2 annual report 2002-2003 - Amazon S3

42 ANNUAL REPORT 2002-2003

INFORMATION REGARDING THE EMPLOYEES STOCK OPTION SCHEME

(as on 31-03-2003)

a) Number of Stock Options granted : 15,163,493

b) Pricing formula : 50% of IPO Price viz. Rs. 22.50

c) Number of options vested : 2,954,983

d) Number of options exercised : 23,330

e) Number of shares arising as a result of exercise of options : 23,330

f) Number of option lapsed : 1,674,793

g) Variance of terms of options : The vesting date for 880,000 stock options grantedto Mr. Akhil Gupta, Joint Managing Directorunder Scheme-II has been changed

h) Money realised by exercise of options : 524,925 /-

i) Number of options in force : 13,465,370

j) i. Options granted to senior managerial personnel

Name Designation No. of Options ESOP Scheme

Mr. Akhil Gupta Joint Managing Director 519,822 Scheme I

880,000 Scheme II

Mr. Badri Agarwal President (Infotel Leaders Group) 299,791 Scheme I

Mr. Anil Nayar Director (Chairman’s Office) 487,300 Scheme I

ii. Employees who have been granted : Nil5% or more of the stock optionsgranted during the year.

iii. Employees who have been granted : NilOptions during the any one-year equalto or exceeding 1% of the issuedcapital of the Company at the time of grant.

iv. Diluted Earnings Per Share (EPS) : 0.001pursuant to issue of shares on exerciseof options calculated in accordance withInternational Accounting Standard (IAS) 33

ANNEXURE

ANNUAL REPORT 2002-2003 43

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ANNEXURE TO DIRECTORS’ REPORT


REPORT ON CORPORATE GOVERNANCE



REPORT ON CORPORATE GOVERNANCEBharti Tele-Ventures Limited is committed to conduct its business in a manner that exemplifies growth in shareholder value through ever-improving financial results and world-class service. The Company has set a goal for attaining the highest standard of good governance,meticulously pursue it and thereby maximize value for its shareholders, customers, employees and public at large. During the financial yearended March 31, 2003, the Company has duly addressed the requirements of guidelines pertaining to Corporate Governance, as stipulatedunder the Listing Agreement with Stock Exchanges.

BOARD OF DIRECTORS

The Company has a broad based Board with an optimum mix of Executive and Non-Executive Directors. The Board consists of threeExecutive and eleven Non-Executive Directors. Seven Non-Executive Directors are independent i.e. they do not have any materialpecuniary relationship with the Company, its promoters or its management, which may affect the independence of the judgment of theDirector.

Mr. Sunil Bharti Mittal, Chairman and Managing Director, is an Executive Director and is the Chairman of the Board of Directors. TheBoard members possess requisite skills, experience and expertise required to take decisions, which are in the best interest of the Company.

Composition of the Board

The details of the Directors on the Board of the Company for the financial year 2002-2003 is as under:

Name of the Director Category Number of Other Committeeother Membership*

Directorshipsheld 1 Member Chairman

Mr. Sunil Bharti Mittal (Chairman) Executive 11 2 –

Mr. Akhil Gupta Executive 12 9 –

Mr. Bashir Currimjee Non-Executive Independent – – –

Ms. Chua Sock Koong Non-Executive 1 1 –

Mr. Dalip Pathak Non-Executive Independent 1 – –

Mr. Donald Cameron Non-Executive Independent – – –

Mr. Lim Toon Non-Executive 1 – –

Mr. Lung Chien Ping4

Non-Executive Independent – – –

Mr. N. Kumar Non-Executive Independent 12 5 2

Mr. P. M. Sinha3

Non-Executive Independent 3 1 1

Mr. Paul O’ Sullivan4

Non-Executive – – –

Mr. Pulak Prasad Non-Executive Independent 2 2 1

Mr. Rajesh Khanna5

Non-Executive Independent 2 2 –

Mr. Rajan Bharti Mittal Executive 9 3 –

Mr. Rakesh Bharti Mittal Non-Executive 8 1 1

Mr. Sin Hang Boon2

Non-Executive 1 2 –

Mr. Wong Hung Khim2

Non-Executive Independent – – –

* The committees considered for the purpose are those prescribed under clause 49(IV) of the Listing Agreement(s)

1. The Directorships held by the Directors, as mentioned above, do not include the Directorships held in foreign companies and privatelimited companies

2. Mr. Sin Hang Boon and Mr. Wong Hung Khim resigned from the Board with effect from February 27, 2003

3. Mr. P. M. Sinha resigned from the Board with effect from March 31, 2003 at the close of business hours

4. Mr. Paul O’ Sullivan and Mr. Lung Chien Ping joined the Board with effect from February 27, 2003

5. Mr. Rajesh Khanna appointed as Alternate Director to Mr. Dalip Pathak with effect from March 3, 2003


INFORMATION AVAILABLE TO THE BOARDAll requisite information as per clause 49 of the Listing Agreement is placed before the Board. Among others, this includes:• Annual operating plans, budgets and any updates therein• Quarterly results for the Company and its operating divisions or business segments• Capital budgets and any updates therein• Minutes of meetings of audit committee and other committees of the board• The information on recruitment/remuneration of senior officers just below the board level• Material show cause, demand, prosecution notices and penalty notices, if any• Any material default in financial obligations to and by the Company or substantial non payment for services sold by the Company• Details of any joint venture or collaboration agreement• Transactions involving substantial payment towards goodwill, brand equity or intellectual property• Significant developments in Human Resources• Sale of material nature, of investments, subsidiaries, assets, which is not in normal course of business• Non-compliance of any regulatory, statutory nature or listing requirements and shareholders serviceThe information with respect to the above heads is submitted either as part of the Agenda papers of the Board Meeting or are tabled duringcourse of the Board Meeting. Senior management personnel are also invited to the Board Meetings from time to time to present reports onthe Company’s operations and internal control systems.Attendance at the Board Meetings

During the year, the Board of Directors met four times. The meetings were held on May 31, 2002; July 5, 2002; October 29, 2002 andJanuary 14, 2003.

The attendance of each of the Directors at the Board Meetings and at the last Annual General Meeting (AGM) is presented below.

Name of the Director Number of Board Meetings attended Attended last AGM(Total meetings held : 4) September 20, 2002

Mr. Sunil Bharti Mittal (Chairman) 4 Yes

Mr. Akhil Gupta 3 No

Mr. Bashir Currimjee 1 Yes

Ms. Chua Sock Koong 2* No

Mr. Dalip Pathak – No

Mr. Donald Cameron 2 No

Mr. Lim Toon 3* No

Mr. Lung Chien Ping3

N.A. N.A.

Mr. N. Kumar 3 No

Mr. P. M. Sinha2

4 Yes

Mr. Paul O’ Sullivan3

N.A. N.A.

Mr. Pulak Prasad 2 No

Mr. Rajesh Khanna4

N.A. N.A.

Mr. Rajan Bharti Mittal 4 Yes

Mr. Rakesh Bharti Mittal 2* No

Mr. Sin Hang Boon1

3* No

Mr. Wong Hung Khim1

1 No

* One (1) meeting attended through Alternate Director

1. Mr. Sin Hang Boon and Mr. Wong Hung Khim resigned from the Board with effect from February 27, 2003

2. Mr. P. M. Sinha resigned from the Board with effect from March 31, 2003 at the close of business hours

3. Mr. Paul O’ Sullivan and Mr. Lung Chien Ping joined the Board with effect from February 27, 2003

4. Mr. Rajesh Khanna appointed as Alternate Director to Mr. Dalip Pathak with effect from March 3, 2003


AUDIT COMMITTEE

The Company has constituted an Audit Committee, which deals in all matters relating to financial reporting and internal controls. Thescope of the Audit Committee has been defined by the Board of Directors in accordance clause 49 of the Listing Agreement, which amongothers, includes:

• Reviewing the Company’s financial reporting processes and systems

• Recommending the appointment and removal of statutory auditors, taking decisions regarding audit fee and related expenses

• Reviewing the Company’s financial and risk management policies

• Reviewing with management the half-yearly and annual financial statements, before submission to the Board, focusing primarily on:

♦ changes in accounting policies and practices;

♦ major accounting entries, qualifications and accounting issues based on the managements discretion and judgement;

♦ compliance with the accounting standards;

♦ compliance with the stock exchange and legal requirements, concerning financial statements;

♦ any related party transactions; and

♦ internal audit processes and systems.

The Audit Committee specifically reviews the un-audited quarterly financial results before these are submitted to the Board for approval.Minutes of each Audit Committee meeting are placed before the Board for information.

Composition and Attendance

Majority of members of the Audit Committee including the Chairman of the committee, Mr. Bashir Currimjee, are Non-ExecutiveIndependent Directors. The Company Secretary of the Company acts as the secretary of the committee. All the members of the committeehave adequate financial and accounting knowledge.

During the year, the committee met three times viz. on May 31, 2002; October 29, 2002 and January 14, 2003. The composition andDirectors’ attendance at the committee meetings is presented below:

Member Director Category No. of Meetings Attended(Total Meetings held : 3)

Mr. Bashir Currimjee (Chairman) Non-Executive Independent 1

Mr. Akhil Gupta Executive 2

Ms. Chua Sock Koong Non-Executive 1

Mr. N. Kumar Non-Executive Independent 3

Mr. Pulak Prasad Non-Executive Independent 2

HUMAN RESOURCE (HR)/REMUNERATION COMMITTEE

The Company has constituted a Human Resource committee (HR committee), which also discharges the functions of the remunerationcommittee. The scope of the HR committee has been defined by the Board of Directors in accordance clause 49 of the Listing Agreement,which among others, includes:

• Framing policies and compensation including salaries and salary adjustments, incentives, bonuses, promotions, benefits, stock optionsand performance targets of top executives.

• Remuneration of Directors.

• Strategies for attracting and retaining employees, employee development programmes

• Key issues referred by the Board


Composition and Attendance

The committee has seven Directors, majority of whom are Non-Executive Independent Directors. The Chairman of the committee,Mr. Rakesh Bharti Mittal, is a Non-Executive Director.



Mr. Rakesh Bharti Mittal (Chairman) Non-Executive 1

Mr. Bashir Currimjee Non-Executive Independent 1

Mr. Donald Cameron Non-Executive Independent 2

Mr. P. M. Sinha Non-Executive Independent 3

Mr. Pulak Prasad1

Non-Executive Independent 2

Mr. Rajan Bharti Mittal Executive 3

Mr. Sin Hang Boon Non-Executive 2

1. Mr. Pulak Prasad was appointed as member of the HR committee in place of Mr. Dalip Pathak on May 31, 2002

ESOP COMPENSATION COMMITTEE

The Company has constituted a ESOP Compensation committee in accordance with SEBI (Employee Stock Option Scheme and EmployeeStock Purchase Scheme) Guidelines, 1999 for administration and superintendence of Employee Stock Option Plan (ESOP) of the Company.

The committee has seven Directors, majority of whom are Non-Executive Independent Directors.

Scope of the Compensation committee

The ESOP Compensation committee formulates policies and procedures to ensure that there is no violation of SEBI (Insider TradingRegulations) and (Prohibition of Fraudulent and Unfair Trade Practices relating to Securities Market) Regulations by any employee.

The committee also decides matters relating to grant of options, quantum of options, pricing under the ESOP for eligible employees andframes policies to monitor the same.

Composition and attendance

The Chairman of the committee, Mr. Rakesh Bharti Mittal, is a Non-Executive Director. The Company Secretary of the Company acts asthe secretary of the committee.




Mr. Bashir Currimjee Non-Executive Independent 1

Mr. Donald Cameron Non-Executive Independent 2

Mr. P. M. Sinha Non-Executive Independent 3

Mr. Pulak Prasad1

Non-Executive Independent 2


Mr. Sin Hang Boon Non-Executive 2

1. Mr. Pulak Prasad was appointed as member of the ESOP Compensation committee in place of Mr. Dalip Pathak on May 31, 2002


REMUNERATION OF DIRECTORS

The remuneration payable to the Chairman & Managing Director and the Executive Directors is reviewed by the HR committee andapproved by the Board of Directors and the shareholders of the Company.

The details of the remuneration paid to the Executive Directors of the Company and the subsidiary companies in their capacity as Directors/Advisors for the year ended March 31, 2003, is presented below:

Executive Directors

I. Sunil Bharti Mittal – Chairman & Managing Director

Salary & Allowances Performance Retainership Fees Advisory Fees@ Contribution to PFLinked Incentive & Other Funds Total

BTVL BCL BIL BIL BTVL

2,400,000 23,750,000 12,900,000 13,860,000 288,000 53,198,000

@ inclusive of Service Tax

II. Rajan Bharti Mittal – Joint Managing Director

Salary & Allowances Performance Advisory Fees ContributionLinked Incentive to PF & Other Funds Total

BTVL BIL BIL BTVL

2,400,000 6,000,000 5,850,000 288,000 14,538,000

III. Akhil Gupta – Joint Managing Director

Salary & Allowances Performance Advisory Fees ContributionLinked Incentive to PF & Other Funds Total

BTVL BIL BIL BTVL

2,400,000 7,500,000 9,100,000 288,000 19,288,000

* BTVL - Bharti Tele-Ventures LimitedBCL - Bharti Cellular LimitedBIL - Bharti Infotel Limited

Non-Executive Directors

The Non-Executive Directors have not drawn any remuneration from the Company, for the year ended March 31, 2003 other than asitting fee of Rs. 5,000 per day for Board and committee meetings attended by them.

EQUITY STOCK OPTION TO DIRECTORS

Mr. Akhil Gupta, Joint Managing Director, has been granted 1,399,822 options under the Equity Stock Option Plan of the Company.

No fresh stock options have been granted to any Director of the Company during the financial year 2002-2003.

INVESTORS GRIEVANCE COMMITTEE

The Company has constituted an Investors Grievance committee for redressing shareholders/investors complaints like transfer of shares,non-receipt of annual report, non-receipt of declared dividend and others. The committee meets generally every month to review allinvestor grievances and ensure that these are redressed within a period of 7-10 days from the date of receipt of complaint, except those thatare constrained by legal impediments/procedural issues.

Mr. Narender Gupta, Company Secretary, acts as the Compliance Officer of the Company.


Composition and attendance

The Chairman of the committee, Mr. Rakesh Bharti Mittal, is a Non-Executive Director. The committee comprises of three members andDirectors’ attendance at the meetings of Investors Grievance committee is as under:




Mr. Akhil Gupta Executive 11

NATURE OF COMPLAINTS AND REDRESSAL STATUS

Since the Company came out with the Public Issue in February 2002, the complaints received by the Company are generally pertaining toissues relating to the incorrect demat accounts, change of address, incorrect bank details and non receipt of refund orders etc. The numbersof complaints during the year were moderate, details of which are as under:

Type of Complaint No. of Complaints Redressed Pending

Any communication towards non-receipt of any shares allotted/refund 13 13 –

Reported loss of refund order and request for fresh issue/duplicate refund order 3 3 –

Correction/Change of Bank Mandate of refund orders 8 8 –

Non-receipt of refund pay orders 61 60 1

Non-receipt of securities 20 19 1

Miscellaneous 8 8 –

TOTAL 113 111 2*

* Pending complaints as on March 31, 2003 have been resolved subsequently.

All requests for share transfers have been processed and effected except those, which are disputed, and sub-judice.

GENERAL BODY MEETINGS

The last three Annual General Meetings were held as under:

Financial Year Location Date Time

Air Force Auditorium2001-2002 Subroto Park September 20, 2002 3:30 P.M.

New Delhi – 110 010

H- 5/12, Mehrauli RoadQutab Ambience

2000-2001 New Delhi – 110 030 September 25, 2001 11:00 A.M.(Registered Office)

H- 5/12, Mehrauli RoadQutab Ambience

1999-2000 New Delhi – 110 030 September 27, 2000 4:00 P.M.(Registered Office)

Following two resolutions had been passed at the last Annual General Meeting as special resolutions apart from the special resolutionspassed by means of Postal Ballot separately mentioned in “POSTAL BALLOT” section:

• Approval for payment to Mr. Sunil Bharti Mittal from the Company or any of its subsidiaries for the services rendered by him.

• Amendment to the Articles of Association of the Company


POSTAL BALLOT

Pursuant to Section 192A of the Companies Act, 1956, during the year 2002-2003, the shareholders of the Company had overwhelminglyapproved (99% of the total votes casted) by means of Postal Ballot, following matters by way of special resolutions:

• Authorisation to make loans to or furnish guarantees or provide securities on behalf of its subsidiary Company viz. Bharti CellularLimited upto an aggregate amount of Rs. 3,500 crores.

• Authorisation to make loans to or furnish guarantees or provide securities on behalf of its subsidiary Company viz. Bharti TelesonicLimited upto an aggregate amount of Rs. 1,500 crores.

The Postal Ballot exercise was conducted by Mr. Shailesh Kapoor, an Advocate, who was appointed scrutinizer to ensure that postal ballotprocess is conducted in a fair and transparent manner.

A Postal Ballot Form has been separately sent to the shareholders for the following two resolutions being put to vote through postal ballotas special resolutions:

• Authorisation to make loans to or furnish guarantees or provide securities on behalf of its subsidiary Company viz. Bharti CellularLimited upto an aggregate amount of Rs. 6,700 crores.

• Authorisation to make loans to or furnish guarantees or provide securities on behalf of its subsidiary Company viz. Bharti InfotelLimited (formerly Bharti Telenet Limited) upto an aggregate amount of Rs. 4,000 crores.

The results of aforesaid resolutions to be passed through Postal Ballot shall be declared at the forthcoming Annual General Meeting. Theprocedure for exercising postal ballot is provided in the Postal Ballot Paper.

DISCLOSURES

During the year, there were no transactions of material nature of the Company with the Promoters, Directors, Management, their relatives,or subsidiaries of the Company etc., that had potential conflict with the interest of the Company at large. The related party transactionswith the subsidiary/group companies have been disclosed in the Annual Accounts.

There were no instances of non-compliances by the Company, penalties, and strictures imposed on the Company by Stock Exchanges orSEBI or any statutory authority on any matter related to the capital markets.

COMMUNICATION TO SHAREHOLDERS

Quarterly and Half-yearly financial reports of the Company are not sent to the individual shareholders of the Company.

Quarterly un-audited results are published in prominent daily newspapers, viz. Business Standard and Jansatta (vernacular newspaper)and are also posted on the Company’s website. At the end of each quarter the Company does an earnings call with analysts and investors,which is also broadcast live on Company’s website, and the transcript is posted on the website soon after.

The domain name of Company’s website is www.bhartiteleventures.com and up-to-date financial results, official news releases, financialanalysis reports and other general information about the Company is available on this website.

The Management Discussion and Analysis report forms part of the Annual Report.

GENERAL SHAREHOLDERS’ INFORMATION

(i) The Annual General Meeting is proposed to be held on Tuesday the 21st day of October, 2003, at 3.30 p.m. at Air Force Auditorium,Subroto Park, New Delhi - 110 010.

(ii) Book Closure Date: October 11, 2003 to October 21, 2003 (both days inclusive).

(iii) Financial Calendar for the year 2003-2004.

Tentative Schedule

Accounting year April 1, 2003 to March 31, 2004

First Quarter Un-audited Results July 2003

Second Quarter and Half yearly Un-audited Results October 2003

Third Quarter Un-audited Results January 2004

Fourth Quarter Un-audited Results April 2004

Annual Results (Audited) Within 6 months of the close of the financial year

Annual General Meeting In accordance with Section 166 of the Companies Act, 1956


3000

3100

3200

3300

3400

3500

3600

Mar-03Feb-03Jan-03Dec-02Nov-02Oct-02Sep-02Aug-02Jul-02Jun-02May-02Apr-02

BHARTI Share Price vs BSE Sensex

Month

Sens

ex

25

28

31

34

37

40

43

46

Bha

rti

Sensex Bharti

(iv) Listing on Stock Exchanges

The Company’s equity shares are listed on:

• The National Stock Exchange of India Limited, Symbol -‘BHARTI’

• The Stock Exchange, Mumbai, Scrip code - 532454

• The Delhi Stock Exchange Association Limited (Regional), Scrip code - 102250

Listing Fees for the year 2003-2004 has been paid to the Mumbai Stock Exchange and the National Stock Exchange. The listing fees toThe Delhi Stock Exchange Association Limited (Regional) for 3 years, i.e. up to March 2004, have been paid in advance at the time oflisting in February 2002.

(v) Stock Market Data for the period April 1, 2002 to March 31, 2003

Share price performance in comparison on BSE Sensex

High Low Volume BSE SensexMonth (Rs.) (Rs.) Traded

(Nos.) High Low

April 42.45 35.00 2,828,649 3,538 3,297

May 38.35 31.65 12,709,879 3,478 3,098

June 38.00 32.00 3,186,485 3,378 3,149

July 36.35 29.50 7,233,773 3,367 2,932

August 33.90 29.80 4,070,586 3,185 2,932

September 35.50 30.90 6,875,169 3,228 2,974

October 32.40 24.00 2,425,025 3,039 2,828

November 26.00 21.50 2,079,292 3,246 2,929

December 26.40 22.00 2,273,904 3,414 3,187

January 30.00 20.65 7,486,662 3,417 3,199

February 34.00 27.00 5,765,477 3,342 3,218

March 30.30 26.30 1,847,722 3,312 3,040


970

1000

1030

1060

1090

1120

1150

1180

Mar-03Feb-03Jan-03Dec-02Nov-02Oct-02Sep-02Aug-02Jul-02Jun-02May-02Apr-02

Share Price vs S&P CNX Nifty

Month

Nif

ty

25

28

31

34

37

40

43

Bha

rti

Nifty Bharti

Share price performance in comparison with NSE Nifty

High Low Volume S&P CNX Nifty IndexMonth (Rs.) (Rs.) Traded

(Nos.) High Low

April 40.10 34.90 6,492,417 1,153 1,073

May 38.30 31.60 11,095,509 1,136 1,020

June 38.50 32.00 6,913,910 1,102 1,029

July 36.25 29.30 6,458,195 1,087 943

August 33.75 29.80 2,410,116 1,012 935

September 35.35 30.65 9,409,987 1,024 960

October 36.95 23.90 3,369,957 983 920

November 26.25 21.80 4,371,428 1,057 948

December 26.20 22.05 6,502,019 1,103 1,034

January 31.10 20.65 16,853,473 1,105 1,026

February 31.70 27.15 7,029,198 1,075 1,034

March 30.20 26.10 4,301,910 1,070 974

(vi) Registrar and Transfer Agent

Karvy Consultants Limited, ‘Karvy House’, 46 Avenue 4, Street No. 1, Banjara Hills, Hyderabad – 500 034, is our Registrar andTransfer Agent.

Tel. (91-40) 23312454/ 23320751-53

Fax. (91-40) 23311968/ 23323049

Email : [email protected]


(vii) Distribution of shareholding by number of shares held as on March 31, 2003

Sl. No. No. of equity No. of % of Number of % to totalshares held Shareholders shareholders equity shares of Rs. 10/- equity

1 <500 32,656 74.08 5,055,656 0.27

2 500-1000 8,911 20.22 6,432,566 0.35

3 1001-2000 1,332 3.02 2,058,982 0.11

4 2001-3000 330 0.75 870,393 0.05

5 3001-4000 137 0.31 500,127 0.03

6 4001-5000 154 0.35 732,286 0.04

7 5001-6000 71 0.16 400,313 0.02

8 6001-7000 44 0.10 285,155 0.01

9 7001-8000 53 0.12 407,180 0.02

10 8001-9000 15 0.03 129,508 0.01

11 9001-10000 55 0.13 543,797 0.03

12 10001-50000 172 0.39 3,788,291 0.20

13 50001> 151 0.34 1,832,162,513 98.86

Total 44,081 100.00 1,853,366,767 100.00

Categories of shareholding as on March 31, 2003

Sl. No. Category No. of Shares Held % of Shareholding

A PROMOTERS HOLDINGPromoters*– Indian Promoters 859,986,028 46.40%– Foreign Promoters 0 0.00%Persons acting in Concert # 2,750,000 0.15%

SUB-TOTAL 862,736,028 46.55%

B NON- PROMOTER HOLDINGSInstitutional InvestorsMutual Funds and UTI 41,837,723 2.26%Banks, Financial Institutions, Insurance Companies, Central/State Government Institutions/Non-Government Institutions 9,204,200 0.50%FIIs 99,526,851 5.36%

SUB-TOTAL 150,568,774 8.12%

C OthersPrivate Corporate Bodies 21,069,224 1.14%Indian Public 25,553,492 1.38%NRIs/OCBs 31,561,292 1.70%Foreign Companies 745,096,539 40.20%Any other : (i) Trusts 15,817,820 0.85% (ii) HUF 467,167 0.03% (iii) Clearing Members (NSDL & CDSL) 496,431 0.03%

SUB-TOTAL 840,061,965 45.33%

GRAND TOTAL 1,853,366,767 100.00%


(viii) Transfer System

The shares of the Company are traded on the stock exchanges through the Depository system. The Demat ISIN in NationalSecurities Depository Limited (NSDL) and Central Depository Services (India) Limited (CDSL) is: INE 397D01016.

The share transfer work is handled by Registrar and Share Transfer Agent (RTA), M/s. Karvy Consultants Limited, ‘Karvy House’,46 Avenue 4, Street No. 1, Banjara Hills, Hyderabad. All requests received by the Company/RTA for Dematerialisation/Re-materialisation/transfer are disposed off expeditiously. Share Certificates duly endorsed are issued/transferred to all those shareholders,who opt for shares in the physical form.

(ix) Investors’ correspondence may be addressed to:

Narender Gupta

Compliance Officer and Company Secretary

Bharti Tele-Ventures Limited

‘Qutab Ambience,’ H-5/12, Mehrauli Road

New Delhi – 110 030

Tel .: 91-11-51666000-07 Fax :91-11-51666011-12

[email protected] website : www.bhartiteleventures.com


AUDITORS’ CERTIFICATEON COMPLIANCE WITH THE CONDITIONS OF CORPORATE GOVERNANCE UNDER CLAUSE 49 OF THE LISTINGAGREEMENTS

To the Members of Bharti Tele-Ventures Limited,

1. We have reviewed the implementation of Corporate Governance procedures by Bharti Tele-Ventures Limited (the Company) duringthe year ended 31 March, 2003, with the relevant records and documents maintained by the Company, furnished to us for our reviewand the report on Corporate Governance as approved by the Board of Directors.

2. The compliance of conditions of Corporate Governance is the responsibility of the management. Our examination was limited toprocedures and implementation thereof, adopted by the Company for ensuring the compliance of the conditions of CorporateGovernance. It is neither an audit nor an expression of opinion on the financial statements of the Company.

We further state that such compliance is neither an assurance as to the future viability of the Company nor the efficiency oreffectiveness with which the management has conducted the affairs of the Company.

3. On the basis of our review and according to the information and explanations given to us, the conditions of Corporate Governanceas stipulated in Clause 49 of the listing agreements with the Stock Exchange(s) have been complied with in all material respect by theCompany

For and on behalf of

Price Waterhouse

Chartered Accountants

Place : New Delhi U. RAJEEV

Date : September 16, 2003 Partner

FINANCIAL STATEMENTS


CONSOLIDATED BHARTI TELE-VENTURES LIMITED


1. We have audited the attached consolidated Balance Sheet ofBharti Tele-Ventures Limited and its subsidiaries as at March31, 2003, the consolidated Profit and Loss Account for theyear ended on that date annexed thereto, and the consolidatedCash Flow Statement for the year ended on that date, whichwe have signed under reference to this report. These consolidatedfinancial statements are the responsibility of Company’smanagement. Our responsibility is to express an opinion onthese consolidated financial statements based on our audit.

2. We conducted our audit in accordance with auditing standardsgenerally accepted in India. Those Standards require that weplan and perform the audit to obtain reasonable assuranceabout whether the financial statements are prepared, in allmaterial respects, in accordance with an identified financialreporting framework and are free of material misstatement.An audit includes examining, on a test basis, evidencesupporting the amounts and disclosures in the financialstatements. An audit also includes assessing the accountingprinciples used and significant estimates made by management,as well as evaluating the overall financial statementpresentation. We believe that our audit provides a reasonablebasis for our opinion.

3. We did not audit the financial statements of a subsidiary,whose financial statements reflect total assets of Rs. 356,127thousand as at March 31, 2003 and total revenues ofRs. 516,200 thousand for the year ended on that date. Thesefinancial statements have been audited by another auditorwhose report has been furnished to us, and our opinion, insofaras it relates to the amounts included in respect of this subsidiary,is based solely on the report of the other auditor.

4. We report that the consolidated financial statements havebeen prepared by the Company in accordance with therequirements of Accounting Standard 21, ConsolidatedFinancial Statements, issued by the Institute of CharteredAccountants of India and on the basis of the separate auditedfinancial statements of Bharti Tele-Ventures Limited and itssubsidiaries included in the consolidated financial statements.

5. On the basis of the information and explanations given to usand on consideration of the separate audit reports of individualaudited financial statements of Bharti Tele-Ventures Limitedand its aforesaid subsidiaries, in our opinion, subject to thematters stated in Para 6 below, the consolidated financialstatements give a true and fair view in conformity with theaccounting principles generally accepted in India:

(i) in the case of the consolidated Balance Sheet, of theconsolidated state of affairs of Bharti Tele-VenturesLimited and its subsidiaries as at March 31, 2003;

REPORT OF THE AUDITORS TO THE BOARD OF DIRECTORS OF BHARTITELE-VENTURES LIMITED ON THE CONSOLIDATED FINANCIAL

STATEMENTS OF BHARTI TELE-VENTURES LIMITED AND ITS SUBSIDIARIES

(ii) in the case of the consolidated Profit and Loss Account,of the consolidated results of operations of Bharti Tele-Ventures Limited and its subsidiaries for the year endedon that date; and

(iii) in the case of the consolidated Cash Flow Statement, ofthe consolidated cash flows of Bharti Tele-VenturesLimited and its subsidiaries for the year ended on thatdate.

6. (i) As explained in Note 3(g)(i) on Schedule 25 relatingto Evergrowth Telecom Limited (ETL), the Grouphas not accounted for certain assets and liabilities ofCellular Mobile Telephone Service of Punjab Circle.

(ii) As explained in Note 3(g)(ii) on Schedule 25 noprovision has been made towards the diminution invalue of investments made in ETL, a wholly ownedsubsidiary company of Rs. 300,000 thousand wherethe accumulated loss of the subsidiary exceeds its paidup capital.

(iii) As explained in Note 3(g)(vii) on Schedule 25 to thefinancial statements regarding pendency of finaldecision of the honourable High Court of Delhi,relating to the appeal filed by Bharti Mobile Limited(BML) for refund of interest paid by BML underprotest, any amount that might be finally payable isnot presently ascertainable pending the appeal ordersand hence no provision has been made in the accountsas these have not been estimated by the management.Consequentially, Rs. 1,922,297 thousand is beingcarried forward as Loans and Advances.

7. We further report that, without considering items mentionedin paragraph 6(i) and 6(iii) above, the impact of which is notquantifiable, had the observations made by us in paragraph6(ii) above been considered, the loss for the year would havebeen Rs. 2,350,589 thousand as against the reported figure ofloss for the year Rs. 2,050,589 thousand, and the accumulateddebit balance in Profit and Loss Account would have beenRs. 12,000,442 thousand as against the reported figure ofRs.11,700,442 thousand with consequential impact on thenet assets of the Group.

U. RAJEEVPartner


Place: New Delhi PRICE WATERHOUSEDate: September 16, 2003 Chartered Accountants


CONSOLIDATED BALANCE SHEET AS AT MARCH 31, 2003

Schedule As at As atParticulars No. March 31, 2003 March 31, 2002

(Rs. ’000) (Rs. ’000)

SOURCES OF FUNDSShareholders’ Funds

Share Capital 1 18,533,668 18,533,668Reserves and Surplus 2 29,728,143 29,706,810

Loan FundsSecured Loans 3 32,944,258 14,839,854Unsecured Loans 4 3,589,645 5,637,880

Security Deposits (Refer Note 9 on Schedule 25) 2,248,444 1,670,364Minority Interest 921,345 1,240,086(Refer Note 12 on Schedule 25)

87,965,503 71,628,662APPLICATION OF FUNDSFixed Assets 5

Gross Block 66,463,658 44,093,228Less: Depreciation 13,788,977 8,354,256Net Block 52,674,681 35,738,972Capital Work-in-Progress 5,305,937 13,799,022

Total Fixed Assets 57,980,618 49,537,994Pre-operative Expenditure Pending Allocation 6 – 243,048Unamortised Licence Fee 7 16,829,456 16,288,664Investments 8 3,551,483 5,082,602Current Assets, Loans and Advances

Inventories 9 208,991 86,901Sundry Debtors 10 3,698,179 1,167,680Cash and Bank Balances 11 887,660 966,664Current Assets, Loans and Advances 12 7,220,376 7,016,963

12,015,206 9,238,208Less: Current Liabilities and Provisions 13

Current Liabilities 15,254,458 13,668,475Provisions 105,479 55,622

15,359,937 13,724,097Net Current Assets (3,344,731) (4,485,889)Deferred Tax Asset (Net) 1,059,238 1,059,238(Refer Note 14 on Schedule 24 and Note 8 on Schedule 25)Miscellaneous Expenditure(to the extent not written off or adjusted) 14 188,997 334,749Profit and Loss Account 11,700,442 3,568,256

87,965,503 71,628,662Statement of Significant Accounting Policies 24Notes to Accounts 25

This is the Balance Sheet referred to The Schedules referred to above form an integral part of the Balance Sheetin our report of even date

On behalf of the Board

U. RAJEEV SUNIL BHARTI MITTAL AKHIL GUPTAPartner Chairman & Managing Director Joint Managing DirectorFor and on behalf ofPRICE WATERHOUSE NARENDER GUPTAChartered Accountants Group Company Secretary

Place : New DelhiDate: September 16, 2003



Schedule For the year ended For the year endedParticulars No. March 31, 2003 March 31, 2002

(Rs. ’000) (Rs. ’000)

INCOMEService Revenue 29,875,737 14,663,775Sale of Goods 623,681 340,862Other Income 15 54,995 36,606

30,554,413 15,041,243EXPENDITURE

Access Charges 6,385,186 2,781,188Network Operating 16 3,100,649 1,343,695Cost of Sales of Goods 17 572,072 299,361Personnel 18 2,754,073 1,272,655Sales and Marketing 19 3,170,904 1,943,190Administrative and Others 20 3,557,133 1,597,218

Total Expenditure 19,540,017 9,237,307Operating Profit before Licence Fee, Finance Income andExpenses, Depreciation, Amortisation, Pre-operative Expenditure,Significant non-frequently occurring items and Taxation 11,014,396 5,803,936

Licence fee and Spectrum charges (revenue share) 3,393,386 2,007,682Operating Profit before Finance Income and Expenses, 7,621,010 3,796,254Depreciation, Amortisation, Pre-operative Expenditure,Significant non-frequently occurring items and Taxation

Finance Expenses (Net) 21 2,730,208 1,087,734Depreciation 4,801,052 2,338,313Amortisation 22 1,773,619 1,353,704Pre-operative Expenditure written off 371,463 972,162

Operating Loss before Significant non-frequentlyoccurring items and Taxation (2,055,332) (1,955,659)Significant non-frequently occurring items 23 (292,947) –

Profit/(Loss) before Tax (1,762,385) (1,955,659)Tax Expenses– Current 1,786 83,898– Deferred Tax Expense/(Income) – (321,119)(Refer Note 14 on Schedule 24 and Note 8 on Schedule 25)

Profit/(Loss) after Tax (1,764,171) (1,718,438)Minority Interest (Refer Note 12 on Schedule 25) 286,418 (28,640)Pre-acquisition Profit attributable to Minority adjustedagainst cost of Investment – 84,096Loss of Associate Company – 31,396

Profit/(Loss) for the year (2,050,589) (1,805,290)Profit/(Loss) brought forward (3,568,256) (6,516,283)

Deferred Tax Asset/(Liability) adjusted against Opening balance – 738,117Loss acquired under a scheme of amalgamation – (186,473)Adjustments under the schemes of amalgamation during the year(Refer Note 11 on Schedule 25) (6,081,597) –Difference of consideration and value of net assets acquiredunder a scheme of amalgamation – (915,796)Pre-acquisition Loss adjusted against reserves – 5,225,338Amortisation of Goodwill for prior years – (107,869)

Profit/(Loss) carried forward to the Balance Sheet (11,700,442) (3,568,256)

Earnings per Share in Rs. (Basic and Diluted) (1.11) (1.06)(Refer Note 18 on Schedule 24 and Note 13 on Schedule 25)Statement of Significant Accounting Policies 24Notes to Accounts 25

CONSOLIDATED PROFIT AND LOSS STATEMENTFOR THE YEAR ENDED MARCH 31, 2003

This is the Profit and Loss Account referred to The Schedules referred to above form an integral part of the Profit and Loss Accountin our report of even date



Place: New DelhiDate: September 16, 2003


CASH FLOW STATEMENTFOR THE YEAR ENDED MARCH 31, 2003

(Rs. ’000)

Particulars For the year ended For the year endedMarch 31, 2003 March 31, 2002

A. Cash flow from operating activities:Net (loss)/profit before tax but after exceptional/extraordinary items (1,762,385) (1,955,660)

Adjustments for:Depreciation 4,801,052 2,338,313Interest Expense 3,126,562 1,750,019Interest Income (22,570) (329,411)(Profit)/Loss on Fixed Assets sold 6,079 16,978(Profit)/Loss on Sale of Investments (252,584) (385,396)ESOP Expenditure written off 115,364 96,456Deferred Revenue Expenditure written off 6 3,981Amortisation of Goodwill 656,958 816,611Pre-operative Expenditure written off 22,820 972,162Preliminary Expenditure written off 416 186Licence fee written off 1,000,875 436,470Debts/Advances written off 5,034 123,199Provision for Bad and Doubtful Debts/Advances 1,526,502 255,380Liability no longer required written back (10,077) (85,737)Provision for Gratuity and Leave Encashment 52,132 18,958Provision for Inventory for Obsolete/Damaged Stock – 52,248Unrealised Foreign Exchange (gain)/loss 3,678 (51)Provision for Warranty (2,323) 4,095Gain from swap arrangements (124,785) (82,871)Other Provision 47 130Unusual Items (292,947) –

Operating profit before working capital changes 8,849,854 4,046,060Adjustments for changes in working capital :

– (INCREASE)/DECREASE in Sundry Debtors (4,073,300) (1,261,214)– (INCREASE)/DECREASE in Other Receivables (1,050,248) (4,254,888)– (INCREASE)/DECREASE in Inventories (122,090) (51,939)– INCREASE/(DECREASE) in Trade and Other Payables 1,459,536 5,345,503– INCREASE/(DECREASE) in Security Deposit from Customers 578,080 230,799

Cash generated from operations 5,641,832 4,054,321Increase in Miscellaneous Expenditure (20) (1,751,248)Taxes (Paid)/Received 29,124 (141,135)

Net cash from operating activities 5,670,936 2,161,938B. Cash flow from investing activities:

Adjustments for changes in :Purchase of fixed assets – Additions during the Year (29,053,639) (8,508,293)Capital Work-in-Progress – Additions during the Year 8,736,134 (9,307,333)Proceeds from Sale of Fixed Assets 184,890 46,010Proceeds from Sale of Investments 23,907,393 53,902,601Purchase of Investments (22,123,689) (53,527,074)Licence fee paid for new circles – (10,406,701)Interest Received (Revenue) 15,538 504,011Amount Paid on Acquisition/Investment in subsidiaries – (14,039,206)

Net cash used in investing activities (18,333,373) (41,335,985)



C. Cash flow from financing activities:Proceeds from fresh issue of Share Capital (including Share Premium) – 32,091,274Amount of Share issue expenses – (381,979)Amount invested by Minorities in Subsidiaries (592,513) 98,000Proceeds from long term borrowings

RECEIPTS 19,047,415 9,449,941PAYMENTS (693,014) –

Proceeds from short term borrowingsRECEIPTS 6,121,743 2,145,531PAYMENTS (8,419,978) (2,429,736)Interest Paid (3,005,005) (1,629,935)Profit on hedging transaction – –Gain from swap arrangements 124,785 82,871

Net cash used in financing activities 12,583,433 39,425,967

Net Increase/(Decrease) in Cash and Cash Equivalents (79,004) 251,920Opening Cash and Cash Equivalents 966,664 674,608Cash and Cash Equivalents Acquired on Acquisition – 40,136

Cash and Cash Equivalents as at March 31, 2003 887,660 966,664Cash and Cash Equivalents compriseCash, Cheques and Drafts (in hand) and Remittances in Transit 312,284 116,330Balance with Scheduled Banks 575,376 850,334

Notes :1. The above Cash flow statement has been prepared under the indirect method setout in AS-3 issued by the Institute of Chartered

Accountants of India.2. Figures in brackets indicate cash outgo.3. Previous period figures have been regrouped and recast wherever necessary to conform to the current period classification.4. Cash and cash equivalents includes Rs. 97,671 thousand which are not available for use by the Company.

(Refer Schedule 11 in the accounts)

This is the Cash Flow Statement referred to The Schedule referred to above formin our report of even date. an integral part of the Cash Flow Statement.



Place: New DelhiDate: September 16, 2003

(Rs. ’000)


CASH FLOW STATEMENTFOR THE YEAR ENDED MARCH 31, 2003


SCHEDULES ANNEXEDTO AND FORMING PART OF ACCOUNTS

As at As atParticulars March 31, 2003 March 31, 2002

(Rs. ’000) (Rs. ’000)

SCHEDULE : 1SHARE CAPITALAuthorised

2,500,000,000 (Previous year 2,500,000,000) Equity Shares of Rs.10 each 25,000,000 25,000,000Issued, Subscribed and Paid up

1,853,366,767 (Previous year 1,853,366,767) Equity Shares ofRs.10 each fully paid up 18,533,668 18,533,668Of the above 1,516,390,970 Equity Shares issued as fully paid up bonusshares out of Share Premium Account

18,533,668 18,533,668SCHEDULE : 2RESERVES AND SURPLUSShare Premium

Opening balance 29,706,810 15,005,687Additions/Adjustments during the period 49 30,247,012

29,706,859 45,252,699Less : Utilisation during the period

Share issue expenses – 381,979Amount utilised for issue of 1,516,390,970 bonus shares ofRs. 10 each fully paid up – 15,163,910

29,706,859 29,706,810Revaluation Reserve

Additions during the period 21,284 –

21,284 –

29,728,143 29,706,810SCHEDULE : 3SECURED LOANS(Refer Note 5 on Schedule 25)Debentures 9,655,581 9,300,000Loans and Advances from Banks:

– Term Loan 13,044,250 340,000– Cash Credit 139,044 141,620

Other Loans and Advances:– Term Loan 10,091,340 5,052,000– Vehicle Loan 14,043 6,234

32,944,258 14,839,854Note : Amount repayable within one year 4,585,937 481,363

SCHEDULE : 4UNSECURED LOANSShort Term Loans and Advances

From Banks 1,834,565 2,106,853From Financial Institutions 500,000 2,531,027From Others 5,080 –

Other Loans and AdvancesFrom Financial Institutions 1,250,000 –Inter Corporate Deposit – 1,000,000

3,589,645 5,637,880Note : Amount repayable within one year 1,250,000 4,088,753




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(Rs. ’000) (Rs. ’000)

SCHEDULE : 6PRE-OPERATIVE EXPENDITURE PENDING ALLOCATION(Refer Note 12 on Schedule 24 and Note 2 on Schedule 25)Opening Balance as on April 1, 2002 243,048 151,004Additions during the periodNetwork Operating Expenses

Insurance Premium 2,734 3,295Repairs and Maintenance 5,013 18,638Power and Fuel 22,446 28,616Rent 42,797 22,058Leased Line Charges 12,599 43,801Others 103,644 85,371

Sub-total 189,233 201,779Personnel Expenses

Salaries 108,034 470,636Contribution to Provident and Other Funds 8,374 30,180Staff Welfare Expenses 5,228 33,383Recruitment and Training Expenses 14,656 95,358

Sub-total 136,292 629,557Selling Expenses

Advertisement and Marketing Expenses 142,659 78,536Sales Commission and Incentive 1,289 794Other Selling and Distribution Expenses 7,683 44,474

Sub-total 151,631 123,804Administrative and Other expenses

Legal and Professional Charges 11,451 37,352Rates, Fees and Taxes 918 39,529Power and Fuel 10,068 9,800Travelling and Conveyance 20,348 93,202Rent Expenses 9,258 16,183Repairs and Maintenance Charges 5,514 21,561Insurance Expenses 964 405Miscellaneous Expenses 22,636 95,623Collection and Recovery Charges 93 –

Sub-total 81,250 313,655Finance Expenses

Other Bank/Finance Charges 17,270 99,698Depreciation 20,606 42,003Amortisation of ESOP Cost 2,214 16,627Other Income 6,519 4,049

Total 835,025 1,574,078Less: Allocated to Fixed Assets 463,562 358,868Less: Transferred to Profit and Loss Account 371,463 972,162

– 243,048

Total amount carried to Balance Sheet – 243,048





(Rs. ’000) (Rs. ’000)

SCHEDULE : 7UNAMORTISED LICENCE FEE(Refer Note 9 on Schedule 24 and Note 3(g)(v), Note 7 on Schedule 25)

Opening balance 16,288,664 6,318,433Add: Capitalised during the year 1,541,667 10,406,701Less: Amortisation for the period 1,000,875 436,470

16,829,456 16,288,664SCHEDULE : 8INVESTMENTS(Refer Note 8 on Schedule 24)CurrentNon-Trade (Quoted)

– Government securities 24,040 110,500– Mutual Funds and Bonds 3,227,443 4,560,929

Long TermNon-Trade

– Quoted – 111,173– Unquoted – Evergrowth Telecom Limited 300,000 300,000

[30,000,000 (Previous year 30,000,000) equity shares ofRs. 10 each fully paid for cash (lodged as security against loan)]

Total Investments 3,551,483 5,082,602

Aggregate Market Value of Quoted Investments 3,318,811 4,822,247Aggregate Face Value of Quoted Investments 3,190,446 3,017,999Aggregate Face Value of Unquoted Investments 300,000 300,000

SCHEDULE : 9INVENTORY(Refer Note 7 on Schedule 24)Stock-in-Trade

PAMA VSATs 26,053 14,531Internet Modems 4,350 1,214Broadband Interactive Terminal * 48,773 21,309Gateways 8,306 201Simcards 113,466 48,264Others 8,043 1,382

208,991 86,901* Includes Goods in Transit Nil (Previous year Rs.7,481 thousand)




(Rs. ’000) (Rs. ’000)

SCHEDULE : 10SUNDRY DEBTORS(Refer Note 6 on Schedule 24 and Note 9 on Schedule 25)(Unsecured, considered good unless otherwise stated)Billing Debtors :

Debts outstanding for a period exceeding six months– considered good 228,281 72,918– considered doubtful 1,209,416 632,396Less: Provision (1,209,416) 228,281 (632,396) 72,918Other debts– considered good 3,048,263 1,015,843– considered doubtful 1,096,452 124,814Less: Provision (1,096,452) 3,048,263 (124,814) 1,015,843

Other Debtors :Debts outstanding for a period exceeding six months– considered good 38,818 542– considered doubtful 81,168 63,301Less: Provision (81,168) 38,818 (63,301) 542Other debts– considered good 382,817 78,377– considered doubtful 16,634 12,963Less: Provision (16,634) 382,817 (12,963) 78,377

3,698,179 1,167,680SCHEDULE : 11CASH AND BANK BALANCES

Cash in Hand 27,617 19,802Cheques in Hand 284,667 96,529

Balances in Scheduled Banks– in Current Account 345,998 409,333– in Fixed Deposits * 176,641 418,634– in Deposit Account as Margin Money* 52,737 898– in Public Issue Account – 21,468

887,660 966,664* (Includes Rs. 66,680 thousand pledged with TDSAT (Previous year

Rs. 61,700 thousand) and Rs. 30,991 thousand pledged with banks(Previous year Rs. 4,959 thousand) for issue of Bank Guarantees)

SCHEDULE : 12CURRENT ASSETS, LOANS AND ADVANCES(Unsecured, considered good unless otherwise stated)Other Current Assets

Interest Accrued on Investment 3,947 3,650Loans and Advances

Advances recoverable in cash or in kind or for value to be received– considered good 5,554,710 6,018,168– considered doubtful 11,492 3,904Less: Provision (11,492) 5,554,710 (3,904) 6,018,168Accrued Billing Revenue 1,151,208 499,219Advance to ESOP Trust (Net) 390,358 102,082Advance Tax [Net of provision for tax Rs. 268,358 thousand(Previous year Rs. 268,052 thousand)] 108,542 131,237Inter Corporate Deposit – 250,000Balances with Custom Authorities 11,611 12,607

7,220,376 7,016,963





(Rs. ’000) (Rs. ’000)

SCHEDULE : 13CURRENT LIABILITIES AND PROVISIONSCurrent Liabilities

Sundry Creditors :Due to Small Scale Industrial Undertakings* 4,751 7,894Due to Others 12,949,245 12,953,996 12,378,286 12,386,180

Advance Billing and Prepaid Card Revenue 1,091,359 520,550Interest accrued but not due 483,798 362,244Other Liabilities 541,348 356,767Advance Received from customers 183,957 42,734

15,254,458 13,668,475

* The above information has been compiled in respect of partiesto the extent they could be identified as Small Scale andancilliary undertakings on the basis of information availablewith the Group

Provisions(Refer Note 11 and 19 on Schedule 24)

Gratuity 44,535 15,691Leave Encashment 50,797 27,508Provision for Warranty 8,672 10,995Provision for Wealth Tax 1,475 1,428

105,479 55,622

15,359,937 13,724,097

SCHEDULE : 14MISCELLANEOUS EXPENDITURE(to the extent not written off or adjusted)(Refer Note 15 on Schedule 24)

Deferred Employee Compensation ExpenseOpening Balance: 334,346 –Add: Deferred during the year (Net) (27,770) 447,429Less: Amortisation for the year 117,579 113,083

188,997 334,346Deferred Revenue Expenditure

Opening Balance 6 3,467Add: Addition during the year – 520Less: Charged off during the year 6 3,981

– 6Preliminary Expenditure

Opening Balance: 397 583Add: Addition during the year 19 –Less: Charged off during the year 416 186

– 397

188,997 334,749



For the year ended For the year endedParticulars March 31, 2003 March 31, 2002

(Rs. ’000) (Rs. ’000)

SCHEDULE : 15OTHER INCOME

Miscellaneous Income [Net of provision/liability written backRs. 10,077 thousand (Previous year Rs.17,860 thousand)] 54,253 36,606Lease Rentals 742 –

54,995 36,606

SCHEDULE : 16NETWORK OPERATING EXPENDITURE

Internet Access and Bandwidth Charges 152,174 137,797Installation Charges 10,677 2,359Power and Fuel 541,825 218,422Rent Expenses 442,081 136,284Insurance Expenses 32,067 16,257Repair and Maintenance Charges 779,526 348,396Leased Line Charges 672,053 18,182Other Network Operating Expenses 470,246 465,998

3,100,649 1,343,695

SCHEDULE : 17COST OF SALES

Opening Stock 86,901 30,230Add: Stock acquired on amalgamation – 51,082Add: Purchases 990,556 523,729Less: Simcard Utilisation 295,024 211,736Less: VSATs/subnet given on lease, capitalised – 4,547Less: Internal issues/capitalised 1,370 2,496Less: Closing Stock 208,991 86,901

572,072 299,361

SCHEDULE : 18PERSONNEL EXPENDITURE

Salaries, Wages and Bonus* [Net of Provision written backNil (Previous year Rs. 11,817 thousand] 2,353,076 1,036,227Contribution to Provident and Other Funds 102,835 66,342Staff Welfare 135,173 89,541Recruitment and Training 162,989 80,545

2,754,073 1,272,655* Excluding amortisation of Deferred ESOP Cost.





(Rs. ’000) (Rs. ’000)

SCHEDULE : 19SALES AND MARKETING EXPENDITURE

Advertisement and Marketing Expenses 1,659,951 828,787Sales Commission and Incentive 965,830 425,291Other Selling and Distribution Expenses 250,099 477,376Sim card Utilisation 295,024 211,736

3,170,904 1,943,190

SCHEDULE : 20ADMINISTRATIVE AND OTHER EXPENDITURE

Legal and Professional Charges 329,227 207,999Rates, Fees and Taxes 36,940 23,434Electricity and Water 74,877 23,745Travelling and Conveyance 298,425 164,230Rent Expenses 142,987 105,413Repairs and Maintenance 213,329 126,849Insurance Expenses 16,176 11,089Bad debts written off 5,034 123,199Provision for doubtful debts/advances 1,526,502 255,380Miscellaneous Expenses 631,920 366,623Collection and Recovery Charges 275,637 172,279Loss on Sale of Assets (Net) 6,079 16,978

3,557,133 1,597,218



(Rs. ’000) (Rs. ’000)

SCHEDULE : 21FINANCE EXPENSESInterest :

– On Term Loan 1,347,336 479,400– On Debentures 1,242,454 1,115,383– On Others 227,859 155,237Other Finance Charges 308,912 149,070Exchange Fluctuation Loss (Net) 3,678 –

3,130,239 1,899,090Less: Income

Profit/(Loss) on Sale of Investments (Net) 252,584 385,396Interest Income :– from Current Investments (Non-Trade) (Gross of TDS Rs. 5,661 thousand;

Previous year Rs. 33,474 thousand) 12,075 296,183– from others (Gross of TDS Rs. 1,074 thousand;

Previous year Rs. 4,117 thousand) 10,495 33,228Exchange Fluctuation Gain (Net) – 9,774Gains from swap arrangments 124,785 82,871Other Finance Income 92 3,904

400,031 811,356

2,730,208 1,087,734

SCHEDULE : 22AMORTISATION(Refer Note 3, 9 and 15 on Schedule 24 and Note 3(g)(v) and 10 on Schedule 25)

Licence Fee 1,000,875 436,470Personnel – Deferred ESOP Cost 115,364 96,456Goodwill 656,958 816,611Preliminary Expenses 416 186Deferred Revenue Expenditure written off 6 3,981

1,773,619 1,353,704

SCHEDULE : 23SIGNIFICANT NON-FREQUENTLY OCCURRING ITEMS(Refer Note 15 on Schedule 25)

Refund of interest received on Licence fees paid 770,334 –Less:Fixed Asset written off 11,385 –Accelerated Depreciation on Fixed Assets 396,662 –Liquidated Damages and WPC Charges paid to DoT 69,340 –

292,947 –





SCHEDULE : 24

STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES

The significant accounting policies adopted by the Company and its subsidiaries (hereinafter referred to as the “Group”) in respect of theseConsolidated Financial Statements, are set out below.

1. BASIS OF PREPARATION

These consolidated financial statements are prepared under the historical cost convention on the accrual basis of accounting andreporting requirements of the Accounting Standard 21 ‘Consolidated Financial Statements’ issued by the Institute of CharteredAccountants of India, consolidated as per Para 2 below for the year ended March 31, 2003.

2. PRINCIPLES OF CONSOLIDATION

These accounts represent consolidated accounts of the Company and its majority owned subsidiaries, all incorporated in India, asfollows:

Entity Principal Service Relationship Shareholdingas at

March 31, 2003

Bharti Cellular Limited Cellular Mobile Subsidiary of BTVL 99.66%(BCL) Telephony Services (CMTS)

Bharti Infotel Limited (BIL) Access, Long Distance Subsidiary of BTVL 100%(Formerly Bharti Telenet Limited) and Broadband Services

Bharti Mobile Limited (BML) CMTS Subsidiary of erstwhile 74%S C Cellular Holdings Limited, nowamalgamated with BCL, as above.

Bharti Aquanet Limited (BAL) Submarine Cable landing station Subsidiary of erstwhile 51%Bharti Telesonic Limited whichhas now amalgamated withBharti Infotel Limited, as above

Bharti Comtel Limited (BCTL) Administrative support to Subsidiary of BIL 100%BTNL and VSAT equipmenttrading.

During the year, the Group has witnessed the following restructuring

(a) S C Cellular Holdings Limited, Bharti Mobinet Limited and Bharti Mobitel Limited have been amalgamated with BhartiCellular Limited.

(b) Bharti Telesonic Limited, Bharti Broadband Networks Limited (Formerly Bharti BT Internet Limited), J D Projects PrivateLimited and Bhoomi Promoters and Developers Private Limited have been amalgamated with BIL (Formerly Bharti TelenetLimited).

(c) Himachal Pradesh undertaking of BIL providing CMTS has been de-merged from BIL and has been merged into BCL.

For the purpose of this consolidation, jointly owned entities, where BTVL or its subsidiaries own directly or indirectly more than 50percent of voting rights of a Company’s share capital have been accounted for as subsidiaries.

Subsidiaries which are not controlled by BTVL and/or which operate under severe long-term restrictions that significantly impair itsability to transfer funds to the parent company, have not been consolidated namely Evergrowth Telecom Limited. The equity and netincome attributable to minority shareholders’ interest are shown separately in the Balance Sheets and Profit and Loss Account,respectively.



All significant inter-company balances have been eliminated in the consolidation. The consolidated financial statements are preparedusing uniform accounting policies for like transactions and other events in similar circumstances.

3. GOODWILL

Goodwill is stated as an excess of the purchase consideration over BTVL’s interest in the fair value of the net identifiable assetsacquired. Goodwill is carried at cost less accumulated amortisation and is amortised on a straight-line basis over the remaining periodof the service Licence of the acquired company from the date of acquisition.

4. FIXED ASSETS

Fixed Assets are stated at cost of acquisition and subsequent improvements thereto, including taxes, duties, freight and otherincidental expenses related to acquisition and installation. Capital work-in-progress is stated at cost.

5. DEPRECIATION

Depreciation is provided on straight-line method at the rates and in the manner prescribed in Schedule XIV to the Companies Act,1956 on all assets, except for the following on which depreciation is provided on straight line method to write off the cost of the fixedassets over their estimated useful lives:

Rate of Depreciation per annum

Building 5%

Office Equipment 20.00% / 33.33%

Computer 33.33%

Vehicles 20.00%

Furniture & Fixtures 20.00%

Plant and Machinery 6.67% / 10.00%

Leasehold Land Period of lease

Leasehold Improvements Period of lease or 10 years whichever is less

Software up to Rs. 500 thousand is written off in the year of purchase.

Bandwidth capacity is depreciated over the period of the agreement subject to a maximum of 15 years.

Additional depreciation is provided as appropriate, towards diminution in value of assets.

6. REVENUE RECOGNITION AND RECEIVABLES

Cellular Services: Billing and revenue on account of sale of goods is recognised on completion of provision of services and despatchof goods respectively. Billing and revenue includes income on roaming commission and access charges passed on to other operators,and is net of discounts and waivers.

Accrued revenue represent revenues recognized in respect of cellular services provided from the bill cycle date to the end of eachmonth. These are billed in subsequent periods as per the terms of the billing plans.

Access and Long Distance Services: Billing and revenue on account of sale of goods is recognised on completion of provision ofservices and despatch of goods respectively. Revenue on account of bandwidth service is recognised on time proportion basis inaccordance with the related contracts. Billing Revenue is net of discounts and waivers.

Accrued billing revenue represent revenues recognized in respect of basic and long distance services provided from the bill cycle dateto the end of each month. These are billed in subsequent periods as per the terms of the billing plans.

Internet and Broadband Services: Revenue from Traded Goods is recognised at the point of dispatch of goods to customers based ontheir confirmed orders or when title is transferred on endorsement and delivery of shipping documents in the case of high sea sales.

Service revenues comprise revenues from registration, installation and provision of Internet and Satellite services. Registration fee isrecognized at the time of despatch and invoicing of Start Up Kits. Installation charges are recognised as revenue on satisfactorycompletion of installation of hardware and service revenue is recognised from the date of satisfactory installation of equipment andsoftware at the customer site and provisioning of Internet and Satellite services.



Revenue from prepaid dialup packs is recognised on the actual usage basis and is net of sales return and discount. Advertisementrevenues are on the advertisements served on Company’s website and also include third party promotions and advertisements onStart Up Kits, which is recognised on provision of services as per contract.

Investing and other Activities: Income on account of interest and other activities are recognised on an accrual basis. Dividends areaccounted for when the right to receive the payment is established.

Provision for doubtful debts: Provision for doubtful debts is made for dues outstanding for more than 90 days in case of activesubscriber and dues from customers who have been deactivated other than those covered by security deposit or in specific cases wheremanagement is of the view that the amounts are recoverable.

7. INVENTORIES

Inventories for mobile operations are valued at the lower of cost on a First in First Out basis and net realisable value.

Inventories for broadband operations are valued at the lower of weighted average cost and net realisable value.

8. INVESTMENT

Current Investments are valued at lower of cost and fair market value.

Long term Investments are valued at cost. Provision is made for diminution in value to recognise a decline, if any, other than that oftemporary nature.

9. LICENCE FEES

The fixed component of licence fee payable by the Group for cellular and basic circles, upon migration to the National Telecom Policy(NTP 1999), i.e. Entry Fee, has been capitalised as an asset. The Entry Fee so capitalised is being amortised equally over the periodof the license.

The one time licence fee paid by the Group for acquiring new licences (post NTP-99) (basic, cellular, national long distance andinternational long distance services) has been capitalised as an asset and is being amortised equally over the balance period of thelicense from the date of commencement of commercial operations.

With effect from August 1, 1999 the variable licence fee computed at prescribed rates of revenue share is being charged to the Profitand Loss Account in the year in which the related revenue arises. Revenue for this purpose comprises adjusted gross revenue as perthe licence agreement of the licence area to which the licence pertains and does not include any amount of income/expenditureincluded in corporate office and president office for which separate division accounts are maintained.

10. TRANSLATION OF ITEMS IN FOREIGN CURRENCY

Transactions in Foreign Currency are recorded at the exchange rate prevailing at the date of the transaction. Monetary items arerestated at year-end foreign exchange rates. Resultant exchange differences arising on payment or conversion of liabilities arerecognised as income or expense in the year in which they arise except in respect of liabilities for acquisition of fixed assets, where suchexchange difference is adjusted in the carrying cost of the respective fixed asset.

All foreign currency liabilities covered by forward contracts are restated at the forward cover rates. The gains/losses arising from suchrestatement are recognised over the period of such contract.

11. RETIREMENT BENEFITS

Contribution to provident fund is made at predetermined rates and is charged to Profit and Loss Account. The Group has providedfor the liability on account of unavailed earned leave as per the actuarial valuation as per the Projected Unit Credit Method.

The Group either contributes to a Group Gratuity Scheme with Life Insurance Corporation of India to cover the gratuity liability for itsemployees, such contribution being charged to the Profit and Loss Account for the year or provides the gratuity liability in its books.Liability at the year-end in both cases is determined on the basis of actuarial valuation, based on the Projected Unit Credit Method.

12. PRE-OPERATIVE EXPENDITURE

Expenditure incurred by the Group from the date of acquisition of licence for a new circle, up to the date of commencement ofcommercial operations of the circle, not directly attributable to fixed assets are charged to the Profit and Loss account in the year inwhich such expenditure is incurred.



13. LEASES

As Lessee

Lease Rentals in respect of assets taken on ‘Operating Lease’ are charged to the Profit and Loss Account.

Assets taken on Finance Lease are accounted for as assets by the Group. Lease rentals payable are apportioned between principal andinterest using the internal rate of return method and finance charge is recognised accordingly.

As Lessor

Lease income is recognised in the Profit and Loss Account on a straight-line basis over the lease term.

14. TAXATION

Tax expense for the year, comprising current tax and deferred tax is included in determining the net profit/(loss) for the year.

Deferred tax assets are recognised for all deductible timing differences and carried forward to the extent there is reasonable certaintythat sufficient future taxable profit will be available against which such deferred tax assets can be realised. Deferred tax assets to theextent they pertain to brought forward losses and unabsorbed depreciation, are recognised only to the extent that there is virtualcertainty of realisation, based on expected profitability in the future as estimated by the Company.

Deferred tax assets and liabilities are measured at the tax rates that have been enacted or substantively enacted by the Balance Sheet date.

15. MISCELLANEOUS EXPENDITURE

(a) Preliminary expenses and Deferred Revenue Expenditure are charged to the Profit and Loss Account on commencement ofcommercial operations of the company/circle.

(b) Employee Stock Option Plan (‘ESOP’) - The aggregate amount of liability on account of ESOP as ascertained at year-end isbeing carried forward as Deferred Employee Compensation Benefit under Miscellaneous Expenditure to be written off on astraight-line basis over the related vesting period of individual options.

16. BORROWING COST

Borrowing cost attributable to the acquisition or construction of a qualifying asset is capitalised as part of the cost of that asset. Otherborrowing costs are recognised as an expense in the period in which they are incurred.

17. SEGMENTAL REPORTING

a) Primary Segment:

The Group operates in four primary business segments viz. Basic Telephony Services, Cellular Mobile Telephony Services, LongDistance Telephony Services and Integrated Broadband Services.

b) Secondary Segment:

The Group has operations within India as well as with entities located in other countries. The operations in India, constitutethe major part, which is the only reportable segment, the remaining portion being attributable to others.

18. EARNING PER SHARE

The earnings considered in ascertaining the Group’s Earnings per Share (‘EPS’) comprises the net loss after tax. The number ofshares used in computing basic EPS is the weighted average number of shares outstanding during the year. The diluted EPS iscalculated on the same basis as basic EPS, after adjusting for the effects of potential dilutive equity shares.

19. WARRANTY

Provision for warranty is based on past experience and technical estimates.




SCHEDULE : 25

NOTES TO ACCOUNTS

1. Bharti Tele-Ventures Limited (‘BTVL’ or ‘the Company’) incorporated in India on July 7, 1995, is a company promoted by BhartiTelecom Limited (‘BTL’), a Company incorporated under the laws of India. BTVL together with its subsidiaries is referred to as ‘theGroup’.

2. New Operations

During the year the Group has launched cellular mobile services in the circles of Mumbai, Maharashtra, Tamil Nadu, Kerala, MadhyaPradesh, Uttar Pradesh (West), Haryana and Gujarat, fixed line services in the circles of Tamil Nadu and Karnataka and InternationalLong Distance Services. The group has also commenced commercial operations for its submarine cable landing station.

All the pre-operative expenditure directly allocable to fixed assets has been capitalised. Pre-operative expenditure other than thosedirectly allocable to fixed assets are charged off to the Profit and Loss Account in the year in which they are incurred.

3. Contingent Liabilities

a) Total guarantees outstanding as at year-end amounting to Rs. 13,689,414 thousand (Previous Year Rs. 18,510,105 thousand)have been taken from the banks.

b) The guarantees and limits relating to guarantees of Rs. 111,500 thousand (Previous year Rs. 72,961 thousand) included aboveare secured against the first ranking pari-passu charge on immovable assets and moveable current asset both present and future.

c) Claims against the Group not acknowledged as debt:

Particulars As at March 31, 2003 As at March 31, 2002(Rs. ’000) (Rs. ’000)

Sales Tax, Service Tax and Income Tax 1,928,816 291,011

Access Charges 184,221 –

Others 160,826 86,261

Total 2,273,863 377,272

d) In a recent case involving the Uttar Pradesh Trade Tax Department and the DoT, the Supreme Court of India has ruled thata telephone connection along with a telephone set provided by a company rendering basic services tantamount to a “transfer ofright to use the telephone system” and the rentals collected by DoT towards this right to use should suffer sales tax. Taking asimilar view, tax authorities in respective states may raise demands against telecom companies rendering basic services. Accordingly,though no demand is pending against the group in respect of rendering basic services, as of the date of these financial statements,the ruling could result in demands being raised by the sales tax department in future.

The management is in the process of assessing the applicability of the ruling and consequential impact resulting from its adoptionby respective tax authorities in the various jurisdictions in which the Group operates.

e) During the year ended March 31, 2002, the Group had paid Rs. 36,777 thousand to MTNL pertaining to charges relating to thepoints of interconnect and ports at the Delhi fixed-line circle. Out of this, the Group had protested Rs. 15,735 thousanddisputing the method of charging as well as items of charge relating to rent, installation and set up etc.

During the current year the Group has received a refund of Rs. 8,912 thousand and has capitalised Rs. 2,412 thousand out ofthe disputed amount. The Group is pursuing for the refund of the balance of Rs. 4,411 thousand which has been included underLoans and Advances.

f) The Original Licence Agreement requires the company to commission and provide Village Public Telephones (‘VPT’) in16,500 uncovered villages within 36 months of the effective date of the Original Licence Agreement. As part of the migrationpackage, under the NTP, the Company paid to DoT the maximum liability of Rs. 40,000 thousand as liquidated damages inrespect of its failure to comply with these obligations and agreed to withdraw its pending claims against the DoT for failure toprovide the necessary approvals. The migration package also provided that the DoT and the Company shall not raise anydispute in respect of licence agreement, or other matters through the period ended July 31, 1999. However, in September 2001,



the Company was forced by the DoT to issue a performance bank guarantee of Rs. 500,000 thousand, as a security towards thenon-performance of this commitment.

The NTP has proposed to levy a Universal Access Levy on all telecom licences in India, to fund the investments required byPrivate Operators for meeting its VPT obligations. The Regulator has recommended this levy to be 5 per cent of the AGR outof the existing revenue-share percentage.

Subsequent to the year-end, DoT has issued a letter dated May 15, 2003, asking the Company to provide details of villagesoutstanding as on August 15, 2000 after reducing certain category of villages such as unpopulated villages, terrorist infested andother remote areas etc. and submit its plans.

Pursuant to this, the Company has submitted its detailed response stating that the total number of VPTs installed till July 31,2003 is 581. The Company believes that no liquidated damages are leviable since the date for meeting these obligations has beenextended upto December 2003 by DoT and accordingly no provision has been made for the same in the financial statements.

g) BML was awarded license by the DoT to operate cellular services in the state of Punjab in December 1995. On April 18, 1996,subject to certain conditions, BML obtained the permission from the DoT to operate the Punjab licence through its whollyowned subsidiary, Evergrowth Telecom Limited (‘ETL’).

(i) BML entered into an agreement on September 6, 1996 with ETL and Essar Investments (‘Essar’) wherein Essar was tofacilitate implementation of the Punjab license by ETL and provide the necessary funding. Pursuant to these financialarrangements, till such time loan or accrued interest thereon or any other sums due or payable under the financingagreement are outstanding, Essar was given the powers to govern the operating and financial policies of ETL and therebyderive benefits from its operations. Accordingly, eventhough BML held 100% share capital of ETL, its accounts are notincluded in these financial statements. BML had also decided in an earlier year to exclude from its books certain assets andliabilities pertaining to the Punjab operations, as earlier accounted for.

(ii) Rs.280,000 thousand and Rs. 300,000 thousand representing recoverable from ETL on account of encashment of bankguarantee towards licence fee payable for ETL given on behalf of the subsidiary company were included under Loans andAdvances and Investments made in ETL respectively as at March 31, 2002.

(iii) In December 1996, DoT withdrew the permission dated April 18, 1996. DoT, however, again reinstated the permissionon March 10, 1998 (the period from April 18, 1996 to March 10, 1998 has been hereinafter referred to as ‘the black-outperiod’). On July 15, 1999 licence was terminated due to alleged non-payment of licence fees, liquidated damages andrelated penal interest.

(iv) Subsequently in September 2001, BML received from the DoT, an offer for the restoration of the license subject to thecondition that BML pay all the dues (licence fee, WPC charges, liquidated damages and related penal interest) pendingthe resolution of dispute relating to the licence fee for the blackout period. BML accordingly paid Rs. 4,909,948 thousandas demanded by DoT subject to resolution of the dispute through arbitration. Consequently the licence was restored andan arbitrator appointed for the settlement of the dispute.

(v) In the arbitration proceedings the order was not favourable to BML. BML has subsequently filed objections to thearbitrator’s award before the Delhi High Court. The Delhi High Court vide orders dated February 19, 2003 has issuednotices to the DoT. It is pertinent to note that the issuance of notice means stay of the implementation of the award.While the ultimate outcome of the matter cannot be predicted with certainty, BML has, as a matter of conservativeaccounting, recognized Rs.1,541,667 thousand (including Rs. 280,000 thousand recoverable from ETL on account ofencashment of bank guarantee) as license fees in addition to Rs. 800,000 thousand recognized in the previous year.

(vi) BML has informed Essar on September 21, 2001 that the financial arrangement stands terminated, as it believes that therehave been various defaults committed by Essar under the financial arrangement. In addition, BML, based on a legalopinion, believes that Essar has no rights to make claims against BML under the financial arrangement. Also, therestoration order permitted the operation of the licence by BML with a stipulation that no request would be raised forimplementation of the licence through any subsidiary, including ETL.

(vii) In a case against DoT, TDSAT had earlier passed an order, directing DoT to refund the interest accrued on delayed depositof licence fees, pre NTP 99, due to extension of the effective date of license period by six months. DoT had filed an appealagainst the said order before the Supreme Court which in its judgement dated March 4, 2003 upheld the contention of




GSM operators. Consequently BML has received refund order of interest from the DoT in the mobility circles of AndhraPradesh and Karnataka amounting to Rs. 770,334 thousand and has taken such amounts as an income in the Profit andloss Account during the year. BML has also received the interest refund order in the case of mobile operations in Punjabon the same grounds amounting to Rs. 856,644 thousand, which has been set off against the interest claim of DoTamounting to Rs. 2,778,941 thousand. The balance amount of Rs. 1,922,297 thousand has been included under Loansand Advances. Pending decision of the Delhi High Court, any amount determined as due from BML on account ofinterest etc. cannot be quantified till the matter is subjudice.

(viii)The management has also provided for Rs. 69,340 thousand towards liquidated damages and WPC charges paid inprevious years in accordance with the order of DoT in respect of restoration of the Punjab licence.

4. Estimated amount of contracts to be executed on capital account and not provided for (net of advances) Rs. 3,612,902 thousand(Previous Year Rs. 5,512,348 thousand).

5. Particulars of securities charged against secured loans taken by the Group are as follows:

Particulars Amount Security ChargesOutstanding

(Rs. ’000)

13.5% Non-Convertible Debentures 166,667 • Secured by first ranking pari-passu charge on the wholeRs. 1,000,000 thousand payable in of movable properties and securities, instruments ofsix equal half yearly installments the company including its movable plant andfrom April 2001 (BCL) machinery both present and future.

• Secured by way of mortgage on its immovable propertiesin favour of the trustees.

13.25% Non-Convertible Rs. 750,000 750,000 • Secured by first ranking pari-passu on the whole ofthousand payable in three half yearly movable properties and securities, instruments of theinstallments starting from May 2003 (BCL) company including its movable plant and machinery

both present and future.

• Secured by way of mortgage on its immovable propertiesin favour of the trustees.

Rupee Loan from Bank Rs. 340,000 170,000 • Secured by first ranking pari-passu charge on all thethousand (BCL) present and future tangible movable assets including

plant and machinery, spares, tools, stock-in-trade, bookdebts, Monies receivables, claims, bills, contracts whichare or may become due owing wherever situated inIndia.

Rupee Loan from financial institutions 2,500,000 • Secured by first ranking pari-passu charge on all presentRs. 2,500,000 thousand (BCL) and future tangible and movable assets owned by

Company including plant and machinery officeequipment, furniture and fixtures, spares, tools, accessories.

• All rights, titles, interests in accounts and moniesdeposited and investments made there from, in projectdocuments, book debts and other debts and in allinsurance policies.

• The loan also have a charge on all present and futuremovable assets and all rights, title, interest in monies,investments made there from, project documents andinsurance policies of the assets of the Punjab Circle ofBharti Mobile Limited (BML), the subsidiaryCompany.



• The loan is further secured by corporate guaranteegiven by BTVL.

Foreign Currency Term Loan of USD 86,110 3,941,340 • First ranking pari-passu charge on all present and futurethousand repayable in 20 half yearly installments tangible movable assets owned by the companybeginning December 2002 (BCL) including plant and machinery office equipment,

furniture and fixtures fittings, spares tools andaccessories vehicles.

Foreign Currency Term Loan of USD 125,000 5,997,500 • All rights, titles, interests in the accounts, and moniesthousand repayable in 5 half yearly installments deposited and investments made there from and inbeginning January15, 2007 (BCL) project documents, book debts and insurance policies.

Long Term Foreign Currency Loan of USD 30,000 1,438,500 • The foreign currency loan also have a charge on allthousand repayable in 10 half yearly installments present and future movable assets and all rights,beginning July 16, 2006 (BCL) title, interest in monies, investments there from, project

documents and insurance policies of the assets of thePunjab Circle of BML.


Rupee Loan Rs.1,250,000 thousand (BCL) 1,250,000 • Secured by pari-passu first charge over all immovable /movable fixed assets and current assets both presentand future of the Company.

• The loan is further secured by a corporate guaranteegiven by BTVL.

Rupee Loan Rs.1,600,000 thousand (BCL) 1,600,000 • Secured by pari-passu first charge on all immovable/movable fixed assets and current assets both presentand future of the Company.


Rupee Loan Rs.500,000 thousand (BCL) 500,000 • Secured by Subsequent and subservient charge on allmovable fixed assets of the Kerala circle of theCompany.


Rupee Loan Rs. 500,000 thousand (BCL) 500,000 • Secured by Subsequent and subservient charge on allthe movable fixed assets, stocks and spares of its TamilNadu circle.


Rupee Loan Rs. 1,250,000 thousand (BCL) 1,225,000 • First pari-passu charge on all movable assets of theCompany supplied by Motorola and other vendors,installed at the Mumbai, Maharashtra and Gujaratcircles.


(Rs. ’000)





Vehicle Loans from Banks

Under Finance Lease (BCL) 1,576 • Secured By hypothecation of vehicles of the Company.

· Others (BML and BTVL) 12,467 • Secured By hypothecation of vehicles of the Company.

75,14% Redeemable Non-Convertible Debentures of 703,200 • Secured by way of first ranking pari passu charge on:Rs. 10,000 thousand each amounting to Rs. 750,000 1. The whole of movable properties including itsthousand repayable in 32 equated installments starting movable plant and machinery, spares, tools,from October 15, 2002. (BIL) accessories and other movables both present and

future and the Company’s bank accounts, bookdebts, receivables, commissions situated in the stateof Madhya Pradesh.

2. Additional security by way of mortgage by depositof title deeds of immovable properties of theCompany situated in the state of Madhya Pradesh.

3. Floating charge on all other assets situated in thestate of Madhya Pradesh.

• Pledge of 102,000,000 equity shares held byBTVL.

• Undertaking for non-disposal of share holdingsand undertaking for meeting overrun in theproject cost and/or working capital, from BTVL.

75, 14% Redeemable Non- Convertible Debentures of 669,641 • Secured by way of first ranking pari passu charge on:Rs. 10,000 thousand each amounting to Rs.750,000 1. The whole of movable properties of the Companythousand repayable in 28 equated installment starting including its movable plant and machinery,from October 1, 2002 (BIL) spares, tools, accessories and other movables both

present and future and the Company’s bankaccounts, book debts, receivables, commissions.

125, 15% Redeemable Non-Convertible Debentures of 1,116,072 2. Additional security by way of mortgage byRs. 10,000 thousand each amounting to Rs.1,250,000 deposit of title deeds of immovable propertiesthousand repayable in 28 equated installments starting of the Company situated in the state offrom October 1, 2002 (BIL) Madhya Pradesh.

3. Floating charge on all other assets of the Companycurrent assets charged / to be charged for workingcapital facility.

• Pledge of shares in respect of 102,000,000 of the equityshare capital held at any time by Bharti Tele-VenturesLimited until the execution of the tripartite agreementwith DoT.

• Undertaking for non-disposal of shareholdings andundertaking for meeting overrun in the project costand/or working capital from BTVL.


(Rs. ’000)



Term loan from bank for Rs. 3,000,000 3,000,000 • Secured by first ranking pari-passu charge on the wholethousand repayable in 10 quarterly installments of the movable property in relation to the Nationalcommencing from October 15, 2006. (BIL) Long Distance project including its telecommunication

equipment, transmission towers, fibre optic backbone,movable plant and machinery, spares, tools etc.


Foreign Currency Term Loan of USD 15,000 713,250 • Secured by first ranking pari-passu charge on thethousand convertible into term loan machinery i.e. telecom equipment, transmissionafter 3 years. (BIL) towers, fibre optic backbone, machinery.


Cash Credit (BIL) 130,216 • Secured by hypothecation of stocks, both present andfuture book debts, monies, receivables, claim bills andcontracts.

13.5%, 200 Non-Convertible Redeemable 2,000,000 • Secured by way of first pari-passu charge on the wholeDebentures of Rs. 10,000 thousand each (BML) of movable properties including movable plant and

machinery, spares, tools, accessories, vehicles, furniture& fixtures both present and future excluding opticalfiber backbone. Further secured on all operating cashflows, revenues, receivables, commissions from theproject.

• All intangible assets & insurance contracts.

• TRA, DSRA or any other reserve account or anyother bank account.

• The above charge is secured on the assets of Karnatakaand Andhra Pradesh circles of the Company.

10.55%, 55 Non-Convertible Redeemable 550,000 • Secured by way of first pari-passu charge on the wholeDebentures of Rs. 10,000 thousand each (BML) of the movable assets including plant and machinery

both present and future, other than optic fiber backbone.

10.90%, 90 Non-Convertible Redeemable 900,000 • All rights, titles, interests, Claims in respect of accountsDebentures of Rs. 10,000 thousand each (BML) including all operating cash flows, receivables,

insurance contracts and all other assets and all amountsowing to and received by the Company.

11.45%, 60 Non-Convertible Redeemable 600,000 • The above charge is secured on the assets of KarnatakaDebentures of Rs. 10,000 thousand each (BML) and Andhra Pradesh circles of the Company.

Floating Interest rate, 125 Non-Convertible 1,250,000 • Secured by way of first pari-passu charge on whole ofDebentures of Rs. 10,000 thousand each the movable properties of the Company including(BML) (Note 1) movable plant and machinery and other movables,

both present and future excluding optical fiberbackbone.


(Rs. ’000)




• All operating cash flows, revenues, receivables,commissions, book debts and all bank accountsincluding TRA, DSRA and other reserves.


8.65%, 95 Non-Convertible redeemable 950,000 • The whole of movable properties includingDebentures of Rs. 10,000 thousand each (BML) movable plant and machinery and other movables both

present and future excluding optic fiber backbone.

• All intangible assets of the Company.

• Rights title interest in respect of Project Document.

• Rights title in TRA, DSRA.


Loan from Essar Investments Limited 300,000 • Secured by pledge of shares of Evergrowth TelecomLimited.

Cash Credit Rs. 50,000 thousand (BCTL) 8,829 • Secured by hypothecation of stocks, both present andfuture book debts, monies, receivables, claim bills andcontracts.

Note 1 – The applicable floating rates of interest payable on non-convertible debentures as on March 31, 2003 is 8.66%.

Note 2 – Bharti Cellular Limited has pledged its investment in Bharti Mobile Limited to the extent of 281,000,000 shares for the aboveloans and debentures.

Note 3 – BTVL has given a corporate guarantee of Rs. 789,000 thousand for the debentures in BML.

Note 4 – BTVL has pledged its investment in BIL to the extent of 102,000,000 shares with IDBI and IDFC as security for long term loansgiven by the Financial Institutions to BIL.

Note 5 – BTVL has given an undertaking to Financial Institutions for non-disposal of its shareholding in BCL and BIL in considerationof financial assistance given to subsidiaries by these Financial Institutions.

6. BTVL is currently in litigation with DSS Enterprises Private Limited (0.34 per cent equity interest in BCL; 4.67 per cent equityinterest in erstwhile BMNL as at March 31, 2002) on various counts. This inter alia includes claim for specific performance in respectof agreements to sell the equity interest of DSS in erstwhile BMNL to BTVL. The case filed by DSS to enforce the sale of equity sharesbefore the Delhi High Court is pending consideration of the Honorable High Court.


(Rs. ’000)



7. The details of Licence Fees are as follows:

Year ended Year endedMarch 31, 2003 March 31, 2002

(Rs. ’000) (Rs. ’000)

Gross carrying amountOpening balance 18,911,664 8,504,963Additions during the year 1,541,667 10,406,701

Closing Balance 20,453,331 18,911,664

AmortisationOpening balance 2,623,000 2,175,504For the year 1,000,875 436,470Charge prior to acquisition – 11,026

Closing Balance 3,623,875 2,623,000

Net carrying amount 16,829,456 16,288,664

8. In view of Accounting Standard – 22 on ‘Accounting for Taxes on Income’ (AS 22) issued by the Institute of Chartered Accountantsof India, the Group has accounted for Deferred Taxes with effect from 1st April, 2001.

Breakup of net deferred tax asset into major components of the respective balances is as follows:

(Rs. ’000)

2002-2003 2001-2002

Deferred Tax Assets arising from:

(i) Expenses charged in the financial statements but allowable asdeductions in future years under the Income Tax Act 858,497 279,671

(ii) Unabsorbed depreciation allowance and unabsorbed business losscarried forward (to the extent considered realizable) 3,098,676 1,705,230

3,957,173 1,984,901Less: Deferred Tax Liabilities arising from:

(i) Difference between carrying amount of fixed assets and licencefee in the financial statements and the Income Tax Return. 2,897,935 925,663

Net Deferred Tax Asset 1,059,238 1,059,238

The tax impact for the above purpose has been arrived at by applying a tax rate of 35.875% being the prevailing tax rate for IndianCompanies under the Income Tax Act, 1961.

9. Security Deposit Rs. 2,248,444 thousand (Previous Year Rs. 1,670,364 thousand) included under Sources of Funds representsrefundable security deposit received from subscribers on activation of connections granted thereto and are repayable on disconnection.Sundry Debtors are secured to the extent of amount outstanding against individual subscribers by way of Security Deposits receivedfrom them.




10. Goodwill

The following is the detail of Goodwill in the consolidated financial statements of BTVL as at March 31, 2003.

Nature of transaction As at March 31, 2003 As at March 31, 2002(Rs. ’000) (Rs. ’000)

On Acquisition of:

49 percent equity interest in BCL by BTVL 7,571,704 7,571,704

100 percent in erstwhile Bharti Mobitel Limited(formerly Spice Cell) by BCL [Refer Note (i) below] – 2,642,205

30.2 percent equity interest in BTNL by BTVL 329,306 329,306

Effective equity interest of 74 percent in BML by BTVL 484,844 484,844

89.5 percent from in erstwhile Bharti Mobinet Limited(formerly Skycell) by BTVL[Refer Note (ii) below] – 3,774,923

15 percent equity interest of Intel in erstwhileBharti Telespatial Limited (‘BTPL’) by BTVL 790,214 790,214

100 percent in JD Projects Limited by erstwhile BTSoL [Refer Note (iii) below] – 62,249

10 percent acquisition of erstwhile BTSoL from Pastel Limited by BTVL 23,630 23,630

Total 9,199,698 15,679,075

Note:

During the year the Goodwill has been reversed on account of the following amalgamations within the group

(Rs. ’000)

i. Upon merger of Bharti Mobitel Limited with BCL [refer Note 11(c) below] 2,642,205

ii. Upon merger of Bharti Mobinet Limited with BCL [refer Note 11(d) below] 3,774,923

iii. Upon merger of J D Projects with erstwhile BTSoL [refer Note 11(a) below] 62,249

6,479,377

11. Amalgamations

a) Pursuant to the Scheme of Amalgamation of J.D. Projects Private Limited (JDPPL) with Bharti Telesonic Limited (BTSoL),as approved by the Honorable High Court of Delhi by its order dated December 9, 2002, which became effective on February 3,2003, on receipt of Certificate of Registration of Order of Court from the Registrar of Companies, NCT of Delhi and Haryana,all the assets, liabilities and reserves of erstwhile JDPPL were transferred to and vested in BTSoL with effect from the appointeddate i.e. April 1, 2002.

The Scheme of Amalgamation has been accounted for under the Pooling of Interest Method as per Accounting Standard 14 onAccounting for Amalgamations issued by The Institute of Chartered Accountants of India whereby the assets, liabilities andreserves of the erstwhile JDPPL have been recorded in books of BTSoL at their book value to the erstwhile company.

b) Pursuant to the Scheme of Amalgamation of Bhoomi Promoters and Developers Private Limited (BPDPL) with BTNL, asapproved by the Honorable High Court of Delhi by its order dated March 25, 2003, which became effective on May 5, 2003, onreceipt of Certificate of Registration of Order of Court from the Registrar of Companies, NCT of Delhi and Haryana, all theassets, liabilities and reserves of erstwhile BPDPL were transferred to and vested in BTNL with effect from the appointed datei.e. April 1, 2002.

The Scheme of Amalgamation has been accounted for under the Pooling of Interest Method as per Accounting Standard 14 on



Accounting for Amalgamations issued by The Institute of Chartered Accountants of India whereby the assets, liabilities andreserves of the erstwhile BPDPL have been recorded in books of BTNL at their book value to the erstwhile Company.

c) Pursuant to the Scheme of Amalgamation of SC Cellular Holdings Limited (SCHL – 100% subsidiary of BCL) and BhartiMobitel Limited (BMTL- 100% subsidiary of BCL) with BCL, as approved by the Honorable High Court of Delhi by its orderdated March 10, 2003, which became effective on March 31, 2003, on receipt of Certificate of Registration of Order of Courtfrom the Registrar of Companies, NCT of Delhi, all the assets, liabilities and reserves of erstwhile SCHL and BMTL weretransferred to and vested in the Company with effect from the appointed date i.e. April 1, 2002. BMTL has a licence to provideCellular Mobile Telephony Services (‘CMTS’) in the circle of Kolkata.

The Scheme of Amalgamation has been accounted for under the Pooling of Interest Method as per Accounting Standard 14 onAccounting for Amalgamations issued by The Institute of Chartered Accountants of India whereby the assets, liabilities andreserves of the erstwhile SCHL and BMTL have been recorded in books of BCL at their respective book value to the erstwhilecompanies.

d) Pursuant to the scheme of arrangement between Bharti Telenet Limited (‘BTNL’), Bharti Mobinet Limited (BMNL) andBCL, as approved by the Honorable High Court of Delhi by its order dated July 29, 2003, which became effective on August 19,2003, on receipt of Certificate of Registration of Order of Court from the Registrar of Companies, NCT of Delhi and Haryana:

(i) The mobility division of BTNL has a licence to provide CMTS in the circle of Himachal Pradesh. BTNL has de-mergedthe said undertaking into BCL with effect from the appointed date i.e. April 2, 2002.

In terms of the scheme, Bharti Tele-Ventures Limited (‘BTVL’), the shareholder in BTNL, will receive, for every 10,000shares held in BTNL, 24.85 equity shares in BCL as fully paid up shares of Rs. 10 each for the transfer of Himachal Pradeshcellular division. Accordingly, BCL has issued 745,500 number of equity shares of Rs. 10 each as fully paid up to BTVL.

The scheme of arrangement has been accounted for by way of an addition in assets and liabilities pertaining to theHimachal Pradesh cellular undertaking at their book values to BCL.

(ii) BMNL has a licence to provide CMTS in the circle of Chennai. All the assets, liabilities and reserves of erstwhile BMNLwere transferred to and vested in the Company with effect from the appointed date i.e. April 2, 2002. BCL held 95.33%of the equity share capital.

The Scheme of Amalgamation has been accounted for under the Pooling of Interest Method as per Accounting Standard 14 onAccounting for Amalgamations issued by The Institute of Chartered Accountants of India whereby the assets, liabilities andreserves of the erstwhile BMNL have been recorded in books of BCL at their book value to the erstwhile Company.

In terms of the scheme, BCL shall allot 1 equity share of the face value of Rs. 10 each at par credited as fully paid up for every 18fully paid shares held by the shareholders of BMNL. Accordingly, BCL has issued 362,950 numbers of equity shares of Rs.10 eachfully paid up to DSS Enterprises Private Limited, holding 4.67% equity shares in erstwhile BMNL.

e) Pursuant to the Scheme of Amalgamation of BBNL and BTSoL with BTNL, as approved by the Honorable High Court of Delhiby its order dated August 29, 2003, which became effective on September 10, 2003, on receipt of Certificate of Registration ofOrder of Court from the Registrar of Companies, NCT of Delhi and Haryana, all the assets, liabilities and reserves of erstwhileBBNL and BTSoL were transferred to and vested in BTNL with effect from the appointed date i.e. April 3, 2002.

The Scheme of Amalgamation has been accounted for under the Pooling of Interest Method as per Accounting Standard 14 onAccounting for Amalgamations issued by The Institute of Chartered Accountants of India whereby the assets, liabilities andreserves of the erstwhile BBNL and BTSoL have been recorded in BTNL’s books at their book value to the erstwhile companies.

In accordance with the aforesaid scheme, the paid-up capital of BTNL is reduced to adjust the absorption of losses of erstwhileBBNL and BTSoL and represent the available assets justifiably.




f) The amalgamations within the group referred to in paragraph (a) to (e) above have the following impact on the openingreserves of the group:

(Rs. ’000)

Pre-acquisition loss charged to opening reserve consequent to the scheme of amalgamation (1,895,282)

Opening accumulated amortisation of goodwill reversed 406,405

Difference on consideration and value of net assets acquired under the scheme of amalgamation (4,596,350)

Share of minority loss on amalgamation 3,630

Total (6,081,597)

12. Minority Interest

Minority interest represents that part of the net results of operations and of the net assets of a subsidiary attributable to interests whichare not owned, directly or indirectly through subsidiary (ies), by BTVL.

Minority interest as at year-end is:

Name of Company As at March 31, 2003 As at March 31, 2002

Bharti Mobile Limited* 26% 26%

Bharti Cellular Limited** 0.34% –

Bharti Mobinet Limited** – 4.67%

Bharti Aquanet Limited 49% 49%

* Minority interest of 26% of BML has since been acquired by BCL subsequent to the Balance Sheet date.

** Bharti Mobinet Limited has merged with Bharti Cellular Limited [Refer Note 10(d)(ii) above].

The amount attributable to the minority shareholders as at the year-end is on account of:

Particulars As at March 31, 2003 As at March 31, 2002(Rs. ’000) (Rs. ’000)

Share Capital 1,445,879 1,507,630

Share Premium 85,750 85,750

Share Application Money – 592,512

Share of Opening Reserve (896,702) (917,166)

Share of current Year Profit/(Loss) 286,418 (28,640)

Total 921,345 1,240,086

The share of minority shareholders in the accumulated losses of BCL is restricted to their share in the capital of the Company andthe balance has been absorbed by the majority shareholders.



13. Earnings Per Share

As at March 31, 2003 As at March 31, 2002(Rs. ’000) (Rs. ’000)

Basic and Diluted Earnings per Share:

a) Profit/(Loss) attributable to equity shareholders (Rs. ’000) (A) (2,050,589) (1,805,290)

b) Weighted average number of equity sharesoutstanding during the year (B) 1,853,366,767 1,706,750,388

c) Nominal value of equity shares (Rs.) 10/- 10/-

d) Basic and Diluted Earnings per Share (Rs.) (A)/(B) (1.11) (1.06)

14. Leases

Operating Lease – As Lessee

The lease rentals charged during the year for cancelable/non-cancelable leases relating to rent of building premises and cell sites as perthe agreements and maximum obligations on long-term non-cancelable operating leases are as follows:

Year ended Year endedMarch 31, 2003 March 31, 2002

(Rs. ’000) (Rs. ’000)

Lease Rentals debited to Profit and Loss Account 71,689 25,000

Obligations on non cancelable leases:

Not later than one year 34,265 60,000

Later than one year and not later than five years 131,313 515,000

Later than five years 381,047 –

Total 546,625 575,000

Finance Lease – As a Lessor

During the year the Group has given certain assets under Finance lease. The reconciliation between the total of minimum leasepayments at Balance Sheet date and their present value is as below:

Gross Unearned PresentInvestment Finance Income Value(Rs. ’000) (Rs. ’000) (Rs. ’000)

Not later than one year 15,062 4,015 11,047

Later than one year and not later than five years 23,022 2,881 20,141

Later than five years – – –

Total 38,084 6,896 31,188




Finance Lease – As Lessee

The Group has taken certain vehicles on Finance lease. The reconciliation between the total of minimum lease payments at BalanceSheet date and their present value is as below :

Minimum Future Finance PresentLease Payments Charges Value

(Rs. ’000) (Rs. ’000) (Rs. ’000)

Not later than one year 707 62 645

Later than one year and not later than five years 964 33 931

Total 1,671 95 1,576

15. Significant Non-Frequently Occurring Items accounted for in the Financial Statements

The Group has accounted for the following one-time transactions:

(a) The Group has been carrying unutilised network equipments having a written down value of Rs. 396,662 thousand. Themanagement based on a conservative approach has fully depreciated the same during the year.

(b) During the year the Group has received refund of interest from the Department of Telecommunication consequent to thejudgement of Honorable Supreme Court dated March 4, 2003 in the mobility circles of Andhra Pradesh and Karnatakaamounting to Rs.770,334 thousand.

(c) The management has also provided for Rs. 69,340 thousand towards liquidated damages and WPC charges with respect to theamount recoverable from the Department of Telecommunication.

(d) During the year the management has reviewed the useful life of capital work-in-progress having a carrying value of Rs. 11,385thousand and consequently written off the same.

16. (i) The Central Government’s approval is pending against the application made by BML in respect of remuneration of Rs. 1,943thousand [Rs. 1,274 thousand for the five month period ended August 31, 2000 and Rs. 669 thousand for the year ended March31, 2000 respectively](March 2002: Rs. 1,943 thousand) payable to the former Whole-time Director which exceeds the limitsprescribed by Schedule XIII of the Companies Act, 1956.

(ii) BML is in the process of appointing a Whole-time Director as required under the Companies Act.

(iii) The Central Government’s approval is pending against the application made by BCL in respect of excess remuneration paid toWholetime Directors of Rs. 4,063 thousand (Previous year Rs. 4,063 thousand) and is refundable by the Directors.

17. Export Obligation

BAQL and BIL have obtained licences under the Export Promotion Credit Guarantee (‘EPCG’) Scheme for importing capital goodsat a concessional rate of customs duty against submission of bank guarantee and bonds.

a. Under the terms of the scheme, BAQL is required to export goods of FOB value equivalent to, or more than, five times the valueof imports, within a period of eight years from the date of the respective licences. Accordingly, the Company is required to exportgoods of Rs. 2,283,517 thousand.

b. Upto March 31, 2003 BIL has imported capital goods amounting to Rs. 3,301,857 thousand (Previous year Rs. 2,011,445thousand) under the said scheme. Under the terms of the scheme, the Company is required to export goods of FOB valueequivalent to, or more than, five times the value of imports, within a period of eight years from the date of the respective licences.As per the terms of the scheme the Company is exempted from any export obligation during the first two years of the scheme,from the date of issue of respective licences. The value of exports till March 31, 2003 against the above obligations isRs. 2,136,659 thousand.



18. Information about Business Segments – Primary

For the year ended March 31, 2003 (Rs. ’000)

Reportable Segments Mobility Access Long Broadband Others Eliminations TotalDistance

Revenue

Billing Revenue/Sale of Goods andOther Income 20,836,905 3,500,001 4,981,330 1,235,299 878 – 30,554,413

Inter Segment Revenue 19,025 91,705 2,366,792 26,525 188,769 (2,692,816) –

Total Revenue 20,855,930 3,591,706 7,348,122 1,261,824 189,647 (2,692,816) 30,554,413

Results

Segment Result, Profit/(Loss) 1,314,877 (733,248) 1,187,708 48,929 (850,569) 126 967,823

Operating Profit/(Loss) beforeFinance Expenses 1,314,877 (733,248) 1,187,708 48,929 (850,569) 126 967,823

Finance Expenses/(Income) (net) – – – – 2,737,537 (7,329) 2,730,208

Net Profit (Loss) 1,314,877 (733,248) 1,187,708 48,929 (3,588,106) 7,455 (1,762,385)

Provision for Tax – – – 1,261 525 – 1,786

Minority Share 290,722 – (4,304) – – – 286,418

Net Profit/(Loss) after tax 1,024,155 (733,248) 1,192,012 47,668 (3,588,631) 7,455 (2,050,589)

Other Information

Segment Assets 53,591,123 13,613,814 13,990,728 1,194,943 8,277,969 (211,360) 90,457,217

Inter Segment Assets – 2,930,347 337,869 78,680 33,325,807 (36,672,703) –

Deferred Tax Asset – – – – 1,059,238 – 1,059,238

Advance Tax (Net ofprovision for tax) – – – – 108,542 – 108,542

Total Assets 53,591,123 16,544,161 14,328,597 1,273,623 42,771,556 (36,884,063) 91,624,997

Segment Liabilities 40,072,283 5,131,428 8,231,461 705,217 61,893 (60,000) 54,142,282

Inter Segment Liabilities 19,147,235 9,926,843 5,178,563 2,419,246 816 (36,672,703) –

Minority Interest - - - - 921,345 921,345

Total Liabilities 59,219,518 15,058,271 13,410,024 3,124,463 984,054 (36,732,703) 55,063,627

Capital Expenditure 16,172,794 4,721,001 8,044,008 105,487 31,633 – 29,074,923

Depreciation 3,082,627 1,099,649 443,226 139,564 35,985 – 4,801,051

Non-Cash Expenses otherthan Depreciation(Amortisation) 912,633 111,356 65,797 7,143 676,690 – 1,773,619




For the year ended March 31, 2002 (Rs. ’000)

Reportable Segments Mobility Access Long Broadband Others Eliminations TotalDistance

Revenue

Billing Revenue/Sale of Goods andOther Income 12,475,985 1,630,656 218,426 708,678 7,499 – 15,041,244

Inter Segment Revenue – – 108,847 35,993 25,027 (169,867) –

Total Revenue 12,475,985 1,630,656 327,273 744,671 32,526 (169,867) 15,041,244

Results

EBITDA 4,129,328 339,909 22,217 (223,882) (463,991) (7,328) 3,796,253

Segment Result, Profit/(Loss) 1,542,587 (922,863) (86,873) (409,868) (983,581) (7,328) (867,926)

Operating Profit 1,542,587 (922,863) (86,873) (409,868) (983,581) (7,328) (867,926)

Finance Expenses/(Income) (net) 1,056,796 404,771 14,695 6,053 (538,614) 144,032 1,087,733

Net Loss 485,791 (1,327,634) (101,568) (415,921) (444,967) (151,360) (1,955,659)

Provision for Tax – – – – (83,898) – (83,898)

Deferred Tax Income – – – – 321,119 – 321,119

Minority Share – – – – 28,640 – 28,640

Pre-acquisition profit attributableto minority adjusted against costof investment – – – – (84,096) – (84,096)

Loss of Associate Company – – – – (31,396) – (31,396)

Net Loss after tax 485,791 (1,327,634) (101,568) (415,921) (294,598) (151,360) (1,805,290)

Other Information

Segment Assets 48,124,510 10,808,700 8,099,314 927,461 12,784,344 (150,300) 80,594,029

Inter Segment Assets 28,714 320,535 1,557,002 10,375 30,162,911 (32,079,537) –

Deferred Tax Asset – – – – 1,059,236 – 1,059,236

Advance Tax (Net ofprovision for tax) – – – – 131,237 – 131,237

Total Assets 48,153,224 11,129,235 9,656,316 937,836 44,137,728 (32,229,837) 81,784,502

Segment Liabilities 26,845,501 4,330,041 2,851,440 433,943 1,411,270 – 35,872,195

Inter Segment Liabilities 19,282,838 6,665,874 4,309,753 1,417,626 150,292 (31,826,383) –

Minority Interest – – – – 1,240,086 – 1,240,086

Total Liabilities 46,128,339 10,995,915 7,161,193 1,851,569 2,801,648 (31,826,383) 37,112,281

Capital Expenditure 11,637,315 1,895,580 1,774,240 473,116 8,078,512 – 23,858,763

Depreciation 1,425,110 665,781 35,338 179,816 32,268 – 2,338,313

Non-Cash Expenses other thanDepreciation (Amortisation) 809,682 39,520 11,012 6,169 487,321 – 1,353,704



Notes:

1. ‘Others’ represents the unallocated revenue, profit/(loss), assets & liabilities of the Company.

2. EBITDA represents Profit before Finance expenses, Depreciation, Amortisation, Tax.

3. Capital expenditure pertains to gross additions made to fixed assets during the year.

4. Segment Assets include Fixed Assets, Capital Work-in-Progress, Pre-operative expenses pending allocation, Current Assetsand Miscellaneous Expenditure to the extent not written off.

5. Segment Liabilities include Secured and Unsecured loans, Current Liabilities and security deposits from customers.

6. Inter segment assets/liabilities represent the inter segment account balances.

7. Inter segment revenues are accounted for at competitive market prices. These transactions have been eliminated in consolidation.

Information about Business Segment – Secondary

The group has operations within India as well as with entities located in other countries. The information relating to the Geographicalsegments in respect of operations within India, which is the only reportable segment, the remaining portion being attributable toothers, is presented below for the year ended March 31, 2003.

(Rs. ’000)

Segment Revenue from external customers based on geographicallocation of customers (including Other Income)

Within India 28,417,754Others 2,136,659

30,554,413

Carrying amount of segment assets by geographical location

Within India 88,734,523Others 2,890,474*

91,624,997

Cost incurred during the year to acquire segment assets by geographical location

Within India 28,451,092Others 623,831

29,074,923

* Includes Rs. 1,059,238 thousand unallocable deferred tax asset and Rs. 188,997 thousand unallocable miscellaneous expenditure (tothe extent not written off).

During the previous year, the group had operations only within India and accordingly, it had only one geographical area viz. India.

Notes:

1. ‘Others’ represents the unallocated revenue, assets and acquisition of segment assets of the Company.

2. Assets include Fixed Assets, Capital work-in-progress, Current Assets, Deferred Tax Asset and Miscellaneous Expenditure (tothe extent not written off).

Cost incurred to acquire segment assets pertain to gross additions made to Fixed Assets during the year.

19. Related Party Transaction:

In accordance with the requirements of Accounting Standard (AS) - 18 on Related Party Disclosures, the names of the related partieswhere control exists and/or with whom transactions have taken place during the year and description of relationships, as identifiedand certified by the management are:




List of Related Parties

Key Management Personnel:Sunil Bharti MittalRajan Bharti MittalAkhil GuptaAnil Nayar

Other Related Parties

Name of the Related Party RelationshipBharti Enterprises Private Limited Associate CompanyBharti Telecom Limited Associate CompanyBharti Telecom Finance Limited Associate CompanyBharti Telesoft Limited Associate CompanyBharti Teletech Limited Associate CompanyBharti Infotrac Limited Associate CompanyBharti Systel Limited Associate CompanyBharti Healthcare Limited Associate CompanyBharti Global Limited Associate CompanyBharti Overseas Trading Company Associate Partnership FirmPastel Limited Associate CompanySingapore Telecommunications Limited Associate Company

The Related party transactions during the year are as follows:

Relationship Associate Companies/Firms Associate Companies/ FirmsYear ended Year ended

March 31, 2003 March 31, 2002(Rs. ’000) (Rs. ’000)

Nature of Transactions

Opening Balance (4,927) (204,289)Funds transferred 435 281,825Payment made for expenses incurred on our behalf 16,052 820,709Funds received (105) (707,683)Payment received for expenses incurred on behalf of group companies (3,036) –Sale/Transfer of assets – 4,776Purchase of assets (64,776) (101,548)Expenses incurred on behalf of group companies 5,939 25,076Expenses incurred by Group Companies on behalf of us (20,090) (123,547)Sale of services 1,371 –Payment received against sale of services rendered (1,964) –Purchase of services (122,574) –Payment made for purchase of service rendered by them 179,500 –Other Adjustments (403) (246)

Closing Balance (14,578) (4,927)

Payment made to Key Management Personnel is Rs.101,892 thousand (Previous year Rs. 108,555 thousand).

20. As at the year-end, the accumulated losses exceed the paid up share capital and reserves of BCL. However, as the accounts of BCLincorporate the results of operations of new circles, which have commenced operations only in the current year, in view of the resultsof operations of BCL for the year and support from the holding company, the accounts are prepared on a going concern basis.

21. Previous year figures have been regrouped/reclassified, wherever necessary, to conform to current year’s classification.


BHARTI TELE�VENTURES LIMITED


BHARTI TELE-VENTURES LIMITED


TO THE MEMBERS OF BHARTI TELE-VENTURESLIMITED

1. We have audited the attached Balance Sheet of Bharti Tele-Ventures Limited, as at March 31, 2003, and the relatedProfit and Loss Account and Cash Flow Statement for theyear ended on that date annexed thereto, which we havesigned under reference to this report. These financial statementsare the responsibility of the company’s management. Ourresponsibility is to express an opinion on these financialstatements based on our audit.

2. We conducted our audit in accordance with the auditingstandards generally accepted in India. Those Standards requirethat we plan and perform the audit to obtain reasonableassurance about whether the financial statements are free ofmaterial misstatement. An audit includes examining, on atest basis, evidence supporting the amounts and disclosures inthe financial statements. An audit also includes assessing theaccounting principles used and significant estimates made bymanagement, as well as evaluating the overall financialstatement presentation. We believe that our audit provides areasonable basis for our opinion.

3. As required by the Manufacturing and Other Companies(Auditor’s Report) Order, 1988 issued by the CentralGovernment of India in terms of sub-section (4A) of Section227 of ‘The Companies Act, 1956’ of India (the ‘Act’) andon the basis of such checks as we considered appropriate andaccording to the information and explanations given to us,we further report that:

(i) (a) The Company has maintained proper records toshow full particulars including quantitative detailsand situation of its fixed assets.

(b) The fixed assets of the Company are physicallyverified by the management according to a phasedprogramme designed to cover all the items over aperiod of three years. Pursuant to the programme,a physical verification was carried out during theyear and this revealed no material discrepancies.The fixed assets having a gross book value ofRs.184,890 thousand are held by third partieswhich have been confirmed by them.

(ii) The fixed assets of the Company have not been revaluedduring the year.

(iii) The Company has not taken any other loans secured orunsecured from companies, firms or other parties listedin the register maintained under Section 301of the Act.In terms of sub-section (6) of Section 370 of the Act,provisions of this Section are not applicable to a companyon or after October 31, 1998.

(iv) In our opinion the terms and conditions of unsecuredinterest bearing loans which have been repaid during

AUDITORS’ REPORT

the year and unsecured interest free advances, grantedby the Company to its subsidiaries listed in the registermaintained under Section 301 of the Act are primafacie not prejudicial to the interest of the Company.The Company has not granted any other loans, securedor unsecured to companies, firms or other parties listedin the register maintained under Section 301 of theAct. In terms of sub-section (6) of Section 370 of theAct, provisions of this Section are not applicable to acompany on or after October 31, 1998.

(v) The parties including employees to whom loans oradvances in the nature of loans have been given by theCompany are repaying the principal amounts asstipulated and are also regular in payment of interest asapplicable in all cases.

(vi) In our opinion, there is an adequate internal controlprocedure commensurate with the size of the Companyand the nature of its business, for purchase of fixed assets.This being a service company, there is no purchase ofplant and machinery, stores, raw materials includingcomponents and sale of goods.

(vii) In our opinion, purchase of goods from subsidiarycompanies, made in pursuance of contracts enteredin the register maintained under Section 301 of theAct aggregating during the year Rs. 50,000 or more invalue in respect of each party have been made at priceswhich are reasonable having regard to the prevailingmarket prices for such goods and services. In respectof sale of services aggregating Rs.174,186 thousandrendered in pursuance of contracts or arrangementsentered in the register maintained under Section 301of the Act, there are no sale of similar services comparableto those sold which, however, are considered to be ofspecial nature as explained by the management of theCompany and accordingly we are unable to commentthereon.

(viii)The Company has not accepted any deposits from thepublic.

(ix) In our opinion, the Company’s present internal auditsystem is generally commensurate with its size and natureof business.

(x) The Company has regularly deposited, during the year,Provident Fund and Employees’ State Insurance dueswith appropriate authorities in India.

(xi) At the last day of the financial year there was no amountoutstanding in respect of undisputed income tax, wealthtax, sales tax, customs duty and excise duty which weredue for more than six months from the date they becamepayable.


(xii) During the course of our examination of the books ofaccount carried out in accordance with the generallyaccepted auditing practices in India, we have not comeacross any personal expenses which have been chargedto Profit and Loss Account, nor have we been informedof such case by the management other than those payableunder contractual obligations and/or accepted businesspractices.

(xiii) In respect of services rendered:

(a) The nature of the services rendered is such that itdoes not involve consumption of material andstores.

(b) Considering the nature of the services rendered, itis not necessary to have a system of allocation ofman-hours utilised to the relative jobs.

(xiv) In respect of investing activities the Company hasmaintained proper records of the transactions andcontracts entered into and has made timely entriestherein, and the shares, debentures, securities and otherinvestment have been held by the Company in its ownname.

The other clauses of the Order are either not applicable or notrelevant to the operations of the Company for the year, andaccordingly we have not reported on the matters specified inthose clauses.

4. Further to our comments in paragraph 3 above, we reportthat:

(a) We have obtained all the information and explanations,which to the best of our knowledge and belief werenecessary for the purposes of our audit;

(b) In our opinion, proper books of account as required bylaw have been kept by the company so far as appearsfrom our examination of those books;

(c) The Balance Sheet, Profit and Loss Account and CashFlow Statement dealt with by this report are in agreementwith the books of account;

(d) In our opinion, the Balance Sheet, Profit and LossAccount and Cash Flow Statement dealt with by thisreport comply with the accounting standards referred toin sub-section (3C) of Section 211 of the Act;

(e) On the basis of written representations received fromthe directors as on March 31, 2003 and taken on recordby the Board of Directors, we report that none of thedirectors is disqualified as on March 31, 2003 from beingappointed as a director in terms of clause (g) of sub-section (1) of Section 274 of the Act;

(f) In our opinion and to the best of our information andaccording to the explanations given to us, the saidfinancial statements together with the notes thereonand attached thereto give in the prescribed manner theinformation required by the Act, and also giverespectively, a true and fair view in conformity with theaccounting principles generally accepted in India:

(i) in the case of the Balance Sheet, of the state ofaffairs of the Company as at March 31, 2003;

(ii) in the case of the Profit and Loss Account, of theprofit for the year ended on that date; and

(iii) in the case of the Cash Flow Statement, of thecash flows for the year ended on that date.

U. RAJEEVPartner


Place : New Delhi PRICE WATERHOUSEDated : September 16, 2003 Chartered Accountants



BALANCE SHEET AS AT MARCH 31, 2003

Schedule As at As atParticulars No. March 31, 2003 March 31, 2002

(Rs. 000’s) (Rs. 000’s)

SOURCES OF FUNDSShareholders’ Funds

Share Capital 1 18,533,668 18,533,668Reserves and Surplus 2 29,711,227 29,708,961Loan Funds

Secured Loans 3 11,885 5,162Unsecured Loans 4 – 1,000,000

Total 48,256,780 49,247,791

APPLICATION OF FUNDSFixed Assets 5

Gross Block 306,198 280,208Less: Depreciation 137,896 105,113

Net Block 168,302 175,095

Investments 6 14,677,944 18,996,683Current Assets, Loans and Advances

Cash and Bank Balances 7 3,355 225,243Loans and Advances and other Current Assets 8 33,409,763 30,176,945

Total Current Assets 33,413,118 30,402,188

Less: Current Liabilities and Provisions 9Current Liabilities 34,181 401,938Provisions 15,833 4,169

Total Current Liabilities 50,014 406,107Net Current Assets 33,363,104 29,996,081Miscellaneous Expenditure(to the extent not written off or adjusted) 10 47,430 79,932

Total 48,256,780 49,247,791

Statement of Significant Accounting Policies 17Notes to Accounts 18

This is the Balance Sheet referred to The Schedules referred to above form an integral part of the Balance Sheetin our report of even date


U. RAJEEV SUNIL BHARTI MITTAL AKHIL GUPTAPartner Chairman & Managing Director Joint Managing DirectorFor and on behalf ofPRICE WATERHOUSEChartered Accountants

NARENDER GUPTA SANJEEV KUMARCompany Secretary Group Financial Controller



Schedule For the year ended For the year endedParticulars No. March 31, 2003 March 31, 2002

(Rs. 000’s) (Rs. 000’s)

INCOMEInterest, Lease Rental and Other Income 11 729,107 662,007

729,107 662,007EXPENDITURE

Personnel 12 197,912 197,553Sales and Marketing 13 10,303 99,139Administrative and Others 14 119,450 198,536

Total Expenditure 327,665 495,228

Operating Profit before Financial Expenses,Amortisation, Depreciation and Taxation 401,442 166,779

Finance Expenses 15 312,266 90,919Depreciation 35,984 32,268Amortisation 16 50,450 42,250

Profit before Tax 2,742 1,342Provision for Tax 525 67

Profit after Tax 2,217 1,275Profit brought forward 2,151 151,176

Difference of consideration and value of net assetsacquired under a scheme of amalgamation – (150,300)

Profit carried to the Balance Sheet 4,368 2,151

Earnings per Share (in Rs.) 0.001 0.001(Basic and Diluted)(Refer Note 12 on Schedule 17 and Note 11 on Schedule 18)

Statement of Significant Accounting Policies 17Notes to Accounts 18

This is the Profit and Loss Account referred to The Schedules referred to above form an integral part of the Profit and Loss Accountin our report of even date


U. RAJEEV SUNIL BHARTI MITTAL AKHIL GUPTAPartner Chairman & Managing Director Joint Managing DirectorFor and on behalf ofPRICE WATERHOUSEChartered Accountants



PROFIT AND LOSS STATEMENTFOR THE YEAR ENDED MARCH 31, 2003



CASH FLOW STATEMENT FOR THE YEAR ENDEDMARCH 31, 2003

(Rs. 000’s)


A. Cash Flow from operating activities:Net (loss)/profit before tax but after exceptional/extraordinary items 2,742 1,342Adjustments for:Depreciation 35,984 32,268Interest Expense 312,266 90,919Interest Income (307,199) (146,286)(Profit)/Loss on Fixed Assets sold 266 52(Profit)/Loss on sale of Investments (232,141) (476,129)Miscellaneous Expenditure/Billing and Software written off 50,450 52,956Provision for Gratuity and Leave Encashment 11,617 2,851Other Provision 47 124

Operating profit before working capital changes (125,968) (441,903)Adjustments for changes in working capital:– (INCREASE)/DECREASE in Other Receivables 89,187 (344,249)– INCREASE/(DECREASE) in Trade and Other Payables (367,757) (34,694)– Payment made for Deferred Revenue Expenditure – (10,706)– Amount paid to ESOP Trust – (154,163)

Cash generated from operations (404,538) (985,715)– Taxes (Paid)/Received 28,823 (2,096)

Net cash from operating activities (375,715) (987,811)

B. Cash flow from investing activities:Adjustments for changes in:Purchase of Fixed Assets - Additions during the Year (31,634) (35,142)Capital Work-in-Progress - Additions during the Year – 43,553Proceeds from Sale of Fixed Assets 2,177 1,050Proceeds from Sale of Investments 20,695,653 43,175,513Purchase of Investments (16,144,773) (46,037,511)Advances given to Subsidiary Companies (3,621,058) (21,109,435)Interest Received (Revenue) 308,956 217,718Amount Paid on Acquisition/Investment in Subsidiaries – (11,277,210)Sale consideration of Investments in Subsidiaries – 3,458,468Procceds from ICD Refund 250,000 –

Net cash used in investing activities 1,459,321 (31,562,996)


CASH FLOW STATEMENT FOR THE YEAR ENDEDMARCH 31, 2003

C. Cash Flow from financing activities:Proceeds from fresh issue of Share Capital (including Share Premium) – 32,091,274Amount of share issue expenses – (381,979)Adjustment to Share Premium 49Proceeds from long term borrowingsRECEIPTS 6,723 5,163PAYMENTS – –Proceeds from short term borrowingsRECEIPTS – 1,000,000PAYMENTS (1,000,000) –Interest Paid (312,266) (71,376)

Net cash used in financing activities (1,305,494) 32,643,082

Net Increase/(Decrease) in Cash and Cash Equivalents (221,888) 92,275Opening Cash and Cash Equivalents 225,243 132,955Cash and Cash Equivalents Acquired on Acquisition – 13

Cash and Cash Equivalents as at March 31, 2003 3,355 225,243

Cash and Cash Equivalents compriseCash, Cheques, Drafts (in hand) and Remittances in Transit 2,555 93Balance with Scheduled Banks 800 225,150

This is the Cash Flow referred to The Schedules referred to above form an integralin our report of even date part of the Cash Flow Statement


U. RAJEEV SUNIL BHARTI MITTAL AKHIL GUPTAPartner Chairman & Managing Director Joint Managing DirectorFor and on behalf ofPRICE WATERHOUSE NARENDER GUPTA SANJEEV KUMARChartered Accountants Company Secretary Group Financial Controller


(Rs. 000’s)






(Rs. 000’s) (Rs. 000’s)

SCHEDULE : 1SHARE CAPITALAuthorised

2,500,000,000 (Previous Year 2,500,000,000)Equity Shares of Rs.10 each 25,000,000 25,000,000

Issued, Subscribed and Paid up1,853,366,767 Equity Shares of Rs.10 each fully paid up 18,533,668 18,533,668(Previous year 1,853,366,767 Equity Shares of Rs.10 each)Of the above 1,516,390,970 Equity Shares issued as fully paid upbonus shares out of Share Premium Account

SCHEDULE : 2RESERVES AND SURPLUSShare Premium

Opening balance 29,706,810 15,005,687Additions/Adjustments during the year 49 30,247,012

29,706,859 45,252,699Less : Utilisation during the yearAmount Utilised to write off share issue expenses – 381,979Amount utilised for issue of Nil (Previous year 1,516,390,970)bonus shares of Rs. 10 each fully paid up. – 15,163,910

Closing balance 29,706,859 29,706,810

Profit and Loss AccountBalance brought forward 2,151 151,176Add: Profit during the year 2,217 1,275

4,368 152,451Less:

Difference of consideration and value of net assets acquiredunder a scheme of amalgamation – 150,300

Total Profit carried to the Balance Sheet 4,368 2,151

Reserves and Surplus 29,711,227 29,708,961

SCHEDULE : 3SECURED LOANSFrom Banks :– Vehicle Loan 11,885 5,162

(Secured by way of hypothecation of vehicles)(Amount repayable within one year Rs. 5,143 thousand,previous year Rs. 1,718 thousand)

Secured Loan 11,885 5,162

SCHEDULE : 4UNSECURED LOANSShort Term

From Financial Institutions – 1,000,000

Unsecured Loans – 1,000,000(Amount repayable within one year Rs. Nil, previous year Rs. 1,000 thousand)


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(Rs. 000’s) (Rs. 000’s)

SCHEDULE : 6INVESTMENTS(Refer Note 5 on Schedule 17 and Note 3 and 4 on Schedule 18)Non-TradeCurrent Quoted:

– Government securities – 110,500– Mutual Funds and Bonds 382,725 4,590,964

Shares, Long Term Unquoted:Investment in Subsidiaries/Group CompaniesBharti Cellular Ltd.:105,745,500 (Previous year 105,000,000)Equity shares of Rs.10/- each fully paid up. 9,161,896 9,161,896Bharti Telesonic Ltd.: Nil (Previous year 175,000,000) *Equity shares of Rs.10/- each fully paid up. – 1,773,630Bharti BT Internet Ltd.: Nil (Previous year 10,000,000) *Equity shares of Rs.10/- each fully paid up. – 287,794Bharti Infotel Ltd.: 277,200,000 (Previous year 300,000,000)Equity shares of Rs.10/- each fully paid up. (formerly Bharti Telenet Limited) 5,133,323 3,071,899

Investments 14,677,944 18,996,683Aggregate Market Value of Quoted Investments 387,880 4,732,061Aggregate Face Value of Quoted Investments 298,835 3,047,734Aggregate Face Value of Unquoted Investments 3,829,455 5,900,000

* merged with Bharti Infotel Limited during the year pursuant to a scheme of amalgamation.

SCHEDULE : 7CASH AND BANK BALANCES

Cash in Hand 24 –Cheques in Hand 2,531 93

Balances in Scheduled Banks– in Current Account 800 23,452– in Fixed deposits – 180,000– in Deposit Account as Margin Money – 230– in Public Issue Account – 21,468

Cash and Bank Balances 3,355 225,243

SCHEDULE : 8LOANS AND ADVANCES AND OTHER CURRENT ASSETS(Unsecured, considered good unless otherwise stated)Loans and AdvancesTo Subsidiary Companies :

Bharti Cellular Limited 17,832,136 10,108,659Bharti Infotel Limited 14,665,292 5,132,002Bharti Telesonic Limited – 4,309,367Bharti Mobile Limited 827,570 5,702,414S.C. Cellular Holdings Limited – 2,437,297Bharti BT Internet Limited – 1,397,005Bharti Aquanet Limited – 387Bharti Mobitel Limited – 616,657Bharti Mobinet Limited – 33,324,998 152 29,703,940

Advances Recoverable in cash or in kind or for value to be received 28,150 128,825Advance to ESOP Trust 25,520 31,980Advance Tax [Net of provision for tax Rs. 64,592 thousand 29,346 58,694(Previous Year Rs. 64,067 thousand)]Inter Corporate Deposit – 250,000Other Current Assets

Interest Accrued on Investment 1,749 3,506

Loans and Advances and Other Current Assets 33,409,763 30,176,945




(Rs. 000’s) (Rs. 000’s)

SCHEDULE : 9CURRENT LIABILITIES AND PROVISIONSCurrent Liabilities

Sundry Creditors :Dues of creditors other than small scale industries 21,798 320,202Book Overdraft 4,673 50,007Other Liabilities 7,710 31,729

Current Liabilities 34,181 401,938

Provisions (Refer Note 7 on Schedule 17)Gratuity 7,441 2,821Leave Encashment 8,149 1,152Wealth Tax 243 196

Provisions 15,833 4,169

Current Liabilities and Provisions 50,014 406,107

SCHEDULE : 10MISCELLANEOUS EXPENDITURE(To the extent not written off)

Deferred Employee Compensation Expense(Refer Note 8 on Schedule 17)

Opening Balance: 79,932 –Add: Addition during the year 17,948 122,182Less: Amortisation for the year 50,450 42,250

Closing Balance 47,430 79,932

Miscellaneous Expenditure 47,430 79,932





(Rs. 000’s) (Rs. 000’s)

SCHEDULE : 11INTEREST, LEASE RENTAL AND OTHER INCOMEInterest Income :

– from Current Investments Other than Trade(Gross of TDS Rs. 269 thousand; Previous yearRs. 6,030 thousand) 1,284 132,781

– from others (Gross of TDS Rs. 916 thousand;Previous year Rs. 2,483 thousand) 305,915 13,505

Profit on Sale of Short Term Investments 232,141 325,829Profit on Sale of Long Term Investments – 150,300Income from Services Rendered 166,857 –Miscellaneous Income 15,459 25,146Lease Rentals 7,329 7,329Profit on Sale of Assets 122 –Exchange Fluctuation Gain/(Loss) – 7,117

Interest, Lease Rental and Other Income 729,107 662,007

SCHEDULE : 12PERSONNEL EXPENDITURESalaries, Wages and Bonus * 176,121 126,800Contribution to Provident and Other Funds 8,355 12,325Staff Welfare 4,057 48,412Recruitment and Training 9,379 10,016

Personnel Expenditure 197,912 197,553* Excluding amortisation of Deferred ESOP cost

SCHEDULE : 13SALES AND MARKETING EXPENDITUREAdvertisement and Marketing 2,075 91,233Business Promotion 2,164 948Sponsorship 6,064 6,958

Sales and Marketing Expenditure 10,303 99,139

SCHEDULE : 14ADMINISTRATIVE AND OTHER EXPENDITURELegal and Professional 17,810 80,307Rates, Fees and Taxes 784 14,514Electricity and Water 1,032 1,172Telephone, Telex and Postage 11,351 12,119Printing and Stationery 5,766 3,838Travelling and Conveyance 29,541 34,845Rent 9,379 8,598Repairs and Maintenance- Building 5,300 1,076Repairs and Maintenance- Others 18,767 10,974Insurance 8,466 4,216Miscellaneous 10,866 26,825Loss on Sale of Assets 388 52

Administrative and Other Expenditure 119,450 198,536




(Rs. 000’s) (Rs. 000’s)

SCHEDULE : 15FINANCE EXPENSESInterest :

– On Term Loan 306,458 90,190– On Others 1,622 –

Other Finance Charges 4,186 729

Finance Expenses 312,266 90,919

SCHEDULE : 16AMORTISATION(Refer Note 8 on Schedule 17)Personnel - Deferred ESOP Cost 50,450 42,250

Amortisation 50,450 42,250

SCHEDULE : 17

STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES

The significant accounting policies adopted by the Company in respect of these financial statements, are set out below.

1. BASIS OF PREPARATIONThese financial statements have been prepared under the historical cost convention, in accordance with the generally acceptedaccounting principles in India and the provisions of the Companies Act,1956 as adopted consistently by the Company.

2. FIXED ASSETSFixed Assets are stated at cost of acquisition and subsequent improvements thereto, including taxes, duties, freight and otherincidental expenses related to acquisition and installation. Capital work in progress is stated at cost.

3. DEPRECIATIONDepreciation is provided on straight-line method at the rates and in the manner prescribed by Schedule XIV to the Companies Act,1956, except for the following on which depreciation is provided on straight-line method to write off the cost of the fixed assets overtheir estimated useful lives:

Rate of Depreciation per annumBuilding 5%Office Equipment 20%Computer 33.33%Vehicles 20%Furniture & Fixtures 20%Leasehold Land Period of leaseLeasehold Improvements Period of lease or 10 years whichever is less

Software up to Rs. 500 thousand is written off in the year of purchase.Additional depreciation is provided as appropriate, towards diminution in value of assets.

4. REVENUE RECOGNITION AND RECEIVABLESInvesting and Other Activities: Income on account of interest and other activities are recognised on an accrual basis. Dividends areaccounted for when the right to receive the payment is established.

5. INVESTMENTCurrent Investments are valued at lower of cost and fair market value.Long term Investments are valued at cost. Provision is made for diminution in value to recognise a decline, if any, other than that oftemporary nature.




6. FOREIGN CURRENCY TRANSACTIONSTransactions in Foreign Currency are recorded at the exchange rate prevailing at the date of the transaction. Monetary items arerestated at year-end foreign exchange rates. Resultant exchange differences arising on payment or conversion of liabilities are recognisedas income or expense in the year in which they arise except in respect of liabilities for acquisition of fixed assets, where such exchangedifference is adjusted in the carrying cost of the respective fixed asset. All foreign currency liabilities covered by forward contracts arerestated at the forward cover rates. The gains/losses arising from such restatement are recognised over the period of such contract.

7. RETIREMENT BENEFITSContribution to provident fund is made at predetermined rates and is charged to Profit and Loss Account. Provision for the liabilityon account of unavailed earned leave and gratuity is made as per actuarial valuation at year-end as per projected unit credit method.

8. EMPLOYEE STOCK OPTION SCHEMEThe aggregate amount of liability on account of Employee Stock Option Plan (ESOP) as ascertained at year-end is being carriedforward as Deferred Employee Compensation Benefit under Miscellaneous Expenditure to be written off on a straight-line basis overthe related vesting period of individual options.

9. LEASESAs Lessee – Operating LeaseLease Rentals in respect of assets taken on ‘Operating Lease’ are charged to the Profit and Loss Account on an accrual basis on astraight-line basis over the lease term.

As Lessee – Finance LeaseAssets taken on Finance Lease are accounted for as assets of the Company. Lease rentals payable are apportioned between principal andinterest using the internal rate of return method and finance charge is recognised accordingly.

10. TAXATIONTax expense for the year, comprising current tax and deferred tax is included in determining the net profit/(loss) for the year.

Deferred tax assets are recognised for all deductible timing differences and carried forward to the extent there is reasonable certaintythat sufficient future taxable profit will be available against which such deferred tax assets can be realised.

Deferred tax assets to the extent they pertain to brought forward losses and unabsorbed depreciation, are recognised only to the extentthat there is virtual certainty of realisation, based on expected profitability in the future as estimated by the Company.

Deferred tax assets and liabilities are measured at the tax rates that have been enacted or substantively enacted by the Balance Sheet date.

11. BORROWING COSTBorrowing costs attributable to the acquisition or construction of a qualifying asset is capitalised as part of the cost of that asset. Otherborrowing costs are recognised as an expense in the period in which they are incurred.

12. EARNING PER SHAREThe earnings considered in ascertaining the Company’s EPS comprises the net profit after tax. The number of shares used incomputing basic EPS is the weighted average number of shares outstanding during the year. The diluted EPS is calculated on the samebasis as basic EPS, after adjusting for the effects of potential dilutive equity shares.

SCHEDULE : 18

NOTES TO ACCOUNTS

1. Corporate Guarantees outstanding as at March 31, 2003 amounting to Rs. 40,841,106 thousand (Previous Year Rs. 26,939,100thousand) have been given to banks and financial institutions on behalf of group companies.

2. Contingent Liabilities – Claims against the company not acknowledged as debts Rs. 12,746 thousand (Previous Year Rs. 11,460thousand) relating to income tax demands, pending appeal with the appropriate authorities.

3. The Company has given an undertaking to financial institutions for non-disposal of its shareholding in Bharti Cellular Limited andBharti Infotel Limited in consideration of financial assistance given to the subsidiaries by these financial institutions.

4. The Company has pledged shares of the face value of Rs. 1,020,000 thousand (Previous Year Rs. 1,020,000 thousand) held by it inBharti Infotel Limited (erstwhile Bharti Telenet Limited) with IDBI and IDFC as security for long term loan given by financialinstitutions to Bharti Infotel Limited.

5. The Company has given on operating lease Network Equipments to Cellular Project of Bharti Cellular Limited at Himachal Pradeshfor a value of Rs. 184,890 thousand (Previous Year Rs. 184,890 thousand) inclusive of software amounting to Rs. 30,853 thousand.


6. Keeping in view the available taxable profits to the Company in the future, on a conservative basis, the deferred tax asset has not beenrecognised in the accounts.

7. The Company is currently in litigation with DSS Enterprises Pvt. Ltd. (DSS), who owns 0.34 per cent equity interest in BhartiCellular Limited (4.67 per cent equity interest in erstwhile Bharti Mobinet Limited (BMNL) as at March 31, 2002), on variouscounts. This inter alia includes claim for specific performance in respect of agreements to sell the equity interest of DSS in erstwhileBMNL to the Company. The case filed by DSS to enforce the sale of equity shares before the Delhi High Court is pendingconsideration of the Honorable High Court.

8. Expenditure in Foreign Currency (Cash basis)

March 31, 2003 March 31, 2002(Rs. 000’s) (Rs. 000’s)

Travelling 4,663 3,549Others 6,670 25,652

Total 11,333 29,201

9. Remuneration to Auditors #

Audit Fee 2,700 150Other Fee – 2,593Reimbursement of Expenses 510 95

Total 3,210 2,838

# Excluding service tax

10. Payment to Directors

Salary * 7,200 3,600

Perquisites Nil Nil

Contribution to Provident Fund & Other Funds 864 432

Total 8,064 4,032

* Excludes expenditure upto March 31, 2003 on ESOP granted to Directors yet to be exercised by them aggregating to Rs. 52,973thousand (Previous year Rs. 27,707 thousand); in the opinion of the Company the approval of Central Government is required onlyat the time of exercise of the option. The cumulative amount of excess remuneration paid to the Whole-Time Director, pendingapproval of Central Government is Rs. 565 thousand (Previous Year Rs. 565 thousand) and is refundable by the Director.

Rs. 3,848 thousand (Previous year Rs. 1,737 thousand) has been paid to a Director of the Company by a subsidiary of the Company.

11. Earnings per Share (Basic and Diluted)

March 31, 2003 March 31, 2002

Opening number of shares 1,853,366,767 106,235,060

Closing number of shares 1,853,366,767 1,853,366,767

Weighted Average number of shares (Basic and Diluted) 1,853,366,767 1,706,750,388

Profit after Tax (Rs. 000’s) 2,217 1,275

EPS (in Rupees) (Basic and Diluted) 0.001 0.001

12. (a) List of Related Parties (as identified and Certified by the Company)

Key Management Personnel

Mr. Sunil Bharti Mittal

Mr. Rajan Bharti Mittal

Mr. Akhil Gupta




Other Related Parties

Name of the Related Party Relationship

Bharti Cellular Limited Subsidiary CompanyBharti Mobile Limited Subsidiary CompanyBharti Comtel Limited Subsidiary CompanyBharti Aquanet Limited Subsidiary CompanyBharti Infotel Limited Subsidiary CompanyBharti Enterprises Private Limited Associate CompanyBharti Telecom Limited Associate CompanyBharti Telecom Finance Limited Associate CompanyBharti Telesoft Limited Associate CompanyBharti Teletech Limited Associate CompanyBharti Infotrac Limited Associate CompanyBharti Systel Limited Associate CompanyBharti Healthcare Limited Associate CompanyBharti Global Limited Associate CompanyBharti Overseas Trading Company Associate Partnership FirmPastel Limited Associate CompanySingapore Telecommunications Limited Associate Company



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beha

lf of

rel

ated

par

ties

208,

803

258,

965

112,

344

6943

016

838

135

623

Expe

nses

incu

rred

by

grou

p co

mpa

nies

on

beha

lf of

us

(9,1

66)

(345

)(4

,370

)–

–(1

)–

––

–Sa

le o

f Ser

vice

s to

rel

ated

par

ties

––

173,

449

––

––

––

–Pa

ymen

t rec

eive

d ag

ains

t sal

e of

serv

ices

rend

ered

––

––

––

––

––

Purc

hase

of S

ervi

ces

from

rel

ated

par

ties

––

(777

)(7

)–

––

––

–Pa

ymen

t mad

e to

rela

ted

part

ies f

or p

urch

ase

ofse

rvic

e re

nder

ed b

y th

em–

––

––

407

–14

––

Oth

ers

53,3

4110

12,

162

––

––

––

–

Bal

ance

as

on M

arch

31,

200

317

,832

,136

827,

570

14,6

65,2

92(7

)–

––

––

335

Not

es:

1.D

urin

g th

e ye

ar, B

hart

i Mob

inet

Lim

ited

(B

MN

L), B

hart

i Mob

itel

Lim

ited

(B

MT

L) a

nd S

C C

ellu

lar H

oldi

ngs L

imit

ed (

SCH

L) h

ave

amal

gam

ated

into

Bha

rti C

ellu

lar L

imit

ed (

BC

L).

Acc

ordi

ngly

, ope

ning

bal

ance

reco

vera

ble

from

BM

NL,

BM

TL

and

SCH

L is

show

n as

reco

vera

ble

from

BC

L.2.

Dur

ing

the

year

, Bha

rti T

eles

onic

Lim

ited

(B

TSo

L) a

nd B

hart

i Bro

adba

nd N

etw

orks

Lim

ited

(B

BN

L) h

ave

amal

gam

ated

into

Bha

rti I

nfot

el L

imit

ed (

form

erly

Bha

rti T

elen

et L

imit

ed).

Acc

ordi

ngly

, ope

ning

bal

ance

reco

vera

ble

from

BT

SoL

and

BB

NL

is sh

own

as re

cove

rabl

e fr

om B

hart

i Inf

otel

Lim

ited

.3.

Ref

er N

ote

10 o

n Sc

hedu

le 1

8 fo

r M

anag

eria

l Rem

uner

atio

n pa

id t

o ke

y m

anag

eria

l per

sonn

el.

4.T

he m

ovem

ent o

f fun

ds is

as u

nder

:

Bha

rti

Bha

rti

Bha

rti

Bha

rti

Bha

rti

Bha

rti

Bha

rti

Bha

rti

Bha

rti

Bha

rti

Cel

lula

rM

obil

eIn

fote

lC

omte

lA

quan

etT

elec

omT

eles

oft

Tel

etec

hH

ealth

care

Ove

rsea

sL

imit

edL

imit

edL

imit

edL

imit

edL

imit

edL

imit

edL

imit

edL

imit

edL

imit

edT

radi

ngL

imit

ed

Fund

s tr

ansf

erre

d26

,859

,256

4,47

3,98

49,

025,

353

80–

(310

)–

––

–Fu

nds

Rec

eive

d(2

2,44

5,10

6)(9

,607

,458

)(5

,479

,330

)(6

9)(8

17)

(105

)–

––

–

Net

Fun

ds M

ovem

ent

4,41

4,15

0(5

,133

,474

)3,

546,

023

11(8

17)

(415

)–

––

–

SC

HE

DU

LES

AN

NE

XE

DT

O A

ND

FO

RM

ING

PA

RT

OF

AC

CO

UN

TS



12 (

b) T

rans

acti

ons

wit

h R

elat

ed P

arti

es i

n th

e or

dina

ry c

ours

e of

bus

ines

s fo

r th

e ye

ar e

nded

Mar

ch 3

1, 2

002

(Rs.

00

0’s)

Bha

rti

Bha

rti

Bha

rti

S.C

.B

hart

iB

hart

iB

hart

iB

hart

i BT

Bha

rti

Bha

rti

Nat

ure

of T

rans

acti

onC

ellu

lar

Mob

ile

Mob

inet

Cel

lula

rT

elen

etT

eles

onic

Aqu

anet

Inte

rnet

Mob

itel

Com

tel

Lim

ited

Lim

ited

Lim

ited

Hol

ding

sL

imit

edL

imit

edL

imit

edL

imit

edL

imit

edL

imit

ed(f

orm

erly

Lim

ited

(ref

er n

ote)

(for

mer

lySk

ycel

lSp

ice

Cel

lL

imit

ed)

Lim

ited

)

Rel

atio

nshi

p w

ith

the

Com

pany

Subs

idia

rySu

bsid

iary

Subs

idia

rySu

bsid

iary

Subs

idia

rySu

bsid

iary

Subs

idia

rySu

bsid

iary

Subs

idia

rySu

bsid

iary

Bal

ance

as

on A

pril

1, 2

001

115,

748

2,46

9,09

265

4,08

44,

103,

230

534,

661

160,

176

7,91

254

9,60

1–

–Pu

rcha

se o

f ass

ets/

Sof

twar

e an

d se

rvic

esfr

om R

elat

ed P

arti

es–

––

––

––

(4,1

48)

––

Sala

ry r

elat

ed e

xpen

ses

paid

by

Rel

ated

Par

ties

(830

)–

––

(281

)–

–(2

,610

)(9

46)

–O

ther

Exp

ense

s pai

d by

Rel

ated

Par

ties

(2,2

95)

(582

)(1

,460

)(1

3)(1

01,1

32)

(7,6

87)

–(1

4,28

9)(9

8)–

Secu

rity

Dep

osit

Pai

d by

Rel

ated

Par

ties

––

––

––

–(1

0)–

–A

dver

tise

men

t Ex

pens

es p

aid

by R

elat

ed P

arti

es(3

5,57

2)–

––

––

––

––

Adv

ance

aga

inst

Equ

ity

Shar

e C

apit

al–

––

––

––

––

–A

llotm

ent

of S

hare

Cap

ital

(Pa

id u

p V

alue

)–

––

––

––

––

–Fu

nds

tran

sfer

red/

(rec

eive

d) n

et1,

069,

182

3,14

9,22

8(7

48,8

08)

(1,6

65,9

80)

3,72

6,46

94,

125,

771

(70,

553)

842,

176

(47,

271)

(90)

Net

Inte

rest

free

dep

osit

s ref

unde

d by

Rel

ated

Par

ties

––

(104

)–

––

––

––

Inte

rest

Pay

able

on

Loan

s fro

m R

elat

ed P

arti

es–

––

––

––

(485

)–

–M

anag

emen

t Fee

s rec

eive

d12

,540

5,12

4–

––

––

––

–Sa

le/t

rans

fer

of a

sset

s to

Rel

ated

Par

ties

––

33,2

41–

––

––

––

Expe

nses

on

beha

lf of

Rel

ated

par

ties

103,

416

30,8

9746

,924

6120

,024

4,03

110

,429

3,42

270

190

Leas

e R

enta

l rec

eive

d–

––

–7,

329

––

––

–Sa

lari

es p

aid

to/o

n be

half

of R

elat

ed P

arti

es53

,785

2,52

11,

432

–4,

461

5,14

055

4,45

260

3–

Am

ount

pai

d to

rel

ated

par

ty–

––

––

––

––

–G

uara

ntee

Cha

rges

/fees

pai

d on

thei

r beh

alf

15,2

025

––

–10

,896

––

––

Ass

ets P

urch

ased

/Pai

d fo

r Ass

ets o

n th

eir b

ehal

f21

4,54

76,

929

3,66

6–

28,4

4211

,040

52,5

44–

––

Am

ount

pai

d to

rela

ted

part

ies o

ther

than

exp

ense

s29

,700

––

––

––

––

–Li

cenc

e fe

e/W

PC C

harg

es p

aid

6,30

1,20

439

,200

11,1

77–

161,

723

––

18,8

9633

,067

–R

epay

men

t of L

oan/

Inte

rest

on

beha

lf of

Rel

ated

Par

ties

––

––

241

––

–63

0,60

1–

Sale

of I

nves

tmen

t in

Bha

rti M

obin

et L

td.

1,99

7,44

2–

––

––

––

––

Sale

of I

nves

tmen

t in

SC C

ellu

lar H

oldi

ngs L

td.

234,

590

––

––

––

––

–Sa

le o

f Inv

estm

ent i

n B

hart

i Aqu

anet

Ltd

.–

––

––

0–

––

–Sa

le o

f Inv

estm

ent i

n B

hart

i Tel

eson

ic L

td.

––

––

750,

065

––

––

–B

alan

ce a

s on

Mar

ch 3

1, 2

002

10,1

08,6

595,

702,

414

152

2,43

7,29

85,

132,

002

4,30

9,36

738

71,

397,

005

616,

657

–

The

mov

emen

t of f

unds

is a

s und

er :

Fund

s re

ceiv

ed fr

om R

elat

ed P

arti

es(8

,948

,886

)(4

,551

,211

)(1

,425

,745

)(1

,669

,910

)(1

,749

,981

)(1

,768

,050

)(2

70,6

35)

(3,3

95)

(1,4

60,3

97)

(3,8

61)

Fund

s tr

ansf

erre

d to

Rel

ated

Par

ties

10,0

18,0

687,

700,

439

676,

937

3,93

05,

476,

450

5,89

3,82

120

0,08

284

5,57

11,

413,

126

3,77

1N

et F

unds

Mov

emen

t1,

069,

182

3,14

9,22

8(7

48,8

08)

(1,6

65,9

80)

3,72

6,46

94,

125,

771

(70,

553)

842,

176

(47,

271)

(90)

SC

HE

DU

LES

AN

NE

XE

DT

O A

ND

FO

RM

ING

PA

RT

OF

AC

CO

UN

TS


12 (

b) T

rans

acti

ons

wit

h R

elat

ed P

arti

es i

n th

e or

dina

ry c

ours

e of

bus

ines

s fo

r th

e ye

ar e

nded

Mar

ch 3

1, 2

002

(Rs.

00

0’s)

Bha

rti

Bha

rti

Bha

rti

Bha

rti

Bha

rti

Bha

rti

Bha

rti

Bha

rti B

TG

oaA

khil

Nat

ure

of T

rans

acti

onT

elec

omO

vers

eas

Tel

ecom

Tel

etec

hH

ealth

Car

eT

eles

oft

Info

trac

Syst

elT

elec

omm

u-G

upta

&L

imit

edT

radi

ngFi

nanc

eL

imit

edL

imit

edL

imit

edL

imit

edL

imit

edni

cati

ons

Ass

ocia

tes

Cor

pora

tion

Lim

ited

and

Syst

ems

Lim

ited

Dir

ecto

r’s

Ass

ocia

teso

leA

ssoc

iate

Par

tner

ship

Ass

ocia

teA

ssoc

iate

Ass

ocia

teA

ssoc

iate

Ass

ocia

teA

ssoc

iate

Ass

ocia

tepr

opri

eter

yR

elat

ions

hip

wit

h th

e C

ompa

nyC

ompa

nyFi

rmC

ompa

nyC

ompa

nyC

ompa

nyC

ompa

nyC

ompa

nyC

ompa

nyC

ompa

nyfi

rm

Bal

ance

as

on A

pril

1, 2

001

(474

,365

)–

––

–(2

,076

)–

–9

Purc

hase

of a

sset

s/ S

oftw

are

and

serv

ices

from

Rel

ated

Par

ties

––

(4,9

77)

(378

)–

(835

)–

(4)

–(2

1,81

0)Sa

lary

rel

ated

exp

ense

s pa

id b

y R

elat

ed P

arti

es–

––

(25)

––

––

––

Oth

er E

xpen

ses p

aid

by R

elat

ed P

arti

es(1

,501

)–

––

–(1

8)–

–(9

)–

Secu

rity

Dep

osit

Pai

d by

Rel

ated

Par

ties

––

––

––

––

–A

dver

tise

men

t Ex

pens

es p

aid

by R

elat

ed P

arti

es(3

09)

––

––

––

––

–A

dvan

ce a

gain

st E

quit

y Sh

are

Cap

ital

(3,5

35,7

25)

––

––

––

––

–A

llotm

ent

of S

hare

Cap

ital

(Pa

id u

p V

alue

)3,

817,

550

––

––

––

––

Fund

s tr

ansf

erre

d/ (

rece

ived

) ne

t17

3,68

7(2

72)

4,97

528

3–

2,93

0(1

6)4

––

Net

Inte

rest

free

dep

osit

s ref

unde

d by

Rel

ated

Par

ties

––

––

––

––

––

Inte

rest

Pay

able

on

Loan

s fro

m R

elat

ed P

arti

es–

––

––

––

––

–M

anag

emen

t Fee

s rec

eive

d–

––

––

––

––

–Sa

le/t

rans

fer

of a

sset

s to

Rel

ated

Par

ties

–27

2–

––

––

––

–Ex

pens

es o

n be

half

of R

elat

ed p

arti

es20

,399

–2

97–

–16

––

–Le

ase

Ren

tal r

ecei

ved

––

––

––

––

––

Sala

ries

pai

d to

/on

beha

lf of

Rel

ated

Par

ties

264

–0

9–

––

––

–A

mou

nt p

aid

to r

elat

ed p

arty

––

––

––

––

–21

,810

Gua

rant

ee C

harg

es/fe

es p

aid

on th

eir b

ehal

f–

––

––

––

––

–A

sset

s Pur

chas

ed /P

aid

for A

sset

s on

thei

r beh

alf

––

––

––

––

––

Am

ount

pai

d to

rela

ted

part

ies o

ther

than

exp

ense

s–

––

––

––

––

Lice

nce

fee/

WPC

Cha

rges

pai

d–

––

––

––

––

–R

epay

men

t of L

oan/

Inte

rest

on

beha

lf of

Rel

ated

Par

ties

––

––

––

––

––

Sale

of I

nves

tmen

t in

Bha

rti M

obin

et L

td.

––

––

––

––

––

Sale

of I

nves

tmen

t in

SC C

ellu

lar H

oldi

ngs L

td.

––

––

––

––

––

Sale

of I

nves

tmen

t in

Bha

rti A

quan

et L

td.

––

––

––

––

–Sa

le o

f Inv

estm

ent i

n B

hart

i Tel

eson

ic L

td.

––

––

––

––

––

Bal

ance

as

on M

arch

31,

200

2(0

)–

0(1

4)–

––

––

–

The

mov

emen

t of f

unds

is a

s und

er :

Fund

s re

ceiv

ed fr

om R

elat

ed P

arti

es(4

60,8

17)

(272

)–

(100

)(1

36)

–(1

6)–

––

Fund

s tr

ansf

erre

d to

Rel

ated

Par

ties

634,

504

–4,

975

383

136

2,93

0–

4–

Net

Fun

ds M

ovem

ent

173,

687

(272

)4,

975

283

–2,

930

(16)

4–

–

SC

HE

DU

LES

AN

NE

XE

DT

O A

ND

FO

RM

ING

PA

RT

OF

AC

CO

UN

TS



13. The details of investments as per Schedule VI are provided as below:

(A) Details of Investments held as at March 31, 2003 (Rs. 000’s)

Particulars Rate of As at As at As at As at As at As atInterest March 31, March 31, March 31, March 31, March 31, March 31,

2003 2003 2003 2002 2002 2002Number(s) Face Value Cost Number(s) Face Value Cost

Short Term other thanTrade Quoted Investment10.55% Bharti Mobile Debentures 10.55% 5 50,000 51,060 5 50,000 51,060Alliance Cash Manager 221,922 2,219 3,264IL & FS Bond Fund 12,878,996 128,790 199,977Templeton Short Term 26,253 26,253 28,424Templeton Income Builder Account 9,157,341 91,573 100,000

TOTAL 298,835 382,725 50,000 51,060

(B) Details of Investments purchased and redeemed/sold during the year (Rs. 000’s)

Particulars of Investment Number Rate of Face Value Balance as Purchased ProceedsInterest on April 1, during the from Sale/

2002 year Redemption

Bonds (Quoted)12.50% GSEC 2004 500,000 12.50% 50,000 55,710 – 54,70011.30% GSEC 2011 500,000 11.30% 50,000 54,790 – 61,8009.85% GOI 2015 1,000,000 9.85% 100,000 – 120,330 120,2009.85% GOI 2015 600,000 9.85% 60,000 – 71,880 72,12010.40% NPC 480 10.40% 48,000 – 52,465 50,77010.50% KRCL 100 10.50% 10,000 – 10,388 10,0027.99% HUDCO 145 7.99% 29,485 – 15,688 15,2177.99% HUDCO 150 7.99% 15,000 – 16,229 15,004Mutual Funds (Quoted)Alliance Govt. Security Fund 434,923 4,349 8,181 – 8,650Alliance Govt. Security Fund 5,095,884 50,959 95,803 – 101,350Alliance Govt. Security Fund 3,362,610 33,626 – 50,000 50,457Alliance Govt. Security Fund 25,124 251 473 – 501Alliance Govt. Security Fund 4,319,187 43,192 81,201 – 86,103Alliance Income Fund 3,156,234 31,562 59,369 – 60,000Alliance Income Fund 2,624,672 26,247 49,370 – 50,000Alliance Income Fund 2,623,295 26,233 49,344 – 50,000Alliance Income Fund 1,574,803 15,748 29,622 – 30,000Alliance Income Fund 2,097,535 20,975 39,455 – 40,000Alliance Income Fund 2,619,172 26,192 49,267 – 50,000Alliance Income Fund 2,354,788 23,548 44,294 – 45,000Alliance Income Fund 7,739,938 77,399 145,511 – 150,000Alliance Income Fund 4,121,587 41,216 77,486 – 80,000Alliance Income Fund Switch 6,578,947 65,789 123,750 – 125,000Alliance Income Fund Switch 7,808,433 78,084 146,877 – 150,000Alliance Liquid Fund 35,848 35,848 – 49,990 50,000Alliance Liquid Fund 88,699 88,699 – 124,953 125,000Alliance Liquid Fund 106,154 106,154 – 150,121 150,206Alliance Liquid Fund Switch 105,772 105,772 – 150,000 150,054Alliance Liquid Fund Switch 71,682 71,682 – 99,961 100,000Alliance Monthly Income – Growth 13,245,033 132,450 194,834 – 200,000Alliance Monthly Income – Growth 1,597,553 15,976 23,500 – 24,251Alliance Cash Manager 3,381,829 33,818 – 49,736 50,000Alliance Short Term 49,829 49,829 – 49,829 50,000Alliance Short Term 50,171 50,171 – 50,171 50,354Alliance Short Term 48,841 48,841 – 49,884 50,000



Alliance Short Term 77,908 77,908 – 79,572 80,000Alliance Short Term 29,197 29,197 – 29,820 30,000Alliance Short Term 40,065 40,065 – 40,921 41,186Alliance Short Term 11,550,901 115,509 – 119,500 120,000Alliance Short Term 7,690,681 76,907 – 79,564 80,000Alliance Short Term 90,495 905 – 936 942Alliance Short Term 5,797,774 57,978 – 60,000 60,335Alliance Short Term 16,714,422 167,144 – 174,629 175,000Alliance Short Term 2,377,511 23,775 – 24,840 25,000Alliance Short Term 2,853,013 28,530 – 29,942 30,000Alliance Short Term 4,753,846 47,538 – 49,890 50,000Alliance Short Term 50,853 509 – 531 535Alliance Short Term 1,921,761 19,218 – 20,168 20,216Alliance Short Term 9,447,063 94,471 – 99,803 100,000Alliance Short Term 13,225,889 132,259 – 139,820 140,000Alliance Short Term 18,690 187 – 197 198Alliance Short Term 10,422,153 104,222 – 110,180 110,589Birla Cash Plus 6,046,713 60,467 61,804 – 62,263Birla Cash Plus 1,308,010 13,080 – 19,984 20,000Birla Cash Plus 1,963,963 19,640 – 30,012 30,065Birla Mutual Fund Liquid 1,958,199 19,582 – 29,988 30,000Birla Mutual Fund Liquid 3,261,026 32,610 – 49,940 50,000Birla Mutual Fund Liquid 3,257,244 32,572 – 49,882 50,000Birla Mutual Fund Liquid 635,603 6,356 – 9,740 9,759Birla Mutual Fund Liquid 1,318,362 13,184 – 20,190 20,241Birla Mutual Fund Liquid 669,600 6,696 – 10,260 10,295Birla Mutual Fund Liquid 3,259,134 32,591 – 50,000 50,109Birla Mutual Fund Liquid 6,496,206 64,962 – 100,000 100,157Birla Mutual Fund Income 2,073,932 20,739 – 50,000 52,530Birla Mutual Fund – Short Term 4,677,269 46,773 – 50,000 50,151Birla Mutual Fund – Short Term 14,624,827 146,248 – 160,000 160,180Chola Mutual Fund 11,753,160 117,532 – 200,000 200,803Chola Mutual Fund Stp 4,117,114 41,171 – 70,000 70,341DSP Merrill Lynch Bond Fund 5,213,764 52,138 97,758 – 100,000DSP Merrill Lynch Bond Fund 10,504,202 105,042 196,954 – 200,000DSP Merrill Lynch Bond Fund Switch 5,615,367 56,154 105,288 – 107,703DSP Merrill Lynch Liquid Fund 7,646,193 7,646,193 – 107,703 107,973DSP Merrill Lynch Liquid Fund 14,237,916 142,379 – 200,000 200,236DSP ML Income Fund 5,194,805 51,948 – 100,000 102,234DSP ML Mutual Fund Short Term 9,750,200 97,502 – 100,000 100,094First India Liquid Fund 4,848,109 48,481 – 50,000 50,159First India Liquid Short Term 4,879,001 48,790 – 50,000 50,045Grindlays – GSSIF – ST 6,287,613 62,876 69,434 – 70,000Grindlays – GSSIF – ST 4,491,152 44,912 49,699 – 50,000Grindlays – GSSIF – ST 3,746,508 37,465 41,456 – 41,729Grindlays – GSSIF – ST 4,468,674 44,687 – 50,000 50,094Grindlays – GSSIF – ST 5,220,569 52,206 – 59,640 60,000Grindlays – GSSIF – ST 2,608,015 26,080 – 29,794 30,000Grindlays – GSSIF – ST 5,171,210 51,712 – 59,076 60,000Grindlays – GSSIF – ST 130,458 1,305 – 1,490 1,514Grindlays – GSSIF – ST 5,188,924 51,889 – 60,003 60,203Grindlays – GSSIF – ST 2,964,619 29,646 – 34,916 35,000Grindlays – GSSIF– ST 1,280,692 12,807 – 15,084 15,128Grindlays – GSSIF – ST 16,875,074 168,751 – 199,801 200,000Grindlays – GSSIF – ST 4,239,791 42,398 – 50,199 50,354HDFC Short Term 7,174,493 71,745 – 74,555 75,000






HDFC Short Term 2,448,571 24,486 – 25,445 25,605HDFC Short Term 14,304,924 143,049 – 150,000 150,479HDFC Short Term 23,268,925 232,689 – 249,999 250,862HDFC Short Term 93 1 – 1 1HDFC Short Term 4,157,762 41,578 – 50,000 50,014HDFC Income Fund 5,406,240 54,062 68,703 – 70,000HDFC Income Fund 4,240,882 42,409 53,893 – 55,000HDFC Income Fund 9,174,312 91,743 116,587 – 120,000HDFC Income fund 9,293,680 92,937 – 100,000 100,463HDFC Mutual Fund – Income 4,785,742 47,857 60,817 – 64,366HDFC Mutual Fund – Income 3,734,744 37,347 – 50,000 52,605I L & FS Mutual Fund – Liquid Fund 5,910,748 59,107 59,587 – 60,000I L & FS Mutual Fund – Liquid Fund 2,204,325 22,043 22,222 – 22,405I L & FS Mutual Fund – Liquid Fund 4,743,203 47,432 – 49,973 50,000I L & FS Mutual Fund – Liquid Fund 4,748,245 47,482 – 50,027 50,062I L & FS Mutual Fund – Liquid Fund 4,732,966 47,330 – 49,945 50,000I L & FS Mutual Fund – Liquid Fund 2,839,242 28,392 – 29,961 30,000I L & FS Mutual Fund – Liquid Fund 1,904,219 19,042 – 20,094 20,139I L & FS Mutual Fund – lncome 4,169,502 41,695 – 60,203 62,500I L & FS Mutual Fund – lncome 2,756,241 27,562 – 39,797 41,354I L & FS Mutual Fund – Short Term 1,956,182 19,562 – 19,955 20,000I L & FS Mutual Fund – Short Term 2,928,544 29,285 – 29,874 30,000I L & FS Mutual Fund – Short Term 1,464,272 14,643 – 14,991 15,000I L & FS Mutual Fund – Short Term 13,203,734 132,037 – 135,180 135,338I L & FS Mutual Fund – Short Term 9,564,802 95,648 – 99,570 100,000I L & FS Mutual Fund – Short Term 2,866,699 28,667 – 29,842 30,000I L & FS Mutual Fund – Short Term 4,108,149 41,081 – 42,766 43,000I L & FS Mutual Fund – Short Term 2,865,603 28,656 – 29,831 30,000I L & FS Mutual Fund – Short Term 7,640,879 76,409 – 79,542 80,000I L & FS Mutual Fund – Short Term 2,863,142 28,631 – 29,805 30,000I L & FS Mutual Fund – Short Term 2,855,783 28,558 – 29,729 30,000I L & FS Mutual Fund – Short Term 5,659,536 56,595 – 58,916 59,671I L & FS Mutual Fund – Short Term 9,254,289 92,543 – 100,000 100,421IDBI Mutual Fund – Short Term 4,836,058 48,361 – 50,000 50,181IL & FS Mutual Fund – Bond Fund 3,942,440 39,424 – 58,260 60,000IL & FS Mutual Fund – Bond Fund 3,874,542 38,745 – 57,333 60,000IL & FS Mutual Fund – Bond Fund 5,811,813 58,118 – 85,885 90,000IL & FS Mutual Fund – Bond Fund 5,150,425 51,504 – 76,213 80,000IL & FS Mutual Fund – Bond Fund 1,111,949 11,119 – 16,454 17,795IL & FS Mutual Fund – Bond Fund 396,176 3,962 – 5,855 6,340IL & FS Mutual Fund – Bond Fund 9,739,485 97,395 – 150,023 155,865J M Mutual Fund – Income 4,339,091 43,391 – 96,588 100,000J M Mutual Fund – Income 1,950,217 19,502 – 43,412 44,992J M Mutual Fund – Income 2,163,313 21,633 – 49,194 50,000J M Mutual Fund – Income 2,164,174 21,642 – 49,213 50,000J M Mutual Fund – Income 2,163,706 21,637 – 49,268 50,000J M Mutual Fund – Income 2,164,034 21,640 – 49,275 50,000J M Mutual Fund – Income 70,050 701 – 1,593 1,638J M Mutual Fund – Income 2,259,876 22,599 – 51,457 52,835J M Mutual Fund – Income 22,372,912 223,729 – 537,250 550,000J M Mutual Fund – Income 22,390,581 223,906 – 537,674 550,000J M Mutual Fund – Income 4,053,934 40,539 – 97,349 100,000J M Mutual Fund – Income 11,565,526 115,655 – 277,728 280,279J M Mutual Fund Short Term 1,918,833 19,188 – 19,907 20,000J M Mutual Fund Short Term 15,190,755 151,908 – 157,593 158,430J M Mutual Fund Short Term 6,679,134 66,791 – 69,839 70,000





J M Mutual Fund Short Term 2,862,486 28,625 – 29,963 30,000J M Mutual Fund Short Term 15,394 154 – 161 162J M Mutual Fund Short Term 16,244,273 162,443 – 170,037 170,726Jardine Fleming India 5,927,682 59,277 99,407 – 100,000Jardine Fleming India 2,949,853 29,499 49,469 – 50,000Jardine Fleming India 2,946,376 29,464 49,411 – 50,000Jardine Fleming India 4,705,882 47,059 78,918 – 80,000Jardine Fleming India 5,871,991 58,720 98,473 – 100,000Jardine Fleming India 2,925,688 29,257 49,064 – 50,000Jardine Fleming India 3,462,204 34,622 58,061 – 60,000Jardine Fleming India 3,460,208 34,602 58,028 – 60,000Jardine Fleming India 3,528,292 35,283 59,169 – 61,251Kotak Mahindra Mutual Liquid Fund 2,637,919 26,379 – 29,986 30,000Kotak Mahindra Mutual Liquid Fund 6,149,143 61,491 – 69,900 70,000Kotak Mahindra Mutual Liquid Fund 6,161,383 61,614 – 70,114 70,203Kotak Mahindra Mutual Liquid Fund 13,129,103 131,291 – 150,000 150,240Kotak Mahindra Mutual Liquid Fund 13,012,588 130,126 – 150,000 150,077Kotak Mahindra Mutual Liquid Fund 3,900,426 39,004 – 45,000 45,011Kotak Mahindra Mutual Liquid Fund 2,166,021 21,660 – 25,000 25,024Kotak Mahindra Mutual Liquid Fund 1,731,767 17,318 – 20,000 20,007Kotak Mahindra Mutual Short Term 10,000,000 100,000 – 100,000 100,290Kotak Mahindra Mutual Short Term 5,814,573 58,146 – 60,000 60,177Kotak Mahindra Mutual Short Term 9,475,619 94,756 – 100,000 100,107Kotak Mahindra Mutual Fund 2,285,828 22,858 30,667 – 32,123Kotak Mahindra Mutual Fund 2,132,348 21,323 29,687 – 30,000Kotak Mahindra Mutual Fund 2,836,678 28,367 39,492 – 40,000Kotak Mahindra Mutual Fund 4,243,882 42,439 59,083 – 60,000Kotak Mahindra Mutual Fund 6,982,753 69,828 97,214 – 100,000Kotak Mahindra Mutual Fund 2,707,518 27,075 37,694 – 38,823Kotak Mahindra Mutual Fund Switch 10,567,101 105,671 147,115 – 150,000Pioneer ITI Income 1,102,045 11,020 20,804 – 22,019Pioneer ITI Income 7,522,568 75,226 – 150,000 150,301Pioneer ITI Income 12,491,381 124,914 – 124,914 125,000Pioneer ITI Income Fund 14,158,364 141,584 267,168 – 270,000Pioneer ITI Income Fund 2,764,613 27,646 48,961 – 52,500Pioneer ITI Income Fund 2,881,914 28,819 51,039 – 54,785Pioneer ITI Income Fund 1,706,037 17,060 32,193 – 32,500Pioneer ITI Income Fund 3,146,303 31,463 59,371 – 60,000Pioneer ITI Income Fund 2,098,636 20,986 39,601 – 40,000Pioneer ITI Income Fund 2,097,535 20,975 39,580 – 40,000Pioneer ITI Income Fund 2,620,545 26,205 49,450 – 50,000Pioneer ITI Income Fund 392,876 3,929 7,414 – 7,500Pioneer ITI Income Fund 1,702,462 17,025 32,142 – 32,500Pioneer ITI Income Fund 1,831,502 18,315 34,579 – 35,000Pioneer ITI Income Fund 3,655,352 36,554 69,013 – 70,000Pioneer ITI Income Fund 2,578,649 25,786 48,685 – 50,000Pioneer ITI Liquid Fund 55,092 55,092 – 80,000 80,017Pioneer ITI Liquid Fund 34,359 34,359 – 50,000 50,027Pioneer ITI Liquid Fund 5,022,602 50,226 – 100,000 100,352Pioneer ITI – Liquid Fund 7,102 7,102 – 10,000 10,013Pioneer ITI – Liquid Fund 35,409 35,409 – 49,989 50,000Pioneer ITI – Liquid Fund 28,321 28,321 – 39,983 40,000Pioneer ITI – Liquid Fund 25,484 25,484 – 35,977 36,000Pioneer ITI – Liquid Fund 42,446 42,446 – 59,924 60,000Pioneer ITI – Liquid Fund 35,329 35,329 – 49,876 50,000Pioneer ITI – Liquid Fund 17,178 17,178 – 24,252 24,317






Pioneer ITI – Liquid Fund 14,146 14,146 – 20,000 20,024Pioneer ITI – Liquid Fund 70,418 70,418 – 99,985 100,000Pioneer ITI – Liquid Fund 10,559 10,559 – 14,993 15,000Pioneer ITI – Liquid Fund 8,795 8,795 – 12,487 12,500Pioneer ITI – Liquid Fund 24,625 24,625 – 34,964 35,000Pioneer ITI – Liquid Fund 5,276 5,276 – 7,491 7,500Pioneer ITI – Liquid Fund 21,103 21,103 – 29,968 30,000Pioneer ITI – Liquid Fund 24,712 24,712 – 34,981 35,000Pioneer ITI – Liquid Fund 7,014 7,014 – 9,977 10,000Pioneer ITI – Liquid Fund 7,014 7,014 – 9,992 10,000Pioneer ITI – Liquid Fund 15,812 15,812 – 22,531 22,544Pioneer ITI – Liquid Fund 8,763 8,763 – 12,500 12,513Pioneer ITI – Liquid Fund 27,993 27,993 – 40,000 40,015Pioneer ITI – Liquid Fund 34,940 34,940 – 50,000 50,019Pioneer ITI – Liquid Fund 34,726 34,726 – 49,942 50,000Pioneer ITI – Liquid Fund 24,297 24,297 – 34,943 35,000Pioneer ITI – Liquid Fund 12,149 12,149 – 17,485 17,500Pioneer ITI – Liquid Fund 15,723 15,723 – 22,630 22,653Pioneer ITI – Liquid Fund 17,340 17,340 – 24,973 25,000Pioneer ITI – Liquid Fund 10,400 10,400 – 14,978 15,000Pioneer ITI – Liquid Fund 17,330 17,330 – 24,958 25,000Pioneer ITI – Liquid Fund 17,308 17,308 – 24,927 25,000Pioneer ITI – Liquid Fund 41,774 41,774 – 60,163 60,381Pioneer ITI – Liquid Fund 27,702 27,702 – 40,000 40,042Pioneer ITI Short Term 1,712 1,712 – 1,783 1,812Pioneer ITI Short Term 42,956 42,956 – 45,000 45,466Pioneer ITI Short Term 33,047 33,047 – 34,910 35,000Pioneer ITI Short Term 61,615 61,615 – 65,089 65,288Pioneer ITI Short Term 21,706 21,706 – 22,977 23,000Pioneer ITI Short Term 11,358 11,358 – 12,023 12,035Pioneer Short Term Fund 68,645 68,645 – 69,918 70,000Pioneer Short Term Fund 48,904 48,904 – 49,811 50,000Pioneer Short Term Fund 4,882 4,882 – 4,972 5,000Pioneer Short Term Fund 34,173 34,173 – 34,818 35,000Pioneer Short Term Fund 4,876 4,876 – 4,970 5,000Pioneer Short Term Fund 19,502 19,502 – 19,891 20,000Pioneer Short Term Fund 39,005 39,005 – 39,914 40,000Pioneer Short Term Fund 78,009 78,009 – 79,878 80,000Pioneer Short Term Fund 39,000 39,000 – 39,934 40,000Pioneer Short Term Fund 73,037 73,037 – 74,787 75,000Pioneer Short Term Fund 43,809 43,809 – 44,851 45,000Pioneer Short Term Fund 10,972 10,972 – 11,235 11,281Pioneer Short Term Fund 67,630 67,630 – 69,896 70,000Pioneer Short Term Fund 77,508 77,508 – 80,104 80,227Pioneer Short Term Fund 53,070 53,070 – 54,960 55,000Pioneer Short Term Fund 62,804 62,804 – 65,040 65,123Pioneer Short Term Fund 95,703 95,703 – 99,644 100,000Pioneer Short Term Fund 28,620 28,620 – 29,799 30,000Pioneer Short Term Fund 66,758 66,758 – 69,507 70,000Pioneer Short Term Fund 47,677 47,677 – 49,640 50,000Pioneer Short Term Fund 47,665 47,665 – 49,628 50,000Prudential ICICI Dynamic 18,546,510 185,465 – 200,000 203,516Prudential ICICI Flexi Income Fund 5,000,000 50,000 – 50,000 50,205Prudential ICICI Income Fund 7,086,461 70,865 – 120,000 126,160Prudential ICICI Income Fund 8,847,313 88,473 – 150,000 157,509





Prudential ICICI Liquid Fund 2,148,879 21,489 – 30,007 30,035Prudential ICICI Liquid Fund 1,431,731 14,317 – 19,993 20,000Prudential ICICI Liquid Fund 3,566,461 35,665 – 49,869 50,000Prudential ICICI Liquid Fund 5,348,623 53,486 – 74,789 75,000Prudential ICICI Liquid Fund 5,343,136 53,431 – 74,712 75,000Prudential ICICI Liquid Fund 3,622,947 36,229 – 50,630 50,885Prudential ICICI Liquid Fund 10,315,439 103,154 – 145,000 145,229Prudential ICICI Liquid Fund 3,917,174 39,172 40,464 – 41,232Prudential ICICI Liquid Fund 18,044,131 180,441 – 256,669 256,764Prudential ICICI Income Plan 15,508,685 155,087 250,000 – 256,668Prudential ICICI Short Term Plan 3,281,070 32,811 33,801 – 34,537Standard Chartered Dynamic 4,643,517 46,435 – 50,354 51,439Standard Chartered Dynamic 9,045,681 90,457 – 100,000 100,607Standard Chartered Flxi 6,189,252 61,893 – 67,638 68,561Standard Chartered Flxi 7,536,579 75,366 – 82,362 83,823Sundaram Mutual Fund Short Term 9,746,874 97,469 – 99,806 100,000Sundaram Mutual Fund Short Term 4,873,437 48,734 – 49,952 50,000Sundaram Mutual Fund Short Term 18,942 189 – 194 195Sundaram Mutual Fund Short Term 9,760,995 97,610 – 100,048 100,468Tata TD Mutual Fund Short Term 5,338,355 53,384 – 54,775 55,000Tata TD Mutual Fund Short Term 4,363,086 43,631 – 44,768 45,000Tata TD Mutual Fund Short Term 9,790,597 97,906 – 100,457 101,011Templeton India Mutual Short Term 32,760 32,760 – 34,988 35,000Templeton India Mutual Short Term 60,758 60,758 – 64,891 65,000Templeton India Mutual Short Term 65,654 65,654 – 70,120 70,259Templeton India Mutual Short Term 41,923 41,923 – 44,987 45,000Templeton India Mutual Short Term 97,862 97,862 – 105,013 105,147Templeton India Mutual Short Term 92,389 92,389 – 99,817 100,000Templeton India Mutual Short Term 138,584 138,584 – 149,836 150,000Templeton India Mutual Short Term 83,051 83,051 – 89,795 90,000Templeton India Mutual Short Term 9,226 9,226 – 9,976 10,000Templeton India Mutual Short Term 73,812 73,812 – 79,828 80,000Templeton India Mutual Short Term 27,661 27,661 – 29,916 30,000Templeton India Mutual Short Term 36,867 36,867 – 39,872 40,000Templeton India Mutual Short Term 30,369 30,369 – 32,845 33,000Templeton India Mutual Short Term 9,181 9,181 – 9,930 10,000Templeton Inida Mutual Short Term 45,863 45,863 – 49,761 50,000UTI Mutual Fund – Income 3,003,761 30,038 – 50,000 52,091UTI Mutual Fund – Income 10,000,000 100,000 – 100,000 104,258Zurich India Mutual Liquid Fund 2,962,115 29,621 29,688 – 30,000Zurich India Mutual Liquid Fund 197,474 1,975 1,985 – 2,000Zurich India Mutual Liquid Fund 4,935,785 49,358 49,605 – 50,000Zurich India Mutual Liquid Fund 7,052,821 70,528 70,870 – 71,616Zurich India Mutual Liquid Fund 4,248,233 42,482 – 49,952 50,000Zurich India Mutual Liquid Fund 3,397,172 33,972 – 39,945 40,000Zurich India Mutual Liquid Fund 2,560,152 25,602 – 30,096 30,180Zurich India Mutual Liquid Fund 8,460,308 84,603 – 100,000 100,155Zurich India Mutual Short Term 9,228,838 92,288 – 100,000 100,159Alliance Short Term – – – 49,802 50,000Pioneer ITI Income Fund – – – 147,789 148,223

4,650,404 15,813,109 20,695,654

14. Previous year figures have been regrouped or reclassified, wherever necessary, to conform to current year classification.






BALANCE SHEET ABSTRACTAND COMPANY’S GENERAL BUSINESS PROFILE

I. Registration Details

Registration No. State Code

Balance Sheet Date

II. Capital raised during the year (Amount in thousands)Public Issue Rights Issue

Bonus Issue Private Placement

III. Position of mobilisation and deployment of funds (Amount in thousands)Total Liabilities Total Assets

Sources of funds Paid up Capital Reserves & Surplus

Secured Loans Unsecured Loans

Application of funds Net Fixed Assets Investments

Net Current Assets Miscellaneous Expenditure

IV. Performance of the Company (Amount in thousands)Turnover Total Expenditure

Profit/(Loss) Before Tax Profit/(Loss) After Tax

Earning per Share in Rs. Dividend Rate

V. Generic names of three principal products/services of the Company (as per monetary terms)

Item Code No. (ITC Code)

Product Description


SUNIL BHARTI MITTAL AKHIL GUPTAChairman & Managing Director Joint Managing Director



7 0 6 0 9

3 1 - 0 3 - 0 3Date Month Year

5 5

N I L N I L

N I L N I L

4 8 2 5 6 7 8 0 4 8 2 5 6 7 8 0

1 8 5 3 3 6 6 8 2 9 7 1 1 2 2 7

1 1 8 8 5 –

1 6 8 3 0 2 1 4 6 7 7 9 4 4

3 3 3 6 3 1 0 4 4 7 4 3 0

7 2 9 1 0 7 7 2 6 3 6 5

2 7 4 2 2 2 1 7

0 . 0 0 1 N I L

N O T A P P L I C A B L E

N O T A P P L I C A B L E


STATEMENT PURSUANT TO SECTION 212 OF THE COMPANIES ACT 1956,RELATING TO SUBSIDIARY COMPANIES

1. Name of Subsidiary Bharti Cellular Bharti Infotel Limited Limited

2. Financial Year of the Subsidiary ended on: 31-03-2003 31-03-2003

3. Shares of the Subsidiary held by the Company on the above dates:(a) Nos. *105,745,500 *277,200,000(b) Face Value Rs.10/- Rs.10/-(c) Extent of Holding 99.66% 100%

4. Net aggregate amount of profit/losses of the Subsidiary for the abovefinancial year so far as they concern members of the Company (Rs. ’000)(a) Dealt with the accounts of the Company for the year ended 31-03-2003 N I L N I L(b) Not dealt with in the Accounts of the Company for the year

ended 31-03-2003 (2,073,269) (134,883)

5. Net aggregate amount of profits/(losses) for the previous financial yearsof the Subsidiary, since it became a Subsidiary so far as they concern themembers of the Company (Rs. ’000)(a) Dealt with in the Accounts of the Company for the year ended 31-03-2002 N I L N I L(b) Not dealt with in the Accounts of the Company for the year ended 31-03-2002 986,283 (1,081,181)

* Position of Shares held subsequent to the mergers under different schemes of amalgamation.


SUNIL BHARTI MITTAL AKHIL GUPTAChairman & Managing Director Joint Managing Director

Place : New Delhi NARENDER GUPTA SANJEEV KUMARDate: September 16, 2003 Company Secretary Group Financial Controller

2 annual report 2002-2003 - Amazon S3

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Transcript of 2 annual report 2002-2003 - Amazon S3