed Assets and Current Assets of the Company, on pari-passu basis with Consortium Banks.

d. During the year 2004-05, based on the approval of the CDR cell the lenders had restructured the loans including reduction in the interest rates. But the accounts have become irregular during the year 2007-08 due to industry reasons and company being in the phase of revival.

3. The Accumulated losses of the company had exceeded its net worth. The Board for Industrial and Financial Reconstruction (BIFR), vide its order dated 16.05.2006, formed the view that the company had fully eroded its net worth and accordingly appointed State Bank of India (SBI) as Operating Agency (OA) under Section 17(3) of SICA for formulating Revival Scheme. However, the company is striving hard to improve the operational and economic performance of the unit. The methods include restructuring the operations, cost control, One-time-settlement / corporate debt restructuring through BIFR and other measures. This would result in significant improvement and turnaround in due course. Based on above the OA has submitted the final DRS of the Company to BIFR on 05.02.2010. After evaluation BIFR has published the scheme in newspaper for Suggestions / objections giving a period of 60 days. Approval of the scheme is expected very shortly. In view of the foregoing, the accounts have been prepared on going concern basis.

4. The Company is having a system of sending letters to the Debtors for confirming the balance as on the year end 31st March. However the balances of debtors, creditors, Loans and advances (other than TCIL) are subject to confirmation.

5. No provision is made for certain long pending debtors Rs. 3.52 crores (previous year Rs. 3.52 crores) in view of the arbitration proceeding completed against the Purchaser for which the Award is received in favour of the Company but has since been challenged by the Purchaser in the court. Further the court remitted back the case to the Arbitrator in one case for speaking orders.

6. a. Special State Capital Subsidy of Rs.20 lakhs received during the year 2001-02 from Government of Tamilnadu towards capital outlay of Optical Fiber Project at Maraimalai Nagar is treated as Capital Reserve.

b. Proportionate depreciation of Rs. 206,800 on the assets acquired thereon is being credited to profit and loss account every year.

7. The company, as a measure of cost control, implemented Voluntary Separation Scheme (VSS) for its employees till 2006-07 and the unadjusted balances at the beginning of the year was Rs. 21.29 Lakhs. One-fifth portion of the total VSS amount has been charged as expense of this year (Rs. 17.89 lakhs). Remaining portion of Rs. 3.40 Lakhs is considered under Deferred Revenue Expenditure to be amortized in the succeeding year.

8. Land: In respect of the OFC project at Maraimalai Nagar, the Land has been capitalized based on the possession certificate and lease cum sale agreement of Govt of Tamil Nadu and CMDA respectively. The sale deed for CMDA land has been executed during 2006-07. But the sale deed of the Tamil Nadu Govt land measuring about 2.98 hectares is yet to be finalized. For this land, as per the Government GO dated 23/10/2001, the compensation was fixed at Rs. 6975 per cent in the year 1995. As per the order dated 06.09.2008 with subsequent appreciation of nominal value at 12% p.a. the value has been worked out and accounted during the year in the books of account.

9. (i) Company has pursued the banks for one-time-settlement with the cut-off-date 31.3.2007. Though consortium banks have approved the proposal the final DRS submitted to BIFR is awaiting final approval. In view of this, interest for the year Rs. 297 lakhs on bank loans including cash credit has not been provided ( previous year Rs. 346 lakhs). Cumulative interest as on 31.03.2010 not provided is Rs. 957 Lakhs (previous year Rs. 660 Lakhs)

(ii) The interest amounts set off by the banks out of cash credit or margin amounts during the year and the excess of past years over and above the interest rate approved by CDR Empowerment Committee have been accounted as dues receivable from banks (Rs. 46.72 lakhs) under Loans and Advances which will be adjusted when DRS is finally approved by BIFR.

B. Defined Benefit Plan

Gratuity (Un Funded) :

The Company provides for gratuity, a defined benefit retirement plan (the “Gratuity Plan”) covering eligible employees. The Gratuity Plan provides a lump sum payment to vested employees at retirement, death, incapacitation or termination of employment, of an amount based on the respective employees salary and the tenure of employment. Vesting occurs upon completion of five years of service. Liabilities with regard to the Gratuity Plan are determined by actuarial valuation as of the balance sheet date. The present value of obligation is determined based on actuarial valuation using the Projected Unit Credit Method.

C. Leave encashment

The employees of the Company are entitled to compensated absence. The employees can carry forward a portion of the unutilized accrued compensated absence and utilize it in future periods or receive cash compensation at retirement or termination of employment for the unutilized accrued compensated absence for a maximum of 240 days. The Company records an obligation for compensated absences in the period in which the employee renders the services that increase this entitlement. The Company measures the expected cost of compensated absence as the additional amount that the Company expects to pay as a result of the unused entitlement that has accumulated at the balance sheet date based on actuarial valuations.

10. In respect of balances with scheduled Banks in Margin Money Deposit Accounts amounting to Rs. 51.91 lakhs (previous year Rs. 48.87 lakhs), the deposit receipts are under lien against Letter of Credit and Bank Guarantee to Bank.

11. Taxation :

a. Current Tax: No provision for income tax is made in view of the current year loss and the accumulated losses of previous years available for set off.

b. Deferred tax: During the year the Company has not accounted/taken the credit/charge for the deferred tax assets/liabilities. The excess of timing difference over the deferred tax liability has been ignored for want of reasonable certainty of the company making profits in the future as the final DRS submitted to BIFR is awaiting approval. Similarly, for the same reason, certain other provisions made in the earlier years have been ignored for creation of deferred tax asset. The losses and carried forward depreciation under the tax laws have been ignored for creating the deferred tax asset considering that there is no virtual certainty of the company making profits in the future as the final DRS submitted to BIFR is awaiting approval. The treatment noted above is in accordance with the Accounting Standard 22 " Taxes on Income" notified under Sub section 3 ( C ) of Section 211 of the Companies Act, 1956.

12. Contingent Liability

a. On account of Guarantees issued by Banks outstanding as at March 31, 2010 is Rs. 337.44 lakhs (Previous year Rs. 492.99 lakhs) out of which Rs. 320.78 lakhs (previous year Rs. 375.04 lakhs) pertain to the banks other than that of consortium banks.

b. Commercial Tax Department had demanded a sum of Rs.186.09 lakhs as Additional Sales Tax in respect of Financial Year 2000-2001 and 2001-2002 (up to November 2001). The company has obtained a Stay from Madras High Court against the collection of above demand by depositing a sum of Rs.75 lakhs with Commercial Tax Department as directed by the High Court while granting the stay. As the demand is disputed, the same is not provided for in the accounts. Relief / exemption requested in the DRS submitted to BIFR.

c. The Sales Tax department has demanded a sum of Rs. 22.95 lakhs during the financial year 2006-07 for non submission of “C” Forms from BSNL / MTNL pertaining to AY 2001-02, 2002-03 and 2003-04. Govt. has exempted “C” forms in respect of inter-state sales to BSNL / MTNL. The company has represented to the Department. The company has also referred the matter to BSNL / MTNL. Relief / exemption requested in the DRS submitted to BIFR.

d. The Customs Authority has demanded an amount of Rs. 31.55 lakhs towards difference in classification of Optical

Fibre during the year 2006-07. However the order of the Commissioner of Customs has come in favour of the Company during the year dropping the proceedings.

13. Dividend paid to Non-resident shareholder(s) : Nil ( last year Nil)

14. The company has no long term operating lease. No financial lease has been availed during the year.

15. A demand was raised by Income Tax Department towards tax to be deducted at source on Royalty amounting to Rs.25.41 lakhs (for the years 2000-01 & 2001-02). The company, has however, paid the entire amount of demand. Out of which Rs. 21.94 lakhs is kept as recoverable in Loans and Advances. Appeal for the above is pending in the Tribunal. Relief / exemption requested in the DRS submitted to BIFR.

16. Figures of previous year have been regrouped / rearranged, wherever necessary, to conform to the current years classification.

IV The Company has not received information from vendors regarding their status under the Micro, Small and Medium Enterprises Development Act, 2006 and hence the disclosure relating to amounts unpaid as at the year end together with interest paid / payable under this Act could not be ascertained.

V Related Party Disclosures : Disclosures as required by the Accounting Standard 18 "Related Party Disclosures" are given below :

List of Related Parties

Associate Companies 1. M/s. Fujikura Ltd., Japan Technical

Collaborator & Equity Partner

2. Telecommunications Consultants India

Ltd., New Delhi. - Equity Partner

Key Managerial Personnel - Shri. M. Sengupta, Managing Director

VI. Segment Reporting: The companys sole business segment is Telephone Cables and the only geographical segment is India. Consequently the need for separate disclosure as required under Accounting Standard - 17 viz. Segment Reporting is not considered relevant.