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Bharti Airtel Ltd.

BSE: 532454 Sector: Telecom
NSE: BHARTIARTL ISIN Code: INE397D01024
BSE 00:00 | 21 Sep 372.40 2.70
(0.73%)
OPEN

367.80

HIGH

377.05

LOW

356.90

NSE 00:00 | 21 Sep 370.50 0.45
(0.12%)
OPEN

364.90

HIGH

379.85

LOW

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OPEN 367.80
PREVIOUS CLOSE 369.70
VOLUME 240656
52-Week high 565.00
52-Week low 331.20
P/E
Mkt Cap.(Rs cr) 148,863
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 367.80
CLOSE 369.70
VOLUME 240656
52-Week high 565.00
52-Week low 331.20
P/E
Mkt Cap.(Rs cr) 148,863
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Bharti Airtel Ltd. (BHARTIARTL) - Auditors Report

Company auditors report

To the members of

BHARTI AIRTEL LIMITED

Report on the Standalone Financial Statements

We have audited the accompanying Standalone Financial Statements of BHARTI AIRTELLIMITED ("the Company") which comprise the Standalone Balance Sheet as atMarch 31 2018 the Standalone Statement of Profit and Loss (including Other ComprehensiveIncome) the Standalone Statement of Cash Flows and the Standalone Statement of Changes inEquity for the year ended on that date and a summary of the significant accountingpolicies and other explanatory information (hereinafter referred to as "StandaloneFinancial Statements").

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 Companies Act2013 ("the Act") with respect to the preparation ofthese Standalone Financial Statements that give a true and fair view of the financialposition financial performance including other comprehensive income cash flows andchanges in equity of the Company in accordance with the Indian Accounting Standards (IndAS) prescribed under section 133 of the Companies Act2013 read with the Companies (IndianAccounting Standards) Rules 2015 as amended and other accounting principles generallyaccepted in India.

This responsibility also includes maintenance of adequate accounting records inaccordance with the provisions of the Act for safeguarding the assets of the Company andfor preventing and detecting frauds and other irregularities; selection and application ofappropriate accounting policies; making judgments and estimates that are reasonable andprudent; and design implementation and maintenance of adequate internal financialcontrols that were operating effectively for ensuring the accuracy and completeness ofthe accounting records relevant to the preparation and presentation of the StandaloneFinancial Statements that give a true and fair view and are free from materialmisstatement whether due to fraud or error.

Auditor’s Responsibility

Our responsibility is to express an opinion on these Standalone Financial Statementsbased on our audit.

In conducting our audit we have taken into account the provisions of the Act theaccounting and auditing standards and matters which are required to be included in theaudit report under the provisions of the Act and the Rules made thereunder and the Orderissued under section 143(11) of the Act.

We conducted our audit of the Standalone Financial Statements in accordance with theStandards on Auditing specified under Section 143(10) of the Act. Those Standards requirethat we comply with ethical requirements and plan and perform the audit to obtainreasonable assurance about whether the Standalone Financial Statements are free frommaterial misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts andthe disclosures in the Standalone Financial Statements. The procedures selected depend onthe auditor’s judgment including the assessment of the risks of materialmisstatement of the Standalone Financial Statements whether due to fraud or error. Inmaking those risk assessments the auditor considers internal financial control relevantto the Company’s preparation of the Standalone Financial Statements that give a trueand fair view in order to design audit procedures that are appropriate in thecircumstances. An audit also includes evaluating the appropriateness of the accountingpolicies used and the reasonableness of the accounting estimates made by theCompany’s Board of Directors as well as evaluating the overall presentation of theStandalone Financial Statements.

We believe that the audit evidence obtained by us is sufficient and appropriate toprovide a basis for our audit opinion on the Standalone Financial Statements.

Opinion

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 Act in the manner so required and give a true and fair view in conformity with theInd AS and other accounting principles generally accepted in India of the state ofaffairs of the Company as at March 31 2018 its profit total comprehensive incomechanges in equity and its cash flows for the year ended on that date.

Emphasis of Matter

We draw attention to Note 23(i)(f)(v) to 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.

Other Matter

The comparative financial information of the Company for the year ended March 31 2017prepared in accordance with Ind AS included in these Standalone Financial Statements havebeen audited by the predecessor auditor. The report of the predecessor auditor oncomparative financial statements for the year ended and as at March 31 2017 dated May 92017 expressed an unqualified opinion. Our opinion is not modified in respect of thismatter.

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 Cash Flows and StandaloneStatement of Changes in Equity dealt with by this Report are in agreement with the booksof account.

d) In our opinion the aforesaid standalone financial statements comply with the IndianAccounting Standards prescribed under section 133 of the Act.

e) On the basis of the written representations received from the directors of theCompany as on 31st March 2018 taken on record by the Board of Directors none of thedirectors is disqualified as on 31st March 2018 from being appointed as a director interms of Section 164(2) of the Act.

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 unmodified opinion onthe adequacy and operating effectiveness of the Company’s internal financial controlsover financial reporting.

g) 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 3 and 4of the Order.

For DELOITTE HASKINS & SELLS LLP

Chartered Accountants

(Firm’s Registration No. 117366W/W-100018)

Hemant M. Joshi

Partner

(Membership No. 38019)

Place: New Delhi

Date: April 24 2018

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 of even date)

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 internal financial controls over financial reporting of BhartiAirtel Limited ("the Company") as of March 31 2018 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 processdesigned to provide reasonable assurance regarding the reliability of financial reportingand the preparation of financial statements for external purposes in accordance withgenerally accepted accounting principles. A company’s internal financial control overfinancial reporting includes those policies and procedures that (1) pertain to themaintenance of records that in reasonable detail accurately and fairly reflect thetransactions and dispositions of the assets of the company; (2) provide reasonableassurance that transactions are recorded as necessary to permit preparation of financialstatements in accordance with generally accepted accounting principles and that receiptsand expenditures 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 2018 based on the criteria forinternal control over financial reporting established by the Company considering theessential components of internal control stated in the Guidance Note on Audit of InternalFinancial 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)
Hemant M. Joshi
Partner
(Membership No. 38019)
Place: New Delhi
Date: April 24 2018

Annexure "B" to the

Independent Auditor’s Report

(Referred to in paragraph 2 under ‘Report on Other Legal and RegulatoryRequirements’ section of our report of even date) i. In respect of its fixedassets:

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 312018 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 prescribed costrecords have been made and maintained. We have however not made a detailed examinationof the cost records with a view to determine whether they are accurate or complete.

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 Sales Tax Service Tax Goods andServices Tax Customs Duty Value Added Tax cess and other material statutory duesapplicable to it to the appropriate authorities. As explained to us the provisionsrelating to duty of excise are not applicable to the Company.

(b) There were no undisputed amounts payable in respect of Provident FundEmployees’ State Insurance Income-tax Sales Tax Value Added Tax Service TaxGoods and Services Tax Customs Duty cess and other material statutory dues in arrears asat March 31 2018 for a period of more than six months from the date they became payable.

(c) There are no dues of Goods and Service Tax cess which have not been deposited onaccount of any dispute. Details of dues of Income-tax Sales Tax Value Added Tax ServiceTax and Customs Duty which have not been deposited as on March 31 2018 on account ofdisputes are given below:

Name of the Statutes Nature of the Dues Amount Disputed (in J Million) Period to Which the amount Relates Forum where the dispute is pending
Andhra Pradesh VAT Act 2005 Sales Tax 87 2004-13 Tribunal
Andhra Pradesh VAT Act 2005 Sales Tax 52 2013-15 Deputy Commissioner (Appeals)
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 6 2011-14 Assistant Commissioner
The Gujarat VAT Act 2003 Sales Tax 1 2005-07 Assistant Commissioner
The Karnataka VAT Act 2003 Sales Tax 291 2005-06 Assistant Commissioner
The Karnataka VAT Act 2003 Sales Tax 0* 2012-13 Deputy Commissioner
The Karnataka VAT Act 2003 Sales Tax 2 2016-17 Joint Commissioner (Appeal)
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 Ernakulum
Kerala Sales Tax Act Sales Tax 0* 2005-11 Commercial tax Officer
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 2008-102012-13 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 Madhya Pradesh VAT Act 2002 Sales Tax 0* 2005-06 Assistant Commissioner
The Maharashtra VAT Act 2002 Sales Tax 0* 2003-04 Joint Commissioner Appeal
Punjab VAT Act 2005 Sales Tax 1 2009-17 Deputy Excise and Taxation Commissioner
Punjab VAT Act 2005 Sales Tax 30 2003-04 High Court
Punjab VAT Act 2005 Sales Tax 1 2002-03 Jt. Director( Enforcement)
Punjab VAT Act 2005 Sales Tax 1 2008-10 Tribunal
Rajasthan VAT Act 2003 Sales Tax 2 2015-16 Commercial Tax Officer
The Tamil Nadu VAT Act 2003 Sales Tax 0* 2010-11 Deputy Commissioner

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 according to the information and explanations given to us theCompany has paid / provided managerial remuneration in accordance with the requisiteapprovals mandated by the provisions of Section 197 read with Schedule V to the CompaniesAct 2013 except that the commission of H 67.64 million to non-executive directors is inexcess by H 33.12 million basis the lower limits approved by the Shareholders of theCompany. As informed the Company would be seeking Shareholders’ approval for thesaid excess amount at the ensuing Annual General Meeting.

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 company directors of subsidiary company ordirectors of associate company or persons connected with them and hence provisions ofsection 192 of the Companies Act 2013 are not applicable.

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)

Hemant M. Joshi

Partner

(Membership No. 38019)

Place: New Delhi

Date: April 24 2018