1.  CORPORATE INFORMATION
 
 Bharti Airtel Limited (''the Company'') incorporated in India on July 7,
 1995, is a company promoted by Bharti Telecom Limited (''BTL''), a
 company incorporated under the laws of India. The Company''s shares are
 publicly traded on the National Stock Exchange (''NSE'') and the Bombay
 Stock Exchange (''BSE''), India. The Registered office of the Company is
 situated at Bharti Crescent, 1, Nelson Mandela Road, Vasant Kunj, Phase
 - II, New Delhi - 110070.
 
 The Company is a leading telecommunication service provider in India
 providing telecommunication systems and services.
 
 2.  BASIS OF PREPARATION
 
 The financial statements of the Company have been prepared in
 accordance with the generally accepted accounting principles in India
 (Indian GAAP). The financial statements have been prepared to comply in
 all material respects with the accounting standards notified under the
 Companies (Accounting Standards) Rules, 2006, (''as amended'') and the
 relevant provisions of the Companies Act, 1956. The financial
 statements have been prepared under the historical cost convention on
 an accrual basis except in case of assets for which revaluation is
 carried out. The accounting policies have been consistently applied by
 the Company and are consistent with those used in the previous year,
 except for the change as explained in note 2.1 (a) below.
 
 3.  INFORMATION ABOUT BUSINESS SEGMENTS-PRIMARY
 
 Segment Definitions:
 
 The Company''s operating businesses are organized and managed separately
 according to the nature of products and services provided, with each
 segment representing a strategic business unit that offers different
 products and serves different markets.
 
 Mobile Services - These services cover voice and data telecom services
 provided through GSM technology in India. This includes the captive
 national long distance networks which primarily provide connectivity to
 the mobile services business in India.
 
 Telemedia Services - These services cover voice and data communications
 based on fixed network and broadband technology.
 
 Airtel Business - These services cover end-to-end telecom solutions
 being provided to large Indian and global corporations by serving as a
 single point of contact for all telecommunication needs across data and
 voice (domestic as well as international long distance), network
 integration and managed services.
 
 a.  Terms/rights attached to equity shares
 
 The Company has only one class of equity shares having par value of Rs. 5
 per share. Each holder of equity shares is entitled to one vote per
 share. The Company declares and pays dividend in Indian rupees. The
 dividend proposed by the Board of Directors is subject to approval of
 the shareholders in the ensuing annual general meeting.
 
 During the year ended March 31, 2012, the amount of dividend per share
 recognized as distributions to equity shareholders was Rs. 1.00 (March
 31, 2011 Rs. 1.00).
 
 a.  ''Others'' under secured loans represent vehicle loans from bank
 which are secured by hypothecation of vehicles of the Company.
 
 b.  Details on analysis of borrowings i.e. Maturity profile, interest
 rate and currency of borrowings
 
 c.  The borrowings of Rs. 94,058 Mn outstanding as of March 31, 2012 is
 repayable in 338 half yearly installments (borrowings of Rs. 91,331 Mn
 outstanding as of March 31, 2011 includes borrowings of Rs. 84,996 Mn
 repayable in 388 half yearly instalments and borrowings of Rs. 6,335 Mn
 repayable in 2 bullet instalments).
 
 b.  MAT credit includes income of Rs. 333 Mn (March 31, 2011 Rs. 345 Mn)
 relating to earlier years and current tax includes income of Rs. 29 Mn
 (March 31, 2011 Rs. 13 Mn) relating to earlier years.
 
 c.  During the year ended March 31, 2012, the Company has changed the
 trigger date for earlier years for certain business units enjoying
 Income tax holiday under the Indian tax laws. Accordingly, income tax
 credit of Rs. 903 Mn pertaining to earlier years has been recognized
 during the year ended March 31, 2012.
 
 a.  ''Others'' include rent equalization reserve of Rs. 10,692 Mn as of
 March 31, 2012 (Rs. 8,333 Mn as of March 31, 2011).
 
 b.  Security deposit Rs. 5,091 Mn (March 31, 2011 Rs. 2,755 Mn) included
 under ''Security deposit received'', represents refundable security
 deposits received from subscribers on activation of connections granted
 thereto and are repayable on disconnection, net of outstanding, if any
 and security deposits received from channel partners. Trade receivables
 are secured to the extent of the amount outstanding against individual
 subscribers by way of security deposit received from them.
 
 The Company uses various premises on lease to install the equipment. A
 provision is recognized for the costs to be incurred for the
 restoration of these premises at the end of the lease period. It is
 expected that this provision will be utilized at the end of the lease
 period of the respective sites as per the respective lease agreements.
 The movement of provision in accordance with AS-29 Provisions,
 Contingent liabilities and Contingent Assets'' notified under Companies
 (Accounting Standards) Rules, 2006 (''as amended'') , is given below:
 
 a.  Freehold Land and Building includes Rs. 226 Mn (March 31, 2011 Rs. 368
 Mn) and Rs. 559 Mn (March 31, 2011 Rs. 594 Mn) respectively, in respect of
 which registration of title in favour of the Company is pending
 
 b.  Building includes building on leashold land:
 
 Gross Block Rs. 1,872 Mn (March 31, 2011 Rs. 1,838 Mn)
 
 Depreciation charge for the year Rs. 237 Mn (March 31, 2011 Rs. 233 Mn)
 
 Accumulated depreciation Rs. 947 Mn (March 31, 2011 Rs. 710 Mn)
 
 Net book value Rs. 925 Mn (March 31, 2011 Rs. 1,128 Mn)
 
 c.  Reclassification/Adjustment includes reclass of assets between
 category of assets. During the year ended March 31, 2011, Rs. 3,866 Mn
 and Rs. 1,149 Mn gross block and accumulated depreciation respectively,
 has been reclassified from tangible assets to intangible assets.
 
 d.  Capital work in progress includes goods in transit Rs. 785 Mn (March
 31, 2011 Rs. 1,174 Mn).
 
 e.  Refer note 9, 38 and 46 for ARO, jointly owned assets and assets
 given on operating lease.
 
 a.  The remaining amortisation period of licence fees as at March 31,
 2012 ranges between 3 to 13 years for Unified Access Service Licences,
 10 years for Long Distance Licences, 18.4 years for 3G spectrum fees.
 
 b.  Licences includes Net Block of 3G spectrum fees of Rs. 116,106 Mn as
 on March 31, 2012 (March 31, 2011 Rs. 105,795 Mn).
 
 c.  Capitalised borrowing costs
 
 The borrowing cost capitalised during the year ended March 31, 2012 was
 Rs. 1,565 Mn (March 31, 2011 Rs. 4,314 Mn). The Company capitalized this
 borrowing cost in the intangible assets under development. The amount
 of borrowing cost included in intangible assets under development is Rs.
 2,293 Mn (March 31, 2011 Rs. 1,269 Mn).
 
 d.  Reclassification/Adjustment includes reclass of assets between
 category of assets. During the year ended March 31, 2012, Rs. 1,380 Mn
 and Rs. 241 Mn gross block and accumulated depreciation respectively, has
 been reclassified from intangible assets to capital advances (refer
 note 17 Long-term loans and advances) in respect of deactivated
 band with links (March 31, 2011, Rs. 3,866 Mn and Rs. 1,149 Mn gross block
 and accumulated depreciation respectively, has been reclassified from
 tangible assets to intangible assets).
 
 4.  CONTINGENT LIABILITIES
 
 (i) Total Guarantees outstanding as at March 31, 2012 amounting to Rs.
 27,158 Mn (March 31, 2011 - Rs. 25,140 Mn) have been issued by banks and
 financial institutions on behalf of the Company.
 
 Corporate Guarantees outstanding as at March 31, 2012 amounting to Rs.
 481,376 Mn (March 31, 2011 - Rs. 452,314 Mn) have been given to banks,
 financial institutions and third parties on behalf of Group Companies
 at no cost to the latter.
 
 (ii) Claims against the Company not acknowledged as debt (Excluding
 cases where the possibility of any outflow in settlement is remote):
 
 Unless otherwise stated below, the management believes that, based on
 legal advice, the outcome of these contingencies will be favorable and
 that a loss is not probable.
 
 Post the Hon''ble Supreme Court Judgement on October 11, 2011 on
 components of Adjusted Gross Revenue for computation of License fee,
 based on the legal advice, the Company believes that the realized and
 unrealized foreign exchange gain should not be included in Adjusted
 Gross Revenue (AGR) for computation of license fee thereon.
 Accordingly, the license fee on such foreign exchange gain has not been
 provided in these financial statements. Also, due to ambiguity of
 interpretation of ''foreign exchange differences'', the license fee
 impact on such exchange difference is not quantifiable and has not been
 included in the table above.
 
 b) Sales tax
 
 The claims for sales tax as at March 31, 2012 comprised the cases
 relating to:
 
 i.  the appropriateness of the declarations made by the Company under
 the relevant sales tax legislations which was primarily procedural in
 nature;
 
 ii.  the applicable sales tax on disposals of certain property and
 equipment items;
 
 iii. lease circuit/broadband connectivity services;
 
 iv.  the applicability of sales tax on sale of SIM cards, SIM
 replacements, VAS, Handsets and Modem rentals;
 
 v.  In the State of J&K, the Company has disputed the levy of General
 Sales Tax on its telecom services and towards which the Company has
 received a stay from the Hon''ble J&K High Court. The demands received
 to date have been disclosed under contingent liabilities. Based on the
 Company''s evaluation, it believes that it is not probable that the
 claim will materialise and therefore, no provision has been recognised.
 
 c) Service tax
 
 The service tax demands as at March 31, 2012 relate to:
 
 i.  cenvat claimed on tower and related material,
 
 ii.  levy of service tax on SIM cards,
 
 iii. cenvat credit disallowed for procedural lapses and inadmissibility
 of credit,
 
 iv.  disallowance of cenvat credit used in excess of 20% limit, and
 
 v.  employee talk time.
 
 d) Income tax demand under appeal
 
 Income tax demands under appeal mainly included the appeals filed by
 the Company before various appellate authorities against the
 disallowance of certain expenses being claimed under tax by income tax
 authorities, non-deduction of tax at source with respect to
 dealers/distributor''s margin and non-deduction of tax on payments to
 international operators for access charges etc. The management believes
 that, based on legal advice, its tax positions will be sustained and
 accordingly, recognition of a provision for those tax positions will
 not be appropriate.
 
 e) Custom duty
 
 The custom authorities, in some states, demanded Rs. 2,198 Mn as at March
 31, 2012 (March 31, 2011 - Rs. 2,198 Mn) for the imports of special
 software on the ground that this would form part of the hardware along
 with which the same has been imported. The view of the Company is that
 such imports should not be subject to any custom duty as it would be an
 operating software exempt from any custom duty. Based on the Company''s
 evaluation, it believes that it is not probable that the claim will
 materialise and therefore, no provision has been recognised.
 
 f) Entry tax
 
 In certain states an entry tax is levied on receipt of material from
 outside the state. This position has been challenged by the Company in
 the respective states, on the grounds that the specific entry tax is
 ultra vires the constitution.  Classification issues have also been
 raised whereby, in view of the Company, the material proposed to be
 taxed not covered under the specific category. The amount under dispute
 as at March 31, 2012 was Rs. 2,624 Mn (March 31, 2011 - Rs. 2,521 Mn)
 included in Note 25 (ii) (a) above.
 
 g) Access charges (Interconnect Usage Charges)/Port charges
 
 Interconnect charges are based on the Interconnect Usage Charges (IUC)
 agreements between the operators although the IUC rates are governed by
 the IUC guidelines issued by TRAI. BSNL has raised a demand requiring
 the Company to pay the interconnect charges at the rates contrary to
 the guidelines issued by TRAI. The Company filed a petition against
 that demand with the Telecom Disputes Settlement and Appellate Tribunal
 (''TDSAT'') which passed a status quo order, stating that only the
 admitted amounts based on the guidelines would need to be paid by the
 Company.
 
 The management believes that, based on legal advice, the outcome of
 these contingencies will be favourable and that a loss is not probable.
 Accordingly, no amounts have been accrued although some have been paid
 under protest.
 
 In another proceeding with respect to Distance Based Carriage Charges,
 the Hon''ble TDSAT in its order dated May 21, 2010, allowed BSNL appeal
 praying to recover distance based carriage charges. On filing of appeal
 by the Telecom Operators, Hon''ble Supreme Court asked the Telecom
 Operators to furnish details of distance-based carriage charges owed by
 them to BSNL. Further, in a subsequent hearing held on Aug 30, 2010
 Hon''ble Supreme Court sought the quantum of amount in dispute from all
 the operators as well as BSNL and directed both BSNL and Private
 telecom operators to furnish CDRs to TRAI. The CDRs have been furnished
 to TRAI. The management believes that, based on legal advice, the
 outcome of these contingencies will be favourable and that a loss is
 not probable.
 
 In another issue with respect to Port Charges, in 2001, TRAI had
 prescribed slab based rate of port charges payable by private operators
 which were subsequently reduced in the year 2007 by TRAI. On BSNL''s
 appeal, TDSAT passed it''s judgment in favour of BSNL, and held that the
 pre-2007 rates shall be applicable prospectively from May 29, 2010. The
 management believes that, based on legal advice, the outcome of these
 contingencies will be favourable and that a loss is not probable.
 
 h) DoT Demands
 
 i) The Company has not been able to meet its roll out obligations fully
 due to certain non-controllable factors like Telecommunication
 Engineering Center testing, Standing Advisory Committee of Radio
 Frequency Allocations clearance, non availability of spectrum, etc. The
 Company has received show cause notices from DoT for 14 of its circles
 for non-fulfillment of its roll out obligations and these have been
 replied to. DoT has reviewed and revised the criteria and there has
 been no further development on this matter since then.
 
 ii) DoT demands include demands raised for contentious matters relating
 to computation of license fees and spectrum charges
 
 iii) DoT demands also include the following contentious matters :-
 
 a) In respect of subscriber verification norms and regulations
 including validity of certain documents allowed as Proof of
 Address/Identity in a mobility circle
 
 b) In respect of invalid calling line identification (CLI) appearing in
 calls made to BSNL for certain promotional business calls in a mobility
 circle
 
 c) In respect of alleged non compliance to certain license conditions
 related to renting/transfer of sim cards in a mobility circle
 
 d) In respect of provision of IPLC services to a non-licensed entity
 which has directly sold the same to a customer located in India in
 Airtel Business segment.
 
 The above stated matters are being contested by the Company and the
 Company, based on legal advice, believes that it has complied with all
 license related regulations as and when prescribed and does not expect
 any loss relating to these matters.
 
 i) Others
 
 Others mainly include disputed demands for consumption tax, disputes
 before consumer forum and with respect to labour cases and a potential
 claim for liquidated damages.
 
 The management believes that, based on legal advice, the outcome of
 these contingencies will be favourable and that a loss is not probable.
 No amounts have been paid or accrued towards these demands.
 
 j) Bharti Mobinet Limited (''BMNL'') litigation
 
 Bharti Airtel is in litigation in various proceedings at various stages
 and in various forums with DSS Enterprises Private Limited (DSS) (which
 had 0.34 per cent equity interest in erstwhile Bharti Cellular Limited
 (BCL)) on claims of specific performance in respect of alleged
 agreements to sell the equity interest of DSS in erstwhile BMNL to
 Bharti Airtel. In respect of one of the transactions with respect to
 purchase of 10.5% share of DSS in Skycell by Bharti, Crystal
 Technologies Private Limited (''Crystal''), an intermediary, initiated
 arbitration proceedings against the Company demanding Rs. 195 Mn
 regarding termination of its appointment as a consultant to negotiate
 with DSS for the sale of DSS stake in erstwhile BMNL to Bharti Airtel.
 The Ld. Arbitrator partly allowed the award for a sum of Rs. 31 Mn, 9%
 interest from period October 3, 2001 till date of award (i.e May 28,
 2009) and a further 18% interest from date of award to date of payment.
 The Company appealed against the award. The Single Judge while
 dismissing the appeal reduced the rate of interest from 18% to 12%. The
 matter was appealed thereafter to Division Bench and finally to Supreme
 Court wherein the matter has been admitted on the condition that the
 amount as per Single Judge Order shall be secure in the SC, which has
 been done. The matter will now come up in due course.
 
 DSS has also filed a suit against a previous shareholder of BMNL and
 Bharti Airtel challenging the transfer of shares by that shareholder to
 Bharti Airtel. The matter is to be reheard.
 
 DSS has also initiated arbitration proceedings seeking direction for
 restoration of the cellular license and the entire business associated
 with it including all assets of BCL/BMNL to DSS or alternatively, an
 award for damages. An interim stay was granted by the Delhi High Court
 with respect to the commencement of arbitration proceedings. The stay
 was made absolute.
 
 The liability, if any, of Bharti Airtel arising out of above litigation
 cannot be currently estimated. Since the amalgamation of BCL and
 erstwhile Bharti Infotel Limited (BIL) with Bharti Airtel, DSS, a
 minority shareholder in BCL, had been issued 2,722,125 equity shares of
 Rs. 10 each (5,444,250 equity shares of Rs. 5 each post split) bringing the
 share of DSS in Bharti Airtel down to 0.14% as at March 31, 2012.
 
 The management believes that, based on legal advice, the outcome of
 these contingencies will be favorable and that a loss is not probable.
 Accordingly, no amounts have been accrued or paid in regard to this
 dispute.
 
 k) During January, 2012, DoT has issued a show cause notice to the
 Company for alleged short payment of Licence Fee of Rs. 2,920 Mn
 including interest for the year 2006-07 and 2007-08. The Company has
 submitted its reply against the same and is confident that there will
 be no amounts payable in this regard.
 
 5.  CAPITAL AND OTHER COMMITMENTS
 
 a) Estimated amount of contracts to be executed on capital account and
 not provided for (net of advances) Rs. 32,252 Mn as at March 31, 2012
 (March 31, 2011 - Rs. 22,484 Mn).
 
 b) Under the IT Outsourcing Agreement, the Company has estimated
 commitments to pay Rs. 17,452 Mn as at March 31, 2012 (March 31, 2011 - Rs.
 20,717 Mn) comprising of assets and service charges. The amount
 represents total minimum commitement over the unexpired period of the
 contracts i.e. between 2-10 years, since it is not possible for the
 Company to determine the extent of assts and services under the
 contract over the unexpired period. However, the actual charges/
 payments may exceed the above mentioned minimum commitment based on the
 terms of contract.
 
 c) Bharti Airtel has obtained licenses under the Export Promotion
 Capital Goods (''EPCG'') Scheme for importing capital goods at a
 concessional rate of customs duty against submission of bank guarantee
 and bonds.
 
 Under the terms of the respective schemes, the Company is required to
 export goods of FOB value equivalent to, or more than, five times the
 CIF value of imports in respect of certain licenses and eight times the
 duty saved in respect of licenses where export obligation has been
 refixed by the order of Director General Foreign Trade, Ministry of
 Finance, as applicable within a period of eight years from the import
 of capital goods. The Export Promotion Capital Goods Scheme, Foreign
 Trade Policy 2004-2009 as issued by the Central Government of India,
 covers both manufacturer exporters and service providers. Accordingly,
 in accordance with Clause 5.2 of the Policy, export of
 telecommunication services would also qualify.
 
 Accordingly, the Company is required to export goods and services of
 FOB value of Rs. NIL as at March 31, 2012 (March 31, 2011 Rs. 2,404 Mn) by
 November 24, 2018.
 
 6.  The Company has undertaken to provide financial support, to its
 subsidiaries and associates Bharti Airtel Services Limited, Bharti
 Airtel (USA) Limited, Bharti Airtel (Hongkong) Limited, Bharti
 Telemedia Limited, Airtel M Commerce Services Limited, Bharti Airtel
 Lanka (Pvt) Limited and Bharti Airtel International (Netherlands) B.V.
 including its subsidiaries and associates, Alcatel-Lucent Network
 Management Services India Limited and Bharti Teleports Limited.
 
 7. NEW OPERATIONS
 
 a) The Company had invested Rs. 201 Mn in Bharti Airtel International
 (Mauritius) Limited, during the year ended March 31, 2012 and holds
 100% of the total shareholding as on March 31, 2012.
 
 b) The Company had invested Rs. 211 Mn in Bharti International
 (Singapore) Pte Limited, during the year ended March 31, 2012 and holds
 50.91% of the total shareholding as on March 31, 2012.
 
 c) The Company had invested Rs. 480 Mn in Airtel M Commerce Services
 Limited during the year ended March 31, 2012, out of which equity
 shares of Rs. 20 Mn were acquired from Bharti Airtel Services Limited and
 Rs. 280 Mn have been invested during the quarter ended March 31, 2012.
 The Company currently holds 100% of the total shareholding as on March
 31, 2012.
 
 d) On April 5, 2011, Airtel DTH Services Congo (RDC) S.p.r.l. had been
 incorporated as a wholly owned subsidiary of Bharti Airtel DTH Holdings
 B.V. (a wholly-owned subsidiary of Bharti Airtel Africa B.V.).
 
 e) On April 5, 2011, Airtel Mobile Commerce Madagascar S.A. had been
 incorporated as a wholly owned subsidiary of Airtel Mobile Commerce
 B.V. (formerly known as Zap Mobile Commerce B.V., a wholly owned
 subsidiary of Bharti Airtel International (Netherlands) B.V.). Airtel
 Mobile Commerce B.V. had invested Rs. 0.05 Mn in the newly incorporated
 company.
 
 f) On April 5, 2011, Congo RDC Towers S.p.r.l. had been incorporated as
 a wholly owned subsidiary of Africa Towers N.V.  (a wholly owned
 subsidiary of Bharti Airtel International (Netherlands) B.V.).
 
 g) On May 17, 2011, Gabon Towers S.A. had been incorporated as a wholly
 owned subsidiary of Africa Towers N.V. (a wholly owned subsidiary of
 Bharti Airtel International (Netherlands) B.V.). Africa Towers N.V. had
 invested Rs. 1 Mn in the newly incorporated company.
 
 h) On May 26, 2011, Airtel DTH Services Gabon S.A. had been
 incorporated as a wholly owned subsidiary of Bharti Airtel DTH Holdings
 B.V. (a wholly-owned subsidiary of Bharti Airtel Africa B.V.). Bharti
 Airtel DTH Holdings B.V. had invested Rs. 0.7 Mn in the newly
 incorporated company.
 
 i) On June 26, 2011, Bangladesh Infratel Networks Limited had been
 incorporated as a wholly owned subsidiary of Airtel Bangladesh Limited
 (a subsidiary of Bharti Airtel Holdings (Singapore) Pte Ltd). Airtel
 Bangladesh Limited had invested Rs. 0.06 Mn in the newly incorporated
 company.
 
 j) On July 8, 2011, Aero Ventures Limited had been incorporated as a
 wholly owned subsidiary of Network i2i Limited (a wholly-owned
 subsidiary of Bharti Airtel Limited). Network i2i Limited had invested
 Rs. 48.93 towards subscription of 1 share of USD 1 in the newly
 incorporated company. During the year Network i2i Limited had made
 further investment of Rs. 2,410 Mn. On March 20, 2012, Network i2i
 Limited has sold its entire equity stake in Aero Ventures Limited to
 Malaysian Jet Services Sdn. Bhd., Malaysia for a total consideration of
 Rs. 2,543 Mn (USD 50.6 Mn).
 
 k) On August 15, 2011, Bharti Airtel Cameroon B.V. (formerly known as
 Bharti Airtel Rwanda Holdings B.V.) had been incorporated as a wholly
 owned subsidiary of Bharti Airtel Africa B.V. (a wholly-owned
 subsidiary of Bharti Airtel International (Netherlands) B.V.). Bharti
 Airtel Africa B.V. had invested Rs. 1.15 Mn in the newly incorporated
 company.
 
 l) On September 2, 2011, Airtel Rwanda Limited had been incorporated as
 the wholly owned subsidiary of Bharti Airtel Cameroon B.V. (formerly
 known as Bharti Airtel Rwanda Holdings B.V., a wholly owned subsidiary
 of Bharti Airtel Africa B.V.). Subsequently on September 15, 2011,
 Bharti Airtel Cameroon B.V. had transferred 100% of its holdings in the
 newly incorporated company to Zebrano (Mauritius) Limited (formerly
 known as Zain (IP) Mauritius Limited) (a wholly- owned subsidiary of
 Bharti Airtel Africa B.V.).
 
 m) On September 8, 2011, Africa Towers Services Limited had been
 incorporated as the jointly owned entity of Africa Towers N.V. (a
 wholly-owned subsidiary of Bharti Airtel International (Netherlands)
 B.V.) and Bharti Airtel International (Netherlands) B.V.
 
 n) On September 12, 2011, Rwanda Towers Limited had been incorporated
 as the wholly owned subsidiary of Africa Towers N.V. (a wholly owned
 subsidiary of Bharti Airtel International (Netherlands) B.V.).
 
 o) The Company has invested Rs. 98 Mn for its proportionate share in
 Bharti Teleports Limited, during the quarter ended March 31, 2012 and
 continues to hold 49% of the total shareholding as on March 31, 2012.
 
 p) During the year ended March 31, 2012, the Company has completed the
 launch of 3G services in all its eligible licensed circles in India.
 
 d) The expected rate of return on plan assets was based on the average
 long-term rate of return expected to prevail over the next 15 to 20
 years on the investments made by LIC. This was based on the historical
 returns suitably adjusted for movements in long-term Government bond
 interest rates. The discount rate is based on the average yield on
 Government bonds of 20 years.
 
 e) The estimates of future salary increases, considered in actuarial
 valuation, take account of inflation, seniority, promotion and other
 relevant factors, such as supply and demand in the employment market.
 
 f) The table below illustrates experience adjustment disclosure as per
 para 120 (n) (ii) of Accounting Standard 15, ''Employee Benefits''
 
 8.  INVESTMENT IN JOINT VENTURES/JOINTLY OWNED ASSETS Jointly owned
 assets
 
 a) The Company has participated in various consortiums towards supply,
 construction, maintenance and providing long term technical support
 with regards to following Cable Systems. The details of the same are as
 follows:
 
 Joint Ventures Entity
 
 b) The Company entered into a Joint Venture with 9 other overseas
 mobile operators to form a regional alliance called the Bridge Mobile
 Alliance, incorporated in Singapore as Bridge Mobile Pte Limited. The
 principal activity of the venture is creating and developing regional
 mobile services and managing the Bridge Mobile Alliance Programme.  The
 Company has invested USD 2.2 Mn, amounting to Rs. 92 Mn, in 2.2 Mn
 ordinary shares of USD 1 each which is equivalent to an ownership
 interest of 10.00% as at March 31, 2012 (March 31, 2011 USD 2.2 Mn, Rs.
 92 Mn, ownership interest 10.00%).
 
 9.  As at March 31, 2012, Bharti Airtel Employee''s Welfare Trust (''the
 Trust'') holds 2,456,750 equity shares (of face value of Rs. 5 each)
 (March 31, 2011 2,964,623 equity shares) of the Company, out of which
 1,792,383 equity shares were issued at the rate of Rs. 25.68 per equity
 share fully paid up and 664,367 equity shares (of face value of Rs. 5
 each) are purchased from open market at average rate of Rs. 354.57 per
 equity share.
 
 10.  Loans and advances in the nature of loans along with maximum
 amount outstanding during the year as per Clause 32 of Listing
 Agreement are as follows:
 
 (a) Loan and advance in the nature of loan bearing nil interest given
 to Bharti Telemedia Limited Rs. 31,060 Mn (March 31, 2011 Rs. 24,969 Mn).
 
 (b) Loan and advance in the nature of loan given to Bharti Airtel Lanka
 (Private) Limited is Rs. 11,047 Mn (March 31, 2011 Rs. 9,697 Mn at LIBOR  
 4.5% interest rate). Effective February 10, 2012, no interest has been
 charged with an option for equity conversion.
 
 (c) Loan and advance in the nature of loan given to Bharti Airtel
 International (Netherlands) B.V at LIBOR   1.7% interest rate is Rs.
 50,686 Mn (March 31, 2011 Rs. 11,654 Mn).
 
 (d) Loan and advance in the nature of loan given to Alcatel-Lucent
 Network Management Services India Limited at SBI PLR   1% interest rate
 is Rs. 90 Mn (March 31, 2011 Rs. 90 Mn).
 
 (e) Loan and advance in the nature of loan given to Bharti Teleports
 Limited at 13% p.a. interest rate is Rs. 332 Mn (March 31, 2011 Rs. 210
 Mn).
 
 (f) Loan and advance in the nature of loan given to Bharti Airtel
 International (Mauritius) Limited at LIBOR   1.7% interest rate is Rs.
 9,428 Mn (March 31, 2011 NIL).
 
 (g) Loan and advance in the nature of loan given to Bharti
 International (Singapore) Pte Limited at LIBOR   1.7% interest rate is
 Rs. 24,939 Mn (March 31, 2011 NIL).
 
 (h) Loan and advance in the nature of loan given to Bharti Airtel
 Services Limited at nil interest is Rs. 56 Mn (March 31, 2011 Rs. 56 Mn).
 
 (i) Loan and advance in the nature of loan given to Bharti Airtel (USA)
 Limited at 7.33% interest rate is Rs. 53 Mn (March 31, 2011 Rs. 45 Mn).
 
 11. RELATED PARTY DISCLOSURES
 
 In accordance with the requirements of Accounting Standards (AS) -18 on
 Related Party Disclosures, the names of the related parties where
 control exists and/or with whom transactions have taken place during
 the year and description of relationships, as identified and certified
 by the management are:
 
 Name of the Related Party and Relationship :
 
 (i) Key Management Personnel
 
 Sunil Bharti Mittal
 
 Manoj Kohli
 
 Sanjay Kapoor
 
 (ii) Other Related Parties
 
 (a) Entities where control exist - Subsidiary/Subsidiaries of
 subsidiary
 
 Bharti Hexacom Limited
 
 Bharti Airtel Services Limited
 
 Bharti Telemedia Limited
 
 Bharti Airtel (USA) Limited
 
 Bharti Airtel Lanka (Private) Limited
 
 Bharti Airtel (UK) Limited
 
 Bharti Airtel (Canada) Limited
 
 Bharti Airtel (Hongkong) Limited
 
 Bharti Infratel Limited
 
 Network i2i Ltd
 
 Bharti Airtel Holdings (Singapore) Pte Ltd
 
 Bharti Infratel Lanka (Private) Limited (subsidiary of Bharti Airtel
 Lanka (Private) Limited)
 
 Bharti Infratel Ventures Limited (subsidiary of Bharti Infratel
 Limited)
 
 Airtel M Commerce Services Limited
 
 Bharti Airtel (Japan) Kabushiki Kaisha (subsidiary of Bharti Airtel
 Holdings (Singapore) Pte Ltd)
 
 Bharti Airtel (France) SAS (subsidiary of Bharti Airtel Holdings
 (Singapore) Pte Ltd)
 
 Bharti Airtel International (Mauritius) Limited
 
 Bharti International (Singapore) Pte Ltd
 
 Airtel Bangladesh Limited
 
 (subsidiary of Bharti Airtel Holdings (Singapore) Pte Ltd)
 
 Bharti Airtel International (Netherlands) B.V.
 
 Bangladesh Infratel Networks Limited (incorporated on June 26, 2011) *
 
 Aero Ventures Limited (incorporated on July 8, 2011) (ceased to be a
 subsidiary on March 20, 2012) *
 
 Bharti Airtel Africa B.V. (Subsidiary of Bharti Airtel International
 (Netherlands) B.V.)
 
 Other subsidiaries of Bharti Airtel Africa B.V. :
 
 Africa Towers N.V.
 
 Africa Towers Services Limited (incorporated on September 8, 2011) *
 
 Airtel (Ghana) Limited
 
 Airtel (SL) Limited
 
 Airtel Burkina Faso S.A.#
 
 Airtel Congo S.A#
 
 Airtel DTH Services (K)
 
 Airtel DTH Services (Sierra Leone) Limited
 
 Airtel DTH Services Burkina Faso S.A.
 
 Airtel DTH Services Congo (RDC) (incorporated on April 5, 2011) *
 
 Airtel DTH Services Congo S.A.
 
 Airtel DTH Services Gabon S.A (incorporated on May 26, 2011)*
 
 Airtel DTH Services Ghana Limited
 
 Airtel DTH Services Madagascar S.A.
 
 Airtel DTH Services Malawi Limited
 
 Airtel DTH Services Niger S.A.
 
 Airtel DTH Services Nigeria Limited
 
 Airtel DTH Services T.Chad S.A.
 
 Airtel DTH Services Tanzania Limited
 
 Airtel DTH Services Uganda Limited
 
 Bharti DTH Services Zambia Limited
 
 Airtel Madagascar S.A.
 
 Airtel Malawi Limited
 
 Airtel Mobile Commerce (SL) Limited (Formerly Zap Trust Company (SL)
 Limited)
 
 Airtel Mobile Commerce B.V. (Formerly Zap Mobile Commerce B.V.)
 
 Airtel Mobile Commerce Burkina Faso S.A. (Formerly Zap Mobile Commerce
 Burkina Faso S.A.) *
 
 Airtel Mobile Commerce Ghana Limited (Formerly Zap Trust Company
 Limited (Ghana))
 
 Airtel Mobile Commerce Holdings B.V.(Formerly Zap Holdings B.V.)
 
 Airtel Mobile Commerce Madagascar (S.A.) (Formerly Airtel Money Mobile
 Commerce Madagascar) *
 
 Airtel Mobile Commerce Malawai Limited (Formerly Zap Trust Company
 Limited (Malawi)
 
 Airtel Mobile Commerce Tanzania Limited (Formerly Zap Trust Company
 Tanzania Limited)
 
 Airtel Mobile Commerce Tchad SARL (Formerly Zain Mobile Commerce Tchad
 SARL)
 
 Airtel Mobile Commerce Uganda (Formerly Zap Trust Company Uganda
 Limited)
 
 Airtel Money Niger (Formerly Zap Niger S.A (Niger)
 
 Airtel Money (RDC) S.p.r.l *
 
 Airtel Networks Kenya Limited #
 
 Airtel Networks Limited
 
 Airtel Rwanda Limited (incorporated on September 2, 2011) *
 
 Airtel Tanzania Limited #
 
 Airtel Towers (Ghana) Limited
 
 Airtel Towers S.L. Company Limited 
 
 Airtel Uganda Limited
 
 Airtel (Seychelles) Limited (Formerly Telecom Seychelles Limited)
 
 Bharti Airtel Acquisition Holdings B.V.
 
 Bharti Airtel Burkina Faso Holdings B.V.
 
 Bharti Airtel Cameroon Holdings B.V.
 
 Bharti Airtel Chad Holdings B.V.
 
 Bharti Airtel Congo Holdings B.V.
 
 Bharti Airtel Developers Forum Limited (Formerly Zain Developers
 Limited)
 
 Bharti Airtel DTH Holdings B.V.
 
 Bharti Airtel Gabon Holdings B.V. #
 
 Bharti Airtel Ghana Holdings B.V. #
 
 Bharti Airtel Kenya B.V. #
 
 Bharti Airtel Kenya Holdings B.V.
 
 Bharti Airtel Madagascar Holdings B.V. #
 
 Bharti Airtel Malawi Holdings B.V. #
 
 Bharti Airtel Mali Holdings B.V.
 
 Bharti Airtel Niger Holdings B.V. #
 
 Bharti Airtel Nigeria B.V. #
 
 Bharti Airtel Nigeria Holdings B.V.
 
 Bharti Airtel Nigeria Holdings II B.V.
 
 Bharti Airtel Cameroon B.V. (Formerly Bharti Airtel Rwanda Holdings
 B.V.) *
 
 Bharti Airtel RDC Holdings B.V.
 
 Bharti Airtel Services B.V.
 
 Bharti Airtel Sierra Leone Holdings B.V. #
 
 Bharti Airtel Tanzania B.V. #
 
 Bharti Airtel Uganda Holdings B.V. #
 
 Bharti Airtel Zambia Holdings B.V. #
 
 Burkina Faso Towers S.A.
 
 Celtel (Mauritius) Holdings Limited
 
 Celtel Cameroon SA
 
 Celtel Congo RDC S.a.r.l. #
 
 Celtel Gabon S.A.
 
 Celtel Niger S.A.
 
 Celtel Tchad S.A. #
 
 Celtel Zambia plc
 
 Channel Sea Management Co Mauritius Limited
 
 Congo (RDC) Towers S.p.r.l. (incorporated on April 5, 2011) *
 
 Congo Towers S.A.
 
 Gabon Towers S.A. (incorporated on May 17, 2011) *
 
 Indian Ocean Telecom Limited
 
 Kenya Towers S.A.
 
 Madagascar Towers S.A.
 
 Malawi Towers Limited
 
 Mobile Commerce Congo S.A.
 
 Mobile Commerce Gabon S.A
 
 Montana International
 
 MSI-Celtel Nigeria Limited
 
 Niger Towers S.A.
 
 Partnership Investments Sprl
 
 Rwanda Towers Limited (incorporated on September 12, 2011) *
 
 Societe Malgache de Telephonie Cellulaire Sa
 
 Tanzania Towers S.A.
 
 Tchad Towers S.A.
 
 Towers Support Nigeria Limited
 
 Uganda Towers Limited
 
 Zambian Towers Limited
 
 Zap Trust Company Nigeria Limited
 
 Zebrano (Mauritius) Limited (Formerly Zain (IP) Mauritius Limited)
 
 ZMP Limited (Zambia)
 
 (b)  Associates/Associate of subsidiary
 
 Alcatel-Lucent Network Management Services India Limited
 
 Bharti Teleports Limited
 
 Tanzania Telecommunications Limited (Associate of Bharti Airtel
 Tanzania B.V.)
 
 (c) Joint Ventures/Joint Venture of Subsidiary
 
 Forum I Aviation Limited (Joint Venture of Bharti Airtel Services
 Limited)
 
 Indus Towers Limited (Joint Venture of Bharti Infratel Limited)
 
 Bridge Mobile Pte Limited
 
 (d) Entities where Key Management Personnel and their relatives
 exercise significant influence/Group Companies
 
 Beetel Teletech Limited
 
 Bharti Airtel Employees Welfare Trust
 
 Bharti Axa General Insurance Company Limited
 
 Bharti Axa Investment Managers Private Limited
 
 Bharti Axa Life Insurance Company Limited
 
 Bharti Enterprises Limited
 
 Bharti Foundation
 
 Bharti Realty Holdings Limited
 
 Bharti Realty Limited
 
 Bharti Retail Limited
 
 Bharti Softbank Holdings Pte Limited *
 
 Bharti Wal-Mart Private Limited
 
 Centum Learning Limited
 
 Comviva Technologies Limited
 
 Fieldfresh Foods Private Limited
 
 Guernsey Airtel Limited
 
 Indian Continent Investment Limited
 
 Jersey Airtel Limited
 
 Nile Tech Limited
 
 (e) Entities having significant influence over the Company
 
 Singapore Telecommunications Limited
 
 Pastel Limited
 
 Bharti Telecom Limited
 
 * Refer note 35 above for details of new operations during the year.
 
 # Transactions of similar nature with such subsidiaries have been
 dubbed and shown under the head ''Other African Subsidiaries'' as their
 contribution to total transaction value is less than 10%.
 
 Operating Lease - As a Lessor
 
 i) The Company has entered into a non-cancelable lease arrangement to
 provide approximately 108,860 fiber pair kilometers of dark fiber on
 indefeasible right of use (IRU) basis for a period of 18 years. The
 lease rental receivable proportionate to actual kilometers accepted by
 the customer is credited to the statement of profit and loss on a
 straight - line basis over the lease term. Due to the nature of the
 transaction, it is not possible to compute gross carrying amount,
 depreciation for the year and accumulated depreciation of the asset
 given on operating lease as at March 31, 2012 and accordingly,
 disclosures required by AS 19 are not provided.
 
 12.  EMPLOYEE STOCK COMPENSATION
 
 (i) Pursuant to the shareholders'' resolutions dated February 27, 2001
 and September 25, 2001, the Company introduced the Bharti
 Tele-Ventures Employees'' Stock Option Plan (hereinafter called the
 Old Scheme) under which the Company decided to grant, from time to
 time, options to the employees of the Company and its subsidiaries. The
 grant of options to the employees under the Old Scheme is on the basis
 of their performance and other eligibility criteria.
 
 (ii) On August 31, 2001 and September 28, 2001, the Company issued a
 total of 1,440,000 (face value Rs. 10 each) equity shares at a price of Rs.
 565 per equity share to the Trust. The Company issued bonus shares in
 the ratio of 10 equity shares for every one equity share held as at
 September 30, 2001, as a result of which the total number of shares
 allotted to the trust increased to 15,840,000 (face value Rs. 10 each)
 equity shares.
 
 (iii) Pursuant to the shareholders'' resolution dated September 6, 2005,
 the Company announced a new Employee Stock Option Scheme (hereinafter
 called the New Scheme) under which the maximum quantum of options was
 determined at 9,367,276 (face value Rs. 10 each) options to be granted to
 the employees from time to time on the basis of their performance and
 other eligibility criteria.
 
 The volatility of the options is based on the historical volatility of
 the share price since the Company''s equity shares became publicly
 traded, which may be shorter than the term of the options.
 
 (viii)The Company has granted stock options to the employees of the
 subsidiaries i.e. Bharti Hexacom Limited, Bharti Infratel Limited (BIL)
 and Bharti Airtel International (Netherlands) B.V. and the
 corresponding compensation cost is borne by the Company. Further BIL
 has also given stock options to certain employees of the Company and
 the corresponding compensation cost is borne by BIL.
 
 13.  FORWARD CONTRACTS & DERIVATIVE INSTRUMENTS
 
 The Company''s activities expose it to a variety of financial risks,
 including the effects of changes in foreign currency exchange rates and
 interest rates. The Company uses derivative financial instruments such
 as foreign exchange contracts, option contracts and interest rate swaps
 to manage its exposures to interest rate and foreign exchange
 fluctuations.
 
 The Company has accounted for derivatives, which are covered under the
 Announcement issued by the ICAI, on marked-to- market basis and has
 recorded reversal of losses for earlier period of Rs. 82 Mn (including
 losses of Rs. 156 Mn towards embedded derivatives) for the year ended
 March 31, 2012 [recorded losses of Rs. 126 Mn for the year ended March
 31, 2011]
 
 14.  a) The Board of Directors, in its meeting held on May 5, 2011,
 recommended a final dividend of Rs. 1.00 per equity share of Rs. 5.00 each
 (20% of face value) for financial year 2010-11, which was duly approved
 by the shareholders of the Company in the Annual General Meeting held
 on September 1, 2011
 
 15.  During the year ended March 31, 2012, a fire incident had occurred
 at one of the premises of the Company. The insurance company has been
 notified about the loss and a preliminary survey has been carried out.
 The Company is in the process of completing the necessary documentation
 for claiming the insurance amount. The Company is confident of
 recovering the full value of the loss amount from the insurer.
 
 16.  Details of debt covenant w.r.t. the Company''s 3G/BWA borrowings:
 
 The loan agreements with respect to 3G/BWA borrowings contains a
 negative pledge covenant that prevents the Company to create or allow
 to exist any Security Interest on any of its assets without prior
 written consent of the Lenders except in certain agreed circumstances.
 
 17.  Previous year figures have been regrouped/reclassified where
 necessary to conform to current year''s classification.