Together good things happen - Airtel

Annexure referred to in paragraph 4 of our report of even
date
Re: BHARTI AIRTEL LIMITED (‘the Company’)
(i) (a) The Company has maintained proper records
showing full particulars, including quantitative details
and situation with respect to most of its fixed assets
and is in the process of updating quantitative and
situation details with respect to certain fixed assets
i.e. office equipments, in the records maintained by
the Company.
(b) The capitalized fixed assets are physically verified by
the management according to a regular programme
designed to cover all the items over a period of three
years. Pursuant to the programme, a portion of fixed
assets and capital work in progress at warehouses has
been physically verified by the management during
the year, which in our opinion is reasonable having
regard to the size of the Company and nature of its
assets. As informed, no material discrepancies were
noticed on such verification.
(c) There was no substantial disposal of fixed assets
during the year.
(ii) (a) The inventory (other than inventory with third parties)
has been physically verified by the management
during the year. In our opinion, the frequency of
verification is reasonable.
(b) The procedures of physical verification of inventory
followed by the management are reasonable and
adequate in relation to the size of the Company and
the nature of its business.
(c) The Company is maintaining proper records of
inventory and no material discrepancies were noticed
on physical verification.
(iii) The Company has neither granted nor taken any loans,
secured or unsecured, to companies, firms or other
parties covered in the register maintained under section
301 of the Companies Act, 1956. Accordingly, clauses (iii)
of the Companies (Auditor’s Report) Order, 2003 (as
amended) are not applicable to the Company for the
current year.
(iv) In our opinion and according to the information and
explanations given to us, having regard to the
explanation that certain items purchased are of special
nature for which suitable alternative sources do not exist
for obtaining comparative quotations, there is an
adequate internal control system commensurate with
the size of the Company and the nature of its business for
the purchase of inventory, fixed assets and for the sale of
goods and services. Further, on the basis of our
examination of the books and records of the Company,
and according to the information and explanations given
Bharti Airtel Annual Report 2009-10
to us, we have neither come across nor have been
informed of any continuing failure to correct major
weaknesses in the aforesaid internal control system.
(v) According to the information and explanations provided
by the management, there are no transactions pursuant
to the contracts or arrangements referred to in section
301 that are required to be entered in the register
maintained under section 301 of the Companies Act,
1956.
(vi) The Company has not accepted any deposits from the
public within the meaning of Sections 58A and 58AA of
the Act and the rules framed there under.
(vii) In our opinion, the Company has an internal audit system
commensurate with the size and nature of its business.
(viii) We have broadly reviewed the books of accounts
maintained by Company pursuant to the rules made by
the Central Government for the maintenance of cost
records under section 209(1) (d) of the Companies Act,
1956 and are of the opinion that prima facie, the
prescribed accounts and records have been made and
maintained. We have not, however, made a detailed
examination of records with a view to determine
whether they are accurate or complete.
(ix) (a) The Company is generally regular in depositing with
appropriate authorities undisputed statutory dues
including provident fund, investor education and
protection fund, employees’ state insurance, incometax,
sales-tax, wealth-tax, service tax, customs duty
and cess and other material statutory dues applicable
to it. The provisions relating to excise duty is not
applicable to the Company.
Further, since the Central Government has till date not
prescribed the amount of cess payable under section
441 A of the Companies Act, 1956, we are not in a
position to comment upon the regularity or otherwise
of the company in depositing the same.
(b) According to the information and explanations given
to us, no undisputed amounts payable in respect of
provident fund, investor education and protection
fund, employees’ state insurance, income-tax, salestax,
wealth-tax, service tax, customs duty, cess and
other undisputed statutory dues were outstanding, at
the year end, for a period of more than six months
from the date they became payable.
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