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Bharti Airtel Ltd.

BSE: 532454 Sector: Telecom
NSE: BHARTIARTL ISIN Code: INE397D01024
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VOLUME 271678
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Mkt Cap.(Rs cr) 285,899
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OPEN 528.00
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VOLUME 271678
52-Week high 568.60
52-Week low 276.32
P/E 111.74
Mkt Cap.(Rs cr) 285,899
Buy Price 521.00
Buy Qty 400.00
Sell Price 524.05
Sell Qty 1417.00

Bharti Airtel Ltd. (BHARTIARTL) - Auditors Report

Company auditors report

TO

THE MEMBERS OF BHARTI AIRTEL LIMITED

Report on the Audit of the Standalone Financial Statements

Opinion

We have audited the accompanying Standalone Financial Statements of Bharti AirtelLimited ("the Company") which comprise the Standalone Balance Sheet as atMarch 31 2019 the Standalone Statement of Profit and Loss (including Other ComprehensiveIncome) the Standalone Statement of Changes in Equity and the Standalone Statement ofCash Flows for the year then ended and a summary of significant accounting policies andother explanatory information (hereinafter referred to as "Standalone FinancialStatements").

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid Standalone Financial Statements give the information requiredby the Companies Act 2013 ("the Act") in the manner so required and give a trueand fair view in conformity with the Indian Accounting Standards prescribed under section133 of the Act read with the Companies (Indian Accounting Standards) Rules 2015 asamended("Ind AS") and other accounting principles generally accepted in Indiaof the state of affairs of the Company as at March 31 2019 and its loss totalcomprehensive loss the changes in equity and its cash flows for the year ended on thatdate.

Basis for Opinion

We conducted our audit of the Standalone Financial Statements in accordance with theStandards on Auditing specified under section 143(10) of the Act (SAs). Ourresponsibilities under those Standards are further described in the Auditor’sResponsibility for the Audit of the Standalone Financial Statements section of our report.We are independent of the Company in accordance with the Code of Ethics issued by theInstitute of Chartered Accountants of India (ICAI) together with the ethical requirementsthat are relevant to our audit of the Standalone Financial Statements under the provisionsof the Act and the Rules made thereunder and we have fulfilled our other ethicalresponsibilities in accordance with these requirements and the ICAI’s Code of Ethics.We believe that the audit evidence obtained by us is sufficient and appropriate to providea basis for our audit opinion on the Standalone Financial Statements.

Emphasis of Matter

We draw attention to Note 23(I)(f)(vi) of the Standalone Financial Statements whichdescribes the uncertainties related to the legal outcome of Department ofTelecommunications demand with respect to one-time spectrum charges.

Our opinion is not modified in respect of this matter.

Key Audit Matters

Key audit matters are those matters that in our professional judgment were of mostsignificance in our audit of the Standalone Financial Statements of the current period.These matters were addressed in the context of our audit of the Standalone FinancialStatements as a whole and in forming our opinion thereon and we do not provide aseparate opinion on these matters. We have determined the matters described below to bethe key audit matters to be communicated in our report.

Key audit matter Audit Procedures to address Key Audit Matter
Revenue recognition:
There is an inherent risk around accuracy of revenue recorded in respect of Mobile Services and Airtel Business segments because of the complexity of the IT systems and other support systems significance of volumes of data processed by the systems and the impact of changing pricing models (tariff structures incentive arrangements and discounts etc.). In addition for Airtel Business we considered occurrence of revenue as a risk due to the possibility that revenue may be recorded without active service links being provided to customers or for contracts that are cancelled/not renewed. We involved our IT specialists to evaluate the design and test the operating effectiveness of the general IT controls and application specific controls within the IT system including testing of system generated reports used in our audit of revenues. We also tested the controls within the billing systems prepaid charging systems capturing and recording of revenue authorisation and input of changes to the IT systems and over reconciliations performed between the active customers base with billing system.
Refer note 2.19 "Revenue recognition" for accounting policies and note 24 on disclosures related to Revenue in the standalone financial statements. We performed substantive procedures which included verifying the accuracy of customer invoices and tracing receipts to customer invoices comparing the number of links/connection as per the active customer base to the billing system testing reconciliations between billing system and the general ledger (including validation of relevant journal entries) making test calls and testing whether they are rated correctly and analytical procedures for relevant segment revenue.
We verified the appropriateness of the accounting policies and the disclosures related to Revenue in notes 2.19 and 24 respectively in the standalone financial statements.
Recoverability of deferred tax assets (DTA) recognized on tax loss carry-forwards and Minimum Alternate Tax (MAT) credit
DTA on tax loss carry forwards and MAT credit recognised as at March 31 2019 amounts to H 126085 million. We evaluated the design and tested the operating effectiveness of internal controls related to the assessment of recoverability of DTA on carry forward tax losses and MAT credit.
Significant judgement is required in assessing the recoverability of DTA on tax loss carry forwards and MAT credit. We benchmarked and challenged the key business assumptions like revenue growth rates amount of future capital expenditure and EBIDTA margins in the ten year business plans against historical data and trends and with market data and external sources where available to assess their reasonableness.
Recoverability of DTA on tax loss and MAT credit is sensitive to the assumptions used by management in projecting the ten year business plan and tax plan and to expiry of losses and restriction on utilization of MAT credit after the period specified in the Income-tax Act 1961. We verified the tax computation for the ten year forecast period and considered whether the tax losses and MAT credit would expire in accordance with the provisions of Income tax Act 1961.
Refer note 2.12 "Taxes" for accounting policies note 3.1.b in "Critical accounting estimates and assumptions" related to taxes and note 12 "Income taxes" for disclosures related to taxes in the standalone financial statements. We also performed sensitivity assessment to evaluate whether it is probable that the tax losses and MAT credit would expire within the period specified in the provisions of Income tax Act 1961 and tested the mathematical accuracy of the business plans and tax computation for the forecast period.
We verified that recognition of DTA is consistent with company's accounting guidelines for recognition of deferred tax on tax loss carry forward and MAT credit.
We verified the appropriateness of accounting policies critical accounting estimates and assumptions and disclosures related to Income tax in notes 2.12 3.1.b and 12 respectively in the standalone financial statements.
Evaluation of impairment assessment for investments in subsidiaries
Investments in subsidiaries as at March 31 2019 amounts to H 357533 million. We evaluated the design and tested the operating effectiveness of internal controls related to evaluation of impairment assessment of investment in Bharti Infratel Limited.
The management assessed that there are impairment indicators in respect of its investment in Bharti Infratel limited (BIL). Accordingly the management estimated the recoverable value of its investment in BIL the carrying value of which as at March 31 2019 is H 227516 million. We evaluated the management's valuation method used and the accuracy of the inputs used in the model to determine the recoverable value. We challenged the inputs used to assess their reasonableness tested the sensitivity of the recoverable value to the change in the inputs used and tested the arithmetical accuracy of the model.
The evaluation of the recoverable amount involves determination of the most appropriate valuation method and the inputs used in the valuation model. We verified the appropriateness of the accounting policies and disclosures related to Investments in notes 2.10(a) and 8 respectively in the standalone financial statements.
Refer note 2.10(a) for policy on "Recognition classification and presentation" of financial instruments and note 8 "Investments" for disclosures related to details of Investments in the standalone financial statements.
Evaluation of uncertain positions related to tax and regulatory matters
The Company has material uncertain positions related to regulatory matters and direct and indirect tax matters under dispute that involves significant judgment to determine the possible outcome of these disputes provisions required if any and/or write back of provision in respect of such matters. We evaluated the design and tested the operating effectiveness of internal controls related to the assessment of the likely outcome of uncertain positions related to the regulatory and tax matters the provision made if any and/or write back of the provision.
We discussed significant open matters and developments with the Company’s regulatory and tax team.
Refer Note 2.18 "Contingencies" for accounting policies Note 20 "Provisions" for disclosure related to provisions for subjudice matters and Note 23(I) in respect of details of Contingent liabilities in the standalone financial statements. We involved our internal tax experts to understand and evaluate the status of tax matters review legal precedence and external expert opinions if any obtained by the management to evaluate whether the tax and regulatory position is appropriate and has taken into account recent developments if any.
We challenged management’s underlying assumptions in estimating tax and regulatory provisions and/or write back of provisions and assessed management evaluations and conclusions by understanding precedence if any set in similar matters and performed substantive procedures on the underlying calculation supporting the provisions required and/or write back of provisions.
We verified the appropriateness of the accounting policies disclosures related to provisions for subjudice matters and details of contingent liabilities in notes 2.18 20 and 23(I) respectively in the standalone financial statements.

Information Other than the Financial Statements and Auditor’s Report Thereon

The Company’s Board of Directors is responsible for the preparation of the otherinformation. The other information comprises the information included in ManagementDiscussion and Analysis Board’s Report including Annexures to the Board’sReport Business Responsibility Report Corporate Governance and Integrated Report butdoes not include the standalone financial statements and our auditor’s reportthereon.

Our opinion on the Standalone Financial Statements does not cover the other informationand we do not express any form of assurance conclusion thereon.

In connection with our audit of the Standalone Financial Statements our responsibilityis to read the other information and in doing so consider whether the other informationis materially inconsistent with the Standalone Financial Statements or our knowledgeobtained during the course of our audit or otherwise appears to be materially misstated.

If based on the work we have performed we conclude that there is a materialmisstatement of this other information we are required to report that fact. We havenothing to report in this regard.

Management’s Responsibility for the Standalone Financial Statements

The Company’s Board of Directors is responsible for the matters stated in section134(5) of the Act with respect to the preparation of these Standalone Financial Statementsthat give a true and fair view of the financial position financial performance includingother comprehensive income changes in equity and cash flows of the Company in accordancewith the Ind AS and other accounting principles generally accepted in India. Thisresponsibility also includes maintenance of adequate accounting records in accordance withthe provisions of the Act for safeguarding the assets of the Company and for preventingand detecting frauds and other irregularities; selection and application of appropriateaccounting policies; making judgments and estimates that are reasonable and prudent; anddesign implementation 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 FinancialStatements that give a true and fair view and are free from material misstatement whetherdue to fraud or error

In preparing the Standalone Financial Statements management is responsible forassessing the Company’s ability to continue as a going concern disclosing asapplicable matters related to going concern and using the going concern basis ofaccounting 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 the Company’sfinancial reporting process.

Auditor’s Responsibility for the Audit of the Standalone Financial Statements

Our objectives are to obtain reasonable assurance about whether the StandaloneFinancial Statements as a whole are free from material misstatement whether due to fraudor error and to issue an auditor’s report that includes our opinion. Reasonableassurance is a high level of assurance but is not a guarantee that an audit conducted inaccordance with SAs will always detect a material misstatement when it exists.Misstatements can arise from fraud or error and are considered material if individuallyor in the aggregate they could reasonably be expected to influence the economic decisionsof users taken on the basis of these Standalone Financial Statements.

As part of an audit in accordance with SAs we exercise professional judgment andmaintain professional skepticism throughout the audit. We also:

• Identify and assess the risks of material misstatement of the StandaloneFinancial Statements whether due to fraud or error design and perform audit proceduresresponsive to those risks and obtain audit evidence that is sufficient and appropriate toprovide a basis for our opinion. The risk of not detecting a material misstatementresulting from fraud is higher than for one resulting from error as fraud may involvecollusion forgery intentional omissions misrepresentations or the override of internalcontrol.

• Obtain an understanding of internal financial control relevant to the audit inorder to design audit procedures that are appropriate in the circumstances. Under section143(3)(i) of the Act we are also responsible for expressing our opinion on whether theCompany has adequate internal financial controls system in place and the operatingeffectiveness of such controls.

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

• Conclude on the appropriateness of management’s use of the going concernbasis 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 Standalone Financial Statements or if such disclosures areinadequate to modify our opinion. Our conclusions are based on the audit evidenceobtained up to the date of our auditor’s report. However future events or conditionsmay cause the Company to cease to continue as a going concern.

• Evaluate the overall presentation structure and content of the StandaloneFinancial Statements including the disclosures and whether the Standalone FinancialStatements represent the underlying transactions and events in a manner that achieves fairpresentation.

Materiality is the magnitude of misstatements in the Standalone Financial Statementsthat individually or in aggregate makes it probable that the economic decisions of areasonably knowledgeable user of the Standalone Financial Statements may be influenced. Weconsider quantitative materiality and qualitative factors in (i) planning the scope of ouraudit work and in evaluating the results of our work; and (ii) to evaluate the effect ofany identified misstatements in the Standalone Financial Statements.

We communicate with those charged with governance regarding among other matters theplanned scope and timing of the audit and significant audit findings including anysignificant deficiencies in internal control that we identify during our audit.

We also provide those charged with governance with a statement that we have compliedwith relevant ethical requirements regarding independence and to communicate with themall relationships and other matters that may reasonably be thought to bear on ourindependence and where applicable related safeguards.

From the matters communicated with those charged with governance we determine thosematters that were of most significance in the audit of the Standalone Financial Statementsof the current period and are therefore the key audit matters. We describe these mattersin 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 Section 143(3) of the Act based on our audit we report that:

a) We have sought and obtained all the information and explanations which to the bestof our knowledge and belief were necessary for the purposes of our audit.

b) In our opinion proper books of account as required by law have been kept by theCompany so far as it appears from our examination of those books.

c) The Standalone Balance Sheet the Standalone Statement of Profit and Loss includingOther

Comprehensive Income the Standalone Statement of Changes in Equity and the StandaloneStatement of Cash Flows dealt with by this Report are in agreement with the relevant booksof account.

d) In our opinion the aforesaid Standalone Financial Statements comply with the Ind ASspecified under Section 133 of the Act read with the Companies (Indian AccountingStandards) Rules 2015 as amended.

e) On the basis of the written representations received from the directors as on March31 2019 taken on record by the Board of Directors none of the directors is disqualifiedas on March 31 2019 from being appointed as a director in terms of Section 164(2) of theAct.

f) With respect to the adequacy of the internal financial controls over financialreporting of the Company and the operating effectiveness of such controls refer to ourseparate Report in "Annexure A". Our report expresses an unmodifiedopinion on the adequacy and operating effectiveness of the Company’s internalfinancial controls over financial reporting.

g) With respect to the other matters to be included in the Auditor’s Report inaccordance with the requirements of section 197(16) of the Act as amended

In our opinion and to the best of our information and according to explanation given tous the remuneration paid / accrued by the Company to its Chairman and Managing Director& CEO (India and South Asia) for the year ended March 31 2019 is in excess by H300.66 Million vis-a-vis the limits specified in section 197 of Companies Act 2013(‘the Act’) read with Schedule V thereto as the Company does not have profits.The Company has represented to us that it is in the process of complying with theprescribed statutory requirements to regularize such excess payments including seekingapproval of shareholders as necessary.

h) With respect to the other matters to be included in the Auditor’s Report inaccordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 as amended inour opinion and to the best of our information and according to the explanations given tous:

i. The Company has disclosed the impact of pending litigations on its financialposition in its Standalone Financial Statements

ii. The Company has made provision as required under the applicable law or accountingstandards for material foreseeable losses if any on long-term contracts includingderivative contracts.

iii. There has been no delay in transferring amounts required to be transferred tothe Investor Education and Protection Fund by the Company.

2. As required by the Companies (Auditor’s Report) Order 2016 ("theOrder") issued by the Central Government in terms of Section 143(11) of the Act wegive in "Annexure B" a statement on the matters specified in paragraphs 3and 4 of the Order.

For DELOITTE HASKINS & SELLS LLP
Chartered Accountants
(Firm’s Registration No. 117366W/W-100018)
Shyamak R Tata
Place: New Delhi Partner
Date: May 06 2019 (Membership No. 38320)

Annexure "A" to the Independent Auditor’s Report

(Referred to in paragraph 1 (f) under ‘Report on Other Legal and RegulatoryRequirements’ section of our report to the Members of Bharti Airtel Limited of evendate)

Report on the Internal Financial Controls Over Financial Reporting under Clause (i) ofSub-section 3 of Section 143 of the Companies Act 2013 ("the Act")

We have audited the interna! financial controls over financial reporting of BhartiAirtel Limited ("the Company") as of March 31 2019 in conjunction with ouraudit of the Standalone Financial Statements of the Company for the year ended on thatdate.

Management’s Responsibility for Internal Financial Controls

The Company’s management is responsible for establishing and maintaining internalfinancial controls based on the internal control over financial reporting criteriaestablished by the Company considering the essential components of internal control statedin the Guidance Note on Audit of Internal Financial Controls Over Financial Reportingissued by the Institute of Chartered Accountants of India. These responsibilities includethe design implementation and maintenance of adequate internal financial controls thatwere operating effectively for ensuring the orderly and efficient conduct of its businessincluding adherence to company’s policies the safeguarding of its assets theprevention and detection of frauds and errors the accuracy and completeness of theaccounting records and the timely preparation of reliable financial information asrequired under the Companies Act 2013.

Auditor’s Responsibility

Our responsibility is to express an opinion on the Company's internal financialcontrols over financial reporting based on our audit. We conducted our audit in accordancewith the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting(the "Guidance Note") issued by the Institute of Chartered Accountants of Indiaand the Standards on Auditing prescribed under Section 143(10) of the Companies Act 2013to the extent applicable to an audit of internal financial controls. 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 was established and maintained and if such controlsoperated effectively in all material respects.

Our audit involves performing procedures to obtain audit evidence about the adequacy ofthe internal financial controls system over financial reporting and their operatingeffectiveness. Our audit of internal financial controls over financial reporting includedobtaining an understanding of internal financial controls over financial reportingassessing the risk that a material weakness exists and testing and evaluating the designand operating effectiveness of internal control based on the assessed risk. The proceduresselected depend on the auditor’s judgement including the assessment of the risks ofmaterial misstatement of the financial statements whether due to fraud or error.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the Company’s internal financial controlssystem over financial reporting.

Meaning of Internal Financial Controls Over Financial Reporting

A company's internal financial control over financial reporting is a process designedto provide reasonable assurance regarding the reliability of financial reporting and thepreparation of financial statements for external purposes in accordance with generallyaccepted accounting principles. A company's internal financial control over financialreporting includes those policies and procedures that (1) pertain to the maintenance ofrecords that in reasonable detail accurately and fairly reflect the transactions anddispositions of the assets of the company; (2) provide reasonable assurance thattransactions are recorded as necessary to permit preparation of financial statements inaccordance with generally accepted accounting principles and that receipts andexpenditures of the company are being made only in accordance with authorisations ofmanagement and directors of the company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorised acquisition use or disposition of thecompany's assets that could have a material effect on the financial statements.

Inherent Limitations of Internal Financial Controls Over Financial Reporting

Because of the inherent limitations of internal financial controls over financialreporting including the possibility of collusion or improper management override ofcontrols material misstatements due to error or fraud may occur and not be detected.Also projections of any evaluation of the internal financial controls over financialreporting to future periods are subject to the risk that the internal financial controlover financial reporting may become inadequate because of changes in conditions or thatthe degree of compliance with the policies or procedures may deteriorate.

Opinion

In our opinion to the best of our information and according to the explanations givento us the Company has in all material respects an adequate internal financial controlssystem over financial reporting and such internal financial controls over financialreporting were operating effectively as at March 31 2019 based on the criteria forinternal financial control over financial reporting established by the Company consideringthe essential components of internal control stated in the Guidance Note on Audit ofInternal Financial Controls Over Financial Reporting issued by the Institute of CharteredAccountants of India.

For DELOITTE HASKINS & SELLS LLP
Chartered Accountants
(Firm’s Registration No. 117366W/W-100018)
Shyamak R Tata
Place: New Delhi Partner
Date: May 06 2019 (Membership No. 38320)

Annexure "B" to the Independent Auditor’s Report

(Referred to in paragraph 2 under ‘Report on Other Legal and RegulatoryRequirements’ section of our report to the Members of Bharti Airtel Limited of evendate)

i. In respect of Company’s fixed assets:

a) The Company has maintained proper records showing full particulars with respect tomost of its fixed assets and is in the process of updating quantitative and situationdetails with respect to certain fixed assets in the records maintained by the Company

b) The Company has a program of verification of fixed assets to cover all the items ina phased manner over a period of three years which in our opinion is reasonable havingregard to the size of the Company and the nature of its assets. Pursuant to the programcertain fixed assets were physically verified by the Management during the year. Accordingto the information and explanations given to us no material discrepancies were noticed onsuch verification.

c) According to the information and explanations given to us the records examined byus and based on examination of property tax receipts utility bills lease agreement forland on which building is constructed registered sale deed / transfer deed / conveyancedeed or court orders approving schemes of arrangements / amalgamations provided to us wereport that the title in respect of self-constructed buildings and the title deedscomprising all the immovable properties of land and buildings which are freehold are heldin the name of the Company as at the balance sheet date.

In respect of immovable properties that have been taken on lease and disclosed asproperty plant and equipment in the financial statements based on our examination of thelease agreements or court orders approving the schemes of arrangement or amalgamations wereport that the lease agreements are in the name of the Company where the Company is thelessee in the agreement.

ii. As explained to us the inventories except for those lying with the third partieswere physically verified during the year by the Management at reasonable intervals and nomaterial discrepancies were noticed on physical verification.

iii. According to information and explanation given to us the Company has not grantedany loans secured or unsecured to companies firms Limited Liability Partnerships orother parties covered in the register maintained under section 189 of the Companies Act2013.

iv. In our opinion and according to the information and explanations given to us thereare no loans investments guarantees and securities granted in respect of whichprovisions of Section 185 and 186 of the Companies Act 2013 are applicable.

v. According to the information and explanations given to us the Company has notaccepted deposits during the year and does not have any unclaimed deposits as at March 312019 and therefore the provisions of the clause 3 (v) of the Order are not applicable.

vi. The maintenance of cost records has been specified by the Central Government undersection 148(1) of the Companies Act 2013. We have broadly reviewed the cost recordsmaintained by the Company pursuant to the Companies (Cost Records and Audit) Rules 2014as amended prescribed by the Central Government under sub-section (1) of Section 148 ofthe Companies Act 2013 and are of the opinion that prima facie the prescribedcost records have been made and maintained. We have however not made a detailedexamination of the cost records with a view to determine whether they are accurate orcomplete.

vii. According to the information and explanations given to us in respect of statutorydues:

(a) The Company is regular in depositing undisputed statutory dues including ProvidentFund Employees’ State Insurance Income-tax Goods and Services Tax Customs Dutycess and other material statutory dues applicable to it to the appropriate authorities.

(b) There were no undisputed amounts payable in respect of Provident FundEmployees’ State Insurance Income- tax Goods and Services Tax Customs Duty cessand other material statutory dues in arrears as at March 31 2019 for a period of morethan six months from the date they became payable.

(c) Details of dues of Income-tax Sales Tax Service Tax Customs Duty Value AddedTax and Goods and Service Tax which have not been deposited as on March 31 2019 onaccount of disputes are given below:

Name of the Statutes Nature of the Dues Amount Disputed (in Rs Million) Period to Which the amount Relates Forum where the dispute is pending
Income Tax Act 1961 Income Tax 128 1999-05 2002-08 Supreme Court
Income Tax Act 1961 Income Tax 10519 1996-08 2001-10 High Court
Income Tax Act 1961 Income Tax 25816 1995-13 2003-15 Income Tax Appellate Tribunal
Income Tax Act 1961 Income Tax 604 1999-00 2004-18 Commissioner of Income Tax
Income Tax Act 1961 Income Tax 638 2000-06 1996-14 Assessing Officer
Sub Total (A) 37705
Andhra Pradesh VAT Act 2005 Sales Tax 87 2004-13 Tribunal
Andhra Pradesh VAT Act 2005 Sales Tax 33 2013-15 Deputy Commissioner (Appeals)
Andhra Pradesh VAT Act 2005 Sales Tax 39 2015-18 Assistant Commissioner
Bihar VAT Act 2005 Sales Tax 0* 2015-16 Assistant Commissioner
Bihar VAT Act 2005 Sales Tax 2 2006-07 Commercial Tax Officer
Bihar VAT Act 2005 Sales Tax 1 2016-17 Deputy Commissioner
Bihar VAT Act 2005 Sales Tax 22 2015-17 Joint Commissioner (Appeal)
Bihar VAT Act 2005 Sales Tax 139 2005-15 Tribunal
Chhattisgarh VAT Act 2003 Sales Tax 0* 2006-07 Assistant Commissioner
Delhi VAT Act 2004 Sales Tax 0* 2012-13 Add. Commissioner
Delhi VAT Act 2004 Sales Tax 6 2011-14 Add. Commissioner
The Gujarat VAT Act 2003 Sales Tax 1 2005-07 Assistant/Deputy Commissioner
The Karnataka VAT Act 2003 Sales Tax 291 2005-06 Supreme Court
The Karnataka VAT Act 2003 Sales Tax 0* 2012-13 Deputy Commissioner
The Karnataka VAT Act 2003 Sales Tax 2 2016-17 Karnataka Appellate Tribunal
The Kerala VAT Act 2003 Sales Tax 1 2005-17 Commercial Tax Officer
The Kerala VAT Act 2003 Sales Tax 0* 2016-17 Intelligence Officer Ernakulam
Kerala Sales Tax Act Sales Tax 16 2005-10 Deputy Commissioner Appeal
Kerala Sales Tax Act Sales Tax 0* 2008-10 Intelligence Officer Squad
Kerala Sales Tax Act Sales Tax 1 2002-05 Tribunal
The Kerala VAT Act 2003 Sales Tax 71 2006-07 High Court of Kerala
The Kerala VAT Act 2003 Sales Tax 44 2007-12 Asst. Commissioner Spl Circle III Ernakulam
The Kerala VAT Act 2003 Sales Tax 0* 2015-16 Intelligence Inspector Squad No. I Tellichery
The Kerala VAT Act 2003 Sales Tax 0* 2015-16 Intelligence Inspector Squad No. 3 Ernakulam
The Madhya Pradesh VAT Act 2002 Sales Tax 7 2008-13 Tribunal
The Madhya Pradesh VAT Act 2002 Sales Tax 0* 2004-08 Commercial Tax Officer
The Madhya Pradesh VAT Act 2002 Sales Tax 1 2008-10 Deputy Commissioner
The Madhya Pradesh VAT Act 2002 Sales Tax 22 1997-04 Deputy Commissioner Appeal
The Maharashtra VAT Act 2002 Sales Tax 0* 2003-04 Joint Commissioner Appeal
Punjab VAT Act 2005 Sales Tax 1 2009-17 Deputy Commissioner (Appeal)
Punjab VAT Act 2005 Sales Tax 30 2003-04 High Court
Punjab VAT Act 2005 Sales Tax 1 2002-03 Tribunal
Rajasthan VAT Act Sales Tax 2 2015-16 Commercial Tax Officer
Rajasthan VAT Act Sales Tax 0* 2015-16 Assistant Commissioner
The TN VAT Act Sales Tax 0* 2010-11 Deputy Commercial tax Officer
The UP VAT Act Sales Tax 11 2005-13 Assessing officer
The UP VAT Act Sales Tax 1 2002-19 Assistant Commissioner
The UP VAT Act Sales Tax 1 2009-10 Joint Commissioner
The UP VAT Act Sales Tax 6 2008-10 High court
The UP VAT Act Sales Tax 3 2003-08 Joint Commissioner Appeal
The UP VAT Act Sales Tax 9 2005-10 Tribunal
The UP VAT Act Sales Tax 1 2015-16 Commissioner (Appeals)
The UP VAT Act Sales Tax 26 2003-17 Deputy Commissioner
The West Bengal VAT Act 2003 Sales Tax 0* 1996-97 The Deputy Commissoner of Commercial Taxes
The West Bengal VAT Act 2003 Sales Tax 0* 1995-98 Commercial Tax Officer
The West Bengal VAT Act 2003 Sales Tax 9 2005-06 Commissioner
The West Bengal VAT Act 2003 Sales Tax 3 1997-12 Tribunal
Sub Total (B) 890
Finance Act 1994 (Service tax provisions ) Service Tax 278 1995-08 Supreme Court
Finance Act 1994 (Service tax provisions ) Service Tax 51 2002-07 High court
Finance Act 1994 (Service tax provisions ) Service Tax 6083 1995-16 Tribunal
Finance Act 1994 (Service tax provisions ) Service Tax 821 1999-13 Commissioner/Deputy Commissioner of Service Tax
Finance Act 1994 (Service tax provisions ) Service Tax 1 2003-04 Deputy Commissioner
Sub Total (C) 7234
Goods and Services Tax Act 2017 UPGST 14 2017-19 Assistant Commissioner
Sub Total (D) 14
Custom Act 1962 Custom Act 4128 2001-05 Supreme Court
Custom Act 1962 Custom Act 755 2003-15 Tribunal
Sub Total (E) 4883
Grand Total (A+B+C+D+E): 50728

The above mentioned figures represent the total disputed cases without any assessmentof Probable Possible and Remote as done in case of Contingent Liabilities. Of the abovecases total amount deposited in respect of Sales Tax is 341 Mn Service Tax is 497 MnGoods & Services Tax Act 2017 is 0* Mn Custom Duty is 2142 Mn and Income Tax is16774 Mn.

* Amount less than million are appearing as ‘0’.

viii. In our opinion and according to the information and explanations given to us theCompany has not defaulted in the repayment of loans or borrowings to financialinstitutions banks and government and dues to debenture holders.

ix. During the current year the Company has not raised moneys by way of initial publicoffer or further public offer (including debt instruments). In our opinion and accordingto the information and explanations given to us the term loans have been applied by theCompany during the year for the purposes for which they were raised other than temporarydeployment pending application of proceeds.

x. To the best of our knowledge and according to the information and explanations givento us no fraud by the Company and no material fraud on the Company by its officers oremployees has been noticed or reported during the year.

xi. In our opinion and to the best of our information and according to explanationgiven to us the remuneration paid / accrued by the Company to its Chairman and ManagingDirector & CEO (India and South Asia) for the year ended March 31 2019 is in excessby H 300.66 Million vis-a-vis the limits specified in section 197 of Companies Act 2013(‘the Act’) read with Schedule V thereto as the Company does not have profits.The Company has represented to us that it is in the process of complying with theprescribed statutory requirements to regularize such excess payments including seekingapproval of shareholders as necessary.

xii. The Company is not a Nidhi Company and hence reporting under clause 3 (xii) of theOrder is not applicable.

xiii. In our opinion and according to the information and explanations given to us theCompany is in compliance with Section 177 and 188 of the Companies Act 2013 whereapplicable for all transactions with the related parties and the details of related partytransactions have been disclosed in the financial statements etc. as required by theapplicable accounting standards.

xiv. During the year the Company has not made any preferential allotment or privateplacement of shares or fully or partly convertible debentures and hence reporting underclause 3 (xiv) of the Order is not applicable to the Company.

xv. In our opinion and according to the information and explanations given to usduring the year the Company has not entered into any non-cash transactions with itsdirectors or directors of its holding subsidiary or associate company or personsconnected with them and hence provisions of section 192 of the Companies Act 2013 are notapplicable.

xvi. The Company is not required to be registered under section 45-IA of the ReserveBank of India Act 1934.

For DELOITTE HASKINS & SELLS LLP
Chartered Accountants
(Firm’s Registration No. 117366W/W-100018)
Shyamak R Tata
Place: New Delhi Partner
Date: May 06 2019 (Membership No. 38320)