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Mahanagar Telephone Nigam Ltd Auditor Reports

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Oct 21, 2025|12:00:00 AM

Mahanagar Telephone Nigam Ltd Share Price Auditors Report

To

The Members of

Mahanagar Telephone Nigam Limited

Report on the Audit of the Standalone Financial Statements Qualified Opinion

We have audited the accompanying standalone financial statements of MAHANAGAR TELEPHONE NIGAM LIMITED ("the Company"), which comprise the Balance Sheet as at March 31, 2025, the Statement of Profit and Loss (including Other Comprehensive Loss), the Statement of Changes in Equity and the Statement of Cash Flows for the year then ended, and notes to financial statements, including a summary of the material accounting policies and other explanatory information (hereinafter referred to as "the standalone financial statements").

In our opinion and to the best of our information and according to the explanations given to us, except for the effects of the matters described in the Basis for Qualified Opinion Section of our report, the aforesaid standalone financial statements give the information required by the Companies Act, 2013 ("the Act") in the manner so required and give a true and fair view in conformity with the Indian Accounting Standards prescribed under Section 133 of the Act read with the Companies (Indian Accounting Standards) Rules, 2015, as amended, ("Ind-AS") and other accounting principles generally accepted in India, of the state of affairs of the Company as at March 31, 2025, and its loss (including other comprehensive income), changes in equity and its cash flows for the year ended on that date.

Basis for Qualified Opinion

We conducted our audit of the standalone financial statements in accordance with the Standards on Auditing specified under section 143(10) of the Act (SAs). Our responsibilities under those Standards are further described in the Auditors Responsibilities for the Audit of the standalone Financial Statements section of our report. We are independent of the Company in accordance with the Code of Ethics issued by the Institute of Chartered Accountants of India (ICAI) together with the ethical requirements that are relevant to our audit of the standalone financial statements under the provisions of the Act and the Rules made there under, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the ICAIs Code of Ethics. We

believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our qualified audit opinion on the standalone financial statements.

(i) The Net Worth of the Company has been fully eroded; The Company has incurred net cash loss during the year ended March 31st, 2025 as well as in the previous year and the current liabilities exceeded the current assets substantially. Further, during the year under review the Company has also defaulted in repayment of certain installments of term loan amounting to Rs. 1635.36 crores and interest on term loan amounting to Rs.213.60 crores.

Furthermore, Department of Public Enterprises vide its Office Memorandum No. DPE/5(1)/2014- Fin. (Part-IX-A) has classified the status of the Company as "Incipient Sick CPSE". Department of Telecommunication (DOT) has also confirmed the status vide its issue no. I/3000697/ 2017 through file no. 19-17/2017-SU-II.

These conditions cast significant doubt on ability of the company to continue as going concern. However, the standalone financial statement of the Company has been prepared on a going concern basis keeping in view that the Government of India is holding majority of the shareholding and the below-mentioned initiatives taken by the GOI.

Further, Union Cabinet has approved a revival plan involving employee cost reduction, administrative spectrum allotment for 4G, debt restructuring through sovereign-guaranteed bonds, asset monetization, and in-principal approval for merger with BSNL. Further, the Company had implemented the Voluntary Retirement Scheme in FY 2019-20 and also raised funds by issuing Bonds for Rs 6,500 crore in FY 2020-21 in line with the cabinet note.

The Union Cabinet further approved the issuance of Sovereign Guaranteed Bonds for MTNL for 10 years or more for an amount of Rs. 17,751 Crores, with waiver of guarantee fee.

During the year ended March 31st, 2023, the Company has raised Rs. 10,910.00 Crore and Rs. 6,660.99 Crores raised during year ended March 31st, 2024. (refer note no. 78 to the standalone financial statements).

Further, a Committee of Secretaries (COS) was constituted by Government of India for reviewing measures for further resolution, including debt restructuring, asset monetization and AGR dues.

Pursuant to the service agreement entered on 22-11-2024 with BSNL, the entire telecom operations of company in Delhi & Mumbai are being run by BSNL w.e.f. 01-01-2025. BSNL shall also take care of CAPEX & OPEX for the smooth running of operation and ensure EBIDTA neutral operation of the company.

In this regard, we have been informed that certain consumers in Delhi & Mumbai have been migrated to BSNL w.e.f. 01.01.2025 of which revenue has not been recognized by MTNL, amount of which is not ascertained and quantified. Consequently, there is a gap in revenue matching as the expenses of such revenue are borne by MTNL.

(ii) Dues to/Receivable from Bharat Sanchar Nigam Limited (BSNL):

a) The Company has outstanding receivables and payables with BSNL, with a net recoverable amount of Rs. 3,565.04 crores, which remains unreconciled and unconfirmed. Due to pending disputes and lack of confirmation, the recoverability and accuracy of these balances, their impact on the standalone financial results for the year ended March 31, 2025, cannot be determined.

b) The Company has not provided a provision for doubtful claims in respect of lapsed CENVAT Credit due to non-payment of service tax to service providers within the period of 180 days and due to transition provision under Goods and Service Tax (GST) where the aforesaid CENVAT credit amounting to Rs. 115.97 Crores has not been carried forward resulting in overstatement of Current Assets and understatement of loss to that extent.

(iii) The Company has net recoverable balances of Rs. 232.76 crores with the Department of Telecommunication (DOT), which remain unreconciled and unconfirmed. Accordingly, we are unable to comment on the accuracy of these balances or their impact on the standalone financial statements for the year ended March 31, 2025. (Also refer point no. (a) of note no. 70 to the standalone financial statements).

(iv) The Company has certain balances recoverable from its debtors on account of service tax amounting to Rs. 197.87 crores. The balance is recoverable from BSNL and various private parties which are subject to reconciliation and confirmation. Further identification of balance on account of BSNL and other parties are not available. In the absence of reconciliation and confirmation we are not in a position to comment on the correctness of the outstanding balance as above and resultant impact on standalone financial statements of the Company.

(v) Up to the financial year 2011-12, License Fee payable to the DOT on IUC charges to BSNL was worked out on an accrual basis as against the terms of License agreements requiring deduction for expenditure from the gross revenue to be allowed on actual payment basis. From the financial year 2012-13 onwards, the license fee payable to the DOT has been worked out strictly in terms of the license agreements. (Refer note no. 82 to the standalone financial statements).

(vi) Apart from impairment losses previously recognized for CDMA assets, no further impairment has been accounted for under Ind AS 36 during the year ended March 31, 2025. Due to uncertainties in achieving the Companys future projections, we are unable to determine the adequacy of impairment provisions and their impact on the current years loss, other equity, and the carrying value of cash-generating units. (Refer note no. 72 to the standalone financial statements).

(vii) The Company does not follow a system of obtaining confirmations and performing reconciliation of balances in respect of amount receivables from trade receivables, deposits with Government Departments and others, claim recoverable from operators and other

parties and amount payable to trade payables, claim payable to operators, and amount payable to other parties.

Accordingly, amounts receivable from and payable to the various parties are subject to confirmation and reconciliation. Pending such confirmation and reconciliation, the impact thereof on the standalone financial statements are not ascertainable and quantifiable. (Refer note no. 67 to the standalone financial statements).

(viii) The Company does not follow a system of reconciliation of difference between TDS balance as per book and as per TDS certificate and form 26AS under Income-tax Act as applicable. Pending such reconciliation the impact thereof if any on the standalone financial statement is not ascertainable and quantifiable

(ix) Unlinked credit of Rs. 77.29 Crore on account of receipts from subscribers against billing by the Company which could not be matched with corresponding receivables is appearing as liabilities in the balance sheet. To that extent, trade receivables and current liabilities are overstated. Pending reconciliations, the impact thereof on the standalone financial statements are not ascertainable and quantifiable. (Also refer note no. 66 to the standalone financial statements).

(x) Property, Plant and Equipment are generally capitalized on the basis of completion certificates issued by the engineering department or bills received by the finance department in respect of bought out capital items or inventory issued from the Stores. Due to delays in issuance of the completion certificates or receipt of the bills or receipt of inventory issue slips, there are cases where capitalization of the Property, Plant and Equipment gets deferred to next year. We are unable to comment whether the Capital Work-in-progress (CWIP) shown in books in the current year are actually part of CWIP or have already been commissioned. The resultant impact of the same on the standalone financial statements by way of depreciation and amount of Property, Plant and Equipment capitalized in the balance sheet cannot be ascertained and quantified.

(xi) The Department of Telecommunication (DOT) raised a demand of Rs. 3,313.15 crores in 2012-13 towards one-time charges for 2G spectrum for the period of license already lapsed and also for the spectrum given on trial basis. As the matter remains sub judice and the issue of partial spectrum surrender is pending, no liability has been recognized for the same and an amount of Rs.3,205.71 Crores has been disclosed as contingent liability till FY 2018-19, although no further demands have been raised by the DOT. Based on TDSATs directions and managements assessment, the potential liability is now estimated at a maximum of Rs. 455.15 crores and disclosed as a contingent liability.

In view of the above we are not in a position to comment on the correctness of the stand taken by the Company and the ultimate implications of the same on the standalone financial statement of the Company. (Also refer note no. 61 to the standalone financial statements).

(xii) The company has recovered Electricity Charges from the tenants, on which liability for Goods and Services Tax (GST) has not been considered, as the expenses recovered without

installing sub meter in some of the cases. The actual impact of the same on the standalone financial Statement for the year ended March 31, 2025, has not been ascertained and quantified.

(xiii) The TDS on provision for Expenses (Accrued Liability) has not been deducted under chapter XVII-B of Income Tax Act, 1961. The actual impact of the same on the standalone financial statement for the year ended March 31, 2025, has not been ascertained and quantified.

(xiv) The Company is making the provision for interest for late/non-payment to MSME vendors, but such interest is not being paid to the vendors. The interest provision is further subject to deduction of tax under section 194A of Income Tax Act, 1961.The actual impact of the same on the consolidated financial statements for the year ended March 31, 2025, has not been ascertained and quantified.

(xv) The organization has recognized accrued income of Rs. 145.84 crores from BSNL and other parties from the year 2017 to 2025; as billing could not be processed due to a lack of confirmation from the parties or because the agreements with them have expired. However, the organization has not accounted for the GST liability despite the services already being rendered. This results in non- compliance with Section 13 and Section 31 of the CGST Act, 2017.

(xvi) The Company currently recognizes Expected Credit Loss (ECL) only on Trade Receivables and not on other financial assets, specifically claim recoverable. This accounting treatment is not in compliance with Ind AS 109 - Financial Instruments, which mandates that ECL should be recognized on all financial assets measured at amortized cost or at fair value through other comprehensive income, including claim recoverable. The ECL model adopted by the Company requires a comprehensive review to ensure full compliance with Ind AS 109. However, the financial impact of provisioning required under the following balances has not been considered by the Company.

Particulars

Amount (In Cr.)

Recoverable from IUC operators

394.00

Recoverable from Others

442.83

Total

836.83

In the absence of information, the effect of which cant be quantified, we are unable to comment on the possible impact of the items stated in the point nos. (i), (ii)(a), (iii), (iv),(v), (vi), (vii),(viii),

(ix), (x), (xi) (xii), (xiii), (xiv) (xv) and (xvi) on the standalone financial statements of the Company for the year ended on March 31, 2025.

Emphasis of Matters

We draw attention to the following notes on the standalone financial statements being matters

pertaining to Mahanagar Telephone Nigam Limited requiring emphasis by us.

(i) Note - 9 of standalone financial statements, The share certificates of the subsidiary companies, namely Millennium Telecom Limited and Mahanagar Telephone Mauritius Limited, have not been provided to us for verification. Also, there is a discrepancy between the number of shares of United Telecom Limited (referred as Associates Company) as per the share certificates and the recorded in the books.

(ii) Note no. 29 of standalone financial statements regarding Loan given by Government of India amounting to Rs. 1,151.23 crore for payment of Interest on Sovereign bonds does not stipulate terms regarding interest thereon. Therefore, the company has not provided any interest as aforesaid.

(iii) Note no. 63 of standalone financial statements regarding pending dispute with the Income Tax Department before the Honble Courts regarding deduction claimed by the Company u/s 80IA of the Income Tax Act, 1961, The company has created the Contingency reserve of Rs. 243.22 Crores in this regard.

(iv) Note no. 64(b) Impact of accounting of claims and counter claims of MTNL with M/S M&N Publications Ltd., in a dispute over printing, publishing and supply of telephone directories for MTNL, will be given in the year when the ultimate collection/ payment of the same becomes reasonably certain.

(v) Note no. 15 & 19 Amount receivable from BSNL & Other Operators have been reflected as loans and other financial assets instead of bifurcating the same into trade receivables and other financial assets.

(vi) Note No.78 The service agreement entered on 22.11.2024 (superseding the earlier agreement dated 18.08.2021) with BSNL, the entire telecom operations of the company in Delhi and Mumbai shall be run by BSNL w.e.f 01.01.2025. BSNL shall also take care of CAPEX and OPEX for the smooth running of operations and ensure EBIDTA neutral operations of the company.

(vii) Note No.70(d) regarding the amount recoverable from Department of Telecommunications ("DOT") in respect of settlement of General Provident Fund (GPF) amounting to Rs. 6.52 crores of Combined Service Optees absorbed employees in MTNL and the matter is still under review with DOT and the full amount of GPF including interest thereon, is continued to be shown as recoverable from DOT and payable to GPF.

(viii) Note No.78 In pursuance of DoT letter No. F.No. 30-04/2019-PSU Affairs dt. October 29, 2019 and decision of Board of Directors of MTNL through circular regulation on November 4, 2019, the MTNL Voluntary Retirement Scheme has been introduced with effect from

November 4, 2019 under which 14,387 number of MTNL employees opted for VRS and the expenditure of ex-gratia on account of compensation to be borne by the DOT/Government of India through budgetary supports as per approval of cabinet. Balance amount payable to VRS opted employees as on March 31, 2025 is shown in the financial statements of the company as receivable from DOT and payable to VRS retirees, to reflect the actual position with reference to VRS scheme of 2019 of MTNL.

(ix) Note No. 82 The payables towards license fees and spectrum usage charges have been adjusted with excess pension payouts to Combined Pensioners Optees recoverable from DOT in respect of which matter is under consideration and correspondence in going on between the Company and DOT.

(x) Note No. 82 The License agreement between Company and DOT does not have any guidance on change in method of calculation of Adjusted Gross Revenue (AGR) due to migration to Ind-AS from I-GAAP. Provisioning and payment of liability in respect of license fees and spectrum usage charges payable to DOT has been done on the basis of Ind-AS based financial statements. The amount of difference in computation of Adjusted Gross Revenue (AGR) is under consideration of DOT.

(xi) Note No. 19(iv) Dues from the Operators being on account of revenue sharing agreements are not treated as debtors and consequently are not taken into account for making provision for doubtful debts.

(xii) Note 58(A) Certain immovable properties transferred from Department of Telecommunications (DoT) to MTNL in earlier years, which were taken on lease by DoT prior to incorporation of MTNL. On March 30, 1987, both DoT and MTNL entered into a sale deed for transfer of the several movable and immovable assets from DoT to MTNL. The said transfer includes the leasehold lands and buildings which are now in possession of MTNL since the execution of the sale deed. These leasehold immovable properties have not been mutated or renewed in the name of MTNL till date. However, considering MTNL is a Public Sector Undertaking (PSU), the sale deed not registered at that time and executed by DOT is deemed to have been registered for the purpose of transfer of all such assets in terms of section 90 of the Indian registration act, 1908 as considered by the MTNL and stamp duty payable, if any, will be borne and paid by Government as and when any such occasion arises as per sale deed. Accordingly, these leasehold immovable properties have been classified by the management under the heading Right of Use assets.

(xiii) Note No. 60 In certain cases of freehold and leasehold land the company is having title deeds which are in the name of the Company but the value of which are not lying in the books of accounts of the Company.

(xiv) Note No. 67 Regarding amount of receivable and payables (Including NLD/ILD Roaming operators) are subject to confirmation & reconciliation. The recoverable and payable from operators are under constant review and regular efforts are being taken for reconciliation

and recovery of old outstanding dues. Adjustment if any may be required will be done once the reconciliation process is done.

(xv) Note No. 80 Regarding amount payable to GPF trust is currently in the process of reconciling its liabilities to determine the provident fund payables to employees. The adjustment if any resulting from this re-computation/ reconciliation will be recognized once the reconciliation process is completed.

(xvi) Note No. 24 regarding defaults in bank loan repayment amounting to Rs.1848.96 crores, where such bank accounts have been declared as NPA by the respective banks except one bank. The company has initiated with the lender banks for possible resolution and settlement of such items.

(xvii) Provisional income being booked under Revenue from Operations due to non-functioning of the billing software in some areas in the Delhi Unit and Mumbai Unit.

(xviii) In accordance with the requirement of section 149 of the Companies Act, the company does not have requisite number of independent directors and women directors.

Our opinion is not modified in respect of the aforesaid matters.

Material uncertainty related to going concern

We draw attention to Note 78 of the financial statements, which highlights that the Company has incurred net losses and cash losses in the current and previous years, its net worth is fully eroded, and current liabilities significantly exceed current assets. These conditions indicate a material uncertainty about the Companys ability to continue as a going concern.

However, the Union Cabinet has approved a revival plan for BSNL and MTNL, including employee cost reduction, 4G spectrum allotment, debt restructuring through sovereign guarantee bonds, asset monetization, and an in-principle approval for their merger. The Company implemented a Voluntary Retirement Scheme in FY 2019-20 and raised Rs. 6,500 Crore through bonds in FY 2020-21.

Further, the Cabinet approved raising Rs. 17,571 Crore via sovereign guaranteed bonds to replace high- cost debt. A Committee of Secretaries (CoS) is also evaluating measures for MTNLs financial sustainability and merger with BSNL.

In line with CoS directions, the Board has approved a 10-year Service Level Agreement with BSNL (effective from 01.01.2025), under which BSNL will fully manage MTNLs telecom operations.

These conditions cast significant doubt on ability of the company to continue as going concern. However, the standalone financial statement of the company has been prepared on a going concern basis keeping in view of the facts stated in Basis of Qualified opinion para of the report.

Our opinion is not modified in respect of this matter.

Key Audit Matters

Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the standalone financial statements of the current period. These matters were addressed in the context of our audit of the standalone financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.

In addition to the matters described in the basis of qualified opinion section, we have determined the matters described below to be the key audit matters to be communicated in our report

Sr

Key Audit Matter No.

How our audit Addressed the key Audit Matter

1 Revenue Recognition:

Our audit approach included control testing and substantive procedures covering in particular:

There is an inherent risk around the accuracy of revenue recorded given the complexity of systems and the impact of changing pricing models to revenue recognition (tariff structures, incentive arrangements, discounts etc.)

• Testing the IT environment (i.e., IT general controls) in which billing, rating and other relevant support systems reside, including the change control procedures in place around systems that bill material revenue streams.

Refer Notes no. 57 to the standalone financial statements.

• Testing the end-to-end reconciliation from business support systems to billing and rating systems to the general ledger. This testing includes validating material journals processed between the billing system and general ledger.
• Performing tests on the accuracy of customer bill generation on sample basis and testing of a sample of the credits and discounts applied to customer bills: and testing receipts for a sample of customers back to customer invoice.

2 Uncertain Taxation Matters:

We have obtained details of completed tax assessments and demands up to March 31, 2025, from the management.

The Company has material uncertain tax matters under dispute which involves significant judgment to determine the possible outcome of these disputes.

Refer Note no. 50 and 63 to the standalone financial statements.

We assessed the managements underlying assumptions in estimating the tax provisions and the possible outcome of the disputes.

We also considered legal precedence and other rulings, including in the Companys own cases, in evaluating managements position on these uncertain tax positions.

Sr

Key Audit Matter No.

How our audit Addressed the key Audit Matter

3 Contingent liabilities

There are numbers of litigations pending before various forums against the Company and the managements judgement is required for estimating the amount to be disclosed as contingent liability.

We have obtained an understanding of the Companys internal instructions and procedures in respect of estimation and disclosure of contingent liabilities and adopted the following audit procedures.

We identified this as a key aud it matter because the estimates on which these amounts are based involve a significant degree of management judgement in interpreting the cases and it may be subject to management bias.

• understood and tested the design andoperating effectiveness of controls as established by the management for obtaining all relevant information for pending litigation cases.

• discussed with the management any material developments and latest status of legal matters.

(Refer to Note no. 50 of standalone Financial statements.)

• read various correspondences and related documents pertaining to litigation cases and relevant external legal opinions obtained by the management and performed substantive procedures on calculations supporting the disclosures of contingent liabilities.
• examined managements judgements and assessment whether provisions are required.
• considered the management assessments of those matters that are not disclosed as the probability of material outflow is considered to be remote.
• reviewed the adequacy and completeness of disclosures.

4. The Company has significant receivables and payables balances, including long-outstanding balances government of India, Department of Telecom and other private telecom operators etc. The assessment of the recoverability of receivables and completeness of payables is considered a key audit matter due to:

Our audit procedures included, among others:

• Understanding the Companys processes and internal controls over the recording, monitoring, and reconciliation of receivables and payables.

• Performing substantive testing on a sample of receivables and payables by examining underlying invoices, contracts, and correspondences.

• The materiality of these balances to the financial statements.

 

Sr. No. Key Audit Matter

How our audit Addressed the key Audit Matter

• Significant judgment involved in assessing the recoverability of receivables, especially those pending resolution due to contractual disputes, reconciliation issues, or administrative delays? common in dealings with government entities. • Complexity in assessing the aging, confirmation status, and settlement patterns of receivables and payables, particularly where balances are netted off under bilateral arrangements or interconnect agreements. • Application of Ind AS 109 Financial Instruments in determining Expected Credit Losses (ECL) requires management estimates around default risk, historical loss trends, and macroeconomic conditions.

• Reviewing ageing reports and assessing subsequent receipts and settlements to evaluate recoverability and completeness.

• Evaluating the methodology used by management in determining Expected Credit Loss (ECL) under Ind AS 109, including assumptions regarding risk of default, segmentation of customers, and historical loss experience.

• Assessing managements estimates for provisioning, particularly for receivables from government departments and inter- operator settlements.

• Preforming test regarding any claims lodged by any of the party and the disclosure thereof in the financial statement.

• Reviewing disclosures made in the financial statements to ensure compliance with Ind AS requirements.

Information Other than the Standalone Financial Statements and Auditors Report Thereon

The Companys Board of Directors are responsible for the preparation of the other information. The other information comprises the information included in the Boards Report including Annexures to Boards report, Management Discussion and analysis and report on Corporate Governance but does not include the standalone financial statements and our auditors report there on. The above- mentioned other information is expected to be made available to us after the date of this auditors report.

Our opinion on the standalone financial statements does not cover the other information and we do not express any form of assurance conclusion thereon.

In connection with our audit of the standalone financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the standalone financial statements or our knowledge obtained during the course of our audit or otherwise appears to be materially misstated.

When we read the other information, if we conclude that there is material misstatement therein, we are required to communicate the matter to those charged with governance.

Responsibilities of the Management and those charged with governance for the Standalone Financial Statements

The Companys Board of Directors is responsible for the matters stated in Section 134(5) of the Act with respect to the preparation of these standalone financial statements that give a true and fair view of the financial position, financial performance, changes in equity and cash flows of the Company in accordance with the accounting principles generally accepted in India, including the Accounting Standards specified 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 of 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 financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.

In preparing the standalone financial statements, management is responsible for assessing the Companys ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.

Those Board of Directors are also responsible for overseeing the Companys financial reporting process.

Auditors Responsibilities for the Audit of the Standalone Financial Statements

Our objectives are to obtain reasonable assurance about whether the standalone financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with SAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these standalone financial statements.

As part of an audit in accordance with SAs, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:

• Identify and assess the risks of material misstatement of the standalone financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion.

• The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

• Obtain an understanding of internal financial controls relevant to the audit in order to design audit procedures that are appropriate in the circumstances. Under section 143(3) (i) of the Act, we are also responsible for expressing our opinion on whether the Company has an adequate internal financial controls system with reference to standalone financial statements in place and the operating effectiveness of such controls.

• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.

• Conclude on the appropriateness of managements use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Companys ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditors report to the related disclosures in the standalone financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditors report. However, future events or conditions may cause the Company to cease to continue as a going concern.

• Evaluate the overall presentation, structure and content of the standalone financial statements, including the disclosures, and whether the standalone financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

Materiality is the magnitude of misstatements in the standalone financial statements that, individually or in aggregate, makes it probable that the economic decisions of a reasonably knowledgeable user of the financial statements may be influenced. We consider quantitative materiality and qualitative factors in (i) planning the scope of our audit work and in evaluating the results of our work; and (ii) to evaluate the effect of any identified misstatements in the financial statements.

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.

From the matters communicated with those Charged with governance, we determine those matters that were of most significance in the audit of the standalone financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditors report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.

Other Matters:

The comparative financial statements for the year ended 31st March 2024 included in these Standalone financial statements have been audited by B.M. Chatrath & Co. LLP Chartered Accountants jointly with D. K. Chhajer & Co. then joint statutory auditors of the company, whose audit report dated May 29, 2024 expressed qualified opinion on the comparative financial statements.

Our opinion is not modified in respect of this matter Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditors Report) Order, 2020 ("the Order"), issued by the Central Government of India in term of sub section (11) of section 143 of the Act, we give in the Annexure A a statement on the matters specified in paragraph 3 and 4 of the Order, to the extent applicable.

2. As required by section 143(5) of the Act, we give in "Annexure B" a statement on the matters specified by the Comptroller and Auditor General of India for the Company.

3. As per the Notification No. GSR 463(E) dated 5th June 2015 issued by the Ministry of Corporate Affairs, Government of India, Section 197 is not applicable to the Government Companies. Accordingly, reporting in accordance with the requirement of provisions of section 197(16) of the Act is not applicable on the Company.

4. As required by Section 143(3) of the Act, based on our audit we report that:

a) We have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit except for the matters described in the Basis for Qualified Opinion Paragraph above.

b) Except for the possible effects of the matters described in the Basis for Qualified Opinion Paragraph above, in our 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.

c) The Balance Sheet, the Statement of Profit and Loss including Other Comprehensive Income, Statement of Changes in Equity and the Statement of Cash Flows dealt with by this Report are in agreement with the relevant books of account.

d) In our opinion, except for the matters described in the Basis of Qualified Opinion Paragraph above, the aforesaid standalone financial statements comply with the Ind AS specified under Section 133 of the Act, read with relevant rules issued thereunder.

e) Being the Government Company pursuant to the Notification No. GSR 463(E) dated 5 June 2015 issued by the Ministry of Corporate Affairs, Government of India, provisions of sub- section (2) of section 164 of the Act, are not applicable to the Company.

f) The matters described in the Basis of Qualified Opinion Paragraph above, in our opinion, may have an adverse effect on the functioning of the Company.

g) With respect to the adequacy of the internal financial controls with reference to standalone financial statements of the Company and the operating effectiveness of such controls, refer to our separate Report in "Annexure C" wherein we have expressed a modified opinion.

h) The qualification relating to the maintenance of accounts and other matter connected there with are as stated in the Basis of Qualified Opinion Paragraph above.

i) With respect to the other matters to be included in the Auditors Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, as amended in our opinion and to the best of our information and according to the explanations given to us:

i. The Company has disclosed the impact of pending litigations on its financial position in its standalone financial statements. (Refer to note no. 50 of the Standalone financial statements).

ii. The Company has made provision, as required under the applicable law or accounting standards, for material foreseeable losses, if any, on long-term contracts including derivative contracts;

iii. There is no amount which is required to be transferred to Investor Education and Protection Fund by the Company. Accordingly, reporting under this clause is not applicable.

iv. (a) The Management has represented that, to the best of its knowledge and

belief, no funds (which are material either individually or in the aggregate) have been advanced or loaned or invested (either from borrowed funds or share premium or any other sources or kind of funds) by the Company to or in any other person or entity, including foreign entity ("Intermediaries"), with the understanding, whether recorded in writing or otherwise, that the Intermediary shall, whether, directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Company ("Ultimate Beneficiaries") or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries;

(b) The Management has represented, that, to the best of its knowledge and belief, no funds (which are material either individually or in the aggregate) have been received by the Company from any person or entity, including foreign entity ("Funding Parties"), with the understanding, whether recorded in writing or otherwise, that the Company shall directly or indirectly, lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party ("Ultimate Beneficiaries") or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

(c) Based on the audit procedures performed as considered reasonable and appropriate in the circumstances, nothing has come to our notice that has caused us to believe that the representations under sub-clause (i) and (ii) of Rule 11(e), as provided under (a) and (b) above, contain any material misstatement.

v. The company has not declared or paid any dividend during the year. Accordingly, the provision of Section 123 of the Act is not applicable.

vi. Based on our examination, which included test checks, the Company has used accounting softwares for maintaining its books of account for the financial year ended March 31, 2025 which has a feature of recording audit trail (Edit log) facility and the same has operated throughout the year for all relevant transactions recorded in the softwares. Further, as represented by the management the edit log is maintained through a "Database trigger" maintained in the system. The database trigger can only be altered by super user/DBA. However, as confirmed by the management there are no instance of the audit trail feature being tampered with during the year ended March 31, 2025.

Additionally, the audit trail has been preserved by the company in accordance with the statutory requirements for record retention.

For O P Bagla & Co LLP

For S.L. Chhajed & Co. LLP

Chartered Accountants

Chartered Accountants

Firm Registration No.: 00018N/N500091

Firm Registration No.: 000709C/C400277

 

CA Nitin Jain

CA Vijit Baidmutha

Partner

Partner

Membership No.: 510841

Membership No.: 406044

UDIN: 25510841BMNYFH6092

UDIN: 25406044BMICPI7072

 

Place: Delhi

Place: Delhi

Date: 28-05-2025

Date: 28-05-2025

ANNEXURE-A TO THE INDEPENDENT AUDITORS REPORT

Referred to in our Independent Auditors Report of even date to the members of Mahanagar Telephone Nigam Limited on the Standalone Financial Statements for the year ended 31st March, 2025.

(i) (a) (A) Delhi unit (Both basic and Wireless) has maintained records of Property,

Plant and Equipment. However, identification numbers, cost of acquisition and location of the Property, Plant and Equipment are not mentioned.

In case of Mumbai units (both basic and WS), Property, Plant and Equipment Registers have been maintained w.e.f. 01.04.2002. However, location of property, Plant and Equipment has not been mentioned in the Property, Plant and Equipment Registers.

The Corporate office has maintained Property, Plant and Equipment; however, identification numbers and location of Property, Plant and Equipment are not mentioned.

(B) The Company has maintained proper records showing particulars of intangible assets, however sufficient description of intangible assets, identification numbers and location of intangible assets are not maintained.

(b) As per the policy of the Company, Property, Plant and Equipment are required to be physically verified by the management on rotation basis, once in three years, which in our opinion is reasonable and adequate in relation to the size of the Company and the nature of its business. Physical verification of Property, Plant and Equipment was conducted by the management during the year ended on March 31, 2025, except corporate office and RF feeder cables in Delhi Wireless unit. As per Management, it is not practically feasible to verify/measure the length of RF feeder cables in wireless as the cables are underground. According to the information and explanation given to us, no material discrepancies were noticed in respect of Asset verified by the management. The accuracy, reliability and completeness of the fixed assets verification procedure could not be verified by us.

(c) According to the information and explanations given to us and on the basis of our examination of the records of the Company, the title deeds of immovable properties (other than immovable properties where the Company is the lessee and the leases agreements are duly executed in favor of the lessee) disclosed in the standalone financial statements are held in the name of the Company, except for the following which are not held in the name of the Company:

In respect of Delhi Units:

The value of the immovable properties as per title deeds are subject to reconciliation with books of accounts.

Description of property

Type of Propertie s Gross Carryin g value Held in name of Whether promoter, director or their relative or employee

Period heldindicate range, where appropriate

Reason for not being held in name of company*

Remarks

CGO Complex Lodhi Road

Leasehold 0.10 DOT Yes L&DO

Kidwai Bhawan (Janpath)

Leasehold - DOT Yes L&DO

Minto Road JLN Marg

Leasehold 0.12 DOT Yes L&DO

Idgah

Leasehold 0.01 DOT Yes L&DO

Lothian Road

Leasehold 0.08 DOT Yes (PWD)

Delhi

Admn.

Bhikaiji Cama Place (R. K. Puram)

Leasehold 0.66 DOT Yes DDA

Chankya Puri

Leasehold 0.00 DOT Yes L&DO

Hauz Khas

Leasehold 0.04 DOT Yes DDA

Nehru Place

Leasehold 0.18 DOT Yes DDA

Okhla

Leasehold 0.07 DOT Yes DDA

Laxmi Nagar/ Shahdara South

Leasehold 0.12 DOT Yes DDA

Shahdara/ Adjoining 21 Exch

Leasehold 0.04 DOT Yes DUSIB

Keshav Puram

Leasehold 0.02 DOT Yes DDA

Badli

Leasehold 0.01 DOT Yes Directorate of Industries (Delhi Administration)

Description of property

Type of Propertie s Gross Carryin g value Held in name of Whether promoter, director or their relative or employee Period heldindicate range, where appropriate

Reason for not being held in name of company*

Remarks

Rohini Sect 3 Pocket 31

Leasehold 0.15 DOT Yes

DDA

Rohini Sect 3 Pocket 4

Leasehold 0.15 DOT Yes

DDA

Rohini Sect. 5 Pocket 4

Leasehold 0.15 DOT Yes

DDA

Rohini Sect. 5 Pocket 10

Leasehold 0.15 DOT Yes

DDA

Rohini Sect. 3

Leasehold 0.15 DOT Yes

DDA

Rohini Sect. 6

Leasehold 0.18 DOT Yes

DDA

Rohini Sect. 9

Leasehold 0.15 DOT Yes

DDA

Paschim Vihar G-17 TE

Leasehold 1.33 DOT Yes

DDA

Hari Nagar/ Mayapuri

Leasehold 3.87 DOT Yes

DDA

Rajouri Garden

Leasehold 0.03 DOT Yes

MCD

Janakpuri

Leasehold 0.07 DOT Yes

DDA

Pankha Road Plot I

Leasehold 0.30 DOT Yes

DDA

Pankha Road Plot 2

Leasehold 0.10 DOT Yes

DDA

Pankha Road Plot 3

Leasehold - DOT Yes

DDA

Shadipur

Leasehold 0.19 DOT Yes

DUSIB

In respect to the following properties no title deeds were made available to us:

Description of property

Type of Properties Gross Carryin g value Held

in

name

of

Whether promoter, director or their relative or employee Period held - indicate range, where appropriate Reason for not being held in name of company* Remarks

Jor Bagh

Leasehold - DOT Yes Documents not available

Delhi Gate

Leasehold - DOT Yes Documents not available

Karol Bagh

Leasehold - DOT Yes Documents not available

Tis Hazari

Leasehold - DOT Yes Documents not available

Shakti Nagar

Leasehold - DOT Yes Documents not available

Delhi Cantt

Leasehold - DOT Yes Documents not available

Eastern Court

Leasehold - DOT Yes Documents not available

Shahdara

Leasehold - DOT Yes Documents not available

Tehkhand

Leasehold - DOT Yes Documents not available

According to the information and explanations given by the company in Note No. 58A(1) and 58A(3) of the notes to accounts of the standalone financial statement to us and on the basis of our examination of the records of the Company, we express no opinion on the validity of the title of the company of immovable properties disclosed in the financial statements and held as Property, Plant and Equipment or as investment property.

Further, according to the information and explanations given to us, in Delhi one leasehold property has been encroached.

In respect of Mumbai Units: -

The value of the immovable properties as per title deeds are subject to reconciliation with books of accounts.

Description of Property

Type of properties Gross carrying value

(Amount in Crores)

Held in the name of Whether promoter, director or their relative or employee

Period held - Range (In

Years)

Reason for not being held in name of company/ Remarks

Plot No. 11.

Near Lokha- ndwala,

Complex, Akurli Road, Kandivali (E), Mumbai-400 101

Leasehold

Land

0.64 MHADA No

More than 20

years

MHADA Allotment letter is available on records for allotment of land. No sale/ lease deed is available for verification.

Plot -1, MIDC, Taloja, Navi Mumbai-400 218

Leasehold

Land

0.02 President of India Yes

More than 30

years

Lease Agreement executed by MTNL on behalf of President of India is available on record.

Panvel Tel Exchange, Plot No.- 229B, Panvel, Mumbai

Leasehold

Land

Nil

President of India (P&T)

Yes

More than 30

years

Permission letter from Panvel Municipal Corporation is available on records.

Lease agreement executed between president of india and City and Industrial development corporation of Maharashtra Limited is also available in records.

Description of Property

Type of properties Gross carrying value

(Amount in Crores)

Held in the name of

Whether promoter, director or their relative or employee

Period held - Range (In

Years)

Reason for not being held in name of company/ Remarks

Juhu Danda Complex, Santa Cruz - West, Mumbai

Freehold

Land

Nil GOI/P&T

Yes

More than 20

years

Letter of DOT is available on records for use of plot in favour of MTNL. No sale deed is available for verification.

Bandra

Reclamation,

Oppo- site

Leelavati

Hospital,

Bandra(W),

Mumbai-400 050

Freehold

Building

1.10 Bombay Housing and Area Developme nt Board

No

More than 30

years

MHADA Allotment letter is available on records for allotment. No sale deed is available for verification.

Magathane,

Borivali(E),

HIG Colony,

Magathane,

Borivali(E),

Mumbai-400

066

Freehold

Building

0.43 Bombay Housing and Area Developme nt Board

No

More than 30

years

MHADA Allotment letter is available on records for allotment. No sale deed is available for verification

Andheri Tele Exch Bldg OPP. Lalubhai Park by 58

Freehold 0.01 Post and

telegraph

department

Details not available

Andheri Old Tele Exch Bldg CSNO 684 BY 58

Freehold 0.00 President of india

Details not available

Tele Bhavan Colaba

Leasehold 0.07 President of india

Details not available

Compensatio n on Cumbala Hill

Freehold 0.58 President of india (Bombay telephone)

Details not available

Curry Road CSNO 79(PT) and 82

Freehold 0.39 President of India

Details not available

Description of Property

Type of properties Gross carrying value

(Amount in Crores)

Held in the name of Whether promoter, director or their relative or employee

Period held - Range (In

Years)

Reason for not being held in name of company/ Remarks

Fountain Tele Bldg CSNO 708

Freehold 0.06 Central Post and telegrah

Details not available

Gamdevi Tele Exchange bldg. by 7

Freehold 0.05 It is in the name of President of India

Details not available

Malbar Hill Tele Exch AG Bell Marg

Freehold 0.33 President of India

Details not available

Mandvi Tele Exch MA Road by BY 7 Plot no. to 12

Freehold 0.11 President of India

Details not available

Matunga Tele Exch Bldg Plot no. 143 Ambedkar Marg by14

Leasehold 0.01 it is in the name of President of INDIA it is under mutation

Details not available

Mazgaon Tele Bldg Seth Moti Shah Lane by 10

Freehold 0.05 President of India

Details not available

Parel tele Complex CSNO 85(PT)

Freehold 0.51 President of India

Details not available

Powai Tele Exch Bldg S.no 103/B1 Vikroli by 83

Freehold 0.00 Governmen t of India

Details not available

PBD Tele Bldg CSNO 90,91 and 105 BY 28

Freehold 0.13 POI Incharge Bombay telephone exchange under mutation

Details not available

SPK Tele Exchange Bldg Plot No. 709 TPS IV/B by 28

Freehold 0.02 President of India

Details not available

Description of Property

Type of properties Gross carrying value

(Amount in Crores)

Held in the name of

Whether promoter, director or their relative or employee

Period held - Range (In

Years)

Reason for not being held in name of company/ Remarks

Sion Tele Exch Bldg Plot No. 105A and 105 by 22

Freehold 0.16 President of India

Details not available

ST. George

Hospital,

PLNO.2

Leasehold 0.40 President of India

Details not available

Ville Parle Tele Exch Bld Fp No. 330,308,309,3 10 by 57 All Land Cost for land at Vile Parle for Staff Quarters 76

Freehold 0.14 Bombay telephone post & telegraph limited

Details not available

Wadala Tele Exch. Plot No 40(PT) CS No 236 & 41(PT) By 14

Freehold 0.14 President of India

Details not available

Wadby Road HS Marg Bombay 1 Possession 30

Freehold 0.01 Central post and telegraph

Details not available

Worli Tele Exch Bldg CSNO 469, S.No 1624 by 18

Freehold 0.06 President of India (in- charge post master general)

Details not available

Byculla

Leasehold - President of India

Details not available

Cooperage

Leasehold - President of India

Details not available

South Colaba

Leasehold - President of India

Details not available

MTNL

Description of Property

Type of properties Gross carrying value

(Amount in Crores)

Held in the name of Whether promoter, director or their relative or employee Period held - Range (In

Years)

Reason for not being held in name of company/ Remarks

Naigaon

Freehold - Bombay

Telephone

Details not available

Colaba

Leasehold President of India, Bombay telephone

Details not available

Prabhadevi

Freehold - Bombay

Telephone

Details not available

Vashi Sec 15A

Leasehold - Bombay

Telephone

Details not available

Leasehold 0.20 Details not available

Details not available

In respect to the following properties no title deeds were made available to us:

Description of Property

Type of Property Gross Carrying Value (Amount in Crores) Remarks

Tilak Nagar, Tribhuvan CHS, Sahakar Nagar, Chembur, Mumbai

Leasehold 0.20 No title deeds available

CBD Belapur, Inspection Qtrs

Freehold - No title deeds available

Vashi, Sector-15/16

Leasehold - No title deeds available

Furthermore, in respect of 9 cases of freehold and leasehold land have been encroached by the various persons in respect of which matter is either pending in court or perusing with the various authorities for clearing the encroachment. (Refer Note 58 A (3))

Details of Property

Type of Property Whether title deed is lost/disputed? Gross Value (Amount in Crores)

Purchase Cost Land from MHADA

Leasehold Court case No. FA No.156/2005 0.64

Land of Bengal Chemical

Freehold Court Case No. (LAR/37/1980) 0.62

Acquisition of land at village Eskar 1

Freehold No 0.46

Ghatkopar Tele Exch. S. No 45/2(PT) BY 86

Freehold No 0.01

MTNL

Details of Property

Type of Property Whether title deed is lost/disputed? Gross Value (Amount in Crores)

Kalbadevi Tele Exch Csno 1572(PT), 1,2,3 (PT), 4/1572 TO 1576

Freehold No 0.95

Aquisition of land comprised in C.S.no.2/116 of Lower Parel: Manjrekar Plot

Freehold No 0.21

St. George Hospital, Pl no. 2

Leasehold No 0.40

Aquisition of Land at Malad (W) Vasari Hill Plot

Freehold No 0.04

Vile Parle Tele Exch Bldg No. 330,308,309,310 by 57 & All. Land Cost for Land at Vile Parle for Staff Quarters 76

Freehold Court Case No. S.C. 5166/2005) 0.14

According to the information and explanations given by the company in Note No. 58 A(1) of the notes to accounts of the standalone financial statements to us and on the basis of our examination of the records of the Company, we do not express opinion on the validity of the title of the company of said immovable properties disclosed in the financial statements and held as Property, Plant and Equipment or as investment property.

(d) According to the information and explanations given to us and on the basis of our examination of the records of the Company, the Company has not revalued any of its Property, Plant and Equipment (including right of use assets) or intangible assets or both during the year.

(e) According to the information and explanations given to us and on the basis of our examination of the records of the Company, no proceedings have been initiated during the year or are pending against the Company as at March 31, 2025 for holding any benami property under the Benami Transactions (Prohibition) Act, 1988 (as amended in 2016) and rules made thereunder.

(ii) (a) In our opinion, physical verification of inventory has been conducted by the

management at reasonable intervals.

In our opinion, the frequency of such verification is reasonable, and procedures and coverage as followed by management needs to be strengthened. No discrepancies were noticed on verification between the physical stocks and the book records that were 10% or more in the aggregate for each class of inventory.

(a) According to the information and explanations given to us and on the basis of our examination of the records of the Company, the Company has been sanctioned working capital limits in excess of five crore rupees, in aggregate, from banks which is not on the basis of security of current assets. Thus, clause 3(ii) of the Order is not applicable to the company.

(iii) According to the information and explanations given to us and on the basis of our examination of the records of the Company, the Company has not made any investments, provided guarantee or security or granted any advances in the nature of loans, secured or unsecured, to companies, firms, limited liability partnerships or any other parties during the year. Thus, clause 3(iii) (a) to (f) of the Order is not applicable to the company:

(iv) According to the information and explanations given to us and on the basis of our examination of the records, the Company has not given any loans, or provided any guarantee or security as specified under Section 185 of the Companies Act, 2013 and the Company has not provided any guarantee or security as specified under Section 186 of the Companies Act, 2013. Thus, clause 3(iv) of the Order is not applicable to the company.

(v) The Company has not accepted any deposits from the public within the meaning of Section 73 to Section 76 or any other relevant provisions of the Companies Act, 2013 or rules framed there under. Accordingly, clause 3(v) of the Order is not applicable to the company.

(vi) As per the information and explanation given to us, Company is required to maintain the cost records under Section 148(1) of the Companies Act 2013. As explained the Company has not yet maintained the required cost records for the year ended March 31, 2025.

(vii) a) According to the information and explanations given to us and on the basis of our examination of the records of the Company, amounts deducted/ accrued in the books of account in respect of undisputed statutory dues including Goods and Services Tax, provident fund, employees state insurance, income-tax, sales-tax, service tax, duty of customs, duty of excise, value added tax, cess and other material statutory dues, wherever applicable, have generally been regularly deposited with the appropriate authorities except the following:

(i) Goods & Service Tax

Statute

Nature of dues

Amount (In crores)

Period to which the dues relate

Due Date

Date of payment

Remarks, if any

Central Goods & Service Act, 2017

Goods & Service Tax

1.76

2024-25

For the

specified

period

-

Bsnl,

Afnet,

MCS

Central Goods & Service Act, 2017

Goods & Service Tax

15.14

2017 to 2023

For the

specified

period

-

BSNL

Central Goods & Service Act, 2017

Goods & Service Tax

0.54

2023-24

For the

specified

period

AFNET

Central Goods & Service Act, 2017

Goods & Service Tax

2.85

2023-24

For the

specified

period

BSNL

Central Goods & Service Act, 2017

Goods & Service Tax

2.12

2023-24

For the

specified

period

MCS

(ii) License Fee & Spectrum Charges

Statute

Nature of dues

Amount (In Crores)

Period to which the dues relate

Due

Date

Date of payment

Remarks, if any

Indian Telegraph Act, 1985 & Telecom Regulatory Authority of India

License

Fee

143.98

2019-20

For FY 2019-20

Indian Telegraph Act, 1985 & Telecom Regulatory Authority of India

License

Fee

106.99

2020-21

For FY 2020-21

Indian Telegraph Act, 1985 & Telecom Regulatory Authority of India

License

Fee

95.88

2021-22

For FY 2021-22

Indian Telegraph Act, 1985 & Telecom Regulatory Authority of India

License

Fee

72.54

2022-23

For FY 2022-23

Indian Telegraph Act, 1985 & Telecom Regulatory Authority of India

License

Fee

57.85

2023-24

For FY 2023-24

Indian Telegraph Act, 1985 & Telecom Regulatory Authority of India

License

Fee

53.46

2024-25

For FY 2024-25

Indian Telegraph Act, 1985 & Telecom Regulatory Authority of India

Spectrum

Charges

14.77

2019-20

For FY 2019-20

Indian Telegraph Act, 1985 & Telecom Regulatory Authority of India

Spectrum

Charges

10.97

2020-21

For FY 2020-21

MTNL

Statute

Nature of dues Amount (In Crores) Period to which the dues relate Due

Date

Date of payment Remarks, if any

Indian Telegraph Act, 1985 & Telecom Regulatory Authority of India

Spectrum

Charges

5.82 2021-22 For FY 2021-22

Indian Telegraph Act, 1985 & Telecom Regulatory Authority of India

Spectrum

Charges

4.92 2022-23 For FY 2022-23

Indian Telegraph Act, 1985 & Telecom Regulatory Authority of India

Spectrum

Charges

2.09 2023-24 For FY 2023-24

Indian Telegraph Act, 1985 & Telecom Regulatory Authority of India

Spectrum

Charges

2.61 2024-25 For FY 2024-25

b) According to the information and explanations given to us, there are no dues of Goods and Services Tax, provident fund, employees state insurance, income-tax, sales-tax, service tax, duty of customs, duty of excise, value added tax, cess or other material statutory dues which have not been deposited with the appropriate authorities on account of any dispute except for the following dues:

In respect of Delhi Units:

i. Service Tax:

Name of the Statute

Total Liabilities (Rs. in Cr.) Deposit Amount (Rs. in Cr.) O/S

Liabilities (Rs. in Cr.)

Period to which amount relates Forum where the dispute is pending

Finance Act, 1994

66.71 5.00 61.71 2014-15 to June-17

Commissioner of Central Excise and Service Tax

Finance Act, 1994

4.22 0.32 3.90 2005-06

Finance Act, 1994

0.08 0.04 0.04 2000-03

Total

71.01 5.36 65.65

ii. GST:

Name of the Statute

Total Liabilities (Rs. in Cr.) Deposit Amount (Rs. in Cr.) O/S

Liabilities (Rs. in Cr.)

Period to which amount relates Forum where the dispute is pending

Goods & Services Tax Act, 2017

30.30 1.52 20.78 2017-18

Special

Commissioner of GST

16.15 0.86 15.29 2018-19
152.92 6.95 145.96 2018-19
88.52 4.58 83.94 2019-20
0.63 - 0.63 2020-21

Total

288.51 13.91 274.60

iii. Labour Cess:

Name of the Statute

Total Liabilities (Rs. in Cr.) Deposit Amount (Rs. in Cr.) O/S

Liabilities (Rs. in Cr.)

Period to which amount relates Forum where the dispute is pending

Building and other Construction Workers Welfare Cess Act,

1996.

9.14 0.09 9.05 1996 to 2001 Deputy Labour Commissioner

In respect of Mumbai Basic Units- i. Sales Tax:

Name of the Statute

Amount (Rs. in Cr.) (Net)

Period to which amount relates

Forum where the dispute is pending

Bombay Sales Tax Act, 1959

5.32

1996-97

Honble High Court of Bombay

Bombay Sales Tax Act, 1959

216.11

2003-04

Maharashtra Sales Tax Tribunal, Mumbai

Bombay Sales Tax Act, 1959

101.57

2004-05

Maharashtra Sales Tax Tribunal, Mumbai

Bombay Sales Tax Act, 1959

14.97

2009-10

Maharashtra Sales Tax Tribunal, Mumbai

Bombay Sales Tax Act, 1959

6.11

2011-12

Maharashtra Sales Tax Tribunal, Mumbai

Bombay Sales Tax Act, 1959

26.47

2012-13

Honble High Court of Bombay

Bombay Sales Tax Act, 1959

2.40

2014-15

Deputy Commissioner of Sales tax

TOTAL

372.94

Name of the Statute

Amount (Rs. in Cr.) (Net)

Period to which amount relates

Forum where the dispute is pending

Finance Act, 1994

2.91

2012-13 to 2016-17

Custom Excise and Service Tax Appellate Tribunal

Total

2.91

In respect of Corporate Office: v. Income Tax:

Name of the Statute

Amount (Rs. in Cr.) (Net) Period to which amount relates Forum where the dispute is pending Remarks

Income Tax Act, 1961

Nil A.Y 1998-99 to A.Y 2006-07 Honble High Court of Delhi

Total disputed demand of Rs. 659.65 Crore either paid by the Company or deducted by the Income Tax Department from refund due to the Company

Income Tax Act, 1961

Nil A.Y 2007-08 to A.Y 2009-10 Honble Income Tax Appellant Tribunal and Commissioner of Income Tax (Appeal)

(viii) According to the information and explanations given to us and on the basis of our examination of the records of the Company, the Company has not surrendered or disclosed any transactions, previously unrecorded as income in the books of account, in the tax assessments under the Income- tax Act, 1961 as income during the year.

(ix) (a) In our opinion and according to the information and explanations given to us, the

Company has defaulted in repayment of loans or other borrowings or in the payment of interest thereon to the following lenders during the year:

Nature of borrowing including debt securities

Name of lender Amount not paid on due date (Rs. in Cr.) Whether principal or interest No. of days delay or unpaid Remarks, if any

Term Loan and Overdraft

Union Bank of India 842.49 Principal and Interest 276

Term Loan and Overdraft

Bank of India 289.89 Principal and Interest 276

Term Loan and Overdraft

Punjab National Bank 216.46 Principal and Interest 276

Term Loan

State Bank of India 350.05 Principal and Interest 276

Term Loan

UCO Bank 266.39 Principal and Interest 276

Overdraft

Indian Overseas Bank 74.49 Interest 90

Term Loan

Punjab and Sindh Bank 144.53 Principal and Interest 276

(b) According to the information and explanations given to us and on the basis of our examination of the records of the Company, the Company has not been declared a willful defaulter by any bank or financial institution or other lender.

(c) According to the information and explanations given to us and on the basis of our examination of the records of the Company, term loans have been generally applied for the purposes for which they were raised.

(d) According to the information and explanations given to us and on an overall examination of the balance sheet of the Company, funds raised on short term basis have not been utilized for long- term purposes.

(e) According to the information and explanations given to us and on an overall examination of the financial statements of the Company, we report that the Company has not taken any funds from any entity or person on account of or to meet the obligations of its subsidiaries as defined under the Companies Act, 2013. Accordingly, clause 3(ix)(e) of the Order is not applicable to the company.

(f) According to the information and explanations given to us and procedures performed by us, we report that the Company has not raised loans during the year on the pledge of securities held in its subsidiaries as defined under the Companies Act, 2013. Accordingly, clause 3(ix)(f) of the Order is not applicable to the company.

(x) (a) The Company has not raised any money by way of initial public offer or further public

offer (including debt instruments) during the year. Accordingly, clause 3(x)(a) of the Order is not applicable to the company.

(b) According to the information and explanations given to us and on the basis of our examination of the records of the Company, the Company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year. Accordingly, clause 3(x)(b) of the Order is not applicable to the company.

(xi) (a) According to the information and explanations given to us and on the basis of our

examination of the records of the Company carried out in accordance with the generally accepted auditing practices in India, we have neither come across any instance of fraud by the Company or on the Company, noticed or reported during the year, nor have been informed of such case by the Management.

(b) According to the information and explanations given to us and on the basis of our examination of the records of the Company carried out in accordance with the generally accepted auditing practices in India, a report under Section 143(12) of the Act, in Form ADT- 4 as prescribed under Rule 13 of Companies (Audit & Auditors) Rules, 2014 was not required to be filed by us with the Central Government, during the year and up to the date of this Report. Further, as informed by the Company, the Cost Auditor as well as the Secretarial Auditor of the Company have not filed any report under Section 143(12) of the Act with the Central Government in Form ADT-4 as prescribed under Rule 13 of Companies (Audit and Auditors) Rules, 2014 during the year and up to the

date of this Report. Accordingly, reporting under Clause 3(xi)(b) of the Order is not applicable to the Company.

(c) According to the information and explanations given to us, no whistle blower complaints have been received by the Company during the year.

(xii) According to the information and explanations given to us, the Company is not a Nidhi Company. Accordingly, clause 3(xii) of the Order is not applicable to the company.

(xiii) In our opinion and as per the information and explanation given to us, the Company has complied with the Provision of Section 177 of the Act and has not entered into any transaction requiring compliance with Section 188 of the Act.

(xiv) (a) In our opinion, the Internal Audit System of the Company is not commensurate with

the size of the Company and the nature of its business. Moreover, extent of coverage of the areas of operations, frequency/ quality of reporting/ timeliness of the reporting and the follow up of internal audit observations need to be strengthened.

(b) We have considered the internal audit reports of the Company issued till date for the period under audit. However, the Internal Audit Reports of some of the units/zones of the Company were provided at short notice or only partly provided, hence not considered.

(xv) In our opinion and according to the information and explanations given to us, the Company has not entered into any non-cash transactions with its directors or persons connected to its directors and hence, provisions of Section 192 of the Companies Act, 2013 are not applicable to the Company.

(xvi) (a) In our opinion, the Company is not required to be registered under section 45-IA of the

Reserve Bank of India Act, 1934. Hence, reporting under clause 3(xvi)(a), (b) and (c) of the Order is not applicable.

(b) In our opinion, there is no core investment company within the Group (as defined in the Core Investment Companies (Reserve Bank) Directions, 2016) and accordingly reporting under clause 3(xvi)(d) of the Order is not applicable.

(xvii) The Company has incurred cash losses of Rs. 3341.36 Crore and Rs. 3317.42 Crore in the current and in the immediately preceding financial year respectively.

(xviii) There has been no resignation of the statutory auditors during the year. Accordingly, clause 3(xviii) of the Order is not applicable. However, the Comptroller and Auditor General of India (CAG) has changed the joint statutory auditors during the year.

(xix) The Company has accumulated losses and its net worth has been fully/ substantially eroded, the Company has incurred net loss/net cash loss during the current year and the companys current liabilities exceeded its current assets as at the balance sheet date. According to the information and explanations given to us and on the basis of the financial ratios, ageing and expected dates of realization of financial assets and payment of financial liabilities, other information accompanying the financial statements, our knowledge of the

Board of Directors and management plans and based on our examination of the evidence supporting the assumption in our opinion, these events or conditions, along with other matter, indicate that a material uncertainty exists as on the date of the audit report and the Company is not capable of meeting its liabilities existing at the date of balance sheet as and when they fall due within a period of one year from the balance sheet date. (Also refer Qualified opinion paragraph (i) of our Independent Auditors Report and note no. 78 to the standalone financial statements.).

(xx) In our opinion and according to the information and explanations given to us, there is no amount required to be spent by the company in accordance with section 135 of the companies act 2013. Accordingly, clause 3 (xx) of the Order is not applicable to the Company.

(xxi) The reporting under Clause 3(xxi) of the Order is not applicable in respect of audit of standalone financial statements. Accordingly, no comment in respect of the said clause has been included in this report.

For O P Bagla & Co LLP

For S.L. Chhajed & Co. LLP

Chartered Accountants

Chartered Accountants

Firm Registration No.: 00018N/N500091

Firm Registration No.: 000709C/C400277

 

CA Nitin Jain

CA Vijit Baidmutha

Partner

Partner

Membership No.: 510841

Membership No.: 406044

UDIN: 25510841BMNYFH6092

UDIN: 25406044BMICPI7072

Place: Delhi

Place: Delhi

Date: 28-05-2025

Date: 28-05-2025

ANNEXURE-B

ANNEXURE B TO THE INDEPENDENT AUDITORS REPORT

Referred to in our Independent Auditors Report of even date to the members of Mahanagar Telephone Nigam Limited on the Standalone Financial Statements for the year ended 31st March 2025.

Directions indicating the areas to be examined by the Statutory Auditors during the course of audit of annual accounts of Mahanagar Telephone Nigam Limited (Standalone) for the financial year 2024 - 25 issued by the Comptroller & Auditor General of India under section 143(5) of the Companies Act, 2013.

Based on the information and explanations given to us we report as under:

Sr.No.

Areas Examined Observation / Finding

1

Whether the company has system in place to process all the accounting transactions through IT system? If yes, the implications of processing of accounting transactions outside IT system on the integrity of the accounts along with the financial implications, if any, may be stated. Yes, majority of the accounting transactions are done through the IT system. Although manual intervention is prevalent. Adequate security measures for manual intervention need to be strengthened with supervisory sanction only and properly documented.

However, the billing of following services is not integrated with WFMS (accounting software): -

1) Lease Circuit

2) Toll Free

3) IUC

4) Post Paid

5) GSM IUC

2

Whether there is any restructuring of an existing loan or cases of waiver/write off of debts/loans/interest etc. made by lender to a company due to the companys inability to repay the loan? If yes, the financial impact may be stated. Whether such cases are properly accounted for? As certified by the management and those charged with governance, we have been informed that there is no restructuring of loan/ wavier/ write off of debts/ loan/ interest made by lender to a company due to the companys inability to repay the loan during the financial year 2024-25.

206

Sr.No.

Areas Examined Observation / Finding

3

Whether funds (grants/subsidy etc.) received/ receivable from the specific schemes from central/ state government or its agencies were properly accounted for / utilized as per its terms and conditions? List the cases of deviation. The company has received the Swachh Action Plan contribution during FY 2017-18 is Rs. 0.21 Crore, FY 2018-19 is Rs. 0.35 Crore, FY 2019-20 is Rs 0.35 Crore out of which Rs. 0.03 Crore is pending utilization with the Company.

Further, the company has not received any contribution under Swachh Action Plan during FY 2020-21, 2021-2022, 2022-23, 2023-24 & 2024-25.

4

Whether the amount of revenue of share (License fees and Spectrum Usage charges) recognized in the financial statement in accordance with the License conditions agreed by the company with DoT? If so, detailed statement & calculation sheet may be attached. Yes, AGR Audit Report and Calculation sheet attached herewith.

We have conducted the audit of accounts of Mahanagar Telephone Nigam Limited for the year ended 2024-25 in accordance with the directions issued by the C&AG of India under section 143(5) of the Companies Act, 2013 and certify that we have complied with the all directions issued to us.

For O P Bagla & Co LLP

Chartered Accountants Firm Registration No.: 00018N/N500091

CA Nitin Jain

Partner

Membership No.: 510841 UDIN: 25510841BMNYFH6092

Place: Delhi Date: 28-05-2025

For S.L. Chhajed & Co. LLP

Chartered Accountants Firm Registration No.: 000709C/C400277

CA Vijit Baidmutha

Partner

Membership No.: 406044 UDIN: 25406044BMICPI7072

Place: Delhi Date: 28-05-2025

207

ANNEXURE C TO THE INDEPENDENT AUDITORS REPORT

(Referred to in paragraph (g) under Report on Other Legal and Regulatory Requirements section of our report of even date)

Report on the Internal Financial Controls with reference to the standalone financial statements under Clause (i) of sub-section 3 of section 143 of the Companies Act, 2013 ("the Act")

We have audited the internal financial controls with reference to the standalone financial statements of Mahanagar Telephone Nigam Limited ("the Company") as of 31st March 2025 in conjunction with our audit of the standalone financial statements of the Company for the year ended on that date.

Managements Responsibility for Internal Financial Controls

The Companys management is responsible for establishing and maintaining internal financial controls based on the internal control with reference to 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 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 companys 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

Our responsibility is to express an opinion on the Companys internal financial controls with reference to the standalone financial statements 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 internal financial controls with reference to the standalone financial statements was established and maintained and if such controls operated effectively in all material respects.

Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial control system with reference to these standalone financial statements and their operating effectiveness. Our audit of internal financial controls with reference to these standalone financial statements included obtaining an understanding of internal financial controls with

reference to these standalone financial statements, 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 auditors judgment, including the assessment of the risks of material misstatement of the standalone financial statements, whether due to fraud or error.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Companys internal financial controls system with reference to these standalone financial statements.

Meaning of Internal Financial Controls with reference to these standalone financial statements.

A companys internal financial control with reference to these standalone financial statements is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of standalone financial statements for external purposes in accordance with generally accepted accounting principles. A companys internal financial control over financial statements 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 financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and

(3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the companys assets that could have a material effect on the standalone financial statements.

Inherent Limitations of Internal Financial Controls with reference to the standalone financial statements

Because of the inherent limitations of internal financial controls with reference to the standalone financial statements, 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 internal financial controls with reference to the standalone financial statements to future periods are subject to the risk that the internal financial control with reference to the standalone financial statements may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

Qualified Opinion

According to the information and explanations given to us and based on our audit, the following material weaknesses have been identified in the operating effectiveness of the Companys internal financial controls over financial reporting with reference to the standalone financial statements as at March 31, 2025:

(i) The Companys billing software has not been operating properly in the Delhi Unit Mumbai Unit. Additionally, the Company has not implemented sufficient alternative or manual procedures to ensure billing accuracy or safeguard against errors and fraud during this period, indicating a lack of effective internal controls over the billing process.

(ii) The Company does not have appropriate internal control system for ensuring capitalization of Property, Plant and Equipment as and when the same is ready for use due to delayed issue of completion certificate by engineering department or due to delay in receipt of bills from the vendors for bought out items or due to delay of inventory issue slip by stores. Hence, the date of capitalization is not reliable. This could potentially result into delayed capitalization and corresponding impact on the operational results due to lower charge of depreciation.

(iii) The Company does not have an appropriate internal control system for ensuring decommissioning and de-capitalization of Property, Plant and Equipment in respect of assets which are no longer in use and held for disposal as scrap. This could potentially result into overstatement of gross block and corresponding impact on the operational results due to higher charge of depreciation and lower provision for impairment of assets.

(iv) The Company does not have an appropriate internal control system to ensure that provisions made pending receipt of bills from vendors / contractors / operators / government departments at the quarter end and year end are duly reversed when actual bills are received and accounted for. This could potentially result in the same being accounted twice.

(v) The Company does not have an appropriate internal control system to track open purchase orders, work orders, agreements and contracts which have been entered with vendors / contractors / operators / government departments and are lying open. This could have a bearing on efficiency of operations and recording of financial liabilities and provisions pertaining to the same.

(vi) The Company does not have an integrated ERP system. Different software packages used by the company are interfaced through software links or manual intervention leaving gaps between them. This could potentially result into impaired financial reporting. In Mumbai Unit the Company does not have an appropriate internal control system for reconciliation of Debtors between Billing software and Accounts, which could potentially result in some changes in the standalone financial statements.

(vii) The Company does not have an appropriate internal control system for reconciliation of vendors/ contractors / operators / government departments, accounts which could potentially result in some changes in the standalone financial statements. The cases identified by us have been appropriately qualified at various places in our report.

(viii) The Company does not have effective internal audit system so as to cover all major areas with extensive scope. The extent and depth of coverage, manner of conduct and reporting in respect of internal audit is very weak. This could potentially result into weak checks and

balances and unreported financial irregularities ultimately resulting into distorted financial reporting.

(ix) The Company does not have an appropriate internal control system for reconciliation of items of unlinked debits and credits because of receipts from the subscriber and the amount debited by the banks. This could potentially lead unreported financial adjustments ultimately resulting into distorted financial reporting.

(x) The Company does not have an appropriate internal control system for invoicing which are due and payable based on manual invoicing. The invoicing systems does not have reliability of measurement and reconciliation of items. This leads to multiple revisions and errors in invoicing. This could potentially lead errors in revenue recognition.

(xi) The Company does not have appropriate internal control system for ensuring end use of issued inventory. The accounting is done based on the requisition statement of item and not actual installation or commission of item. This could potentially result into non-identification of pilferage and also early capitalization of equipment.

(xii) The Company does not have an appropriate internal control system for ensuring billing and recovery of water and electricity charges from the lessee. This could potentially result in non- recovery and delayed recovery of such charges causing financial loss of the absolute expenses and finance cost on the delay in realization. This could also result in inaccurate expense values in the financial statements of the company.

(xiii) The company does not have appropriate internal control system towards renewals of the expired Rent/Lease agreements. Even though in some of the cases where lease agreements have been expired, company is receiving rentals on the terms and conditions mentioned in the expired agreement with the parties.

(xiv) The company does not have appropriate internal control towards the timely closure of workorders w.r.t landline & FTTH connections and creation of customer master for billing. This could potentially result in leakage and potential loss of revenue.

(xv) The Company does not have appropriate internal control system for reconciliation of TDS refundable with form 26 AS and TDS certificate where applicable, which could potentially result in changes in standalone financial statement.

(xvi) In some cases, company is recognising rentals on the terms and conditions mentioned in the expired agreements with the parties and not receiving any amount from such parties for more than one year. However, the company has not provided provision for doubtful debts for all such cases.

A material weakness is a deficiency, or a combination of deficiencies, in internal financial control

with reference to the standalone financial statements, such that there is a reasonable possibility

that a material misstatement of the companys annual or interim financial statements will not

be prevented or detected on a timely basis.

In our opinion, 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 maintained, in all material respects, adequate internal financial controls with reference to the standalone financial statements and such internal financial controls with reference to the standalone financial statements were operating effectively as of March 31, 2025 , 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 issued by the Institute of Chartered Accountants of India.

We have considered the material weaknesses identified and reported above in determining the nature, timing, and extent of audit tests applied in our audit of the standalone financial statements of the Company for the year ended March 31, 2025, and these material weaknesses do not affect our opinion on the standalone financial statements of the Company.

For O P Bagla & Co LLP

For S.L. Chhajed & Co. LLP

Chartered Accountants

Chartered Accountants

Firm Registration No.: 00018N/N500091

Firm Registration No.: 000709C/C400277

CA Nitin Jain

CA Vijit Baidmutha

Partner

Partner

Membership No.: 510841

Membership No.: 406044

UDIN: 25510841BMNYFH6092

UDIN: 25406044BMICPI7072

Place: Delhi

Place: Delhi

Date: 28-05-2025

Date: 28-05-2025

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