CONSOLIDATED FINANCIAL STATEMENTS - BHARTI AIRTEL LIMITED[AS PER INTERNATIONAL FINANCIAL REPORTING STANDARD (IFRS)]

Schedule INDEX

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5.00

Consolidated Balance Sheet

Consolidated Statements of Operations

Consolidated Statements of Cash Flows

Segmental Information 2010-11

Segmental Information 2009-10

As of As of As of

Notes March 31, 2011 March 31, 2010 April 01, 2009

Assets

Non-current assets Property, plant and equipment 13 Rs. 651,426 Rs. 482,629 Rs. 436,482 Intangible assets 14 637,317 59,890 49,798 Investment in associates 16 - 57 14 Derivative financial assets 17 1,998 3,337 6,571 Other financial assets 18 7,930 7,368 4,674 Other non - financial assets 19 9,255 7,485 3,656 Deferred tax asset 12 45,061 12,489 3,987

1,352,987 573,255 505,182

Current assets Inventories 20 2,139 484 962 Trade and other receivables 21 54,929 35,711 41,320 Derivative financial assets 17 2,682 144 4,563 Prepayments and other assets 22 30,504 20,835 27,172 Income tax recoverable 5,280 2,826 3,182 Short term investments 23 6,224 52,264 36,638 Other financial assets 24 744 98 84 Cash and cash equivalents 25 9,575 25,323 14,432

112,077 137,685 128,353

Total assets Rs. 1,465,064 Rs. 710,940 Rs. 633,535

Equity and liabilities Equity Issued capital Rs. 18,988 Rs. 18,988 Rs. 18,982

Treasury shares (268) (81) (107) Share premium 56,499 56,499 56,319 Retained earnings / (deficit) 357,446 301,342 215,978 Foreign currency translation reserve 14,018 824 1,796 Other components of equity 31 40,985 44,368 17,331 Equity attributable to equity holders of parent 487,668 421,940 310,299 Non-controlling interest 28,563 25,285 13,389 Total equity 516,231 447,225 323,688

Non-current liabilities Borrowings 26 532,338 81,474 53,400 Deferred revenue 8,700 11,222 11,478 Provisions 27 6,085 3,779 5,370 Derivative financial liabilities 17 151 289 227 Deferred tax liability 12 12,487 3,737 3,725 Other financial liabilities 28 13,856 10,860 7,211 Other non - financial liabilities 29 5,371 3,912 2,462

578,988 115,273 83,873

Current liabilities Borrowings 26 84,370 20,424 79,621 Deferred revenue 30,599 19,027 22,923 Provisions 27 1,180 874 305 Other non - financial liabilities 29 10,053 5,399 5,672 Derivative financial liabilities 17 317 415 164 Income tax liabilities 3,642 - - Trade & other payables 32 239,684 102,303 117,289

369,845 148,442 225,974

Total liabilities 948,833 263,715 309,847 Total equity and liabilities Rs. 1,465,064 Rs. 710,940 Rs. 633,535

Notes

Revenue Rs. 594,672

Operating expenses 7 (395,008)

199,664

Depreciation & amortisation 9 (102,066)

Profit / (Loss) from operating activities 97,598

Share of results of associates (57) Other income 8 1,346 Non operating expense 10 (292)

98,595

Finance income 11 3,536 Finance costs 11 (25,349)

Profit / (Loss) before tax 76,782

Income tax expense 12 (17,790)

Net profit / (loss) for the year Rs. 58,992

Other comprehensive income / (loss) Exchange differences on translation of foreign operations 12,681

12,681

Rs. 71,673

Profit/(loss) attributable to : Equity holders of the parent 60,467 Non controlling interests (1,475) Net Profit / (Loss) Rs. 58,992

Total comprehensive income / (loss) attributable to : Equity holders of the parent 73,661 Non controlling interests (1,988) Total Comprehensive Income / (Loss) Rs. 71,673

Earnings Per Share 38Basic, profit attributable to equity holders of parent Rs. 15.93 Diluted, profit attributable to equity holders of parent Rs. 15.93

Year ended March 31, 2011

tax

Other comprehensive income / (loss) for the year, net of tax Total comprehensive income / (loss) for the year, net of tax

Rs. 418,472

(250,839)

167,633

(62,832)

104,801

(48) 697 (181)

105,269

17,381 (17,559)

105,091

(13,453)

Rs. 91,638

(1,028)

(1,028)

Rs. 90,610

89,768 1,870 Rs. 91,638

88,796 1,814 Rs. 90,610

Rs. 23.67 Rs. 23.66

Year ended March 31, 2010

Cash flows from operating activitiesProfit / (loss) before tax 76,782 105,091 Adjustments for - Depreciation and amortization 102,066 62,832 Finance income (3,536) (17,381) Finance cost 25,349 17,559 Share of results of associates (post tax) 57 48 Amortization of stock based compensation 1,561 1,494 Other non-cash items 480 429 Operating cash flow before working capital changes 202,759 170,072

Trade & other receivables and prepayments (9,207) 11,666 Inventories (211) 479 Trade and other payables 16,987 648 Provisions (160) 680 Other financial and non financial liabilities 4,282 4,816 Other financial and non financial assets (2,114) (6,062)Cash generated from operations 212,336 182,299 Interest received 565 2,038 Income tax (paid)/refund (24,388) (21,961)

Net cash inflow / (outflow) from operating activities 188,513 162,376

Cash flows from investing activities

Purchase of property, plant and equipment (109,952) (127,989) Proceeds from sale of property, plant and equipment 783 6,202 Purchase of intangible assets (167,925) (2,527) Short term investments (Net) 46,590 (13,198)

(373,991) (1) Investment in associates - (90)

Net cash inflow / (outflow) from investing activities (604,495) (137,603)

Cash flows from financing activities

Proceeds from issuance of borrowings 578,290 56,331 Repayment of borrowings (148,704) (57,504) Purchase of Treasury stock (402) - Interest paid (21,595) (6,368) Proceeds from exercise of stock options 96 191 Dividend paid (including tax) (4,428) (4,442) Acquisition of non-controlling interest (6,104) (74)

Net cash inflow / (outflow) from financing activities 397,153 (11,866)

(18,829) 12,907 Effect of exchange rate changes on cash and cash equivalents (124) (347)

Add : Balance as at the beginning of the year 24,961 12,401 Balance as at the end of the year (Refer note 25) 6,008 24,961

Year ended March 31, 2011

Year ended March 31, 2010

Investment in subsidiary, net of cash acquired (Refer note 6)

Net (decrease) / increase in cash and cash equivalents during the year

Description Mobile Services Others India & SA Africa

Revenue from external customers Rs. 347,778 Rs. 130,721 Rs. 33,563 Rs. 30,202 Rs. 44,686 Rs. 7,722 Rs. - Rs. 594,672 Inter segment revenue 14,911 113 2,761 11,090 40,868 2,596 (72,339) - Total revenues 362,689 130,834 36,324 41,292 85,554 10,318 (72,339) 594,672

Segment result 85,551 5,173 8,334 5,546 11,688 (17,640) - 98,652

Share of profits / (loss) in associates (57)Interest income (net) 3,536 Interest expense (net) (25,349)

Earnings before taxation 76,782

Segment assets 760,142 583,774 107,002 82,733 203,105 198,781 (525,545) 1,409,992 Unallocated segment assets 55,072 Consolidated total assets 1,465,064

Segment liabilities 321,116 224,843 79,443 28,304 40,733 145,685 (524,593) 315,531 Unallocated segment liabilities 633,302 Consolidated total liabilities 948,833

Other segment itemsPeriod capital expenditure (187,857) (35,236) (45,216) (11,426) (23,622) (13,333) 9,742 (306,948)Investment in associates - - - - - - - - Depreciation and amortisation (41,346) (26,128) (8,155) (4,577) (20,058) (4,649) 2,847 (102,066)Deferred tax (expense) / benefit 6,171

Telemedia Services

Enterprise Services

Passive Infra Services

Eliminations

Consolidated

Description Mobile Services Others India & SA Africa

Revenue from external customers Rs. 317,819 Rs. - Rs. 32,162 Rs. 29,832 Rs. 35,819 Rs. 2,840 Rs. - Rs. 418,472 Inter segment revenue 13,456 - 1,992 14,966 35,033 2,985 (68,432) - Total revenues 331,275 - 34,154 44,798 70,852 5,825 (68,432) 418,472

Segment result 94,403 0 7,589 9,336 7,362 (13,193) (180) 105,317

Share of profits / (loss) in associates (48)Interest income (net) 17,381 Interest expense (net) (17,559)

Earnings before taxation 105,091

Segment assets 601,721 - 65,579 82,566 210,913 90,420 (359,106) 692,093 Unallocated segment assets 18,847 Consolidated total assets 710,940

Segment liabilities 241,978 - 46,411 48,515 50,694 127,149 (358,147) 156,600 Unallocated segment liabilities 107,115 Consolidated total liabilities 263,715

Other segment itemsPeriod capital expenditure (56,460) 0 (12,317) (15,527) (28,630) (10,103) 14,703 (108,334)Investment in associates - - 45 - - 12 - 57 Depreciation and amortisation (34,348) 0 (7,151) (3,411) (17,168) (2,773) 2,019 (62,832)Deferred tax (expense) / benefit 8,866

Telemedia Services

Enterprise Services

Passive Infra Services

Eliminations

Consolidated