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Vodafone Idea Ltd.

BSE: 532822 Sector: Telecom
NSE: IDEA ISIN Code: INE669E01016
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VOLUME 54386766
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OPEN 10.07
CLOSE 10.00
VOLUME 54386766
52-Week high 13.80
52-Week low 7.17
P/E
Mkt Cap.(Rs cr) 28,534
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Vodafone Idea Ltd. (IDEA) - Auditors Report

Company auditors report

To the Members of Vodafone Idea Limited

Report on the Audit of the Standalone Ind AS Financial StatementsOpinion

We have audited the accompanying standalone Ind AS financial statementsof Vodafone Idea Limited (formerly known as Idea Cellular Limited) ("theCompany") which comprise the Balance sheet as at March 31 2020 the Statement ofProfit and Loss including the statement of Other Comprehensive Income the Cash FlowStatement and the Statement of Changes in Equity for the year then ended and notes to thefinancial statements including a summary of significant accounting policies and otherexplanatory information.

In our opinion and to the best of our information and according to theexplanations given to us the aforesaid standalone Ind AS financial statements give theinformation required by the Companies Act 2013 as amended ("the Act") in themanner so required and give a true and fair view in conformity with the accountingprinciples generally accepted in India of the state of affairs of the Company as at March31 2020 its loss including other comprehensive income its cash flows and the changes inequity for the year ended on that date.

Basis for Opinion

We conducted our audit of the standalone Ind AS financial statements inaccordance with the Standards on Auditing (SAs) as specified under section 143(10) of theAct. Our responsibilities under those Standards are further described in the‘Auditor's Responsibilities for the Audit of the standalone Ind AS FinancialStatements' section of our report. We are independent of the Company in accordance withthe ‘Code of Ethics' issued by the Institute of Chartered Accountants of Indiatogether with the ethical requirements that are relevant to our audit of the financialstatements under the provisions of the Act and the Rules thereunder and we have fulfilledour other ethical responsibilities in accordance with these requirements and the Code ofEthics. We believe that the audit evidence we have obtained is sufficient and appropriateto provide a basis for our audit opinion on the standalone Ind AS financial statements.

Material Uncertainty Related to Going Concern

We draw attention to Note 4 to the financial statements which describesthe DoT demand based on Hon'ble Supreme Court judgment dated October 24 2019 on thedefinition of Gross Revenue as per the

UASL agreement and the liability on license fee and spectrum usagecharges. Further owing to its financial performance and financial condition the Companyhas breached its debt covenants as at March 31 2020 for which it is in discussions withvarious lenders. This has impacted the Company's ability to generate the cash flow that itneeds to settle/refinance its liabilities and guarantees as they fall due resulting inmaterial uncertainty that casts significant doubt on the Company's ability to make thepayments mentioned therein and continue as a going concern.

The said assumption of going concern is dependent upon positive outcomeof Company's and DoT application with respect to deferred payment of its AGR liabilitywaiver of debt covenant breaches and its ability to generate/arrange the cash flow that itneeds to settle or refinance its liabilities and guarantees as they fall due. Our opinionis not modified in respect of this matter.

Key Audit Matters

Key audit matters are those matters that in our professional judgmentwere of most significance in our audit of the standalone Ind AS financial statements forthe financial year ended March 312020. These matters were addressed in the context of ouraudit of the standalone Ind AS financial statements as a whole and in forming our opinionthereon and we do not provide a separate opinion on these matters. In addition to thematter described in the ‘Material Uncertainty Related to Going Concern' section wehave determined the matters described below to be the key audit matters to be communicatedin our report. For each matter below our description of how our audit addressed thematter is provided in that context.

We have determined the matters described below to be the key auditmatters to be communicated in our report. We have fulfilled the responsibilities describedin the Auditor's responsibilities for the audit of the standalone Ind AS financialstatements section of our report including in relation to these matters. Accordingly ouraudit included the performance of procedures designed to respond to our assessment of therisks of material misstatement of the standalone Ind AS financial statements. The resultsof our audit procedures including the procedures performed to address the matters belowprovide the basis for our audit opinion on the accompanying standalone Ind AS financialstatements.

Key audit matters How our audit addressed the key audit matter
Revenue recognition (as described in note 5(a) of the Standalone Ind AS financial statements)
For the year ended March 31 2020 the service revenue recognised was Rs. 446827 million. Our audit procedures included the following:
• With the assistance by IT specialists we obtained an understanding evaluated
Revenue recognition has been identified as a key audit matter due to complexity of systems in recognizing revenues significance of volumes of data process by system constantly evolving pricing with heavily discounted tariffs and operation in highly competitive marketplace. the design and tested the operating effectiveness of key IT general and application controls related to revenue recognition processes. We also tested relevant IT infrastructure and applications that result in generation of various IT reports used for billing and revenue recognition process.
• We tested for operating effectiveness of IT dependent manual controls including data analytics and trend analysis test of various reconciliations between billing systems prepaid applications and also performed recomputation of deferment of revenue.
• We assessed the revenue related accounting policy critical estimates and assumptions and disclosures in the standalone Ind AS financial statements.
Claims and exposures relating to litigation from taxation matters and change in regulatory environment including provision in the books for regulatory demands (as described in note 42 4(A) and 40(viii) of the Standalone Ind AS financial statements)
At March 31 2020 the value of regulatory tax and legal disputes disclosed as contingent liabilities was Rs. 116292 million. Our audit procedures included the following:
• We obtained summary of all tax regulatory and litigation including management's assessment.
Pursuant to the Hon'ble Supreme Court judgement Company has recorded the provision for AGR of Rs. 442083 million during FY 2019-20. Further the Company has also recorded provision of Rs. 38871 million for one time spectrum charges for more than 6.2 MHz spectrum. • We obtained an understanding evaluated the design and tested the operating effectiveness of the controls related to management's risk assessment process for taxation regulatory and legal matters.
• We obtained and read external legal opinions (where considered necessary) and other evidences provided by management to corroborate management's
Taxation regulatory and litigation exposures have been identified as a key audit matter due to everchanging regulatory environment and significant judgement required by management in assessing the exposure of each case and thus a risk that such cases may not be adequately provided for or disclosed. assessment of the regulatory and legal matters.
• Engaged tax/regulatory specialists to assess the tax/regulatory positions taken by management with respect to tax/regulatory litigations.
• Verified the provisions recorded in the books by the Company including the interest computations based on the demands received by the Company from DoT internal records of the Company based on the Hon'ble Supreme Court judgement and validated the provisions recorded in the books.
• Assessed the relevant accounting policies and disclosures in the standalone Ind AS financial statements for compliance with the requirements of accounting standards.
Borrowings interest and debt covenant testing (as described in note 21 of the Standalone Ind AS financial statements)
At March 312020current and non-current borrowings including interest accrued was Rs. 1212260 million and bank guarantee was Rs. 214329 million. Our audit procedures included the following:
• We tested the debt covenant ratio specified in the loan agreements and the computation and assessed the classification of the borrowing in financial statement based on the results of such testing.
Annual covenant testing as at March 31 2020 resulted in certain ratios breaching the specified covenant threshold for loans aggregating Rs. 155208 million. Accordingly the Company has classified Rs. 142757 million from non-current borrowings to current maturities of long-term debt.
• We obtained the independent confirmation from the bank with respect to borrowings and non-fund based facilities [including bank guarantees/letter of credit] outstanding as at March 31 2020 and compared the amounts as per confirmations with the amounts in the books of accounts and tested with the reconciliation provided by the management.
Borrowings has been identified as a key audit matter due to debt covenant testing change in credit ratings of the loans and various correspondences received from banks and financial institutions for additional security / increase in interest rate resulting in recognition presentation and measurement complexities.
• We verified the interest rate used by the Company for computation of interest cost with the loan agreements and correspondences received by the Company from respective banks and corresponding increase in rate due non-remediation of debt covenant and downgrade in credit rating.
• We verified the security created against fund and non-fund facilities with the agreements and documents related to charges filed with Register of Companies.
• We assessed the borrowing related accounting policy and disclosures in the standalone Ind AS financial statements for compliance as per Ind AS 107.

Other Information

The Company's Board of Directors are responsible for the otherinformation. The other information comprises the Performance Highlights CorporateGovernance Report Directors' Report Management Discussion and Analysis Report andBusiness Responsibility Report but does not include the standalone Ind AS financialstatements and our auditor's report thereon. The Performance Highlights CorporateGovernance Report Directors' Report Management Discussion and Analysis Report andBusiness Responsibility Report is expected to be made available to us after that date ofthis auditor's report.

Our opinion on the standalone Ind AS financial statements does notcover the other information and we will not express any form of assurance conclusionthereon.

In connection with our audit of the standalone Ind AS financialstatements our responsibility is to read the other information identified above when itbecomes available and in doing so consider whether such other information is materiallyinconsistent with the standalone Ind AS financial statements or our knowledge obtained inthe audit or otherwise appears to be materially misstated.

Responsibilities of Management for the Standalone Ind AS FinancialStatements

The Company's Board of Directors are responsible for the matters statedin section 134(5) of the Act with respect to the preparation of these standalone Ind ASfinancial statements that give a true and fair view of the financial position financialperformance including other comprehensive income cash flows and changes in equity of theCompany in accordance with the accounting principles generally accepted in Indiaincluding the Indian Accounting Standards (Ind AS) specified under section 133 of the Actread with the Companies (Indian Accounting Standards) Rules 2015 as amended by theCompanies (Indian Accounting Standards) Second Amendment Rules 2019. This responsibilityalso includes maintenance of adequate accounting records in accordance with the provisionsof the Act for safeguarding of the assets of the Company and for preventing and detectingfrauds and other irregularities; selection and application of appropriate accountingpolicies; making judgments and estimates that are reasonable and prudent; and the designimplementation and maintenance of adequate internal financial controls that wereoperating effectively for ensuring the accuracy and completeness of the accountingrecords relevant to the preparation and presentation of the standalone Ind AS financialstatements that give a true and fair view and are free from material misstatement whetherdue to fraud or error.

In preparing the standalone Ind AS financial statements management isresponsible for assessing the Company's ability to continue as a going concerndisclosing as applicable matters related to going concern and using the going concernbasis of accounting unless management either intends to liquidate the Company or to ceaseoperations or has no realistic alternative but to do so.

Those Board of Directors are also responsible for overseeing theCompany's financial reporting process.

Auditor's Responsibilities for the Audit of the Standalone Ind ASFinancial Statements

Our objectives are to obtain reasonable assurance about whether thestandalone Ind AS financial statements as a whole are free from material misstatementwhether due to fraud or error and to issue an

auditor's report that includes our opinion. Reasonable assurance is ahigh level of assurance but is not a guarantee that an audit conducted in accordance withSAs will always detect a material misstatement when it exists. Misstatements can arisefrom fraud or error and are considered material if individually or in the aggregate theycould reasonably be expected to influence the economic decisions of users taken on thebasis of these standalone Ind AS financial statements.

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

• Identify and assess the risks of material misstatement of thestandalone Ind AS financial statements whether due to fraud or error design and performaudit procedures responsive to those risks and obtain audit evidence that is sufficientand appropriate to provide a basis for our opinion. The risk of not detecting a materialmisstatement resulting from fraud is higher than for one resulting from error as fraudmay involve collusion forgery intentional omissions misrepresentations or the overrideof internal control.

• Obtain an understanding of internal control relevant to theaudit in order to design audit procedures that are appropriate in the circumstances. Undersection 143(3)(i) of the Act we are also responsible for expressing our opinion onwhether the Company has adequate internal financial controls system in place and theoperating effectiveness of such controls.

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

• Conclude on the appropriateness of management's use of the goingconcern basis of accounting and based on the audit evidence obtained whether a materialuncertainty exists related to events or conditions that may cast significant doubt on theCompany's ability to continue as a going concern. If we conclude that a materialuncertainty exists we are required to draw attention in our auditor's report to therelated disclosures in the financial statements or if such disclosures are inadequate tomodify our opinion. Our conclusions are based on the audit evidence obtained up to thedate of our auditor's report. However future events or conditions may cause the Companyto cease to continue as a going concern.

• Evaluate the overall presentation structure and content of thestandalone Ind AS financial statements including the disclosures and whether thestandalone Ind AS financial statements represent the underlying transactions and events ina manner that achieves fair presentation.

We communicate with those charged with governance regarding amongother matters the planned scope and timing of the audit and significant audit findingsincluding any significant deficiencies in internal control that we identify during ouraudit.

We also provide those charged with governance with a statement that wehave complied with relevant ethical requirements regarding independence and tocommunicate with them all relationships and other matters that may reasonably be thoughtto bear on our independence and where applicable related safeguards.

From the matters communicated with those charged with governance wedetermine those matters that were of most significance in the

audit of the standalone Ind AS financial statements for the financialyear ended March 31 2020 and are therefore the key audit matters. We describe thesematters in our auditor's report unless law or regulation precludes public disclosure aboutthe matter or when in extremely rare circumstances we determine that a matter should notbe communicated in our report because the adverse consequences of doing so wouldreasonably be expected to outweigh the public interest benefits of such communication.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditor's Report) Order 2016("the Order") issued by the Central Government of India in terms of sub-section(11) of section 143 of the Act we give in the "Annexure 1" a statement on thematters specified in paragraphs 3 and 4 of the Order.

2. As required by Section 143(3) of the Act we report that:

(a) We have sought and obtained all the information and explanationswhich to the best of our knowledge and belief were necessary for the purposes of ouraudit;

(b) In our opinion proper books of account as required by law havebeen 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 theStatement of Other Comprehensive Income the Cash Flow Statement and Statement of Changesin Equity dealt with by this Report are in agreement with the books of account;

(d) In our opinion the aforesaid standalone Ind AS financialstatements comply with the Accounting Standards specified under Section 133 of the Actread with Companies (Indian Accounting Standards) Rules 2015 as amended by the Companies(Indian Accounting Standards) Second Amendment Rules 2019;

(e) The going concern matter described in Material Uncertainty Relatedto Going Concern paragraph above in our opinion may have an adverse effect on thefunctioning of the Company.

(f) On the basis of the written representations received from thedirectors as on March 312020 taken on record by the

Board of Directors none of the directors is disqualified as on March31 2020 from being appointed as a director in terms of Section 164 (2) of the Act;

(g) With respect to the adequacy of the internal financial controlsover financial reporting of the Company with reference to these standalone Ind ASfinancial statements and the operating effectiveness of such controls refer to ourseparate Report in "Annexure 2" to this report;

(h) In our opinion the managerial remuneration for the year endedMarch 31 2020 has been paid / provided by the Company to its directors in accordance withthe provisions of section 197 read with Schedule V to the Act;

(i) With respect to the other matters to be included in the Auditor'sReport in accordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 asamended in our opinion and to the best of our information and according to theexplanations given to us:

i. The Company has disclosed the impact of pending litigations on itsfinancial position in its standalone Ind AS financial statements - Refer Note 42 to thestandalone Ind AS financial statements;

ii. The Company did not have any material foreseeable losses inlong-term contracts including derivative contracts during the year ended March 312020;

iii. There were no amounts which were required to be transferred to theInvestor Education and Protection Fund by the Company.

For S.R. Batliboi & Associates LLP

Chartered Accountants

ICAI Firm Registration Number: 101049W/E300004

per Nilangshu Katriar

Partner

Membership Number: 58814 UDIN: 20058814AAAABR5503

Place: Mumbai Date: June 30 2020

Annexure 1 to the Independent Auditor's Report

Annexure referred to in paragraph 1 of 'Report on other Legal andRegulatory Requirements'

Re: Vodafone Idea Limited (formerly known as Idea Cellular Limited)

('the Company')

(i) (a) The Company has maintained proper records showing full

particulars including situation and quantitative information exceptfor certain assets being relocated as part of network integration activity which arepending updation in the records maintained by the Company.

(b) The Company has a programme of physical verification of fixedassets to cover all the items in phased manner over a period of three years which in ouropinion is reasonable having regard to the size of the Company and nature of its assets.Pursuant to such programme physical verification for a portion of fixed assets due duringthe year were initiated and not completed by the management due to COVID-19. Hence we areunable to comment on the discrepancies if any that may arise upon such verification.

(c) According to information and explanations given by the managementand based on the examination of the financial statements/registered deed/transferdeed/conveyance deed/ court approved scheme of arrangements or amalgamations the titledeeds of all freehold land leasehold land and buildings disclosed as property plant andequipment are held in the name of the Company. In respect of immovable properties thathave been taken on lease and disclosed as property plant and equipment in the financialstatement based on our examination of the lease agreements/court approved scheme ofarrangements or amalgamations the lease agreements are in the name of the Company wherethe Company is the lessee in the agreement.

(ii) The Company's business does not involve inventories andaccordingly the requirements under paragraph 3(ii) of the Order are not applicable to theCompany.

(iii) According to the information and explanations given to us theCompany has not granted any loans secured or unsecured to companies firms limitedliability partnerships or other parties covered in the register maintained under section189 of the Companies Act 2013. Accordingly the provisions of clause 3 (iii)

(a) (b) and (c) of the Order are not applicable to the Company andhence not commented upon.

(iv) In our opinion and according to the information and explanationsgiven to us there are no loans investments guarantees and securities granted inrespect of which provisions of section 185 and 186 of the Companies Act 2013 areapplicable and hence not commented upon.

(v) The Company has not accepted any deposits within the meaning ofsections 73 to 76 of the Act and the Companies (Acceptance of Deposits) Rules 2014 (asamended). Accordingly the provisions of clause 3(v) of the Order are not applicable.

(vi) We have broadly reviewed the books of account maintained by theCompany pursuant to the rules made by the Central Government for the maintenance of costrecords under section 148(1) of the Companies Act 2013 related to TelecommunicationServices and are of the opinion that prima facie the specified accounts and records havebeen made and maintained. We have not however made a detailed examination of recordswith a view to determine whether they are accurate or complete.

(vii) (a) The Company has generally been regular in depositing with

appropriate authorities undisputed statutory dues including providentfund employees' state insurance income-tax duty of custom goods and service tax cessand other material statutory dues applicable to it. The provisions relating to sales taxservice tax value added tax and duty of excise are not applicable to the Company.

(b) According to the information and explanations given to us noundisputed amounts payable in respect of provident fund employees' state insuranceincome-tax duty of custom goods and service tax cess and other material statutory dueswere outstanding as at March 312020 for a period of more than six months from the datethey became payable.

(c) According to the records of the Company the dues of income-taxsales-tax service tax duty of custom value added tax goods and service tax and cess onaccount of any dispute are as follows:

<td ALIGN=RIGHT>83
Statute Type of Tax Forum where Dispute is Pending Period to which the amount relates Amount involved (' Mn)
Income Tax Act 1961 Income Tax Appellate Tribunal 2000-01 to 2014-15 2016-17 123009
Income Tax Act 1961 Income Tax Assessing Officer 2003-04 2008-09 2009-10 188
Income Tax Act 1961 Income Tax Assistant Commissioner of Income Tax 2015-16 2017-18 18186
Income Tax Act 1961 Income Tax Calcutta High Court 2003-04 2009-10 to 2012-13 198
Income Tax Act 1961 Income Tax Commissioner of Income Tax (Appeals) 1999-00 to 2018-19 45414
Income Tax Act 1961 Income Tax Deputy Commissioner of Income Tax 1996-97 2002-03 2004-05 2006-07 2009-10 198
Income Tax Act 1961 Income Tax Dispute Resolution Panel 2015-16 1667
Income Tax Act 1961 Income Tax High Court for the State of Telangana 2003-04 to 2008-09 2013-14 2014-15 310
Income Tax Act 1961 Income Tax High court of Andhra Pradesh 2009-10 to 2015-16 271
Income Tax Act 1961 Income Tax High Court of Delhi 2010-11 8
Income Tax Act 1961 Income Tax High Court of Gujarat 2002-03 to 2003-04 2007-08 to 2009-10 294
Income Tax Act 1961 Income Tax High Court of Karnataka 2001-02 to 2002-03 2007-08 to 2014-15 3874
Income Tax Act 1961 Income Tax High Court of Madhya Pradesh 2006-07 to 2008-09 130
Income Tax Act 1961 Income Tax High Court of Punjab & Haryana 2009-10 2010-11 39
Income Tax Act 1961 Income Tax Madras High Court 2006-07 2007-08 2011-12 to 2013-14 116
Income Tax Act 1961 Income Tax Rajasthan High Court 2010-11 2011-12 to 2012-13 44
Income Tax Act 1961 Income Tax Supreme Court of India 2002-03 to 2009-10 2011-12 2012-13 240
Income Tax Act 1961 Income Tax The High Court of Judicature at Patna 2008-09 2009-10 24
Total of Income Tax 194210
The Customs Act 1962 Custom Duty Assistant/Deputy Commissioner of Customs 2012-13 to 2014-15 4
The Customs Act 1962 Custom Duty Commissioner of Customs 2001-02 2004-05 2005-06 2007-08 201213 to 2018-19 153
The Customs Act 1962 Custom Duty Commissioners of Customs (Appeals) 2008-09 to 2015-16 2017-18 to 2019-20 79
The Customs Act 1962 Custom Duty Customs Excise & Service Tax Appellate Tribunal 2006-07 to 2018-19 7157
The Customs Act 1962 Custom Duty Madras High Court 2008-09 7
The Customs Act 1962 Custom Duty Supreme Court of India 2002-03 2006-07 2008-09 205
The Customs Act 1962 Custom Duty Deputy Commissioner of Custom 2014-15

- *

Total of Custom Duty 7606
The Central Excise Act 1944 Excise Duty Assistant Commissioner of Central Excise 1999-00 7
The Central Excise Act 1944 Excise Duty Customs Excise & Service Tax Appellate Tribunal 2003-04 2004-05 8
Total of Excise Duty 15
The Finance Act 1994 Service Tax Adjudicating Authority 2008-09 2011-12 2012-13 25
The Finance Act 1994 Service Tax Assistant Commissioner of Service Tax 2010-11 8
The Finance Act 1994 Service Tax Calcutta High Court 2004-05 to 2007-08 52
The Finance Act 1994 Service Tax Commissioner of Central Excise & Service Tax (Appeals) 2004-05 2005-06 2007-08 to 2009-10 2012-13 to 2015-16
The Finance Act 1994 Service Tax Commissioner of Service Tax (Appeal) 1995-96 to 1999-00 2010-11 to 2016-17 3798
The Finance Act 1994 Service Tax Customs Excise & Service Tax Appellate Tribunal 2001-02 to 2017-18 26744
Statute Type of Tax Forum where Dispute is Pending Period to which the amount relates Amount involved (' Mn)
The Finance Act 1994 Service Tax High Court for the State of Telangana 2007-08 320
The Finance Act 1994 Service Tax High court of Andhra Pradesh 2004-05 to 2008-09 25
The Finance Act 1994 Service Tax High Court of Bombay 1999-00 to 2011-12 2014-15 386
The Finance Act 1994 Service Tax High Court of Delhi 2004-05 to 2011-12 91
The Finance Act 1994 Service Tax High Court of Gujarat 2006-07 to 2007-08 2009-10 2010-11 107
The Finance Act 1994 Service Tax High Court of Karnataka 2004-05 to 2008-09 101
The Finance Act 1994 Service Tax High Court of Kerala 2008-09 31
The Finance Act 1994 Service Tax High Court of Punjab & Haryana 1998-99 2002-03 2004-05 to 2008-09 94
The Finance Act 1994 Service Tax High Court of Judicature at Allahabad 2005-06 to 2007-08 98
The Finance Act 1994 Service Tax Joint Commissioner of Central Excise 2008-09 to 2010-11 24
The Finance Act 1994 Service Tax Madras High Court 2004-05 to 2008-09 167
The Finance Act 1994 Service Tax Supreme Court of India 1999-00 to 2017-18 2131
Total of Service Tax 34285
Rajasthan Goods and Services Tax Act 2017 Goods and Services Tax Commissioner of Commercial Taxes (Appeal) 2017-18 2018-19 3
The Madhya Pradesh Goods and Services Tax Act 2017 Goods and Services Tax Joint Commissioner (Appeals) 2017-18

- *

Uttar Pradesh Goods and Service Tax Act 2017 Goods and Services Tax Additional Commissioner (Appeals) GST 2017-18 to 2018-19 1
Total of Goods and Service Ta x Act 4
Delhi Sales Tax Act 1975 Sales Tax Additional Commissioner (Appeals) 2002-03 2
The Central Sales Tax Act 1956 Sales Tax Amensty Scheme 2012-13 2014-15 1
The Central Sales Tax Act 1956 Sales Tax Appellate and Revisional Board 2009-10 2011-12 2013-14 to 2014-15 12
The Central Sales Tax Act 1956 Sales Tax Appellate Authority 2011-12 2014-16 to 2015 -16 13
The Central Sales Tax Act 1956 Sales Tax Appellate Tribunal 2005-06 to 2009-10 2014-15 - 2015-16 114
The Central Sales Tax Act 1956 Sales Tax Assessing Officer 2007-08 to 2010-11 10
The Central Sales Tax Act 1956 Sales Tax Calcutta High Court 2011-12 2015-16 17
The Central Sales Tax Act 1956 Sales Tax Deputy Commissioner of Commercial Taxes 2011-12 to 2014-15 2016-17 to 2017-18 54
The Central Sales Tax Act 1956 Sales Tax Joint Commissioner of Sales Tax (Appeal) 2007-08 2008-09 2011-12 to 2014-15 2016-17 122
The Central Sales Tax Act 1956 Sales Tax Deputy Commissioner of Sales Tax (Appeal) 2015-16 to 2017-18 22
The Central Sales Tax Act 1956 Sales Tax Commissioner of Commercial Taxes (Appeal) 2010-11 2011-2012 2013-2014 to 2015-16 6
The Central Sales Tax Act 1956 Sales Tax Additional Commissioner Commercial Taxes (Appeal) 2011-12 to 2013-14 - *
The Central Sales Tax Act 1956 Sales Tax Joint excise and taxation commissioner (Appeal) 2012-2013 - *
The Central Sales Tax Act 1956 Sales Tax Trade Tax Tribunal 2010-2011

- *

The Central Sales Tax Act 1956 Sales Tax Assistant commissioner of Commercial Taxes 2013- 14 2015-16 33
The Central Sales Tax Act 1956 Sales Tax Additional Commissioner Commercial Taxes 2011-12 1
Gujarat Sales Tax Act 1969 Sales Tax Appellate Tribunal 1997-98 to 2001-02 9
Statute Type of Tax Forum where Dispute is Pending Period to which the amount relates Amount involved (' Mn)
Madhya Pradesh Commercial Tax Act 1994 Sales Tax Appellate Tribunal 2000-01 2004-05 2
Madhya Pradesh Commercial Tax Act 1994 Sales Tax High Court of Madhya Pradesh 2003-04 2004-05 11
Kerala Sales tax Act 1963 Sales Tax Deputy Commissioner of Commercial Taxes 1998-99

- *

Kerala Sales tax Act 1963 Sales Tax State Tax Tribunal 1997-98

- *

Uttar Pradesh Trade Tax Act 1948 Sales Tax Joint Commissioner (Appeals) 2003-04 1
Andhra Pradesh Value Added Tax Act 2005 Value Added Tax Appellate Tribunal 2002-04 2005-06 to 2009-10 6
Andhra Pradesh Value Added Tax Act 2005 Value Added Tax Commercial Tax Officer 2014-15 - *
Andhra Pradesh Value Added Tax Act 2005 Value Added Tax Joint Commissioner (Appeals) 2014-15 - *
Delhi Value Added Tax Act 2004 Value Added Tax Appellate Tribunal 1997-98 to 2004-05 2006-07 to 2007-08 2010-11 505
Delhi Value Added Tax Act 2004 Value Added Tax Joint Commissioner (Appeals) 2005-06 2007-08 to 2008-09 1
Delhi Value Added Tax Act 2004 Value Added Tax Commissioner of Commercial Taxes (Appeal) 2005-06 2008-09 2009-10 18
Gujarat Value Added Tax Act 2003 Value Added Tax Appellate Tribunal 2006-07 9
Gujarat Value Added Tax Act 2003 Value Added Tax Assessing Officer 20005-06 to 2006-07 1
Gujarat Value Added Tax Act 2003 Value Added Tax Commissioner of Commercial Taxes 2013-14 to 2014-15 6
Gujarat Value Added Tax Act 2003 Value Added Tax Deputy Commissioner of Commercial Taxes 1998-99 8
Gujarat Value Added Tax Act 2003 Value Added Tax State Tax Tribunal 2012-13 to 2013-14 1
Karnataka Value Added Tax Act 2003 Value Added Tax Additional/Joint Commissioner of Commercial Taxes 2012-13 3
Kerala Value Added Tax Act 2003 Value Added Tax Appellate Tribunal 1997-982006-07 2009-10 19
Kerala Value Added Tax Act 2003 Value Added Tax Assistant Commissioner 2013-14 2016-17 1
Kerala Value Added Tax Act 2003 Value Added Tax Assistant Commissioner of Commercial Tax 2008-09 35
Kerala Value Added Tax Act 2003 Value Added Tax Commercial Tax Officer 2011-12 to 2012-13 - *
Kerala Value Added Tax Act 2003 Value Added Tax Deputy Commissioner (Appeals) 2011-12 2014-15 to 2015-16 - *
Kerala Value Added Tax Act 2003 Value Added Tax Deputy Commissioner of Commercial Taxes 2015-16 - *
Kerala Value Added Tax Act 2003 Value Added Tax High Court of Kerala 2011-12 to 2012-13 449
Statute Type of Tax Forum where Dispute is Pending Period to which the amount relates Amount involved (' Mn)
Kerala Value Added Tax Act 2003 Value Added Tax Intelligence Officer 2012-13

- *

Kerala Value Added Tax Act 2003 Value Added Tax Joint Commissioner (Appeals) 2012-13 to 2013-14 1
Kerala Value Added Tax Act 2003 Value Added Tax Deputy Commissioner of Sales Tax 2011-12 1
Kerala Value Added Tax Act 2003 Value Added Tax Commissioner of Commercial Taxes (Appeal) 2007-08 2015-16 to 2016-17 2
Madhya Pradesh Value Added Tax Act 2002 Value Added Tax Appellate Board 2012-13 1
Madhya Pradesh Value Added Tax Act 2002 Value Added Tax High Court of Madhya Pradesh 2011-12 15
Madhya Pradesh Value Added Tax Act 2002 Value Added Tax Joint Commissioner of Sales Tax (Appeal) 2014-15 - *
Madhya Pradesh Value Added Tax Act 2002 Value Added Tax Supreme Court of India 2011-12 to 2013-14 8
Madhya Pradesh Value Added Tax Act 2002 Value Added Tax State Tax Tribunal 2005-06 to 2011-12 65
Madhya Pradesh Value Added Tax Act 2002 Value Added Tax Additional Commissioner Commercial Taxes (Appeal) 2010-11 5
Punjab Value Added Tax Act 2005 Value Added Tax Deputy Commissioner of Commercial Taxes 2012-13 - *
Tamilnadu Value Added Tax Act 2006 Value Added Tax Additional Commissioner of Commercial Taxes 2007-08 to 2011-12 2012-13 2015-16 1
Tamilnadu Value Added Tax Act 2006 Value Added Tax Appellate Authority 2013-14 2
Tamilnadu Value Added Tax Act 2006 Value Added Tax Appellate Tribunal 2003-04 - *
The Bihar Value Added Tax Act 2005 Value Added Tax Appellate Tribunal 2008-09 to 2017-18 109
The Bihar Value Added Tax Act 2005 Value Added Tax Deputy Commissioner of Commercial Taxes 2005-06 to 2007-08 2
The Bihar Value Added Tax Act 2005 Value Added Tax Joint Commissioner of Sales Tax (Appeal) 2016-17 - *
The Bihar Value Added Tax Act 2005 Value Added Tax Commissioner of Commercial Taxes (Appeal) 2011-12 2014-15 2016-17 4
The Haryana Value Added Tax Act 2003 Value Added Tax Assessing Officer 2002-03 to 2005-06 80
The Haryana Value Added Tax Act 2003 Value Added Tax Joint Commissioner of Sales Tax (Appeal) 2006-07 to 2007-08 10
The Haryana Value Added Tax Act 2003 Value Added Tax Deputy Commissioner Appeals 2010-11 14
The Haryana Value Added Tax Act 2003 Value Added Tax High court of Punjab and Haryana 2006-07 to 2008-09 76
The Maharashtra Value Added Tax Act 2002 Value Added Tax Appellate Tribunal 2010-11 11
The Maharashtra Value Added Tax Act 2002 Value Added Tax Joint Commissioner of Sales Tax (Appeal) 2001-02 to 2004-05 2007-08 to 2008-09 2013-14 24
Statute Type of Tax Forum where Dispute is Pending Period to which the amount relates Amount involved (' Mn)
The Rajasthan Value Added Tax Act 2003 Value Added Tax Assistant Commercial Taxes Officer 2015-16

- *

The Rajasthan Value Added Tax Act 2003 Value Added Tax Commercial Taxes Officer 2001-02 1
The Uttar Pradesh Value Added Tax Act 2007 Value Added Tax Additional Commissioner Commercial Tax 2009-10 2016-17 1
The Uttar Pradesh Value Added Tax Act 2007 Value Added Tax Additional Commissioner of Commercial Taxes 2007-08

- *

The Uttar Pradesh Value Added Tax Act 2007 Value Added Tax Deputy Commissioner of Commercial Taxes 2008-09 2011-12 6
The Uttar Pradesh Value Added Tax Act 2007 Value Added Tax High Court of Judicature at Allahabad 2003-04 to 2004-05 2
The Uttar Pradesh Value Added Tax Act 2007 Value Added Tax Joint Commissioner of Sales Tax (Appeal) 2005-06 to 2006-07 2009-10 2014-15 1
The Uttar Pradesh Value Added Tax Act 2007 Value Added Tax Commissioner of Commercial Taxes (Appeal) 2008-09 25
The Uttar Pradesh Value Added Tax Act 2007 Value Added Tax Trade Tax Tribunal 2005-06 to 2007-08 2009-10 2012-13 127
Uttar Pradesh Value Added Act 2008 Value Added Tax Additional Commissioner (Appeals) 2010-11 to 2015-16 2017-18 10
Uttar Pradesh Value Added Act 2008 Value Added Tax Appellate Tribunal 2005-06 to 2007-08 1
Uttar Pradesh Value Added Act 2008 Value Added Tax High Court of Judicature at Allahabad 2006-07 to 2007-08 1
Uttar Pradesh Value Added Act 2008 Value Added Tax Deputy Commissioner of Sales Tax 2005-06 to 2018-19 22
Uttar Pradesh Value Added Act 2008 Value Added Tax Deputy Commissioner Appeals 2016-17 - *
West Bengal Value Added Tax Act 2003 Value Added Tax Appellate and Revisional Board 2006-07 2009-10 to 2011-12 2013-14 to 2015-16 21
West Bengal Value Added Tax Act 2003 Value Added Tax Appellate Tribunal 2007-08 2011-12 2015-16 2017-18 39
West Bengal Value Added Tax Act 2003 Value Added Tax Calcutta High Court 2000-02 to 2002-03 250
West Bengal Value Added Tax Act 2003 Value Added Tax Joint Commissioner of Sales Tax (Appeal) 2008-09 to 2009-10 2012-13 1
West Bengal Value Added Tax Act 2003 Value Added Tax Commissioner of Commercial Taxes (Appeal) 2016-17 to 2017-18 42
West Bengal Value Added Tax Act 2003 Value Added Tax Joint Commissioner of Commercial Taxes 2008-09 2014-15 - *
Rajasthan Value Added Tax 2003 Value Added Tax Assistant Commercial Taxes Officer 2011-12 to 2013-14 - *
The Odissa Value Added Tax 2004 Value Added Tax Joint Commissioner (Appeals) 2012-13 - *
Total of Sales Tax & Value Added Tax 2477

*Numbers are below one million under the rounding off conventionadopted by the Company and accordingly not reported.

Of the above cases total amount deposited in respect of Income Tax

is Rs. 71954 Mn Service Tax is Rs. 1976 Mn Sales Tax Value AddedTax

and Goods and Service Tax Act is Rs. 294 Mn Custom Duty is Rs. 329 Mn.

(viii) In our opinion and according to the information and explanationsgiven by the management the Company has not defaulted in repayment of dues to financialinstitutions banks debenture holders or government.

(ix) In our opinion and according to the information and explanationsgiven by the management the Company has utilized the monies raised by way of furtherpublic offer (Rights Issue) for the purposes for which they were raised. The Company hasnot raised any money by way of initial public offer debt instruments and term loans.

(x) Based upon the audit procedures performed for the purpose ofreporting the true and fair view of the financial statements and according to theinformation and explanations given by the management we report that no fraud by theCompany or on the Company by the officers and employees of the Company has been noticed orreported during the year.

(xi) Based on our audit procedures performed for the purpose ofreporting the true and fair view of the financial statements and according to theinformation and explanations given by the management we report that during the currentyear the managerial remuneration has been paid/provided in accordance with the requisiteapprovals mandated by the provisions of section 197 read with Schedule V to the CompaniesAct 2013.

(xii) In our opinion the Company is not a nidhi company. Thereforethe provisions of clause 3 (xii) of the Order are not applicable to the Company and hencenot commented upon.

(xiii) Based on our audit procedures performed for the purpose ofreporting the true and fair view of the financial statements and according to theinformation and explanations given by

the management transactions with the related parties are in compliancewith section 177 and 188 of the Companies Act 2013 where applicable and the details havebeen disclosed in the notes to the financial statements as required by the applicableaccounting standards.

(xiv) According to the information and explanations given to us and onan overall examination of the balance sheet the Company has not made any preferentialallotment or private placement of shares or fully or partly convertible debentures duringthe year under review and hence reporting requirements under clause 3(xiv) are notapplicable to the company and hence not commented upon.

(xv) Based on our audit procedures performed for the purpose ofreporting the true and fair view of the financial statements and according to theinformation and explanations given by the management the Company has not entered into anynon-cash transactions with directors or persons connected with him as referred to insection 192 of Companies Act 2013.

(xvi) According to the information and explanations given to us theprovisions of section 45-IA of the Reserve Bank of India Act 1934 are not applicable tothe Company.

For S.R. Batliboi & Associates LLP

Chartered Accountants

ICAI Firm Registration Number: 101049W/E300004

per Nilangshu Katriar

Partner

Membership Number: 58814

UDIN: 20058814AAAABR5503

Place: Mumbai

Date: June 30 2020

Annexure 2 to the Independent Auditor's Report

of even date on the Standalone Financial Statements of Vodafone IdeaLimited

Report on the Internal Financial Controls under Clause (i) ofSubsection 3 of Section 143 of the Companies Act 2013 ("the Act")

We have audited the internal financial controls over financialreporting of Vodafone Idea Limited (formerly known as Idea Cellular Limited) ("theCompany") as of March 312020 in conjunction with our audit of the standalonefinancial statements of the Company for the year ended on that date.

Management's Responsibility for Internal Financial Controls

The Company's Management is responsible for establishing andmaintaining internal financial controls based on the internal control over financialreporting criteria established by the Company considering the essential components ofinternal control stated in the Guidance Note on Audit of Internal Financial Controls OverFinancial Reporting issued by the Institute of Chartered Accountants of India. Theseresponsibilities include the design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the orderly and efficientconduct of its business including adherence to the Company's policies the safeguardingof its assets the prevention and detection of frauds and errors the accuracy andcompleteness of the accounting records and the timely preparation of reliable financialinformation as required under the Companies Act 2013.

Auditor's Responsibility

Our responsibility is to express an opinion on the Company's internalfinancial controls over financial reporting with reference to these standalone financialstatements based on our audit. We conducted our audit in accordance with the Guidance Noteon Audit of Internal Financial Controls Over Financial Reporting (the "GuidanceNote") and the Standards on Auditing as specified under section 143(10) of theCompanies Act 2013 to the extent applicable to an audit of internal financial controlsand both issued by the Institute of Chartered Accountants of India. Those Standards andthe Guidance Note require that we comply with ethical requirements and plan and performthe audit to obtain reasonable assurance about whether adequate internal financialcontrols over financial reporting with reference to these standalone financial statementswas established and maintained and if such controls operated effectively in all materialrespects.

Our audit involves performing procedures to obtain audit evidence aboutthe adequacy of the internal financial controls over financial reporting with reference tothese standalone financial statements and their operating effectiveness. Our audit ofinternal financial

controls over financial reporting included obtaining an understandingof internal financial controls over financial reporting with reference to these standalonefinancial statements assessing the risk that a material weakness exists and testing andevaluating the design and operating effectiveness of internal control based on theassessed risk. The procedures selected depend on the auditor's judgement including theassessment of the risks of material misstatement of the financial statements whether dueto fraud or error.

We believe that the audit evidence we have obtained is sufficient andappropriate to provide a basis for our audit opinion on the internal financial controlsover financial reporting with reference to these standalone financial statements.

Meaning of Internal Financial Controls Over Financial Reporting WithReference to these Financial Statements

A company's internal financial control over financial reporting withreference to these standalone financial statements is a process designed to providereasonable assurance regarding the reliability of financial reporting and the preparationof financial statements for external purposes in accordance with generally acceptedaccounting principles. A company's internal financial control over financial reportingwith reference to these standalone financial statements includes those policies andprocedures that (1) pertain to the maintenance of records that in reasonable detailaccurately and fairly reflect the transactions and dispositions of the assets of thecompany; (2) provide reasonable assurance that transactions are recorded as necessary topermit preparation of financial statements in accordance with generally acceptedaccounting principles and that receipts and expenditures of the company are being madeonly in accordance with authorisations of management and directors of the company; and (3)provide reasonable assurance regarding prevention or timely detection of unauthorisedacquisition use or disposition of the company's assets that could have a material effecton the financial statements.

Inherent Limitations of Internal Financial Controls Over FinancialReporting With Reference to these Standalone Financial Statements

Because of the inherent limitations of internal financial controls overfinancial reporting with reference to these standalone financial statements including thepossibility of collusion or improper management override of controls materialmisstatements due to error or fraud may occur and not be detected. Also projections ofany evaluation of the internal financial controls over financial reporting with

reference to these standalone financial statements to future periodsare subject to the risk that the internal financial control over financial reporting withreference to these standalone financial statements may become inadequate because ofchanges in conditions or that the degree of compliance with the policies or proceduresmay deteriorate.

Opinion

In our opinion the Company has in all material respects adequateinternal financial controls over financial reporting with reference to these standalonefinancial statements and such internal financial controls over financial reporting withreference to these standalone financial statements were operating effectively as at March312020 based on the internal control over financial reporting criteria established bythe Company considering the essential components of internal

control stated in the Guidance Note on Audit of Internal FinancialControls Over Financial Reporting issued by the Institute of Chartered Accountants ofIndia.

For S.R. Batliboi & Associates LLP

Chartered Accountants

ICAI Firm Registration Number: 101049W/E300004

per Nilangshu Katriar

Partner

Membership Number: 58814 UDIN: 20058814AAAABR5503

Place: Mumbai

Date: June 30 2020