q) Provisions and contingent liabilities
General

Provisions are recognised when the
Company has a present obligation
(legal or constructive) as a result of past
events, 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. When the
Company expects some or all of a provision
to be reimbursed, the reimbursement is
recognised as a separate asset, but only
when the reimbursement is virtually certain.
The expense relating to a provision is
presented in the statement of profit or loss
net of any reimbursement. Provisions are
not recognised for future operating losses.

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 interest expense.

Contingent Liabilities

Contingent liabilities are disclosed when
there is a possible obligation arising from
past events, the existence of which will be

confirmed only by the occurrence or non¬
occurrence of one or more uncertain future
events not wholly within the control of the
Company or a present obligation that arises
from past events where it is either not
probable that an outflow of resources will
be required to settle or a reliable estimate
of the amount cannot be made.

r) Employee benefits

(i) Short-term obligations

Liabilities for wages and salaries,
including non-monetary benefits that
are expected to be settled wholly
within 12 months after the end of the
period in which the employees render
the related service are recognised
in respect of employees' services up
to the end of the reporting period
and are measured at the amounts
expected to be paid when the
liabilities are settled. The liabilities are
presented as current employee
benefit obligations in the balance
sheet.

(ii) Other long-term employee benefit
obligations

The liabilities for earned leave and
sick leave are not expected to be
settled wholly within 12 months
after the end of the period in which
the employees render the related
service. They are therefore measured
as the present value of expected
future payments to be made
in respect of services provided by
employees up to the end of the
reporting period using the projected
unit credit method. The benefits
are discounted using the market
yields at the end of the reporting
period on government bonds
that have terms approximating to
the terms of the related obligation.
Re-measurements as a result of
experience adjustments and changes
in actuarial assumptions are
recognised in profit or loss.

The obligations are presented as
current liabilities in the balance
sheet if the entity does not have an
unconditional right to defer
settlement for at least twelve
months after the reporting period,
regardless of when the actual
settlement is expected to occur.

(iii) Post-employment obligations

The Company operates the following
post-employment schemes:

(a) Defined benefit plans in the
nature of gratuity and

(b) Defined contribution plans such
as provident fund.

Gratuity obligations

The liability or asset recognised in the
balance sheet in respect of defined
benefit gratuity plans is the present
value of the defined benefit obligation
at the end of the reporting period
less the fair value of plan assets. The
defined benefit obligation is calculated
annually by actuaries using the
projected unit credit method.

The present value of the defined
benefit obligation denominated in
? is determined by discounting the
estimated future cash outflows by
reference to market yields at the end
of the reporting period on government
bonds that have terms approximating
to the terms of the related obligation.

The net interest cost is calculated
by applying the discount rate to the
net balance of the defined benefit
obligation and the fair value of
plan assets. This cost is included in
employee benefit expense in the
statement of profit and loss.

Re-measurement gains and losses
arising from experience adjustments
and changes in actuarial assumptions
are recognised in the period in
which they occur, directly in other
comprehensive income. They are
included in retained earnings in the
statement of changes in equity and in
the balance sheet.

Changes in the present value of the
defined benefit obligation resulting
from plan amendments or curtailments
are recognised immediately in profit or
loss as past service cost.

Defined contribution plans

The Company pays provident
fund contributions to publicly
administered provident funds as per
local regulations. The Company has
no further payment obligations once
the contributions have been paid.

The contributions are accounted for

as defined contribution plans and
the contributions are recognised as
employee benefit expense when they
are due. Prepaid contributions are
recognised as an asset to the extent
that a cash refund or a reduction in the
future payments is available.

s) Investments and Other Financial assets

(i) Classification & Recognition:

Regular way purchases and sales of
financial assets are recognised on
trade-date, the date on which the
Company commit to purchase or sell
the financial asset.

(ii) Measurement:

Financial assets with embedded
derivatives are considered in their
entirety when determining whether
their cash flows are solely payment of
principal and interest.

Debt instruments:

Subsequent measurement of debt
instruments depends on the Company's
business model for managing the asset
and the cash flow characteristics of the
asset. There are three measurement
categories into which the Company
classifies its debt instruments:

Amortised cost:

Assets that are held for collection
of contractual cash flows where
those cash flows represent solely
payments of principal and interest are
measured at amortised cost. A gain
or loss on a debt investment that is
subsequently measured at amortised
cost and is not part of a hedging
relationship is recognised in profit or
loss when the asset is derecognised or
impaired. Interest income from these
financial assets is included in finance
income using the effective interest
rate method. Impairment losses are
presented as a separate line item in the
financial statement.

Fair value through other
comprehensive income (FVOCI):

Assets that are held for collection
of contractual cash flows and for
selling the financial assets, where the
assets' cash flows represent solely
payments of principal and interest,
are measured at fair value through

other comprehensive income (FVOCI).
Movements in the carrying amount
are taken through OCI, except for the
recognition of impairment gains or
losses, interest revenue and foreign
exchange gains and losses which are
recognised in profit and loss. When
the financial asset is derecognised,
the cumulative gain or loss previously
recognised in OCI is reclassified from
equity to profit or loss and recognised
in other gains/ (losses). Interest
income from these financial assets
is included in other income using
the effective interest rate method.
Foreign exchange gains and losses and
impairment expenses are presented
as separate lines item in the financial
statements.

Fair value through profit or loss:

Assets that do not meet the criteria for
amortised cost or FVOCI are measured
at fair value through profit or loss. A
gain or loss on a debt investment that
is subsequently measured at fair value
through profit or loss and is not part
of a hedging relationship is recognised
in profit or loss and presented net in
the statement of profit and loss within
other gains/(losses) in the period in
which it arises. Interest income from
these financial assets is included in
other income.

(iii) Derecognition of financial assets

A financial asset is derecognised only
when the Company has transferred
the rights to receive cash flows
from the financial asset or retains
the contractual rights to receive the
cash flows of the financial asset, but
assumes a contractual obligation to
pay the cash flows to one or more
recipients.

Where the entity has transferred an
asset, the Company evaluates whether
it has transferred substantially all
risks and rewards of ownership of
the financial asset. In such cases,
the financial asset is derecognised.
Where the entity has not transferred
substantially all risks and rewards of
ownership of the financial asset, the
financial asset is not derecognised.

Where the entity has neither
transferred a financial asset nor retains
substantially all risks and rewards

of ownership of the financial asset,
the financial asset is derecognised
if the Company has not retained
control of the financial asset. Where
the Company retains control of the
financial asset, the asset is continued
to be recognised to the extent of
continuing involvement in the financial
asset.

(iv) Reclassification of financial assets

The Company determines classification
of financial assets and liabilities
on initial recognition. After initial
recognition, no reclassification is
made for financial assets which are
equity instruments and financial
liabilities. For financial assets which
are debt instruments, a reclassification
is made only if there is a change in
the business model for managing
those assets. Changes to the business
model are expected to be infrequent.
The Company's senior management
determines change in the business
model as a result of external or internal
changes which are significant to the
Company's operations. Such changes
are evident to external parties. A
change in the business model occurs
when the Company either begins or
ceases to perform an activity that
is significant to its operations. If
the Company reclassifies financial
assets, it applies the reclassification
prospectively from the reclassification
date which is the first day of the
immediately next reporting period
following the change in business
model. The Company does not restate
any previously recognised gains, losses
(including impairment gains or losses)
or interest.

t) Financial liabilities

Trade and other payables

These amounts represent liabilities for
goods and services provided to the
Company prior to the end of financial year
which are unpaid. Trade and other payables
are presented as current liabilities unless
payment is not due within 12 months after
the reporting period. They are recognised
initially at their fair value and subsequently
measured at amortised cost using the
effective interest method.

Borrowings

Borrowings are initially recognised at fair
value, net of transaction costs incurred.
Borrowings are subsequently measured at
amortised cost. Any difference between the
proceeds (net of transaction costs) and the
redemption amount is recognised in profit
or loss over the period of the borrowings
using the effective interest method. Fees
paid on the establishment of loan facilities
are recognised as transaction costs of the
loan to the extent that it is probable that
some or all of the facility will be drawn
down. In this case, the fee is deferred until
the draw down occurs. To the extent there
is no evidence that it is probable that some
or all of the facility will be drawn down,
the fee is capitalised as a prepayment for
liquidity services and amortised over the
period of the facility to which it relates.

Borrowings are removed from the balance
sheet when the obligation specified in the
contract is discharged, cancelled or expired.
The difference between the carrying
amount of a financial liability that has been
extinguished or transferred to another party
and the consideration paid, including any
non-cash assets transferred or liabilities
assumed, is recognised in profit or loss as
other gains/(losses).

Where the terms of a financial liability are
renegotiated and the entity issues equity
instruments to a creditor to extinguish
all or part of the liability (debt for equity
swap), a gain or loss is recognised in profit
or loss, which is measured as the difference
between the carrying amount of the
financial liability and the fair value of the
equity instruments issued.

Borrowings are classified as current
liabilities unless the Company has an
unconditional right to defer settlement of
the liability for at least 12 months after the
reporting period. Where there is a breach
of a material provision of a long-term loan
arrangement on or before the end of the
reporting period with the effect that the
liability becomes payable on demand on the
reporting date, the entity does not classify
the liability as current, if the lender agreed,
after the reporting period and before
the approval of the financial statements
for issue, not to demand payment as a
consequence of the breach.

u) Offsetting of financial instruments

Financial assets and financial liabilities
are offset and the net amount is

reported in the balance sheet if there
is a currently enforceable legal right to
offset the recognised amounts and there
is an intention to settle on a net basis, to
realise the assets and settle the liabilities
simultaneously. The legally enforceable
right must not be contingent on future
events and must be enforceable in the
normal course of business and in the event
of default, insolvency or bankruptcy of the
Company or the counter party.

v) Derivatives and hedging activities

Derivatives that are not designated as
hedges

The Company enters into certain derivative
contracts to hedge risks which are not
designated as hedges. Such contracts are
accounted for at fair value through profit or
loss and are included in statement of profit
and loss.

Embedded derivatives

Derivatives embedded in a host contract
that is an asset within the scope of Ind AS
109 are not separated. Financial assets with
embedded derivatives are considered in
their entirety when determining whether
their cash flows are solely payment of
principal and interest.

Derivatives embedded in all other host
contract are separated only if the economic
characteristics and risks of the embedded
derivative are not closely related to the
economic characteristics and risks of the
host and are measured at fair value through
profit or loss. Embedded derivatives
closely related to the host contracts are not
separated.

w) Financial Guarantee Contracts

Financial guarantee contracts are
recognised as a financial liability at the
time the guarantee is issued. The liability
is initially measured at fair value and
subsequently at the higher of (i) the
amount determined in accordance with the
expected credit loss model as per Ind AS
109 and (ii) the amount initially recognised
less, where appropriate, cumulative amount
of income recognised in accordance with
the principles of Ind AS 115.

The fair value of financial guarantees is
determined based on the present value
of the difference between the cash flows
between the contractual payments
required under the debt instrument and

the payments that would be without the
guarantee, or the estimated amount that
would be payable to the third party for
assuming the obligations.

Where the guarantees in relation to the
loans or other payables of subsidiaries are
provided for no compensation, the fair
values are accounted for as contributions
and recognised as part of the cost of the
investment.

x) Foreign currency translation

Functional and presentation currency

Items included in the financial statements
of the Company are measured using
the currency of the primary economic
environment in which the Company
operates (‘the functional currency'). The
financial statements are presented in Indian
rupee (?), which is company's functional
and presentation currency.

Transactions and balances

Foreign currency transactions are
translated into the functional currency
using the exchange rates at the dates of the
transactions. Foreign exchange gains and
losses resulting from the settlement of such
transactions and from the translation of
monetary assets and liabilities denominated
in foreign currencies at year end exchange
rates are generally recognised in profit or
loss. A monetary item for which settlement
is neither planned nor likely to occur in the
foreseeable future is considered as a part
of the entity's net investment in that foreign
operation.

Foreign exchange differences regarded
as an adjustment to borrowing costs are
presented in the statement of profit and
loss within finance costs. All other foreign
exchange gains and losses are presented
in the Statement of profit and loss on the
basis of underlying transactions.

Non-monetary items that are measured
at fair value in a foreign currency are
translated using the exchange rates at the
date when the fair value was determined.
Translation differences on assets and
liabilities carried at fair value are reported
as part of the fair value gain or loss.

For example, translation differences on
non-monetary assets and liabilities such
as equity instruments held at fair value
through profit or loss are recognised in
profit or loss as part of the fair value gain
or loss and translation differences on non¬

monetary assets such as equity investments
classified as FVOCI are recognised in other
comprehensive income.

Non-monetary items that are measured in
terms of historical cost in a foreign currency
are translated using the exchange rates at
the dates of the initial transactions.

y) Intangible Assets

Intangible assets acquired separately are
measured on initial recognition at cost.
Following initial recognition, intangible
assets are carried at cost less accumulated
amortisation and accumulated impairment
losses.

Intangible assets with finite lives are
amortised over their useful economic lives
and assessed for impairment whenever
there is an indication that the intangible
asset may be impaired. The amortisation
period and the amortisation method for
an intangible asset with a finite useful life
are reviewed at least at the end of each
reporting period.

Changes in the expected useful life or the
expected pattern of consumption of future
economic benefits embodied in the asset
are considered to modify the amortisation
period or method, as appropriate, and are
treated as changes in accounting estimates.
The amortisation expense on intangible
assets with finite lives is recognised in the
statement of profit or loss.

All intangible assets are amortised on a
straight-line basis over a period of five to
six years.

Internally generated intangible assets,
excluding capitalised development costs,
are not capitalised and the expenditure is
recognised in the Statement of Profit and
Loss in the period in which the expenditure
is incurred.

The Company does not have any intangible
assets with indefinite useful lives.

Gains or losses arising from derecognition
of an intangible asset are measured as
the difference between the net disposal
proceeds and the carrying amount of
the asset and are recognised in the
statement of profit or loss when the asset is
derecognised.

Customer acquisition costs consist of
payments made to obtain consents/

permissions for laying of fiber cables and
other telecom infrastructure in residential
and commercial complexes/townships.
Such cost is amortized over the period of
the consent/permission on a straight line
basis.

Research costs are expensed as incurred.

z) Borrowing Costs

General and specific borrowing costs
directly attributable to the acquisition,
construction or production of an asset
that necessarily takes a substantial period
of time to get ready for its intended use
or sale are capitalised as part of the cost
of the asset. All other borrowing costs
are expensed in the period in which they
occur. Borrowing costs consist of interest
and other costs that the Company incurs
in connection with the borrowing of funds.
Borrowing cost also includes exchange
differences to the extent regarded as an
adjustment to the borrowing costs.

aa) Cash and cash equivalents

Cash and cash equivalent in the balance
sheet comprise cash at banks and on hand
and short-term deposits with an original
maturity of three months or less, which are
subject to an insignificant risk of changes
in value.

For the purpose of presentation in
the statement of cash flows, cash and
cash equivalents consist of cash and
cash equivalent, as defined above, net
of outstanding bank overdrafts if they
are considered an integral part of the
Company's cash management.

bb) Dividends

The Company recognises a liability to
make cash distributions to equity holders
of the Company when the distribution is
authorised and the distribution is no longer
at the discretion of the Company. As per
the corporate laws in India, a distribution
is authorised when it is approved by the
shareholders. A corresponding amount is
recognised directly in equity.

cc) Earnings per share

Basic earnings per share

Basic earnings per share is calculated by
dividing the profit attributable to owners
of the Company by the weighted average

number of equity shares outstanding
during the financial year, adjusted for
bonus elements in equity shares issued
during the year and excluding treasury
shares.

Diluted earnings per share

Diluted earnings per share adjusts the
figures used in the determination of basic
earnings per share to take into account the
after income tax effect of interest and other
financing costs associated with dilutive
potential equity shares, and the weighted
average number of additional equity
shares that would have been outstanding
assuming the conversion of all dilutive
potential equity shares.

dd) Trade receivable

Trade receivables are amounts due from
customers for goods sold or services
performed in the ordinary course of
business. Trade receivables are recognised
initially at the transaction price unless
there is significant financing components,
when they are recognised at fair value.

The Company holds the trade receivables
with the objective to collect contractual
cash flows and therefore measures them
subsequently at amortised cost using
the effective interest method, less loss
allowance.

ee) Exceptional items

When the items of income and expense
within profit or loss from ordinary activities
are of such size, nature or incidence that
their disclosure is relevant to explain
the performance of the Company for
the period, the nature and amount of
such items are disclosed separately as
exceptional item by the Company.

3. CRITICAL ACCOUNTING JUDGEMENTS,
ESTIMATES AND ASSUMPTIONS

The preparation of financial statements requires
the use of accounting estimates. Management
exercises judgement in applying the company's
accounting policies. Estimates and assumptions
are continuously evaluated and are based
on historical experience and other factors
including expectations of future events that are
believed to be reliable and relevant under the
circumstances. This note provides an overview
of the areas that involved a higher degree of
judgement or complexity, and of items which
are more likely to be materially adjusted due
to estimates and assumptions turning out to
be different than those originally assessed.
Management believes that the estimates are the
most likely outcome of future events. Detailed
information about each of these estimates and
judgements is described below.

(i) Impairment assessment for property plant
and equipment and intangible assets

The Company periodically assesses if there
are any indicators of impairment in respect
of PP&E and intangible assets. In making
this assessment, the Company identifies the
cash generating unit (CGU) to which the
asset belongs and considers both internal and
external sources of information to determine
whether there is an indicator for impairment at
CGU level. If such indication exists, Management
estimates the recoverable amount of that
CGU. The recoverable amount of relevant CGU
is determined based on the higher of value
in use and fair value less cost of disposal. An
impairment loss is recognised if the recoverable
amount is lower than the carrying value. The
Company has assessed the impairment of the
carrying value of the PP&E and intangible assets
based on the income approach (discounted
cash flow method) and has used certain
estimates such as discount rate, growth rate,
gross margins, remaining useful life etc to
calculate the value in use.

(ii) Assessment of investments in subsidiaries

The Company accounts for investments
in subsidiaries at cost (less accumulated
impairment, if any). The carrying value of
investments in subsidiaries at each reporting
date are reviewed and assessed for impairment.
The Company performs impairment assessment
of investments by making an estimate of the
recoverable amount, being the higher of fair
value less costs to sell and its value in use which
is then compared with the carrying value. An
impairment loss is recognised in the statement
of profit and loss to the extent the carrying

value of an asset exceeds the recoverable
amount.

The value in use of these investments is
determined using discounted cash flow model
(DCF model) requiring various assumptions and
judgements. These include future cashflows
and growth rate assumptions, discount rate,
terminal growth rate and other economic and
entity specific factors which are incorporated
in the DCF model. The estimated cash flows
are developed using internal forecasts. The fair
value less cost to sell of one of the investments
has been determined using replacement cost
method.

(iii) Impairment assessment of loans given
to subsidiaries and financial guarantees
(Expected credit loss)

The Company has given interest bearing loans
to its subsidiaries which are repayable on
demand. Further, certain external loans taken
by the subsidiaries are guaranteed by the
Company. The loans and financial guarantees
given to subsidiaries are reviewed and assessed
for impairment at each reporting date under
Ind AS 109. The inter-company loans have been
provided to the subsidiaries for operational
purposes and with an expectation of an
extended gestation period. The Company
intends to allow the subsidiaries to continue
trading and and expects to recover the loans
from the cash generated from operations.The
Company reviews the cash flow projections
where it has used certain estimates at the year
end to assess if any provision towards expected
credit loss needs to be made.

(iv) Recoverability of Deferred tax assets

At each balance sheet date, the company
assesses whether the realisation of future tax
benefits is sufficiently probable to recognise
deferred tax assets on unutilised tax losses.

The extent to which deferred tax assets can
be recognised is based on an assessment
of the probability that future taxable
income will be available against which the
deductible temporary differences and tax loss
carryforwards can be utilised. The Company
has concluded that the deferred tax will be
recoverable using the estimated future taxable
income based on the approved business plans
and budgets of the Company. The recorded
amount of total deferred tax assets could
change if estimates of projected future taxable
income change or if changes in current tax
regulations are enacted.

(v) Impairment assessment for trade
receivables

The company uses a provision matrix to
measure the lifetime expected credit losses as
per the practical expedient prescribed under
Ind AS 109. The trade receivables are mainly
related to contracts for sale of goods for which
a provision matrix adjusted for forward looking
information is used to measure the lifetime
expected credit losses as per the practical
expedient prescribed under Ind AS 109.

(vi) Defined benefit plans

The cost of the defined benefit plan and the
present value of such obligation are determined
using 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 increase, employee turnover
and expected return on planned assets. Due
to the complexities involved in the valuation
and its long term nature, a defined benefit
obligation is highly sensitive to changes in these
assumptions. All assumptions are reviewed at
the year end. Details about employee benefit
obligations and related assumptions are given in
Note 24.

(vii) Share-based payments

The Company measures the cost of equity
settled transactions with employees using Black
Scholes model and Monte carlo's simulation
model to determine the fair value of options.
Estimating fair value for share-based payment
transactions requires determination of the
most appropriate valuation model, which is
dependent on the terms and conditions relating
to vesting of the grant. This estimate also
requires determination of the most appropriate
inputs to the valuation model including the
expected life of the share option, volatility
and dividend yield and assumptions about
them. The assumptions and models used for
estimating fair value for share-based payment
transactions are disclosed in Note 33.

(viii) Revenue Recognition on Contracts with
Customers (relates to Global Services
Business)

The Company's contracts with customers could
include promises to transfer multiple products
and services to a customer. The Company
assesses the products/services promised in a
contract and identifies distinct performance
obligations in the contract. Identification
of distinct performance obligation involves
judgement to determine the distinct goods/
services and the ability of the customer to

benefit independently from such goods/
services.

Judgement is also required to determine
the transaction price for the contract. The
transaction price could be either a fixed
amount of customer consideration or variable
consideration with elements such as liquidated
damages, penalties and financing components.
Any consideration payable to the customer is
adjusted to the transaction price, unless it is a
payment for a distinct product or service from
the customer. The estimated amount of variable
consideration is adjusted in the transaction
price only to the extent that it is highly probable
that a significant reversal in the amount of
cumulative revenue recognised will not occur
and is reassessed at the end of each reporting
period. The Company allocates the elements of
variable considerations to all the performance
obligations of the contract unless there is
observable evidence that they pertain to one or
more distinct performance obligations.

The Company uses judgement to determine
an appropriate standalone selling price for
a performance obligation (allocation of
transaction price). The Company allocates
the transaction price to each performance
obligation on the basis of the relative
standalone selling price of each distinct product
or service promised in the contract. Where
standalone selling price is not observable,
the Company uses the expected cost plus
reasonable margin approach to allocate the
transaction price to each distinct performance
obligation.

The Company exercises judgement in
determining whether the performance
obligation is satisfied at a point in time or
over a period of time. The Company considers
indicators such as how customer consumes
benefits as services are rendered or who
controls the asset as it is being created or
existence of enforceable right to payment for
performance to date and alternate use of such
product or service, transfer of significant risks
and rewards to the customer, acceptance of
delivery by the customer, etc.

Revenue for fixed-price contract is recognised
using the input method for measuring progress.
The company uses cost incurred related to total
estimated costs to determine the extent of
progress towards completion.

Judgement is involved to estimate the future
cost to complete the contract and to estimate
the actual cost incurred basis completion
of relevant activities towards fulfilment of
performance obligations.

including continuing and discontinued operations:

(i) Interest expenses on lease liabilities relating to discontinued operations amounts to ? 1 crore (March 31, 2024:
? 2 crores)

(ii) Expenses related to short term leases relating to discontinued operations amounts to ? 2 crores
(March 31, 2024: ? 3 crores)

(d) The total cash outflow for leases for the year ended March 31, 2025 is ? 28 crores.

(March 31, 2024 - ? 28 crores)

(e) Extension and Termination option:

Extension and termination options are included in a number of property and equipment leases held by the
company. These terms are used to maximise operational flexibility in terms of managing contracts. The
majority of extension and termination options held are exercisable only by the Company and not by the
respective lessor.

(f) Commitment for leases not yet commenced on March 31, 2025 was ? Nil (March 31, 2024 - ? Nil)

Notes:

(i) Includes ? 14 crores (March 31, 2024: ? 9 crores) held as lien by banks against bank guarantees.

(ii) Refer note 18 for information on other bank balances hypothecated as security by the Company.

(All amounts are in ? crores, unless otherwise stated)

15: DISCONTINUED OPERATIONS

A. Global Services Business (GSB)

i) The Board of Directors at its meeting held on May 17, 2023 had approved, a Scheme of Arrangement
under Section 230 to 232 of the Companies Act, 2013 ("Scheme”) to demerge the Global Services
Business of the Company into its then wholly owned subsidiary, STL Networks Limited ("STNL”).

The appointed date being April 1, 2023. Pursuant to receipt of necessary statutory approvals including
from National Company Law Tribunal (NCLT) and in accordance with the Scheme, the Company has
demerged its Global Services Business effective March 31, 2025. Consequently, the financial results of
the Global Services Business for the year ended March 31, 2025 and March 31, 2024 have been
presented as discontinued operations to reflect the impact of this demerger.

Pursuant to the demerger and in accordance with the scheme, the Company has derecognized from its
books of account as distribution to owners, the carrying amount of assets and liabilities as on March 31, 2025
pertaining to the Global Service business and are transferred to STL Networks Limited. The excess of the
carrying amount of assets over the carrying amount of liabilities transferred aggregating to ? 1,164 Crores has
been debited to retained earnings in accordance with the Scheme.

Further pursuant to the Scheme, the Shareholders of the Company on the record date have been
issued equity shares of STL Networks Limited in the same proportion as their holding in the Company. Also,
pursuant to the scheme, the shares held by the company in STL Networks Limited are cancelled on scheme
becoming effective. Consequently, STL Networks Limited ceased to be a subsidiary of the Company on
scheme becoming effective.

Nature and Purpose of reserves other than retained earnings
Securities Premium

Securities premium is used to record the premium on issue of shares. The reserve can be utilised in accordance
with the provisions of the Companies Act, 2013.

Capital Reserve

Capital reserve was created on account of merger of passive infrastructure business of wholly owned subsidiary,
Speedon Network Limited, in the year ended March 31, 2017.

General Reserve

General reserve is created as per the provisions of the Companies Act 1956/2013 and includes amounts
transferred from debenture redemption reserve on account of redemption of debentures.

Effective portion of Cash Flow Hedges

The Company uses hedging instruments as part of its management of foreign currency risk associated with its
highly probable forecasted sales and purchases. For hedging foreign currency risk, the Company uses foreign
currency forward contracts which are designated as cash flow hedges. To the extent these hedges are effective,
the change in fair value of the hedging instrument is recognised in the cash flow hedging reserve. Amounts
recognised in the cash flow hedging reserve are reclassified to profit or loss when the hedged item affects profit
or loss. When the forecasted transaction results in the recognition of a non-financial asset (e.g. inventory), the
amount recognised in the cash flow hedging reserve is adjusted against the carrying amount of the non financial
asset.

Employee Stock Options Outstanding

The share options outstanding account is used to recognise the grant date fair value of options issued to
employees under employee stock option plan (ESOP Scheme) approved by shareholders of the Company.

Capital Redemption Reserve

As per provisions of the Companies Act, 2013, the Company has created a capital redemption reserve (CRR) of ? 2
crores against face value of equity shares bought back by the Company during the year ended March 31, 2021.

b. 9.35% (March 31, 2024 : 9.10%) Non convertible debentures carry 9.35% (March 31, 2024 : 9.10%) p.a rate
of interest. Total amount of non-convertible debentures is due in the FY 2025-26. These non-convertible
debentures are secured by way of a first pari passu charge over movable fixed assets of the Company, other
than assets located at Shendra Aurangabad.

c. Secured Indian rupee term loan from bank amounting to ? Nil crores (March 31, 2024: ? 83 crores) carries
interest @ One Year MCLR 0.15% p.a. Loan amount was repayable in 12 quarterly instalments from June 2022
of ? 20.75 crores per Quarter (excluding interest). The term loan was secured by way of first pari passu charge
on entire movable fixed assets (both present and future).

d. Secured Indian rupee term loan from bank amounting to ? 100 crores (March 31, 2024: ? Nil crore) carries
interest @ CSB overnight MCLR 0.04% p.a. Loan amount was repayable in 12 quarterly instalments from June
2025. The term loan is secured by way of First pari passu charge on all movable fixed assets except new Glass
Plant in Shendra & Specified immovable assets situated at Silvassa & Dadra.

e. Secured Indian rupee term loan from NBFC amounting to ? Nil (March 31, 2024: ? 100 crores ) carries interest
@ benchmark rate - 11.25% p.a. Loan amount was repayable in FY 2025-26, however, the same has been repaid
in the current year. The term loan is secured by way of first pari passu charge by way of hypothecation of
entire movable fixed assets of the Company, other than assets located at Shendra, Aurangabad (both present
and future).

f. Unsecured Indian rupee term loan from NBFC amounting to ? Nil (March 31, 2024: ? 78 crores) carries interest
@6.5% p.a. Loan amount is repayable in FY 2025-26 and 2026-27.

The said loan balance of ? 40 crores as on March 31, 2025, have been transferred to STL Networks Limited

pursuant to scheme of arrangement for demerger (refer note 15)

Notes:

i Net off Borrowings (Working capital demand loans) amounting to ? 704 crores that have been transferred to
STL Networks Limited pursuant to scheme of arrangement for demerger (refer note 15)

ii Pursuant to the Scheme of Arrangement for demerger referred in Note 15, the encumbrance in respect of

the secured borrowings transferred to STL Networks Limited shall be extended to and operate over the assets
transferred to STL Networks Limited which may have been encumbered in respect of such secured
borrowings. Accordingly, the encumbrance, if any, over the assets remaining with the Company are released
from the obligations relating to the secured borrowings transferred to STL Networks Limited. Similarly, the
encumbrance over the assets transferred to STL Networks Limited are released from the obligations relating
to the secured borrowings remaining with the Company.

The Company will be filing the particulars relating to modification of charge with the Registrar of Companies
upon completion of necessary discussion/documentation with the bankers.

iii Working capital demand loan from banks is secured by first pari-passu charge on entire current assets of the
Company (both present and future) and second pari-passu charge on plant & machinery and other
movable fixed assets of the Company. Working capital demand loans have been taken for a period of 7 days
to 180 days and carry interest @ 7.50% to 8.50% p.a (March 31, 2024: 7.65% to 8.30% p.a).

iv. Commercial Papers are unsecured and are generally taken for a period from 60 Days to 180 days and carry
interest @ 8.00% to 9.00% p.a (March 31, 2024: 8.20% to 9.00% p.a).

v. Other loans include buyer's credit arrangements (secured) and export packing credit (secured and
unsecured). These secured loans are secured by hypothecation of raw materials, work in progress, finished
goods and trade receivables. Export packing credit is taken for a period ranging from 30-180 days. Interest
rate for both the products range from 4.40% - 8.12% p.a (March 31, 2024: 4.46% - 8.30% p.a).

vi. Borrowing secured against current assets:

The Company has borrowings from banks and financial institutions on the basis of security of current
assets. The quarterly returns or statements of current assets filed by the company with banks and financial
institutions are in agreement with the books of accounts except as disclosed in Note no.48.

vii. Utilisation of borrowed funds :

The Company has not received any fund from any person(s) or entity(ies), including foreign entities
(Funding Party) with the understanding (whether recorded in writing or otherwise) that the company shall:

a. 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 ;

b. provide any guarantee, security or the like on behalf of the ultimate beneficiaries.

viii. The borrowings obtained by the Company during the year from banks and financial institutions have been
applied for the purposes for which such loans were taken.

ix. The Company has not been declared wilful defaulter by any bank or financial institution or government or
any government authority.

x. There are no charges or satisfaction which are yet to be registered with the Registrar of Companies beyond
the statutory period. Refer details as mentioned in note 18(ii) above.

xi. The Company is not required to be registered under Section 45-IA of the Reserve Bank of India Act, 1934.
The Company is not a Core Investment Company (CIC) as defined in the regulations made by the Reserve
Bank of India. The Group (as defined in the Core Investment Companies (Reserve Bank) Directions, 2016)
does not have any CICs, which are part of the Group.

The above sensitivity analysis of impact on defined benefit obligation is based on a change in an assumption
while holding all other assumptions constant. In practice, this is unlikely to occur, and changes in some
of the assumptions may be correlated. When calculating the sensitivity of the defined benefit obligation
to significant actuarial assumptions the same method (present value of the defined benefit obligation
calculated with the projected unit credit method at the end of the reporting period) has been applied as
when calculating the defined benefit liability recognised in the balance sheet.

The methods and types of assumptions used in preparing the sensitivity analysis did not change compared
to the prior period.

Risk exposure

Through its defined benefit plans, the Company is exposed to a number of risks, the most significant of
which are detailed below :

Asset volatility:

The plan liabilities are calculated using a discount rate set with reference to bond yields; if plan assets
underperform this yield, this will create a deficit. Plan assets are maintained with fund manager, LIC
of India and SBI Life Insurance Company Limited. The Company's assets are maintained in a trust
fund managed by LIC and SBI Life Insurance Company Limited which has been providing consistent
and competitive returns over the years. The plan asset mix is in compliance with the requirements of the
respective local regulations.

Changes in bond yields:

A decrease in bond yields will increase plan liabilities.

Future salary escalation and inflation risk:

Rising salaries will often result in higher future defined benefit payments resulting in a higher present
value of liabilities especially unexpected salary increases provided at management's discretion may lead
to uncertainties in estimating this risk.

Life expectancy

Increases in life expectancy of employee will result in an increase in the plan liabilities. This is particularly
significant where inflationary increases result in higher sensitivity to changes in life expectancy.

The weighted average duration of the defined benefit obligation is 7 years (March 31, 2024 - 7 years).
The expected maturity analysis of gratuity is as follows:

Revenue disaggregation in terms of nature of goods and services has been included above.

There is no material difference between the contract price and the revenue from contracts with customers.

The Company has no unsatisfied (or partially satisfied) performance obligations. Amount of unsatisfied (or
partially satisfied) performance obligations does not include contracts with original expected duration of one
year or less since the Company has applied the practical expedient in Ind AS 115.

Revenue from sale of services pertains to shipment services provided after transfer of control of the goods to
the customers in accordance with the contract.

*This includes government grants pertaining to indirect tax benefits availed under Industrial Promotion
Scheme.

** This relates to government grants pertaining to indirect tax benefits availed under Remission of Duties or
Taxes on Export Products Scheme and Duty Drawback Scheme.

33: EMPLOYEE SHARE BASED PAYMENTS

The Company has established employees stock options plan, 2010 ("ESOP Scheme”) for its employees
pursuant to the special resolution passed by shareholders at the annual general meeting held on July 14,
2010. The employee stock option plan is designed to provide incentives to the employees of the Company to
deliver long-term returns and is an equity settled plan. The ESOP Scheme is administered by the Nomination
and Remuneration Committee. Participation in the plan is at the Nomination and Remuneration Committee's
discretion and no individual has a contractual right to participate in the ESOP Scheme or to receive any
guaranteed benefits. Options granted under ESOP scheme would vest in not less than one year and not
more than five years from the date of grant of the options. The Nomination and Remuneration Committee
of the Company has approved multiple grants with related vesting conditions. Vesting of the options would
be subject to continuous employment with the Company and hence, the options would vest with passage of
time. In addition to this, the Nomination and Remuneration Committee may also specify certain performance
parameters subject to which the options would vest. Such options would vest when the performance
parameters are met.

Once vested, the options remain exercisable for a period of maximum five years. Options granted under the
plan are for no consideration and carry no dividend or voting rights. On exercise, each option is convertible
into one equity share. The exercise price is ? 2 per option.

The Company has charged ? 1 crore (credited ? 5 crores in March 31, 2024) to the statement of profit and
loss (including discontinued operations amounting to ? 2 crores as on March 31, 2025 (March 31, 2024: 2
crores)) in respect of options granted under ESOP scheme. The above amount is net off amount charged to
subsidiaries/fellow subsidiaries for options granted to the employees of these subsidiaries/fellow subsidiaries
by the Company.

* Excludes interest and penalties if any. The above matters pertain to certain disallowances/demand raised by
respective authorities.

# The above does not include contingent liabilities relating to demerged undertaking (Global Services
Business) which is transferred to STL Networks Limited pursuant to Scheme of Arrangement for Demerger
referred in Note 15. The Company is contesting these litigations on advice of STL Networks Limited and in
case of any unfavourable outcome, STL Networks Limited will reimburse the demand and all the related costs
to the Company.

2) The Company had issued Corporate guarantees amounting to ? 114 crores to the Income tax Authorities in FY
2003-04 on behalf of the Group companies. The matter against which corporate guarantee was paid by STL
was decided in favour of the Group companies by both ITAT and HC orders against which the Department has
filed an appeal with the Supreme Court. The above corporate guarantee is backed by the corporate guarantee
issued by Volcan Investments Limited (now known as Vedanta Incorporated Bahamas) (refer note 47) in the
favour of the Company.

3) In an earlier year, one of the Bankers of the Company had wrongly paid an amount of ? 19 crores under the
letter of credit facility. The letter of credit towards import consignment was not accepted by the Company,
owing to discrepancies in the documents. Thereafter, the bank filed claim against the Company in the Debt
Recovery Tribunal (DRT). Against the DRT Order dated 28 October 2010, the parties had filed cross appeals
before the Debt Recovery Appellate Tribunal. The Debt Recovery Appellate Tribunal vide its Order dated

28 January 2015 has allowed the appeal filed by the Company and has dismissed the appeal filed by the bank.
The bank has challenged the said order in Writ petition before the Bombay High Court. The management
doesn't expect the claim to succeed and accordingly no provision for the contingent liability has been
recognised in the financial statements.

4) In the FY21-22, the Company had received show cause notices with respect to 4 Service tax registrations of
? 57 crores each demanding service tax on difference between value of services appearing in 26AS (at legal
entity level) vis-a-vis respective service tax registrations for the period 2016-17. Out of these 4 show cause
notices, 3 cases were heard and got converted in Order, by subsuming 2 order and dropping the demand of
? 5.61 crores and thereby confirming the demand of ? 50.72 crores. Management has assessed the said case
and it is not required to be disclosed as contingent liability as it is erroneous in nature and the probability of an
unfavourable outcome is remote.

5) The Company has not provided for disputed liabilities disclosed above arising from disallowances made in
assessments which are pending with different appellate authorities for its decision. The Company is contesting

the demands and the management, including its tax advisor, believe that its position will likely be upheld in
the appellate process. No liability has been accrued in the financial statements for the demands raised. The
management believes that the ultimate outcome of these proceedings will not have a material adverse effect
on the Company's financial position. In respect of the claims against the company not acknowledged as debts
as above, the management does not expect these claims to succeed. It is not practicable to indicate the
uncertainties which may affect the future outcome and estimate the financial effect of the above liabilities.

6) Prysmian Cables and Systems USA, LLC (the "Plaintiff”) had filed a complaint in the U.S. District Court for
the District of South Carolina, Columbia Division, against Stephen Szymanski, (“Szymanski”), an employee
of Sterlite Technologies Limited's (STL) U.S. subsidiary, Sterlite Technologies Inc. (“STI”), as well as against
STI, alleging inter alia that Szymanski violated certain non-compete and confidentiality agreements with
the Plaintiff and subsequently divulged such confidential information to STI, which Plaintiff further alleges
provided STI with an unjust competitive advantage. Szymanski and STI asserted affirmative and meritorious
defenses to the allegations. STL is not a party to this dispute neither are any claims being made against it.

On August 9, 2024, at the conclusion of the trial, which commenced on July 22, 2024, the Jury returned its
verdict against Szymanski for $ 0.2 million (? 2 Crores) and against STI for an amount of $ 96.5 million (? 825
Crores).

On September 11, 2024, STI filed post-judgement motions requesting different types of post-trial relief.

As on March 31, 2025 STI believes the judgment is not supported by the testimony and evidence presented
at trial and intends to vigorously pursue all available post-trial remedies including an appeal. The ultimate
financial implications, if any, cannot be ascertained at this stage.

7) The Company initiated arbitration proceedings against Shin-Etsu (the “Respondent”) pursuant to the dispute
resolution clause under the Agreement, appointing Mr. Chan Leng Sun as the sole arbitrator. The dispute arose
from the Respondent's rejection of the Company's invocation of the force majeure clause due to the COVID-19
pandemic. Additionally, the Company contested the legality and enforceability of a clause in the Agreement
that purported to grant the Respondent a unilateral right to supply additional volumes of Standard Low Water
Peak Fibre Preform (“S-LWPEP”).

The Respondent filed a statement of defence and a counterclaim, disputing the applicability of the force
majeure clause and asserting that the Company remained liable for payment obligations under the Agreement.
It further counterclaimed for the right to declare and supply additional volumes of S-LWPEP under the
disputed clause.

In its award, the arbitral tribunal held that the Company had validly invoked the force majeure clause, but
only for the months of April and May 2020 (the “Force Majeure Period”). Accordingly, the Company was
not held liable for any failure to take or pay for shipments during that period. The tribunal also ruled that
the Respondent was entitled to an extension of the Agreement to compensate for the Company's reduced
purchases during the Force Majeure Period, with pricing to be determined by the tribunal.

Further, the tribunal found that the Respondent's invocation of the additional volume supply clause was
invalid, as it had not satisfied the necessary pre-conditions. However, the Company was found liable for
breach of its obligations under the Agreement outside the Force Majeure Period and was directed to pay the
Respondent USD 3,148.098 in damages, along with interest. The tribunal also awarded the Respondent legal
costs of JPY 30,900,600.60 and arbitration costs of USD 49,500, both with interest.

The Company subsequently filed an application before the General Division of the High Court of the Republic
of Singapore to set aside the Arbitral Award. The application was dismissed by judgment dated December
28, 2021. The Arbitral Award is pending for enforcement. Arguments in the matter are concluded and order is
reserved.

8) The Company has certain on-going litigations by/or against the Company with respect to tax and other legal
matter, other than those disclosed above. The Company believes that it has sufficient and strong arguments on
facts as well as on point of law and accordingly no provision/disclosure in this regard has been considered in
the financial statements.

38: DETAILS OF LOANS AND ADVANCES GIVEN TO SUBSIDIARIES

The details are provided as required by regulation 53 (f) read with Para A of Schedule V to SEBI
(Listing Obligation and Disclosure Requirements) Regulations, 2015.

supervision. It is the Company's policy that no trading in derivatives for speculative purposes should be
undertaken.

The Risk Management policies of the Company are established to identify and analyse the risks faced
by the Company, to set appropriate risk limits and controls and to monitor risks and adherence to
limits. Risk management policies and systems are approved and reviewed regularly by the Board to
reflect changes in market conditions and the Company's activities.

Management has overall responsibility for the establishment and oversight of the Company's risk
management framework. The risks to which Company is exposed and related risk management policies
are summarised below -

(a) Market risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because
of changes in market prices. Market risk comprises three types of risk: interest rate risk, currency risk and
price risk, such as equity price risk and commodity risk. Financial instruments affected by market risk mainly
includes loans given and borrowings, financial assets and liabilities in foreign currency, investments and
derivative financial instruments.

The sensitivity analysis in the following sections relate to the position as at March 31, 2025 and March 31, 2024.

The sensitivity analysis have been prepared on the basis that the amount of debt, the ratio of fixed to floating
interest rates of the debt, derivatives and the proportion of financial instruments in foreign currencies are all
constant and on the basis of hedge designations in place at March 31, 2025 and March 31, 2024.

Interest rate risk

Interest rate risk is the risk that the fair value or the future cash flows of a financial instrument will
fluctuate because of changes in interest rates. The Company's exposure to the risk of changes in interest
rate primarily relates to the Company's debt obligations with floating interest rates.

The Company is exposed to the interest rate fluctuation in domestic as well as foreign currency
borrowing. The Company manages its interest rate risk by having a balanced portfolio of fixed and
variable rate borrowings. At March 31, 2025, approximately 91% of the Company's borrowings are at a
fixed rate of interest (March 31, 2024: 92%).

The company operates internationally and is exposed to foreign exchange risk arising from foreign currency
transactions, primarily with respect to the USD, EURO and GBP. Foreign exchange risk arises from future
commercial transactions and recognised assets and liabilities denominated in a currency that is not the
company's functional currency (?). The risk is measured through a forecast of highly probable foreign
currency cash flows. The objective of the hedges is to minimise the volatility of the ? cash flows of highly
probable forecast transactions.

The Company has a policy to keep minimum forex exposure on the books that are likely to occur within a
15-month period for hedges of forecasted sales and purchases. As per the risk management policy, foreign
exchange forward contracts are taken to hedge its exposure in the foreign currency risk. During the year
ended March 31, 2025 and 2024, the company did not have any hedging instruments with terms which were
not aligned with those of the hedged items.

When a derivative is entered into for the purpose of hedge, the Company negotiates the terms of those
derivatives to match the terms of the underlying exposure. For hedges of forecast transactions the derivatives
cover the period of exposure from the point the cash flows of the transactions are forecasted up to the point
of settlement of the resulting receivable or payable that is denominated in the foreign currency.

Exchange gain (net) during the year amounted to ? 32 crores is included in other operating income and ? 5
crores in other income. In previous year the exchange loss (net) amounting to ? 1 crore was included in other
expenses.

Out of total foreign currency exposure the Company has hedged the significant exposure as at 31 March 2025
and as at 31 March 2024.

The Company exposure to foreign currency risk at the end of the year expressed in ? are as follows:

The Company has investments mainly in wholly owned subsidiaries.These investment are susceptible to
market price risk arising from uncertainties about future values of the investment securities. The
Company manages the equity price risk through diversification and by placing limits on individual
and total equity instruments. Reports on the equity portfolio are submitted to the Company's
senior management on a regular basis. The Company's Board of Directors review and approve all equity
investment decisions.

The Company also invests into highly liquid mutual funds which are subject to price risk changes.

These investments are generally for short duration and therefore impact of price changes is generally
not significant. Investment in these funds are made as a part of treasury management activities.

(b) Credit risk

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

Trade receivables and Contract assets

Customer credit risk is managed by each business unit subject to the Company's established policy,
procedures and control relating to customer credit risk management. Credit quality of a customer is
assessed taking into account its financial position, past experience and other factors, eg. credit rating
and individual credit limits are defined in accordance with credit assessment. Outstanding customer
receivables are regularly monitored.

The Company provides for expected credit loss of trade receivables and contract assets based on
life-time expected credit losses (simplified approach). The Company assesses the expected credit loss
for Global Services Business (GSB) individually for each customer. The expected credit losses for other
businesses is assessed using a provision matrix as per the practical expedient prescribed
under Ind AS 109.

A major portion of the GSB trade receivables and contract assets consists of government customers.

The credit default risk on receivables and contract assets with government customers is considered to
be remote. Disputes, if any, are assessed for indicators of increase in credit risk and, the Company
considers the expected date of billing and collection, interpretation of contractual terms, project status,
past history, latest discussion/correspondence with the customers and legal opinions, wherever
applicable in assessing the recoverability. The average project execution cycle in GSB ranges from 12 to
36 months based on the nature of contract and scope of services to be provided. General payment
terms include mobilisation advance, progress payments with a credit period ranging from 45 to 90
days and certain retention money to be released at the end of the project. In some cases retentions are
substituted with bank/corporate guarantees.

For other businesses, a provision matrix is used to measure the lifetime expected credit losses as per
the practical expedient prescribed under Ind AS 109. The trade receivables and contract assets for other
businesses are mainly related to contracts for sale of goods and time and material contracts.

An impairment analysis is performed at each reporting date on an individual basis for major customers. In
addition, a large number of smaller receivable balance are grouped into homogenous groups and assessed for
impairment collectively using a provision matrix. The assessment is based on historical information of defaults.
The maximum exposure to credit risk at the reporting date is the carrying value of each class of financial
assets.

The Company does not hold collateral as security. The Company evaluates the concentration of risk with
respect to trade receivables as low, as its customers are located in several jurisdictions and operate in largely
independent markets. During the period, the company made write-offs of Nil (March 31, 2024: Nil) trade
receivables and it does not expect to receive future cash flows or recoveries from collection of cash flows
previously written off. The contract assets have substantially the same risk characteristics as trade receivables
for same type of contract etc. Therefore management has concluded that the expected loss for trade
recievables are at reasonable approximation for loss rates for contract assets.

date under Ind AS 109. The inter-company loans have been provided to the subsidiaries for operational
purposes and with an expectation of an extended gestation period.The Company intends to allow
the subsidiaries to continue trading and and expects to recover the loans from the cash generated from
operations.The Company reviews the cash flow projections where it has used certain estimates at the
year end to assess if any provision towards expected credit loss needs to be made. The gross carrying
amount of loans for which credit risk has not increased significantly since initial recognition is ? 456
crores (March 31, 2024 :? 577 crores). The gross carrying amount of loans for which expected credit loss
has been created is ? 29 crores (March 31, 2024 :? 36 crores)

The loss allowance as on March 31, 2025 reconciles to the opening loss allowance as follows:

Financial assets and cash deposits

Credit risk from balances with banks and financial institutions is managed by the Company's treasury
department in accordance with the Company's policy. Investments of surplus funds are made only with
approved counterparties and within credit limits assigned to each counterparty. Counterparty credit limits
are reviewed by the Company on an annual basis, and may be updated throughout the year. The limits
are set to minimise the concentration of risks and therefore mitigate financial loss through counterparty's
potential failure to make payments. The credit default risk on balances with banks and financial institutions is
considered to be negligible.

The Company's maximum exposure to credit risk for the components of the balance sheet at March 31, 2025
and March 31, 2024 is the carrying amounts of each class of financial assets.

(c) Liquidity risk

Liquidity risk is the risk that the Company may encounter difficulty in meeting its present and future
obligations associated with financial liabilities that are required to be settled by delivering cash or
another financial asset. The Company's objective is to, at all times, maintain optimum levels of liquidity
to meet its cash and collateral obligations. The Company requires funds both for short term operational
needs as well as for long term investment programs mainly in growth projects. The Company closely
monitors its liquidity position and deploys a robust cash management system. It aims to minimise these
risks by generating sufficient cash flows from its current operations, which in addition to the available
cash and cash equivalents, liquid investments and sufficient committed fund facilities which will provide
liquidity.

The liquidity risk is managed on the basis of expected maturity dates of the financial liabilities. The
average credit period for trade payables is about 60 - 180 days. The other payables are with short term
durations. The carrying amounts are assumed to be reasonable approximation of fair value. The
table below summarises the maturity profile of the Company's financial liabilities based on contractual
undiscounted payments:

The company has access to ? 1,303 crores undrawn fund based borrowing facilities at the end of the
reporting period

Cash flow hedges

Foreign exchange forward contracts are designated as hedging instruments in cash flow hedges of
highly probable forecast transactions/firm commitments for sales and purchases mainly in USD, EUR
and GBP. The foreign exchange forward contract balances vary with the level of expected foreign
currency sales and purchases and changes in foreign exchange forward rates.

The cash flow hedges for such derivative contracts as at March 31, 2025 were assessed to be highly
effective and a net unrealised gain/(loss) of ? (1) crores, with a deferred tax asset of ? 0 crores relating
to the hedging instruments, is included in OCI. Comparatively, the cash flow hedges as at
March 31, 2024 were assessed to be highly effective and an unrealised gain of ? 12 crores, with a
deferred tax liability of ? 3 crores was included in OCI in respect of these contracts. The amounts
retained in OCI at March 31, 2025 are expected to mature and affect the statement of profit and loss
during the year ended March 31, 2026.

Impact of hedging activities

;a) Disclosure of effects of hedge accounting on financial position:

The Company's hedging policy requires for effective hedge relationships to be established. Hedge
effectiveness is determined at the inception of the hedge relationship and through periodic prospective
effectiveness assessments to ensure that an economic relationship exists between the hedged item
and hedging instrument. The company enters into hedge relationships where the critical terms of the
hedging instrument match exactly with the terms of the hedged item, and so a qualitative assessment
of effectiveness is performed. If changes in circumstances affect the terms of the hedged item such
that the critical terms no longer match exactly with the critical terms of the hedging instrument, the
company uses the hypothetical derivative method to assess effectiveness.

Ineffectiveness is recognised on a cash flow hedge where the cumulative change in the designated
component value of the hedging instrument exceeds on an absolute basis the change in value of the
hedged item attributable to the hedged risk. In hedges of foreign currency forecast sale may arise if:

- the critical terms of the hedging instrument and the hedged item differ (i.e. nominal amounts,
timing of the forecast transaction, interest resets changes from what was originally estimated), or

- differences arise between the credit risk inherent within the hedged item and the hedging
instrument.

Refer note 17 for the details related to movement in cash flow hedging reserve.

NOTE 45: CAPITAL MANAGEMENT

For the purpose of the Company's capital management, capital includes issued equity capital and all
other equity reserves attributable to the shareholders of the Company. The primary objective of the
Company's capital management is to ensure that it maintains a strong credit rating, healthy capital
ratios in order to support its business and maximise shareholder value and optimal capital structure to
reduce cost of capital.

The Company manages its capital structure and makes adjustments to it in light of changes in
economic conditions and the requirements of the financial covenants. To maintain or adjust the capital
structure, the Company may adjust the dividend payment to shareholders, return capital to
shareholders or issue new shares. The Company monitors capital using a gearing ratio, which is net
debt divided by total capital plus net debt. The Company's policy is to keep the gearing ratio
optimum. The Company includes within net debt interest bearing loans and borrowings less cash and
cash equivalents excluding discontinued operations.

The recent investments by the Company in new businesses, increasing the capacity of existing
businesses and increase in working capital due to certain projects has lead to increase in capital
requirement. The Company expects to realise the benefits of these investments in near future.

During the year ended March 31, 2025, the Company has issued 88,456,435 equity shares of face value
? 2 each at an issue price of ? 113.05 per equity share pursuant to Qualified Institutions Placement
(QIP) under the provisions of Chapter VI of the Securities and Exchange Board of India (Issue of Capital
and Disclosure Requirements) Regulations, 2018, as amended (the "SEBI ICDR Regulations”), and
section 42 and 62 of the Companies Act, 2013, including the rules made thereunder, each as amended.

’includes other bank balance of ? 50 crores (March 31, 2024 : ? 50 crores) with respect to fixed deposit excluding deposits
held as lien by banks against bank guarantees. These fixed deposits can be encashed by the Company at any time without
any major penalties.

In order to achieve this overall objective, the Company's capital management, amongst other things,
aims to ensure that it meets financial covenants attached to the interest-bearing loans and borrowings
that define capital structure requirements. Breaches in meeting the financial covenants would permit
the bank to immediately call loans and borrowings. There have been no breaches in the financial
covenants of any interest-bearing loans and borrowing in the current year and previous year.

No changes were made in the objectives, policies or processes for managing capital during the years
ended March 31, 2025 and March 31, 2024.

Dividend Distribution made and proposed

As a part of Company's capital management policy, dividend distribution is also considered as key
element and management ensures that dividend distribution is in accordance with defined policy.

Below mentioned are details of dividend distributed and proposed during the year.

Level 1 : The fair value of financial instruments traded in active markets is based on quoted market prices
at the end of the reporting period. The mutual funds are valued using the closing NAV. These instruments are
included in level 1.

Level 2: The fair value of financial instruments that are not traded in an active market is determined using
valuation techniques which maximise the use of observable market data and rely as little as possible
on entity-specific estimates. If all significant inputs required to fair value an instrument are observable, the
instrument is included in level 2.

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

There have been no transfers among Level 1, Level 2 and Level 3.

(c) Valuation technique used to determine fair value

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 willing parties, other than in a forced or liquidation sale. The
following methods and assumptions were used to estimate the fair values:

The fair value of mutual funds are based on NAV at the reporting date.

The Company enters into derivative financial instruments with financial institutions with investment
grade credit ratings. The foreign currency forwards - the present value of the future cash flows based
on the forward exchange rates at the balance sheet date.

(d) Valuation processes

The finance department of the Company includes a team that oversees the valuations of financial assets and
liabilities required for financial reporting purposes, including level 3 fair values.

External valuers are involved for valuation of significant assets, such as unquoted financials assets.
Involvement of external valuers is decided by the valuation team. Selection criteria includes market
knowledge, reputation, independence and whether professional standards are maintained. The Valuation
team decides, after discussions with the company's external valuers, which valuation techniques and inputs
to use for each case.

The management assessed that cash and cash equivalents, trade receivables, trade payables, other current
assets and liabilities approximate their carrying amounts largely due to the short-term maturities of these
instruments.Further the loans given are loans repayable on demand. The management has further assessed

* The Company has paid/provided for managerial remuneration in accordance with the requisite approvals mandated by the provisions
of Section 197 read with Schedule V to the Act except for managerial remuneration aggregating to ? 6 crores. The Company proposes
to seek the necessary approval of the shareholders by way of a special resolution in the ensuing Annual General Meeting.

*Share-based payments include the perquisite value of stock incentives excercised during the year,determined in accordance with the
provisions of the Income-tax Act,1961.

(E) Terms and Conditions

a) Transactions relating to dividends for equity shares were on the same terms and conditions that applied to
other shareholders.

b) All outstanding balances are unsecured and repayable in cash.

^c) The transactions with the related parties disclosed above are net of goods and services tax (as applicable).

d) The outstanding balances of related parties disclosed above are gross of goods and services tax (as
applicable).

e) The outstanding balances receivable for Loans/advance receivables and Investment in equity shares &
debentures from related parties are net of impairment loss.

49. SEGMENT REPORTING

The Company has presented segment information in the Consolidated Financial Statements which are
part of in the same annual report. Accordingly, in terms of provisions of Ind AS 108 'Operating Seg
ments', no disclosures related to segments are presented in these Standalone Financial Statements.

50. ADVANCES UNDER ADVANCE PAYMENT AND SALES AGREEMENT (APSA)

During previous year, the Company has received an interest-bearing advance of ? 207 crores
under an Advance Payment and Sales Agreement (APSA). The advance received is recongnized as a
current financial liability in accordance with the terms of the agreement and requirements of Ind AS 109
(Financial Instruments). The outstanding balance as on March 31, 2025 is ? 181 crores.

51. ROUNDING OFF

All amounts disclosed in the financial statements and notes have been rounded off to the nearest crores
as per the requirement of Schedule III, unless otherwise stated. Amounts below rounding off norm fol
lowed by the Company are disclosed as "0”.

52. PREVIOUS YEAR FIGURES

Previous year figures have been reclassified to conform to this year's classification.

As per our report of even date

For Price Waterhouse Chartered Accountants LLP For and on behalf of the Board of Directors of Sterlite Technologies Limited

Firm Registration No: 012754N/N500016

Sachin Parekh Pravin Agarwal Ankit Agarwal

Partner Vice Chairman & Whole-time Director Managing Director

Membership Number : 107038 DIN : 00022096 DIN : 03344202

Ajay Jhanjhari Mrunal Asawadekar

Chief Financial Officer Company Secretary

Place: Mumbai Place: Mumbai

Date: May 16, 2025 Date: May 16, 2025