Bharti Airtel
BSE: 532454 | NSE: BHARTIARTL | ISIN: INE397D01024 | Telecommunications - Service
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| Auditor's Report | Year End : Mar '09 |
1. We have audited the attached Balance Sheet of Bharti Airtel Limited
(‘the Company’) as at March 31, 2009 and also the Profit and Loss
account and the Cash Flow Statement for the year ended on that date
annexed thereto. These financial statements are the responsibility of
the Company’s management. Our responsibility is to express an opinion
on these financial statements based on our audit.
2. We conducted our audit in accordance with auditing standards
generally accepted in India. Those Standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
3. As required by the Companies (Auditor’s Report) Order, 2003 (as
amended) issued by the Central Government of India in terms of
sub-section (4A) of Section 227 of the Companies Act, 1956, we enclose
in the Annexure a statement on the matters specified in paragraphs 4
and 5 of the said Order.
4. Further to our comments in the Annexure referred to above, we
report that:
i. We have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the purposes of our
audit;
ii. In our opinion, proper books of account as required by law have
been kept by the Company so far as appears from our examination of
those books;
iii. The balance sheet, profit and loss account and cash flow statement
dealt with by this report are in agreement with the books of account;
iv. In our opinion, the balance sheet, profit and loss account and cash
flow statement dealt with by this report comply with the accounting
standards referred to in sub-section (3C) of section 211 of the
Companies Act, 1956;
v. On the basis of the written representations received from the
directors, as on March 31, 2009, and taken on record by the Board of
Directors, we report that none of the directors is disqualified as on
March 31, 2009 from being appointed as a director in terms of clause
(g) of sub-section (1) of section 274 of the Companies Act, 1956.
vi. In our opinion and to the best of our information and according to
the explanations given to us, the said accounts give the information
required by the Companies Act, 1956, in the manner so required and give
a true and fair view in conformity with the accounting principles
generally accepted in India;
a) in the case of the balance sheet, of the state of affairs of the
Company as at March 31, 2009;
b) in the case of the profit and loss account, of the profit for the
year ended on that date; and
c) in the case of the cash flow statement, of the cash flows for the
year ended on that date.
Annexure referred to in paragraph 3 of our report of even date
Re: BHARTI AIRTEL LIMITED
(i) (a) The Company has maintained proper records showing full
particulars, including quantitative details and situation of fixed
assets.
(b) The capitalised fixed assets are physically verified by the
management according to a regular programme designed to cover all the
items over a period of three years. During the year, the management had
also designed a plan to physically verify capital work in progress.
Pursuant to the above, a portion of fixed assets and capital work in
progress has been physically verified by the management during the
year, which in our opinion is reasonable having regard to the size of
the company and nature of its assets. As informed, no material
discrepancies were noticed on such verification.
(c) There was no substantial disposal of fixed assets during the year.
(ii) (a) The inventory (other than stocks with third parties) has been
physically verified by the management during the year. In our opinion,
the frequency of verification is reasonable.
(b) 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.
(c) The Company is maintaining proper records of inventory and no
material discrepancies were noticed on physical verification.
(iii) The Company has neither granted nor taken any loans, secured or
unsecured, to companies, firms or other parties covered in the register
maintained under section 301 of the Companies Act, 1956. Accordingly,
clauses (iii) of the Companies (Auditor’s Report) Order, 2003, as
amended by the Companies (Auditor’s Report) (Amendment) Order, 2004 are
not applicable to the Company for the current year.
(iv) In our opinion and according to the information and explanations
given to us, 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. Further, on the basis of our examination of the books and
records of the Company, and according to the information and
explanations given to us, we have neither come across nor have been
informed of any continuing failure to correct major weaknesses in the
aforesaid internal control system.
(v) According to the information and explanations provided by the
management, there are no transactions pursuant to contracts or
arrangements referred to in section 301 that are required to be entered
in the register maintained under section 301 of the Companies Act,
1956.
(vi) The Company has not accepted any deposits from the public within
the meaning of Sections 58A and 58AA of the Companies Act, 1956 and the
rules framed there under.
(vii) In our opinion, the Company has an internal audit system
commensurate with the size and nature of its business.
(viii) We 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. We have not,
however, made a detailed examination of records with a view to
determine whether they are accurate or complete.
(ix) (a) 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, cess and other material statutory dues applicable to it though
there has been delays in few cases. The provisions relating to excise
duty is not applicable to the Company.
(b) According to the information and explanations given to us, no
undisputed amounts payable in respect of provident fund, employees’
state insurance, income-tax, wealth-tax, service tax, sales-tax,
customs duty, cess and other undisputed statutory dues were
outstanding, at the year end, for a period of more than six months from
the date they became payable.
(c) According to the records of the Company, the dues outstanding of
income-tax, sales-tax, wealth-tax, service tax, customs duty and cess
on account of any dispute, are as follows (also refer Note 3(b) on
Schedule 21):
(x) 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 years.
(xi) Based on our audit procedures and as per the information and
explanations given by the management, we are of the opinion that the
Company has not defaulted in repayment of dues to a financial
institution, bank or debenture holders.
(xii) According to the information and explanations given to us 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.
(xiii) In our opinion, the Company is not a chit fund or a nidhi /
mutual benefit fund / society. Therefore, the provisions of clause
4(xiii) of the Companies (Auditor’s Report) Order, 2003 (as amended)
are not applicable to the Company.
(xiv) In our opinion, the Company is not dealing in or trading in
shares, securities, debentures and other investments. Accordingly, the
provisions of clause 4(xiv) of the Companies (Auditor’s Report) Order,
2003 (as amended) are not applicable to the Company.
(xv) According to the information and explanations given to us, the
Company has given guarantee for loans taken by others from banks and
financial institutions, the terms and conditions whereof in our opinion
are not prima-facie prejudicial to the interest of the Company.
(xvi) Based on information and explanations given to us by the
management, term loans were applied for the purpose for which the loans
were obtained.
(xvii) According to the information and explanations given to us and on
overall examination of the balance sheet of the Company, funds
amounting to Rs. 32,149,875 thousand raised on short-term basis
(primarily represented by capital creditors) have been used for
long-term investment (primarily represented by fixed assets).
(xviii) 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.
(xix) The Company has created security or charge in respect of
debentures outstanding at the year end.
(xx) The Company has not raised any money by public issues during the
year.
(xxi) According to the information and explanations furnished by the
management, which have been relied upon by us, there were no frauds on
or by the Company noticed or reported during the course of our audit
except few cases of fraud by employees estimated at Rs. 13,095 thousand
and by external parties Rs. 150,516 thousand detected by the management
for which appropriate steps were taken to strengthen controls and Rs.
6,100 thousand, out of such estimated amounts, has been recovered by
the Company during the year.
For S.R. BATLIBOI & ASSOCIATES
Chartered Accountants
per Prashant Singhal
Partner
Membership No.: 93283
Place : New Delhi
Date : April 29, 2009 |
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| Source : Religare Technova | |
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