u) Provisions and Contingent Liabilities

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

If the effect of the time value of money is material,
provisions are discounted using a current pre-tax
rate that reflects, when appropriate, the risks
specific to the liability. When discounting is used,
the increase in the provision due to the passage
of time is recognised as a finance cost.

i. Asset Retirement Obligation (ARO)

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

ii. Contingent Liabilities

A Contingent Liability is disclosed where
there is a possible obligation or a present
obligation that may, but probably will not,
require an outflow of resources. Contingent
Assets are not recognised.

iii. Onerous Contract

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

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

v) Business Combinations

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

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

w) Segment Information

The Chief Operating Decision maker primarily
focusses on Mobility business in making decisions
on operating matters and on allocating resources
in evaluating performance. Accordingly, the
Company operates only in one reportable segment

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

x) Events after reporting date

Events occurring after the reporting date and up
to the date of approval of the financial statements
are considered for adjustment or disclosure in
accordance with applicable accounting standards.

y) Recent pronouncements

The Ministry of Corporate Affairs (MCA) has notified
certain amendments to existing Indian Accounting
Standards (Ind AS) which are applicable for the
current and future financial years.

(A) Standards notified and adopted by the
Company (Effective from April 1, 2025)

Amendments to Ind AS 1 - Presentation of
Financial Statements

The amendment relates to classification of liabilities
as current or non -current and non-current liabilities
with covenants. In the context of classifying a
liability as current, it removes the requirement of
existence of a right to defer settlement for at least
12 months after the reporting date, and instead
requires that the said right should exist on the
reporting date and have substance.

Amendments to Ind AS 7 and Ind AS 107

New disclosure requirements have been introduced
to enhance transparency regarding supplier finance
arrangements (e.g., reverse factoring). Entities are
now required to disclose the terms and conditions,
the carrying amount of financial liabilities under such
arrangements, and the associated liquidity risk.

Amendments to Ind AS 12 - Income Taxes
(Pillar Two Model Rules)

The amendments provide mandatory temporary
exception to the accounting for deferred taxes

arising from Pillar Two model rules published by
the Organisation for Economic Co-operation and
Development (OECD).

Ind AS 21 - The Effects of Changes in
Foreign Exchange Rates

The amendments clarify when a currency is
exchangeable into another and how an entity
should determine a spot exchange rate when
exchangeability is lacking.

(B) Standards notified but not yet effective
(Effective on or after April 1, 2026)

Ind AS 1 - Non-current Liabilities with
Covenants (Removal of Carve-outs)

Starting April 1, 2026, the MCA has removed
certain carve-outs vis-a-vis IAS 1. A breach of
covenant at the reporting date will require the
liability to be classified as current even if a waiver
is obtained after the reporting date but before the
approval of financial statements.

The Company has reviewed the amendment and
based on its evaluation has determined that it
does not have any significant impact of above
amendments on its financial statements for the
year ended March 31, 2026.

7. USE OF ESTIMATES, ASSUMPTIONS AND
JUDGEMENTS

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

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

beyond the control of the Company. Such changes are

reflected in the assumptions when they occur.

i. Taxes

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

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

Minimum alternative tax (MAT) is recognized as
an asset only when and to the extent there is
convincing evidence that the Company will pay
normal income tax and will be able to utilize such
credit during the specified period. In the year in
which the MAT credit becomes eligible to be
recognized as an asset, the said asset is created
by way of a credit to the Statement of Profit and
loss and is included in Deferred Tax Assets. The
Company review the same at each Balance Sheet
date and if required, writes down the carrying
amount of MAT credit entitlement to the extent
there is no longer convincing evidence to the effect
that Company will be able to absorb such credit
during the specified period. Further details about
taxes refer note 54 and 55.

ii. Defined benefit plans (gratuity)

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

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

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

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

Further details about gratuity obligations are given
in note 52 (A).

iii. Allowance for Trade receivable

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

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

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

The residual values, useful lives and methods of
depreciation or amortisation of property, plant and
equipment and Intangible assets respectively are
reviewed by the management at each financial year

end and adjusted prospectively over the remaining
useful life.

v. Leases - Estimating the incremental
borrowing rate

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

vi. Leases-Estimate of lease period

Ind AS 116 requires lessees to determine the
lease term as the non-cancellable period of a lease
adjusted with any option to extend or terminate
the lease, if the use of such option is reasonably

certain. The Company makes an assessment on
the expected lease term on a lease-by-lease basis
and thereby assesses whether it is reasonably
certain that any options to extend or terminate
the contract will be exercised.

vii. Provisions and Contingent Liabilities

Provisions and contingent liabilities are reviewed
at each balance sheet date and adjusted to
reflect the current best estimates. Evaluations
of uncertain provisions and contingent liabilities
and assets requires judgement and assumptions
regarding the probability of realization and the
timing and amount, or range of amounts, that may
ultimately be incurred. Such estimates may vary
from the ultimate outcome as a result of differing
interpretations of laws and facts. Refer note 45
for details about Contingent liabilities.

viii. Deferred Payment Obligation - AGR -
Discounting rate

The Company uses the interest rate considered by
DoT for similar payments as incremental borrowing
rate for discounting the liability, as applicable.

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

⁽¹⁾ Capital reserve comprises of capital receipt, received as compensation from an erstwhile Joint Venture partner for failure to subscribe
in the equity shares of erstwhile Vodafone India Limited (“VInL”) in earlier years, settlement liability created on merger of erstwhile VInL
and erstwhile Vodafone Mobile Services Limited (“VMSL”) with the Company and impacts pursuant to merger of Aditya Birla Telecom
Limited (“ABTL”) with the Company.

⁽²⁾ Capital reduction reserve was created by VInL on distribution of VInL’s share in Indus Towers Limited to shareholders of VInL in accordance
with capital reduction scheme. This reserve is not available for distribution as dividend.

⁽³⁾ The Company has accounted for the merger of VInL and VMSL with the Company under ‘pooling of interest’ method. Consequently,
investment of VInL in VMSL, share capital of VInL and VMSL has been cancelled. The difference between the face value of shares issued
by the Company and the value of shares and investment so cancelled has been recognized in Amalgamation Adjustment Deficit Account
of ' (48,840) Cr. Also pursuant to merger of Idea Telesystems Limited (“ITL”) with the Company, share capital of ITL and investment of
the Company have been cancelled. The difference between equity of ITL and investment of the Company of ' (4) Cr has been recongized
in Amalgamation Adjustment Deficit Account. From utilisation perspective, this is an unrestricted reserve.

⁽⁴⁾ Includes ' 139 Cr (March 31, 2025: ' 139 Cr) not available for distribution as dividend.

NOTE 43: SIGNIFICANT TRANSACTIONS / NEW DEVELOPMENTS

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

Over the years, the Company has acquired various licenses from the DoT and also acquired companies having telecom licenses and
merged these entities into the Company resulting in cancellation of licenses pertaining to those entities on merger. During financial
year 2023-24, based on initial evaluation and after considering the allowable deductions for the periods and on a best estimate
basis, a tax provision of ' 822 Cr and interest of ' 263 Cr has been recorded under “Current tax” and “Finance costs” respectively,
and corresponding effect has been recorded as Current tax liability of ' 522 Cr and adjusted ' 563 Cr in Other Non-Current Assets
in the financial statements in financial year 2023-24. Due to tax losses carried forward, higher deductions in future periods do not
meet the criteria for the recognition of deferred tax assets under Ind AS 12 - Income Taxes. During the previous year, on May 17,
2024, the Hon’ble Supreme Court of India pronounced a further judgement in this regard waiving applicable interest. Based on
this judgement, the Company reversed the accrued interest charge of ' 263 Cr under finance cost in financial year 2024-25 and
balance liability of ' 259 Cr is continues to be disclosed as current tax liability as at March 31, 2026.

ii) Further Public Offer (FPO)

On April 23, 2024, the Company had allotted 16,36,36,36,363 equity shares of ' 10 each at an issue price of ' 11 (including a
premium of Re.1.00 per equity share) aggregating to ' 18,000 Cr by way of FPO. The issue proceeds have been utilised in accordance
with the issue object(s) stated in offer document.

The below table provides the details of amount utilised out of the FPO proceeds as of March 31, 2026.

iii) The Board of Directors of the Company at its meeting held on January 31, 2023 has re-approved issuance of upto 16,000 optionally
convertible, unsecured, unrated and unlisted Indian Rupee denominated debentures (OCDs) having a face value of ' 10,00,000
each, in one or more tranches, aggregating upto ' 1,600 Cr, each convertible into 1,00,000 equity shares of face value of
' 10/- each at a conversion price of ' 10/- to ATC Telecom Infrastructure Private Limited (‘ATC’), a non-promoter of the Company,
on a preferential basis. On March 18, 2024, in accordance with the terms of the OCDs, ATC requested the Company for conversion
of 14,400 OCDs into 1,44,00,00,000 fully paid-up Equity Shares and accordingly, on March 23, 2024, the Company allotted
1,44,00,00,000 equity shares of face value of ' 10/- each at an issue price of ' 10/- per equity share to ATC.

During previous year, on July 11, 2024, ATC requested the Company for conversion of balance 1,600 OCDs into 16,00,00,000
fully paid-up Equity Shares and accordingly, on July 12, 2024, the Company allotted 16,00,00,000 equity shares of face value of
'10/- each at an issue price of ' 10/- per equity share to ATC. All the outstanding OCDs stand converted in to equity shares.

iv) Preferential issue

a) On May 21, 2024, the Company had allotted 1,39,54,27,034 equity shares of ' 10 each at an issue price of ' 14.87 (including
a premium of ' 4.87 per equity share) aggregating to ' 2,075 Cr on a preferential basis to an existing shareholder entity
forming part of the promoter group.

b) On July 18, 2024, and July 19, 2024, the Company had allotted 1,02,70,27,024 equity shares to Nokia Solutions and Networks
India Private Limited and 63,37,83,780 equity shares to Ericsson India Private Limited of face value of ' 10 each at an issue
price of ' 14.80 (including a premium of ' 4.80 per equity share) aggregating to ' 2,458 Cr on a preferential basis.

c) On January 9, 2025, the Company had allotted 1,69,32,18,361 equity shares of face value of ' 10 / - each at an issue price
of ' 11.28 (including a premium of ' 1.28 per equity share) aggregating to ' 1,910 Cr on a preferential basis to an existing
shareholder entity forming part of the promoter group.

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

v) The DoT conducted auctions for various spectrum bands which got concluded on June 26, 2024. The Company successfully bid for
50 MHz of spectrum (900 MHz, 1800 MHz and 2500 MHz) in 11 circles at a total cost of ' 3,497 Cr. The validity of the spectrum
is for a period of 20 years starting from the effective date as per the Frequency Assignment Letter for Respective Service Areas.
The Company made the upfront payment of ' 332 Cr and based on the available payment options, the Company opted for the
Deferred Payment option for balance amount. During the previous year, the Company capitalised the cost under “Intangible Assets”.

vi) The Government of India has consolidated 29 existing labour legislations into a united framework comprising four Labour Code viz
Code on wages 2019, Code on Social Security 2020, Industrial Relation Code 2020, and Occupational Safety, Health and Working
Condition Code 2020 (collectively referred to as the Labour Codes). These Codes have been made effective from November 21,
2025. The labour codes, amongst other things introduces changes, including a uniform definition of wages. The Company has
carried out detailed evaluation and actuarial assessment which has resulted in the financial impact of ' 91 Cr for the year ended
March 31, 2026, which has been disclosed under “Exceptional Items”.

vii) As at December 31, 2025, assets include amounts recorded as recoverable from the promoters of erstwhile Vodafone India Limited
(“VInL”) under the Implementation agreement (IA) executed on March 20, 2017 which was amended as on December 31, 2025.
Both parties have agreed to settle such recoverable as follows:

- An amount of ' 2,307 Cr (based on exchange rate as of the date of the Amendment Agreement), will be released by the
Vodafone Group Promoters over the next 12 months, subject to and in accordance with the terms agreed in the Amendment
Agreement. Of this ' 310 Cr has been received by the Company as of March 31, 2026 and balance of ' 2,074 Cr based on
exchange rate as at March 31, 2026 classified as Other current financial assets.

- A portion of the Settlement amount is secured through the earmarking of 328 Cr equity shares of the Company by certain
Vodafone Group entities for a period of five years. Proceeds from sale of these shares as and when undertaken, at the
instructions of a person authorised / appointed by the Company, will accrue to the Company. The fair market value of such
earmarked shares on March 31, 2026 stands at ' 2,619 Cr (arrived basis closing market price adjusted for transaction and
other incidental cost) which has been classified as Other non current financial assets.

- Accordingly, difference of ' 1,468 Cr between the carrying amount of ' 6,394 Cr and fair value of such recoverable asset
basis above settlement mechanism is recognised as loss on remeasurement of settlement assets.

Consequently, certain provisions of ' 2,013 Cr relating to above has been written back and net gain of ' 545 Cr together with loss
on remeasurement of Settlement assets has been disclosed as “Provision written back net of loss on remeasurement of Settlement
asset“ under Exceptional items.

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

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

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

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

- For spectrum beyond 6.2 MHz,

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

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

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

Thereafter the erstwhile VInL and VMSL filed an appeal before the Hon’ble Supreme Court against the TDSAT judgement. On March
16, 2020, Hon’ble Supreme Court dismissed the Appeal filed by erstwhile VInL and VMSL challenging the levy of OTSC beyond 6.2
MHz Thereafter, erstwhile VInL and VMSL filed a Review Petition challenging the dismissal of Appeal. Hon’ble Supreme Court on
May 19, 2022 allowed the Review petition and restored the appeal filed by erstwhile VInL and VMSL. DoT also preferred an appeal
against the entire TDSAT judgement and sought stay on the impugned judgement. The appeals filed by DoT and erstwhile VInL and
VMSL are pending before the Hon’ble Supreme Court. The proceedings before the BHC in respect of petition filed by Idea Cellular
Limited is complete and final order is awaited.

The Company, on prudence basis, recognized a charge for spectrum holding beyond 6.2 MHz in line with the TDSAT order. The
amount has been calculated basis the demand computation that was raised by the DoT in July 2018 for Bank Guarantees to be
given for OTSC in line with the M&A guidelines at the time of merger. The Company has recognised interest cost of ' 1,199 Cr
(March 31, 2025: ' 1,040 Cr) in the Statement of Profit and loss. Accordingly, the Company has disclosed Accrual towards One
Time Spectrum Charges of ' 8,780 Cr (March 31, 2025: ' 7,581 Cr) under Other current financial liabilities.

NOTE 44: CAPITAL AND OTHER COMMITMENTS

Estimated amount of commitments are as follows:

• Contracts remaining to be executed for capital expenditure (net of advances) and not provided for are ' 2,147 Cr
(March 31, 2025: ' 3,151 Cr).

• Long term contracts remaining to be executed including early termination commitments (if any) are ' 1,884 Cr
(March 31, 2025: ' 1,906 Cr).

NOTE 45: CONTINGENT LIABILITIES NOT PROVIDED FOR
A) Licensing Disputes:

i. OTSC (Less than 4.4 MHz) - ' 3,857 Cr (March 31, 2025: ' 3,857 Cr):

In FY 2015-16 erstwhile VMSL received demands from DoT towards One time spectrum charges for less than 4.4 MHz
pursuant to the transfer of licenses of certain subsidiaries amounting to ' 3,350 Cr. The Company believes the charges levied
by DoT are not tenable, since the merger guidelines are not applicable considering that the said merger did not involve any
intra-circle merger and did not result in increase in spectrum holding of the Company. The Demand is challenged and remains
sub-judice at TDSAT.

Further, erstwhile VMSL received demand from DoT towards extension of license of Tamil Nadu circle for making it co-terminus
with license of Chennai circle amounting to ' 507 Cr. The Company believes the charges levied by DoT are not tenable,
considering the merger of licenses is as per the guidelines issued by DoT in 2005 and as such does not get covered under as
per clause 3 (i) and (m) of the M&A guidelines dated February 20, 2014. The Demand is challenged and remains sub-judice
at TDSAT.

ii. Other Licensing Disputes - ' 4,598 Cr (March 31, 2025: ' 10,580 Cr):

a) In line with the Hon’ble Supreme Court order, the DoT has done AGR reassessment exercise for the years FY 2006-07 till FY
2018-19. On April 30, 2026, the Company has received communication from the DoT stating that the Committee formed
for the purpose of reassessment has finalized the AGR dues at ' 64,046 Cr as on December 31, 2025. Consequently,
AGR demands of ' 5,976 Cr raised post Hon’ble Supreme Court judgement of September 1, 2020, which was disclosed
as Contingent Liability as of March 31, 2025, is no longer considered as Contingent Liability as of March 31, 2026. (refer
note 3).

b) On September 29, 2021, DoT had issued demand notice for imposition of financial penalty amounting to ' 2,000 Cr for
violation of the provisions of license agreements and standards of Quality of service of basic telephone service (wireline)
and SMTS regulation 2009. On October 11, 2021, The Company has filed petition before the Hon’ble TDSAT challenging
the demand raised by DoT. In the recent hearing, interim relief has been granted stating no coercive action shall be taken
for realisation of penalty under challenge. The matter is pending adjudication.

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

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

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

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

i. Income Tax Matters

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

ii. Sales Tax and Entertainment Tax

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

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

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

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

- Demand of service tax on SMS termination charges

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

- Disallowance of carry forward of transitional credit of Cenvat & Cess, disallowances of input tax credit on ineligible items.

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

iv. Entry Tax and Customs

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

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

v. Other claims not acknowledged as debts

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

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

C. The Company has provided a Corporate Guarantee to the Debenture Trustee with respect to Non-Convertible Debentures (NCDs)

aggregating to ' 3,300 Cr issued by Vodafone Idea Telecom Infrastructure Limited (VITIL), a subsidiary of the Company. The liability
of the Company in relation to payment of VITIL’s obligations under the NCDs, which has been guaranteed by it under the Corporate
Guarantee shall be to the extent of outstanding NCDs. The outstanding payable balance of these NCDs as at March 31, 2026 is
' 3,415 Cr (including interest) in the books of VITIL (March 31, 2025: ' Nil).

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

NOTE 51: SHARE BASED PAYMENTS

Employee stock option plan - options granted by Vodafone Idea Limited

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

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

There were no modifications to the options / RSU’s during the year ended March 31, 2026 and March 31, 2025. During the year, unvested
options expired. In the current year, ' -* Cr (March 31, 2025: ' -* Cr) is adjusted against Retained earnings in respect of cancellation
/ expiration of vested stock option.

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

NOTE 52: EMPLOYEE BENEFITS
A. Defined Benefit Plan (Gratuity)

General description and benefits of the plan

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

Regulatory framework, funding arrangement and governance of the Plan

The gratuity plan is governed by the Code of social security 2020 (‘the code’). The trustees of the gratuity fund have a fiduciary
responsibility to act according to the provisions of the trust deed and rules. Since the fund is income tax approved, the Company
and the trustees have to ensure that they are at all times fully compliant with the relevant provisions of the income tax act and
rules. The Company is bound to pay the statutory minimum gratuity as prescribed under the code. There are no minimum funding
requirements for a gratuity plan in India. The Company’s philosophy is to fund the benefits based on its own liquidity and tax position
as well as level of underfunding of the plan vis-a-vis settlements. The trustees of the trust are responsible for the overall governance
of the plan. The trustees of the plan have outsourced the investment management of the fund to insurance companies which in
turn manage these funds as per the mandate provided to them by the trustees and applicable insurance and other regulations.

Inherent risks

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

Note:

(i) As at March 31, 2025, the Company had settlement assets (net) amounting to ' 6,394 Cr based on implementation agreement
of May 31, 2018, which was amended as on December 31, 2025 and settled as detailed in note 43(vii).

(ii) With respect to options that have already exercised there is an outstanding liability of ' 147 Cr payable to entities having significant
influence (March 31, 2025: ' 130 Cr).

(iii) The Company has provided a Corporate Guarantee to the Debenture Trustee with respect to Non-Convertible Debentures (NCDs)
aggregating to ' 3,300 Cr issued by Vodafone Idea Telecom Infrastructure Limited (VITIL). The liability of the Company in relation
to payment of VITIL’s obligations under the NCDs, which has been guaranteed by it under the Corporate Guarantee shall be to
the extent of outstanding NCDs. The outstanding payable balance of these NCDs as at March 31, 2026 is ' 3,415 Cr (including
interest) in the books of VITIL (March 31, 2025: ' Nil).

forming part of the Standalone Financial Statements

Government of India (‘GoI’) holds 49% equity shareholding in the Company as at March 31, 2026 (22.60 % as at March 31, 2025)
(refer note 4). The Company has certain obligations arising from the telecom license taken from the Department of Telecommunication
(‘DoT’) which is a Ministry of GoI towards license fees, spectrum usage charges, acquisition of spectrum and related Deferred Payment
liability and interest thereon.

C) Valuation Technique used to determine fair value:

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

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

NOTE 60: FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES

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

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

Market risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices.
Market risk comprises three types of risk: interest rate risk, currency risk and other price risk. Financial instruments affected by market
risk include borrowings, bank deposits, current investments and derivative financial instruments.

The sensitivity of the relevant profit or loss item reflects the effect of the assumed changes in respective market risks, factors based
on the financial assets and financial liabilities held at March 31, 2026 and March 31, 2025.

a) Interest rate risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in
market interest rates. The Company’s exposure to the risk of changes in market interest rates relates primarily to the Company’s
long-term borrowing with floating interest rates.

The Company manages its interest rate risk by having a balanced portfolio of fixed and floating rate loans from banks & others. As
at March 31, 2026, approximately 99.42% of the Company’s borrowings are at a fixed rate of interest (March 31, 2025: 98.76%).

b) Foreign currency risk

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

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

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

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

Foreign currency sensitivity

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

c) Price risk

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

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

Further, the Company has receivables in form of earmarked shares from Vodafone Group promoters (as referred in note 43(vii)),
the value of which is linked to the market price of equity shares of the Company. Accordingly, the Group is exposed to fluctuations
in the market price, which may impact the carrying value of such receivables.

d) Credit risk

Credit risk is the risk that counterparty will not meet its obligations under a financial instrument or customer contract, leading to a
financial loss. The Company is exposed to credit risk from its operating activities (primarily trade and other receivables) and from
its financing activities, including deposits with banks, foreign exchange transactions and other financial instruments.

- Trade receivables

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

The Company follows a ‘simplified approach’ (i.e. based on lifetime Expected credit losses (ECL)) for recognition of impairment
loss allowance on Trade receivables. A large number of minor receivables are grouped into homogeneous groups and assessed
for impairment collectively. For the purpose of measuring lifetime ECL allowance for trade receivables, the Company estimates
irrecoverable amounts based on the ageing of the receivable balances and historical experience. The Company, based on past
trends, recognizes allowance for trade receivables: a) for retail subscribers (net of security deposit) remaining unpaid beyond
90 / 120 days from date of billing and b) for other trade receivables on account of Interconnect, Roaming, Fixed line Voice
and data service etc. remaining unpaid beyond 180 / 365 days. Further, allowance is also recognised for cases indicating
any specific trail of credit loss within the ageing brackets mentioned above. Individual trade receivables are written off when
management deems them not to be collectible. Any subsequent recovery is recognized as Income in the Statement of Profit
and Loss. Refer Note 15 for the carrying amount of credit exposure as on the Balance Sheet date.

- Other financial assets and cash deposits

Credit risk from balances with banks is managed by the Company’s treasury department. Investments of surplus funds are
made only with approved counterparties and within credit limits assigned to each counter party. Counterparty credit limits
are reviewed by the Company’s Treasury Department periodically, and may be updated throughout the year. The limits are
intended to minimise the concentration of risks and therefore mitigate financial loss through counterparty’s potential failure
to make payments.

The Company’s maximum exposure to credit risk for the components of the balance sheet as at March 31, 2026 and March 31,
2025 on its carrying amounts as disclosed in notes 11, 14, 15, 16, 17, 18 and 19 except for derivative financial instruments. The
Company’s maximum exposure relating to financial derivative instrument is noted in liquidity table below note 60 (e).

e) Liquidity risk

Liquidity risk is the risk that the Company may not be able to meet its present and future cash and collateral obligations without
incurring unacceptable losses. The Company’s objective is to, at all times maintain optimum levels of liquidity to meet its cash
and collateral requirements. The Company monitors its risk of a shortage of funds using a liquidity planning tool.

forming part of the Standalone Financial Statements

The Company’s objective is to maintain a balance between continuity of funding and flexibility through the use of bank overdrafts,
bank loans. As at March 31, 2026, approximately 2.62% of the Company’s debt excluding interest will mature in less than one year
(March 31, 2025: 6.58%) based on the carrying value of borrowings reflected in the financial statements.

Based on recent developments with respect to AGR matter as mentioned in Note 3 above, the Company is confident of generating
sufficient cash flow from operations to meet its obligations including lenders, spectrum and AGR dues payable over the next 12
months as and when they fall due.

The table below summarizes the maturity profile of the Company’s financial liabilities based on contractual undiscounted payments:

NOTE 61: CAPITAL MANAGEMENT

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

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

NOTE 63

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

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

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

NOTE 64: SUBSEQUENT EVENT

The Board of Directors of the Company, at its meeting held on May 16, 2026, have approved issuance of upto 430 Cr warrants (each
convertible into one equity share) to Suryaja Investments Pte. Ltd., (an Aditya Birla Group entity and Promoter Group Company), at an
issue price of ' 11/- per warrant, aggregating upto ' 4,730 Cr on a preferential basis (“Preferential Issue”), subject to approval of the
shareholders at the Extraordinary General Meeting to be held on June 11, 2026.