2018

73
BHARAT SANCHAR NIGAM LIMITED

Standalone Balance Sheet as at 31st March 2018
(All amounts in ` lacs, unless otherwise stated)
As at As at
Particulars Note
31st March 2018 31st March 2017
ASSETS
Non-current assets
Property, plant and equipment 3(i) 9,931,362 10,015,696
Capital work-in-progress 3(ii) 870,384 649,235
Intangible assets 4 697,230 755,004
Investment in subsidiary 5 - -
Financial assets
(i) Investments 6 - -
(ii) Loans 7 583 870
(iii) Other financial assets 8 24,029 28,785
Deferred tax assets (net) 9 - -
Other non-current assets 10 85,184 65,422
Total non-current assets 11,608,772 11,515,012
Current assets
Inventories 11 21,241 20,473
Financial assets
(i) Investments 12 20,000 20,000
(ii) Trade receivables 13 392,538 309,881
(iii) Cash and cash equivalents 14 75,782 338,737
(iv) Bank balances other than (iii) above 15 138 126
(v) Loans 16 224 445
(vi) Other financial assets 17 920,213 722,212
Current tax assets (net) 18 119,650 38,669
Other current assets 19 86,708 138,285
Assets held for sale 20 34,517 -
Total current assets 1,671,011 1,588,828
Total assets 13,279,783 13,103,840
EQUITY AND LIABILITIES
500,000 500,000
8,467,242 9,267,424
8,967,242 9,767,424
Annual Report 2017-18

Standalone Balance Sheet as at 31st March 2018
As at As at
Particulars Note
Liabilities
Non-current liabilities
Financial liabilities
(i) Borrowings 23 1,654,348 1,062,657
(ii) Other financial liabilities 24 181,781 138,770
Provisions 25 91,204 95,099
Other non-current liabilities 26 65,097 102,842
Total non-current liabilities 1,992,430 1,399,368
Current liabilities
(i) Borrowings 27 30,910 59,613
(ii) Trade payables 28 782,989 592,993
(iii) Other financial liabilities 29 698,476 791,388
Other current liabilities 30 806,579 492,259
Provisions 31 1,157 795
Total current liabilities 2,320,111 1,937,048
Total liabilities 4,312,541 3,336,416
Total equity and liabilities 13,279,783 13,103,840
This is the balance sheet referred to in our report of even date.

The accompanying notes are an integral part of these standalone financial statements 1 to 58
In terms of our report attached
For ANDROS & Co. For and on behalf of Bharat Sanchar Nigam Limited
Chartered Accountants
Firm Registration No. : 008976N
Sd/- Sd/-
Puneet Gupta Anupam Shrivastava
Partner Chairman and Managing Director
Membership No. : 093714 DIN: 06590535
Sd/-
Place : New Delhi Sujata Ray
Date : 4 October 2018 Director (Finance)
DIN: 07240022
Sd/-
P.D. Chirania
General Manager (Corporate Accounts)
Sd/-
H.C. Pant
Company Secretary and Chief General Manager (Legal)
M.No. F- 2584
Standalone of Profit and Loss for the year ended 31st March 2018
For the year ended For the year ended

Particulars Note
Revenue
Revenue from operations 32 2,266,778 2,840,373
Other income 33 240,286 312,971
Total revenue (I) 2,507,064 3,153,344
Expenses
License and spectrum fee 39 174,338 231,086
Employee benefits expense 34 1,483,724 1,571,545
Finance costs 35 4,831 14,679
Depreciation and amortisation expense 36 583,158 633,042
Other expenses 37 1,134,829 1,182,313
Total expenses (II) 3,380,880 3,632,665
Loss before tax (I - II = III) (873,816) (479,321)
Tax expense: (IV)
Current tax 51 (80,429) -
Fringe benefit tax 5,898 -
Loss for the year (III - IV = V) (799,285) (479,321)
Other comprehensive income (VI)
Items that will not be reclassified to the statement of profit and los
Remeasurement of post employment benefit obligation (net of tax) (897) 717
Total other comprehensive income/ (expense) for the year, net of taxes (VI) (897) 717
Total comprehensive income/ (expense) for the year (V + VI = VII) (800,182) (478,604)
Loss per equity share (INR) 44 (15.99) (9.59)
Basic and diluted (nominal value of shares INR 10 each)
This is the statement of profit and loss referred to in our report of even date.
Sd/- Sd/-
Equity Sd/-
Sujata Ray
Place:Equity share capital
New Delhi 21 Director (Finance)
Date:Other
4 October 2018
equity 22 DIN: 07240022
Total equity Sd/-

P.D. Chirania
Sd/-
H.C. Pant
M.No. F- 2584
74

Standalone Cash Flow Statement for the year ended 31st March 2018
(All amounts in ` lacs, unless otherwise stated )

Particulars
A. Cash flows from operating activities
Profit/ (loss) before tax (873,816) (479,321)
Adjustments for:
Depreciation and amortisation expense 583,158 633,042
Finance costs 936 6,788
Unwinding of discount on decommissioning liabilities 3,895 7,891
Interest income (7,497) (50,350)
Profit on sale of property, plant and equipment (net) (12,796) (7,006)
Capitalisation of overheads (92,481) (63,913)
Write off and losses other than bad debts 24,904 21,511
Bad-debt provision other than services 487 547
Write off of unrecovered service tax/ GST 2,515 4,967
Bad-debt written off 25,159 37,047
Provision for doubtful debts and disputed bills 19,642 28,462
Excess liabilities written back no longer required (151,624) (195,062)
Grant in aid (net) (37,745) 78,311
Operating cash flows before working capital changes (515,263) 22,914
(Increase)/Decrease in loans (current and non-current) 507 830
(Increase)/Decrease in trade receivables (127,458) (113,839)
(Increase)/Decrease in inventories (768) (1,344)
(Increase)/Decrease in other financial assets (193,324) 124,400
(Increase)/Decrease in other assets 28,168 64,977
Increase/(Decrease) in trade payables 189,996 (92,067)
Increase/(Decrease) in other financial liabilities 69,854 329,074
Increase/(Decrease) in provisions 5,297 (17,356)
Increase/(Decrease) in other liabilities 286,414 36,907
Cash from operating activities (256,577) 354,497
Net income tax refund (paid) (6,450) 504,312
Net cash generated from operating activities (A) (263,027) 858,809
B. Cash flows from investing activities
Acquisition of property, plant and equipment (743,332) (483,765)
Proceeds from sale of property, plant and equipment 141,920 66,583
Interest received 7,574 208,117
Proceeds from / (investment in) deposits with banks (10) (17)
Net cash generated used in investing activities (B) (593,848) (209,082)
C. Cash flows from financing activities
Interest paid (936) (6,550)
Repayment of short term borrowings (net) - (283,672)
Proceeds from/(repayment) of long term loans (net) 623,559 (182,951)
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Standalone Cash Flow Statement for the year ended 31st March 2018
Net cash generated from/(used in) financing activities (C) 622,623 (473,173)
Net increase/(decrease) in cash and cash equivalents (A + B + C) (234,252) 176,553
Cash and cash equivalents at the beginning of the year 279,124 102,571
Cash and cash equivalents at the end of the year 44,872 279,124
Components of cash and cash equivalents:
Balances with banks in current account including sweep-in-deposit 70,949 270,104
Deposits with original maturity of less than three months - 63,300
Cheques on hand 2,428 2,182
Cash on hand 2,405 3,151
Bank overdraft (30,910) (59,613)
Total cash and cash equivalents (Note 14) 44,872 279,124
Notes:
a) In the absence of adequate data regarding assets appearing in the disposals/ adjustments column of note no. 3
of property, plant and equipment , all deletions (except amount transferred as assets held for sale) have been
assumed to be cash sales.
b) In the absence of adequate details regarding unreconciled inter circle remittances with the subsidiary records,
all the ‘intra/ inter circle remittances’ have been treated as part of working capital changes.
c) Reconciliation between the opening and closing balances in the balance sheet for liabilities arising from
financing activities:
Particulars Non-current borrowings*

Opening balance as at 1 April 2017 321,657
Cash flows during the year 623,559
Interest expense 54,914
Interest paid (54,914)
Closing balance as at 31 March 2018 945,216
* Includes current maturities of non-current borrowings, refer Note 29.
The accompanying notes are an integral part of these standalone financial statements
Sd/-
Sd/-
Sujata Ray
Place: New Delhi Director (Finance)
Date: 4 October 2018 DIN: 07240022
Sd/-
P.D. Chirania
Sd/-
H.C. Pant
M.No. F- 2584
78

Standalone Statement of Changes in Equity for the year ended 31 st March 2018
a. Equity share capital
Particulars Note Amount

Balance as at 1 April 2016 500,000
Changes in equity share capital during the year ended 31 March 2017 21 -
Balance as at 31 March 2017 500,000
b. Other equity
Reserves and surplus \

Capital General Contingency Retained Capital
Particulars reserve reserve reserve earnings contribution Total
from shareholder
(Refer note 22)
Balance as at 1 April 2016 4,021,118 290,075 200,000 5,136,517 98,318 9,746,028
Loss for the year - - - (479,321) - (479,321)
Contingency reserve transferred to - 200,000 (200,000) - - -
general reserve
Other comprehensive income/ (expense) - - - 717 - 717
for the year
Balance as at 31 March 2017 4,021,118 490,075 - 4,657,913 98,318 9,267,424
Balance as at 1 April 2017 4,021,118 490,075 - 4,657,913 98,318 9,267,424
Loss for the year - - - (799,285) - (799,285)
Contingency reserve transferred to - - - - - -
general reserve
Other comprehensive income/ (expense) - - - (897) - (897)
for the year

Sd/-
Sd/-
Sujata Ray
Place: New Delhi Director (Finance)
Date: 4 October 2018 DIN: 07240022
Sd/-
P.D. Chirania
Sd/-
H.C. Pant
M.No. F- 2584
79
Notes to the standalone financial statements for the year ended 31st March 2018
1. Corporate information
Bharat Sanchar Nigam Limited (the ‘Company’ or ‘BSNL’) is a Public Sector Company fully owned by
the Government of India and was formed on 15 September 2000 in pursuance to the Telecom Policy
1999, to take over the ongoing business of the Department of Telecom Services (DTS) and Department
of Telecom Operations (DTO) from 1 October 2000 (CIN: U74899DL2000GOI107739). The Company
has been incorporated under the erstwhile Companies Act, 1956 with its registered corporate office in
New Delhi.
Basis of preparation
a) Statement of compliance
These standalone financial statements are prepared on going concern basis following
accrual system of accounting and comply with the Indian Accounting Standards (Ind AS)
notified under The Companies (Indian Accounting Standards) Rules, 2015 and subsequent
amendments thereto, under Section 133 of The Companies Act, 2013 (to the extent notified
and applicable), and applicable provisions of the Companies Act, 1956.
The standalone financial statements were authorised for issue by the Company’s Board of
Directors on 4 October 2018.
b) Functional and presentation currency
The financial statements are presented in Indian Rupees (INR) which is the Company’s
functional and presentational currency.
c) Basis of measurement
The financial statements have been prepared on going concern basis under the historical
cost convention except for the following items:
Items Measurement basis

Certain financial assets and liabilities Fair value
Net defined benefit (asset)/ liability Fair value of plan assets less present value of
defined benefit obligation
Assets held for sale Lower of net carrying cost and net realisable
value
d) Critical accounting estimates and judgements
In preparing these financial statements, management has made judgements, estimates and
assumptions that affect the application of accounting policies and the reported amounts of
assets, liabilities, income and expenses.
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Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to

accounting estimates are recognised prospectively.
Judgements
Information about judgements made in applying accounting policies that have the most
significant effects on the amounts recognised in the financial statements is included in the
following notes:
Note 2.2 (p) - whether the Company acts as a principal rather than as an agent in a transaction
Note 2.2 (r) - leases: whether an arrangement contains a lease
Note 2.2 (r) - lease classification
Note 2.2 (e) and 52- classification of financial assets: assessment of business model within
which the assets are held and assessment of whether the contractual terms of the financial
asset are solely payments of principal and interest on the principal amount outstanding.
Assumptions and estimation uncertainties
Information about assumptions and estimation uncertainties that have a significant risk of
resulting in a material adjustment in the year ending 31 March, 2019 is included in the
following notes:
Note 2.2 (m) and 40- measurement of defined benefit obligations and plan assets: key
actuarial assumptions
Note 2.2 (h) - measurement of useful lives and residual values to property, plant and
equipment
Note 2.2 (j) - measurement of useful lives of intangible assets
Note 2.2 (n), 2.2 (o) and 49 and 49 - recognition and measurement of provisions and
contingencies: key assumptions about the likelihood and magnitude of an outflow of
resources
Note 2.2 (c) and 52 - fair value measurement of investment in preference shares
Note 2.2 (t) - recognition of deferred tax assets: availability of future taxable profit against
which tax losses carried forward can be used
2.2. Significant accounting policies
The accounting policies set out below have been applied consistently to all periods
presented in these standalone financial statements.
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a) Current and non-current classification
All assets and liabilities are classified as current or non-current on the following basis:
Assets
An asset is classified as current when it satisfies any of the following criteria:
• It is expected to be realised in, or is intended for sale or consumption in, the Company’s
normal operating cycle;
• It is held primarily for the purpose of being traded;
• It is expected to be realised within 12 months after the reporting date; or
• It is cash or cash equivalent unless it is restricted from being exchanged or used to settle
a liability for at least 12 months after the reporting date.
Current assets include the current portion of non-current financial assets. All other assets
are classified as non-current.
Liabilities
A liability is classified as current when it satisfies any of the following criteria:

• It is expected to be settled in the Company’s normal operating cycle;
• It is due to be settled within 12 months after the reporting date; or
• The Company does not have an unconditional right to defer settlement of the liability
for at least 12 months after the reporting period. Terms of a liability that could, at the
option of the counterparty, result in its settlement by the issue of equity instruments do
not affect its classification.
Current liabilities include the current portion of financial liabilities some part of which may
be non-current. All other liabilities are classified as non-current.
Deferred tax assets are classified as non-current assets.
Operating cycle
The operating cycle is the time between the acquisition of assets for processing and their
realisation in cash or cash equivalents. Based on the nature of operations and the time
between the acquisition of assets for processing and their realization in cash and cash
equivalents, the Company has ascertained its operating cycle being a period of 12 months
for the purpose of classification of assets and liabilities as current and non-current.
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b) Foreign currency transactions and translations
Monetary and non-monetary transactions in foreign currencies are initially recorded in the
functional currency of the Company at the exchange rates at the dates of the transactions or
at average rates if the average rate approximates the actual rate at the date of the transaction.
Monetary foreign currency assets and liabilities remaining unsettled on reporting date are
translated at the rates of exchange prevailing on the reporting date. Gains/(losses) arising
on account of realisation/settlement of foreign exchange transactions and on translation of
monetary foreign currency assets and liabilities are recognised in the statement of profit and
loss.
c) Fair value measurement
Fair value is the price that would be received to sell an asset or paid to transfer a liability in
an orderly transaction between market participants at the measurement date. The fair value
measurement is based on the presumption that the transaction to sell the asset or transfer
the liability takes place either –
• In the principal market for the asset or liability, or
• In the absence of a principal market, in the most advantageous market for the asset or
liability
The principal or the most advantageous market must be accessible to/ by the Company.
The fair value of an asset or a liability is measured using the assumptions that market
participants would use when pricing the asset or liability, assuming that market participants
act in their economic best interest. A fair value measurement of a non-financial asset takes
into account a market participant’s ability to generate economic benefits by using the asset
in its highest and best use or by selling it to another market participant that would use the
asset in its highest and best use.
The Company uses valuation techniques that are appropriate in the circumstances and for
which sufficient data are available to measure fair value, maximising the use of relevant
observable inputs and minimising the use of unobservable inputs.
All assets and liabilities for which fair value is measured or disclosed in the standalone
financial statements are categorised within the fair value hierarchy, described as follows,
based on the lowest level input that is significant to the fair value measurement as a whole:
Level 1 — Quoted (unadjusted) prices in active markets for identical assets or liabilities
Level 2 — Valuation techniques for which the lowest level input that is significant to the fair
value measurement is directly or indirectly observable
Level 3 — Valuation techniques for which the lowest level input that is significant to the fair
83
value measurement is unobservable

Fair values of financial instruments at each reporting date are disclosed in Notes 52.
d) Investment in subsidiary
Investment in subsidiary is measured at cost.
e) Financial instruments
A financial instrument is any contract that gives rise to a financial asset of one entity and a
financial liability or equity instrument of another entity.
i. Financial assets
Recognition and initial measurement
All financial assets are initially recognised when the Company becomes a party to the
contractual provisions of the instrument. All financial assets are initially measured at fair
value plus, in the case of financial assets not recorded at fair value through profit or loss,
transaction costs that are attributable to the acquisition of the financial asset.
Classification and subsequent measurement
Classification
For the purpose of subsequent measurement, the Company classifies financial assets in
following categories:
• Financial assets at amortised cost

• Financial assets at fair value through profit or loss (FVTPL)
A financial asset being a ‘debt instrument’ is measured at amortised cost if both of the
following conditions are met:
• The financial asset is held within a business model whose objective is to hold assets
for collecting contractual cash flows, and
• The contractual terms of the financial asset give rise on specified dates to cash flows
that are solely payments of principal and interest (SPPI) on the principal amount
outstanding.
A financial asset being an equity instrument is measured at FVTPL.
All financial assets not classified as measured at amortised cost are measured at FVTPL. On
initial recognition, the Company may irrevocably designate a financial asset that otherwise
meets the requirements to be measured at amortised cost or at FVOCI (Fair value through
Other Comprehensive Income) or at FVTPL if doing so eliminates or significantly reduces
an accounting mismatch that would otherwise arise.
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Subsequent measurement
Financial assets at amortised cost: These assets are subsequently measured at amortised
cost using the effective interest method. The amortised cost is reduced by impairment
losses, if any. Interest income and impairment are recognised in the statement of profit and
loss.
Financial assets at FVTPL: These assets are subsequently measured at fair value. Net gains
and losses, including any interest income, are recognised in the statement of profit and loss.
Derecognition
The Company derecognises a financial asset when the contractual rights to the cash flows
from the financial asset expire, or it transfers the rights to receive the contractual cash
flows in a transaction in which substantially all of the risks and rewards of ownership of
the financial asset are transferred or in which the Company neither transfers nor retains
substantially all of the risks and rewards of ownership and it does not retain control of the
financial asset. Any gain or loss on derecognition is recognised in the statement of profit
and loss.
Impairment
The Company recognizes loss allowances using the Expected Credit Loss (ECL) model for
the financial assets which are not fair valued through profit or loss. Loss allowance for
trade receivables with no significant financing component is measured at an amount equal
to lifetime ECL. For all other financial assets, expected credit losses are measured at an
amount equal to the 12-month ECL, unless there has been a significant increase in credit
risk from initial recognition, in which case those financial assets are measured at lifetime
ECL. The changes (incremental or reversal) in loss allowance computed using ECL model,
are recognised as an impairment gain or loss in the statement of profit and loss.
Write-off
The gross carrying amount of a financial asset is written off (either partially or in full) to the
extent that there is no realistic prospect of recovery. This is generally the case when the
Company determines that the counterparty does not have assets or sources of income that
could generate sufficient cash flows to repay the amounts subject to the write-off. However,
financial assets that are written off could still be subject to enforcement activities in order
to comply with the Company’s procedures for recovery of amounts due.
ii. Financial liabilities
All financial liabilities are initially recognised when the Company becomes a party to the
contractual provisions of the instrument. All financial liabilities are initially measured at fair
85
value minus, in the case of financial liabilities not recorded at fair value through profit or
loss, transaction costs that are attributable to the liability.
Financial liabilities are classified as measured at amortised cost.
Financial liabilities are subsequently measured at amortised cost using the effective interest
method. Interest expense is recognised in the statement of profit and loss. Any gain or loss
on derecognition is also recognised in the statement of profit and loss.
Derecognition
The Company derecognises a financial liability when its contractual obligations are
discharged or cancelled, or expire.
The Company also derecognises a financial liability when its terms are modified and the
cash flows under the modified terms are substantially different. In this case, a new financial
liability based on modified terms is recognised at fair value. The difference between the
carrying amount of the financial liability extinguished and the new financial liability with
modified terms is recognised in the statement of profit and loss.
iii. Offsetting
Financial assets and financial liabilities are offset and the net amount presented in the
Balance Sheet when, and only when, the Company currently has a legally enforceable right
to set off the amounts and it intends either to settle them on a net basis or to realise the
assets and settle the liabilities simultaneously.
f) Equity share capital
Proceeds from issuance of ordinary shares are recognised as equity share capital in equity.
Incremental costs directly attributable to the issuance of new equity shares are recognized
as a deduction from equity, net of any tax effects.
g) Cash and cash equivalents
Cash and cash equivalents in the balance sheet comprise cash at banks and on hand,
short-term deposits with an original maturity of three months or less, which are subject to
an insignificant risk of changes in value, and bank overdrafts. Bank overdrafts are shown
within borrowings in current liabilities in the balance sheet.
h) Property, plant and equipment
Recognition and measurement
Items of property, plant and equipment are measured at cost, which includes capitalised
borrowing costs, less accumulated depreciation and accumulated impairment losses, if
any.
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Cost of an item of property, plant and equipment comprises its purchase price, including
import duties and non-refundable purchase taxes, after deducting trade discounts and
rebates, any directly attributable cost of bringing the item to its working condition for its
intended use and estimated costs of dismantling and removing the item and restoring the
site on which it is located.
The cost of a self-constructed item of property, plant and equipment comprises the cost
of materials and direct labor, any other costs directly attributable to bringing the item to
working condition for its intended use, and estimated costs of dismantling and removing
the item and restoring the site on which it is located.
If significant parts of an item of property, plant and equipment have different useful lives,
then they are accounted for as separate items (major components) of property, plant and
equipment.
i. Assets are capitalised to the extent completion certificates have been obtained,
wherever applicable.
ii. Apparatus and plants principally consisting of telephone exchanges, transmission
equipment and air conditioning plants etc. are capitalised as and when an exchange
is commissioned.
iii. Cables are capitalised as and when ready for connection to the main system.
iv. Gains and losses on disposals are determined by comparing proceeds with carrying
amount. These are included in the statement of profit and loss within other gains/
(losses).
v. Spares parts costing above INR 200,000 per unit and which meet the definition of
property, plant and equipment are capitalised.
Capital work-in-progress includes assets under construction and cost attributable to
construction of assets not ready for use before the year end.
Transition to Ind AS
On transition to Ind AS, the Company has elected to selectively fair value its freehold land.
The Company has considered the fair value as deemed cost at the transition date, viz., 1
April 2015.
All other remaining property, plant and equipment are carried at cost which is recomputed
retrospectively as per Indian Accounting Standard 16. ‘Property, plant and equipment’.
Subsequent expenditure
Subsequent expenditure are included in the asset’s carrying amount or recognised as a

separate asset, as appropriate, only when it is probable that future economic benefits
associated with the item will flow to the Company and the cost of the item can be measured
87
reliably. The carrying amount of any component accounted for as a separate asset is
derecognised when replaced.
All other repairs and maintenance are charged to the statement of profit and loss during the
reporting period in which they are incurred.
Depreciation methods, estimated useful lives and residual value

i. Depreciation on property, plant and equipment has been provided as per guidance
set out in Schedule II of the Companies Act, 2013 on written down value (WDV)
method except in respect of the assets mentioned in (ii) and (iii) below.
ii. Assets costing up to INR 5,000 are depreciated fully in the year of purchase. Similarly,
partition works and paintings costing up to INR 200,000 are depreciated fully in the
year of construction/ acquisition.
iii. The depreciation on machinery and tools used both for project and maintenance
work is charged to the statement of profit and loss instead of capitalization.
iv. All telephone exchange buildings, administrative offices and captive consumption
assembling premises/workshops are considered as buildings (other than factory
building). Accordingly, depreciation is charged uniformly.
v. Assets acquired under finance leases are depreciated over the shorter of the lease
term and their useful lives unless it is reasonably certain that the Company will obtain
ownership by the end of the lease term. Freehold land is not depreciated.
vi. Depreciation method, useful lives and residual values are reviewed at each reporting
period end.
i) Assets held for sale
Non-current assets are classified as assets held for sale if it is highly probable that they will
be recovered primarily through sale rather than through continuing use. Assets classified as
held for sale are stated at the lower of carrying amount and the net realisable value.
Assets classified as held for sale are presented separately in the balance sheet.
j) Intangible assets
Intangible assets are recognised if it is probable that the future economic benefits attributable
to the assets will flow to the enterprise and cost of the asset can be measured reliably in
accordance with the notified Indian Accounting Standard – 38 , ‘Intangible Assets’.
Intangible assets acquired separately are measured on initial recognition at cost. Following
initial recognition, intangible assets are carried at cost less any accumulated amortisation
and accumulated impairment losses.
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On transition to Ind AS, the Company has elected to continue with the carrying value of
all of its intangible assets recognised as at 1 April 2015, measured as per the standalone
financial statements prepared in accordance with the accounting standards notified under
Companies (Accounting Standards) Rules, 2006 (Previous GAAP) and use that carrying
value as the deemed cost of such intangible assets.
Subsequent expenditure is capitalised only when it increases the future economic benefits
embodied in the specific asset to which it relates.
Amortisation
a) Intangible assets with finite lives are amortised over the useful economic life and
assessed for impairment whenever there is an indication that the intangible asset may
be impaired.
b) 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.
c) 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.
1) License fee
i. Acquired licenses, including one time spectrum fee for telecom service operations,
are initially recognised at cost.
ii. The revenue-share fee on licenses and spectrum is computed as per the licensing
agreement and is expensed as incurred.
iii. Amortisation is recognised in the statement of profit and loss on a straight-line basis
over the unexpired period of the license commencing from the date when the related
network is available for intended use.
Intangible assets such as entry license fee, one-time Spectrum fee for telecom service
operations are amortised over the license period (i.e. 20 years) and standalone computer
software applications are amortised over the license period (subject to maximum 10 years)
using the straight line method.
2) Computer software
Costs associated with maintaining software programs are recognised as an expense as

incurred.
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k) Inventories
Inventory is valued at the lower of cost and net realizable value. Cost is determined on
weighted average method. Inventory costs include purchase price, freight inward and
transit insurance charges. Net realisable value is the estimated selling price in the ordinary
course of business, less estimated costs of completion and the estimated costs necessary to
make the sale.
The Company provides for obsolete and slow-moving inventory based on management
estimates of the usability of inventory.
l) Impairment of non-financial assets
The company assesses, at each reporting date, whether there is an indication that an asset
may be impaired. If any indication exists, or when annual impairment testing for an asset
is required, the Company estimates the asset’s recoverable amount. An asset’s recoverable
amount is the higher of an asset’s fair value or cash-generating unit’s (CGU) fair value less
costs of disposal and its value in use.
Recoverable amount is determined for an individual asset, unless the asset does not
generate cash inflows that are largely independent of those from other assets or groups of
assets. When the carrying amount of an asset or CGU exceeds its recoverable amount, the
asset is considered impaired and is written down to its recoverable amount.
m) Employee benefits
i. Short-term obligations
All employee benefits payable / available within twelve months of rendering the
service such as salaries, wages and bonus etc., are classified as short-term employee
benefits and are recognised in the statement of profit and loss in the period in which
the employee renders the related service.
ii. Defined contribution plans
A defined contribution plan is a post-employment benefit plan under which an entity
pays fixed contributions into a separate entity and will have no legal or constructive
obligation to pay further amounts. Obligations for contributions to defined contribution
plans are recognised as an employee benefits expense in the statement of profit and
loss in the periods during which the related services are rendered by employees. The
Company makes specified contributions towards the following schemes:
Pension Contribution (including gratuity)
The employees of DoT who have opted for absorption / absorbed in the Company and the
employees on deemed deputation from Government are eligible for pension, which is a
defined contribution plan. The Company makes monthly contribution (including liability
on account of gratuity) at the applicable rates as per Government Pension Rules, 1972
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and Fundamental Rules and Supplementary Rules (FR & SR), to the Government who
administers the same. These contributions are expensed in the statement of profit and loss
as and when incurred.
Employee's provident fund
All directly recruited employees of the Company are entitled to receive benefits under the
provident fund, a defined contribution plan. Both employee and employer make monthly
contribution to the plan at a predetermined rate of employee’s basic salary and dearness
allowance. These contributions to provident fund are administered by the provident fund
commissioner. Employer’s Contribution to provident fund is expensed in the statement of
profit and loss as and when incurred.
Contribution for leave salary
For employees on deemed deputation from Government, leave salary contribution is paid
by the Company to DoT/ Government for the deputation period in accordance with FR115
(b) of FR&SR Part I. Consequently, the liability for the leave salary payable for those on
deputation/ deployment during the period of leave rests with the Government. Further,
any leave encashment after quitting service is the responsibility of the Government. These
contributions are expensed in the statement of profit and loss as and when incurred.
Contribution for superannuation fund
All regular employees of the Company except apprentices, absorbed employees of
Department of Telecommunications (DOT)/ Department of Telecom Services (DTS)/
Department of Telecom Operations (DTO) who are already covered by Rule 37-A of
Central Civil Services (Pension) Rules 1972, the employees who are not on the regular
rolls of the company and employees posted on deputation in the company are entitled
to receive benefits under the BSNL Employees Superannuation Pension Scheme, which
is a defined contribution plan. The Company makes monthly contribution to the BSNL
Employees Superannuation Pension Fund Trust at the applicable rates.
These contributions are expensed in the statement of profit and loss as and when incurred.
iii. Defined benefit plans
A defined benefit plan is a post-employment benefit plan other than a defined contribution
plan.
Gratuity
The Company provides for gratuity, a defined benefit plan (the Gratuity Plan) covering
all directly recruited eligible employees. In accordance with the payment of Gratuity Act,
1972, the Gratuity plan provides a lump sum payment to vested employees on retirement,
death, incapacitation or termination of employment.
The calculation of defined benefit obligation is performed annually by a qualified actuary
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separately for each plan using the projected unit credit method, which recognises each year
of service as giving rise to an additional unit of employee benefit entitlement and measures
each unit separately to build up the final obligation.
The obligation is measured at the present value of estimated future cash flows. The discount
rates used for determining the present value of obligation for the defined benefit plans, is
based on the market yields on Government securities as at the balance sheet date, having
maturity periods approximating to the terms of related obligations.
Remeasurements, comprising of actuarial gains and losses, the effect of the asset ceiling,
excluding amounts included in net interest on the net defined benefit, are recognised
immediately in the balance sheet with a corresponding debit or credit to retained earnings
through other comprehensive income in the period in which they occur.
Remeasurements are not reclassified to the statement of profit and loss in subsequent
periods.
The Company determines the net interest expense/ (income) on the net defined benefit
liability/ (asset) for the period by applying the discount rate used to measure the defined
benefit obligation at the beginning of the annual period to the then-net defined benefit
liability/ (asset), taking into account any changes in the net defined benefit liability/ (asset)
during the period as a result of contributions and benefit payments. Net interest expense
and other expenses related to defined benefit plans are recognised in the statement of profit
and loss.
Other benefits including post-employment medical care
Medical reimbursements and other personal claim bills of existing / retired employees
are accounted for on actual basis in respect of bills received till the cut off period in the
accounts at the concerned primary units as per the prescribed limits.
iv. Other long term employment obligations
The liabilities for compensated absences and half pay leaves are not expected to be settled
wholly within twelve 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, calculation for which is performed annually by a qualified
actuary.
The liability is measured at the present value of estimated future cash flows. The discount
rates used for determining the present value of the liability are based on the market yields on
Government securities as at the balance sheet date, having maturity periods approximating
to the terms of related liabilities.
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Remeasurements as a result of experience adjustments and changes in actuarial assumptions

are recognised in the statement of profit and loss.
n) Provisions
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.
Provisions are measured at management’s best estimate of the expenditure required to

settle the present obligation at the end of the reporting period., 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.
Decommissioning liability
The Company records a provision for decommissioning costs for those operating lease
arrangements where the Company has a binding obligation at the end of the lease period
to restore the leased premises in a condition similar to that at the inception of lease.
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 recognised in the income
statement as a finance cost.
The estimated future costs of decommissioning are reviewed annually and adjusted as
appropriate. Changes in the estimated future costs are added to or deducted from the cost
of the asset.
o) Contingent liabilities
A contingent liability is a possible obligation that arises from past events whose existence
will be confirmed 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 is not
recognised because it is not probable that an outflow of resources embodying economic
benefits will be required to settle the obligation or the amount of the obligation cannot
be measured with sufficient reliability. Information on contingent liabilities is disclosed
in the notes to the standalone financial statements, unless the possibility of an outflow of
resources embodying economic benefits is remote.
p) Revenue recognition
Revenue is recognised to the extent that it is probable that the economic benefits will flow
93
to the Company and the revenue can be reliably measured. Revenue is measured at the fair
value of the consideration received/receivable net of discounts and other applicable taxes.
The Company assesses its revenue arrangements against specific criteria, i.e., whether it
has exposure to the significant risks and rewards associated with the sale of goods or the
rendering of services, in order to determine if it is acting as a principal or as an agent.
Service revenues
Revenue from services includes amount invoiced for fixed monthly charges, usage charges,
messaging services, internet services, bandwidth services, roaming charges, activation fees,
processing fees, connection fees and fees for value added services (VAS). Service revenues
also includes revenue associated with access and interconnection for usage of the telephone
network of other operators for local, domestic long distance and international calls.
Revenue from services are recognised when services are rendered and are stated net of
discounts and taxes. Prepaid revenue from Subscriber Identity Modules (SIMs) recharge
coupons of mobile, prepaid calling cards and prepaid internet connection cards are treated
as income of the year in which the payment is received since the extent of use of these
cards within the financial year cannot be ascertained.
Processing fees, activation fees and connection fees are recognised as income in the year
in which the payment is received.
Installation charges received from subscribers at the time of new connection are recognised
as income in the first year of the billing.
Un-billed revenues from the billing date to the end of the year are recorded as accrued
revenue during the period in which the services are provided.
In terms of the arrangement between Department of Telecommunications (‘DoT’) and the

Company, the charges for telecommunication services and other infrastructural services
provided by the Company to DoT are neither billed nor accounted for.
The claims receivable on account of provision of infrastructure, operation and maintenance

of Village Public Telephones (VPTs) and Rural Household Connections (RDELs) etc. and
operational sustainability of rural wire line network from Universal Service Obligation
(USO) fund are accounted for as other operating income.
Wherever there is uncertainty in realisation of income, such as claims on Government

departments and local authorities etc., these are recognised on realisation basis.
Construction contracts
Contract revenue includes the initial amount agreed in the contract plus any variations in
contract work, claims and incentive payments, to the extent that it is probable that they will
result in revenue and can be measured reliably.
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If the outcome of a construction contract can be estimated reliably, contract revenue is

recognised in profit or loss in proportion to the stage of completion of the contract. The
stage of completion is assessed by reference to surveys of work performed. Otherwise,
contract revenue is recognised only to the extent of contract costs incurred and centage that
are likely to be recoverable.
Contract costs are recognised as expenses as incurred unless they create an asset related
to future contract activity. An expected loss on a contract is recognised immediately in the
statement of profit or loss.
Equipment sales
Revenues from equipment sales are recognised when the significant risks and rewards of
ownership are transferred to the buyer.
Multiple element arrangements
In revenue arrangements including more than one deliverable, the arrangements are divided
into separate units of accounting. Deliverables are considered separate units of accounting
if the following two conditions are met:
a. the deliverable has value to the customer on a stand-alone basis; and
b. there is evidence of the fair value of the item.
Total consideration related to the multiple element arrangements is allocated among the
different components based on their relative fair values (i.e., ratio of the fair value of each
element to the aggregated fair value of the bundled deliverables).
Interest income
Interest income from debt instruments is recognised using the effective interest rate method.
The effective interest rate is the rate that exactly discounts estimated future cash receipts
through the expected life of the financial asset to the gross carrying amount of a financial
asset.
Other income by way of interest on loans to employees, security deposits with Government
departments and local authorities, being not material, are accounted for on collection basis.
Other income
Sale proceeds of scrap arising from maintenance and project works are recognised as other
non-operating income in the year of sale.
Liquidated damages received as compensation for loss of revenue arising as a consequence

of contract delays are recognised in the statement of profit and loss on accrual basis wherever
there is certainty of realisation. However, liquidated damages recovered in relation to
efficiency and as a result of delays by the supplier are deducted from the relevant cost.
95
In case liquidated damages are related to efficiency and performance of the asset:
Liquidated damages are reduced from the cost of the related asset or relevant expense.
In case liquidated damages linked to loss of revenue:
Liquidated damages are recognised as income if the contract specifies that liquidated
damages will be recoverable as compensation for loss of revenue arising from contract
delays, and the basis of calculation is clearly related to income lost.
q) Government grants
Government grants are recognised at their fair value where there is reasonable assurance
that the grant will be received and all attached conditions will be complied with.
Government grants relating to income are deferred and recognised in the statement of profit
and loss over the period necessary to match them with the costs that they are intended to
compensate and presented within other income.
Government grants relating to the purchase of property, plant and equipment are included
in other liabilities as deferred income and are credited to the statement of profit and loss
in proportion to the depreciation expense over the expected lives of the related property,
plant and equipment and presented within other income.
r) Leases
i. Determining whether an arrangement contains a lease
The determination of whether an arrangement is, or contains, a lease is based on the

substance of an arrangement at inception date: whether fulfillment of the arrangement is
dependent on the use of a specific asset or assets and the arrangement conveys a right to
use the asset, even if that right is not explicitly specified in an arrangement.
At inception or on reassessment of the arrangement that contains a lease, the payments and
other consideration required by such an arrangement are separated into those for the lease
and those for other elements on the basis of their relative fair values.
ii. Where the Company is the lessee
Leases in which a significant portion of the risks and rewards of ownership are not
transferred to the Company as lessee are classified as operating leases. Payments made
under operating leases (net of any incentives received from the lessor) are charged to the
statement of profit and loss on a straight-line basis over the period of the lease unless the
payments are structured to increase in line with expected general inflation to compensate
for the lessor’s expected inflationary cost increases.
Leases of property, plant and equipment where the Company, as lessee, has substantially
all the risks and rewards of ownership are classified as finance leases. Finance leases are
96

capitalised at the lease’s inception at the fair value of the leased property or, if lower, the
present value of the minimum lease payments. The corresponding rental obligations, net
of finance charges, are included in borrowings or other financial liabilities as appropriate.
Each lease payment is allocated between the liability and finance cost. The finance cost is
charged to the statement of profit and loss over the lease period so as to produce a constant
periodic rate of interest on the remaining balance of the liability for each period.
Leased assets are depreciated on WDV method over the useful life of the asset. However,
if there is no reasonable certainty that the company will obtain ownership by the end of
the lease term, the asset is depreciated on WDV method over the shorter of the estimated
useful life of the asset or the lease term.
iii. Where the Company is the lessor
Leases in which the Company does not transfer substantially all the risks and rewards
incidental to ownership of the asset are classified as operating leases. Lease income from
operating leases where the Company is a lessor is recognised in income on a straight-line
basis over the lease term unless the receipts are structured to increase in line with expected
general inflation to compensate for the expected inflationary cost increases. The respective
leased assets are included in the Balance Sheet based on their nature.
s) Borrowing costs
Borrowing costs include interest and other costs incurred in connection with the borrowing
of funds.
Borrowing costs (for general and specific borrowings) directly attributable to acquisition
or construction of an asset which necessarily take a substantial period of time (qualifying
assets) to get ready for their intended use are capitalised as part of the cost of that asset. Other
borrowing costs are recognised as an expense in the period in which they are incurred.
Investment income earned on the temporary investment of specific borrowings pending
their expenditure on qualifying assets is deducted from the borrowing costs eligible for
capitalisation.
t) Income tax
Income tax expense comprises current and deferred tax. It is recognised in statement of
profit and loss, except to the extent that it relates to items recognised directly in equity or
in other comprehensive income.
Current tax
Current tax comprises the expected tax payable or receivable on the taxable income or
loss for the year and any adjustment to the tax payable or receivable in respect of previous
years. The amount of current tax reflects the best estimate of the tax amount expected to
be paid or received after considering the uncertainty, if any, related to income taxes. It is
97
measured using tax rates (and tax laws) enacted or substantively enacted by the reporting
date.
Current tax assets and current tax liabilities are offset only if there is a legally enforceable
right to set off the recognised amounts, and it is intended to realise the asset and settle the
liability on a net basis or simultaneously.
Deferred tax
Deferred tax is recognised in respect of temporary differences between the carrying amounts
of assets and liabilities for financial reporting purposes and the amounts used for taxation
purposes.
Deferred tax is recognised in the statement of profit and loss, except to the extent that it
relates to items recognised in other comprehensive income or directly in equity. In this case,
the tax is also recognised in other comprehensive income or directly in equity, respectively.
Deferred tax assets are recognised for unused tax losses, unused tax credits and deductible
temporary differences to the extent that is it probable that future taxable profits will be
available against which they can be used. Future taxable profits are determined based on
reversal of temporary differences. Deferred tax assets are reviewed at each reporting date
and are reduced to the extent that it is no longer probable that the related tax benefit will be
realised; such reductions are reversed when the probability of future taxable profits improves.
Unrecognised deferred tax assets are reassessed at each reporting date and recognised to
the extent that it has become probable that future taxable profits will be available against
which they can be used.
Deferred tax is measured at the tax rates that are expected to apply to the period when
the asset is realised or the liability is settled, based on the laws that have been enacted or
substantively enacted by the reporting date.
The measurement of deferred tax reflects the tax consequences that would follow from
the manner in which the Company expects, at the reporting date, to recover or settle the
carrying amount of its assets and liabilities.
Deferred tax assets and liabilities are offset if there is a legally enforceable right to offset
current tax liabilities and assets, and they relate to income taxes levied by the same tax
authority, but they intend to settle current tax liabilities and assets on a net basis or their tax
assets and liabilities will be realised simultaneously.
Minimum Alternative Tax (‘MAT’) expense under the provisions of the Income-tax Act,
1961 is recognised as an asset when it is probable that future economic benefit associated
with it in the form of adjustment of future income tax liability, will flow to the Company
and the asset can be measured reliably. MAT credit entitlement is set off to the extent
allowed in the year in which the Company becomes liable to pay income taxes at the
enacted tax rates. MAT credit entitlement is reviewed at each reporting date and is written
98

down to reflect the amount that is reasonably certain to be set off in future years against the
future income tax liability.
u) Earnings per share
The Company presents basic and diluted earnings/ (loss) per share (EPS) data for its
equity shares. Basic EPS is calculated by dividing the profit or loss attributable to equity
shareholders of the Company by the weighted average number of equity shares outstanding
during the year.
Diluted EPS amounts are calculated by dividing the profit attributable to equity holders of
the parent (after adjusting for interest on the convertible preference shares) by the weighted
average number of equity shares outstanding during the year plus the weighted average
number of equity shares that would be issued on conversion of all the dilutive potential
equity shares into equity shares.
v) Prior period items
Items of income or expenditure exceeding INR 5,00,000 are considered for being treated
as prior period items.
w) Segment reporting
Information reported to the Board of Directors who are considered as the Chief Operating
Decision Maker (CODM) for the purposes of resource allocation and assessment of
segment performance focuses on the types of services provided. The Board of Directors of
the Company have chosen to organise the Company around the different services being
provided. Operating segments have been aggregated based on similar risks and rewards
and on fulfilment of other aggregation criteria.
CODM has identified primary segments which comprise of ‘Basic’, ‘Cellular’, ‘Broad Band’
and ‘Enterprise’ services. The manufacturing activities have not been treated as a separate
segment since such activities are essentially carried on as support services to other segments
mainly for captive consumption.
The following specific accounting policies have been followed for segment reporting:
i. Segment revenue includes service income and other income directly identifiable
with/ allocable to the segment.
ii. Income/expense, which relates to the Company, as a whole and not allocable
to individual business segments is included in “Un-allocable income/expense
respectively”.
iii. Expenses that are directly identifiable with/allocable to segments are considered for
determining segment results.
iv. Segment assets and liabilities include those directly identifiable with the respective
segments. Un-allocable corporate assets and liabilities represent the assets and
99
liabilities that relate to the Company as a whole and not allocable to any segment.
x) Recent accounting pronouncements
Ind AS 115, ‘Revenue from contract with customers’:

On 28 March 2018, Ministry of Corporate Affairs (“MCA”) has notified Ind AS 115,
‘Revenue from Contracts with Customers’. The core principle of the new standard is that
an entity should recognize revenue to depict the transfer of promised goods or services
to customers in an amount that reflects the consideration to which the entity expects to
be entitled in exchange for those goods or services. Further the new standard requires
enhanced disclosures about the nature, amount, timing and uncertainty of revenue and
cash flows arising from the entity’s contracts with customers.
The standard permits two possible methods of transition:
• Retrospective approach - Under this approach the standard will be applied
retrospectively to each prior reporting period presented in accordance with Ind AS 8.
‘Accounting Policies, Changes in Accounting Estimates and Errors’.
• Retrospectively with cumulative effect of initially applying the standard recognized
at the date of initial application (Cumulative catch - up approach).
The effective date for adoption of Ind AS 115 is financial periods beginning on or after 1
April 2018.
The Company will adopt the standard on 1 April 2018 by using the cumulative catch-up
transition method and accordingly comparatives for the year ending or ended 31 March
2018 will not be retrospectively adjusted. The Company is currently assessing the impact
of this amendment.
Appendix B to Ind AS 21- Foreign currency transactions and advance consideration:
On 28 March 2018, MCA has notified the Companies (Indian Accounting Standards)
Amendment Rules, 2018 containing Appendix B to Ind AS 21, Foreign currency transactions
and advance consideration which clarifies the date of the transaction for the purpose of
determining the exchange rate to use on initial recognition of the related asset, expense or
income, when an entity has received or paid advance consideration in a foreign currency.
The amendment will come into force from 1 April 2018. The Company has evaluated the
effect of this on the standalone financial statements and the impact is not considered to be
material.
100
3. Property, plant and equipment
(i) Tangible assets
Gross block Accumulated depreciation Net block

Particulars As at Disposals/ As at As at Disposals/ As at As at As at
Additions Additions
1st April 2017 adjustments 31st March 2018 1st April 2017 adjustments 31st March 2018 31st March 2018 31st March 2017
Free hold land 7,078,859 8,096 5,874 7,081,081 - - - - 7,081,081 7,078,859
Lease hold land 17,104 4 - 17,108 4,202 198 - 4,400 12,708 12,902
Buildings 801,156 4,463 1,822 803,797 408,321 19,942 525 427,738 376,059 392,835
Apparatus and plants 6,676,172 296,071 200,632 6,771,611 5,393,112 289,396 176,276 5,506,232 1,265,379 1,283,060
Motor vehicles and launches 12,267 1,087 911 12,443 10,957 353 861 10,449 1,994 1,310
101
“Cables and lines and wires- 6,582,915 124,801 14,773 6,692,943 5,705,297 139,521 12,314 5,832,504 860,439 877,618
telecom ducts, cables and optical
fibre”
“General plant and machinery- 499,443 8,207 11,068 496,582 450,505 6,724 10,700 446,529 50,053 48,938
other than continuous process
plant”
Towers and satellites 677,123 19,128 9,872 686,379 475,104 33,723 4,962 503,865 182,514 202,019
Office machinery and equipment 18,338 1,030 507 18,861 17,106 440 470 17,076 1,785 1,232

Electrical fittings 531,356 22,350 7,815 545,891 450,632 23,342 7,922 466,052 79,839 80,724
Furniture and fixtures 23,819 277 313 23,783 21,979 362 302 22,039 1,744 1,840
Computer-end user devices 146,286 3,667 5,300 144,653 137,328 2,937 4,806 135,459 9,194 8,958
Computer-servers and networks 45,997 6,428 564 51,861 40,861 2,690 263 43,288 8,573 5,136
Decommissioned assets 88,572 - 88,572 - - - - - - 88,572
Total 23,199,407 495,609 348,023 23,346,993 13,115,404 519,628 219,401 13,415,631 9,931,362 10,084,003
Less: Provision for decommissioned assets - 68,307
9,931,362 10,015,696

Particulars
As at Disposals/ As at As at Disposals/ As at As at 31st As at 31st
Additions Additions
1st April 2016 adjustments 31st March 2017 1st April 2016 adjustments 31st March 2017 March 2017 March 2016
Free hold land 7,078,662 504 307 7,078,859 - - - - 7,078,859 7,078,662
Lease hold land 17,151 162 209 17,104 4,023 2,134 1,955 4,202 12,902 13,128
Buildings 798,247 3,750 841 801,156 387,185 35,714 14,578 408,321 392,835 411,062
Motor vehicles and 12,436 2,670 2,839 12,267 11,546 1,466 2,055 10,957 1,310 890
launches
“Cables and lines and 6,510,078 95,648 22,811 6,582,915 5,571,612 139,567 5,882 5,705,297 877,618 938,466
wires-telecom ducts,
cables and optical fibre”
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“General plant and 512,621 8,225 21,403 499,443 463,130 13,463 26,088 450,505 48,938 49,491
machinery- other than
continuous process
plant”
Towers and satellites 637,364 43,076 3,317 677,123 436,811 34,784 (3,509) 475,104 202,019 200,553
Office machinery and 18,395 373 430 18,338 17,251 2,772 2,917 17,106 1,232 1,144
equipment
Computer-end user 148,522 3,072 5,308 146,286 139,584 2,744 5,000 137,328 8,958 8,938
devices
Computer-servers and 43,865 2,075 (57) 45,997 38,862 2,057 58 40,861 5,136 5,003
networks
Decommissioned assets 95,501 - 6,929 88,572 - - - - 88,572 95,501
Total 22,873,876 554,203 228,672 23,199,407 12,715,552 569,762 169,910 13,115,404 10,084,003 10,158,324
Less: Provision for decommissioned assets 68,307 76,582
10,015,696 10,081,742

(ii) Capital work-in-progress
“As at “As at
Additions Disposals/
Particulars 1st April 31st March
during the year adjustments
2017” 2018”
Capital work-in-progress 240,225 324,142 316,405 247,962
Capital work-in-progress in store 436,506 888,222 671,804 652,924
Less: Provision for capital work-in-progress 2,833 5,742 821 7,754
Provision for capital work-in-progress in 24,663 8,346 10,261 22,748
store
Total 649,235 1,198,276 977,127 870,384
“As at Additions “As at

Disposals/
Particulars 1st April during 31st March
adjustments
2016” the year 2017”
Capital work-in-progress 310,090 - 69,865 240,225
Capital work-in-progress in store 389,571 46,935 - 436,506
Less: Provision for capital work-in- 3,417 - 584 2,833
progress
Less: Provision for capital work-in- 29,197 - 4,534 24,663
progress in store
Total 667,047 46,935 64,747 649,235
Notes:
a) In some cases, the title deeds of land purchased/acquired on leasehold/freehold from various authorities, are
in the process of being executed.
b) Leasehold land disclosed is based on the identification by forty three circles (31 March 2017: thirty four
circles).
c) Additions to property, plant and equipment include assets identified and taken over/(written back) by the
Company in the current year, pertaining to the assets being taken over from DoT as on 1 October 2000 INR
Nil (31 March 2017: INR (159) lakh) [refer note 38].
d) Additions in gross block include INR 92,481 lakh (31 March 2017: INR 63,914 lakh) of employee remuneration
and directly attributable administrative expenses capitalised during the year.
e) The current year depreciation charged to statement of profit and loss excludes INR 177 lakh (31 March 2017:
INR 244 lakh) which has been capitalised into the cost of assets under construction.
f) For details of assets pledged/ hypothecated as securities, refer note 23.
g) Physical verification of capital work-in-progress in store has been conducted by the management [except six
circles (31 March 2017: four circles)] during the year and is reconciled with the detailed records for capital
work-in-progress in store. Wherever differences are found, the same are provided for. Further, in Nil circles
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(31st March 2017: five circles) difference between the subsidiary ledger and the general ledger is identified
and provided for in the current financial year.
h) Refer to note 49 for disclosure of contractual commitments for the acquisition of property, plant and
equipment.
i) On transition to Ind AS, the Company has elected to measure certain items of its property, plant and equipment
as at 1st April 2015 (date of transition to Ind AS) at its fair value and use that fair value as its cost at that date.
Accordingly, the Company has elected to selectively fair value its freehold land. Hence, an increase of INR
6,986,449lakhwasrecognised withacorresponding increase inretained earnings atthedateoftransition to Ind AS.
All other remaining property, plant and equipment are carried at cost which is recomputed retrospectively as
per principles of Indian Accounting Standard 16 (Property, plant and equipment).”
j) The capitalisation rate used to determine the amount of borrowing costs to be capitalised is the weighted
average interest rate applicable to the Company’s general borrowings during the year, in this case 8.25% (31
March 2017: 8.40%). Accordingly, the Company has capitalised borrowing cost during the year ended 31
March 2018 amounting to INR 57,873 lakh ( 31st March 2017: INR 48,977 lakh).
k) The Company has acquired certain leasehold lands under finance lease arrangements on lease terms for 30
to 99 years. The gross and net carrying amounts of leasehold land acquired under finance lease and included
in above are as follows:
As at 31st March 2018 As at 31st March 2017

Gross block 17,108 17,104
Accumulated depreciation 4,400 4,202
Net block 12,708 12,902
l) During the current year, the Company has changed the presentation for decommissioned assets and accordingly has
reclassified the net carrying value of decommissioned assets from ‘Property, plant and equipment’ to ‘Assets held for sale’.
Further, the Company has carried out an internal assessment due to which certain reusable assets have been reclassified
from ‘Assets held for sale’ to ‘Property, plant and equipment’. The impact of the depreciation for the future years is
impracticable to ascertain on the assets reclassified as property, plant and equipment (refer note 20).”
104
4. Intangible assets
Gross block Accumulated amortisation Net block
Particulars As at Disposals/ As at As at Disposals/ As at As at

As at 31st
1st April Additions 31st March 1st April Additions 31st March 31st March
adjustment adjustment March 2018
2017 2018 2017 2018 2017
Intangible assets
Entry license fees 846,261 - - 846,261 118,078 59,062 - 177,140 669,121 728,183
Computer softwares 35,981 6,593 567 42,007 9,160 4,803 65 13,898 28,109 26,821
Total 882,242 6,593 567 888,268 127,238 63,865 65 191,038 697,230 755,004
Gross block Accumulated amortisation Net block
Particulars As at Disposals/ As at As at Disposals/ As at As at As at

105
1st April Additions adjustments 31st March 1st April Additions adjustments 31st March 31st March 31st March
2016” 2017 2016 2017 2017 2016
Intangible assets
Computer softwares 24,343 12,453 815 35,981 4,942 4,218 - 9,160 26,821 19,401
Total 870,604 12,453 815 882,242 63,958 63,280 - 127,238 755,004 806,646
Notes:

a) On transition to Ind AS, the Company has elected to continue with the carrying value for all of intangible assets as at 1st April 2015 measured as per the Previous GAAP
and use that carrying value as the deemed cost of intangible assets.
5. Investment in subsidiary
As at As at
Particulars
st
st
31 March 2018 31 March 2017
Investment in equity instruments of subsidiary at cost

Unquoted equity instruments
BSNL Tower Corporation Limited
1,700 (31 March 2017: Nil) equity shares of face value of INR 10 * -
each #
- -
Aggregate book value of unquoted investment * -
# Held by eight nominees on behalf of Bharat Sanchar Nigam Limited
* The absolute value is INR 17,000 only.
6. Non-current financial assets - Investment
As at As at
Particulars
Investment at fair value through profit and loss (FVTPL)
Unquoted investment
1 (31 March 2017: 1) equity share of INR 10 each
fully paid up of Bharat Broadband Nigam Limited ** **
- -
Aggregate book value of unquoted investment ** **
** The absolute value is INR 10 only.
7. Non-current financial assets - Loans
As at As at
Particulars
Secured, considered good
Loans to employees (refer note below) 578 844
Unsecured, considered good
Loans to employees 5 26
583 870
Note : Assets (eg- house, vehicle, etc) are hypothecated against the loans to employees.
106

8. Other non-current financial assets
As at As at
Particulars st st
31 March 2018 31 March 2017
Security deposits 22,718 27,805
Call detail record based claims recoverable 486 153
Earmarked deposits with banks (including bank guarantee, 825 827

margin money, etc) (refer note below)
24,029 28,785
Note : These earmarked deposits are for the purpose of securing various bank guarantees provided by the banks.
9. Deferred tax assets (net)
As at As at
Particulars
Deferred tax assets
Loss allowance for trade receivables 89,629 108,598
Loss allowance for other assets 60,194 62,047
Carry forward tax losses including unabsorbed depreciation 1,155,509 1,011,639
Provision for compensated absences - 297
Provision for half pay leaves 1,631 1,551
Provision for gratuity 2,902 728
Provision for decommissioned assets 10,785 21,107
Provision for obsolete inventory and capital work-in-progress 6,496 8,856
Disallowances under Section 43B of Income Tax Act, 1961 7,741 11,687
1,334,887 1,226,510
Deferred tax liabilities
Difference in book written down value and tax written down 195,211 207,049
value of property, plant and equipment
195,211 207,049
Net deferred tax assets 1,139,676 1,019,461
Net deferred tax assets recognised - -
In the absence of reasonable certainty of future taxable profits, the Company has not recognised deferred tax
assets (net) for the above periods (Refer note 51).
107
10. Other non-current assets
As at As at
Particulars
st
st
31 March 2018 31 March 2017
Capital advances [Net of provisions INR 23,972 lakh 55,481 59,128
(31 March 2017: INR 23,972 lakh)]
Advances to contractors 29,703 6,294
85,184 65,422
11. Inventories
*For further details, refer note 3 (ii).
12. Current financial assets - Investment
As at As at
Particulars st st
31 March 2018 31 March 2017
Investment at fair value through profit and loss
Unquoted investment
20,000,000 (31 March 2017: 20,000,000)
7% redeemable cumulative preference shares of INR 100 each
fully paid in Indian Telephone Industries (ITI) Limited 20,000 20,000
(A Government of India owned Company) [refer note below]
20,000 20,000
Aggregate book value of unquoted investment 20,000 20,000
Note : All the five installments of INR 4,000 lakh each are overdue for redemption of 7% redeemable cumulative
preference shares in respect of investment in ITI Limited at the end of the year and no dividend has been received
till date. ITI Limited will redeem preference shares to the Company immediately on release of financial assistance
by the Government of India to ITI Limited as a part of revival package. Accordingly, the Company believes that
the fair value of the investment is equal to the book value.
108

13. Current financial assets - Trade receivables
As at As at
Particulars st st
31 March 2018 31 March 2017
Trade receivables 817,891 809,762
Less : Advance income booked but not collected 131,179 148,430
686,712 661,332
Less : Loss allowance for trade receivables 294,174 351,451
392,538 309,881
The Company’s exposure to credit and currency risks are disclosed in Note 52.
Note :
(a) In twenty circles (31 March 2017: seven circles), there are differences in the closing balance of trade receivables
between the subsidiary ledger and the general ledger. To the extent identified, the net differences between
general ledger balances and subsidiary ledger balances are INR 9,783 lakh (31 March 2017: INR 1,678 lakh).
The management is in the process of reconciling these differences.
(b) The classification of the trade receivables as secured and unsecured/considered good, to the extent available
as per subsidiary ledger is as follows:
Unsecured, considered good 522,474 457,685

Doubtful 285,634 350,399
808,108 808,084
14. Cash and cash equivalents
As at As at
Particulars st st
31 March 2018 31 March 2017
Balances with banks
In current account including sweep-in-deposit 70,949 270,104
Deposits with original maturity of less than three months - 63,300
Cheques on hand 2,428 2,182
Cash on hand 2,405 3,151
75,782 338,737
For the purpose of statement of cash flows, Cash and cash equivalents comprise of the following:
Cash and cash equivalents as per balance sheet 75,782 338,737

Bank overdraft (refer note 27) (30,910) (59,613)
44,872 279,124
109
Note :
(a) In thirty five circles (31 March 2017: eight circles), unlinked credit items and in thirty five circles (31 March
2017: six circles) unlinked debit items are appearing in the bank reconciliation statement as at 31 March 2018.
Out of these thirty five circles have identified unlinked credit items amounting to INR 362 lakh (31 March
2017: INR 548 lakh) and thirty five circles have identified unlinked debit items amounting to INR 646 lakh (31
March 2017: INR 333 lakh). The management is in the process of reconciling all such items in due course.
(b) Bank balances in thirteen circles (31 March 2017: one circle) includes cheques on hand pending to be
deposited in bank as at 31 March 2018.
15. Bank balances other than cash and cash equivalents
* These earmarked deposits are for the purpose of securing various bank guarantees provided by the banks.
16. Current financial assets - Loans
Note :
(a) In three circles (31 March 2017: one circle), it has been noticed that there are differences in the subsidiary
ledger of loans with those appearing in general ledger. The management is in the process of reconciling these
differences.
(b) Assets (eg- house, vehicle, etc) are hypothecated against the loans to employees.
110

17. Other current financial assets
As at As at
Particulars st st
31 March 2018 31 March 2017
Amount due from customers for construction contracts, others 32,926 22,705
Accrued revenue 108,419 116,947
Amount recoverable from DoT
For employees on deputation 1,812 1,891
For defense telecom network project (net) - 31,017
Other recoverable (refer note 42) 243,013 220,052
Amount recoverable from Bharat Broadband Nigam Limited (net) 53,442 -
Amount recoverable from
Government departments 3,350 3,352
Government companies (refer note (a) below) 242,484 171,081
Claims recoverable from others 85,231 31,498
Sales tax recoverable from customers 9 8
Service tax recoverable from customers 64,989 106,014
Goods and service tax (GST) recoverable from customers 45,292 -
Interest accrued
- on bank deposits 335 406
- on loans 58 60
- other 6 10
Call detail record based claims recoverable 23,889 8,654
Doubtful
Government companies 192,930 200,800
1,113,143 923,012
Less: Loss allowance for assets 192,930 200,800
920,213 722,212
Note :
(a) Includes claim recoverable from LIC amounting to INR 68,500 lakh (31 March 2017: INR Nil) on account of
leave encashment directly paid by the Company to the employees during the year ended 31 March 2018.
18. Current tax assets (net)
As at As at
Particulars st st
31 March 2018 31 March 2017
Advance income-tax (refer note (a) below) 119,650 32,771
[Net of provision for income tax INR 168,19 lakh (31st March
2017: INR 717,196 lakh)]
111
As at As at
Particulars
Advance fringe benefit tax - 5,898
119,650 38,669
Note :
(a) Pursuant to the decisions of the Appellate Authorities and the interpretations of other relevant provisions, the
Company has updated the provision for income tax. This has led to reduction of provision for income tax
related to earlier years by INR 80,249 lakh. This change in estimation of uncertain tax positions may also have
an impact on future current tax expense, the amount of which is impracticable to determine.
19. Other current assets
As at As at
Particulars
Prepaid expenses 4,238 1,781
Balances with excise and other tax authorities (refer note (b) below) 56,712 65,706
Advances to contractors 15,747 67,207
Advances to employees 2,091 3,577
Other advances 1 14
Intra/inter circle remittances 7,919 -
86,708 138,285
Note :
(a) Cenvat on account of service tax, excise duty and custom duty on capital goods and inputs is under reconciliation
in some circles.
(b) Includes INR 1,517 lakh deposited on account of service tax audit.
(c) Refer note 46 for details of advances to related parties.
20. Assets held for sale
As at As at
Particulars
Property, plant and equipment held for sale 69,085 -
Less: Provision for dimunition in the value of assets held for sale (34,568) -
34,517 -
Note : Assets held for sale includes various classes of property, plant and equipment which are retired from active
use and are held for the purpose of immediate sale. The Company intends to sell these assets through Metals and
Minerals Trading Corporation (MMTC), etc. as per defined procedures. The Company recognizes assets held for
sale at the lower of carrying amount and net realisable value, accordingly the gain or loss on the assets held for
sale is recorded in ‘Excess liabilities written back no longer required’ under ‘Other income’ (refer note 33) and
‘Write off and losses (other than bad debts)’ under ‘Other expenses’ (refer note 37) respectively. These assets are
included under respective segments under note 45 (also refer note 3(l)).
112

21. Share capital
Number of shares Amount

Authorised
i. Equity shares of INR 10 each
Outstanding as at 1 April 2016 10,000,000,000 1,000,000
Increase during the year - -
Outstanding as at 31 March 2017 10,000,000,000 1,000,000
ii. 9% non-cumulative preference shares of INR 10 each *
Outstanding as at 1 April 2016 7,500,000,000 750,000
Outstanding as at 31 March 2017 7,500,000,000 750,000
Outstanding at the 31 March 2018 7,500,000,000 750,000
* Refer note 23

Number of shares Amount Number of shares Amount
Issued, subscribed and fully paid up
Equity shares of INR 10 each 5,000,000,000 500,000 5,000,000,000 500,000
5,000,000,000 500,000 5,000,000,000 500,000
a. Terms and rights attached to equity shares
The Company has only one class of shares referred to as equity shares each having a par value of INR 10 per
share.
Vote of members: Every member present on person and being a holder of equity share shall have one vote
and every person either as a general proxy on behalf of a holder of equity share, shall have one vote or upon
a poll, every member shall have one vote for every share held by him. On poll, the voting rights of holder of
equity share shall be as specified in Section 47 of the Companies Act, 2013.
b. Reconciliation of number of shares outstanding at the beginning and at the end of the year :

Outstanding at the 1 April 2016 5,000,000,000 500,000
Equity shares issued during the year in consideration for cash - -
113

c. Shareholders holding more than 5% shares in the company *

Number of shares Percentage Number of shares Percentage
President of India 4,999,999,993 99.99% 4,999,999,993 99.99%
* The above information is furnished as per the shareholder’s register as at the year end.
d. No shares have been issued for consideration other than cash pursuant to contract or allotted as fully paid
bonus shares in the current reporting year and in the last five years immediately preceding the current reporting
year. Further, there are no buy backs of any class of shares during the current reporting year and in the last five
years immediately preceding the current reporting year.
e. Division of profit : The profit of the Company, subject to any special rights relating thereto created or authorised
to be created by the articles subject to the provisions of the articles and also subject to the provisions of
Section 123 of the Companies Act, 2013 and, regarding transfer of the amount to reserve of the Company,
shall be divisible among the members with the approval of the President of India, in the proportion of the
amount of capital paid or credited as paid-up on the shares held by them respectively.
22. Other equity
As at As at
st st
31 March 2018 31 March 2017
a. Capital reserve
Balance at the beginning of the year 4,021,118 4,021,118
Add: Addition/ deletion during the year - -
Balance at the end of the year 4,021,118 4,021,118
b. General reserve
Balance at the beginning of the year 490,075 290,075
Add: Contingency reserve transferred to general reserve - 200,000
Balance at the end of the year 490,075 490,075
c. Contingency reserve
Balance at the beginning of the year - 200,000
Additions during the year - -
Less: Contingency reserve transferred to general reserve - (200,000)
Balance at the end of the year - -
114

As at As at
st st
31 March 2018 31 March 2017
d. Retained earnings
Balance at the beginning of the year 4,657,913 5,136,517
Add: Loss for the year (799,285) (479,321)
Items of other comprehensive income/ (expense) recognised
directly in retained earnings
Remeasurement of post employment benefit obligation, net of tax (897) 717
Balance at the end of the year 3,857,731 4,657,913
e. Capital contribution from shareholder
Add: Addition/ deletion during the year - -
Total other equity 8,467,242 9,267,424
Nature and purpose of reserve
i. Capital reserve
The capital reserve is created out of the difference between the total value of the assets taken over and the
long term identified liabilities and the capital structure, as on 1 October 2000 as communicated by DoT. For
details, refer note 38.
ii. General reserve
Under the erstwhile Companies Act 1956, a general reserve was created through an annual transfer of net
profit at a specified percentage in accordance with applicable regulations.
iii. Contingency reserve
The contingency reserve was created in the financial year 2003-04 by appropriation of profits to meet various
contingencies that may arise in future, based on the decision made by the board of directors.
iv. Capital contribution from shareholder
During the year ended 31 March 2015, the loan from the Government of India amounting to INR 98,318
lakhs was waived off vide letter no.1-43/2008-B, dated 11 April 2014 and the same was taken to the capital
reserve created at the time of formation of the Company.
115
23. Non-current financial liabilities - Borrowings
As at As at
Particulars st st
31 March 2018 31 March 2017
Secured loans
Term loans from banks (refer note A below) 945,216 321,657
Less: Current maturities of non current borrowings (40,868) (9,000)
904,348 312,657
7,500,000,000 (31st March 2017: 7,500,000,000) 750,000 750,000
9% non-cumulative preference shares of INR 10 each
(refer note B below)
1,654,348 1,062,657
Refer note 46 for details of loans from related parties
Information about Company’s exposure to interest rate and liquidity risks is included in Note 52.
A. Terms and repayment schedule of secured loans

(i) The term loans from the Union Bank of India, carry interest rate ranging from 8.00% p.a. to 8.50% p.a.
with quarterly rests, are repayable in quarterly instalments which would commence after 2 years from the
date of receipt of the first disbursement i.e. 31 st March 2017 and 30 September 2017 respectively. The
aforementioned term loans are secured by pari-passu charge on all property, plant and equipment of the
Company other than land and building (both present and future). Outstanding amount as at 31 st March
2018 is INR 27,011 lakh and INR 201,488 lakh respectively (31 st March 2017: INR 35,600 lakh and INR
Nil respectively).
(ii) The term loan from the United Bank of India, carries interest rate ranging from 8.20% p.a. to 8.45% p.a.
with quarterly rests, is repayable in quarterly instalments which would commence after 2 years from the
date of receipt of the first disbursement i.e. 31st March 2017. The aforementioned term loan is secured by
pari-passu charge on all property, plant and equipment of the Company other than land and building (both
present and future). Outstanding amount as at 31st March 2018 is INR 63,968 lakh (31st March 2017: INR
69,984 lakh).
(iii) The term loan from the State Bank of India, carries interest rate ranging from 8.25% p.a. to 8.40% p.a. with
yearly rests, is repayable in quarterly instalments which would commence after 2 years from the date of
receipt of the first disbursement i.e. 31st March 2017. The aforementioned term loan is secured by pari-
passu charge on all property, plant and equipment of the Company other than land and building (both
present and future). Outstanding amount as at 31st March 2018 is INR 245,611 lakh (31st March 2017:
INR 33,095 lakh).
(iv) The term loans from the Punjab National Bank, carry interest rate ranging from 8.00% p.a. to 8.45% p.a.
with quarterly rests, are repayable in quarterly instalments which would commence after 2 years from the
date of receipt of the first disbursement i.e. 31st December 2015 and 31st March 2017 respectively. The
aforementioned term loana are secured by pari-passu charge on all property, plant and equipment of the
116

Company other than land and building (both present and future). Outstanding amount as at 31st March
16,500 lakh respectively).
(v) The term loans from the Jammu and Kashmir Bank, carry interest rate ranging from 8.05% p.a. to 8.50%
p.a. with quarterly rests, are repayable in quarterly instalments which would commence after 2 years from
the date of receipt of the first disbursement i.e. 31st December 2015 and 31st March 2017 respectively.
The aforementioned term loans are secured by pari-passu charge on all property, plant and equipment of
the Company other than land and building (both present and future). Outstanding amount as at 31st March
16,500 lakh respectively).
(vi) The term loan from the Canara Bank, carries interest rate ranging from 8.10% p.a. to 8.35% p.a. with
quarterly rests, is repayable in quarterly instalments which would commence after 2 years from the date of
receipt of the first disbursement i.e. 30 June 2017. The aforementioned term loan is secured by pari-passu
charge on all property, plant and equipment of the Company other than land and building (both present
and future). Outstanding amount as at 31st March 2018 is INR 99,996 lakh (31st March 2017: INR Nil).
(vii) The term loan from the Bank of Baroda, carries interest rate of 8.30% p.a. with yearly rests, is repayable in
quarterly instalments which would commence after 2 years from the date of receipt of the first disbursement
i.e. 31st March 2018. The aforementioned term loan is secured by pari-passu charge on all property, plant
and equipment of the Company other than land and building (both present and future). Outstanding amount
as at 31st March 2018 is INR 16,162 lakh (31st March 2017: INR Nil).
B. 9% non-cumulative preference shares
During the financial year 2000-01, 7,500,000,000 preference shares were issued to Central Government of
India as fully paid with a par value of INR 10 per share. The preference shares are mandatorily redeemable
at par after twenty years from the date of issue of such shares and the Company is obliged to pay holders of
these shares dividends at the rate of 9% of the par amount per annum, subject to availability of distributable
profits.
Vote of members: The holder of preference share have a right to vote on resolution placed before the
Company which directly affects the rights attached to their preference shares and subject to aforesaid, the
holders of preference shares shall in respect of such capital be entitled to vote on every resolution placed
before the Company at a meeting if the dividend due on such capital or any part of such dividend remains
unpaid in respect of an aggregate period of not less than two years preceding the date of commencement
of the meeting and where the holders of any preference shares have a right to vote as aforesaid on any
resolution every such member personally present shall have one vote and on a poll his voting right in
respect of such preference share bears to the total paid up equity capital of the Company.
117
24. Other non-current financial liabilities
As at As at
Particulars st st
31 March 2018 31 March 2017
Deposits from customers and others
181,781 138,770
The Company’s exposure to liquidity risks related to above financial liabilities is disclosed in Note 52.
25. Non-current provisions
As at As at
Particulars st st
31 March 2018 31 March 2017
Provision for employee benefits
Gratuity (refer note 40) 9,248 2,338
Compensated absences (refer note 40) - 889
Half pay leaves (refer note 40) 4,435 4,624
Decommissioning liabilities 77,521 87,248
91,204 95,099
26. Other non-current liabilities
As at As at
Particulars
Deferred government grant 65,097 102,842
65,097 102,842
Note :
(a) Since financial year 2005-06, an amount of INR 61,437 lakh (INR 17,000 lakh for wireline and INR 44,437
lakh for wireless services) has been received from Department of Information Technology (DIT) for providing
wireline and wireless connectivity to 41,500 common service centres.
(b) During the current and the previous financial years, the Company has received grants related to Left Wing
Extremist (LWE) project for construction of property, plant and equipment.
27. Current financial liabilities - Borrowings
As at As at
Particulars st st
31 March 2018 31 March 2017
Loan repayable on demand
Unsecured loan
Bank overdraft 30,910 59,613
30,910 59,613
118

Information about Company’s exposure to interest rate and liquidity risks is included in Note 52.
28. Current financial liabilities - Trade payables
As at As at
Particulars
Total outstanding dues of Micro, small and medium 3,055 458
enterprises (refer note (a) below)
Total outstanding dues other than Micro, small and medium
enterprises:
Others 661,588 466,088
Claims payable to Mahanagar Telephone Nigam Limited 110,990 111,872
(MTNL) (refer note (b) below)
Claims payable on interconnection usage charges (IUC) 7,356 14,575
782,989 592,993
The Company’s exposure to currency and liquidity risks related to trade payable is disclosed in Note 52.
Note:
(a) Twenty nine circles (31 March 2017: forty eight circles) of the Company have identified Micro, Small and
Medium Enterprises under the Micro, Small and Medium Enterprises Development Act, 2006 (MSMED Act).
The required information in terms of section 22 of MSMED Act to the extent available in respect of twenty
nine circles (31 March 2017: thirty two circles) are given below :
As at As at
Particulars st st
31 March 2018 31 March 2017
Principal amount remaining unpaid to any supplier as at the end of the 3,055 458
accounting year
Interest due thereon remaining unpaid to any supplier as at the end of Nil Nil
the accounting year
The amount of interest paid in terms of Section 16 of Micro, Small, Nil Nil
Medium Enterprises Development Act, 2006 along with the amounts of
the payment made to the supplier beyond the appointed day
The amount of interest due and payable for the period of delay (which Nil Nil
have been paid but beyond the appointed during the year) but without
adding the interest specified under Micro, Small, Medium Enterprises
Development Act, 2006
The amount of interest accrued and remaining unpaid at the end of the Nil Nil
accounting year
119
As at As at
Particulars st st
31 March 2018 31 March 2017
The amount of further interest due and payable even in the succeeding Nil Nil
year, until such date when the interest dues as above are actually paid
to small enterprise, for the purpose of disallowance of a deductible
expenditure under Section 23 of the Micro, Small, Medium Enterprises
Development Act, 2006
(b) The net claim receivable/payable as on 31 March 2018 from MTNL is subject to confirmation and reconciliation.
29. Other current financial liabilities
As at As at
Particulars
Current maturities of borrowings 40,868 9,000
After connection deposits 212,285 236,394
Deposits from customers and others 110,661 144,602
Claims payable to
DoT 31,085 37,316
Other government departments 1,942 1,954
License fee, spectrum charges and transponder charges 64,704 143,363
payable
Other payables towards
Employees 11,399 15,580
Subscribers 28,674 24,623
Construction account 46,071 19,669
Services and others 150,787 158,887
698,476 791,388
The Company’s exposure to currency and liquidity risks related to above financial liabilities is disclosed in Note
52.
30. Other current liabilities
120

As at As at
Particulars st st
31 March 2018 31 March 2017
Income received in advance against services 147,797 120,957
Statutory dues
Tax deducted at source 18,014 21,432
Service tax (net) 24,357 29,325
GST (net) 35,352 -
Employees provident fund 5,292 5,285
Employees state insurance 14 3
Professional tax 256 263
Work contract tax and building and other construction 455 2,945
workers welfare cess
Leave encashment of retired employees 4,988 5,699
Intra/inter circle remittances - 9,020
806,579 492,259
31. Short-term provisions
As at As at
Particulars
Provision for employee benefits :
Gratuity (refer note 40) 53 17
Compensated absences (refer note 40) - 72
Half pay leaves (refer note 40) 792 394
Provision for others :
Wealth tax 312 312
1,157 795
32. Revenue from operations

Particulars
Revenue from sale of services
Telephones (other than Wireless in Local Loop (WLL)) 330,760 422,931
Cellular 718,541 1,136,330
Wireless in local loop (WLL) 3,448 6,855
Broad band services 490,414 540,482
Leased lines 295,820 277,428
Lease income from passive infrastructure 80,390 49,621
121

Particulars
Interconnection usage charges (IUC) from other service 224,388 238,626
providers
2,143,761 2,672,273
Other operating revenue
Revenue from construction contracts 3,706 4,433
Sale to third party from telecom factories 10,392 28,822
Profit from manufacturing activities of factories (refer note 8,446 -
(a) and (b) below note 37)
Other operating income (refer notes (a) and (b) below) 95,736 129,486
Other 4,737 5,359
123,017 168,100
2,266,778 2,840,373
Note :
(a)(i) Other operating income represents subsidies from Universal Service Obligation Fund and DoT.
(ii) During the current year, the Company has booked income of INR 16,593 lakh (31 March 2017: INR
61,889 lakh) on projects namely, LWE project, NOFN project and Defence Project.
(b) Telephones disconnected due to non-payment are considered to be working for a period of 30 days from
the date of disconnection of outgoing facility. During this period, the incoming facility is provided and fixed
monthly charges are billed.
33. Other income
122


Particulars
Foreign exchange fluctuation loss (net) 35 755
Sale of scrap 28,821 3,260
Others including sale of publications, forms, waste paper, 35,350 49,922
etc.
232,789 262,621
240,286 312,971
34. Employee benefits expense

Particulars
Salaries, wages, allowances and other benefits 1,348,364 1,383,082
Expenses related to compensated absences (refer note (a) below) 19,324 60,045
Contribution towards pension 93,166 103,332
Contribution towards superannuation 9,831 4,968
Contribution towards employees provident fund 27,788 25,693
Contribution towards Employees State Insurance 45 13
Expense related to post-employment defined benefit plans (refer 8,404 3,074
note 40)
Contribution towards leave salary 1,331 1,567
Half pay leaves 209 407
Medical expenses 56,718 45,075
Staff welfare expenses (refer note (b) below) 1,895 1,902
1,567,075 1,629,158
Less : Allocated to capital work-in-progress and others 83,351 57,613
1,483,724 1,571,545
Note :
(a) During the current year, leave encashment amounting to INR 88,678 lakh (31 March 2017: INR 77,800
lakh) has been directly paid by the Company to the employees.
(b) During the year, the Company has paid INR 162 lakh (31 March 2017: INR 1,010 lakh) to Staff Welfare
Board and INR 32 lakh (31 March 2017: INR Nil) to Sports and Cultural Board for promoting welfare
activities at various circles.
123
35. Finance costs

Particulars
Interest expense on
Financial liabilities at amortised cost:
Subscriber deposits 1 3
Loan 436 5,294
Others 499 1,491
Unwinding of discount on decommissioning liabilities 3,895 7,891
4,831 14,679
36. Depreciation and amortisation expense

Particulars
Depreciation on property, plant and equipment 519,293 569,762
Amortisation on intangible assets 63,865 63,280
583,158 633,042
37. Other expenses
124


Particulars
Travelling expenses 7,370 7,098
Postage and courier charges 4,504 5,192
Security services 42,936 33,897
Vehicle running expenses (including hired vehicles) 30,007 27,439
Interconnection usage charges (IUC) to other service providers 126,570 164,245
Lease expense on passive infrastructure 93,131 87,739
Expenditure on services, goods and other expenses 180,072 150,995
[refer note (c)]
Expenditure on LWE operation 25,733 11,437
Penalty for customer application form (CAF) verification 372 344
Write off and losses (other than bad debts) 24,904 21,511
Bad debt provision other than services 487 547
Bad debt written off 25,159 37,047
Loss allowance for trade receivables and disputed bills 19,642 28,462
Write off of unrecovered service tax/ GST 2,515 4,967
Loss from manufacturing activities of factories [refer note (a) and - 17,442
(b)]
Expenditure on construction contracts 2,056 4,158
Hiring charges of machinery lines 390 483
Payment of financial disincentive to Telecom Regulatory - 76
Authority of India
1,143,959 1,188,614
Less : Allocated to capital project works and others 9,130 6,301
1,134,829 1,182,313
Note :
(a) Telecom factories manufacturing account :
Cost of material consumed 45,789 52,311

Direct expenses 5,812 7,837
Change in inventory (19,850) (24,370)
Total (A) 31,751 35,778
Internal transfer (B) 40,197 18,336
Profit/ (loss) from manufacturing activities 8,446 (17,442)
(b) Prices for transfer of stock from telecom factories to circles for self- consumption are predetermined. The
predetermined rates include direct costs including overhead allocation at a fixed rate. This practice has
resulted in profit of INR 8,446 lakh (31 March 2017: loss of INR 17,442 lakh) for the year ended 31st March
125
2018 arising out of such transfer. The said amount has been netted off against the administrative expenses
in the statement of profit and loss for the year since it is not possible to identify the individual items of
stores, which have been capitalised or expensed off.
(c) Consumption of stores and spare parts for the years ended 31st March 2018 is INR 14,371 lakh (31st March
2017: INR 11,368 lakh) included in expenditure on services and other expenses.
38. Assets and liabilities taken over from DoT
In pursuance of the Memorandum of Understanding (MOU), dated 30 September 2000 executed between
Government of India and the Company, all assets and liabilities in respect of business carried on by
Department of Telecom Services (DTS) and Department of Telecom Operations (DTO) were transferred to
the Company with effect from 1st October 2000 at a provisional value of INR 6,300,000 lakh and up to the
current financial year the Company has identified net assets of INR 6,325,201 lakh (31 st March 2017: INR
6,325,201 lakh) against it.
During the current financial year, based on physical verification of property, plant and equipment and
inventory and reconciliation of various heads of assets and liabilities in the subsidiary and general ledgers,
the management has found some facts which has resulted in increase/ decrease in the following assets and
liabilities taken over as on 1 October 2000 amounting to net increase in the assets of INR Nil (31 March
2017: net increase by INR 160 lakh).
Up to Additions/(Deletions) Up to
Particulars
31st March 2017 during the year 31st March 2018
Assets
Property, plant and equipment 5,406,575 - 5,406,575
Capital work-in-progress 690,353 - 690,353
Trade receivables 683,196 - 683,196
Advance to contractors 39,448 - 39,448
Deposit with electricity boards /others 2,184 - 2,184
Total- A 6,821,756 - 6,821,756
Liabilities
Customer deposits 395,418 - 395,418
Earnest money deposits 12,078 - 12,078
Security deposits from contractors /suppliers 28,994 - 28,994
Working expense liability as on 1 October
st
43,472 - 43,472
2000
Contractors bills payable as on 1st October 16,593 - 16,593
2000
Total-B 496,555 - 496,555
Net assets taken over by the Company (A-B) 6,325,201 - 6,325,201
126

Up to Additions/(Deletions) Up to
Particulars
st
st
31 March 2016 during the year 31 March 2017
Assets
Property, plant and equipment 5,406,416 159 5,406,575
Total- A 6,821,597 159 6,821,756
Liabilities
Working expense liability as on 1 October
st
43,473 (1) 43,472
2000
Contractors bills payable as on 01 October 16,593 - 16,593
2000
Total-B 496,556 (1) 496,555
Net assets taken over by the Company (A-B) 6,325,041 160 6,325,201
Note
1 The net assets and the contingent liabilities transferred to the Company as on 1 October 2000 are subject to
confirmation by DoT as regard to their value.
2 The capital structure for the Company concurred by the Ministry of Finance and conveyed by the Department
of Telecommunications vide their U.O. No. 1-2/2000-B (Pt.) dated 13 December 2001 has been treated as
consideration for transferring the above stated assets and liabilities and is as follows:
As at Additions/ Total structure

1st October 2000 (Deletions) as at
Particulars (as on during the year 1st October 2000
31st March 2017) ended (as on
31st March 2018 31st March 2018)
Equity 500,000 - 500,000
9% Non-cumulative preference shares 750,000 - 750,000
15 year Government loan (interest at prevalent 750,000 - 750,000
Government lending rate)
Loan from MTNL [Note 1] 305,600 - 305,600
Capital reserves – DoT [Note 2] 4,021,118 - 4,021,118
Adjustment made to the statement of profit and loss (1,517) - (1,517)
Total 6,325,201 - 6,325,201
127
As at Additions/ Total structure

st
1 October 2000 (Deletions) as at
Particulars (as on during the year 1st October 2000
st
31 March 2016) ended (as on
st st
31 March 2017 31 March 2017)
Equity 500,000 - 500,000
Adjustment made to the statement of profit and (1,677) 160 (1,517)
loss
Total 6,325,041 160 6,325,201
Note:
1 The entire amount has been repaid in the previous years.
2 Represents the difference between the total value of the assets taken over and the long term identified liabilities
and the capital structure, as on 1 October 2000 as communicated by DoT.
3 In pursuance of clause 13 of agreement of transfer executed between the Government of India and the
Company dated 30 September 2000, all costs, charges and expenses including stamp duties, registration
charges, transfer duties, any other taxes, levies, duties or charges relating to or in connection with completion
of transfer of assets and liabilities shall be borne by the Government of India.
39. License and spectrum fee
1 License and spectrum fee for the year ended 31 st March 2018 is INR 174,338 lakh (31st March 2017: INR
231,086 lakh).
2 During the financial year ended 31 March 2016, the formula for distribution of the revenue between
various components for CMTS Services has been changed. The formula adopted during financial year
2017-18 is as per the following percentage:
Service Basic CMTS NLD ILD ISP

Leased circuits 30.00% - 70.00% - -
Basic services 70.72% - 17.58% 11.70% -
CMTS services - 64.08% 22.15% 1.25% 12.52%
128

Previous Year

Basic services 70.72% - 17.58% 11.70% -
CMTS services - 65.44% 21.33% 1.23% 12.00%
3 Other income consists of interest accrued on income tax refund. From the financial year 2000-01 to
financial year 2010-11, the company has paid excess income tax on the demands raised by Income Tax
department. Company has contested the demand with Income Tax authorities and has got refund order of
income tax in the previous financial year. In the opinion of the management, license fee is not payable on
interest accrued on income tax refund as this is not forming the part of investing activities of the Company.
40. Employee benefits
During the year, the Company has recognized following amounts in the statement of profit and loss :
i) Defined contribution plans
Contributions to defined contribution plans i.e. employer’s contribution to provident fund, Employees
State Insurance, pension contribution paid to the Government of India and superannuation contribution
paid to Life Insurance Corporation Of India for the year is charged to the statement of profit and loss. These
amounts are shown as under:

Employer’s contribution to provident fund 27,788 25,693
Pension contribution to the Government of India 93,166 103,332
Employer’s contribution to Employees State Insurance 45 13
Superannuation contribution to Life Insurance Corporation of 9,831 4,968

India
130,830 134,006
ii) Defined benefit plans

The following table sets out the status of the assets and liabilities recognised in the Company’s standalone
financial statements as at balance sheet date relating to the defined employee benefit plans:
129
As at As at
st st
31 March 2018 31 March 2017
Net defined benefit asset - -
Total employee benefit assets - -
Net defined benefit liability
Liability for gratuity 9,301 2,355
Liability for leave encashment - 961
Liability for half pay leaves 5,227 5,018
Total employee benefit liabilities 14,528 8,334
Non-current 13,683 7,851
Current 845 483
14,528 8,334
A. Gratuity
The Company provides gratuity for employees in India as per the Payment of Gratuity Act, 1972. Employees
who are in continuous service for a period of 5 years are eligible for gratuity. The amount of gratuity payable
on retirement/termination is the employees last drawn basic salary per month computed proportionately for
15 days salary multiplied for the number of years of service.
The employees’ gratuity fund scheme administered by the Company employees gratuity fund trust through
fund manager namely Life Insurance Corporation (LIC) of India, is a defined benefit plan. The present value
of obligation is determined on actuarial valuation done by LIC using projected unit credit method to arrive
the final obligation.
a) Reconciliation of the net defined benefit (asset) liability
The following table shows a reconciliation from the opening balances to the closing balances for net
defined benefit (asset) liability and its components:
Reconciliation of present value of defined benefit obligation
As at As at
Benefits paid (768) (590)
Current service cost 3,236 3,313
Past service cost 5,149 -
Interest cost 5,112 4,585
Remeasurements (gains)/ losses recognised in other comprehensive
income
Actuarial (gain)/ loss 897 (717)
130

Reconciliation of the present value of plan assets
As at As at
st st
31 March 2018 31 March 2017
Contributions during the year 2,355 4,471
Expected return on plan assets 5,093 4,826
Benefits paid (768) (590)
Net defined benefit liability (asset) 9,301 2,355
b) Defined benefits / expenses for gratuity recognised for the year

Expense recognised in the statement of profit and loss

Past service cost * 5,149 -
Expected return on plan assets (5,093) (4,826)
8,404 3,072
* During the current year, the Payment of Gratuity Act,1972 has been amended and the ceiling has been increased to INR 20 lakh from the
existing ceiling of INR 10 lakh. The expense on account of enhanced ceiling is recognised as past service cost.
Remeasurements recognised in other comprehensive income

Actuarial (gain)/ loss on defined benefit obligation 897 (717)
897 (717)
c) Plan assets
i. Gratuity fund investment details (Fund manager wise, to the extent funded) are as below:
As at As at
st st
31 March 2018 31 March 2017
Life Insurance Corporation of India 68,220 61,540
68,220 61,540
The plan assets of the Company are managed by Life Insurance Corporation of India through a trust managed
by the Company in terms of an insurance policy taken to fund obligations of the Company with respect to
its gratuity plan. The categories of plan assets as a percentage of total plan assets is based on information
131
provided by Life Insurance Corporation of India with respect to its investment pattern for group gratuity
fund for investments managed in total for several other companies. Information on categories of plan assets
as at 31st March 2018 and 31st March 2017 has not been provided by Life Insurance Corporation of India.
ii. Expected contributions to post-employment benefit plans for the year ending 31 March 2018 are
INR 9,301 lakh (31st March 2017: INR 2,355 lakh).
d) The expected maturity analysis of the obligation

As at As at
Within the next 12 Months (next annual reporting period) 535 530
Between 1 and 2 years 822 335
Between 2 and 5 years 2,750 1,836
Beyond 5 years 73,414 61,194
Total 77,521 63,895
The weighted average duration of the defined benefit obligation is 10 years (31 March 2017: 10 years)
e) Actuarial assumptions
The following were the principal actuarial assumptions at the reporting date (expressed as weighted
averages):
As at As at
Discount rate 8% 8%
Expected rate of increase in compensation levels 7% 7%
Expected average remaining working lives of employees (years) 21 21
Mortality table LIC (2006-08) LIC (2006-08)
Ultimate Ultimate
f) Sensitivity Analysis
Reasonably possible changes at the reporting date to one of the relevant actuarial assumptions, holding
other assumptions constant, would have affected the defined benefit obligation by the amounts shown
below.
“For the year ended “For the year ended

31st March 2018” 31st March 2017”
Increase Decrease Increase Decrease
Discount rate (0.50% movement) (4,693) 5,039 (5,331) 6,150
Expected rate of increase in compensation levels 4,137 (6,342) 6,180 (5,609)
(0.50% movement)
Withdrawal rate as per mortality table (10% movement) 8,013 (7,211) 5,843 (6,999)
132

Although the analysis does not take account of the full distribution of cash flows expected under the plan,
it does provide an approximation of the sensitivity of the assumptions shown.
B. Compensated absences
Compensated absences is also a defined benefit plan. The liability towards compensated absences has
been determined through actuarial valuation using projected unit credit method. The present value of
obligation is determined on actuarial valuation done by LIC using projected unit credit method to arrive
As at As at
st st
31 March 2018 31 March 2017
Benefits paid (88,678) (77,800)
Remeasurement (gains)/losses recognised in other comprehensive
income
Actuarial (gain)/ loss 11,952 54,762
As at As at
st st
31 March 2018 31 March 2017
Contributions during the year - -
Expected return on plan assets 74,073 74,187
Benefits paid -
Balance at the end of the year * 981,827 907,754
Net defined benefit liability (asset) (68,500) 961
* Includes claim recoverable from LIC amounting to INR 68,500 lakh (31 st March 2017: INR Nil) on account of leave encashment directly
paid by the Company to the employees during the year ended 31 March 2018. Accordingly, net defined benefit asset for compensated
absences for the year ended 31st March 2018 is Nil (refer note 17).
133
b) Defined benefits / expenses for compensated absences recognised for the year

Expected return on plan assets (74,073) (74,187)
Actuarial (gain)/ loss on defined benefit obligation 11,952 54,762
19,217 59,900
c) Plan assets
i. Compensated absences fund investment details (Fund manager wise, to the extent funded) are as
below:
As at As at
Life Insurance Corporation of India 981,827 907,754
981,827 907,754
The plan assets of the Company are managed by Life Insurance Corporation of India with respect to its
compensated absences plan. Information of plan assets as at 31 st March 2018 and 31st March 2017 has not
been provided by Life Insurance Corporation of India.
ii. Expected contributions to post-employment benefit plans for the year ending 31 March 2018 are
INR Nil (31 March 2017: INR 961 lakh).
As at As at
st st
31 March 2018 31 March 2017
Within the next 12 Months (next annual reporting period) 95,789 72,272
Beyond 5 years 469,048 492,454
Total 913,327 908,715
The weighted average duration of the defined benefit obligation is 24 years (31 March 2017: 26 years).
averages):
134

As at As at
st st
31 March 2018 31 March 2017
Discount rate 8% 8%
Expected rate of increase in compensation levels 7% 7%
Expected average remaining working lives of employees (years) 9 9
Mortality table LIC (2006-08) LIC (2006-08)
Ultimate Ultimate
f) Sensivity analysis
below.

Increase Decrease Increase Decrease
Discount rate (0.50% movement) (27,323) 31,502 (2,725) 2,556
Expected rate of increase in compensation levels (0.50% 1,982 (2,591) 2,229 (1,964)
movement)
Withdrawal rate as per mortality table (10% movement) 9,146 (8,838) 9,178 (8,633)
C. Risk exposure
“Through its defined benefit plans, the Company is exposed to a number of risks, the most significant of
which are detailed below:”
a) Asset volatility
The plan liabilities are calculated using a discount rate set with reference to bond yeilds; if plan assets
underperform this yeild, this will create a deficit. Most of the plan asset investments are in fixed income
securities with high grades and in government securities.These are subject to interest rate risk and the fund
manages interest rate risk with derivatives to minimise risk to an acceptable level. A portion of the funds
are invested in equity securities and in alternative investments which have low correlation with equity
securities. The equity securities are expected to earn a return in excess of the discount rate and contribute
to the plan deficit. The Company intends to maintain the above investment mix in the continuining years.
b) Changes in discount rate
A decrease in discount rate will increase plan liabilities, although this will be partially offset by an increase
in the value of the plan’s bond holdings.
135
c) Inflation risks
In the plans, the payments are not linked to the inflation so this is a less material risk.
d) Life expectancy
The plan obligations are to provide benefits for the life of the member, so increases in life expectancy will
result in an increase in the plans’ liabilities. This is particularly significant where inflationary increases
result in higher sensitivity to changes in life expectancy.
“The Company ensures that the investment positions are managed within an asset- liability matching
(ALM) framework that has been developed to achieve long term investments that are in line with
the obligations under the employee benefit plans. Within this framework, the Company’s ALM
objective is to match assets to the obligations by investing in long-term fixed interest securities
with maturities that match the benefit payments as they fall due and in the appropriate currency.
The Company actively monitors how the duration and the expected yield of the investments are matching
the expected cash outflows arising from the employee benefit obligations. The Company has not changed
the processes used to manage its risks from previous periods. Investments are well diversified, such that the
failure of any single investment would not have a material impact on the overall level of assets.”
C. Half pay leaves

Half pay leaves is also a defined benefit plan. The liability towards half pay leaves has been determined
through actuarial valuation using projected unit credit method. The present value of obligation is determined
on actuarial valuation done by LIC using projected unit credit method to arrive the final obligation.
41. Property, plant and equipment / Intangible assets/ Depreciation and amortization/ Capital work-in-
progress
1 “Property, plant and equipment taken over from DoT as on 1 st October 2000 are based on physical
verification conducted by the management. The value of property, plant and equipment taken over
including capital work-in- progress has been determined by the management using the original cost of the
asset (wherever available) or alternatively the value arrived at by applying Strategic Business Plan (“SBP”)
rates, which is based on technical assessment, as reduced by the depreciation up to 30th September 2000 on
straight line basis at the rates prescribed by DoT. Capital assets acquired by the Company after 1 st October
2000 are valued at the cost including all direct charges incurred up to the time of installation or put to use.
The transfer values, as indicated above, in respect of assets transferred from DoT on 1st October 2000 have
been treated as its original cost and depreciation has been provided on written down value method at the
rates prescribed in Schedule XIV of the Companies Act, 1956 till financial year 2013-14 without reassessing
the remaining useful life of such assets as on that date. Depreciation has been provided at the rates as stated
above for all the assets acquired after 1st October 2000 except in the case of Subscribers Installations which
are depreciated over the useful life of 5 years on written down value method. However, with the enactment
of Companies Act, 2013 the depreciation has been provided as per the provisions of schedule II of the
Companies Act, 2013 for financial year 2014-15 onwards for all assets including Subscribers Installations.
For 3G & BWA Spectrum the amount paid to Government of India for acquiring these assets is being
amortized over a period of 20 years.”
136

2 The lease period of a few leasehold lands on which buildings are constructed, have not been renewed / or
the renewals are under dispute. Since expected terms, conditions and rentals for renewal/ surrender are not
ascertainable, no provision has been made for the surrender value / written down value of the buildings’.
3 Pending transfer of the immovable property in the name of the Company, documents in respect of certain
land and buildings acquired during the period are under legal process/ execution. Further in respect of
assets taken over from DoT, formalities for vesting the assets in favour of the Company, wherever necessary/
applicable are under process.
4 Capital work-in-progress, inter alia, includes balances pending capitalization for long periods of time owing
to pending analysis of status, value and obtaining of commissioning certificates in respect of twenty once
circles (31st March 2017: four circles). The amount ascertained in respect of sixteen circles (31st March
2017: two circles) is INR 24,152 lakh (31st March 2017: INR 13,056 lakh). Consequently, depreciation has
also not been charged on the same.
5 Directly attributable establishment and administration expenses incurred in units where project work is
also undertaken are allocated to capital and revenue mainly on actual man-month basis.
42. DoT balances
“Other recoverables from DoT, after netting off the claim payables to them, INR 211,928 lakh (31 st March
2017: INR 182,736 lakh) are included in other current financial assets and other current financial liabilities.
This balance is subject to confirmation, reconciliation and consequential adjustment. There is no practice
of getting confirmation of such balances with Government department due to huge number of transactions.
Further, there is no agreement between the Company and DoT for interest recoverable/ payable on
outstanding amounts of DoT. Hence, no accrual for interest has been made on the amount payable to/
recoverable from DoT.”
43. Inter/ intra circle remittance
There are certain expenses (both capital and revenue) which are incurred by one circle on behalf of other.
These expenses are parked in Inter/ Intra-Circle Remittances account. As on 31st March 2018, there was
balance of INR 7,919 lakh (31st March 2017: INR (9,020) lakh) in Inter/Intra-Circle Remittances account.
This amount pertains mainly to assets and liabilities, and marginally to expenditure and revenue. The
depreciation is not claimed in case of assets and expenses are not taken to the statement of profit and loss
pending reconciliation. The reconciliation is done on continuous basis throughout the year and proper
effect is taken in the books of accounts for reconciled amounts.
44. Earnings/ (loss) per share

Basic and diluted earnings/(loss) per share
Basic and diluted earnings/(loss) per share is calculated by dividing the profit/ (loss) during the year
attributable to equity shareholders of the Company by the weighted number of equity shares outstanding
during the year.
137
45. Segment information

A. Description of segments and principal activities
An operating segment is a component of the Company that engages in business activities from which it may
earn revenues and incur expenses, including revenues and expenses that relate to transactions with any of
the Company’s other components, and for which discrete financial information is available. All operating
segments operating results are reviewed regularly by the Board of directors of the Company, which is
defined as chief operating decision maker (‘CODM’) to make decisions about resources to be allocated to
the segments and assess their performance.
For management purposes, the business is organized into business segments namely basic, cellular,
broadband and enterprise based on its products and services identified.
B. Information about reportable segments
Year ended 31st March 2018
Business Segments
Particulars Unallocable Total
Basic Cellular Broadband Enterprise
Revenue
Revenue from operations 449,328 1,029,679 473,612 314,159 - 2,266,778
Other income (111,350) 29,407 1,982 312,173 577 232,789
Net segment revenue 337,978 1,059,086 475,594 626,332 577 2,499,567
Segment results
Operating profit/(loss) (1,447,588) 378,966 408,547 414,508 (47,756) (293,324)
before interest, depreciation
and taxes
Depreciation and (205,507) (291,041) (19,604) (66,547) (458) (583,158)
amortisation
Interest income 6,503 636 14 179 166 7,497
Interest expenses (1,470) (3,200) (47) (8) (106) (4,831)
Profit/(loss) before tax (1,648,063) 85,360 388,910 348,132 (48,155) (873,816)
Tax expense - - - (74,531) (74,531)
138

Business Segments
Profit/(loss) after tax (1,648,063) 85,360 388,910 348,132 26,376 (799,285)
Other information
Segment assets 7,326,045 3,120,064 181,953 1,367,221 1,284,500 13,279,783
Segment liabilities 2,136,957 352,138 4,090 396,104 1,423,251 4,312,541
Capital expenditure during 81,730 108,552 14,334 44,926 246,066 495,609
the year
Non cash expense other 43,428 11,169 939 5,006 - 60,541
than depreciation
Year ended 31st March 2017
Business Segments
Basic Cellular Broadband Enterprise*
Revenue
Other income 183,657 59,313 4,469 12,415 2,767 262,621
Net segment revenue 741,897 1,513,991 534,868 309,471 2,767 3,102,994
Segment results
Operating profit/ (1,160,711) 741,222 480,491 109,398 (52,350) 118,050
(loss) before interest,
depreciation and taxes
Depreciation and (226,969) (320,064) (21,530) (63,972) (507) (633,042)
amortisation
Interest income 41,642 316 18 185 8,189 50,350
Interest expenses (1,923) (7,383) (67) (12) (5,294) (14,679)
Tax expense - - - - -
Profit/(loss) after tax (1,347,961) 414,091 458,912 45,599 (49,962) (479,321)
Other information
Segment assets 7,667,552 3,098,180 164,185 1,052,114 1,121,809 13,103,840
Capital expenditure 12,536 20,771 2,353 52,911 465,632 554,203
during the year
Non cash expense other 56,729 28,805 2,203 12,783 2,007 102,527
than depreciation
* During the year ended 31st March 2018, ‘Enterprise’ segment is identified as a reportable segment in accordance with the quantitative
thresholds as per Ind AS 108, ‘Operating Segments’. Accordingly, segment data for the year ended 31 st March 2017 has been restated to
reflect the ‘Enterprise’ segment as a separate segment.
139
C. Reconciliations of information on reportable segments to Ind AS measures

i) Revenues
Total revenue for reportable segments 2,498,990 3,100,227
Unallocable revenue 577 2,767
Total revenue 2,499,567 3,102,994

ii) Profit before tax
Total profit before tax for reportable segments (825,661) (429,359)
Profit before tax for unallocable (48,155) (49,962)
Profit before tax as per statement of profit and loss (873,816) (479,321)
As at As at
iii) Assets
Total assets for reportable segments 11,995,283 11,982,031
Unallocable assets 1,284,500 1,121,809
Total assets as per the balance sheet 13,279,783 13,103,840
D. Geographic information
The Company caters only to the Indian market representing a singular economic environment with similar
risks and returns and further there are no reportable geographical segments.
E. Information about major customers
For the year ended 31st March 2018 and 311st March 2017, revenue from any customer is not more than 10
percent of the Company’s total revenue.
140

46. Related party transactions

a) List of related parties
i. Key Management Personnel
Designation Name of incumbent Remarks

Chairman and Managing Director (‘CMD’) Shri Anupam Shrivasatava From 15 January 2015
Director (Finance) Smt. Sujata Ray From 21 October 2015
Director (Enterprise) Shri Narender Kumar Mehta From 1 August 2015
Director (Consumer Fixed Access) Shri Naresh Kumar Gupta From 01 June 2012 to
31 May 2017
Shri Narender Kumar Mehta From 01 June 2017
Director (Consumer Mobility) Shri Rakesh Kumar Mittal From 4 November 2015
Director (Human Resource) Smt. Sujata Ray From 8 July 2015
Government Director Smt. Padma Iyer Kaul From 18 September 2015
Shri N. Sivasailam From 21 October 2015 to
01 February 2018
Shri Amit Yadav From 01 February 2018
Non-official part-time Director Smt. K. Sujatha Rao From 30 January 2017
Dr. Santhosh R. Dastane From 30 January 2017
Shri V. Venkateshwara Bhat From 08 September 2017
Prof. Jasbir Singh From 08 September 2017
Company Secretary and Chief General Manager Shri Hem Chandra Pant From 28 November 2000
(Legal)
ii. Subsidiary
BSNL Tower Corporation Limited (incorporated w.e.f. 4 January 2018)
iii. Entities under the control of the same Government
The Company is a Central Public Sector Undertaking (CPSU) controlled directly or indirectly by Central
Government. Pursuant to paragraph 25 and 26 of Ind AS 24, entities over which the same government
has control or joint control of, or significant influence, then the reporting entity and other entities shall
be regarded as related parties. The Company has applied the exemption available for government related
entities and have made limited disclosures in the standalone financial statements. Such entities with which
the Company has significant transactions include but not limited to Department of Telecom (‘DoT’),
Department of Posts, Mahanagar Telephone Nigam Limited, Indian Telephone Industries, Indian Oil
Corporation Limited, Bharat Petroleum Corporation Limited, Union Bank of India, United Bank of India,
State Bank of India, Bank of Maharashtra, Punjab National Bank, Canara Bank and Bank of Baroda.
141
iv. Post employment benefit plans
BSNL Employees Gratuity Fund Trust

BSNL Employees Superannuation Pension Fund Trust
b) Transactions with the related parties are as follows:

Particulars
A. Compensation to Key Management Personnel
- Short term employee benefits
Payment of salaries and allowances
Shri Anupam Shrivastava 37 30
Smt. Sujata Ray 32 29
Shri Naresh Kumar Gupta 25 34
Shri Narender Kumar Mehta 29 29
Shri Rakesh Kumar Mittal 36 29
Shri Hem Chandra Pant 28 23
187 174
Perquisites
Smt. Sujata Ray 1 1
Shri Naresh Kumar Gupta - 1
4 5
Sitting fee
Prof. N Balakrishnan - 0.1
Shri Ajai Vikram Singh - 0.1
Smt. K. Sujatha Rao 1.2 -
Dr. Santhosh R. Dastane 1.2 -
Shri V. Venkateshwara Bhat 0.5 -
Prof. Jasbir Singh 0.5 -
3.4 0.2
- Post employment benefits
Smt. Sujata Ray 3 -
142


Particulars
35 6
- Other long term benefits
Smt. Sujata Ray 2 1
38 8
B. Advances given to Key Management Personnel *
Opening balance 3 6
Extended during the year 19 16
Total 22 22
Repayment of advance 15 19
Closing balance 7 3
C. Transactions with subsidiary
Equity contributions made
BSNL Tower Corporation Limited (refer note 5) - -
D. Contribution made during the year to post employment
benefit plans
- BSNL Employees Gratuity Fund Trust 2,355 4,471
- BSNL Employees Superannuation Pension Fund Trust 9,831 4,968
E. Transactions with the related parties under the control of
the same government
i. Revenue from sale of services
DoT 20,164 34,966
Central government and central PSU’s 160,064 341,754
180,228 376,720
ii. Employee benefits expense
DoT
Contribution towards leave salary 1,331 1,567
Contribution towards pension 93,166 103,332
94,497 104,899
143

Particulars
Central government and central PSU’s
Contribution towards employees provident fund 27,788 25,693
iii. License and spectrum fee
DoT 174,338 231,086
iv. Other expenses
Expenditure on capital items 15,048 19,018
Power and fuel 39,395 49,371
Repairs and maintenance 8,007 76,313
Others 46,887 9,435
109,337 154,137
* These advances are in the normal course of business.
c) Outstanding balances with related parties are as follows:

A. Key Management Personnel
Shri Rakesh Kumar Mittal - 2
Shri Rakesh Kumar Upadhyay - -
7 3
B. Amount recoverable from subsidiary
BSNL Tower Corporation Limited 275 -
C. Post employment benefit plans
Amount recoverable from BSNL Employees Gratuity 977 767
Fund Trust
D. Related parties under the control of the same
government
i. Non-current borrowings (including current maturities)
Term loans from banks
Union Bank of India 228,499 35,600
United Bank of India 63,968 69,984
State Bank of India 245,611 33,095
Punjab National bank 193,989 116,495
Canara Bank 99,996 -
Bank of Baroda 16,162 -
848,225 255,174
The Central Government of India 7,500,000 7,500,000
144


Particulars
ii. Other current financial assets
For employees on deputation 1,812 1,891
For defense telecom network project (net) - 31,017
Other recoverable 243,013 220,052
Amount recoverable from LIC 68,500 -
313,325 252,960
iii. Other current financial liabilities
Claims payable to DoT 31,085 37,316
iv. Other current liabilities
DoT
Advance received for Defense telecom network project 162,065 -
(net)
v. Amount receivable (net)
Central government and central PSU’s 2,114 65,587
d) Terms and conditions of transactions with the related parties
Transactions with the related parties are made on normal commercial terms and conditions and at market rates.
47. Auditor’s remuneration (statutory/ branch auditors)

Particulars
Statutory Branch Auditor Statutory Branch Auditor
Auditor Auditor
Statutory audit fee 15 273 15 299
Certification charges 2 26 2 24
Reimbursement of expenses 2 14 2 10
Others 18 - 13 -
Total (A) 37 313 32 333
Other services - - - -
Tax audit fee 1 27 - 27
Total (B) 1 27 - 27
Total (A + B) 38 340 32 360
Note: Fees are exclusive of applicable taxes wherever applicable.
145
48. Provisions
Decommissioning
Particulars Wealth tax Contingencies Total
liabilities *
Balance as at 1st April 2017 312 1,584 87,248 89,144
Provisions made during the year - 90 4,727 4,817
Provisions used during the year - (113) (189) (302)
Provisions reversed during the year - (1,090) (14,265) (15,355)
Balance as at 31 March 2018
st
312 471 77,521 78,304
Decommissioning
liabilities *
Balance as at 1st April 2016 312 1,568 75,518 77,398
Provisions used during the year - - - -
Provisions reversed during the year - (110) - (110)
Balance as at 31 March 2017
st
312 1,584 87,248 89,144
* The Company records a provision for decommissioning costs for those operating lease arrangements where the Company has a binding
obligation at the end of the lease period to restore the leased premises in a condition similar to that at the inception of lease. The Company
is committed to decommissioning the site as a result of the construction of the towers, buildings and other assets.
49. Contingent liabilities and commitments

A. Contingent liabilities
Claims against the company not acknowledged as debts are as follows:
As at As at
st st
Particulars 31 March 2018 31 March 2017
No. of cases Amount No. of cases Amount
TR billing 140 30 40 48
Enhanced sales tax in lieu of C/D forms - - 6 412
On account of service tax disputed 89 25,348 148 58,091
Sales tax disputed 67 15,220 105 9,582
Central excise claims 25 2,245 21 2,120
License fee and spectrum fee [note 1] 2 1,598,574 2 729,016
Others [note 2] 305 32,762 329 38,838
Total 628 1,674,179 651 838,107
Note 1: Demand raised by DoT amounting to:
146

i) Amount of INR 1,560,744 lakh (31 March 2017: INR 691,186 lakh) on account of one time spectrum
charges for Global System for Mobile(GSM) spectrum held by the Company, the matter is sub-judice
by other operators and the amount is not finally crystallized.
ii) Amount of INR 37,830 lakh (31 March 2017: 37,830 lakh) on account of provisional assessment of
License fee for the year 2012-13.
Note 2: The contingent liability in connection to 1901 cases (31 March 2017: Nil cases) included under the
head ‘Others’ in the above table is not ascertainable. Certain claims of MTNL on various accounts
like duct charges, space charges, service connections, revenue share for network usgae, etc. are under
reconciliation and settlement process. Pending an ongoing reconciliation and settlement process, the
estimate of these claims/outflows could not be ascertained.
i) Claims pending in court related to Land acquisition, TR billing, Service tax, Central Excise and Sales
tax, Arbitration cases and others.
As at 31st March As at 31st March

Particulars
2018 2017
No. of cases 7,946 9,444
Amount 851,052 878,643
ii) Demands raised by the Income-tax departments not acknowledged as debt are as follows:
The Income-tax assessments u/s 143(3) of Income-tax Act 1961 have been completed up to
Assessment Year 2015-16 i.e. Financial Year 2014-15 and the disputed demand outstanding up
to Assessment Year 2015-16 is INR 16,819 lakh based on the decision of the Applellate Authority
which is related with Assessment Year 2009-10. The demand is presently under litigation in High
Court, New Delhi.
iii) Liability on account of bank guarantees given by the Company.
As at As at
st st
31 March 2018 31 March 2017
Particulars
Without cash Without cash
With cash margin With cash margin
margin margin
No. of cases 19 539 32 426
Amount 929 22,706 1,027 11,214
iv) As per Office Memorandum (OM) dated 19 November 2009, pension contribution was payable
on the actual pay drawn as on 1 January 2007 (being the date of implementation of second pay
commission for IDA). Whereas the Company was paying pension contribution on maximum of
the scale as advised by DoT, from 1st December 2011 the management had decided to change the
method of payment of pension contribution from maximum pay scale to actual pay drawn as per
147
the office memorandum dated 19 November 2009. Although the matter is still under pursuance
with DoT, meanwhile, the management has once again decided to pay the pension contribution on
maximum of the pay scale from 1st October 2014 onwards. The actual difference between these two
methods of pension contribution payment up to 31st March 2018 is INR 53,774 lakh (31st March
2017: INR 59,453 lakh).
B. Commitments
a) Capital commitments
i. The estimated amounts of contracts remaining to be executed on capital account and not provided
for in relation to execution of works and purchase of equipment are INR 200,354 lakh (as on 31
March 2017: INR 81,691 lakh ).
ii. In two circles (31st March 2017: two circles) the estimated amount of contracts remaining to be
executed on capital account has not been ascertained.
b) Other commitments
The amount of other commitments amounting to INR 8,453 lakh (31 st March 2017: INR 7,931 lakh) which
was not ascertained in one circle (31st March 2017: two circles).
50. Leases
A. Operating lease commitments — Company as lessee
a) The Company has taken vehicles for senior executives under operating leases, which expire between the
period ranging from April 2018 to December 2022 (31st March 2017: April 2017 to March 2022).
Lease payments amounting to INR 4,744 lakh (31st March 2017: INR 2,600 lakh) are included in rent
expense in the statement of profit and loss during the current year.
Future minimum lease payments
At 31st March the future minimum lease payments to be made under non-cancellable operating leases are
as follows:
As at As at
Not later than one year (excluding applicable taxes) 945 1,000
Later than one year and not later than five years (excluding 182 105
applicable taxes)
Later than five years (excluding applicable taxes) - 29
Total 1,127 1,134
b) The Company has entered into various agreements with other telecom operators wherein the Company
acquires a right to use passive infrastructure of other operators. The escalation clause includes escalation
148

ranging from 0 to 25% and includes option of renewal from 1 to 15 years. There are no restrictions imposed
by lease arrangements.
Lease payments amounting to INR 93,131 lakh (31st March 2017: INR 87,739 lakh) are included in lease
expense on passive infrastructure in the statement of profit and loss during the current year.
At 31st March the future minimum lease payments to be made under non-cancellable operating leases are
as follows:
As at As at
st st
31 March 2018 31 March 2017
Not later than one year (excluding applicable taxes) 83,065 55,293
Later than one year and not later than five years (excluding applicable 172,875 182,013
taxes)
Later than five years (excluding applicable taxes) 110,548 81,158
Total 366,488 318,464
B. Operating lease commitments — Company as lessor

The Company has entered into various agreements with other telecom operators wherein the Company
agrees to shares its own passive infrastructure with other operators. The escalation clause includes escalation
Lease receipts amounting to INR 80,390 lakh (31st March 2017: INR 49,621 lakh) are included in Lease
income on passive infrastructure in the statement of profit and loss during the current year.
At 31st March the future minimum lease payments under non-cancellable operating leases are receivable as
follows:
As at As at
Not later than one year (excluding applicable taxes) 54,442 21,457
Later than one year and not later than five years (excluding applicable 193,479 93,887
taxes)
Later than five years (excluding applicable taxes) 121,280 52,480
Total 369,201 167,824
149
51. Income tax

A. Amounts recognised in statement of profit and loss
The major components of income tax expense for the years ended 31 st March 2018 and 31 March 2017
are:

Current income tax
- For the year* - -
- Adjustment for prior periods (80,429)
Fringe benefit tax 5,898
Deferred tax - -
Income tax expense reported in the statement of profit and loss (74,531) -
* The provision for income-tax for the current year has not been made since the Company is not having any taxable income either under
normal provision of Income Tax Act, 1961 or special provision under section 115JB (Minimum Alternate Tax) of the Income Tax Act,
1961.
B. Amounts recognised in other comprehensive Income/ (expense)

The major components of income tax expense for the years ended 31 st March 2018 and 31st March 2017
are:

Income tax
Remeasurement of post employment benefit obligation - -
Income tax charges to other comprehensive income - -
C. Reconciliation of effective tax rate

Reconciliation of tax expense and the accounting profit/ (loss) multiplied by India’s domestic tax rate for
the year ended 31st March 2018 and 31st March 2017:

Rate (%) Amount Rate (%) Amount
(873,816) (479,321)
Profit/ (loss) before tax 30.90% (270,009) 30.90% (148,110)
Effective tax rate * 0% 0%
* In the absence of reasonable certainty of future taxable profits, the Company has not recognised deferred tax asset (net) for the above
periods, hence the effective tax rate is 0%.
150

D. Deferred tax assets/ liabilities
Net deferred tax assets/

Deferred tax assets (Deferred tax liabilities)
(liabilities)
Particulars As at As at As at As at As at As at
31st March 31st March 31st March 31st March 31st March 31st March
2018 2017 2018 2017 2018 2017
Loss allowance for trade receivables 89,629 108,598 - - 89,629 108,598
Loss allowance for other assets 60,194 62,047 - - 60,194 62,047
Carry forward tax losses including unabsorbed 1,155,509 1,011,639 - - 1,155,509 1,011,639
depreciation
Provision for compensated absences - 297 - - - 297
Provision for half pay leaves 1,631 1,551 - - 1,631 1,551
Provision for gratuity 2,902 728 - - 2,902 728
Provision for decommissioned assets 10,785 21,107 - - 10,785 21,107
Provision for obsolete inventory and capital 6,496 8,856 - - 6,496 8,856
work in progress
Disallowances under section 43B of Income Tax 7,741 11,687 - - 7,741 11,687
Act, 1961
Difference in book written down value and - - 195,211 207,049 (195,211) (207,049)
tax written down value of property, plant and
equipment
1,334,887 1,226,510 195,211 207,049 1,139,676 1,019,461
Net deferred tax assets 1,139,676 1,019,461
Net deferred tax assets recognised - -
Deferred tax assets are recognised to the extent of deferred tax liabilities. In the absence of reasonable
certainty of future taxable profits, the Company has not recognised deferred tax asset (net) for the above
periods.
E. Movement of temporary differences
Unrecognised As at
As at Unrecognised 31st March 2018
Particulars temporary
31st March 2017 tax losses
differences
Loss allowance for trade receivables 351,450 (64,177) - 287,272
Loss allowance for other assets 200,799 (7,868) - 192,931
Carry forward tax losses including 3,273,912 - 429,642 3,703,554
unabsorbed depreciation
Provision for compensated absences 961 (961) - -
Provision for half pay leaves 5,019 209 - 5,228
Provision for gratuity 2,356 6,945 - 9,301
Provision for decommissioned assets 68,307 (33,740) - 34,567
151
Unrecognised As at
As at Unrecognised st
31 March 2018
31st March 2017 tax losses
differences
Provision for obsolete inventory and 28,660 (7,840) - 20,821
capital work in progress
Disallowances under section 43B of 37,822 (13,011) - 24,811
Income Tax Act, 1961
A 3,969,286 (120,443) 429,642 4,278,485
Difference in book written down 670,061 (44,385) - 625,676
value and tax written down value of
property, plant and equipment
B 670,061 (44,385) - 625,676
Net deferred tax (A)-(B) 3,299,225 (76,058) 429,642 3,652,809
F. Tax losses and tax credits for which no deferred tax asset was recognised expire as follows:

Particulars Gross Unrecognised Gross Unrecognised Expiry year
amount tax effect amount tax effect
Business Loss
For Assessment year 2010-11 79,376 24,765 79,376 24,527 2019
Unabsorbed depreciation 3,153,032 983,746 2,723,389 841,527 Never
expire
3,703,556 1,155,509 3,273,913 1,011,638
* The Company has recognised tax effect on unabsorbed depreciation amounting to INR Nil (31 March 2017: INR Nil)
52. Financial instruments – Fair values and risk management

A. Financial instruments – by category and fair values hierarchy
The following table shows the carrying amounts and fair value of financial assets and financial liabilities,
including their levels in the fair value hierarchy.
152

i. As on 31st March 2018
Carrying value Fair value measurement using

Particulars FVTPL FVOCI Amortised Total Level 1 Level 2 Level 3
cost
Financial assets
Non-current
Investments - - - - - - -
Loans* - - 583 583 - - 583
Other financial assets* - - 24,029 24,029 - - 24,029
Current
Investments* 20,000 - - 20,000 - - -
Trade receivables* - - 392,538 392,538 - - -
Cash and cash equivalents* - - 75,782 75,782 - - -
Balances other than cash and cash - - 138 138 - - -
equivalents*
Loans* - - 224 224 - - -
Other financial assets* - - 920,213 920,213 - - -
Total 20,000 - 1,413,507 1,433,507
Non-current
Borrowings# - - 1,654,348 1,654,348 - - 1,654,348
Other financial liabilities* - - 181,781 181,781 - - 181,781
Current
Borrowings# - - 30,910 30,910 - - -
Trade payables* - - 782,989 782,989 - - -
Other current financial liabilities* - - 698,476 698,476 - - -
Total - - 3,348,504 3,348,504
ii. As on 31st March 2017

cost
Financial assets
Non-current
Loans* - - 870 870 - - 870
Other financial assets* - - 28,785 28,785 - - 28,785
Current
Investments* 20,000 - - 20,000 - - -
153

cost
Balances other than cash and cash - - 126 126 - - -
equivalents*
Loans* - - 445 445 - - -
Total 20,000 - 1,401,056 1,421,056
Non-current
Borrowings# - - 1,062,657 1,062,657 - - 1,062,657
Current
Borrowings# - - 59,613 59,613 - - -
Trade payables* - - 592,993 592,993 - - -
Total - - 2,645,421 2,645,421
# The Company’s borrowings have been contracted at floating rates of interest, which resets at short intervals. Accordingly, the carrying
value of such borrowings (including interest accrued but not due) approximates fair value.
* The carrying amounts of trade receivables, trade payables, cash and cash equivalents, investment bank balances other than cash and
cash equivalents and other financial assets and liabilities, approximates the fair values, due to their short-term nature. The other non-
current financial assets represents bank deposits (due for maturity after twelve months from the reporting date) and security deposits
given to various parties, and other non-current financial liabilities, the carrying value of which approximates the fair values as on the
reporting date.
There have been no transfers between Level 1, Level 2 and Level 3 for the years ended 31 st March 2018 and 31st March 2017.
Valuation techniques used to determine fair value
Specific valuation techniques used to value non current financial assets and liabilities for whom the fair values
have been determined based on present values and the appropriate discount rates at each balance sheet date. The
discount rate is based on the weighted average cost of borrowings of the Company at each balance sheet date.
Valuation processes
The Company has an established control framework with respect to the measurements of the fair values. This
includes a valuation team that has overall responsibility for overseeing all significant fair value measurements
and reports to Senior Management. The valuation team regularly reviews significant unobservable inputs and
valuation adjustments.
B. Financial risk management
The Company has exposure to the following risks arising from financial instruments:
- Credit risk ;
- Liquidity risk ;
154

- Market risk - Foreign exchange ; and

- Market risk - Interest rate
Risk management framework
“BSNL, by virtue of being the successor of erstwhile Central Government Departments of the Telecom Services
(DTS) and Telecom Operations (DTO) already had a codified set up with inbuilt mechanism to foresee the
potential risks and methods to arrest, control, ignore and/or respond to the risks. However, as mandated by the
Department of Public Enterprises through Guidelines on Corporate Governance Norms for the Un-Listed CPSEs -
further revised and made mandatory for the CPSEs vide No.18(8)/2005-GM, dated the 14th May 2010 – Company
has laid down a Enterprise Risk Management (ERM) Policy.”
“The Company’s board of directors has overall responsibility for the establishment and oversight of the Company’s
risk management framework.
As per ERM policy of the Company, the Company has constituted an ERM committee, with the overall objective
of oversight, development and implementation of a risk identification and management process and the review
and reporting of the same.
The board of directors has authorized Management Committee of the Board (MCB), the CMD and the Functional
Directors and below Board functionaries, viz., the Executive Directors/ CGMs/ PGMs/ GMs/ TDMs/ DGMs etc.,
as the case be, to establish the processes, who ensures that executive management controls risks through the
mechanism of properly defined framework.
Considering the size and geographical spread of the organization vis-a-vis the delegation of powers made to the
business heads and unit heads – who carry out the task of undertaking the risk management as a part of the normal
business practice by integrating and aligning the same with corporate and operational objectives - the Business
Heads in the Corporate Office; CGMs/ PGMs/ GMs and other unit heads of the field units were designated as the
Risk Management Administrators (RMAs).
The Company’s risk management policies 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 reviewed by the Functional Directors/ Business Heads periodically to reflect changes in market
conditions and the Company’s activities. The Company, through its training and management standards and
procedures, aims to maintain a disciplined and constructive control environment in which all employees
understand their roles and obligations.”
The maximum exposure to credit risks is represented by the total carrying amount of these financial assets in the
Balance Sheet:
i. Credit risk
Particulars As at 31st March 2018 As at 31st March 2017

Investments 20,000 20,000
Trade receivables 392,538 309,881
155

Loans 807 1,315
Cash and cash equivalents 75,782 338,737
Other financial assets 944,242 750,997
Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails
to meet its contractual obligations.
Credit risk on cash and cash equivalents is limited as the Company generally invests in deposits with banks with
high credit ratings assigned by domestic credit rating agencies.
The maximum exposure to the credit risk at the reporting date is primarily from trade receivables. Trade receivables
are typically unsecured and are derived from revenue earned from customers primarily located in India. The
Company does monitor the economic environment in which it operates. The Company manages its credit risk
through credit approvals, establishing credit limits and continuously monitoring credit worthiness of customers to
which the Company grants credit terms in the normal course of business.
“The Company establishes an allowance for impairment that represents its expected credit losses in respect of
trade receivable and other financial assets. The management uses a simplified approach (i.e. based on lifetime
ECL) for the purpose of impairment loss allowance, the company estimates amounts based on the business
environment in which the Company operates, and management considers that the trade receivables are in default
(credit impaired) when counterparty fails to make payments for receivables more than 2 years past due. However
the Company based upon historical experience determine an impairment allowance for loss on receivables.
Majority of trade receivables are from domestic customers, which are fragmented and are not concentrated to
individual customers. Further, a large number of minor receivables are grouped into homogeneous groups and
assessed for impairment collectively. Individual trade receivables are written off when management deems them
not to be collectible.”
The Company’s exposure to credit risk for trade receivables is as follows:
Gross carrying amount

Particulars st
As at 31 March 2018 As at 31st March 2017
1-90 days past due * 253,728 116,428
91 to 180 days past due 52,133 207,792
180 days to 2 years past due 152,176 195,557
More than 2 years past due # 350,071 288,307
808,108 808,084
* The Company believes that the unimpaired amounts that are past due by more than 30 days are still collectible in full, based on
historical payment behaviour.
# The Company based upon past trends determines an impairment allowance for loss on receivables outstanding for more than two
years past due.
156

# Receivables more than two years past due primarily comprises receivables from government departments and PSU’s, which are fully
realisable on historical payment behaviour and hence no loss allowance has been recognised. Impairment allowance has already
been recognised on specific credit risk factor.
Movement in the loss allowance in respect of trade receivables

Particulars
Impairment loss recognised during the year 46,075 35,539
Amount written off (103,352) (70,724)
ii. Liquidity risk
Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated
with its financial liabilities that are settled by delivering cash or another financial asset. The Company’s
approach to managing liquidity is to ensure, as far as possible, that it will have sufficient liquidity to meet its
liabilities when they fall due, under both normal and stressed conditions, without incurring unacceptable
losses or risking damage to the Company’s reputation.
The Company believes that its liquidity position, including total cash and cash equivalents and bank
balances other than cash and cash equivalents of INR 75,920 lakh as at 31 March 2018 (31 March 2017:
INR 338,863 lakh), anticipated future internally generated funds from operations, and its fully available,
revolving undrawn credit facility will enable it to meet its future known obligations in the ordinary course
of business. However, if liquidity needs were to arise, the Company believes it has access to financing
arrangements based on the value of unencumbered assets, which should enable it to meet its ongoing
capital, operating, and other liquidity requirements. The Company will continue to consider various
borrowing or leasing options to maximize liquidity and supplement cash requirements as necessary.
The Company’s liquidity management process as monitored by management, includes the following:
- Day to day funding, managed by monitoring future cash flows to ensure that requirements can be met.
- Maintaining rolling forecasts of the Company’s liquidity position on the basis of expected cash flows.
- Maintaining diversified credit lines.

a. Financing arrangements
The company had access to the following undrawn borrowing facilities at the end of the reporting period
157

From banks 338,226 448,304
b. Maturities of financial liabilities
The following are the remaining contractual maturities of financial liabilities at the reporting date. The
amounts are gross and undiscounted:
Contractual cash flows

Carrying
As at 31st March 2018 6 months 6-12 1–2 years 2–5 years “More than Total
amount
or less months 5 years”
Non-current borrowings
Term loans from banks * 904,348 - - 119,634 477,380 307,334 904,348
9% non-cumulative redeemable preference 750,000 - - - 750,000 - 750,000
shares
Other non current financial liabilities 181,781 - - 127,743 44,630 9,408 181,781
Current borrowings - Loans from banks * 30,910 30,910 - - - - 30,910
Trade payables 782,989 616,650 166,339 - - - 782,989
Other current financial liabilities 698,476 654,597 43,879 - - - 698,476
Total 3,348,504 1,302,157 210,218 247,377 1,272,010 316,742 3,348,504

As at Carrying
31 March 2017
st amount 6 months or 6-12 months 1–2 years 2–5 years “More than Total
less 5 years”
9% non-cumulative redeemable 750,000 - - - 750,000 - 750,000
preference shares
Other non current financial 138,770 - - 96,293 32,713 9,764 138,770
liabilities
Current borrowings - Loans from 59,613 59,613 - - - - 59,613
banks *
Trade payables 592,993 521,126 71,867 - - - 592,993
Total 2,645,421 1,287,457 156,537 171,355 960,708 69,364 2,645,421
* Contractual maturities of these financial liabilities excludes interest payments.
iii. Market risk
Market risk is the risk that the future cash flows of a financial instrument will fluctuate because of changes
in market prices. Market risk comprises two types of risk: currency risk and interest rate risk. The objective
of market risk management is to manage and control market risk exposures within acceptable parameters,
while optimising the return.
158

Currency risk
Currency risk is the risk that the future cash flows of a financial instrument will fluctuate because of changes in
foreign exchange rates. The Company is exposed to the effects of fluctuation in the prevailing foreign currency
exchange rates on its financial position and cash flows. Exposure arises primarily due to exchange rate fluctuations
between the functional currency and other currencies from the Company’s operating, investing and financing
activities.
Exposure to currency risk
The summary of quantitative data about the Company’s exposure to currency risk, as expressed in Indian Rupees,
as at 31 March 2018 and 31 March 2017 are as below:
As at 31st March 2018

Particulars
USD EURO GBP CHF AUD JPY NPR
Financial assets
Trade receivables 3,546 260 2 18 1 3 43
3,546 260 2 18 1 3 43
Trade payables 1,654 74 12 4 3 4 -
1,654 74 12 4 3 4 -
As at 31 March 2017
Particulars
Financial assets
2,086 137 2 11 2 2 652
Trade payables 4,026 46 35 - 4 - 297
4,026 46 35 - 4 - 297
Sensitivity analysis
“A reasonably possible strengthening (weakening) of the Indian Rupee against below currencies at 31 March
would have affected the measurement of financial instruments denominated in a foreign currency and affected
equity and profit or loss by the amounts shown below. This analysis assumes that all other variables, in particular
interest rates, remain constant.“
Profit or loss Equity, net of tax

Particulars
Strengthening Weakening Strengthening Weakening
1% depreciation / appreciation in Indian Rupees
against following foreign currencies:
For the year ended 31st March 2018
159

Particulars
USD (18.91) 18.91 (18.91) 18.91
EUR (1.86) 1.86 (1.86) 1.86
GBP 0.10 (0.10) 0.10 (0.10)
CHF (0.15) 0.15 (0.15) 0.15
AUD 0.02 (0.02) 0.02 (0.02)
JPY 0.01 (0.01) 0.01
NPR (0.43) 0.43 (0.43) 0.43
Total (21.22) 21.22 (21.22) 21.22
st
For the year ended 31 March 2017
USD 19.40 (19.40) 19.40 (19.40)
EUR (0.91) 0.91 (0.91) 0.91
GBP 0.32 (0.32) 0.32 (0.32)
CHF (0.11) 0.11 (0.11) 0.11
AUD 0.02 (0.02) 0.02 (0.02)
JPY (0.02) 0.02 (0.02) 0.02
NPR (3.55) 3.55 (3.55) 3.55
Total 15.15 (15.15) 15.15 (15.15)
USD: United States Dollar, EUR: Euro, GBP: Great British Pound, CHF: Swiss Franc, AUD: Australian Dollar, JPY: Japanese Yen, NPR:
Nepalese Rupees
iii. Market risk
Interest rate risk
Interest rate risk is the risk that the future cash flows of a financial instrument will fluctuate because of changes in
market interest rates.
Exposure to interest rate risk
The Company’s interest rate risk arises majorly from the term loans from banks carrying floating rate of interest.
These obligations exposes the Company to cash flow interest rate risk. The exposure of the Company’s borrowings
to interest rate changes as reported to the management at the end of the reporting period are as follows:
Variable-rate instruments As at 31st March 2018 As at 31st March 2017

Term loans from banks (Non current) 904,348 312,657
Term loans from banks (Current) 30,910 59,613
Current maturities of borrowings 40,868 9,000
Total 976,126 381,270
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Cash flow sensitivity analysis for variable-rate instruments
A reasonably possible change of 100 basis points (bps) in interest rates at the reporting date would have increased
(decreased) equity and profit or loss by the amounts shown below. This analysis assumes that all other variables,
in particular foreign currency exchange rates, remain constant.

Particulars 100 bps 100 bps 100 bps 100 bps
increase decrease increase decrease
Interest on term loans from banks
For the year ended 31st March 2018 4 (4) 4 (4)
st
53 (53) 53 (53)
53. Capital Management

For the purpose of the Company’s capital management, capital includes issued equity share capital and all
other equity reserves attributable to the equity holders of the Company.
Management assesses the Company’s capital requirements in order to maintain an efficient overall
financing structure while avoiding excessive leverage. The Company manages the capital structure and
makes adjustments to it in the light of changes in economic conditions and the risk characteristics of the
underlying assets.
To maintain or adjust the capital structure, the Company may return capital to shareholders, raise new debt
or issue new shares.
The Company monitors capital on the basis of the debt to capital ratio, which is calculated as interest-
bearing debts divided by total capital (equity attributable to owners of the parent plus interest-bearing
debts).

Borrowings 935,258 372,270
9% non-cumulative redeemable preference shares 750,000 750,000
Less : Cash and cash equivalents (75,782) (338,737)
Adjusted net debt (A) 1,609,476 783,533
Total equity (B) 8,967,242 9,767,424
Adjusted net debt to adjusted equity ratio (A/B) 17.95% 8.02%
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54. Disclosure as per Ind AS 27 ‘Separate Financial Statements’
Investment in subsidiary*
Proportion of ownership interest

Company Name Country of incorporation As at As at
BSNL Tower Corporation Limited India 100 NA
* Equity investment in subsidiary is measured at cost as per the provisions of Ind AS 27 ‘Separate Financial Statements’.
55. Disclosure for government grant

During the current year, the Company has recognised income from revenue grants amounting to INR
47,930 lakh (31 March 2017: INR 52,689 lakh).
For capital grant, the Company has recognised income during the current year amounting to INR 31,213
lakh (31 March 2017: INR 31,895 lakh).
During the current year, the Company has not received any other form of government assistance (31 March
2017: INR Nil).
There are no unfulfilled conditions and other contingencies attaching to the government grants which are
recognized in the standalone financial statements.
56. Mobile tower business
“On 12 September 2017, the Union Cabinet decided to hive off mobile tower assets of the Company into a
separatesubsidiarycompanywhollyownedbyBSNL.InpursuanceofthisdecisionanddirectionsfromMinistryof
Communications, Department of Telecommunications (DoT) dated 25 September 2017, the Board of Directors
of BSNL has given its approval for incorporation of a new company as a wholly owned subsidiary of BSNL.
Accordingly, the Company has formed BSNL Tower Corporation Limited (wholly owned subsidiary of the
company) incorporated on 4 January 2018 with Authorised Share Capital of INR 1,000,000 lakh (Authorised
Equity Share Capital of INR 750,000 lakh and Authorised Preference Share Capital of INR 250,000 lakh)
and paid up capital of INR 0.17 Lakhs to take over the telecom tower infrastructure of BSNL. The Company
has paid INR 275 lakh as registration charges on behalf of the subsidiary.”
The Company is under the process of transferring telecom tower business to BSNL Tower Corporation
Limited. The information related to mobile tower services are included under ‘Cellular’ segment in Note
45.
57. Subsequent events
“On 1 August 2018, the Company has decided for closure of CDMA services (Wireless in local
loop (WLL)) in all service areas due to techno-economic considerations. The revenue from
CDMA services for year ended 31 March 2018 is INR 3,448 lakh (31 March 2017: 6,855 lakh).
The information related to CDMA services are inlcuded under ‘Cellular’ segment in note 45.
The Company is in the process of discontinuing CDMA services, the financial impact of which is currently
impracticable to ascertain.”
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58. Figures of the previous year have been regrouped or reclassified wherever necessary to conform to the
current years grouping and classification.

Sd/- Sd/-
Sd/-
Place : New Delhi Sujata Ray
Date : 4 October 2018 Director (Finance)
DIN: 07240022
Sd/-
P.D. Chirania
Sd/-
H.C. Pant
M.No. F- 2584
163
Independent Auditor’s Report 2018
To the Members of Bharat Sanchar Nigam Limited
Report on the Standalone Ind AS Financial Statements
1. We have audited the accompanying standalone Ind AS financial statements of Bharat Sanchar
Nigam Ltd (‘BSNL’ or ‘the Company’),which comprise the Balance Sheet as at March 31, 2018,
and the Statement of Profit and Loss(including Other Comprehensive Income), the Cash Flow
Statement and the Statement of Changes in Equity for the year then ended, and a summary of
significant accounting policies and other explanatory information (hereinafter referred to as
Standalone Ind AS Financial Statements), in which are incorporated the returns for the year ended
on that date audited by the branch (circle) auditors of the Company’s circles at 48 circles, out of
which 1 circle has been audited by us and remaining 47 circles are audited by respective circle
auditors appointed under section 139 of the Companies Act, 2013 (the ‘Act’) by the Comptroller
and Auditor General of India (C&AG).
Management’s Responsibility for the Standalone Financial Statements
2. The Company’s Board of Directors is responsible for the matters stated in section 134(5) of the
Companies Act, 2013 (“the Act”) with respect to the preparation of these standalone Ind AS
financial statements that give a true and fair view of the state of affairs (financial position), profit or
loss (financial performance including other comprehensive income), cash flows and changes in
equity of the Company in accordance with the accounting principles generally accepted in India,
including the Indian Accounting Standards (Ind AS) prescribed under Section 133 of the Act. This
responsibility also includes maintenance of adequate accounting records in accordance with the
provisions of the Act for safeguarding the assets of the Company and for preventing and detecting
frauds and other irregularities; selection and application of appropriate accounting policies;
making judgments and estimates that are reasonable and prudent; and design, implementation
and maintenance of adequate internal financial controls, that were operating effectively for
ensuring the accuracy and completeness of the accounting records, relevant to the preparation
and presentation of the standalone Ind AS financial statements that give a true and fair view and
are free from material misstatement, whether due to fraud or error.
Auditor’s Responsibility
3. Our responsibility is to express an opinion on these standalone Ind AS financial statements based
on our audit, in which are incorporated the returns audited by 48 circle auditors.
4. We have taken into account the provisions of the Act, the accounting and auditing standards and
matters which are required to be included in the audit report under the provisions of the Act and
the Rules made thereunder.
5. We conducted our audit of the standalone Ind AS Financial Statements in accordance with the
Standards on Auditing specified under Section 143(10) of the Act. Those Standards require that we
comply with ethical requirements and plan and perform the audit to obtain reasonable assurance
164
about whether the standalone Ind AS financial statements are free from material misstatement.
6. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures
in the standalone Ind AS financial statements. The procedures selected depend on the auditor’s
judgment, including the assessment of the risks of material misstatement of the standalone Ind AS
financial statements, whether due to fraud or error. In making those risk assessments, the auditor
considers internal financial control relevant to the Company’s preparation of the standalone Ind
AS financial statements that give a true and fair view in order to design audit procedures that
are appropriate in the circumstances. An audit also includes evaluating the appropriateness of
the accounting policies used and the reasonableness of the accounting estimates made by the
Company’s Directors, as well as evaluating the overall presentation of the stand alone Ind AS
financial statements.
7. We believe that the audit evidence obtained by us and the audit evidence obtained by other
circle auditors in terms of their reports referred to in paragraph 41 of the Other Matters paragraph
below, is sufficient and appropriate to provide a basis for our qualified audit opinion on the
standalone Ind AS financial statements.
Basis for Qualified Opinion
Assets and Liabilities taken over from Department of Telecommunication (‘DoT’) and the amounts
receivable and payable to DoT
8. As detailed in note 38 and 41.1 to the standalone Ind AS financial statements, assets and liabilities
(including contingent liabilities) taken over from DoT on 1 October 2000 have been verified and
valued by the management based on internal calculations. These are subject to reconciliations
and confirmation from DoT as regards to value and classification. The consequential impact
on the standalone Ind AS financial statements, if any, as a result of the same is presently not
ascertainable. Our Audit Report on the Ind AS financial statements for the previous year ended
31 March 2017 was alsoqualified in respect of this matter.
9. As detailed in note 42 to the standalone Ind AS financial statements, amounts due from and to DoT,
included in current assets and current liabilities aggregating to Rs. 2,43,013 lakhs (31st March
2017 Rs. 2,20,052 lakhs) and Rs. 31,085 lakhs (31st March 2017 Rs. 37,316 lakhs), are subject to
confirmation, reconciliation and consequential adjustment. The impact of the adjustments, if any,
on the standalone Ind AS financial statements is presently not ascertainable. Our audit report on
the Ind AS financial statements for the previous year ended 31 March 2017 was also qualified in
respect of this matter.
Fair Valuation of Freehold Land
10. (i) In pursuance of Ind AS 101-“First Time Adoption of Indian Accounting Standards” the
company had selectively fair valued only certain freehold lands as at 1st April 2015,
resulting in upward valuation of freehold lands under Property, Plant & Equipment and
the corresponding increase to Other Equity by a sum of Rs 69,86,449 lakhs. Fair valuation
of only certain lands is non-compliance of Ind AS 101 First Time Adoption of Indian
Accounting Standards.
(ii) Non compliances had also been reported by the Circle Auditors in the procedure adopted
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and non-application of uniform policies with regard to fair valuation of freehold lands.
The consequential impact of adjustments, if any, on the standalone Ind AS financial

statements is presently not ascertainable. Our Audit Report on the Ind AS financial
statements for the previous year ended 31 March 2017 was also qualified in respect of this
matter.
Revenue
11. i) The company has not applied definition of “Default” and “Assessment of Credit Risk”
consistently to all the financial instruments in terms of Ind AS 109 Financial Instruments.
Further, there is no renegotiation or modification of the contractual cash flows on trade
receivables from Other Government and/or PSU sector entities. We have also not
been provided with reasonable and supportable information about past events, current
conditions, forecasts of future economic conditions including any demonstrable recovery
pattern and indicators that led the management to change its perception in the current year
2017-2018 for considering trade receivables, from Other Government and/ or PSUs sector
entities, as having low credit risk vis-à-vis the corresponding previous year that made the
management to write back in the current year 2017-2018, the entire accumulated loss
allowance provided in the earlier year(s).
We accordingly conclude that the credit risk on such financial instruments (i.e. trade
receivables from Government and/ or PSU sector entities) has not decreased significantly
since initial recognition. Consequently, the write back of loss allowance in the current year
relating to receivables from Government and/ or PSU sector entities, is not in consonance
with the Ind AS 109 Financial Instruments. This is also not in consonance with the
Accounting Policies as stated in Note No 2.2(p) of the Significant Accounting Policies of
the company.
We were not supplied the financial information about the write back of loss allowance of
trade receivables from other Government and/or PSU sector entities as at March 31, 2018
and accordingly we are unable to comment upon the impact of adjustments made for these
amounts by the management.
ii) Net amount receivable from Mahanagar Telephone Nigam Limited (MTNL) as per the
Standalone Ind AS financial statements is Rs 3,47,024 lakhs (31 March 2017 Rs 2,55,188
lakhs), being amounts recoverable from MTNL Rs 3,62,140 lakhs, amount payable and
provision for amounts payable to MTNL Rs 15,116 lakhs.MTNL however, claims a sum of
Rs 3,38,726 lakhs as recoverable from the Company in the balance confirmation certificate.
The required financial information to verify such balances as at March 31, 2018 was not
provided to us by the company and accordingly we are unable to comment upon the
impact of adjustments in the financial statements that would be required pursuant to the
eventual resolution of such balances inter-se the company and MTNL.
12. As reported by auditors of 2 circles, the income from recharge coupons, prepaid calling cards,
internet connection cards, sancharnet cards and stock of recharge coupons and prepaid calling
cards are subject to reconciliations. In the absence of specific details, the impact of adjustment, if
any, on Ind AS financial statements is presently not ascertainable. Our audit report on the Ind AS
166
financial statements for the previous year ended 31 March 2017 was also qualified in respect to
this matter.
13. One circle auditor has reported non charging of expenditure amounting to Rs 615.20 lakhs to
revenue and writing off the same from the provisions, thereby understating the Loss and Provisions
by a sum of Rs 615.20 lakhs.
14. As stated in note 2.2-(p) to the significant accounting policies, certain items of revenue are
accounted for on cash basis instead of the accrual basis of recognition of revenue which is not
in accordance with the generally accepted accounting principles in India. The impact of the
adjustment, if any, in respect thereof on revenue, license fee, trade receivables and loss for the
year is presently not ascertainable. Our audit report on the Ind AS financial statements for the
previous year ended 31 March 2017 was also qualified in respect of this matter.
15. One circle auditor has reported insufficient documentary evidence and non-providing the basis
for booking of Income in respect of NFS and LWE projects amounting to Rs 10,474.50 lakhs.
Consequential impact on the standalone Ind AS financial statements, if any, as a result of the same
is presently not ascertainable.
16. 1 circle auditor has reported that Fixed Assets taken over from DoT which were not accounted for
in the standalone financial statements of the circle have been sold and treated as Sale of Scrap.
The consequential impact of adjustments, if any, on the standalone Ind AS financial statements is
presently not ascertainable.
Property, Plant and Equipment
17. As reported by auditors of 12 circles, Capital Work-in-Progress, inter alia, includes balances
pending capitalization for long-periods of time owning to pending analysis of status, value and
obtaining of commissioning certificates. The consequential impact on the Capital Work-in-
Progress, Property Plant and Equipment, depreciation and amortization and loss for the year, if
any, is presently not ascertainable. Our audit report on the Ind AS financial statements for the
previous year ended 31 March 2017 was also qualified in respect of this matter.
18. Circle Auditors have reported non-capitalisation of completed Capital Work in Progress in the
books of accounts, though being physically used, due to non-availability of Capital Budget or due
to closure of accounting periods. This has resulted in overstatement of Capital Work in Progress,
and understatement of Property, Plant and Equipment, Depreciation and losses by an amount that is
unascertainable due to insufficient information.
19. Company has capitalised an amount of Rs. 57,873 lakhs to Property Plant and Equipment, which
is not in compliance with Ind AS 23-Borrowing Cost. The interest costs on borrowed funds in
respect of the Property, Plant and Equipment which were capitalized in the earlier years have
not been delimited to the extent of bringing them to their being put to use by the company. The
capitalizing of such interest is also made in the current year without any basis. This has resulted
in overstatement of Property, Plant and Equipment, Capital Work in Progress, and understatement
of losses by an amount that is unascertainable due to insufficient information.
Further the auditors of 14 circles have reported that Borrowing Cost pursuant to applicable Ind AS
has been capitalised based upon ATD/ communication/ excel sheet received from Head Office.
167
These auditors have expressed their inability to verify the correctness of these borrowing costs for
want of calculations/ details. Our Audit Report on the Ind AS financial statements for the previous
year ended 31 March 2017 was also qualified in respect of this matter.
20. Capital Work in Progress (Stores) amounting to Rs 6,52,924 lakhs (31 March 2017 4,36,505
lakhs) also includes Inventory items which are being used in the repair and maintenance of the
projects. Such Inventories have not been separately classified under the head Current Assets. In
the absence of sufficient audit evidences, we are unable to comment upon the impact of the same
on the Capital Work in Progress (Stores) and Inventory in Current Assets.
21. As reported by auditors of 8 circles, in the absence of information in respect of certain items
of Property Plant and Equipment capitalized, particularly batteries, it could not be established
whether assets capitalized were on account of replacement/ extension of an existing asset or
additional acquisition of a new asset and hence the consequential impact of the same on the
classification/ value of the respective asset, depreciation and amortization, expenses and loss for
the year, if any, is presently not ascertainable. Our audit report on the Ind AS financial statements
for the previous year ended 31 March 2017 was also qualified in respect of this matter.
22. The leasehold land as identified and valued by the respective circles have been incorporated
in the books of accounts and amortised with effect from the date of formation of the Company.
Hence, in respect of the lands still not identified and/ or duly incorporated in the books of accounts
of the respective circles, the consequential impact on value of Property Plants and Equipment,
depreciation and amortization and loss for the year, if any, is presently not ascertainable. Our
audit report on the Ind AS financial statements for the previous year ended 31 March 2017 was
also qualified in respect of this matter.
23. As detailed in note 41.2 to the financial statements, auditors of 4 circles have reported on the
expired/ non-renewal of leases on lands on which the Company had constructed buildings and
the fact that management has not made any provision for the surrender value/ written down
value of the aforementioned buildings in the anticipation of the ultimate renewal of the leases,
the consequential impact of adjustment on Property Plant and Equipment, depreciation and
amortization and loss for the year, if any, is presently not ascertainable. Our audit report on the
Ind AS financial statements for the previous year ended 31 March 2017 was also qualified in
24. As stated in note 3(i) and 41.3 to the financial statements, Property Plant and Equipment, inter alia,
includes land pertaining to 5 circles, purchased/ acquired on leasehold/ freehold basis through
various authorities, the title deeds of which are yet to be executed in the name of the Company.
Our audit report on the Ind AS financial statements for the previous year ended 31 March 2017
was also qualified in respect of this matter.
3 Circle Auditors have reported that Title deeds are in the name of DoT and 2 Circle auditors have
reported non-availability of title deeds.
25. The accounting policy of the Company as stated in note 2.1(c) to the financial statements with
respect to the decommissioned assets—now considered as Asset held for sale—has not been
uniformly applied across all circles. In 6 circles, the decommissioned assets are not recorded at
lower of the cost or net realisable value.
168
While in 3 circles, the decommissioned assets have not been appropriately adjusted from the
block of Property Plant and Equipment and depreciation and amortization is still being charged
on such decommissioned assets. In the absence of sufficient details, we are unable to comment
upon the impact of adjustment on the Property Plant and Equipment, current assets, depreciation
and amortization and loss for the year, if any, arising out of the same. Our audit report on the Ind
AS financial statements for the previous year ended 31 March 2017 was also qualified in respect
of this matter.
Certain Circle Auditors have reported that WIMAX and CDMA equipment, though not being
used have not been considered as decommissioned assets. The consequential impact on value
of Property Plants and Equipment, depreciation and amortization and loss for the year, if any, is
26. (i) As reported by auditors of 19 circles, the Company has not consistently adhered to
capitalizing the overhead expenses specifically attributable to the capital work-in- progress
but has recorded the same on estimated/ fixed percentage/ payment basis:
(ii) As reported by auditors of 3 circles, the company capitalizes the assets on periodic basis
instead of at the ready to use date; and
(iii) Accounting policies regarding capitalization, disposal, depreciation and amortization of

Property Plants and Equipment are not uniformly applied in case of 9 circles.
1 circle auditor has reported that Overhead Costs have not been included in Capital Work
in Progress and have instead been charged to Revenue. The management in its reply has
stated that due to Budget constraints, the expenses could not be debited to CWIP. This
has resulted in overstatement of Expenditure and losses by a sum of Rs. 3,984 lacs and
understatement of Capital Work in Progress by the like amount.
The resultant impact of the above non compliances with the standards on the value of
Property Plant and Equipments, Capital Work-in-Progress, Depreciation and amortization
and loss for the year, if any, are presently not ascertainable. Our audit report on the Ind
AS financial statements for the previous year ended 31 March 2017 was also qualified in
27. As detailed in Note 3, during the financial year 2017-18 the company has changed the classification
for decommissioned assets from Property Plant and Equipment to Assets held for Sale. Prior to this
change Decommissioned assets were disclosed at written down value and provision was made
for diminution in the value of decommissioned assets. The company has during the year, based
upon an internal assessment, the details whereof were not provided to us, classified assets held
for sale and these have been valued at lower of carrying amount and net realisable value, and the
corresponding gain or loss on the assets held for sale is recorded in ‘Excess liabilities written back
no longer required’ under ‘Other income’ (refer note 33) and ‘Write off and losses (other than bad
debts)’ under ‘Other expenses’ (refer note 37) respectively.
In terms of Ind AS 105 Non-Current Assets Held for Sale and Discontinued Operations an entity
shall classify a non-current asset (or disposal group) as held for sale if its carrying amount will be
recovered principally through a sale transaction rather than through continuing use. The asset
(or disposal group) must be available for immediate sale in its present condition subject only
169
to terms that are usual and customary for sales of such assets (or disposal groups) and its sale
must be highly probableduly indicated by existence of management’s committed plan to sell
the asset (or disposal group), and commencement of an active programme to locate a buyer and
complete such plan. Further, the asset (or disposal group) must be actively marketed for sale at
a price that is reasonable in relation to its current fair value. Thus, an asset (or disposal group)
cannot be classified as a non-current asset (or disposal group) held for sale, merely because the
entity intends to sell it in a distant future.This classification is not in accordance with Ind AS
105.This has resulted in understatement of Provision for Diminution in the value of Asset held
for sale, and understatement of losses by recognition of unrealised gains the amount of which is
Current Assets and Current Liabilities
28. The company does not follow a system of obtaining confirmation and performing reconciliation
of balances in respect of trade receivable, deposits with government departments/ companies
(inter-alia, including Mahanagar Telephone Nigam Limited and Bharat Broadband Network
Limited), claims recoverable from/ payable to DoT (including license fees payable as detailed
in note 48(A) of the Ind AS financial statements) or to/ from other government departments/
authorities, subscriber/ customer deposit accounts, trade payable and claims payable. Due to
non- availability of confirmation(except MTNL), and reconciliations of the aforementioned
account balances, we are unable to quantify the impact of the adjustments, if any, arising from
reconciliation and settlement of account balances on the financial statements. Our audit report
on the Ind AS financial statements for the previous year ended 31 March 2017 was also qualified
in respect of this matter.
One circle auditor has reported receipt of debtor’s payment of that circle by the other Circle,
without issuing any ATC to this Circle.
29. (i) As reported by auditors of certain circles, there are unquantifiable differences between
the general ledger/ trial and accounting records pertaining to loans and advances, current
assets and current liabilities. The impact on the Ind AS financial statements, if any, owing
to the aforementioned non-reconciliations is presently not ascertainable. Our audit report
on the Ind AS financial statements for the previous year ended 31 March 2017 was also
qualified in respect of this matter.
(ii) As detailed in Note No 13(a), the differences in General Ledger Balance and Subsidiary ledger
of Receivables is Rs 9,783 lakhs (31 March 2017-1,678 lakhs). The difference of balances is
incorrectly stated since only the net differences has been stated. The gross differences are
amounting to Rs. 21,017.54 Lakhs (31 March 2017-Not Available). The impact on the Ind
AS financial statements, if any, owing to aforementioned non-reconciliations is presently
not ascertainable.
30. Circle Auditors have reported lack of suitable system for issue, recording, movement, physical
verification of Inventories/ Capital Work in Progress (Stores). The consequential impact on the Ind
AS financial statements, if any, as a result of the same is presently not ascertainable.
31. As reported by auditor of 4 circles, there are differences in the inventory records between stores
ledger and general ledger/ trial balance, the impact of the same is currently not ascertainable. Our
audit report on the Ind AS financial statements for the previous year ended 31 March 2017 was
170
32. As reported by auditor of 3 Circles, there has been non-adherence to the Company’s policy of
valuation of inventory on weighted average method as stated in note 2.2(i) to the standalone Ind
AS financial statements. The impact of the adjustment, if any, on inventory, consumption and loss
for the year is presently not ascertainable. Our audit report on the Ind AS financial statements for
the previous year ended 31 March 2017 was also qualified in respect to this matter.
33. 8 Circle auditors have reported non identification of Slow Moving, Non Moving, Obsolete and
Damaged items of Inventory. The impact of the adjustment, if any, on inventory, consumption,
Provisions and loss for the year is presently not ascertainable.
Inter/ Intra Circle Remittance Account
34. As detailed in note 43 to the Ind AS financial statements, the Inter-Circle/ Unit remittance
balances amounting to Rs. 7,919 lakhs (Debit) (previous year Rs. 9,020 lakhs (Credit)) are yet to
be reconciled. Pending such reconciliations, the possible cumulative impact of the adjustments, if
any, on assets and liabilities and the current and prior year(s) income and expenditure is presently
not ascertainable. Our audit report on the Ind AS financial statements for the previous year ended
31 March 2017 was also qualified in respect of this matter.
License Fee, Spectrum Charges, Inter Connect Usage Charges
35. (i) As stated in note 39.3 to the financial statements, the Company’s license and spectrum, fees
payable to DoT for the year ended 31 March 2018 amounts toRs. 1,74,338 lacs (previous
year Rs. 2,31,086 Lacs) and is calculated on the Adjusted Gross Revenue (‘AGR’) which
is determined by the management by excluding the interest income on income-tax refund
received during the year amounting to Rs 1,864 lacs (Previous Year 36,531 lakhs). In our
opinion, the license fees is understated by Rs. 149.12 lakhs (Previous Year 3,054.50 lakhs)
since such interest income has not been included in determination of AGR for computing
the license fees. Had the aforesaid expenditure been accounted for, license and spectrum
fees and loss for the year ended 31 March 2018 and current liabilities as at that date would
have been higher by Rs. 149.12 lakhs (Previous Year 3,054.50 lakhs) and the reserve and
surplus as at that date would have been lower by the same amount. Our audit report on the
Ind AS financial statements for the previous year ended 31 March 2017 was also qualified
in respect to this matter.
(ii) As reported by auditor of 1 circle, interest received on security deposits is set off directly
from the bills and the interest income is not ascertainable for recognizing liability of license
fees, auditor of 4 circle has reported:
i) Income from NOFN project,
ii) Profit from Construction Contracts,
iii) Liquidated Damages recovered from contractors/ suppliers and reduced from
relevant revenue expenditure,have not been included for the calculation of License
and Spectrum Fees.
Further, auditors of 5 circles have reported that revenue from NLD/ ILD is not based on
actual usage of pulse and the license fees is based upon estimated basis. Consequential
171
impact on the Ind AS financial statements, if any, as a result of the same is presently not
ascertainable. Our audit report on the Ind AS financial statements for the previous year
ended 31 March 2017 was also qualified in respect to this matter.
Provisions and contingent liabilities
36. The provisions and the disclosures with regard to matters under litigations have been made based
upon the management estimates. Based upon the report of auditors of 12 circles, sufficient and
appropriate audit evidence for examining and verifying the quantum of contingent liabilities
disclosed in note 50 to the standalone Ind AS financial statements has not been obtained. In the
absence of the adequate details and documents and pending the responses to our confirmation
requests in respect of the litigations, the impact of adjustments/ disclosure, if any, on the standalone
Ind AS financial statements is presently not ascertainable. Our audit report on the Ind AS financial
statements for the previous year ended 31 March 2017 was also qualified in respect of this matter.
37. As stated in Note No 49, certain claims of MTNL on various accounts are under reconciliation
and settlement process. In the absence of sufficient details and audit evidences in respect of the
amount of such claims, the impact of adjustments/ disclosure, if any, on the standalone Ind AS
financial statements is presently not ascertainable.
38. As reported by 13 circles, the circles have not made provision for the disallowance of subsidy
claimed from Universal Service Obligation Fund (‘USOF’). The impact of the adjustment, if
any, in respect thereof on current assets and loss for the year is presently not ascertainable. The
consequential impact of adjustments, if any, on the standalone Ind AS financial statements is
presently not ascertainable. Our audit report on the Ind AS financial statements for the previous
Miscellaneous
39. As detailed in Note no 12, the company had pursuant to the Government of India, Ministry
of Communications and IT, Department of Telecommunications order, made an investment of
Rs. 20,000 lakhs [Rupees Twenty Thousand Lakhs] in the 7% Redeemable cumulative preference
shares each of Rs. 100/– fully paid up, in the financial year 2002–2003 in ITI Limited. The company
explains that ITI Limited will redeem preference shares immediately on release of the financial
assistance by the Government of India to ITI Limited as a part of revival package. Such preference
shares have a specified (contractual) term and considering the observable Level 2 inputs, in
terms of Ind AS 113, Fair Value Measurement, including the condition of such investment and
significant decrease in the volume or level of activity for in relation to normal market activity, for
substantially the full term of such investment, we report that the company has not provided for
the impairment loss on such investment as the transaction price does not represent its fair value.
This accordingly has resulted in understatement of net loss by Rs. 20,000 lakhs and overstatement
of corresponding investments by the same amount for the financial year 2017-2018.
40. The Company has not complied in respect of the following Ind AS notified under Section 133
of the Act, read with Rule 3 of the Companies (Indian Accounting Standards) Rules, 2015 (as
amended).
i. As reported by auditors of 2 circles, the expenses, incomes, assets and liabilities are
not properly disclosed under the reportable segments as per the Ind AS 108-“Operating
172
Segments”. In our opinion, the same does not give true and fair disclosure of the segment-
wise operations of the Company as required by the aforementioned Ind AS. Our audit
report on the Ind AS financial statements for the previous year ended 31 March 2017 was
ii. The company has not carried out any techno-economic assessment during the year ended
31 March 2018 and hence identification of impairment loss and provision thereof, if any,
has not been made. The same is not in accordance with the notified Ind AS 36 “Impairment
of Assets”. The consequential impact of adjustment, if any, on the standalone Ind AS
financial statements is currently not ascertainable. Our audit report on the Ind AS financial
matter.
iii. The accounting for capital and revenue grant in accordance with the notified Ind AS
20 “Accounting for Government Grants and Disclosure of Government Assistance” is
not followed consistently. In the absence of specific details, the consequential impact
of adjustment, if any, on the standalone Ind AS financial statements is presently not
ascertainable. Our audit report on the Ind AS financial statements for the previous year
ended 31 March 2017 was also qualified in respect of this matter.
iv. The accounting policy as referred to in note 2.2(m)(iii) to the statements with respect to
the liability on account of post-retirement medical benefits of employees including retired
employees, a defined benefit plan, is recognized on actual basis in respect of bills received
by the company instead of recognizing the liability for the same as the present value of
the defined benefit obligation at the balance sheet date calculated on the basis of actuarial
valuation in accordance with the notified Ind AS–19 “Employee Benefits”. The consequential
impact of adjustment, if any, owing to this non-compliance on the standalone Ind AS
financial statements is presently not ascertainable. Our audit report on the Ind AS financial
matter.
v. As reported by 5 circles, contract revenue and contract costs pertaining to construction
contracts have not been accounted for in accordance with the notified Ind AS 11 “Construction
Contracts”. In the absence of specific details, the consequential impact of adjustment, if
any, on the standalone Ind AS financial statements is presently not ascertainable. Our audit
report on the Ind AS financial statements for the previous year ended 31 March 2017 was
vi. As detailed in Note No. 41(2) the company has certain leasehold land, the lease tenure of
which in earlier year(s) and is not renewed in current year. Pending renewal of such lease,
period and non-availability of sufficient information about the timeline by which it would
be renewed, the classification of such land made by the company as finance lease is not in
conformity with Ind AS 17 “Leases”. 4 circle auditors have reported that certain provisions
including disclosure requirements as per Ind AS 17 “Leases”, have not been complied
with. In the absence of specific details, the consequential impact of adjustments, if any, on
the standalone Ind AS financial statements is presently not ascertainable. Our audit report
on the Ind AS financial statements for the previous year ended 31 March 2017 was also
173
41. (i) The company has not identified and restated the prior year financial statements with regard
to prior period transaction recorded in the current financial year in violation of Ind AS-8 Prior
Period items. In the absence of specific details, the consequential impact of adjustments, if
any, on the standalone Ind AS financial statements is presently not ascertainable.
(ii) As stated in the note 2.2(v) of the financial statements, individual transactions of income/
expenditure exceeding Rs. 5 lacs, are considered for evaluation as prior-period items. The
revenue and expenditure for the current year, inter alia, includes amount pertaining to
prior period(s) as reported by auditors of 7 circles. This is not in accordance with the Ind
AS 8 “Accounting Policies, Changes in Accounting Estimates and Errors”. In the absence of
specific details, the consequential impact of adjustments, if any, on the standalone Ind AS
financial statements is presently not ascertainable. Our audit report on the Ind AS financial
matter.
42. As reported by 11 circles and detailed in note 28 to the standalone Ind AS financial statements,
these circles have not identified units covered under Micro, Small and Medium Enterprises
Development Act, 2006 (‘MSMED Act, 2006) and hence disclosures as required under the
MSMED Act, 2006 have not been given. The consequential impact of the same on the standalone
Ind AS financial statement is presently not ascertainable. Our audit report on the Ind AS financial
statements for the previous year ended 31 March 2017 was also qualified in respect of this matter.
43. The disclosure requirements of the Schedule III, Division II of the Act have not been properly
adhered to in the presentation and disclosure of standalone Ind AS financial statements of the
Company in respect of classification of assets/ liabilities into current and non-current and secured
and unsecured, whether applicable; categorization of assets/ liabilities into appropriate captions;
changes in inventory; related party; capital and other commitments and expenditure and earnings
in foreign currency. Our audit report on the Ind AS financial statements for the previous year
44. 36 Circle auditors have reported non-compliance of Goods and Service Tax (GST) provisions
with regard to charging, deposition, availing Input Tax Credit, reconciliation of GST returns with
books of accounts, identification of creditors remaining beyond 180 days from the date of supply
for reversal of Input Credit and availing of Transitional Credit on CENVAT. In the absence of the
appropriate details, we are presently unable to ascertain the impact, if any, on the adjustment or
disclosures to be included in these standalone Ind AS financial statements.
45. As reported by auditors of 13 circles, compliances with regard to deposition, deduction,

reconciliation of service tax, tax deducted at source and value added tax are pending to be made.
In the absence of specific details, we are unable to comment on its consequential impact, if any,
on the standalone Ind AS financial statements. Our audit report on the Ind AS financial statements
for the previous year ended 31 March 2017 was also qualified in respect of this matter.
46. As detailed in notes (a) and (b) of the Cash Flow Statement, certain assumption have been made
for the purpose of preparation of the Cash Flow Statement. In the absence of the appropriate
details, we are presently unable to ascertain the impact, if any, on the adjustment/ disclosures
in the Cash Flow Statement. Our audit report on the Ind AS financial statements for the previous
174
47. Certain subsequent events or circumstances may have occurred between the auditor’s report date
of the respective circles of the company and that of this audit report. Such events or circumstances
could significantly affect the accompanying Ind AS financial statements or the related disclosures
forming part of these standalone Ind AS financial statements of the company. In the absence of
sufficient appropriate audit evidence in respect of the other circles, the impact of adjustments, if
any, or disclosures to be included in these standalone Ind AS financial statements of the company
cannot be ascertained. Our audit report on the Ind AS financial statements for the previous year
48. The company has not complied with Ind AS 16 “Property, Plant and Equipment” by not attributing
the dismantling costs to each part of an item of Property, Plant and Equipment with the cost that
is significant in relation to the total cost of the item. Auditors of 4 circles have reported that value
considered for Asset Retirement Obligation has been generated by internal department which is
neither certified by any Certified Valuer, nor calculated in appropriate method and the same has
been calculated on estimated basis. The impact of the adjustment, if any, in respect thereof on
asset, depreciation and loss for the year is presently not ascertainable. Our audit report on the Ind
AS financial statements for the previous year ended 31 March 2017 was also qualified in respect
of this matter.
Qualified Opinion
49. In our opinion and to the best of our information and according to the explanations given to us
and based on the consideration of the reports of the other circle auditors on the standalone Ind
AS financial statements of the circles as noted below, except for the effects/ possible effects of
the matters described in the Basis for Qualified Opinion paragraph, the aforesaid standalone Ind
AS financial statements give the information required by the Act in the manner so required and
give a true and fair view in conformity with the accounting principles generally accepted in India
including the Ind AS, of the state of affairs (financial position) of the company as at 31st March
2018 and its loss (financial performance including other comprehensive income), its cash flows
and the changes in equity for the year ended on that date.
Matter of Emphasis
50. Reference is invited to Note 56 of the Notes to Accounts, whereby in terms of the decision of the
Union Cabinet, the Tower Business of the company is to be hived off into a separate Subsidiary
company. The hiving off of tower business may have an adverse effect on the gross revenues and
profitability of the company. During the financial year the company has direct revenues of Rs
80,390 lakhs (31 March 2017- 49,621 lakhs) from tower business.
Our report is not qualified on that matter.
Other Matters
51. We did not audit the financial statements of 47 circles included in the standalone Ind AS financial
statements of the company whose financial statements reflect total asset including intra/ inter circle
remittances of Rs. 70,91,895 lakhs as at 31st March 2018 and total revenues of Rs. 24,81,356
lakhs for the year ended on that date. The Ind AS financial statements of these circles have been
audited by the circle auditors whose reports, except the audited standalone Ind AS financial
statements of 1 circle,have been provided to us by the management and our opinion in so far as
175
it relates to the amounts and disclosures included in respect of these circles is based solely on the
report of such circle auditors and the management.
Report on Other Legal and Regulatory Requirements
52. As required by the Companies (Auditor’s Report) Order, 2016 (“the Order”), issued by the
Central Government of India in terms of sub-section (11) of section 143 of the Act, we give in the
“Annexure I” a statement on the matters specified in paragraphs 3 and 4 of the Order.
53. As required by section 143(5) of the Act, we give in “Annexure II” a statement based on the
directions issued and matters specified by the Comptroller and Auditor General of India.
54. Further to our comments in Annexure I and II, as required by section 143 (3) of the Act, and based
on the Auditors report of the circles, we report that:
a. We have sought and, except for the matters/ effects/ possible effects of the matters described
in the Basis for Qualified Opinion paragraph,obtained all the information and explanations
which to the best of our knowledge and belief were necessary for the purpose of our audit;
b. Except for the effects/ possible effects of the matters described in the Basis for Qualified
Opinion paragraph, inour opinion, proper books of account as required by law have been
kept by the Company so far as it appears from our examination of those books and reports
of other auditors;
c. The matters described in the Basis for Qualified Opinion para above, in our opinion may
have an adverse effect on the functioning of the company.
d. The reports on the accounts of the circles of the company audited under section 143(8) of
the Act by the Circle Auditors have been sent to us and have been properly dealt with by
us in preparing this report.
e. Except for the effects/ possible effects of the matters described in the Basis for Qualified
Opinion paragraph, the standalone Ind AS financial statements dealt with this report are in
agreement with the books of accounts.
f. Except for the effects/ possible effects of the matters described in the Basis for Qualified
Opinion paragraph, in our opinion, the aforesaid standalone Ind AS financial statements
comply with the Indian Accounting Standards prescribed under section 133 of the Act.
g. Since, the company is a Government Company, section 164(2) of the Companies Act,
2013 regarding obtaining written representations from the directors of the Company, is not
applicable to the company in terms of notification no. GSR-463(E), issued by Ministry of
Corporate Affairs;
h. The qualification relating to maintenance of accounts and other matters connected therewith
are as stated in the Basis for Qualified Opinion paragraph.
i. With respect to the adequacy of the internal financial controls over financial reporting of
the Company and the operating effectiveness of such controls, refer to our separate report
in “Annexure-III”; and
176
j. With respect to the other matters to be included in the Auditor’s Report in accordance with
Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion and to the best
of our information and according to the explanations given to us:
i. Except for the effects/ possible effects of the matters described in paragraph 37of the
Basis of Qualified Opinion above, as detailed in Note 49 to the standalone Ind AS
Financial statements, the Company has disclosed the impact of pending litigations on
its financial position.
ii. The Company did not have any long term contracts including derivative contracts for
which there were any material foreseeable losses;
iii. Therewere no amounts which were required to be transferred to the Investor
Education & Protection Fund by the Company.
For ANDROS & Co.

Firm’s Registration No.:008976N
Sd-/
(Puneet Gupta)
Partner
Membership No.: 093714
Place : New Delhi

Date : 4th October, 2018
177
Annexure I to the Independent Auditor’s Report of even date to the members of Bharat Sanchar
Nigam Ltd on the Standalone Ind AS financial statements for the year ended 31 March 2018
Annexure I
Based on the audit procedures performed for the purpose of reporting a true and fair view on the
Standalone Ind AS financial statements of the Company and taking into consideration the information
and explanations given to us and the books of account and other records examined by us in the normal
course of audit and based on the comments in auditor’s reports of all the circles and to the best of our
knowledge and belief, we report that:
(i) (a) The company has maintained proper records showing full particulars, including quantitative
details and situation of fixed assets (presently referred as Property, Plant and Equipment)
except in case of 14 circles, where such records have either not been maintained or are not
appropriately maintained.
(b) In case of 22 circles, the fixed assets (presently referred as Property, Plant and Equipment) have
been physically verified by the management during the year and no material discrepancies
were noticed on such verification. In our opinion, the frequency of verification of the fixed
assets (presently referred as Property, Plant and Equipment) is reasonable having regard to
the size of the company and the nature of its assets.
Further, in case of 2 circles the fixed assets(presently referred as Property, Plant and
Equipment) have been physically verified by the management during the year but in our
opinion, the frequency of verification of the fixed assets (presently referred as Property,
Plant and Equipment) is not reasonable having regard to the size of the company and the
nature of its assets.
In case of 9 circles, the fixed assets (presently referred as Property, Plant and Equipment)
have not been physically verified by the management during the year. In case of 15 circles
though the management has conducted physical verification of fixed assets(presently
referred as Property, Plant and Equipment) but no documentary evidence was provided.
Hence, in respect of the aforementioned 24 circles, we are unable to comment on the
discrepancies, if any, which could have arisen on such verification.
(c) 5 circles does not hold any immovable property (in the nature of ‘Property Plant and
Equipment) and accordingly the provisions of clause 3(i)(c) of the Order are not applicable
in respect of these circles.
In case of 5 circles, the title deeds of all the immovable properties (which are included
under the head fixed assets presently referred as Property Plant and Equipment) are held in
the name of the Company.
In case of 10 circles, the title deeds of all the immovable properties (which are included
under the head fixed assets presently referred as Property Plant and Equipment) are held in
the name of the Company except for certain properties which were acquired or taken over
from Department of Telecommunication(DoT), Government of India, in which case the
transfer of title deeds in the name of the Company are still pending, out of which, 3 circles
have provided details of the immovable properties which are not held in the name of the
178
Company as detailed in Appendix I.
Further in case of 9 circles, the title deeds of all the immovable properties (which are
included under the head fixed assets presently referred as Property Plant and Equipment)
are held in the name of the Company except in case of certain properties.
In case of 8 circles, none of the title deeds of the immovable properties (which are included
under the head fixed assets presently referred as Property Plant and Equipment) are held
in the name of the Company. Further in case of 11 circles, in the absence of availability of
proper details and title deeds, the auditors are unable to comment upon this clause of the
order. One circle has not commented upon this clause of order.
We cannot comment upon the intangible fixed assets held by the company as no information
was provided to us by the company.
(ii) 7 circles do not have inventory. Accordingly, the provisions of clause 3(ii) of the order are
not applicable in respect of these circles.
In case of 26 circles, in our opinion, the management has conducted physical verification
of inventory at reasonable intervals during the year, out of which incase of 22 circles, no
material discrepancies between physical verification and book records were noticed on
physical verification. In 2 circles, material discrepancies noticed on physical verification
have been properly dealt with in the books of accounts, and in 2 circles, material
discrepancies noticed on such physical verification have not been properly dealt with in
the books of accounts.
Further, in case of3 circles, the inventory has not been physically verified by the management
during the year and in case of 12 circles though the management has conducted physical
verification of inventory but no documentary evidence was provided, therefore, we are
unable to comment on the discrepancies which could have been arisen between physical
inventory and book records. In our opinion, the frequency of verification of the inventory
in respect of these circles is also not reasonable having regard to the size of the respective
circles and nature of its assets.
(iii) The company has not granted any loan, secured or unsecured to companies, firms, Limited
Liability Partnership (LLPs) or other parties covered in the register maintained under Section
189 of the Act. Accordingly, the provisions of clauses 3(iii)(a), 3(iii)(b) and 3(iii)(c) of the
Order are not applicable.
(iv) In our opinion, the Company has not entered into any transactions covered under Section
185 of the Act. However,in our opinion the Company has complied with the provision of
Section 186 of the Act in respect of loans, investments, guarantees and security.
(v) No circle has accepted any deposit within the meaning of Section 73 to 76 of the Act
and the Companies (Acceptance of Deposits) Rules, 2014 (as amended). Accordingly, the
provisions of clause 3(v) of the Order are not applicable in respect of these circles.
(vi) We have been explained by the management that company has not yet maintained cost
records as prescribed under sub-section (1) of section 148 of the Act in respect of Company’s
services.
179
(vii) (a) 1 circle is regular in depositing undisputed statutory dues including provident fund,
employees’ state insurance, income-tax, sales-tax, service tax, goods and services tax,
duty of customs, duty of excise, value added tax, cess and other material statutory
dues, as applicable, to the appropriate authorities.
Further,42 circles have generally been regular in depositing such tax dues. In these
circles no undisputed amounts payable in respect thereof were outstanding at the
yearend for a period of more than six months from the date they became payable
and undisputed amounts payable in respect thereof, which were outstanding at the
yearend for a period of more than six months from the date they became payable, in
respect of 5 circles details have been given in Appendix II.
(b) Except for the possible effects of the matters described in Paragraph 37 under the Basis
of Qualified Opinion paragraph, the impact of which is currently not ascertainable,
in case of 14 circles, there are no dues in respect of income-tax, sales-tax, service-
tax, duty of custom, duty of excise, value added tax and goods and services tax that
have not been deposited with the appropriate authorities on account of any dispute,
further in case of 32 circles, the dues outstanding in respect of income-tax, sales-
tax, duty of custom, duty of excise, value added tax and goods and services tax on
account of any dispute, have been detailed in Appendix III. Further, in 2 circles, in
the absence of adequate information, the respective auditor has not been able to
comment upon this clause.
(viii) In our opinion and according to the information and explanations given to us, the Company
has not defaulted in repayment of loans or borrowings to any bank. The Company has no
loans or borrowings payable to a financial institutions or Government during the year. The
Company did not have any outstanding debentures during the year.
(ix) In our opinion and according to the information and explanations given to us, the Company
did not raise the moneys by the way of initial public offer or further public offer (including
debt instruments). The term loans were applied for the purpose for which the loans were
raised.
(x) No fraud by the Company or on the Company by its officers or employees has been noticed
or reported during the period covered by our audit except in case of 2 circles amounting to
Rs. 3.51 Lakhs. The details of the same are as below:
Circle Amount Involved

Name of the SSA Nature of the fraud
Name (Rs. in lakhs )
AP Warangal Misappropriation of Cash by Divisional 1.12
Cashier
AP Hyderabad Telecom District Misappropriation of Cash by Divisional 0.13
Telecom Technician
Assam Jorhat SSA Misappropriation of Cash by cashier 2.26
Total 3.51
180
(xi) The provisions of Section 197 of the Act read with Schedule V to the Act are not applicable
to the Company since the Company is a government company as defined under section
2(45) of the Act, accordingly, provisions of clause 3(xi) of the Order are not applicable.
(xii) In our opinion, the Company is not a Nidhi Company, accordingly, provisions of clause
3(xii) of the Order are not applicable.
(xiii) In our opinion and according to the information and explanations given to us the Company’s
transactions with its related parties are in compliance with Section 177 and 188 of the
Companies Act,2013, where applicable, and details of related party transactions have been
disclosed in the standalone Ind AS financial statements etc. as required by the applicable
accounting standards.
(xiv) During the year the company has not made any preferential allotment or private placement
of shares or fully or partly convertible debentures and hence reporting under clause (xiv) of
Paragraph 3 of the Order is not applicable to the company.
(xv) In our opinion and according to the information and explanations given to us, during the
year, the Company has not entered into any non-cash transactions with its directors or
persons connected with it covered under section 192 of the Act. Hence reporting under
clause (xv) of Paragraph 3 of the Order is not applicable to the company.
(xvi) In our opinion and according to the information and explanations given to us, the Company
is not required to be registered under Section 45-IA of the Reserve Bank of India Act, 1934.
For ANDROS & Co.

Sd/-
(Puneet Gupta)
Partner
Place : New Delhi

Date : 4th October, 2018
181
Appendix I – Details of land which are not held in name of BSNL
Circle Name: 1016 GUJARAT
No. of Cases Gross Block Net Block

Particulars
Reported (Rs. in Lakhs) (Rs. in Lakhs)
Freehold Land 500 80,936.92 80,936.92
Leasehold Land 94 3,349.26 3,349.26
Total 594 84,286.18 84,286.18
Circle Name: 1029 RAJASTHAN

Particulars
Freehold Land 38 51,419.90 51,419.90
Leasehold Land 35 448.28 300.92
Total 73 51,868.18 51,720.82
Circle Name: 1062 NTP

Particulars
Freehold Land 4 1.93 1.93
Total 4 1.93 1.93
Appendix II-Details of undisputed statutory dues due for over six months
Circle Nature of Statutory due Amount (Rs. in Lakhs)

Haryana (1017) EPF 0.24
works Contract Tax 2.15
Building & Construction Workers Welfare Cess 0.41
Maharashtra (1024) MVAT 4.75
Works Contract Tax 12.17
Rajasthan (1029) VAT 3.38
Service Tax 1.42
Kolkata Telephones (1035) Service Tax 54.98
Provident Fund 71.00
Total 150.00
182
Appendix III to Annexure I to the Indpendent Auditor’s Report of even date to the members of Bharat Sanchar Nigam Limited on the Standalone
Ind AS financial Statements for the year ended 31 March 2018
Circle Name : 1018 Himachal Pardesh
Statutory Dues under Dispute in r/o BSNL H.P.
Amount (Fig In Period to which the

Name of the Statue Nature of the Due Forum where dispute is pending Remarks
lacs) amount relates
HP VALUE TAX ACT 2005 Entry Tax 3.36 FOR THE F.Y. 2010-11 Excise & Taxation Commissioner N.A
Cum Applellate Authority, North
Zone Palampur (H.P)
HP VALUE TAX ACT 2005 Entry Tax 11.49 FOR THE F.Y. 2015-16 Excise & Taxation Commissioner N.A
Cum Applellate Authority, North
Zone Palampur (H.P)
ATA NO. 142/2017 EPF DUES(kullu SSA) 9.6 07/2003 TO 09/2010 EPFAT Delhi The case is
under process
183
ATA No. 143/2017 EPF DUES (MANDI 18.21 02/2003 TO 09/2010 EPFAT Delhi The case is
SSA) under process
ITA NO. 600 & 602/ STD PCO TDS 20.45 2006-07 & 2007-08 Hon,ble High Court Shimla The case is
CHD/2009 DUES(KULLU) under process
ITA NO. 601 & 603/ STD PCO TDS 16.91 2006-07 & 2007-08 Hon,ble High Court Shimla The case is
CHD/2009 DUES(MANDI) under process
HP Excise & TAXATION Entry tax 10.96 2010-11 HP TAX TRIBUNAL SHIMLA N.A
DEPT

DEPT
DEPT
DEPT
DEPT
TOTAL AMOUNT 173.96
Circle Name : 1026 NE II
SSA Period Forum Amount (Rs in lakhs)

Nagaland Not available CESTAT 68.12
Manipur Not available CESTAT 121.87
CIRCLE NAME : JHARKHAND
According to the information and explanations given to us, there disputed statutory dues, which have not been deposited as at 31st March 2018, as given
herein below:
Name of Unit Period to which relates Nature of Dues Forum Amount ( in Lakhs)
April, 2004 to March 2006. Service Tax CESTAT-Kolkata. 206.04
Service Tax Penalty 206.04
October 2008 to March Service Tax Commissioner 42.79
Jamshedpur SSA
2013 (Appeal dismissed by
NAME OF THE STATUTE: FINANCE ACT,1994
184
Commissioner Appeal)
October 2003 to December Service Tax Commissioner(Appeal), 1463.78
2003 Ranchi
2005-06 Service Tax CESTAT Kolkata 163.13
2006-07 Service Tax CESTAT Kolkata 19.63
Ranchi SSA
April 2005- Nov 2006 Service Tax CESTAT Kolkata 325.56
December,2005 to Service Tax CESTAT Kolkata. 119.07
August,2009
Hazaribagh SSA Service Tax Interest 2.58
Dumka SSA(Business 2005-06 Service Tax CESTAT, Kolkata 131.31
Area Dhanbad) Service Tax Penalty 131.31
Name of Unit Period to which relates Nature of Dues Forum Amount ( in Lakhs)
Daltonganj SSA 2001-06 Service Tax CESTAT, Kolkata 257.66
STATUTE: FINANCE
(Business Area Ranchi) Service Tax Penalty 145.03
NAME OF THE
ACT,1994
Oct., 2003 to Sep., 2008 Service Tax CESTAT Kolkata 1673.97
October, 2008 to March, Service Tax Commissioner, Ranchi 55.39
Dhanbad SSA 2010
Ranchi SSA EPF ACT 1952 June 2002 to December EPF Liability Jharkhand High Court, 347.44
2011 Ranchi
CIRCLE NAME : 1013 ASSAM
Bus Area Name Financial Year Amount Status as on 31.03.2018

Circle Office 2014-15 2,65,57,508.00 Pending at CESTAT
185
Bongaigaon 2015-16 1,46,72,000.00 Pending at CESTAT

Jorhat 2013-14 48,56,050.00 Pending at CESTAT
2013-14 19,17,289.00 Pending at CESTAT
Kamrup 2015-16 6,16,00,000.00 Pending at CESTAT
2012-13 1,72,00,000.00 Pending at CESTAT
2015-16 38,54,00,000.00 Pending at CESTAT

Nagaon 2007-08 49,51,228.00 Pending at CESTAT
Silchar 2009-10 1,49,611.00 Pending at CESTAT
Tezpur 2011-12 3,06,928.00 Pending at CESTAT
Total 52,13,62,876.00
Circle Name : 1012 ANDHRA PRADESH
Statement of Arrears of Statutory Dues
Name of the Statute Nature of the Dues Amount(Rs. in Lakhs) Period to which the amount relates
Mines and Minerals Act Seigniorage Fee payable 5.35 Information not provided to us
State/Local Laws Municipal & Property Taxes 970.25 Information not provided to us
Finance Act, 1994 GST Act, 2017 Service Tax/ GST on Liquidated Not ascertainable Information not provided to us
Damages
(Rs. in Lakhs)
Demand + Interest + Period to which the Forum where the dispute is

Name of the Statute Name of the Dues
Penalty amount relates pending
APGST Act, 1957 Sales Tax 931.31 1997-98 The H’nble Supreme Court
APGST Act, 1957 Sales Tax 1345.96 1998-99 The H’nble Supreme Court
186
APGST Act, 1957 Sales Tax 1,879.46 1999-00 The H’nble Supreme Court
Income Tax Act,1961 TDS not recovered on 399 2008-09 High Court of AP
the discount allowed to
franchisee.
Income Tax Act,1961 TDS not recovered on 386.62 2009-10 High Court of AP
franchisee.
Income Tax Act,1961 TDS not recovered on 396.87 2010-11 High Court of AP
franchisee.
Finance Act 1994-Service Irregular Availment of 35.39 2003-08 CESTAT Hyderabad
Tax Cenvat Credit-CMTS
Finance Act 1994-Service Irregular Availment of 586.89 2010-11 & 2011-12 CESTAT Hyderabad
187

Finance Act-1994 Service Irregular availment of 1,373.57 2005-10 CESTAT, Hyderabad
Tax Cenvat Credit on Capital
goods(Chittor)
Finance Act-1994 Service Levy on Service Tax 94.23 2005-06 CESTAT Hyderabad
Tax on exempted Services/

PCOs(Eluru)
PCOs(Eluru)
Finance Act-1994 Service Cenvat Credit on Structural 11.71 2006-08 High Court at Hyderabad
Tax Towers (karimnagar)
PCOs(Guntur)
Finance Act-1994 Service Levy on Service Tax on 33.77 2011-12 CESTAT, Hyderabad
Tax exempted categories of PTs
(Kurnool)
Finance Act-1994 Service Short/delayed payment of 58.97 2007-08 CESTAT, Hyderabad
Tax Service Tax (Kurnool)
Finance Act-1994 Service Wrong filing of ST-3 Return 1.39 2011-12 CESTAT, Hyderabad
Tax (Kurnool)
Finance Act-1994 Service Availment of Cenvat Credit 25.59 2008-09 to 2011-12 High Court at Hyderabad
Tax on Tower material (MBN)
Finance Act-1994 Service Irregular availment of ST 31.79 2006-07 CESTAT Hyderabad
Tax (NLR)
Finance Act-1994 Service VPT Revenue shown under 52.73 Oct -04 to sep-05 Comm. CCE&ST Guntur
Tax revenue realization columns
188
in return (Ongole)
Finance Act-1994 Service Short/Non payment of 77.42 2001-17 CESTAT, Hyderabad
Tax Service tax on slab rates,
circuits, VPTs, Telegrams
(RJMY)
Finance Act-1994 Service Non payment of Service tax 2.87 2006-07 CESTAT, Hyderabad
Tax VPTs (RJMY)
Finance Act-1994 Service Irregular Availment of 34.07 2001-17 High Court at Hyderabad
Tax Cenvat Credit (RJMY)
Finance Act-1994 Service Irregular Availment of 302.18 2001-17 CESTAT, Hyderabad
Tax Cenvat Credit 100% on
Capital Goods (RJMY)
Finance Act-1994 Service Irregular Availment of 4.33 2001-17 Commissioner vizag
Tax Cenvat Credit (RJMY)
Finance Act-1994 Service Regarding refund of Service 1.19 2013-14 Commissioner vizag
Tax tax paid in excess (Vzg)
Finance Act-1994 Service Irregular Availment of 40.05 2012-13 Superintendent of Central
Tax Cenvat Credit (SKLM) Excise, Vizag
Finance Act-1994 Service Applicability of Service tax 6.08 2011-12 CESTAT Hyderabad
Tax on Ports (VZM)
Finance Act-1994 Service Irregular Availment of 36.94 2007-08 to 2011-12 High Court at Hyderabad
Tax Cenvat Credit (WGL)
Finance Act-1994 Service Non payment of Sevice 194.66 2005-06 CESTAT, Hyderabad
Tax Tax onTelephone Services
through CCB (VJW)
Finance Act-1994 Service Irregular availment of 242.84 2004-05 to 2008-09 Asst Commissioner Guntur
Tax CENVAT credit (VJW)
Finance Act-1994 Service Irregular utilization of 6.02 Oct-08 to Sep-09 Asst Commissioner Guntur
189
Finance Act-1994 Service Irregular availment of 40.44 Oct-08 to Sep-09 CESTAT, Hyderabad
Finance Act-1994 Service Irregular availment of 1.09 Oct-09 to Sep-10 Asst Commissioner
Tax CENVAT credit (VJW) Vijayawada
Finance Act-1994 Service Irregular availment of 0.94 Oct-10 to Mar-11 Asst. Comm. CCEST
Finance Act-1994 Service Irregular availment of 0.74 2011-12 Asst. Comm. CCEST

Finance Act-1994 Service Non-payment of Interest 63.91 2010-11 CESTAT Hyderabad
Tax for Irregular availment of
CENVAT credit on Capital
Goods (VJW)
Finance Act-1994 Service Wrong availment of Service 8.61 2012-13 Commissioner of Central
Tax on Rent a cab service (VJW) Excise Guntur
In addition to the above, there are 9 cases relating to Sales Tax where the Circle had won at the High Court Level and the Sales Tax Department had
preferred appeals with the H’nble Supreme Court. No information had been provided for our verification in this regard. Hence, the amount of dues is
not ascertainable.
Penalties and interest have been reported wherever information is available.
In respect of Sales Tax cases reported vide 1 to 11 above, an amount of Rs. 3928.62 lakhs has been deposited for grant of stay.In respect of TDS cases
reported vide 12 to 14 above, an amount of Rs. 1182.50 lakhs has been deposited under protest.In respect of Service Tax case reported vide 36 above, an
amount of Rs. 0.37 lakhs and in respect of Service Tax case reported vide 39 above an amount of Rs. 1 lakh have been paid under protest.
Circle Name : 1016 GUJARAT
Amount under
Name of the Forum where dispute is
Name of Statute Nature of the dues Period dispute not yet
Unit pending
deposited
Amreli Income Tax Act 1961 TDS on discount given to prepaid distributors FY 2008- AY 2009-10 6,64,462 Commissioner of Income Tax
09 U/s 201(1)/201(1A) (Appeal)
190
Bhavnagar Income Tax Act 1961 TDS on discount given to prepaid distributors FY 2008- AY 2009-10 8,95,654 Commissioner of Income Tax
09 U/s 201(1)/201(1A) (Appeal)-XXI
CMTS Income Tax Act 1961 TDS on discount given to prepaid distributors FY 2008- AY 2009-10 8,53,989 Commissioner of Income Tax
09 U/s 201(1)/201(1A) (Appeal)-XXI, Ahmedabad
Jamnagar Income Tax Act 1961 TDS on discount given to prepaid distributors FY 2008- AY 2009-10 9,81,893 Commissioner of Income Tax
09 U/s 201(1)/201(1A) (Appeal)
Junagadh Income Tax Act 1961 TDS on discount given to prepaid distributors FY 2008- AY 2009-10 10,18,338 Commissioner of Income Tax
09 U/s 201(1)/201(1A) (Appeal)
Mehsana Income Tax Act 1961 TDS on discount given to prepaid distributors FY 2008- AY 2009-10 4,54,491 Commissioner of Income Tax
09 U/s 201(1)/201(1A) (Appeal)
Mehsana Income Tax Act 1961 Penalty on TDS on discount given to prepaid distributors AY 2009-10 2,43,772 Commissioner of Income Tax
FY 2008-09 U/s 271C (Appeal)
Palanpur Income Tax Act 1961 TDS on discount given to prepaid distributors FY 2008- AY 2009-10 17,22,120 Commissioner of Income Tax
09 U/s 201(1)/201(1A) (Appeal)
Palanpur Income Tax Act 1961 Penalty on TDS on discount given to prepaid distributors AY 2009-10 9,23,683 Commissioner of Income Tax
FY 2008-09 U/s 271C (Appeal)
Amount under
Unit pending
deposited
Rajkot Income Tax Act 1961 TDS on discount given to prepaid distributors FY 2008- AY 2009-10 15,97,479 Commissioner of Income Tax
09 U/s 201(1)/201(1A) (Appeal)
Rajkot Income Tax Act 1961 Short Deduction of TDS u/s 194J AY 2009-10 14,71,770 Gujarat High Court
Rajkot Income Tax Act 1961 Short Deduction of TDS u/s 194J AY 2008-09 24,40,878 Gujarat High Court
Ahmedabad Finance Act, 1994 (Service Violation of Rule 4(2)(a) of CENVAT Credit Rules,2004 2009-10 to 3,14,39,503 CESTAT Ahmedabad
Tax) and CENVAT Credit by Utilisation of 100% CENVAT Credit on Capital 2011-12
Rules 2004 Goods
Circle - Finance Act, 1994 (Service Availment of CENVAT on tower material 2014-15 21,92,338 CESTAT Ahmedabad
Taxation Tax)
CMTS Bombay Stamp Act, 1958 Stamp duty and penalty on application forms 2007 3,53,74,000 Gujarat High Court, amount
deposited with court Rs.
117.91 lacs against the
demand of Rs. 471.65 lacs.
CMTS Finance Act, 1994 (Service CENVAT Disallowed and Interest and penalty (April 2010 to 3,52,10,567 Gujarat High Court
191
Tax) Dec. 2010)

CMTS Finance Act, 1994 (Service CENVAT Disallowed under CENVAT Credit Rules, (Jan. 2012 to 2,02,66,133 CESTAT Ahmedabad
Tax) 2004 and Interest and penalty on the same Dec. 2012)
CMTS Finance Act, 1994 (Service CENVAT Disallowed under CENVAT Credit Rules, (Jan. 2011 to 5,43,60,156 CESTAT Ahmedabad
Tax) 2004 and Interest and penalty on the same Dec. 2011)
CMTS Finance Act, 1994 (Service CENVAT Disallowed under CENVAT Credit Rules, F.Y. 2009-10 1,35,47,084 CESTAT Ahmedabad
Tax) 2004 and Interest and penalty on the same to 2011-12

CMTS Finance Act, 1994 (Service Voluntary Compliance Encouragement Scheme F.Y. 2010-11 15,52,281 CESTAT Ahmedabad
Tax) to 2011-12
Jamnagar Finance Act, 1994 (Service Interest and penalty F.Y. 1997-98 1,29,87,000 Gujarat High Court
Tax) to 2000-01
Jamnagar Finance Act, 1994 (Service CENVAT Disallowed and Interest and penalty F.Y. April 7,71,050 Commissioner (Appeals)
Tax) 2011 to June Central Excise, Rajkot
2012
Jamnagar Finance Act, 1994 (Service Nonpayment of service tax on legal fees on RCM basis, 2013-14 to 83878 Commissioner (Appeals)
Tax) and CENVAT Credit Interest and Penalty 2014-15 Central Excise
Rules 2004
Amount under
Unit pending
deposited
Junagadh Finance Act, 1994 (Service CENVAT credit utilised on rent a cab services F.Y 2012-13 8,76,904 Commissioner (Appeals)
Tax) and CENVAT Credit to 2013-14 Central Excise
Rules 2004
Palanpur Finance Act, 1994 (Service CENVAT Disallowed and Interest and penalty FY 2006-07 to 1,15,04,147 Supreme Court of India
Tax) 2012-13
Rajkot Finance Act, 1994 (Service CENVAT Disallowed and Interest and penalty FY 2013-14 to 7,90,332 CESTAT Ahmedabad
Tax) 2014-15
Surat Finance Act, 1994 (Service CENVAT Disallowed and Interest and penalty F.Y. 2009-10 2,47,94,761 CESTAT Ahmedabad
Tax) to 2013-14
Surat Finance Act, 1994 (Service Short Payment of Service Tax, Interest and Penalty April 2009 3,30,34,807 CESTAT Ahmedabad
Tax) to September
2009
Surat Finance Act, 1994 (Service Reverse Charge on Security Services F.Y. 2012-13 14,15,536 CESTAT
Tax) to 2013-14
192
Surat Finance Act, 1994 (Service Free calls to BSNL Employees. F.Y. 2009-10 56,00,658 CESTAT
Tax) to 2013-14
Surat Finance Act, 1994 (Service Sale of scrap material F.Y. 2009-10 23,44,516 CESTAT
Tax) to 2013-14
Vadodara Finance Act, 1994 (Service Short Payment of Service Tax, Interest and Penalty F.Y. 2001-02 6,07,48,565 CESTAT Ahmedabad
Tax) to 2003-04
Valsad Finance Act, 1994 (Service CENVAT Disallowed and Interest and penalty F.Y. 2006-07 1,33,37,048 CESTAT Ahmedabad
Tax) to 2010-11
Circle Name : 1028 PUNJAB
Unit Name Name of the Statute Nature of Dues Amount of dispute Period Forum where dispute is pending
Amritsar Pb. Municipal Act, 1911 House Tax 333910 1988-99 to 2003-04 Pb & Haryana High Court
Bathinda Service Tax Act Service Tax 5213251 2007-08 CESTAT, Chandigarh
Circle EPF ACT 1952 EPF 1883247 2004-05 to 2010-11 EPF Appliate Tribunal/Labour Court
Unit Name Name of the Statute Nature of Dues Amount of dispute Period Forum where dispute is pending
Circle EPF ACT 1952 EPF 696902 2012 TO 2015 EPF Appliate Tribunal/Labour Court
NOFN & MM SALE TAX CST 8172260 2009-10 DETC
NOFN & MM SALE TAX VAT 55138890 2009-10 DETC
NOFN & MM SALE TAX VAT 12706718 2010-11 DETC
CMTS Service Tax Act & CE Service Tax 8703671 2004-05 to 2007-08 CESTAT- Chandigarh
Ferozepur Service Tax Act Service Tax 2083400 2007-08 CSTAT
Hoshiarpur Service Tax Act Service Tax 1560215 2014-15 Excise Commissioner (Appeals)
Jalandhar Service Tax Act Service Tax 5723839 1995-96, 2000-2001 Pb & Haryana High Court
193
Jalandhar Service Tax Act Service Tax 9870682 2001 to 2010 Pb & Haryana High Court
Jalandhar Service Tax Act Service Tax 822346 2013-14 Pb & Haryana High Court
Jalandhar Service Tax Act Service Tax 858699 1995-96, 2000-2001 Pb & Haryana High Court
Jalandhar Service Tax Act Service Tax 145613 1995-96, 2000-2001 Distt.Court.JL
Jalandhar Service Tax Act Service Tax 3364225 2003-04 to 19.01.2006 Distt.Court.JL
Jalandhar Service Tax Act Service Tax 613120 2012-13, 2013-14 A.C.S.Tax LD

Ludhiana SALES TAX VAT 14942250 2007-08 Pb & Haryana High Court
Ludhiana SERVICE TAX Service Tax 1473782 2006-2010 Commissioner CE Appeals
Ludhiana SERVICE TAX Service Tax 932361 2006-2008 Commissioner CE Appeals
Patiala Service Tax Act Service Tax 2636054 APR 2006 to SEP 2006 CESTAT Chandigarh
Patiala EPF ACT 1952 EPF 3297194 FEB 2002 to JUN 2004 Pb & Haryana High Court
Patiala EPF ACT 1952 EPF 1366306 MAY 2004 to OCT 2010 EPFAT Delhi
Ropar EPF EPF 1386000 2002-2004 Pb & Haryana High Court
Sangrur Service Tax Act Service Tax 3073946 2005-06 to 2007-08 CESTAT Chandigrh.
Circle Name : 1034 West Bengal
Name of the Statute Nature of dues Amount (Rs. In Lakh)

Chapter V of the Finance Act, 1994 Service Tax 0.69
(Sections 64 to 96I) also referred to as
Service Tax Act
-do- Service Tax 1655.66
-do- Interest on Service Tax 6.73
-do- Penalty under Service Tax 3.15
-do- Service Tax and Penalty 296.33
-do- Interest & Penalty on Service Tax 1.65
194
West Bengal Tax on Entry of Goods Entry Tax 39.11

into Local Areas Act, 2012
-do- Entry Tax 39.65
West Bengal Value Added Tax Act, VAT 21.92
2003
-do- Interest & Penalty on VAT 13.17
Income Tax Act, 1961 Income Tax (TDS) & Interest 343.02
thereon
Chapter V of the Finance Act, 1994 Service Tax, 96
(Sections 64 to 96I) also referred to as
Service Tax Act
-do- Service Tax, 5.33
The Central Excise Act, 1944 Central Excise 98.22
Circle Name : 1050 ETR
Name of the statute Nature of dues Amount (Rs. in lacs) Period to which the amount relates
W.B. Sales Tax Department Sales Tax 31.20 2006-07
W.B. Sales Tax Department Sales Tax 11.27 2007-08
Circle Name : 1070 TF MUMBAI
Pending cases as on 31.03.2018
A. Sales Tax Cases
Period to which the

Name of the Statue Nature of the disputed dues Amount (In Rs.) Forum where dispute is pending
amounts relates
1989-1990 Department of Sales Tax Matters other than F-Form 3,674,354 Deputy Commissioner of Sales Tax
2004-2005 Department of Sales Tax F-Form including Interest & 67,515,936 Deputy Commissioner of Sales Tax (Appeal)
Penalty
195
2004-2005 Department of Sales Tax Matters other than F-Form 8,374,120 Deputy Commissioner of Sales Tax (Appeal)
2005-2006 Department of Sales Tax F-Form including Interest & 30,911,426 Deputy Commissioner of Sales Tax (Appeal)
Penalty
2005-2006 Department of Sales Tax Matters other than F-Form 1,251,079 Deputy Commissioner of Sales Tax
2006-2007 CST Dues are due to want of F-Form including Interest & 98,257,852 Joint Commissioner Appeal II
‘F’ Forms Penalty
2006-2007 Department of Sales Tax Matters other than F-Form 2,853,472 Joint Commissioner Appeal II

2007-2008 Department of Sales Tax F-Form including Interest & Joint Commissioner Appeal II
Penalty 204,739,971
2007-2008 Department of Sales Tax Matters other than F-Form 2,831,525 Joint Commissioner Appeal II
2009-2010 Department of Sales Tax F-Form including Interest & 51,160,972 Joint Commissioner Appeal II
Penalty
2010-2011 Department of Sales Tax F-Form including Interest & 22,207,154 Deputy Commissionr of Sales Tax (Appeal
Penalty
Total 493,777,861
B. Excise cases*
Feb-2008 to July-2008 Central Board of Excise and Customs Tax, Penalty & Interest 7,524,821 Commissioner (Central Excise, Mumbai)
Aug-2008 to Mar-2009 Central Board of Excise and Customs Tax, Penalty & Interest 9,827,592 Commissioner (Central Excise, Mumbai)
Apr-2009 to Dec-2009 Central Board of Excise and Customs Tax, Penalty & Interest 6,282,299 Commissioner (Central Excise, Mumbai)
Jan-2010 to Sep-2010 Central Board of Excise and Customs Tax, Penalty & Interest 6,344,451 Commissioner (Central Excise, Mumbai)
Oct-2010 to Jul-2011 Central Board of Excise and Customs Tax, Penalty & Interest 4,960,085 Addl. Commissioner (Central Excise,
Mumbai)
Aug-2011 to Mar-2012 Central Board of Excise and Customs Tax, Penalty & Interest 3,943,604 Joint Comissioner (Central Excise,
Mumbai)
Apr-2006 to Sep-2010 Central Board of Excise and Customs Tax, Penalty & Interest 60,075,362 Commissioner (Central Excise, Mumbai)
Oct-2010 to Aug-2011 Central Board of Excise and Customs Tax, Penalty & Interest 8,556,939 Commissioner (Central Excise, Mumbai)
Sep-2011 to Mar-2012 Central Board of Excise and Customs Tax, Penalty & Interest 4,275,583 Joint Comissioner (Central Excise,
Mumbai)
2013-2014 Central Board of Excise and Customs Tax, Penalty & Interest 4,656,029 CESTAT - Mumbai
Apr-2007 to Jan-2008 Central Board of Excise and Customs Tax, Penalty & Interest 13,286,489 CESTAT - Mumbai (Appealed by
196
Commissioner)
Apr-2012 to Jan-2013 Central Board of Excise and Customs Tax, Penalty & Interest 14,986,893 Joint Comissioner (Central Excise,
Mumbai)
Feb-2013 to Dec-2013 Central Board of Excise and Customs Tax, Penalty & Interest 13,487,243 Commissioner (Central Excise, Mumbai)
Oct-2012 to Sep-2013 Central Board of Excise and Customs Tax, Penalty & Interest 28,329 Addl. Commissioner (Central Excise,
Mumbai)
Jan-2014 o Sep-2014 Central Board of Excise and Customs Tax, Penalty & Interest 10,624,600 Commissioner (Central Excise, Mumbai)
22th September 2014 Central Board of Excise and Customs Tax, Penalty & Interest 40,737 CESTAT - Mumbai
July-14 to Mar-15 Central Board of Excise and Customs Tax, Penalty & Interest 243,058 CESTAT - Mumbai
Nov-14 to Aug-15 Central Board of Excise and Customs Tax, Penalty & Interest 229,967 CESTAT - Mumbai
Oct-14 to Mar-15 Central Board of Excise and Customs Tax, Penalty & Interest 9,769,392 Principal Comm. (C Ex Mumbai-II)
Apr-15 to Dec-15 Central Board of Excise and Customs Tax, Penalty & Interest 20,240,990 Principal Comm. (C Ex Mumbai-II)
Jan-16 to Dec-16 Central Board of Excise and Customs Tax, Penalty & Interest 17,399,282 Joint Comissioner (Central Excise,
Mumbai)
Total 216,783,745
C. Service Tax
2013-14 Service Tax on Receipt of Liquidated Damages Service Tax and Interest 1,341,530 Deputy Commissioner Central Excise, Mumbai
from Vendors
Grand Total 711,903,136
*Towards excise duty demanded on 10% profit margin(MRP) and correction resulting from return of goods not yet granted by authorities.
Circle Name : 1095 TS KOLKATA
Name of the statute Nature of dues Amount (in Rs) Period to which the amount relates Forum where dispute is pending
CBEC Sales Tax 315840 1989-90 to 1993-94 High Court Kolkata
CBEC Excise Duty 1897423 1995-96 to 2000-01 High Court Kolkata
Others Interest Claimed 14869187 2010-2011 Supreme Court New Delhi
Others Freight Charges 246572.5 1999-2000 High Court Kolkata
197
Others Substandard Material 10000 1999-2000 High Court Kolkata

Others Disputed Rate 278780 1999-2000 High Court Kolkata
Others L.D> & Denial Clause 566267 2000-2001 High Court Kolkata
Others Appeal against Arbitration 490514 2006-2007 High Court Kolkata
Others Short Supply 3272888.9 2004-2005 High Court Kolkata
Others Property Tax 22290714 2005-2006 High Court Kolkata

Others Price Variation 1007816 2005-2006 City Civil Court
Others Accident Claim 229922 2006-2007 Alipore Judges Court
Others Difference of Otertime 5873296 2006-2007 High Court Kolkata
Others Difference of Otertime 1601808 2008-2009 Small Cause Court, Kolkata
Others Difference of Otertime 854088 2008-2009 Small Cause Court, Kolkata
Name of the statute Nature of dues Amount (in Rs) Period to which the amount relates Forum where dispute is pending
Others Difference of Otertime 3277241 2006-2007 Labour Tribunal
Others Difference of Otertime 3523553 2006-2007 Labour Tribunal
Others Price Variation & L.D. 30153337 2012-2013 High Court Kolkata
Arbitration Price Variation & L.D. 294117 2006-2007 Arbitration
Arbitration Dipute on Price of Material 24771369 2006-2007 Arbitration
Arbitration MODVAT Cases 140025 2008-2009 Arbitration
Arbitration Supply of Faulty Power Point 1083483.83 2002-2003 Arbitration
Arbitration Supply of Faulty Power Point 2238287.49 2005-2006 Arbitration
Others Accident Claim 25000 2013-2014 High Court Kolkata
Others Accident Claim 145078 2013-2014 High Court Kolkata
Others OT Matters 317313 2009-2010 High Court Kolkata
198
Circle Name : 1015 CHHATISGARH
SSA Name of Statute Nature of Dues Amount (in Lakhs) Period Forum where Dispute is pending
62500 1994-2000
2950 2000-2004
GMTD, Raipur Finance Act, 1994 Service Tax CESTAT, Delhi
4618 2004-2005
6712 2009-2010
GMTD, Bilaspur Finance Act, 1994 Service Tax 1407 2004-2007 CESTAT, Delhi
Circle Name : 1027 ORISSA
Name of the Statute Nature of Dues Amount disputed (Rs. In Lacs.) Period
Pending court cases on account of land acquisition Land Dues 17.45 Up to 2018
Pending court cases on account of TR billing TR Bill 9.377 2008-2018
Service Taxes Service Tax 2,394.33 1993-2018
Arbitration Case 11.7 2013-2018
Pending Court Cases Others 238.74 Up to 2018
Circle Name : 1033 UTTRAKHAND
Name of Statute Nature of dues Amount

Uttarakhand Trade Tax Act, 1948 Trade Tax 5,37,220/-
199
Uttarakhand Trade Tax Act, 1948 Trade Tax 12,27,00,000/-

Finance Act, 1994 Service Tax 79,99,828/-
Finance Act, 1994 Service Tax 66,97,971/-

Uttarakhand Trade Tax Act, 1948 Trade Tax 34,305/-
Uttarakhand Trade Tax Act, 1948 Trade Tax 87,523/-
Circle Name : 1052 NTR
Name of the statute Nature of dues Amount (in Rs.) Period to which amount relates
Central Excise Act, 1944 State Excise duty 37,28,049 2015-16
Service Tax Service Tax 7,29,11,582 2009-10
Circle Name : 1053 STR STR
Name of the statute Nature of the dues Amount (Rs. In lakhs) Period to which the amount relates
Service Tax Act and Rules Service tax “409 (100% Penalty is levied on June 2007 to September 2009
above amount)”
Service Tax Act and Rules; Cenvat Service tax “3229.29 (100% penalty is levied June 2007 to October 2009
Credit Rules, 2004 on above amount)”
Circle Name : 1072 T F Kolkata

200
Name of the statute Nature of dues Amount (In Lakhs) Period to which the amount relates Forum the dispute is pending
Central Excise Act, 1944 Excise Duty 418.56 2007-2008 To 2010-2011 Appelete Authority, alipore TF
Central Excise Act, 1944 Excise Duty 263.13 2012-2013 To 2014-2015 Comm. Central excise, aliore TF
Central excise Act, 1944 Excise Duty 2.84 2015-2016 Comm. of appeals, Alipore TF
Central excise Act, 1944 Excise Duty 255.32 2008-2009 To 2016-17 Appelete Authority, Gopalpur TF
West Bengal VAT Act VAT 13.82 2012-2013 to 2013-2014 Comm. Of Sales tax, KGP, TF
Cetral Sales tax act CST 120.78 2013-2014 Comm. Of Sales tax, KGP, TF
Circle Name : 1023 MP TELECOM
Particular Period Amount (Rs in Crores) Deposit (Rs in Crores)

Pending Court Cases on Account of Service Tax, Central Excise, Sales Tax, 2006 to 2018 40.34 15.54
Entry Tax Provident Fund
Circle Name : 1062 NTP
Name of Statute Nature of Dues Amount (Rs. in Lacs) Period to which it relates
Delhi Sales Tax Act Demand Against the Company 0.5 2001-02
Central Sales Tax Act Demand Against the Company 22.67 2001-02
U P Sales Tax Demand Against the Company 26.39 2012-13
Total 49.56
According to the information and explanations given to us, there are no disputed statutory dues pending in respect of income tax and sales tax. We are
informed that the provisions of Wealth Tax, Customs Duty, and Excise Duty are not applicable to the NTP Circle Office.
Circle Name : 1011 Andaman
S.No Name of the Statute Nature of the due Amount Period to which Forum where
amount relates dispute is pending
1 Central Excise Act,1944 Service Tax 6,98,75,468/- 2003-2007 CESTAT
201
2 Central Excise Act,1944 Service Tax 1,38,46,422/- 2007-2011 CESTAT

Total 8,37,21,890/-
Circle Name : 1014 Bihar
Amount Amount paid Period to which the Forum where disputes

Name of Statute Nature of Dues
(Rs.in lacs) (Rs. In Lacs) amount relates are pending

83.25 10.08 2005-06 Tribunal
VAT 26.86 3.75 2006-07 Tribunal
489.69 350.37 2007-08 High Court
Bihar VAT Act 2005 43.39 8.00 2011-12 Commissioner, Appeal
14.11 8.00 2012-13 Commissioner, Appeal
VAT
Bihar Tax on Entry of Goods into local areas for Entry Tax 2.03 2.03 2010-11 JCCT Appeal
Consumption, Use or Sale therein Act, 1993
4.17 1.25 2007-08 DCCT
47.95 33.42 2008-09 DCCT
ihar Tax on Entry of Goods into local areas for 59.65 50.35 2009-10 JCCT Appeal
Consumption, Use or Sale therein Act, 1993 22.29 8.92 2011-12 JCCT Appeal
253.20 205.26 2008-09 High Court
CST
45.00 39.66 2004-05 DCCT
9.45 8.62 2015-16 CTO
5.00 1.71 2007-08 JCCT Appeal
Central Sales Tax Act 1956
27.34 27.34 2008-09 JCCT Appeal
15.45 6.99 2013-14 JCCT Appeal
1,401.46 774.74
2.69 - Mar 2002 to Jan 2005 Tribunal
18.93 17.34 1996 to 2002 APFC
202
12.01 12.01 5/2002 to 2/2004 APFC

3.36 4.95 2002 to 2013 APFC
17.24 - 1-4-1996 to 31-3-2010 APFC
24.23 20.59 1-4-1996 to 31-3-2010 High Court
106.69 106.69 1/10/2000 to High Court
Employees’ Provident Funds & Miscellaneous 12/3/2010
EPF
Provisions Act, 1952 0.78 0.71 May 2010 to July 2013 APFC
26.57 25.74 1-4-1996 to 31-3-2010 High Court
2.69 - Mar 2002 to Jan 2005 Tribunal
0.21 - 1-4-2010 to 28-2-2014 APFC
0.05 - 1-4-2010 to 28-2-2014 APFC
8.21 8.21 2013 to 2014 APFC
12.89 12.89 2008 to 2009 APFC
236.55 209.13
3.96 3.96 2011 to 2013 ACIT
Income Tax Act,1961 TDS
1.89 1.89 2015 to 2016 ACIT
1.84 1.84 2016 to 2017 ACIT
0.78 0.78 2016 to 2017 ACIT
Income Tax Act,1961 TDS
1.38 1.38 2015 to 2016 ACIT
9.85 9.85
129.52 4.86 2007-08 to 2008-09 CESTAT
363.05 75.56 2001-02 to 2005-06 CESTAT
133.70 5.01 2008-09 to 2010-11 CESTAT
262.62 31.91 2002-06 CESTAT
66.65 12.89 2006-07 CESTAT
1,010.00 200.00 2003-04 to 2006-07 CESTAT
2,593.16 173.96 2007-08 to 2009-10 CESTAT
60.53 - 2001-02 to 2005-06 CESTAT
203
171.39 3.73 2006-07 to 2010-11 CESTAT

110.07 5.00 2006-07, 2007-08 and CESTAT
2008-09
Finance Act 2004 Service Tax 3.09 3.09 2013-14 CESTAT
4.22 4.22 2002-06 CESTAT
464.22 200.00 Oct 2000 to Sept 2004 High Court

1,255.52 300.00 2005-06 to 2007-08 CESTAT
243.00 20.00 2006-07 CESTAT
1,241.00 150.00 ST No.01/ST/ CESTAT
COM/2008
63.00 15.00 2002 to 2006 Commissioner, Appeal
787.00 100.00 2001-02 to 2005-06 CESTAT
26.51 - 2004 to 2005 CESTAT
56.88 - 2006-2007 CESTAT
588.00 - 2002 to 2006 CESTAT
390.53 - 2002 to 2006 Commissioner, Appeal
19.33 - 2007-08 & 2008-09 CESTAT
5.34 - 2006-07 & 2007-08 CESTAT
26.96 - 2005-06 CESTAT
22.76 - 2002-03 to 2006-07 CESTAT
Finance Act 2004 Service Tax 46.84 - 2005 to 2007 Commissioner, Appeal
201.96 - 2002-03 to 2005-06 Commissioner, Appeal
354.16 - 2002-2007 Commissioner, Appeal
111.68 - 2000 to 2006 CESTAT
204

250.30 - Oct 2000 to March High Court
2003
170.21 - 2002 to 2007 CESTAT
12,616.61 1,309.06
Circle Name : 1017 Haryana
Name of the Period to which the amount demanded Amount paid

Nature of Dues From where dispute is pending
Statute amount relates in Lakhs under protest
Finance Act, 1994 Service tax 2010-11 to 2014-15 Commissioner (Appeal) 22.59 1.98
Finance Act, 1994 Service tax 2014-15 Commissioner (Tax Division) 114.52 -
Finance Act, 1994 Service tax 2009-10 to 2013-14 Commissioner (Tax Division) 679.25 -
Finance Act, 1994 Service tax April, 2012 to January, CESTAT 303.33 22.75
2013
Name of the Period to which the amount demanded Amount paid
Nature of Dues From where dispute is pending
Statute amount relates in Lakhs under protest
Finance Act, 1994 Service tax 2002-06 CESTAT 93.99 -
Finance Act, 1994 Service tax 2208-09 to 2011-12 CESTAT 364.16 -
Finance Act, 1994 Service tax 2007-08 to 2011-12 Commissioner (Appeal) 42.36 3.17
Finance Act, 1994 Service tax 2009-10 to 2012-13 Commissioner (Appeal) 3.80 -
Finance Act, 1994 Service tax 2005-06 CESTAT 21.72 -
Finance Act, 1994 Service tax 2 007-08 CESTAT 141.29 -
Finance Act, 1994 Service tax 2 004-5 to 2005-06 CESTAT 45.38 -
Finance Act, 1994 Service tax 2 004-5 to 2005-06 CESTAT 37.81 -
Finance Act, 1994 Service tax 2 004-05 Deputy Commissioner 38.79 -
Circle Name : 1024 MAHARASHTA
Details of Disputed Cases - SERVICE TAX as on 31st March-18

205
Name of Period to which

Name of Statues Nature of Dues Forum where dispute is pending Amount (Rs.)
the SSA amount relates
Aurangabad Finance Act 1994, Service Tax 2005-2006 Interest on Short Payment CESTAT, Mumbai 22,17,818
Chandrapur Finance Act 1994, Service Tax 2005 Interest on delay in payment of CESTAT, Mumbai 1,78,153
Tax
Goa Finance Act 1994, Service Tax 2008-2009 Service Tax Claim The High Court Mumbai, Panjim 54,18,769
Bench

Finance Act 1994, Service Tax 1998-99 to 2001 Short payment of S.Tax Sec.73 CESTAT, Mumbai 2,19,46,018
Kolhapur Finance Act 1994, Service Tax 2002-2003 Interest on Short Payment Sec.75 CESTAT, Mumbai 61,289
Finance Act 1994, Service Tax 1998-1999 Interest on Short Payment Sec.75 CESTAT, Mumbai 7,96,557
Nanded Finance Act 1994, Service Tax 2009-2010 Interest & Penalty CESTAT, Mumbai 25,36,074
Raigad Finance Act 1994, Service Tax 2004-2005 Short payment of Service Tax CESTAT, Mumbai 47,13,186
Ratnagiri Finance Act 1994, Service Tax 2002 Interest on delay in payment of Commissioner of Excise & Service 38,37,281
Tax Tax, Ratnagiri.
Finance Act 1994, Service Tax 2002 Interest on delay in payment of CBEC, New Delhi 9,26,048
Tax
Sangli
Finance Act 1994, Service Tax 1999-2006 Non lavy of Service Tax on CCB/ CBEC, New Delhi 3,46,36,029
PCO
Circle Finance Act 1994, Service Tax Dec.2005 to Wrong availment of CENVAT Under Appeal with CESTAT, 1,27,42,394
Office Mar-2010 Mumbai
Circle Finance Act 1994, Service Tax 2010 to 2011 Wrong availment of CENVAT Under Appeal with CESTAT, 47,19,989
Office Mumbai
Circle Finance Act 1994, Service Tax 2011 to 2012 Wrong availment of CENVAT Under Appeal with CESTAT, 75,59,119
Office Mumbai
Circle Finance Act 1994, Service Tax 2012 to 2013 Wrong availment of CENVAT Under Appeal with CESTAT, 1,60,73,576
Office Mumbai
Finance Act 1994, Service Tax 2009-2010 Service Tax on Tatkal Deposits Apeal against O-i-O with 6,91,072
Commissioner(Appeals-II),
206
Mumbai-12
Pune
Finance Act 1994, Service Tax 2009-2010 Wrong availment of CENVAT Apeal against O-i-O with 30,87,679
Commissioner(Appeals-II),
Mumbai-12
Aurangabad Finance Act 1994, Service Tax 2004 to 2009 Wrong availment of CENVAT Under Appeal with CESTAT, 42,51,981
Mumbai
Gadchiroli Finance Act 1994, Service Tax 2004 to 2009 Wrong availment of CENVAT Under Appeal with CESTAT, 33,60,756
Mumbai
Chandrapur Finance Act 1994, Service Tax 2004 to 2009 Wrong availment of CENVAT Under Appeal with CESTAT, 86,70,359
Mumbai
Circle Finance Act 1994, Service Tax 2013 to2014 Wrong availment of CENVAT Under Appeal with CESTAT, 6,74,17,395
Office Mumbai
Raigad Finance Act 1994, Service Tax 2007-2010 Wrong availment of CENVAT Under Appeal with CESTAT, 29,56,216
Mumbai
Nagpur Finance Act 1994, Service Tax 2004-2009 Wrong availment of CENVAT on Under Appeal with CESTAT, 1,29,71,392
EPBT Mumbai
Amravati Finance Act 1994, Service Tax 2006-2009 Wrong availment of CENVAT on Under Appeal with CESTAT, 56,43,202
EPBT Mumbai
Osmanabad Finance Act 1994, Service Tax Wrong availment of CENVAT on 48974
EPBT
Details of Disputed Cases- INCOME TAX as on 31st March 2018
Name of the SSA Name of Statue Period to which Nature of dues Forum where dispute is pending Amount (Rs.)
amount relates
Raigad Income Tax Act 1961 2002-2007 Non-deduction of TDS The Commissioner of Income 3,93,75,000
Tax (Appeals)
Mumbai Civil Division Income Tax Act 1961 2006-07 to Short deduction of TDS ITAT, Mumbai 50,17,407
2008-09
207
Circle Name : 1035 KOLKATA TELEPHONE LINE
Statute Nature of Dues Forum Rs. in Lakhs Period

Service Tax under Finance Act, 1994 Service Tax CESTAT / Commissioner of 3103 July, 1994 to September, 1998
Central Excise – I
Service Tax under Finance Act, 1994 Service Tax CESTAT 149.99 October, 2000 to September, 2003
Service Tax under Finance Act, 1994 Service Tax CESTAT 1326.06 2003-04 to 2004-05
Service Tax under Finance Act, 1994 Service Tax CESTAT 758.92 2005-06 and 2007-08

Service Tax under Finance Act, 1994 Service Tax CESTAT 357.87 2009-10 to 2012-13
Service Tax under Finance Act, 1994 Service Tax CESTAT 521.16 April,2010 to July,2014
Service Tax under Finance Act, 1994 Service Tax Asst. Comm., Service Tax 8.78 2013-14
Service Tax under Finance Act, 1994 Service Tax Commissioner of Central 2.1 2014-15
Excise (Appeal)
Circle Name : 1051 WTR
Particular Place Amount (in Rs) Period

Service Tax Penalty Bhopal Rs.64748169 01.06.2007 to 30.09.2008
Circle Name : 1061 WTP
Particular Place Amount (in Rs)

Entry Fee Jablapur Rs.24967480
Circle Name : 1025 NE I
Name of Statute Nature of dues Amount (in Rs) Period to which the Forum where dispute is pending
amount relates
Service Tax Service Tax and Penalty 31.71 lakhs F. Y. 2012-13 CESTAT, Kolkata
Service Tax Service Tax and Penalty 41.54 lakhs N.A. CESTAT, Kolkata
208
Service Tax Service Tax and Penalty 26.49 lakhs N.A. NE-1, East Khasi Hills, CESTAT Shillong
Circle Name : 1029

RAJASTHAN
“Amount Amount Disputed

“Addition/ Libility
Name of Nature of under under Amount Amount not amount
Forum where case Deletion Period to which Deposit Amount not provided
Busi-ness Statutory litigation Litigation As deposited deposited in Nature of Dues shown as Comparision
is pending during amount relates GL deposited in the
Area dues As on on 31-03- under protest disputed cases contingent
2017-18” books
31-03-2017” 2018 liability
Alwar Service Tax Supdt. Service tax 6,262 0 6,262 0 6,262.00 Non payment of service tax under RCM on April 15 to sept.15 2610311 6,262 0 6,262 Same as
division Alwar legel service 31.03.2017
Udaipur Service Tax Cental excise, Audit 7,970 0 7,970 0 7,970.00 Non payment of service tax on a/c of legal & JAN, 14 To 2610311 7,970 0 7,970 Same as
Commissioner consultancy service FEB, 15 31.03.2017
Jaipur
Alwar Service Tax Asstt Commissioner 13,094 0 13,094 0 13,094.00 Non payment of service tax under RCM on Oct.14 to Mar.15 2610311 13,094 0 13,094 Same as
Service Tax Division legel service 31.03.2017
Alwar
Udaipur Service Tax Commissioner, 36,292 0 36,292 0 36,292.00 wrongly availed cenvat credit on tower APR,08 To 2610311 36,292 0 36,292 Same as
Cental excise, Jaipur material MAR, 09 31.03.2017
CGMT, Jaipur Service Tax Commissioner 63,000 63,000 4,725 58,275 S.t. on Payment to Advocate Rs.509480/- JULY 2012 TO 2610311 0 0 63,000 New Case
Appeal Jaipur MARCH 2015
2017-18” books
31-03-2017” 2018 liability
CGMT, Jaipur Service Tax Commissioner 62,972 0 62,972 0 62,972.00 Demand of Service Tax in respect of legal July-2012 to 2610311 62,972 0 62,972 Same as
Appeal Jaipur services received from the advocates, March-2015 31.03.2017
Rs.62,972.00/- and 7.5% of it deposited as
advance deposit of Service Tax in May-2017
before filing of appeal before commissioner
(Appeal)
Alwar Service Tax Asstt Commissioner 65,583 0 65,583 0 65,583.00 Non payment of service tax under RCM on july 12 to sept.14 2610311 65,583 0 65,583 Same as
Service Tax Division legel service 31.03.2017
Alwar
Jodhpur Service Tax Commissioner 80,436 0 80,436 6,100 74,336.00 The assessee was availing Cenvate credit 10-09-2004 to 2610311 74,336 0 80,436 Same as
(Appeal) Service Tax of service tax paid on repair, maintenance 06-08-2008 31.03.2017
Division Jaipur and operation services provided at various
telephone Excanges situated out side the
jurisdication of the assessee i.e the Nagaur,
Barmer & Jaisalmer Districts. As such the
cenvate credit of service tax paid amounting
742926/- paid on taxable services over the
period from 10-09-2004 to 06-08-2008
which were not used by assessee as input
service in relation to output services provided
by the assessee, hence the the cenvat of
209
service tax paid on taxable service not used

as input servicesfor providing output service
appears to be inadmissible to the asseesee.
Jodhpur Service Tax Commissioner 101,600 0 101,600 7,620 93,980.00 Appeal for Rs. 101600 againstApril 2014 01-04-2014 to 2610311 93,980 0 101,600 Same as
(Appeal) Service Tax to Sept2015 2013 Non Payment of RCM On 30-09-2015 31.03.2017
Division Jaipur legal Services
Jodhpur Service Tax Commissioner 104,537 0 104,537 8,000 96,537.00 Appeal for Rs. 104537 against 46 ST/2015 01-07-2012 to 2610311 96,537 0 104,537 Same as
(Appeal) Service Tax Assistant Commissioner Service Tax Division 30-09-2013 31.03.2017
Division Jaipur Jodhpur July 2012 to March 2014Wrongly
availment of Cenvate credit for payment of
RCM as Rent a Cab

Jodhpur Service Tax CCE II JAIPUR 118,826 0 118,826 0 118,826.00 Appeal for Rs. 118826/- Refund of Exess Audust-2012 to 2610311 118,826 0 118,826 Same as
deposit Service tax against OIO18/2013-R(ST November-2012 31.03.2017
dated 28-11-2013
CGMT, Jaipur Service Tax CESTAT New Delhi 165,240 0 165,240 0 165,240.00 Excise department alleged for Non payment 01-10-2001 TO 2610311 165,240 0 165,240 Same as
of Service tax on venity number charges on 31-12-2006 31.03.2017
Sale Sim cards
Jodhpur Service Tax Commissioner 222,427 0 222,427 16,700 205,727.00 Appeal for Rs. 222427 against April 2014 01-04-2014 to 2610311 205,727 0 222,427 Same as
(Appeal) Service Tax toSept 2015 Wrongly availment of Cenvate 30-09-2015 31.03.2017
Division Jaipur credit for payment of RCM as Rent a Cab
Bhilwara Service Tax Commissioner of 257,278 0 257,278 19,296 237,982.00 (i) Amtt equal to cenvate availed on capital 01.04.2014 TO 2610311 237,982 0 257,278 Same as
Service Tax, Jaipur/ goods sale of scrap. Rs. 240839 (ii) Sr.Tax 31.03.2015 31.03.2017
Udaipur not paid on payment of legal fee to Advocate
Rs. 16439
Alwar Service Tax Commissioner 263,322 263,322 16,876 246,446 Cenvat input utilization on rent-a-cab May 2013 to 2610311 246,446 0 263,322 New case
Appeal Jaipur Sept-2015
2017-18” books
31-03-2017” 2018 liability
Ajmer Service Tax Joint Comm. 400,992 400,992 0 400,992 WRONGLY AVAILED CENVAT CREDIT OCTOBER-2010 2610311 400,992 0 400,992 New case
Central Excise DURING THE PERIOD OCTOBER-2010 TO TO
Commissionerate, SEPTEMBER-2015 ON RENT A CAB SERVICE SEPTEMBER-2015
Ajm AND MAINTENANCE &REPAIR SERVICE
Jodhpur Service Tax CESTAT New Delhi 742,926 0 742,926 300,000 442,926.00 The assessee was availing Cenvate credit 10-09-2004 to 2610311 442,926 0 742,926 Same as
of service tax paid on repair, maintenance 06-08-2008 31.03.2017
and operation services provided at various
telephone Excanges situated out side the
jurisdication of the assessee i.e the Nagaur,
Barmer & Jaisalmer Districts. As such the
cenvate credit of service tax paid amounting
742926/- paid on taxable services over the
period from 10-09-2004 to 06-08-2008
which were not used by assessee as input
service in relation to output services provided
by the assessee, hence the the cenvat of
service tax paid on taxable service not used
as input servicesfor providing output service
appears to be inadmissible to the asseesee.
CGMT, Jaipur Service Tax Commissioner 484,005 0 484,005 0 484,005.00 Wrong availment of Service tax credit as Jul-2010 to Oct- 2610311 484,005 0 484,005 Same as
Central Excise alleged by Excise Department 2012 31.03.2017
210
(Appeal-II), Jaipur
Udaipur Service Tax Cental excise, Audit 491,390 0 491,390 0 491,390.00 Availed and utilized in admissible input NOV, 11 To 2610311 491,390 0 491,390 Same as
Commissioner service in r/o service tax paid by post office SEP, 15 31.03.2017
Jaipur
Jodhpur Service Tax Superintendent 624,548 0 624,548 0 624,548.00 Short payment of Service Tax 10.09.2004 to 2610311 624,548 0 624,548 Same as
, Service Tax , 31.03.2008 31.03.2017
Range-V, B.P. Tank
ke samne, Jaisalmer
Ajmer Service Tax Asst. Comm. 694,871 0 694,871 52,115 642,756.00 WRONGLY AVAILED CENVAT CREDIT MARCH-2012 TO 2610311 642,756 0 694,871 Same as
Central Excise DURING THE PERIOD MARCH-2012 TO JUNE-2013 31.03.2017
Commissionerate, JUNE-2013 ON IMPROPER DOCUMENTS
Ajmer AND ON IN ELIGIBLE SERVICES
Bhilwara Service Tax Commissioner of 683,028 0 683,028 0 683,028.00 1. WRONG AVAILMENT CENVAT APRIL 2011 TO 2610311 683,028 0 683,028 Same as
Service Tax, Jaipur/ ON RENT A CAB, POST OFFICE SEPT 2015 31.03.2017
Udaipur COMMISSION AND CLI/MODEM SOLD
2. NOT PAID SERVICE TAX ON ADVOCATE
BILL AND FREE LL/BB SERVICE PROVIDED
TO EMPLOYEE
Sriganganagar Service Tax Addl Commisioner 732,242 0 732,242 0 732,242.00 Regarding wrongly taken & utilization of 2010-11 to 2610311 732,242 0 732,242 Same as
Centeral Exices CENVAT credit 2014-15 31.03.2017
Bikaner
2017-18” books
31-03-2017” 2018 liability
Ajmer Service Tax Joint Comm. 756,266 0 756,266 0 756,266.00 SERVICE TAX PAID BY BSNL DURING 01-04-2008 TO 2610311 756,266 0 756,266 Same as
Central Excise THE PERID 01-04-2008 TO 28-02-2009 28-02-2009 31.03.2017
Commissionerate, ON THE BASIS OF RATE OF SERVIVE TAX
Ajm APPLICABLE ON THE DATE OF ISSUE
OF THE BILLS WHERE AS EXCISE DEPT
DEMANDED SERVICE TAX ON THE RATE
APPLICABLE DURING THE PERIOD OF
DISPUTE
Udaipur Service Tax Commissioner, 808,917 808,917 0 808,917 Short payment of Service Tax 01.03.2010 to 2610311 808,917 0 808,917 New case
Cental excise, Jaipur 07.04.2011
Udaipur Service Tax Cental excise, Audit 907,620 0 907,620 0 907,620.00 Short payment of ST for concessional BB & OCT, 11 To 2610311 907,620 0 907,620 Same as
Commissioner mobile to employee SEP, 15 31.03.2017
Jaipur
Srigangangar Entry Tax Rajasthan High 1,843,978 1,843,978 921,989.00 921,989 Entry Tax Matter 2610401 0 1,843,978 New Case
Court
Jodhpur Service Tax Hon’ble 968,410 0 968,410 0 968,410.00 Cenvat credit against Capital goods 10.09.2004 to 2610311 968,410 0 968,410 Same as
Commissioner transferred to other SSA of 9,68,410/- u/r 15 31.03.2008 31.03.2017
(Appeals-II) Customs of CCR, 2004 read with section 78 of the
and Central Excise Finance Act,1994
, Jaipur
211
Jodhpur Service Tax Additional 985,797 0 985,797 0 985,797.00 Short payment of Service Tax April 2009 to Feb 2610311 985,797 0 985,797 Same as
Commissioner 2011 31.03.2017
, Central Excise
& Service Tax,
Central Excise
Commissionerate
, NCR Building,
Jaipur-II
Jhunjhunu Service Tax Commissioner 1,151,320 0 1,151,320 52,378 1,098,942.00 I None payment of duty on sale of scrap of Aug.2012 to Sept 2610311 1,098,942 0 1,151,320 Same as
Appeal capital goods (used battaries) which cenvat 2015 31.03.2017
credit Availed II Cevat credit not reversed on

sale of Modem sold to their customers during
the period 2012-13 to 2013-14 iii none
payment of Legal consultancy service during
the period 2012-13 to 2013-14 IV None
payment of I(nterest on delayed payment of
service tax during the period May 2012
Sriganganagar Service Tax Addl Commisioner 1,139,129 0 1,139,129 0 1,139,129.00 “Regarding wrongly taken & April 2008 to 2610311 1,139,129 0 1,139,129 Same as
Centeral Exices utilization of CENVAT credit March 2009 31.03.2017
Jodhpur “
Kota EPF PF TRIBUNAL N.D 1,244,756 0 1,244,756 0 1,244,756.00 The belated remittance of PF dues of 15 2000-2001 to 2611100 1,244,756 0 1,244,756 Same as
employees recruited under compassionate 2006-2007 31.03.2017
ground attarcted interest under Section 7Q of
376940/- and damages under section 14 B of
Rs. 867816/- (Total of Rs. 1244756) of the EPF
and MP Act, 1952.
2017-18” books
31-03-2017” 2018 liability
Udaipur Service Tax CESTAT New Delhi 2,283,201 0 2,283,201 1,000,000 1,283,201.00 Disallowance of cenvat credit prior to APR, 05 To 2610311 1,283,201 0 0 Decided in
registration NOV, 06 f/o BSNL
after March,
18
Jodhpur Service Tax Hon’ble High 1,314,508 0 1,314,508 0 1,314,508.00 Cenvat Credit on Tower and Parts thereof 01.10.2008 to 2610311 1,314,508 0 1,314,508 Same as
Court, Jodhpur in respect of Capital Goods in the month of 31.03.2009 31.03.2017
(Rajasthan) November-2008 and utilized the credit in the
month of Feb-2009
Udaipur Service Tax Commissioner, 1,670,355 0 1,670,355 0 1,670,355.00 wrongly availed Cenvet credit 1.3.2010 to 2610311 1,670,355 0 1,670,355 Same as
Cental excise 31.3.2012 31.03.2017
(Appeal), Jaipur
Alwar Service Tax CESTAT New Delhi 1,857,083 0 1,857,083 135,710 1,721,373.00 Disallow the cenvat credit availed on parts Dec.2007 2610311 1,721,373 0 1,857,083 Same as
of tower 31.03.2017
Kota EPF PF TRIBUNAL N.D 1,725,197 0 1,725,197 0 1,725,197.00 Amount of Rs. 1725197 appropriated by 5 years 2611100 1,725,197 0 1,725,197 Same as
the Assistant Provident Fund Commissioner 31.03.2017
Kota Rajasthan vide impugned order dated
20.04.2012
Sriganganagar Service Tax Addl Commisioner 1,771,107 0 1,771,107 0 1,771,107.00 Regarding wrongly taken & utilization of April 2009 to Sep 2610311 1,771,107 0 1,771,107 Same as
Centeral Exices CENVAT credit 2009 31.03.2017
212
Jodhpur
Alwar Entry Tax Rajasthan High 3,600,829 0 3,600,829 1,800,414 1,800,415.00 Entry Tax Matter Jan 10 to Dec.14 2610401 1,800,415 0 3,600,829 Same as
Court, Bench-Jaipur 31.03.2017
CGMT, Jaipur Service Tax Commissioner 2,080,133 2,080,133 156,010 1,924,123 S.T. on LD deducted Rs.16829446/- JULY 2012 TO 2610311 0 0 2,080,133 New Case
Appeal Jaipur MARCH 2015
CGMT, Jaipur Service Tax Commissioner 2,080,120 0 2,080,120 0 2,080,120.00 Demand of Service Tax on Liquidated July-2012 to 2610311 2,080,120 0 2,080,120 Same as
Appeal Jaipur Damages Rs. 20,80,120.00/- and 7.5% of it March-2015 31.03.2017
deposited as advance deposit of Service Tax
in May-2017 before filing of appeal before
commissioner (Appeal)
Jodhpur Service Tax Commissioner 2,322,165 2,322,165 0 2,322,165 Short payment of Service Tax wrong credit 01.04.2012 to 2610311 2,322,165 0 2,322,165 New case
Service Tax Jodhpur availed and utilised CENVAT Credit 31.03.2015
Jodhpur Service Tax CESTAT New Delhi 2,396,431 0 2,396,431 0 2,396,431.00 Cenvat Credit against Tower Material as 10.09.2004 to 2610311 2,396,431 0 2,396,431 Same as
Capital Goods of Rs. 23,75,327/- + Rs. 22.04.2008 31.03.2017
21,104/- plus Interest
Udaipur EPF EPFO, Double 2,600,078 2,600,078 0 2,600,078 SECURITY GUARD WAGES MATTER 2004 2611100 2,600,078 0 2,600,078 New case
Bench, Jodhpur
CGMT, Jaipur Service Tax Joint Comm., 3,160,121 0 3,160,121 237,009 2,923,112.00 Service Taxnot paid on the income booked 2013-14 (Oct.-13 2610311 2,923,112 0 3,160,121 Same as
Cernatal Excise in their books of accounts in respect of ,Nov.-13) 31.03.2017
Commissionerate, issueance of monthly Advice Debit Notes up
Jaipur on M/s CMTS Jaipur.
Sriganganagar Service Tax Addl Commissioner 3,197,436 0 3,197,436 0 3,197,436.00 Regarding wrongly taken & utilization of Oct 2010 to Sep 2610311 3,197,436 0 3,197,436 Same as
Centeral Exices CENVAT credit 2011 31.03.2017
Commissioner JP
2017-18” books
31-03-2017” 2018 liability
Bikaner Service Tax Commissioner of 3,589,882 3,589,882 0 3,589,882.00 na 2610311 3,589,882 0 0 Decided in
Central Excise, f/o BSNL
Jaipur after March,
18
Jodhpur Service Tax CESTAT New Delhi 3,864,642 0 3,864,642 0 3,864,642.00 Regarding CENVAT Credit of Tower material 10.09.2004 to 2610311 3,864,642 0 3,864,642 Same as
31.03.2008 31.03.2017
Udaipur Service Tax Commissioner, 5,250,516 0 5,250,516 911,000 4,339,516.00 Wrongly availed cenvat credit on goods OCT,06 To 2610311 4,339,516 0 5,250,516 Same as
Cental excise, Jaipur received on ATD MAR,07 31.03.2017
Sriganganagar Service Tax Addl Commisioner 6,256,061 0 6,256,061 688,000 5,568,061.00 “Regarding wrongly taken & Oct 2006 to 2610311 5,568,061 0 6,256,061 Same as
Centeral Exices utilization of CENVAT credit March 2008 31.03.2017
Jodhpur “
CGMT, Jaipur Service Tax CESTAT New Delhi 6,464,779 0 6,464,779 484,859 5,979,920.00 Excise department alleged for wrong Period from 2610311 5,979,920 0 6,464,779 Same as
availment of CENVAT Credit of Tower March-2005 to 31.03.2017
material Oct-2005
Udaipur Service Tax Commissioner, 6,722,178 0 6,722,178 470,594 6,251,584.00 wrongly availed cenvat credit on tower APR,08 To 2610311 6,251,584 0 6,722,178 Same as
Cental excise, Jaipur material MAR, 09 31.03.2017
Udaipur Service Tax Commissioner, 6,887,187 0 6,887,187 0 6,887,187.00 Wrongly availed cenvat credit on goods APR,07 To SEP,07 2610311 6,887,187 0 6,887,187 Same as
Cental excise, Jaipur received on ATD 31.03.2017
213
Jodhpur Entry Tax Hon’ble High 15,331,204 15,331,204 7,665,602 7,665,602 Entry Tax Matter 01.04.2009- 2610401 7,665,602 0 15,331,204 New case
Court, Jodhpur 31.03.2015
(Rajasthan)
CGMT, Jaipur Service Tax Joint Commissioner 10,746,516 0 10,746,516 805,600 9,940,916.00 Demand of Service Tax of Rs. 1,07,46,516.00/- 2011-2015 2610311 9,940,916 0 10,746,516 Same as
of Service Tax on Service mobile connection to BSNL 31.03.2017:
executives during Oct-11 to Dec-15 Deposit
in CY
P G M T D , VAT Rajasthan High 11,145,670 11,145,670 0 11,145,670 Contempt case against the Commercial 2005-06 to 2610401 11,145,670 0 11,145,670 New case
Jaipur Court, Bench-Jaipur Deptt., Govt. of Raj 2009-10
CGMT, Jaipur Entry Tax Rajasthan High 98,651,202 98,651,202 87,314,005.00 11,337,197 Entry Tax Matter 2009 to FEB.2015 2610401 0 98,651,202 New Case

Court, Bench-Jaipur
P G M T D , Entry Tax Rajasthan High 12,720,192 12,720,192 1,033,838 11,686,354 Regarding entry tax defended by various SSA 2005-2012 2610401 11,686,354 0 12,720,192 New case
Jaipur Court, Bench-Jaipur /BA’s and CSTD Jaipur
P G M T D , Service Tax CESTAT New Delhi 12,318,965 12,318,965 0 12,318,965.00 Wrong availment of CENVAT credit as 04/01/2009 2610311 12,318,965 0 12,318,965 Same as
Jaipur alleged by Excise Department 31.03.2017
P G M T D , Service Tax CESTAT New Delhi 16,903,324 14,178 16,917,502 0 16,917,502.00 Interest on wrong availment of Cenvat March 2011 to 2610311 16,917,502 0 16,917,502 Same as
Jaipur Sept.2011 31.03.2017
CGMT, Jaipur Service Tax CESTAT New Delhi 21,941,394 0 21,941,394 1,645,605 20,295,789.00 Excise department alleged for wrong Period from Jul- 2610311 20,295,789 0 21,941,394 Same as
availment of CENVAT Credit of whole 2009 to Sept-2009 31.03.2017
amount in same financial year of capital
goods
CGMT, Jaipur Service Tax CESTAT New Delhi 28,466,430 0 28,466,430 2,134,983 26,331,447.00 Wrong availment of CENVAT credit as Period from Oct- 2610311 26,331,447 0 28,466,430 Same as
alleged by Excise Department 2008 to Sept-2009 31.03.2017
2017-18” books
31-03-2017” 2018 liability
CGMT, Jaipur Service Tax CESTAT New Delhi 34,550,644 0 34,550,644 2,591,298 31,959,346.00 Excise department alleged for wrong Period from 2610311 31,959,346 0 34,550,644 Same as
availment of CENVAT Credit of whole April-2009 to 31.03.2017
amount in same financial year of capital Sept-2009
goods
CGMT, Jaipur Service Tax CESTAT New Delhi 80,182,808 0 80,182,808 6,013,710 74,169,098.00 Excise department alleged for wrong 2008-2009 2610311 74,169,098 0 80,182,808 Same as
availment of CENVAT Credit amount. 31.03.2017
P G M T D , Service Tax CESTAT New Delhi 98,774,781 0 98,774,781 7,408,109 91,366,672.00 Cenvat disallowed of ATD’s of CTSD Oct.2005 to 2610311 91,366,672 0 98,774,781 Same as
Jaipur Sept.2006 31.03.2017
CGMT, Jaipur Service Tax CESTAT New Delhi 130,729,505 0 130,729,505 9,804,677 120,924,828.00 The assessee has not paid Service Tax on the 2009 -10, 2010- 2610311 120,924,828 0 130,729,505 Same as
income booked in their books of accounts in 11, 2011-12, 31.03.2017
respect of issueance of monthly Advice Debit 2012-13 &
Notes up on M/s CMTS Jaipur. 2013-14(Up tp
Sept.-2014)
CGMT, Jaipur Service Tax CESTAT New Delhi 129,932,128 0 129,932,128 0 129,932,128.00 CENVAT amounting Rs.129932128 availed From Oct-2006 to 2610311 129,932,128 0 129,932,128 Same as
by Circle CMTS wing for whole Rajasthan, March-2008 31.03.2017
but Excise Department has alleged wrong
availment beyond the Registered premises
CGMT, Jaipur VAT Assitant 150,000,000 0 150,000,000 0 150,000,000.00 Demands of VAT on deemed rental of Rs. 2011-12 2610401 150,000,000 0 150,000,000 Same as
Commissioner, 15.00 Crores for FY 2011-12 31.03.2017
214
Commercial Taxes,
Jaipur
Total 787,897,071 151,834,913 939,731,984 133,706,822 806,025,162.33 791,783,578 0 933,858,901
Circle Name : 1031 UP (EAST)
Nature of Amount (in Period to which the Forum where dispute is Amount
Name of the SSA Name of the Statute Remarks
Dues Rs,) amount relates pending Deposited
Orai Income Tax TDS on 1948254 2009-10 & 2011-12 Income Tax Appellate Decision in similar type of case of 1948254
Discount Tribunal Lucknow other circles came in favor of BSNL
Kanpur Income Tax TDS on 2756714 2009-10 & 2011-12 Income Tax Appellate Decision in similar type of case of 2756714
Banda Income Tax TDS on 992363 2009-10 & 2011-12 Income Tax Appellate Decision in similar type of case of 992363
Hamirpur Income Tax TDS on 2673176 2009-10 & 2011-12 Income Tax Appellate Decision in similar type of case of 2673176
Jhansi Income Tax TDS on 2617870 2009-10 & 2011-12 Commissioner of Income Tax Decision in similar type of case of 523568
Discount (Appeal-II) Agra other circles came in favor of BSNL
Farrukhabd Income Tax TDS on 1855412 2009-10 & 2011-12 ITO (TDS) Aligarh Decision in similar type of case of 0
Discount other circles came in favor of BSNL
TDM,Banda Finance Act 1994 Service Tax 2229000 2003-06 CESTAT, Allahabad Appeal filed, hearing in process
GMTD,Gorakhpur Finance Act 1994 Service Tax 7950282 2005-09 CESTAT, Allahabad Appeal filed at CESTAT
PGMTD, Lucknow Finance Act 1994 Service Tax 66174062 2005-08 CESTAT, Allahabad Stay on Demand
TDM,Shahjahanpur Finance Act 1994 Service Tax 4357207 2002-03 CESTAT, Allahabad Stay on Demand
RTTC,Lucknow Finance Act 1994 Service Tax 880000000 2008-2009 to CESTAT, Allahabad Appeal filed at CESTAT 61437801
2012-13
Mobile Service Finance Act 1994 Service Tax 48724823 2009-10 to 2011-12 CESTAT, Allahabad Appeal filed, hearing in process 3287104
GMTD,Azamgarh Finance Act 1994 Service Tax 41648428 2007-08 to 2010-11 CESTAT, Allahabad Appeal filed, hearing in process 3123662
GMTD, KANPUR Finance Act 1994 Service Tax 15242199 Oct-2000 to Sep- CESTAT, ALLAHABAD Appeal filed, hearing in process 1143165
2003
TDM, FATEHPUR Finance Act 1994 Service Tax 3008660 2011-12 CESTAT ALLAHABAD Appeal filed, hearing in process 300867
TDM,HAMIRPUR UP Trade Tax 1948 UP VAT 2099081 2003-05 Dy Commissioner / Asst. Final Stage Hearing Complete,
Commisioner Sales Tax Judgement awaited
Hamirpur
TDM ,Sitapur UP Trade Tax 1948 UP VAT 2709550 1987-2004 High Court , Lucknow Appeal at High Court is pending
215
GMTD, Basti UP Trade Tax 1948 UP VAT 79078.4 1996-2005 Dy.Commissioner, Trade Tax Appeal Pending
Basti
GMTD,Jhansi UP Trade Tax 1948 UP VAT 2359163 2003-05 High Court Allahabad Pending in High Court
TDM ,Azamgarh UP Trade Tax 1948 UP VAT 5252050 1987-2005 High Court Allahabad Pending in High Court
TDM,Barabanki UP Trade Tax 1948 UP VAT 2787000 2001-04 Joint Commisioner , Lucknow Appeal Pending
GMTD ,Faizabad UP Trade Tax 1948 UP VAT 2097323 1987-1996 Assitant Commissioner.Trade Appeal Pending
Tax. Faizabad

TDM,Shahjahanpur UP Trade Tax 1948 UP VAT 1013034 2003-05 Joint Commissioner ( Appeals), Appeal Pending
Bareilly
GMTD ,Kanpur UP Trade Tax 1948 UP VAT 7479335 2007-08 Tribunal (Trade Tax) Appeal Pending at Tribunal Trade
Tax , Kanpur
GMTD ,Deoria UP Trade Tax 1948 UP VAT 690000 2000-05 Assitant Commissioner.Trade Appeal Pending
Tax. Deorea
TED,Allahabad UP Trade Tax 1948 UP VAT 4616300 1987-1996 High Court Allahabad Appeal Pending
TCD,Allahabad UP Trade Tax 1948 UP VAT 1541700 1987-1996 High Court Allahabad Appeal Pending
GMTD,Varanasi UP Trade Tax 1948 UP VAT 8286084 1986-2005 Joint Commissioner , Appeal Appeal has been heared , Judgement
Varanasi is reserved
GMTD, Mirzapur UP Trade Tax 1948 UP VAT 657706 2000-01 High Court Allahabad Appeal Pending
TDM,Banda UP Trade Tax 1948 UP VAT 398.9 2003-04 Trade Tax Department Local Pursuance
Circle UP Trade Tax 1948 UP VAT 6033950 2002-2005 High Court Allahabad High Court
Office,Lucknow 2008
Circle Office, UP VAT Act 2008 UP VAT 1022734 2005-06 Ist Appeal pending u/s 41(8)
Lucknow
Circle Office, UP VAT Act 2008 UP VAT 582938 2012-13 Ist Appeal pending u/s 28(2)(i)
Lucknow
Circle Office, UP VAT Act 2008 UP VAT 583317 2013-14 Ist Appeal pending 28(2)
Lucknow
Circle Office, UP VAT Act 2008 UP VAT 252618 2006-07 Ist Appeal pending 28(2)
Lucknow
Circle Office, UP VAT Act 2008 UP VAT 470352 2007-08 part-I Ist Appeal pending 28(2)
Lucknow
GMTD,Gorakhpur UP Trade Tax 1948 UP VAT 29710286 1987-2004 Assitt.Commissioner, Trade Local Pursuance
Tax, Gorakhpur.
TDM,Hardoi UP Trade Tax 1948 UP VAT 2685650 1998-99 to 2004-05 Commisioner (Appeals), Local Pursuance
Lucknow
216
TDM,Shahjahanpur UP Trade Tax 1948 UP VAT 4035550 2003-05 Joint Commissioner ( Appeal Pending 1013034
Appeals) , Bareilly
TDM,Mau UP VAT Act 2008 UP VAT 659945 2003-2004 and High Court Allahabad Appeal Pending
2011-2012
TDM ,Azamgarh UP Trade Tax 1948 Entry Tax 4611598 2001-2002 TO 2004- SUPREME COURT PENDING IN HON’BLE SUPREME
2005 COURT, DELHI
TDM, Ghazipur Entry of Goods into Entry Tax 2271500 2007-08 50% stay granted by High High Court
Local Areas Act Court
2007
TDM,Mau Entry of Goods into Entry Tax 659945 1996-2005 Appeal in Supreme Court Appeal Pending
Local Areas Act
2007
GMTD KANPUR Entry of Goods into Entry Tax 3218920 2004-05 Tribunal (Trade Tax) Kanpur Appeal Pending at Tribunal Trade
Local Areas Act Tax , Kanpur
2007
GMTD KANPUR Entry of Goods into Entry Tax 2990140 2003-04 Tribunal (Trade Tax) Kanpur Appeal Pending at Tribunal Trade
Local Areas Act Tax , Kanpur
2007
GMTD,Varanasi Municipal Tax House tax 662556 2012-13,2013-14 Cantonment Board Appeal filed
1184298252
Circle Name : 1032 UP (W)
Name of the Nature of Gross Amount Balance Forum where dispute is

Name of the SSA paid (till amunt not Prior to which it relates
Statute the dues Amount date) paid pending in F.Y. 2017-18
CGMT-Meerut Entry Tax ACT Entry Tax 5496000 0 5496000 2005-06 & 2006-07 High Court Allahabad
CGMT-Meerut Entry Tax ACT Entry Tax 13881924 2776385 11105539 2007-08 Joint Commissioner Appeal (Trade
Tax)
CGMT-Meerut Entry Tax ACT Entry Tax 73681893 14020518 59661375 2005-06 & 2006-07 High Court Allahabad
CGMT-Meerut Entry Tax ACT Entry Tax 27624893 5524978 22099915 2007-08 Joint Commissioner Appeal (Trade
Tax)
CGMT-Meerut VAT ACT VAT 9382978 0 9382978 2013-14 Commissioner Appeals Meerut
CGMT-Meerut Entry Tax Entry Tax 32500000 0 32500000 2013-14 Commissioner Appeals Meerut
CGMT-Meerut VAT Act VAT 1481802 0 1481802 2007-08 Commissioner Appeals Meerut
CGMT-Meerut Entry Tax Entry Tax 17950000 0 17950000 2010-11 Commissioner Appeals Meerut
CGMT-Meerut Entry Tax ACT Entry Tax 15323059 0 15323059 2010-11 Commissioner Appeals Meerut
217
CGMT-Meerut Sales Tax Act VAT 520979 0 520979 2012-13 Commissioner Appeals Meerut
CGMT-Meerut Sales Tax Act Central Sales 1371337 0 1371337 2014-15 Commissioner Appeals Meerut
Tax
CGMT-CMTS-Section Service Tax Cenvat Credit 4469631 0 4469631 2010 to 2015 Commissioner Appeals. Hearing

done, Order not received.
CGMT-CMTS-Section Service Tax Cenvat Credit 44946723 0 44946723 2009 to 2012 CESTAT Allahabad
CGMT-IOBAS-Section Service Tax Cenvat Credit 135661153 0 135661153 2012 to 2014 CESTAT Allahabad
GMTD AGRA Income Tax Act TDS to PCO 3057881 0 3057881 2005-06 ITAT
1961 Comm
GMTD AGRA Income Tax Act TDS to PCO 1619317 0 1619317 2006-07 ITAT
1961 Comm
GMTD AGRA Sales Tax Act Service Tax 75004548 0 75004548 2009-2014 CESTAT
GMTD AGRA Sales Tax Act Sales Tax 6106700 0 6106700 2016 Sale Tax Deptt. Agra
GMTD AGRA Sales Tax Act Sales Tax 1928336 0 1928336 2011 High Court Allahabad
GMTD AGRA Sales Tax Act Sales Tax 1307561 0 1307561 2011 High Court Allahabad
GMTD AGRA Service Tax Cenvat Credit 36717711 0 2009-2012 CESTAT Allahabad
GMTD Aligarh FINANCE ACT TR BILLING 4201130 0 4201130 1994-2014 District Court, Aligarh
1994
GMTD Aligarh FINANCE ACT SALES TAX 1250000 0 1250000 2000 District Court, Aligarh
1994
GMTD Aligarh FINANCE ACT SERVICE TAX 447187 0 447187 2016 District Court, Aligarh
1994
GMTD Bareilly SALES TAX ACT SALES TAX 12388507 0 12388507 1977-78 TO 2004-05 High Court Allahabad & TRADE
TAX TRIBUNAL BAREILLY
218
GMTD Bulandshahar Service Tax CENVAT 844961 2009-2013 Commissioner Appeals

Credit
GMTD Bulandshahar Income Tax TDS 9194104 3227124 2016 IT Meerut
GMTD Ghaziabad Contract Act Contractual 20500000 5000000 15500000 1997-98 High Court Allahabad
Obligation
GMTD Ghaziabad Finance Act 1994 Service Tax 120000000 0 120000000 2005-06, 2006-07 CESTAT Allahabad
GMTD Ghaziabad Service Tax CENVAT 8405251 0 2007 to 2009 CESTAT Allahabad
Credit
GMTD Mathura Sales Tax Sales Tax 4801934 1969628 2832311 FY 2003-04 Appeal pending at Commissioner
Agra
GMTD Mathura Service Tax Service Tax 312053 0 312053 FY2009-10 Appeal pending at Asst
Commissioner mathura after the
decision of CESTAT Alld
GMTD Meerut Sales Tax 5031004 20 Lacs 3031004 99-00,01-02,03-04 Allahabad HC

GMTD Meerut CE & STAT Appeal by 4066300 0 4066300 2011-12 Allahabad HC
excise Deptt.
GMTD Moradabad EPF EPF 1000000 0 1000000 2013-14 EPF Comm.

GMTD Moradabad Sales Tax Sales Tax 4773971 0 4773971 Prior to 2010 Sales Tax Comm.
GMTD Muzaffarnagar Income Tax ACT TDS ON 6013941 4200000 1813941 2002-03 COMMISSONER OF IT APPEAL
1961 STD PCO
COMMISSION
GMTD Muzaffarnagar ENTRY TAX ACT ENTRY TAX 3478307 1755826 1722481 2000-2005 HIGH COURT ALLAHBAD
GMTD Muzaffarnagar Service Tax Short Payment 1606161 0 2008 to 2013 Commissioner Appeals. Hearing
of Service Tax done . Order not received.
GMTD Noida Recovery of dues Recovery of 18977030 0 18977030 2004-05 High Court Allahabad
dues
GMTD Noida Recovery of dues Recovery of 41136 0 41136 2014-15 District consumer GB Nagar Court
dues
GMTD Noida Recovery of dues Recovery of 196795 0 196795 1999-00 District Court Civil, GB Nagar
dues
dues
219
dues
dues
dues
dues

dues
dues
dues
dues
dues
dues
GMTD Noida Income tax Act. Short 522214 0 522214 2015-16 ITAT New Delhi
deduction of
TDS
GMTD Noida Income tax Act. TDS penalty 10650871 0 10650871 2008-09 ITAT New Delhi
GMTD Noida Commercial Tax Entry Tax 820764 0 820764 2003-04 Addl. Commissioner
Noida
GMTD Noida Arbitration Act Arbitration 3727753 0 3727753 2017-18 Arbitrator, Noida
matter
GMTD Noida Excess Billing Excess Billing 6291909 0 6291909 2015-16 District Court Ghaziabad
GMTD Saharanpur ENTRY TAX ACT ENTRY TAX 2452455 0 2452455 2000-01 2001-02 TRADE TAX AUTHORITY
SAHARANPUR
GMTD Saharanpur FINANCE ACT SERVICE TAX 12463780 0 12463780 AUG 2002 TO JAN 2003 CESTAT
1994
TCD Bareilly ARBITRATION CIVIL WORKS 2252763 0 2252763 2005-06 CE(C) BSNL NEW DELHI
ACT
220
TCD Bareilly ARBITRATION CIVIL WORKS 185500 0 185500 2008 DISTRICT JUDGE RUDRAPUR
ACT
TCD Bareilly ARBITRATION CIVIL WORKS 3816753 0 3816753 2008 DISTRICT JUDGE MORADABAD
ACT
TCD Bareilly ARBITRATION CIVIL WORKS 510000 0 510000 2011 HIGH COURT ALLAHABAD
ACT
TDM Budaun EPF EPF AGAINST 4675876 0 4675876 2001-2012 Tribunal at New Delhi
DEPARTMENT CONTRACT
WORKS
TDM Budaun Trade Tax Sales Tax for 13228725 13228725 0 2003-2008 AssttComm/ High Court Allahabad
13 Cases
TDM Etah Income Tax Act, TDS DEMAND 1056132 0 1056132 2008-2009 Income Tax Office Aligarh
1961 RELATED TO
FRENCHISEE
COMM.
TDM Etah Income Tax Act, TDS DEMAND 141380 0 141380 2015-16
1961 RELATED TO
STAFF SALARY
TDS
TDM Etawah UP ACT 2007 ENTRY TAX 469760 0 469760 2000-01/2001-02/2002-03 ALLAHABAD HIGH COURT
TDM Etawah UP ACT 2007 ENTRY TAX 544468 0 544468 2007-2008 ASSTT. COMMISSIONER TRADE
TAX ETAWAH
TDM Etawah INCOME TAX TDS ON 2217207 0 2217207 A/Y 2008-2009 ITAT OF INCOME TAX AGRA
ACT 1961 RECHARGE
COUPONS
TDM Etawah INCOME TAX PENALTY ON 1695044 0 1695044 A/Y 2008-2009 ITAT OF INCOME TAX AGRA
ACT 1961 TDS
TDM Mainpuri Sales Tax Act Sales tax 60000 0 60000 A/y 2004-05 Member Tribunal Trade Agra
TDM Mainpuri Sales Tax Act Sales tax 30000 0 30000 A/y 2003-04 Member Tribunal Trade Agra
TDM Mainpuri Income Tax Act TDS 108258 0 108258 appeal u/s 221/1 of income tax ITO(TDS & Survey) Aligarh
1961 act 1961 dated 29.10.11 year
2006-07
TDM Mainpuri Income Tax Act TDS on 857857 0 857857 appeal no-76/2013 A/y 2009-10 ITAT,Agra
1961 discount
allowed on
cmts products
221
TDM RAMPUR SECTION 2(1) FA SERVICE TAX 552272 0 552272 2015-16 ASSIT COMM CENTRAL EXCISE,
1994 RAMPUR
TDM RAMPUR RIGHT TO USE SALES TAX 8297 0 8297 JAN 2003 TO NOV 2003 TRIBUNAL COURT TRADE TAX
10(b) MORADABAD
10(b) MORADABAD
10(b) MORADABAD

10(b) MORADABAD
10(b) MORADABAD
10(b) MORADABAD
10(b) MORADABAD
10(b) MORADABAD
10(b) MORADABAD
10(b) MORADABAD
10(b) MORADABAD
10(b) MORADABAD
10(b) MORADABAD
10(b) MORADABAD
10(b) MORADABAD
222
10(b) MORADABAD
TDM RAMPUR ENTRY TAX ACT SALES TAX 109184 0 109184 JAN 2003 TO NOV 2003 TRIBUNAL COURT TRADE TAX
MORADABAD
TDM RAMPUR ENTRY TAX ACT SALES TAX 661517 0 661517 JAN 2003 TO NOV 2003 COMMISSIONER OF EXCISE &
SERVICE TAX
TDM RAMPUR SERVICE TAX SERVICE TAX 37114 0 37114 2015-16 COMMISSIONER OF EXCISE &
SERVICE TAX MEERUT
TDM RAMPUR SERVICE TAX SERVICE TAX 480189 0 480189 2011-12 TO 2014-15 COMMISSIONER OF EXCISE &
SERVICE TAX MEERUT
857223343
Annexure II to the Independent Auditor’s Report of even date to the members of Bharat Sanchar
Nigam Limited on the Ind AS financial statements for the year ended 31 March 2018
DIRECTIONS UNDER SECTION 143(5) OF THE COMPANIES ACT, 2013 ISSUED BY THE
COMPTROLLER AND AUDITOR GENERAL OF INDIA TO THE STATUTORY/ CIRCLE AUDITORS
OF BHARAT SANCHAR NIGAM LIMITED FOR CONDUCTING AUDIT OF ACCOUNTS FOR THE
YEAR 2017-18
Sl. No. Questions Auditor’s Comment

(1) Whether the Company has clear As reported by the auditors of the following circles, the
title/lease deeds for freehold Company has clear title, lease deeds for freehold and
and leasehold respectively? leasehold respectively:
If not please state the area of
freehold and leasehold land for 1. Eastern Telecom Project (ETP)
which title/lease deeds are not 2. Southern Telecom Project (STP)
available. 3. Telecom Factory, Mumbai (TF-Mumbai)
4. NATFM
The following circle has reported that the Company does

not have clear title/lease deeds and they are unable to
comment on the area of freehold and leasehold land for
which the aforementioned deeds are not available:
1. BRBRAITT
2. Chhattisgarh
The following circles have annexed details of freehold and

leasehold land for which title/lease deeds are not available
or for which mutation is in process: (Refer Appendix-A)
1. Andhra Pradesh
2. Haryana
3. Himachal Pradesh
4. Karnataka
5. Kerala
6. Uttarakhand
7. Chennai Telephones
8. Northern Telecom Project (NTP)
9. Punjab
The auditors of the following circles have reported that
the Company does not have any leasehold/ freehold land
and hence the question is not applicable to the following
circles:
223
1. NFS
2. Broadband Network
3. North East Task Force
4. NCNGN
5. Information Technology Project Circle
6. Receipt & Payment and Budget Banking Finance Unit
(‘R&P and BBF unit’)
The auditor of Telecom Factory Mumbai circle has stated
that this direction is not applicable to the Company for
the current year as the Company has not been selected for
disinvestment.
The auditors of the following circles were unable to
comment on the title of freehold and leasehold land in the
absence of requisite documents:
1. Assam
2. Gujarat
3. Jharkhand
4. Eastern Telecom Region
5. Western Telecom Region
6. Northern Telecom Region
For the remaining circles, please find below circle wise
responses as provided by the respective circle auditors:
ANDAMAN & NICOBAR

The Title Deed of Freehold lands held by BSNL are being
processed for Mutation form DOT to BSNL. There is a
Mismatch between total area of land as per land register
and land documents and the same is not duly reconciled.
ALTTC
The Land on which the ALTTC building is situated along
with the building itself is not in the name of BSNL,
although the consideration for acquiring the land from
Department of Telecom was paid to them but the Title
was not transferred in the name of BSNL because the title
is still in the name of CPWD (which has sold the land to
Department of Telecom). Total Area of land which was
acquired from DOT was 81 acers as at 01.10.2000.
224
The said land was then in the name of CPWD (erstwhile

owner, who had transferred the land to DOT) and is still as
it is, in the records of Ghaziabad revenue records/Tehsil.
The entire area of land measuring 81 acres is still in the
name of CPWD in the records of Ghaziabad revenue
records/ Tehsil. For the purpose of Ind AS, this area of land
had been revalued at Rs. 536.92 crores in FY 2016-17.
BIHAR
The maximum parcels of land were transferred to BSNL by
DoT at time of incorporation which is under possession
of BSNL. The acquisition of title deeds of these lands is
under process. For Lands purchased and taken on lease
by BSNL the title deeds is available. Sale deeds of 21 land
parcels are available with units.
JAMMU & KASHMIR

Title deeds/ letters of allotment of various lands reflected
under Property, plant and equipment have not been
produced to us. We are unable to verify correctness of
classification between freehold and leasehold land in
absence of such records. As informed to us, title of some
of these lands is yet to be transferred in the name of the
Company. It has been reported to us that at Leh BA, all
documents pertaining to land have been lost in the flash
floods in 2010.
JAMMU & KASHMIR

i) Freehold Building has been constructed on the Lease
hold Land acquired from KOPT. Tax on the above is
paid to KOPT along with the Lease Rental since there
is no separate Mutation of the property in the name of
the Circle.
ii) Lease hold Land has been acquired from Kolkata
Port Trust (KOPT) on which Lease Rental is paid to
KOPT. The Lease was for 30 years ending in 1995 and
renewed subsequently by KOPT vide letter no. Lnd
4423/1/V/11/5109 dated zs” March, 2011. However,
Lease Deed of such property is not available for
verification.
225
MADHYA PRADESH
On the basis of our examination books and records and

according the information and explanation given to us,
the BSNL Madhya Pradesh is in the process of transferring
the title deeds in respect of Lands. Mutation for 391 no.
of lands have been carried out till date out of 566 lands in
the name of BSNL and the balance 175 nos. of lands are
balance to be mutated.
MAHARASHTRA
We have been informed that the circle has been showing

land under two categories i.e. under leasehold and freehold
and total approximate area is 54,96,406.59 sq. metres
comprising of 1729 plots. Out of such plots, mutation
in the name of BSNL is still pending for approximately
36,25,537.34 sq. metres (830 plots). Likewise, in the
case of freehold land from above 830 plots of total area
30,36,465.09 sq. mtrs (728 plots), the mutation in the
name of BSNL is pending for 360 plots. We have also
been informed that there are approximately 17 plots
having 63,836.51 sq. metres which are under dispute.
There are 251 vacant plots of approx. area 4,86,108.9 sq.
mtrs., for which mutation, has not been done in the name
of BSNL as reported to us, we have been informed that
there is no practice of physical verification of the fixed
assets, however, in the year 2013, a joint verification was
done with the DOT and on the basis, they have noted that
there is encroachment on 3812.95 sq. metres.
ODISHA
The Circle has clear title / lease deeds for 70 (seventy)

numbers of freehold land and 199 (one hundred ninety
nine) numbers of leasehold land. There is 1 (one) freehold
land at Sambalpur area measuring Ac. 01.27 and 19
(nineteen) numbers of leasehold land throughout the state
of Odisha measuring 77956.00 Sq. meters in respect of
which the title / lease deeds have expired/ not executed.
RAJASTHAN
Based on the review of asset register and according to

information and explanations given to us, the title deeds
of 73 lands are not held in the name of the Company. The
details of the same are given in ‘Appendix A’ of our Audit
report.
226
SOUTHERN TELECOM REGION
On the basis of our examination/ test check of books and

records and according to the information and explanation
given to us , the BSNL-STR are in the process of transferring
the tittle deeds in respect of 42 lands. The list of lands in
respect of which the mutation has not been completed is
given in ‘Appendix A’
TELECOM FACTORY JABALPUR
During the year under review it has been observed that

Telecom Factory Jabalpur having three units, one at Bhilai
another at Ricchai and Wright Town. Bhilai and Ricchai
land are taken on lease and Lease Deed of both the units
are proper. As far as Wright town is concern the land taken
over from DOT as on 1st October, 2000. Total area as per
the management informed was 73.73 acre transferred from
DOT out of which 48.85 acre of land has been transferred
to the name of BSNL and 24.88 acre of land remains with
DOT.
TELECOM FACTORY KOLKATA
(a) The title deeds of freehold land of at Alipur Telecom

Factory (780 kathas) and at Gopalpur Telecom factory
(17.5 acres) were not available for our verification. In
respect of Kharagpur Telecom Factory photocopy of
lease deed is available for an area of 14.189 acre(lease
expiring on 17.04.2079) and an area of 1.15 acre
(lease expired on 17.04.2005) only. The expired lease
deed has not been renewed by the telecom factory.
In respect of the balance factory area of 0.50 acre
and 1.52 acre no signed lease deed is available. The
management has not made any provision for any
contingency arising out of the renewal of lease and
effort should be made for renewal/regularisation of
leases of land held with or without lease.
In respect of an area of 1.97 acre and 0.1494 acre

comprising residential plots of Kharagpur Telecom
Factory Housing Complex, possession certificate and
allotment letter received from WBIIDC is available.
(b) We have been informed that no mutation of the above

lands has been done or at any of the telecom factories.
227
TAMIL NADU
i) The circle is holding 4048 square metre of Leasehold

property (Net Value of Rs. 1,698) at Salem for which
proper and valid Lease agreement is in existence.
ii) The title to various immovable properties (Freehold land)

taken over from Department of Telecommunication
(DoT) is yet to be registered in the name of BSNL. The
area of the Freehold land for which title deeds is not
available has been listed out in ‘Appendix A’ attached.
WESTERN TELECOM PROJECT
Title deed relating to land were not produced for

verification and in the absence of relevant documents,
the tenure of land as freehold/ leasehold could not
be verified by us. Except following WTP, Nagpur has
changed and handed over its’ office premises located at
2nd and 3rd floor, microwave building, CTO compound,
Nagpur to O/o Principal General manager, Telecom “0”
miles, Nagpur wide letter no. DGM/TP/EMA/NP/W-18/
ASSETS/93 dated 23/12/2011 in favour of Department of
Telecommunication but the same building still exist in
Balance Sheet of BSNL WTP.
KOLKATA TELEPHONES
In respect of title/ lease deeds of Immovable properties,

it is observed that all the immovable properties are in the
possession of the Company.
However in respect of certain immovable properties

acquired or taken over from Department of
Telecommunication (DOT), Government of India, transfer
of title deeds of the said properties in the name of the
Company are still pending as same are under legal process/
execution.
NE-II
As per the information provided to us, pending transfer

of the immovable property in the name of the Company,
documents in respect of some land & buildings acquired
during the period are under legal process/execution.
Further in respect of assets taken over from DoT, formalities
for vesting the assets in favour of the Company wherever
necessary / applicable are under process. Further some of
228
the assets acquired by the Company are yet to be registered

in the name of the Company. Lease hold lands bifurcated
and incorporated in the financial year 2008-09, received
by Nagaland SSA from DoT having aggregate value of
Rs. 79.14 lakhs (PY Rs. 79.14 lakhs) have not yet been
verified from original lease records. Details of lands are
QUALITY ASSURANCE
Lands and Buildings transferred by DOT to the company,

at the time of formation of BSNL, like staff quarters and
vacant Lease Land in respect of which the deed for transfer
from DOT to the BSNL is pending execution. Details are
provided in annexure attached.
UTTAR PRADESH (UP) EAST
The Circle UP (East) holds title deeds for a number of free

hold/ lease hold lands but since the title deeds for free
hold and lease hold land are not matched with financial
records hence we are unable to comment whether the
Company has clear title/ lease deeds for all free hold and
lease hold land respectively and if not for which assets
Circle do not hold clear title deeds.
UTTAR PRADESH (UP) WEST
As per the information made available to us, Title deeds/

lease agreement with respect to 36 parcels of leasehold
land & 194 parcels of freehold land were not shown/made
available to us for verification. Also for properties pending
transfer & those taken over from DOT, formalities for
vesting the assets in favor of BSNL were not made available
for ascertaining its completion. Further, in respect of
Mathura unit, on the basis of examination of documents,
it was found that one title deed of land situated at plot
No. 60 Transport nagar, Mathura registration date 31-07-
2002 of Rs. 3,74,800/-has not been capitalized in books
of accounts.
WEST BENGAL
The clear title/ lease deeds were not available for

verification. Attention is drawn to Para B (1&2) of Note
“2” to the standalone financial statements of the Circle,
which indicates that the conveyance deeds for transfer/
vesting title of Land, Buildings and Other Assets from DoT
229
to company has not yet been executed. Also attention is
drawn to Para 1(c) of Annexure-“A” to the Independent
Auditors’ Report, where it is stated that “Asset Master” in
the SAP ERP system does not have the separate record of
each land parcel. In case of Free Hold land there are 81
records in SAP against 169 land parcels and in case of
Lease Hold Land there are 3 records in SAP against 38
land parcels. However, the full particulars of such land
parcels including quantitative details and situation thereof
are available with the Circle. Business Area wise summary
of freehold land as provided by the Management has been
furnished in the enclosed ‘Appendix A’ of this report.
NORTH EAST-I
As informed to us, the Circle has no clear title deeds in the

name of the Company for freehold lands and leasehold
lands, except for one freehold land and few leasehold
lands. However, copies of original title/lease deeds of
above said freehold and few leasehold lands were not
made available to us for our verification; hence we are
unable to comment on clarity of even such title/lease deeds
of lands. List of freehold/leasehold lands provided by the
Circle is attached herewith as ‘Appendix A’. In absence of
full details, the same has not been verified by us.
(2) Whether there are any cases of As reported by the auditors of the following circles, there
waiver/ write off of debts/ loans/ were no cases of waiver/write off of debts/loans/interest
interest etc., if yes, the reasons etc.:
therefore and the amount
1. Jammu & Kashmir
involved.
2. Maharashtra
6. Southern Telecom Region
7. Eastern Telecom Project
8. Northern Telecom Project
9. NFS
10. Telecom Factory Mumbai
11. Andaman & Nicobar
12. Telecom Factory Jabalpur
13. BRBRAITT
15. NCES Telecom Circle/ NCNGN
230
16. Q&A and Inspection Circle

18. ALTTC
19. Southern Telecom Project
20. Western Telecom Project
21. Telecom Factory Kolkata
22. NATFM Training Institute
23. Telecom Stores Kolkata
24. Information Technology Project Centre
25. Receipt & Payment and Budget Banking Finance
Unit (‘R&P and BBF unit’)
26. Chhattisgarh
In the undermentioned circles, there have been certain

write offs of debts/loans/interest etc., details of which are
furnished below:
ANDHRA PRADESH
The Circle has written off Rs. 1,270.42 Lakhs (Previous

year - Rs. 2,227.25 Lakhs) as bad and doubtful debts during
the current financial year on account of non-recoverability
as per the findings of High Power Committees (HPC) and
Liquidation Board (LBM) constituted at Business Area
level by the Circle for this purpose. The entire amount was
already provided for and the amount equal to the amount
of write off is written back from such provision created in
earlier years.
ASSAM
Rs. 1,434.80 Lakhs has been written off from debtors

being untraceable and hence unrecoverable.
BIHAR
For the financial year 2017-18, total amount of written off

bad debt for service provided is Rs. 3,910.78 Lakhs
CHENNAI TELEPHONES
There are cases amounting to Rs. 527.09 Lakhs towards

Write off of Debt with Competent Authorities approval
during the year 2017-18 Business Area wise (CDR, GSM,
WLL, BB etc.) details with regards to write off of Debtors,
Late fees, Service Tax etc.
231
GUJARAT
As per record and information provided to us debtors

amounting to Rs. 760.13 Lakhs were written off during
the year, as management is of the view that the amount is
no longer realizable.
HARYANA
As informed by the management and based on the records

examined, we have not observed any case of waiver/ write
off of debts/ loans/ interest etc. from banks or financial
institution during the year under audit.
However, a sum of Rs. 1,031.92 Lakhs has been written

off on account of bad debts by the Circle during the year
under audit.
HIMACHAL PRADESH
As informed to us, the Circle has written off debtors of Rs.

357.54 Lacs.
JHARKHAND
Debts of Rs. 1,019.58 Lakhs are written off during the

year. As informed write off of subscriber debt is done
through either Lok Adalat, Liquidation Board Meeting or
High Power committee or through technical write off.
KARNATAKA
During the financial year 2017-18 a sum of Rs.703.75

Lakhs has been written off as bad debts. The management
of the KTK Circle is of the view that the possibility of
recovery of these amounts was considered remote.
KERALA
During the year the Circle has written off Sundry Debtors
(GL Code 5022009) for an amount of Rs. 484.74 Lakhs
based on the decisions taken by the Committees constituted
for the same at different dates during the year. In addition,
the Telephone Revenue Accounting (TRA) Department
has cancelled individual telephone bills during the year,
which as explained to us, were on account of mistake in
billing.
232
As per the information and explanation given to us,

the decisions were taken after exhausting all chance of
recovery from the customers.
Based on the information and explanation given to us

and based on the Audit procedures performed by us, we
have not come across any instances of waiver of loans or
interest.
MADHYA PRADESH
The Circle has written off Rs. 962.54 Lakhs during the FY
2017-18 based on procedures / guidelines defined by BSNL
HQ.(Above amt is total of GLs , 5022009 (Bad debt (debts
for service provided) written off) and Rs 9,05,28,545.04
and GL- 5022010 Service Tax paid for post paid service
but not collected Rs. 57,25,580.99)
NORTH EAST I
As informed to us, and as disclosed in Notes to Accounts,

the Circle has written off debts, considered no longer
recoverable, amounting to Rs. 244.02 Lakhs in the
Statement of Profit and Loss as these amounts are long
pending and disputed by the parties as not payable.
NORTH EAST II
As per the information provided by the Circle and as

per our examination, write off of debts amounting to Rs.
6,419.03 Lakhs and Decommissioned Assets and Others
amounting to Rs. 133.40 Lakhs have been made on
account of Normal Write Off and Technical Write Off as
per the instructions of the Corporate Office.
ODISHA
There are multiple cases of write off of debtors amounting

to Rs. 430.26 Lakhs and there are no case of write off of
loans and interest during the year. The reason for such
write off, as explained to us, is that these are old balances
lying unadjusted / unrealized for a long time and chances
of recovery /adjustment are remote.
PUNJAB
As per information given to us, the circle has written off

debtors Rs. 532 Lakhs due to non recoverability.
233
RAJASTHAN
As per information and explanations given to us, during

the year under consideration the circle has written off
the debts of Rs. 531.35 Lakhs. These debts are written off
as per the delegation of authority and procedures set by
BSNL Corporate office.
TAMIL NADU
The write off is in line with the policy of the company and
Rs. 707.87 Lakhs has been written off as bad debts and Rs.
61.09 Lakhs has been written off as unrecovered service
tax during the year.
UP (WEST)
Following cases of old outstanding entries were written off

as was considered not recoverable:
1) W/off loses other than bad debts: Rs. 24.34 Lakhs

2) Bad debts w/off: Rs. 882.46 Lakhs
UP (EAST)
We have not been informed of any such case. However,

in case of Debtors the circle has accounted for total Bad
Debts of Rs. 2,651 Lakhs.
UTTARAKHAND
The Circle has written off Rs. 123.14 Lakhs during the
FY 2017-18 based on procedures defined by BSNL HQ.
During the year company has also technically write off
debtors due for more than 10 years.
WEST BENGAL
On examination of the related records and as per the

information and explanation provided to us the Circle
has written off Rs. 1,121.27 Lakhs being trade receivables
remaining unrecovered for a period of over 5 Years in
accordance with the Order of Corporate Office ref. the
ADG(TR) BSNL Corp office no. 2-32/2002-BSNL/TR dated
19.09.2006.
KOLKATA TELEPHONES
Calcutta Telephone District has written off bad debts

throughout the financial year as follows:
234
a. Write-off in Land Line Service 1,614.43 Lakhs

b. Write -off in Broad band Services 152.49 Lakhs
c. Write -off in unpaid Surcharge 40.76 Lakhs
d. Write -off in Cellular Mobile Tele Services 134.72 Lakhs
e. Write -off in Lease Circuit 0.63 Lakhs
TOTAL – Rs. 1,943.03 Lakhs
The Circle has also written-off an amount of Rs. 260.76

Lakhs for not being able to collect Service Taxes paid by it
in respect of the above.
Beside the above, the Circle has also Written Back Liability
on account of Security Deposit, Earnest Money and Other
Liabilities amounting to Rs. 3,094.83 Lakhs
(3) Whether the proper records As reported by circle auditors, the circles have not received
are maintained for inventories any assets as gift/grant(s) from the Government or other
lying with third parties & assets authorities except as stated for the circles below:
received as gift/grant(s) from
1. ANDHRA PRADESH
Govt. or other authorities
In respect of lands received as gift or donation, proper
records are not being maintained and the number, value,
ownership thereof are subject to reconciliation.
The Circle has been maintaining proper records in respect

of assets created (under Left Wing Extremists project) out
of grants received from Government.
2. CHHATTISGARH
In absence of records and documents at the Circle we are

not in a position to comment on assets received as gift
from Govt. or other authorities are properly maintained
or not.
3. KARNATAKA
The KTK Circle has received 33 land parcels as a gift

from various village panchayats situated in the State of
Karnataka. These land parcels covers a aggregate area of
28,001 Sqmts. Out of the 33 Land parcels the title deeds
are not available in respect of 3 land parcels measuring a
total area of 2,184 Sqmts.
4. ODISHA
The Circle has received government grants amounting to

Rs.43,40,80,939/- towards LWE Capital Grant during the
Financial Year 2017-18.
235
5. UP (WEST)
Proper records are maintained with respect to Grant

received from USOF of Rs. 20,92,709/-
6. WEST BENGAL
a) As per the information and explanation provided to

us by the management, the Circle has not received
any assets as gifts/ grants from Government or other
authorities during the year. Out of grant received by
the Circle in earlier years Rs. 934.94 Lakhs has been
recognized as income for the current year and the
balance Rs. 3797.71 Lakhs is carried over to the next
year as Deferred Income in respect of the Grant in Aid
for LWE Project.
b) As informed by the Management, the Circle is the

custodian of the inventories in respect of the National
Optic Fiber Network (NOFN) Project. The details
of such inventory are maintained by the NOFN
Department within the Circle but no record of such
inventories is maintained in the SAP ERP system as
these inventories do not belong to the Company.
As reported by the auditors of following circles, proper

records are maintained for inventory lying with the third
parties.
1. Jammu and Kashmir

2. Punjab

records are not maintained for inventory lying with the
third parties.
As reported by the circle auditors of the undermentioned

circles, no inventory is lying with the third parties:
1. Assam
2. Bihar
3. Haryana Telecom
4. Himachal Pradesh
5. Jharkhand Telecom
6. Kerala Telecom
236
7. Madhya Pradesh Telecom

8. Maharashtra Telecom
9. Rajasthan Telecom
11. Tamil Nadu Telecom Circle
12. Uttarakhand Telecom
13. Western Telecom Projects
14. Kolkata Telephones
19. NFS
20. NATFM
22. NCNGN Telecom Circle
23. Telecom Store
24. Information Technology Project Circle (ITPC)
25. North East- 1 Telecom
26. ALTTC
27. BRBRAITT
28. NE-II
30. Receipt & Payment and Budget Banking Finance
31. Chennai Telephone
32. Karnataka Circle
33. NETF
34. Odisha
35. UP (West)
36. West Bengal
Following circles’ auditors have reported that the

respective circles do not have any inventory and hence
the question is not applicable to them:

237
For the remaining circles, please find belowcircle wise
1. NTR
As informed by the management, no inventory is lying

with third parties belonging to circle. The inventory issued
to the contractors is accounted under the head “Work in
Progress”.
2. ANDHRA PRADESH
i. As per the information and explanations given by the

management and as stated vide Note No. 40.2 of the
Ind AS financial statements the inventories aggregating
to Rs. 4,703 lakhs pertaining to Phase VIII.4 project
of CMTS are lying with the third parties. The Circle
has been maintaining proper records in respect of
inventories lying with the third parties.
ii. ii. In respect of lands received as gift or donation,

proper records are not being maintained and the
number, value, ownership thereof are subject to
reconciliation as stated in paragraphs 16 & 17 above.
iii. The Circle has been maintaining proper records in

respect of assets created (under Left Wing Extremists
project) out of grants received from Government.
3. GUJARAT
Proper records are maintained for inventories lying

with third parties. However, in case of material issued
to contractors against execution of projects is directly
charged to CWIP a/c. and no entry recorded in the a/c
code “Material/Equipment with contractor”. The same
remain in CWIP a/c code and no physical verification
reports are made available to us. It is explained to us that
in such cases appropriate bank guarantee is obtained as
per the terms of the contract. As per the information and
explanations given to us, no items are received as gifts
from Government and other authorities during the year.
4. UP (EAST)
System of accounting and management of inventories in

most of the Bas/ SSAs is not in commensurate with the
size and nature of the inventory due to non-maintenance
of Bin cards, non-maintenance of Price Store Ledger on
238
perpetual basis which are generally compiled at the quarter

or year end, non adherence with procedure for return of
stores issued to the contractors/ suppliers and lying at
sites, lack of proper system for identification of Obsolete/
discarded/ non-moving/ unserviceable inventory, lack of
periodical reconciliation of inventory in price store ledgers
with financial records etc.
However, entire amount of inventory has been classified,

as it is, as Capital Work in Progress in Stores.
5. CHHATTISGARH
It is observed in the Circle that Inventory/ Capital Goods

are issued to the Contractors for maintenance/ assets for
installation purpose at various project sites. No site wise
list has been provided to us for our verification. So we are
unable to comment whether records are maintained for
inventories lying with third parties.
In absence of records and documents at the Circle we are

not in a position to comment on assets received as gift
from Govt. or other authorities are properly maintained
or not.
6. STP
It has been observed that the management is maintaining

records of inventory with the third party only in physical
format, however no records of stock as on particular day
is available in SAP.
(4) Amount of revenue share As reported by the auditor of following circles provisions
(license fees and spectrum for license fee are not applicable to the respective circles:
usage charges) appearing in the
financial statements should be 1. Kolkata Telecom Stores
thoroughly checked.
Following circles have not reported in respect of the
matter:
1. Bihar
2. Uttar Pradesh (UP) West
3. NFS
239
Following circles have reported that the revenue share is
correctly calculated as per the norms and guidelines in
license agreement and are appropriately appearing in the
Ind AS financial statements:
1. Andaman and Nicobar

2. Andhra Pradesh
3. Assam
4. Chhattisgarh
5. Easter Telecom Project
7. Gujarat
8. Himachal Pradesh
10. Jammu & Kashmir
11. Karnataka
12. Maharashtra
13. NATFM
15. Punjab
16. Uttarakhand
17. Telephone Factory Jabalpur
19. Tamil Nadu
20. UP (East)
21. West Bengal
24. Receipts & Payments and Budget Banking Finance
Separate details as per Appendix-B is attached in respect
of the following circles:
2. Madhya Pradesh
3. NCNGN
4. North East-II
5. Odisha
6. Rajasthan
240
1. BRBRAIT
Circle has wrongly paid License fee of Rs. 49.10 Lakhs in
2nd Quarter of F.Y. 2017-2018 instead of actual liability
for such quarter of Rs. 11.15 Lakhs. Such excess amount of
Rs. 23.86 Lakhs, after adjusting 3rd and 4th quarter liability
towards license fee has been debited in GL 2610699
“PREPAID EXPENSES-OTHERS”.
2. ALTTC
The Figures for License fee and spectrum usage charges
as appearing in the financial statements the ALTTC circle
of BSNL, have been checked and one discrepancy was
noticed. As per the management, some rectification entries
were missed out during the year. At the time of preparation
of provisional figures (for AGCR) for 4th quarter, there was
a calculation mistake which was as follows:
In Basic LF/USO levy: Rs. 2166.80
In NLD/ILD services: Rs. 896.00
There were manually rectified at the time of submission of
final AGCR but the rectification entries pertaining to these
were not passed in the books of accounts.
3. HARYANA
Revenue share (License fee and Spectrum Usage Charges)
appearing in the financial statements have been correctly
stated except for
a) The Circle segregates revenue from NLD (National
long distance)/ ILD (International long distance) on
an estimated basis instead of actual usage of pulse
which consequently results in recognition of the
Spectrum Charges on an estimated basis. The impact
of adjustment, if any, on the Spectrum Charges is
presently not ascertainable for the year.
b) Liquidated Damages recovered from the contractors/
suppliers, which have been reduced from the relevant
asset cost and relevant revenue expenditure. In our
opinion, the same should be booked as revenue
income.
c) As per the information and explanation given to us, the
Circle has not booked USO Fund subsidy amounting to
Rs. 131.30 Lakhs. Due to this there is under-estimation
of license fee, as the same has not been considered as
revenue for calculation of ‘Adjusted Gross Revenue’.
241
4. KERALA
As per the accounting policy of the Company, Income

from recharge coupon of mobile and prepaid calling
cards is treated as income of the year in which payment
is received. In our opinion, value of cards sold but not
activated and unused talk time in activated cards should
not be treated as income but should be shown under
“Income received in advance”. This has resulted in
overstatement of net profit and understatement of other
current liabilities by Rs. 38.07 Lakhs.
This has also resulted in the advance payment of License

Fee, USOF Levy, Spectrum charges and Microwave access
charges to the extent of unexpired portion of these cards.
As per details furnished by Circle, it is estimated that Rs.
99.91 Lakhs is the excess license fee paid, Rs. 166.52 Lakhs
is the excess USO levy paid and Rs. 185.17 Lakhs is the
excess Spectrum charges paid on account of this for this
year. Hence, net profit is understated by Rs. 451.61 Lakhs.
For the purpose of calculating License Fee, USOF Levy

and Spectrum Charges payable to DoT, since copy of the
license agreement with DoT has not been made available
to us for verification, we have relied on Corporate Office
instructions dated 11/04/2011 and 03/03/2016 followed
by the Circle.
Circle has wrongly paid License fee of Rs. 49.10 Lakhs in

2nd Quarter of F.Y. 2017-2018 instead of actual liability
for such quarter of Rs. 11.15 Lakhs. Such excess amount
of Rs. 23.86 Lakhs, after adjusting 3rd and 4th quarter
liability towards license fee has been debited in GL
2610699 “PREPAID EXPENSES-OTHERS”.
5. NORTH EAST I
As detailed in Notes to the financial statements, the Circle

does not have a system of identifying NLD/ ILD revenue
separately based on the actual usage of pulse. In the absence
of such a system, the circle is recognizing the license fee as per
program provided by corporate office and the consequential
impact of adjustment, if any, upon computing the license fee
on actual basis is currently not ascertainable.
6. NTP
In respect of license fee payable for the current financial

year, NTP Circle has provided for the following amounts
242
on the basis of computation carried out by software

provided by the Corporate Office, BSNL. The calculations
in respect thereof cannot be verified at the NTP Circle
Office level.
a) License Fee on Basic, NLD, ILD & Internet services Re.

1.09 Lakhs
b) USOF Levy on Basic, NLD,ILD & Internet services

1.83 Lakhs
7. STR
1) We have verified the statement of revenue and loss

for four quarters and the cumulative total for the year
2017-18 of M/s BSNL, STR Chennai with relevant
figure from the trial balance as on 31st march 2018
and the reconciliation statement for the financial year
2017-18 generated from software. We have been
further informed that adjusted gross revenue reflecting
in the statement of revenue and license fee is system
generated.
2) In our view the company has an adequate internal

control system in relation to revenues which
commensurate with its size an business. The system in
our opinion provides reasonable assurance that there is
no unrecorded revenue.
3) No amt. payable in respect of sales tax, service tax,

goods and service tax or PSTN/ toll/ roaming charges
were outstanding at the last date of year ending
31.03.2018 for a period of more than two months from
the date they become payable as per the certificate
received from M/s BSNL,STR Chennai.
4) In our opinion and to best of our knowledge and

belief and according to the explanation given to us,
the statement has been prepared in accordance with
norms/ guidelines contained in said license/ permission
in this behalf and gives a fair and true view of revenue
and license fees payable for the period computed on
the basis of aforesaid guidelines.
8. TELEPHONE FACTORY MUMBAI
We have obtained all the information and explanations

which to the best of our knowledge and belief were
necessary for the purposes of our audit.
243
In our view, the circle has an adequate internal control
system in relation to revenues which is commensurate
with it size and nature of its business. The system, in our
opinion provides reasonable assurance that there is no
unrecorded revenue and that all revenue is recorded in
the proper account and in the proper period
We have informed that no undisputed amounts payable

in respect of Sales Tax or PSTN/Roaming charges were
outstanding at the last day of the year for a period of more
than two months from the date they become payable.
As per the information and explanation given to us, the

statement has been prepared in accordance with the
circulars and internal communication for the License
Agreement in this behalf and gives a true and fair view
of the revenue and license fee payable for the period
computed on the basis of aforesaid guidelines, subject
to non provision of interest income on advances to
employees and rebate receivable for speed post services
from the Indian Post and Telegraph Department which are
accounted on ‘Cash Basis’.
9. JHARKHAND
The AGR is calculated by separate software provided by

HO. In which the data is captured from SAP. The data
captured has been checked by us but the calculation of
AGR has been done by the software.
10. NTR
The Statement of Revenue and License Fee has been

prepared based on the computation carried out by Excel
Software Programme given by Corporate Office, BSNL. As
explained to us, they said software is prepared in accordance
with the license agreement entered in this behalf.
For ANDROS & Co.
Sd/-
(Puneet Gupta)
Partner
Place : New Delhi
Dated : 4th October, 2018
244
“Annexure II to the Independent Auditor’s Report of even date to the members of Bharat Sanchar Nigam
Limited on the Standalone Ind AS financial Statements for the year ended 31 March 2018”
APPENDIX A
1012 Andhra Pradesh
a. As per the information and explanations provided to us by the management and as stated vide Note No.
38.6 of the Ind AS financial statements, the Circle has lands admeasuring 32,36,563 sqm (for 1668 lands)
(Previous year – 32,34,674 sqm – 1667 lands) of which lands admeasuring 31,71,635 sqm (for 1649 lands)
(Previous year – 31,69,747 sqm – 1648 lands) are freehold lands and lands admeasuring 64,927 sqm (for
19 lands) (Previous year – 64,927 sqm – 19 lands)are leasehold lands.
Regarding Freehold Lands admeasuring to 31,71,635 sqm (for 1649 lands), lands inherited from DOT are
admeasuring to 28,37,377 sqm (for 1135 lands) (Previous year – 28,35,489 sqm, 1134 lands) and lands
acquired are admeasuring to 3,34,258 sqm (for 514 lands) (Previous year – 3,34,258 sqm, 514 lands).
Out of the total DOT lands admeasuring 28,37,377 sqm (for 1135 lands) (Previous year - 28,35,489 sqm,
1134 lands), DOT has given approval for mutation of lands admeasuring 19,39,166 sqm (for 682 lands)
(Previous year -19,38,795 sqm, 682 lands) and the Circle has got the mutation process completed to the
extent of 12,55,158 sqm of land area (for 521 lands) (Previous year - 12,36,456 sqm, 511 lands) and title
deeds are available for these 521 lands (Previous year – 511 lands). Mutation process is not completed for
the remaining area of 6,84,008 sqm (for 161 lands) (Previous year - 7,02,339 sqm, 171 lands).
Out of 682 lands permitted for mutation, 11 lands (previous year – 11 lands) are under joint occupation
with the Department of Posts. In respect of these 11 lands, 4 lands (previous year – 4 lands) are bifurcated
and mutated in the name of BSNL and 7 lands (previous year – 7 lands) are not yet bifurcated. Pending
the identification process by Joint survey to confirm the larger area of occupancy between Department of
Telecommunications and Department of Post and consequent acquiring of immovable property and its title
deeds by one of the parties holding larger occupancy, no title deeds are held by the circle in respect of
these 7 lands under joint occupancy.
Out of the total lands admeasuring 3,34,258 sqm (for 514 lands) acquired by the Circle, title deeds are
available for lands admeasuring 2,37,470 sqm of lands (for 333 lands) (previous year - 2,37,470 sqm, 333
lands) and title deeds are not available for lands admeasuring 96,788 sqm (for 181 lands) (previous year -
96,788 sqm, 181 lands).
Regarding Leasehold lands, the Circle has taken lands admeasuring 64,927 sqm (for 19 lands) on lease of
which lands admeasuring 58,251 sqm (for 15 lands) (previous year - 58,251 sqm, 15 lands) are under the
lease hold rights of DOT and lands admeasuring 6,676 sqm (for 4 lands) (previous year - 6,676 sqm, 4
lands) are under the lease hold rights of the Circle.
For lands under the lease hold rights of DOT, lease deeds in the name of DOT are available for lands
admeasuring 41,978 sqm (for 9 lands) (previous year - 41,978 sqm 9 lands) and not available for lands
admeasuring 16,273.5 sqm (for 6 lands) (16,273.5 sqm, 6 lands).
For lands under the lease hold rights of the Circle, lease deeds are available for all the 4 lands (previous
year - 4 lands) admeasuring 6676 sqm.
245
1017-Haryana
Details of freehold land and leasehold land not in the name of the Circle/ the Company:
Freehold Land
Sr. No. Buasiness Area Location Area (in Sq. metre) Rs. (in lakhs)
1 Ambala Arya Chowk, Part-I, Ambala City 7300 2,566.65
2 Ambala Arya Chowk, Part-II, Ambala City 1533 1,100.07
3 Ambala T.E. Compound, Yamuna Nagar 543.33 137.08
4 Ambala Staff Quarter Compound, Kalka 3344.87 568.63
5 Ambala Staff Quarter Compound, Yamuna Nagar 2010.52 108.6
6 Ambala M/W Compound, Anaj Madi, Kalka 3486 87
7 Ambala Gulab Nagar, Yamuna nagar 1594.29 223.19
8 Faridabad TE Compound Sector 23 12138 4,624.81
9 Faridabad P & T Colony - NH 2 4825 2,626.31
10 Faridabad Te1ecome/ BSNL Plot F•49 & 49A 441.9 312.69
11 Faridabad BSNL Plot F-21A & 22A 478.79 338.79
12 Faridabad Telecome/ BSNL Plot F-27 187.2 132.46
13 Faridabad TE Compound Nehru Ground 1883 1,844.84
14 Faridabad TE compound - Palwal 2541 821.11
15 Faridabad Telecom/ BSNL Plot L-39A 187.2 132.46
16 Faridabad E-10 B Compound Ser-15 A 6069 4,624.81
17 Faridabad Sector 36 9504 10,346.19
18 Faridabad TE Compound, Ballabhgarh 4236 1,383.42
19 Gurgaon DLF, Phaae - II 3586 4,684.73
20 Gurgaon Sector l8 11975.6 9125.86
21 Gurgaon DTO, BLDG Compound - Gurgaon 442 2,889.05
22 Gurgaon E 10B, Gurgaon 3470.59 4722.85
23 Gurgaon Sec-7, Gurgaon 561 366.43
24 Gurgaon South City Gurgaon 1380 1,201.84
25 Hisar T.E. Compound, Ratia 3035 971.2
26 Hisar T.E. Compound, Abubsahar 758 2.1
27 Hisar T.E. Compound, Hindanwala 2782 1.38
28 Hisar T.E. Compound, Siswal 2159 43.18
29 Hisar T.E. Compound, Uklana 4749 379.92
30 Hisar Adin. Compound, Urban Estate, Hisar 2249 2017.5
31 Hisar Coaxial Staff Quarter, Dabwali 4145.6 580.38
246
32 Hisar T.E. Compound, Sikanderpur 2023 0.77
33 Hisar T.E. Compound, Sirsa road, Dabwali 4057 566.44
34 Jind TE compound - Julana 4552.56 6.03
35 Jind HUDA Complex Jind 2520 831.6
36 Jind Main Exchange Building Jind 2789.23 4
37 Jind Tele Bhawan Coaxial Building, Jind 3344.4 133.76
38 Jind TE Compound, Eharakramji 67 0
39 Jind TE Compound, Kinana 2431 534.82
40 Jind M/W Compound, Narwana 2431 534.82
41 Jind TE Compound, Narwana 4174.65 667.94
42 Jind Old TE Compound, Safidon 152 1.52
43 Karnal DTO, BLDG compound - Panipat 1200 0
44 Karnal Sanchar Kunj Model Town - Panipat 10455 2,509.20
45 Karnal Sukhdev Nagar, Panipat 3921 2823.12
46 Karnal Compound, lsmailabad 4047 262.99
47 Karnal Telecom Store, Karnal 3802 9.94
48 Karnal TE Compound, Nilokheri 1925 596.75
49 Rewari M/w, Naichana 2076.96 13.66
50 Rewari Jhajjar Chownk, Rewari 10000 264.27
51 Rewari Sec- 4, Rewari 6000 3,276.80
52 Rohtak TE Compound - Charkhidadri 4046 1,063.69
53 Rohtak Sanchar Kunj - Bhiwani 1900 294.5
54 Rohtak TE Compound - Tosham 2508 100.32
55 Rohtak TE Compound, Bhawanikheri 3692 147,68
56 Rohtak TE Compound, Bhadra 4046 242.76
57 Rohtak TE Compound, Bhiwani 5226 2,811.05
58 Rohtak TE Compound, Bond 4237 211.85
59 Rohtak Old TE Compound, Charkidadri 280 501.2
60 Rohtak TE Compound, Tigrana 4046.00 9.68
61 Rohtak Main TE Compound, Bhadurgarh 9027.00 4062.15
62 Rohtak DTO Compound, Rohtak 1383.00 1,901.47
63 Rohtak Main TE Compound, Rohtak 4340.00 4,669.84
64 Rohtak Sainipur 1781.00 425.86
65 Rohtak Sec 2,3,4 Rohtak 2000.00 358.67
66 Rohtak Store Compound 2,3,4 Rohtak 11661.50 1,673.04
247
67 Sonepat Sec-23, Sonepat 1900.00 228
68 Sonepat TE Compound, Ahulana 2800.00 1.77
69 Sonepat TE Compound Akbarpur, Barota 2023.00 182.07
70 Sonepat TE compound, Bhainswal 3390.00 1.37
71 Sonepat TE Copmound, Datauli 2023.00 0.83
72 Sonepat TE Compound, Farmana 2023.00 1
73 Sonepat TE t2ompound, Jantikalan 2023.00 161.84
74 Sonepat TE Compound d Joshi, Chauhan 3306.00 235.2
75 Sonepat TE Compound, Moi 1517.00 0.45
76 Sonepat Exchange Compound, Nahra 4319.00 0.91
77 Sonepat Exchange Compound, Palri 2023.00 0.43
78 Sonepat TE Compound, S.P Majra 1340.00 0.53
79 Sonepat TE Compound, aanwali 2023.00 0.8
Total 266420.19 90292.89
LeaseHold Land
Sr.
Business area Location Area (in S. Metre) `
No.
1 Ambala CGM office compound 10731. 70 1
2 Ambala GPO complex 1000.00 1
3 Ambala P & T Colony 4880.25 1
4 Ambala CTO Compound Ambala Cantt 6671.00 1
5 Ambala GMTS Office Compound 10220.00 1
6 Ambala Napier Road Compound 6489.00 1
39991.95 6
Table B: Mutation of land of DoT in favour of BSNL
Sr. No Particulars No. of Lands

1 Number of Lands permitted for mutation 605
2 Number of Lands mutated as at 31st March 2018 281
1062-NTP
Sr. No. Address Amount Nature of land

1 Jodhpur 1,11,000/- Freehold
2 Jodhpur 27,770/- Freehold
248
Sr. No. Address Amount Nature of land

4 Allahabad 1/- Freehold
5 Gajraula, Agra 2,59,422/- Leasehold
1028-Punjab
FOR FREEHOLD LANDS
Total No of Land
S.No. Business Area Code Business Area Area(Sq.Meters)
Parcels
1 2802 Amritsar 34 73086
2 2803 Bathinda 13 54157
3 2804 Chandigarh 10 37035
4 2805 Ferozepur 47 160649
5 2806 Hoshiarpur 13 54916
6 2807 Jalandhar 14 40166
7 2808 Ludhiana 37 158284
8 2809 Pathankot 19 62054
9 2810 Patiala 27 85275
10 2811 Ropar 3 13587
11 2812 Sangrur 12 32475
FOR LEASEHOLD LANDS
Total No of Land
S.No. Business Area Code Business Area Area(Sq.Meters)
Parcels
1 2801 Circle Office/CMTS 1 11533
2 2804 Chandigarh 13 105344
3 2806 Hoshiarpur 1 929
4 2808 Ludhiana 2 12680
5 2809 Pathankot 1 4182
1029- Rajasthan
Based on the review of asset register and according to the information and explanations given to us, the title deeds
of 73 Pcs. of Lands are not held in the name of the company (Refer Note. 2(b) of Schedule 35). The details are as
under
Gross Block as on “Net Block as on

S. No. No. of Cases Particulars
31-03-2018 31-03-2018”
1 38 Free Hold 51,419.90 51,419.90
2 35 Lease Hold 448.28 300.92
Total 73 51,868.18 51,720.82
249
1030-Tamil Nadu
Total No. of Area (in Sq.

Business Area
Land parcels Meters)
Circle Office 1 21282
Coimbatore 12 17866.02
Cuddalore 5 20744.56
Dharmapuri 14 74475.86
Erode 6 15781
Karaikudi 7 25682.79
Kumbakonam 8 18080.75
Madurai 10 23669.22
Nilgiris 10 16872.87
Pondichery 6 2667.13
Salem 8 23448.21
Thanjore 16 22802
Tirunelveli 5 6556.36
Trichy 12 22136.71
Tuticorin 1 1000
Vellore 6 66755.83
Virudhunagar 3 7690.36
Total 130 387511.67
1034-West Bengal
Summary of Free Hold Property
Free Hold Land Parcels

No. Area (sq. mtr.) Cost (Rs. Lakhs)
Kolkata 37 511726.62 68046.46
Circle Office Exhibit 0 0 0
Kharagpur 15 59704 2493.54
Asansole 34 107496.33 10209.79
EZBC 0 0 0
Gangtok 14 37160.26 3078.91
Siliguri 64 211505.19 22863.21
Bankura 5 9257 313.87
Total 169 936849.4 107005.78
250
HIMACHAL PRADESH
Cost of
S. Name of Plot to be Mutated Freehold/ Cost of Cost of Cost of Dep. For
Name of BA Building Remarks (if any)
No Annexure-1 Leasehold Land(Gross) Land(Net) Building(Net) F.Y 2017-18
(Gross)
1 Dharamsala T.E., TEL.XGE CHAMBA Leasehold 30000.00 30000.00 2193111.00 965435.51 49068.79
2 Dharamsala ADMN. COMPLEX, DTO/CSC Feehold 26027.00 26027.00 15895476.00 6425920.19 360349.62
DHARAMSHALA
3 Dharamsala BSNL COMPLEX, TE (RSU) Feehold 142007.00 142007.00 3579609.00 1621155.84 82510.18
DHARAMSHALA
PALAMPUR
5 Dharamsala T.E., TEL.XGE, DALHOUSIE Feehold 386513.00 386513.00 16584798.00 10841323.31 553937.17
6 Dharamsala BSNL COMPLEX, TEL.XGE Leasehold 784040.00 784040.00 13095172.00 5040626.14 359043.16
NAGROTA
7 Dharamsala TE, MW STATION DEOGA Feehold 1.00 1.00 0.00 0.00 0.00 Building exists but not in
asset register. The same will
be updated in assets register
251
during 2018-19.
8 Dharamsala MW, MW STATION KANGRA Feehold 1.00 1.00 0.00 0.00 0.00 Building exists but not in
asset register. The same will
be updated in assets register
during 2018-19.
9 Hamirpur BSNL Complex Ghumarwin Freehold 1.00 1.00 10183813.00 4330009.00 244293.81
10 Hamirpur TE BLDG Hamirpur Freehold 10725000.00 10725000.00 10152758.00 4138140.07 299787.65
11 Hamirpur BSNL Complex UNA Freehold 4800000.00 4800000.00 10042633.00 4167232.45 304564.38

12 MANDI BSNL COMPLEX-Udaipur Freehold 31850 31850 9686975 4622078 237237 Forest Land
13 MANDI TE COMPLEX-Seri Bazar Mandi Freehold 1 1 3824711 1852759 97092 P&T

14 MANDI TE COMPLEX-The Mall Manali Freehold 1 1 8802877 3881139 213945 Municiple Committee
15 Shimla NICHAR T.E. BLDG. Free Hold 1.00 1.00 534000.00 207102.64 -14641.59
COMPLEX KHASRA
NO.1007/1
16 Shimla CHOPAL T.E. BLDG. Free Hold 1.00 1.00 6217587.00 2553996.63 -129226.12
COMPLEX KHASRA
NO.1499/1485
17 Shimla DOWNDALE BSNL COMPLEX Free Hold 1.00 1.00 1792914.00 691009.30 -56151.64
KHASRA NO.667 TO 675
Cost of
S. Name of Plot to be Mutated Freehold/ Cost of Cost of Cost of Dep. For
Name of BA Building Remarks (if any)
No Annexure-1 Leasehold Land(Gross) Land(Net) Building(Net) F.Y 2017-18
(Gross)
18 Shimla JATOG CANT SURVEY Free Hold 1.00 1.00 0.00 0.00 0.00 Building not constructed
NO.68&68-A
19 Shimla KHARA PATHAR T.E. Free Hold 1.00 1.00 0.00 0.00 0.00 Building not constructed
BLDG. COMPLEX KHASRA
NO.565/532
20 Shimla MAHASUPEAK M/W Free Hold 1.00 1.00 505625.00 280072.67 -14279.93
COMPLEX KHASRA NO.1/1
21 Shimla MASHOBRA T.E. BLDG. Free Hold 1.00 1.00 0.00 0.00 0.00 Building not constructed
COMPLEX KHASRA
NO.419/266
22 Solan Kasauli freehold 0 0 466,368.00 260,738.60 7,796.84
23 Solan Kasauli freehold 0 0 1,052,720.00 420403.49 15,129.27
24 Solan Patta Mehlog freehold 0 0 4,015,808.00 1888432.19 93,038.74
25 Solan Solan(P & T)Colony freehold 0 0 816,931.00 383200.77 19,495.19

252
26 Solan TE SECTOR-1, SEC-1 freehold 0 0 160,812.00 73462.39 3736.03

PARWANOO
27 Solan H.B.COLONY, PARWANOO freehold 0 0 337,264.00 147,527.38 7497.78
28 Solan S.Q., SAPROON SOLAN freehold 0 0 560,410.00 348120.92 17,773.43
29 Solan TE, VILL- SANGRAH freehold 0 0 3,003,670.00 1,308,967.48 66,523.19
Total 16941422 16941422 131417249 56844413.24 2818519.19
1053-STR
Cost at the
Total Area
Unique Location of the Property as date of time of
Sl No Revenue District Station Name of Compound of Land in
CODE per Revenue Records acquisition Aquisition in
sqmts
Lakhs
1 472830130 CHENNAI ANNA NAGAR ANNA NAGAR STR STAFF QTRS TS NO. 2 BLOCK-3 OF 1970 1.40625 6362
MULLAM VILLAGE AND NEW
S. N. 8/9 BLOCK NO. 12 OF
AYANAVARAM
Cost at the
Total Area
sqmts
Lakhs
2 472830129 CHENNAI GUINDY CGM(O) S.F.NO 32/17 18 19 & 32/14 1993 36.78735 1604
15
3 472830298 CTD-CHENNAI MENAMPEDU MEENAMBEDU CXL CHENNAI S.F. NO 216 &222/2 00-00-1972 0.47655 98136
CHENNAI CXL MW STN
4 472830451 ERNAKULAM ERNAKULAM DTS COMPOUND NIL 24-03-1969 0.00001 2600

5 472830453 ERNAKULAM ERNAKULAM DTS SQ COMPOUND 47/22-1&47/22-2 24-03-1969 1.42099 1601
6 472830162 ERNAKULAM KALOOR KALOOR MW STN 2205/4 587/10 11 13-03-1974 4.63822 9049.6
7 472830165 ERNAKULAM MUVATTUPUZHA M U V A T T U P U Z H A 124/6A1 6B2 28865 0.85 8903

-MEENAKKUNNAM MEENAKKUNNAM SAT E/S
8 472830202 GUNTUR NARASARAOPET NARASARAOPET-OFC TS NO 249 AND 300 28859 2.72577 4271
9 472830258 HYDERABAD BANJARA HILLS BANJARA HILLS MW STN S NO 403 OF SHEIKPET AND 29224 0.9025 8060
102 OF HAKEEMPET
10 472830444 IDUKKI PAINAVU IDUKKI MW/DTS S.NO. 161/1 31-03-1986 0.99 1335.5
253
11 472830082 KANCHIPURAM CHUNAMPEDU CHUNAMPEDU REPTR STN 30 CHUNAMPEDU VILLAGE R S 24-6-1981 0.00001 121.41
NO 284/3B
12 472830083 KANCHIPURAM KANTHADU KANTHADU REPTR STN 33 KANTHADU VILLAGE R S NO 27489 0.003 81.08
239/4
13 472830491 KANCHIPURAM MUPPANIHALMALAI MUPPANIHALMALAI MW R S NO 99/2 14-09-1977 0.00001 2500

14 472830087 KANCHIPURAM PERIYAKALAKADI PERIYAKALAKADI REPTR STN 28 PERIYAKALAKADI VILLAGE R 30-11-1974 0.0015 81.08
REPTR S NO 37/7
15 472830213 KRISHNA BHIMAVARAM BHIMAVARAM-MW OPP NH-9 BHIMAVARAM 33034 0.5 2400

16 472830212 KRISHNA VIJAYAWADA VIJAYAWADA MW 0/0 NO RECRD 15-08-1947 2.18383 1987.2
17 472830281 MEDAK KALAKKAL KALAKKAL MW STN S NO 180/2 31781 0.8423 1618.9

18 472830353 MYSORE MYSORE SIDDHARTHANAGAR SQ 0/0 00-00-1974 0.46667 1858
19 472830073 NAGERCOIL MUPPANDAL (VLO- MUPPANDAL REPEATER STN S.F. NO 41/1 THOVALAI 1974 0.006 80.97
NGC RS 15) VILLAGE-THOVALAI TALUK-
KANYA
20 472830271 NALGONDA SURYAPET SURYAPET SQ S NO 216 30682 1.6097 1661.5

21 472830274 NIZAMABAD KAMAREDDY KAMAREDDY OFC STN S NO 749 30320 3 3339
22 472830277 NIZAMABAD NIZAMABAD NIZAMABAD SQ SIRNAPALLY 15-08-1947 0.58994 1292.53
23 472830279 NIZAMABAD VIJAYANAGAR VIJAYANAGAR MW STN S NO 249/1 29590 0.047 1517

Cost at the
Total Area
sqmts
Lakhs
24 472830288 PRAKASHAM ONGOLE ONGOLE CXL ONGOLE 26302 2 841.5
25 472830100 SALEM VALAYAMADEVI VALAYAMADEVI MW SF NO 348 30926 0.01008 2307.55
26 472830115 TIRUNELVELI MUTHUSAMIPURAM MUTHUSAMIPURAM REPEATER S.F. NO 1206 1974 0.005 80.97
27 472830117 TIRUNELVELI SOUTHVALLYOOOR SOUTHVALLYOOOR REPEATER S.F. NO 1190/2 1974 0.005 80.97
28 472830118 TIRUNELVELI TENKASI TENKASI OFC S.F. NO 274/1 TENKASI VLG 21.02.1983 0.8856 2914.56
TENKASI TK
29 472830120 TIRUNELVELI VAGAIKULAM VAGAIKULAM MW STN S NO 390/B1B 22.11.1996 0.11639 2550
RAJAKKALMANGALAM VLG
NANGUNERI TK
30 472830124 TRICHY THUVAKUDI THUVAKUDI REPEATER 10 S.F. NO 653 AND 700 1977 0.5356 98
31 472830445 UT OF AGATTI AGATHI SAT E/S APPROACH 1302 31-03-2007 0.44859 80
LAKSHADWEEP ROAD
32 472830166 UT OF KAVARATHY KAVARATHY SAT E/S 891/5A2 6A2 15-11-1980 0.00001 4900
LAKSHADWEEP
254
33 472830135 VELLORE PARAMASATHU PARAMASATHU MW S.F. NO. 169/3 10.11.74 0 18575.8

C O M P OU N D - A P P R O A C H
ROAD
34 472830134 VELLORE VELLORE-BANGALORE POIGAI CXL STN S.F. NO 244/1 1978 0.11045 53
NRS
35 472830095 VILLUPURAM TINDIVANAM TINDIVANAM MW TS NO 33/2 TINDIVANAM TK 18-10-1990 0.00001 2266.3
36 472830011 VILLUPURAM VILLUPURAM VILLUPURAM MW R S NO 15/1 32730 9.4997 2672.06

37 472830144 VIRUDHUNAGAR VGR-KVT RS VGR-KVT RS 8 S.NO. 345 METTUPATTI 10.07.1974 0.001 80.86
VILLAGE SATTUR TALUK
38 472830443 VIRUDHUNAGAR VGR-MA VGR-MA RS-11 485/1 CHATRAREDDIAPATTI 27095 0.01 80.86
(USILAMPATTI)
39 472830229 VISAKHAPATNAM BHIMILL BHIMILL MW RR BHIMILI 30320 0.1 2500

40 472830233 VISAKHAPATNAM MVP -VM MVP COL QRS-VM S NO 23 PLOT 1 TO 4 AND 30773 1.07497 1995
14 TO 18 SECTOR 12 CHINA
WALTAIR VILLAGE
41 472830238 VIZIANAGARAM KOLHAVALAS KOLHAVALAS OFC DRO VZM 34338 0.17 404.7
42 472830243 WEST GODAVARI TADEPALLIGUDEM TADEPALLIGUDEM OFC ELURU RS 154 25-07-1969 0.63555 2911.7
1033- UTTARAKHAND
Gross Block Accumulated depreciation Net Block

Opening Closing balance Opening Deductions/ Closing
S.No. Particulars Additions Deletions Charge for Closing net block
balance as per as per Ind AS balance as per Adjustments balance as per
for the FY for the FY the FY as per Ind AS as at
Ind AS as at 1 as at 31 March Ind AS as at 1 for the FY Ind AS as at 31
2017-18 2017-18 2017-18 31 March 2018
April 2017 2018 April 2017 2017-18 March 2018
1 Lands (Free Hold) 3691785982 0 0 3691785982 1201891.02 18443.01 0 1220334.03 3690565648
2 Lands ( Lease Hold ) 7200034 0 0 7200034 474357666.7 28901943.78 0 503259610.5 -496059576.5
1022-Kerala

Opening Additions Deletions Closing balance Opening Charge Deductions/ Closing balance as Closing net block
S.N. Particulars balance as per for the FY for the FY as per Ind AS balance as per for the FY Adjustments per Ind AS as at as per Ind AS as at
Ind AS as at 2017-18 2017-18 as at March 31, Ind AS as at 2017-18 for the FY March 31, 2018 March 31, 2018
April 1, 2017 2018 April 1, 2017 2017-18
1 Lands ( Free Hold ) 30729998381 1282878.62 46647500 30684633760 0 0 0 0 30684633760
255
2 Lands ( Lease Hold ) 128614 0 0 128614 128614 0 0 128614 0
1036 - Chennai Telephones
Year of
Sl. Company Area of Land Location as per Revenue
District Station Compound Address acquisition
No. Name (in Sq. Meter) Records
of land
1 BSNL Kanchipuram Pallavaram Chromepet 179, GST Road 20911 850 179 GST Road
Zameen

2 BSNL Kanchipuram Padalam MW Radalam Microwave Station, Boodur, Near to 17258 3000 Microwave Bldg
Madurantakam, Kanchipuram distt.
3 BSNL Chennai Royapuram Kalmandapam No.21-A, G.A. Road, Kalmandapam, chennai 20546 3111 RS No 2093/9
4 BSNL Chennai Mambalam DTO 12, Giri Road, T. Nagar, chennai 17258 443 25, Giri Road, T Nagar
5 BSNL Chennai Reriyar Nagar DTO No.68, Kandasamy Road, Periyar Nagar, 32234 322 Pariyar Nagar
Chennai
6 BSNL Chennai CIT Nagar Mambalam No.652, Anna Salai, Nandanam, Chennai 21276 4595 Plot No.57, 59, 60 CIT Nagar
Scheme
7 BSNL Chennai Mylapore Mylapore No.58/166, Luz Church road, Mylapore, 17258 1469 RS No.4230/77 and 4230/78
Chennai Mylapore
8 BSNL Chennai Purasavakkam Millars Road 89, Millers Road, Chennai 38719 1376 3101/3
9 BSNL Tiruvallur Sura va rika MW Suravarikandigai Microwave Tower, 17258 2023 Suravarikandi Gai MW
Ndigai Gummidipoondi Taluk, Tamil Nadu
10 BSNL Tiruvallur Thirutani MW Pattabirama-puram, Thirutani Microwave 17258 2023 Thirutani MW
Building, Chennai, Thirutani Road, Thirutani
11 BSNL Chennai CTO DTO 2nd Line Beach Road, Chennai 24929 2500 2nd Lane Beach road
12 BSNL Chennai T r i p l i c a n e Anna Road 11, Dams Road, Chennai 16528 5666 10 Dams Road
Village
1021-Karnataka
Table A: Availability of Title Deeds
Title Deeds (Nos) Title Deeds (Sqm)

Sl. No Particulars
Total Available Not Available Total Available Not Available
1 Freehold Land 1,232 962 270 22,20,189 19,07,439 4,83,655
2 Leasehold Land 58 54 4 4,06,514 1,99,135 10,900
Total 1,290 1,016 274 26,26,703 21,06,754 4,94,555
256
10251-NEI
Measurement of
Whether Title Remarks (Name
SSA/Unit the Free hold/ Lease
Free hold/ deeds or lease to whom Title
S.No. Location Where Address of the Land hold lands not
Lease hold deeds available deeds or lease
Located having Title/lease
or not deeds available)
deeds
A. MEGHALAYA
1 BANASHREE (LOWER) Meghalaya Free hold Nongrim Nonthymmai 5378 Sq.m. yes DOT
2 WILLIAM NAGAR—(S/Q COMP.) Meghalaya Free hold Plot No. 58-794111 2676 Sq.m. No DOT
3 WILLIAM NAGAR—(T.E. COMP.) Meghalaya Free hold Plot No.16-794111 1338 Sq.m. No DOT
4 WILLIAM NAGAR—(M/W Meghalaya Free hold Williamnagar-794111 7417 Sq.m. DOT
COMP.)
5 MAWKLOT(T.E.) Meghalaya Free hold Mawklot village-793009 3254 Sq.m. yes DOT
6 LAITLEWLONG (UHF) Meghalaya Free hold Laitlewlong Village 4010 Sq.m. No DOT
7 NONGPIUR ESS Meghalaya Free hold Forest Land Compart 12348 Sq.m. yes DOT
Measurement of
deeds
8 DADENGIRI(T.E.) Meghalaya Free hold Dadengiri-794104 523.00 Sq.m. No DOT
9 BAGMARA (Satellite Compound) Meghalaya Free hold Plot NO. -794102 1200 Sq.m. yes DOT
10 BARAKUL(M/W) Meghalaya Free hold Plot No.8,Barakul ,BPO 780 Sq.m. No DOT
11 MAHENDRAGANJ (Satellite Meghalaya Free hold Plot A130, Mahendraganj 2676 Sq.m. yes DOT
compound)
12 NONGPOH(M/W) Meghalaya Free hold Nongpoh Hill-793102 2500 Sq.m. No DOT
13 SHELLA Meghalaya Free hold Shella Satellite Compound 1395 Sq.m. DOT
14 MENDIPATHAR (T.E.) Meghalaya Free hold Mwendipathar 1454 Sq.m. No DOT
village-794112
15 MAWMLUH (UHF) Meghalaya Free hold Village Mawmluh Sohra 1600 Sq.m. No DOT
16 MAWSYNRAM (T.E.) Meghalaya Free hold Mawsynram 2500 Sq.m. yes DOT
Donshiliang-793113
257
17 KHARKUTTA(T.E.) Meghalaya Free hold Kharkutta-783134 185.90 Sq.m. No DOT

18 MAWPAT Meghalaya Free hold Mawpat,Shillong-793012 2500.00 Sq.m. No DOT
19 MAWKYRWAT(T.E.) Meghalaya Free hold Mawten village 2500 Sq.m. yes DOT
Mawkyrwat-793114
20 LADRYMBAI Meghalaya Free hold Ladrymbai mookhep 1654 Sq.m. yes DOT
21 DAWKI (Satellite Compound) Meghalaya Free hold DARRANG- 1591 Sq.m. yes DOT
DAWKI-793109

22 PHULBARI Meghalaya Free hold Rongsaigiri phulbari 1096 Sq.m. yes DOT
23 BANASHREE (UPPER) Meghalaya Free hold Nongrim Nonthymmai 2902 Sq.m. yes DOT
24 NONGSTOIN(T.E.) Meghalaya Free hold CAD Complex Nongstoin 2280 Sq.m. No DOT
25 BARAPANI,UMIA (T.E.) Meghalaya Lease Part of plot no. 22 MESEB 683.6 Sq.m. yes DOT
26 NONGPOH(T.E.) Meghalaya Free hold Nongpoh-793102 3872 Sq.m. No DOT
27 DAINADUBI(T.E.) Meghalaya Free hold Chimabangshi Reserve 3000 Sq.m. No DOT
Forest-794110
28 JOWAI BAZAR Meghalaya Free hold Jowai Bazar-793150 938 Sq.m. No DOT
29 JOWAI THADLABOH Meghalaya Free hold Jowai Thadlaboh-793150 2080 Sq.m. No DOT
30 GPO, SHILLONG Meghalaya Freehold GPO,Shiilong-793001 1316 Sq.m. No DOT
Measurement of
deeds
31 MAIRANG (T.E.) Meghalaya Free hold Mairang-793120 2000 Sq.m. yes DOT
32 SHKENTALANG (T.E.) Meghalaya Free hold Shkentalang 1200 Sq.m. yes DOT
Elakaamwi-793150.
33 NONGPOH BAZAR (M/W) Meghalaya Free hold Nongpoh Bazar-793102 276.6 Sq.m. DOT
34 RALIANG Meghalaya Free hold Village Raliang -793150 700 Sq.m. No DOT
35 RIANGDOH(T.E.) Meghalaya Free hold Mawthengkut Riangdoh 2400 Sq.m. yes DOT
36 AVANDALE COMP. Meghalaya Free hold Avandale compound Barik 2775 Sq.m. yes DOT
37 CTO COMP. Meghalaya Free hold Telecom Qtr. CTO, 5400 Sq.m. No DOT
Shillong
38 FOREST COLONY Meghalaya Free hold Mawpun,Shillong-793001 3741 Sq.m. yes DOT
39 LAITKOR Meghalaya Free hold Laitkor,Shillong-793010 2158 Sq.m. No DOT
40 TURA (ADMN.) Meghalaya Free hold TURA-794001 511 Sq.m. No DOT
258
41 TURA( S/Q.) Meghalaya Free hold Tura-794001 639 Sq.m. No DOT

42 TURA(UHF) Meghalaya Free hold Tura-794001 2700 Sq.m. No DOT
43 TURA(T.E.) Meghalaya Free hold Tura-794001 1027 Sq.m. No DOT
44 UMKIANG(T.E.) Meghalaya Free hold Village Umkiang-793200 1301 Sq.m. No DOT
45 MAWLAINGUT(T.E.) Meghalaya Free hold Mawlaingutn village BPO, 1450.00 Sq.m. yes DOT
SOHIONG
46 NONGSTOIN(M/W) Meghalaya Free hold Nongstoin hill-793119 2500.00 Sq.m. No DOT
47 BAJENGDOBA (T.E.) Meghalaya Free hold VILL Bajengdo-794002 4014 Sq.m. yes DOT
48 OAKLAND Meghalaya Free Oakland, Shillong-793001 16600 Sq.m. No DOT
49 R.N. COMP. Meghalaya Free hold R.N. 12510 Sq.m. No DOT
50 RYNJAH (UMPLING) Meghalaya Free Umpling, Shillong-793006 28943 Sq.m. No DOT
51 LACHUMIE Meghalaya Free hold Lachumiere, Shillong 625.00 Sq.m. No DOT
52 SONAPUR Meghalaya Free hold Village Sonapur-793200 1171 Sq.m. No DOT
53 TUBER JOWAI(T.E.) Meghalaya Free hold Tuber Jowai-793160 166 Sq.m. No DOT
54 LAITRENGEW (T.E.) Meghalaya Lease hold Laitrengew-793111 13011 Sq.m. Yes DOT
Measurement of
deeds
55 AMLAREM (T.E.) Meghalaya Lease hold Plot –B,Civil subdivisional 900 Sq.m. yes DOT
complex
56 LUMDIENGIRI,GARIKHANA Meghalaya Lease hold Lumdiengiri, 225.00 Sq.m. yes DOT
Garikhana,Shiilong-793001
57 AMPATI (T.E.) Meghalaya Lease hold VII Ampati-794115 2025 Sq.m. NO DOT
58 BARENGAPARA(T.E.) Meghalaya Lease hold DAG No. A532&A593 AT 249 Sq.m. yes P&T
Ist Dalugaon Under Mouza
IX I-794103
59 BYNIHAT(T.E.) Meghalaya Lease hold Byrnihat-793101 309 Sq.m. No DOT
60 LUMSHNONG (T.E.) Meghalaya Lease hold Lumshnong-village 669.1 Sq.m. No DOT
61 RATACHERRA Meghalaya Lease hold Village Ratacherra-793200 1301 Sq.m. No DOT
62 MAWKYNROH Meghalaya Lease hold Mawkynroh-793022 1417 Sq.m. No DOT
259
63 TURA(DAKOPGRE) Meghalaya Lease hold Plot No.39III,Tura-7894001 4014 Sq.m. No DOT

64 CHERRAPUNJEE Meghalaya Lease hold Sohra-793108 1810 Sq.m. No DOT
65 DHARAPUR (NEW CTSD COMP.) Meghalaya Lease hold Dharapur, Guwahati 31078.00 Sq.m. No DOT
66 DHARAPUR (OLD CTSD COMP.) Meghalaya Lease hold Dharapur,Guwahati 9088.00 Sq.m. No DOT
67 KHLIEHRIA(T.E.) Meghalaya Lease hold KHLIEHRIA793200 block 1200 Sq.m. No DOT
B. TRIPURA
1 BAGMA Tripura Free hold Bagma-799119 1087 Sq.m. yes BSNL

2 GANDACHARRA-II Tripura Lease hold Gandacharra-II-799289 343 Sq.m. No DOT
3 GONDACHERRA Tripura Lease hold Gondacherra-799289 148 Sq.m. No DOT
4 HALAHALI Tripura Lease hold Halahali-799286 1509 Sq.m. No DOT
5 KALYANALPUR Tripura Lease hold Kalyanpur-799203 2236 Sq.m. yes DOT
6 KAMALPUR Tripura Lease hold Kamalpur-799285 915 Sq.m. No DOT
7 KAMALPUR-II Tripura Lease hold Kamalpur-II-799285 4394 Sq.m. No DOT
8 SALEMA Tripura Lease hold Salema-799278 1300 Sq.m. No DOT
9 SHIKARIBARI Tripura Lease hold Shikaribari-799289 2861 Sq.m. No DOT
10 BIRASHI MILE Tripura Lease hold Birasimile-799264 1338 Sq.m. No DOT
Measurement of
deeds
11 ABHIMONBARI Tripura Lease hold Abhimohanbari-799289 1565 Sq.m. No DOT
12 CHAILENGTA Tripura Lease hold Chailengta-799273 207 Sq.m. No DOT
13 CHURAIBARI Tripura Lease hold Churaibari-799262 760 Sq.m. No DOT
14 DHARAMNAGAR-II Tripura Lease hold Dharamnagar-II-799250 3729 Sq.m. No DOT
15 DHARAMNAGAR-I Tripura Lease hold Dharamnagar-I-799250 741 Sq.m. No DOT
16 KADAMTALA Tripura Lease hold Kadamlata-799261 770 Sq.m. No DOT
17 KAILASHAHAR-I Tripura Lease hold Kailashahar-I-799277 4672 Sq.m. yes DOT
18 KAILASHAHAR-II Tripura Lease hold Kailashahar-II-799277 3712.00Sq.m. No P&T
19 TELIAMURA Tripura Lease hold Teliamura-799205 2089 Sq.m. No DOT
20 KANCHANPUR Tripura Lease hold Kanchanpur-799270 1454 Sq.m. No DOT
21 KATHALIA Tripura Lease hold Kathalia-799132 139 Sq.m. No DOT
260
22 KUMARGHAT Tripura Lease hold Kumarghat-799264 4758 Sq.m. yes DOT

23 MANUGHAT Tripura Lease hold Manughat-799275 1233 Sq.m. No DOT
24 PANISAGAR Tripura Lease hold Panisagar-799260 2401 Sq.m. No DOT
25 PACHARTHAL Tripura Lease hold Pacharthal-799263 312 Sq.m. No BSNL
26 PHULDENSHAI Tripura Lease hold Phuldenshai-799269 1338 Sq.m. No DOT
27 SARMONTILLA Tripura Lease hold Sarmontilla-799263 2361 Sq.m. No DOT
28 VANGMUN Tripura Lease hold Vangmun-799270 123 Sq.m. No DOT
29 AMARPUR Tripura Lease hold Amarpur-799101 1586 Sq.m. No DOT
30 AMBASSA (DOLUBARI) Tripura Lease hold Ambassa-799289 1884 Sq.m. No DOT
31 BELONIA Tripura Lease hold Belonia-799155 595 Sq.m. No DOT
32 CHATTAKHOLA Tripura Lease hold Chattakhola-799155 1226 Sq.m. No DOT
33 HRISHYAMUKH Tripura Lease hold Hrishyamukh-799156 1395 Sq.m. No BSNL
34 JATANBARI Tripura Lease hold Jatanbari-799155 879 Sq.m. No DOT
35 KILLA Tripura Lease hold Killa-799120 3729 Sq.m. No DOT
36 MAHARANI Tripura Lease hold Maharani-799121 2170 Sq.m. No DOT
37 RADHANAGAR Tripura Lease hold Radhanagar-799153 1780 Sq.m. No DOT
38 RANIBAZAR Tripura Lease hold Ranibazar-799035 2091.85 Sq.m. yes DOT
Measurement of
deeds
39 R.K.PUR-I Tripura Lease hold R.K.PUR-I-799120 4729 Sq.m. yes DOT
40 R.K.PUR-II Tripura Lease hold R.K.PUR-II-799120 984 Sq.m. No DOT
41 RUPAICHARI Tripura Lease hold Rupaichari-799145 1293 Sq.m. No DOT
42 SABROOM-I Tripura Lease hold Sabroom-I-799145 1842 Sq.m. No DOT
43 SABROOM-II Tripura Lease hold Sabroom-II-799145 1386 Sq.m. No DOT
44 SANTIBAZAR Tripura Lease hold Santibazar-799144 2115 Sq.m. No DOT
45 A.D. NAGAR (S/QRT.) Tripura Lease hold ADNagar-799003 8339.00 Sq.m. No P &T
46 KUNJABAN Tripura Lease hold Kunjaban-799006 4254 Sq.m. No BSNL
47 LICHUBAGAN Tripura Leased Lichubagan-799012 21681.00 Sq.m. yes DOT
48 NORTH-GATE Tripura Lease hold North-Gate-799001 4046.00 Sq.m. No DOT
49 BOXNAGAR Tripura Lease hold Boxnagar-799106 2196 Sq.m. No DOT
261
50 JAMPUJALA Tripura Lease hold Jampujala-799102 940.00 Sq.m. No DOT

51 KHANTIYBARI Tripura Lease hold Khantiybari-799205 1256.00 Sq.m. No DOT
52 KHOWAI-I Tripura Lease hold Khowai-I-799201 1180 Sq.m. No DOT
53 KHOWAI-II Tripura Lease hold Khowai-II-799202 1763.00 Sq.m. No DOT
54 MELARMATH Tripura Lease hold Melarmath-799001 274 Sq.m. No DOT
55 SONAMURA Tripura Lease hold Sonamura-799131 686 Sq.m. No DOT
56 DALUGAON Tripura Lease hold Dalugaon-799280 1892 Sq.m. yes BSNL

57 KANCHANBARI Tripura Lease hold Kanchanbari-799288 850 Sq.m. YES DOT
58 MATAI Tripura Lease hold Matai-799159 1619 Sq.m. yes DOT
59 BARPATHARI Tripura Lease hold Barpathari-799155 1619 Sq.m. yes DOT
60 BELONIA (NEW) Tripura Lease hold Belonia(New)-799155 862 Sq.m. No DOT
61 JOLAIBARI Tripura Lease hold Joliabari-799141 1571.00 Sq.m. No DOT
62 KAKRABAN Tripura Lease hold Kakr-aban-799105 1476 Sq.m. yes BSNL
63 MANUBAZAR Tripura Lease hold Manubazar-799143 1035 Sq.m. No DOT
64 MIRZA Tripura Lease hold Mirza-799120 1257.00 Sq.m. yes BSNL
65 SALGARAH Tripura Lease hold Salgarah-799125 1591 Sq.m. yes BSNL
66 SILACHARI Tripura Lease hold Silachari-799120 1360 Sq.m. No DOT
Measurement of
deeds
67 SRINAGAR Tripura Lease hold Srinagar-799145 1288 Sq.m. No DOT
68 A.D. NAGAR (T.E.) Tripura Lease hold AD Nagar-799003 7675 Sq.m. No DOT
69 CAPITAL COMPLEX Tripura Lease hold Capital Compex-799012 4046 Sq.m. No DOT
70 KAMAN CHOWMUHANI Tripura Lease hold Kaman 1775 Sq.m. yes BSNL
Chowmuhani-799001
71 RAJNAGAR Tripura Lease hold Rajnagar-799158 2118 Sq.m. No DOT
72 SINGHER BILL(AIRPORT) Tripura Lease hold Airport (Singher Bill)- 544 Sq.m. yes BSNL
799009
73 BARKATHAL Tripura Lease hold Barkathal-799211 1416 Sq.m. yes DOT
74 BIRENDRANAGAR (JIRANIA) Tripura Lease hold Birendranagar (Jirania) 817 Sq.m. yes BSNL
75 BISHALGARH Tripura Lease hold Bishalgarh-799102 1795 Sq.m. yes BSNL
76 BISHRAMGANJ Tripura Lease hold Bishramganj-799103 1876 Sq.m. yes BSNL
262
77 FATIKCHARA (KAMALGHAT) Tripura Lease hold Fatikchara (Kamalghat) 1290 Sq.m. No BSNL
78 GANDHIGRAM Tripura Lease hold Gandhigram-799012 842 Sq.m. Yes BSNL
79 INDRANAGAR(G B BAZAR) Tripura Lease hold Indranagar (G B 800.00Sq.m. yes BSNL
BAZAR)-799006
80 KATLAMARA Tripura Lease hold Katlampara-799211 1877 Sq.m. No BSNL
81 MELAGHAR Tripura Lease hold Melaghar-799115 1138 Sq.m. No DOT
82 MOHANPUR Tripura Lease hold Mohanpur-799211 1800 Sq.m. yes BSNL
83 BIRCHANDRAMANU Tripura Lease hold Birchandramanu-799045 1271 Sq.m. No DOT
C.. MIZORAM
1 SANGAU(BSNL) Mizoram Free hold Sangau- 2640 Sq.m. YES BSNL
2 MAMPUI(BSNL) Mizoram Free hold Mumoui-796891 720 Sq.m. yes BSNL
3 ZUANGTAI Mizoram Free hold Zuangtui-796017 3380.44 yes BSNL
(STORE &S/QTR.)(BSNL) Sq.m.
4 AIZAWL(BSNL) Mizoram Free hold Khatla-796001 800.1 yes BSNL
(ADMN.) Sq.m.
5 REIEK(T.E.) (BSNL) Mizoram Free hold Reiek-796501 1512 Sq.m. yes BSNL
Measurement of
deeds
6 BAIRABI (BSNL) Mizoram Free hold Bairabi-796081 1485.55 Sq.m. yes BSNL
7 BUNGTLANG (GSM /BTS) (BSNL) Mizoram Free hold Bungtlang 875 Sq.m. yes BSNL
8 DILTLANG(T.E.)(BSNL) Mizoram Free hold Diltlang-796891 1347.5 Sq.m. yes BSNL
9 ZERO POINT-I (GSM BTS)(BSNL) Mizoram Free hold Zero point-796901 712.8 Sq.m. yes BSNL
10 BUALPUI NG(T.E.) Mizoram Free hold Builpui ng- 1540 Sq.m. No DOT
11 MELBUK (BSNL) Mizoram Free hold Melbuk- 2000 Sq.m. yes BSNL
12 BUARPUI-WEST(T.E.) (BSNL) Mizoram Free hold Buarpui-796441 1236.13 Sq.m. yes BSNL
13 DARLAWN(T.E.) (BSNL) Mizoram Free hold BDO TLANG-796111 2906 Sq.m. yes BSNL
14 LUANGMUAL (T.E.) Mizoram Free hold Luangmual-796001 11124 Sq.m. yes DOT
15 SAIHA-I (M/W/)(BSNL) Mizoram Free hold New colony-796901 992.25 Sq.m. yes BSNL
16 SAIHA-II (T.E.)(BSNL) Mizoram Free hold Pukzing-796431 4034 Sq.m. yes BSNL
263
17 SERCHHIP-II-(New comp.) (BSNL) Mizoram Free hold Serchhip Entlang 9716 Sq.m. yes BSNL
18 SAIRANG (T.E./UHF) (BSNL) Mizoram Free hold Sairang-796410 2710.87 Sq.m. yes BSNL
19 KAMALNAGAR-II-(T.E.)(BSNL) Mizoram Free hold Kamalnagart-II-796770 204 Sq.m. yes BSNL
20 ZAWLNUAM(T.E.)(BSNL) Mizoram Lease hold Vengpui-796471 1798.75 Sq.m. yes BSNL
21 CHAMPAI (SATELLITE) Mizoram Lease hold Champai-796321 4052.37 Sq.m. yes BSNL
22 LUNGLEI (M/W) (BSNL) Mizoram Lease hold Ramzotlang-796701 2500 Sq.m. yes BSNL

23 THINGFAL (M/W) (BSNL) Mizoram Lease hold Thingfal-796701 2767.04 Sq.m. yes BSNL
24 SERCHHIP (M/W) (BSNL) Mizoram Lease hold Serchhip Entlang-796181 2019.62 Sq.m. yes BSNL
25 BUALPUI’N (M/W) Mizoram Lease hold Builpui N-796070 1600 Sq.m. yes BSNL
26 THINGSULTHIAH (T.E.) Mizoram Lease hold Thingsulthiah-796161 1775.2 Sq.m. yes BSNL
27 CHAMPAI (T.E.) Mizoram Lease hold Vengsang-796321 5382.87 Sq.m. yes BSNL
28 LUNGLEI M i z o r a m Lease hold Bazar veng-796701 464.12 Sq.m. yes BSNL
( S / Q r t .
Complex)
29 DURTLANG (T.E.) (BSNL) Mizoram Lease hold Vengthar-796014 2140.87 Sq.m. yes BSNL
30 CHAMPAI (GSM-BTSCOMPLEX) Mizoram Lease hold Vengsang-i-796321 302.02 Sq.m. yes BSNL
Measurement of
deeds
31 VAIRENGTE (CUW COMPLEX) Mizoram Lease hold Chhimveng-796101 663 Sq.m. yes BSNL
32 PUKZING (BTS) Mizoram Lease hold Pukzing-796431 639.36 Sq.m. yes BSNL
33 HAULAWNG (T.E.) Mizoram Lease hold Lalveng-796691 1595.86 Sq.m. yes BSNL
34 THUAMPUI (T.E/ST. QRT..) Mizoram Lease hold Thuampui-796017 314.00 Sq.m. yes DOT
35 VAIRENGTE (M/W) Mizoram Lease hold Vairengte-796101 1759.54 Sq.m. yes BSNL
36 VAIRENGTE (S/QTR. ) Mizoram Lease hold Vairengte-796101 412.09 Sq.m. yes BSNL
37 SAITUAL(T.E.) (BSNL) Mizoram Lease hold Saitual-796261 714.45 Sq.m. yes BSNL
38 KAWLKULH (T.E.COMPLEX) Mizoram Lease hold Kawlkulh-796310 542.21 Sq.m. yes BSNL
(BSNL)
39 AIZAWL (ELECTRONIC Mizoram Lease hold Khatla-796001 762.82 Sq.m. yes BSNL
COMPLEX) (BSNL)
40 BAITE(T.E.) Mizoram Lease hold Biate-796370 2069 Sq.m. yes BSNL
264
41 MUALTHUM’N (T.E.) (BSNL) Mizoram Lease hold Mualthuam-N-796701 1136 Sq.m. yes BSNL
42 ZOBAWK (T.E.) (BSNL) Mizoram Lease hold Zobawk- 667.5 Sq.m. yes BSNL
43 BUNGTLANG ’(WLL/ BTS) Mizoram Lease hold Bungtlan-S-796181 1062.41 Sq.m. yes BSNL
44 CHHINGCHHIP (T.E.)(BSNL) Mizoram Lease hold Chhingchhip-796181 789.39 Sq.m. yes BSNL
45 AIZAWL (M/W) Mizoram Lease hold M.C. Hill 1610 Sq.m. No DOT
46 TLUNGVEL(T.E.) (BSNL) Mizoram Lease hold Vengthar-796161 1071.09 Sq.m. yes BSNL
47 KHAWZAWL (T.E.) (BSNL) Mizoram Lease hold Zaingen-796310 1328.42 Sq.m. yes BSNL
48 KAWNPUI(BSNL) Mizoram Lease hold Venglai-796070 945.77 Sq.m. yes BSNL
49 THINGDAWL (BSNL) Mizoram Lease hold Vengthar-796081 1729.74 Sq.m. yes BSNL
50 TUIPANG(BSNL) Mizoram Lease hold Tuipang- 1120 Sq.m. yes BSNL
51 NGOPA(T.E.) (BSNL) Mizoram Lease hold Ngopa-796290 1638.55 Sq.m. yes BSNL
52 LUNGLEI (STORE COMPLEX) Mizoram Lease hold Lunglei-796701 600 Sq.m. yes BSNL
(BSNL)
53 AIZAWL (VENGHLUI) (S/QRT.) Mizoram Lease hold Venghlui-796001 223.48 Sq.m yes BSNL
54 HNAHTHIAL (T.E.) (BSNL) Mizoram Lease hold Tarphoveng-796701 689.55Sq.m. yes BSNL
55 LUNGLEI(T.E.) Mizoram Lease hold Venglai-796701 802.38 Sq.m. yes BSNL
Measurement of
deeds
56 EAST-LUNGDAR (BSNL) Mizoram Lease hold Salem veng-796370 1548.75 Sq.m. yes BSNL
57 LUNGDAI(T.E.) Mizoram Lease hold Venglai-796014 797.53 Sq.m. yes BSNL
58 SIHPHIR(T.E.) Mizoram Lease hold Sihphir-796014 489 Sq.m. yes BSNL
59 LUNGSEN(BSNL) Mizoram Lease hold Hmarveng-796701 1098.11 Sq.m. yes BSNL
60 KHAWBUNG-S(T.E.) Mizoram Lease hold Khawbung-S-796320 1008.37 Sq.m. yes BSNL
61 BILKHAWTHLIR (T.E.) (BSNL) Mizoram Lease hold Kualmawi-796091 1380.37 Sq.m. yes BSNL
62 TLABUNG(BSNL) Mizoram Lease hold Zodinveng-796751 2217.3 Sq.m. yes BSNL
63 AIBAWK(T.E.) (BSNL) Mizoram Lease hold Hermonveng-796190 923.27 Sq.m. yes BSNL
64 RAWPUICHHIP (T.E.) (BSNL) Mizoram Lease hold Rawpuichhip-796441 120.32 Sq.m. yes BSNL
65 WEST- PHAILENG(BSNL) Mizoram Lease hold Vengchung-796431 2896.82 Sq.m. yes BSNL
66 LAWNGTLAI-I-(T.E.) Mizoram Lease hold Vengpui-796891 1002 Sq.m. yes BSNL
265
67 MAMIT(BSNL) Mizoram Lease hold Lungsirveng-796441 1142.37 Sq.m. yes BSNL

68 AIZAW (SATELLITE) Mizoram Lease hold Khatla-796001 5132 Sq.m. No DOT
69 BUALPUI-KAWNPUI (T.E.) (BSNL) Mizoram Lease hold Builpui-Kawnpui-796070 1148 Sq.m. yes BSNL
70 BUKPUI M i z o r a m Lease hold Bukpui-796081 3208.12 Sq.m. yes BSNL
(T.E.) (BSNL)
71 KOLASIB (GSM/BTS) Mizoram Lease hold Kolasib- 400 Sq.m. No DOT
72 CHAWNGTE (T.E.) Mizoram Lease hold Chawngte- 2640 Sq.m. No DOT

73 CHHIATLANG (T.E.) Mizoram Lease hold Chhiatlang-796181 2410 Sq.m. yes BSNL
74 BUNGHMUNW (T.E.) Mizoram Lease hold Bunghmunw-796701 839.43 Sq.m. yes BSNL
75 HLIAPPUI(T.E.) Mizoram Lease hold Hliappui- 2772.39 Sq.m. yes DOT
76 KAWKULH-2 Mizoram Lease hold Kawlkulh-2 3377.45 Sq.m. No DOT
77 HLIAPPUI (WLL) Mizoram Lease hold BTS-796321 839.43 Sq.m. yes BSNL
78 KAWRTHAH Mizoram Lease hold Kawrthah-796441 661.5 Sq.m. yes BSNL
79 BAKTAWNG Mizoram Lease hold Baktawng-796181 1391.3 yes BSNL
(MOBILE BTS) Sq.m.
81 KOLASIB(T.E.) Mizoram Lease hold Project 2646 Sq.m. No DOT
Measurement of
deeds
82 LAITE(T.E.) Mizoram Lease hold Laite-796570 400 Sq.m. No DOT
83 LAWNGTLAI Mizoram Lease hold Karkawn-796891 1893.98 Sq.m. No BSNL
84 AIZAWL (ZONUAM) (S/QRT.) Mizoram Lease hold Zonuam-796001 599.68 Sq.m. yes P&T
85 LUNGLEI (S/QTR. PASTAL Mizoram Lease hold Venglai-796701 692.64 Sq.m. yes BSNL
BIFRACTED)
86 PHULLEN(T.E.) Mizoram Lease hold Phullen-796261 574.43 Sq.m. yes BSNL
87 LENGPUI(T.E.) Mizoram Lease hold Lengpui-796410 1032 Sq.m. No DOT
88 SAILSUK(BSNL) Mizoram Lease hold Sailsuk-769190 574.75 Sq.m. yes BSNL
89 THENZAWL (BSNL) Mizoram Lease hold Fieldveng-796186 1052.94 Sq.m. yes BSNL
90 NORTH-VANLAIPHAI(T.E.) Mizoram Lease hold North-Vanlaiphai-796180 620.4 Sq.m. No BSNL
91 PAITHER (GSM BTS) Mizoram Lease hold Paither- 600 Sq.m. No BSNL
266
92 PANGZAWL Mizoram Lease hold Pangzawl-796501 1495.52 Sq.m. No BSNL

93 SIATLAI(T.E.) Mizoram Lease hold Siatlai 600 Sq.m. No BSNL
94 THERIAT(BTS) Mizoram Lease hold Theriat 400 Sq.m. No BSNL
95 TUIPUI-S(BTS) Mizoram Lease hold Tuipui-s-796700 400 Sq.m. No BSNL
96 Uttar Devendra Chandra Nagar Tripura Lease hold Taranagar- 799211 809.37 Sq.m No BSNL
97 Uttar Padmabil Tripura Lease hold Khowai- 799201 404.68 Sq.m No BSNL
1026-NE II
LAND ASSET AT NAGALAND SSA
Land in the name

Sl. No. Name of SSAs Assest Code Assets Location Remarks
of BSNL/ DoT
1 Nagaland 990100081 Nagarjan AR DoT
2 Nagaland 990100082 Chikitong DoT
3 Nagaland 990100083 Jaluki DoT
4 Nagaland 990100084 Niuland BSNL MUTATED
5 Nagaland 990100085 Sataka DoT
6 Nagaland 990100086 Sanis DoT
7 Nagaland 990100087 Aboi DoT
8 Nagaland 990100088 Tizit DoT
9 Nagaland 990100089 Kuhoboto BSNL MUTATED
10 Nagaland 990100090 Longkhim DoT
11 Nagaland 990100091 Aghunoto DoT
12 Nagaland 990100092 Dhansiripar BSNL MUTATED
13 Nagaland 990100093 Tobu DoT
14 Nagaland 990100094 Tenning DoT
15 Nagaland 990100095 Impur DoT
16 Nagaland 990100096 Pfutzero DoT
17 Nagaland 990100097 Noklak DoT
18 Nagaland 990100098 Longleng DoT
19 Nagaland 990100099 Phugoboto DoT
20 Nagaland 990100100 Chazuba DoT
22 Nagaland 990100102 Tseminyu BSNL MUTATED
23 Nagaland 990100103 Sechuzubzha BSNL MUTATED
24 Nagaland 990100104 Nagnimora DoT
25 Nagaland 990100105 Mongkolemba DoT
26 Nagaland 990100106 Chizami DoT
27 Nagaland 990100107 Viswema BSNL MUTATED
28 Nagaland 990100108 Khonoma BSNL MUTATED
29 Nagaland 990100109 Chakabama BSNL MUTATED
30 Nagaland 990100110 Chiphobozou BSNL MUTATED
267
Land in the name
of BSNL/ DoT
31 Nagaland 990100111 Tuensang DoT
32 Nagaland 990100112 Chare DoT
33 Nagaland 990100113 Kohima(High School) BSNL MUTATED
34 Nagaland 990100114 Mokokchung DoT
35 Nagaland 990100115 TuliTown DoT
36 Nagaland 990100116 Dimapur Pura Bazar BSNL MUTATED
37 Nagaland 990100117 Suru Hoto DoT
38 Nagaland 990100118 Dimapur Walford BSNL MUTATED
39 Nagaland 990100119 Pephema BSNL MUTATED
40 Nagaland 990100120 Zunheboto DoT
41 Nagaland 990100121 Signal Bosti DoT
42 Nagaland 990100122 Dimapur (PRX) DoT
43 Nagaland 990100123 Wakching DoT
44 Nagaland 990100124 Kohima BSNL MUTATED
45 Nagaland 991600000 Changtongya DoT
46 Nagaland 991600001 Chumukedima BSNL MUTATED
47 Nagaland 991600002 Kohima TE BSNL MUTATED
48 Nagaland 991600003 Wokha DoT
268
Limited on the Standalone Ind AS financial Statements for the year ended 31 March 2018”
APPENDIX B
1027-Odisha
License Fees & USO Levy (Rs.) Spectrum Usage Charges Total
Paid / Adjusted 35,68,66,211.00 22,51,64,510.00 58,20,30,721.00
Booked to Expenses 39,27,11,081.91 17,75,07,693.82 57,02,18,775.73
Excess / (Short) paid (3,58,44,870.92) 4,76,56,816.17 1,18,11,939.25
1026-NE II
CONSOLIDATED LICENSE FEE & SPECTRUM CHARGES FOR THE YEAR- 2017-18
Figure in Rupees
Sl. No. Particulars License Fee
USO Levy Spectrum Charges
1 BASIC 3,236,000 5,393,334 33,641
2 CMTS 14,181,168 23,635,280 37,298,817
3 NLD 8,009,944 13,349,906 -
4 ILD 574,549 957,581 -
5 V-SAT - - -
6 INTERNET 6,086 10,144 -
7 WIMAX - - 1,678
Grand Total 26,007,747 43,346,245 37,334,136
Annexure-2
Figure in Rupees
SUMMARY FOR CALCULATION OF LICENSE FEE & SPECTRUM CHARGES ON REVENUES FOR THE YEAR 2017-18 (CMTS
SPECTRUM
Sl SPECTRUM SPECTRUM
Details MSR NLD ILD CHGS(3G
No CHGS(CDMA) CHGS(DATA)
+2G)
1 Gross Revenue 472,705,681 149,984,014 8,464,109 471,287,083 1,418,523 84,776,517
Less:Deduction Claimed 75
2 Net Revenue(AGR) 472,705,606 149,984,014 8,464,109 471,287,083 1,418,523 84,776,517
License Fee 14,181,168 4,499,520 253,923 - - -
USO Levy 23,635,280 7,499,201 423,205 - - -
3 Spectrum Charges - - - 31,576,235 42,556 5,680,027
Total License Fee & Spec Charges 37,816,448 11,998,721 677,129 31,576,235 42,556 5,680,027
269
Annexure-2
Figure in Rupees
SUMMARY FOR CALCULATION OF LICENSE FEE & SPECTRUM CHARGES ON REVENUES FOR THE YEAR 2017-18 (BASIC)
Sl SPECTRUM SPECTRUM
Details BSR NLD ILD V-SAT INTERNET
No CHGS(DSPT) CHGS(WIMAX)
1 Gross Revenue 107,866,675 117,014,109 10,687,509 - 226,626,613 841,030 167,768
Less: Deduction - - - - - -
(Pure Internet 226,423,741
Service)
2 Net Revenue (AGR) - 202,872 841,030 167,768
107,866,675 117,014,109 10,687,509
License Fee 3,236,000 3,510,423 320,625 - 6,086 - -
USO Levy 5,393,334 5,850,705 534,375 - 10,144 - -
3 Spectrum Charges - - - - - 33,641 1,678
Total License Fee & Spec 8,629,334 9,361,129 855,001 - 16,230 33,641 1,678
Charges
Kolkata Telephones
License fees payable to DOT are stated to have been recognised by the Circle in terms of the License Agreement
between the Company and DOT as amended as per the instructions issued by the Corporate Office from time to
time regarding the matter. However, we have not verified the said agreement, since we were informed that no
copy of the same is available in the Circle Office.
b) The Circle does not have the system of identifying actual usage of NLO and ILO calls. As such, license fees
payable to DOT on the revenue arising out of such services have been accounted for at predetermined rates as
stated in paragraph no.9.~ of Note-38 to the financial statement.
Accordingly, the cumulative effects of the above matters could not be ascertained on the Loss of the Circle for
the year.
Rajasthan circles
Revenues in respect of interest income from private telecom operators for delayed payment of various charges are
accounted for on cash basis as per accounting’ policy of the company and hence are not considered on accrual
basis for the purpose of calculation of License fees payable
The exchange-wise reconciliation of outgoing metered calls and billed calls have not been done in most of the
units of the circle .Consequently the completeness of the bills raised vis- a- vis metered calls is not verifiable.
lncome relating to Post paid subscribers, CDMA services, Basic services, lUC, Broadband/ internet and Circuits
have been taken on the basis of sub ledger/ reports generated through centralized software at Chandigarh. We
have not verified the completeness and correctness of the income booked on the basis of above sub ledgers/
reports and has relied on these sub ledgers/ reports for the purpose of verification for the abovd revenue. Any
consequential impact of the same of the license fees and spectrum charges cannot be commented upon
No billings are made for reciprocal services provided between BSNL, MTNL, DOP and DOT. Hence the same
could not be included in Revenue for the purpose of calculation of License fees payable.
270
As explained to us, interest on outstanding Balances of DOT is not accounted for on accrual basis and hence the
same could not be included in Revenue for the purpose of calculaiion of License fees payable.
NCNGN Circle
We observed that Advice Transfer debit (ATD) amounting to Rs.37.68 crore and Advice Transfer Credit aounting
to Rs.1.26 lakhs were raised to different circles which were unresponded. The impact of the same on AGR
couldot be ascertained.
MP Circle
Interest received on security deposits from MEMKVV company limited is set off directly from bills thus interest
amount cannot be ascertained. Since the interest income is not ascertainable and recognized separately the
liability of license fee is understated to that extent.
BSNL CHTD ANNEXURE II B
GL CODE DETAILS AMOUNT

5022008 Bad Debts Written Off (Other than services) 32,257.45
5022009 Bad Debts Written Off Services 49,570,285.37
5022010 Service tax for post paid but not collected 3,090,363.59
5022013 SBC paid for post paid but not collected 11,054.21
5022015 KKC paid for post paid but not collected 3,310.50
5022016 GST paid but not collected hence W/off 2,665.49
Total 52,709,936.61
Sl No. Billing ID Customer Name Bill Date ABF

1 10801043 I C NET 27/05/1996 67062
2 10300035 APPOLLO TUBES 02/06/1997 77333
3 10100870 S.K.RANGANATHAN & CO 10/04/2000 13319
4 10600450 DISHNET WIRELESS 01/06/2000 64090
5 10402723 MRS M.S.SHARANYA 01/06/2000 2208
6 10810473 LARSEN & TOUBRO LTD 30/05/2001 7254
7 10802021 G. TIBARAWALA & CO, 30/05/2001 909
8 10801233 ZENECA ICI AGRO CHEMICALS LTD 25/07/2001 1929
10 10600315 NISSHO IWAI CORPORATION 28/11/2003 2981
11 10103849 HAYSTACK SOFTWARE SYSTEMS INDIA (P) LTD., 11/03/2004 38129
12 10202072 PACE AUTOMATION LIMITED 11/03/2004 35100
13 10103747 PERTINENT CYBER SOLUTIONS (P) LTD., 11/03/2004 13426
14 10103340 HCL TECHNOLOGIES LTD., 11/03/2004 13137
15 10103699 PRADEEP COMMUNICATIONS 11/03/2004 10998
16 10101462 EQUIFAX VENTURE LTD 11/03/2004 10741
17 10103147 ANTARIX E APPLICATIONS LTD 11/03/2004 9885
18 10402860 HCL PERIPHERALS 11/03/2004 8856
271
19 10103508 TODI TELECOM 11/03/2004 6375
20 10103191 MIND SPRING INFOTECH PVT LTD 11/03/2004 5852
21 10801218 EQUIFAX VENTURE INFOTEX LTD 25/03/2004 13303
22 10104281 M/S. SRI SATHYA SAI INFOTECH PVT. LTD., 01/04/2004 1648
23 10103894 G.SURESH BABU 15/04/2004 1847
24 10103894 G.SURESH BABU 01/05/2004 6477
25 10103951 PRODAPT SOLUTIONS PVT. LTD., 11/06/2004 64840
26 10103524 ICICI INFOTECH SERVICES LTD., 04/10/2004 297901
28 10103750 M/S. DATA ACCESS (INDIA) LIMITED 01/03/2005 29379
29 10102944 SERVION GLOBAL SOLUTIONS LTD 01/03/2005 23123
30 10104722 VECTONE (I) LTD 01/03/2005 22017
31 10103343 L.G.ELECTRONICS INDIA LTD., 01/03/2005 21989
33 10104971 SECOVA ESERVICES LTD 01/03/2005 18752
34 10102979 GE COUNTRY CONSUMER 01/03/2005 15589
35 10103885 BETHAL NETWORLD, 01/03/2005 11979
36 10103398 DR. M.G.R. ENGG. COLLEGE 01/03/2005 11387
38 10402860 HCL PERIPHERALS 01/03/2005 10689
39 10104024 REUTERS (I) PVT. LTD., 01/03/2005 10333
40 10102180 SUTHERLAND TECHNOLOGIES INDIA P LTD 01/03/2005 9858
41 10103196 BHARAT EARTH MOVERS LTD 01/03/2005 9525
42 10104584 ATLAS LOGISTICS PVT LTD 01/03/2005 9397
43 10102943 EASWARI ENGINEERING COLLEGE 01/03/2005 8722
45 10104911 ALTOSYS SOFTWARE TECHNOLOGIES LTD 01/03/2005 6509
46 10103894 G.SURESH BABU 01/03/2005 6348
47 10103508 TODI TELECOM 01/03/2005 6248
48 10104626 K.SATISH 01/03/2005 6173
50 10104364 GLOBAL CONNECT, 01/03/2005 3785
51 10104333 NEXT DIMENSIONS, 01/03/2005 1715
52 10104463 WARTSILA INDIA LTD 01/03/2005 1388
54 10104131 INNOVATIVE MARKETING 08/03/2005 24175
55 10103345 CHOLAMANDALAM DBS FINANCE LTD 08/03/2005 21325
57 10108568 MEDOPHARM 02/05/2005 19657
58 10108570 GGS INFORMATION SERVICES INDIA PVT LTD 02/05/2005 16237
59 10108566 EXPERTUS INFOTECH PVT LTD 02/05/2005 13453
272

60 10108401 M/S. BIJA TECHNOLOGIES P LTD 02/05/2005 7629
61 10104984 KONE ELEVATORS INDIA PVT LTD 07/06/2005 24393
62 10108393 TATA CONSULTANCY SERVICES 01/07/2005 25667
63 10202566 M/S. DATA ACCESS (I) LTD., 01/07/2005 20893
64 10104872 AFL PRIVATE LTD 01/07/2005 19684
65 10104856 MEDIPRO MANAGEMENT SERVICE 01/07/2005 15946
66 10108949 INSTITUTE FOR DEVELOPMENT & RESEARCH IN 01/07/2005 15689
BANKING T
67 10104851 SUNDARAM ASSET MANAGEMENT LTD 01/07/2005 10113
68 10104976 FINANCIAL SOFT WARE K SYSTEMS PVT LTD 18/07/2005 13301
69 10108343 MEGASOFT LIMITED 18/07/2005 11050
70 10101802 ROXER COM [P] LTD 01/09/2005 6742
71 10101906 INDIAN HOTELS LTD 01/09/2005 4033
72 10108109 TATA CONSULTANCY SERVICES LTD 07/11/2005 6647
73 10104928 M.MAHALINGAM 07/11/2005 5279
74 10108275 HCL TECHNOLOGIES LTD 07/11/2005 4485
75 10108092 SUNDARAM FASTENERS LIMITED 14/11/2005 12966
76 10801266 INDIA SWITCH COMPANY [P] LTD 25/11/2005 14642
77 10104991 GMAC FINALCAL SERVICE INDIA LTD 01/12/2005 9074
78 10101802 ROXER COM [P] LTD 01/12/2005 6742
79 10102754 L.G INFOSOFT 01/12/2005 4420
81 10108116 GREAT LAKES INSTITUTE OF MANAGEMENT LTD 02/12/2005 6211
82 10108135 S.MALATHI 02/12/2005 4019
83 10103838 CONTAINER CORPORATION OF INDIA LTD., 05/01/2006 2262
84 10108360 SKYWAY-THE DISHNET HUB 01/02/2006 15632
85 10103334 OLAM EXPORTS INDIA LTD 07/02/2006 1565
86 10104996 TAMIL NADU AIR TRAVELS PVT LTD 07/02/2006 1285
88 10108568 MEDOPHARM 04/03/2006 8328
90 10104430 STRINGINFO KNOWLEDGE SERVICES PVT LTD 04/03/2006 8328
91 10102123 THOMAS COOK [I] PVT LTD 04/03/2006 8328
93 10104474 BLUESHIFT INDIA PVT LTD 04/03/2006 4164
96 10103949 KVP SOFTWARE (P) LTD., 04/03/2006 4164
97 10103753 SUN MICROSYSTEMS INDIA PVT. LTD., 04/03/2006 4164
98 10103130 CRAZY PLANET 04/03/2006 862
99 10103712 GATI LIMITED 07/03/2006 35227
273
100 10104399 INTUITIVE OBJECTS SOFTWARE PVT., LTD., 07/03/2006 34847
102 10108568 MEDOPHARM 07/03/2006 31924
107 10103291 TATA ACOMMUNI8CATIONS INTERNET SERVICES 07/03/2006 27387
LTD.,
108 10103291 TATA INTERNET SERVICES LTD., 07/03/2006 27387
110 10104905 MEGASOFT LTD 07/03/2006 24423
111 10104181 SMALL INDUSTRIES SERVICE INSTITUTE, 07/03/2006 23859
112 10103983 COGNIZANT TECHNOLOGY SOLUTIONS INDIA 07/03/2006 22942
PVT LTD
114 10108153 MEDICAL RESEARCH FOUNDATION., 07/03/2006 22942
116 10101234 SIP TECHNOLOGIES AND EXPORTS LTD 07/03/2006 22686
117 10108142 BHARATI CELLULAR LIMITED 07/03/2006 20819
118 10104928 M.MAHALINGAM 07/03/2006 20226
119 10104427 SAI COMMUNICATIONS 07/03/2006 19978
LTD.,
121 10102410 INDIAN SHAVING PRODUCTS LTD 07/03/2006 19964
122 10104570 S. MOHAMAED RAMEES 07/03/2006 19964
123 10104240 MR. M.A. MOHAMMED AFSAR 07/03/2006 18603
124 10104178 MR. A. SEKAR, 07/03/2006 17328
126 10103885 BETHAL NETWORLD, 07/03/2006 16083
127 10102032 BANYAN NETWORK PVT LTD 07/03/2006 15880
129 10103984 ITC LIMITED 07/03/2006 15880
130 10104595 S.SAMUEL RAJ 07/03/2006 14519
131 10104123 UNIWORLD LOGISTICS (P) LTD., 07/03/2006 14398
132 10108397 MARUTI UDYOG LIMITED 07/03/2006 13158
134 10101429 NET ACCESS INDIA PVT LTD 07/03/2006 11797
135 10402860 HCL PERIPHERALS 07/03/2006 9736
136 10402860 HCL PERIPHERALS 07/03/2006 9736
137 10103157 AMBAL TECHNOLOGIES (P) LTD 07/03/2006 7726
274

138 10103193 OLAM EXPORT 9INDIA) LTD 07/03/2006 7009
139 10104626 K.SATISH 07/03/2006 6173
140 10104559 DECCAN AVIATION (P) LTD 07/03/2006 6016
142 10102264 AIR INDIA LTD 07/03/2006 4117
144 10104364 GLOBAL CONNECT, 07/03/2006 3785
145 10104299 PRANTTA SINHA, 07/03/2006 2967
146 10103265 FENNER [INDIA] LTD 07/03/2006 2246
147 10104333 NEXT DIMENSIONS, 07/03/2006 1715
149 10108259 RANE BRAKE LININGS LIMITED 10/03/2006 34703
150 10103879 SIP TECHNOLOGIES & EXPORTS LIMITED 10/03/2006 31740
151 10104827 ERNET 10/03/2006 25813
152 10104828 ERNET 10/03/2006 25813
156 10104335 P. RAJASEKHAR 10/03/2006 22849
157 10108044 HCL TECHNOLOGIES LIMITED 10/03/2006 19886
159 10104722 VECTONE (I) LTD 10/03/2006 18405
161 10108771 INTERNATIONAL CLEARING & SHIPPING AGENCY 10/03/2006 13451
162 10108158 VSNL 10/03/2006 5939
163 10102933 ATHROS INDIA LLC. 10/03/2006 4743
168 10102839 FINANCIAL SOFTWARE & SYSTEM PVT LTD 21/03/2006 9676
169 10101205 SOFTWARE SOLUTIONS INTEGRETED LTD 21/03/2006 9499
170 10103678 HCL INFOSYSTEMS LTD., 21/03/2006 9440
174 10108258 RANE TRW STEERING SYSTEMS LIMITED 21/03/2006 9321
175 10104762 DR.AGARWALS EYE HOSPITAL LTD 21/03/2006 7713
177 10103112 HCL INFOSYSTEMS LTD 21/03/2006 5898
275
179 10108774 GRT GRAND 21/03/2006 5637
180 10103998 CHENNAI CONTAINER TERMINAL PVT. LTD., 22/03/2006 15054
182 10104323 SUNLAY FASHIONS (FAR EAST) LTD. 22/03/2006 10436
183 10402097 SOMAYAJULU & CO 01/06/2000 7379
184 10402064 STERLING HOLIDAY RESORTS INDIA LTD 01/06/2000 5365
185 10401952 SOMAYAJULU & CO 01/06/2000 3144
186 10402273 SOMAYAJULU & CO 01/06/2000 3090
187 10402363 PATTERSON & CO 01/06/2000 2396
188 10600332 USHODAYA PUBLICATION 01/06/2000 1357
189 10401385 PATTERSON & CO 02/06/2000 23385
190 10200663 BPL WIRELESS TELECOMMUNICATION SERVICES 01/03/2001 4843
LTD
LTD
192 10103948 MADURA COATS LTD., 01/11/2003 1604
193 10103138 BRAKES INDIA LTD 28/11/2003 9237
194 10201688 ORCHIN CHEMICAL & PHARMACEUTICALS LTD 01/12/2003 33996
195 10201791 TATA INFOTECH LTD., 07/01/2004 70587
LTD.,
197 10102762 CITICROP OVERSEAS SOFTWARE LTD 11/03/2004 86279
198 10102607 AMRUTANJAN INFOTECH 11/03/2004 76298
200 10103675 E CARE.C0M 11/03/2004 56964
201 10103665 Z AXIS INNOVATIONS PVT. LTD., 11/03/2004 31667
202 10102825 CMS (INDIA) OPERATIONS & MAINTENANCE CO. 11/03/2004 20714
PVT. LTD.
203 10101845 SITA 11/03/2004 15373
204 10104134 S. RAMESH 11/03/2004 14045
205 10104112 DELTAA SOLUTIONS 11/03/2004 13270
206 10104092 RAJESH MALIK 11/03/2004 12766
207 10102835 BUSH BOAKE ALLEN INDIA LTD 11/03/2004 11162
208 10103751 WILLOW SOLUTIONS PVT. LTD., 11/03/2004 9472
209 10102836 BUSH BOAKE ALLEN [I] LTD 11/03/2004 9064
210 10103740 MR. ANAND . M.V 11/03/2004 7529
211 10104034 B. ANANDHY 11/03/2004 3685
212 10101683 MANMAR TECHNOLOGIES LTD 11/03/2004 3251
213 10300629 FUNSKOOL (INDIA) LTD 11/03/2004 1516
276

215 10402931 MEDOPHARM 11/03/2004 394
216 10103947 ANBU SELVI, 11/03/2004 181
217 10104272 PENTAMEDIA GRAPHICS LIMITED 07/04/2004 32697
218 10104346 BRAKES INDIA LTD., 01/05/2004 20079
219 10104026 DATA ACCESS (I) LTD., 05/06/2004 7346
220 10103240 HUTCHISON ESSAR SOUTH LTD., 08/06/2004 12965
221 10000125 WIPRO NET LTD 12/08/2004 255853
222 10000124 WIPRO NET LTD 12/08/2004 111442
223 10000110 BPL NET DOT COM P LTD 12/08/2004 19546
224 10104431 HARI PRIYA P 01/09/2004 1686
226 10102838 CHENNEI CONTAINER TERMINAL LTD. 01/03/2005 40500
227 10104496 HDFC ASSETS MANAGEMENT CO LTD 01/03/2005 34902
228 10104915 VINAYAKA IT PARKX PVT LTD 01/03/2005 32786
230 10104381 HEWLETT-PACKARD INDIA SALES PVT LTD, 01/03/2005 24421
231 10102750 RELIANCE INDUSTRIES LTD 01/03/2005 22017
232 10104484 HCLTECHNOLIGIES LTD 01/03/2005 19778
238 10102511 HINDUSTAN INKS AND RESINS LTD., 01/03/2005 9749
PVT. LTD.
240 10402922 SWASTIK FOREX 01/03/2005 5287
242 10109021 BORGIA SOOSAI 15/04/2005 19081
243 10108372 M/S.HCL TECHNOLOGIES LIMITED 02/05/2005 32420
244 10108453 APOLLO HOSPITAL ENTERPRISES 02/05/2005 13623
245 10109055 S.I.T.A 17/05/2005 10358
246 10104028 SWIFTMAIL COMMUNICATIONS LTD., 01/06/2005 13709
247 10108680 NATIONAL INSURANCE COMPANY LTD 02/06/2005 12332
248 10202330 DATA ACCESS (INDIA) LTD., 03/06/2005 20440
249 10109059 TATA CONSULTANCY SERVICES LTD IDM GROUP 01/07/2005 25211
251 10108358 CHEIF ENGINEER SOUTH ZONE 11/07/2005 12726
252 10108825 MRF LIMITED 11/07/2005 8121
253 10102449 DATA ACCESS INDIA LTD 01/09/2005 9321
254 10103426 VERTEX SYSTEMS LTD 01/09/2005 4420
277
255 10104117 NUMERIC POWER SYSTEMS LTD., 01/09/2005 3792
256 10102462 N-LOGUE COMMUNICATIONS PVT LTD., 01/09/2005 2450
257 10108155 DHL DANZAS LEMUIR P LTD 02/09/2005 14371
258 10108160 GE COUNTRY WIDE CONSUMER FINANCIAL 02/09/2005 11488
SERVICE
260 10104880 TUTORS WORLDWIDE [I] PVT LTD 02/09/2005 5705
261 10108257 RANE ENGINE VALUES LTD 02/09/2005 970
262 10108170 SCANWELL LOGISTICS INDIA PVT LTD 05/10/2005 6152
263 17000025 LAPIZ DIGITAL SERVICE 21/10/2005 80301
264 10103723 M/S. ELLAAR INFOTEK SOLUTIONS (P) LTD., 24/10/2005 3089
266 17000016 THANGAVELU GROUP OF COLLEGES 16/11/2005 9699
268 10108274 VSNL 06/02/2006 5013
269 10108272 THE STOCK EXCHANGE MUMBAI 07/02/2006 528
270 10109073 OASIS INTERNATIONAL 10/02/2006 1258
271 10101697 VSNL 03/03/2006 8328
272 10104893 PROPART SOLUTIONS INDIA PVT LTD 04/03/2006 8328
273 10104205 SWIFT MAIL COMMUNICATIONS LTD., 04/03/2006 3030
276 10202214 M/S UNITED INDIA INSURANCE CO. LTD., 07/03/2006 52905
280 10109041 SECOVA ESERVICES LIMITED 07/03/2006 24423
285 10109069 SPEED BIRDS PVT LTD 07/03/2006 19964
286 10103782 HINDUSTAN THOMPSON ASSOCIATES LIMITED 07/03/2006 8721
287 10104765 LIFESTYLE INTERNATIONAL P LTD 07/03/2006 4183
288 10103252 I-FLEX SOLUTION LTD 07/03/2006 3865
289 10402929 C. MOHANASUNDARAM 07/03/2006 3191
291 10102456 GREAVES LTD 07/03/2006 2449
293 10109075 VIRTUSA INDIA PVT LTD 10/03/2006 33221
278

295 10104774 TVS FINANCE AND SERVICES LTD 10/03/2006 25248
296 10104385 GTL LIMITED, 10/03/2006 24515
297 10102618 VOLTAS LTD., 10/03/2006 19886
300 10101697 VSNL 10/03/2006 9887
301 10108159 VSNL 10/03/2006 7368
302 10108081 VSNL 10/03/2006 5435
303 10108064 VSNL 10/03/2006 2964
304 18000001 NATARAJAN . R 11/03/2006 24501
305 17000053 VECTONE ENTERTAINMENT INDIA PVT LTD 15/03/2006 13599
PVT. LTD.
309 10104031 ZYLOG SYSTEMS LIMITED 22/03/2006 18276
TOTAL 5443838
G/L Account 5022013 BSC paid for post paid service but not colleced
G/L Account 5022009 BAD DEBT (DEBTS FOR SERVICE PROVIDED ) WRITTEN OFF
G/L Account 5022010 Service Tax paid for post paid service but not co
G/L Account 5022016 GST Paid but not collected hence written off
G/L Account 5022008 BAD DEBT(OTHER THAN SERVICES) WRITTEN OFF
AREA Account Year Document No Doc. Date Typ LC amnt BusA Text
CDRTB 5022009 2017 2200000002 01/05/2017 R2 174537.22 3601 CDR APR-17 TB
CDRTB 5022009 2017 2200000023 31/05/2017 R2 53868.38 3601 CDR MAY-17 TB
CDRTB 5022009 2017 2200000039 30/06/2017 R2 617800.84 3601 CDR JUN-17 TB
CDRTB 5022009 2017 2200000048 31/07/2017 R2 756238.24 3601 CDR TB JUL-17
CDRTB 5022009 2017 2200000055 31/08/2017 R2 3101318.49 3601 CDR AUG-17 Upload
CDRTB 5022009 2017 2200000062 30/09/2017 R2 2564108.99 3601 CDR SEP-17 TB
CDRTB 5022009 2017 2200000081 31/10/2017 R2 3786466.64 3601 CDR OCT-17 TB
CDRTB 5022009 2017 2200000087 30/11/2017 R2 2243087.67 3601 CDR NOV-2017 TB
CDRTB 5022009 2017 2200000130 31/12/2017 R2 807312.49 3601 CDR DEC-17 TB
CDRTB 5022009 2017 2200000128 01/01/2018 R2 807312.49 3601 CDR DEC-17 TB
CDRTB 5022009 2017 2200000129 01/01/2018 R2 -807312.49 3601 CDR DEC-17 TB
CDRTB 5022009 2017 2200000169 01/02/2018 R2 2854115.21 3601 CDR JAN-18 TB
CDRTB 5022009 2017 2200000201 28/02/2018 R2 4895858.75 3601 CDR FEB-18 TB
CDRTB 5022009 2017 2200000264 31/03/2018 R2 8139483.61 3601 CDR MAR-18 TB
CDRTB 5022009 2017 2200000268 31/03/2018 R2 8139483.61 3601 CDR MAR-18 TB
CDRTB 5022009 2017 2200000269 31/03/2018 R2 -8139483.61 3601 CDR MAR-18 TB
5022009 Total 29994196.53
CDRTB 5022010 2017 2200000002 01/05/2017 R2 9306.38 3601 CDR APR-17 TB
279
CDRTB 5022010 2017 2200000023 31/05/2017 R2 5706.94 3601 CDR MAY-17 TB
CDRTB 5022010 2017 2200000039 30/06/2017 R2 62619.04 3601 CDR JUN-17 TB
CDRTB 5022010 2017 2200000048 31/07/2017 R2 70981.89 3601 CDR TB JUL-17
CDRTB 5022010 2017 2200000062 30/09/2017 R2 273803.19 3601 CDR SEP-17 TB
CDRTB 5022010 2017 2200000081 31/10/2017 R2 398032.76 3601 CDR OCT-17 TB
CDRTB 5022010 2017 2200000087 30/11/2017 R2 238224.47 3601 CDR NOV-2017 TB
CDRTB 5022010 2017 2200000130 31/12/2017 R2 54141.09 3601 CDR DEC-17 TB
CDRTB 5022010 2017 2200000128 01/01/2018 R2 54141.09 3601 CDR DEC-17 TB
CDRTB 5022010 2017 2200000129 01/01/2018 R2 -54141.09 3601 CDR DEC-17 TB
CDRTB 5022010 2017 2200000169 01/02/2018 R2 311337.45 3601 CDR JAN-18 TB
CDRTB 5022010 2017 2200000201 28/02/2018 R2 539546.09 3601 CDR FEB-18 TB
CDRTB 5022010 2017 2200000264 31/03/2018 R2 396659.95 3601 CDR MAR-18 TB
CDRTB 5022010 2017 2200000268 31/03/2018 R2 396659.95 3601 CDR MAR-18 TB
CDRTB 5022010 2017 2200000269 31/03/2018 R2 -396659.95 3601 CDR MAR-18 TB
5022010 Total 2705949.65
CDRTB 5022013 2017 2200000002 01/05/2017 R2 22.56 3601 CDR APR-17 TB
CDRTB 5022013 2017 2200000023 31/05/2017 R2 17.28 3601 CDR MAY-17 TB
CDRTB 5022013 2017 2200000039 30/06/2017 R2 91.16 3601 CDR JUN-17 TB
CDRTB 5022013 2017 2200000048 31/07/2017 R2 203.82 3601 CDR TB JUL-17
CDRTB 5022013 2017 2200000062 30/09/2017 R2 250.1 3601 CDR SEP-17 TB
CDRTB 5022013 2017 2200000081 31/10/2017 R2 656.01 3601 CDR OCT-17 TB
CDRTB 5022013 2017 2200000087 30/11/2017 R2 386.16 3601 CDR NOV-2017 TB
CDRTB 5022013 2017 2200000130 31/12/2017 R2 125.82 3601 CDR DEC-17 TB
CDRTB 5022013 2017 2200000128 01/01/2018 R2 125.82 3601 CDR DEC-17 TB
CDRTB 5022013 2017 2200000129 01/01/2018 R2 -125.82 3601 CDR DEC-17 TB
CDRTB 5022013 2017 2200000169 01/02/2018 R2 4164.79 3601 CDR JAN-18 TB
CDRTB 5022013 2017 2200000201 28/02/2018 R2 2672.12 3601 CDR FEB-18 TB
CDRTB 5022013 2017 2200000264 31/03/2018 R2 979.79 3601 CDR MAR-18 TB
CDRTB 5022013 2017 2200000268 31/03/2018 R2 979.79 3601 CDR MAR-18 TB
CDRTB 5022013 2017 2200000269 31/03/2018 R2 -979.79 3601 CDR MAR-18 TB
5022013 Total 9878.96
CDRTB 5022015 2017 2200000264 31/03/2018 R2 549.66 3601 CDR MAR-18 TB
CDRTB 5022015 2017 2200000268 31/03/2018 R2 549.66 3601 CDR MAR-18 TB
CDRTB 5022015 2017 2200000269 31/03/2018 R2 -549.66 3601 CDR MAR-18 TB
CDRTB 5022015 2017 2200000201 28/02/2018 R2 578.3 3601 CDR FEB-18 TB
CDRTB 5022015 2017 2200000169 01/02/2018 R2 294.68 3601 CDR JAN-18 TB
CDRTB 5022015 2017 2200000128 01/01/2018 R2 89.27 3601 CDR DEC-17 TB
CDRTB 5022015 2017 2200000129 01/01/2018 R2 -89.27 3601 CDR DEC-17 TB
CDRTB 5022015 2017 2200000130 31/12/2017 R2 89.27 3601 CDR DEC-17 TB
CDRTB 5022015 2017 2200000087 30/11/2017 R2 112.62 3601 CDR NOV-2017 TB
CDRTB 5022015 2017 2200000081 31/10/2017 R2 180.67 3601 CDR OCT-17 TB
CDRTB 5022015 2017 2200000062 30/09/2017 R2 88.14 3601 CDR SEP-17 TB
280
CDRTB 5022015 2017 2200000048 31/07/2017 R2 74.56 3601 CDR TB JUL-17
CDRTB 5022015 2017 2200000039 30/06/2017 R2 42.02 3601 CDR JUN-17 TB
CDRTB 5022015 2017 2200000023 31/05/2017 R2 12.08 3601 CDR MAY-17 TB
CDRTB 5022015 2017 2200000002 01/05/2017 R2 3.33 3601 CDR APR-17 TB
5022015 Total 2136.84
GSM 5022008 2017 1000104729 31/03/2018 SA 32257.45 3601 MRJS-367 CDMA LF
WRITTEN OFF MAR18
5022008 Total 32257.45
GSM 5022009 2017 2200000009 30/04/2017 R2 130522 3601 MRJS-4 GSM ABF
WRITTEN OFF APR 2017
GSM 5022009 2017 1000074371 31/01/2018 SA 163799 3601 MRJS-236 GSM ABF
WRITTEN OFF JAN 2018
GSM 5022009 2017 1000085496 28/02/2018 SA 114858 3601 MRJS-278 CDMA ABF
WRITTEN OFF FEB 2018
GSM 5022009 2017 1000095649 31/03/2018 SA 8304110.25 3601 MRJS-325 CDMA ABF
WRITTEN OFF MAR18
GSM 5022009 2017 1000104716 31/03/2018 AB -8304110.25 3601 MRJS-325 CDMA ABF
WRITTEN OFF MAR18
GSM 5022009 2017 1000104729 31/03/2018 SA 8271852.8 3601 MRJS-367 CDMA ABF
WRITTEN OFF MAR18
GSM 5022009 2017 2200000229 31/03/2018 R2 2916559.08 3601 MRJS-324 GSM ABF
WRITTEN OFF MAR18
5022009 Total 11597590.88
GSM 5022010 2017 2200000161 31/01/2018 R2 16804 3601 MRJS-250 Addl JS for
GSM woff new bills
GSM 5022010 2017 1000095665 31/03/2018 SA 89079.86 3601 MRJS-335 Addl JS for
CDMA woff new bill
GSM 5022010 2017 2200000232 31/03/2018 R2 247776.52 3601 MRJS-328 Addl JS for
GSM woff new bills
5022010 Total 353660.38
GSM woff new bills
CDMA woff new bill
GSM woff new bills
5022013 Total 958.68
CDMA woff new bill
GSM woff new bills
GSM woff new bills
5022015 Total 957.09
GSM 5022016 2017 1000100330 31/03/2018 SA 1360.84 3601 MRJS-330 GSM GST
WRITTEN OFF MAR18
GSM 5022016 2017 1000100331 31/03/2018 SA 544.06 3601 MRJS-332 CDMA GST
WRITTEN OFF MAR18
GSM 5022016 2017 1000105653 31/03/2018 SA 167.19 3601 MRJS-370 GSM GST
WRITTEN OFF MAR18
5022016 Total 2072.09
281
NONMIG 5022009 2017 2200000282 31/03/2018 R2 2481231.42 3601 N O N - M I G R A T I O N
WRITE OFF 2017-18
5022009 Total 2481231.42
NONMIG 5022010 2017 2200000282 31/03/2018 R2 24689.6 3601 NON-MIGRATION
WRITE OFF 2017-18
5022010 Total 24689.6
SAP/LCCDRTB 5022009 2017 2200000221 01/03/2018 R2 7260.79 3602 CDR-TB-FEB-18
SAP/LCCDRTB 5022009 2017 2200000241 31/03/2018 R2 46609.64 3602 CDR-TB-MAR-18
SAP/LCCDRTB 5022009 2017 2200000243 31/03/2018 R2 -46609.64 3602 CDR-TB-MAR-18
5022009 Total 53870.43
5022010 Total 6063.96
5022013 Total 216.57
5022015 Total 216.57
5022016 Total 593.4
Grand Total 47266540.5
282
NON MIGRATED WRITE OFF
Month Apr-17 May-17 Jun-17 Jul-17 Aug-17 Sep-17 Oct-17 Nov-17 Dec-17 Jan-18 Feb-18 Mar-18 TOTAL
Land Line 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 926087.00 0.00 1444988.79 2371075.79
Broadband 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
FTTH 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
IN 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
LF WOFF 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 1952.00 0.00 0.00 1952.00
Total Services Written Off ( 2-6 Total) 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 928039.00 0.00 1444988.79 2373027.79
Stax POT 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 24409.18 0.00 280.42 24689.60
Service Tax Payable - Telephones / 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 171254.63 0.00 203117.79 374372.42
Stax PrePOT / GL 1320202
CGST 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
SGST 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Total Service Tax Written Off 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 195663.81 0.00 203398.21 399062.02
Total Write off Services+Tax SLR 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 1123702.81 0.00 1648387.00 2772089.81
Schedule of Write off For Year 2017-18

283
DETAILS OF WOFF SANCTIONS FROM ZONES 2017-18
Zone Case Written off Woff Amt Including APR to DEC DEC to MAR Total Sanctions
Stax
CE 11105 8833564.06 2893152.00 5942044.00 8835196.00
NE 7537 2209922.41 1440068.00 769854.41 2209922.41
NP 3600 3796133.37 606524.00 3189609.00 3796133.00

NW 7623 2039095.65 2039095.00 2039095.00
SE 7197 4280324.95 4280234.00 0.00 4280234.00
SW 9405 6016721.53 3079704.00 2937017.00 6016721.00
WE 11724 5949030.72 4186721.00 1761826.24 5948547.24
Total 58191 33124792.69 18525498 14600350.65 33125848.65
Schedule of Write off For Year 2017- 18
CFA
Land Line 109991.00 19960.00 225148.00 241967.00 1045840 887002 1673218 867074 496457.00 1484066 2045605 5645494.00 14741822.00
Broadband 62768.00 30555.00 363767.00 496065.00 1970297 1636266 1994106 1290270.00 294421.00 1216012 2590564 2390079.00 14335170.00
FTTH 0.00 0.00 11865.00 1234.00 3.00 1376.00 0.00 23455.00 0.00 64613 117984 1496.00 222026.00
IN 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
LF WOFF 1778.00 3353.00 17021.00 16972 85178 39465 119142 62289.00 16434.00 89514 141732 102414.00 695292.00
Total Services 174537.00 53868.00 617801.00 756238.00 3101318.00 2564109.00 3786466.00 2243088.00 807312.00 2854205.00 4895885.00 8139483.00 29994310.00
Written Off (2-6
Total) As Per
CDRSLR
Stax POT 9332 5736.00 62752.00 71260.00 346011.00 274141 398870.00 238723.00 54356.00 315798 542542 398190.00 2717711.00
Service Tax 9542 144.00 5374.00 10852.00 11852.00 21352 15330.00 9228.00 23455.00 22058 28830 254755.00 412772.00
Payable -
Telephones /Stax
PrePOT / GL
1320202
Total Service 18874.00 5880.00 68126.00 82112.00 357863.00 295493.00 414200.00 247951.00 77811.00 337856.00 571372.00 652945.00 3130483.00
Tax Written Off
284
Total Write off 193411.00 59748.00 685927.00 838350.00 3459181.00 2859602.00 4200666.00 2491039.00 885123.00 3192061.00 5467257.00 8792428.00 33124793.00
Services+Tax
SLR
CDRTB HOA 174537.22 53868.38 617800.84 756238.24 3101318.49 2564108.99 3786466.64 2243087.67 807312.49 2854115.21 4895858.75 8139483.61 29994196.53
1742006
“Ser Tax paid 9306.00 5706.94 62619.04 70981.89 345590.40 273803.19 398032.76 238224.47 54141.09 311337.45 539546.09 396659.95 2705949.27
but not coll
HOA 1742007 /
5022010”
“SBC not 22.56 17.28 91.16 203.82 309.35 250.10 656.01 386.16 125.82 4164.79 2672.12 979.79 9878.96
collected hence
w
- HOA 1742008
/ 5022013”
“ KKC not 3.33 12.08 42.02 74.56 111.51 88.14 180.67 112.62 89.27 294.68 578.30 549.66 2136.84
collected hence
w
HOA 1742009 /
5022015”
HOA 1192301 9,542.29 162.17 5373.56 10851.90 14651.10 21354.05 15330.09 9228.04 24151.74 22072.66 28867.79 262414.02 423999.41
+ 1192306 +
1192309
Total Write off 193411.40 59766.85 685926.62 838350.41 3461980.85 2859604.47 4200666.17 2491038.96 885820.41 3191984.79 5467523.05 8800087.03 33136161.01
Services+Tax TB
GSM/CDMA
Month Apr-17 May-17 Jun-17 Jul-17 Aug-17 Sep-17 Oct-17 Nov-17 Dec-17 Jan-18 Feb-18 Mar-18 Total
GSM 5022009 130522.00 163799.00 2916559.08 3210880.08
CDMA 5022009 114858.00 8271852.80 8386710.80
Late fees 32257.45 32257.45
5022008
Total Services 130522.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 163799.00 114858.00 11220669.33 11629848.33
Written Off (
2-6 Total)
Stax POT 0 0 0 0 0 0 0 0 0 16907.77 0 338668.15 355575.92
Service Tax 13109.99 0 0 0 0 0 0 0 0 2664.26 12896.26 855053.63 883724.14
Payable Cellular
Mobile /GL
1320213 Stax
PrePOT
CGST 0 0 0 0 0 0 0.00 0.00 0.00 0 0 1036.04 1036.04
SGSST 0 0 0 0 0 0 0.00 0.00 0.00 0 0 1036.04 1036.04
Total Service Tax 13109.99 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 19572.03 12896.26 1195793.86 1241372.14
Written Off
Total 143631.99 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 183371.03 127754.26 12416463.19 12871220.47
285
Leased Circuits
CCT 0.00 0.00 7260.69 46609.54 53870.23
CDMA 0.00 0.00 0.00
Total Services 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 7260.69 46609.54 53870.23
Written Off (2-6
Total)
Stax POT 0 0 0 0 0 0 0 0 0 0 0 6497.1 6497.10
Service Tax 0 0 0 0 0 0 0 0 0 0 731.18 0 731.18

Payable Cellular
Mobile /GL
1320213 Stax
PrePOT
CGST 0 0 0 0 0 0 0 0 0 0 0 296.61 296.61
SGSST 0 0 0 0 0 0 0 0 0 0 0 296.61 296.61
Total Service 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 731.18 6497.10 7228.28
Tax Written Off
“Annexure III” to the Independent Auditor’s Report of even date to the members of Bharat Sanchar
Nigam Ltd on Standalone Ind AS financial statements for the year ended March 31, 2018
Independent Auditor’s Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of
Section 143 of the Companies Act, 2013 (“the Act”)
1) In conjunction with our audit of Ind AS financial statements of Bharat Sanchar Nigam Ltd (the
Company), comprising of 48 circles as of and for the year ended March 31, 2018, we have
audited the internal financial controls over financial reporting (IFCoFR) of 1 circle and IFCoFR of
remaining 47 circles have been audited by the respective circle auditors appointed under section
139 of the Act.
Management’s Responsibility for Internal Financial Controls
2) The Company’s Board of Directors is responsible for establishing and maintaining internal
financial controls based on the internal control over financial reporting criteria established by the
Company considering the essential components of internal control stated in the Guidance Note
on Audit of Internal Financial Controls over Financial Reporting (“Guidance Note”) issued by
the Institute of Chartered Accountants of India (‘ICAI’). These responsibilities include the design,
implementation and maintenance of adequate internal financial controls that were operating
effectively for ensuring the orderly and efficient conduct of its business, including adherence to
Company’s policies, the safeguarding of its assets, the prevention and detection of frauds and
errors, the accuracy and completeness of the accounting records, and the timely preparation of
reliable financial information, as required under the Act.
Auditors’ Responsibility
3) Our responsibility is to express an opinion on the Company’s internal financial controls over
financial reporting (IFCoFR) based on our audit. We conducted our audit in accordance with the
Guidance Note on Audit of Internal Financial Controls Over Financial Reporting (the “Guidance
Note”) and the Standards on Auditing, issued by ICAI and deemed to be prescribed under section
143(10) of the Companies Act, 2013, to the extent applicable to an audit of internal financial
controls, both applicable to an audit of Internal Financial Controls and, both issued by the Institute
of Chartered Accountants of India. Those Standards and the Guidance Note require that we
comply with ethical requirements and plan and perform the audit to obtain reasonable assurance
about whether adequate IFCoFR were established and maintained and if such controls operated
effectively in all material respects.
4) Our audit involves performing procedures to obtain audit evidence about the adequacy of the
IFCoFR and their operating effectiveness. Our audit of IFCoFR included obtaining an understanding
of IFCoFR, assessing the risk that a material weakness exists, and testing and evaluating the design
and operating effectiveness of internal control based on the assessed risk. The procedures selected
depend on the auditor’s judgment, including the assessment of the risks of material misstatement
of the Ind AS financial statements, whether due to fraud or error.
5) We believe that the audit evidence we have obtained and the audit evidence obtained by the other
auditors in terms of their reports referred in the ‘Other Matters’ paragraph below,are sufficient
and appropriate to provide a basis for our qualified audit opinion on the Company’s IFCoFR.
286
Meaning of Internal Financial Controls over Financial Reporting
6) A Company’s IFCoFR is a process designed to provide reasonable assurance regarding the

reliability of financial reporting and the preparation of Standalone Ind AS financial statements for
external purposes in accordance with Ind AS. A Company’s IFCoFR includes those policies and
procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and
fairly reflect the transactions and dispositions of the assets of the Company; (2) provide reasonable
assurance that transactions are recorded as necessary to permit preparation of Standalone Ind
AS financial statements in accordance with Ind AS, and that receipts and expenditures of the
Company are being made only in accordance with authorizations of management and Board of
Directors of the Company; and (3) provide reasonable assurance regarding prevention or timely
detection of unauthorized acquisition, use, or disposition of the Company’s assets that could have
a material effect on the Standalone Ind AS financial statements.
Inherent Limitations of Internal Financial Controls over Financial Reporting
7) Because of the inherent limitations of internal financial controls over financial reporting, including
the possibility of collusion or improper management override of controls, material misstatements
due to error or fraud may occur and not be detected. Also, projections of any evaluation of the
IFCoFR to future periods are subject to the risk that the IFCoFR may become inadequate because
of changes in conditions, or that the degree of compliance with the policies or procedures may
deteriorate.
Qualified Opinion
8) According to the information and explanations provided to us and based on the consideration
of the reports of circle auditors, following material weaknesses have been identified during the
course of audit as at March 31, 2018:
Revenue
(i) As reported by auditors of 8 circles, in respect of income from Subscriber Identity Module (SIM’s),
prepaid recharge coupon of mobile and prepaid calling cards, the process around recognition
of revenue there from needs to be strengthened as presently the circles have treated all receipts
received during the year as income of current financial year. The treatment is not in line with
the Ind AS issued by ICAI which could potentially result in materially misstating the revenue by
Company.
(ii) As reported by auditors of 11 circles, there is inadequate control over booking of revenue
and billing. System of monthly reconciliation of revenue as per monthly sub ledger generated
through Call Detailed Records (‘CDR’) system with books of accounts is not in place which could
potentially result in the Company materially misstating its revenue and trade receivables.
(iii) As reported by auditors of 3 circles, invoices are generated in excess, individually or in the
aggregate, of customer credit limits, which may give rise to situations where the ultimate collection
is doubtful and revenue recognized not being in line with the revenue recognition criteria. This
internal control issue could potentially result in the Company materially misstating the revenue
and trade receivables.
(iv) As reported by auditors of 4 circles, Company did not have an appropriate internal control for
287
recognition of revenue of passive infrastructure, NLD, ILD and cash receipts which are not in
accordance with Ind AS. All these could potentially result in the Company materially misstating
its revenue and trade receivables.
(v) As reported by auditors of 4 circles, the income in respect of basic telephony services and in
respect of post-paid accounts at Cellular Mobile Telephone Services (‘CMTS’) is accounted for on
the basis of Amount Billed For (‘ABF’) received from the centralized system at the zonal billing
centre based at Chandigarh, and the various balances of debtors including security deposits from
customers are matched with the balances reported by the Chandigarh centre. We have not been
provided with any system or technical audit report verifying the authenticity of the data generated
by the system which could potentially result in the Company materially misstating its revenue and
trade receivables.
(vi) As reported by auditors of 3 circles, there is no defined process to recognize revenue arising out
of construction contracts based on stage of completion. All these could potentially result in the
Company materially misstating its revenue and trade receivables.
(vii) As reported by auditors of 3 circles, controls with respect to recognition and adjustment of
advance income need to be strengthened. This could potentially result in materially misstating its
revenue and trade receivables.
Employee Benefits
(viii) As reported by auditors of 11 circles, the internal control system in the circle in respect of control
over recovery/ adjustment of advances given to the employees, namely medical advances,
travelling and transfer advances appears to be inadequate. This could potentially result in the
Company materially misstating the employee benefits expenses and advances.
(ix) As reported by 6 circle auditors, the circles needs to strengthen its internal control system over
payroll processing with respect to calculation of compensation and tax deducted at source; leave
data which may not be accurately and completely considered for payroll processing; recovery
form employee advances may not be recorded in the correct period; where the employee is being
transferred from another circle, the general ledger and actual data may differ and payroll might
be reflected in the erstwhile circle salary schedule. In the absence of such controls, the Company
may potentially materially misstate its employee benefit expenses in its financial statements
Cash and Bank Transactions
(x) As reported by auditors of 3 circles, the circle does not have an appropriate internal control
system over cash accepted at cash counters and customer service centers from the customer
with regard to non/ short recordings or delay in recording of receipt by the cashier, which could
potentially result in misappropriation of assets of the Company.
(xi) As reported by auditors of 9 circles, the monitoring controls in respect of bank reconciliation
statements needs to be strengthened which could potentially result in the Company materially
misstating its cash and bank balances.
(xii) As reported by auditors of 5 circles, internal control around bank payments through bank file
generation is prone to error/ fraud due to human intervention. This could potentially result in
financial loss to the Company.
288
Fixed Assets
(xiii) As reported by auditors of 20 circles, there is no regular programme for physical verification of
fixed assets which could potentially result in the Company materially misstating its fixed assets in
the financial statements of the Company.
(xiv) As reported by auditors of 24 circles, the internal control system in respect of capitalization of
capital work-in-progress which, inter-alia, include balances pending for long-periods of time with
regard to status, value and non-availability of commissioning certificates could potentially result
in the Company work-in-progress, fixed assets and depreciation in its books.
(xv) As reported by auditors of 9 circles, an effective internal financial control may be evolved to
ensure that there should not be any mismatch between fixed asset register and physical assets
with respect to the make of the asset, serial number and location which could potentially result
in the Company materially misstating the fixed assets.
(xvi) As reported by auditors of 11 circles, the circles do not have a process of identification of obsolete/
damaged assets together with the timely detection of pilferage of moveable assets, if any, and this
could be potentially result in the Company materially misstating the fixed assets.
(xvii) As reported by auditor of 2 circles, in the absence of a policy for identification of ‘Insurance Spares’
(spares specific for fixes assets), such spares have been kept in the stores without segregation from
general store items. Since adequate internal financial control is not in existence at the circle, a
possibility of pilferage of stores and spares items, especially small movable items, cannot be
overruled and this could potentially result in the Company materially misstating its fixed assets
and inventory for stores and spares in the financial statements.
(xviii) As reported by auditors of 10 circles, there is no process to match the manual land records/ deeds
with the land capitalized in the financial records which could potentially result in the Company
materially misstating the fixed assets in the financial statements of the Company.
(xix) As reported by auditors of 12 circles, the company does not have appropriate internal controls
for providing provisions in respect of decommissioned assets on fair value basis which could
potentially result in the Company materially misstating the fixed assets in the financial statements
of Company.
(xx) As reported by auditors of 8 circles, the internal control system for obtaining documents for
immovable assets of the Company needs to be strengthened. This could potentially result in the
company materially misstating the fixed assets in the financial statements.
(xxi) As reported by auditor of 6 circles, the internal control system for impairment of assets needs
to be strengthened. This could potentially result in material misstatement of fixed assets in the
(xxii) As reported by auditors of 4 circles, the internal control system for issuance for purchase orders
and purchases of stores and capital items needs to be further strengthened. This could potentially
result in the Company materially misstating the fixes assets and inventory.
(xxiii) As reported by auditors of 7 circles, there are inadequate controls with respect to capitalisation of
overheads, borrowing costs and closure of CWIP. This could potentially result in misstating the
capital commitments, assets and expenses in the financials of the Company.
289
(xxiv) As reported by auditors of 4 circles, internal control system for ensuring accuracy in providing
depreciation on fixed assets, method of depreciation, useful life, residual value, were not
operating effectively and this may result in depreciation being computed incorrectly, not
computed or computed on ineligible assets and may materially misstate value of assets and
depreciation thereon.
(xxv) Auditors of 3 circles have reported about inadequacy of insurance coverage available for fixed
assets and inventories which may materially impact the financials in case of mis-happening.
Inventory
(xxvi) As reported by auditors of 13 circles, the internal control system need to be strengthened in
respect of acquisition and maintenance of inventories and conducting physical verification
thereof. This could potentially result in the Company materially misstating the inventory value
in financial statements.
(xxvii) As reported by auditors of 10 circles, the absence of perpetual inventory count system and
policy for categorisation of inventory at the circles, process of timely detection of slow moving,
non-moving and obsolete stock is not being appropriately done. This could potentially result in
the Company materially misstating the inventory.
(xxviii) As reported by auditors of 7 circles, the process of accounting and issue of inventory relating
to National Optical Fibre Network (NOFN) project needs to be strengthened. This could
potentially result in the Company materially misstating the inventory in books.
(xxix) As reported by auditors of 10 circles, receipt and issue of materials may not be recorded
promptly and in the appropriate period which could potentially result in material misstatement
of inventory in financial statements of the Company.
(xxx) As reported by auditors of 3 circles, sale of scrap includes items of asset also but such assets
are not identified and taken out from the respective assets which could potentially result in
Company materially misstating the inventory and fixed assets.
(xxxi) As reported by auditors of 5 circles, there is no process to physically verify and post necessary
transactions to match the same as per financials which may potentially result in materially
misstating the inventory.
Statutory Dues
(xxxii) As reported by auditors of 19 circles, the circle needs to improve the internal control system
for reconciliation, timely payment and correct deduction of service tax, TDS, GST and other
statutory dues recoverable/ payable. This could potentially result in material misstatement of
statutory dues.
(xxxiii) As reported by auditors of 3 circles, compliances with regard to deposition, adjustment, deduction
and reconciliation of service tax, tax deducted at source and reconciliation of GST turnover,
input tax credit and amount claimed in Trans 1 for service tax and CENVAT credit needs to be
strengthened. This could potentially result in materially misstatement of statutory dues.
290
Enterprise Resource Planning (ERP)
(xxxiv) As reported by auditor of 1 circle, monitoring controls over programme change controls on
transition from legacy system to Systems, Applications, Products (SAP) is not adequate. This
could potentially result in material misstatement of various captions of the financial statements.
(xxxv) Auditor of 1 circles has reported that manual intervention in ERP is possible and there is no
control with respect to detection of such exceptional transactions. This could potentially result
in material misstatement of various captions of the financial statements.
Current Assets and Liabilities
(xxxvi) As reported by auditors of 17 circles, the Company did not have appropriate internal controls
for reconciling and obtaining balance confirmation from sundry debtors, sundry creditors and
other parties. This could potentially result in Company materially misstating the debtors and
creditors in the financial statements.
(xxxvii) As reported by auditors of 19 circles, the Company does not have adequate internal control
over adjusting, timely and proper booking of liabilities. In various cases, the liabilities have
escaped booking even in case of recurring expenditures and various expenses have been
booked without adjusting the existing liability already booked against such expenses which
could potentially result in Company materially misstating the current liabilities.
(xxxviii) As reported by auditors of 7 circles, controls over process of reconciling unidentified vendors
with various clearing accounts needs to be strengthened and control should be established
to record expense only through vendor accounts. This could potentially result in material
misstatement of current liabilities in the financial statements.
(xxxix) As reported by auditors of 8 circles, the circle is required to strengthen internal control system
for maintenance of subsidiary records in relation to the deposit from customers (pre and post
paid connections) as this could potentially materially misstate the current assets and liabilities
of the company.
(xl) As reported by auditors of 5 Circles, process for classification of assets/ liabilities as current or
non-current is weak. This could potentially result in Company materially misstating its assets
and liabilities in the financial statements.
(xli) As reported by auditor of 10 circles, the company needs to strengthen the process of obtaining
balance confirmations/ reconciliations in respect of claims payable to and/ or receivable from
Mahanagar Telephone Nigam Limited and Department of Telecommunication. This could
potentially result in the Company materially misstating its current assets and liabilities.
Financial Reporting/ Closure Process
(xlii) As reported by auditors of 7 circles, the maker checker concept for voucher posting and
authenticating in SAP needs to be strengthened which could potentially result in posting the
entries in wrong heads/ wrong amounts/ duplicates posting/ posting of purchase orders without
manual approval/ non-posting of manual credits/ debit notes etc and this could potentially
materially misstate various captions in the financial statements
291
Reconciliation and Inter circle Remittance
(xliii) As reported by auditors of 7 circles, the Company did not have appropriate internal controls for
reconciliations and confirmation of earnest money deposit, security deposit, sundry creditors and
other deposits which could potentially result in the Company materially misstating current assets
and liabilities.
(xliv) As reported by auditors of 8 circles, there is inappropriate control system for timely reconciliation
of unreconciled inter-circle/ unit remittances. The unreconciled amounts largely pertain to lack
of appropriate supporting documentation and requisite approvals. The unreconciled remittances
could have a potential material impact on various captions of the financial statements of the
circle.
(xlv) As reported by auditors of 12 circles, the Company did not have appropriate internal controls for
reconciliations between subsidiary and general ledger in respect of revenue items, debtors and
deposits which could potentially result in the Company materially misstating the aforementioned
captions in the financial statements.
Miscellaneous
(xlvi) As reported by auditors of 7 circles, the Company has not defined any risk control matrix
identifying the key risk areas of particular SSA. This could result in weak checks and balances
and ineffectiveness in operations as well.
(xlvii) As reported by auditors of 7 circles, there are inadequate controls for arriving at value for provision
or showing contingent liability which could materially misstate the financials of the Company.
(xlviii)Auditors of 4 circles have reported that internal controls for information technology system are
weak with respect to computer hardware, software, sharing of passwords and EDP audits which
may impact the balances and financials of the Company.
(xlix) Auditors of 2 circles have reported that monitoring controls around creation and management of
new business area needs improvement as discrepancies were noted in transfer of balances from
one area to another which may materially misstate the balances and financials of the Company.
9) A ‘material weakness’ is deficiency or a combination of deficiencies, in IFCoFR, such that there

is a reasonable possibility that a material misstatement of company’s annual or interim financial
statements will not be prevented or detected on timely basis.
10) In our opinion and based on the consideration of the reports of the circle auditors and read together
with paragraph 12 below, except for the effects/ possible effects of the material weaknesses
described above on the achievement of the objectives of the control criteria, the Company has,
in all material respects, adequate internal financial controls financial reporting and such IFCoFR
were operating effectively as at 31st March 2018, based on the IFCoFR criteria established by the
Company considering the essential components of internal control stated in the Guidance Note
issued by the ICAI.
11) The circle auditors have considered material weaknesses identified and reported above in
determining nature, timing and extent of audit tests applied in the audit of the Standalone
Ind AS financial statements of respective circles of the Company as at and for the year ended
292
31st March 2018 and these weakness have affected the opinion on the Standalone Ind AS financial
statements of the Company and we have issued qualified opinion on the Standalone Ind AS
Disclaimer
12) As reported by auditor of 1 circle, the system of internal financial controls over financial reporting
with regard to the Company were not made available to them to enable them to determine if
the Company/Circle has established adequate internal financial control over financial reporting
and whether such internal financial controls were operating effectively as at 31st March, 2018.
The respective circle auditors have considered the disclaimer reported above in determining the
nature, timing and extent of audit tests applied in the audit of the Standalone Ind AS financial
statements of respective circles of the Company as at and for the year ended 31 st March 2018
and the disclaimer did not affect their opinion on Standalone Ind AS financial statements of the
circles.
Other Matters
13) We did not audit the Ind AS financial statements of 47 circles whose Ind AS financial statements
reflect total assets (including intra/inter circle remittances) of Rs. 70,91,895Lakhs as at 31st March
2018 and total revenues of Rs. 26,59,351 Lakhs for the year ended on that date. These Ind AS
financial statements have been audited by other auditors whose reports have been furnished to us
by the management and our opinion on the Standalone Ind AS financial statements in so far as it
amounts and disclosures included in respect of these 48 circles is based solely on the reports of
other auditors.
For ANDROS & CO

Firm’s Registration No.: 008976N
Sd/-
(Puneet Gupta)
Partner
Place: New Delhi

Date: 4th October, 2018
293
ANDROS & CO
To,
The Members of,
Bharat Sanchar Nigam Limited,
Corrigendum To The Audit Report Dated 04/10/2018

For The Year Ended 31/03/2018
Due to typographical error in point no 13 of annexure-III to independent Audit Report dated 04/10/2018,
the figure regarding total revenues has been mentioned as Rs 26,59,351 lakhs which should be read as
Rs 24,81,356 lakhs. This Corrigendum has been issued in terms of HM No.8 dated 11/10/2018 issued
by Sr.Audit Officer, RAO. BSNL. Independent Auditor’s report dated 04/10/2018, issued by us, may be
read along with this corrigendum.
For ANDROS & CO

Firm’s Regisgtration No.: 008976N
Sd/-
(Puneet Gupta)
Partner
Membership No.:093714
Place: New Delhi

Date: 26th November, 2018
294
The Management replies to Independent Auditor’s Report on

Standalone Financial statement for the Financial Year 2017-18 are given below:
Audit Para Management Reply

Assets and Liabilities taken over from Department of Telecommunication (‘DoT’) and the amounts receivable
and payable to DoT
8 As detailed in note 38 and 41.1 to the standalone The Company has recorded all identified assets and
Ind AS financial statements, assets and liabilities liabilities taken over from DoT as on 01 October 2000.
(including contingent liabilities) taken over from The value and classification of the assets has been
DoT on 1 October 2000 have been verified and recorded as per the relevant accounting standards and
valued by the management based on internal the available guidelines.
calculations. These are subject to reconciliations
and confirmation from DoT as regards to value During the current financial year, there is no change in
and classification. The consequential impact the assets and liabilities taken over from DoT as on 1
on the standalone Ind AS financial statements, October 2000. Further, the value of net additional assets
if any, as a result of the same is presently not identified during the previous year was immaterial.
ascertainable. Our Audit Report on the Ind AS
financial statements for the previous year ended Accordingly, management estimates that there will not
31 March 2017 was also qualified in respect of be any material identification of assets/ liabilities in the
subsequent years.
this matter.
9 As detailed in note 42 to the standalone Ind BSNL Circles have been asked to provide the details
AS financial statements, amounts due from and of balances under account head related to claim
to DoT, included in current assets and current recoverable from DOT to the Office of concerned
liabilities aggregating to Rs. 2,43,013 lakhs CCAs for confirmation.
(31st March 2017 Rs. 2,20,052 lakhs) and Rs.
31,085 lakhs (31st March 2017 Rs. 37,316 Current liabilities include running balances payable
lakhs), are subject to confirmation, reconciliation to DoT like amounts related to general provident fund
and consequential adjustment. The impact (GPF), pension contribution, etc. These amounts are
of the adjustments, if any, on the standalone generally settled within next month of the subsequent
Ind AS financial statements is presently not financial year.
ascertainable. Our audit report on the Ind AS
financial statements for the previous year ended
31 March 2017 was also qualified in respect of
this matter
10 (i) In pursuance of Ind AS 101-“First Time Para D5 of Ind AS 101 which provides the option to
Adoption of Indian Accounting Standards” fair value the property, plant and equipment on the
the company had selectively fair valued only transition date states that an entity may elect to measure
certain freehold lands as at 1st April 2015, an item of property, plant and equipment at the date
resulting in upward valuation of freehold of transition to Ind ASs at its fair value and use that fair
lands under Property, Plant & Equipment and value as its deemed cost at that date.
the corresponding increase to Other Equity by
a sum of Rs 69,86,449 lakhs. Fair valuation This para clearly states that the option to fair value
of only certain lands is non-compliance of items of property, plant and equipment is available for
Ind AS 101 First Time Adoption of Indian application to each individual item of property, plant
Accounting Standards. and equipment.
295
Use of fair valuation of selected individual items
of property, plant and equipment as deemed cost
is permissible under Ind AS as on transition date in
accordance with Para D5 of Ind AS 101. Since this
option is exercised, other items of property, plant and
equipment have been carried at cost as per Ind AS 16.
Accordingly, the fair value of selected parcels of

freehold land on transition date is in compliance with
Ind AS 101.
Further, the selective fair valuation of the land was

examined by Comptroller & Auditor General of India
during certification audit of the financial statements for
the year ended 31 March 2017 and the management
view has been agreed by C&AG.
(ii) Non compliances had also been reported by The fair valuation techniques are given in Appendix B
the Circle Auditors in the procedure adopted to the Ind AS 113.
and non-application of uniform policies with
regard to fair valuation of freehold lands. Accordingly, the Certified valuers have used different
techniques / approaches, appropriate to value
such freehold land on case to case basis and are in
accordance with Ind AS.
The consequential impact of adjustments, Since, the fair valuation exercise was a one-time
if any, on the standalone Ind AS financial activity carried on transition date, the impact of fair
statements is presently not ascertainable. valuation was taken to retained earnings and this does
Our Audit Report on the Ind AS financial not have any impact on the standalone Ind AS financial
statements for the previous year ended 31 statements for the year ended 31 March 2018.
March 2017 was also qualified in respect of
this matter.
Revenue
11 i) The company has not applied definition of The Company has disclosed its credit risk policy in note
“Default” and “Assessment of Credit Risk” 53(B)(i). The relevant extracts of the policy is as below:
consistently to all the financial instruments
in terms of Ind AS 109 Financial Instruments. ‘The Company establishes an allowance for impairment
Further, there is no renegotiation or that represents its expected credit losses in respect of
modification of the contractual cash flows on trade receivable and other financial assets……’
trade receivables from Other Government and/
The Company has followed the above credit risk policy
or PSU sector entities. We have also not been
from the date of transition to Ind AS (1 April 2015) for
provided with reasonable and supportable
all the financial instruments as per Ind AS 109 and
information about past events, current
have recognized appropriate loss allowance based on
conditions, forecasts of future economic
assessment of specific credit risk.
conditions including any demonstrable
recovery pattern and indicators that led the
As per the above credit risk policy,
management to change its perception in the
296
current year 2017-2018 for considering trade ‘Receivables more than two years past due primarily
receivables, from Other Government and/ comprises receivables from government departments
or PSUs sector entities, as having low credit and PSU’s, which are fully realisable on historical
risk vis-à-vis the corresponding previous year payment behavior and hence no loss allowance has
that made the management to write back been recognised. Impairment allowance has already
in the current year 2017-2018, the entire been recognised on specific credit risk factor’.
accumulated loss allowance provided in the
earlier year(s).
We accordingly conclude that the credit

risk on such financial instruments (i.e. trade
Generally, the Company makes provision for
receivables from Government and/ or PSU
sector entities) has not decreased significantly government departments and PSU’s, the balances of
since initial recognition. Consequently, the which are outstanding for more than two years based
write back of loss allowance in the current year on specific credit risk.
relating to receivables from Government and/
or PSU sector entities, is not in consonance
with the Ind AS 109 Financial Instruments. Similar approach was followed by the circles in
This is also not in consonance with the evaluating the adequacy of provisions for dues from
Accounting Policies as stated in Note No government departments and PSU’s and reversals were
2.2(p) of the Significant Accounting Policies only made where found suitable by the circles based
of the company. on estimation of the specific credit risks.
We were not supplied the financial information Accordingly, the Company is in compliance with
about the write back of loss allowance of trade Ind AS 109 requirements for trade receivables from
receivables from other Government and/ or Government and/ PSU sector entities.
PSU sector entities as at March 31, 2018 and
accordingly we are unable to comment upon Since the provision are recognised at circle level, the
the impact of adjustments made for these detail of which are available at circle level.
ii) Net amount receivable from Mahanagar

Telephone Nigam Limited (MTNL) as per the It may be noted that the net amount receivable from
Standalone Ind AS financial statements is Rs Mahanagar Telephone Nigam Limited (MTNL) as per
3,47,024 lakhs (31 March 2017 Rs 2,55,188 the Standalone Ind AS financial statements is INR
lakhs), being amounts recoverable from 2,40,711 lakh, being amounts recoverable from MTNL
MTNL Rs 3,62,140 lakhs, amount payable INR 3,62,140 lakh, amount payable and provision for
and provision for amounts payable to MTNL amounts payable to MTNL INR 1,21,429 lakh.
Rs 15,116 lakhs. MTNL however, claims a
sum of Rs 3,38,726 lakhs as recoverable from A high Level Committee has been formed by DOT
the Company in the balance confirmation vide Letter No. 10-14/2013-SU-1 dated 25/06/2013
certificate. consisting representatives of DOT, MTNL to sort out
the issues with MTNL.
The required financial information to verify
such balances as at March 31, 2018 was Management has taken up the matter of reconciliation
not provided to us by the company and of receivables from and payables to MTNL through a
accordingly we are unable to comment upon standing committee constituted by DoT.
297
the impact of adjustments in the financial The issue is under settlement and both being PSUs under
statements that would be required pursuant to DoT, there would be reconciliation and settlement at
the eventual resolution of such balances inter- the earliest.
se the company and MTNL.
12 As reported by auditors of 2 circles, the income The concerned circles are being instructed to take
from recharge coupons, prepaid calling cards, necessary action in the matter.
internet connection cards, sancharnet cards and
stock of recharge coupons and prepaid calling
cards are subject to reconciliations. In the absence
of specific details, the impact of adjustment, if
any, on Ind AS financial statements is presently
not ascertainable. Our audit report on the Ind AS
31 March 2017 was also qualified in respect to
this matter.
13 One circle auditor has reported non charging Noted
of expenditure amounting to Rs 615.20 lakhs
to revenue and writing off the same from the
provisions, thereby understating the Loss and
Provisions by a sum of Rs 615.20 lakhs.
14 As stated in note 2.2-(p) to the significant Adequate disclosures are already given in the books of
accounting policies, certain items of revenue accounts of BSNL.
are accounted for on cash basis instead of the
accrual basis of recognition of revenue which is
not in accordance with the generally accepted
accounting principles in India. The impact of the
adjustment, if any, in respect thereof on revenue,
license fee, trade receivables and loss for the year
is presently not ascertainable. Our audit report on
the Ind AS financial statements for the previous
year ended 31 March 2017 was also qualified in
15 One circle auditor has reported insufficient The necessary documentary evidence has been
documentary evidence and non-providing the provided to the auditors prior to the authorization
basis for booking of Income in respect of NFS for issue of the financial statements by the Board of
and LWE projects amounting to Rs 10,474.50 Directors.
lakhs. Consequential impact on the standalone
Ind AS financial statements, if any, as a result of
the same is presently not ascertainable.
16 1 circle auditor has reported that Fixed Assets Noted
taken over from DoT which were not accounted
for in the standalone financial statements of the
circle have been sold and treated as Sale of Scrap.
The consequential impact of adjustments, if any,
on the standalone Ind AS financial statements is
298

17 As reported by auditors of 12 circles, Capital CWIP includes turnkey project also, completion of
Work-in-Progress, inter alia, includes balances which takes several years. As per company policy,
pending capitalization for long-periods of time capitalization is done on the basis of A/T /Completion
owning to pending analysis of status, value Certificate issued by the concerned executing agencies.
and obtaining of commissioning certificates.
The consequential impact on the Capital Work- Based on Management estimate provision for
in-Progress, Property Plant and Equipment, impairment has been created for delayed projects
depreciation and amortization and loss for the pending capitalization wherever there were indicators
year, if any, is presently not ascertainable. Our of impairment.
audit report on the Ind AS financial statements for
the previous year ended 31 March 2017 was also The Circles are being instructed to capitalize the works
qualified in respect of this matter. as and when completed and put to use and depreciation
provided from that date.
18 Circle Auditors have reported non-capitalisation The Circles are being instructed to capitalize the works
of completed Capital Work in Progress in the as and when completed and put to use and depreciation
books of accounts, though being physically provided from that date.
used, due to non-availability of Capital Budget
or due to closure of accounting periods. This
has resulted in overstatement of Capital Work in
Progress, and understatement of Property, Plant
and Equipment, Depreciation and losses by an
amount that is unascertainable due to insufficient
information.
19 Company has capitalised an amount of Rs. 57,873 BSNL is capitalizing interest on the general borrowings
lakhs to Property Plant and Equipment, which to the cost of Property, Plant & Equipment in accordance
is not in compliance with Ind AS 23-Borrowing with Ind AS-23.
Cost. The interest costs on borrowed funds in
respect of the Property, Plant and Equipment Since the interest on general borrowings is in the nature
which were capitalized in the earlier years have of avoidable interest cost, it has to be capitalized year
not been delimited to the extent of bringing them on year on the qualifying assets as these borrowings
to their being put to use by the company. The could have been repaid had the expenditure on these
capitalizing of such interest is also made in the qualifying assets was not made.
current year without any basis. This has resulted in
overstatement of Property, Plant and Equipment, All the borrowings are taken by the Corporate Office
Capital Work in Progress, and understatement of centrally and the payment of interest thereon is also
losses by an amount that is unascertainable due settled centrally. The borrowing cost is allocated to the
to insufficient information. circles in proportion to CAPEX fund transferred to the
circles.
Further the auditors of 14 circles have reported
that Borrowing Cost pursuant to applicable
Ind AS has been capitalised based upon ATD/
communication/ excel sheet received from
Head Office. These auditors have expressed
their inability to verify the correctness of these
borrowing costs for want of calculations/ details.
299
Our Audit Report on the Ind AS financial
statements for the previous year ended 31 March
2017 was also qualified in respect of this matter.
20 Capital Work in Progress (Stores) amounting to The Capital work-in-progress includes assets under
Rs 6,52,924 lakhs (31 March 2017 4,36,505 construction and cost attributable to construction of
lakhs) also includes Inventory items which are assets not ready for use before the year end.
being used in the repair and maintenance of
the projects. Such Inventories have not been The nature of materials are such that the same material
separately classified under the head Current is utilized for both, the projects and repair and
Assets. In the absence of sufficient audit maintenance and there is no physical bifurcation of the
evidences, we are unable to comment upon items intended to be used for projects or for repair and
the impact of the same on the Capital Work in maintenance.
Progress (Stores) and Inventory in Current Assets.
As per the management, these are to be materially
utilized for the project purposes. Accordingly, the same
are presented as ‘Capital work-in-progress in store’ in
the financial statements.
21 As reported by auditors of 8 circles, in the The concerned circles are being instructed to account
absence of information in respect of certain items for such types of transactions strictly as per accounting
of Property Plant and Equipment capitalized, circulars/ instructions issued in this regard.
particularly batteries, it could not be established
whether assets capitalized were on account
of replacement/ extension of an existing asset
or additional acquisition of a new asset and
hence the consequential impact of the same on
the classification/ value of the respective asset,
depreciation and amortization, expenses and loss
for the year, if any, is presently not ascertainable.
Our audit report on the Ind AS financial statements
for the previous year ended 31 March 2017 was
22 The leasehold land as identified and valued by the Most of the land transferred to the Company was
respective circles have been incorporated in the acquired by DOT prior to 01/10/2000.
books of accounts and amortised with effect from
the date of formation of the Company. Hence, All leasehold/ freehold land which are known/
in respect of the lands still not identified and/ or identified have been accounted for.
duly incorporated in the books of accounts of
the respective circles, the consequential impact
on value of Property Plants and Equipment,
depreciation and amortization and loss for the
year, if any, is presently not ascertainable. Our
the previous year ended 31 March 2017 was also
300
23 As detailed in note 41.2 to the financial The concerned circles are being instructed to expedite
statements, auditors of 4 circles have reported on the process of getting the lease of lands renewed.
the expired/ non-renewal of leases on lands on
which the Company had constructed buildings
and the fact that management has not made
any provision for the surrender value/ written
down value of the aforementioned buildings in
the anticipation of the ultimate renewal of the
leases, the consequential impact of adjustment
on Property Plant and Equipment, depreciation
and amortization and loss for the year, if any, is
presently not ascertainable. Our audit report on
24 As stated in note 3(i) and 41.3 to the financial The company is in the process of executing the
statements, Property Plant and Equipment, title deeds of the lands purchased / acquired,
inter alia, includes land pertaining to 5 circles, wherever required.
purchased/ acquired on leasehold/ freehold
basis through various authorities, the title deeds
of which are yet to be executed in the name of
the Company. Our audit report on the Ind AS
this matter.
3 Circle Auditors have reported that Title deeds

are in the name of DoT and 2 Circle auditors
have reported non-availability of title deeds.
25 The accounting policy of the Company as stated The circles are being instructed to strictly adhere
in note 2.1(c) to the financial statements with to the accounting instructions issued on the
respect to the decommissioned assets—now subject matter.
considered as Asset held for sale—has not been
uniformly applied across all circles. In 6 circles,
the decommissioned assets are not recorded at
While in 3 circles, the decommissioned assets

have not been appropriately adjusted from the
block of Property Plant and Equipment and
depreciation and amortization is still being
charged on such decommissioned assets. In the
absence of sufficient details, we are unable to
comment upon the impact of adjustment on the
Property Plant and Equipment, current assets,
depreciation and amortization and loss for the
301
year, if any, arising out of the same. Our audit
report on the Ind AS financial statements for the
previous year ended 31 March 2017 was also
Certain Circle Auditors have reported that WIMAX The Management estimates that such WIMAX and
and CDMA equipment, though not being used CDMA equipment are reusable and held for the purpose
have not been considered as decommissioned of obtaining future economic benefits from its use.
assets. The consequential impact on value of Accordingly, the Company have not decommissioned
Property Plants and Equipment, depreciation such assets.
and amortization and loss for the year, if any, is
26 (i) As reported by auditors of 19 circles, the Accounting policy of BSNL in this regard states that
Company has not consistently adhered the cost includes directly related establishment and
to capitalizing the overhead expenses other expenses including employee remuneration and
specifically attributable to the capital work- benefits, directly identifiable to the construction or
in- progress but has recorded the same on creation of assets.
estimated/ fixed percentage/ payment basis:
The administrative and establishment expenses incurred
in units where project work is also undertaken are
allocated to capital and revenue mainly on actual basis
and on “actual man-month spent” basis respectively.
(ii) As reported by auditors of 3 circles, the The concerned circles are being instructed to capitalize
company capitalizes the assets on periodic the works as and when completed and from the date of
basis instead of at the ready to use date; and ready to use.
All BSNL Circles has gone live under ERP during F.Y.
2015-16 and since then depreciation is charged on
monthly basis under ERP.
However, the concerned circles are being instructed

to strictly adhere on the accounting policies and
instructions issued in this regard.
(iii) Accounting policies regarding capitalization, The concerned circle is being instructed to strictly
disposal, depreciation and amortization adhere on the accounting policies and instructions
of Property Plants and Equipment are not issued in this regard.
uniformly applied in case of 9 circles.
1 circle auditor has reported that Overhead

Costs have not been included in Capital Work
in Progress and have instead been charged to
Revenue. The management in its reply has stated
that due to Budget constraints, the expenses
could not be debited to CWIP. This has resulted
in overstatement of Expenditure and losses by a
302
sum of Rs. 3,984 lacs and understatement of

Capital Work in Progress by the like amount.
The resultant impact of the above non compliances

with the standards on the value of Property Plant
and Equipments, Capital Work-in-Progress,
Depreciation and amortization and loss for the
year, if any, are presently not ascertainable. Our
the previous year ended 31 March 2017 was also
27 As detailed in Note 3, during the financial Necessary accounting instructions have been issued
year 2017-18 the company has changed the to all the circles for classification, presentation and
classification for decommissioned assets from measurement of items of property, plant and equipment
Property Plant and Equipment to Assets held which are held for the purpose of immediate sale.
for Sale. Prior to this change Decommissioned Accordingly, circles have classified items of property,
assets were disclosed at written down value and plant and equipment as assets held for sale which
provision was made for diminution in the value of meets the recognition criteria as per Ind AS 105.
decommissioned assets. The company has during
the year, based upon an internal assessment, the During the current year, the Company has only
details whereof were not provided to us, classified changed the presentation of decommissioned assets
assets held for sale and these have been valued from property, plant and equipment to assets held for
at lower of carrying amount and net realisable sale as mentioned in the footnote under property, plant
value, and the corresponding gain or loss on and equipment.
the assets held for sale is recorded in ‘Excess
liabilities written back no longer required’ under It shall be noted that the accounting policy in both the
‘Other income’ (refer note 33) and ‘Write off years, i.e. FY 2016-17 and FY 2017-18, is consistent as:
and losses (other than bad debts)’ under ‘Other
- These assets are carried at lower of net carrying cost
expenses’ (refer note 37) respectively.
and net realisable value (in both the financial years),
and
In terms of Ind AS 105 Non-Current Assets Held
for Sale and Discontinued Operations an entity
- No depreciation is charged on these assets once
shall classify a non-current asset (or disposal
the asset is decommissioned (irrespective of their
group) as held for sale if its carrying amount will be
classification as ‘Property, plant and equipment’ or as
recovered principally through a sale transaction
‘Assets held for sale’)
rather than through continuing use. The asset (or
disposal group) must be available for immediate Therefore, there is no understatement of provisions or
sale in its present condition subject only to terms losses.
that are usual and customary for sales of such
assets (or disposal groups) and its sale must be In accordance with Para 38 of Ind AS 105, Assets held
highly probable duly indicated by existence of for sale are to be presented separately from other assets
management’s committed plan to sell the asset (or in the balance sheet. Further, the presentation done by
disposal group), and commencement of an active the Company is also supported by the ‘Guidance Note
programme to locate a buyer and complete such on Division II – Ind AS Schedule III to the Companies
plan. Further, the asset (or disposal group) must Act 2013’.
be actively marketed for sale at a price
303
that is reasonable in relation to its current
fair value. Thus, an asset (or disposal group)
cannot be classified as a non-current asset (or
disposal group) held for sale, merely because
the entity intends to sell it in a distant future.
This classification is not in accordance with Ind
AS 105.This has resulted in understatement of
Provision for Diminution in the value of Asset
held for sale, and understatement of losses by
recognition of unrealised gains the amount of
which is unascertainable due to insufficient
information.
28 The company does not follow a system of obtaining As per Industry practice, taking confirmation for
confirmation and performing reconciliation of trade receivables and subscribers deposits from huge
balances in respect of trade receivable, deposits subscribers’ base is neither practical nor possible.
with government departments/ companies (inter-
alia, including Mahanagar Telephone Nigam For balances due to or due from other parties i.e.
Limited and Bharat Broadband Network Limited), DOT, DOP, other Govt. departments/ companies etc.,
claims recoverable from/ payable to DoT circles are instructed again to carry out reconciliation at
(including license fees payable as detailed in note regular intervals.
48(A) of the Ind AS financial statements) or to/
from other government departments/ authorities,
subscriber/ customer deposit accounts, trade
payable and claims payable. Due to non-
availability of confirmation (except MTNL),
and reconciliations of the aforementioned
account balances, we are unable to quantify the
impact of the adjustments, if any, arising from
reconciliation and settlement of account balances
on the financial statements. Our audit report on
One circle auditor has reported receipt of debtor’s The concerned circles are being instructed to carry out
payment of that circle by the other Circle, without the reconciliation and take necessary action.
issuing any ATC to this Circle.
29 (i) As reported by auditors of certain circles, there The concerned circles are being instructed to carry out
are unquantifiable differences between the the reconciliation and take necessary action to sort out
general ledger/ trial and accounting records the difference between the two sets of records.
pertaining to loans and advances, current
assets and current liabilities. The impact on
the Ind AS financial statements if any, owing
to the aforementioned non-reconciliations is
presently not ascertainable. Our audit report
304
on the Ind AS financial statements for the

(ii) As detailed in Note No 13(a), the differences The Company has qualitatively disclosed differences in
in General Ledger Balance and Subsidiary the closing balance of trade receivables between the
ledger of Receivables is Rs 9,783 lakhs (31 subsidiary ledger and the general ledger amounting to
March 2017-1,678 lakhs). The difference of INR 9,783 lakh in note 13(a) on a net basis as there is
balances is incorrectly stated since only the no specific requirement to disclose such amounts on a
net differences has been stated. The gross gross basis.
differences are amounting to Rs. 21,017.54
Lakhs (31 March 2017-Not Available). The The circles are being instructed to carry out the
impact on the Ind AS financial statements, reconciliation and take necessary action to sort out the
if any, owing to aforementioned non- difference between two sets of records.
reconciliations is presently not ascertainable
30 Circle Auditors have reported lack of suitable The concerned circles are being instructed to strictly
system for issue, recording, movement, physical adhere on the accounting policies and instructions
verification of Inventories/ Capital Work in issued in this regard.
Progress (Stores). The consequential impact on
the Ind AS financial statements, if any, as a result
of the same is presently not ascertainable.
31 As reported by auditor of 4 circles, there are Circles are being instructed to take appropriate action
differences in the inventory records between immediately.
stores ledger and general ledger/ trial balance, the
impact of the same is currently not ascertainable.
Our audit report on the Ind AS financial statements
for the previous year ended 31 March 2017 was
32 As reported by auditor of 4 circles, there are Upon Implementation of ERP in all BSNL Circle,
differences in the inventory records between Inventories at the time of issue and closing balance are
stores ledger and general ledger/ trial balance, the valued at weighted average method only.
impact of the same is currently not ascertainable.
Our audit report on the Ind AS financial statements Perhaps Branch Auditors of concerned circles were not
for the previous year ended 31 March 2017 was explained properly regarding above aspect.
33 8 Circle auditors have reported non identification The concerned circles are being instructed to strictly
of Slow Moving, Non Moving, Obsolete and adhere on the accounting policies and instructions
Damaged items of Inventory. The impact of the issued in this regard.
adjustment, if any, on inventory, consumption,
Provisions and loss for the year is presently not
ascertainable.
Inter / Intra Circle Remittance Account
34 As detailed in note 43 to the Ind AS financial Continuous effort to reconcile the remittance items and
statements, the Inter-Circle/ Unit remittance accounting of the same under relevant head are being
balances amounting to Rs. 7,919 lakhs (Debit) done by the circles which has resulted in minimize the
(previous year Rs. 9,020 lakhs (Credit)) are yet to remittance items at Rs. 79.19 crore (Debit) at year ended
305
be reconciled. Pending such reconciliations, the on 31/03/2018. Circles are being further instructed to
possible cumulative impact of the adjustments, if settle the pending remittance items immediately and to
any, on assets and liabilities and the current and minimize it in current year.
prior year(s) income and expenditure is presently
this matter.
35 (i) As stated in note 39.3 to the financial statements, BSNL is of the view that license fees are not payable
the Company’s license and spectrum, fees on interest on income tax refund since it is not in the
payable to DoT for the year ended 31 March nature of interest on investment and demand raised
2018 amounts to Rs. 1,74,338 lacs (previous by Income Tax Department was paid due to statutory
year Rs. 2,31,086 Lacs) and is calculated on obligation and to avoid hefty penalty.
the Adjusted Gross Revenue (‘AGR’) which is
determined by the management by excluding The matter regarding exemption from payment of
the interest income on income-tax refund license fee on interest on income tax refund has been
received during the year amounting to Rs taken up with DOT.
1,864 lacs (Previous Year 36,531 lakhs). In
our opinion, the license fees is understated
by Rs. 149.12 lakhs (Previous Year 3,054.50
lakhs) since such interest income has not
been included in determination of AGR for
computing the license fees. Had the aforesaid
expenditure been accounted for, license and
spectrum fees and loss for the year ended 31
March 2018 and current liabilities as at that
date would have been higher by Rs. 149.12
lakhs (Previous Year 3,054.50 lakhs) and the
reserve and surplus as at that date would have
been lower by the same amount. Our audit
report on the Ind AS financial statements for
the previous year ended 31 March 2017 was
also qualified in respect to this matter.
(ii) As reported by auditor of 1 circle, interest
received on security deposits is set off directly
from the bills and the interest income is not
ascertainable for recognizing liability of
license fees, auditor of 4 circle has reported:
iii) Liquidated Damages recovered from On verification, it has been noticed that Income from
contractors/ suppliers and reduced from NOFN project / Profit from Construction Contracts /
relevant revenue expenditure, have not been Liquidated Damages to the extent booked under the
included for the calculation of License and Head “Revenue” has been considered for calculation
Spectrum Fees. and payment of license and spectrum fees.
306
Further, auditors of 5 circles have reported that The license fees are paid on revenue share basis. The
revenue from NLD/ ILD is not based on actual value of pulse is not constant and may also be NIL
usage of pulse and the license fees is based upon for certain tariff plans. Special tariff/validity vouchers
estimated basis. Consequential impact on the Ind introduce another variable due to which pulse does not
AS financial statements, if any, as a result of the remain right factor for measuring revenue for purpose of
same is presently not ascertainable. Our audit calculating license fee. The license fee is now uniform
report on the Ind AS financial statements for the across various services; hence the effect is not material.
qualified in respect to this matter.
36 The provisions and the disclosures with regard to Most of the circles had provided the details of litigation
matters under litigations have been made based upon / claims lodged or defended and contacts of the
the management estimates. Based upon the report Company’s counsels to the auditors. At Corporate level
of auditors of 12 circles, sufficient and appropriate also, the abovementioned details were given to auditors.
audit evidence for examining and verifying the The auditors had written letters to the Company’s
quantum of contingent liabilities disclosed in note counsels. It appears that due to professional reasons
50 to the standalone Ind AS financial statements has some counsels did not respond. It may also be noted
not been obtained. In the absence of the adequate that many of the legal cases are on either outstanding
details and documents and pending the responses dues or on service/ personnel matters involving issues
to our confirmation requests in respect of the of employee’s career progression, inter-se seniority
litigations, the impact of adjustments/ disclosure, if etc. For the cases having major implications known up
any, on the standalone Ind AS financial statements to finalization of accounts, the details and contingent
is presently not ascertainable. Our audit report on liabilities have already been shown in note to accounts.
the Ind AS financial statements for the previous year Moreover, the concerned circles are further advised to
ended 31 March 2017 was also qualified in respect provide the adequate details to auditors.
of this matter.
37 As stated in Note No 49, certain claims of MTNL BSNL and MTNL, both being PSU, are under the same
on various accounts are under reconciliation Ministry. The reconciliation and settlement of claims
and settlement process. In the absence of between them is under process.
sufficient details and audit evidences in respect
of the amount of such claims, the impact of
adjustments/ disclosure, if any, on the standalone
Ind AS financial statements is presently not
ascertainable.
38 As reported by 13 circles, the circles have not In most of the cases, claim of the BSNL has not been
made provision for the disallowance of subsidy rejected but withheld by USO Fund Administrator for
claimed from Universal Service Obligation Fund want of some technical aspects such as installation of
(‘USOF’). The impact of the adjustment, if any, solar power system/kiosks etc. Circles are taking up the
in respect thereof on current assets and loss matter with concerned CCA regularly and based on
for the year is presently not ascertainable. The the best estimate, no provision has been considered
consequential impact of adjustments, if any, on necessary.
the standalone Ind AS financial statements is
presently not ascertainable. Our audit report on Management estimate has been reassessed at every
the Ind AS financial statements for the previous reporting date and necessary adjustment done.
307
Miscellaneous
39 As detailed in Note no 12, the company had Due to substantive evidence regarding recovery of the
pursuant to the Government of India, Ministry amount, the management has not considered necessary
of Communications and IT, Department of to record the diminution in value of investment in
Telecommunications order, made an investment preference shares of M/s ITI Ltd.
of Rs. 20,000lakhs[Rupees Twenty Thousand
Lakhs] in the 7% Redeemable cumulative
preference shares each of Rs. 100/– fully paid
up, in the financial year 2002–2003 in ITI
Limited. The company explains that ITI Limited
will redeem preference shares immediately
on release of the financial assistance by the
Government of India to ITI Limited as a part of
revival package. Such preference shares have a
specified (contractual) term and considering the
observable Level 2 inputs, in terms of Ind AS 113,
Fair Value Measurement, including the condition
of such investment and significant decrease in
the volume or level of activity for in relation
to normal market activity, for substantially the
full term of such investment, we report that the
company has not provided for the impairment
loss on such investment as the transaction price
does not represent its fair value. This accordingly
has resulted in understatement of net loss by Rs.
20,000 lakhs and overstatement of corresponding
investments by the same amount for the financial
year 2017-2018.
40 The Company has not complied in respect of
the following Ind AS notified under Section 133
of the Act, read with Rule 3 of the Companies
(Indian Accounting Standards) Rules, 2015 (as
amended).
i. As reported by auditors of 2 circles, the Adequate disclosure has been made at Corporate office
expenses, incomes, assets and liabilities are level.
not properly disclosed under the reportable
segments as per the Ind AS 108-“Operating
Segments”. In our opinion, the same does not
give true and fair disclosure of the segment-
wise operations of the Company as required
by the aforementioned Ind AS. Our audit
report on the Ind AS financial statements for
the previous year ended 31 March 2017 was
308
ii. The company has not carried out any techno- The operations of BSNL are of such a nature where
economic assessment during the year ended assets are in use 24x7. As and when any asset is
31 March 2018 and hence identification found non-repairable or non-functional or obsolete,
of impairment loss and provision thereof, the same is decommissioned and necessary provision
if any, has not been made. The same is not is being created in books of accounts. This process
in accordance with the notified Ind AS 36 is continuously followed throughout the year in each
“Impairment of Assets”. The consequential circle of BSNL.
impact of adjustment, if any, on the standalone
Ind AS financial statements is currently not
ascertainable. Our audit report on the Ind
AS financial statements for the previous year
ended 31 March 2017 was also qualified in
respect of this matter
iii. The accounting for capital and revenue The Circles are being instructed to strictly adhere to
grant in accordance with the notified Ind the accounting policies and instructions issued in this
AS 20 “Accounting for Government Grants regard.
and Disclosure of Government Assistance”
is not followed consistently. In the absence
of specific details, the consequential impact
of adjustment, if any, on the standalone
iv. The accounting policy as referred to in note As per the accounting policy as disclosed, claims
2.2(m)(iii) to the statements with respect to for medical facility received from the employees
the liability on account of post-retirement of BSNL(including retirees) up to the cutoff date of
medical benefits of employees including finalization of annual accounts, are treated as liability
retired employees, a defined benefit plan, of the Company for the said financial year.
is recognized on actual basis in respect of
bills received by the company instead of The post employment medical care extended to its
recognizing the liability for the same as the retired employees as per the present policy of BSNL
present value of the defined benefit obligation is more like facilities ,which may be revised by the
at the balance sheet date calculated on the Management any time , depending upon the relevant
basis of actuarial valuation in accordance with factors prevailing at that time.
the notified Ind AS–19 “Employee Benefits”.
The consequential impact of adjustment, if Further vide Letter No. BSNL/Admn.I/14-15/09(pt.)
any, owing to this non-compliance on the dated 02/04/2014 option to choose CGHS facilities
standalone Ind AS financial statements is has been extended to retired employees of BSNL, who
presently not ascertainable. Our audit report are in receipt of Central Civil Pension.
on the Ind AS financial statements for the
qualified in respect of this matter
309
v. As reported by 5 circles, contract revenue The Circles are being instructed to strictly adhere to the
and contract costs pertaining to construction accounting instructions issued in this regard.
contracts have not been accounted for in
accordance with the notified Ind AS 11
“Construction Contracts”. In the absence of
specific details, the consequential impact
of adjustment, if any, on the standalone
vi. As detailed in Note No. 41(2) the company The Circles are being instructed to strictly adhere to the
has certain leasehold land, the lease tenure disclosure requirements in this regard.
of which in earlier year(s) and is not renewed
in current year. Pending renewal of such
lease, period and non-availability of sufficient
information about the timeline by which
it would be renewed, the classification of
such land made by the company as finance
lease is not in conformity with Ind AS 17
“Leases”. 4 circle auditors have reported
that certain provisions including disclosure
requirements as per Ind AS 17 “Leases”, have
not been complied with. In the absence of
of adjustments, if any, on the standalone
41 (i) The company has not identified and restated Ind AS 8 requires that material prior period errors shall
the prior year financial statements with be corrected retrospectively.
regard to prior period transaction recorded
in the current financial year in violation of In view of the management, the prior period errors
Ind AS-8 Prior Period items.In the absence during the current financial year are not material, hence
of specific details, the consequential impact no restatement has been carried out.
of adjustments, if any, on the standalone
ascertainable.
(ii) As stated in the note 2.2(v) of the financial Adequate disclosures are already given in the books of
statements, individual transactions of income/ accounts of BSNL. The accounting policy of the company
expenditure exceeding Rs. 5 lacs, are considered is made keeping in view the size of organization and
volume of high denomination transactions. It may also
310
for evaluation as prior-period items. The revenue be noted that many organization of such size in
and expenditure for the current year, inter alia, infrastructure industry are following similar policies.
includes amount pertaining to prior period(s)
as reported by auditors of 7 circles. This is not
in accordance with the Ind AS 8 “Accounting
Policies, Changes in Accounting Estimates and
Errors”. In the absence of specific details, the
consequential impact of adjustments, if any, on
the standalone Ind AS financial statements is
presently not ascertainable. Our audit report on
42 As reported by 11 circles and detailed in note The concerned circles are being instructed to take
28 to the standalone Ind AS financial statements, necessary action.
these circles have not identified units covered
under Micro, Small and Medium Enterprises
Development Act, 2006 (‘MSMED Act, 2006)
and hence disclosures as required under the
MSMED Act, 2006 have not been given. The
consequential impact of the same on the
standalone Ind AS financial statement is presently
this matter.
43 The disclosure requirements of the Schedule III, The circles are being instructed to strictly adhere to the
Division II of the Act have not been properly accounting instructions issued on the subject matter.
adhered to in the presentation and disclosure
of standalone Ind AS financial statements of the
Company in respect of classification of assets/
liabilities into current and non-current and
secured and unsecured, whether applicable;
categorization of assets/ liabilities into appropriate
captions; changes in inventory; related party;
capital and other commitments and expenditure
and earnings in foreign currency. Our audit
44 36 Circle auditors have reported non-compliance
of Goods and Service Tax (GST) provisions with
regard to charging, deposition, availing Input Tax
Credit, reconciliation of GST returns with books
of accounts, identification of creditors remaining
beyond 180 days from the date of supply for
311
reversal of Input Credit and availing of The concerned circles are being instructed to make
Transitional Credit on CENVAT. In the absence of necessary compliances with regard to deposition,
the appropriate details, we are presently unable deduction, and reconciliation of GST and other
to ascertain the impact, if any, on the adjustment statutory dues.
or disclosures to be included in these standalone
Ind AS financial statements.
45 As reported by auditors of 13 circles, compliances The concerned circles are being instructed to make
with regard to deposition, deduction, necessary compliances with regard to deposition,
reconciliation of service tax, tax deducted at deduction, and reconciliation of service tax and other
source and value added tax are pending to be statutory dues.
made. In the absence of specific details, we
are unable to comment on its consequential
impact, if any, on the standalone Ind AS financial
statements. Our audit report on the Ind AS
this matter.
46 As detailed in notes (a) and (b) of the Cash Flow Noted.
Statement, certain assumption have been made
for the purpose of preparation of the Cash Flow
Statement. In the absence of the appropriate
details, we are presently unable to ascertain the
impact, if any, on the adjustment/ disclosures in
the Cash Flow Statement. Our audit report on
48 The company has not complied with Ind AS 16 Asset Retirement Obligation (ARO) is required to be
“Property, Plant and Equipment” by not attributing discharged at the end of lease period by dismantling
the dismantling costs to each part of an item of the complete Asset and not every part or component
Property, Plant and Equipment with the cost that separately. Hence ARO has been created for complete
is significant in relation to the total cost of the Asset.
item. Auditors of 4 circles have reported that
value considered for Asset Retirement Obligation ARO is based on the technical evaluation carried out by
has been generated by internal department civil/electrical wing and is not required to be certified
which is neither certified by any Certified Valuer, from external agencies /valuers.
nor calculated in appropriate method and the
same has been calculated on estimated basis.
The impact of the adjustment, if any, in respect
thereof on asset, depreciation and loss for the
year is presently not ascertainable. Our audit
312
Matter of Emphasis
50 Reference is invited to Note 56 of the Notes The Company has made adequate disclosures related
to Accounts, whereby in terms of the decision to mobile tower business in note 56 of the financial
of the Union Cabinet, the Tower Business of statements for the year ended 31 March 2018.
the company is to be hived off into a separate
Subsidiary company. The hiving off of tower The transfer of telecom tower business to BSNL Tower
business may have an adverse effect on the Corporation Limited (wholly owned subsidiary of
gross revenues and profitability of the company. BSNL) is still under process.
During the financial year the company has direct
revenues of Rs 80,390 lakhs (31 March 2017-
49,621 lakhs) from tower business.
Our report is not quantified on that matter.
For and on behalf of the Board of Directors
Sd/-
(Anupam Shrivastava)
Chairman & Managing Director
Date: 13/12/2018
313
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OFFICE OF THE
DIRECTOR GNEERAL OF AUDIT, POST & TELECOMMUNICATIONS,
SHAM NATH MARG, (NEAR OLD SECRETARIAT), DELHI-110054
Dated 26.12.2018
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314
COMMENTS OF THE COMPTROLLER AND AUDITOR GENERAL OF INDIA UNDER SECTION

143(6) (b) OF THE COMPANIES ACT, 2013 ON THE FINANCIAL STATEMENTS OF BHARAT
SANCHAR NIGAM LIMITED (BSNL) FOR THE YEAR ENDED 31 MARCH 2018
The preparation of financial statements of Bharat Sanchar Nigam Limited (BSNL) for the year ended 31
March 2018 in accordance with the financial reporting framework prescribed under the Companies
Act, 2013(Act) is the responsibility of the management of the company. The Statutory Auditor/Auditors
appointed by the Comptroller and Auditor General of India under section 139 (5) of the Act is/are
responsible for expressing opinion on the financial statements under section 143 of the Act based on
independent audit in accordance with the standards on auditing prescribed under section 143(10) of
the Act. This is stated to have been done by them vide their Audit Report dated 04th October 2018
I, on behalf of the Comptroller and Auditor General of India, have conducted a supplementary audit of
the financial statements of BSNL for the year ended 31 March 2018 under section 143(6)(a) of the Act.
This supplementary audit has been carried out independently without access to the working papers
of the statutory auditors and is limited primarily to inquiries of the statutory auditors and company
personnel and a selective examination of some of the accounting records.
Based on my supplementary audit, the following significant matters under section 143(6)(b) of the Act
are highlighted which have come to my attention and which in my view are necessary for enabling a
better understanding of the financial statements and the related audit report.
COMMENT ON PROFITABILITY
Revenue from Operations Rs.2266778 lakh (Note-32)
Other Operating Income Rs.95736 lakh
a) The above includes Rs. 23,263.88 lakh on account of Capital Grant received from Departments of
Telecommunications on Left Wing Extremist Project which is not equivalent/proportionate to the
depreciation charged, of Rs. 21,186.12 lakh resulting in overstatement of income and understatement
of loss to the extent of Rs 2,077.76 lakh. This is not in conformity with the Company’s Accounting
Policy pertaining to Government Grants and the requirements of IND AS 20.
b) The Company has misclassified Rs. 2,327.94 lakh received as Capital Grant as Revenue Grants,
resulting in overstatement of Revenue Grant and understatement of Capital Grant on account of
Left Wing Extremist Project. This has resulted in overstatement of Income and understatement of
deferred liability to the same extent.
For and on behalf of the
Comptroller & Auditor General of India
Sd/-
(Sangita Choure)
Director General of Audit
(Post & Telecommunication)
Place: Delhi
Date: 26-12-2018
315
COMMENTS OF THE COMPTROLLER AND AUDITOR GENERAL OF INDIA
UNDER SECTION 143 (6) (B) OF THE COMPANIES ACT, 2013 ON THE
ACCOUNTS OF
M/s. BHARAT SANCHAR NIGAM LIMITED, NEW DELHI
FOR THE YEAR ENDED 31 MARCH 2018 AND
REPLY THEREON BY BSNL MANAGEMENT
Para No. Comments by C&AG of India Reply of the Management

COMMENT ON PROFITABILITY
Revenue from Operations Rs.2266778

lakh (Note-32)
Other Operating Income Rs.95736 lakh
a) The above includes Rs.23,263.88 lakh on The accounting policy of the company
account of Capital Grant received from related to grant states that the income
Departments of Telecommunications related to capital grant is recognised in
on Left Wing Extremist Project which proportion to the depreciation expense.
is not equivalent/proportionate to the
depreciation charged, of Rs.21,186.12 Further, it may be noted that in case of
lakh resulting in overstatement of Incomeproperty, plant and equipment, depreciation
on the value of asset is charged only on the
and understatement of loss to the extent of
Rs.2,077.76 lakh. depreciable amount (cost of the asset less
residual value), but the Company has to
This is not in conformity with the recognize the full amount of capital grant
Company’s Accounting Policy pertaining received in the statement of profit and loss
to Government Grants and requirements of over the expected useful life of the related
IND AS 20. asset in proportion to the depreciation
expense.
Accordingly, the amount of capital grant

income would be greater than the amount
of depreciation on the related assets during
any period. As such there is no over
statement of income and understatement of
loss.
Therefore, it is in conformity with the

requirements of IND AS 20.
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b) The Company has misclassified Rs.2,327.94 Necessary rectification will be done in the
lakh received as Capital Grant as Revenue current Financial Year 2018-19.
Grant, resulting in overstatement of Revenue
Grant and understatement of Capital Grant
on account of Left Wing Extremist Project.
This has resulted in overstatement of income
and understatement of Deferred liability to
the same extent.

Sd/- Sd/-
(Sangita Choure) (ANUPAM SHRIVASTAVA)
Director General of Audit CMD, BSNL
(Post & Telecommunication)
Date: 26-12-2018 Date: 31-12-2018
317
Consolidated Balance Sheet as at 31 March 2018
As at
Particulars Note
31 March 2018
ASSETS
Non-current assets
Property, plant and equipment 3(i) 9,931,362
Capital work-in-progress 3(ii) 870,384
Intangible assets 4 697,230
Financial assets
(i) Investments 5 -
(ii) Loans 6 583
(iii) Other financial assets 7 24,029
Deferred tax assets (net) 8 -
Other non-current assets 9 85,184
Total non-current assets
11,608,772
Current assets
Inventories 10 21,241
Financial assets
(i) Investments 11 20,000
(ii) Trade receivables 12 392,538
(iii) Cash and cash equivalents 13 75,782
(iv) Bank balances other than (iii) above 14 138
(v) Loans 15 224
(vi) Other financial assets 16 919,938
Current tax assets (net) 17 119,650
Other current assets 18 86,708
Assets held for sale 19 34,517
Total current assets 1,636,219
Total assets 13,279,508
EQUITY AND LIABILITIES

Equity
Equity share capital 20 500,000
Other equity 21 8,466,967
Equity attributable to owners of the Company 8,966,967
Non-controlling interest -
Total equity 8,966,967
Liabilities
Non-current liabilities
(i) Borrowings 22 1,654,348
318

Consolidated Balance Sheet as at 31 March 2018
As at
Particulars Note
31 March 2018
(ii) Other financial liabilities 23 181,781
Provisions 24 91,204
Other non-current liabilities 25 65,097
Total non-current liabilities 1,992,430
Current liabilities
(i) Borrowings 26 30,910
(ii) Trade payables 27 782,989
(iii) Other financial liabilities 28 698,476
Other current liabilities 29 806,579
Provisions 30 1,157
Total current liabilities 2,320,111
Total liabilities 4,312,541
Total equity and liabilities 13,279,508
This is the balance sheet referred to in our report of even date.
The accompanying notes are an integral part of these consolidated financial statements 1 to 57
For Andros & Co. For and on behalf of Bharat Sanchar Nigam Limited
Sd- Sd-
Sd-
Place: New Delhi Sujata Ray
Date: 04.10.2018 Director (Finance)
DIN: 07240022
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P.D. Chirania
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Consolidated Statement of Profit and Loss for the year ended 31 March 2018
As at
Particulars Note
31 March 2018
Revenue
Revenue from operations 31 2,266,778
Other income 32 240,286
Total revenue (I) 2,507,064
Expenses
License and spectrum fee 38 174,338
Employee benefits expense 33 1,483,724
Finance costs 34 4,831
Depreciation and amortisation expense 35 583,158
Other expenses 36 1,135,104
Total expenses (II) 3,381,155
Loss before tax (I - II = III) (874,091)
Tax expense: (IV)
Current tax 50 (80,429)

Loss for the year (III - IV = V) (799,560)
Other comprehensive income (VI)

Items that will not be reclassified to the statement of profit and loss
Remeasurement of post employment benefit obligation (net of tax) (897)
Total other comprehensive income/ (expense) for the year, net of (897)
taxes (VI)
Total comprehensive income/ (expense) for the year (V + VI = VII) (800,457)
Loss for the year attributable to

- Owners of the Company (799,560)
- Non-controlling interest -
Other comprehensive income for the year attributable to

- Owners of the Company (897)
320

Consolidated Statement of Profit and Loss for the year ended 31 March 2018
As at
Particulars Note
31 March 2018
Total comprehensive income/(expense) for the year attributable to

- Owners of the Company (800,457)
Loss per equity share (INR) 43 (15.99)

Basic and diluted (nominal value of shares INR 10 each)
This is the statement of profit and loss referred to in our report of even date. The accompanying notes are an
integral part of these consolidated financial statements 1 to 57
Sd- Sd-
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DIN: 07240022
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P.D. Chirania
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321
Consolidated Cash Flow Statement for the year ended 31 March 2018
For the year ended

Particulars
31 March 2018
A. Cash flows from operating activities
Profit/ (loss) before tax (874,091)
Adjustments for:
Depreciation and amortisation expense 583,158
Finance costs 936
Unwinding of discount on decommissioning liabilities 3,895
Interest income (7,497)
Profit on sale of property, plant and equipment (net) (12,796)
Capitalisation of overheads (92,481)
Write off and losses other than bad debts 24,904
Bad-debt provision other than services 487
Write off of unrecovered service tax/ GST 2,515
Bad-debt written off 25,159
Provision for doubtful debts and disputed bills 19,642
Excess liabilities written back no longer required (151,624)
Grant in aid (net) (37,745)
Operating cash flows before working capital changes (515,538)
(Increase)/ Decrease in loans (current and non-current) 507
(Increase)/ Decrease in trade receivables (127,458)
(Increase)/ Decrease in inventories (768)
(Increase) / Decrease in other financial assets (193,049)
(Increase) / Decrease in other assets 28,168
Increase/ (Decrease) in trade payables 189,996
Increase / (Decrease) in other financial liabilities 162,767
Increase/ (Decrease) in provisions 5,297
Increase / (Decrease) in other liabilities 286,414
Cash from operating activities (163,664)
Net income tax refund (paid) (6,450)
Net cash generated from operating activities (A) (170,114)
B. Cash flows from investing activities
Acquisition of property, plant and equipment (675,025)
Proceeds from sale of property, plant and equipment 141,920
Interest received 7,574
Proceeds from / (investment in) deposits with banks (10)
Net cash generated used in investing activities (B) (525,541)
C. Cash flows from financing activities
Interest paid (936)
Repayment of short term borrowings (net) -
Proceeds from/ (repayment) of long term loans (net) 623,559
Net cash generated from/ (used in) financing activities (C) 622,623
Net increase/ (decrease) in cash and cash equivalents (A + B + C) (73,032)
Cash and cash equivalents at the beginning of the year 117,904
Cash and cash equivalents at the end of the year 44,872
Components of cash and cash equivalents:
Balances with banks in current account including sweep-in-deposit 70,949
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Consolidated Cash Flow Statement for the year ended 31 March 2018
For the year ended

Particulars
31 March 2018
Deposits with original maturity of less than three months -
Cheques on hand 2,428
Cash on hand 2,405
Bank overdraft (30,910)
Total cash and cash equivalents (Note 14) 44,872
Notes:
a) In the absence of adequate data regarding assets appearing in the disposals/adjustments column of note no. 3 of
property, plant and equipment , all deletions (except amount transferred as assets held for sale) have been assumed to
be cash sales.
b) In the absence of adequate details regarding unreconciled inter circle remittances with the subsidiary records, all the
‘intra/ inter circle remittances’ have been treated as part of working capital changes.
c) Reconciliation between the opening and closing balances in the balance sheet for liabilities arising from financing
activities:
Particulars Non-current borrowings*

Opening balance as at 1 April 2017 321,657
Cash flows during the year 623,559
Interest expense 54,914
Interest paid (54,914)
Closing balance as at 31 March 2018 945,216
* Includes current maturities of non-current borrowings, refer Note 28.

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Consolidated Statement of Changes in Equity for the year ended 31 March 2018
a. Equity share capital
Particulars Note Amount

Balance as at 1 April 2017 500,000
b. Other equity
Reserves and surplus Total equity

attributable
Capital
Particulars to owners
Capital General Contingency Retained contribution
of the
reserve reserve reserve earnings from shareholder
Company
(Refer note 21)
Balance as at 1 April 2017 4,021,118 490,075 - 4,657,913 98,318 9,267,424
Loss for the year - - - (799,560) - (799,560)
Contingency reserve transferred to general reserve - - - - - -
Other comprehensive income/ (expense) for the year - - - (897) - (897)
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Notes to the consolidated financial statements for the year ended 31 st March 2018
1. Corporate information
Bharat Sanchar Nigam Limited (the ‘Company’ or ‘BSNL’) is a Public Sector Company fully
owned by the Government of India and was formed on 15 September 2000 in pursuance to
the Telecom Policy 1999, to take over the ongoing business of the Department of Telecom
Services (DTS) and Department of Telecom Operations (DTO) from 1 October 2000 (CIN:
U74899DL2000GOI107739). The Company has been incorporated under the erstwhile
Companies Act, 1956 with its registered corporate office in New Delhi.
The subsidiary of the Company, i.e. BSNL Tower Corporation Limited has been incorporated on
4 January 2018 and the operations of the subsidiary Company has not yet commenced.
BSNL together with its subsidiary is hereinafter referred to as the “Group”.
Basis of preparation
a) Statement of compliance
These consolidated financial statements are prepared on going concern basis following
accrual system of accounting and comply with the Indian Accounting Standards (Ind
AS) notified under The Companies (Indian Accounting Standards) Rules, 2015 and
subsequent amendments thereto, under Section 133 of The Companies Act, 2013 (to
the extent notified and applicable), and applicable provisions of the Companies Act,
1956.
On 4 January 2018, BSNL Tower Corporation Limited was incorporated as a
wholly owned subsidiary of the Company for the purpose of carrying out passive
infrastructure services which includes setting-up, operating and maintaining wireless
communication towers, etc. With the incorporation of the subsidiary, the Company
is required to prepare consolidated financial statements for the first time for the
year ended 31 March 2018. Accordingly, no comparative figures for consolidated
financial statements are required to be presented.
The Consolidated Financial Statements for the year ended 31 March 2018 are the first
Consolidated Financial Statements of the Group prepared under Ind AS.
The consolidated financial statements were authorised for issue by the Company’s
Board of Directors on 4 October 2018.
b) Functional and presentation currency
The consolidated financial statements are presented in Indian Rupees (INR) which is
the Group’s functional and presentational currency.
c) Basis of measurement
The consolidated financial statements have been prepared on going concern basis
under the historical cost convention except for the following items:
325
Notes to the consolidated financial statements for the year ended 31st March 2018
Items Measurement basis
Certain financial assets and liabilities Fair value
Net defined benefit (asset)/ liability Fair value of plan assets less present value of
defined benefit obligation
Assets held for sale Lower of net carrying cost and net realisable
value
d) Critical accounting estimates and judgements
In preparing these consolidated financial statements, management has made
judgements, estimates and assumptions that affect the application of accounting
policies and the reported amounts of assets, liabilities, income and expenses.
Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions
to accounting estimates are recognised prospectively.
Judgements
Information about judgements made in applying accounting policies that have the
most significant effects on the amounts recognised in the consolidated financial
statements is included in the following notes:
Note 2.2 (o) - whether the Group acts as a principal rather than as an agent in a
transaction
Note 2.2 (q) - leases: whether an arrangement contains a lease
Note 2.2 (q) - lease classification
Note 2.2 (d) and 51- classification of financial assets: assessment of business model
within which the assets are held and assessment of whether the contractual terms
of the financial asset are solely payments of principal and interest on the principal
amount outstanding.
Assumptions and estimation uncertainties
Information about assumptions and estimation uncertainties that have a significant
risk of resulting in a material adjustment in the year ending 31 March, 2019 is
included in the following notes:
Note 2.2 (l) and 39- measurement of defined benefit obligations and plan assets: key
actuarial assumptions
Note 2.2 (g) - measurement of useful lives and residual values to property, plant and
equipment
Note 2.2 (i) - measurement of useful lives of intangible assets
Note 2.2 (m), 2.2 (n) and 47 and 48 - recognition and measurement of provisions and
326

contingencies: key assumptions about the likelihood and magnitude of an outflow of

resources
Note 2.2 (c) and 51 - fair value measurement of investment in preference shares
Note 2.2 (s) - recognition of deferred tax assets: availability of future taxable profit
against which tax losses carried forward can be used
e) Basis of consolidation
The Company consolidates entity which it owns or controls. The consolidated financial
statements comprise the financial statements of the Company and its subsidiary as
disclosed in Note 53. Control exists when the parent has power over the entity, is
exposed, or has rights, to variable returns from its involvement with the entity and
has the ability to affect those returns by using its power over the entity. Power is
demonstrated through existing rights that give the ability to direct relevant activities,
those which significantly affect the entity’s returns. Subsidiaries are consolidated
from the date control commences until the date control ceases.
The financial statements of the Group companies are consolidated on a line-by-line
basis and intra-group balances and transactions are eliminated upon consolidation.
These consolidated financial statements are prepared by applying uniform accounting
policies in use at the Group.
Significant accounting policies
The accounting policies set out below have been applied consistently to all periods
presented in these consolidated financial statements.
a) Current and non-current classification
All assets and liabilities are classified as current or non-current on the following
basis:
Assets
An asset is classified as current when it satisfies any of the following criteria:
• It is expected to be realised in, or is intended for sale or consumption in, the
Group’s normal operating cycle;
• It is expected to be realised within 12 months after the reporting date; or
• It is cash or cash equivalent unless it is restricted from being exchanged or used to
settle a liability for at least 12 months after the reporting date.
Current assets include the current portion of non-current financial assets. All other
assets are classified as non-current.
327
Liabilities
A liability is classified as current when it satisfies any of the following criteria:
• It is expected to be settled in the Group’s normal operating cycle;
• It is due to be settled within 12 months after the reporting date; or
• The Group does not have an unconditional right to defer settlement of the liability
for at least 12 months after the reporting period. Terms of a liability that could,
at the option of the counterparty, result in its settlement by the issue of equity
instruments do not affect its classification.
Current liabilities include the current portion of financial liabilities some part of
which may be non-current. All other liabilities are classified as non-current.
Deferred tax assets are classified as non-current assets.
Operating cycle
The operating cycle is the time between the acquisition of assets for processing and
their realisation in cash or cash equivalents. Based on the nature of operations and
the time between the acquisition of assets for processing and their realization in cash
and cash equivalents, the Group has ascertained its operating cycle being a period
of 12 months for the purpose of classification of assets and liabilities as current and
non-current.
b) Foreign currency transactions and translations
Monetary and non-monetary transactions in foreign currencies are initially recorded
in the functional currency of the Group at the exchange rates at the dates of the
transactions or at average rates if the average rate approximates the actual rate at the
date of the transaction.
Monetary foreign currency assets and liabilities remaining unsettled on reporting
date are translated at the rates of exchange prevailing on the reporting date. Gains/
(losses) arising on account of realisation/settlement of foreign exchange transactions
and on translation of monetary foreign currency assets and liabilities are recognised
in the statement of profit and loss.
c) Fair value measurement
Fair value is the price that would be received to sell an asset or paid to transfer a
liability in an orderly transaction between market participants at the measurement
date. The fair value measurement is based on the presumption that the transaction to
sell the asset or transfer the liability takes place either –
• In the principal market for the asset or liability, or
• In the absence of a principal market, in the most advantageous market for the asset
or liability
328

The principal or the most advantageous market must be accessible to/ by the Group.
The fair value of an asset or a liability is measured using the assumptions that market
participants would use when pricing the asset or liability, assuming that market
participants act in their economic best interest. A fair value measurement of a non-
financial asset takes into account a market participant’s ability to generate economic
benefits by using the asset in its highest and best use or by selling it to another market
participant that would use the asset in its highest and best use.
The Group uses valuation techniques that are appropriate in the circumstances and
for which sufficient data are available to measure fair value, maximising the use of
relevant observable inputs and minimising the use of unobservable inputs.
All assets and liabilities for which fair value is measured or disclosed in the
consolidated financial statements are categorised within the fair value hierarchy,
described as follows, based on the lowest level input that is significant to the fair
value measurement as a whole:
Level 1 — Quoted (unadjusted) prices in active markets for identical assets or liabilities
Level 2 — Valuation techniques for which the lowest level input that is significant to
the fair value measurement is directly or indirectly observable
Level 3 — Valuation techniques for which the lowest level input that is significant to
the fair value measurement is unobservable
Fair values of financial instruments at each reporting date are disclosed in Notes 51.
d) Financial instruments
A financial instrument is any contract that gives rise to a financial asset of one entity
and a financial liability or equity instrument of another entity.
i. Financial assets
All financial assets are initially recognised when the Group becomes a party to the
contractual provisions of the instrument. All financial assets are initially measured at
fair value plus, in the case of financial assets not recorded at fair value through profit
or loss, transaction costs that are attributable to the acquisition of the financial asset.
Classification
For the purpose of subsequent measurement, the Group classifies financial assets in
following categories:
• Financial assets at amortised cost
• Financial assets at fair value through profit or loss (FVTPL)
329
A financial asset being a ‘debt instrument’ is measured at amortised cost if both of the
following conditions are met:
• The financial asset is held within a business model whose objective is to hold
assets for collecting contractual cash flows, and
• The contractual terms of the financial asset give rise on specified dates to cash
flows that are solely payments of principal and interest (SPPI) on the principal
amount outstanding.
A financial asset being an equity instrument is measured at FVTPL.
All financial assets not classified as measured at amortised cost are measured at
FVTPL. On initial recognition, the Group may irrevocably designate a financial asset
that otherwise meets the requirements to be measured at amortised cost or at FVOCI
(Fair value through Other Comprehensive Income) or at FVTPL if doing so eliminates
or significantly reduces an accounting mismatch that would otherwise arise.
Subsequent measurement
Financial assets at amortised cost: These assets are subsequently measured at
amortised cost using the effective interest method. The amortised cost is reduced
by impairment losses, if any. Interest income and impairment are recognised in the
statement of profit and loss.
Financial assets at FVTPL: These assets are subsequently measured at fair value. Net
gains and losses, including any interest income, are recognised in the statement of
profit and loss.
Derecognition
The Group derecognises a financial asset when the contractual rights to the cash flows
from the financial asset expire, or it transfers the rights to receive the contractual cash
flows in a transaction in which substantially all of the risks and rewards of ownership
of the financial asset are transferred or in which the Group neither transfers nor
retains substantially all of the risks and rewards of ownership and it does not retain
control of the financial asset. Any gain or loss on derecognition is recognised in the
Impairment
The Group recognizes loss allowances using the Expected Credit Loss (ECL) model
for the financial assets which are not fair valued through profit or loss. Loss allowance
for trade receivables with no significant financing component is measured at an
amount equal to lifetime ECL. For all other financial assets, expected credit losses are
measured at an amount equal to the 12-month ECL, unless there has been a significant
increase in credit risk from initial recognition, in which case those financial assets
are measured at lifetime ECL. The changes (incremental or reversal) in loss allowance
330

computed using ECL model, are recognised as an impairment gain or loss in the
Write-off
The gross carrying amount of a financial asset is written off (either partially or in full)
to the extent that there is no realistic prospect of recovery. This is generally the case
when the Group determines that the counterparty does not have assets or sources
of income that could generate sufficient cash flows to repay the amounts subject to
the write-off. However, financial assets that are written off could still be subject to
enforcement activities in order to comply with the Group’s procedures for recovery
of amounts due.
ii. Financial liabilities
All financial liabilities are initially recognised when the Group becomes a party to the
contractual provisions of the instrument. All financial liabilities are initially measured
at fair value minus, in the case of financial liabilities not recorded at fair value through
profit or loss, transaction costs that are attributable to the liability.
Financial liabilities are classified as measured at amortised cost.
Financial liabilities are subsequently measured at amortised cost using the effective
interest method. Interest expense is recognised in the statement of profit and loss.
Any gain or loss on derecognition is also recognised in the statement of profit and
loss.
Derecognition
The Group derecognises a financial liability when its contractual obligations are
discharged or cancelled, or expire.
The Group also derecognises a financial liability when its terms are modified and the
cash flows under the modified terms are substantially different. In this case, a new
financial liability based on modified terms is recognised at fair value. The difference
between the carrying amount of the financial liability extinguished and the new
financial liability with modified terms is recognised in the statement of profit and
loss.
iii. Offsetting
Financial assets and financial liabilities are offset and the net amount presented in the
Balance Sheet when, and only when, the Group currently has a legally enforceable
right to set off the amounts and it intends either to settle them on a net basis or to
realise the assets and settle the liabilities simultaneously.
331
e) Equity share capital

Proceeds from issuance of ordinary shares are recognised as equity share capital in
equity. Incremental costs directly attributable to the issuance of new equity shares are
recognized as a deduction from equity, net of any tax effects.
f) Cash and cash equivalents
Cash and cash equivalents in the balance sheet comprise cash at banks and on hand,
short-term deposits with an original maturity of three months or less, which are subject
to an insignificant risk of changes in value, and bank overdrafts. Bank overdrafts are
shown within borrowings in current liabilities in the balance sheet.
g) Property, plant and equipment
Items of property, plant and equipment are measured at cost, which includes capitalised
borrowing costs, less accumulated depreciation and accumulated impairment losses,
if any.
Cost of an item of property, plant and equipment comprises its purchase price,
including import duties and non-refundable purchase taxes, after deducting trade
discounts and rebates, any directly attributable cost of bringing the item to its working
condition for its intended use and estimated costs of dismantling and removing the
item and restoring the site on which it is located.
The cost of a self-constructed item of property, plant and equipment comprises the
cost of materials and direct labor, any other costs directly attributable to bringing the
item to working condition for its intended use, and estimated costs of dismantling
and removing the item and restoring the site on which it is located.
If significant parts of an item of property, plant and equipment have different useful
lives, then they are accounted for as separate items (major components) of property,
plant and equipment.
i. Assets are capitalised to the extent completion certificates have been obtained,
wherever applicable.
ii. Apparatus and plants principally consisting of telephone exchanges,
transmission equipment and air conditioning plants etc. are capitalised as and
when an exchange is commissioned.
iii. Cables are capitalised as and when ready for connection to the main system.
iv. Gains and losses on disposals are determined by comparing proceeds with
carrying amount. These are included in the statement of profit and loss within
other gains/(losses).
v. Spares parts costing above INR 200,000 per unit and which meet the definition
332

of property, plant and equipment are capitalised.

Capital work-in-progress includes assets under construction and cost attributable to
construction of assets not ready for use before the year end.
On transition to Ind AS, the Group has elected to selectively fair value its freehold
land. The Group has considered the fair value as deemed cost at the transition date,
viz., 1 April 2015.
All other remaining property, plant and equipment are carried at cost which is
recomputed retrospectively as per Indian Accounting Standard 16. ‘Property, plant
and equipment’.
Subsequent expenditure are included in the asset’s carrying amount or recognised
as a separate asset, as appropriate, only when it is probable that future economic
benefits associated with the item will flow to the Group and the cost of the item can
be measured reliably. The carrying amount of any component accounted for as a
separate asset is derecognised when replaced.
All other repairs and maintenance are charged to the statement of profit and loss
during the reporting period in which they are incurred.
Depreciation methods, estimated useful lives and residual value
i. Depreciation on property, plant and equipment has been provided as per
guidance set out in Schedule II of the Companies Act, 2013 on written down
value (WDV) method except in respect of the assets mentioned in (ii) and (iii)
below.
ii. Assets costing up to INR 5,000 are depreciated fully in the year of purchase.
Similarly, partition works and paintings costing up to INR 200,000 are
depreciated fully in the year of construction/ acquisition.
iii. The depreciation on machinery and tools used both for project and maintenance
work is charged to the statement of profit and loss instead of capitalization.
iv. All telephone exchange buildings, administrative offices and captive
consumption assembling premises/workshops are considered as buildings
(other than factory building). Accordingly, depreciation is charged uniformly.
v. Assets acquired under finance leases are depreciated over the shorter of the
lease term and their useful lives unless it is reasonably certain that the Group
will obtain ownership by the end of the lease term. Freehold land is not
depreciated.
vi. Depreciation method, useful lives and residual values are reviewed at each
reporting period end.
333
h) Assets held for sale

Non-current assets are classified as assets held for sale if it is highly probable that
they will be recovered primarily through sale rather than through continuing use.
Assets classified as held for sale are stated at the lower of carrying amount and the
net realisable value.
Assets classified as held for sale are presented separately in the balance sheet.
i) Intangible assets
Intangible assets are recognised if it is probable that the future economic benefits
attributable to the assets will flow to the enterprise and cost of the asset can be
measured reliably in accordance with the notified Indian Accounting Standard – 38 ,
‘Intangible Assets’.
Intangible assets acquired separately are measured on initial recognition at cost.
Following initial recognition, intangible assets are carried at cost less any accumulated
amortisation and accumulated impairment losses.
On transition to Ind AS, the Group has elected to continue with the carrying value
of all of its intangible assets recognised as at 1 April 2015, measured as per the
consolidated financial statements prepared in accordance with the accounting
standards notified under Companies (Accounting Standards) Rules, 2006 (Previous
GAAP) and use that carrying value as the deemed cost of such intangible assets.
Subsequent expenditure is capitalised only when it increases the future economic
benefits embodied in the specific asset to which it relates.
Amortisation
a) Intangible assets with finite lives are amortised over the useful economic life
and assessed for impairment whenever there is an indication that the intangible
asset may be impaired.
b) 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.
c) 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.
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1) License fee
i. Acquired licenses, including one time spectrum fee for telecom service operations,
are initially recognised at cost.
ii. The revenue-share fee on licenses and spectrum is computed as per the licensing
agreement and is expensed as incurred.
iii. Amortisation is recognised in the statement of profit and loss on a straight-line basis
over the unexpired period of the license commencing from the date when the related
network is available for intended use.
Intangible assets such as entry license fee, one-time Spectrum fee for telecom service
operations are amortised over the license period (i.e. 20 years) and standalone
computer software applications are amortised over the license period (subject to
maximum 10 years) using the straight line method.
2) Computer software
Costs associated with maintaining software programs are recognised as an expense as
incurred.
j) Inventories
Inventory is valued at the lower of cost and net realizable value. Cost is determined
on weighted average method.
Inventory costs include purchase price, freight inward and transit insurance charges.
Net realisable value is the estimated selling price in the ordinary course of business,
less estimated costs of completion and the estimated costs necessary to make the
sale.
The Group provides for obsolete and slow-moving inventory based on management
estimates of the usability of inventory.
k) Impairment of non-financial assets
The Group assesses, at each reporting date, whether there is an indication that an
asset may be impaired. If any indication exists, or when annual impairment testing for
an asset is required, the Group estimates the asset’s recoverable amount. An asset’s
recoverable amount is the higher of an asset’s fair value or cash-generating unit’s
(CGU) fair value less costs of disposal and its value in use.
Recoverable amount is determined for an individual asset, unless the asset does not
generate cash inflows that are largely independent of those from other assets or groups
of assets. When the carrying amount of an asset or CGU exceeds its recoverable
amount, the asset is considered impaired and is written down to its recoverable
amount.
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l) Employee benefits
i. Short-term obligations
All employee benefits payable / available within twelve months of rendering the
service such as salaries, wages and bonus etc., are classified as short-term employee
benefits and are recognised in the statement of profit and loss in the period in which
the employee renders the related service.
ii. Defined contribution plans
A defined contribution plan is a post-employment benefit plan under which an entity
pays fixed contributions into a separate entity and will have no legal or constructive
obligation to pay further amounts. Obligations for contributions to defined contribution
plans are recognised as an employee benefits expense in the statement of profit and
loss in the periods during which the related services are rendered by employees. The
Group makes specified contributions towards the following schemes:
Pension Contribution (including gratuity)
The employees of DoT who have opted for absorption / absorbed in the Group and
the employees on deemed deputation from Government are eligible for pension,
which is a defined contribution plan. The Group makes monthly contribution
(including liability on account of gratuity) at the applicable rates as per Government
Pension Rules, 1972 and Fundamental Rules and Supplementary Rules (FR & SR), to
the Government who administers the same. These contributions are expensed in the
statement of profit and loss as and when incurred.
Employees’ provident fund
All directly recruited employees of the Group are entitled to receive benefits under
the provident fund, a defined contribution plan. Both employee and employer make
monthly contribution to the plan at a predetermined rate of employee’s basic salary
and dearness allowance. These contributions to provident fund are administered
by the provident fund commissioner. Employer’s Contribution to provident fund is
expensed in the statement of profit and loss as and when incurred.
Contribution for leave salary
For employees on deemed deputation from Government, leave salary contribution
is paid by the Group to DoT/ Government for the deputation period in accordance
with FR115 (b) of FR&SR Part I. Consequently, the liability for the leave salary
payable for those on deputation/ deployment during the period of leave rests with the
Government. Further, any leave encashment after quitting service is the responsibility
of the Government. These contributions are expensed in the statement of profit and
loss as and when incurred.
336

Contribution for superannuation fund

All regular employees of the Group except apprentices, absorbed employees of
Department of Telecommunications (DOT)/ Department of Telecom Services (DTS)/
Department of Telecom Operations (DTO) who are already covered by Rule 37-A of
Central Civil Services (Pension) Rules 1972, the employees who are not on the regular
rolls of the Group and employees posted on deputation in the Group are entitled to
receive benefits under the BSNL Employees Superannuation Pension Scheme, which
is a defined contribution plan. The Group makes monthly contribution to the BSNL
Employees Superannuation Pension Fund Trust at the applicable rates.
These contributions are expensed in the statement of profit and loss as and when
incurred.
iii. Defined benefit plans
A defined benefit plan is a post-employment benefit plan other than a defined
contribution plan.
Gratuity
The Group provides for gratuity, a defined benefit plan (the Gratuity Plan) covering
all directly recruited eligible employees. In accordance with the payment of Gratuity
Act, 1972, the Gratuity plan provides a lump sum payment to vested employees on
retirement, death, incapacitation or termination of employment.
The calculation of defined benefit obligation is performed annually by a qualified
actuary separately for each plan using the projected unit credit method, which
recognises each year of service as giving rise to an additional unit of employee benefit
entitlement and measures each unit separately to build up the final obligation.
The obligation is measured at the present value of estimated future cash flows. The
discount rates used for determining the present value of obligation for the defined
benefit plans, is based on the market yields on Government securities as at the
balance sheet date, having maturity periods approximating to the terms of related
obligations.
Remeasurements, comprising of actuarial gains and losses, the effect of the asset
ceiling, excluding amounts included in net interest on the net defined benefit, are
recognised immediately in the balance sheet with a corresponding debit or credit to
retained earnings through other comprehensive income in the period in which they
occur.
Remeasurements are not reclassified to the statement of profit and loss in subsequent
periods.
The Group determines the net interest expense/ (income) on the net defined benefit
liability/ (asset) for the period by applying the discount rate used to measure the
337
Bhart Sanchar Nigam United
(All amounts in `. lacs, unless otherwise stated)
defined benefit obligation at the beginning of the annual period to the then-net
defined benefit liability/ (asset), taking into account any changes in the net defined
benefit liability/ (asset) during the period as a result of contributions and benefit
payments. Net interest expense and other expenses related to defined benefit plans
are recognised in the statement of profit and loss.
Other benefits including post-employment medical care
Medical reimbursements and other personal claim bills of existing / retired employees
are accounted for on actual basis in respect of bills received till the cut off period in
the accounts at the concerned primary units as per the prescribed limits.
iv. Other long term employment obligations
The liabilities for compensated absences and half pay leaves are not expected to
be settled wholly within twelve 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, calculation for which is performed
annually by a qualified actuary.
The liability is measured at the present value of estimated future cash flows. The
discount rates used for determining the present value of the liability are based on the
market yields on Government securities as at the balance sheet date, having maturity
periods approximating to the terms of related liabilities.
Remeasurements as a result of experience adjustments and changes in actuarial
assumptions are recognised in the statement of profit and loss.
m) Provisions
Provisions are recognised when the Group 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.
Provisions are measured at management’s best estimate of the expenditure required
to settle the present obligation at the end of the reporting period., 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.
Decommissioning liability
The Group records a provision for decommissioning costs for those operating lease
arrangements where the Group has a binding obligation at the end of the lease period
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to restore the leased premises in a condition similar to that at the inception of lease.
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
recognised in the income statement as a finance cost.
The estimated future costs of decommissioning are reviewed annually and adjusted
as appropriate. Changes in the estimated future costs are added to or deducted from
the cost of the asset.
n) Contingent liabilities
A contingent liability is a possible obligation that arises from past events whose
existence will be confirmed by the occurrence or non-occurrence of one or more
uncertain future events not wholly within the control of the Group or a present
obligation that is not recognised because it is not probable that an outflow of resources
embodying economic benefits will be required to settle the obligation or the amount
of the obligation cannot be measured with sufficient reliability. Information on
contingent liabilities is disclosed in the notes to the consolidated financial statements,
unless the possibility of an outflow of resources embodying economic benefits is
remote.
o) Revenue recognition
Revenue is recognised to the extent that it is probable that the economic benefits will
flow to the Group and the revenue can be reliably measured. Revenue is measured
at the fair value of the consideration received/receivable net of discounts and other
applicable taxes.
The Group assesses its revenue arrangements against specific criteria, i.e., whether it
has exposure to the significant risks and rewards associated with the sale of goods or
the rendering of services, in order to determine if it is acting as a principal or as an
agent.
Service revenues
Revenue from services includes amount invoiced for fixed monthly charges,
usage charges, messaging services, internet services, bandwidth services, roaming
charges, activation fees, processing fees, connection fees and fees for value added
services (VAS). Service revenues also includes revenue associated with access and
interconnection for usage of the telephone network of other operators for local,
domestic long distance and international calls.
Revenue from services are recognised when services are rendered and are stated
net of discounts and taxes. Prepaid revenue from Subscriber Identity Modules (SIMs)
recharge coupons of mobile, prepaid calling cards and prepaid internet connection
339
cards are treated as income of the year in which the payment is received since the
extent of use of these cards within the financial year cannot be ascertained.
Processing fees, activation fees and connection fees are recognised as income in the
year in which the payment is received.
Installation charges received from subscribers at the time of new connection are
recognised as income in the first year of the billing.
Un-billed revenues from the billing date to the end of the year are recorded as accrued
revenue during the period in which the services are provided.
In terms of the arrangement between Department of Telecommunications (‘DoT’)
and the Group, the charges for telecommunication services and other infrastructural
services provided by the Group to DoT are neither billed nor accounted for.
The claims receivable on account of provision of infrastructure, operation and
maintenance of Village Public Telephones (VPTs) and Rural Household Connections
(RDELs) etc. and operational sustainability of rural wire line network from Universal
Service Obligation (USO) fund are accounted for as other operating income.
Wherever there is uncertainty in realisation of income, such as claims on Government
departments and local authorities etc., these are recognised on realisation basis.
Construction contracts
Contract revenue includes the initial amount agreed in the contract plus any variations
in contract work, claims and incentive payments, to the extent that it is probable that
they will result in revenue and can be measured reliably.
If the outcome of a construction contract can be estimated reliably, contract revenue
is recognised in profit or loss in proportion to the stage of completion of the contract.
The stage of completion is assessed by reference to surveys of work performed.
Otherwise, contract revenue is recognised only to the extent of contract costs incurred
and centage that are likely to be recoverable.
Contract costs are recognised as expenses as incurred unless they create an asset
related to future contract activity. An expected loss on a contract is recognised
immediately in the statement of profit or loss.
Equipment sales
Revenues from equipment sales are recognised when the significant risks and rewards
of ownership are transferred to the buyer.
Multiple element arrangements
In revenue arrangements including more than one deliverable, the arrangements are
divided into separate units of accounting. Deliverables are considered separate units
of accounting if the following two conditions are met:
340

a. the deliverable has value to the customer on a stand-alone basis; and

b. there is evidence of the fair value of the item.
Total consideration related to the multiple element arrangements is allocated among
the different components based on their relative fair values (i.e., ratio of the fair value
of each element to the aggregated fair value of the bundled deliverables).
Interest income
Interest income from debt instruments is recognised using the effective interest rate
method. The effective interest rate is the rate that exactly discounts estimated future
cash receipts through the expected life of the financial asset to the gross carrying
amount of a financial asset.
Other income by way of interest on loans to employees, security deposits with
Government departments and local authorities, being not material, are accounted for
on collection basis.
Other income
Sale proceeds of scrap arising from maintenance and project works are recognised as
other non-operating income in the year of sale.
Liquidated damages received as compensation for loss of revenue arising as a
consequence of contract delays are recognised in the statement of profit and loss
on accrual basis wherever there is certainty of realisation. However, liquidated
damages recovered in relation to efficiency and as a result of delays by the supplier
are deducted from the relevant cost.
In case liquidated damages are related to efficiency and performance of the asset:
Liquidated damages are reduced from the cost of the related asset or relevant expense.
In case liquidated damages linked to loss of revenue:
Liquidated damages are recognised as income if the contract specifies that liquidated
damages will be recoverable as compensation for loss of revenue arising from contract
delays, and the basis of calculation is clearly related to income lost.
p) Government grants
Government grants are recognised at their fair value where there is reasonable
assurance that the grant will be received and all attached conditions will be complied
with.
Government grants relating to income are deferred and recognised in the statement
of profit and loss over the period necessary to match them with the costs that they are
intended to compensate and presented within other income.
Government grants relating to the purchase of property, plant and equipment are
341
included in other liabilities as deferred income and are credited to the statement of
profit and loss in proportion to the depreciation expense over the expected lives of
the related property, plant and equipment and presented within other income.
q) Leases
i. Determining whether an arrangement contains a lease
The determination of whether an arrangement is, or contains, a lease is based on the
substance of an arrangement at inception date: whether fulfillment of the arrangement
is dependent on the use of a specific asset or assets and the arrangement conveys a
right to use the asset, even if that right is not explicitly specified in an arrangement.
At inception or on reassessment of the arrangement that contains a lease, the payments
and other consideration required by such an arrangement are separated into those for
the lease and those for other elements on the basis of their relative fair values.
ii. Where the Group is the lessee
Leases in which a significant portion of the risks and rewards of ownership are not
transferred to the Group as lessee are classified as operating leases. Payments made
under operating leases (net of any incentives received from the lessor) are charged
to the statement of profit and loss on a straight-line basis over the period of the lease
unless the payments are structured to increase in line with expected general inflation
to compensate for the lessor’s expected inflationary cost increases.
Leases of property, plant and equipment where the Group, as lessee, has substantially
all the risks and rewards of ownership are classified as finance leases. Finance leases
are capitalised at the lease’s inception at the fair value of the leased property or, if
lower, the present value of the minimum lease payments. The corresponding rental
obligations, net of finance charges, are included in borrowings or other financial
liabilities as appropriate. Each lease payment is allocated between the liability and
finance cost. The finance cost is charged to the statement of profit and loss over the
lease period so as to produce a constant periodic rate of interest on the remaining
balance of the liability for each period.
Leased assets are depreciated on WDV method over the useful life of the asset.
However, if there is no reasonable certainty that the Group will obtain ownership by
the end of the lease term, the asset is depreciated on WDV method over the shorter
of the estimated useful life of the asset or the lease term.
iii. Where the Group is the lessor
Leases in which the Group does not transfer substantially all the risks and rewards
incidental to ownership of the asset are classified as operating leases. Lease income
from operating leases where the Group is a lessor is recognised in income on a
straight-line basis over the lease term unless the receipts are structured to increase in
line with expected general inflation to compensate for the expected inflationary cost
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increases. The respective leased assets are included in the Balance Sheet based on
their nature.
r) Borrowing costs
Borrowing costs include interest and other costs incurred in connection with the
borrowing of funds.
Borrowing costs (for general and specific borrowings) directly attributable to
acquisition or construction of an asset which necessarily take a substantial period of
time (qualifying assets) to get ready for their intended use are capitalised as part of the
cost of that asset. Other borrowing costs are recognised as an expense in the period
in which they are incurred.
Investment income earned on the temporary investment of specific borrowings
pending their expenditure on qualifying assets is deducted from the borrowing costs
eligible for capitalisation.
s) Income tax
Income tax expense comprises current and deferred tax. It is recognised in statement
of profit and loss, except to the extent that it relates to items recognised directly in
equity or in other comprehensive income.
Current tax
Current tax comprises the expected tax payable or receivable on the taxable income
or loss for the year and any adjustment to the tax payable or receivable in respect of
previous years. The amount of current tax reflects the best estimate of the tax amount
expected to be paid or received after considering the uncertainty, if any, related to
income taxes. It is measured using tax rates (and tax laws) enacted or substantively
enacted by the reporting date.
Current tax assets and current tax liabilities are offset only if there is a legally
enforceable right to set off the recognised amounts, and it is intended to realise the
asset and settle the liability on a net basis or simultaneously.
Deferred tax
Deferred tax is recognised in respect of temporary differences between the carrying
amounts of assets and liabilities for financial reporting purposes and the amounts
used for taxation purposes.
Deferred tax is recognised in the statement of profit and loss, except to the extent that
it relates to items recognised in other comprehensive income or directly in equity.
In this case, the tax is also recognised in other comprehensive income or directly in
equity, respectively.
Deferred tax assets are recognised for unused tax losses, unused tax credits and
deductible temporary differences to the extent that is it probable that future taxable
343
profits will be available against which they can be used. Future taxable profits are
determined based on reversal of temporary differences. Deferred tax assets are
reviewed at each reporting date and are reduced to the extent that it is no longer
probable that the related tax benefit will be realised; such reductions are reversed
when the probability of future taxable profits improves.
Unrecognised deferred tax assets are reassessed at each reporting date and recognised
to the extent that it has become probable that future taxable profits will be available
against which they can be used.
Deferred tax is measured at the tax rates that are expected to apply to the period
when the asset is realised or the liability is settled, based on the laws that have been
enacted or substantively enacted by the reporting date.
The measurement of deferred tax reflects the tax consequences that would follow
from the manner in which the Group expects, at the reporting date, to recover or
settle the carrying amount of its assets and liabilities.
Deferred tax assets and liabilities are offset if there is a legally enforceable right to
offset current tax liabilities and assets, and they relate to income taxes levied by the
same tax authority on the same taxable entity, or on different tax entities, but they
intend to settle current tax liabilities and assets on a net basis or their tax assets and
liabilities will be realised simultaneously.
Minimum Alternative Tax (‘MAT’) expense under the provisions of the Income-tax
Act, 1961 is recognised as an asset when it is probable that future economic benefit
associated with it in the form of adjustment of future income tax liability, will flow to
the Group and the asset can be measured reliably. MAT credit entitlement is set off
to the extent allowed in the year in which the Group becomes liable to pay income
taxes at the enacted tax rates. MAT credit entitlement is reviewed at each reporting
date and is written down to reflect the amount that is reasonably certain to be set off
in future years against the future income tax liability.
t) Earnings per share
The Group presents basic and diluted earnings/ (loss) per share (EPS) data for its
equity shares. Basic EPS is calculated by dividing the profit or loss attributable to
equity shareholders of the Group by the weighted average number of equity shares
outstanding during the year.
Diluted EPS amounts are calculated by dividing the profit attributable to equity
holders of the parent (after adjusting for interest on the convertible preference shares)
by the weighted average number of equity shares outstanding during the year plus
the weighted average number of equity shares that would be issued on conversion of
all the dilutive potential equity shares into equity shares.
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u) Prior period items

Items of income or expenditure exceeding INR 5,00,000 are considered for being
treated as prior period items.
v) Segment reporting
Information reported to the Board of Directors who are considered as the Chief
Operating Decision Maker (CODM) for the purposes of resource allocation and
assessment of segment performance focuses on the types of services provided. The
Board of Directors of the Company have chosen to organise the Group around the
different services being provided. Operating segments have been aggregated based
on similar risks and rewards and on fulfilment of other aggregation criteria.
CODM has identified primary segments which comprise of ‘Basic’, ‘Cellular’, ‘Broad
Band’ and ‘Enterprise’ services. The manufacturing activities have not been treated as
a separate segment since such activities are essentially carried on as support services
to other segments mainly for captive consumption.
The following specific accounting policies have been followed for segment
reporting:
i. Segment revenue includes service income and other income directly identifiable
with/ allocable to the segment.
ii. Income/ expense, which relates to the Group, as a whole and not allocable
to individual business segments is included in “Un-allocable income/expense
respectively”.
iii. Expenses that are directly identifiable with/allocable to segments are considered
for determining segment results.
iv. Segment assets and liabilities include those directly identifiable with the
respective segments. Un-allocable corporate assets and liabilities represent the
assets and liabilities that relate to the Group as a whole and not allocable to any
segment.
w) Recent accounting pronouncements
Ind AS 115, ‘Revenue from contract with customers’:
On 28th March 2018, Ministry of Corporate Affairs (“MCA”) has notified Ind AS 115,
‘Revenue from Contracts with Customers’. The core principle of the new standard
is that an entity should recognize revenue to depict the transfer of promised goods
or services to customers in an amount that reflects the consideration to which the
entity expects to be entitled in exchange for those goods or services. Further the
new standard requires enhanced disclosures about the nature, amount, timing
and uncertainty of revenue and cash flows arising from the entity’s contracts with
customers.
345
The standard permits two possible methods of transition:

• Retrospective approach - Under this approach the standard will be applied
retrospectively to each prior reporting period presented in accordance with Ind
AS 8. ‘Accounting Policies, Changes in Accounting Estimates and Errors’.
• Retrospectively with cumulative effect of initially applying the standard recognized
at the date of initial application (Cumulative catch - up approach).
The effective date for adoption of Ind AS 115 is financial periods beginning on or
after 1st April 2018.
The Group will adopt the standard on 1 April 2018 by using the cumulative catch-
up transition method and accordingly comparatives for the year ending or ended 31
March 2018 will not be retrospectively adjusted. The Group is currently assessing the
impact of this amendment.
Appendix B to Ind AS 21- Foreign currency transactions and advance consideration:
On 28 March 2018, MCA has notified the Companies (Indian Accounting Standards)
Amendment Rules, 2018 containing Appendix B to Ind AS 21, Foreign currency
transactions and advance consideration which clarifies the date of the transaction
for the purpose of determining the exchange rate to use on initial recognition of
the related asset, expense or income, when an entity has received or paid advance
consideration in a foreign currency.
The amendment will come into force from 1 April 2018. The Group has evaluated
the effect of this on the consolidated financial statements and the impact is not
considered to be material.
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3. Property, plant and equipment

(i) Tangible assets

Particulars As at 1 Disposals/ As at 31 As at 1 Disposals/ As at 31 As at 31 As at 1 April
Additions Additions
April 2017 adjustments March 2018 April 2017 adjustments March 2018 March 2018 2017
Free hold land 7,078,859 8,096 5,874 7,081,081 - - - - 7,081,081 7,078,859
Lease hold land 17,104 4 - 17,108 4,202 198 - 4,400 12,708 12,902
Buildings 801,156 4,463 1,822 803,797 408,321 19,942 525 427,738 376,059 392,835
Motor vehicles and launches 12,267 1,087 911 12,443 10,957 353 861 10,449 1,994 1,310
Cables and lines and wires-telecom ducts, 6,582,915 124,801 14,773 6,692,943 5,705,297 139,521 12,314 5,832,504 860,439 877,618
cables and optical fibre
347
General plant and machinery- other than 499,443 8,207 11,068 496,582 450,505 6,724 10,700 446,529 50,053 48,938
continuous process plant
Towers and satellites 677,123 19,128 9,872 686,379 475,104 33,723 4,962 503,865 182,514 202,019
Office machinery and equipment 18,338 1,030 507 18,861 17,106 440 470 17,076 1,785 1,232
Computer-end user devices 146,286 3,667 5,300 144,653 137,328 2,937 4,806 135,459 9,194 8,958
Computer-servers and networks 45,997 6,428 564 51,861 40,861 2,690 263 43,288 8,573 5,136

Decommissioned assets 88,572 - 88,572 - - - - - - 88,572
Total 23,199,407 495,609 348,023 23,346,993 13,115,404 519,628 219,401 13,415,631 9,931,362 10,084,003
Less: Provision for decommissioned assets - 68,307
9,931,362 10,015,696
(ii) Capital work-in-progress
Particulars As at 1 April 2017 Additions during the year Disposals/ adjustments As at 31 March 2018
Capital work-in-progress 240,225 324,142 316,405 247,962
Capital work-in-progress in store 436,506 888,222 671,804 652,924
Less: Provision for capital work-in-progress 2,833 5,742 821 7,754
Less: Provision for capital work-in-progress in store 24,663 8,346 10,261 22,748
Total 649,235 1,198,276 977,127 870,384
Notes:
a) In some cases, the title deeds of land purchased/acquired on leasehold/freehold from various authorities, are in the process of being executed.
b) Leasehold land disclosed is based on the identification by forty three circles.
c) Additions to property, plant and equipment include assets identified and taken over/(written back) by the Group in the current year, pertaining to
348
the assets being taken over from DoT as on 1 October 2000 INR Nil [refer note 37].
d) Additions in gross block include INR 92,481 lakh of employee remuneration and directly attributable administrative expenses capitalised during
the year.
e) The current year depreciation charged to statement of profit and loss excludes INR 177 lakh which has been capitalised into the cost of assets under
construction.
f) For details of assets pledged/ hypothecated as securities, refer note 22.
g) Physical verification of capital work-in-progress in store has been conducted by the management (except six circles) during the year and is
reconciled with the detailed records for capital work-in-progress in store. Wherever differences are found, the same are provided for. Further, in
Nil circles difference between the subsidiary ledger and the general ledger is identified and provided for in the current financial year.
h) Refer to note 48 for disclosure of contractual commitments for the acquisition of property, plant and equipment.
i) On transition to Ind AS, the Group has elected to measure certain items of its property, plant and equipment as at 1 April 2015 (date of transition to
Ind AS) at its fair value and use that fair value as its cost at that date. Accordingly, the Group has elected to selectively fair value its freehold land.
Hence, an increase of INR 6,986,449 lakh was recognised with a corresponding increase in retained earnings at the date of transition to Ind AS.
All other remaining property, plant and equipment are carried at cost which is recomputed retrospectively as per principles of Indian Accounting
Standard 16 (Property, plant and equipment).
j) The capitalisation rate used to determine the amount of borrowing costs to be capitalised is the weighted average interest rate applicable to the
Group’s general borrowings during the year, in this case 8.25%. Accordingly, the Group has capitalised borrowing cost during the year ended 31
March 2018 amounting to INR 57,873 lakh.
k) The Group has acquired certain leasehold lands under finance lease arrangements on lease terms for 30 to 99 years. The gross and net carrying
amounts of leasehold land acquired under finance lease and included in above are as follows:
As at 31 March 2018
Gross block 17,108
Accumulated depreciation 4,400
Net block 12,708
l) During the current year, the Company has changed the presentation for decommissioned assets and accordingly has reclassified the net carrying value of decommissioned assets from
‘Property, plant and equipment’ to ‘Assets held for sale’.
Further, the Company has carried out an internal assessment due to which certain reusable assets have been reclassified from ‘Assets held for sale’ to ‘Property, plant and equipment’. The
349
impact of the depreciation for the future years is impracticable to ascertain on the assets reclassified as property, plant and equipment (refer note 19).
4. Intangible assets
Particulars Gross block Accumulated depreciation Net block
As at 1 Additions Disposals/ As at 31 As at 1 Additions Disposals/ As at 31 As at 31 As at 1 April
April 2017 adjustments March 2018 April 2017 adjustments March 2018 March 2018 2017
Intangible assets
Computer softwares 35,981 6,593 567 42,007 9,160 4,803 65 13,898 28,109 26,821
Total 882,242 6,593 567 888,268 127,238 63,865 65 191,038 697,230 755,004

Notes:
a) On transition to Ind AS, the Group has elected to continue with the carrying value for all of intangible assets as at 1 April 2015 measured as per
the Previous GAAP and use that carrying value as the deemed cost of intangible assets.
5. Non-current financial assets - Investment
** The absolute value is INR 10 only.
6. Non-current financial assets - Loans

As at
Particulars
31 March 2018
Loans to employees (refer note below) 578
Loans to employees 5
583
Note: Assets (eg- house, vehicle, etc) are hypothecated against the loans to employees.
7. Other non-current financial assets

As at
Particulars
31 March 2018
Security deposits 22,718
Call detail record based claims recoverable 486
Earmarked deposits with banks (including bank guarantee, margin money, etc) (refer 825
note below)
24,029
Note: These earmarked deposits are for the purpose of securing various bank guarantees provided by the banks.
8. Deferred tax assets (net)
350

As at
Particulars
31 March 2018
Provision for gratuity 2,902
Provision for decommissioned assets 10,785
Provision for obsolete inventory and capital work-in-progress 6,496
Preliminary expenes 6,865
Disallowances under Section 43B of Income Tax Act, 1961 7,741
1,341,752
Difference in book written down value and tax written down value of property, plant 195,211
and equipment
195,211
Net deferred tax assets 1,146,541
Net deferred tax assets recognised -
In the absence of reasonable certainty of future taxable profits, the Group has not
recognised deferred tax assets (net) for the above periods (Refer note 50).
9. Other non-current assets

As at
Particulars
31 March 2018
Capital advances [Net of provisions INR 23,972 lakh] 55,481
Advances to contractors 29,703
85,184
10. Inventories
As at
Particulars
31 March 2018
Building materials 6
Raw material and scrap (at factory) 9,709
Finished goods and work-in-progress (at factory) 11,061
Finished stock (at various circles) 436
Other stores 222
21,434
Less: Provision for obsolete inventory/short inventory 193
Total inventories at the lower of cost and net realisable value* 21,241
*For further details, refer note 3 (ii).
351
11. Current financial assets - Investment
Note:
All the five installments of INR 4,000 lakh each are overdue for redemption of 7% redeemable cumulative
preference shares in respect of investment in ITI Limited at the end of the year and no dividend has been
received till date. ITI Limited will redeem preference shares to the Group immediately on release of
financial assistance by the Government of India to ITI Limited as a part of revival package. Accordingly,
the Group believes that the fair value of the investment is equal to the book value.
12. Current financial assets - Trade receivables
As at
Particulars
31 March 2018
Trade receivables 817,891
Less : Advance income booked but not collected 131,179
686,712
Less : Loss allowance for trade receivables 294,174
392,538
The Group’s exposure to credit and currency risks are disclosed in Note 51.
Note:
(a) In twenty circles, there are differences in the closing balance of trade receivables between the subsidiary
ledger and the general ledger. To the extent identified, the net differences between general ledger balances
and subsidiary ledger balances are INR 9,783 lakh. The management is in the process of reconciling these
differences.
(b) The classification of the trade receivables as secured and unsecured/considered good, to the extent
available as per subsidiary ledger is as follows:
Unsecured, considered good 522,474

Doubtful 285,634
808,108
352

13. Cash and cash equivalents

As at
Particulars
31 March 2018
Balances with banks
In current account including sweep-in-deposit 70,949
Deposits with original maturity of less than three months -
Cheques on hand 2,428
Cash on hand 2,405
75,782
For the purpose of statement of cash flows, Cash and cash equivalents comprise of
the following:
Cash and cash equivalents as per balance sheet 75,782
Bank overdraft (refer note 26) (30,910)
44,872
Note:
(a) In thirty five circles, unlinked credit items and in thirty five circles unlinked debit items are appearing
in the bank reconciliation statement as at 31 March 2018. Out of these thirty five circles have identified
unlinked credit items amounting to INR 362 lakh and thirty five circles have identified unlinked debit
items amounting to INR 646 lakh. The management is in the process of reconciling all such items in due
course.
(b Bank balances in thirteen circles includes cheques on hand pending to be deposited in bank as at 31
March 2018.
14. Bank balances other than cash and cash equivalents
Bank deposits with original maturity of more than three months but upto twelve 138
months* (including bank guarantee, margin money, etc.)
138
* These earmarked deposits are for the purpose of securing various bank guarantees provided by the banks.
15. Current financial assets - Loans

As at
Particulars
31 March 2018
Loans to employees (refer note (b) below) 207
Unsecured but considered good
Loans to employees 17
224
Note:
(a) In three circles, it has been noticed that there are differences in the subsidiary ledger of loans with those
appearing in general ledger. The management is in the process of reconciling these differences.
(b) Assets (eg- house, vehicle, etc) are hypothecated against the loans to employees.
353
16. Other current financial assets

As at
Particulars
31 March 2018
Amount due from customers for construction contracts, others 32,926
Accrued revenue 108,419
For employees on deputation 1,812
For defense telecom network project (net) -
Other recoverable (refer note 41) 243,013
Amount recoverable from Bharat Broadband Nigam Limited (net) 53,442
Government departments 3,350
Government companies (refer note (a) below) 242,484
Claims recoverable from others 84,956
Sales tax recoverable from customers 9
Service tax recoverable from customers 64,989
Goods and service tax (GST) recoverable from customers 45,292
Interest accrued
- on bank deposits 335
- on loans 58
- other 6
Call detail record based claims recoverable 23,889
Doubtful
Government companies 192,930
1,112,868
Less: Loss allowance for assets 192,930
919,938
Note:
(a) Includes claim recoverable from LIC amounting to INR 68,500 lakh on account of leave encashment
directly paid by the Group to the employees during the year ended 31 March 2018.
17. Current tax assets (net)

As at
Particulars
31 March 2018
Advance income-tax (refer note (a) below) 119,650
(Net of provision for income tax INR 168,19 lakh)
Advance fringe benefit tax -
119,650
354

Note:
(a) Pursuant to the decisions of the Appellate Authorities and the interpretations of other relevant provisions,
the Company has updated the provision for income tax. This has led to reduction of provision for income
tax related to earlier years by INR 80,249 lakh. This change in estimation of uncertain tax positions may
also have an impact on future current tax expense, the amount of which is impracticable to determine.
18. Other current assets

As at
Particulars
31 March 2018
Prepaid expenses 4,238
Balances with excise and other tax authorities (refer note (b) below) 56,712
Advances to contractors 15,747
Advances to employees 2,091
Other advances 1
Intra/inter circle remittances 7,919
86,708
Note:
(a) Cenvat on account of service tax, excise duty and custom duty on capital goods and inputs is under
reconciliation in some circles.
(b) Includes INR 1,517 lakh deposited on account of service tax audit.
(c) Refer note 45 for details of advances to related parties.
19. Assets held for sale

As at
Particulars
31 March 2018
Property, plant and equipment held for sale 69,085
Less: Provision for dimunition in the value of assets held for sale (34,568)
34,517
Note:
Assets held for sale includes various classes of property, plant and equipment which are retired from
active use and are held for the purpose of immediate sale. The Group intends to sell these assets through
Metals and Minerals Trading Corporation (MMTC), etc. as per defined procedures. The Group recognizes
assets held for sale at the lower of carrying amount and net realisable value, accordingly the gain or loss
on the assets held for sale is recorded in ‘Excess liabilities written back no longer required’ under ‘Other
income’ (refer note 32) and ‘Write off and losses (other than bad debts)’ under ‘Other expenses’ (refer note
36) respectively. These assets are included under respective segments under note 44 (also refer note 3(l)).
355
20. Share capital

Authorised Number of shares Amount
i. Equity shares of INR 10 each
Outstanding as at 1 April 2017 10,000,000,000 1,000,000
ii. 9% non-cumulative preference shares of INR 10 each*
* Refer note 22
As at 31 March 2018
Issued, subscribed and fully paid up Number of shares Amount
Equity shares of INR 10 each 5,000,000,000 500,000
5,000,000,000 500,000
a. Terms and rights attached to equity shares
The Company has only one class of shares referred to as equity shares each having a par value of INR
10 per share.
Vote of members: Every member present on person and being a holder of equity share shall have one
vote and every person either as a general proxy on behalf of a holder of equity share, shall have one vote
or upon a poll, every member shall have one vote for every share held by him. On poll, the voting rights
of holder of equity share shall be as specified in Section 47 of the Companies Act, 2013.
b. Reconciliation of number of shares outstanding at the beginning and at the end of the year :
c. Shareholders holding more than 5% shares in the company*
As at 31 March 2018
Number of shares Percentage
President of India 4,999,999,993 99.99%
* The above information is furnished as per the shareholder’s register as at the year end.
d. No shares have been issued for consideration other than cash pursuant to contract or allotted as fully
paid bonus shares in the current reporting year and in the last five years immediately preceding the
current reporting year. Further, there are no buy backs of any class of shares during the current reporting
year and in the last five years immediately preceding the current reporting year.
e. Division of profit : The profit of the Company, subject to any special rights relating thereto created or
authorised to be created by the articles subject to the provisions of the articles and also subject to the
provisions of Section 123 of the Companies Act, 2013 and, regarding transfer of the amount to reserve of
the Company, shall be divisible among the members with the approval of the President of India, in the
proportion of the amount of capital paid or credited as paid-up on the shares held by them respectively.
356

21. Other equity

As at
Particulars
31 March 2018
a. Capital reserve
Balance at the beginning of the year 4,021,118
Add: Addition/ deletion during the year -
Balance at the end of the year 4,021,118
b. General reserve
Balance at the beginning of the year 490,075
Add: Contingency reserve transferred to general reserve -
Balance at the end of the year 490,075
c. Contingency reserve
Balance at the beginning of the year -
Additions during the year -
Less: Contingency reserve transferred to general reserve -
Balance at the end of the year -
d. Retained earnings
Balance at the beginning of the year 4,657,913
Add: Loss for the year (799,560)
Items of other comprehensive income/ (expense) recognised directly in retained earnings
Remeasurement of post employment benefit obligation, net of tax (897)
Balance at the end of the year 3,857,456
e. Capital contribution from shareholder
Add: Addition/ deletion during the year -
Total other equity 8,466,967
Nature and purpose of reserve
i. Capital reserve
The capital reserve is created out of the difference between the total value of the assets taken over and
the long term identified liabilities and the capital structure, as on 1 October 2000 as communicated by
DoT. For details, refer note 37.
ii. General reserve
Under the erstwhile Companies Act 1956, a general reserve was created through an annual transfer of
net profit at a specified percentage in accordance with applicable regulations.
iii. Contingency reserve
The contingency reserve was created in the financial year 2003-04 by appropriation of profits to meet
various contingencies that may arise in future, based on the decision made by the board of directors.
iv. Capital contribution from shareholder
During the year ended 31 March 2015, the loan from the Government of India amounting to INR
98,318 lakhs was waived off vide letter no.1-43/2008-B, dated 11 April 2014 and the same was taken
to the capital reserve created at the time of formation of the Group.
357
22. Non-current financial liabilities - Borrowings
As at
Particulars
31 March 2018
Secured loans
Term loans from banks (refer note A below) 945,216
Less: Current maturities of non current borrowings (40,868)

904,348
7,500,000,000
9% non-cumulative preference shares of INR 10 each (refer note B below) 750,000
1,654,348
Refer note 45 for details of loans from related parties.
Information about Group’s exposure to interest rate and liquidity risks is included in Note 51.
A. Terms and repayment schedule of secured loans
(i) The term loans from the Union Bank of India, carry interest rate ranging from 8.00% p.a. to 8.50% p.a.
with quarterly rests, are repayable in quarterly instalments which would commence after 2 years from
the date of receipt of the first disbursement i.e. 31 March 2017 and 30 September 2017 respectively. The
aforementioned term loans are secured by pari-passu charge on all property, plant and equipment of the
Group other than land and building (both present and future). Outstanding amount as at 31 March 2018
is INR 27,011 lakh and INR 201,488 lakh respectively.
(ii) The term loan from the United Bank of India, carries interest rate ranging from 8.20% p.a. to 8.45% p.a.
with quarterly rests, is repayable in quarterly instalments which would commence after 2 years from the
date of receipt of the first disbursement i.e. 31 March 2017. The aforementioned term loan is secured by
pari-passu charge on all property, plant and equipment of the Group other than land and building (both
present and future). Outstanding amount as at 31 March 2018 is INR 63,968 lakh.
(iii) The term loan from the State Bank of India, carries interest rate ranging from 8.25% p.a. to 8.40% p.a.
with yearly rests, is repayable in quarterly instalments which would commence after 2 years from the
date of receipt of the first disbursement i.e. 31 March 2017. The aforementioned term loan is secured by
(iv) The term loans from the Punjab National Bank, carry interest rate ranging from 8.00% p.a. to 8.45% p.a.
with quarterly rests, are repayable in quarterly instalments which would commence after 2 years from
the date of receipt of the first disbursement i.e. 31 December 2015 and 31 March 2017 respectively. The
aforementioned term loana are secured by pari-passu charge on all property, plant and equipment of the
Group other than land and building (both present and future). Outstanding amount as at 31 March 2018
is INR 93,990 lakh and INR 99,999 lakh respectively.
(v) The term loans from the Jammu and Kashmir Bank, carry interest rate ranging from 8.05% p.a. to 8.50%
p.a. with quarterly rests, are repayable in quarterly instalments which would commence after 2 years
from the date of receipt of the first disbursement i.e. 31 December 2015 and 31 March 2017 respectively.
The aforementioned term loans are secured by pari-passu charge on all property, plant and equipment
of the Group other than land and building (both present and future). Outstanding amount as at 31 March
2018 is INR 46,990 lakh and INR 49,999 lakh respectively.
358

(vi) The term loan from the Canara Bank, carries interest rate ranging from 8.10% p.a. to 8.35% p.a. with
quarterly rests, is repayable in quarterly instalments which would commence after 2 years from the
date of receipt of the first disbursement i.e. 30 June 2017. The aforementioned term loan is secured by
(vii) The term loan from the Bank of Baroda, carries interest rate of 8.30% p.a. with yearly rests, is repayable
in quarterly instalments which would commence after 2 years from the date of receipt of the first
disbursement i.e. 31 March 2018. The aforementioned term loan is secured by pari-passu charge on
all property, plant and equipment of the Group other than land and building (both present and future).
Outstanding amount as at 31 March 2018 is INR 16,162 lakh.
B. 9% non-cumulative preference shares
During the financial year 2000-01, 7,500,000,000 preference shares were issued to Central Government
of India as fully paid with a par value of INR 10 per share. The preference shares are mandatorily
redeemable at par after twenty years from the date of issue of such shares and the Group is obliged to pay
holders of these shares dividends at the rate of 9% of the par amount per annum, subject to availability
of distributable profits.
Vote of members: The holder of preference share have a right to vote on resolution placed before the
Company which directly affects the rights attached to their preference shares and subject to aforesaid, the
holders of preference shares shall in respect of such capital be entitled to vote on every resolution placed
before the Company at a meeting if the dividend due on such capital or any part of such dividend remains
unpaid in respect of an aggregate period of not less than two years preceding the date of commencement
of the meeting and where the holders of any preference shares have a right to vote as aforesaid on any
resolution every such member personally present shall have one vote and on a poll his voting right in
respect of such preference share bears to the total paid up equity capital of the Company.
23. Other non-current financial liabilities

As at
Particulars
31 March 2018
Deposits from customers and others
181,781
The Group’s exposure to liquidity risks related to above financial liabilities is disclosed in Note 51.
24. Non-current provisions

As at
Particulars
31 March 2018
Provision for employee benefits
Gratuity (refer note 39) 9,248
Compensated absences (refer note 39) -
Half pay leaves (refer note 39) 4,435
Decommissioning liabilities 77,521
91,204
359
25. Other non-current liabilities

As at
Particulars
31 March 2018
Deferred government grant 65,097
65,097
Note :
(a) Since financial year 2005-06, an amount of INR 61,437 lakh (INR 17,000 lakh for wireline and INR
44,437 lakh for wireless services) has been received from Department of Information Technology (DIT)
for providing wireline and wireless connectivity to 41,500 common service centres.
(b) During the current, the Group has received grants related to Left Wing Extremist (LWE) project for
construction of property, plant and equipment.
26. Current financial liabilities - Borrowings

As at
Particulars
31 March 2018
Loan repayable on demand
Unsecured loan
Bank overdraft 30,910
30,910
Information about Group’s exposure to interest rate and liquidity risks is included in Note 51.
27. Current financial liabilities - Trade payables

As at
Particulars
31 March 2018
Total outstanding dues of Micro, small and medium enterprises (refer note (a) below) 3,055
Total outstanding dues other than Micro, small and medium enterprises:
Others 661,588
Claims payable to Mahanagar Telephone Nigam Limited (MTNL) (refer note (b) below) 110,990
Claims payable on interconnection usage charges (IUC) 7,356
782,989
The Group’s exposure to currency and liquidity risks related to trade payable is disclosed in Note 51.
360

Note:
(a) Twenty nine circles of the Company have identified Micro, Small and Medium Enterprises under the
Micro, Small and Medium Enterprises Development Act, 2006 (MSMED Act). The required information
in terms of section 22 of MSMED Act to the extent available in respect of twenty nine circles are given
below :
Principal amount remaining unpaid to any supplier as at the end of the accounting year 3,055
Interest due thereon remaining unpaid to any supplier as at the end of the accounting Nil
year
The amount of interest paid in terms of Section 16 of Micro, Small, Medium Enterprises Nil
Development Act, 2006 along with the amounts of the payment made to the supplier
beyond the appointed day
The amount of interest due and payable for the period of delay (which have been paid Nil
but beyond the appointed during the year) but without adding the interest specified
under Micro, Small, Medium Enterprises Development Act, 2006
The amount of interest accrued and remaining unpaid at the end of the accounting Nil
year
The amount of further interest due and payable even in the succeeding year, until Nil
such date when the interest dues as above are actually paid to small enterprise, for the
purpose of disallowance of a deductible expenditure under Section 23 of the Micro,
Small, Medium Enterprises Development Act, 2006
(b) The net claim receivable/payable as on 31 March 2018 from MTNL is subject to
confirmation and reconciliation.
28. Other current financial liabilities
As at
Particulars
31 March 2018
Current maturities of borrowings 40,868
After connection deposits 212,285
Deposits from customers and others 110,661
Claims payable to
DoT 31,085
Other government departments 1,942
License fee, spectrum charges and transponder charges payable 64,704
Other payables towards
Employees 11,399
Subscribers 28,674
Construction account 46,071
Services and others 150,787
698,476
The Group’s exposure to currency and liquidity risks related to above financial liabilities is disclosed in
Note 51.
361
29. Other current liabilities

As at
Particulars
31 March 2018
Deferred government grant (refer note 25) 30,071
Advances received from customers 377,918
Advances received for defense telecom network project (net) 162,065
Advances received for National Optical Fiber Network (NOFN) project (net) -
Income received in advance against services 147,797
Statutory dues
Tax deducted at source 18,014
Service tax (net) 24,357
GST (net) 35,352
Employees provident fund 5,292
Employees state insurance 14
Professional tax 256
Work contract tax and building and other construction workers welfare cess 455
Leave encashment of retired employees 4,988
Intra/inter circle remittances -
806,579
30. Short-term provisions

As at
Particulars
31 March 2018
Provision for employee benefits :
Gratuity (refer note 39) 53
Compensated absences (refer note 39) -
Half pay leaves (refer note 39) 792
Provision for others :
Wealth tax 312
1,157
31. Revenue from operations
362

For the year ended

Particulars
31 March 2018
Wireless in local loop (WLL) 3,448
Broad band services 490,414
Leased lines 295,820
Lease income from passive infrastructure 80,390
Interconnection usage charges (IUC) from other service providers 224,388
2,143,761
Other operating revenue
Revenue from construction contracts 3,706
Sale to third party from telecom factories 10,392
Profit from manufacturing activities of factories (refer note (a) and (b) below note 36) 8,446
Other operating income (refer notes (a) and (b) below) 95,736
Other 4,737
123,017
2,266,778
Note :
(a)(i) Other operating income represents subsidies from Universal Service Obligation Fund and DoT.
(ii) During the current year, the Group has booked income of INR 16,593 lakh on projects namely, LWE
project, NOFN project and Defence Project.
(b) Telephones disconnected due to non-payment are considered to be working for a period of 30 days from
the date of disconnection of outgoing facility. During this period, the incoming facility is provided and
fixed monthly charges are billed.
32. Other income
Particulars For the year ended

31 March 2018
Interest income on
Financial assets at amortised cost:
Deposits with banks 707
Loans 2,139
Other 2,787
Income tax refund 1,864
7,497
Other non-operating income
Profit on sale of property, plant and equipment (net) 12,796
Income from liquidated damages 1,238
Excess liabilities written back no longer required 151,624
Rent on staff quarters 2,925
363
For the year ended

Particulars
31 March 2018
Foreign exchange fluctuation loss (net) 35
Sale of scrap 28,821
Others including sale of publications, forms, waste paper, etc. 35,350
232,789
240,286
33. Employee benefits expense
For the year ended

Particulars
31 March 2018
Salaries, wages, allowances and other benefits 1,348,364
Expenses related to compensated absences (refer note (a) below) 19,324
Contribution towards pension 93,166
Contribution towards superannuation 9,831
Contribution towards employees provident fund 27,788
Contribution towards Employees State Insurance 45
Expense related to post-employment defined benefit plans (refer note 39) 8,404
Contribution towards leave salary 1,331
Half pay leaves 209
Medical expenses 56,718
Staff welfare expenses (refer note (b) below) 1,895
1,567,075
Less : Allocated to capital work-in-progress and others 83,351
1,483,724
Note :
(a) During the current year, leave encashment amounting to INR 88,678 lakh has been directly paid by the
Group to the employees.
(b) During the year, the Group has paid INR 162 lakh to Staff Welfare Board and INR 32 lakh to Sports and
Cultural Board for promoting welfare activities at various circles.
34. Finance costs
364

For the year ended

Particulars
31 March 2018
Loan 436
Others 499
Unwinding of discount on decommissioning liabilities 3,895
4,831
35. Depreciation and amortisation expense
For the year ended

Particulars
31 March 2018
Depreciation on property, plant and equipment 519,293
Amortisation on intangible assets 63,865
583,158
36. Other expenses

For the year ended
Particulars
31 March 2018
Rent 39,947
Lease charges 8,590
Rates and taxes 6,774
Preliminary expenses 275
Power and fuel 271,070
Insurance 425
Bank charges 357
Repairs and maintenance on:
Buildings 21,371
Plant and machinery 105,983
Cables 30,444
Others 19,622
Professional and consultancy charges 3,722
Payment to auditors (refer note 46) 350
Printing and stationery 5,012
Commission on franchise services 23,687
Advertisement 987
Business promotion and marketing expenses 19,770
Travelling expenses 7,370
Postage and courier charges 4,504
365
For the year ended

Particulars
31 March 2018
Security services 42,936
Vehicle running expenses (including hired vehicles) 30,007
Interconnection usage charges (IUC) to other service providers 126,570
Lease expense on passive infrastructure 93,131
Expenditure on services, goods and other expenses [refer note (c)] 180,072
Expenditure on LWE operation 25,733
Penalty for customer application form (CAF) verification 372
Write off and losses (other than bad debts) 24,904
Bad debt provision other than services 487
Bad debt written off 25,159
Loss allowance for trade receivables and disputed bills 19,642
Write off of unrecovered service tax/ GST 2,515
Expenditure on construction contracts 2,056
Hiring charges of machinery lines 390
1,144,234
Less : Allocated to capital project works and others 9,130
1,135,104
Note :
For the year ended

Particulars
31 March 2018
(a) Telecom factories manufacturing account :
Cost of material consumed 45,789
Direct expenses 5,812
Change in inventory (19,850)
Total (A) 31,751
Internal transfer (B) 40,197
Profit/ (loss) from manufacturing activities 8,446
(b) Prices for transfer of stock from telecom factories to circles for self- consumption are predetermined. The
predetermined rates include direct costs including overhead allocation at a fixed rate. This practice has
resulted in profit of INR 8,446 lakh for the year ended 31 March 2018 arising out of such transfer. The
said amount has been netted off against the administrative expenses in the statement of profit and loss for
the year since it is not possible to identify the individual items of stores, which have been capitalised or
expensed off.
(c) Consumption of stores and spare parts for the years ended 31 March 2018 is INR 14,371 lakh included in
expenditure on services and other expenses.
366

37. Assets and liabilities taken over from DoT

In pursuance of the Memorandum of Understanding (MOU), dated 30 September 2000 executed between
Government of India and the Company, all assets and liabilities in respect of business carried on by
Department of Telecom Services (DTS) and Department of Telecom Operations (DTO) were transferred to
the Company with effect from 1 October 2000 at a provisional value of INR 6,300,000 lakh and up to the
current financial year the Company has identified net assets of INR 6,325,201 lakh against it.
During the current financial year, based on physical verification of property, plant and equipment and
inventory and reconciliation of various heads of assets and liabilities in the subsidiary and general ledgers,
the management has found some facts which has resulted in increase/ decrease in the following assets and
liabilities taken over as on 1 October 2000 amounting to net increase in the assets of INR Nil.
Additions/
Up to 1 April Up to 31
Particulars (Deletions)
2017 March 2018
during the year
Assets
Property, plant and equipment 5,406,575 - 5,406,575
Total- A 6,821,756 - 6,821,756
Liabilities
Working expense liability as on 01 October 2000 43,472 - 43,472
Contractors bills payable as on 01 October 2000 16,593 - 16,593
Total-B 496,555 - 496,555
Net assets taken over by the Company (A-B) 6,325,201 - 6,325,201
Note:
1 The net assets and the contingent liabilities transferred to the Company as on 1 October 2000 are subject
to confirmation by DoT as regard to their value.
2 The capital structure for the Company concurred by the Ministry of Finance and conveyed by the Department
of Telecommunications vide their U.O. No. 1-2/2000-B (Pt.) dated 13 December 2001 has been treated as
consideration for transferring the above stated assets and liabilities and is as follows:
367
As at 1 Additions/ Total structure

October 2000 (Deletions) during as at 1 October
Particulars
(as on 1 April the year ended 31 2000 (as on 31
2017) March 2018 March 2018)
Equity 500,000 - 500,000
Adjustment made to the statement of profit and loss (1,517) - (1,517)
Total 6,325,201 - 6,325,201
Note:
1 The entire amount has been repaid in the previous years.

2 Represents the difference between the total value of the assets taken over and the long term identified
liabilities and the capital structure, as on 1 October 2000 as communicated by DoT.
3 In pursuance of clause 13 of agreement of transfer executed between the Government of India and the
Company dated 30 September 2000, all costs, charges and expenses including stamp duties, registration
charges, transfer duties, any other taxes, levies, duties or charges relating to or in connection with completion
of transfer of assets and liabilities shall be borne by the Government of India.
38. License and spectrum fee
1 License and spectrum fee for the year ended 31 March 2018 is INR 174,338 lakh.
2 During the financial year ended 31 March 2016, the formula for distribution of the revenue between
various components for CMTS Services has been changed. The formula adopted during financial year
2017-18 is as per the following percentage:

Basic services 70.72% - 17.58% 11.70% -
CMTS services - 64.08% 22.15% 1.25% 12.52%
3 Other income consists of interest accrued on income tax refund. From the financial year 2000-01 to financial
year 2010-11, the Group has paid excess income tax on the demands raised by Income Tax department.
Group has contested the demand with Income Tax authorities and has got refund order of income tax in the
previous financial year. In the opinion of the management, license fee is not payable on interest accrued
on income tax refund as this is not forming the part of investing activities of the Group.
39. Employee benefits
During the year, the Group has recognized following amounts in the statement of profit and loss :
368

i) Defined contribution plans

Contributions to defined contribution plans i.e. employer’s contribution to provident fund, Employees
State Insurance, pension contribution paid to the Government of India and superannuation contribution
paid to Life Insurance Corporation Of India for the year is charged to the statement of profit and loss. These
amounts are shown as under:
For the year ended

31 March 2018
Employer’s contribution to provident fund 27,788
Pension contribution to the Government of India 93,166
Employer’s contribution to Employees State Insurance 45
Superannuation contribution to Life Insurance Corporation of India 9,831
130,830
ii) Defined benefit plans

The following table sets out the status of the assets and liabilities recognised in the Group’s consolidated
financial statements as at balance sheet date relating to the defined employee benefit plans:
As at
31 March 2018
Net defined benefit asset -
Total employee benefit assets -
Net defined benefit liability
Liability for gratuity 9,301
Liability for leave encashment -
Liability for half pay leaves 5,227
Total employee benefit liabilities 14,528
Non-current 13,683
Current 845
14,528
A. Gratuity
The Group provides gratuity for employees in India as per the Payment of Gratuity Act, 1972. Employees
who are in continuous service for a period of 5 years are eligible for gratuity. The amount of gratuity payable
on retirement/termination is the employees last drawn basic salary per month computed proportionately for
15 days salary multiplied for the number of years of service.
The employees’ gratuity fund scheme administered by the Group employees gratuity fund trust through
fund manager namely Life Insurance Corporation (LIC) of India, is a defined benefit plan. The present value
of obligation is determined on actuarial valuation done by LIC using projected unit credit method to arrive
369

As at
31 March 2018
Benefits paid (768)
Current service cost 3,236
Past service cost 5,149
Interest cost 5,112
Remeasurements (gains)/ losses recognised in other comprehensive income
Actuarial (gain)/ loss 897

Contributions during the year 2,355
Expected return on plan assets 5,093
Benefits paid (768)
Net defined benefit liability (asset) 9,301
b) Defined benefits / expenses for gratuity recognised for the year
For the year ended

31 March 2018
Past service cost * 5,149
Interest cost 5,112
Expected return on plan assets (5,093)
8,404
* During the current year, the Payment of Gratuity Act,1972 has been amended and the ceiling has been increased to INR 20 lakh from the
existing ceiling of INR 10 lakh. The expense on account of enhanced ceiling is recognised as past service cost.
370

Remeasurements recognised in other comprehensive income
For the year ended

31 March 2018
Actuarial (gain)/ loss on defined benefit obligation 897
897
c) Plan assets
i. Gratuity fund investment details (Fund manager wise, to the extent funded) are as below:
As at
31 March 2018
Life Insurance Corporation of India 68,220
68,220
The plan assets of the Group are managed by Life Insurance Corporation of India through a trust managed
by the Group in terms of an insurance policy taken to fund obligations of the Group with respect to its
gratuity plan. The categories of plan assets as a percentage of total plan assets is based on information
provided by Life Insurance Corporation of India with respect to its investment pattern for group gratuity
fund for investments managed in total for several other companies. Information on categories of plan assets
as at 31 March 2018 has not been provided by Life Insurance Corporation of India.
ii. Expected contributions to post-employment benefit plans for the year ending 31 March 2018 are INR 9,301
lakh.
As at
31 March 2018
Within the next 12 Months (next annual reporting period) 535
Between 1 and 2 years 822
Between 2 and 5 years 2,750
Beyond 5 years 73,414
Total 77,521
The weighted average duration of the defined benefit obligation is 10 years.
371
averages):
f) Sensitivity Analysis
below.
For the year ended

31 March 2018
Increase Decrease
Discount rate (0.50% movement) (4,693) 5,039
Expected rate of increase in compensation levels (0.50% movement) 4,137 (6,342)
Withdrawal rate as per mortality table (10% movement) 8,013 (7,211)
B. Compensated absences
Compensated absences is also a defined benefit plan. The liability towards compensated absences has
been determined through actuarial valuation using projected unit credit method. The present value of
obligation is determined on actuarial valuation done by LIC using projected unit credit method to arrive
372

Interest cost 72,697

Remeasurement (gains)/ losses recognised in other comprehensive income
Actuarial (gain)/ loss 11,952
As at
31 March 2018
Contributions during the year -
Expected return on plan assets 74,073
Benefits paid -
As at
31 March 2018
Balance at the end of the year * 981,827
Net defined benefit liability (asset) (68,500)
* Includes claim recoverable from LIC amounting to INR 68,500 lakh on account of leave encashment directly
paid by the Group to the employees during the year ended 31 March 2018. Accordingly, net defined benefit asset
for compensated absences for the year ended 31 March 2018 is Nil (refer note 16).
b) Defined benefits / expenses for compensated absences recognised for the year
For the year ended

31 March 2018
Interest cost 72,697
Expected return on plan assets (74,073)
Actuarial (gain)/ loss on defined benefit obligation 11,952
19,217
c) Plan assets
i. Compensated absences fund investment details (Fund manager wise, to the extent funded) are as below:
As at
31 March 2018
Life Insurance Corporation of India 981,827
981,827
The plan assets of the Group are managed by Life Insurance Corporation of India with respect to its
373
compensated absences plan. Information of plan assets as at 31 March 2018 has not been provided by Life
Insurance Corporation of India.
ii. Expected contributions to post-employment benefit plans for the year ending 31 March 2018 are INR Nil.
As at
31 March 2018
Within the next 12 Months (next annual reporting period) 95,789
Beyond 5 years 469,048
Total 913,327
The weighted average duration of the defined benefit obligation is 24 years.

averages):
f) Sensivity analysis
below.
For the year ended

31 March 2018
Increase Decrease
Discount rate (0.50% movement) (27,323) 31,502
Expected rate of increase in compensation levels (0.50% movement) 1,982 (2,591)
Withdrawal rate as per mortality table (10% movement) 9,146 (8,838)
374

C. Risk exposure
Through its defined benefit plans, the Group is exposed to a number of risks, the most significant of which
are detailed below:
a) Asset volatility
The plan liabilities are calculated using a discount rate set with reference to bond yeilds; if plan assets
underperform this yeild, this will create a deficit. Most of the plan asset investments are in fixed income
securities with high grades and in government securities.These are subject to interest rate risk and the fund
manages interest rate risk with derivatives to minimise risk to an acceptable level. A portion of the funds
are invested in equity securities and in alternative investments which have low correlation with equity
securities. The equity securities are expected to earn a return in excess of the discount rate and contribute
to the plan deficit. The Group intends to maintain the above investment mix in the continuining years.
b) Changes in discount rate
A decrease in discount rate will increase plan liabilities, although this will be partially offset by an increase
in the value of the plan’s bond holdings.
c) Inflation risks
In the plans, the payments are not linked to the inflation so this is a less material risk.
d) Life expectancy
The plan obligations are to provide benefits for the life of the member, so increases in life expectancy will
result in an increase in the plans’ liabilities. This is particularly significant where inflationary increases
result in higher sensitivity to changes in life expectancy.
The Group ensures that the investment positions are managed within an asset- liability matching
(ALM) framework that has been developed to achieve long term investments that are in line
with the obligations under the employee benefit plans. Within this framework, the Group’s ALM
objective is to match assets to the obligations by investing in long-term fixed interest securities
with maturities that match the benefit payments as they fall due and in the appropriate currency.
The Group actively monitors how the duration and the expected yield of the investments are matching
the expected cash outflows arising from the employee benefit obligations. The Group has not changed the
processes used to manage its risks from previous periods. Investments are well diversified, such that the
failure of any single investment would not have a material impact on the overall level of assets.
C. Half pay leaves
Half pay leaves is also a defined benefit plan. The liability towards half pay leaves has been determined
through actuarial valuation using projected unit credit method. The present value of obligation is determined
on actuarial valuation done by LIC using projected unit credit method to arrive the final obligation.
375
40. Property, plant and equipment / Intangible assets/ Depreciation and amortization/ Capital work-in-
progress
1 Property, plant and equipment taken over from DoT as on 01 October 2000 are based on physical
verification conducted by the management. The value of property, plant and equipment taken over
including capital work-in- progress has been determined by the management using the original cost of the
asset (wherever available) or alternatively the value arrived at by applying Strategic Business Plan (“SBP”)
rates, which is based on technical assessment, as reduced by the depreciation up to 30 September 2000 on
straight line basis at the rates prescribed by DoT. Capital assets acquired by the Company after 1 October
2000 are valued at the cost including all direct charges incurred up to the time of installation or put to use.
The transfer values, as indicated above, in respect of assets transferred from DoT on 1 October 2000 have
been treated as its original cost and depreciation has been provided on written down value method at the
rates prescribed in Schedule XIV of the Companies Act, 1956 till financial year 2013-14 without reassessing
the remaining useful life of such assets as on that date. Depreciation has been provided at the rates as stated
above for all the assets acquired after 1 October 2000 except in the case of Subscribers Installations which
are depreciated over the useful life of 5 years on written down value method. However, with the enactment
of Companies Act, 2013 the depreciation has been provided as per the provisions of schedule II of the
Companies Act, 2013 for financial year 2014-15 onwards for all assets including Subscribers Installations.
For 3G & BWA Spectrum the amount paid to Government of India for acquiring these assets is being
amortized over a period of 20 years.
2 The lease period of a few leasehold lands on which buildings are constructed, have not been renewed / or
the renewals are under dispute. Since expected terms, conditions and rentals for renewal/ surrender are not
ascertainable, no provision has been made for the surrender value / written down value of the buildings’.
3 Pending transfer of the immovable property in the name of the Group, documents in respect of certain
land and buildings acquired during the period are under legal process/ execution. Further in respect of
assets taken over from DoT, formalities for vesting the assets in favour of the Group, wherever necessary/
applicable are under process.
4 Capital work-in-progress, inter alia, includes balances pending capitalization for long periods of time owing
to pending analysis of status, value and obtaining of commissioning certificates in respect of twenty once
circles. The amount ascertained in respect of sixteen circles is INR 24,152 lakh. Consequently, depreciation
has also not been charged on the same.
5 Directly attributable establishment and administration expenses incurred in units where project work is
also undertaken are allocated to capital and revenue mainly on actual man-month basis.
41. DoT balances
Other recoverables from DoT, after netting off the claim payables to them, INR 211,928 lakh are
included in other current financial assets and other current financial liabilities. This balance is
subject to confirmation, reconciliation and consequential adjustment. There is no practice of getting
confirmation of such balances with Government department due to huge number of transactions.
Further, there is no agreement between the Group and DoT for interest recoverable/ payable on outstanding
amounts of DoT. Hence, no accrual for interest has been made on the amount payable to/recoverable from
DoT.
376

42. Inter/ intra circle remittance

There are certain expenses (both capital and revenue) which are incurred by one circle on behalf of other.
These expenses are parked in Inter/ Intra-Circle Remittances account. As on 31 March 2018, there was
balance of INR 7,919 lakh in Inter/Intra-Circle Remittances account. This amount pertains mainly to assets
and liabilities, and marginally to expenditure and revenue. The depreciation is not claimed in case of assets
and expenses are not taken to the statement of profit and loss pending reconciliation. The reconciliation
is done on continuous basis throughout the year and proper effect is taken in the books of accounts for
reconciled amounts.
43. Earnings/ (loss) per share
Basic and diluted earnings/ (loss) per share
Basic and diluted earnings/ (loss) per share is calculated by dividing the profit/ (loss) during the year
attributable to equity shareholders of the Group by the weighted number of equity shares outstanding
during the year.
For the year ended

Particulars Unit
31 March 2018
Profit/ (loss) after tax attributable to equity shareholders (INR in lakh) (799,560)
Weighted average number of equity shares outstanding (in number) 5,000,000,000
during the year
Nominal value per share INR 10
Basic and diluted earnings/ (loss) per share INR (15.99)
44. Segment information

A. Description of segments and principal activities
An operating segment is a component of the Group that engages in business activities from which it may
earn revenues and incur expenses, including revenues and expenses that relate to transactions with any
of the Group’s other components, and for which discrete financial information is available. All operating
segments operating results are reviewed regularly by the Board of directors of the Company, which is
defined as chief operating decision maker (‘CODM’) to make decisions about resources to be allocated to
the segments and assess their performance.
For management purposes, the business is organized into business segments namely basic, cellular,
broadband and enterprise based on its products and services identified.
377
B. Information about reportable segments
Year ended 31 March 2018
Business Segments
Revenue
Other income (111,350) 29,407 1,982 312,173 577 232,789
Net segment revenue 337,978 1,059,086 475,594 626,332 577 2,499,567
Segment results
Operating profit/(loss) before interest, (1,447,588) 378,966 408,547 414,508 (48,031) (293,599)
depreciation and taxes
Depreciation and amortisation (205,507) (291,041) (19,604) (66,547) (458) (583,158)
Interest income 6,503 636 14 179 166 7,497
Interest expenses (1,470) (3,200) (47) (8) (106) (4,831)
Tax expense - - - (74,531) (74,531)
Profit/(loss) after tax (1,648,063) 85,360 388,910 348,132 26,101 (799,560)
Other information
Segment assets 7,326,045 3,120,064 181,953 1,367,221 1,284,225 13,279,508
Capital expenditure during the year 81,730 108,552 14,334 44,926 246,066 495,609
Non cash expense other than depreciation 43,428 11,169 939 5,006 - 60,541
C. Reconciliations of information on reportable segments to Ind AS measures
i) Revenues For the year ended

31 March 2018
Total revenue for reportable segments 2,498,990
Unallocable revenue 577
Total revenue 2,499,567
ii) Profit before tax For the year ended

31 March 2018
Total profit before tax for reportable segments (825,661)
Profit before tax for unallocable (48,430)
Profit before tax as per statement of profit and loss (874,091)
378

iii) Assets As at
31 March 2018
Total assets for reportable segments 11,995,283
Unallocable assets 1,284,225
Total assets as per the balance sheet 13,279,508
iv) Liabilities As at
31 March 2018
Total liabilities for reportable segments 2,889,290
Unallocable liabilities 1,423,251
Total liabilities as per the balance sheet 4,312,541
D. Geographic information
The Group caters only to the Indian market representing a singular economic environment with similar
risks and returns and further there are no reportable geographical segments.
E. Information about major customers
For the year ended 31 March 2018, revenue from any customer is not more than 10 percent of the Group’s
total revenue.
45. Related party transactions
a) List of related parties
i. Key Management Personnel
Designation Name of incumbent Remarks

Chairman and Managing Director Shri Anupam Shrivasatava From 15 January 2015
(‘CMD’)
Director (Finance) Smt. Sujata Ray From 21 October 2015
Director (Enterprise) Shri Narender Kumar Mehta From 1 August 2015
Director (Consumer Fixed Access) Shri Naresh Kumar Gupta From 01 June 2012 to 31 May 2017
Shri Narender Kumar Mehta From 01 June 2017
Director (Consumer Mobility) Shri Rakesh Kumar Mittal From 4 November 2015
Director (Human Resource) Smt. Sujata Ray From 8 July 2015
Government Director Smt. Padma Iyer Kaul From 18 September 2015
Shri N. Sivasailam From 21 October 2015 to 01
February 2018
Shri Amit Yadav From 01 February 2018
379
Non-official part-time Director Smt. K. Sujatha Rao From 30 January 2017

Dr. Santhosh R. Dastane From 30 January 2017
Shri V. Venkateshwara Bhat From 08 September 2017
Prof. Jasbir Singh From 08 September 2017
Company Secretary and Chief General Shri Hem Chandra Pant From 28 November 2000
Manager (Legal)
ii. Subsidiary
BSNL Tower Corporation Limited (incorporated w.e.f. 4 January 2018)
iii. Entities under the control of the same Government
The Company is a Central Public Sector Undertaking (CPSU) controlled directly or indirectly by Central
Government. Pursuant to paragraph 25 and 26 of Ind AS 24, entities over which the same government
has control or joint control of, or significant influence, then the reporting entity and other entities shall be
regarded as related parties. The Group has applied the exemption available for government related entities
and have made limited disclosures in the consolidated financial statements. Such entities with which the
Group has significant transactions include but not limited to Department of Telecom (‘DoT’), Department
of Posts, Mahanagar Telephone Nigam Limited, Indian Telephone Industries, Indian Oil Corporation
Limited, Bharat Petroleum Corporation Limited, Union Bank of India, United Bank of India, State Bank of
India, Bank of Maharashtra, Punjab National Bank, Canara Bank and Bank of Baroda.
iv. Post employment benefit plans
BSNL Employees Gratuity Fund Trust
BSNL Employees Superannuation Pension Fund Trust
b) Transactions with the related parties are as follows:
For the year ended

Particulars
31 March 2018
A. Compensation to Key Management Personnel
- Short term employee benefits
Payment of salaries and allowances
Shri Anupam Shrivastava 37
Smt. Sujata Ray 32
Shri Naresh Kumar Gupta 25
Shri Narender Kumar Mehta 29
Shri Rakesh Kumar Mittal 36
Shri Hem Chandra Pant 28
187
380

For the year ended

Particulars
31 March 2018
Perquisites
Smt. Sujata Ray 1
4
Sitting fee
Smt. K. Sujatha Rao 1.2
Dr. Santhosh R. Dastane 1.2
Shri V. Venkateshwara Bhat 0.5
Prof. Jasbir Singh 0.5
3.4
- Post employment benefits
Smt. Sujata Ray 3
35
- Other long term benefits
Smt. Sujata Ray 2
38
B. Advances given to Key Management Personnel *
Opening balance 3
Extended during the year 19
Total 22
Repayment of advance 15
Closing balance 7
C. Contribution made during the year to post employment benefit plans
- BSNL Employees Gratuity Fund Trust 2,355
381
For the year ended

Particulars
31 March 2018
- BSNL Employees Superannuation Pension Fund Trust 9,831
D. Transactions with the related parties under the control of the same government
i. Revenue from sale of services
DoT 20,164
Central government and central PSU’s 160,064
180,228
ii. Employee benefits expense
DoT
Contribution towards leave salary 1,331
Contribution towards pension 93,166
94,497
Contribution towards employees provident fund 27,788
iii. License and spectrum fee
DoT 174,338
iv. Other expenses
Expenditure on capital items 15,048
Power and fuel 39,395
Repairs and maintenance 8,007
Others 46,887
109,337
* These advances are in the normal course of business.
c) Outstanding balances with related parties are as follows:
As at
Particulars
31 March 2018
A. Key Management Personnel
7
B. Post employment benefit plans
Amount recoverable from BSNL Employees Gratuity Fund Trust 977
C. Related parties under the control of the same government
382

i. Non-current borrowings (including current maturities)

Term loans from banks
Union Bank of India 228,499
United Bank of India 63,968
State Bank of India 245,611
Punjab National bank 193,989
Canara Bank 99,996
Bank of Baroda 16,162
848,225
The Central Government of India 7,500,000
ii. Other current financial assets
For employees on deputation 1,812
Other recoverable 243,013
Amount recoverable from LIC 68,500
313,325
iii. Other current financial liabilities
Claims payable to DoT 31,085
iv. Other current liabilities
DoT
Advance received for Defense telecom network project (net) 162,065
v. Amount receivable (net)
Central government and central PSU’s 2,114
d) Terms and conditions of transactions with the related parties

Transactions with the related parties are made on normal commercial terms and conditions and at market
rates.
46. Auditor’s remuneration (statutory/ branch auditors)
For the year ended

Particulars 31 March 2018
Statutory Auditor Branch Auditor
Statutory audit fee 15 273
Certification charges 2 26
Reimbursement of expenses 2 14
Others 18 -
Total (A) 37 313
Other services - -
383
Tax audit fee 1 27

Total (B) 1 27
Total (A + B) 38 340
Note: Fees are exclusive of applicable taxes wherever applicable.
47. Provisions
Decommissioning
liabilities *
Balance as at 1 April 2017 312 1,584 87,248 89,144
Provisions used during the year - (113) (189) (302)
Provisions reversed during the year - (1,090) (14,265) (15,355)
Balance as at 31 March 2018 312 471 77,521 78,304
* The Group records a provision for decommissioning costs for those operating lease arrangements where the
Group has a binding obligation at the end of the lease period to restore the leased premises in a condition
similar to that at the inception of lease. The Group is committed to decommissioning the site as a result of the
construction of the towers, buildings and other assets.
48. Contingent liabilities and commitments

A. Contingent liabilities
Claims against the Group not acknowledged as debts are as follows:
As at 31 March 2018
Particulars
No. of cases Amount
TR billing 140 30
Enhanced sales tax in lieu of C/D forms - -
On account of service tax disputed 89 25,348
Sales tax disputed 67 15,220
Central excise claims 25 2,245
License fee and spectrum fee [note 1] 2 1,598,574
Others [note 2] 305 32,762
Total 628 1,674,179
Note 1: Demand raised by DoT amounting to:

i) Amount of INR 1,560,744 lakh on account of one time spectrum charges for Global System for
Mobile(GSM) spectrum held by the Group, the matter is sub-judice by other operators and the amount
is not finally crystallized.
ii) Amount of INR 37,830 lakh on account of provisional assessment of License fee for the year 2012-13.
Note 2: The contingent liability in connection to 1901 cases (31 March 2017: Nil cases) included under the
head ‘Others’ in the above table is not ascertainable. Certain claims of MTNL on various accounts
like duct charges, space charges, service connections, revenue share for network usgae, etc. are under
reconciliation and settlement process. Pending an ongoing reconciliation and settlement process, the
estimate of these claims/outflows could not be ascertained.
384

i) Claims pending in court related to Land acquisition, TR billing, Service tax, Central Excise and Sales tax,
Arbitration cases and others.
Particulars As at 31 March 2018

No. of cases 7,946
Amount 851,052
ii) Demands raised by the Income-tax departments not acknowledged as debt are as follows:
The Income-tax assessments u/s 143(3) of Income-tax Act 1961 have been completed up to Assessment Year
2015-16 i.e. Financial Year 2014-15 and the disputed demand outstanding up to Assessment Year 2015-16
is INR 16,819 lakh based on the decision of the Applellate Authority which is related with Assessment Year
2009-10. The demand is presently under litigation in High Court, New Delhi.
iii) Liability on account of bank guarantees given by the Group.
As at 31 March 2018
Particulars With cash Without cash
margin margin
No. of cases 19 539
Amount 929 22,706
iv) As per Office Memorandum (OM) dated 19 November 2009, pension contribution was payable on the actual
pay drawn as on 1 January 2007 (being the date of implementation of second pay commission for IDA).
Whereas the Group was paying pension contribution on maximum of the scale as advised by DoT, from 1
December 2011 the management had decided to change the method of payment of pension contribution
from maximum pay scale to actual pay drawn as per the office memorandum dated 19 November 2009.
Although the matter is still under pursuance with DoT, meanwhile, the management has once again decided
to pay the pension contribution on maximum of the pay scale from 1 October 2014 onwards. The actual
difference between these two methods of pension contribution payment up to 31 March 2018 is INR 53,774
lakh.
B. Commitments
a) Capital commitments
i. The estimated amounts of contracts remaining to be executed on capital account and not provided for in
relation to execution of works and purchase of equipment are INR 200,354 lakh.
ii. In two circles the estimated amount of contracts remaining to be executed on capital account has not been
ascertained.
b) Other commitments
The amount of other commitments amounting to INR 8,453 lakh which was not ascertained in one circle.
385
49. Leases
A. Operating lease commitments — Group as lessee
a) The Group has taken vehicles for senior executives under operating leases, which expire between the
period ranging from April 2018 to December 2022.
Lease payments amounting to INR 4,744 lakh are included in rent expense in the statement of profit and
loss during the current year.
At 31 March the future minimum lease payments to be made under non-cancellable operating leases are as
follows:
As at
31 March 2018
Not later than one year (excluding applicable taxes) 945
Later than one year and not later than five years (excluding applicable taxes) 182
Later than five years (excluding applicable taxes) -
Total 1,127
b) The Group has entered into various agreements with other telecom operators wherein the Group acquires a
right to use passive infrastructure of other operators. The escalation clause includes escalation ranging from
0 to 25% and includes option of renewal from 1 to 15 years. There are no restrictions imposed by lease
arrangements.
Lease payments amounting to INR 93,131 lakh are included in lease expense on passive infrastructure in
the statement of profit and loss during the current year.
At 31 March the future minimum lease payments to be made under non-cancellable operating leases are as
follows:
As at
31 March 2018
Not later than one year (excluding applicable taxes) 83,065
Later than one year and not later than five years (excluding applicable taxes) 172,875
Later than five years (excluding applicable taxes) 110,548
Total 366,488
B. Operating lease commitments — Group as lessor

The Group has entered into various agreements with other telecom operators wherein the Group agrees
to shares its own passive infrastructure with other operators. The escalation clause includes escalation
386

Lease receipts amounting to INR 80,390 lakh are included in Lease income on passive infrastructure in the
statement of profit and loss during the current year.
At 31 March the future minimum lease payments under non-cancellable operating leases are receivable as
follows:
As at
31 March 2018
Not later than one year (excluding applicable taxes) 54,442
Later than one year and not later than five years (excluding applicable taxes) 193,479
Later than five years (excluding applicable taxes) 121,280
Total 369,201
50. Income tax

A. Amounts recognised in statement of profit and loss
The major components of income tax expense for the years ended 31 March 2018 are:
For the year ended

31 March 2018
Current income tax
- For the year* -
- Adjustment for prior periods (80,429)
Deferred tax -
Income tax expense reported in the statement of profit and loss (74,531)
*The provision for income-tax for the current year has not been made since the Group is not having any taxable
income either under normal provision of Income Tax Act, 1961 or special provision under section 115JB (Minimum
Alternate Tax) of the Income Tax Act, 1961.
B. Amounts recognised in other comprehensive Income/ (expense)

The major components of income tax expense for the years ended 31 March 2018 are:
For the year ended

31 March 2018
Income tax
Remeasurement of post employment benefit obligation -
Income tax charges to other comprehensive income -
387
C. Reconciliation of effective tax rate

Reconciliation of tax expense and the accounting profit/ (loss) multiplied by India’s domestic tax rate for
the year ended 31 March 2018:
For the year ended

31 March 2018
Rate (%) Amount
(874,091)
Profit/ (loss) before tax 30.90% (270,094)
Effective tax rate * 0%
* In the absence of reasonable certainty of future taxable profits, the Group has not recognised deferred tax asset (net) for the above periods,
hence the effective tax rate is 0%.
D. Deferred tax assets/ liabilities
Deferred tax assets (Deferred tax Net deferred tax

liabilities) assets/ (liabilities)
Particulars
As at As at As at
31 March 2018 31 March 2018 31 March 2018
Loss allowance for trade receivables 89,629 - 89,629
Loss allowance for other assets 60,194 - 60,194
Carry forward tax losses including unabsorbed depreciation 1,155,509 - 1,155,509
Provision for compensated absences - - -
Provision for half pay leaves 1,631 - 1,631
Provision for gratuity 2,902 - 2,902
Provision for decommissioned assets 10,785 - 10,785
Provision for obsolete inventory and capital work in progress 6,496 - 6,496
Preliminary expenes 6,865 - 6,865
Disallowances under section 43B of Income Tax Act, 1961 7,741 - 7,741
Difference in book written down value and tax written down value of - 195,211 (195,211)
property, plant and equipment
1,341,752 195,211 1,146,541
Net deferred tax assets 1,146,541
Net deferred tax assets recognised -
Deferred tax assets are recognised to the extent of deferred tax liabilities. In the absence of reasonable
certainty of future taxable profits, the Group has not recognised deferred tax asset (net) for the above
periods.
E. Movement of temporary differences
Unrecognised
As at Unrecognised As at
1 April 2017 tax losses 31 March 2018
differences
Loss allowance for trade receivables 351,450 (64,177) - 287,272
388

Unrecognised
As at Unrecognised As at
1 April 2017 tax losses 31 March 2018
differences
Loss allowance for other assets 200,799 (7,868) - 192,931
Carry forward tax losses including unabsorbed 3,273,912 - 429,642 3,703,554
depreciation
Provision for compensated absences 961 (961) - -
Provision for half pay leaves 5,019 209 - 5,228
Provision for gratuity 2,356 6,945 - 9,301
Provision for decommissioned assets 68,307 (33,740) - 34,567
Provision for obsolete inventory and capital work in 28,660 (7,840) - 20,821
progress
Preliminary expenes - 22,002 - 22,002
Disallowances under section 43B of Income Tax Act, 37,822 (13,011) - 24,811
1961
A 3,969,286 (98,441) 429,642 4,300,487
Difference in book written down value and tax 670,061 (44,385) - 625,676
written down value of property, plant and equipment
B 670,061 (44,385) - 625,676
Net deferred tax (A)-(B) 3,299,225 (54,056) 429,642 3,674,811
F. Tax losses and tax credits for which no deferred tax asset was recognised expire as follows:
As at
31 March 2018
Particulars Gross amount Unrecognised tax Expiry year
effect
Business Loss
For Assessment year 2010-11 79,376 24,765 2019
Unabsorbed depreciation 3,153,032 983,746 Never expire
3,703,556 1,155,509
* The Group has recognised tax effect on unabsorbed depreciation amounting to INR Nil.
51. Financial instruments – Fair values and risk management

A. Financial instruments – by category and fair values hierarchy
The following table shows the carrying amounts and fair value of financial assets and financial liabilities,
including their levels in the fair value hierarchy.
389
As on 31 March 2018
Particulars Carrying value Fair value measurement using

FVTPL FVOCI Amortised cost Total Level 1 Level 2 Level 3
Financial assets
Non-current
Loans* - - 583 583 - - 583
Other financial assets* 24,029 24,029 - - 24,029
Current
Investments* 20,000 - - 20,000 - - -
Balances other than cash and cash equivalents* - - 138 138 - - -
Loans* - - 224 224 - - -
Total 20,000 - 1,413,232 1,433,232
Non-current
Borrowings# - - 1,654,348 1,654,348 - - 1,654,348
Current
Borrowings# - - 30,910 30,910 - - -
Trade payables* - - 782,989 782,989 - - -
Total - - 3,348,504 3,348,504
# The Group’s borrowings have been contracted at floating rates of interest, which resets at short intervals.
Accordingly, the carrying value of such borrowings (including interest accrued but not due) approximates fair value.
* The carrying amounts of trade receivables, trade payables, cash and cash equivalents, investment bank balances
other than cash and cash equivalents and other financial assets and liabilities, approximates the fair values, due
to their short-term nature. The other non-current financial assets represents bank deposits (due for maturity after
twelve months from the reporting date) and security deposits given to various parties, and other non-current
financial liabilities, the carrying value of which approximates the fair values as on the reporting date.
There have been no transfers between Level 1, Level 2 and Level 3 for the years ended 31 March 2018.
Valuation techniques used to determine fair value

Specific valuation techniques used to value non current financial assets and liabilities for whom the fair
values have been determined based on present values and the appropriate discount rates at each balance
sheet date. The discount rate is based on the weighted average cost of borrowings of the Group at each
balance sheet date.
Valuation processes
The Group has an established control framework with respect to the measurements of the fair values. This
includes a valuation team that has overall responsibility for overseeing all significant fair value measurements
and reports to Senior Management. The valuation team regularly reviews significant unobservable inputs
390

and valuation adjustments.

B. Financial risk management
The Group has exposure to the following risks arising from financial instruments:
- Credit risk ;
- Liquidity risk ;
- Market risk - Foreign exchange ; and
- Market risk - Interest rate
Risk management framework
BSNL, by virtue of being the successor of erstwhile Central Government Departments of the Telecom
Services (DTS) and Telecom Operations (DTO) already had a codified set up with inbuilt mechanism to
foresee the potential risks and methods to arrest, control, ignore and/or respond to the risks. However, as
mandated by the Department of Public Enterprises through Guidelines on Corporate Governance Norms
for the Un-Listed CPSEs - further revised and made mandatory for the CPSEs vide No.18(8)/2005-GM, dated
the 14 May 2010 – Group has laid down a Enterprise Risk Management (ERM) Policy.
The Company’s board of directors has overall responsibility for the establishment and oversight of the
Company’s risk management framework.
As per ERM policy of the Group, the Group has constituted an ERM committee, with the overall objective
of oversight, development and implementation of a risk identification and management process and the
review and reporting of the same.
The board of directors has authorized Management Committee of the Board (MCB), the CMD and the
Functional Directors and below Board functionaries, viz., the Executive Directors/ CGMs/ PGMs/ GMs/
TDMs/ DGMs etc., as the case be, to establish the processes, who ensures that executive management
controls risks through the mechanism of properly defined framework.
Considering the size and geographical spread of the organization vis-a-vis the delegation of powers made
to the business heads and unit heads – who carry out the task of undertaking the risk management as a
part of the normal business practice by integrating and aligning the same with corporate and operational
objectives - the Business Heads in the Corporate Office; CGMs/ PGMs/ GMs and other unit heads of the
field units were designated as the Risk Management Administrators (RMAs).
The Group’s risk management policies are established to identify and analyse the risks faced by the Group,
to set appropriate risk limits and controls and to monitor risks and adherence to limits. Risk management
policies and systems are reviewed by the Functional Directors/ Business Heads periodically to reflect
changes in market conditions and the Group’s activities. The Group, through its training and management
standards and procedures, aims to maintain a disciplined and constructive control environment in which
all employees understand their roles and obligations.
i. Credit risk
The maximum exposure to credit risks is represented by the total carrying amount of these financial assets
in the Balance Sheet:
391
Credit risk is the risk of financial loss to the Group if a customer or counterparty to a financial instrument
fails to meet its contractual obligations.
Credit risk on cash and cash equivalents is limited as the Group generally invests in deposits with banks
with high credit ratings assigned by domestic credit rating agencies.
The maximum exposure to the credit risk at the reporting date is primarily from trade receivables. Trade
receivables are typically unsecured and are derived from revenue earned from customers primarily located
in India. The Group does monitor the economic environment in which it operates. The Group manages its
credit risk through credit approvals, establishing credit limits and continuously monitoring credit worthiness
of customers to which the Group grants credit terms in the normal course of business.
The Group establishes an allowance for impairment that represents its expected credit losses in respect
of trade receivable and other financial assets. The management uses a simplified approach (i.e. based on
lifetime ECL) for the purpose of impairment loss allowance, the Group estimates amounts based on the
business environment in which the Group operates, and management considers that the trade receivables
are in default (credit impaired) when counterparty fails to make payments for receivables more than 2 years
past due. However the Group based upon historical experience determine an impairment allowance for
loss on receivables.
Majority of trade receivables are from domestic customers, which are fragmented and are not concentrated
to individual customers. Further, a large number of minor receivables are grouped into homogeneous groups
and assessed for impairment collectively. Individual trade receivables are written off when management
deems them not to be collectible.
The Group’s exposure to credit risk for trade receivables is as follows:
Gross carrying
amount
Particulars As at 31 March
2018
1-90 days past due * 253,728
91 to 180 days past due 52,133
180 days to 2 years past due 152,176
More than 2 years past due # 350,071
808,108
392

* The Group believes that the unimpaired amounts that are past due by more than 30 days are still collectible in full, based on historical
payment behaviour.
# The Group based upon past trends determines an impairment allowance for loss on receivables outstanding for more than two years
past due.
# Receivables more than two years past due primarily comprises receivables from government departments and PSU’s, which are fully
realisable on historical payment behaviour and hence no loss allowance has been recognised. Impairment allowance has already been
recognised on specific credit risk factor.
Movement in the loss allowance in respect of trade receivables
For the year ended

Particulars
31 March 2018
Impairment loss recognised during the year 46,075
Amount written off (103,352)
ii. Liquidity risk

Liquidity risk is the risk that the Group will encounter difficulty in meeting the obligations associated with
its financial liabilities that are settled by delivering cash or another financial asset. The Group’s approach to
managing liquidity is to ensure, as far as possible, that it will have sufficient liquidity to meet its liabilities
when they fall due, under both normal and stressed conditions, without incurring unacceptable losses or
risking damage to the Group’s reputation.
The Group believes that its liquidity position, including total cash and cash equivalents and bank balances
other than cash and cash equivalents of INR 75,920 lakh as at 31 March 2018, anticipated future internally
generated funds from operations, and its fully available, revolving undrawn credit facility will enable it to
meet its future known obligations in the ordinary course of business. However, if liquidity needs were to
arise, the Group believes it has access to financing arrangements based on the value of unencumbered
assets, which should enable it to meet its ongoing capital, operating, and other liquidity requirements. The
Group will continue to consider various borrowing or leasing options to maximize liquidity and supplement
cash requirements as necessary.
The Group’s liquidity management process as monitored by management, includes the following:
- Day to day funding, managed by monitoring future cash flows to ensure that requirements can be met.
- Maintaining rolling forecasts of the Group’s liquidity position on the basis of expected cash flows.
- Maintaining diversified credit lines.
a. Financing arrangements
The Group had access to the following undrawn borrowing facilities at the end of the reporting period:
Particulars As at 31 March
2018
From banks 338,226
393
b. Maturities of financial liabilities

The following are the remaining contractual maturities of financial liabilities at the reporting date. The
amounts are gross and undiscounted:

Carrying
As at 31 March 2018 6 months 6-12 1–2 years 2–5 years More than Total
amount
or less months 5 years
9% non-cumulative redeemable preference shares 750,000 - - - 750,000 - 750,000
Other non current financial liabilities 181,781 - - 127,743 44,630 9,408 181,781
Current borrowings - Loans from banks * 30,910 30,910 - - - - 30,910
Trade payables 782,989 616,650 166,339 - - - 782,989
Total 3,348,504 1,302,157 210,218 247,377 1,272,010 316,742 3,348,504
* Contractual maturities of these financial liabilities excludes interest payments.
iii. Market risk

Market risk is the risk that the future cash flows of a financial instrument will fluctuate because of changes
in market prices. Market risk comprises two types of risk: currency risk and interest rate risk. The objective
of market risk management is to manage and control market risk exposures within acceptable parameters,
while optimising the return.
Currency risk
Currency risk is the risk that the future cash flows of a financial instrument will fluctuate because of changes
in foreign exchange rates. The Group is exposed to the effects of fluctuation in the prevailing foreign
currency exchange rates on its financial position and cash flows. Exposure arises primarily due to exchange
rate fluctuations between the functional currency and other currencies from the Group’s operating, investing
and financing activities.
Exposure to currency risk
The summary of quantitative data about the Group’s exposure to currency risk, as expressed in Indian
Rupees, as at 31 March 2018 is as below:
Particulars As at 31 March 2018

Financial assets
3,546 260 2 18 1 3 43
Trade payables 1,654 74 12 4 3 4 -
1,654 74 12 4 3 4 -
Sensitivity analysis
A reasonably possible strengthening (weakening) of the Indian Rupee against below currencies at 31
394

March would have affected the measurement of financial instruments denominated in a foreign currency
and affected equity and profit or loss by the amounts shown below. This analysis assumes that all other
variables, in particular interest rates, remain constant.

Particulars
1% depreciation / appreciation in Indian Rupees against following foreign
currencies:
USD (18.91) 18.91 (18.91) 18.91
EUR (1.86) 1.86 (1.86) 1.86
GBP 0.10 (0.10) 0.10 (0.10)
CHF (0.15) 0.15 (0.15) 0.15
AUD 0.02 (0.02) 0.02 (0.02)
JPY 0.01 (0.01) 0.01 (0.01)
NPR (0.43) 0.43 (0.43) 0.43
Total (21.22) 21.22 (21.22) 21.22
USD: United States Dollar, EUR: Euro, GBP: Great British Pound, CHF: Swiss Franc, AUD: Australian Dollar, JPY: Japanese Yen, NPR:
Nepalese Rupees
iii. Market risk
Interest rate risk

Interest rate risk is the risk that the future cash flows of a financial instrument will fluctuate because of
changes in market interest rates.
Exposure to interest rate risk
The Group’s interest rate risk arises majorly from the term loans from banks carrying floating rate of interest.
These obligations exposes the Group to cash flow interest rate risk. The exposure of the Group’s borrowings
to interest rate changes as reported to the management at the end of the reporting period are as follows:
Variable-rate instruments As at
31 March 2018
Term loans from banks (Non current) 904,348
Term loans from banks (Current) 30,910
Current maturities of borrowings 40,868
Total 976,126
Cash flow sensitivity analysis for variable-rate instruments

A reasonably possible change of 100 basis points (bps) in interest rates at the reporting date would have
increased (decreased) equity and profit or loss by the amounts shown below. This analysis assumes that all
other variables, in particular foreign currency exchange rates, remain constant.
395

Particulars 100 bps 100 bps 100 bps 100 bps
increase decrease increase decrease
Interest on term loans from banks
For the year e nded 31 March 2018 4 (4) 4 (4)
52. Capital Management

For the purpose of the Group’s capital management, capital includes issued equity share capital and all
other equity reserves attributable to the equity holders of the Group.
Management assesses the Group’s capital requirements in order to maintain an efficient overall financing
structure while avoiding excessive leverage. The Group manages the capital structure and makes adjustments
to it in the light of changes in economic conditions and the risk characteristics of the underlying assets.
To maintain or adjust the capital structure, the Group may return capital to shareholders, raise new debt or
issue new shares.
The Group monitors capital on the basis of the debt to capital ratio, which is calculated as interest-bearing
debts divided by total capital (equity attributable to owners of the parent plus interest-bearing debts).
As at
Particulars
31 March 2018
Borrowings 935,258
9% non-cumulative redeemable preference shares 750,000
Less : Cash and cash equivalents (75,782)
Adjusted net debt (A) 1,609,476
Total equity (B) 8,966,967
Adjusted net debt to adjusted equity ratio (A/B) 17.95%
53. Disclosure as per Ind AS 112 ‘Disclosure of Interest in Other Entities’
Subsidiary
The group’s subsidiary at 31 March 2018 is set out below. The share capital constitutes solely of share
capital that are held directly by the Group and the proportion of ownership interests held equals the
voting rights held by the group. The country of incorporation or registration is also their principal place of
business.
396

Place of Business Ownership Ownership

/ Country of Interest held by Interest held by
Name of Entity Incorporation the Group non-controlling Principal activity
interest
31-Mar-18 31-Mar-18
BSNL Tower India 100% 0% Passive infrastructure services which

Corporation includes setting-up, operating and
Limited maintaining wireless communication
towers, etc.
54. Disclosure as per Schedule III to the Companies Act, 2013
Net Assets, i.e., total Share in profit or loss for Share in other comprehensive Share in total comprehensive
assets minus total the year ended income for the year ended income for the year ended
liabilities as at
Name of the
entity in the As % of As % of
Group consolidated As % of consolidated As % of total
net assets Amount consolidated Amount other Amount comprehensive Amount
profit or loss comprehensive income
income
Parent
Bharat Sanchar
Nigam Limited
31 March 2018 100.00% 8,966,967 99.97% (799,285) 100.00% (897) 99.97% (800,182)
Subsidiary
BSNL Tower
Corporation
Limited
31 March 2018 0.00% - 0.03% (275.00) 0.00% - 0.03% (275)
Total
31 March 2018 100.00% 8,966,967 100.00% (799,560) 100.00% (897) 100.00% (800,457)
55. Disclosure for government grant

During the current year, the Group has recognised income from revenue grants amounting to INR 47,930
lakh.
For capital grant, the Group has recognised income during the current year amounting to INR 31,213 lakh.
During the current year, the Group has not received any other form of government assistance.
There are no unfulfilled conditions and other contingencies attaching to the government grants which are
recognized in the consolidated financial statements.
56. Mobile tower business
On 12 September 2017, the Union Cabinet decided to hive off mobile tower assets of the Company into
a separate subsidiary company wholly owned by BSNL. In pursuance of this decision and directions from
397
Ministry of Communications, Department of Telecommunications (DoT) dated 25 September 2017, the

Board of Directors of BSNL has given its approval for incorporation of a new company as a wholly owned
subsidiary of BSNL.
Accordingly, the Company has formed BSNL Tower Corporation Limited (wholly owned subsidiary of the
company) incorporated on 4 January 2018 with Authorised Share Capital of INR 1,000,000 lakh (Authorised
Equity Share Capital of INR 750,000 lakh and Authorised Preference Share Capital of INR 250,000 lakh)
and paid up capital of INR 0.17 Lakhs to take over the telecom tower infrastructure of BSNL. The Company
has paid INR 275 lakh as registration charges on behalf of the subsidiary.
The Company is under the process of transferring telecom tower business to BSNL Tower Corporation
Limited. The information related to mobile tower services are included under ‘Cellular’ segment in Note
44.
57. Subsequent events
On 1 August 2018, the Group has decided for closure of CDMA services (Wireless in local loop (WLL)) in
all service areas due to techno-economic considerations. The revenue from CDMA services for year ended
31 March 2018 is INR 3,448 lakh. The information related to CDMA services are inlcuded under ‘Cellular’
segment in note 44.
The Group is in the process of discontinuing CDMA services, the financial impact of which is currently
impracticable to ascertain.
Sd- Sd-
Sd-
DIN: 07240022
Sd-
P.D. Chirania
Sd-
H.C. Pant
M.No. F- 2584
398
FORM NO.AOC.1
(Pursuant to first proviso to sub-section (3) of section 129 read with rule 5 of Companies (Accounts) Rules, 2014)
Statement containing salient features of the financial statement of subsidiaries/ associate companies/ joint ventures
Part “ A” : Subsidiaries
(Amount in INR lakh)
1. Sl. No. 1
2. Name of the Subsidiary BSNL Tower Corporation Limited
3. The date since when subsidiary was acquired 04 January 2018
4. Reporting period for the subsidiary concerned, Since BSNL Tower Corporation Limtied has been
if different from the holding company’s reporting incorporated during the current year, the first
period reporting period of the Company will be from 04
January 2018 - 31 March 2019
5. Reporting currency and exchange rate as on the NA
last date of the relevant financial year in the case
of foreign subsidiaries.
6. Share capital 0.17
7. Reserves & surplus (275)
8. Total assets 0.17
9. Total liabilities 275
10. Investments -
11. Turnover -
12. Profit before taxation (275)
13. Provision for taxation -
14. Profit after taxation (275)
15. Proposed dividend -
16. % of Shareholding 100.00%
Notes:
1. Subsidiaries which are yet to commence operations. BSNL Tower Corporation Limited
2. Subsidiaries which have been liquidated or sold during the year. Nil
399
Independent Auditor’s Report Consolidated
To the Members of Bharat Sanchar Nigam Limited
Report on the Consolidated Ind AS Financial Statements

1. We have audited the accompanying consolidated Ind AS financial statements of Bharat Sanchar
Nigam Ltd (the Holding Company) and its one Subsidiary (the Holding company and its Subsidiary
together referred to as the group) ,which comprise the consolidated Balance Sheet as at March
31st, 2018, and the consolidated Statement of Profit and Loss(including their Comprehensive
Income), the consolidated Cash Flow Statement and the consolidated Statement of Changes
in Equityfor the year then ended, and a summary of significant accounting policies and other
explanatory information (hereinafter referred to as Consolidated Ind AS Financial Statements).
Management’s Responsibility for the Consolidated Ind AS Financial Statements

2. The Holding Company’s Board of Directors is responsible for the preparation of these consolidated
Ind AS financial statements in terms of the requirements of the Company’s Act, 2013 (here in
after referred to as the “Act”) that give a true and fair view of the consolidated financial position,
consolidated financial performance including other comprehensive income, consolidated cash
flows and consolidated changes in equity of the group in accordance with the Accounting Principles
generally accepted in India, including the Indian Accounting Standards (Ind AS) prescribed under
section 133 of the Act. The respective Board of Directors of the Companies included in the
group are responsible for maintenance of adequate accounting records in accordance with the
provisions of the Act for safeguarding the Assets of the group and for preventing and detecting
frauds and other irregularities; the selection and application of appropriate accounting policies;
making judgments and estimates that are reasonable and prudent;and the design, implementation
and maintenance of adequate internal financial controls, that were operating effectively for
ensuring the accuracy and completeness of the accounting records, relevant to the preparation
and presentation of the consolidated Ind AS financial statements that give a true and fair view
and are free from material misstatement,whether due to fraud or error which have been used for
the purpose of preparation of the consolidated Ind AS financial statements by the Directors of the
Holding Company, as aforesaid.
Auditor’s Responsibility (to be appropriately amended vis-à-vis consolidated report)
3. Our responsibility is to express an opinion on these consolidated Ind AS financial statements
based on our audit.
4. While conducting the audit, we have taken into account the provisions of the Act, the accounting
and auditing standards and matters which are required to be included in the audit report under
the provisions of the Act and the Rules made thereunder.
5. We conducted our audit in accordance with the Standards on Auditing specified under Section
143(10) of the Act. Those Standards require that we comply with ethical requirements and plan
and perform the audit to obtain reasonable assurance about whether the consolidated Ind AS
financial statements are free from material misstatement.
6. An audit involves performing procedures to obtain audit evidence about the amounts and the
400
disclosures in the consolidated Ind AS financial statements. The procedures selected depend on
the auditor’s judgment, including the assessment of the risks of material misstatements of the
consolidated Ind AS financial statements, whether due to fraud or error. In making those risk
assessments, the auditor considers internal financial control relevant to the Holding Company’s
preparation of the consolidated Ind AS financial statements that give a true and fair view in order
to design audit procedures that are appropriate in the circumstances. An audit also includes
evaluating the appropriateness of the accounting policies used and the reasonableness of the
accounting estimates made by the Holding Company’s Board of Directors, as well as evaluating
the overall presentation of the consolidated Ind AS financial statements.
7. We believe that the audit evidence obtained by us is sufficient and appropriate to provide a basis
for our audit opinion on the consolidated Ind AS financial statements
Basis for Qualified Opinion

8. As detailed in note 38 and 41.1 to the consolidated Ind AS financial statements, assets and liabilities
(including contingent liabilities) taken over from DoT on 1 October 2000 have been verified and
valued by the management based on internal calculations. These are subject to reconciliations
and confirmation from DoT as regards to value and classification. The consequential impact
on the consolidated Ind AS financial statements, if any, as a result of the same is presently not
ascertainable.
9. As detailed in note 42 to the consolidated Ind AS financial statements, amounts due from and
to DoT, included in current assets and current liabilities aggregating to Rs. 2,43,013 lakhs and
Rs. 31,085 lakhs, are subject to confirmation, reconciliation and consequential adjustment. The
impact of the adjustments, if any, on the consolidated Ind AS financial statements is presently not
ascertainable.

10. (i) In pursuance of Ind AS 101-“First Time Adoption of Indian Accounting Standards” the
company had selectively fair valued only certain freehold lands as at 1st April 2015,
resulting in upward valuation of freehold lands under Property, Plant & Equipment and
the corresponding increase to Other Equity by a sum of Rs 69,86,449 lakhs. Fair valuation
of only certain lands is non-compliance of Ind AS 101 First Time Adoption of Indian
Accounting Standards.
(ii) Non compliances had also been reported by the Circle Auditors in the procedure adopted
and non-application of uniform policies with regard to fair valuation of freehold lands.
The consequential impact of adjustments, if any, on the Consolidated Ind AS financial
statements is presently not ascertainable.
Revenue
11. i) The company has not applied definition of “Default” and “Assessment of Credit Risk”
consistently to all the financial instruments in terms of Ind AS 109 Financial Instruments.
Further, there is no renegotiation or modification of the contractual cash flows on trade
401
receivables from Other Government and/or PSU sector entities. We have also not
been provided with reasonable and supportable information about past events, current
conditions, forecasts of future economic conditions including any demonstrable recovery
pattern and indicators that led the management to change its perception in the current year
2017-2018 for considering trade receivables, from Other Government and/ or PSUs sector
entities, as having low credit risk vis-à-vis the corresponding previous year that made the
management to write back in the current year 2017-2018, the entire accumulated loss
allowance provided in the earlier year(s).
We accordingly conclude that the credit risk on such financial instruments (i.e. trade
receivables from Government and/ or PSU sector entities) has not decreased significantly
since initial recognition. Consequently, the write back of loss allowance in the current year
relating to receivables from Government and/ or PSU sector entities, is not in consonance
with the Ind AS 109 Financial Instruments. This is also not in consonance with the
Accounting Policies as stated in Note No 2.2(p) of the Significant Accounting Policies of
the company.
We were not supplied the financial information about the write back of loss allowance of
trade receivables from other Government and/ or PSU sector entities as at March 31, 2018
and accordingly we are unable to comment upon the impact of adjustments made for these
ii) Net amount receivable from Mahanagar Telephone Nigam Limited (MTNL) as per the
Consolidated Ind AS financial statements is Rs 347,024 lakhs, being amounts recoverable
from MTNL Rs 362,140 lakhs, amount payable and provision for amounts payable to MTNL
Rs 15,116 lakhs. MTNL however, claims a sum of Rs 338,726 lakhs as recoverable from the
Company in the balance confirmation certificate.
The required financial information to verify such balances as at March 31, 2018 was not
provided to us by the company and accordingly we are unable to comment upon the
impact of adjustments in the financial statements that would be required pursuant to the
eventual resolution of such balances inter-se the company and MTNL.
12. As reported by auditors of 2 circles, the income from recharge coupons, prepaid calling cards,
internet connection cards, sancharnet cards and stock of recharge coupons and prepaid calling
cards are subject to reconciliations. In the absence of specific details, the impact of adjustment, if
any, on Ind AS financial statements is presently not ascertainable. Our audit report on the Ind AS
financial statements for the previous year ended 31st March 2017 was also qualified in respect to
this matter.
13. One circle auditor has reported non charging of expenditure amounting to Rs 615.20 lakhs to
revenue and writing off the same from the provisions, thereby understating the Loss and Provisions
by a sum of Rs 615.20 lakhs.
14. As stated in note 2.2-(p) to the significant accounting policies, certain items of revenue are
accounted for on cash basis instead of the accrual basis of recognition of revenue which is not
in accordance with the generally accepted accounting principles in India. The impact of the
adjustment, if any, in respect thereof on revenue, license fee, trade receivables and loss for the
year is presently not ascertainable.
402
15. One circle auditor has reported insufficient documentary evidence and non-providing the basis
for booking of Income in respect of NFS and LWE projects amounting to Rs 10,474.50 lakhs.
Consequential impact on the Consolidated Ind AS financial statements, if any, as a result of the
same is presently not ascertainable.
16. 1 circle auditor has reported that Fixed Assets taken over from DoT which were not accounted for
in the consolidated financial statements of the circle have been sold and treated as Sale of Scrap.
The consequential impact of adjustments, if any, on the Consolidated Ind AS financial statements
is presently not ascertainable.

17. As reported by auditors of 12 circles, Capital Work-in-Progress, inter alia, includes balances
pending capitalization for long-periods of time owning to pending analysis of status, value and
obtaining of commissioning certificates. The consequential impact on the Capital Work-in-
Progress, Property Plant and Equipment, depreciation and amortization and loss for the year, if
any, is presently not ascertainable.
18. Circle Auditors have reported non-capitalisation of completed Capital Work in Progress in the
books of accounts, though being physically used, due to non-availability of Capital Budget or due
to closure of accounting periods. This has resulted in overstatement of Capital Work in Progress,
and understatement of Property, Plant and Equipment, Depreciation and losses by an amount that
is unascertainable due to insufficient information.
19. Company has capitalised an amount of Rs. 57,873 lakhs to Property Plant and Equipment, which
is not in compliance with Ind AS 23-Borrowing Cost. The interest costs on borrowed funds in
respect of the Property, Plant and Equipment which were capitalized in the earlier years have
not been delimited to the extent of bringing them to their being put to use by the company. The
capitalizing of such interest is also made in the current year without any basis. This has resulted
in overstatement of Property, Plant and Equipment, Capital Work in Progress, and understatement
of losses by an amount that is unascertainable due to insufficient information.
Further the auditors of 14 circles have reported that Borrowing Cost pursuant to applicable Ind AS
has been capitalised based upon ATD/ communication/ excel sheet received from Head Office.
These auditors have expressed their inability to verify the correctness of these borrowing costs for
want of calculations/ details.
Capital Work in Progress (Stores) amounting to Rs 652,924 lakhs also includes Inventory items
which are being used in the repair and maintenance of the projects. Such Inventories have
not been separately classified under the head Current Assets. In the absence of sufficient audit
evidences, we are unable to comment upon the impact of the same on the Capital Work in
Progress (Stores) and Inventory in Current Assets.
20. As reported by auditors of 8 circles, in the absence of information in respect of certain items
of Property Plant and Equipment capitalized, particularly batteries, it could not be established
whether assets capitalized were on account of replacement/ extension of an existing asset or
additional acquisition of a new asset and hence the consequential impact of the same on the
classification/ value of the respective asset, depreciation and amortization, expenses and loss for
the year, if any, is presently not ascertainable.
21. The leasehold land as identified and valued by the respective circles have been incorporated
403
in the books of accounts and amortised with effect from the date of formation of the Company.
Hence, in respect of the lands still not identified and/ or duly incorporated in the books of accounts
of the respective circles, the consequential impact on value of Property Plants and Equipment,
depreciation and amortization and loss for the year, if any, is presently not ascertainable.
22. As detailed in note 41.2 to the financial statements, auditors of 4 circles have reported on the
expired/ non-renewal of leases on lands on which the Company had constructed buildings and
the fact that management has not made any provision for the surrender value/ written down
value of the aforementioned buildings in the anticipation of the ultimate renewal of the leases,
the consequential impact of adjustment on Property Plant and Equipment, depreciation and
amortization and loss for the year, if any, is presently not ascertainable.
23. As stated in note 3(i) and 41.3 to the financial statements, Property Plant and Equipment, inter alia,
includes land pertaining to 5 circles, purchased/ acquired on leasehold/ freehold basis through
various authorities, the title deeds of which are yet to be executed in the name of the Company.
3 Circle Auditors have reported that Title deeds are in the name of DoT and 2 Circle auditors have
reported non-availability of title deeds.
24. The accounting policy of the Company as stated in note 2.1(c) to the financial statements with
respect to the decommissioned assets—now considered as Asset held for sale—hasnot been
uniformly applied across all circles. In 6 circles, the decommissioned assets are not recorded at
While in 3 circles, the decommissioned assets have not been appropriately adjusted from the
block of Property Plant and Equipment and depreciation and amortization is still being charged
on such decommissioned assets. In the absence of sufficient details, we are unable to comment
upon the impact of adjustment on the Property Plant and Equipment, current assets, depreciation
and amortization and loss for the year, if any, arising out of the same.
Certain Circle Auditors have reported that WIMAX and CDMA equipment, though not being
used have not been considered as decommissioned assets. The consequential impact on value
of Property Plants and Equipment, depreciation and amortization and loss for the year, if any, is
25. (i) As reported by auditors of 19 circles, the Company has not consistently adhered to
capitalizing the overhead expenses specifically attributable to the capital work-in- progress
but has recorded the same on estimated/ fixed percentage/ payment basis:
(ii) As reported by auditors of 3 circles, the company capitalizes the assets on periodic basis
instead of at the ready to use date; and
(iii) Accounting policies regarding capitalization, disposal, depreciation and amortization of
Property Plants and Equipment are not uniformly applied in case of 9 circles.
1 circle auditor has reported that Overhead Costs have not been included in Capital Work
in Progress and have instead been charged to Revenue. The management in its reply has
stated that due to Budget constraints, the expenses could not be debited to CWIP. This
has resulted in overstatement of Expenditure and losses by a sum of Rs. 3,984 lacs and
understatement of Capital Work in Progress by the like amount.
The resultant impact of the above non compliances with the standards on the value of
404
Property Plant and Equipments, Capital Work-in-Progress, Depreciation and amortization

and loss for the year, if any, are presently not ascertainable.
26. As detailed in Note 3, during the financial year 2017-18 the company has changed the classification
for decommissioned assets from Property Plant and Equipment to Assets held for Sale. Prior to this
change Decommissioned assets were disclosed at written down value and provision was made
for diminution in the value of decommissioned assets. The company has during the year, based
upon an internal assessment, the details whereof were not provided to us, classified assets held
for sale and these have been valued at lower of carrying amount and net realisable value, and the
corresponding gain or loss on the assets held for sale is recorded in ‘Excess liabilities written back
no longer required’ under ‘Other income’ (refer note 33) and ‘Write off and losses (other than bad
debts)’ under ‘Other expenses’ (refer note 37) respectively.
In terms of Ind AS 105 Non-Current Assets Held for Sale and Discontinued Operations an entity
shall classify a non-current asset (or disposal group) as held for sale if its carrying amount will be
recovered principally through a sale transaction rather than through continuing use. The asset
(or disposal group) must be available for immediate sale in its present condition subject only
to terms that are usual and customary for sales of such assets (or disposal groups) and its sale
must be highly probableduly indicated by existence of management’s committed plan to sell
the asset (or disposal group), and commencement of an active programme to locate a buyer and
complete such plan. Further, the asset (or disposal group) must be actively marketed for sale at
a price that is reasonable in relation to its current fair value. Thus, an asset (or disposal group)
cannot be classified as a non-current asset (or disposal group) held for sale, merely because the
entity intends to sell it in a distant future. This classification is not in accordance with Ind AS
105. This has resulted in understatement of Provision for Diminution in the value of Asset held
for sale, and understatement of losses by recognition of unrealised gains the amount of which is
27. The company does not follow a system of obtaining confirmation and performing reconciliation of
balances in respect of trade receivable, deposits with government departments/ companies (inter-
alia, including Mahanagar Telephone Nigam Limited and Bharat Broadband Network Limited),
claims recoverable from/ payable to DoT (including license fees payable as detailed in note
48(A) of the Ind AS financial statements) or to/ from other government departments/ authorities,
subscriber/ customer deposit accounts, trade payable and claims payable. Due to non- availability
of confirmation(except MTNL), and reconciliations of the aforementioned account balances, we
are unable to quantify the impact of the adjustments, if any, arising from reconciliation and
settlement of account balances on the financial statements.
One circle auditor has reported receipt of debtor’s payment of that circle by the other Circle,
without issuing any ATC to this Circle.
28. (i) As reported by auditors of certain circles, there are unquantifiable differences between
the general ledger/ trial and accounting records pertaining to loans and advances, current
assets and current liabilities. The impact on the Ind AS financial statements, if any, owing
to the aforementioned non-reconciliations is presently not ascertainable.
(ii) As detailed in Note No 13(a), the differences in General Ledger Balance and Subsidiary
ledger of Receivables is Rs 9,783 lakhs. The difference of balances is incorrectly stated
405
since only the net differences has been stated. The gross differences are amounting to
Rs. 21,017.54 Lakhs. The impact on the Ind AS financial statements, if any, owing to
aforementioned non-reconciliations is presently not ascertainable.
29. Circle Auditors have reported lack of suitable system for issue, recording, movement, physical
verification of Inventories/ Capital Work in Progress (Stores). The consequential impact on the Ind
AS financial statements, if any, as a result of the same is presently not ascertainable.
30. As reported by auditor of 4 circles, there are differences in the inventory records between stores
ledger and general ledger/ trial balance, the impact of the same is currently not ascertainable.
31. As reported by auditor of 3 Circles, there has been non-adherence to the Company’s policy of
valuation of inventory on weighted average method as stated in note 2.2(i) to the Consolidated
Ind AS financial statements. The impact of the adjustment, if any, on inventory, consumption and
loss for the year is presently not ascertainable.
32. 8 Circle auditors have reported non identification of Slow Moving, Non Moving, Obsolete and
Damaged items of Inventory. The impact of the adjustment, if any, on inventory, consumption,
Provisions and loss for the year is presently not ascertainable.
Inter/ Intra Circle Remittance Account

33. As detailed in note 43 to theInd AS financial statements, the Inter-Circle/ Unit remittance balances
amounting to Rs. 7,919 lakhs (Debit) are yet to be reconciled. Pending such reconciliations, the
possible cumulative impact of the adjustments, if any, on assets and liabilities and the current and
prior year(s) income and expenditure is presently not ascertainable.

34. (i) As stated in note 39.3 to the financial statements, the Company’s license and spectrum,
fees payable to DoT for the year ended 31 March 2018 amounts to Rs. 174,338 lacs and is
calculated on the Adjusted Gross Revenue (‘AGR’) which is determined by the management
by excluding the interest income on income-tax refund received during the year amounting
to Rs 1,864 lacs. In our opinion, the license fees is understated by Rs. 149.12 lakhs since
such interest income has not been included in determination of AGR for computing the
license fees. Had the aforesaid expenditure been accounted for, license and spectrum fees
and loss for the year ended 31 March 2018 and current liabilities as at that date would have
been higher by Rs. 149.12 lakhs and the reserve and surplus as at that date would have
been lower by the same amount.
(ii) As reported by auditor of 1 circle, interest received on security deposits is set off directly
from the bills and the interest income is not ascertainable for recognizing liability of license
fees, auditor of 4 circle has reported:
iii) Liquidated Damages recovered from contractors/ suppliers and reduced from relevant
revenue expenditure,have not been included for the calculation of License and
Spectrum Fees.
406
Further, auditors of 5 circles have reported that revenue from NLD/ ILD is not based on actual usage of
pulse and the license fees is based upon estimated basis. Consequential impact on the Ind AS financial
statements, if any, as a result of the same is presently not ascertainable.

35. The provisions and the disclosures with regard to matters under litigations have been made based
upon the management estimates. Based upon the report of auditors of 12 circles, sufficient and
appropriate audit evidence for examining and verifying the quantum of contingent liabilities
disclosed in note 50 to the Consolidated Ind AS financial statements has not been obtained.
In the absence of the adequate details and documents and pending the responses to our
confirmation requests in respect of the litigations, the impact of adjustments/ disclosure, if any,
on the Consolidated Ind AS financial statements is presently not ascertainable.
36. As stated in Note No 49, certain claims of MTNL on various accounts are under reconciliation
and settlement process. In the absence of sufficient details and audit evidences in respect of the
amount of such claims, the impact of adjustments/ disclosure, if any, on the Consolidated Ind AS
37. As reported by 13 circles, the circles have not made provision for the disallowance of subsidy
claimed from Universal Service Obligation Fund (‘USOF’). The impact of the adjustment, if any,
in respect thereof on current assets and loss for the year is presently not ascertainable. The
consequential impact of adjustments, if any, on the Consolidated Ind AS financial statements is
Miscellaneous
38. As detailed in Note no 12, the company had pursuant to the Government of India, Ministry
of Communications and IT, Department of Telecommunications order, made an investment of
Rs. 20,000 lakhs [Rupees Twenty Thousand Lakhs] in the 7% Redeemable cumulative preference
shares each of Rs. 100/– fully paid up, in the financial year 2002–2003 in ITI Limited. The company
explains that ITI Limited will redeem preference shares immediately on release of the financial
assistance by the Government of India to ITI Limited as a part of revival package. Such preference
shares have a specified (contractual) term and considering the observable Level 2 inputs, in
terms of Ind AS 113, Fair Value Measurement, including the condition of such investment and
significant decrease in the volume or level of activity for in relation to normal market activity, for
substantially the full term of such investment, we report that the company has not provided for
the impairment loss on such investment as the transaction price does not represent its fair value.
This accordingly has resulted in understatement of net loss by Rs. 20,000 lakhs and overstatement
of corresponding investments by the same amount for the financial year 2017-2018.
39. The Company has not complied in respect of the following Ind AS notified under Section 133
of the Act, read with Rule 3 of the Companies (Indian Accounting Standards) Rules, 2015 (as
amended).
i. As reported by auditors of 2 circles, the expenses, incomes, assets and liabilities are
not properly disclosed under the reportable segments as per the Ind AS 108-“Operating
Segments”. In our opinion, the same does not give true and fair disclosure of the segment-
wise operations of the Company as required by the aforementioned Ind AS.
407
ii. The company has not carried out any techno-economic assessment during the year ended
31 March 2018 and hence identification of impairment loss and provision thereof, if any,
has not been made. The same is not in accordance with the notified Ind AS 36 “Impairment
of Assets”. The consequential impact of adjustment, if any, on the Consolidated Ind AS
financial statements is currently not ascertainable.
iii. The accounting for capital and revenue grant in accordance with the notified Ind AS
20 “Accounting for Government Grants and Disclosure of Government Assistance” is
not followed consistently. In the absence of specific details, the consequential impact
of adjustment, if any, on the Consolidated Ind AS financial statements is presently not
ascertainable.
iv. The accounting policy as referred to in note 2.2(m)(iii) to the statements with respect to
the liability on account of post-retirement medical benefits of employees including retired
employees, a defined benefit plan, is recognized on actual basis in respect of bills received
by the company instead of recognizing the liability for the same as the present value of
the defined benefit obligation at the balance sheet date calculated on the basis of actuarial
valuation in accordance with the notified Ind AS–19 “Employee Benefits”. The consequential
impact of adjustment, if any, owing to this non-compliance on the Consolidated Ind AS
v. As reported by 5 circles, contract revenue and contract costs pertaining to construction
contracts have not been accounted for in accordance with the notified Ind AS 11
“Construction Contracts”. In the absence of specific details, the consequential impact
of adjustment, if any, on theConsolidated Ind AS financial statements is presently not
ascertainable.
vi. As detailed in Note No. 41(2) the company has certain leasehold land, the lease tenure of
which in earlier year(s) and is not renewed in current year. Pending renewal of such lease,
period and non-availability of sufficient information about the timeline by which it would
be renewed, the classification of such land made by the company as finance lease is not in
conformity with Ind AS 17 “Leases”. 4 circle auditors have reported that certain provisions
including disclosure requirements as per Ind AS 17 “Leases”, have not been complied
with. In the absence of specific details, the consequential impact of adjustments, if any, on
theconsolidated Ind AS financial statements is presently not ascertainable.
40. (i) The company has not identified and restated the prior year financial statements with regard
to prior period transaction recorded in the current financial year in violation of Ind AS-8 Prior
Period items. In the absence of specific details, the consequential impact of adjustments, if
any, on the consolidated Ind AS financial statements is presently not ascertainable.
(ii) As stated in the note 2.2(v) of the financial statements, individual transactions of income/
expenditure exceeding Rs. 5 lacs, are considered for evaluation as prior-period items. The
revenue and expenditure for the current year, inter alia, includes amount pertaining to
prior period(s) as reported by auditors of 7 circles. This is not in accordance with the Ind
AS 8 “Accounting Policies, Changes in Accounting Estimates and Errors”. In the absence of
specific details, the consequential impact of adjustments, if any, on the consolidated Ind AS
41. As reported by 11 circles and detailed in note 28 to the Consolidated Ind AS financial statements,
408
these circles have not identified units covered under Micro, Small and Medium Enterprises
Development Act, 2006 (‘MSMED Act, 2006) and hence disclosures as required under the MSMED
Act, 2006 have not been given. The consequential impact of the same on the consolidated Ind AS
financial statement is presently not ascertainable.
42. The disclosure requirements of the Schedule III, Division II of the Act have not been properly
adhered to in the presentation and disclosure of Consolidated Ind AS financial statements of the
Company in respect of classification of assets/ liabilities into current and non-current and secured
and unsecured, whether applicable; categorization of assets/ liabilities into appropriate captions;
changes in inventory; related party; capital and other commitments and expenditure and earnings
in foreign currency.
43. 36 Circle auditors have reported non-compliance of Goods and Service Tax (GST) provisions
with regard to charging, deposition, availing Input Tax Credit, reconciliation of GST returns with
books of accounts, identification of creditors remaining beyond 180 days from the date of supply
for reversal of Input Credit and availing of Transitional Credit on CENVAT. In the absence of the
appropriate details, we are presently unable to ascertain the impact, if any, on the adjustment or
disclosures to be included in these consolidated Ind AS financial statements.
44. As reported by auditors of 13 circles, compliances with regard to deposition, deduction,
reconciliation of service tax, tax deducted at source and value added tax are pending to be made.
In the absence of specific details, we are unable to comment on its consequential impact, if any,
on the Consolidated Ind AS financial statements.
45. As detailed in notes (a) and (b) of the Cash Flow Statement, certain assumption have been made
for the purpose of preparation of the Cash Flow Statement. In the absence of the appropriate
details, we are presently unable to ascertain the impact, if any, on the adjustment/ disclosures in
the Cash Flow Statement.
46. Certain subsequent events or circumstances may have occurred between the auditor’s report date
of the respective circles of the company and that of this audit report. Such events or circumstances
could significantly affect the accompanying Ind AS financial statements or the related disclosures
forming part of these Consolidated Ind AS financial statements of the company. In the absence
of sufficient appropriate audit evidence in respect of the other circles, the impact of adjustments,
if any, or disclosures to be included in these Consolidated Ind AS financial statements of the
company cannot be ascertained
47. The company has not complied with Ind AS 16 “Property, Plant and Equipment” by not attributing
the dismantling costs to each part of an item of Property, Plant and Equipment with the cost that
is significant in relation to the total cost of the item. Auditors of 4 circles have reported that value
considered for Asset Retirement Obligation has been generated by internal department which is
neither certified by any Certified Valuer, nor calculated in appropriate method and the same has
been calculated on estimated basis. The impact of the adjustment, if any, in respect thereof on
asset, depreciation and loss for the year is presently not ascertainable.
Qualified Opinion
48. In our opinion and to the best of our information and according to the explanations given to
us,except for the effects/ possible effects of the matters described in the Basis for Qualified
Opinion paragraph, the aforesaid consolidated Ind AS financial statements give the information
409
required by the Act in the manner so required and give a true and fair view in conformity with
the accounting principles generally accepted in India including the Ind AS, of the state of affairs
(financial position) of the company as at 31st March 2018 and its loss (financial performance
including other comprehensive income), its cash flows and the changes in equity for the year
ended on that date.
Other Matters
49. We did not audit the financial statements of 47 circles of the Holding company included in
the consolidated Ind AS financial statements of the company whose financial statements reflect
total asset including intra/ inter circle remittances of Rs. 70,91,895 lakhs as at 31st March 2018
and total revenues of Rs. 24,81,356 lakhs for the year ended on that date. The Ind AS financial
statements of these circles have been audited by the circle auditors whose reports, except the
audited standalone Ind AS financial statements of 1 circle,have been provided to us by the
management and our opinion in so far as it relates to the amounts and disclosures included in
respect of these circles is based solely on the report of such circle auditors and the management.
50. We did not audit the financial statement of 1 subsidiary, whose financial statements reflect
total assets of Rs 17 thousands as at 31st March, 2018, total revenues of Rs Nil and net cash
outflows amounting to Rs 27,503 thousands for the period ended on that date, as considered in
the consolidated Ind AS financial statements. These financial statements are unaudited and have
been furnished to us by the Management and our opinion on the consolidated Ind AS financial
statements, in so far as it relates to the amounts and disclosures included in respect of these
subsidiary and our report in terms of sub-sections (3) and (11) of Section 143 of the Act, in so far
as it relates to the aforesaid subsidiary, is based solely on such unaudited financial statements
(Refer ‘Annexure-I’ attached). In our opinion and according to the information and explanations
given to us by the Management, these financial statements are not material to the Group.
Report on Other Legal and Regulatory Requirements
51. The Companies (Auditor’s Report) Order, 2016 (“the Order”) issued by the Central Government
of India in terms of Section 143(11) of the Act is not applicable for the consolidated Ind AS
financial statements in view of paragraph 2 of the said order..
52. As required by section 143(5) of the Act, we give in “Annexure II” a statement based on the
directions issued and matters specified by the Comptroller and Auditor General of India.
53. Further to our comments in Annexure I and II, as required by section 143 (3) of the Act, and based
on the Auditors report of the circles, we report that:
a. We have sought and, except for the matters/ effects/ possible effects of the matters described
in the Basis for Qualified Opinion paragraph, obtained all the information and explanations
which to the best of our knowledge and belief were necessary for the purpose of our audit;
b. Except for the effects/ possible effects of the matters described in the Basis for Qualified
Opinion paragraph, in our opinion, proper books of account as required by law have been
kept so far as it appears from our examination of those books;
c. The matters described in the Basis for Qualified Opinion para above, in our opinion may
have an adverse effect on the functioning of the group.
410
d. Except for the effects/ possible effects of the matters described in the Basis for Qualified
Opinion paragraph, the consolidated Ind AS financial statements dealt with this report
are in agreement with the books of accounts maintained for the purpose of preparation of
Consolidated Ind AS financial statements.
e. Except for the effects/ possible effects of the matters described in the Basis for Qualified
Opinion paragraph, in our opinion, the aforesaid consolidated Ind AS financial statements
comply with the Indian Accounting Standards prescribed under section 133 of the Act.
f. Since, the company is a Government Company, section 164(2) of the Companies Act,
2013 regarding obtaining written representations from the directors of the Company, is not
applicable to the company in terms of notification no. GSR-463(E), issued by Ministry of
Corporate Affairs;
g. The qualification relating to maintenance of accounts and other matters connected therewith
are as stated in the Basis for Qualified Opinion paragraph.
h. With respect to the adequacy of the internal financial controls over financial reporting of
the Company and the operating effectiveness of such controls, refer to our separate report
in “Annexure-III”; and
i. With respect to the other matters to be included in the Auditor’s Report in accordance with
Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion and to the best
of our information and according to the explanations given to us:
i. Except for the effects/ possible effects of the matters described in paragraph 37 of the
Basis of Qualified Opinion above, as detailed in Note 49 to the consolidated Ind AS
Financial statements, the Company has disclosed the impact of pending litigations on
its financial position.
ii. The Company did not have any long term contracts including derivative contracts for
which there were any material foreseeable losses;
iii. There were no amounts which were required to be transferred to the Investor
Education & Protection Fund by the Company.
For ANDROS & CO

Sd/-
(Puneet Gupta)
Partner
Place: New Delhi

Date: 4th October, 2018
411
Annexure-1 to the Independent Auditors Report of even date to the members of Bharat Sanchar
Nigam Limited on the Consolidated Ind AS financial statements for the year ended 31st Match 2018.
Summary of the financial information of Subsidiary as at/ for the year ended 31st March 2018
Total Revenue Total Profit/

Total
Total Assets as for the (Loss) for the Name of
Name of Liabilities as
at 31st March year ended year ended Auditors and
Subsidiary at 31st March
2018 (Rs. in 31st March 31st March date of Audit
Company 2018 (Rs. in
thousands) 2018 (Rs. in 2018 (Rs. in Report
thousands)
thousands) thousands)
BSNL Tower 17 17 0 (27503) Unaudited
Corporation
Limited
412
Annexure II to the Independent Auditor’s Report of even date to the members of Bharat Sanchar
Nigam Limited on the Consolidated Ind AS financial statements for the year ended 31 March 2018
REPORT ON DIRECTIONS/ SUB DIRECTIONS UNDER SECTION 143(5) OF THE COMPANIES ACT,
2013 ISSUED BY THE COMPTROLLER AND AUDITOR GENERAL OF INDIA TO THE STATUTORY/
CIRCLE AUDITORS OF BHARAT SANCHAR NIGAM LIMITED FOR CONDUCTING AUDIT OF
ACCOUNTS FOR THE YEAR 2017-18
Holding Company:

(1) Whether the Company As reported by the auditors of the following circles, the
has clear title/lease deeds Company has clear title, lease deeds for freehold and
for freehold and leasehold leasehold respectively:
respectively? If not please
1. Eastern Telecom Project (ETP)
state the area of freehold and
2. Southern Telecom Project (STP)
leasehold land for which title/
lease deeds are not available. 3. Telecom Factory, Mumbai (TF-Mumbai)
4. NATFM
The following circle has reported that the Company does not
have clear title/lease deeds and they are unable to comment
on the area of freehold and leasehold land for which the
aforementioned deeds are not available:
1. BRBRAITT
2. Chhattisgarh
The following circles have annexed details of freehold and

leasehold land for which title/lease deeds are not available or
for which mutation is in process: (Refer Appendix-A)
1. Andhra Pradesh
2. Haryana
3. Himachal Pradesh
4. Karnataka
5. Kerala
6. Uttarakhand
8. Northern Telecom Project (NTP)
9. Punjab
The auditors of the following circles have reported that the

Company does not have any leasehold/ freehold land and
hence the question is not applicable to the following circles:
413
1. NFS
4. NCNGN
The auditor of Telecom Factory Mumbai circle has stated that

this direction is not applicable to the Company for the current
year as the Company has not been selected for disinvestment.
The auditors of the following circles were unable to comment

on the title of freehold and leasehold land in the absence of
requisite documents:
1. Assam
2. Gujarat
3. Jharkhand

ANDAMAN & NICOBAR
The Title Deed of Freehold lands held by BSNL are being

processed for Mutation form DOT to BSNL. There is a
Mismatch between total area of land as per land register and
land documents and the same is not duly reconciled.
ALTTC
The Land on which the ALTTC building is situated along

with the building itself is not in the name of BSNL, although
the consideration for acquiring the land from Department of
Telecom was paid to them but the Title was not transferred
in the name of BSNL because the title is still in the name of
CPWD (which has sold the land to Department of Telecom).
Total Area of land which was acquired from DOT was 81
acers as at 01.10.2000.
414

The said land was then in the name of CPWD (erstwhile
owner, who had transferred the land to DOT) and is still as it
is, in the records of Ghaziabad revenue records/ Tehsil.
The entire area of land measuring 81 acres is still in the name

of CPWD in the records of Ghaziabad revenue records/
Tehsil. For the purpose of Ind AS, this area of land had been
revalued at Rs. 536.92 crores in FY 2016-17.
BIHAR
The maximum parcels of land were transferred to BSNL by

DoT at time of incorporation which is under possession of
BSNL. The acquisition of title deeds of these lands is under
process. For Lands purchased and taken on lease by BSNL
the title deeds is available. Sale deeds of 21 land parcels are
available with units
JAMMU & KASHMIR
Title deeds/ letters of allotment of various lands reflected

under Property, plant and equipment have not been produced
to us. We are unable to verify correctness of classification
between freehold and leasehold land in absence of such
records. As informed to us, title of some of these lands is yet
to be transferred in the name of the Company. It has been
reported to us that at Leh BA, all documents pertaining to
land have been lost in the flash floods in 2010.
JAMMU & KASHMIR
i) Freehold Building has been constructed on the Lease

hold Land acquired from KOPT. Tax on the above is
paid to KOPT along with the Lease Rental since there is
no separate Mutation of the property in the name of the
Circle.
ii) Lease hold Land has been acquired from Kolkata Port Trust
(KOPT) on which Lease Rental is paid to KOPT. The Lease
was for 30 years ending in 1995 and renewed subsequently
by KOPT vide letter no. Lnd 4423/1/V/11/5109 dated zs”
March, 2011. However, Lease Deed of such property is
not available for verification.
415
MADHYA PRADESH
On the basis of our examination books and records and

according the information and explanation given to us, the
BSNL Madhya Pradesh is in the process of transferring the
title deeds in respect of Lands. Mutation for 391 no. of lands
have been carried out till date out of 566 lands in the name
of BSNL and the balance 175 nos. of lands are balance to
be mutated.
MAHARASHTRA
We have been informed that the circle has been showing land
under two categories i.e. under leasehold and freehold and
total approximate area is 54,96,406.59 sq. metres comprising
of 1729 plots. Out of such plots, mutation in the name of BSNL
is still pending for approximately 36,25,537.34 sq. metres
(830 plots). Likewise, in the case of freehold land from above
830 plots of total area 30,36,465.09 sq. mtrs (728 plots), the
mutation in the name of BSNL is pending for 360 plots. We
have also been informed that there are approximately 17 plots
having 63,836.51 sq. metres which are under dispute. There
are 251 vacant plots of approx. area 4,86,108.9 sq. mtrs.,
for which mutation, has not been done in the name of BSNL
as reported to us, we have been informed that there is no
practice of physical verification of the fixed assets, however,
in the year 2013, a joint verification was done with the DOT
and on the basis, they have noted that there is encroachment
on 3812.95 sq. metres.
ODISHA
The Circle has clear title / lease deeds for 70 (seventy)

numbers of freehold land and 199 (one hundred ninety nine)
numbers of leasehold land. There is 1 (one) freehold land
at Sambalpur area measuring Ac. 01.27 and 19 (nineteen)
numbers of leasehold land throughout the state of Odisha
measuring 77956.00 Sq. meters in respect of which the title /
lease deeds have expired/ not executed.
RAJASTHAN
Based on the review of asset register and according to

information and explanations given to us, the title deeds of 73
lands are not held in the name of the Company. The details of
the same are given in ‘Appendix A’ of our Audit report.
416

SOUTHERN TELECOM REGION
On the basis of our examination/ test check of books and

records and according to the information and explanation
given to us , the BSNL-STR are in the process of transferring
the tittle deeds in respect of 42 lands. The list of lands in
respect of which the mutation has not been completed is
TELECOM FACTORY JABALPUR
During the year under review it has been observed that

Telecom Factory Jabalpur having three units, one at Bhilai
another at Ricchai and Wright Town. Bhilai and Ricchai
land are taken on lease and Lease Deed of both the units
are proper. As far as Wright town is concern the land taken
over from DOT as on 1st October, 2000. Total area as per
the management informed was 73.73 acre transferred from
DOT out of which 48.85 acre of land has been transferred to
the name of BSNL and 24.88 acre of land remains with DOT.
TELECOM FACTORY KOLKATA
(a) The title deeds of freehold land of at Alipur Telecom

Factory (780 kathas) and at Gopalpur Telecom factory
(17.5 acres) were not available for our verification. In
respect of Kharagpur Telecom Factory photocopy of
lease deed is available for an area of 14.189 acre(lease
expiring on 17.04.2079) and an area of 1.15 acre (lease
expired on 17.04.2005) only. The expired lease deed
has not been renewed by the telecom factory. In respect
of the balance factory area of 0.50 acre and 1.52 acre
no signed lease deed is available. The management has
not made any provision for any contingency arising out
of the renewal of lease and effort should be made for
renewal/ regularisation of leases of land held with or
without lease.
In respect of an area of 1.97 acre and 0.1494 acre

comprising residential plots of Kharagpur Telecom
Factory Housing Complex, possession certificate and
allotment letter received from WBIIDC is available.
(b) We have been informed that no mutation of the above

lads has been done or at any of the telecom factories.
417
TAMIL NADU
i) The circle is holding 4048 square metre of Leasehold

property (Net Value of Rs. 1,698) at Salem for which
proper and valid Lease agreement is in existence.
ii) The title to various immovable properties (Freehold land)

taken over from Department of Telecommunication
(DoT) is yet to be registered in the name of BSNL. The
area of the Freehold land for which title deeds is not
available has been listed out in ‘Appendix A’ attached.
WESTERN TELECOM PROJECT
Title deed relating to land were not produced for verification

and in the absence of relevant documents, the tenure of land
as freehold/ leasehold could not be verified by us. Except
following WTP, Nagpur has changed and handed over
its’office premises located at 2nd and 3rd floor, microwave
building, CTO compound, Nagpur to O/o Principal General
manager, Telecom “0” miles, Nagpur wide letter no. DGM/
TP/EMA/NP/W-18/ASSETS/93 dated 23/12/2011 in favour of
Department of Telecommunication but the same building
still exist in Balance Sheet of BSNL WTP.
KOLKATA TELEPHONES
In respect of title/ lease deeds of Immovableproperties,

it is observed that all the immovable properties are in the
possession of the Company.
Howeverinrespectofcertain immovableproperties acquired

or taken over from Department of Telecommunication
(DOT), Government of India, transfer of title deeds of the
said properties in thenameof theCompany are still pending
as same are under legal process/ execution.
NE-II
As per the information provided to us, pending transfer of the

immovable property in the name of the Company, documents
in respect of some land & buildings acquired during the
period are under legal process/execution. Further in respect of
assets taken over from DoT, formalities for vesting the assets
in favour of the Company wherever necessary/applicable
are under process. Further some of the assets acquired
by the Company are yet to be registered in the name of the
418

Company. Lease hold lands bifurcated and incorporated in
the financial year 2008-09, received by Nagaland SSA from
DoT having aggregate value of Rs. 79.14 lakhs (PY Rs. 79.14
lakhs) have not yet been verified from original lease records.
Details of lands are given in ‘Appendix A’.
QUALITY ASSURANCE
Lands and Buildings transferred by DOT to the company, at

the time of formation of BSNL, like staff quarters and vacant
Lease Land in respect of which the deed for transfer from
DOT to the BSNL is pending execution. Details are provided
in annexure attached.
UTTAR PRADESH (UP) EAST
The Circle UP (East) holds title deeds for a number of free

hold/ lease hold lands but since the title deeds for free hold
and lease hold land are not matched with financial records
hence we are unable to comment whether the Company has
clear title/ lease deeds for all free hold and lease hold land
respectively and if not for which assets Circle do not hold
clear title deeds.
UTTAR PRADESH (UP) WEST
As per the information made available to us, Title deeds/ lease

agreement with respect to 36 parcels of leasehold land &
194 parcels of freehold land were not shown/made available
to us for verification. Also for properties pending transfer &
those taken over from DOT, formalities for vesting the assets
in favor of BSNL were not made available for ascertaining
its completion. Further, in respect of Mathura unit, on the
basis of examination of documents, it was found that one title
deed of land situated at plot No. 60 Transport nagar, Mathura
registration date 31-07-2002 of Rs. 3,74,800/-has not been
capitalized in books of accounts.
WEST BENGAL
The clear title/ lease deeds were not available for verification.
Attention is drawn to Para B (1&2) of Note “2” to the
standalone financial statements of the Circle, which indicates
that the conveyance deeds for transfer/vesting title of Land,
Buildings and Other Assets from DoT to company has not
yet been executed. Also attention is drawn to Para 1(c) of
Annexure-“A” to the Independent Auditors’ Report, where it
419
is stated that “Asset Master” in the SAP ERP system does
not have the separate record of each land parcel. In case of
Free Hold land there are 81 records in SAP against 169 land
parcels and in case of Lease Hold Land there are 3 records in
SAP against 38 land parcels. However, the full particulars of
such land parcels including quantitative details and situation
thereof are available with the Circle. Business Area wise
summary of freehold land as provided by the Management
has been furnished in the enclosed ‘Appendix A’ of this
report.
NORTH EAST-I
As informed to us, the Circle has no clear title deeds in the

name of the Company for freehold lands and leasehold
lands, except for one freehold land and few leasehold lands.
However, copies of original title/lease deeds of above said
freehold and few leasehold lands were not made available to
us for our verification; hence we are unable to comment on
clarity of even such title/lease deeds of lands. List of freehold/
leasehold lands provided by the Circle is attached herewith
as ‘Appendix A’. In absence of full details, the same has not
been verified by us.
(2) Whether there are any cases As reported by the auditors of the following circles, there
of waiver/ write off of debts/ were no cases of waiver/write off of debts/loans/interest etc.:
loans/ interest etc., if yes, the
reasons therefore and the 1. Jammu & Kashmir
amount involved. 2. Maharashtra
9. NFS
13. BRBRAITT
15. NCES Telecom Circle/ NCNGN
420

18. ALTTC
22. NATFM Training Institute
23. Telecom Stores Kolkata
24. Information Technology Project Centre
26. Chhattisgarh
In the undermentioned circles, there have been certain write

offs of debts/loans/interest etc., details of which are furnished
below:
ANDHRA PRADESH
The Circle has written off Rs. 1,270.42 Lakhs (Previous

year - Rs. 2,227.25 Lakhs) as bad and doubtful debts during
the current financial year on account of non-recoverability
as per the findings of High Power Committees (HPC) and
Liquidation Board (LBM) constituted at Business Area level
by the Circle for this purpose. The entire amount was already
provided for and the amount equal to the amount of write off
is written back from such provision created in earlier years.
ASSAM
Rs. 1,434.80 Lakhs has been written off from debtors being
untraceable and hence unrecoverable.
BIHAR
For the financial year 2017-18, total amount of written off

bad debt for service provided is Rs. 3,910.78 Lakhs
CHENNAI TELEPHONES
There are cases amounting to Rs. 527.09 Lakhs towards Write

off of Debt with Competent Authorities approval during the
year 2017-18 Business Area wise (CDR, GSM, WLL, BB etc.)
details with regards to write off of Debtors, Late fees, Service
Tax etc.
421
GUJARAT
As per record and information provided to us debtors

amounting to Rs. 760.13 Lakhs were written off during the
year, as management is of the view that the amount is no
longer realizable.
HARYANA
As informed by the management and based on the records

examined, we have not observed any case of waiver/ write off
of debts/ loans/ interest etc. from banks or financial institution
during the year under audit.
However, a sum of Rs. 1,031.92 Lakhs has been written off

on account of bad debts by the Circle during the year under
audit.
HIMACHAL PRADESH
As informed to us, the Circle has written off debtors of Rs.

357.54 Lacs.
JHARKHAND
Debts of Rs. 1,019.58 Lakhs are written off during the year.
As informed write off of subscriber debt is done through
either Lok Adalat, Liquidation Board Meeting or High Power
committee or through technical write off.
KARNATAKA
During the financial year 2017-18 a sum of Rs.703.75Lakhs

has been written off as bad debts. The management of the
KTK Circle is of the view that the possibility of recovery of
these amounts was considered remote.
KERALA
During the year the Circle has written off Sundry Debtors
(GL Code 5022009) for an amount of Rs. 484.74 Lakhs
based on the decisions taken by the Committees constituted
for the same at different dates during the year. In addition,
the Telephone Revenue Accounting (TRA) Department has
cancelled individual telephone bills during the year, which
as explained to us, were on account of mistake in billing.

decisions were taken after exhausting all chance of recovery
from the customers.
422

Based on the information and explanation given to us and
based on the Audit procedures performed by us, we have not
come across any instances of waiver of loans or interest.
MADHYA PRADESH
2017-18 based on procedures / guidelines defined by BSNL
HQ.(Above amt is total of GLs , 5022009 (Bad debt (debts
for service provided) written off) and Rs 9,05,28,545.04 and
GL- 5022010 Service Tax paid for post paid service but not
collected Rs. 57,25,580.99)
NORTH EAST I
As informed to us, and as disclosed in Notes to Accounts, the

Circle has written off debts, considered no longer recoverable,
amounting to Rs. 244.02 Lakhs in the Statement of Profit and
Loss as these amounts are long pending and disputed by the
parties as not payable.
NORTH EAST II
As per the information provided by the Circle and as per our

examination, write off of debts amounting to Rs. 6,419.03
Lakhs and Decommissioned Assets and Others amounting
to Rs. 133.40 Lakhs have been made on account of Normal
Write Off and Technical Write Off as per the instructions of
the Corporate Office.
ODISHA
There are multiple cases of write off of debtors amounting

to Rs. 430.26 Lakhs and there are no case of write off of
loans and interest during the year. The reason for such write
off, as explained to us, is that these are old balances lying
unadjusted / unrealized for a long time and chances of
recovery /adjustment are remote.
PUNJAB
As per information given to us, the circle has written off

debtors Rs. 532 Lakhs due to non recoverability.
RAJASTHAN
As per information and explanations given to us, during the year

under consideration the circle has written off the debts of Rs.
531.35 Lakhs. These debts are written off as per the delegation
of authority and procedures set by BSNL Corporate office.
423
TAMIL NADU
The write off is in line with the policy of the company and
Rs. 707.87 Lakhs has been written off as bad debts and
Rs. 61.09 Lakhs has been written off as unrecovered service
tax during the year.
UP (WEST)
Following cases of old outstanding entries were written off as

was considered not recoverable:
1) W/off loses other than bad debts: Rs. 24.34 Lakhs

2) Bad debts w/off: Rs. 882.46 Lakhs
UP (EAST)
We have not been informed of any such case. However, in

case of Debtors the circle has accounted for total Bad Debts
of Rs. 2,651 Lakhs.
UTTARAKHAND
2017-18 based on procedures defined by BSNL HQ. During
the year company has also technically write off debtors due
for more than 10 years.
WEST BENGAL
On examination of the related records and as per the

information and explanation provided to us the Circle
has written off Rs. 1,121.27 Lakhs being trade receivables
remaining unrecovered for a period of over 5 Years in
accordance with the Order of Corporate Office ref. the
ADG(TR) BSNL Corp office no. 2-32/2002-BSNL/TR dated
19.09.2006.
KOLKATA TELEPHONES
Calcutta Telephone District has written off bad debts

throughout the financial year as follows:
a. Write-off in Land Line Service 1,614.43 Lakhs

b. Write -off in Broad band Services 152.49 Lakhs
c. Write -off in unpaid Surcharge 40.76 Lakhs
d. Write -off in Cellular Mobile Tele Services 134.72 Lakhs
e. Write -off in Lease Circuit 0.63 Lakhs
424

TOTAL – Rs. 1,943.03 Lakhs
The Circle has also written-off an amount of Rs. 260.76 Lakhs

for not being able to collect Service Taxes paid by it in respect
of the above.
Beside the above, the Circle has also Written Back Liability
on account of Security Deposit, Earnest Money and Other
Liabilities amounting to Rs. 3,094.83 Lakhs
(3) Whether the proper As reported by circle auditors, the circles have not received
records are maintained for any assets as gift/grant(s) from the Government or other
inventories lying with third authorities except as stated for the circles below:
parties & assets received as
gift/grant(s) from Govt. or 1. ANDHRA PRADESH
other authorities
In respect of lands received as gift or donation, proper records
are not being maintained and the number, value, ownership
thereof are subject to reconciliation.
The Circle has been maintaining proper records in respect

of assets created (under Left Wing Extremists project) out of
grants received from Government.
2. CHHATTISGARH
In absence of records and documents at the Circle we are not

in a position to comment on assets received as gift from Govt.
or other authorities are properly maintained or not.
3. KARNATAKA
The KTK Circle has received 33 land parcels as a gift from

various village panchayats situated in the State of Karnataka.
These land parcels covers a aggregate area of 28,001 Sqmts.
Out of the 33 Land parcels the title deeds are not available
in respect of 3 land parcels measuring a total area of 2,184
Sqmts.
4. ODISHA
The Circle has received government grants amounting to

Rs.43,40,80,939/- towards LWE Capital Grant during the
Financial Year 2017-18.
5. UP (WEST)
Proper records are maintained with respect to Grant received

from USOF of Rs. 20,92,709/-
425
6. WEST BENGAL
a) As per the information and explanation provided to
us by the management, the Circle has not received
any assets as gifts/ grants from Government or other
authorities during the year. Out of grant received by
the Circle in earlier years Rs. 934.94 Lakhs has been
recognized as income for the current year and the
balance Rs. 3797.71 Lakhs is carried over to the next
year as Deferred Income in respect of the Grant in Aid
for LWE Project.
b) As informed by the Management, the Circle is the
custodian of the inventories in respect of the National
Optic Fiber Network (NOFN) Project. The details
of such inventory are maintained by the NOFN
Department within the Circle but no record of such
inventories is maintained in the SAP ERP system as
these inventories do not belong to the Company.
records are maintained for inventory lying with the
third parties.
1. Jammu and Kashmir

2. Punjab

records are not maintained for inventory lying with the third
parties.
As reported by the circle auditors of the undermentioned

circles, no inventory is lying with the third parties:
1. Assam
2. Bihar
3. Haryana Telecom
4. Himachal Pradesh
5. Jharkhand Telecom
6. Kerala Telecom
7. Madhya Pradesh Telecom
8. Maharashtra Telecom
9. Rajasthan Telecom
426

11. Tamil Nadu Telecom Circle
12. Uttarakhand Telecom
13. Western Telecom Projects
19. NFS
20. NATFM
22. NCNGN Telecom Circle
23. Telecom Store
24. Information Technology Project Circle (ITPC)
25. North East- 1 Telecom
26. ALTTC
27. BRBRAITT
28. NE-II
31. Chennai Telephone
32. Karnataka Circle
33. NETF
34. Odisha
35. UP (West)
36. West Bengal
Following circles’ auditors have reported that the respective
circles do not have any inventory and hence the question is
not applicable to them:
For the remaining circles, please find belowcircle wise
1. NTR
As informed by the management, no inventory is lying with
third parties belonging to circle. The inventory issued to the
contractors is accounted under the head “Work in Progress”.
427
2. ANDHRA PRADESH
i. As per the information and explanations given by the
management and as stated vide Note No. 40.2 of the
Ind AS financial statements the inventories aggregating
to Rs. 4,703 lakhs pertaining to Phase VIII.4 project
of CMTS are lying with the third parties. The Circle
has been maintaining proper records in respect of
inventories lying with the third parties.
ii. ii. In respect of lands received as gift or donation, proper

records are not being maintained and the number,
value, ownership thereof are subject to reconciliation
as stated in paragraphs 16 & 17 above.
iii. The Circle has been maintaining proper records in

respect of assets created (under Left Wing Extremists
project) out of grants received from Government.
3. GUJARAT
Proper records are maintained for inventories lying with third

parties. However, in case of material issued to contractors
against execution of projects is directly charged to CWIP a/c.
and no entry recorded in the a/c code “Material/Equipment
with contractor”. The same remain in CWIP a/c code and
no physical verification reports are made available to us.
It is explained to us that in such cases appropriate bank
guarantee is obtained as per the terms of the contract. As
per the information and explanations given to us, no items
are received as gifts from Government and other authorities
during the year.
4. UP (EAST)
System of accounting and management of inventories in

most of the Bas/ SSAs is not in commensurate with the size
and nature of the inventory due to non-maintenance of Bin
cards, non-maintenance of Price Store Ledger on perpetual
basis which are generally compiled at the quarter or year end,
non adherence with procedure for return of stores issued to
the contractors/ suppliers and lying at sites, lack of proper
system for identification of Obsolete/ discarded/ non-moving/
unserviceable inventory, lack of periodical reconciliation of
inventory in price store ledgers with financial records etc.
However, entire amount of inventory has been classified, as

it is, as Capital Work in Progress in Stores.
428

5. CHHATTISGARH
It is observed in the Circle that Inventory/ Capital Goods

are issued to the Contractors for maintenance/ assets for
installation purpose at various project sites. No site wise list
has been provided to us for our verification. So we are unable
to comment whether records are maintained for inventories
lying with third parties.
In absence of records and documents at the Circle we are not

in a position to comment on assets received as gift from Govt.
or other authorities are properly maintained or not.
6. STP
It has been observed that the management is maintaining

records of inventory with the third party only in physical
format, however no records of stock as on particular day is
available in SAP.
(4) Amount of revenue share As reported by the auditor of following circles provisions for
(license fees and spectrum license fee are not applicable to the respective circles:
usage charges) appearing
in the financial statements 1. Kolkata Telecom Stores
should be thoroughly
Following circles have not reported in respect of the matter:
checked.
1. Bihar
2. Uttar Pradesh (UP) West
3. NFS
Following circles have reported that the revenue share is

correctly calculated as per the norms and guidelines in
license agreement and are appropriately appearing in the Ind
AS financial statements:
1. Andaman and Nicobar

2. Andhra Pradesh
3. Assam
4. Chhattisgarh
5. Easter Telecom Project
7. Gujarat
8. Himachal Pradesh
429
10. Jammu & Kashmir
11. Karnataka
12. Maharashtra
13. NATFM
15. Punjab
16. Uttarakhand
17. Telephone Factory Jabalpur
19. Tamil Nadu
20. UP (East)
21. West Bengal
24. Receipts & Payments and Budget Banking Finance Unit
Separate details as per Appendix-B is attached in respect of

the following circles:
2. Madhya Pradesh
3. NCNGN
4. North East-II
5. Odisha
6. Rajasthan
1. BRBRAIT
Circle has wrongly paid License fee of Rs. 49.10 Lakhs in 2nd
Quarter of F.Y. 2017-2018 instead of actual liability for such
quarter of Rs. 11.15 Lakhs. Such excess amount of Rs. 23.86
Lakhs, after adjusting 3rd and 4th quarter liability towards
license fee has been debited in GL 2610699 “PREPAID
EXPENSES-OTHERS”.
2. ALTTC
The Figures for License fee and spectrum usage charges as
appearing in the financial statements the ALTTC circle of
BSNL, have been checked and one discrepancy was noticed.
As per the management, some rectification entries were missed
430

out during the year. At the time of preparation of provisional
figures (for AGCR) for 4th quarter, there was a calculation
mistake which was as follows:
In Basic LF/USO levy: Rs. 2166.80
In NLD/ILD services: Rs. 896.00
There were manually rectified at the time of submission of
final AGCR but the rectification entries pertaining to these
were not passed in the books of accounts.
3. HARYANA
Revenue share (License fee and Spectrum Usage Charges)

appearing in the financial statements have been correctly
stated except for
a) The Circle segregates revenue from NLD (National

long distance)/ ILD (International long distance) on
an estimated basis instead of actual usage of pulse
which consequently results in recognition of the
Spectrum Charges on an estimated basis. The impact
of adjustment, if any, on the Spectrum Charges is
presently not ascertainable for the year.
b) Liquidated Damages recovered from the contractors/

suppliers, which have been reduced from the relevant
asset cost and relevant revenue expenditure. In our
opinion, the same should be booked as revenue
income.
c) As per the information and explanation given to us, the

Circle has not booked USO Fund subsidy amounting to
Rs. 131.30 Lakhs. Due to this there is under-estimation
of license fee, as the same has not been considered as
revenue for calculation of ‘Adjusted Gross Revenue’.
4. KERALA
As per the accounting policy of the Company, Income from

recharge coupon of mobile and prepaid calling cards is
treated as income of the year in which payment is received.
In our opinion, value of cards sold but not activated and
unused talk time in activated cards should not be treated
as income but should be shown under “Income received in
advance”. This has resulted in overstatement of net profit and
understatement of other current liabilities by Rs. 38.07 Lakhs.
431
This has also resulted in the advance payment of License
Fee, USOF Levy, Spectrum charges and Microwave access
charges to the extent of unexpired portion of these cards. As
per details furnished by Circle, it is estimated that Rs. 99.91
Lakhs is the excess license fee paid, Rs. 166.52 Lakhs is the
excess USO levy paid and Rs. 185.17 Lakhs is the excess
Spectrum charges paid on account of this for this year. Hence,
net profit is understated by Rs. 451.61 Lakhs.
For the purpose of calculating License Fee, USOF Levy and

Spectrum Charges payable to DoT, since copy of the license
agreement with DoT has not been made available to us for
verification, we have relied on Corporate Office instructions
dated 11/04/2011 and 03/03/2016 followed by the Circle.
Circle has wrongly paid License fee of Rs. 49.10 Lakhs in 2nd
Quarter of F.Y. 2017-2018 instead of actual liability for such
quarter of Rs. 11.15 Lakhs. Such excess amount of Rs. 23.86
Lakhs, after adjusting 3rd and 4th quarter liability towards
license fee has been debited in GL 2610699 “PREPAID
EXPENSES-OTHERS”.
5. NORTH EAST I
As detailed in Notes to the financial statements, the Circle

does not have a system of identifying NLD/ ILD revenue
separately based on the actual usage of pulse. In the absence
of such a system, the circle is recognizing the license fee as per
program provided by corporate office and the consequential
impact of adjustment, if any, upon computing the license fee
on actual basis is currently not ascertainable
6. NTP
In respect of license fee payable for the current financial year,

NTP Circle has provided for the following amounts on the
basis of computation carried out by software provided by the
Corporate Office, BSNL. The calculations in respect thereof
cannot be verified at the NTP Circle Office level.
a) License Fee on Basic, NLD, ILD & Internet services

Re. 1.09 Lakhs
b) USOF Levy on Basic, NLD,ILD & Internet services

1.83 Lakhs
432

7. STR
1) We have verified the statement of revenue and loss
for four quarters and the cumulative total for the year
2017-18 of M/s BSNL, STR Chennai with relevant
figure from the trial balance as on 31st march 2018
and the reconciliation statement for the financial year
2017-18 generated from software. We have been
further informed that adjusted gross revenue reflecting
in the statement of revenue and license fee is system
generated.
2) In our view the company has an adequate internal

control system in relation to revenues which
commensurate with its size an business. The system in
our opinion provides reasonable assurance that there is
no unrecorded revenue.
3) No amt. payable in respect of sales tax, service tax,

goods and service tax or PSTN/ toll/ roaming charges
were outstanding at the last date of year ending
31.03.2018 for a period of more than two months from
the date they become payable as per the certificate
received from M/s BSNL,STR Chennai.
4) In our opinion and to best of our knowledge and

belief and according to the explanation given to us,
the statement has been prepared in accordance with
norms/ guidelines contained in said license/ permission
in this behalf and gives a fair and true view of revenue
and license fees payable for the period computed on
the basis of aforesaid guidelines.
8. TELEPHONE FACTORY MUMBAI
We have obtained all the information and explanations which

to the best of our knowledge and and belief were necessary
for the purposes of our audit.
In our view, the circle has an adequate internal control

system in relation to revenues which is commensurate with
it size and nature of its business. The system, in our opinion
provides reasonable assurance that there is no unrecorded
revenue and that all revenue is recorded in the proper
account and in the proper period
433
We have informed that no undisputed amounts payable
in respect of Sales Tax or PSTN/Roaming charges were
outstanding at the last day of the year for a period of more
than two months from the date they become payable.

statement has been prepared in accordance with the circulars
and internal communication for the License Agreement in
this behalf and gives a true and fair view of the revenue and
license fee payable for the period computed on the basis
of aforesaid guidelines, subject to non provision of interest
income on advances to employees and rebate receivable
for speed post services from the Indian Post and Telegraph
Department which are accounted on ‘Cash Basis’.
9. JHARKHAND
The AGR is calculated by separate software provided by HO.

In which the data is captured from SAP. The data captured
has been checked by us but the calculation of AGR has been
done by the software.
10. NTR
The Statement of Revenue and License Fee has been prepared

based on the computation carried out by Excel Software
Programme given by Corporate Office, BSNL. As explained
to us, they said software is prepared in accordance
Subsidiary Company:
The subsidiary company, BSNL Tower Corporation Limited, was incorporated on 4th January 2018 and
its accounts have not been audited. The unaudited accounts for the period ended 31st March 2018
have been considered for consolidation. Hence, no information is available in respect of directions/ sub
directions issued by the Comptroller and Auditor General of India in terms of section 143(5) of the Act.
For ANDROS & Co.

Sd/-
(Puneet Gupta)
Partner
Place: New Delhi
Dated: 4th October, 2018
434
Limited on the Consolidated Ind AS financial Statements for the year ended 31 March 2018”
APPENDIX A
1012-Andhra Pradesh
a. As per the information and explanations provided to us by the management and as stated vide Note No.
38.6 of the Ind AS financial statements, the Circle has lands admeasuring 32,36,563 sqm (for 1668 lands)
(Previous year – 32,34,674 sqm – 1667 lands) of which lands admeasuring 31,71,635 sqm (for 1649 lands)
(Previous year – 31,69,747 sqm – 1648 lands) are freehold lands and lands admeasuring 64,927 sqm (for
19 lands) (Previous year – 64,927 sqm – 19 lands)are leasehold lands.
Regarding Freehold Lands admeasuring to 31,71,635 sqm (for 1649 lands), lands inherited from DOT are
admeasuring to 28,37,377 sqm (for 1135 lands) (Previous year – 28,35,489 sqm, 1134 lands) and lands
acquired are admeasuring to 3,34,258 sqm (for 514 lands) (Previous year – 3,34,258 sqm, 514 lands).
Out of the total DOT lands admeasuring 28,37,377 sqm (for 1135 lands) (Previous year - 28,35,489 sqm,
1134 lands), DOT has given approval for mutation of lands admeasuring 19,39,166 sqm (for 682 lands)
(Previous year -19,38,795 sqm, 682 lands) and the Circle has got the mutation process completed to the
extent of 12,55,158 sqm of land area (for 521 lands) (Previous year - 12,36,456 sqm, 511 lands) and title
deeds are available for these 521 lands (Previous year – 511 lands). Mutation process is not completed for
the remaining area of 6,84,008 sqm (for 161 lands) (Previous year - 7,02,339 sqm, 171 lands).
Out of 682 lands permitted for mutation, 11 lands (previous year – 11 lands) are under joint occupation
with the Department of Posts. In respect of these 11 lands, 4 lands (previous year – 4 lands) are bifurcated
and mutated in the name of BSNL and 7 lands (previous year – 7 lands) are not yet bifurcated. Pending
the identification process by Joint survey to confirm the larger area of occupancy between Department of
Telecommunications and Department of Post and consequent acquiring of immovable property and its title
deeds by one of the parties holding larger occupancy, no title deeds are held by the circle in respect of
these 7 lands under joint occupancy.
Out of the total lands admeasuring 3,34,258 sqm (for 514 lands) acquired by the Circle, title deeds are
available for lands admeasuring 2,37,470 sqm of lands (for 333 lands) (previous year - 2,37,470 sqm, 333
lands) and title deeds are not available for lands admeasuring 96,788 sqm (for 181 lands) (previous year -
96,788 sqm, 181 lands).
Regarding Leasehold lands, the Circle has taken lands admeasuring 64,927 sqm (for 19 lands) on lease of
which lands admeasuring 58,251 sqm (for 15 lands) (previous year - 58,251 sqm, 15 lands) are under the
lease hold rights of DOT and lands admeasuring 6,676 sqm (for 4 lands) (previous year - 6,676 sqm, 4
lands) are under the lease hold rights of the Circle.
For lands under the lease hold rights of DOT, lease deeds in the name of DOT are available for lands
admeasuring 41,978 sqm (for 9 lands) (previous year - 41,978 sqm 9 lands) and not available for lands
admeasuring 16,273.5 sqm (for 6 lands) (16,273.5 sqm, 6 lands).
For lands under the lease hold rights of the Circle, lease deeds are available for all the 4 lands (previous
year - 4 lands) admeasuring 6676 sqm.
1017-Haryana
Details of freehold land and leasehold land not in the name of the Circle/ the Company:
435
Freehold Land
1 Ambala Arya Chowk, Part-I, Ambala City 7300 2,566.65
2 Ambala Arya Chowk, Part-II, Ambala City 1533 1,100.07
3 Ambala T.E. Compound, Yamuna Nagar 543.33 137.08
4 Ambala Staff Quarter Compound, Kalka 3344.87 568.63
5 Ambala Staff Quarter Compound, Yamuna Nagar 2010.52 108.6
6 Ambala M/W Compound, Anaj Madi, Kalka 3486 87
7 Ambala Gulab Nagar, Yamuna nagar 1594.29 223.19
8 Faridabad TE Compound Sector 23 12138 4,624.81
9 Faridabad P & T Colony - NH 2 4825 2,626.31
10 Faridabad Te1ecome/ BSNL Plot F•49 & 49A 441.9 312.69
11 Faridabad BSNL Plot F-21A & 22A 478.79 338.79
12 Faridabad Telecome/ BSNL Plot F-27 187.2 132.46
13 Faridabad TE Compound Nehru Ground 1883 1,844.84
14 Faridabad TE compound - Palwal 2541 821.11
15 Faridabad Telecom/ BSNL Plot L-39A 187.2 132.46
16 Faridabad E-10 B Compound Ser-15 A 6069 4,624.81
17 Faridabad Sector 36 9504 10,346.19
18 Faridabad TE Compound, Ballabhgarh 4236 1,383.42
19 Gurgaon DLF, Phaae - II 3586 4,684.73
20 Gurgaon Sector l8 11975.6 9125.86
21 Gurgaon DTO, BLDG Compound - Gurgaon 442 2,889.05
22 Gurgaon E 10B, Gurgaon 3470.59 4722.85
23 Gurgaon Sec-7, Gurgaon 561 366.43
24 Gurgaon South City Gurgaon 1380 1,201.84
25 Hisar T.E. Compound, Ratia 3035 971.2
26 Hisar T.E. Compound, Abubsahar 758 2.1
27 Hisar T.E. Compound, Hindanwala 2782 1.38
28 Hisar T.E. Compound, Siswal 2159 43.18
29 Hisar T.E. Compound, Uklana 4749 379.92
30 Hisar Adin. Compound, Urban Estate, Hisar 2249 2017.5
31 Hisar Coaxial Staff Quarter, Dabwali 4145.6 580.38
32 Hisar T.E. Compound, Sikanderpur 2023 0.77
33 Hisar T.E. Compound, Sirsa road, Dabwali 4057 566.44
34 Jind TE compound - Julana 4552.56 6.03
35 Jind HUDA Complex Jind 2520 831.6
36 Jind Main Exchange Building Jind 2789.23 4
37 Jind Tele Bhawan Coaxial Building, Jind 3344.4 133.76
38 Jind TE Compound, Eharakramji 67 0
39 Jind TE Compound, Kinana 2431 534.82
40 Jind M/W Compound, Narwana 2431 534.82
41 Jind TE Compound, Narwana 4174.65 667.94
436
42 Jind Old TE Compound, Safidon 152 1.52
43 Karnal DTO, BLDG compound - Panipat 1200 0
44 Karnal Sanchar Kunj Model Town - Panipat 10455 2,509.20
45 Karnal Sukhdev Nagar, Panipat 3921 2823.12
46 Karnal Compound, lsmailabad 4047 262.99
47 Karnal Telecom Store, Karnal 3802 9.94
48 Karnal TE Compound, Nilokheri 1925 596.75
49 Rewari M/w, Naichana 2076.96 13.66
50 Rewari Jhajjar Chownk, Rewari 10000 264.27
51 Rewari Sec- 4, Rewari 6000 3,276.80
52 Rohtak TE Compound - Charkhidadri 4046 1,063.69
53 Rohtak Sanchar Kunj - Bhiwani 1900 294.5
54 Rohtak TE Compound - Tosham 2508 100.32
55 Rohtak TE Compound, Bhawanikheri 3692 147,68
56 Rohtak TE Compound, Bhadra 4046 242.76
57 Rohtak TE Compound, Bhiwani 5226 2,811.05
58 Rohtak TE Compound, Bond 4237 211.85
59 Rohtak Old TE Compound, Charkidadri 280 501.2
60 Rohtak TE Compound, Tigrana 4046.00 9.68
61 Rohtak Main TE Compound, Bhadurgarh 9027.00 4062.15
62 Rohtak DTO Compound, Rohtak 1383.00 1,901.47
63 Rohtak Main TE Compound, Rohtak 4340.00 4,669.84
64 Rohtak Sainipur 1781.00 425.86
65 Rohtak Sec 2,3,4 Rohtak 2000.00 358.67
66 Rohtak Store Compound 2,3,4 Rohtak 11661.50 1,673.04
67 Sonepat Sec-23, Sonepat 1900.00 228
68 Sonepat TE Compound, Ahulana 2800.00 1.77
69 Sonepat TE Compound Akbarpur, Barota 2023.00 182.07
70 Sonepat TE compound, Bhainswal 3390.00 1.37
71 Sonepat TE Copmound, Datauli 2023.00 0.83
72 Sonepat TE Compound, Farmana 2023.00 1
73 Sonepat TE t2ompound, Jantikalan 2023.00 161.84
74 Sonepat TE Compound d Joshi, Chauhan 3306.00 235.2
75 Sonepat TE Compound, Moi 1517.00 0.45
76 Sonepat Exchange Compound, Nahra 4319.00 0.91
77 Sonepat Exchange Compound, Palri 2023.00 0.43
78 Sonepat TE Compound, S.P Majra 1340.00 0.53
79 Sonepat TE Compound, aanwali 2023.00 0.8
Total 266420.19 90292.89
LeaseHold Land
Sl No. Business area Location Area (in S. Metre) `
1 Ambala CGM office compound 10731. 70 1
437
2 Ambala GPO complex 1000.00 1
3 Ambala P & T Colony 4880.25 1
4 Ambala CTO Compound Ambala Cantt 6671.00 1
5 Ambala GMTS Office Compound 10220.00 1
6 Ambala Napier Road Compound 6489.00 1
39991.95 6
Table B: Mutation of land of DoT in favour of BSNL
Sl. No. Particulars No. of Lands

1 Number of Lands permitted for mutation 605
2 Number of Lands mutated as at 31st March 2018 281
1062-NTP
Sl. No. Address Amount Nature of land

1 Jodhpur 1,11,000/- Freehold
4 Allahabad 1/- Freehold
5 Gajraula, Agra 2,59,422/- Leasehold
1028-Punjab
FOR FREEHOLD LANDS
Total No of Land
Sl.No. Business Area Code Business Area Area (Sq. Meters)
Parcels
1 2802 Amritsar 34 73086
2 2803 Bathinda 13 54157
3 2804 Chandigarh 10 37035
4 2805 Ferozepur 47 160649
5 2806 Hoshiarpur 13 54916
6 2807 Jalandhar 14 40166
7 2808 Ludhiana 37 158284
8 2809 Pathankot 19 62054
9 2810 Patiala 27 85275
10 2811 Ropar 3 13587
11 2812 Sangrur 12 32475
FOR LEASEHOLD LANDS

Sl. No. Business Area Code Business Area Total No of Land Parcels Area (Sq. Meters)
1 2801 Circle Office/CMTS 1 11533
2 2804 Chandigarh 13 105344
3 2806 Hoshiarpur 1 929
4 2808 Ludhiana 2 12680
5 2809 Pathankot 1 4182
438
1029- Rajasthan
Based on the review of asset register and according to the information and explanations given to us, the title deeds
of 73 Pcs. of Lands are not held in the name of the company (Refer Note. 2(b) of Schedule 35). The details are as
under
Sl. No. No. of Cases Particulars Gross Block as on 31-03-2018 “Net Block as on 31-03-2018”
1 38 Free Hold 51,419.90 51,419.90
2 35 Lease Hold 448.28 300.92
Total 73 51,868.18 51,720.82
1030- Tamil Nadu
Total No. of
Business Area Area (in Sq. Meters)
Land parcels
Circle Office 1 21282
Coimbatore 12 17866.02
Cuddalore 5 20744.56
Dharmapuri 14 74475.86
Erode 6 15781
Karaikudi 7 25682.79
Kumbakonam 8 18080.75
Madurai 10 23669.22
Nilgiris 10 16872.87
Pondichery 6 2667.13
Salem 8 23448.21
Thanjore 16 22802
Tirunelveli 5 6556.36
Trichy 12 22136.71
Tuticorin 1 1000
Vellore 6 66755.83
Virudhunagar 3 7690.36
Total 130 387511.67
1034-West Bengal
Summary of Free Hold Property
Free Hold Land Parcels

No. Area (sq. mtr.) Cost (Rs. Lakhs)
Kolkata 37 511726.62 68046.46
Circle Office Exhibit 0 0 0
Kharagpur 15 59704 2493.54
Asansole 34 107496.33 10209.79
EZBC 0 0 0
Gangtok 14 37160.26 3078.91
Siliguri 64 211505.19 22863.21
Bankura 5 9257 313.87
Total 169 936849.4 107005.78
439
HIMACHAL PRADESH
Cost of Cost of
Name of Plot to be Mutated Freehold/ Cost of Cost of Dep. For
Sl. No Name of BA Building Building Remarks (if any)
Annexure-1 Leasehold Land(Gross) Land(Net) F.Y 2017-18
(Gross) (Net)
1 Dharamsala T.E., TEL.XGE CHAMBA Leasehold 30000.00 30000.00 2193111.00 965435.51 49068.79
DHARAMSHALA
3 Dharamsala BSNL COMPLEX, TE (RSU) Feehold 142007.00 142007.00 3579609.00 1621155.84 82510.18
DHARAMSHALA
PALAMPUR
5 Dharamsala T.E., TEL.XGE, DALHOUSIE Feehold 386513.00 386513.00 16584798.00 10841323.31 553937.17
6 Dharamsala BSNL COMPLEX, TEL.XGE NAGROTA Leasehold 784040.00 784040.00 13095172.00 5040626.14 359043.16
7 Dharamsala TE, MW STATION DEOGA Feehold 1.00 1.00 0.00 0.00 0.00 Building exists but not in
asset register. The same
will be updated in assets
register during 2018-19
8 Dharamsala MW, MW STATION KANGRA Feehold 1.00 1.00 0.00 0.00 0.00 Building exists but not in
440
asset register. The same

will be updated in assets
register during 2018-19
9 Hamirpur BSNL Complex Ghumarwin Freehold 1.00 1.00 10183813.00 4330009.00 244293.81
10 Hamirpur TE BLDG Hamirpur Freehold 10725000.00 10725000.00 10152758.00 4138140.07 299787.65
11 Hamirpur BSNL Complex UNA Freehold 4800000.00 4800000.00 10042633.00 4167232.45 304564.38
12 MANDI BSNL COMPLEX-Udaipur Freehold 31850 31850 9686975 4622078 237237 Forest Land
13 MANDI TE COMPLEX-Seri Bazar Mandi Freehold 1 1 3824711 1852759 97092 P&T
14 MANDI TE COMPLEX-The Mall Manali Freehold 1 1 8802877 3881139 213945 Municiple Committee
15 Shimla NICHAR T.E. BLDG. COMPLEX Free Hold 1.00 1.00 534000.00 207102.64 -14641.59
KHASRA NO.1007/1
16 Shimla CHOPAL T.E. BLDG. COMPLEX Free Hold 1.00 1.00 6217587.00 2553996.63 -129226.12
KHASRA NO.1499/1485
17 Shimla DOWNDALE BSNL COMPLEX Free Hold 1.00 1.00 1792914.00 691009.30 -56151.64
KHASRA NO.667 TO 675
18 Shimla JATOG CANT SURVEY NO.68&68-A Free Hold 1.00 1.00 0.00 0.00 0.00 Building not constructed
19 Shimla KHARA PATHAR T.E. BLDG. COMPLEX Free Hold 1.00 1.00 0.00 0.00 0.00 Building not constructed
KHASRA NO.565/532
20 Shimla MAHASUPEAK M/W COMPLEX Free Hold 1.00 1.00 505625.00 280072.67 -14279.93
KHASRA NO.1/1
Cost of Cost of
Name of Plot to be Mutated Freehold/ Cost of Cost of Dep. For
Sl. No Name of BA Building Building Remarks (if any)
Annexure-1 Leasehold Land(Gross) Land(Net) F.Y 2017-18
(Gross) (Net)
21 Shimla MASHOBRA T.E. BLDG. COMPLEX Free Hold 1.00 1.00 0.00 0.00 0.00 Building not constructed
KHASRA NO.419/266
22 Solan Kasauli freehold 0 0 466,368.00 260,738.60 7,796.84
23 Solan Kasauli freehold 0 0 1,052,720.00 420403.49 15,129.27
24 Solan Patta Mehlog freehold 0 0 4,015,808.00 1888432.19 93,038.74
25 Solan Solan(P & T)Colony freehold 0 0 816,931.00 383200.77 19,495.19
26 Solan TE SECTOR-1, SEC-1 PARWANOO freehold 0 0 160,812.00 73462.39 3736.03
27 Solan H.B.COLONY, PARWANOO freehold 0 0 337,264.00 147,527.38 7497.78
28 Solan S.Q., SAPROON SOLAN freehold 0 0 560,410.00 348120.92 17,773.43
29 Solan TE, VILL- SANGRAH freehold 0 0 3,003,670.00 1,308,967.48 66,523.19
Total 16941422 16941422 131417249 56844413.24 2818519.19
1053-STR
441
Cost at the
Total Area
Sl Unique Location of the Property as per date of time of
Revenue District Station Name of Compound of Land in
No CODE Revenue Records acquisition Aquisition in
sqmts
Lakhs
1 472830130 CHENNAI ANNA NAGAR ANNA NAGAR STR STAFF TS NO. 2 BLOCK-3 OF MULLAM 1970 1.40625 6362
QTRS VILLAGE AND NEW S. N. 8/9
BLOCK NO. 12 OF AYANAVARAM
2 472830129 CHENNAI GUINDY CGM(O) S.F.NO 32/17 18 19 & 32/14 15 1993 36.78735 1604
3 472830298 CTD-CHENNAI MENAMPEDU MEENAMBEDU CXL CHENNAI S.F. NO 216 &222/2 00-00-1972 0.47655 98136

CHENNAI CXL MW STN
4 472830451 ERNAKULAM ERNAKULAM DTS COMPOUND NIL 24-03-1969 0.00001 2600
5 472830453 ERNAKULAM ERNAKULAM DTS SQ COMPOUND 47/22-1&47/22-2 24-03-1969 1.42099 1601
6 472830162 ERNAKULAM KALOOR KALOOR MW STN 2205/4 587/10 11 13-03-1974 4.63822 9049.6
7 472830165 ERNAKULAM MUVATTUPUZHA MUVATTUPUZHA 124/6A1 6B2 28865 0.85 8903
-MEENAKKUNNAM MEENAKKUNNAM SAT E/S
8 472830202 GUNTUR NARASARAOPET NARASARAOPET-OFC TS NO 249 AND 300 28859 2.72577 4271
9 472830258 HYDERABAD BANJARA HILLS BANJARA HILLS MW STN S NO 403 OF SHEIKPET AND 102 29224 0.9025 8060
OF HAKEEMPET
10 472830444 IDUKKI PAINAVU IDUKKI MW/DTS S.NO. 161/1 31-03-1986 0.99 1335.5
Cost at the
Total Area
sqmts
Lakhs
11 472830082 KANCHIPURAM CHUNAMPEDU CHUNAMPEDU REPTR STN 30 CHUNAMPEDU VILLAGE R S NO 24-6-1981 0.00001 121.41
284/3B
12 472830083 KANCHIPURAM KANTHADU KANTHADU REPTR STN 33 KANTHADU VILLAGE R S NO 27489 0.003 81.08
239/4
13 472830491 KANCHIPURAM MUPPANIHALMALAI MUPPANIHALMALAI MW R S NO 99/2 14-09-1977 0.00001 2500
14 472830087 KANCHIPURAM PERIYAKALAKADI PERIYAKALAKADI REPTR STN PERIYAKALAKADI VILLAGE R S 30-11-1974 0.0015 81.08
REPTR 28 NO 37/7
15 472830213 KRISHNA BHIMAVARAM BHIMAVARAM-MW OPP NH-9 BHIMAVARAM 33034 0.5 2400
16 472830212 KRISHNA VIJAYAWADA VIJAYAWADA MW 0/0 NO RECRD 15-08-1947 2.18383 1987.2
17 472830281 MEDAK KALAKKAL KALAKKAL MW STN S NO 180/2 31781 0.8423 1618.9
18 472830353 MYSORE MYSORE SIDDHARTHANAGAR SQ 0/0 00-00-1974 0.46667 1858
19 472830073 NAGERCOIL MUPPANDAL (VLO- MUPPANDAL REPEATER STN S.F. NO 41/1 THOVALAI VILLAGE- 1974 0.006 80.97
NGC RS 15) THOVALAI TALUK-KANYA
20 472830271 NALGONDA SURYAPET SURYAPET SQ S NO 216 30682 1.6097 1661.5
21 472830274 NIZAMABAD KAMAREDDY KAMAREDDY OFC STN S NO 749 30320 3 3339
442
22 472830277 NIZAMABAD NIZAMABAD NIZAMABAD SQ SIRNAPALLY 15-08-1947 0.58994 1292.53

23 472830279 NIZAMABAD VIJAYANAGAR VIJAYANAGAR MW STN S NO 249/1 29590 0.047 1517
24 472830288 PRAKASHAM ONGOLE ONGOLE CXL ONGOLE 26302 2 841.5
25 472830100 SALEM VALAYAMADEVI VALAYAMADEVI MW SF NO 348 30926 0.01008 2307.55
26 472830115 TIRUNELVELI MUTHUSAMIPURAM MUTHUSAMIPURAM S.F. NO 1206 1974 0.005 80.97
REPEATER
27 472830117 TIRUNELVELI SOUTHVALLYOOOR SOUTHVALLYOOOR S.F. NO 1190/2 1974 0.005 80.97
REPEATER
28 472830118 TIRUNELVELI TENKASI TENKASI OFC S.F. NO 274/1 TENKASI VLG 21.02.1983 0.8856 2914.56
TENKASI TK
29 472830120 TIRUNELVELI VAGAIKULAM VAGAIKULAM MW STN S NO 390/B1B 22.11.1996 0.11639 2550
RAJAKKALMANGALAM VLG
NANGUNERI TK
30 472830124 TRICHY THUVAKUDI THUVAKUDI REPEATER 10 S.F. NO 653 AND 700 1977 0.5356 98
31 472830445 UT OF AGATTI AGATHI SAT E/S APPROACH 1302 31-03-2007 0.44859 80
LAKSHADWEEP ROAD
32 472830166 UT OF KAVARATHY KAVARATHY SAT E/S 891/5A2 6A2 15-11-1980 0.00001 4900
LAKSHADWEEP
33 472830135 VELLORE PARAMASATHU PARAMASATHU MW S.F. NO. 169/3 10.11.74 0 18575.8
COMPOUND-APPROACH
ROAD
Cost at the
Total Area
sqmts
Lakhs
34 472830134 VELLORE VELLORE- POIGAI CXL STN S.F. NO 244/1 1978 0.11045 53
BANGALORE NRS
35 472830095 VILLUPURAM TINDIVANAM TINDIVANAM MW TS NO 33/2 TINDIVANAM TK 18-10-1990 0.00001 2266.3
36 472830011 VILLUPURAM VILLUPURAM VILLUPURAM MW R S NO 15/1 32730 9.4997 2672.06
37 472830144 VIRUDHUNAGAR VGR-KVT RS VGR-KVT RS 8 S.NO. 345 METTUPATTI VILLAGE 10.07.1974 0.001 80.86
SATTUR TALUK
38 472830443 VIRUDHUNAGAR VGR-MA VGR-MA RS-11 485/1 CHATRAREDDIAPATTI 27095 0.01 80.86
(USILAMPATTI)
39 472830229 VISAKHAPATNAM BHIMILL BHIMILL MW RR BHIMILI 30320 0.1 2500
40 472830233 VISAKHAPATNAM MVP -VM MVP COL QRS-VM S NO 23 PLOT 1 TO 4 AND 14 TO 30773 1.07497 1995
18 SECTOR 12 CHINA WALTAIR
VILLAGE
41 472830238 VIZIANAGARAM KOLHAVALAS KOLHAVALAS OFC DRO VZM 34338 0.17 404.7
42 472830243 WEST GODAVARI TADEPALLIGUDEM TADEPALLIGUDEM OFC ELURU RS 154 25-07-1969 0.63555 2911.7
443
1033-UTTARAKHAND

Opening Closing Opening Closing
Sl. Deductions/ Closing net
Particulars balance as per Additions for Deletions for balance as balance as per Charge for balance as
No. Adjustments block as per
Ind AS as at 1 the FY the FY per Ind AS as Ind AS as at 1 the FY per Ind AS as
for the FY Ind AS as at 31
April 2017 2017-18 2017-18 at 31 March April 2017 2017-18 at 31 March
2017-18 March 2018
2018 2018
1 Lands (Free Hold) 3691785982 0 0 3691785982 1201891.02 18443.01 0 1220334.03 3690565648

2 Lands ( Lease Hold ) 7200034 0 0 7200034 474357666.7 28901943.78 0 503259610.5 -496059576.5
1022-Kerala

Closing Closing Closing net
Sl. Opening Opening Deductions/
Particulars Additions for Deletions for balance as balance as block as per
No. balance as per balance as per Charge for the Adjustments
the FY 2017- the FY 2017- per Ind AS as per Ind AS as Ind AS as at
Ind AS as at Ind AS as at FY 2017-18 for the FY
18 18 at March 31, at March 31, March 31,
April 1, 2017 April 1, 2017 2017-18
2018 2018 2018
1 Lands ( Free Hold ) 30729998381 1282878.62 46647500 30684633760 0 0 0 0 30684633760
2 Lands ( Lease Hold ) 128614 0 0 128614 128614 0 0 128614 0
1036-Chennai Telephones
Year of
Company Area of Land Location as per
Sl. No. District Station Compound Address acquisition of
Name (in Sq. Meter) Revenue Records
land
1 BSNL Kanchipuram Pallavaram Zameen Chromepet 179, GST Road 20911 850 179 GST Road
2 BSNL Kanchipuram Padalam MW Radalam Microwave Station, Boodur, Near to 17258 3000 Microwave Bldg
Madurantakam, Kanchipuram distt.
3 BSNL Chennai Royapuram Kalmandapam No.21-A, G.A. Road, Kalmandapam, Chennai 20546 3111 RS No 2093/9
4 BSNL Chennai Mambalam DTO 12, Giri Road, T. Nagar, Chennai 17258 443 25, Giri Road, T
Nagar
5 BSNL Chennai Reriyar Nagar DTO No.68, Kandasamy Road, Periyar Nagar, Chennai 32234 322 Pariyar Nagar
6 BSNL Chennai CIT Nagar Mambalam No.652, Anna Salai, Nandanam, Chennai 21276 4595 Plot No.57, 59, 60
CIT Nagar Scheme
7 BSNL Chennai Mylapore Mylapore No.58/166, Luz Church road, Mylapore, Chennai 17258 1469 RS No.4230/77
and 4230/78
Mylapore
444
8 BSNL Chennai Purasavakkam Millars Road 89, Millers Road, Chennai 38719 1376 3101/3
9 BSNL Tiruvallur Suravarika Ndigai MW Suravarikandigai Microwave Tower, 17258 2023 Suravarikandi Gai
Gummidipoondi Taluk, Tamil Nadu MW
10 BSNL Tiruvallur Thirutani MW Pattabirama-puram, Thirutani Microwave Building, 17258 2023 Thirutani MW
Chennai, Thirutani Road, Thirutani
11 BSNL Chennai CTO DTO 2nd Line Beach Road, Chennai 24929 2500 2nd Lane Beach
road
12 BSNL Chennai Triplicane Village Anna Road 11, Dams Road, Chennai 16528 5666 10 Dams Road
1021-Karnataka
Table A: Availability of Title Deeds
Title Deeds (Nos) Title Deeds (Sqm)

Sl. No Particulars
Total Available Not Available Total Available Not Available
1 Freehold Land 1,232 962 270 22,20,189 19,07,439 4,83,655
2 Leasehold Land 58 54 4 4,06,514 1,99,135 10,900
Total 1,290 1,016 274 26,26,703 21,06,754 4,94,555
1025-NE I
Measurement of
Whether Title Remarks (Name to
the Free hold/ Lease
Sl. SSA/Unit Where Free hold/ Lease deeds or lease whom Title deeds
Location Address of the Land hold lands not
No. Located hold deeds available or lease deeds
having Title/lease
or not available)
deeds
A. MEGHALAYA
1 BANASHREE (LOWER) Meghalaya Free hold Nongrim Nonthymmai 5378 Sq.m. yes DOT
2 WILLIAM NAGAR—(S/Q COMP.) Meghalaya Free hold Plot No. 58-794111 2676 Sq.m. No DOT
3 WILLIAM NAGAR—(T.E. COMP.) Meghalaya Free hold Plot No.16-794111 1338 Sq.m. No DOT
4 WILLIAM NAGAR—(M/W COMP.) Meghalaya Free hold Williamnagar-794111 7417 DOT
5 MAWKLOT(T.E.) Meghalaya Free hold Mawklot village-793009 3254 Sq.m yes DOT
6 LAITLEWLONG (UHF) Meghalaya Free hold Laitlewlong Village 4010 Sq.m. No DOT
7 NONGPIUR ESS Meghalaya Free hold Forest Land Compart 12348 Sq.m. yes DOT
8 DADENGIRI(T.E.) Meghalaya Free hold Dadengiri-794104 523.00Sq.m. No DOT
9 BAGMARA (Satellite Compound) Meghalaya Free hold Plot NO. -794102 1200 Sq.m. yes DOT
10 BARAKUL(M/W) Meghalaya Free hold Plot No.8,Barakul ,BPO 780 Sq.m. No DOT
445
11 MAHENDRAGANJ (Satellite Meghalaya Free hold Plot A130, Mahendraganj 2676 Sq.m. yes DOT
compound)
12 NONGPOH(M/W) Meghalaya Free hold Nongpoh Hill-793102 2500 Sq.m. No DOT
13 SHELLA Meghalaya Free hold Shella Satellite Compound 1395 Sq.m. DOT
14 MENDIPATHAR (T.E.) Meghalaya Free hold Mwendipathar village-794112 1454 Sq.m. No DOT
15 MAWMLUH (UHF) Meghalaya Free hold Village Mawmluh Sohra 1600 Sq.m. No DOT
16 MAWSYNRAM (T.E.) Meghalaya Free hold Mawsynram Donshiliang-793113 2500 Sq.m. yes DOT
17 KHARKUTTA(T.E.) Meghalaya Free hold Kharkutta-783134 185.90 Sq.m. No DOT

18 MAWPAT Meghalaya Free hold Mawpat,Shillong-793012 2500.00 Sq.m. No DOT
19 MAWKYRWAT(T.E.) Meghalaya Free hold Mawten village Mawkyrwat-793114 2500 Sq.m. yes DOT
20 LADRYMBAI Meghalaya Free hold Ladrymbai mookhep 1654 Sq.m. yes DOT
21 DAWKI (Satellite Compound) Meghalaya Free hold DARRANG-DAWKI-793109 1591 Sq.m. yes DOT
22 PHULBARI Meghalaya Free hold Rongsaigiri phulbari 1096 Sq.m. yes DOT
23 BANASHREE (UPPER) Meghalaya Free hold Nongrim Nonthymmai 2902 Sq.m. yes DOT
24 NONGSTOIN(T.E.) Meghalaya Free hold CAD Complex Nongstoin 2280 Sq.m. No DOT
25 BARAPANI,UMIA (T.E.) Meghalaya Lease hold Part of plot no. 22 MESEB 683.6 Sq.m. yes DOT
26 NONGPOH(T.E.) Meghalaya Free hold Nongpoh-793102 3872 Sq.m. No DOT
Measurement of
having Title/lease
or not available)
deeds
27 DAINADUBI(T.E.) Meghalaya Free hold Chimabangshi Reserve 3000 Sq.m. No DOT
Forest-794110
28 JOWAI BAZAR Meghalaya Free hold Jowai Bazar-793150 938 Sq.m. No DOT
29 JOWAI THADLABOH Meghalaya Free hold Jowai Thadlaboh-793150 2080 No DOT
30 GPO, SHILLONG Meghalaya Freehold GPO,Shiilong-793001 1316 Sq.m. No DOT
31 MAIRANG (T.E.) Meghalaya Free hold Mairang-793120 2000 Sq.m yes DOT
32 SHKENTALANG (T.E.) Meghalaya Free hold Shkentalang Elakaamwi-793150. 1200 Sq.m. yes DOT
33 NONGPOH BAZAR Meghalaya Free hold Nongpoh Bazar-793102 276.6 Sq.m. DOT
34 RALIANG (M/W) Meghalaya Free hold Village Raliang -793150 700 Sq.m. No DOT
35 RIANGDOH(T.E.) Meghalaya Free hold Mawthengkut Riangdoh 2400 Sq.m. yes DOT
36 AVANDALE COMP. Meghalaya Free hold Avandale compound Barik 2775 Sq.m. yes DOT
37 CTO COMP. Meghalaya Free hold Telecom Qtr. CTO, Shillong 5400 Sq.m. No DOT
38 FOREST COLONY Meghalaya Free hold Mawpun,Shillong-793001 3741 Sq.m. yes DOT
446
39 LAITKOR Meghalaya Free hold Laitkor,Shillong-793010 2158 Sq.m. No DOT

40 TURA (ADMN.) Meghalaya Free hold TURA-794001 511 Sq.m. No DOT
41 TURA( S/Q.) Meghalaya Free hold Tura-794001 639 Sq.m. No DOT
42 TURA(UHF) Meghalaya Free hold Tura-794001 2700 Sq.m. No DOT
43 TURA(T.E.) Meghalaya Free hold Tura-794001 1027 Sq.m. No DOT
44 UMKIANG(T.E.) Meghalaya Free hold Village Umkiang-793200 1301 Sq.m. No DOT
45 MAWLAINGUT(T.E.) Meghalaya Free hold Mawlaingutn village BPO, 1450.00 Sq.m. yes DOT
SOHIONG
46 NONGSTOIN(M/W) Meghalaya Free hold Nongstoin hill-793119 2500.00Sq.m. No DOT
47 BAJENGDOBA (T.E.) Meghalaya Free hold VILL Bajengdo-794002 4014 Sq.m. yes DOT
48 OAKLAND Meghalaya Free hold Oakland, Shillong-793001 16600 Sq.m. No DOT
49 R.N. COMP. Meghalaya Free hold R.N. Compound 12510 Sq.m. No DOT
50 RYNJAH (UMPLING) Meghalaya Free hold Umpling, Shillong-793006 28943 Sq.m. No DOT
51 LACHUMIE Meghalaya Free hold Lachumiere, Shillong 625.00 Sq.m. No DOT
52 SONAPUR Meghalaya Free hold Village Sonapur-793200 1171 Sq.m. No DOT
53 TUBER JOWAI(T.E.) Meghalaya Free hold Tuber Jowai-793160 166 Sq.m. No DOT
54 LAITRENGEW (T.E.) Meghalaya Lease hold Laitrengew-793111 13011 Sq.m. Yes DOT
55 AMLAREM (T.E.) Meghalaya Lease hold Plot –B,Civil subdivisional complex 900 Sq.m. yes DOT
Measurement of
having Title/lease
or not available)
deeds
56 LUMDIENGIRI,GARIKHANA Meghalaya Lease hold Lumdiengiri, 225.00Sq.m. yes DOT
Garikhana,Shiilong-793001
57 AMPATI (T.E.) Meghalaya Lease hold VII Ampati-794115 2025 Sq.m. DOT
58 BARENGAPARA(T.E.) Meghalaya Lease hold DAG No. A532&A593 AT Ist 249 Sq.m. yes P&T
Dalugaon Under Mouza IX I-794103
59 BYNIHAT(T.E.) Meghalaya Lease hold Byrnihat-793101 309 Sq.m. No DOT
60 LUMSHNONG (T.E.) Meghalaya Lease hold Lumshnong-village 669.1 Sq.m. No DOT
61 RATACHERRA Meghalaya Lease hold Village Ratacherra-793200 1301 Sq.m. No DOT
62 MAWKYNROH Meghalaya Lease hold Mawkynroh-793022 1417 Sq.m. No DOT
63 TURA(DAKOPGRE) Meghalaya Lease hold Plot No.39III,Tura-7894001 4014 Sq.m. No DOT
64 CHERRAPUNJEE Meghalaya Lease hold Sohra-793108 1810 Sq.m. No DOT
65 DHARAPUR (NEW CTSD COMP.) Meghalaya Lease hold Dharapur, Guwahati 31078.00Sq.m. No DOT
66 DHARAPUR (OLD CTSD COMP.) Meghalaya Lease hold Dharapur,Guwahati 9088.00Sq.m. No DOT
67 KHLIEHRIA(T.E.) Meghalaya Lease hold KHLIEHRIA793200 block 1200 Sq.m. No DOT
447
B TRIPURA
1 BAGMA Tripura Free hold Bagma-799119 1087 Sq.m. yes BSNL
2 GANDACHARRA-II Tripura Lease hold Gandacharra-II-799289 343 Sq.m. No DOT
3 GONDACHERRA Tripura Lease hold Gondacherra-799289 148 Sq.m. No DOT
4 HALAHALI Tripura Lease hold Halahali-799286 1509 Sq.m. No DOT
5 KALYANALPUR Tripura Lease hold Kalyanpur-799203 2236 Sq.m. yes DOT
6 KAMALPUR Tripura Lease hold Kamalpur-799285 915 Sq.m. No DOT

7 KAMALPUR-II Tripura Lease hold Kamalpur-II-799285 4394 Sq.m No DOT
8 SALEMA Tripura Lease hold Salema-799278 1300 Sq.m No DOT
9 SHIKARIBARI Tripura Lease hold Shikaribari-799289 2861 Sq.m No DOT
10 BIRASHI MILE Tripura Lease hold Birasimile-799264 1338 Sq.m. No DOT
11 ABHIMONBARI Tripura Lease hold Abhimohanbari-799289 1565 Sq.m. No DOT
12 CHAILENGTA Tripura Lease hold Chailengta-799273 207 Sq.m. No DOT
13 CHURAIBARI Tripura Lease hold Churaibari-799262 760 Sq.m. No DOT
14 DHARAMNAGAR-II Tripura Lease hold Dharamnagar-II-799250 3729 Sq.m. No DOT
15 DHARAMNAGAR-I Tripura Lease hold Dharamnagar-I-799250 741 Sq.m. No DOT
16 KADAMTALA Tripura Lease hold Kadamlata-799261 770 Sq.m. No DOT
Measurement of
having Title/lease
or not available)
deeds
17 KAILASHAHAR-I Tripura Lease hold Kailashahar-I-799277 4672 Sq.m. yes DOT
18 KAILASHAHAR-II Tripura Lease hold Kailashahar-II-799277 3712.00Sq.m. No P&T
19 TELIAMURA Tripura Lease hold Teliamura-799205 2089 Sq.m. No DOT
20 KANCHANPUR Tripura Lease hold Kanchanpur-799270 1454 Sq.m. No DOT
21 KATHALIA Tripura Lease hold Kathalia-799132 139 Sq.m. No DOT
22 KUMARGHAT Tripura Lease hold Kumarghat-799264 4758 Sq.m. yes DOT
23 MANUGHAT Tripura Lease hold Manughat-799275 1233 Sq.m. No DOT
24 PANISAGAR Tripura Lease hold Panisagar-799260 2401 Sq.m. No DOT
25 PACHARTHAL Tripura Lease hold Pacharthal-799263 312 Sq.m. No BSNL
26 PHULDENSHAI Tripura Lease hold Phuldenshai-799269 1338 Sq.m. No DOT
27 SARMONTILLA Tripura Lease hold Sarmontilla-799263 2361 Sq.m. No DOT
28 VANGMUN Tripura Lease hold Vangmun-799270 123 Sq.m. No DOT
29 AMARPUR Tripura Lease hold Amarpur-799101 1586 Sq.m. No DOT
448
30 AMBASSA (DOLUBARI) Tripura Lease hold Ambassa-799289 1884 Sq.m. No DOT

31 BELONIA Tripura Lease hold Belonia-799155 595 Sq.m. No DOT
32 CHATTAKHOLA Tripura Lease hold Chattakhola-799155 1226 Sq.m. No DOT
33 HRISHYAMUKH Tripura Lease hold Hrishyamukh-799156 1395 Sq.m. No BSNL
34 JATANBARI Tripura Lease hold Jatanbari-799155 879 Sq.m. No DOT
35 KILLA Tripura Lease hold Killa-799120 3729 Sq.m. No DOT
36 MAHARANI Tripura Lease hold Maharani-799121 2170 Sq.m. No DOT
37 RADHANAGAR Tripura Lease hold Radhanagar-799153 1780 Sq.m. No DOT
38 RANIBAZAR Tripura Lease hold Ranibazar-799035 2091.85 Sq.m. yes DOT
39 R.K.PUR-I Tripura Lease hold R.K.PUR-I-799120 4729 Sq.m. yes DOT
40 R.K.PUR-II Tripura Lease hold R.K.PUR-II-799120 984 Sq.m. No DOT
41 RUPAICHARI Tripura Lease hold Rupaichari-799145 1293 Sq.m. No DOT
42 SABROOM-I Tripura Lease hold Sabroom-I-799145 1842 Sq.m. No DOT
43 SABROOM-II Tripura Lease hold Sabroom-II-799145 1386 Sq.m. No DOT
44 SANTIBAZAR Tripura Lease hold Santibazar-799144 2115 Sq.m. No DOT
45 A.D. NAGAR (S/QRT.) Tripura Lease hold ADNagar-799003 8339.00Sq.m. No P &T
46 KUNJABAN Tripura Lease hold Kunjaban-799006 4254 Sq.m. No BSNL
47 LICHUBAGAN Tripura Leased Lichubagan-799012 21681.00 Sq.m. yes DOT
Measurement of
having Title/lease
or not available)
deeds
48 NORTH-GATE Tripura Lease hold North-Gate-799001 4046.00 Sq.m. No DOT
49 BOXNAGAR Tripura Lease hold Boxnagar-799106 2196 Sq.m. No DOT
50 JAMPUJALA Tripura Lease hold Jampujala-799102 940.00 Sq.m. No DOT
51 KHANTIYBARI Tripura Lease hold Khantiybari-799205 1256.00 Sq.m. No DOT
52 KHOWAI-I Tripura Lease hold Khowai-I-799201 1180 Sq.m. No DOT
53 KHOWAI-II Tripura Lease hold Khowai-II-799202 1763.00 Sq.m. No DOT
54 MELARMATH Tripura Lease hold Melarmath-799001 274 Sq.m. No DOT
55 SONAMURA Tripura Lease hold Sonamura-799131 686 Sq.m. No DOT
56 DALUGAON Tripura Lease hold Dalugaon-799280 1892 Sq.m. yes BSNL
57 KANCHANBARI Tripura Lease hold Kanchanbari-799288 850 Sq.m. YES DOT
58 MATAI Tripura Lease hold Matai-799159 1619 Sq.m. yes DOT
59 BARPATHARI Tripura Lease hold Barpathari-799155 1619 Sq.m. yes DOT
60 BELONIA (NEW) Tripura Lease hold Belonia(New)-799155 862 Sq.m. No DOT
449
61 JOLAIBARI Tripura Lease hold Joliabari-799141 1571.00 Sq.m. No DOT

62 KAKRABAN Tripura Lease hold Kakr-aban-799105 1476 Sq.m. yes BSNL
63 MANUBAZAR Tripura Lease hold Manubazar-799143 1035 Sq.m. No DOT
64 MIRZA Tripura Lease hold Mirza-799120 1257.00 Sq.m. yes BSNL
65 SALGARAH Tripura Lease hold Salgarah-799125 1591 Sq.m. yes BSNL
66 SILACHARI Tripura Lease hold Silachari-799120 1360 Sq.m. No DOT
67 SRINAGAR Tripura Lease hold Srinagar-799145 1288 Sq.m. No DOT
68 A.D. NAGAR (T.E.) Tripura Lease hold AD Nagar-799003 7675 Sq.m. No DOT

69 CAPITAL COMPLEX Tripura Lease hold Capital Compex-799012 4046 Sq.m. No DOT
70 KAMAN CHOWMUHANI Tripura Lease hold Kaman Chowmuhani-799001 1775 Sq.m. yes BSNL
71 RAJNAGAR Tripura Lease hold Rajnagar-799158 2118 Sq.m. No DOT
72 SINGHER BILL(AIRPORT) Tripura Lease hold Airport Singher Bill)-799009 544 Sq.m. yes BSNL
73 BARKATHAL Tripura Lease hold Barkathal-799211 1416 Sq.m. yes DOT
74 BIRENDRANAGAR(JIRANIA) Tripura Lease hold Birendranagar(Jirania) 817 Sq.m. yes BSNL
75 BISHALGARH Tripura Lease hold Bishalgarh-799102 1795 Sq.m. yes BSNL
76 BISHRAMGANJ Tripura Lease hold Bishramganj-799103 1876 Sq.m. yes BSNL
77 FATIKCHARA (KAMALGHAT) Tripura Lease hold Fatikchara (Kamalghat) 1290 Sq.m. No BSNL
78 GANDHIGRAM Tripura Lease hold Gandhigram-799012 842 Sq.m. Yes BSNL
Measurement of
having Title/lease
or not available)
deeds
79 INDRANAGAR(G B BAZAR) Tripura Lease hold Indranagar (G B BAZAR)-799006 800.00 Sq.m. yes BSNL
80 KATLAMARA Tripura Lease hold Katlampara-799211 1877 Sq.m. No BSNL
81 MELAGHAR Tripura Lease hold Melaghar-799115 1138 Sq.m. No DOT
82 MOHANPUR Tripura Lease hold Mohanpur-799211 1800 Sq.m. yes BSNL
83 BIRCHANDRAMANU Tripura Lease hold Birchandramanu-799045 1271 Sq.m. No DOT
C. MIZORAM
1 SANGAU(BSNL) Mizoram Free hold Sangau- 2640 Sq.m. YES BSNL
2 MAMPUI(BSNL) Mizoram Free hold Mumoui-796891 720 Sq.m. yes BSNL
3 ZUANGTAI (STORE &S/QTR.) Mizoram Free hold Zuangtui-796017 3380.44 Sq.m. yes BSNL
(BSNL)
4 AIZAWL(BSNL) (ADMN.) Mizoram Free hold Khatla-796001 800.1 Sq.m. yes BSNL
5 REIEK(T.E.) (BSNL) Mizoram Free hold Reiek-796501 1512 Sq.m. yes BSNL
450
6 BAIRABI(BSNL) Mizoram Free hold Bairabi-796081 1485.55 Sq.m. yes BSNL

7 BUNGTLANG (GSM /BTS) (BSNL) Mizoram Free hold Bungtlang 875 Sq.m. yes BSNL
8 DILTLANG(T.E.)(BSNL) Mizoram Free hold Diltlang-796891 1347.5 Sq.m. yes BSNL
9 ZERO POINT-I (GSM BTS)(BSNL) Mizoram Free hold Zero point-796901 712.8 yes BSNL
10 BUALPUI NG(T.E.) Mizoram Free hold Builpui ng- 1540 Sq.m. No DOT
11 MELBUK (BSNL) Mizoram Free hold Melbuk- 2000 Sq.m. yes BSNL
12 BUARPUI-WEST(T.E.) (BSNL) Mizoram Free hold Buarpui-796441 1236.13 Sq.m. yes BSNL
13 DARLAWN(T.E.) (BSNL) Mizoram Free hold BDO TLANG-796111 2906 Sq.m. yes BSNL
14 LUANGMUAL (T.E.) Mizoram Free hold Luangmual-796001 11124 Sq.m. yes DOT
15 SAIHA-I Mizoram (M/W/) Free hold New colony-796901 992.25 Sq.m. yes BSNL
(BSNL)
16 SAIHA-II (T.E.)(BSNL) Mizoram Free hold Pukzing-796431 4034 Sq.m. yes BSNL
17 SERCHHIP-II-(New comp.))(BSNL) Mizoram Free hold Serchhip Entlang 9716 Sq.m. yes BSNL
18 SAIRANG (T.E./UHF) (BSNL) Mizoram Free hold Sairang-796410 2710.87 Sq.m. yes BSNL
19 KAMALNAGAR-II-(T.E.)(BSNL) Mizoram Free hold Kamalnagart-II-796770 204 Sq.m. yes BSNL
20 ZAWLNUAM(T.E.)(BSNL) Mizoram Lease hold Vengpui-796471 1798.75 Sq.m. yes BSNL
21 CHAMPAI (SATELLITE) Mizoram Lease hold Champai-796321 4052.37 Sq.m. yes BSNL
22 LUNGLEI (M/W) (BSNL) Mizoram Lease hold Ramzotlang-796701 2500 Sq.m. yes BSNL
Measurement of
having Title/lease
or not available)
deeds
23 THINGFAL (M/W) (BSNL) Mizoram Lease hold Thingfal-796701 2767.04 Sq.m. yes BSNL
24 SERCHHIP (M/W) (BSNL) Mizoram Lease hold Serchhip Entlang-796181 2019.62 Sq.m. yes BSNL
25 BUALPUI’N (M/W) Mizoram Lease hold Builpui N-796070 1600 Sq.m. yes BSNL
26 THINGSULTHIAH (T.E.) Mizoram Lease hold Thingsulthiah-796161 1775.2 Sq.m. yes BSNL
27 CHAMPAI (T.E.) Mizoram Lease hold Vengsang-796321 5382.87 Sq.m. yes BSNL
28 LUNGLEI (S/Qrt.Complex) Mizoram Lease hold Bazar veng-796701 464.12 Sq.m. yes BSNL
29 DURTLANG Mizoram (T.E.) Lease hold Vengthar-796014 2140.87 Sq.m. yes BSNL
(BSNL)
30 CHAMPAI (GSM-BTSCOMPLEX) Mizoram Lease hold Vengsang-i-796321 302.02 Sq.m. yes BSNL
31 VAIRENGTE (CUW COMPLEX) Mizoram Lease hold Chhimveng-796101 663 Sq.m. yes BSNL
32 PUKZING (BTS) Mizoram Lease hold Pukzing-796431 639.36 Sq.m. yes BSNL
33 HAULAWNG (T.E.) Mizoram Lease hold Lalveng-796691 1595.86 Sq.m. yes BSNL
34 THUAMPUI (T.E/ST. QRT..) Mizoram Lease hold Thuampui-796017 314.00Sq.m. yes DOT
451
35 VAIRENGTE (M/W) Mizoram Lease hold Vairengte-796101 1759.54 Sq.m. yes BSNL
36 VAIRENGTE (S/QTR. ) Mizoram Lease hold Vairengte-796101 412.09 Sq.m. yes BSNL
37 SAITUAL(T.E.) (BSNL) Mizoram Lease hold Saitual-796261 714.45 Sq.m. yes BSNL
38 KAWLKULH (T.E.COMPLEX) (BSNL) Mizoram Lease hold Kawlkulh-796310 542.21 Sq.m. yes BSNL
39 AIZAWL (ELECTRONIC COMPLEX) Mizoram Lease hold Khatla-796001 762.82 Sq.m. yes BSNL
(BSNL)
40 BAITE(T.E.) Mizoram Lease hold Biate-796370 2069 Sq.m. yes BSNL
41 MUALTHUM’N(T.E.) (BSNL) Mizoram Lease hold Mualthuam-N-796701 1136 Sq.m. yes BSNL

42 ZOBAWK(T.E.) (BSNL) Mizoram Lease hold Zobawk- 667.5 Sq.m. yes BSNL
43 BUNGTLANG ’(WLL/ BTS) Mizoram Lease hold Bungtlan-S-796181 1062.41 Sq.m. yes BSNL
44 CHHINGCHHIP (T.E.)(BSNL) Mizoram Lease hold Chhingchhip-796181 789.39 Sq.m. yes BSNL
45 AIZAWL (M/W) Mizoram Lease hold M.C. Hill 1610 Sq.m. No DOT
46 TLUNGVEL(T.E.) (BSNL) Mizoram Lease hold Vengthar-796161 1071.09 Sq.m. yes BSNL
47 KHAWZAWL (T.E.) (BSNL) Mizoram Lease hold Zaingen-796310 1328.42 Sq.m. yes BSNL
48 KAWNPUI(BSNL) Mizoram Lease hold Venglai-796070 945.77 Sq.m yes BSNL
49 THINGDAWL (BSNL) Mizoram Lease hold Vengthar-796081 1729.74 Sq.m. yes BSNL
50 TUIPANG(BSNL) Mizoram Lease hold Tuipang- 1120 Sq.m. yes BSNL
51 NGOPA(T.E.) (BSNL) Mizoram Lease hold Ngopa-796290 1638.55 Sq.m. yes BSNL
Measurement of
having Title/lease
or not available)
deeds
52 LUNGLEI (STORE COMPLEX) Mizoram Lease hold Lunglei-796701 600 Sq.m. yes BSNL
(BSNL)
53 AIZAWL (VENGHLUI) (S/QRT.) Mizoram Lease hold Venghlui-796001 223.48 Sq.m. yes BSNL
54 HNAHTHIAL (T.E.) (BSNL) Mizoram Lease hold Tarphoveng-796701 689.55Sq.m. yes BSNL
55 LUNGLEI(T.E.) Mizoram Lease hold Venglai-796701 802.38 Sq.m. yes BSNL
56 EAST-LUNGDAR (BSNL) Mizoram Lease hold Salem veng-796370 1548.75 Sq.m. yes BSNL
57 LUNGDAI(T.E.) Mizoram Lease hold Venglai-796014 797.53 Sq.m. yes BSNL
58 SIHPHIR(T.E.) Mizoram Lease hold Sihphir-796014 489 Sq.m. yes BSNL
59 LUNGSEN(BSNL) Mizoram Lease hold Hmarveng-796701 1098.11 Sq.m. yes BSNL
60 KHAWBUNG-S(T.E.) Mizoram Lease hold Khawbung-S-796320 1008.37 Sq.m. yes BSNL
61 BILKHAWTHLIR (T.E.) (BSNL) Mizoram Lease hold Kualmawi-796091 1380.37 Sq.m. yes BSNL
62 TLABUNG(BSNL) Mizoram Lease hold Zodinveng-796751 2217.3 Sq.m. yes BSNL
63 AIBAWK(T.E.) (BSNL) Mizoram Lease hold Hermonveng-796190 923.27 Sq.m. yes BSNL
452
64 RAWPUICHHIP (T.E.) (BSNL) Mizoram Lease hold Rawpuichhip-796441 120.32 Sq.m. yes BSNL
65 WEST- PHAILENG(BSNL) Mizoram Lease hold Vengchung-796431 2896.82 Sq.m. yes BSNL
66 LAWNGTLAI-I-(T.E.) Mizoram Lease hold Vengpui-796891 1002 Sq.m. yes BSNL
67 MAMIT(BSNL) Mizoram Lease hold Lungsirveng-796441 1142.37 Sq.m. yes BSNL
68 AIZAW (SATELLITE) Mizoram Lease hold Khatla-796001 5132 Sq.m. No DOT
69 BUALPUI-KAWNPUI(T.E.) (BSNL) Mizoram Lease hold Builpui-Kawnpui-796070 1148 Sq.m. yes BSNL
70 BUKPUI (T.E.) (BSNL) Mizoram Lease hold Bukpui-796081 3208.12 Sq.m. yes BSNL
71 KOLASIB (GSM/BTS) Mizoram Lease hold Kolasib- 400 Sq.m. No DOT
72 CHAWNGTE (T.E.) Mizoram Lease hold Chawngte- 2640 Sq.m. No DOT
73 CHHIATLANG (T.E.) Mizoram Lease hold Chhiatlang-796181 2410 Sq.m. yes BSNL
74 BUNGHMUNW (T.E.) Mizoram Lease hold Bunghmunw-796701 839.43 Sq.m. yes BSNL
75 HLIAPPUI(T.E.) Mizoram Lease hold Hliappui- 2772.39 Sq.m. yes DOT
76 KAWKULH-2 Mizoram Lease hold Kawlkulh-2 3377.45 Sq.m. No DOT
77 HLIAPPUI (WLL) Mizoram Lease hold BTS-796321 839.43 Sq.m. yes BSNL
78 KAWRTHAH Mizoram Lease hold Kawrthah-796441 661.5 Sq.m. yes BSNL
79 BAKTAWNG (MOBILE BTS) Mizoram Lease hold Baktawng-796181 1391.3 Sq.m. yes BSNL
81 KOLASIB(T.E.) Mizoram Lease hold Project 2646 Sq.m. No DOT
82 LAITE(T.E.) Mizoram Lease hold Laite-796570 400 Sq.m. No DOT
Measurement of
having Title/lease
or not available)
deeds
83 LAWNGTLAI Mizoram Lease hold Karkawn-796891 1893.98 Sq.m. No BSNL
84 AIZAWL (ZONUAM) (S/QRT) Mizoram Lease hold Zonuam-796001 599.68 Sq.m. yes P&T
85 LUNGLEI (S/QTR. PASTAL Mizoram Lease hold Venglai-796701 692.64 Sq.m. yes BSNL
BIFRACTED)
86 PHULLEN(T.E.) Mizoram Lease hold Phullen-796261 574.43 Sq.m. yes BSNL
87 LENGPUI(T.E.) Mizoram Lease hold Lengpui-796410 1032 Sq.m. No DOT
88 SAILSUK(BSNL) Mizoram Lease hold Sailsuk-769190 574.75 Sq.m. yes BSNL
89 THENZAWL Mizoram (BSNL) Lease hold Fieldveng-796186 1052.94 Sq.m. yes BSNL
90 NORTH-VANLAIPHAI(T.E.) Mizoram Lease hold North-Vanlaiphai-796180 620.4 Sq.m. No BSNL
91 PAITHER (GSM BTS) Mizoram Lease hold Paither- 600 Sq.m. No BSNL
92 PANGZAWL Mizoram Lease hold Pangzawl-796501 1495.52 Sq.m. No BSNL
93 SIATLAI(T.E.) Mizoram Lease hold Siatlai 600 Sq.m. No BSNL
94 THERIAT(BTS) Mizoram Lease hold Theriat 400 Sq.m. No BSNL
453
95 TUIPUI-S(BTS) Mizoram Lease hold Tuipui-s-796700 400 Sq.m. No BSNL

96 Uttar Devendra Chandra Nagar Tripura Lease hold Taranagar- 799211 809.37 Sq.m No BSNL
97 Uttar Padmabil Tripura Lease hold Khowai- 799201 404.68 Sq.m No BSNL
1026-NE II
LAND ASSET AT NAGALAND SSA

Land in the name of
BSNL/ DoT
1 Nagaland 990100081 Nagarjan AR DoT
2 Nagaland 990100082 Chikitong DoT
3 Nagaland 990100083 Jaluki DoT
4 Nagaland 990100084 Niuland BSNL MUTATED
5 Nagaland 990100085 Sataka DoT
7 Nagaland 990100087 Aboi DoT
8 Nagaland 990100088 Tizit DoT
Land in the name of
BSNL/ DoT
9 Nagaland 990100089 Kuhoboto BSNLMUTATED
10 Nagaland 990100090 Longkhim DoT
11 Nagaland 990100091 Aghunoto DoT
12 Nagaland 990100092 Dhansiripar BSNL MUTATED
13 Nagaland 990100093 Tobu DoT
14 Nagaland 990100094 Tenning DoT
15 Nagaland 990100095 Impur DoT
16 Nagaland 990100096 Pfutzero DoT
17 Nagaland 990100097 Noklak DoT
18 Nagaland 990100098 Longleng DoT
19 Nagaland 990100099 Phugoboto DoT
20 Nagaland 990100100 Chazuba DoT
22 Nagaland 990100102 Tseminyu BSNL MUTATED
23 Nagaland 990100103 Sechuzubzha BSNL MUTATED
454
24 Nagaland 990100104 Nagnimora DoT

25 Nagaland 990100105 Mongkolemba DoT
26 Nagaland 990100106 Chizami DoT
27 Nagaland 990100107 Viswema BSNL MUTATED
28 Nagaland 990100108 Khonoma BSNL MUTATED
29 Nagaland 990100109 Chakabama BSNL MUTATED
30 Nagaland 990100110 Chiphobozou BSNL MUTATED
31 Nagaland 990100111 Tuensang DoT
32 Nagaland 990100112 Chare DoT
33 Nagaland 990100113 Kohima (H igh BSNL MUTATED
School)
34 Nagaland 990100114 Mokokchung DoT
35 Nagaland 990100115 TuliTown DoT
36 Nagaland 990100116 Dimapur Pura BSNL MUTATED
Bazar
37 Nagaland 990100117 Suru Hoto DoT
38 Nagaland 990100118 Dimapu r BSNL MUTATED
Walford
Land in the name of
BSNL/ DoT
39 Nagaland 990100119 Pephema BSNL MUTATED
40 Nagaland 990100120 Zunheboto DoT
41 Nagaland 990100121 Signal Bosti DoT
42 Nagaland 990100122 Dimapur (PRX) DoT
43 Nagaland 990100123 Wakching DoT
44 Nagaland 990100124 Kohima BSNL MUTATED
45 Nagaland 991600000 Changtongya DoT
46 Nagaland 991600001 Chumukedima BSNL MUTATED
47 Nagaland 991600002 Kohima TE BSNL MUTATED
48 Nagaland 991600003 Wokha DoT
“Annexure II to the Independent Auditor’s Report of even date to the members of Bharat Sanchar Nigam Limited on the Consolidated Ind AS
financial Statements for the year ended 31 March 2018”
APPENDIX B
1027-Odisha
455
License Fees & USO Levy (Rs.) Spectrum Usage Charges Total
Paid / Adjusted 35,68,66,211.00 22,51,64,510.00 58,20,30,721.00
Booked to Expenses 39,27,11,081.91 17,75,07,693.82 57,02,18,775.73
Excess / (Short) paid (3,58,44,870.92) 4,76,56,816.17 1,18,11,939.25
1026-NE II

Figure in Rupees
CONSOLIDATED LICENSE FEE & SPECTRUM CHARGES FOR THE YEAR- 2017-18
1 BASIC 3,236,000 5,393,334 33,641
2 CMTS 14,181,168 23,635,280 37,298,817
3 NLD 8,009,944 13,349,906 -
4 ILD 574,549 957,581 -
5 V-SAT - - -
Figure in Rupees
6 INTERNET 6,086 10,144 -
7 WIMAX - - 1,678
Grand Total 26,007,747 43,346,245 37,334,136
Annexure-2
Figure in Rupees
SUMMARY FOR CALCULATION OF LICENSE FEE & SPECTRUM CHARGES ON REVENUES FOR THE YEAR 2017-18 (CMTS)
Sl Details MSR NLD ILD SPECTRUM SPECTRUM SPECTRUM
No CHGS(3G+2G) CHGS(CDMA) CHGS(DATA)
1 Gross Revenue 472,705,681 149,984,014 8,464,109 471,287,083 1,418,523 84,776,517
Less:Deduction Claimed 75
2 Net Revenue(AGR) 472,705,606 149,984,014 8,464,109 471,287,083 1,418,523 84,776,517
License Fee 14,181,168 4,499,520 253,923 - - -
USO Levy 23,635,280 7,499,201 423,205 - - -
456
3 Spectrum Charges - - - 31,576,235 42,556 5,680,027

Total License Fee & Spec Charges 37,816,448 11,998,721 677,129 31,576,235 42,556 5,680,027
Annexure-2
Figure in Rupees
SUMMARY FOR CALCULATION OF LICENSE FEE & SPECTRUM CHARGES ON REVENUES FOR THE YEAR 2017-18 (BASIC)
SPECTRUM SPECTRUM
Sl No Details BSR NLD ILD V-SAT INTERNET
CHGS (DSPT) CHGS (WIMAX)
1 Gross Revenue 107,866,675 117,014,109 10,687,509 - 226,626,613 841,030 167,768
Less: Deduction (Pure Internet Service) - - - - 226,423,741 - -
2 Net Revenue (AGR) 107,866,675 117,014,109 10,687,509 - 202,872 841,030 167,768
License Fee 3,236,000 3,510,423 320,625 - 6,086 - -
USO Levy 5,393,334 5,850,705 534,375 - 10,144 - -
3 Spectrum Charges - - - - - 33,641 1,678
Total License Fee & Spec Charges 8,629,334 9,361,129 855,001 - 16,230 33,641 1,678
Kolkata Telephones
License fees payable to DOT are stated to have been recognised by the Circle in terms of the License Agreement
between the Company and DOT as amended as per the instructions issued by the Corporate Office from time to
time regarding the matter. However, we have not verified the said agreement, since we were informed that no
copy of the same is available in the Circle Office.
b) The Circle does not have the system of identifying actual usage of NLO and ILO calls. As such, license fees
payable to DOT on the revenue arising out of such services have been accounted for at predetermined rates as
stated in paragraph no.9.~ of Note-38 to the financial statement.
Accordingly, the cumulative effects of the above matters could not be ascertained on the Loss of the Circle for
the year.
Rajasthan circle
Revenues in respect of interest income from private telecom operators for delayed payment of various charges are
accounted for on cash basis as per accounting’ policy of the company and hence are not considered on accrual
basis for the purpose of calculation of License fees payable
The exchange-wise reconciliation of outgoing metered calls and billed calls have not been done in most of the
units of the circle .Consequently the completeness of the bills raised vis- a- vis metered calls is not verifiable.
lncome relating to Post paid subscribers, CDMA services, Basic services, lUC, Broadband/ internet and Circuits
have been taken on the basis of sub ledger/ reports generated through centralized software at Chandigarh. We
have not verified the completeness and correctness of the income booked on the basis of above sub ledgers/
reports and has relied on these sub ledgers/ reports for the purpose of verification for the abovd revenue. Any
consequential impact of the same of the license fees and spectrum charges cannot be commented upon
No billings are made for reciprocal services provided between BSNL, MTNL, DOP and DOT. Hence the same
could not be included in Revenue for the purpose of calculation of License fees payable.
As explained to us, interest on outstanding Balances of DOT is not accounted for on accrual basis and hence the
same could not be included in Revenue for the purpose of calculaiion of License fees payable.
NCNGN Circle
We observed that Advice Transfer debit (ATD) amounting to Rs.37.68 crore and Advice Transfer Credit aounting
to Rs.1.26 lakhs were raised to different circles which were unresponded. The impact of the same on AGR
couldot be ascertained.
MP Circle
Interest received on security deposits from MEMKVV company limited is set off directly from bills thus interest
amount cannot be ascertained. Since the interest income is not ascertainable and recognized separately the
liability of license fee is understated to that extent.
457
BSNL CHTD ANNEXURE II B
GL CODE DETAILS AMOUNT

5022008 Bad Debts Written Off (Other than services) 32,257.45
5022009 Bad Debts Written Off Services 49,570,285.37
5022010 Service tax for post paid but not collected 3,090,363.59
5022013 SBC paid for post paid but not collected 11,054.21
5022015 KKC paid for post paid but not collected 3,310.50
5022016 GST paid but not collected hence W/off 2,665.49
Total 52,709,936.61
Sl. No. Billing ID Customer Name Bill Date ABF

1 10801043 I C NET 27/05/1996 67062
2 10300035 APPOLLO TUBES 02/06/1997 77333
3 10100870 S.K.RANGANATHAN & CO 10/04/2000 13319
4 10600450 DISHNET WIRELESS 01/06/2000 64090
5 10402723 MRS M.S.SHARANYA 01/06/2000 2208
7 10802021 G. TIBARAWALA & CO, 30/05/2001 909
17 10103147 ANTARIX E APPLICATIONS LTD 11/03/2004 9885
18 10402860 HCL PERIPHERALS 11/03/2004 8856
19 10103508 TODI TELECOM 11/03/2004 6375
21 10801218 EQUIFAX VENTURE INFOTEX LTD 25/03/2004 13303
22 10104281 M/S. SRI SATHYA SAI INFOTECH PVT. LTD., 01/04/2004 1648
23 10103894 G.SURESH BABU 15/04/2004 1847
24 10103894 G.SURESH BABU 01/05/2004 6477
29 10102944 SERVION GLOBAL SOLUTIONS LTD 01/03/2005 23123
30 10104722 VECTONE (I) LTD 01/03/2005 22017
458

34 10102979 GE COUNTRY CONSUMER 01/03/2005 15589
35 10103885 BETHAL NETWORLD, 01/03/2005 11979
38 10402860 HCL PERIPHERALS 01/03/2005 10689
39 10104024 REUTERS (I) PVT. LTD., 01/03/2005 10333
42 10104584 ATLAS LOGISTICS PVT LTD 01/03/2005 9397
43 10102943 EASWARI ENGINEERING COLLEGE 01/03/2005 8722
46 10103894 G.SURESH BABU 01/03/2005 6348
47 10103508 TODI TELECOM 01/03/2005 6248
48 10104626 K.SATISH 01/03/2005 6173
50 10104364 GLOBAL CONNECT, 01/03/2005 3785
51 10104333 NEXT DIMENSIONS, 01/03/2005 1715
55 10103345 CHOLAMANDALAM DBS FINANCE LTD 08/03/2005 21325
57 10108568 MEDOPHARM 02/05/2005 19657
58 10108570 GGS INFORMATION SERVICES INDIA PVT LTD 02/05/2005 16237
61 10104984 KONE ELEVATORS INDIA PVT LTD 07/06/2005 24393
62 10108393 TATA CONSULTANCY SERVICES 01/07/2005 25667
63 10202566 M/S. DATA ACCESS (I) LTD., 01/07/2005 20893
64 10104872 AFL PRIVATE LTD 01/07/2005 19684
66 10108949 INSTITUTE FOR DEVELOPMENT & RESEARCH IN 01/07/2005 15689
BANKING T
67 10104851 SUNDARAM ASSET MANAGEMENT LTD 01/07/2005 10113
70 10101802 ROXER COM [P] LTD 01/09/2005 6742
459
73 10104928 M.MAHALINGAM 07/11/2005 5279
76 10801266 INDIA SWITCH COMPANY [P] LTD 25/11/2005 14642
78 10101802 ROXER COM [P] LTD 01/12/2005 6742
79 10102754 L.G INFOSOFT 01/12/2005 4420
82 10108135 S.MALATHI 02/12/2005 4019
85 10103334 OLAM EXPORTS INDIA LTD 07/02/2006 1565
86 10104996 TAMIL NADU AIR TRAVELS PVT LTD 07/02/2006 1285
88 10108568 MEDOPHARM 04/03/2006 8328
93 10104474 BLUESHIFT INDIA PVT LTD 04/03/2006 4164
96 10103949 KVP SOFTWARE (P) LTD., 04/03/2006 4164
98 10103130 CRAZY PLANET 04/03/2006 862
99 10103712 GATI LIMITED 07/03/2006 35227
100 10104399 INTUITIVE OBJECTS SOFTWARE PVT., LTD., 07/03/2006 34847
102 10108568 MEDOPHARM 07/03/2006 31924
LTD.,
108 10103291 TATA INTERNET SERVICES LTD., 07/03/2006 27387
110 10104905 MEGASOFT LTD 07/03/2006 24423
111 10104181 SMALL INDUSTRIES SERVICE INSTITUTE, 07/03/2006 23859
460

112 10103983 COGNIZANT TECHNOLOGY SOLUTIONS INDIA 07/03/2006 22942
PVT LTD
116 10101234 SIP TECHNOLOGIES AND EXPORTS LTD 07/03/2006 22686
117 10108142 BHARATI CELLULAR LIMITED 07/03/2006 20819
118 10104928 M.MAHALINGAM 07/03/2006 20226
119 10104427 SAI COMMUNICATIONS 07/03/2006 19978
LTD.,
122 10104570 S. MOHAMAED RAMEES 07/03/2006 19964
123 10104240 MR. M.A. MOHAMMED AFSAR 07/03/2006 18603
124 10104178 MR. A. SEKAR, 07/03/2006 17328
126 10103885 BETHAL NETWORLD, 07/03/2006 16083
127 10102032 BANYAN NETWORK PVT LTD 07/03/2006 15880
129 10103984 ITC LIMITED 07/03/2006 15880
130 10104595 S.SAMUEL RAJ 07/03/2006 14519
131 10104123 UNIWORLD LOGISTICS (P) LTD., 07/03/2006 14398
132 10108397 MARUTI UDYOG LIMITED 07/03/2006 13158
134 10101429 NET ACCESS INDIA PVT LTD 07/03/2006 11797
135 10402860 HCL PERIPHERALS 07/03/2006 9736
136 10402860 HCL PERIPHERALS 07/03/2006 9736
137 10103157 AMBAL TECHNOLOGIES (P) LTD 07/03/2006 7726
138 10103193 OLAM EXPORT 9INDIA) LTD 07/03/2006 7009
139 10104626 K.SATISH 07/03/2006 6173
140 10104559 DECCAN AVIATION (P) LTD 07/03/2006 6016
142 10102264 AIR INDIA LTD 07/03/2006 4117
144 10104364 GLOBAL CONNECT, 07/03/2006 3785
145 10104299 PRANTTA SINHA, 07/03/2006 2967
146 10103265 FENNER [INDIA] LTD 07/03/2006 2246
147 10104333 NEXT DIMENSIONS, 07/03/2006 1715
149 10108259 RANE BRAKE LININGS LIMITED 10/03/2006 34703
150 10103879 SIP TECHNOLOGIES & EXPORTS LIMITED 10/03/2006 31740
151 10104827 ERNET 10/03/2006 25813
461
152 10104828 ERNET 10/03/2006 25813
156 10104335 P. RAJASEKHAR 10/03/2006 22849
157 10108044 HCL TECHNOLOGIES LIMITED 10/03/2006 19886
159 10104722 VECTONE (I) LTD 10/03/2006 18405
161 10108771 INTERNATIONAL CLEARING & SHIPPING AGENCY 10/03/2006 13451
162 10108158 VSNL 10/03/2006 5939
163 10102933 ATHROS INDIA LLC. 10/03/2006 4743
168 10102839 FINANCIAL SOFTWARE & SYSTEM PVT LTD 21/03/2006 9676
169 10101205 SOFTWARE SOLUTIONS INTEGRETED LTD 21/03/2006 9499
170 10103678 HCL INFOSYSTEMS LTD., 21/03/2006 9440
174 10108258 RANE TRW STEERING SYSTEMS LIMITED 21/03/2006 9321
175 10104762 DR.AGARWALS EYE HOSPITAL LTD 21/03/2006 7713
177 10103112 HCL INFOSYSTEMS LTD 21/03/2006 5898
179 10108774 GRT GRAND 21/03/2006 5637
182 10104323 SUNLAY FASHIONS (FAR EAST) LTD. 22/03/2006 10436
183 10402097 SOMAYAJULU & CO 01/06/2000 7379
184 10402064 STERLING HOLIDAY RESORTS INDIA LTD 01/06/2000 5365
185 10401952 SOMAYAJULU & CO 01/06/2000 3144
186 10402273 SOMAYAJULU & CO 01/06/2000 3090
187 10402363 PATTERSON & CO 01/06/2000 2396
188 10600332 USHODAYA PUBLICATION 01/06/2000 1357
189 10401385 PATTERSON & CO 02/06/2000 23385
LTD
LTD
462

192 10103948 MADURA COATS LTD., 01/11/2003 1604
193 10103138 BRAKES INDIA LTD 28/11/2003 9237
194 10201688 ORCHIN CHEMICAL & PHARMACEUTICALS LTD 01/12/2003 33996
195 10201791 TATA INFOTECH LTD., 07/01/2004 70587
LTD.,
197 10102762 CITICROP OVERSEAS SOFTWARE LTD 11/03/2004 86279
198 10102607 AMRUTANJAN INFOTECH 11/03/2004 76298
200 10103675 E CARE.C0M 11/03/2004 56964
201 10103665 Z AXIS INNOVATIONS PVT. LTD., 11/03/2004 31667
PVT. LTD.
203 10101845 SITA 11/03/2004 15373
204 10104134 S. RAMESH 11/03/2004 14045
205 10104112 DELTAA SOLUTIONS 11/03/2004 13270
206 10104092 RAJESH MALIK 11/03/2004 12766
207 10102835 BUSH BOAKE ALLEN INDIA LTD 11/03/2004 11162
208 10103751 WILLOW SOLUTIONS PVT. LTD., 11/03/2004 9472
209 10102836 BUSH BOAKE ALLEN [I] LTD 11/03/2004 9064
210 10103740 MR. ANAND . M.V 11/03/2004 7529
211 10104034 B. ANANDHY 11/03/2004 3685
212 10101683 MANMAR TECHNOLOGIES LTD 11/03/2004 3251
213 10300629 FUNSKOOL (INDIA) LTD 11/03/2004 1516
215 10402931 MEDOPHARM 11/03/2004 394
216 10103947 ANBU SELVI, 11/03/2004 181
217 10104272 PENTAMEDIA GRAPHICS LIMITED 07/04/2004 32697
218 10104346 BRAKES INDIA LTD., 01/05/2004 20079
219 10104026 DATA ACCESS (I) LTD., 05/06/2004 7346
220 10103240 HUTCHISON ESSAR SOUTH LTD., 08/06/2004 12965
221 10000125 WIPRO NET LTD 12/08/2004 255853
222 10000124 WIPRO NET LTD 12/08/2004 111442
223 10000110 BPL NET DOT COM P LTD 12/08/2004 19546
224 10104431 HARI PRIYA P 01/09/2004 1686
226 10102838 CHENNEI CONTAINER TERMINAL LTD. 01/03/2005 40500
228 10104915 VINAYAKA IT PARKX PVT LTD 01/03/2005 32786
463
232 10104484 HCLTECHNOLIGIES LTD 01/03/2005 19778
PVT. LTD.
240 10402922 SWASTIK FOREX 01/03/2005 5287
242 10109021 BORGIA SOOSAI 15/04/2005 19081
244 10108453 APOLLO HOSPITAL ENTERPRISES 02/05/2005 13623
245 10109055 S.I.T.A 17/05/2005 10358
246 10104028 SWIFTMAIL COMMUNICATIONS LTD., 01/06/2005 13709
248 10202330 DATA ACCESS (INDIA) LTD., 03/06/2005 20440
251 10108358 CHEIF ENGINEER SOUTH ZONE 11/07/2005 12726
252 10108825 MRF LIMITED 11/07/2005 8121
253 10102449 DATA ACCESS INDIA LTD 01/09/2005 9321
254 10103426 VERTEX SYSTEMS LTD 01/09/2005 4420
256 10102462 N-LOGUE COMMUNICATIONS PVT LTD., 01/09/2005 2450
257 10108155 DHL DANZAS LEMUIR P LTD 02/09/2005 14371
258 10108160 GE COUNTRY WIDE CONSUMER FINANCIAL 02/09/2005 11488
SERVICE
260 10104880 TUTORS WORLDWIDE [I] PVT LTD 02/09/2005 5705
261 10108257 RANE ENGINE VALUES LTD 02/09/2005 970
262 10108170 SCANWELL LOGISTICS INDIA PVT LTD 05/10/2005 6152
263 17000025 LAPIZ DIGITAL SERVICE 21/10/2005 80301
264 10103723 M/S. ELLAAR INFOTEK SOLUTIONS (P) LTD., 24/10/2005 3089
268 10108274 VSNL 06/02/2006 5013
269 10108272 THE STOCK EXCHANGE MUMBAI 07/02/2006 528
270 10109073 OASIS INTERNATIONAL 10/02/2006 1258
271 10101697 VSNL 03/03/2006 8328
464

273 10104205 SWIFT MAIL COMMUNICATIONS LTD., 04/03/2006 3030
280 10109041 SECOVA ESERVICES LIMITED 07/03/2006 24423
285 10109069 SPEED BIRDS PVT LTD 07/03/2006 19964
286 10103782 HINDUSTAN THOMPSON ASSOCIATES LIMITED 07/03/2006 8721
287 10104765 LIFESTYLE INTERNATIONAL P LTD 07/03/2006 4183
288 10103252 I-FLEX SOLUTION LTD 07/03/2006 3865
291 10102456 GREAVES LTD 07/03/2006 2449
293 10109075 VIRTUSA INDIA PVT LTD 10/03/2006 33221
295 10104774 TVS FINANCE AND SERVICES LTD 10/03/2006 25248
296 10104385 GTL LIMITED, 10/03/2006 24515
297 10102618 VOLTAS LTD., 10/03/2006 19886
300 10101697 VSNL 10/03/2006 9887
301 10108159 VSNL 10/03/2006 7368
302 10108081 VSNL 10/03/2006 5435
303 10108064 VSNL 10/03/2006 2964
304 18000001 NATARAJAN . R 11/03/2006 24501
305 17000053 VECTONE ENTERTAINMENT INDIA PVT LTD 15/03/2006 13599
PVT. LTD.
309 10104031 ZYLOG SYSTEMS LIMITED 22/03/2006 18276
TOTAL 5443838
465
G/L Account 5022013 BSC paid for post paid service but not colleced
G/L Account 5022009 BAD DEBT (DEBTS FOR SERVICE PROVIDED ) WRITTEN OFF
G/L Account 5022010 Service Tax paid for post paid service but not co
G/L Account 5022016 GST Paid but not collected hence written off
G/L Account 5022008 BAD DEBT(OTHER THAN SERVICES) WRITTEN OFF
CDRTB 5022009 2017 2200000002 01/05/2017 R2 174537.22 3601 CDR APR-17 TB
CDRTB 5022009 2017 2200000023 31/05/2017 R2 53868.38 3601 CDR MAY-17 TB
CDRTB 5022009 2017 2200000039 30/06/2017 R2 617800.84 3601 CDR JUN-17 TB
CDRTB 5022009 2017 2200000048 31/07/2017 R2 756238.24 3601 CDR TB JUL-17
CDRTB 5022009 2017 2200000062 30/09/2017 R2 2564108.99 3601 CDR SEP-17 TB
CDRTB 5022009 2017 2200000081 31/10/2017 R2 3786466.64 3601 CDR OCT-17 TB
CDRTB 5022009 2017 2200000087 30/11/2017 R2 2243087.67 3601 CDR NOV-2017 TB
CDRTB 5022009 2017 2200000130 31/12/2017 R2 807312.49 3601 CDR DEC-17 TB
CDRTB 5022009 2017 2200000128 01/01/2018 R2 807312.49 3601 CDR DEC-17 TB
466
CDRTB 5022009 2017 2200000129 01/01/2018 R2 -807312.49 3601 CDR DEC-17 TB

CDRTB 5022009 2017 2200000169 01/02/2018 R2 2854115.21 3601 CDR JAN-18 TB
CDRTB 5022009 2017 2200000201 28/02/2018 R2 4895858.75 3601 CDR FEB-18 TB
CDRTB 5022009 2017 2200000264 31/03/2018 R2 8139483.61 3601 CDR MAR-18 TB
CDRTB 5022009 2017 2200000268 31/03/2018 R2 8139483.61 3601 CDR MAR-18 TB
CDRTB 5022009 2017 2200000269 31/03/2018 R2 -8139483.61 3601 CDR MAR-18 TB
5022009 Total 29994196.53
CDRTB 5022010 2017 2200000002 01/05/2017 R2 9306.38 3601 CDR APR-17 TB
CDRTB 5022010 2017 2200000023 31/05/2017 R2 5706.94 3601 CDR MAY-17 TB
CDRTB 5022010 2017 2200000039 30/06/2017 R2 62619.04 3601 CDR JUN-17 TB
CDRTB 5022010 2017 2200000048 31/07/2017 R2 70981.89 3601 CDR TB JUL-17
CDRTB 5022010 2017 2200000062 30/09/2017 R2 273803.19 3601 CDR SEP-17 TB
CDRTB 5022010 2017 2200000081 31/10/2017 R2 398032.76 3601 CDR OCT-17 TB
CDRTB 5022010 2017 2200000087 30/11/2017 R2 238224.47 3601 CDR NOV-2017 TB
CDRTB 5022010 2017 2200000130 31/12/2017 R2 54141.09 3601 CDR DEC-17 TB
CDRTB 5022010 2017 2200000128 01/01/2018 R2 54141.09 3601 CDR DEC-17 TB
CDRTB 5022010 2017 2200000129 01/01/2018 R2 -54141.09 3601 CDR DEC-17 TB
CDRTB 5022010 2017 2200000169 01/02/2018 R2 311337.45 3601 CDR JAN-18 TB
CDRTB 5022010 2017 2200000201 28/02/2018 R2 539546.09 3601 CDR FEB-18 TB
CDRTB 5022010 2017 2200000264 31/03/2018 R2 396659.95 3601 CDR MAR-18 TB
CDRTB 5022010 2017 2200000268 31/03/2018 R2 396659.95 3601 CDR MAR-18 TB
CDRTB 5022010 2017 2200000269 31/03/2018 R2 -396659.95 3601 CDR MAR-18 TB
5022010 Total 2705949.65
CDRTB 5022013 2017 2200000002 01/05/2017 R2 22.56 3601 CDR APR-17 TB
CDRTB 5022013 2017 2200000023 31/05/2017 R2 17.28 3601 CDR MAY-17 TB
CDRTB 5022013 2017 2200000039 30/06/2017 R2 91.16 3601 CDR JUN-17 TB
CDRTB 5022013 2017 2200000048 31/07/2017 R2 203.82 3601 CDR TB JUL-17
CDRTB 5022013 2017 2200000062 30/09/2017 R2 250.1 3601 CDR SEP-17 TB
CDRTB 5022013 2017 2200000081 31/10/2017 R2 656.01 3601 CDR OCT-17 TB
CDRTB 5022013 2017 2200000087 30/11/2017 R2 386.16 3601 CDR NOV-2017 TB
CDRTB 5022013 2017 2200000130 31/12/2017 R2 125.82 3601 CDR DEC-17 TB
CDRTB 5022013 2017 2200000128 01/01/2018 R2 125.82 3601 CDR DEC-17 TB
467
CDRTB 5022013 2017 2200000129 01/01/2018 R2 -125.82 3601 CDR DEC-17 TB

CDRTB 5022013 2017 2200000169 01/02/2018 R2 4164.79 3601 CDR JAN-18 TB
CDRTB 5022013 2017 2200000201 28/02/2018 R2 2672.12 3601 CDR FEB-18 TB
CDRTB 5022013 2017 2200000264 31/03/2018 R2 979.79 3601 CDR MAR-18 TB
CDRTB 5022013 2017 2200000268 31/03/2018 R2 979.79 3601 CDR MAR-18 TB
CDRTB 5022013 2017 2200000269 31/03/2018 R2 -979.79 3601 CDR MAR-18 TB
5022013 Total 9878.96

CDRTB 5022015 2017 2200000264 31/03/2018 R2 549.66 3601 CDR MAR-18 TB
CDRTB 5022015 2017 2200000268 31/03/2018 R2 549.66 3601 CDR MAR-18 TB
CDRTB 5022015 2017 2200000269 31/03/2018 R2 -549.66 3601 CDR MAR-18 TB
CDRTB 5022015 2017 2200000201 28/02/2018 R2 578.3 3601 CDR FEB-18 TB
CDRTB 5022015 2017 2200000169 01/02/2018 R2 294.68 3601 CDR JAN-18 TB
CDRTB 5022015 2017 2200000128 01/01/2018 R2 89.27 3601 CDR DEC-17 TB
CDRTB 5022015 2017 2200000129 01/01/2018 R2 -89.27 3601 CDR DEC-17 TB
CDRTB 5022015 2017 2200000130 31/12/2017 R2 89.27 3601 CDR DEC-17 TB
CDRTB 5022015 2017 2200000087 30/11/2017 R2 112.62 3601 CDR NOV-2017 TB
CDRTB 5022015 2017 2200000081 31/10/2017 R2 180.67 3601 CDR OCT-17 TB
CDRTB 5022015 2017 2200000062 30/09/2017 R2 88.14 3601 CDR SEP-17 TB
CDRTB 5022015 2017 2200000048 31/07/2017 R2 74.56 3601 CDR TB JUL-17
CDRTB 5022015 2017 2200000039 30/06/2017 R2 42.02 3601 CDR JUN-17 TB
CDRTB 5022015 2017 2200000023 31/05/2017 R2 12.08 3601 CDR MAY-17 TB
CDRTB 5022015 2017 2200000002 01/05/2017 R2 3.33 3601 CDR APR-17 TB
5022015 Total 2136.84
GSM 5022008 2017 1000104729 31/03/2018 SA 32257.45 3601 MRJS-367 CDMA LF WRITTEN OFF MAR18
5022008 Total 32257.45
GSM 5022009 2017 2200000009 30/04/2017 R2 130522 3601 MRJS-4 GSM ABF WRITTEN OFF APR 2017
GSM 5022009 2017 1000074371 31/01/2018 SA 163799 3601 MRJS-236 GSM ABF WRITTEN OFF JAN 2018
GSM 5022009 2017 1000085496 28/02/2018 SA 114858 3601 MRJS-278 CDMA ABF WRITTEN OFF FEB 2018
GSM 5022009 2017 1000095649 31/03/2018 SA 8304110.25 3601 MRJS-325 CDMA ABF WRITTEN OFF MAR18
GSM 5022009 2017 1000104716 31/03/2018 AB -8304110.25 3601 MRJS-325 CDMA ABF WRITTEN OFF MAR18
GSM 5022009 2017 1000104729 31/03/2018 SA 8271852.8 3601 MRJS-367 CDMA ABF WRITTEN OFF MAR18
GSM 5022009 2017 2200000229 31/03/2018 R2 2916559.08 3601 MRJS-324 GSM ABF WRITTEN OFF MAR18
468
5022009 Total 11597590.88

GSM 5022010 2017 2200000161 31/01/2018 R2 16804 3601 MRJS-250 Addl JS for GSM woff new bills
GSM 5022010 2017 1000095665 31/03/2018 SA 89079.86 3601 MRJS-335 Addl JS for CDMA woff new bill
GSM 5022010 2017 2200000232 31/03/2018 R2 247776.52 3601 MRJS-328 Addl JS for GSM woff new bills
5022010 Total 353660.38
5022013 Total 958.68
5022015 Total 957.09
GSM 5022016 2017 1000100330 31/03/2018 SA 1360.84 3601 MRJS-330 GSM GST WRITTEN OFF MAR18
GSM 5022016 2017 1000100331 31/03/2018 SA 544.06 3601 MRJS-332 CDMA GST WRITTEN OFF MAR18
GSM 5022016 2017 1000105653 31/03/2018 SA 167.19 3601 MRJS-370 GSM GST WRITTEN OFF MAR18
5022016 Total 2072.09
NONMIG 5022009 2017 2200000282 31/03/2018 R2 2481231.42 3601 NON-MIGRATION WRITE OFF 2017-18
5022009 Total 2481231.42
NONMIG 5022010 2017 2200000282 31/03/2018 R2 24689.6 3601 NON-MIGRATION WRITE OFF 2017-18
5022010 Total 24689.6
5022009 Total 53870.43
5022010 Total 6063.96
469

5022013 Total 216.57

5022015 Total 216.57
5022016 Total 593.4
Grand Total 47266540.5
NON MIGRATED WRITE OFF
Land Line 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 926087.00 0.00 1444988.79 2371075.79
Broadband 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
FTTH 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
IN 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
LF WOFF 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 1952.00 0.00 0.00 1952.00
Total Services Written Off ( 2-6 Total) 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 928039.00 0.00 1444988.79 2373027.79
Stax POT 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 24409.18 0.00 280.42 24689.60
Service Tax Payable - Telephones /Stax 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 171254.63 0.00 203117.79 374372.42
PrePOT / GL 1320202
CGST 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
SGST 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Total Service Tax Written Off 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 195663.81 0.00 203398.21 399062.02
Total Write off Services+Tax SLR 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 1123702.81 0.00 1648387.00 2772089.81

470
DETAILS OF WOFF SANCTIONS FROM ZONES 2017-18

Woff Amt Including
Zone Case Written off APR to DEC DEC to MAR Total Sanctions
Stax
CE 11105 8833564.06 2893152.00 5942044.00 8835196.00
NE 7537 2209922.41 1440068.00 769854.41 2209922.41
NP 3600 3796133.37 606524.00 3189609.00 3796133.00
NW 7623 2039095.65 2039095.00 2039095.00
SE 7197 4280324.95 4280234.00 0.00 4280234.00
SW 9405 6016721.53 3079704.00 2937017.00 6016721.00
WE 11724 5949030.72 4186721.00 1761826.24 5948547.24
Total 58191 33124792.69 18525498 14600350.65 33125848.65
CFA
Land Line 109991.00 19960.00 225148.00 241967.00 1045840 887002 1673218 867074 496457.00 1484066 2045605 5645494.00 14741822.00
Broadband 62768.00 30555.00 363767.00 496065.00 1970297 1636266 1994106 1290270.00 294421.00 1216012 2590564 2390079.00 14335170.00
FTTH 0.00 0.00 11865.00 1234.00 3.00 1376.00 0.00 23455.00 0.00 64613 117984 1496.00 222026.00
IN 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
LF WOFF 1778.00 3353.00 17021.00 16972 85178 39465 119142 62289.00 16434.00 89514 141732 102414.00 695292.00
Total Services Written 174537.00 53868.00 617801.00 756238.00 3101318.00 2564109.00 3786466.00 2243088.00 807312.00 2854205.00 4895885.00 8139483.00 29994310.00
Off ( 2-6 Total) As Per
CDRSLR
Stax POT 9332 5736.00 62752.00 71260.00 346011.00 274141 398870.00 238723.00 54356.00 315798 542542 398190.00 2717711.00
Service Tax Payable 9542 144.00 5374.00 10852.00 11852.00 21352 15330.00 9228.00 23455.00 22058 28830 254755.00 412772.00
- Telephones /Stax
PrePOT / GL 1320202
Written Off
Total Write off 193411.00 59748.00 685927.00 838350.00 3459181.00 2859602.00 4200666.00 2491039.00 885123.00 3192061.00 5467257.00 8792428.00 33124793.00
Services+Tax SLR
CDRTB HOA 174537.22 53868.38 617800.84 756238.24 3101318.49 2564108.99 3786466.64 2243087.67 807312.49 2854115.21 4895858.75 8139483.61 29994196.53
471
1742006
“Ser Tax paid but not 9306.00 5706.94 62619.04 70981.89 345590.40 273803.19 398032.76 238224.47 54141.09 311337.45 539546.09 396659.95 2705949.27
coll HOA 1742007 /
5022010”
“SBC not collected 22.56 17.28 91.16 203.82 309.35 250.10 656.01 386.16 125.82 4164.79 2672.12 979.79 9878.96
hence w - HOA
1742008 / 5022013”
“ KKC not collected 3.33 12.08 42.02 74.56 111.51 88.14 180.67 112.62 89.27 294.68 578.30 549.66 2136.84
hence w HOA
1742009 / 5022015”

HOA 1192301 + 9,542.29 162.17 5373.56 10851.90 14651.10 21354.05 15330.09 9228.04 24151.74 22072.66 28867.79 262414.02 423999.41
1192306 + 1192309
Total Write off 193411.40 59766.85 685926.62 838350.41 3461980.85 2859604.47 4200666.17 2491038.96 885820.41 3191984.79 5467523.05 8800087.03 33136161.01
Services+Tax TB
GSM/CDMA
GSM 5022009 130522.00 163799.00 2916559.08 3210880.08
CDMA 5022009 114858.00 8271852.80 8386710.80
Late fees 5022008 32257.45 32257.45
Off ( 2-6 Total)
Stax POT 0 0 0 0 0 0 0 0 0 16907.77 0 338668.15 355575.92
Service Tax Payable 13109.99 0 0 0 0 0 0 0 0 2664.26 12896.26 855053.63 883724.14
Cellular Mobile /GL
1320213 Stax PrePOT
CGST 0 0 0 0 0 0 0.00 0.00 0.00 0 0 1036.04 1036.04
SGSST 0 0 0 0 0 0 0.00 0.00 0.00 0 0 1036.04 1036.04
Written Off
Total 143631.99 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 183371.03 127754.26 12416463.19 12871220.47
Leased Circuits
472
CCT 0.00 0.00 7260.69 46609.54 53870.23
CDMA 0.00 0.00 0.00
Off ( 2-6 Total)
Stax POT 0 0 0 0 0 0 0 0 0 0 0 6497.1 6497.10
Service Tax Payable 0 0 0 0 0 0 0 0 0 0 731.18 0 731.18
Cellular Mobile /GL
1320213 Stax PrePOT
CGST 0 0 0 0 0 0 0 0 0 0 0 296.61 296.61
SGSST 0 0 0 0 0 0 0 0 0 0 0 296.61 296.61
Written Off
The Management replies to Independent Auditor’s Report on

Consolidated Financial Statement for the Financial Year 2017-18 are given below:
Audit Para Management Reply

8 As detailed in note 38 and 41.1 to the The Company has recorded all identified assets and
Consolidated Ind AS financial statements, liabilities taken over from DoT as on 01 October 2000. The
assets and liabilities (including contingent value and classification of the assets has been recorded as
liabilities) taken over from DoT on 1 October per the relevant accounting standards and the available
2000 have been verified and valued by the guidelines.
management based on internal calculations.
These are subject to reconciliations and During the current financial year, there is no change in the
confirmation from DoT as regards to value assets and liabilities taken over from DoT as on 1 October
and classification. The consequential 2000. Further, the value of net additional assets identified
impact on the Consolidated Ind AS financial during the previous year was immaterial.
statements, if any, as a result of the same is
presently not ascertainable. Accordingly, management estimates that there will not
be any material identification of assets/ liabilities in the
subsequent years.
9 As detailed in note 42 to the Consolidated BSNL Circles have been asked to provide the details of
Ind AS financial statements, amounts due balances under account head related to claim recoverable
from and to DoT, included in current from DOT to the Office of concerned CCAs for
assets and current liabilities aggregating confirmation.
to Rs. 2,43,013 lakhs (31st March 2017
Rs. 2,20,052 lakhs) and Rs. 31,085 lakhs Current liabilities include running balances payable to
(31st March 2017 Rs. 37,316 lakhs), are DoT like amounts related to general provident fund (GPF),
subject to confirmation, reconciliation and pension contribution, etc. These amounts are generally
consequential adjustment. The impact of settled within next month of the subsequent financial year.
the adjustments, if any, on the Consolidated
ascertainable.
10 (i) In pursuance of Ind AS 101-“First Time Para D5 of Ind AS 101 which provides the option to fair
Adoption of Indian Accounting Standards” value the property, plant and equipment on the transition
the company had selectively fair valued date states that an entity may elect to measure an item
only certain freehold lands as at 1st April of property, plant and equipment at the date of transition
2015, resulting in upward valuation of to Ind ASs at its fair value and use that fair value as its
freehold lands under Property, Plant & deemed cost at that date.
Equipment and the corresponding increase
to Other Equity by a sum of Rs 69,86,449 This para clearly states that the option to fair value items of
lakhs. Fair valuation of only certain lands is property, plant and equipment is available for application
non-compliance of Ind AS 101 First Time to each individual item of property, plant and equipment.
Adoption of Indian Accounting Standards.
Use of fair valuation of selected individual items of property,
plant and equipment as deemed cost is permissible under
Ind AS as on transition date in accordance with Para D5 of
473
Ind AS 101. Since this option is exercised, other items of
property, plant and equipment have been carried at cost
as per Ind AS 16.
Accordingly, the fair value of selected parcels of freehold

land on transition date is in compliance with Ind AS 101.
Further, the selective fair valuation of the land was

examined by Comptroller & Auditor General of India
during certification audit of the financial statements for the
year ended 31 March 2017 and the management view has
been agreed by C&AG.
(ii) Non compliances had also been reported The fair valuation techniques are given in Appendix B to
by the Circle Auditors in the procedure the Ind AS 113.
adopted and non-application of uniform
policies with regard to fair valuation of Accordingly, the Certified valuers have used different
freehold lands. techniques / approaches, appropriate to value such
freehold land on case to case basis and are in accordance
with Ind AS.
The consequential impact of adjustments, if Since, the fair valuation exercise was a one-time activity
any, on the Consolidated Ind AS financial carried on transition date, the impact of fair valuation was
statements is presently not ascertainable. taken to retained earnings and this does not have any
impact on the standalone Ind AS financial statements for
the year ended 31 March 2018.
Revenue
11 i) The company has not applied definition The Company has disclosed its credit risk policy in note
of “Default” and “Assessment of Credit 53(B)(i). The relevant extracts of the policy is as below:
Risk” consistently to all the financial
instruments in terms of Ind AS 109 ‘The Company establishes an allowance for impairment
Financial Instruments. Further, there is that represents its expected credit losses in respect of trade
no renegotiation or modification of the receivable and other financial assets……’
contractual cash flows on trade receivables
The Company has followed the above credit risk policy
from Other Government and/ or PSU
from the date of transition to Ind AS (1 April 2015) for
sector entities. We have also not been
provided with reasonable and supportable all the financial instruments as per Ind AS 109 and
information about past events, current have recognized appropriate loss allowance based on
conditions, forecasts of future economic assessment of specific credit risk.
conditions including any demonstrable
As per the above credit risk policy,
recovery pattern and indicators that led the
management to change its perception in ‘Receivables more than two years past due primarily
the current year 2017-2018 for considering comprises receivables from government departments
trade receivables, from Other Government and PSU’s, which are fully realisable on historical
and/ or PSUs sector entities, as having payment behavior and hence no loss allowance has been
low credit risk vis-à-vis the corresponding recognised. Impairment allowance has already been
previous year that made the management to recognised on specific credit risk factor’.
474
write back in the current year 2017-2018, Generally, the Company makes provision for government
the entire accumulated loss allowance departments and PSU’s, the balances of which are
provided in the earlier year(s). outstanding for more than two years based on specific
credit risk.
We accordingly conclude that the credit Similar approach was followed by the circles in evaluating
risk on such financial instruments (i.e. the adequacy of provisions for dues from government
trade receivables from Government and/ departments and PSU’s and reversals were only made
or PSU sector entities) has not decreased where found suitable by the circles based on estimation of
significantly since initial recognition. the specific credit risks.
Consequently, the write back of loss
allowance in the current year relating to Accordingly, the Company is in compliance with Ind AS
receivables from Government and/ or PSU 109 requirements for trade receivables from Government
sector entities, is not in consonance with and/ PSU sector entities.
the Ind AS 109 Financial Instruments. This is
also not in consonance with the Accounting
Policies as stated in Note No 2.2(p) of
the Significant Accounting Policies of the
company.
We were not supplied the financial Since the provisions are recognized at Circle level, the
information about the write back of loss details of which are available at Circle level.
allowance of trade receivables from other
Government and/ or PSU sector entities
as at March 31, 2018 and accordingly we
are unable to comment upon the impact of
adjustments made for these amounts by the
management.
ii) Net amount receivable from Mahanagar It may be noted that the net amount receivable from
Telephone Nigam Limited (MTNL) as Mahanagar Telephone Nigam Limited (MTNL) as per the
per the Consolidated Ind AS financial Standalone Ind AS financial statements is INR 2,40,711
statements is Rs 3,47,024 lakhs (31 March lakh, being amounts recoverable from MTNL INR 3,62,140
2017 Rs 2,55,188 lakhs), being amounts lakh, amount payable and provision for amounts payable
recoverable from MTNL Rs 3,62,140 lakhs, to MTNL INR 1,21,429 lakh.
amount payable and provision for amounts
A high Level Committee has been formed by DOT vide
payable to MTNL Rs 15,116 lakhs. MTNL
Letter No. 10-14/2013-SU-1 dated 25/06/2013 consisting
however, claims a sum of Rs 3,38,726 lakhs
representatives of DOT, MTNL to sort out the issues with
as recoverable from the Company in the
MTNL.
balance confirmation certificate.
Management has taken up the matter of reconciliation of
The required financial information to verify receivables from and payables to MTNL through a standing
such balances as at March 31, 2018 was committee constituted by DoT.
not provided to us by the company and
accordingly we are unable to comment The issue is under settlement and both being PSUs under
upon the impact of adjustments in the DoT, there would be reconciliation and settlement at the
financial statements that would be required earliest.
475
pursuant to the eventual resolution of such
balances inter-se the company and MTNL.
12 As reported by auditors of 2 circles, the The concerned circles are being instructed to take
income from recharge coupons, prepaid necessary action in the matter.
calling cards, internet connection cards,
sancharnet cards and stock of recharge
coupons and prepaid calling cards are
subject to reconciliations. In the absence of
specific details, the impact of adjustment,
if any, on Ind AS financial statements is
13 One circle auditor has reported non Noted
charging of expenditure amounting to Rs
615.20 lakhs to revenue and writing off
the same from the provisions, thereby
understating the Loss and Provisions by a
sum of Rs 615.20 lakhs.
14 As stated in note 2.2-(p) to the significant Adequate disclosures are already given in the books of
accounting policies, certain items of accounts of BSNL.
revenue are accounted for on cash basis
instead of the accrual basis of recognition of
revenue which is not in accordance with the
generally accepted accounting principles in
India. The impact of the adjustment, if any,
in respect thereof on revenue, license fee,
trade receivables and loss for the year is
15 One circle auditor has reported insufficient The necessary documentary evidence has been provided
documentary evidence and non-providing to the auditors prior to the authorization for issue of the
the basis for booking of Income in respect financial statements by the Board of Directors.
of NFS and LWE projects amounting to Rs
10,474.50 lakhs. Consequential impact
on the Consolidated Ind AS financial
statements, if any, as a result of the same is
16 1 circle auditor has reported that Fixed Noted
Assets taken over from DoT which were not
accounted for in the Consolidated financial
statements of the circle have been sold and
treated as Sale of Scrap. The consequential
impact of adjustments, if any, on the
Consolidated Ind AS financial statements is
476

17 As reported by auditors of 12 circles, Capital CWIP includes turnkey project also, completion of which
Work-in-Progress, inter alia, includes takes several years. As per company policy, capitalization
balances pending capitalization for long- is done on the basis of A/T /Completion Certificate issued
periods of time owning to pending analysis of by the concerned executing agencies.
status, value and obtaining of commissioning
certificates. The consequential impact on Based on Management estimate provision for impairment
the Capital Work-in-Progress, Property has been created for delayed projects pending capitalization
Plant and Equipment, depreciation and wherever there were indicators of impairment.
amortization and loss for the year, if any, is
presently not ascertainable. The Circles are being instructed to capitalize the works
as and when completed and put to use and depreciation
provided from that date.
18 Circle Auditors have reported non- The Circles are being instructed to capitalize the works
capitalisation of completed Capital Work as and when completed and put to use and depreciation
in Progress in the books of accounts, provided from that date.
though being physically used, due to non-
availability of Capital Budget or due to
closure of accounting periods. This has
resulted in overstatement of Capital Work in
Progress, and understatement of Property,
Plant and Equipment, Depreciation and
losses by an amount that is unascertainable
due to insufficient information.
19 Company has capitalised an amount of BSNL is capitalizing interest on the general borrowings
Rs. 57,873 lakhs to Property Plant and to the cost of Property, Plant & Equipment in accordance
Equipment, which is not in compliance with Ind AS-23.
with Ind AS 23-Borrowing Cost. The interest
costs on borrowed funds in respect of the Since the interest on general borrowings is in the nature
Property, Plant and Equipment which were of avoidable interest cost, it has to be capitalized year on
capitalized in the earlier years have not been year on the qualifying assets as these borrowings could
delimited to the extent of bringing them to have been repaid had the expenditure on these qualifying
their being put to use by the company. The assets was not made.
capitalizing of such interest is also made in
the current year without any basis. This has All the borrowings are taken by the Corporate Office
resulted in overstatement of Property, Plant centrally and the payment of interest thereon is also settled
and Equipment, Capital Work in Progress, centrally. The borrowing cost is allocated to the circles in
and understatement of losses by an amount proportion to CAPEX fund transferred to the circles.
that is unascertainable due to insufficient
information.
Further the auditors of 14 circles have

reported that Borrowing Cost pursuant to
applicable Ind AS has been capitalised
based upon ATD/ communication/ excel
sheet received from Head Office. These
477
auditors have expressed their inability to
verify the correctness of these borrowing
costs for want of calculations/ details.
Capital Work in Progress (Stores) amounting The Capital work-in-progress includes assets under
to Rs 6,52,924 lakhs (31 March 2017 construction and cost attributable to construction of assets
4,36,505 lakhs) also includes Inventory not ready for use before the year end.
items which are being used in the repair
and maintenance of the projects. Such The nature of materials are such that the same material is
Inventories have not been separately utilized for both, the projects and repair and maintenance
classified under the head Current Assets. In and there is no physical bifurcation of the items intended
the absence of sufficient audit evidences, to be used for projects or for repair and maintenance.
we are unable to comment upon the impact
of the same on the Capital Work in Progress As per the management, these are to be materially
(Stores) and Inventory in Current Assets. utilized for the project purposes. Accordingly, the same
are presented as ‘Capital work-in-progress in store’ in the
20 As reported by auditors of 8 circles, in the The concerned circles are being instructed to account
absence of information in respect of certain for such types of transactions strictly as per accounting
items of Property Plant and Equipment circulars/ instructions issued in this regard.
capitalized, particularly batteries, it could
not be established whether assets capitalized
were on account of replacement/ extension
of an existing asset or additional acquisition
of a new asset and hence the consequential
impact of the same on the classification/
value of the respective asset, depreciation
and amortization, expenses and loss for the
year, if any, is presently not ascertainable.
21 The leasehold land as identified and Most of the land transferred to the Company was acquired
valued by the respective circles have been by DOT prior to 01/10/2000.
incorporated in the books of accounts
and amortised with effect from the date All leasehold/ freehold land which are known/ identified
of formation of the Company. Hence, in have been accounted for.
respect of the lands still not identified and/ or
duly incorporated in the books of accounts
of the respective circles, the consequential
impact on value of Property Plants and
Equipment, depreciation and amortization
and loss for the year, if any, is presently not
ascertainable.
22 As detailed in note 41.2 to the financial
statements, auditors of 4 circles have
reported on the expired/ non-renewal of
leases on lands on which the Company
had constructed buildings and the fact that
478
management has not made any provision The concerned circles are being instructed to expedite the
for the surrender value/ written down process of getting the lease of lands renewed.
value of the aforementioned buildings in
the anticipation of the ultimate renewal
of the leases, the consequential impact
of adjustment on Property Plant and
ascertainable.
23 As stated in note 3(i) and 41.3 to the financial The company is in the process of executing the title deeds
statements, Property Plant and Equipment, of the lands purchased / acquired, wherever required.
inter alia, includes land pertaining to 5
circles, purchased/ acquired on leasehold/
freehold basis through various authorities,
the title deeds of which are yet to be
executed in the name of the Company..
3 Circle Auditors have reported that Title

deeds are in the name of DoT and 2 Circle
auditors have reported non-availability of
title deeds.
24 The accounting policy of the Company as The circles are being instructed to strictly adhere to the
stated in note 2.1(c) to the financial statements accounting instructions issued on the subject matter.
with respect to the decommissioned
assets—now considered as Asset held for
sale—has not been uniformly applied across
all circles. In 6 circles, the decommissioned
assets are not recorded at lower of the cost
or net realisable value.
While in 3 circles, the decommissioned assets

have not been appropriately adjusted from
the block of Property Plant and Equipment
and depreciation and amortization is still
being charged on such decommissioned
assets. In the absence of sufficient details,
we are unable to comment upon the impact
of adjustment on the Property Plant and
Equipment, current assets, depreciation and
amortization and loss for the year, if any,
arising out of the same.
Certain Circle Auditors have reported that The Management estimates that such WIMAX and
WIMAX and CDMA equipment, though not CDMA equipment are reusable and held for the purpose
being used have not been considered as of obtaining future economic benefits from its use.
decommissioned assets. The consequential Accordingly, the Company have not decommissioned
impact on value of Property Plants and such assets.
479
ascertainable.
25 (i) As reported by auditors of 19 circles, Accounting policy of BSNL in this regard states that the cost
the Company has not consistently adhered includes directly related establishment and other expenses
to capitalizing the overhead expenses including employee remuneration and benefits, directly
specifically attributable to the capital work- identifiable to the construction or creation of assets.
in- progress but has recorded the same on The administrative and establishment expenses incurred in
estimated/ fixed percentage/ payment basis: units where project work is also undertaken are allocated
to capital and revenue mainly on actual basis and on
“actual man-month spent” basis respectively.
(ii) As reported by auditors of 3 circles, the The concerned circles are being instructed to capitalize
company capitalizes the assets on periodic the works as and when completed and from the date of
basis instead of at the ready to use date; and ready to use.
All BSNL Circles has gone live under ERP during F.Y. 2015-
(iii) Accounting policies regarding 16 and since then depreciation is charged on monthly
capitalization, disposal, depreciation basis under ERP.
and amortization of Property Plants and
However, the concerned circles are being instructed to
Equipment are not uniformly applied in
strictly adhere on the accounting policies and instructions
case of 9 circles.
issued in this regard.
1 circle auditor has reported that Overhead The concerned circle is being instructed to strictly adhere
Costs have not been included in Capital Work on the accounting policies and instructions issued in this
in Progress and have instead been charged regard.
to Revenue. The management in its reply
has stated that due to Budget constraints, the
expenses could not be debited to CWIP. This
has resulted in overstatement of Expenditure
and losses by a sum of Rs. 3,984 lacs and
understatement of Capital Work in Progress
by the like amount.
The resultant impact of the above non
compliances with the standards on the
value of Property Plant and Equipments,
Capital Work-in-Progress, Depreciation
and amortization and loss for the year, if
any, are presently not ascertainable
480
26 As detailed in Note 3, during the financial Necessary accounting instructions have been issued to all
year 2017-18 the company has changed the circles for classification, presentation and measurement
the classification for decommissioned of items of property, plant and equipment which are held
assets from Property Plant and Equipment for the purpose of immediate sale. Accordingly, circles
to Assets held for Sale. Prior to this change have classified items of property, plant and equipment as
Decommissioned assets were disclosed assets held for sale which meets the recognition criteria as
at written down value and provision per Ind AS 105.
was made for diminution in the value of
decommissioned assets. The company has During the current year, the Company has only changed
during the year, based upon an internal the presentation of decommissioned assets from property,
assessment, the details whereof were not plant and equipment to assets held for sale as mentioned
provided to us, classified assets held for in the footnote under property, plant and equipment.
sale and these have been valued at lower
of carrying amount and net realisable value, It shall be noted that the accounting policy in both the
and the corresponding gain or loss on the years, i.e. FY 2016-17 and FY 2017-18, is consistent as:
assets held for sale is recorded in ‘Excess
- These assets are carried at lower of net carrying cost and
liabilities written back no longer required’
net realisable value (in both the financial years), and
under ‘Other income’ (refer note 33) and
‘Write off and losses (other than bad debts)’ - No depreciation is charged on these assets once the asset
under ‘Other expenses’ (refer note 37) is decommissioned (irrespective of their classification as
respectively. ‘Property, plant and equipment’ or as ‘Assets held for sale’)
In terms of Ind AS 105 Non-Current Assets Therefore, there is no understatement of provisions or

Held for Sale and Discontinued Operations losses.
an entity shall classify a non-current asset (or
disposal group) as held for sale if its carrying In accordance with Para 38 of Ind AS 105, Assets held
amount will be recovered principally for sale are to be presented separately from other assets
through a sale transaction rather than through in the balance sheet. Further, the presentation done by
continuing use. The asset (or disposal the Company is also supported by the ‘Guidance Note on
group) must be available for immediate Division II – Ind AS Schedule III to the Companies Act
sale in its present condition subject only to 2013’.
terms that are usual and customary for sales
of such assets (or disposal groups) and its
sale must be highly probable duly indicated
by existence of management’s committed
plan to sell the asset (or disposal group), and
commencement of an active programme
to locate a buyer and complete such plan.
Further, the asset (or disposal group) must
be actively marketed for sale at a price that
is reasonable in relation to its current fair
value. Thus, an asset (or disposal group)
cannot be classified as a non-current asset
(or disposal group) held for sale, merely
because the entity intends to sell it in
a distant future. This classification is not in
481
accordance with Ind AS 105.This has
resulted in understatement of Provision
for Diminution in the value of Asset held
for sale, and understatement of losses
by recognition of unrealised gains the
amount of which is unascertainable due to
insufficient information.
27 The company does not follow a system of As per Industry practice, taking confirmation for trade
obtaining confirmation and performing receivables and subscribers deposits from huge subscribers’
reconciliation of balances in respect of base is neither practical nor possible.
trade receivable, deposits with government
departments/ companies (inter-alia, For balances due to or due from other parties i.e. DOT,
including Mahanagar Telephone Nigam DOP, other Govt. departments/ companies etc., circles
Limited and Bharat Broadband Network are instructed again to carry out reconciliation at regular
Limited), claims recoverable from/ payable intervals.
to DoT (including license fees payable as
detailed in note 48(A) of the Ind AS financial
statements) or to/ from other government
departments/ authorities, subscriber/
customer deposit accounts, trade payable
and claims payable. Due to non- availability
of confirmation (except MTNL), and
reconciliations of the aforementioned
account balances, we are unable to quantify
the impact of the adjustments, if any,
arising from reconciliation and settlement
of account balances on the financial
statements.
One circle auditor has reported receipt of The concerned circles are being instructed to carry out the
debtor’s payment of that circle by the other reconciliation and take necessary action.
Circle, without issuing any ATC to this
Circle.
28 (i) As reported by auditors of certain circles, The concerned circles are being instructed to carry out
there are unquantifiable differences between the reconciliation and take necessary action to sort out the
the general ledger/ trial and accounting difference between the two sets of records.
records pertaining to loans and advances,
current assets and current liabilities. The
impact on the Ind AS financial statements,
if any, owing to the aforementioned non-
reconciliations is presently not ascertainable.
(ii) As detailed in Note No 13(a), the The Company has qualitatively disclosed differences
differences in General Ledger Balance and in the closing balance of trade receivables between the
Subsidiary ledger of Receivables is Rs 9,783 subsidiary ledger and the general ledger amounting to
lakhs (31 March 2017-1,678 lakhs). The INR 9,783 lakh in note 13(a) on a net basis as there is no
482
difference of balances is incorrectly stated specific requirement to disclose such amounts on a gross
since only the net differences has been basis.
stated. The gross differences are amounting
to Rs. 21,017.54 Lakhs (31 March 2017- The circles are being instructed to carry out the
Not Available). The impact on the Ind reconciliation and take necessary action to sort out the
AS financial statements, if any, owing to difference between two sets of records.
aforementioned non-reconciliations is
29 Circle Auditors have reported lack of suitable The concerned circles are being instructed to strictly
system for issue, recording, movement, adhere on the accounting policies and instructions issued
physical verification of Inventories/ Capital in this regard.
Work in Progress (Stores). The consequential
impact on the Ind AS financial statements, if
any, as a result of the same is presently not
ascertainable.
30 As reported by auditor of 4 circles, there Circles are being instructed to take appropriate action
are differences in the inventory records immediately.
between stores ledger and general ledger/
trial balance, the impact of the same is
currently not ascertainable.
31 As reported by auditor of 3 Circles, there Upon Implementation of ERP in all BSNL Circle,
has been non-adherence to the Company’s Inventories at the time of issue and closing balance are
policy of valuation of inventory on valued at weighted average method only.
weighted average method as stated in note
2.2(i) to the Consolidated Ind AS financial Perhaps Branch Auditors of concerned circles were not
statements. The impact of the adjustment, if explained properly regarding above aspect.
any, on inventory, consumption and loss for
the year is presently not ascertainable.
32 8 Circle auditors have reported non The concerned circles are being instructed to strictly
identification of Slow Moving, Non Moving, adhere on the accounting policies and instructions issued
Obsolete and Damaged items of Inventory. in this regard.
The impact of the adjustment, if any, on
inventory, consumption, Provisions and loss
for the year is presently not ascertainable.
Inter / Intra Circle Remittance Account
33 As detailed in note 43 to the Ind AS Continuous effort to reconcile the remittance items and
financial statements, the Inter-Circle/ Unit accounting of the same under relevant head are being
remittance balances amounting to Rs. 7,919 done by the circles which has resulted in minimize the
lakhs (Debit) (previous year Rs. 9,020 lakhs remittance items at Rs. 79.19 crore (Debit) at year ended
(Credit)) are yet to be reconciled. Pending on 31/03/2018. Circles are being further instructed to
such reconciliations, the possible cumulative settle the pending remittance items immediately and to
impact of the adjustments, if any, on assets minimize it in current year.
and liabilities and the current and prior
year(s) income and expenditure is presently
not ascertainable.
483
34 (i) As stated in note 39.3 to the financial BSNL is of the view that license fees are not payable on
statements, the Company’s license and interest on income tax refund since it is not in the nature
spectrum, fees payable to DoT for the year of interest on investment and demand raised by Income
ended 31 March 2018 amounts to Rs. Tax Department was paid due to statutory obligation and
1,74,338 lacs (previous year Rs. 2,31,086 to avoid hefty penalty.
Lacs) and is calculated on the Adjusted Gross
Revenue (‘AGR’) which is determined by The matter regarding exemption from payment of license
the management by excluding the interest fee on interest on income tax refund has been taken up
income on income-tax refund received with DOT.
during the year amounting to Rs 1,864 lacs
(Previous Year 36,531 lakhs). In our opinion,
the license fees is understated by Rs. 149.12
lakhs (Previous Year 3,054.50 lakhs) since
such interest income has not been included
in determination of AGR for computing the
license fees. Had the aforesaid expenditure
been accounted for, license and spectrum
fees and loss for the year ended 31 March
2018 and current liabilities as at that date
would have been higher by Rs. 149.12
lakhs (Previous Year 3,054.50 lakhs) and
the reserve and surplus as at that date would
have been lower by the same amount.
(ii) As reported by auditor of 1 circle,

interest received on security deposits is set
off directly from the bills and the interest
income is not ascertainable for recognizing
liability of license fees, auditor of 4 circle
has reported:

On verification, it has been noticed that Income from
ii) Profit from Construction Contracts, NOFN project / Profit from Construction Contracts /
iii) Liquidated Damages recovered from Liquidated Damages to the extent booked under the
contractors/ suppliers and reduced from Head “Revenue” has been considered for calculation and
relevant revenue expenditure, have not payment of license and spectrum fees.
been included for the calculation of License
and Spectrum Fees.
Further, auditors of 5 circles have reported The license fees are paid on revenue share basis. The value
that revenue from NLD/ ILD is not based on of pulse is not constant and may also be NIL for certain
actual usage of pulse and the license fees is tariff plans. Special tariff/validity vouchers introduce
based upon estimated basis. Consequential another variable due to which pulse does not remain right
impact on the Ind AS financial statements, if factor for measuring revenue for purpose of calculating
any, as a result of the same is presently not license fee. The license fee is now uniform across various
ascertainable. services; hence the effect is not material.
484

35 The provisions and the disclosures with Most of the circles had provided the details of litigation /
regard to matters under litigations have claims lodged or defended and contacts of the Company’s
been made based upon the management counsels to the auditors. At Corporate level also, the
estimates. Based upon the report of auditors abovementioned details were given to auditors. The
of 12 circles, sufficient and appropriate audit auditors had written letters to the Company’s counsels. It
evidence for examining and verifying the appears that due to professional reasons some counsels
quantum of contingent liabilities disclosed did not respond. It may also be noted that many of the
in note 50 to the Consolidated Ind AS legal cases are on either outstanding dues or on service/
financial statements has not been obtained. personnel matters involving issues of employee’s career
In the absence of the adequate details and progression, inter-se seniority etc. For the cases having
documents and pending the responses to major implications known up to finalization of accounts,
our confirmation requests in respect of the details and contingent liabilities have already been
the litigations, the impact of adjustments/ shown in note to accounts. Moreover, the concerned
disclosure, if any, on the Consolidated Ind circles are further advised to provide the adequate details
AS financial statements is presently not to auditors.
ascertainable.
36 As stated in Note No 49, certain claims BSNL and MTNL, both being PSU, are under the same
of MTNL on various accounts are under Ministry. The reconciliation and settlement of claims
reconciliation and settlement process. In between them is under process.
the absence of sufficient details and audit
evidences in respect of the amount of
such claims, the impact of adjustments/
disclosure, if any, on the Consolidated Ind
AS financial statements is presently not
ascertainable.
37 As reported by 13 circles, the circles have In most of the cases, claim of the BSNL has not been
not made provision for the disallowance rejected but withheld by USO Fund Administrator for
of subsidy claimed from Universal Service want of some technical aspects such as installation of solar
Obligation Fund (‘USOF’). The impact of power system/kiosks etc. Circles are taking up the matter
the adjustment, if any, in respect thereof on with concerned CCA regularly and based on the best
current assets and loss for the year is presently estimate, no provision has been considered necessary.
not ascertainable. The consequential impact
of adjustments, if any, on the Consolidated Management estimate has been reassessed at every
Ind AS financial statements is presently not reporting date and necessary adjustment done.
ascertainable.
Miscellaneous
38 As detailed in Note no 12, the company Due to substantive evidence regarding recovery of the
had pursuant to the Government of amount, the management has not considered necessary to
India, Ministry of Communications and record the diminution in value of investment in preference
IT, Department of Telecommunications shares of M/s ITI Ltd.
order, made an investment of Rs.
20,000lakhs[Rupees Twenty Thousand
Lakhs] in the 7% Redeemable cumulative
preference shares each of Rs. 100/– fully
485
paid up, in the financial year 2002–2003
in ITI Limited. The company explains that
ITI Limited will redeem preference shares
immediately on release of the financial
assistance by the Government of India to
ITI Limited as a part of revival package.
Such preference shares have a specified
(contractual) term and considering the
observable Level 2 inputs, in terms of Ind AS
113, Fair Value Measurement, including the
condition of such investment and significant
decrease in the volume or level of activity
for in relation to normal market activity, for
substantially the full term of such investment,
we report that the company has not provided
for the impairment loss on such investment
as the transaction price does not represent
its fair value. This accordingly has resulted
in understatement of net loss by Rs. 20,000
lakhs and overstatement of corresponding
investments by the same amount for the
financial year 2017-2018.
39 The Company has not complied in respect of
the following Ind AS notified under Section
133 of the Act, read with Rule 3 of the
Companies (Indian Accounting Standards)
Rules, 2015 (as amended).
i. As reported by auditors of 2 circles, the Adequate disclosure has been made at Corporate office
expenses, incomes, assets and liabilities are level.
not properly disclosed under the reportable
segments as per the Ind AS 108-“Operating
Segments”. In our opinion, the same does
not give true and fair disclosure of the
segment-wise operations of the Company as
required by the aforementioned Ind AS.
ii. The company has not carried out any The operations of BSNL are of such a nature where
techno-economic assessment during the assets are in use 24x7. As and when any asset is found
year ended 31 March 2018 and hence non-repairable or non-functional or obsolete, the same
identification of impairment loss and is decommissioned and necessary provision is being
provision thereof, if any, has not been made. created in books of accounts. This process is continuously
The same is not in accordance with the followed throughout the year in each circle of BSNL.
notified Ind AS 36 “Impairment of Assets”.
486
The consequential impact of adjustment, if

any, on the Consolidated Ind AS financial
statements is currently not ascertainable.
iii. The accounting for capital and revenue The Circles are being instructed to strictly adhere to the
grant in accordance with the notified Ind accounting policies and instructions issued in this regard.
AS 20 “Accounting for Government Grants
and Disclosure of Government Assistance”
is not followed consistently. In the absence
of specific details, the consequential impact
of adjustment, if any, on the Consolidated
ascertainable.
iv. The accounting policy as referred to As per the accounting policy as disclosed, claims for medical
in note 2.2(m)(iii) to the statements with facility received from the employees of BSNL(including
respect to the liability on account of post- retirees) up to the cutoff date of finalization of annual
retirement medical benefits of employees accounts, are treated as liability of the Company for the
including retired employees, a defined said financial year.
benefit plan, is recognized on actual basis
in respect of bills received by the company The post employment medical care extended to its retired
instead of recognizing the liability for the employees as per the present policy of BSNL is more like
same as the present value of the defined facilities ,which may be revised by the Management any
benefit obligation at the balance sheet date time , depending upon the relevant factors prevailing at
calculated on the basis of actuarial valuation that time.
in accordance with the notified Ind AS–19
“Employee Benefits”. The consequential Further vide Letter No. BSNL/Admn.I/14-15/09(pt.) dated
impact of adjustment, if any, owing to this 02/04/2014 option to choose CGHS facilities has been
non-compliance on the Consolidated Ind extended to retired employees of BSNL, who are in receipt
AS financial statements is presently not of Central Civil Pension.
ascertainable.
v. As reported by 5 circles, contract revenue The Circles are being instructed to strictly adhere to the
and contract costs pertaining to construction accounting instructions issued in this regard.
contracts have not been accounted for in
accordance with the notified Ind AS 11
“Construction Contracts”. In the absence of
of adjustment, if any, on the Consolidated
ascertainable.
vi. As detailed in Note No. 41(2) the The Circles are being instructed to strictly adhere to the
company has certain leasehold land, the disclosure requirements in this regard.
lease tenure of which in earlier year(s) and
is not renewed in current year. Pending
renewal of such lease, period and non-
availability of sufficient information about
487
the timeline by which it would be renewed,
the classification of such land made by the
company as finance lease is not in conformity
with Ind AS 17 “Leases”. 4 circle auditors
have reported that certain provisions
including disclosure requirements as per
Ind AS 17 “Leases”, have not been complied
with. In the absence of specific details, the
consequential impact of adjustments, if
statements are presently not ascertainable.
40 (i) The company has not identified and Ind AS 8 requires that material prior period errors shall be
restated the prior year financial statements corrected retrospectively.
with regard to prior period transaction
recorded in the current financial year in
violation of Ind AS-8 Prior Period items.
In the absence of specific details, the In view of the management, the prior period errors during
consequential impact of adjustments, if the current financial year are not material, hence no
any, on the Consolidated Ind AS financial restatement has been carried out.
(ii) As stated in the note 2.2(v) of the Adequate disclosures are already given in the books of
financial statements, individual transactions accounts of BSNL. The accounting policy of the company
of income/ expenditure exceeding Rs. 5 is made keeping in view the size of organization and
lacs, are considered for evaluation as prior- volume of high denomination transactions. It may also be
period items. The revenue and expenditure noted that many organization of such size in infrastructure
for the current year, inter alia, includes industry are following similar policies.
amount pertaining to prior period(s) as
reported by auditors of 7 circles. This is not
in accordance with the Ind AS 8 “Accounting
Policies, Changes in Accounting Estimates
and Errors”. In the absence of specific details,
the consequential impact of adjustments, if
41 As reported by 11 circles and detailed in The concerned circles are being instructed to take
note 28 to the Consolidated Ind AS financial necessary action.
statements, these circles have not identified
units covered under Micro, Small and
Medium Enterprises Development Act, 2006
2006 (‘MSMED Act, 2006) and hence

disclosures as required under the MSMED
Act, 2006 have not been given. The
consequential impact of the same on the
Consolidated Ind AS financial statement is
488
42 The disclosure requirements of the Schedule The circles are being instructed to strictly adhere to the
III, Division II of the Act have not been accounting instructions issued on the subject matter.
properly adhered to in the presentation and
disclosure of Consolidated Ind AS financial
statements of the Company in respect of
classification of assets/ liabilities into current
and non-current and secured and unsecured,
whether applicable; categorization of assets/
liabilities into appropriate captions; changes
in inventory; related party; capital and other
commitments and expenditure and earnings
in foreign currency.
43 36 Circle auditors have reported non- The concerned circles are being instructed to make
compliance of Goods and Service Tax necessary compliances with regard to deposition,
(GST) provisions with regard to charging, deduction, and reconciliation of GST and other statutory
deposition, availing Input Tax Credit, dues.
reconciliation of GST returns with books
of accounts, identification of creditors
remaining beyond 180 days from the date
of supply for reversal of Input Credit and
availing of Transitional Credit on CENVAT.
In the absence of the appropriate details, we
are presently unable to ascertain the impact,
if any, on the adjustment or disclosures to
be included in these Consolidated Ind AS
44 As reported by auditors of 13 circles, The concerned circles are being instructed to make
compliances with regard to deposition, necessary compliances with regard to deposition,
deduction, reconciliation of service tax, tax deduction, and reconciliation of service tax and other
deducted at source and value added tax statutory dues.
are pending to be made. In the absence of
specific details, we are unable to comment
on its consequential impact, if any, on the
Consolidated Ind AS financial statements.
45 As detailed in notes (a) and (b) of the Cash Noted.
Flow Statement, certain assumption have
been made for the purpose of preparation
of the Cash Flow Statement. In the absence
of the appropriate details, we are presently
unable to ascertain the impact, if any, on
the the adjustment/ disclosures in the Cash
Flow Statement.
489
47 The company has not complied with Ind AS Asset Retirement Obligation (ARO) is required to be
16 “Property, Plant and Equipment” by not discharged at the end of lease period by dismantling
attributing the dismantling costs to each part the complete Asset and not every part or component
of an item of Property, Plant and Equipment separately. Hence ARO has been created for complete
with the cost that is significant in relation Asset.
to the total cost of the item. Auditors of 4
circles have reported that value considered ARO is based on the technical evaluation carried out by
for Asset Retirement Obligation has been civil/electrical wing and is not required to be certified from
generated by internal department which is external agencies /valuers.
neither certified by any Certified Valuer,
nor calculated in appropriate method and
the same has been calculated on estimated
basis. The impact of the adjustment, if any,
in respect thereof on asset, depreciation
and loss for the year is presently not
ascertainable.
For and on behalf of the Board of Directors
Sd/-
(Anupam Shrivastava)
Chairman & Managing Director
Date:13-12-2018
490
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COMMENTS OF THE COMPTROLLER AND AUDITOR GENERAL OF INDIA UNDER
SECTION 143(6) (b) READ WITH SECTION 129 (4) OF THE COMPANIES ACT, 2013 ON THE
CONSOLIDATED FINANCIAL STATEMENTS OF BHARAT SANCHAR NIGAM LIMITED (BSNL) FOR
THE YEAR ENDED 31 MARCH 2018
The preparation of consolidated financial statements of BHARAT SANCHAR NIGAM LIMITED (BSNL)
for the year ended 31 March 2018 in accordance with the financial reporting framework prescribed
under the Companies Act, 2013(Act)is the responsibility of the management of the company. The
Statutory Auditor/auditors appointed by the Comptroller and Auditor General of India under section 139
(1) read with section 129 (4) of the Act is responsible for expressing opinion on the financial statements
under section 143 read with section 129 (4) of the Act based on independent audit in accordance with
the standards on auditing prescribed under section 143(10) of the Act. This is stated to have been done
by them vide their Audit Report dated 04.08.2018.
I, on behalf of the Comptroller and Auditor General of India, have conducted a supplementary audit
of the consolidated financial statements of BHARAT SANCHAR NIGAM LIMITED (BSNL) for the year
ended 31st March 2018 under section 143(6)(a) read with section 129(4) of the Act. We conducted a
supplementary audit of the financial statements of BHARAT SANCHAR NIGAM LIMITED (BSNL) but
did not conduct supplementary audit of the financial statements of BSNL TOWER CORPORATION
LIMITED for the year ended on that date. This supplementary audit has been carried out independently
without access to the working papers of the statutory auditors and is limited primarily to inquiries of
the Statutory Auditors and company personnel and a selective examination of some of the accounting
records.
On the basis of my supplementary audit nothing significant has come to my knowledge which would
give rise to any comment upon or supplement to Statutory Auditors’ Report under Section 143(6)(b) of
the Act.

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(laxhrk pkSjs)
egkfuns'kd ys•kijh{kk (Mkd o nwjlapkj)
Place : Delhi
Date : 26.12.2018
492
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73

BHARAT SANCHAR NIGAM LIMITED

BHARAT SANCHAR NIGAM LIMITED

This is the balance sheet referred to in our report of even date.

For the year ended For the year ended

Total equity Sd/-

BHARAT SANCHAR NIGAM LIMITED

For the year ended For the year ended

Particulars Non-current borrowings*

* Includes current maturities of non-current borrowings, refer Note 29.

BHARAT SANCHAR NIGAM LIMITED

a. Equity share capital

Particulars Note Amount

Reserves and surplus \

In terms of our report attached

b) Functional and presentation currency

Items Measurement basis

BHARAT SANCHAR NIGAM LIMITED

Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to

Note 2.2 (r) - leases: whether an arrangement contains a lease

Note 2.2 (r) - lease classification

Assumptions and estimation uncertainties

Note 2.2 (j) - measurement of useful lives of intangible assets

2.2. Significant accounting policies

a) Current and non-current classification

An asset is classified as current when it satisfies any of the following criteria:

• It is held primarily for the purpose of being traded;

• It is expected to be realised within 12 months after the reporting date; or

A liability is classified as current when it satisfies any of the following criteria:

Deferred tax assets are classified as non-current assets.

BHARAT SANCHAR NIGAM LIMITED

b) Foreign currency transactions and translations

c) Fair value measurement

• In the principal market for the asset or liability, or

value measurement is unobservable

Investment in subsidiary is measured at cost.

• Financial assets at amortised cost

BHARAT SANCHAR NIGAM LIMITED

ii. Financial liabilities

Recognition and initial measurement

Classification and subsequent measurement

Financial liabilities are classified as measured at amortised cost.

BHARAT SANCHAR NIGAM LIMITED

Subsequent expenditure are included in the asset’s carrying amount or recognised as a

Depreciation methods, estimated useful lives and residual value

Recognition and measurement

BHARAT SANCHAR NIGAM LIMITED

Costs associated with maintaining software programs are recognised as an expense as

l) Impairment of non-financial assets

BHARAT SANCHAR NIGAM LIMITED

iv. Other long term employment obligations

BHARAT SANCHAR NIGAM LIMITED

Remeasurements as a result of experience adjustments and changes in actuarial assumptions

Provisions are measured at management’s best estimate of the expenditure required to

In terms of the arrangement between Department of Telecommunications (‘DoT’) and the

The claims receivable on account of provision of infrastructure, operation and maintenance

Wherever there is uncertainty in realisation of income, such as claims on Government

BHARAT SANCHAR NIGAM LIMITED

If the outcome of a construction contract can be estimated reliably, contract revenue is