BHARTI AIRTEL LIMITED

AUDIT - An audit involves performing procedures to obtain audit evidence about the
amounts and disclosures in the financial statements. The procedures selected depend on the
auditors judgment, including the assessment of the risks of material misstatement of the
financial statements, whether due to fraud or error. In making those risk assessments, the
auditor considers internal control relevant to the Companys preparation and fair presentation
of the financial statements in order to design audit procedures that are appropriate in the
circumstances. An audit also includes evaluating the appropriateness of accounting policies
used and the reasonableness of the accounting estimates made by management, as well as
evaluating the overall presentation of the financial statements.

AUDIT REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS

Explanation of audit report of Bharti Airtel Limited ('Bharti Airtel' or 'the Company') as at
March 31, 2013 .
The Company has maintained proper records showing full particulars with respect to
most of its fixed assets, however, is in the process of updating quantitative and
situation details with respect to certain fixed assets in the records maintained by the
Company.

The Company has physical verification programme of covering all fixed assets over a
period of three years. Pursuant to the programme, during the year, a substantial
portion of planned physical verification of fixed assets and capital work in progress
has been conducted by the management which is reasonable having regard to the size
of the Company and the nature of its assets. No material discrepancies were noticed
on such verification.

There was no substantial disposal of fixed assets during the year. Disposal of a fixed
asset is the withdrawal of a fixed asset from use upon the completion of its useful life
or due to lower productivity in its later life.

The inventory (other than inventory with third parties) has been physically verified
by the management during the year. The frequency of verification is reasonable.

The procedures of physical verification of inventory followed by the management are
reasonable and adequate in relation to the size of the Company and the nature of its
business.

The Company is maintaining proper records of inventory and no material
discrepancies were noticed on physical verification.

According to the information and explanations given to auditors , the Company has
neither granted nor taken any loans, secured or unsecured, to or from companies,
firms or other parties covered in the register maintained under Section 301 of the Act.
Accordingly, Clause (iii) of the Companies (Auditors Report) Order, 2003,
(amended) are not applicable to the Company for the current year and hence not
commented upon.

In the opinion of auditors and according to the information and explanations given to
them, having regard to the explanation that certain items purchased are of special
nature for which suitable alternative sources do not exist for obtaining comparative
quotations, there is an adequate internal control system commensurate with the size of
the Company and the nature of its business for the purchase of inventory, fixed assets
and for the sale of goods and services. During the course of audit, auditors neither
observed nor have been informed of any major weakness or continuing failure to
correct any major weaknesses in the aforesaid internal control system.

Total amount deposited in respect of sales tax is Rs 231 Mn, Service tax is Rs 54 Mn,
Income Tax is Rs 9,293 Mn and Custom Duty is Rs 2,222 Mn.

The Company has not accepted any deposits from the public within the meaning of
Sections 58A and 58AA of the Act and the rules framed there under.


In the opinion of auditors, the Company has an internal audit system commensurate
with the size and nature of its business.

The auditors have broadly reviewed the books of accounts maintained by Company
pursuant to the rules made by the Central Government for the maintenance of cost
records under Section 209(1) (d) of the Companies Act, 1956 and are of the opinion
that prima facie, the prescribed accounts and records have been made and maintained.


The Company is generally regular in depositing with appropriate authorities
undisputed statutory dues including provident fund, investor education and protection
fund, employees state insurance, income-tax, sales-tax, wealth-tax, service tax,
customs duty and cess and other material statutory dues applicable to it. The
provisions relating to excise duty is not applicable to the Company.

According to the information no undisputed amounts payable in respect of provident
fund, investor education and protection fund, employees state insurance, income-tax,
sales-tax, wealth-tax, service tax, customs duty, cess and other material undisputed
statutory dues were outstanding, at the year end, for a period of more than six months
from the date they became payable.

The Company has no accumulated losses at the end of the financial year and it has
not incurred cash losses in the current and immediately preceding financial year.

Based on the audit procedures and as per the information and explanations given by
the management, the Company has not defaulted in repayment of dues to a financial
institution, bank or debenture holders.

According to the information and explanations given and based on the documents
and records produced to us, the Company has not granted loans and advances on the
basis of security by way of pledge of shares, debentures and other securities.

According to the information and explanations given to us and on overall examination
of the balance sheet of the Company, we report that funds amounting to Rs 114,045
million raised on short-term basis (primarily represented by capital creditors, short
term borrowings from one of its subsidiary, deferred revenue and trade creditors)
have been used for long-term investment (primarily represented by fixed asset and
investment in its subsidiaries).

The Company has not made any preferential allotment of shares to parties or
companies covered in the register maintained under Section 301 of the Companies
Act, 1956.

The Company did not have any outstanding debentures during the year.


The Company has not raised any money by public issues during the year.


Based upon the audit procedures performed for the purpose of reporting the true and
fair view of the financial statements and as per the information and explanations given
by the management, we report that no fraud by the Company and no material fraud on
the Company has been noticed or reported during the year.