Vodafone Idea Ltd. - Quarterly/Annual Result Disclosures and Notes dated 31 Dec 2023
Auditor and Management Disclosures and Notes for the quarterly results dated 31 Dec 2023
Notes
1. The above unaudited financial results, as reviewed by the Audit Committee of the Board, were approved and taken on
record by the Board of Directors at their meeting held on 29th January, 2024.
2. Pursuant to the cabinet reforms on telecom and the resultant moratorium on spectrum installment (excluding the
auctions of 2021, 2022) and on AGR demands till FY 16-17 (affidavit period), following which, the Company had
conveyed its acceptance for the conversion option and allotted equity shares to the Government of India during the
previous year. Also, the AGR demands beyond the affidavit period i.e. FY 17-18 and FY 18-19, which are also part of the
four year moratorium but without availment of equity conversion option of the interest related to such deferment are
subject to further correction/revision on account of disposal of representations and any other outcome of litigation. The
undisputed amounts as finally determined by 31st December, 2025 shall be paid in six equal instalments post the
moratorium period. The review petition already filed with the Hon’ble Supreme Court to hear the modification
application on correction of manifest / clerical / arithmetic errors in the computation of AGR demands for the years
covered in the judgement is pending to be heard.
3. The Company has incurred a loss of Rs. 235,574 Mn for the ninemonths ended 31
st December, 2023. Its net worth stands
at negative Rs. 974,046 Mn and the Net Working Capital (excluding short term borrowings, future lease liability and
certain accruals toward pending litigations) stands at negative Rs. 165,156 Mn.
As at 31
st December, 2023, the total external debt (including interest accrued but not due) of the Company stands at
Rs. 2,149,640 Mn. As at 31
st December, 2023, an amount of Rs. 27,676 Mn (31st March, 2023: Rs. 39,271 Mn) has been
reclassified from non-current borrowings to current maturities of long-term debt for not meeting certain covenant
clauses under the financial agreements. The Company has exchanged correspondences and continues to be in
discussion with the lenders for next steps/waivers. The existing debt as payable by 31
st December, 2024 is
Rs. 53,854 Mn (excluding amount classified as current on account of not meeting certain covenant clauses). As of date,
the Company has met all its debt obligations payable to its lenders / banks and financial institutions along with
applicable interest. The Company has utilized extended credit period to discharge some of its contractual obligations.
Further, certain vendors have asked for payment of their overdue outstanding. The Company continues to be in
discussion with them to agree to a payment plan. Further, one of the promoters has confirmed its financial support to
the extent of Rs. 20,000 Mn.
3.The Company’s ability to continue as a going concern is dependent on raising additional funds as required, successful
negotiations with lenders and vendors for continued support and generation of cash flow from operations that it needs
to settle its liabilities as they fall due. Pending the outcome of the above matters, these financial results have been
prepared on a Going Concern basis.
4. Exceptional Items for the quarter ended 31st December, 2023 represents gain of Rs. 7,555 Mn arising out of the Telecom Disputes Settlement and Appellate Tribunal (TDSAT) ruling and accepted by the Department of Telecommunications (DoT).
5. The Company operates only in one reportable segment i.e. Mobility and hence no separate disclosure is required for
Segments.
6. Previous period figures have been regrouped and rearranged wherever necessary.