Auditing

T.Y.B.Com (Banking & Insurance)

S.K.Somaiya College

Assignment on Audit Report

of

Bharti-Airtel Limited

Done by:
Roll No. Name
03 Ashwyn
Rajiv
 INDEX

1. Introduction
1.1 Background
a) Incorporation and History
b) Description of Business

2. Board of Directors

3. Corporate Governance

4. Audit Committee

5. Auditor's Report

6. Performance at a Glance (Comparison with P.Y.)

7. Conclusion
INTRODUCTION:

BACKGROUND:

a) Incorporation and History:

• Bharti Airtel Limited (‘Bharti Airtel’ or ‘the Company’) (formerly ‘Bharti
Tele-Ventures Limited - BTVL’) was incorporated on July 7, 1995 under the
laws of India for promoting investments in telecommunication services.
Bharti Airtel together with its subsidiaries is hereinafter referred to as ‘the
Group’. The Group is a leading telecommunication service provider in India.

• The Group’s principal shareholders include Bharti Telecom Limited,

Singapore Telecommunication International Pte Limited and Vodafone
International Holdings B.V.

• The shares of the Company are listed on the National Stock Exchange
(‘NSE’) and the Mumbai Stock Exchange (‘BSE’), India.

• With effect from April 24, 2006, the name of the Company has been changed
from Bharti Tele-Ventures Limited (‘BTVL’) to Bharti Airtel Limited (‘Bharti
Airtel’).

b) Description of Business:
• The current businesses of the Group include:
• mobile services
• broadband and telephone services
• enterprise services carriers; and
• enterprise services corporate
Board of Directors:

The board of directors of the Company has an optimum mix of executive and non-
executive directors, which consists of 2 executive and 12 non-executive directors.The
Chairman and Managing Director, Mr. Sunil Bharti Mittal, is an Executive Director
and the number of Independent Directors on the Board is 50% of the total board
strength.

 Sunil Mittal:

 Chua Sock Koong:

 N. Kumar:
Corporate Governance:
Bharti Airtel Limited firmly believes in the principles of Corporate Governance and is
committed to conduct its business in a manner, which will ensure sustainable, capital-
efficient and long-term growth thereby maximising value for its shareholders,
customers, employees and society at large. Company’s policies are in line with
Corporate Governance guidelines prescribed under Listing Agreement/s with Stock
Exchanges and the Company ensures that various disclosures requirements are
complied in ‘letter and spirit’ for effective Corporate Governance.
During the financial year 2003-04, the Company was assigned highest Governance and
Value Creation (GVC) rating viz. ‘Level 1’ rating by CRISIL, which indicates that the
company’s capability with respect to creating wealth for all its stakeholders is the
highest, while adopting sound Corporate Governance practices.This rating was re-
affirmed by CRISIL on April 20, 2006.

Audit Committee:
The audit committee of Bharti-Airtel Limited comprises the following six members,
two-thirds of which are independent directors.
Sl. No Member Director Category
1. N. Kumar (Chairperson) Independent Director
2. Rakesh Bharti Mittal Non-Executive Director
3. Francis Heng Non-Executive Director
4. Arun Bharat Ram Independent Director
5. Ajay Lal Independent Director
6. Pulak Chandan Prasad Independent Director
Auditor's Report:

Report of Independent Auditors

To the Board of Directors and Shareholders of Bharti Airtel Limited

(Formerly, Bharti Tele-Ventures Limited)

In our opinion, the accompanying consolidated Balance Sheet and the related
consolidated Statement of Operations, of Cash Flows and of Changes in Stockholders’
Equity, present fairly, in all material respects, the financial position of Bharti Airtel
Limited and its subsidiaries (together the “Group”) at March 31, 2007 and 2006, and
the results of their operations and their cash flows for each of the years in the three
year period ended March 31, 2007, in conformity with accounting principles generally
accepted in the United States of America. These financial statements are the
responsibility of the Company’s management. Our responsibility is to express an
opinion on these financial statements based on our audits. We conducted our audits of
these statements in accordance with auditing standards generally accepted in United
States of America. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting the
amounts and disclosures in the financial statements, assessing the accounting
principles used and significant estimates made by management, and evaluating the
overall financial statement presentation. We believe that our audits provide a
reasonable basis for our opinion.

Price Waterhouse

New Delhi, India

Date :- April, 27th 2007

Performance at a Glance (Comparison with P.Y.):
Conclusion:
 Current share value (as of 27 Aug. 2008):