Transformational ENRICHING EXPERIENCE. Network ENDURING VALUE.

Bharti Airtel Limited | Annual Report 2015-16 Corporate Information

Board of Directors Mr. Sunil Bharti Mittal, Chairman Ms. Chua Sock Koong Sheikh Faisal Thani Al-Thani Mr. Ben Verwaayen Mr. Rakesh Bharti Mittal Mr. V. K. Viswanathan Limited is a leading Mr. Craig Ehrlich Mr. D. K. Mittal global Mr. Manish Kejriwal company with operations in 20 Mr. Shishir Priyadarshi Ms. Tan Yong Choo countries across Asia and Africa. Mr. , Managing Director & CEO ( & South Asia) Headquartered in New , India, the Company ranks among the top 3 mobile service providers globally in terms of Executive Chairman subscribers. In India, the Company's product offerings include (Africa) 2G, 3G and wireless services, mobile commerce, fixed line Bharti Airtel International services, high speed DSL broadband, IPTV, DTH, enterprise (Netherlands) B.V. Mr. Christian de Faria services including national & international long-distance services to carriers. In the rest of the geographies, it offers 2G, 3G and 4G wireless services and mobile commerce. Bharti Airtel Company Secretary had over 342 Mn customers across its operations at the end of & Compliance Officer March 2016. Mr. Rajendra Chopra

Statutory Auditors M/s. S. R. Batliboi & Associates LLP Chartered Accountants

Internal Auditors M/s. ANB & Co. M/s. KPMG The information contained in this report can be accessed through Cost Auditors the Airtel Investor Relations app available on the iPhone and iPad. M/s. R. J. Goel & Co. Cost Accountants

Secretarial Auditors M/s. Chandrasekaran Associates Company Secretaries

Registered & Corporate Office Bharti Airtel Limited Bharti Crescent, 1, Nelson Mandela Road, Vasant Kunj, Phase – II, – 110 070, India For the online version of the Website Annual Report please log on to http://www.airtel.in/about- www.airtel.com bharti/equity/results/ Corporate Identification Number (CIN) L74899DL1995PLC070609 Inside this Report

“Airtel became the first company in India to receive a payments bank license. I strongly believe with our deep distribution network touching remote corners of the country, is uniquely placed to deliver a differentiated banking experience to our customers”. Sunil Bharti Mittal, Chairman

PG 12

Corporate Overview 03 Touching Lives 04 Our Winning Strategy #3 PG 3 06 Imagine Our Network of Possibilities Ranked Telecom Operator Globally 07 Product Portfolio (in terms of subscriber base) 08 Financial Progress 10 Achievements in FY 2015-16 12 Message from Chairman 14 Message from Managing Director & CEO (India & South Asia) 15 Message from Executive Chairman (Africa) % PG 5 16 A Bold Leap Forward 21.1 18 A New Generation’s take on Life Spectrum Market Share 22 Africa’s Conversation is Changing 24 Board of Directors 26 A Rewarding Year! 28 Corporate Social Responsibility & Sustainability 45.2% PG 5 Statutory Reports Incremental RMS (Y-o-Y) 40 Business Responsibility Report 48 Board’s Report 84 Management Discussion and Analysis 104 Report on Corporate Governance

Financial Statements PG 5 61% 126 Standalone Financial Statements with Incremental EBITDA Margin (Y-o-Y) Auditor’s Report (IGAAP) 189 Consolidated Financial Statements with Auditor’s Report (IGAAP) 264 Consolidated Financial Statements with Auditor’s Report (IFRS) 352 Statement Pursuant to Section 129 of the Companies Act, 2013 Bn PG 3 965.3 356 Circle Offices Global Revenues FY 2015-16 Transformational Network

Telecommunication today reflects majestic leaps of human imagination, transcending the limits of time and space. The industry is seeing unprecedented progress in terms of innovation and adoption of new technologies that elevate life in so many different ways.

Smartphones are now being used by millions committed to help strengthen financial inclusion, of people across the emerging world, resulting leveraging our deep distribution network across in a huge uptake in new applications and data India’s vast terrains. consumption. Regulatory issues are also being scrutinised to untangle the web of complexities; The year also saw us responding with resilience and create a level playing field for market in challenging African markets, providing participants globally. opportunities across communities to help Africa realise its full potential. We are also focusing on a Against the backdrop of these broad trajectories, viable blueprint to grow our market share, reduce we at Bharti Airtel crossed major milestones in waste and accelerate voice and non-voice almost every aspect of the business. businesses across the continent.

During the year, we emerged as the world’s third Amid an exciting and eventful year, we continued largest mobile operator in terms of subscribers. to drive our environmental and sustainability We bolstered our operating efficiencies, margins initiatives with passion and diligence. and revenue market share significantly in India. We embarked upon our ambitious Project Leap This is the broad canvas of sweeping to radically transform our network in India; and transformation that we are delivering to undertook one of our largest sites deployment customers and stakeholders, who partner our initiatives, rolling out over 87,000 sites. vision of enriching lives.

Not just that, we unveiled India’s first Open Transformation for us is not just evolution Network, setting a new benchmark of in response to shifting global realities. It is a transparency for the industry. We are opening up; quest for new paradigms, harbours of hope so that customers can evaluate our capabilities, and innovation in a deeply connected and see our commitment, even partner us in building collaborative world. a truly great network.

We have also had the honour of being India’s first company to receive a payments bank license from the Reserve . We are 02-39 Bharti Airtel Limited Corporate Overview 40-125 | Statutory Reports 126-355 | Financial Statements

Touching Lives through the transformative power of communication

#1 #2 #3 Ranked telecom operator Ranked telecom operator Ranked telecom operator in India in Africa globally (in terms of subscriber base)

342 Mn+ 77 Mn 25.2 Mn Mobile subscribers across Wireless data customers New mobile subscriptions Asia (India, Bangladesh across Asia and Africa in India in FY 2015-16, the and Sri Lanka) and Africa fastest subscriber growth in the industry

20 2 Bn+ 965.3 Bn Countries presence Addressable population Global revenues in across the globe globally, considering the FY 2015-16 geographies in which Airtel has presence

1.35 Tn 597Bn MB USD19.8 Bn Minutes of mobile voice Data usage in Total Airtel Money transaction traffic in FY 2015-16 globally FY 2015-16 value in Africa in FY 2015-16 (Q4 annualised)

437 MHz 760 Bn 995.8 Bn Spectrum won in auctions Investment in spectrum Cumulative contribution to in India (February 2014 and auction and purchase the exchequer in India in the March 2015) and acquired last 5 years via trading

Touching Lives 3 Transformational Network

Our Winning Strategy Vision Objectives Our vision is to enrich the lives of our Grow market share profitably customers. Our obsession is to win Accelerate non-mobile businesses customers for life through exceptional experience. Values Alive Inclusive Respectful Win-win for all Win through go-to-market excellence Grow share of new smartphones and 4G devices Accelerate data penetration via intuitive pricing and innovation Build India’s No. 1 payments bank through a 'frugal and digital' model Win with a brilliant network experience Address customer concerns through quality obsession Improve customer advocacy through granular planning and communication Drive down unit cost per MB through leveraging multiple technologies Win with valuable customers Grow 3G / 4G data by encouraging consumption, bundling and upgradation Grow postpaid through propositions, store experience and B2B drive Accelerate B2B through improved experience Empower homes through high-speed broadband, low-cost access and bundling Win DTH through a disproportionate share of digitisation and innovation Win with a war on waste Drive cost efficiency initiatives Lower costs and maximising sharing Reduce waste by network re-design Win with people Drive a high-performance culture Grow talent through strong learning, mentoring and succession planning

4 Annual Report 2015-16 02-39 Bharti Airtel Limited Corporate Overview 40-125 | Statutory Reports 126-355 | Financial Statements

Value Enablers Our guiding philosophy revolves around customer centricity, performance excellence, transparency and ethical governance.

Large residual Significant scale and opportunity with bulk scope to capitalise on investments in place the opportunities We have large residual opportunities in India and Africa; Airtel is growing across key growth markets with a and are well positioned to capture future growth through subscriber base of 342+ Mn. We are the only telecom our network of towers and base stations, superior operator with a diversified portfolio in India; and we are spectrum bank, and largest layout of optic fibre. suitably positioned to capitalise on the opportunities ahead.

~50% 21.1% 45.2% (Y-o-Y) 38.7% Unique mobile users of Spectrum market Incremental Revenue Incremental subscriber total SIMs sold share Market Share (RMS) - share as of Feb 2016 (Source: CISCO VNI Forecasts) Highest in the industry (Source: TRAI) 2x 435,000 Highest Leader Industry leading revenue yield/MHz at 2x average Rkms revenue in India with same cost/MHz Largest optical fibre Market share and and #1 or #2 in 14 network among subscriber market African countries private players share in India

Financial flexibility, strong balance sheet and operating efficiencies We continue to focus on de-leveraging through strategic initiatives taken in India and Africa which include tower sales, and strategic divestment of two African countries. 9.6% 3.2% We realised ~USD 1.6 Bn from tower sales and sales in Revenue growth of India Revenue growth of 3 countries are work-in-progress. We are also achieving and South Asia (Y-o-Y) Africa (Y-o-Y) (on a high operating efficiencies and strengthening our war constant currency basis) on waste across geographies.

34.2% to 35.4% 61% Increase in EBITDA margins Incremental EBITDA (FY 2014-15 to FY 2015-16) margin (Y-o-Y)

Global talent pool Strength of our team:

Our huge talent pool helps us create differentiated experience for our customers through an attractive 19,523 646 portfolio of products and services. India South Asia

A high-performance culture through talent-first strategy with contemporary learning modules, mentoring, and succession planning strengthens the 4,771 differentiation of our brand. Africa

Our Winning Strategy 5 Transformational Network

Imagine Our Network of Possibilities

As the world’s leading global company, we are building the network of the future. Network that is more heterogeneous, flexible and attuned to evolving customer expectations. We are migrating to a more granular network quality model that enhances transparency and reinforces customer trust on the brand. Our multi-layered and multi-technology network is a futuristic and highly complex architecture. Therefore, in order to maintain and improve the network experience, we have embarked upon innovative tools for near real-time optimisation through Self Optimisation Network (SON) and geo-analytics.

Airtel has pioneered a customer We provide telecom services under demand centric network planning wireless and fixed line technology, and densification by getting visibility national and international long of the network consumption on a distance connectivity, Digital TV granular 50m x 50m grid. It has and IPTV services; and complete helped in ensuring deployment of integrated telecom solutions to our new sites, small cells in corridors of enterprise customers. high consumption, thus improving efficiency of new deployments. Through ‘Airtel Money’ we are driving financial inclusion by offering With operations across 20 countries convenience of payments and money in Asia and Africa, our innovations are transfers on mobile phones over touching the lives of millions of people secure and stable platforms. worldwide. We globally rank among the top three mobile service providers in terms of subscribers, offering a wide array of products and services.

6 Annual Report 2015-16 02-39 Bharti Airtel Limited Corporate Overview 40-125 | Statutory Reports 126-355 | Financial Statements

Product Portfolio

Mobile Telemedia Digital TV Services First to launch 4G in India Landline Superior digital picture quality Pocket-friendly data packs Attractive plans and offers Dolby digital sound Seamless 3G connectivity Highly reliable service HD channels Wide range of plans to choose from 24/7 online support Universal remote Value added services 330+ channels Interactive services Internet Superior connectivity Tailor-made plans High speed internet access Value added services India ` Mn ` Mn ` Mn

519,636 44,325 24,759 560,818 47,609 29,178

8% Y-o-Y 7% Y-o-Y 18% Y-o-Y

Airtel Tower South Asia ` Mn Business Infrastructure Diverse portfolio of services One of the world’s largest passive 15,759 - voice, data, video, network infrastructure providers 16,454 integration, data centres, managed 88,808+ towers (including services, enterprise mobility proportionate share of Indus 4% Y-o-Y applications and digital media Towers) Strategically located submarine cables and satellite network Global network running across 225,000 Rkms, covering 50 countries and 5 continents Africa USD Mn ` Mn ` Mn

3,935 67,130 54,282 4,059 78,033 56,173

3% Y-o-Y 16% Y-o-Y 3% Y-o-Y

FY 2014-15 FY 2015-16

Revenue Mix FY 2015-16

India & South Asia Africa

55.5% 24.2% 7.5% 5.4% 4.6% 2.8%

Imagine Our Network of Possibilities | Product Portfolio 7 Transformational Network

Financial Progress

Financial Year Ended March 31

Operating Highlights Units 2012 2013 2014 2015 2016

Total Customer Base 000s 251,646 271,227 295,948 324,368 357,428

Mobile Services 000s 241,148 259,844 283,580 310,884 342,040

Broadband & Telephone Services 000s 3,270 3,283 3,356 3,411 3,664

Digital TV Services 000s 7,228 8,100 9,012 10,073 11,725 Based on Consolidated Income Statement

Revenue ` Mn 683,267 769,045 857,461 920,394 965,321

EBITDA (before exceptional items) ` Mn 222,533 233,340 278,430 314,517 341,902 Cash Profit from Operations before Derivative and ` Mn 193,899 195,643 241,813 285,280 289,152 Exchange Fluctuation (before exceptional items) Earnings Before Tax ` Mn 63,792 47,853 78,643 107,130 120,705

Net Profit ` Mn 42,594 22,757 27,727 51,835 54,842 Based on Consolidated Statement of Financial Position

Shareholder's Equity ` Mn 506,113 503,217 597,560 619,564 656,301

Net Debt ` Mn 618,442 583,567 605,416 668,417 838,883

Capital Employed ` Mn 1,124,555 1,086,784 1,202,976 1,287,981 1,495,184 Key Ratios

Capex Productivity % 69.17 69.12 72.91 77.40 70.04

Opex Productivity % 43.84 45.43 45.20 43.79 42.98

EBITDA Margin % 32.57 30.34 32.47 34.17 35.42

EBIT Margin % 13.97 11.08 14.22 17.23 17.24

Return on Shareholder's Equity % 8.57 4.51 5.04 8.52 8.60

Return on Capital Employed % 7.06 5.68 6.65 8.05 8.89

Net Debt to EBITDA Times 2.60 2.51 2.19 2.08 2.47

Interest Coverage Ratio Times 9.11 6.79 7.58 8.43 7.04

Book Value Per Equity Share ` 133.27 132.51 149.49 154.99 164.18

Net Debt to Shareholders’ Equity Times 1.22 1.16 1.01 1.08 1.28

Earnings Per Share (Basic) ` 11.22 6.00 7.02 12.97 13.72 Contribution to Exchequer (India)

Taxes, Duties, Fees and other Levies ` Mn 119,082 141,513 213,324 237,688 284,215

All figures are based on Consolidated Financial Statements (IFRS).

8 Annual Report 2015-16 02-39 Bharti Airtel Limited Corporate Overview 40-125 | Statutory Reports 126-355 | Financial Statements

Credible Growth Incremental Revenue EBITDA EBITDA Margin ` Mn ` Mn %

920,394 314,517 57 965,321 341,902 61

5% Y-o-Y 9% Y-o-Y 361 bps Y-o-Y

Cost Efficiency Opex Capex Productivity1 Productivity2 % %

43.79 77.40 42.98 70.04

81 bps Y-o-Y 736 bps Y-o-Y

Expanding Margins EBITDA Margin PAT Margin % %

34.17 5.63 35.42 5.68

125 bps Y-o-Y 5 bps Y-o-Y

Market Share Growth

Revenue Market Share Leading the pack on data India and Africa churn (RMS) in India stood at revenues with data RMS is under control 31.5% for FY 2015-16 of >45% in FY 2015-16 versus 30.7% for among the top three FY 2014-15

FY 2014-15 FY 2015-16

1 2 81 bps improvement in operational productivity on an year-on-year basis. 736 bps decrease in capex productivity on an year-on-year basis. This is computed by dividing the operating expenses by the total revenues for This is computed by dividing revenue for the period by gross cumulative the respective period. Operating expenses is the sum of (i) employee costs, capex (gross fixed assets and capital work-in-progress) till date i.e. the (ii) network operations costs and (iii) selling, general and administrative costs. physical investments made in the assets creation of the Company. This ratio This ratio depicts the operational efficiencies in the Company. depicts the asset productivity of the Company.

Financial Progress 9 Transformational Network

Achievements in FY 2015-16

Operational Highlights

Financial Highlights Rolled out a national mobile number portability.

Announced the launch of first indigenously manufactured DTH set top boxes; in step with the Government’s ‘Make in India’ initiative.

In collaboration with the Government of Madhya Pradesh, launched an internet literacy programme - ‘e-Shakti’, Signed pan-African agreement Received Bilateral to build internet awareness with Liquid Telecom to provide Financing Commitments of and access for women working fibre connectivity to towers. up to USD 2.5 Bn from China with various government Development Bank and departments and for girl Won ‘Golden Peacock Award Industrial and Commercial students of government-run for Sustainability’ for the year Bank of China. schools and colleges. 2015.

15 May June July August September

Airtel becomes the third Introduced new range of largest mobile operator in ‘Infinity Plans’ (industry the world. first plan) and an industry first technology platform – Signed an agreement Flexpage. to acquire 100% equity stake in Augere Wireless Launched ‘Wynk Movies’ Broadband India. – carrier agnostic mobile application offering customers thousands of movies and other video content.

Entered into strategic partnership with Uber in India.

10 Annual Report 2015-16 02-39 Bharti Airtel Limited Corporate Overview 40-125 | Statutory Reports 126-355 | Financial Statements

Became the first mobile operator in India to commercially deploy LTE- Advanced (4G+) technology on a live 4G network in Kerala. LTE-Advanced carrier aggregation technology combines TD LTE (2300 MHz) with FD LTE (1800 MHz) Wynk Music crossed 12 Mn bandwidths to deliver mobile downloads. data speeds up to 135 Mbps.

Announced ‘Project Leap’ - Airtel Rwanda received the largest capital expenditure award of best 4G Mobile of `600,000 Mn in the Network Operator for the next three years towards year 2015 for exceptional a comprehensive network performance in 4G LTE by transformation. Olleh Rwanda Networks (ORN).

October November January February March 16

Launched high speed 4G Entered into an exclusive Entered into a definitive services commercially in 334 discussion with Axiata agreement with Videocon towns across India. Group to explore the Telecommunications Limited possibility of combining the (VTL) to acquire, rights to use Concluded the sale of about business operations of their 2x5 MHz spectrum in the 1800 9,000 telecom towers in subsidiaries in Bangladesh, MHz Band in six circles at an eight African countries. namely, Axiata. aggregate consideration of Total proceeds from all the `44,280 Mn. concluded transactions is over Signed a definitive USD 1.8 Bn. agreement with Orange to Limited sell operations in Burkina agreed to acquire 19.90% of Faso and Sierra Leone. the paid-up capital of Airtel Payments Bank Limited.

Entered into agreement for the sale of over 1,300 telecom towers in Tanzania to American Tower Corporation (ATC).

Achievements in FY 2015-16 11 Transformational Network

Message from Chairman

Dear Shareholders,

The global economy went through another challenging year. Even as the US experienced sustained recovery, growth in the Euro area remained muted and China continued to slow down, dragging down global economy conspicuously.

Although India, our core market, by contrast had a reasonably good year; for Africa’s largely commodity driven economies it turned out to be extremely 19.6% tumultuous, as weak growth was accompanied of our total customer by a sharp depreciation of currencies. Overall, we base in Africa are data encountered a mixed economic environment in our customers key markets.

Telecommunication witnessed phenomenal progress on the innovation and adoption front. As a sector, it witnessed two remarkable trends in the emerging Early on during the year, Airtel moved past a key milestone, markets – one, overall penetration of smartphones when it became the world’s third largest mobile operator expanded rapidly, resulting in a sharp uptake in (by subscribers). The year also witnessed a steady new applications and data consumption; two, strengthening of our operating benchmarks in different regulatory issues with regard to net neutrality and geographies. The improvement was most conspicuous OTT applications continued to be debated rather in India, where we scaled up our margins and revenue vociferously. Notwithstanding the overhang of market share significantly. Although improvement in uncertainty over these issues, operators globally have African markets remained rather subdued, following sharp steadily come to terms with complex regulatory issues. currency devaluations, caused largely by macro-economic headwinds facing these markets, positive change in key metrics definitely augur well for the future. I firmly believe six years of hard work has finally started showing some results on ground.

Riding on rapid increase in smartphone penetration, data revenues continued to be a key driving force of our incremental revenues, both in India and Africa. While data customers accounted for 23.2% of our total customer base in India, the corresponding ratio for Africa stood at 19.6% at the end of the year. Similarly, the share of data revenues in total revenues stood at 23.3% and 15.6% in India and Africa, respectively. We expect these ratios to expand in an accelerated manner in the coming years.

4G as a technology is maturing at a much faster rate than earlier expected, particularly so in India. Throughout the year, we not only expanded our 4G footprint to nearly 400 400 Cities and towns 4G expansion undertaken, making ours the widest 4G network in India

Sunil Bharti Mittal

12 Annual Report 2015-16 02-39 Bharti Airtel Limited Corporate Overview 40-125 | Statutory Reports 126-355 | Financial Statements

Riding on rapid increase in smartphone penetration, data revenues continued to be a key driving force of our incremental revenues, both in India and Africa.

Our philanthropic arm, expanded the ambit of its initiatives considerably during the year. Our 600,000Mn education related initiatives are today reaching out to ‘Project Leap’, involving a cumulative over 73,000 underprivileged rural children. Similarly the investment of ` 600,000 Mn (USD 9 Bn) rural sanitation initiative Satya Bharti Abhiyan, launched in the last financial year has already constructed and over three years delivered over 12,700 household toilets benefiting over 63,000 users in 559 villages in Punjab’s Ludhiana district. The Programme is already being hailed as one of the most successful private sector initiatives in the country in cities and towns, making ours the widest 4G network in rural sanitation. ’s ‘Adopt a School’ initiative is India, but also acquired new spectrum from the market today reaching out to over 27,000 students with over 700 under the new spectrum trading guidelines to consolidate teachers. our 4G presence with a pan-India footprint. We also embarked upon a bold network transformation initiative – Technology innovations – from virtual reality and artificial ‘Project Leap’, involving a cumulative investment of intelligence to robotics are taking significant strides to open ` 600,000 Mn (USD 9 Bn) over three years. During the year, up numerous possibilities in our lives. At the heart of these we completed one of the largest site deployment initiatives exciting possibilities lie the global telecommunications in the world rolling out over 87,000 new sites. networks that are upgrading themselves with equal alacrity to match the pace and scope of these innovations. As new Airtel became the first company in India to receive a innovations riding our networks evolve to the next stage, payments bank license. I strongly believe with our deep network operators will no longer remain the proverbial distribution network touching remote corners of the ‘dumb pipes’, but ‘smart facilitators’. It’s an exciting future country, Airtel Payments Bank is uniquely placed to deliver waiting out there. a differentiated banking experience to our customers. Other businesses in India, i.e. Direct to Home (DTH) and Telemedia too, strengthened their operational parameters during the year significantly.

Asset restructuring and rationalisation remained a key guiding factor for us in Africa. We entered into definitive agreements, which will lead to Orange’s acquisition of Airtel’s operations in Burkina Faso and Sierra Leone. Sunil Bharti Mittal We also achieved closure of the Tower Cos divestment agreements in eight countries during the year. Tower Cos divestment will not only help us deleverage through debt reduction, but enable Airtel to significantly reduce its on-going capital expenditure on passive infrastructure, besides helping us to focus on our core business.

Airtel Africa’s management structure has been redesigned to achieve a higher level of empowerment and accountability at the operating levels. Under the new cluster based organisational structure, Christian de Faria has assumed the position of Executive Chairman and Raghunath Mandava, who moved to Africa from our India and South Asia operation has assumed charge as the Chief Operating Officer.

Message from Chairman 13 Transformational Network

Message from Managing Director & CEO (India & South Asia)

Dear Shareholders, We accelerated the growth of postpaid decisively ahead of competition through a combination of innovative FY 2015-16 was an exciting year for us. During the year, propositions, retail store expansion and a relentless focus we strengthened our go-to-market operations, launched on execution. In the home broadband business, we saw innovative data propositions, accelerated postpaid tremendous growth in customer additions on the back of dramatically, besides enhancing customer experience carefully planned micromarketing. We automated several and stripping out waste. As a result, this year we have customer-facing processes and are continuously improving witnessed the highest ever growth in our market share. the quality of our call centres, so that we can give a superior We also accelerated our smaller businesses considerably. experience to our customers. Finally, we secured spectrum to further consolidate our 4G presence, giving us a pan-India footprint for 4G services. We continued our emphasis on identifying and stripping out waste from our business. In the past three years, we had set On go-to-market excellence, we further strengthened ambitious cost saving targets for ourselves and we have been our rural direct distribution and introduced innovative able to meet them successfully. demand generation initiatives. We continue to push the automation of our sales force processes and emphasise On Airtel Payments Bank, we are the first company in India to on the quality of acquisition. Data continues to be an receive a payments bank license from the RBI. This initiative important component of our portfolio. We have expanded reflects our strong focus on the mobile banking segment our 4G footprint across many more cities and towns in and our commitment to the Government’s vision of financial India and have successfully positioned our brand as ‘The inclusion and banking services for every citizen. We believe Smartphone Network’. Our brand is now in a very strong that Airtel Payments Bank is uniquely placed to deliver quality position. We have expanded our content portfolio with the banking services to customers, given Airtel’s deep distribution launch of Wynk Movies and Wynk Games. network that touches every corner of the country. We are committed to providing our customers the best Finally, Bharti Airtel has constantly striven to be among the data experience possible. This is why we announced a preferred places of work for the smartest in the industry. bold and ambitious initiative called ‘Project Leap’ that This year, we have been ranked 8th as the employer of will see an investment of ` 600,000 Mn over three years choice across all companies in India. We strengthened our to transform our network. As a part of Project Leap, we internal performance management processes and stepped undertook one of our largest sites deployment initiatives up recruitment from the top engineering and management this year, rolling out over 87,000 sites. We believe these institutes in the country. We continue to encourage our talent efforts will help us perceptibly improve our network quality to build a holistic long-term career at Airtel. and deliver a differentiated customer experience. As we strive for business growth and excellence, we continue to fulfil our responsibility to the environment and our obligation to the society. We have launched our third sustainability report this year, which captures our initiatives that further put sustainability at the core of our agenda. Bharti Foundation, with full support from our employees, has been doing remarkable work in the area of promoting education among the underprivileged rural children. These initiatives have made our corporate citizenship more meaningful.

As we look ahead to the future, we have an exciting opportunity to help digitise the nation. We are determined to do this despite potential challenges such as the entry of a new operator, challenges around data penetration, network quality and pricing. We believe we are in a strong position to compete in this environment, given our spectrum and network assets, impressive customer and product portfolio, our innovations and most importantly, our people.

As we look forward to an eventful year, I would like to thank our customers, our people, our partners and our shareholders for their support and faith in us. We seek your continued guidance in our journey.

Gopal Vittal Gopal Vittal

14 Annual Report 2015-16 02-39 Bharti Airtel Limited Corporate Overview 40-125 | Statutory Reports 126-355 | Financial Statements

Message from Executive Chairman (Africa)

Dear Shareholders, Achieving closure of the Tower Cos agreements in eight of the 11 countries. We are confident to reach full Telecommunications continues to change the face of the closure within 2016-17. African continent by providing an enabling environment for inclusion. Bharti Airtel, is playing a central role in Right-sizing of our current workforce to create a nimbler, addressing a range of socio-economic developmental high performing organisation. issues. Today, Airtel is bringing this technology to more than 80 Mn people across the continent. Data continues to play a key role in driving our revenues and we foresee growth in data subscriptions in the coming During the year, we encountered some headwinds years. During the last financial year, our data subscriptions fuelled by currency fluctuations, regulatory issues grew by 28.5%, while total MBs on the network grew by and other industry challenges. Despite them, we 109%. Data usage per customer reached 547.4 MBs by strengthened our operations through a well-considered March 2016, accounting for a year-on-year growth of 58.7%. growth strategy. Our strategic focus has led to an improvement in our performance since Airtel’s entry into In the last financial year alone, we added 3,117 3G sites Africa. Some of the key focus areas during the year were: across our markets in Africa. We are also looking at steadily enhancing our 4G (FD-LTE) network. We currently have Continuing our aggressive war on waste in all Seychelles, Gabon and Rwanda enabled on 4G. our OpCo’s to ensure cost efficiencies across all functions, leading to overall savings. With over 9 Mn subscribers transacting close to USD 16.9 Bn (Constant Currency) during the year and a Growing our customer base with a focus on quality presence across all our 17 markets, Airtel Money is ready and a pragmatic approach towards customer to move to the next level. Whilst DRC, Zambia, Rwanda and interventions and engagement. Niger went live on the cross border remittance service, the Airtel / MTN Remittance partnership for Burkina Faso - Ivory Network upgrades to cater for the existing and Coast and Niger - Benin also became operational during the expected data growth. year. Our strategy for Airtel Money growth is to focus on the ecosystem - expand our retail outlets and merchants. Focusing on enhancement of internal controls for compliance and governance. Under Airtel Rising Stars, Africa’s largest youth football property, we continued to focus on identifying and Some key milestones during the last financial year nurturing talent from the grassroots level onto the national included: and international stage. In 2015, 476,000 boys and girls in 28,000 participated in the ARS, which is a 6.25% Airtel and Orange signing an agreement leading to participation growth year-on-year. Orange’s acquisition of Airtel’s operations in Burkina Faso and Sierra Leone. Airtel Africa’s Corporate Social Responsibility programmes are focused on health, education, environment and the development of youth. We have had noteworthy success while contributing towards mitigating the Ebola crisis in West Africa which was recognised by the African Union. We are also actively involved in ‘Train My Generation’, an initiative launched to train youth in ICT, under which 10,000 youth in Chad and Gabon will receive training.

Finally, success for Airtel in Africa will be through nurturing a high performance culture. We have to continue enabling, encouraging and deploying the best in class talent to achieve our goals. In the next fiscal year, our objectives are to grow our market share, reduce waste and accelerate our non-voice business. With our strategic plans and supporting structure already identified, I believe that we are well positioned to achieve our objectives.

I would like to extend my gratitude to our customers, partners for continuing to support us in our journey and look forward to an even more exciting year ahead.

Christian de Faria Christian de Faria Bharti Airtel International (Netherlands) B.V.

Message from Managing Director & CEO (India & South Asia) | Message from Executive Chairman (Africa) 15 Transformational Network

A Bold Leap Forward

A leap by its very nature does not follow a linear pattern. For us at Bharti Airtel, every leap is an ambitious, orbit-shifting trajectory to chart a new course, set a higher benchmark and take a historic step forward. In FY 2015-16, we announced a ` 600,000 Mn investment on a comprehensive network transformation programme – ‘Project Leap’. It will help us build a smart and dynamic Project communication architecture to improve customer experience through high quality Leap voice and data experience across India. 70,000 Base stations deployed in FY 2015-16

This investment of ` 600,000 Mn is Project Leap will enable us to Broadband for All: We have over and above the ` 1,600,000 Mn, take a decisive lead in delivering a expanded our mobile broadband we have already invested in our active differentiated customer experience. coverage to all towns and over and passive networks, spectrum, 250,000 villages by March 2016. fibre, submarine cables and systems Largest Deployment of Network In three years, Airtel plans to offer till date. This investment is one of the Infrastructure: We deployed over mobile broadband to over 500,000 largest by a private sector company in 70,000 base stations in FY 2015-16, villages in the country. We will also India till date. making it the largest deployment in modernise our 3 Mn plus strong home the history of India in a single year. broadband network by upgrading Today, over 60% of Airtel’s network is our copper assets through new-age mobile broadband enabled. In three Vectoring Technology. This technology years, we will deploy over 160,000 will enable us to offer 50 Mbps speeds base stations, effectively doubling our from its current 16 Mbps by 2016-17. presence from what it has today on In addition, we plan to deploy fibre the ground. network to homes, offering up to 100 Mbps speeds.

16 Annual Report 2015-16 02-39 Bharti Airtel Limited Corporate Overview 40-125 | Statutory Reports 126-355 | Financial Statements

World-class Indoor Experience in that will significantly lower energy battery- hybrid, Li-ion and solar-hybrid Every City: We will deploy a range of consumption and reduce diesel technologies. Airtel's new telecom solutions including small cells, carrier dependency. As a result, Airtel will tower design and architecture aggregation solutions, Wi-Fi and the reduce its carbon footprint by up to functions without diesel generators. use of multiple technologies across 70% on a per unit basis in the next We aim to increase the use of different spectrum bands. This will three years. renewable energy wheeling on core enable us to provide a state-of-the- sites to enhance the green energy art coverage on both voice and data During FY 2015-16, 40,000+ consumption. services inside buildings across Airtel telecom towers operate on a cities. Over a period of three years, Airtel plans to deploy over 100,000 solutions through a combination of Wi-Fi hotspots, small cells and indoor solutions. In the next three years Strong Backend: We will cumulatively deploy more than 550,000 kms of domestic and international fibre in order to drive down latency, improve 500,000+ 160,000+ customer experience and serve the Villages in the country Base station deployments growing demand of data services for will be offered mobile years to come. broadband Massive Modernisation of Existing Networks: We will swap our legacy networks and base stations over a three-year period and replace 100,000 70% them with smaller, more compact Solutions will be offered Reduction in our and efficient technologies that will through a combination of carbon footprint significantly improve customer experience. These modern base Wi-Fi hotspots, small cells stations will use a single radio access and indoor solutions network to manage multiple spectrum bands.

Strategy for Small Businesses: We will use our extensive domestic infrastructure to deploy a range of solutions comprising fibre optics and Internet Wireless Access Network (IWAN). As a part of this programme, we plan to provide seamless connectivity to millions of small and medium enterprises in India.

World-class Service Operations Centre: We will invest in a broad range of tools that includes Self Optimising Networks (SON) for automatic network optimisation, geo spatial network tools for targeted network planning, capacity enhancements, Customer Experience Management (CEM) as well as software defined networks that will dramatically improve customer experience. Truly Transparent Airtel has been the first to launch the Open Network initiative to Significant Reduction in Carbon empower customers and make them part of the journey. Through this Footprint: Airtel will make substantial initiative entire network information including coverage, site details and investments in green technologies signal strength is being made available to customers. Any customer over the next three years. We will can find out detailed information about the quality of signals in his / her deploy modern and less power area and which sites he / she is being served from. Customers can also consuming radio technologies that lodge a complaint for poor service. This portal also enables customers include compact base stations and to help us erect a tower in the vicinity of his / her location. small cells. We will also leverage multiple band antennas and deploy new battery technologies

A Bold Leap Forward 17 Transformational Network

A New Generation’s Take on Life

Brand

6 Lakh+ Airtel on Over 6 Lakh customers are already part of the ‘myPlan’ family the go

Yes, that’s the prism through which we look at the myPlan Family transformative power of communications. In a The first ever family share plan by an Indian telecom operator with sharing country with a significant youth bulge (over 65% of starting at ` 99 only. The entire family the population is 35 or under, and half the country’s can share data, voice and SMSes population is under 25 years of age) our strategy is and roaming benefits. This industry first initiative gifts a unique power of to continue to innovate for New India; and find the flexibility to the customer. courage to chase seemingly ‘off-the-wall’ ideas. We believe that’s the fastest lane through which we can Growing the Wynk Family get closer to aspirations, and create an experiential Launched in 2014, Wynk Music today world, our customers desire and deserve to live in. is one of the most popular music apps with over 10 Mn songs played daily. On an average, active users spend 5.25 hours every month on the app, ensuring high product quality in the music and entertainment space.

18 Annual Report 2015-16 01-3602-39 Bharti Airtel Limited Corporate Overview 37-11840-125 | Statutory StatementsReports 120-272126-355 | Financial Statements

Pre on Post Pre on post is another industry first. A person who has a corporate account can simply do a prepaid data recharge on the corporate number. Pre on post is very simple; one can recharge anywhere like a prepaid number with no additional documentation required. Over 100,000 customers have endorsed this refreshing idea.

4G Rollout We partnered with Flipkart and Samsung to bundle 4G SIMs in the 4G handset boxes, an industry first. Through these alliances, we were able to cover SIM deliveries to roughly 70% of the 4G smartphone buyers in the country. This resulted in 20-25% of the bundled SIMs getting activated, despite going to non-Airtel customers and also helped to accelerate the 4G ~3,000 adoption process. Airtel stores spread Transforming Retail Customer across 650 cities Experience Over the last few years, the Airtel Retail Stores have established a unique relationship with our customers. Our stores are fast becoming the face of Airtel for our retail customers. Currently, we have approximately 3,000 stores, spanning 650 cities with approximately 8,000 Customer Relationship Officers deployed to serve our customers. These stores serve our postpaid and prepaid customers, and have played 8,000 an instrumental role in postpaid Customer myPlan penetration. Relationship Going forward, we are implementing Officers world-class tools such as net promoter scores, which will provide us better insights about customer experience. These insights, along with continuous high-impact training across behaviour, To meet the growing demand for The carrier-agnostic and multi-device process and products, will better quality content by smartphone users compatible applications enable equip our store staff in delighting our on the go, the Wynk product portfolio customers to stream, download customers. was expanded with the launch of and buy content at reasonable Wynk Movies and Wynk Games in prices. For our content partners, 2015. Wynk Movies is a marketplace these have become ideal platforms Best-in-Class DTH Services We are committed to provide for movies in partnership with five to reach audiences and monetise installation within four hours and content providers. It is an impressive their services, while simultaneously complaint resolution within six hours, repository of some of the latest and augmenting data consumption, in line with our motto of being the biggest blockbusters in Hindi, English keeping us ahead of the curve. fastest to install and fastest to resolve and regional Indian languages. in the industry. In FY 2015-16, 95% of Currently, Wynk services are available our installation was completed within We expanded our content portfolio only in the Indian sub-continent. four hours and 90% of our customer with the launch of ‘Wynk Games’, Going forward, we plan to expand complaints were resolved within six offering a library of over 2,000 global our services to international markets hours. Additionally, we have launched and local games from across genres. through strategic partnerships to express service for our customers Wynk Games, bundled with Airtel data establish leadership in emerging wherein new connections will be packs, aims to enhance consumption markets. installed within two hours in top 26 of this data category.

A New Generation’s Take on Life 19 Transformational Network

India. We are inspired to participate 15 Mn+ in the Government’s Make in India initiative, contributing to its growing Users registered proliferation across sectors. The in 2015-16 launch also provides the much needed impetus to build an ecosystem that will drive indigenous manufacturing of DTH set-top boxes, supported by domestic production capabilities and technical expertise.

Differentiated Banking Experience Customers enjoyed the on-the-go payments experience through our prepaid wallet offering Airtel Money. This service was delivered through the Airtel Money app and Airtel Money physical touch points.

With an aim to extend hassle-free payments experience to customers, Airtel Money app was completely redesigned. Our focus was on enabling easy registrations, fast cash load and seamless experience for customers.

12 Mn+ Customer base achieved 5 Mn+ by Airtel Digital TV within App registrations eight years of inception in 2015-16

Payments Bank License During 2015-16, the Reserve Bank of India (RBI) granted cities to further enhance customer the Payments Bank license on-boarding experience. to Airtel Payments Bank Limited with a time frame of We constantly work on advancing 18 months to operationalise our technology to enable our the bank. This move will play a customers have a best-in-class and pivotal role in bringing millions seamless TV viewing experience. of unbanked Indians into the We offer customised solutions fold of formal banking. such as multi-lingual electronic programme guide and universal Airtel Payments Bank Limited remote in the market, thereby also launched a domestic simplifying TV viewing for our remittance service in January customers. We are also working on 2016. This service is offered a Hybrid STB, combining internet through Airtel Payments Bank with TV, with which our customers Limited money points where will be able to access OTT content customers can walk in and through apps on TV. transfer money to any bank account across the country. Make in India Set-top Box Airtel Payments Bank Limited We have launched our indigenously is the first entity among the 11 manufactured set-top boxes. The licensee holders to be granted Made in India set-top boxes are the final banking license; and available in HD to begin with and is on track to become the first soon all Airtel Digital TVs set-top payments bank in the country, boxes will be manufactured in enabling inclusive growth.

20 Annual Report 2015-16 01-3602-39 Bharti Airtel Limited Corporate Overview 37-11840-125 | Statutory StatementsReports 120-272126-355 | Financial Statements

Global DIA through its satellite network platform Strengthening Airtel We have created an innovative that uses the stable GEO and solution to simplify our carrier Business revolutionary MEO satellite system. partners’ internet requirements in It created a truly differentiated multiple countries. Earlier, partners experience for customers, who Airtel Talk had to interact with multiple providers, Our global Voice over IP (VoIP) calling received fibre comparable speeds on multiple billings and multiple SLAs and messaging application ‘Airtel Talk’ satellite network (4x faster than GEO when procuring local internet for their has grown significantly and now has satellites) at affordable prices in areas customers in different countries. Now, presence in more than 100 countries with minimal hopes of high-speed our ‘Global DIA’ product gives a single with 3.5 Mn+ global subscribers. In and high-capacity connectivity in the window solution to our partners in certain markets, the app is among the absence of fibre cable. Airtel Business 40+ countries, and has the following top five apps in the app store to make is also providing satellite services benefits: international calls. to media houses, broadcasters, enterprises and governments Worldwide coverage Through Airtel Talk, we have entered overseas. Single billing option into unique partnerships (first SLA stitched offering of its kind) in the Over The Top Competitive pricing (OTT) applications space. These Flexible and scalable model partnerships have enabled us to launch Airtel Talk in markets like Singapore, wherein the local operator Content Distribution Service is using the app to generate more We created an innovative solution for international minutes towards the global content players, cloud service Indian subcontinent. Partnerships providers and e-commerce players. have also enabled us to create This was an end-to-end managed the best cost structure in multiple services solution comprising of countries, providing affordable data centres, international network solution for ISD calling. It works as an and domestic content distribution alternative to the expensive ISD voice- services. This helped localise the only calls, low quality messenger, content in India thereby significantly calling cards, among others. improving the consumer experience and lower cost of operations. Riding The app is also the first in the industry on the global sentiment to capitalise to have launched features like Share on the India growth, this initiative Credit with Friends and Call Me helped us create this solution with Free. Both these features have been most of the large global players in this designed to simplify user journey and space. iron out the challenges faced by our subscribers. Satellite Business We are bridging the gaps in our worldwide fibre network coverage through our satellite services that fully complement our fibre infrastructure for emerging markets. Airtel Business continues to provide a one-stop network solution to customers, leveraging its efficient network capability. The satellite service provider industry is slowly progressing from conventional geo-stationary satellites to medium and low orbit satellites. The advantage is ‘high throughput’ and ‘low latency’ to the global network. Airtel Business is among the very first adaptors and promoters of this technology. It has partnered with medium earth orbit (MEO) satellite providers to delight its customers with the affordable and efficient network solution on this platform.

Airtel Business elevated connectivity to the next level by providing high bandwidth network connectivity to various MNOs / telecom operators

A New Generation’s Take on Life 21 Transformational Network

Africa’s Conversation is Changing

We believe there is a great disconnect between dated perceptions and rapidly changing realities on ground in Africa. At Bharti Airtel, we are helping the continent leverage the right network and build consensus on critical socio-economic issues. We are fostering development by changing the face of communications. Africa now has a new narrative to share with the world.

6.2 Mn Customers (51% growth from FY 2014-15) engaged through social media across Africa

Launched self-service Value Added Services (VAS) in Nigeria, where customers can activate and deactivate any of the VAS services. The solution is likely to be rolled out across Africa.

Engaging More with Customers We launched a ‘Customer Forum’ across 10 locations in Africa where customers can directly engage with Airtel and make their voice heard. Surprise engagements on birthdays and anniversaries and regular publication of newsletters helped us enhance engagement with premier Active on Social Media and high-value customers. Their During 2015-16, our social media experience was highlighted through engagement grew across Africa. The partnerships with hotels, airlines, outcomes were encouraging: airport lounges, among others. 4G We engaged with 6.2 Mn Gabon went live on 4G customers across the continent Key Achievements of 2015-16 in December 2015 (51% growth from FY 2014-15). Airtel Rwanda received the award of best 4G Mobile Airtel Kenya became Africa’s Network Operator for 2015 for top social media brand in exceptional performance in 4G LTE telecommunication in the latest performance. Africa Brand Index Rankings. The Company was recognised Airtel Money Malawi was for its outstanding use of social commended for being the mobile media platforms in customer financial services leader in Malawi engagements. by Malawi Communications Regulatory Authority in Seven other regions also attained collaboration with the National market leadership in social media Statistical Office. standings.

22 Annual Report 2015-16 02-39 Bharti Airtel Limited Corporate Overview 40-125 | Statutory Reports 126-355 | Financial Statements

Airtel signed a three-year global Network Transformation Tower Co-transition: We divested agreement with World Food Network Modernisation: Airtel tower assets in African countries, Programme for cash and value initiated network modernisation drive which enabled us to focus on our voucher distribution services in by refarming / introduction of U900 / core business and customers. It also Madagascar, Malawi, Tanzania, launch of LTE in Kenya, Chad, Uganda helped us to deleverage through debt DRC, Congo B and Zambia. and Gabon. The modernisation drive reduction, and significantly reduced will lead to improved connectivity and our on-going capital expenditure on Airtel Money continues to change better throughput for customers. passive infrastructure. the financial landscape with the launch of micro loans (Kutchova Managed Services (MS) Insourcing Access Agnostic Packet Core loans) in Malawi and the launch of / MS Transition to other MS Network (AAPCN): It was rolled NFC via NFC tags in DRC. partners: MS transition to insource out in all locations of Airtel Africa to or transition to other MS partners has transform the legacy packet core Gabon went live on 4G in resulted in improvement in network into end user intensive, modernised December 2015, making it the KPIs, customer experience, and network; supporting Airtel’s journey third Opco after Rwanda and reduced time-to-market. towards being the best data service Seychelles. provider in Africa. Managed Capacity (MC) Design and planning Brand Connect Insourcing: Interactive End of Bundle activity insourced in all operating Notification (IEOBN): It was rolled Airtel Rising Stars (ARS): Airtel locations provides single end-to-end out across nine operating locations. Rising Stars is Africa’s largest design in a multi-vendor, multi- This prevented data bundle users bill grassroots under 17 football technology environment. We initiated shock, facilitate data bundle purchase tournament, focused on providing stronger alignment between AOP when customer has depleted his a platform to discover the next and design plan, improved quality of bundle increasing overall customer generation of soccer stars. The design and planning, optimised capex, satisfaction. tournament is played in 17 countries and enhanced responsiveness and across Sub-Saharan Africa. ARS is ownership. currently competing for the 2016 edition (6th edition) of the competition that has produced many successful footballers in the continent. We have had over 1.8 Mn boys and Product Launches girls participate in ARS over the last 5 years. ARS has also provided a Wynk Music Airtel Branded Music Application platform for us to engage with local communities and share our offerings. FreeBasics FreeBasics is a zero rated portal limited to text content. Rich content like images, video, music Airtel Trace Music Stars (ATMS): are chargeable and can be activated directly The second season of ATMS began on FreeBasics with user consent, to protect in February 2016, featuring the against data revenue cannibalisation. international Superstar Keri Hilson Tap2Bill Tap2Bill is a primary intermediary billing as the official Mentor. ATMS is the platform, connected to multiple vendors. It biggest mobile phone based pan- allows mobile users pay for a range of services African talent search competition; with and digital goods through their mobile phone. 2.3 Mn calls made in season one. Connected The connected home solution offers Airtel Africa, Google TVC wins Homes technology agnostic facility of data sharing, at Best Creative Award at 2015 MSK Home (over Wi-Fi) and outside home among Gala: Airtel Africa in partnership family, friends or colleagues. with Google won the Best Creative Advice of Charge AOC is the page a customer is redirected to award for our co-produced TVC called (AOC) when he / she exhausts his / her bundle or The Potato at the 2015 Marketing main account balance to alert him / her. This Society of Kenya (MSK) Awards. The page can be used to purchase new bundle or TV commercial, which was created browse on PayG. in collaboration with Google Inc., sought to illustrate the potential of One Touch Aims to bring new data users on board with mobile internet to change lives using Internet (OIT) three main sectors: 1. How to Videos, 2. Free online resources, such as the Google Offers, 3. Advice of Charge. Search engine. The Award recognises our efforts in deepening internet Artist Removes intermediaries and facilitates penetration and making information Management transparent payouts between artists and Airtel accessible to spur innovation and with control over content distribution. creativity in Africa.

Africa’s Conversation is Changing 23 Transformational Network

Board of Directors

Mr. Sunil Bharti Mittal Ms. Chua Sock Koong Sheikh Faisal Thani Al-Thani Chairman Non-Executive Director Non-Executive Director

Mr. Craig Ehrlich Mr. D. K. Mittal Mr. Manish Kejriwal

Independent Director Independent Director Independent Director CHAIRMAN MEMBER Audit & Risk Management Committee HR & Nomination Committee Stakeholders’ Relationship Committee Corporate Social Responsibility Committee Committee of Directors

24 Annual Report 2015-16 02-39 Bharti Airtel Limited Corporate Overview 40-125 | Statutory Reports 126-355 | Financial Statements

Mr. Ben Verwaayen Mr. Rakesh Bharti Mr. V. K. Viswanathan Mittal Independent Director Non-Executive Director Independent Director

Mr. Shishir Priyadarshi Ms. Tan Yong Choo Mr. Gopal Vittal

Independent Director Non-Executive Director MD & CEO (India & South Asia)

Board of Directors 25 Transformational Network

A Rewarding Year!

Bharti Airtel ranked first in a listing of 100 emerging market multinational companies by Transparency International on corporate transparency and reporting. According to the study, the Company topped the list with a cumulative score of 7.3 out of 10.

Bharti Airtel was ranked among the top three in a listing of the Top 100 BSE listed companies in FTI Consulting’s ‘India Disclosure Index 2015’ Report with a 1 2 composite score of 10 out of 10.

Bharti Airtel’s e-Shakti (Madhya Pradesh) bagged the ET Telecom Award as the best initiative in the ‘Use of Telecom for Social Good’ category.

Bharti Airtel was recognised for excellence in internal auditing at the ‘Innovation Award 2016’ by the Institute of Internal Auditors (IIA), Delhi.

Bharti Airtel has been recognised as an ‘Innovator & Disruptor in HR Technology Practices’ by the 3 Society for Human Resource Management (SHRM).

Bharti Airtel won the ‘Firm of the Bharti Airtel’s e-Shakti (Andhra year – Telecommunication’ Award Pradesh) won ‘Telecom Service at the CNBC TV18 India Risk Provider’ Award from the Management Awards 2015 held Government of Andhra Pradesh in New Delhi. for women empowerment.

Bharti Airtel honoured with Bharti Airtel was recognised the ‘Golden Peacock Award for ‘Legal Finesse, Innovation & for Sustainability 2015’ at the Accomplishments: In-House Team’ London Global Convention at the Legal Era Awards 2015-16. on Corporate Governance & Sustainability held in London, UK. Bharti Airtel won ‘India’s Top Mobile Service Operator’, ‘Top Bharti Airtel won the ‘Operator Internet Services Operator’ Excellence Award’ in the ‘Business and ‘Top Broadband Wireless Innovation in Risk Management’ Access Operator’ at the annual category at Subex User Conference 4 Cybermedia ICT Awards 2015. held in Prague, Czech Republic.

Bharti Airtel won the ‘Top Treasury Team (Asia) Award’ at the Adam Smith Asia Awards 2015.

Bharti Airtel won the ‘Data Security Council of India (DSCI) Excellence Award’ for security in Telecom at the NASSOCM-DSCI Annual Information Security Summit 2015.

5

26 Annual Report 2015-16 02-39 Bharti Airtel Limited Corporate Overview 40-125 | Statutory Reports 126-355 | Financial Statements

6

Bharti Airtel honoured with ‘Company of the Year for Sustainability Telecommunication India & South Asia’ Award at the IAIR Awards 2016.

Bharti Airtel was recognised for ‘Best Corporate Social Responsibility Practices’ and ‘Community Development’ at the Global CSR Excellence & Leadership Awards.

Bharti Airtel was awarded at the ‘Top Community Care Companies in Asia’ Award at the Asia Corporate Excellence 7 & Sustainability Awards (ACES) 2015.

Bharti Airtel won the Aegis Airtel Zambia won four Graham Bell Award 2015 in the awards – ‘Outstanding – mHealth category. Telecommunications Companies in Zambia’, ‘Outstanding – Airtel Kenya was recognised as Companies / Institutions held the ‘Best Wholesale Operator’ at in High Esteem’, ‘Outstanding Mobile Virtual Network Operators – Advertising Campaigns’ (MVNOs) World Congress 2015 and ‘Excellent – Companies / in Nice, . Institutions doing most for the Elderly / Senior Citizens’ at the Airtel Ghana won four awards PMR Africa Awards 2015 held in - ‘Telecom Brand of the Year’, Lusaka. 8 ‘Marketing Campaign of the Year’, ‘Innovative Enterprise Product of  won the Bharti Airtel Lanka won the Gold the Year’ and ‘Special Recognition ‘Asia Communications Award Award and Silver Award in the to the Telecom Industry’ at the 2015’ held in Singapore under categories of ‘Best Multinational Ghana Telecom Awards 2015 ‘Customer Experience Initiative’ Corporations’ and ‘Medium Sized in Accra. category. Enterprise’ respectively at the Great Places to Work (GPTW) Awards 2015.

1. Global CSR Excellence & Leadership Awards, 2016. 5. ET Telecom Award, 2016. 2. Frost & Sullivan India Information & Communications 6. Ghana Telecom Awards, 2015. Technology (ICT) Award, 2015. 7. PMR Africa Awards, 2015 – Airtel Zambia. 3. Innovation Award, 2016. 8. Great Places to Work (GPTW) Awards, 2015 4. London Global Convention on Corporate Governance – Bharti Airtel Lanka. & Sustainability, 2015.

A Rewarding Year! 27 Transformational Network

Corporate Social Responsibility & Sustainability

As one of the world’s leading providers of telecommunication services, we are committed to conducting our business responsibly and sustainably, with engagement and dialogue with all key stakeholders. Our network is touching and transforming the lives of millions of people across South Asia and Africa; and we are happy and honoured to partner the progress of such a huge proportion of the global population.

As a part of our corporate strategy, generation, sanitation along we are vigorously renewing with healthcare and disaster TRANSFORMATIONAL our existing systems, adopting management. AGENDA innovations across the economic, social and environmental b) It emphasises upon protecting dimensions; and making our the environment, reducing infrastructure more energy the carbon footprint and efficient. collaborating with all stakeholders to help Transformational network has a combat climate change. deep and diverse connotation at SUSTAINABILITY Bharti Airtel. STRATEGY a) It touches all aspects of stakeholder empowerment through multiple community ENHANCING HOLISTIC COMMUNITY PROTECTING initiatives in the realm of INITIATIVES ENVIRONMENT education, employment

India

A. Holistic Community Initiatives

At Bharti Airtel, our agenda is to support inclusive socio-economic progress for the development of our country. Our focus areas comprise education, employment generation, sanitation, healthcare, disaster management and environment protection, among others. We believe every small step in this direction counts; and several initiatives on the community front together can bring about enduring social change. We are building a replicable, scalable and sustainable model of development for the communities we work with.

Bharti Foundation Bharti Foundation, the philanthropic primary, elementary, senior secondary has been actively implementing arm of has a vision and higher education is a key focus ‘Satya Bharti Abhiyan’ since year “To help underprivileged children and of the Foundation. Satya Bharti 2014, to improve sanitation facilities young people of our country realise School Program, Government School in rural Ludhiana. Recently, it has their potential”. It aims to achieve its interventions under its Satya Bharti introduced ‘Nyaya Bharti’ to provide vision by imparting quality education Quality Support Program and Satya legal and financial assistance to to disadvantaged sections of society Bharti Learning Centres, are programs deserving, underprivileged undertrials across rural India. Implementing and through which the Foundation languishing in jails across the country supporting programs in the field of supports education. The Foundation for minor offences.

28 Annual Report 2015-16 02-39 Bharti Airtel Limited Corporate Overview 40-125 | Statutory Reports 126-355 | Financial Statements

Catalysts of Change: Education Provide free and quality education in Rural India to underprivileged children in rural India, with a special focus on the I. Satya Bharti School Program girl child. This year the Foundation has initiated year-long celebrations, Transform students into educated, commemorating 10 years of the confident, responsible and self- Satya Bharti School Program, reliant employable citizens, with a launched in 2006 as its flagship deep sense of social commitment. initiative. Satya Bharti Schools, located across the villages of Punjab, Encourage active involvement of Rajasthan, , Uttar Pradesh, the community, parents and like- Tamil Nadu and West Bengal are minded organisations. celebrating this milestone with commemorative activities throughout Make a lasting and sustainable the celebratory year. The schools impact on the community. secondary schools to create continue to deliver on the promise of replicable and scalable components transforming underprivileged children Find innovative solutions through in the program, facilitating delivery into educated, employable and its primary, elementary and senior of quality education. responsible citizens of tomorrow. Satya Bharti School Program – The schools provide quality education Key Performance Indicators: to students, completely free of cost, 40,676 with a special focus on the girl child. Schools 254 Besides, the schools also provide States 06 Students welfare schemes (free mid-day Students 40,676 meals, textbooks, notebooks, shoes, Percentage of Girls 49 stationery, etc.) to every student. Percentage of children 254 from SC/ST/OBC 75 Schools After 10 successful years of communities implementation, it is pertinent to Teachers 1,635 reaffirm our commitment to the primary objectives of Satya Bharti Percentage of female 54 49% School Program, which are to: teachers of students are Girls Data as on March 31, 2016.

Transformation at The nearest Satya Bharti School Grassroots: Creating Impact is located six kilometres away from Rani’s home. Rani, did not let this deter her resolve, she began Born in an underprivileged family, waking up at 5 a.m., completing all with survival being a daily challenge, the household chores and only Rani’s journey from illiteracy to then start off for school. Her accessing quality education from a teachers noticed this remarkable Satya Bharti School has not been girl and helped her blossom. Today, easy. She comes from the Bheel Rani is a topper in her class and community, where illiteracy is a also participates whole-heartedly common phenomenon, especially in all co-curricular activities. among girls. Rani’s mother suffers Energised by her own from severe visual impairment, while transformation, she has begun Rani Goyal, Class VIII, her father, Maniram is a daily wage promoting the cause of quality Satya Bharti School, Shergarh, earner. education in her village. Inspired Jodhpur, Rajasthan by her efforts, her Father has also Most girls like Rani, would have enrolled her siblings in Satya Bharti buckled under such circumstances. School, Shergarh. He says, “I am However, Rani’s strength of so happy that all my children are character helped her convince her studying at Satya Bharti School; family that an education would they now have the opportunity to not hinder her responsibilities at learn and excel in life.” home. Rani resolved to say, “YES TO EDUCATION!”

Corporate Social Responsibility & Sustainability 29 Transformational Network

Key Achievements 2015-16 Schools. This award recognises and The awards celebrate the rewards post-primary / second-level entrepreneurial spirit in children 20 students have secured students for volunteer work carried with an underlining message of admission in Jawahar Navodaya out in their communities. giving back to society. Vidyalayas (JVN); these schools enrol talented rural children of Satya Bharti Senior Secondary The esteemed CBSE affiliation India through a competitive School, Rauni, Ludhiana (Punjab) was granted to all five Satya entrance examination to provide won the International School Award Bharti Senior Secondary them with an education (free (2015-2018), instituted by the Schools located in rural Punjab. of cost), equivalent to the best British Council, for their outstanding residential school system. project on learning in the global Bharti Foundation celebrated context. the success of Class X Eight school entries were students at the CBSE Board awarded at the Design for Satya Bharti Schools participated Examinations 2016. With 225 Change contest, a global award in the ‘School Enterprise Challenge’, students appearing for the platform that celebrates children an international conference led by exams, 41 students scored a who drive social change in their Teach a Man to Fish. Satya Bharti perfect 10 CGPA, 56 students communities. Adarsh Senior Secondary School, scored between 9 and 9.9 Fattubhila won the Stage III Special CGPA, 66% of these achievers The Pramerica Spirit of Recognition award and Bharti were girl students and the Community Awards declared Foundation was conferred with the overall pass percentage was a eight winners from Satya Bharti ‘Best Partnership Initiative Award’. remarkable 99.11%.

II. Satya Bharti Learning Centres back into schools by identifying, The Satya Bharti Learning Centre enrolling and providing them bridge Program focuses on the issue of Out courses that bring them to an age / 22,830 of School Children (OOSC), in close class appropriate level of education. Children impacted coordination with the Government The project is run in partnership with Schools. In 2012, the Foundation the respective State Government’s entered into a partnership with Department of Education. Based Educate A Child (EAC), a global on the success of the program in initiative under the Qatar based Rajasthan, in 2015 it was further 5,302 Education Above All (EAA). The Satya extended to the remote rural areas of Children enrolled Bharti Learning Centre Program aims Madhya Pradesh and Jharkhand. to mainstream Out of School Children

Program Approach

To address the huge Development of key variation in age and concepts with the use the learning levels of Teaching Learning of enrolled Out of Material to cater to School Children. the basic learning needs.

Teaching Multi-Grade Learning Teaching Material

Engagement Engagement with with Government Community Working with the Government to Engaging parents ensure identification, and communities mainstreaming and to make them provision of welfare active participants schemes. under the program.

30 Annual Report 2015-16 02-39 Bharti Airtel Limited Corporate Overview 40-125 | Statutory Reports 126-355 | Financial Statements

Satya Bharti Learning Centres – Key Achievements 2015-16 numbers required to run a centre Key Performance Indicators: in the village as per Government Program expansion into Madhya norms. Centres 459* Pradesh, Jharkhand and more Children impacted 22,830 Blocks in Rajasthan. Over 1,100 Education Volunteers Children enrolled 5,302 have been trained till date. Children mainstreamed 14,703 22,830 Out of School Children Percentage of girls 50 (OOSC) covered, 473 new Extensive appreciation and Percentage of SC/ST/ 96 centres established with recognition received from OBC students enrolment of 12,282 OOSC. the respective Government Education Departments, school Education volunteers 416** 348 villages made OOSC free, in Principals and the community. *479 centres have been closed as most of the some cases the count of OOSC OOSC’s in these villages have been mainstreamed (number included in overall impact); in some dropped to such a low figure villages the count of OOSC’s have dropped to that it went below the minimum such a low figure that it has gone below the minimum numbers required to run a centre, as per Government norms. **Recruitment in progress. Data as on March 31, 2016.

III. Satya Bharti Quality Support Bharti Foundation introduces Program innovative tools and processes Launched in 2013, the Program’s to enhance a school’s current objective is to support Government performance by: schools in their journey towards holistic quality education and to a. Creating an opportunity for make schools centres of learning exposure to best practices in and development. This initiative education. envisages improving the quality of Government schools through need- b. Conducting need-based based interventions. The learnings training for key stakeholders. accrued while operating 254 Satya Key Achievements 2015-16 Bharti Schools over 10 successful c. Co-creating processes to Successful pilot launch of years are systematically transferred to sustain the desired change. Innovative Teachers’ Award in these schools. Jodhpur, Rajasthan.

Acceptance of program approach and impact by stakeholders Program Approach with requests from 50 schools through Principals, officials from education departments and Optimise use of existing Support school leaders to community members. resources, policies and achieve higher goals and systems bridge existing gaps Steady increase in teachers’ engagement to enhance the performance of students; provided educational support, such as books for competitive exams, student lectures, career counselling, interschool events, Collaborate with school Facilitate, support and among others. leadership and staff to enhance school resources, maximise usage processes and efforts Awards won by Haryana School for special projects like ISA by British Council (Bhojawas, Haryana) and nominated for ‘Best School Award’ for Overall Satya Bharti Quality Support Program – Key Performance Indicators: School effectiveness (Jodhpur).

Schools (In four States*) 39 7 Teachers certified for Teachers 953 implementation of innovative Students 21,620 ideas by Roehampton University (Kanina Block, Haryana). *Punjab, Haryana, Rajasthan and Delhi. Data as on March 31, 2016.

Corporate Social Responsibility & Sustainability 31 Transformational Network

IV. Satya Bharti Abhiyan Program Objectives* Bharti Foundation launched the Satya A. Provide an individual toilet in every Bharti Abhiyan to improve sanitation household in rural Ludhiana which facilities in rural Ludhiana district and is without a toilet. support the Government’s agenda of Swachh Bharat Mission. Through this B. Provide a girl’s toilet in every initiative, it provides individual toilets Government School of rural in households lacking such facilities, Ludhiana that does not have a across 900+ villages. separate toilet for girls.

In addition, the aim is to improve sanitation facilities in government schools of rural Ludhiana by building separate toilets for girls, where no *Urban areas and private schools do not fall under such amenities exist. the purview of this Program. 12,723 Satya Bharti Abhiyan – Key Performance Indicators: Households benefited Number of individual toilets handed over 12,723 Number of direct beneficiaries* 63,050 Villages covered 559 559 Girls’ toilets constructed in Government Schools 14 Villages covered Data as of March 31, 2016, with total figures from inception in August 2014. *User numbers as reported by individual households at the time of handing over of the toilet.

Key Achievements Details of individual toilets constructed by Bharti Foundation • Quantitative targets - are uploaded on the Government’s Satya Bharti Abhiyan has been able to deliver following targets: Swachh Bharat Mission data website (http://sbm.gov.in/ SBMReport/Report/Physical/ Year Individual Toilets Girls’ Toilets Villages No. of SBM_TargetVsAchievement.aspx). Handed Over Handed Over Impacted Beneficiaries As on March 31, 2016, details of 2015-16 11,644 14 489 58,734 80% (approx.) of the constructed 2014-15 1,079 - 70 4,316 toilets have been updated. Details Total 12,723 14 559 63,050 of the toilets constructed by Bharti Foundation can also be • 14 Government Schools identified by the state education department accessed at http://sbm.gov.in/cfd/ were provided separate toilet blocks for girl students. RptCorporateContribution.aspx.

policy, Mohali has been set up as a while increasing awareness of every V. Higher Education Programs partnership between Indian School of individual’s constitutional right to legal Bharti Foundation partnered with Business and Bharti Enterprises, with defence. This is a unique corporate Indian Institute of Technology, Delhi Fletcher School of Law and Diplomacy, initiative at the national level and in 2,000 to set up the Bharti School Tufts University (USA) as its partner hopes to fulfil the Hon’ble Prime of Telecommunication Technology school. Minister’s Vision of ‘Sabka Nyaya’ – and Management, IIT Delhi. The Access to Justice for all. The Board Foundation has also set up the Bharti comprising eminent members from Centre for Communication, Bombay VI. Nyaya Bharti legal and other professional field in partnership with IIT Bombay. Nyaya Bharti was launched in is chaired by Justice A. S. Anand The Foundation also recognises November 2015 to help deserving (Retired Chief Justice of India) guiding and awards exceptionally talented and underprivileged undertrials, the strategy for the project. This is students to pursue studies at The languishing in jails across the implemented by a panel of young Cambridge University, UK, through country for minor offences. The aim lawyers who have been engaged to the Manmohan Singh Bursary Fund. is to provide them with legal and work with the judicial system and In addition, Bharti Institute of Public financial support and assistance, courts to implement the same.

32 Annual Report 2015-16 02-39 Bharti Airtel Limited Corporate Overview 40-125 | Statutory Reports 126-355 | Financial Statements

Airtel Connect

Airtel Delhi Half Marathon School Program. Over the last eight The Airtel Delhi Half Marathon ADHMs, as many as 6,325 employees (ADHM) has created an impressive comprising 217 teams from 77 platform to bring together corporates, corporates have run for us, with many individuals, employees and students of them consistently supporting us. of schools and colleges to raise awareness about the Satya Bharti School Program, raise funds and also enjoy the marathon run. 6,325 Bharti Foundation’s theme for ADHM Employees have run for 2015 was centred on celebrating 10 us, over the last eight successful years of the Satya Bharti ADHMs

Young Leader Program It is a two-week program (part of corporate induction) in which new 43 team members of Bharti Airtel engage as volunteers to support various Young Leaders initiatives of Bharti Foundation. This volunteered this year in year 43 Young Leaders volunteered 43 Satya Bharti Schools in 43 Satya Bharti Schools in Punjab, in Punjab, Haryana and Haryana and Uttar Pradesh. Uttar Pradesh.

ACT (A Caring Touch) It is an employee payroll giving program for Bharti Group of Companies. The Program encourages 3,934,120 7.61 Mn employees to give back to society Employee Participation Total contribution in terms of money, time, skills or towards Satya Bharti knowledge. In FY 2015-16, Bharti School Program Airtel employees have contributed ` 7.61 Mn towards the Satya Bharti School Program and ` 0.36 Mn was provided to other NGOs. 3,675,870 Employer Participation

Compassionate Leadership girls from impoverished families of for the Blind, Save life Foundation, Helping the Disadvantaged Uttarakhand. The School’s vision is SOS Children Villages of India, The We have started a scholarship to teach learners to be pluralistic, Banyan and IDIA Charitable Trust, programme for underprivileged creative, interdependent and capable among others. students of Footwear Design and citizens with a global outlook. We Development Institute (FDDI), partnered and supported the school’s Chhindwara district, Madhya educational mission. Contributing to Social Welfare Pradesh. FDDI is a leading design and Carnegie India is the 6th international management institution and conducts centre of the Carnegie Endowment for various professional programmes Caring for the Elderly International Peace. The organisation of international standards. Over Anubandh, situated on the outskirts is engaged in high-quality public 100 underprivileged students were of Jodhpur, helps senior citizens policy research on national, regional, granted scholarship during the deserted by their families. We and global issues. During the year, we FY 2015-16. Besides, under the partnered and supported Anubandh supported their initiatives. ‘Campus to Corporate’ programme, in furtherance of their initiatives. the underprivileged students of FDDI were mentored and provided with placement assistance. Supporting the Community We also partnered and supported various programmes and initiatives Investing in Talent of charitable institutions such as Him Jyoti School provides free Telangana Yuvathi Mandali, CRY, value-based education to bright HelpAge India, National Association

Corporate Social Responsibility & Sustainability 33 Transformational Network

Good Samaritans Initiatives by Airtel Circle Offices

Digital Empowerment At Bharti Airtel, we have partnered with the Government of Andhra Pradesh for a mobile literacy digital mission in collaboration with the Society for Eradication of Rural Poverty. As part of this, we rolled out ‘e-Shakti’, an initiative to build mobile internet awareness and literacy among the women of Andhra Pradesh.

Our zonal teams have since then been actively involved in spearheading 500,000+ training sessions in every district of the Women trained across Madhya state. During FY 2015-16, our teams Pradesh, Andhra Pradesh and trained 360,000 women in all 13 and celebrate with us, having dinner districts of the state, an encouraging Rajasthan in FY 2015-16 and dancing. The Airtel employees achievement in such a time span. with families engage and have a great Time for Celebrations time with them. This activity helps We also partnered with the Various initiatives were undertaken employees to engage with street kids Government of Madhya Pradesh to at different locations across India, and old-age homes and spread smiles take e-Shakti Abhiyaan to the women celebrating festivals and events. To by doing small activities at local end. of the state. The training sessions, celebrate Children’s Day and Diwali conducted by Airtel’s quality trainers with the kids, the teams bearing gifts focused on the basics of internet from Airtel Circle Office at Jaipur, Community Greening and its uses, awareness of various Jodhpur and Alwar zones went to four We have always been proactive in government portals, introduction to different Satya Bharti Schools and supporting green initiatives across apps and social media. Over 149,000 shared various gifts with children. We all geographies where we operate. women were trained across 23 also celebrated Durga Puja and were In line with that overriding vision, our districts of Madhya Pradesh so far. privileged to be part of the Sarathi Jaipur team spearheaded multiple Socio Trust in Bengaluru. tree plantation drives to make the city The similar initiative was undertaken by a cleaner and greener place to reside Rajasthan Circle in its Kota Zone, which Kids of Prakash School over the last in. The participation was enthusiastic would focus on the district’s women as many years, come to our office ground and the outcome encouraging. well as men and college students.

Joy of Giving Our Rajasthan team celebrated the Joy of Giving week with much fanfare. The team interacted with children at various Satya Bharti Schools and sought from them the wishes that they would want to be fulfilled. These wishes were put on a ‘Wish Tree’ and were fulfilled by our team members by converting those wishes to ‘Wish Fruits’.

34 Annual Report 2015-16 02-39 Bharti Airtel Limited Corporate Overview 40-125 | Statutory Reports 126-355 | Financial Statements

Swachh Bharat At Bharti Airtel, we are committed to translate the vision of Swachh Bharat into an everyday reality. Airtel employees participated in a cleanliness drive at Technology Park office under Swachh Bharat Abhiyaan in FY 2015-16. We will continue to undertake more such initiatives for a cleaner, prosperous India.

Blood Donation As a part of our community uplift Periodic blood donation camps initiatives, we help create jobs for are also organised, wherein circle `958,735 local youth closer to their homes; employees donated their blood; and donated by our Bihar and so that they don’t need to migrate helped save lives. In FY 2015-16, our Jharkhand Circles to the from their native places. We will Gujarat team organised two camps; Chief Minister’s Relief Fund continue to invest more resources and and was able to collect 50 units each. expertise to generate employment Besides, this initiative has helped our on behalf of Bharti Airtel for opportunities for India’s youth, employees count on blood banks in the rehabilitation of victims especially for those in rural regions. their hour of need. of Nepal’s earthquake We also regularly organise health Disaster Relief Sabarkanta and Morbi, the network camps to ensure holistic welfare. Our The unprecedented rains and was significantly impacted with power last camp benefited about 1,700 consequent floods in caused outages in over 2,900 villages. Team retailers and distributors. We will unimaginable destruction, depriving Airtel Gujarat, and NSN continue to organise such camps a huge proportion of the population worked diligently in this hour of need. across areas of our operation. of even bare essentials of life. Team Over 50% network was restored within Kerala and Tamil Nadu (KTN) rose just 48 hours. Airtel was among the We have also commenced a to the occasion and protected few first to restore connectivity, when Scholarship Programme for kids employees. They also contributed many locations were drowned under where our partners can have their to bring Chennai and Cuddalore water. kids enrolled in this programme for back to normalcy. The rescue team cash rewards. Close to 40 children worked with local support groups, Airtel NESA launched a flood relief benefited from this programme last police action groups and community campaign in North . The year. Besides, Republic Day, Children’s volunteer groups to help save lives. team volunteered one day for flood Day, Back to School and other relief campaign at adversely affected programmes are organised regularly. Our Bihar and Jharkhand Circles Ampati district in South West Garo Our teams even volunteered to be donated ` 958,735 to the Chief Hills, Meghalaya. The campaign was invigilators for a Teacher Subject Minister’s Relief Fund on behalf of conducted, along with government Knowledge Test across four locations Bharti Airtel for the rehabilitation officials. in Punjab. of victims of Nepal’s earthquake. Airtel also initiated 48 hours of free Holistic Welfare network usage for all calls made to We took several initiatives like Nepal, to facilitate relief work and ‘Each One Teach One’ and Azaadi communication in the disaster hit area. Campaign, to enhance digital literacy across India’s cities and towns. We will Gujarat suffered heavy rains and be driving more such initiatives in step flood in July 2015. At areas like with the Government’s Digital India Banaskantha, Patan, Kutch, Mehsana, mission.

Corporate Social Responsibility & Sustainability 35 Transformational Network

B. Environmental Conservation

Environmental degradation and climate change is a critical challenge that industries and governments across the world must focus on; and find sustainable solutions with greater urgency and unanimity. The Climate Summit in Paris in 2015 articulated this concern. Bharti Airtel is partnering with governments and other relevant stakeholders worldwide to help conserve the environment.

Our priorities comprise:

I. Promoting the use of renewable energy to reduce dependence on fossil fuels.

II. Exploring innovative technologies in network infrastructure to cut down emissions.

III. Working collectively with infrastructure partners to reduce energy consumption and resulting carbon emissions.

IV. Sharing network infrastructure with partners to reduce emissions.

V. Focusing on judicious resource management to wage a war against wastage.

outdoor sites. Over 33,000 sites have Putting Faith in Green Energy been converted to outdoor till date, 33,000+ reducing the energy consumption by Tagged nearly 375 sites green till sites have been converted about 25%. Sites are being converted date by installing green energy to outdoor till date mostly by installing FCU, NCU and solutions and eliminating the use IP55 cabinets for switching off the of diesel. air conditioners, thus making them Deployed over 150 own sites with feasible for installing green energy Installed solar rooftop power plants advanced VLRA Battery Solution, solutions like solar, Li-ion, among at 14 Main Switching Centre resulting in over 370 sites with others. This initiative also forms part (MSC) locations, expanding the such solution till date. of Airtel’s War on Waste. total installed capacity to 0.805 MWp; these on-grid solar plants Rationalised air-conditioning on are generating over 0.82 Mn units, over 300 own sites to reduce the Infrastructure Sharing Our constant endeavour is to promote reducing the emission of 650 tons consumption by 10%. infrastructure sharing, along with our annually. partners. Our efforts with partners to Completed trial on solar natural consolidate passive infrastructure and Deployed nearly 700 cumulative cooling to reduce energy demand. green initiatives have considerably sites with solar and battery hybrid, reduced carbon emission in the entire Li-ion and biomass solutions till date, Piloted the use of thermocouple industry. This initiative not only reduces reducing over 16,000 tons annually. cooling unit at over 450 own and operational cost for service providers partner sites. by eliminating operational waste, but Continued to focus on renewable also promotes optimal use of resources. sources to enhance energy efficiency; Green Power Wheeling Innovative Network In FY 2015-16, 45% incremental sites agreements for the procurement of Technologies were deployed as sharer sites, reducing green energy, have been made for the energy consumption by a minimum three Data Centres and one MSC Conversion of Indoor Sites 30% over standalone sites. location; planning to extend the to Outdoor initiative to nine more sites in Airtel has been partnering with the coming year. Tower Cos to convert indoor sites to

36 Annual Report 2015-16 02-39 Bharti Airtel Limited Corporate Overview 40-125 | Statutory Reports 126-355 | Financial Statements

Outdoor Site Deployment We focus on minimising end-to- During the year, over 90% of the end traceability and recycling the new sites were deployed as outdoor, waste generated by our operations. eliminating air-conditioner usage. We monitor on a continuous basis the generation of the e-waste, its In addition, 80% of the sites have transportation, processing and been installed with Auto-TRX recycling comprehensively. shutdown feature, which ensures that the TRX remains switched off during Any e-waste generated from non-peak hours. technology upgradation, capacity augmentation and others is recycled as per the Waste Electrical and Towards a Greener World Electronic Equipment (WEEE) norms. We have a stringent system of 3 Mn+ Project Green Cities selection of recyclers: recyclers have Project Green City was launched by Airtel mobility postpaid to be legally compliant; they should Indus Towers and few customers have opted for have their relevant licences in place years back; and over 37,600 sites have e-bills over the past two years with world-class facilities, procedures been tagged as green sites till date. and practices to treat e-waste in an Over 12,800 sites were converted to environmentally sound manner. outdoor sites during the year under review, thus enhancing our energy In FY 2015-16, over 1,700 tons We have a substantial share of efficiency significantly. of e-waste generated from IT and customers opting for paperless billing. network infrastructure was recycled Over 3 Mn Airtel mobility postpaid Resource Management through authorised recycling partners. customers have opted for e-bills over the past two years. In addition, we also E-waste E-bills have nearly 70% of our total postpaid The ever increasing volume of We are continuously evaluating the customers on paperless bills till the physical as well as e-waste generated impact of our operations on resources end of FY 2015-16, representing over in contemporary society impacts and environment. Towards this 24% increase in number of customers the environment considerably. At end, we took significant steps like opting for paperless bills over Airtel, we deeply acknowledge our reducing paper usage and wastage the previous financial year. responsibility towards judicious by popularising paperless billing. resource management for a cleaner, We have been encouraging our greener planet. customers to opt for e-billing and e-transactions. We provide flexibility for our customers to opt for paperless bills at any point in the life cycle.

Corporate Social Responsibility & Sustainability 37 Transformational Network

Driving Sustainable Transformations Globally

We are committed to bring enduring socio-economic transformation to help elevate the quality of life for millions of people across the world. We are translating our commitment into reality on ground through several programmes, which are need-based and produce measurable outcomes for the community.

Africa

Airtel Africa is committed to functioning in a socially responsible “Our CSR journey has just started, but it is an encouraging manner to enable communities in beginning. Over the upcoming fiscal, we will see our CSR the countries in which we operate. teams integrate technology related support into the CSR Our focus areas comprise education, programmes. This alignment will create an impact on society welfare of the youth and health. through the technology that we make available”. Christian de Faria, Executive Chairman, Airtel Africa

ICT Training in Chad: Airtel partnered with the Ministry of Education in Chad to train 5,000 youth in the country to improve their ICT skills.

Airtel Fursa: is encouraging entrepreneurship among youth (18-24 years) in the country. Education

Flagship Programmes Airtel Catapult Your Business Competition Ghana: The Adopt-a-School flagship Is a transformative start-up In Uganda, we organised health programme has reached over accelerator programme. camps in partnership with Hinds 27,000 students, with more than Feet Programme in remote 700 teachers. Our Airtel Touching Lives areas of the country, so that Programme: the underprivileged are offered Airtel Kenya in partnership with the Reaches out to over 70 Mn viewers, a chance to test and undergo British Council and Global Peace focusing on empowering the medical screening for various Foundation provided internet underprivileged. diseases, such Hepatitis B access to students, teachers and screening and shots, dental, eye communities. Health check-ups and general medicine. There was also screening for Airtel Zambia in partnership with Flagship Programmes HIV, diabetes, ulcers and blood the British Council, Samsung Airtel DRC launched ‘Airtel Santé pressure. Electronics and the Ministry of info’ a mobile health service Education has reached over offered for its subscribers. The Airtel Madagascar in partnership 20,000 students and teachers with service offers free consultations with Mobile Hi-Life has developed their ICT mobile internet bus. and vaccinations, in partnership mobile clinics to help the with the Medical Action Board community get access to better Youth Development Association. healthcare.

Flagship Programmes We continued to support the Train My Generation: survivors of Ebola epidemic by 5,000 young Gabonese will providing start-up capital and be trained in information and other resources to 50 women communication technology (ICT) entrepreneurs, especially Ebola skills over the next three years. widows.

38 Annual Report 2015-16 02-39 Bharti Airtel Limited Corporate Overview 40-125 | Statutory Reports 126-355 | Financial Statements

Awards 2014 by the Employers Consultative Association of Malawi (ECAM).

Airtel Zambia: 1st overall award for companies / institutions held in high esteem as good corporate citizen, based on their corporate responsibility initiatives and investments over the past 12 months.

Ghana CSR Excellence Awards – Best CSR award in Education.

Ghana Institute of Public Relations Excellence Awards – Best Community Relations programme of the year – Touching Lives.

Accolades Nigeria SERA 2015 – Best Recognition by the African Union Company in CSR health 5,000 for Airtel’s Ebola related initiatives intervention. Airtel partnered with the in Africa. Ministry of Education in CSR Africa Leadership Awards Chad to train 5,000 youth Airtel Malawi was awarded a – Presented to Michael Okwiri, in the country to improve premium Awardee in the Corporate Corporate Communications and Social Responsibility category CSR Airtel Africa. their ICT skills during the Top Employers

Bangladesh

Airtel Bangladesh is committed to The crockeries and utensils were sent partner various community and to three branches of Bidyanondo (at environmental initiatives in Bangladesh various locations of Bangladesh), to ensure holistic wellbeing for all. benefiting 500 students. During the year, the Company provided crockeries and cooking utensils to facilitate the Food for Education Programme of Bidyanondo (learn with fun), a non-profit organisation. The programme helps educate children from disadvantaged sections of society.

Sri Lanka

The Company collaborates with The effort proved to be encouraging various stakeholders in Sri Lanka with over one million children visiting to drive community uplift and the hospital annually for treatment environment conservation initiatives. and care, leaving happy and healthy.

The Lady Ridgeway Hospital is To spread the message of joy, considered to be world’s largest team Airtel Lanka also celebrated paediatric government hospital; Christmas with disadvantaged it provides free medication and children of few orphanages and hospitalisation. Bharti Airtel Lanka paediatric hospitals. refurbished the hospital into a more child-friendly environment. The Company also contributed several new TVs, furniture and equipment.

Corporate Social Responsibility & Sustainability 39 Transformational Network

Business Responsibility Report

Stakeholder Engagement

Customer Value

Products Lifecycle Sustainability

Employees’ Wellbeing

Ethics, Transparency and Accountability Business Responsibility

Environment

Human Policy Rights Advocacy

Inclusive Growth

Traansformmation foor us haas a deep social connotation as well. We are acting ass an enabbler of socio-ecconomic change through our business priorities as weell as need-baseed community interventions. These interventions are well cooordinated with the parrticipation of all relevant stakeholders, and have GHHǂQLWHPPHDVXUDEEOHRXWFFRPHV:HZLOOFRQWLQXHWRLQYHVWPRUHUHVRXUFHVWR deeliver on the exppectatioons of all stakeholders.

- Sunil Bharti Mittal

40 Annual Report 2015-16 40-125 Bharti Airtel Limited 02-39 | Corporate OverviewStatutory Reports 126-355 | Financial Statements

Section A General Information about the Company 1. Corporate Identity Number (CIN) of the Company: L74899DL1995PLC070609 2. Name of the Company Bharti Airtel Limited 3. Registered Address Bharti Crescent, 1, Nelson Mandela Road, Vasant Kunj, Phase II, New Delhi - 110 070 4. Website www.airtel.com 5. Email id FRPSOLDQFHRǎFHU#EKDUWLLQ 6. Financial Year reported 2015-16 Sector (s) that the Company is engaged in: Telecommunication Services – Mobile telecommunication, nj[HGOLQHVHUYLFHVDQGWHOHFRPPXQLFDWLRQHQWHUSULVH solutions. Direct-to-Home Services (through Subsidiary Company). Payments Bank (through Subsidiary Company). Passive Infrastructure Services (through Subsidiary Company). 7. List three key products / services that the Company a) Mobile Services manufactures / provides (as in balance sheet) b) Broadband Services c) Enterprise Services 8. Total number of locations where business activity is a. Number of International Locations - The Company has undertaken by the Company its business operations in 20 countries that includes India, Sri Lanka, Bangladesh and 17 countries in the African continent. b. Number of National Locations - Headquartered in New Delhi, Bharti Airtel Limited has its business activities in all 22 licensed telecom service areas. 9. Markets served by the Company Besides India, the Company also has operations in Africa and South Asia.

Section B Financial Details of the Company 1. Paid up capital ` 19,987 Mn 2. Total turnover ` 603,002 Mn 3. 7RWDOSURnjWDIWHUWD[HV ` 75,465 Mn 4. Total Spending on Corporate Social Responsibility 0.57% &65 DVSHUFHQWDJHRIDYHUDJH1HWSURnjWRIWKH &RPSDQ\IRUODVWnjQDQFLDO\HDUV 5. /LVWRIDFWLYLWLHVLQZKLFKH[SHQGLWXUHLQIRXUDERYH Promotion of education. has been incurred: Rural sanitation programme. Higher and technical education. Child welfare programmes. Disaster relief initiatives. Community development programmes. Environmental initiatives and awareness. Employability and entrepreneurship.

Business Responsibility Report 41 Transformational Network

Section C Other Details 1. Does the Company have any Subsidiary Company / Companies? Bharti Airtel Limited had 17 direct and 92 indirect subsidiary companies, as on March 31, 2016.

2. Does the Subsidiary Company / Companies participate in the BR initiatives of the parent company? Almost all subsidiary companies of Bharti Airtel, either directly or along with Airtel, participate in the BR initiatives.

3. Do any other entity / entities (e.g. suppliers and distributors, among others) that the Company does business with participate in the BR initiatives of the Company? Bharti Airtel supports and constantly encourages its partners to undertake sustainability and CSR initiatives in their areas of operations. At present, the Company’s infrastructure and facility management partners support its drive towards environment protection which represents less than 30% of all our partners.

Section D Business Responsibility Information 1. Details of Director / Directors responsible for BR a) Details of Director / Directors responsible for the implementation of BR policy / policies DIN Number 00042494 Name Mr. Rakesh Bharti Mittal Designation Director

b) Details of the BR head: DIN Number (if applicable): N.A. Name Mr. Sameer Chugh Designation Director – Legal & Regulatory Telephone No. +91 124 4243188 E-mail id VXVWDLQDELOLW\#DLUWHOFRP

2. Principle-wise (as per NVGs) BR Policy / Policies

Principle 1 Principle 2 Principle 3 Ethics, Transparency Products Lifecycle Employees’ Wellbeing and Accountability Sustainability

Principle 4 Principle 5 Principle 6 Stakeholder Engagement Human Rights Environment

Principle 7 Principle 8 Principle 9 Policy Advocacy Inclusive Growth Customer Value

42 Annual Report 2015-16 40-125 Bharti Airtel Limited 02-39 | Corporate OverviewStatutory Reports 126-355 | Financial Statements

(a) Details of Compliance (Reply in Y/N)

Sl. Questions P1 P2 P3 P4 P5 P6 P7 P8 P9 No. 1. Do you have a policy / policies for… YYYYYYYYY 2. Has the policy been formulated in consultation with the YYYYYYYYY relevant stakeholders? 3. Does the policy conform to any national / international YYYYYYYYY standards? If Yes, specify? (50 words) 4 Has the policy been approved by the Board? If yes, has it been signed by MD / Owner / CEO / appropriate Board YYYYYYYYY Director? 5 'RHVWKH&RPSDQ\KDYHDVSHFLnjHGFRPPLWWHHRIWKH %RDUG'LUHFWRU2ǎFLDOWRRYHUVHHWKHLPSOHPHQWDWLRQ YYYYYYYYY of the policy? 6 Indicate the link for the policy to be viewed online? YNNNYNYYN 7 Has the policy been formally communicated to all YYYYYYYYY UHOHYDQWLQWHUQDODQGH[WHUQDOVWDNHKROGHUV" 8 Does the Company have in-house structure to YYYYYYYYY implement the policy / policies? 9 Does the Company have a grievance redressal mechanism related to the policy / policies to address Y-YYY- - -Y stakeholders’ grievances related to the policy / policies? 10 Has the Company carried out independent audit / evaluation of the working of this policy by an internal or YYYYYYYYY H[WHUQDODJHQF\"

The policies are formulated with detailed consultation with relevant stakeholders and benchmarking across the industry. They are developed and aligned to applicable legal and regulatory requirements, and guidelines, SEBI listing regulation and our internal mandates. All policies are administered under the overall supervision of the Airtel Management Committee (AMB) of the Company, headed by the Managing Director DQG&KLHI([HFXWLYH2ǎFHU7KH$XGLW&RPPLWWHHRIWKH%RDUGDORQJZLWKRWKHU%RDUG&RPPLWWHHVUHYLHZVLPSOHPHQWDWLRQRISROLFLHV The following Policies can be viewed on our website www.airtel.com and www.bharti.com 1) Code of Conduct Policy 2) Code of Conduct Policy for Partners 3) CSR Policy 4) Ombudsperson Policy & Process.  ([FHSWIRUSROLFLHVOLVWHGDERYHDOORWKHUSROLFLHVDUHPHDQWIRULQWHUQDOFRQVXPSWLRQRIWKHHPSOR\HHVDQGDUHDYDLODEOHRQFRPSDQ\šVLQWUDQHW$OOSROLFLHV KDYHEHHQSHULRGLFDOO\FRPPXQLFDWHGWRWKHUHOHYDQWLQWHUQDODQGH[WHUQDOVWDNHKROGHUV  $OOWKHSROLFLHVDUHRZQHGE\WKHUHVSHFWLYH$0%PHPEHUDQGWKHLUVHQLRUOHDGHUVKLSWHDPLVUHVSRQVLEOHIRUWKHHNjHFWLYHLPSOHPHQWDWLRQRIWKHSROLF\  $Q\FODULnjFDWLRQVRUJULHYDQFHVUHODWHGWRHLWKHURIWKHSROLFLHVDUHDGGUHVVHGE\WKHUHVSHFWLYHOHDGHUVKLSWHDPPHPEHUDQGLIQRWDGGUHVVHGWRVDWLVIDFWLRQ can be escalated to the Ombudsperson. All policies and their implementation is audited by an independent internal audit team who in turn reports issues, if any, to the Board Audit Committee.

3. Governance related to BR Section E Indicate the frequency with which the Board of Directors, Committee of the Board or CEO assess the Principle-wise Performance Company’s BR performance. (Within 3 months, 3-6 months, annually, more than 1 year) Principle 1 The CSR Committee and the Board assesses and Ethics, Transparency and Accountability reviews the BR performance annually and gives strategic direction to the Company on its BR initiatives, if required. 7KH &RPSDQ\šV &RGH RI &RQGXFW &R&  DǎUPV LWV commitment to the highest standards of integrity and Does the Company publish a BR or a Sustainability ethics. Bharti Airtel has a ‘zero tolerance’ approach towards Report? What is the hyperlink for viewing this report? bribery and corruption. It strictly prohibits making any sort How frequently is it published? of facilitation payment. The Policy on ‘Improper Payments’ The Company publishes an annual Sustainability Report is non-negotiable for the Company; and it is committed in accordance with the Global Reporting Initiative to comply with the same in letter and spirit. The CoC (GRI) Framework. The report has been uploaded on is developed at the Group level and is applicable for all the Company’s website, and can be viewed at LQWHUQDODQGH[WHUQDOVWDNHKROGHUV$GKHUHQFHWRWKH&RGH www.airtel.in/sustainability. is mandatory for all employees, subsidaries, suppliers and contractors, service providers, channel partners and their employees. All employees have to undergo mandatory HFHUWLnjFDWLRQ RQ &R& WR DǎUP WKHLU FRPPLWPHQW WR WKH

Business Responsibility Report 43 Transformational Network

&RGH%HVLGHVWKHRǎFHRIWKH2PEXGVSHUVRQVHUYHVDVDQ The Company also gives utmost importance to community LQGHSHQGHQWIRUXPIRUHPSOR\HHVDVZHOODVRWKHUH[WHUQDO health and safety. It acknowledges the growing concerns due stakeholders including associates, strategic partners and WRWKHDOOHJHGH[SRVXUHWRHOHFWURPDJQHWLFnjHOGV (0) DQG suppliers to raise concerns and complaints about improper believes in maintaining transparency. It continues to monitor practices such as bribery / corruption, which are in breach of research outcomes and share updated research-based the Bharti Code of Conduct. The Company’s Consequence information with its stakeholders. The Company adheres Management Policy deals with violation of the Code of to the emission norms prescribed by the International Conduct, and misreporting or non-reporting of critical Commission on Non-ionizing Radiation Protection LQIRUPDWLRQ 7KLV LQFOXGHV njQDQFLDO LPSURSULHW\ LQFOXGLQJ (ICNIRP); which is 10-times stricter for India, compared to bribery or kickbacks. technologically-advanced countries. In FY 2015-16, over 17,590 sites were audited by the TERM Cells, and almost During FY 2015-16, 16 allegations of corruption / bribery 99.9% sites were found to be compliant with emission were received. Investigations were completed in 15 cases and norms. Also, the Company, in partnership with the Cellular actions were initiated as per the Consequence Management Operators Association of India (COAI), conducts several Policy. One case is currently under investigation. awareness building sessions over the issue. War on Waste is one of the key business priorities of Bharti Airtel. In line with this, the Company continues to take Principle 2 initiatives and develops innovative technologies to minimise Product Lifecycle Sustainability waste that is generated by its operations. This will ensure end-to-end traceability and recycling of both physical waste and e-waste. Digital connectivity is becoming integral to economic and social development. Over the years, Bharti Airtel through Due to the nature of Bharti Airtel’s operations, a large its services namely mobile, broadband, enterprise services volume of e-waste is generated by the Company. The and DTH has served as a catalyst to bridge the digital divide. e-waste (electronic components, telecom equipment or IT Its robust network and far-reaching distribution helped in hardware) that results from technology upgradation and strengthening the entire process. Besides, the Company is capacity augmentation is recycled as per Waste Electrical FRQVWDQWO\H[SDQGLQJLWVERXTXHWRIVHUYLFHVDQGHQKDQFLQJ and Electronic Equipment (WEEE) norms. In FY 2015-16, its communication technologies to make a positive impact over 1,700 tons of e-waste generated from IT and network on the communities it works with. infrastructure was recycled through authorised recycling partners. Bharti Airtel is committed to socio-economic transformation to help elevate the lives of millions. The Company takes a The Company promotes the use of electronic billing and online proactive approach to preserve the environment and reduce payment methods to reduce paper usage that results from negative fallouts of the lifecycle of its products and services physical copies of bills and receipts. In addition, an automated across the value chain. It believes in responsible growth that que management based printing solution is in place, besides encourages social wellbeing, while promoting innovation telecommunication services like tele-conferencing and DQGHǎFLHQF\7KURXJKYDULRXVYDOXHDGGHGVHUYLFHVRNjHUHG video-conferencing. The telecommunication services are on the mobile and broadband platform, Bharti Airtel aims at used to ensure minimal business travel, thus cutting down JHQHUDWLQJDZDUHQHVVDQGRNjHULQJVHUYLFHVLQWKHDUHDVRI carbon emission. mobile commerce, health, education and agriculture, thus, Bharti Airtel works closely with its partners towards ensuring DXJPHQWLQJ WKH HNjRUWV RI WKH JRYHUQPHQW WR H[WHQG WKH sound and sustainable procurement procedures, built on a reach and quality of basic life services to the population. solid foundation of the Company’s policies and principles. With a host of value-added services oriented towards rural Nearly 90% of the Company’s suppliers are based in India, and communities, Bharti Airtel is perceived as an important driver over 80% of the procurement for the year, in terms of value, of socio-economic empowerment in the country. Through was from these India-based partners. It constantly strives to the recent license received by Airtel Payments Bank, the build a responsible and sustainable supply chain. One of the Company aims to take pioneering steps towards easing important parameters of supplier selection at Airtel is the WKHDFFHVVWRnjQDQFLDOVHUYLFHVIRUDPDMRULW\RIXQEDQNHG VXSSOLHUšV DFKLHYHPHQW RI PDQDJHPHQW FHUWLnjFDWLRQV VXFK as TL9000, ISO 9001, ISO27001, ISO 14001, OHSAS18001 population. Similarly, services such as mEducation, mFarmer DQG 5R+6 6XSSOLHUV ZLWK FHUWLnjFDWLRQV IRU KLJK VWDQGDUGV have used mobile and DTH platforms to transform the LQWKHLUDUHDVRIH[SHUWLVHDUHSUHIHUUHGDQGWKRVHVHHNLQJ traditional service delivery model and reduce the cost of FHUWLnjFDWLRQV DUH DVVLVWHG LQ XQGHUJRLQJ D FHUWLnjFDWLRQ DFFHVVWRPLOOLRQVRISHRSOHLQIDUǍXQJUXUDODUHDV,.6/7KH SURJUDPPHZLWKLQDGHnjQHGSHULRG Company’s joint venture initiative with IFFCO - the world’s ODUJHVWIHUWLOL]HUFRRSHUDWLYHIHGHUDWLRQŞLVDJUHDWH[DPSOH RI IDUPHU HPSRZHUPHQW 2YHU  0Q IDUPHUV EHQHnjW e-Shakti – Driving Digital Literacy directly from its information services in weather forecasting, commodity prices, agronomy, dairy farming and forestry. This initiative aims at building awareness about the basics of Internet, simplicity of internet, Bharti Airtel’s network transformation programme, ‘Project usefulness and presence of content relevant to Leap’ focuses on a series of new initiatives towards a women on internet and providing them with live greener environment and building a sustainable network for experience on their own handsets. the future. It is in continuation with the Company’s long-term commitment towards ‘Green Network’ initiatives. Under In association with various state governments, over 500,000 women have been trained across ‘Project Leap’, Bharti Airtel not only plans to establish a world- several districts in Madhya Pradesh, Andhra class and future-ready network, but also to bring down its Pradesh and Rajasthan. FDUERQIRRWSULQWHPLVVLRQE\RYHUWKHQH[WWKUHH\HDUV

44 Annual Report 2015-16 40-125 Bharti Airtel Limited 02-39 | Corporate OverviewStatutory Reports 126-355 | Financial Statements

complainant. However, the accused quit the organisation on Principle 3 his own accord post the conciliation closure. Employees’ Wellbeing During the year, no complaints were received by the 2PEXGVSHUVRQ RǎFH IRU FKLOG ODERXU IRUFHG ODERXU RU discriminatory employment. Bharti Airtel acknowledges the immense potential of its human capital, and therefore, ‘Win with People’ is one of WKHnjYHNH\EXVLQHVVSULRULWLHVRIWKH&RPSDQ\%KDUWL$LUWHO believes that its success depends on its ability to develop NQRZOHGJH VNLOOV DQG H[SHUWLVH RI LWV HPSOR\HHV 7KH Company strongly believes ‘Win with People’ is essential 155+ to continue winning in the market. This belief translates Unique training interventions for the in ensuring that every business vertical is equipped with Company’s employees, of which over right talent, which is both competent and engaged. The 130 comprised functional training and Company achieves this objective by undertaking various 25 competency-based and leadership initiatives for talent development, employee engagement and communication. training. This approach has helped the Company in building an organisation, which is not only inclusive and entrepreneurial EXWPRVWLPSRUWDQWO\H[SHULHQFHGDVDQHTXDORSSRUWXQLW\ Category No. of No. of employer by its people. Bharti Airtel has consistently tried employees employees to create and promote an inclusive work environment for which which employees from diverse backgrounds to help them realise attended attended skill their full potential. The objective is to ensure that the - safety upgradation strong workforce of 18,179 employees are both skilled and trainings trainings engaged; and that the organisation is perceived as being inclusive, entrepreneurial and an equal opportunity employer. Permanent employees 7,433 8487 Permanent women 846 822 There were 4,968 subcontracted employees as on March employees 31, 2016. During the period, there were no temporary and casual employees. Casual / temporary / 5,495 - contractual employees Being in service industry, the Company does not have any Employees with 18 21 labour union or association in the organisation. However, disabilities employees have full access to management to raise their concern at any time without any fear / coercion. All the concerns or issue raised by employees are resolved satisfactorily. Principle 4 The Company is fully committed to the promotion of Stakeholder Engagement diversity across all levels of the organisation. There were 1,491 permanent women employees, which represented around 8% of the total workforce. A total of 123 people with Bharti Airtel’s sustainability approach has been carefully disabilities were employed at various company locations. developed through systematic engagement with To nurture workforce diversity, with a particular focus on stakeholders worldwide. The Company’s regular engagement gender, the Company has implemented practices and with its stakeholders allows it to identify, review and prioritise VXSSRUWV\VWHPVWKDWVSHFLnjFDOO\DGGUHVVWKHUHTXLUHPHQWV LWVVXVWDLQDELOLW\HNjRUWV,WPDNHVVXUHWKDWLWVVXVWDLQDELOLW\ of its women employees. This is backed by stringent policies VWUDWHJ\ LV DOLJQHG WR LWV VWDNHKROGHUVš H[SHFWDWLRQV DQG and procedures, which ensure the workplace environment GHPDQGV 7KH &RPSDQ\ HQVXUHV WKH HNjHFWLYHQHVV RI IUHHIURPVH[XDOKDUDVVPHQW the stakeholder engagement process by mapping its key The Company is fully compliant with the prevailing laws on LQWHUQDODQGH[WHUQDOVWDNHKROGHUVLQDVWUXFWXUHGPDQQHU WKHSUHYHQWLRQRIVH[XDOKDUDVVPHQWRIZRPHQDWZRUNSODFH Bharti Airtel engages with its stakeholders, both internal as The Internal Complaints Committee deals with all matters related to the subject in accordance with the tenets of the ZHOO DV H[WHUQDO QDPHO\ LQYHVWRUV FXVWRPHUV HPSOR\HHV law. The Company is fully compliant with the prevailing business partners and suppliers, government and regulators ODZVRQWKHSUHYHQWLRQRIVH[XDOKDUDVVPHQWRIZRPHQDW DQG FRPPXQLW\ WR JDXJH WKHLU H[SHFWDWLRQV VKDUH workplace. The Internal Complaints Committee deals with information and sustainability priorities, along with practices all matters related to the subject in accordance with the DQG SHUIRUPDQFH DQG H[SORUH DYHQXHV RI SDUWQHUVKLSV WR tenets of the law. The list of members of the Committee has achieve the goals. Concerns and feedback that the Company been communicated to all employees and also prominently receives from its key stakeholders get integrated into its GLVSOD\HG LQ WKH SXEOLF DUHDV RI DOO LWV RǎFHV %HVLGHV strategic business planning. This is performed through the Company has conducted awareness and training systematic stakeholder dialogue that helps in identifying the programmes for employees with respect to this law. Training material issues and prioritising potential risks, which can turn sessions were also conducted for all members of the Internal into long-term opportunity for business. In addition to the Complaints Committee on the legal and practical aspects to ongoing stakeholder engagement with all our stakeholders, enable the members to deal with investigations. Eight cases a formal stakeholder engagement materiality assessment is UHODWHGWRVH[XDOKDUDVVPHQWZHUHUHSRUWHGDQGLQYHVWLJDWHG performed once in every two years to gather the stakeholder during the year; and all procedures were followed. Guilt was requirements and map the same to our business priorities. HVWDEOLVKHGLQnjYHFDVHVDQGRIWKHVHIRXUZHUHVHSDUDWHG IURP WKHLU VHUYLFHV ZLWK WKH RUJDQLVDWLRQ ,Q WKH njIWK FDVH 7KH&RPSDQ\KDVLGHQWLnjHGWKHGLVDGYDQWDJHGYXOQHUDEOH there was a conciliation proceeding on the request of the and marginalised stakeholders through its association

Business Responsibility Report 45 Transformational Network

with Bharti Foundation, the philanthropic arm of Bharti partners, which are being suitably addressed by them. Also, (QWHUSULVHV $ VLJQLnjFDQW SRUWLRQ RI WKH EHQHnjFLDULHV RI the emissions / waste generated by the Company are within the Bharti Foundation and its programmes comprise the the permissible limits given by CPCB / SPCB. economically-challenged and disadvantaged groups, especially girl children. Please refer to the CSR section of the Detailed description of the Company’s intervention Annual Report for details on our intervention through Bharti towards reduction of carbon footprint can be found in Foundation. the CSR section of this Report and in the Planet section of Bharti Airtel’s Sustainability Reports available on www.airtel.in/sustainability. Principle 5 Human Rights Principle 7 Responsible Policy Advocacy Bharti Airtel adheres to the highest levels of ethical business practices as articulated by its Code of Conduct so as to achieve its performance with integrity. A strong commitment The Company works closely with all industry associations to human rights is embedded in the Company’s Code of and trade chambers to ensure that its public policy positions Conduct Policy, which lays down the acceptable behaviour complements and advances its sustainability and citizenship on various aspects including human rights. The Code of objective. In taking public policy positions, Bharti Airtel Conduct is applicable for all employees, associates, business strives to advance innovation, enhance competitiveness partners and Group NGO and they are required to comply and increase job creation, economic growth and sustainable with the Code, the relevant labour laws and human rights standards of living. Its policy agenda is centered on the regulations applicable in their geographies of operation. SURYLVLRQ RI QHWZRUN FRYHUDJH DNjRUGDEOH DFFHVV WR WKH No incidence of discrimination or human rights violation was FXVWRPHUVGLJLWDOLQFOXVLRQTXDOLW\RIVHUYLFHRNjHULQJVWDULNj UHFHLYHG E\ WKH &RPSDQ\šV 2PEXGVSHUVRQ RǎFH RU ZDV and environment, among others that are being discussed pending investigation as on March 31, 2016. and deliberated by the government, are likely to have a material impact on the Company’s business. The Company generally conveys its policy positions through Principle 6 its membership with the Cellular Operators Association of Protection of the Environment India (COAI). It also holds memberships of other industry associations like Confederation of Indian Industry (CII) and Federation of Indian Chambers of Commerce & Industry As a leading telecom provider in India, Bharti Airtel (FICCI). Internationally, Bharti Airtel is a member of the understands its responsibility to operate in an environmentally International Telecommunication Union (ITU) and GSM sustainable way by developing, promoting and utilising Association (GSMA). UHVRXUFHHǎFLHQW DQG HFRIULHQGO\ VHUYLFHV 7KH +HDOWK Safety and Environment (HSE) policy details our approach towards protection of the environment and is applicable for all employees of the Company and subsidiaries. As part Principle 8 of its energy and climate change mitigation strategy, the Support Inclusive Growth Company works closely with its infrastructure partners to ensure a sustained decline in GHG emissions. In addition, the &RPSDQ\ KDV DOVR LQWHQVLnjHG LWV HNjRUWV WRZDUGV UHGXFLQJ Multiple studies have shown that telecommunication LWVRSHUDWLRQDOIRRWSULQWLQFUHDVLQJUHVRXUFHHǎFLHQF\DQG services can play a pivotal role as one of the architects adopting green practices in areas where it operates. of an accelerated socio-economic growth. Technological platforms like mobile and internet improve governance, Various alternate and renewable energy sources are being communication, security, disaster relief; and contribute to H[SORUHGE\WKH&RPSDQ\šVQHWZRUNLQIUDVWUXFWXUHSDUWQHUV the overall strengthening of the socio-cultural ethos. to mitigate the dependency on diesel. Such sources of renewable energy include solar energy solutions, fuel 7RWKLVHNjHFWLQWKH&RPSDQ\ODXQFKHGWKHŠ%OXHSULQW cells, power management systems to optimise power for Social Inclusion’, which aimed at leveraging its network FRQVXPSWLRQ HQHUJ\HǎFLHQW '& GLHVHO JHQHUDWRUV DQG presence and distribution network to provide awareness free cooling units that reduce dependence and power DERXW EDVLF OLIH VHUYLFHV OLNH KHDOWK HGXFDWLRQ njQDQFLDO consumption by air-conditioners. inclusion and agriculture. Over the years, the Company has Reducing dependence on conventional sources of energy and PDGHUDSLGSURJUHVVDQGDOVRDXJPHQWVWKHHNjRUWVRIWKH LQFUHDVLQJRYHUDOOHQHUJ\HǎFLHQF\ZLOOKHOSWKH&RPSDQ\šV Government, public private groups, Bharti Foundation and partners remain competitive in the telecom infrastructure other stakeholders in the area of sustainability. EXVLQHVV,QDGGLWLRQWKHHNjRUWVRI,QGXV7RZHUVDQG%KDUWL While recalibrating the Company’s strategies to remain Infratel in energy saving have been instrumental in reducing aligned with its sustainability vision, it launched a the carbon footprint of the telecom industry collectively. comprehensive and a structured ‘Airtel Sustainability In FY 2015-16, the Company did not receive any legal notice Plan 2020’. The Plan outlines the Company’s corporate from pollution control boards. However, few notices were responsibility and how it aspires to empower millions more received pertaining to the operations of its infrastructure through social and economic development.

46 Annual Report 2015-16 40-125 Bharti Airtel Limited 02-39 | Corporate OverviewStatutory Reports 126-355 | Financial Statements

In addition to driving social inclusion, Bharti Airtel makes its presence felt in the communities it serves and also where Young Leaders its employees live and work. The Company is focused on creating a sustained, positive and deep-rooted impact on As part of corporate induction schedule, WKH VRFLHW\ DW ODUJH ,WV SKLODQWKURSLF HNjRUWV HPSOR\HH Bharti Airtel’s Young Leaders help the Satya volunteerism, and community outreach initiatives support Bharti Schools. In this two-week programme, WKH GHVLUH WR EH VHHQ DV D WUXVWHG SDUWQHU ş RQH WKDW volunteers assist the Satya Bharti School honours its commitments and takes pride in the role teachers to organise upcoming events, it plays in community wellness. With the aim to help the strengthen their english and basic computer communities actualise their true potential and become knowledge. Besides, it helps them raise the productive members of society, the Company focused on SURǟOHRIYLOODJHVFKRROV HPSOR\HHYROXQWHHULVP DQG &65 HNjRUWV DORQJ ZLWK %KDUWL Foundation and various other NGOs / associations. Bharti Foundation was set up in 2000, as the philanthropic arm of the Bharti Enterprises. Since inception, it has partnered with Bharti Airtel Limited for implementing and Principle 9 supporting various programmes. It focuses on implementing Providing Customer Value SURJUDPPHV LQ WKH njHOG RI SULPDU\ HOHPHQWDU\ VHQLRU secondary and higher education through the Satya Bharti School Program, as well as through government school 7R PDWFK WKH GLYHUVH H[SHFWDWLRQV RI WKH &RPSDQ\šV interventions under its Satya Bharti Quality Support urban, rural and multinational enterprise customers, Bharti Program and Satya Bharti Learning Centres Program. $LUWHO FRQWLQXRXVO\ GHYHORSV DQG RNjHUV D GLYHUVH UDQJH RI Recently, in addition to its primary focus area of education, solutions. These range from mobile, broadband, direct-to- the Foundation initiated ‘Satya Bharti Abhiyan’. This home satellite television and enterprise solutions, along with initiative is aimed to improve sanitation facilities in rural a bouquet of value-added, customised services that address Ludhiana. Besides, the Foundation introduced ‘Nyaya varied customer needs. %KDUWLšSURJUDPPHWRSURYLGHOHJDODQGnjQDQFLDODVVLVWDQFH to deserving and underprivileged people under trial, Bharti Airtel has been transparently communicating ODQJXLVKLQJLQMDLOVIRUPLQRURNjHQFHV mandatory information regarding enrolment and GHDFWLYDWLRQ WDULNj XVDJH FRQWDFW DQG JULHYDQFH RQ LWV Along with Bharti Foundation, the Company has also periodical bills, enrolment form, booklets, website and POS supported various other initiatives, such as supporting displays. Besides, the Company pioneered the launch of schools in imparting free education to girl child, employment Airtel myPlan for its post-paid customers, which enables its enhancing vocation skills, maintaining old age homes, customers to customise their postpaid plans on the basis promoting formulation of public policies and research of their family’s usage, preference and requirements. They among many others. FDQVKDUHWKHEHQHnjWVDPRQJnjYHRIWKHLUIDPLO\PHPEHUV In FY 2015-16, Bharti Airtel contributed a total of ` 575 Mn thus ensuring zero wastage or overspend. The plan provides towards various CSR initiatives and other charitable causes. WKH IHDWXUHV RI LQnjQLWH ǍH[LELOLW\ RI P\3ODQ DGGHG ZLWK DNjRUGDELOLW\FRQYHQLHQFHDQG]HURZDVWDJH7KH&RPSDQ\ Refer to the CSR section of this Annual Report for further values its customers’ feedback to ensure improvement in details on our work with Bharti Foundation and the impact its products, services and processes. It uses tools like Net created on the community. Promoter Score (NPS) to gather its customers’ feedback and suggestions, which helps in identifying the areas of improvement. Sanitation Drive 'XULQJ )<  QR OHJDO FDVHV ZHUH njOHG DJDLQVW WKH Motivated by the landmark speech of India’s Company regarding unfair trade practices, irresponsible Hon’ble Prime Minister on Independence advertising and / or anti-competitive behaviour. However, 26 Day (2014) calling Corporates to step complaints were registered with Advertisement Standard up for a ‘Swachh Bharat’, Bharti Airtel is Council of India (ASCI) and all of them were resolved as per enthusiastically supporting the ‘Satya WKHSURFHVVVSHFLnjHGLQ$6&,UXOHV$OVRDVRQ0DUFK Bharti Abhiyan’. It is a sanitation drive being 2016, 0.012% of the total customer1 complaints and around implemented by Bharti Foundation in rural 146 out of the 235 consumer cases received in FY 2015-16 Ludhiana over the next 3 years for the were at various stages of resolution. provision of toilets in households lacking such facilities, across more than 900 villages. The Foundation also committed to improve the sanitation facilities in the Government Schools of rural Ludhiana by building separate toilets for girls, where no such facility exits. As on March 31, 2016, 12,737 toilets have been handed over to the community in 559 YLOODJHVLPSDFWLQJEHQHǟFLDULHV [1] This includes prepaid and postpaid customers.

Business Responsibility Report 47 Transformational Network

Board’s Report

Dear Members, Consolidated Financial Highlights (IGAAP) Your Directors have pleasure in presenting the 21st Board FY 2015-16 FY 2014-15 Report on the Company’s business and operations, together Particulars ` USD ` USD ZLWK DXGLWHG njQDQFLDO VWDWHPHQWV DQG DFFRXQWV IRU WKH Millions Millions* Millions Millions* njQDQFLDO\HDUHQGHG0DUFK Gross revenue 1,009,373 15,415 961,007 15,728 EBITDA before 378,133 5,775 356,978 5,872 Company Overview exceptional Bharti Airtel is among the top three mobile service providers items globally with presence in 20 countries, including India, &DVKSURǟWIURP 291,115 4,446 312,513 5,115 Sri Lanka, Bangladesh and 17 countries in the African operations continent. Earnings before 106,677 1,629 105,398 1,725 taxation 7KH &RPSDQ\šV GLYHUVLnjHG VHUYLFH UDQJH LQFOXGHV PRELOH Net Income / 44,566 680 46,208 756 voice and data solutions, using 2G, 3G and 4G technologies. (Loss) Its service portfolio comprises an integrated suite of telecom * 1 USD = `([FKDQJH5DWHIRUWKHnjQDQFLDO\HDUHQGHG0DUFK solutions to its customers, besides providing long-distance (1 USD = `([FKDQJH5DWHIRUWKHnjQDQFLDO\HDUHQGHG0DUFK  connectivity in India, Africa and the rest of the world. The &RPSDQ\DOVRRNjHUV'LJLWDO79DQG,379VHUYLFHVLQ,QGLD Consolidated Financial Highlights (IFRS) $OOWKHVHVHUYLFHVDUHUHQGHUHGXQGHUDXQLnjHGEUDQGŠDLUWHOš FY 2015-16 FY 2014-15 either directly or through subsidiary companies. Particulars ` USD ` USD The Company also deploys and manages passive Millions Millions* Millions Millions* infrastructure pertaining to telecom operations through Gross revenue 965,321 14,742 920,394 15,064 its subsidiary, Bharti Infratel Limited, which also owns EBITDA before 341,902 5,222 314,517 5,148 42% of Indus Towers Limited. Together, Bharti Infratel and exceptional Indus Towers are the largest passive infrastructure service items providers in India. &DVKSURǟWIURP 289,152 4,416 285,280 4,669 operations Financial Results Earnings before 120,705 1,843 107,130 1,753 In compliance with the provisions of Companies Act, 2013 taxation and SEBI (Listing Obligations and Disclosure Requirements) Net Income / 54,842 838 51,835 848 Regulations, 2015, (Listing Regulations), the Company (Loss) KDV SUHSDUHG LWV VWDQGDORQH DQG FRQVROLGDWHG njQDQFLDO * 1 USD = `([FKDQJH5DWHIRUWKHnjQDQFLDO\HDUHQGHG0DUFK statements as per Indian Generally Accepted Accounting (1 USD = `([FKDQJH5DWHIRUWKHnjQDQFLDO\HDUHQGHG0DUFK  Principles (IGAAP) for the FY 2015-16. In addition, the &RPSDQ\ KDV DOVR SUHSDUHG FRQVROLGDWHG njQDQFLDOV DV 7KHnjQDQFLDOUHVXOWVDQGWKHUHVXOWVRIRSHUDWLRQVLQFOXGLQJ per the International Financial Reporting Standards (IFRS). major developments have been further discussed in detail in 7KHVWDQGDORQHDQGFRQVROLGDWHGnjQDQFLDOKLJKOLJKWVRIWKH the Management Discussion and Analysis section. Company’s operations are as follows: Share Capital Standalone Financial Highlights (IGAAP) During the year, there was no change in the Company’s FY 2015-16 FY 2014-15 issued, subscribed and paid-up equity share capital. On March 31, 2016, it stood at ` 19,987 Mn, divided into Particulars ` USD ` USD 3,997,400,102 equity shares of ` 5/- each. Millions Millions* Millions Millions* Gross revenue 603,002 9,209 554,964 9,083 General Reserve EBITDA before 238,218 3,363 246,241 4,030 The Company has not transferred any amount to the General exceptional 5HVHUYHIRUWKHnjQDQFLDO\HDUHQGHG0DUFK items &DVKSURǟWIURP 202,628 3,095 232,150 3,799 Dividend operations

48 Annual Report 2015-16 40-125 Bharti Airtel Limited 02-39 | Corporate OverviewStatutory Reports 126-355 | Financial Statements

The Register of Members and Share Transfer Books will Pursuant to the provisions of SEBI (Share Based remain closed from Saturday, August 13, 2016 to Friday, (PSOR\HH %HQHnjWV  5HJXODWLRQV  (623 August 19, 2016 (both days inclusive) for the purpose of Regulations), a disclosure with respect to ESOP Schemes SD\PHQWRInjQDOGLYLGHQGIRUWKH)<LIGHFODUHGDW RI WKH &RPSDQ\ DV RQ 0DUFK   LV DQQH[HG DV the ensuing AGM. $QQH[XUH $ to this report and has also been uploaded on the Company’s website at http://www.airtel.in/wps/wcm/ Transfer of amount to Investor Education and connect/c9e25993-5b80-4eb0-9874-37614225b876 Protection Fund $QQH[XUH3XUVXDQWWR(6235HJXODWLRQVSGI"02' $ Since the Company declared its maiden dividend in August JPERES&CONVERTTO=url&CACHEID=c9e25993-5b80- 2009 for FY 2008-09, no unclaimed dividend was transferred 4eb0-9874-37614225b876. to Investor Education and Protection Fund in the previous year. The aforesaid ESOP Schemes of the Company are in FRPSOLDQFH ZLWK WKH (623 5HJXODWLRQV $ FHUWLnjFDWH IURP Pursuant to the provisions of Investor Education and M/s. S. R. Batliboi & Associates LLP, Chartered Accountants, Protection Fund (Uploading of information regarding unpaid Statutory Auditors, with respect to the implementation of and unclaimed amounts lying with companies) Rules, 2012, the Company’s ESOP schemes, would be placed before the the Company has uploaded the details of unpaid and shareholders at the ensuing AGM. A copy of the same will unclaimed amounts lying with the Company as on August also be available for inspection at the Company’s registered 21, 2015 (date of last Annual General Meeting) on the RǎFH Company’s website www.airtel.com.

Deposits 0DWHULDO FKDQJHV DQG FRPPLWPHQWV DǁHFWLQJ WKH ǂQDQFLDOSRVLWLRQEHWZHHQWKHHQGRIǂQDQFLDO\HDU The Company has not accepted any deposits and, as such, and date of report after the balance sheet date no amount of principal or interest was outstanding, as on the balance sheet closure date. 7KHUHZHUHQRPDWHULDOFKDQJHVDQGFRPPLWPHQWVDNjHFWLQJ WKHnjQDQFLDOSRVLWLRQRIWKH&RPSDQ\EHWZHHQWKHHQGRI Capital Market Ratings njQDQFLDO\HDUDQGGDWHRIWKLVUHSRUW As on March 31, 2016, the Company was rated by two domestic rating agencies, namely CRISIL and ICRA and Directors and Key Managerial Personnel three international rating agencies, namely Fitch Ratings, Inductions, Re-appointments, Retirements & Resignations Moody’s and S&P. In line with the Company’s policy on Independent Directors, the term of Ms. Obiageli Ezekwesili ended on September 25, CRISIL and ICRA maintained their long-term ratings of the Company. Currently, they rate the Company at [CRISIL] AA+ 2015. Mr. Rajan Bharti Mittal resigned from the Company’s / [ICRA] AA+, with a stable outlook. Short-term ratings were Board w.e.f. January 07, 2016. The Board place on record maintained at the highest end of the rating scale at [CRISIL] its appreciation for help, guidance and contribution made by A1+ / [ICRA] A1+. the outgoing Directors during their tenure on the Board. Fitch, Moody’s and S&P also maintained the ratings at BBB-/ Mr. Rakesh Bharti Mittal was appointed as an Additional Non- Stable, BBB-/Stable and Baa3/Stable, respectively. ([HFXWLYH'LUHFWRURQWKH%RDUGZHI-DQXDU\DQG ZLOO KROG WKH RǎFH WLOO WKH GDWH RI HQVXLQJ $QQXDO *HQHUDO As on March 31, 2016, the Company was rated ‘Investment Meeting and is eligible for re-appointment. The Company has Grade’ with a ‘Stable’ outlook by all three international credit received requisite notice from a member under Section 160 rating agencies. of the Companies Act, 2013, proposing the appointment of 0U 5DNHVK %KDUWL 0LWWDO DV WKH &RPSDQ\šV 1RQ([HFXWLYH Employee Stock Option Plan Director, liable to retire by rotation. Accordingly, the Board At present, the Company has two Employee Stock Option recommends his appointment. (ESOP) schemes, namely Employee Stock Option Scheme 2001 and Employee Stock Option Scheme 2005. Besides Ms. Chua Sock Koong will retire by rotation at the attracting talent, these schemes also helped retain talent and HQVXLQJ$*0DQGEHLQJHOLJLEOHKDVRNjHUHGKHUVHOIIRUUH H[SHULHQFH7KH+5DQG1RPLQDWLRQ&RPPLWWHHDGPLQLVWHUV appointment. and monitors the Company’s ESOP schemes. Mr. Sunil Bharti Mittal, Chairman, will be completing his Both the ESOP schemes are currently administered through present term as Chairman of the Company on September Bharti Airtel Employees Welfare Trust (ESOP Trust), whereby 30, 2016. On the recommendation of the HR and Nomination shares held by the Trust are transferred to employees, Committee, the Board in its meeting held on April 27, 2016, XSRQ H[HUFLVH RI VWRFN RSWLRQV DV SHU WKH WHUPV RI WKH subject to the approval of shareholders, has re-appointed 6FKHPHV'XULQJWKHnjQDQFLDO\HDUWKH&RPSDQ\ Mr. Sunil Bharti Mittal as Chairman of the Company for a has obtained approval of members through postal ballot, IXUWKHUWHUPRInjYH\HDUVZHI2FWREHU authorising the ESOP Trust to acquire the Company’s shares from secondary market, for implementation of ESOP %ULHI UHVXPH QDWXUH RI H[SHUWLVH GHWDLOV RI GLUHFWRUVKLSV Scheme 2005. Apart from the said change, there were no held in other companies of the Directors proposed to be other changes in the ESOP Schemes of the Company. appointed / re-appointed, along with their shareholding in

Board’s Report 49 Transformational Network

the Company, as stipulated under Secretarial Standard 2 Subsidiary, Associate and Joint Venture Companies and Regulation 36 of the Listing Regulations, is appended as As on March 31, 2016, your Company has 109 subsidiaries, DQ$QQH[XUHWRWKH1RWLFHRIWKHHQVXLQJ$*0 2 associates and 3 joint ventures, as set out in page no. 344 of the Annual Report (for Abridged Annual Report please The Board has appointed Mr. Nilanjan Roy as the Global refer page no. 84). &KLHI )LQDQFLDO 2ǎFHU ZHI $XJXVW   LQ SODFH RI Mr. Srikanth Balachandran, who has taken up the role of During FY 2015-16, Augere Wireless Broadband India Private *OREDO&KLHI+52ǎFHURIWKH&RPSDQ\ Limited (AWBIPL) and Airtel Money Transfer Limited became subsidiaries of the Company, and AWBIPL is in the process of Declaration by Independent Directors amalgamation with the Company. Airtel DTH Services Congo The Company has received declarations from all Independent (RDC) SARL, Burkina Faso Towers S.A., Niger Towers S.A., 'LUHFWRUVRIWKH&RPSDQ\FRQnjUPLQJWKDWWKH\FRQWLQXHWR Bharti Airtel (Canada) Limited, Airtel Broadband Services meet with the criteria of independence, as prescribed under Private Limited, Uganda Towers Limited, Kenya Towers Section 149 of the Companies Act, 2013 and Regulation 25 Limited, Warid Congo S.A. and Zambian Towers Limited of the Listing Regulations. The Independent Directors have were liquidated and accordingly ceased to be subsidiaries DOVRFRQnjUPHGWKDWWKH\KDYHFRPSOLHGZLWKWKH&RPSDQ\šV of the Company. code of conduct. During FY 2015-16, Indo Teleports Limited (formerly known Board Diversity and Policy on Director’s Appointment as Bharti Teleports Limited) ceased to be an associate and Remuneration company and became a subsidiary of the Company, and The Company believes that building a diverse and inclusive Forum I Aviation Private Limited ceased to be a joint venture culture is integral to its success. A diverse Board, among of the Company. RWKHUVHQKDQFHVWKHTXDOLW\RIGHFLVLRQVE\XWLOLVLQJGLNjHUHQW Pursuant to Section 129(3) of the Companies Act, 2013 VNLOOV TXDOLnjFDWLRQV SURIHVVLRQDO H[SHULHQFH DQG NQRZOHGJH read with Rule 5 of Companies (Accounts of Companies) of the Board members necessary for achieving sustainable Rules, 2014, a statement containing salient features of and balanced development. The Board has adopted a policy njQDQFLDO VWDWHPHQWV RI VXEVLGLDU\ DVVRFLDWH DQG MRLQW on ‘Nomination, Remuneration and Board Diversity’, which YHQWXUH FRPSDQLHV LV DQQH[HG RQ SDJH QR  RI WKH VHWV RXW WKH FULWHULD IRU GHWHUPLQLQJ TXDOLnjFDWLRQV SRVLWLYH Abridged Annual Report and page no. 352 of the full version attributes and independence of a director. The detailed of Annual Report. The statement also provides the details of policy is available on the Company’s website at http://www. SHUIRUPDQFHDQGnjQDQFLDOSRVLWLRQRIHDFKRIWKHVXEVLGLDU\ airtel.in/wps/wcm/connect/92b49e0e-8810-497a-9c3e- associate and joint venture. 9b80657a3688/Policy-on-Remuneration-Nomination-and- 7KH DXGLWHG njQDQFLDO VWDWHPHQWV RI HDFK RI LWV VXEVLGLDU\ Board-Diversity.pdf?MOD=AJPERESDQGLVDOVRDQQH[HGDV associate and joint venture companies would be available $QQH[XUH% to this report. IRULQVSHFWLRQDWWKH&RPSDQ\šVUHJLVWHUHGRǎFHDQGDOVRDW UHJLVWHUHGRǎFHVRIWKHUHVSHFWLYHFRPSDQLHV Annual Board Evaluation and Familiarisation Programme for Board Members Copies of the annual accounts of the subsidiary, associate A note on the familiarisation programme adopted by the and joint venture companies will also be made available to Company for orientation and training of the Directors, and the investors of Bharti Airtel and those of the respective the Board evaluation process undertaken in compliance companies upon request. with the provisions of the Companies Act, 2013 and the Listing Regulations is provided in the Report on Corporate Abridged Annual Report Governance, which forms part of this Report. In terms of the provision of Section 136(1) of the Companies Act, 2013, Rule 10 of Companies (Accounts of Companies) Committees of Board, Number of Meetings of the Board Rules, 2014 and Regulation 36 of the Listing Regulations, and Board Committees the Board of Directors has decided to circulate the Abridged The Board of Directors met four times during the previous Annual Report containing salient features of the balance njQDQFLDO \HDU $V RQ 0DUFK   WKH %RDUG KDV VKHHWDQGVWDWHPHQWRISURnjWDQGORVVDQGRWKHUGRFXPHQWV VL[ FRPPLWWHHV QDPHO\ WKH $XGLW  5LVN 0DQDJHPHQW to the shareholders for FY 2015-16, who have not registered Committee, the HR and Nomination Committee, the Corporate their e-mail id. The Abridged Annual Report is being circulated Social Responsibility (‘CSR’) Committee, the Stakeholders’ WRWKHPHPEHUVH[FOXGLQJ$QQH[XUHVWRWKH%RDUGšV5HSRUW Relationship Committee, the Committee of Directors and the viz. the ‘Disclosure on ESOPs’, ‘Policy on Nomination, Airtel Corporate Council. Remuneration and Board Diversity’, ‘Secretarial Audit Report’, ‘Annual Report on Corporate Social Responsibility u/s 135 of All the recommendations made by Committees of Board the Companies Act, 2013’, ‘Business Responsibility Report’, including the Audit & Risk Management Committee were Š5HSRUWRQ&RUSRUDWH*RYHUQDQFHDQG$XGLWRUVš&HUWLnjFDWH accepted by the Board. A detailed update on the Board, on compliance of conditions of Corporate Governance’, its composition, detailed charter including terms and Š([WUDFW RI $QQXDO 5HWXUQš Š1RWH RQ (QHUJ\ &RQVHUYDWLRQ reference of various Board Committees, number of Board 7HFKQRORJ\ $EVRUSWLRQ DQG )RUHLJQ ([FKDQJH (DUQLQJV and Committee meetings held during FY 2015-16 and & Outgo’ and ‘Disclosures relating to remuneration u/s attendance of the Directors at each meeting is provided in 197(12) read with Rule 5(1) and Rule 5(2) of the Companies the Report on Corporate Governance, which forms part of (Appointment and Remuneration of Managerial Personnel), this Report. Rules, 2014’.

50 Annual Report 2015-16 40-125 Bharti Airtel Limited 02-39 | Corporate OverviewStatutory Reports 126-355 | Financial Statements

Members who desire to obtain the full version of the report Sustainability Journey PD\ZULWHWRWKH&RPSDQ\6HFUHWDU\DWWKHUHJLVWHUHGRǎFH Over the past few years, sustainability has not only been an address and will be provided with a copy of the same. Full integral part but also invariably complementary to Airtel’s version of the Annual Report will also be available on the business agenda. Airtel’s sustainability journey endeavours to Company’s website www.airtel.com. contribute further to its society and environment. The Company made social inclusion as a cornerstone of its sustainability Auditors and Auditors’ Report programme in order to create value across its entire value chain. Statutory Auditors To drive this agenda, Airtel has an undivided focus on bridging In terms of the provisions of Section 139 of the Companies the digital divide and ensuring that millions more are empowered Act, 2013, M/s. S. R. Batliboi & Associates LLP, Chartered through sustainable social and economic development. It has Accountants, were appointed as the Company’s Statutory been pushing boundaries and changing the business paradigms Auditors by the shareholders in the AGM held on September DFURVVLQGXVWULHVE\HQDEOLQJWKHJURZWKRIVHFWRUVOLNHnjQDQFH 01, 2014, for a period of three years i.e. till the conclusion of and banking, education, health, agriculture and put in place 22nd AGM. innovative ways to reduce the carbon footprint. Airtel has been 7KH VDLG DSSRLQWPHQW LV VXEMHFW WR UDWLnjFDWLRQ E\ WKH VWUHQJWKHQLQJ LWV HNjRUWV WR UHLWHUDWH LWV FRPPLWPHQW WRZDUGV members at every AGM. Accordingly, the appointment of bringing a positive transformation by enabling digital inclusion, M/s. S. R. Batliboi & Associates LLP, Chartered Accountants, well-being of communities and enriching their lives through its DVWKH&RPSDQ\šV6WDWXWRU\$XGLWRUVLVSODFHGIRUUDWLnjFDWLRQ core competencies. It is passionate to actively support Bharti E\ WKH PHPEHUV 7KH &RPSDQ\ KDV UHFHLYHG D FHUWLnjFDWH Foundation and its educational and other initiatives. IURPWKH6WDWXWRU\$XGLWRUVWRWKHHNjHFWWKDWUDWLnjFDWLRQRI their appointment, if made, shall be in accordance with the Airtel’s sustainability and business responsibility initiatives have provisions of Section 141 of the Companies Act, 2013. been detailed in its Sustainability Reports, which can be located on the Company’s website http://www.airtel.in/sustainability- 7KH%RDUGKDVGXO\H[DPLQHGWKH6WDWXWRU\$XGLWRUVš5HSRUW njOHKRPHKWPO. WR WKH DFFRXQWV ZKLFK LV VHOIH[SODQDWRU\ &ODULnjFDWLRQV wherever necessary, have been included in the Notes to Corporate Social Responsibility (CSR) Accounts section of the Annual Report. At Bharti Airtel, Corporate Social Responsibility (CSR) As regards the comments under para i(a) of the encompasses much more than social outreach programmes. It $QQH[XUH to the Independent Auditors’ Report regarding lies at the heart of the Company’s business operations. Over updation of quantitative and situation details relating to the years, the Company has aligned its business processes FHUWDLQ nj[HG DVVHWV WKH &RPSDQ\ LV LQ WKH SURFHVV RI and goals to make a more deep-rooted impact on the society’s H[HFXWLQJ D FRPSUHKHQVLYH SURMHFW ZLWK WKH LQYROYHPHQW sustainable development. RI WHFKQLFDO H[SHUWV IRU GHSOR\LQJ DXWRPDWHG WRROV DQG SURFHVVHVZKLFKZLOOHQDEOHQHDUUHDOWLPHWUDFNLQJRInj[HG In accordance with the requirements of Section 135 of the DVVHWVDQGUHFRQFLOLDWLRQWKHUHWR7KLVSURMHFWLVH[SHFWHGWR Companies Act, 2013, the Company has constituted a CSR EHFRPSOHWHGE\QH[W\HDU Committee. The composition and terms of reference of the CSR Committee is provided in the Report on Corporate Governance, Cost Auditors which forms part of this Report. The Board, on the recommendation of the Audit & Risk Management Committee, has approved the appointment of The Company has also formulated a Corporate Social M/s. R. J. Goel & Co., Cost Accountants, as Cost Auditors, for Responsibility Policy, which is available on the Company’s WKHnjQDQFLDO\HDUHQGLQJ0DUFK7KH&RVW$XGLWRUV website at http://www.airtel.in/wps/wcm/connect/ ZLOOVXEPLWWKHLUUHSRUWIRUWKHnjQDQFLDO\HDUHQGLQJ fd7b3172-02e5-4e25-af7e-51d64cc17534/CSR+Policy. on or before the due date. pdf?MOD=AJPERES&ContentCache=NONE. In accordance with the provisions of Section 148 of the During FY 2015-16, the Company has spent over ` 534.69 Mn Companies Act, 2013 read with the Companies (Audit towards the CSR activities. Being the initial years, the Company and Auditors) Rules, 2014, since the remuneration payable is in the process of evaluating the focus areas / locations of WR WKH &RVW $XGLWRUV LV UHTXLUHG WR EH UDWLnjHG E\ WKH intervention for CSR activities to cater to the pressing needs shareholders, the Board recommends the same for approval of society and deliver optimal impact. As a socially responsible by shareholders at the ensuing AGM. Company, your Company is committed to increase its CSR Secretarial Auditors impact and spend over the coming years, with its aim of playing The Company had appointed M/s. Chandrasekaran a larger role in India’s sustainable development by embedding Associates, Company Secretaries, to conduct its Secretarial wider economic, social and environmental objectives. $XGLW IRU WKH njQDQFLDO \HDU HQGHG 0DUFK   7KH A detailed update on the CSR initiatives of the Company 6HFUHWDULDO$XGLWRUVKDYHVXEPLWWHGWKHLUUHSRUWFRQnjUPLQJ is provided in the Corporate Social Responsibility and compliance by the Company of all the provisions of Sustainability Report, which forms part of the Annual Report. applicable corporate laws. The Report does not contain any TXDOLnjFDWLRQUHVHUYDWLRQRUDGYHUVHUHPDUN7KH6HFUHWDULDO The Annual Report on Corporate Social Responsibility u/s $XGLW5HSRUWLVDQQH[HGDV$QQH[XUH& to this report. RIWKH&RPSDQLHV$FWLVDQQH[HGDV$QQH[XUH' The Board has reappointed M/s. Chandrasekaran Associates, to this Report. Company Secretaries, New Delhi, as Secretarial Auditor of the Company for FY 2016-17.

Board’s Report 51 Transformational Network

Business Responsibility Report accuracy and completeness of accounting records, and As stipulated under the Listing Regulations, the Business WLPHO\SUHSDUDWLRQRIUHOLDEOHnjQDQFLDOLQIRUPDWLRQ'XULQJWKH Responsibility Report, describing the initiatives taken by year, such controls were tested and no reportable material the Company from environmental, social and governance weaknesses in the design or operation were observed. perspective forms part of the Annual Report. Other Statutory Disclosures Management Discussion and Analysis Report Vigil Mechanism Pursuant to Regulation 34 of the Listing Regulations, the The Code of Conduct and vigil mechanism applicable Management Discussion and Analysis Report for the year to Directors and Senior Management of the Company is under review, is presented in a separate section, forming part available on the Company’s website at http://www.airtel.in/ of the Annual Report. about-bharti/investor-relations/corporate-governance. A brief note on the highlights of the Whistle Blower Policy Corporate Governance and compliance with Code of Conduct is also provided in the A detailed report on Corporate Governance, pursuant to the Report on Corporate Governance, which forms part of this requirements of Regulation 34 of the Listing Regulations, Annual Report. forms part of the Annual Report. Extract of Annual Return $ FHUWLnjFDWH IURP 0V 6 5 %DWOLERL  $VVRFLDWHV //3 In terms of provisions of Section 92, 134(3)(a) of the Chartered Accountants, the Statutory Auditors of the Companies Act, 2013 read with Rule 12 of Companies &RPSDQ\FRQnjUPLQJFRPSOLDQFHRIFRQGLWLRQVRI&RUSRUDWH 0DQDJHPHQWDQG$GPLQLVWUDWLRQ 5XOHVWKHH[WUDFWV Governance, as stipulated under the Listing Regulations, is RI$QQXDO5HWXUQRIWKH&RPSDQ\LQIRUP0*7LVDQQH[HG DQQH[HGDV$QQH[XUH+ to this report. herewith as $QQH[XUH( to this report. Risk Management 6LJQLǂFDQWDQG0DWHULDO2UGHUV Risk management is embedded in Bharti Airtel’s operating 7KHUHDUHQRVLJQLnjFDQWDQGPDWHULDORUGHUVSDVVHGE\WKH framework. The Company believes that managing risks goes regulators or courts or tribunals impacting the going concern KDQGLQKDQG ZLWK PD[LPLVLQJ UHWXUQV 7R WKLV HNjHFW WKHUH status and Company’s operations in future. is a robust process in place to identify key risks across the Particulars of Loans, Guarantees and Investments Group and prioritise relevant action plans to mitigate these Particulars of loans, guarantees and investments form risks. Risk Management framework is reviewed periodically part of Note no. 18 & 24, 26 and 17 & 20 respectively to by the Board and the Audit & Risk Management Committee, which includes discussing the management submissions WKH njQDQFLDO VWDWHPHQWV SURYLGHG LQ WKH IXOOYHUVLRQ RI WKH on risks, prioritising key risks and approving action plans to Annual Report. mitigate such risks. Related Party Transactions The Company has a duly approved Risk Management A detailed note on procedure adopted by the Company 3ROLF\7KHREMHFWLYHRIWKLVSROLF\LVWRKDYHDZHOOGHnjQHG in dealing with contracts and arrangements with Related approach to risk. The Policy lays broad guidelines for Parties is provided in the Report on Corporate Governance, the appropriate authority so as to be able to do timely which forms part of this Annual Report. LGHQWLnjFDWLRQDVVHVVPHQWDQGSULRULWLVDWLRQRIULVNVDNjHFWLQJ All arrangements / transactions entered by the Company the Company in the short and foreseeable future. The Policy with its related parties during the year were in the ordinary suggests framing an appropriate response action for the key course of business and on arm’s length basis. During the ULVNVLGHQWLnjHGVRDVWRPDNHVXUHWKDWULVNVDUHDGHTXDWHO\ year, the Company has not entered into any arrangement / compensated or mitigated. transaction with related parties which could be considered The Internal Audit function is responsible to assist the Audit material in accordance with the Company’s Policy on & Risk Management Committee on an independent basis Related Party Transactions and accordingly, the disclosure with a full status of the risk assessments and management. of Related Party Transactions in Form AOC - 2 is not applicable. However, names of Related Parties and details of Operationally, risk is being managed at the top level by transactions with them have been included in Note no. 47 0DQDJHPHQW%RDUGV $0%DQG$IULFD([FR DQGDWRSHUDWLQJ WRWKHnjQDQFLDOVWDWHPHQWVSURYLGHGLQWKHIXOOYHUVLRQRIWKH OHYHOE\([HFXWLYH&RPPLWWHHVRI&LUFOHVLQ,QGLDDQG2SHUDWLQJ $QQXDO5HSRUWDQG1RWHQRRIWKHnjQDQFLDOVWDWHPHQWV Companies in the international operations. provided in abridged version of the Annual Report under Detailed discussion on Risk Management forms part of Accounting Standard 18. Management Discussion & Analysis under the section ‘Risks The Policy on the Related Party Transactions is and Concerns’, which forms part of this Annual Report. At available on the Company’s website at http://www. present, in the opinion of the Board of Directors, there are no airtel.in/wps/wcm/connect/36a5305d-f0ba-490c-9eff- ULVNVZKLFKPD\WKUHDWHQWKHH[LVWHQFHRIWKH&RPSDQ\ 152ef6811917/BALPolicy-on-Related-Party Transactions. pdf?MOD=AJPERES. Internal Financial Control and its Adequacy The Company has in place adequate tools, procedures and Energy Conservation, Technology Absorption and SROLFLHVHQVXULQJRUGHUO\DQGHǎFLHQWFRQGXFWRILWVEXVLQHVV Foreign Exchange Earnings and Outgo including adherence to the Company’s policies, safeguarding The details of energy conservation, technology absorption of its assets, prevention and detection of frauds and errors, DQGIRUHLJQH[FKDQJHHDUQLQJVDQGRXWJRDVUHTXLUHGXQGHU

52 Annual Report 2015-16 40-125 Bharti Airtel Limited 02-39 | Corporate OverviewStatutory Reports 126-355 | Financial Statements

Section 134(3) of the Companies Act, 2013, read with the H  WKH'LUHFWRUVKDGODLGGRZQLQWHUQDOnjQDQFLDOFRQWUROV Rule 8 of Companies (Accounts of Companies) Rules, 2014 to be followed by the Company and that such internal LVDQQH[HGDV$QQH[XUH) to this report. njQDQFLDO FRQWUROV DUH DGHTXDWH DQG ZHUH RSHUDWLQJ HNjHFWLYHO\ Particulars of Employees Disclosures relating to remuneration of Directors u/s f) the Directors had devised proper systems to ensure 197(12) read with Rule 5(1) of Companies (Appointment compliance with the provisions of all applicable laws and Remuneration of Managerial Personnel) Rules, 2014 is and that such systems were adequate and operating DQQH[HGDV$QQH[XUH* to this report. HNjHFWLYHO\

The information, as required to be provided in terms of Acknowledgements Section 197(12) of the Companies Act, 2013, read with The Board wish to place on record their appreciation to Rule 5(2) of Companies (Appointment and Remuneration the Department of Telecommunications (DoT), the Central RI 0DQDJHULDO 3HUVRQQHO  5XOHV  LV DQQH[HG DV Government, the State Governments in India, Government $QQH[XUH, to this report. of Bangladesh, Government of Sri Lanka and Governments in the 17 countries in Africa, Company’s bankers and Directors’ Responsibility Statement business associates, for the assistance, co-operation and Pursuant to Section 134 of the Companies Act, 2013, the HQFRXUDJHPHQWWKH\H[WHQGHGWRWKH&RPSDQ\ 'LUHFWRUVWRWKHEHVWRIWKHLUNQRZOHGJHDQGEHOLHIFRQnjUP that: 7KH 'LUHFWRUV DOVR H[WHQG WKHLU DSSUHFLDWLRQ WR WKH HPSOR\HHVIRUWKHLUFRQWLQXLQJVXSSRUWDQGXQVWLQWLQJHNjRUWV a) in the preparation of the annual accounts, the applicable LQHQVXULQJDQH[FHOOHQWDOOURXQGRSHUDWLRQDOSHUIRUPDQFH accounting standards had been followed, along with The Directors would like to thank various partners, viz., Bharti SURSHUH[SODQDWLRQUHODWLQJWRPDWHULDOGHSDUWXUHV Telecom Limited, Singapore Telecommunications Ltd. and b) the Directors had selected such accounting policies other shareholders for their support and contribution. We and applied them consistently and made judgements look forward to their continued support in future. and estimates that are reasonable and prudent, so as WRJLYHDWUXHDQGIDLUYLHZRIWKHVWDWHRIDNjDLUVRIWKH &RPSDQ\ DW WKH HQG RI WKH njQDQFLDO \HDU DQG RI WKH SURnjWDQGORVVRIWKH&RPSDQ\IRUWKDWSHULRG F  WKH'LUHFWRUVKDGWDNHQSURSHUDQGVXǎFLHQWFDUHIRU the maintenance of adequate accounting records For and on behalf of the Board in accordance with the provisions of this Act for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities; Place: Sunil Bharti Mittal d) the Directors had prepared the annual accounts on a going concern basis; Date: April 27, 2016 Chairman

Board’s Report 53 Transformational Network

Information Regarding Employees Stock Schemes (As on March 31, 2016) Annexure A

Sl. Particulars ESOP Scheme 2001 ESOP Scheme 2005 No. 1 Date of shareholders’ approval February 27, 2001 September 06, 2005 2 Total number of options approved under the scheme 31,680,000 18,734,552 3 Vesting requirements 1-5 years 1-5 years 4 Exercise price / Pricing formula 29,015,[email protected] Exercise Price not less than 1,760,[email protected] the par value of the Equity 4,380,[email protected] Share and not more than 142,[email protected] the price prescribed under 5,541,[email protected] Chapter VII of SEBI (Issue 40,[email protected] of Capital and Disclosure 25,[email protected] Requirements) Regulation, 2009 on Grant Date 5 Maximum term of options granted 7 years from the grant date 7 years from the grant date 6 Source of shares Primary Secondary 7 Variation in terms of ESOPs NIL NIL 8 'LNjHUHQFHEHWZHHQWKHHPSOR\HHVFRPSHQVDWLRQFRVW NIL NIL based on intrinsic value of the stock and the fair value IRUWKH\HDUDQGLWVLPSDFWRQSURǟWVDQGRQ(36RIWKH Company. 9 Options movement during the year: Number of options outstanding at the beginning of the 390,000 3,329,093 period Number of options granted during the year NIL 1,575,618 Number of options forfeited / lapsed during the year 10,365 1,424,741 Number of options vested during the year 39,635 210,580 Number of options exercised during the year 75,000 953,684 Number of shares arising as a result of exercise of N.A. N.A. options Money realised by exercise of options (`) if scheme is NIL NIL implemented directly by the Company* Loan repaid by the Trust during the year from exercise ` 103,945,436 price received Number of options outstanding at the end of the year 304,635 2,526,286 Number of options exercisable at the end of the year 29,635 1,025,283 10 a) Weighted average exercise price ` 11.25; ` 0.45; ` 35; ` 200.37 ` 0; ` 5; ` 60; ` 110.5 b) Weighted average fair value NA; NA; NA; NA; ` 268.20; ` 196.93 ` 84.43; ` 357.63 11 Name of the employee and designation to whom No of options granted No of options granted options was granted at exercise price ` 5 per option i) Mr. Gopal Vittal (MD & CEO - India & South Asia) NIL 131,480 ii) Mr. Sundar Rajan R (Group General Counsel) NIL 35,858 iii) Mr. Arvind Chopra (Group Director - Internal NIL 35,858 Assurance) iv) 0U'HYHQ.KDQQD 'LUHFWRU&0'šV2njFH  NIL 31,077 v) Mr. Srikanth Balachandran (Global CHRO) NIL 30,599 vi) Mr. Harjeet Kohli (Group Treasurer) NIL 26,894 vii) Mr. Ajai Puri (Director - Market Operations) NIL 28,816 viii) Mr. Raghunath Mandava (Director - Customer NIL 26,254 Experience) ix) Mr. Nilanjan Roy (Global CFO) NIL 25,746

54 Annual Report 2015-16 40-125 Bharti Airtel Limited 02-39 | Corporate OverviewStatutory Reports 126-355 | Financial Statements

Sl. Particulars ESOP Scheme 2001 ESOP Scheme 2005 No. x) Ms. Harmeen Mehta (Global CIO) NIL 23,906 xi) Mr. Srini Gopalan (Director - Consumer Business) NIL 23,667 xii) Mr. Moti Gyamlani (Director - Supply Chain) NIL 21,813 xiii) Mr. Sarang Kanade (Director - Customer NIL 18,753 Experience) xiv) Mr. Shashi Arora (Director - DTH) NIL 14,986 xv) Mr. Ajay Chitkara (Director - Global Voice & Data NIL 14,615 Business) xvi) Mr. Abhay Savargaonkar (Director Networks NIL 14,344 & CTO) xvii) Mr. Ravi Parkash Gandhi (Chief Regulatory NIL 12,825 2njFHU  xviii) Mr. Manish Prakash (Director - Enterprise NIL 10,041 & Government) xix) Mr. Sameer Chugh (Director - Legal) NIL 8,606 xx) Mr. Raza Khan (Head - Corporate NIL 3,927 Communications) xxi) Ms. Sucheta Mahapatra (Head - Business NIL 3,921 Strategy & Support) 12 0HWKRGDQGVLJQLǟFDQWDVVXPSWLRQVXVHGWRHVWLPDWH Black Scholes / Lattice Valuation Model / the fair values of options including the following Monte Carlo Simulation information: a) i) the weighted-average values of share price ` 411.7 ii) the weighted-average exercise price ` 5 iii) expected volatility 27.45% iv) expected option life 48 to 60 months v) expected dividends 44% (Dividend yield of 0.54%) vi) the risk-free interest rate and any other 7.79% p.a to 7.83% p.a (The Government securities curve inputs to the model yields are considered as on valuation date). b) the method used and the assumptions made N.A. WRLQFRUSRUDWHWKHHNjHFWVRIH[SHFWHGHDUO\ exercise; c) how expected volatility was determined, The volatility of the options is based on the historical including an explanation of the extent to which volatility of the share price since the respective entity’s expected volatility was based on historical equity shares became publicly traded. volatility; and d) whether and how any other features of the option The expected life of the share option is based on historical grant were incorporated into the measurement of data and current expectation and not necessarily fair value, such as a market condition. indicative of exercise pattern that may occur. 13 Diluted earning per share (EPS) as per Accounting N.A. N.A. Standard 20 * Since ESOP Scheme is implemented through trust, the same is N.A. Both the ESOP schemes viz. ESOP Scheme 2001 and ESOP Scheme 2005 are in complinace with the SEBI (ESOP Regulations). Disclosure in notes to accounts is as prescribed under Guidance Note issued by ICAI. To calculate the employee compensation cost, the Company has used the Fair Market Value for the valuation of ESOPs. The options granted to the senior managerial personnel under both the schemes are subject to adjustments as per the terms of respective ESOPs Scheme / Plan.  2WKHUWKDQWKHHPSOR\HHVWDWHGLQSRLQWQR,, L QRRWKHUHPSOR\HHZDVJUDQWHGVWRFNRSWLRQVH[FHHGLQJRIWKHWRWDORSWLRQVJUDQWHGGXULQJWKH\HDU  1RHPSOR\HHZDVJUDQWHGVWRFNRSWLRQVH[FHHGLQJRIWKHLVVXHGFDSLWDOGXULQJWKH\HDU

Board’s Report 55 Transformational Network

Nomination, Remuneration and Board Diversity Policy Annexure B

Preamble The Committee shall ensure that the proposed Director The Board of Directors (the “Board”) on the recommendation VDWLVnjHVWKHIROORZLQJDGGLWLRQDOFULWHULD of the HR & Remuneration Committee (the “Committee”) Eligible for appointment as a Director on the Board of has approved and adopted this Nomination, Remuneration WKH&RPSDQ\DQGLVQRWGLVTXDOLnjHGLQWHUPVRI6HFWLRQ and Board Diversity Policy (the “Policy”) in compliance with 164 and other applicable provisions of the Companies the provisions of Section 178 of the Companies Act, 2013 Act, 2013, and the Listing Agreements. and rules made thereunder, and Clause 49 of the Listing $JUHHPHQWVZLWKWKH6WRFN([FKDQJHV Has attained minimum age of 25 years and is not older than 70 years. Objectives Does not hold directorship in more than 20 companies The main objectives of this Policy are: (including private and public limited companies) or 10 public limited companies incorporated in India. To lay down criteria and terms and conditions with UHJDUG WR LGHQWLI\LQJ SHUVRQV ZKR DUH TXDOLnjHG WR  :LOOEH DEOH WR GHYRWH VXǎFLHQW WLPH DQG HNjRUWV LQ EHFRPH 'LUHFWRUV ([HFXWLYH DQG 1RQ([HFXWLYH GLVFKDUJHRIGXWLHVDQGUHVSRQVLELOLWLHVHNjHFWLYHO\ including Independent Directors), Key Managerial While evaluating a person for appointment / re-appointment Personnel (“KMP”) and persons who may be appointed as an Independent Director, the Committee shall ensure that in Senior Management positions. WKH SURSRVHG DSSRLQWHH VDWLVnjHV WKH IROORZLQJ DGGLWLRQDO To lay down criteria for determining the Company’s criteria: approach to ensure adequate diversity in its Board.  0HHW WKH EDVHOLQH GHnjQLWLRQ DQG FULWHULD RI To retain, motivate and promote talent and to ensure “independence” as set out in Section 149 of the long term sustainability of talented managerial persons Companies Act, 2013 and Clause 49 of the Listing and create competitive advantage for the Company. Agreements and other applicable laws. To determine remuneration of Directors, KMPs and Should not hold the position of Independent Director in other senior management personnel’s, keeping in PRUHWKDQVL[,QGLDQOLVWHGFRPSDQLHVDQGLIVHUYLQJDV view all relevant factors including industry trends and Whole-time Director in any Indian listed company then practices. in not more than three Indian listed companies.  7R SURYLGH IRU UHZDUGV OLQNHG GLUHFWO\ WR WKHLU HNjRUW Should not hold any Board / employment position with performance, dedication and achievement of the a competitor in the geographies where the Company Company’s target. is operating. However, the Board may in special circumstances waive this requirement. $$WWULEXWHV4XDOLǂFDWLRQVDQG'LYHUVLW\ 7KH UHDSSRLQWPHQW  H[WHQVLRQ RI WHUP RI DQ\ %RDUG Directors and Key Managerial Personnel members shall be on the basis of their performance The Committee shall be responsible for identifying a suitable evaluation report. candidate for appointment as Director or as KMP of the Senior Management Company. While evaluating a person for appointment / re-appointment The Board shall consist of such number of Directors as in a senior management position, the management shall LV QHFHVVDU\ WR HNjHFWLYHO\ PDQDJH WKH &RPSDQ\ RI WKH considers various factors including individual’s background, size and nature as of Bharti Airtel, subject to a minimum competency, skills, abilities (viz. leadership, ability to RI  DQG PD[LPXP RI  LQFOXGLQJ ZRPDQ 'LUHFWRUV 7KH H[HUFLVH VRXQG MXGJHPHQW  HGXFDWLRQDO DQG SURIHVVLRQDO %RDUGVKDOOKDYHDQDSSURSULDWHFRPELQDWLRQRI([HFXWLYH background, personal accomplishment, age, relevant 1RQ([HFXWLYHDQG,QGHSHQGHQW'LUHFWRUV7KH%RDUGVKDOO H[SHULHQFHDQGXQGHUVWDQGLQJRIUHODWHGnjHOGYL]PDUNHWLQJ appoint a Chairman and a Managing Director or CEO and WHFKQRORJ\ njQDQFH RU VXFK RWKHU GLVFLSOLQH UHOHYDQW WR the roles of Chairman and Managing Director or CEO shall present and prospective operations of the Company. QRWEHH[HUFLVHGE\WKHVDPHLQGLYLGXDO Senior Management means personnel of the Company While evaluating a person for appointment / re-appointment ZKRDUHPHPEHUVRILWVFRUHPDQDJHPHQWWHDPH[FOXGLQJ as Director or as KMP, the Committee shall consider and Board of Directors and shall comprise of all members of evaluate number of factors including but not limited to PDQDJHPHQW RQH OHYHO EHORZ WKH ([HFXWLYH 'LUHFWRUV EDFNJURXQG NQRZOHGJH VNLOOV DELOLWLHV DELOLW\ WR H[HUFLVH including all functional heads. VRXQG MXGJHPHQW  SURIHVVLRQDO H[SHULHQFH  IXQFWLRQDO H[SHUWLVH HGXFDWLRQDO DQG SURIHVVLRQDO EDFNJURXQG B. Remuneration Policy SHUVRQDO DFFRPSOLVKPHQW DJH H[SHULHQFH XQGHUVWDQGLQJ Board Members of the telecommunication sector / industry, marketing, The overall limits of remuneration of the Board members WHFKQRORJ\ njQDQFH DQG RWKHU GLVFLSOLQHV UHOHYDQW WR WKH LQFOXGLQJ([HFXWLYH%RDUGPHPEHUV LH0DQDJLQJ'LUHFWRU business etc. and such other factors that the Committee :KROHWLPH'LUHFWRU([HFXWLYH'LUHFWRUVHWF DUHJRYHUQHG might consider relevant and applicable from time to time by the provisions of Section 197 of the Companies Act, towards achieving a diverse Board. 2013, rules made thereunder and shall be approved by

56 Annual Report 2015-16 40-125 Bharti Airtel Limited 02-39 | Corporate OverviewStatutory Reports 126-355 | Financial Statements

the shareholders of the Company and shall be subject to person will be entitled to sitting fee for the relevant DYDLODELOLW\RISURnjWVRIWKH&RPSDQ\ meeting. Within the overall limit approved by the shareholders, on Executive Board Members (Managing Director, the recommendation of the Committee, the Board shall Whole-time Director, Executive Directors etc.) determine the remuneration. The Board can determine The remuneration (including revision in the GLNjHUHQWUHPXQHUDWLRQIRUGLNjHUHQW'LUHFWRUVRQWKHEDVLVRI UHPXQHUDWLRQ  RI ([HFXWLYH %RDUG PHPEHUV VKDOO their role, responsibilities, duties, time involvement etc. be approved by the Board on the basis of the Non-Executive Directors including Independent recommendation of the HR and Nomination Committee. Directors  7KH UHPXQHUDWLRQ SD\DEOH WR ([HFXWLYH %RDUG Pursuant to the provisions of Section 197 of the Companies PHPEHUVVKDOOFRQVLVWRI D )L[HG3D\ZKLFKLVSD\DEOH Act, 2013, rules made thereunder and the shareholders’ approval, the Board has approved the following remuneration monthly, and shall include basic pay, contributions to IRU 1RQ([HFXWLYH 'LUHFWRUV LQFOXGLQJ ,QGHSHQGHQW UHWLUHPHQWEHQHnjWVKRXVHUHQWDOORZDQFHRUFRPSDQ\ Directors): leased accommodation and other allowances as per the Company’s policy (b) Variable Pay (paid at the end L 3URǂWOLQNHG &RPPLVVLRQ (Payable annually after of Financial Year) directly linked to the performance of DSSURYDORIWKHnjQDQFLDOUHVXOWVIRUWKH\HDU the individual employee (i.e. achievement against pre- Non-Executive Directors who are nominees of determined KRAs), his / her respective Business Unit shareholders: and the overall Company’s performance (c) Long term USD 60,000/- per annum for Directors not residing incentive / ESOPs as may be decided by the HR & in India. Nomination Committee from time to time. ` 3,000,000/- per annum for Directors residing in Remuneration to Key Managerial Personnel (other India. than Managing Director and Whole-time Director), Independent Non-Executive Directors: Senior Management and other employees USD 100,000/- per annum for Directors not The remuneration of Key Managerial Personnel (other residing in India. than Managing Director and Whole-time Director), shall be as per the compensation and appraisal policy of the ` 5,000,000/- per annum for those residing in Company. India. The remuneration payable to key managerial personnel Chairman – Audit & Risk Management Committee, (other than Managing Director and Whole-time Director), and HR and Nomination Committee: senior management and other employees shall consist not residing in India – additional USD 100,000/- RI D )L[HG3D\ZKLFKLVSD\DEOHPRQWKO\DQGLQFOXGH per annum. EDVLF SD\FRQWULEXWLRQV WR UHWLUHPHQW EHQHnjWV KRXVH residing in India – additional ` 3,000,000/- per rent allowance or company-leased accommodation annum. and other allowances as per the Company’s policy (b) Chairman – Technology Committee: additional USD Variable Pay (paid at the end of Financial Year) directly 150,000/- per annum. linked to the performance of the individual employee (i.e. achievement against pre-determined KRAs), his / Committee Membership Fee (per committee): her respective business unit and the overall Company not residing in India – additional USD 10,000/- per performance (c) Long term incentive / ESOPs as may annum. be decided by the Committee from time to time. ` residing in India – additional 500,000/- per Disclosures by the Company annum. This Policy shall be disclosed in the Company’s Annual Travel fee if not residing in India: USD 10,000 per Report. meeting. General ii. Sitting Fees The Group Director – HR and the Company Secretary  ,Q DGGLWLRQ WR WKH SURnjW OLQNHG FRPPLVVLRQ WKH DUHMRLQWO\DXWKRULVHGWRDPHQGWKH3ROLF\WRJLYHHNjHFW Independent Directors will also be entitled to sitting fee WRDQ\FKDQJHVDPHQGPHQWVQRWLnjHGE\0LQLVWU\RI of ` 100,000/- for all Board meetings and all Committee &RUSRUDWH$NjDLUVRU6HFXULW\([FKDQJH%RDUGRI,QGLD meetings held in a single day. For avoidance of doubt, w.r.t. Directors’ any matter covered by this policy. The in case an Independent Director attends more than amended policy shall be placed before the Board for one Board and / or Committee meeting in a day, he will be paid consolidated sitting fee of ` 100,000/- for QRWLQJDQGUDWLnjFDWLRQ$Q\TXHVWLRQVDQGFODULnjFDWLRQV all such meetings. If the Board appoint any person as relating to this Policy should be addressed to the an alternate Director to an Independent Director, such Company Secretary at FRPSOLDQFHRǎFHU#EKDUWLLQ.

Board’s Report 57 Transformational Network

Secretarial Audit Report (Financial Year ended March 31, 2016) Annexure C

The Members  G  7KH6HFXULWLHVDQG([FKDQJH%RDUGRI,QGLD 6KDUH Bharti Airtel Limited %DVHGHPSOR\HH%HQHnjWV 5HJXODWLRQV Bharti Crescent, 1, Nelson Mandela Road,  H  7KH6HFXULWLHVDQG([FKDQJH%RDUGRI,QGLD ,VVXH Vasant Kunj, Phase-II, and Listing of Debt Securities) Regulations, 2008; New Delhi – 110070 Not Applicable We have conducted the secretarial audit of the compliance  I  7KH 6HFXULWLHV DQG ([FKDQJH %RDUG RI ,QGLD of applicable statutory provisions and the adherence to good (Registrars to an Issue and Share Transfer Agents) corporate practices by Bharti Airtel Limited (hereinafter Regulations, 1993 regarding the Companies Act called the Company). Secretarial Audit was conducted in a DQGGHDOLQJZLWKFOLHQWWRWKHH[WHQWRIVHFXULWLHV manner that provided us a reasonable basis for evaluating issued; the corporate conducts / statutory compliances and H[SUHVVLQJRXURSLQLRQWKHUHRQ  J  7KH 6HFXULWLHV DQG ([FKDQJH %RDUG RI ,QGLD (Delisting of Equity Shares) Regulations, 2009; %DVHGRQRXUYHULnjFDWLRQRIWKH&RPSDQ\šVERRNVSDSHUV and Not Applicable PLQXWH ERRNV IRUPV DQG UHWXUQV njOHG DQG RWKHU UHFRUGV maintained by the Company and also the information  K  7KH 6HFXULWLHV DQG ([FKDQJH %RDUG RI ,QGLD SURYLGHGE\WKH&RPSDQ\LWVRǎFHUVDJHQWVDQGDXWKRULVHG (Buyback of Securities) Regulations, 1998. Not representatives during the conduct of secretarial audit, Applicable We hereby report that in our opinion, the Company has, YL  7KH RWKHU ODZV DV LQIRUPHG DQG FHUWLnjHG E\ WKH GXULQJ WKH DXGLW SHULRG FRYHULQJ WKH njQDQFLDO \HDU HQGHG PDQDJHPHQW RI WKH &RPSDQ\ ZKLFK DUH VSHFLnjFDOO\ on March 31, 2016 complied with the statutory provisions applicable to the Company based on their Sectors / listed hereunder and also that the Company has proper Businesses are: Board-processes and compliance-mechanism in place to WKHH[WHQWLQWKHPDQQHUDQGVXEMHFWWRWKHUHSRUWLQJPDGH a) The Indian Telegraph Act, 1885 hereinafter: b) The Telecom Regulatory Authority of India Act, :HKDYHH[DPLQHGWKHERRNVSDSHUVPLQXWHERRNVIRUPV 1997 and Rules and Regulations made thereunder DQG UHWXUQV njOHG DQG RWKHU UHFRUGV PDLQWDLQHG E\ WKH c) The Indian Wireless Telegraphy Act, 1933 &RPSDQ\IRUWKHnjQDQFLDO\HDUHQGHGRQ0DUFK according to the provisions of: :H KDYH DOVR H[DPLQHG FRPSOLDQFH ZLWK WKH DSSOLFDEOH clauses of the following: (i) The Companies Act, 2013 (the Act) and the rules made thereunder; (i) Secretarial Standards issued by The Institute of &RPSDQ\ 6HFUHWDULHV RI ,QGLD EHLQJ HNjHFWLYH IURP (ii) The Securities Contracts (Regulation) Act, 1956 01.07.2015. (‘SCRA’) and the rules made thereunder; (ii) The Listing Agreements entered into by the Company (iii) The Depositories Act, 1996 and the Regulations and ZLWK1DWLRQDO6WRFN([FKDQJHRI,QGLD/LPLWHGDQG%6( %\HODZVIUDPHGWKHUHXQGHUWRWKHH[WHQWRI5HJXODWLRQ Limited and SEBI (Listing Obligations and Disclosure 55A; 5HTXLUHPHQWV 5HJXODWLRQVEHLQJHNjHFWLYHIURP LY  )RUHLJQ ([FKDQJH 0DQDJHPHQW $FW  DQG WKH 01.12.2015. UXOHVDQGUHJXODWLRQVPDGHWKHUHXQGHUWRWKHH[WHQWRI During the period under review the Company has generally Foreign Direct Investment, Overseas Direct Investment complied with the provisions of the Act, Rules, Regulations, DQG([WHUQDO&RPPHUFLDO%RUURZLQJV Guidelines, Standards, etc. mentioned above. (v) The following Regulations and Guidelines prescribed We further report that, XQGHUWKH6HFXULWLHVDQG([FKDQJH%RDUGRI,QGLD$FW 1992 (‘SEBI Act’): The Board of Directors of the Company is duly constituted ZLWK SURSHU EDODQFH RI ([HFXWLYH 'LUHFWRUV 1RQ([HFXWLYH  D  7KH 6HFXULWLHV DQG ([FKDQJH %RDUG RI ,QGLD Directors and Independent Directors. The changes in the (Substantial Acquisition of Shares and Takeovers) composition of the Board of Directors that took place during Regulations, 2011; the period under review were carried out in compliance with  E  7KH 6HFXULWLHV DQG ([FKDQJH %RDUG RI ,QGLD the provisions of the Act. (Prohibition of Insider Trading) Regulations, 2015; Adequate notice is given to all Directors to schedule the  F  7KH 6HFXULWLHV DQG ([FKDQJH %RDUG RI ,QGLD Board Meetings, agenda and detailed notes on agenda were (Issue of Capital and Disclosure Requirements) VHQWDWOHDVWVHYHQGD\VLQDGYDQFHDQGDV\VWHPH[LVWVIRU Regulations, 2009; VHHNLQJDQGREWDLQLQJIXUWKHULQIRUPDWLRQDQGFODULnjFDWLRQV

58 Annual Report 2015-16 40-125 Bharti Airtel Limited 02-39 | Corporate OverviewStatutory Reports 126-355 | Financial Statements

on the agenda items before the meeting and for meaningful in pursuance of the above referred laws, rules, regulations, participation at the meeting. guidelines, standards, etc. All decisions at Board Meetings and Committee Meetings are carried out unanimously as recorded in the minutes of Dr. S. Chandrasekaran the meetings of the Board of Directors or Committee of the Senior Partner Board, as the case may be.

We further report that there are adequate systems and Chandrasekaran Associates processes in the Company commensurate with the size Company Secretaries and operations of the Company to monitor and ensure Place: New Delhi Membership No. FCS No.: 1644 compliance with applicable laws, rules, regulations and guidelines. Date: April 22, 2016 &HUWLnjFDWHRI3UDFWLFH1R We further report that during the audit period the Board has approved the merger of Augere Wireless Broadband Note: This report is to be read with our letter of even date Private Limited with the Company and the said event may be ZKLFKLVDQQH[HGDV$QQH[XUH$ to this report and form an GHHPHGWRKDYHDPDMRUEHDULQJRQWKH&RPSDQ\šVDNjDLUV integral part of this report.

Annexure A to the Secretarial Audit Report

The Members Bharti Airtel Limited Bharti Crescent, 1, Nelson Mandela Road, Vasant Kunj, Phase-II, New Delhi – 110070

1. Maintenance of secretarial record is the responsibility 5. The compliance of the provisions of Corporate and of the management of the Company. Our responsibility other applicable laws, rules, regulations, standards is LV WR H[SUHVV DQ RSLQLRQ RQ WKHVH VHFUHWDULDO UHFRUGV WKH UHVSRQVLELOLW\ RI PDQDJHPHQW 2XU H[DPLQDWLRQ based on our audit. ZDV OLPLWHG WR WKH YHULnjFDWLRQ RI SURFHGXUHV RQ WKH random test basis. 2. We have followed the audit practices and processes as were appropriate to obtain reasonable assurance 6. The Secretarial Audit Report is neither an assurance about the correctness of the contents of the secretarial as to the future viability of the Company nor of the UHFRUGV 7KH YHULnjFDWLRQ ZDV GRQH RQ WKH UDQGRP HǎFDF\RUHNjHFWLYHQHVVZLWKZKLFKWKHPDQDJHPHQW WHVWEDVLVWRHQVXUHWKDWFRUUHFWIDFWVDUHUHǍHFWHGLQ KDVFRQGXFWHGWKHDNjDLUVRIWKH&RPSDQ\ secretarial records. We believe that the processes and practices, we followed provide a reasonable basis for Dr. S. Chandrasekaran our opinion. Senior Partner  :H KDYH QRW YHULnjHG WKH FRUUHFWQHVV DQG DSSURSULDWHQHVV RI njQDQFLDO UHFRUGV DQG %RRNV RI Accounts of the Company. Chandrasekaran Associates 4. Wherever required, we have obtained the Management Company Secretaries representation about the compliance of laws, rules and Place: New Delhi Membership No. FCS No.: 1644 regulations and happening of events etc. Date: April 22, 2016 &HUWLnjFDWHRI3UDFWLFH1R

Board’s Report 59 Transformational Network

The Annual Report on Corporate Social Responsibility (CSR) Activities Annexure D

1. Brief Outline of Company’s CSR Policy hunger, promoting preventive healthcare and sanitation At Bharti Airtel, business success is not just about and providing legal assistance to underprivileged SURnjWVDQGVKDUHKROGHUUHWXUQV:HEHOLHYHLQSXUVXLQJ under-trials. Bharti Airtel’s CSR and welfare activities wider socio-economic and cultural objectives and have are committed to create and support programmes that bring about sustainable changes through education. always endeavoured to not just live up to it, but to try DQG H[FHHG WKH H[SHFWDWLRQV RI WKH FRPPXQLWLHV LQ The detailed CSR Policy of the Company is which we operate. available on Company’s website at: http:// www.airtel.in/wps/wcm/connect/fd7b3172- The Board of Directors adopted the CSR policy of 02e5-4e25-af7e-51d64cc17534/CSR+Policy. the Company on April 29, 2014 which is available pdf?MOD=AJPERES&ContentCache=NONE. on the website of the Company. The Company’s CSR The overview of various CSR projects and programmes and welfare activities centers around promoting undertaken by the Company has been provided in the education with special emphasis on girl child, livelihood Corporate Social Responsibility & Sustainability Report enhancement education programmes, eradicating section of the Annual Report. 2. Composition of CSR Committee Name Designation Mr. Rakesh Bharti Mittal, Chairman Non-Executive Director Mr. D. K. Mittal Independent Director Mr. Gopal Vittal Managing Director & CEO (India & South Asia) (` Millions) 3. $YHUDJHQHWSURǂWEHIRUHWD[RIWKH&RPSDQ\IRUODVWWKUHHǂQDQFLDO\HDUV 94,502 4. Prescribed CSR Expenditure (2% of the amount as above) 1,890 5. Details of CSR spent during the year a) 7RWDODPRXQWWREHVSHQWIRUWKHnjQDQFLDO\HDU 1,890 b) Amount Unspent 1355.31

F   0DQQHULQZKLFKDPRXQWVSHQWGXULQJWKHnjQDQFLDO\HDU (` Millions) Sl. CSR project Sector in Projects or Amount Amount spent Cumulative Amount No. or activity which the programmes outlay on the projects expenditure spent: Direct LGHQWLǂHG project is (budget) or programmes up to the or through (1) Local area covered project or reporting implementing or other Sub-heads: programmes period agency (1) Direct (2) Specify wise expenditure the State and on projects or district where programmes projects or programmes (2) Overheads was undertaken Eligible CSR Programmes / Projects: 1. Satya Bharti Promotion of 6SHFLǟHG 224.79 196.59 196.59 Bharti School Program education below* Foundation (Operating Expenditure) 2. Satya Bharti Promotion of 6SHFLǟHG 90 90 90 Bharti School Program education below* Foundation (Capital Expenditure) 3. Satya Bharti Sanitation Ludhiana, 210 102.6 102.6 Bharti Abhiyan Punjab Foundation

60 Annual Report 2015-16 40-125 Bharti Airtel Limited 02-39 | Corporate OverviewStatutory Reports 126-355 | Financial Statements

(` Millions) Sl. CSR project Sector in Projects or Amount Amount spent Cumulative Amount No. or activity which the programmes outlay on the projects expenditure spent: Direct LGHQWLǂHG project is (budget) or programmes up to the or through (1) Local area covered project or reporting implementing or other Sub-heads: programmes period agency (1) Direct (2) Specify wise expenditure the State and on projects or district where programmes projects or programmes (2) Overheads was undertaken 4. Footwear Employment Chhindwara, 6.90 6.90 6.90 Centum Design and enhancing Madhya Foundation Development vocation skills Pradesh skill to youth 5. Education to Promotion of Dehradun, 1 1 1 Direct underprivileged education Uttarakhand Girl Child 6. Anubandh - Old Maintenance Jodhpur, 2 2 2 Direct Age Home of old age Rajasthan homes Total 534.69 394.3 394.3 Other Contributions: Carnegie India Public Policy New Delhi 16.93 16.93 16.93 Direct 1. and Research Miscellaneous Miscellaneous Miscellaneous 23.38 23.38 23.38 Direct 2.

Total 40.31 40.31 40.31 Grand Total 575 434.61 434.61 * District wise / State wise details of Satya Bharti School Program - Kaithal, Kurukshetra, Jhajjar, Mahendergarh, Rewari in Haryana; Amritsar, Ludhiana, Sangrur in Punjab; Amer, Neemrana, Jodhpur in Rajasthan; Sivaganga in Tamil Nadu; Farrukhabad, PPES, Shahjahanpur in Uttar Pradesh and Mushirdabad in West Bengal. District wise / State wise details of Satya Bharti Learning Program – Barmer, Sawaimadhopur, Jodhpur in Rajasthan; Barwani, Jhabau in Madhya Pardesh and Deoghar, Dumka, Godda, Pakur Sahibganj in Jharkhand. District wise / State wise details of Quality Support Model – Rewari, Mahendergarh, Kurukshetra in Haryana; Balesar, Shergarh, Mandore, Phalodi, Baori in Rajasthan; Nangla, Chandigarh in Punjab and Mundka in Delhi.

6. Reason for not spending the prescribed 2% amount  7KH&RPSDQ\KDGLQFUHDVHGLWV&65VSHQGLQJE\DSSUR[RYHUWKHSUHYLRXVnjQDQFLDO\HDULHIURP` 411 Mn in FY 2014-15 to ` 534.69 Mn in FY 2015-16. Additionally, the Company has also contributed ` 40.31 Mn towards various other charitable causes (disclosed as ‘other contributions’ in the above mentioned table) which do not fall under the ambit of CSR spending under the provisions of Section 135 of the Companies Act, 2013. The overall CSR spending of the Company for FY 2015-16, if added up, would have been ` 575 Mn. Being in the initial years of implementation, WKH&RPSDQ\LVSHUVLVWHQWO\H[SORULQJQHZRSSRUWXQLWLHVWRLQFUHDVHLWV&65H[SHQGLWXUHWRWKHSUHVFULEHGOHYHO$VD socially responsible company, it is committed to play a larger role in India’s sustainable development by embedding wider economic, social and ecological objectives.

7. Responsibility statement of the CSR Committee  7KH&RPPLWWHHFRQnjUPVWKDWWKHLPSOHPHQWDWLRQDQGPRQLWRULQJRI&653ROLF\LVLQFRPSOLDQFHZLWK&65REMHFWLYHVDQG policy of the Company.

Gopal Vittal Rakesh Bharti Mittal Managing Director & CEO (India & South Asia) Chairman, CSR Committee

Board’s Report 61 Transformational Network

Extract of Annual Return Annexure E

Form No. MGT - 9 DVRQWKHǂQDQFLDO\HDUHQGHGRQ0DUFK [Pursuant to Section 92(3) of the Companies Act, 2013 and rule 12(1) of the Companies (Management and Administration) Rules, 2014]

I. Registration and Other Details CIN L74899DL1995PLC070609 Registration Date July 07, 1995 Name of the Company Bharti Airtel Limited Category of the Company Limited by shares Sub-Category of the Company Indian Non-Government Company $GGUHVVRIWKH5HJLVWHUHGRnjFHDQGFRQWDFWGHWDLOV Bharti Crescent, 1, Nelson Mandela Road, Vasant Kunj, Phase - II, New Delhi – 110 070. Phone : +91 11 4666 6100 Whether listed company Yes Name, Address and Contact details of Registrar and Karvy Computershare Private Limited Transfer Agents Karvy Selenium Tower B, Plot number 31 & 32, Gachibowli, Financial District, Nanakramguda, Hyderabad – 500032, India. Phone : +91 040 6716 2222

II. Principal Business Activities of the Company Businesses contributing 10% or more of the total turnover of the Company are given below:

Sl. Name and Description of main products / NIC Code of the product / % to total turnover of the No. services service* Company 1 Wireless telecommunications activities 612 86.16% 2 Wired telecommunications activities 611 11.38%  $VSHU1DWLRQDO,QGXVWULDO&ODVVLnjFDWLRQŞ0LQLVWU\RI6WDWLVWLFVDQG3URJUDPPH,PSOHPHQWDWLRQ

III. Particulars of Holding, Subsidiary and Associate Companies Sl. Name of the Company Address CIN / Registration No. % of No. shares held Subsidiary Companies u/s 2(87)(ii) of the Companies Act, 2013 1 Bharti Airtel Services Limited Bharti Crescent, 1, Nelson Mandela Road, U64201DL1997PLC091001 100 Vasant Kunj, Phase - II, New Delhi - 110 070 2 Bharti Hexacom Limited Bharti Crescent, 1, Nelson Mandela Road, U74899DL1995PLC067527 70 Vasant Kunj, Phase - II, New Delhi - 110 070 3 Bharti Infratel Limited Bharti Crescent, 1, Nelson Mandela Road, L64201DL2006PLC156038 71.7 Vasant Kunj, Phase - II, New Delhi - 110 070 4 Bharti Infratel Services Bharti Crescent, 1, Nelson Mandela Road, U64200DL2013PLC253495 71.7 Limited (under process of Vasant Kunj, Phase - II, New Delhi - 110 070 VWULNLQJRNj 5 SmarTx Services Limited Bharti Crescent, 1, Nelson Mandela Road, U64202DL2015PLC285515 71.7 Vasant Kunj, Phase - II, New Delhi - 110 070 6 Indo Teleports Limited Bharti Crescent, 1, Nelson Mandela Road, U32204DL2008PLC183976 95 (formerly known as Bharti Vasant Kunj, Phase - II, New Delhi - 110 070 Teleports Limited) 7 Bharti Telemedia Limited Bharti Crescent, 1, Nelson Mandela Road, U92200DL2006PLC156075 95 Vasant Kunj, Phase - II, New Delhi - 110 070 8 Airtel M Commerce Services Bharti Crescent, 1, Nelson Mandela Road, U64200DL2010PLC201058 100 Limited Vasant Kunj, Phase - II, New Delhi - 110 070 9 Telesonic Networks Limited 4th Floor, ‘C’ Wing, Airtel Centre, U64200HR2009PLC039237 100 Plot No. 16, Phase - IV, Udyog Vihar, Gurgaon - 122 015, Haryana, India.

62 Annual Report 2015-16 40-125 Bharti Airtel Limited 02-39 | Corporate OverviewStatutory Reports 126-355 | Financial Statements

Sl. Name of the Company Address CIN / Registration No. % of No. shares held 10 Nxtra Data Limited Bharti Crescent, 1, Nelson Mandela Road, U72200DL2013PLC254747 100 Vasant Kunj, Phase - II, New Delhi - 110 070 11 Wynk Limited Bharti Crescent, 1, Nelson Mandela Road, U74140DL2015PLC275325 100 Vasant Kunj, Phase - II, New Delhi - 110 070 12 Augere Wireless Broadband Bharti Crescent, 1, Nelson Mandela Road, U64200DL2010PTC207522 100 India Private Limited Vasant Kunj, Phase - II, New Delhi - 110 070 13 Airtel Bangladesh Limited House # 34, Road # 19/A, Banani, C - 55081(1766)/04 100 (under amalgamation) Dhaka - 1213, Bangladesh 14 Bangladesh Infratel Networks House # 34, Road # 19/A, Banani, C - 93753/11 100 Limited (under liquidation) Dhaka - 1213, Bangladesh 15 Bharti Airtel (France) SAS 88, Ter Avenue Général Leclerc – 92100 RCS Nanterre 523 035 426 100 Boulogne, Billancourt 16 Bharti Airtel (Hongkong) 12/F, No. 3, Lockhart Road, Wanchai, 1080074 100 Limited Hongkong 17 Bharti Airtel (Japan) Shinjuku Park Tower 30th Floor, 7-1, 0111-01-055989 100 Kabushiki Kaisha Nishi Shinjuku 3-Chome, Shinjuku-ku, Tokyo 18 Bharti Airtel (UK) Limited 26, Red Lion Square, London, WC1R 4AG, 5917314 100 19 Bharti Airtel (USA) Limited 335, Madison Avenue 12thǠRRU F-060912000-217 100 New York 10017 20 Bharti Airtel Holdings 150, Orchard Road, #08-01, Orchard Plaza, 2007-18118-G 100 (Singapore) Pte Ltd Singapore 21 Bharti Airtel International Cim Corporate Services Ltd, Les Cascade 094380 CI/GBL 100 (Mauritius) Limited Building, Edith Cavell Street, Port Louis, Mauritius 22 Bharti Airtel International Overschiestraat 65, 1062 XD Amsterdam, 34387410 100 (Netherlands) B.V. The Netherlands 23 Bharti Airtel Lanka (Private) Level 11, West Tower, World Trade Centre, PV10652 100 Limited Echelon Square Colombo 1, Sri Lanka 24 Bharti Infratel Lanka (Private) Level 11, West Tower, world Trade Centre, 63290 100 Limited (under process of Echelon Square Colombo 1, Sri Lanka VWULNLQJRNj 25 Bharti International 150, Orchard Road, #08-01, Orchard Plaza, 2010-05788-R 100 (Singapore) Pte Ltd Singapore 26 Network Limited Cim Corporate Services Ltd, Les Cascade 25951/6339 100 Building, Edith Cavell Street, Port Louis, Mauritius 27 Africa Towers N.V. Overschiestraat 65, 1062 XD Amsterdam, 50979965 100 The Netherlands 28 Africa Towers Services Parkside Towers, Mombasa Road, Plot Nr. LR CPR/2011/56039 100 Limited 209-11880,PB 73146-00200, Nairobi, Kenya 29 Airtel (Ghana) Limited 2nd-4th Floors GNAT Heights, No. 30 C-71,259 75 Independence Avenue, North Ridge, Accra, Ghana 30 Airtel (Seychelles) Limited P.O. Box 1358, Emerald House, Providence, 841930-1 100 East Coast, Victoria, Mahe, Seychelles 31 Airtel (SL) Limited 25, Regent Road, Hill Station, Freetown, C/F/179/1998 100 Sierra Leone 32 Airtel Burkina Faso S.A. 771, Avenue du Prés. Aboubacar Sangoulé, BFOUA 2000-B-522 100 Lamizana, 01 Boite Postale 6622, Ouagadougou, 01, Burkina Faso 33 Airtel Congo S.A. 2ème étage, Immeuble SCI MONTE CRISTO, CG/BZV/07 B299 90 Rond-point de la Gare, Croisement du Boulevard Denis SASSOU NGUESSO et de l’avenue Orsy, B.P : 1038, Brazzaville - République du Congo 34 Airtel DTH Services (SL) C/o Airtel (SL) Limited, 42, Motor Road, 55/2011 100 Limited (under liquidation) Wilberforce, Freetown, Sierra Leone 35 Airtel DTH Services Nigeria Plot L2, Banana Island, Foreshore Estate, 932607 100 Limited (under liquidation) Ikoyi, Lagos, Nigeria 36 Airtel Gabon S.A. Rue Pecqueur, Immeuble Libreville Business 2001/B01 000 (7344/B) 90 Square, B.P. 9259, Libreville, Gabon

Board’s Report 63 Transformational Network

Sl. Name of the Company Address CIN / Registration No. % of No. shares held 37 Airtel Madagascar S.A. Immeuble Kube B, Zone Galaxy, Andraharo, 1997B00392 100 101 -Anantanarivo, Madagascar 38 Airtel Malawi Limited $LUWHO&RPSOH[&LW\&HQWUH2Nj&RQYHQWLRQ 5114 100 Drive, P.O Box 57, Lilongwe, Malawi 39 Airtel Mobile Commerce (SL) 25, Regent Road, Hill Station, Freetown, C/F/689/2009 100 Limited Sierra Leone 40 Airtel Mobile Commerce B.V. Overschiestraat 65, 1062 XD Amsterdam, 34375413 100 The Netherlands 41 Airtel Mobile Commerce 771 Avenue du Pres. Aboubacar Sangoule BFOUA2010B3275 100 Burkina Faso S.A. Lamizina, 01 Boite Postale 6622 Ouagadouugou 42 Airtel Mobile Commerce 30 Independence Avenue, North Ridge/ CA 62, 772 75 Ghana Limited GNAT Heights, Accra, Ghana 43 Airtel Mobile Commerce Overschiestraat 65, 1062 XD Amsterdam, 34381129 100 Holdings B.V. The Netherlands 44 Airtel Mobile Commerce Parkside Towers, Mombasa Road, P. O. Box C 169576 100 Kenya Limited 73146-00200, Narobi, Kenya 45 Airtel Mobile Commerce $LUWHO&RPSOH[&LW\&HQWUH2Nj&RQYHQWLRQ 9831 100 Limited (Malawi) Drive, P.O Box 57, Lilongwe, Malawi 46 Airtel Mobile Commerce Immeuble Kube B, Zone Galaxy, Andraharo, 2011B00235 100 Madagascar S.A. 101 -Anantanarivo, Madagascar 47 Airtel Mobile Commerce Gasabo District, Remera, Nyabisindu, Kigali, 102933620 100 Rwanda Limited Rwanda 48 Airtel Mobile Commerce Emerald House, Providence, Victoria, P.O. 841930-1 100 (Seychelles) Limited Box 1358, Mahe, Seychelles 49 Airtel Mobile Commerce Airtel House, Block 41 Kinondoni, Corner of 79802 100 Tanzania Limited A.H. Mwinyi Road/Kawawa Road, Kinondoni, Dar es Salaam, Tanzania 50 Airtel Mobile Commerce Avenue Charles De Gaulle, BP: 5665, TC/NDJ/10B 183 100 Tchad S.A.R.L. N’Djamena, Tchad 51 Airtel Mobile Commerce Airtel House, Plot 16A, Clement Hill Road, 123833 100 Uganda Limited Nakasero, Kampala, P. O. Box 6771, Kampala - Uganda 52 Airtel Mobile Commerce Airtel House, Stand 2375, Addis Ababa 80052 100 Zambia Limited Drive, P.O. Box 320001, Lusaka, Zambia 53 Airtel Money RDC S.A. 127, Avenue de Plateau, Gombe, Kinhasa, CD/KIN/RCCM/14-B-6552 100 Republique Democratique du Congo, Congo DRC 54 Airtel Money Niger S.A. 2054 Route de l’aéroport, B.P. 11922 NI-NIA 2009-B-1848 90 Niamey, Niger 55 Airtel Money S.A. (Gabon) Avenue de Colonet Parrant, BP 23 899 RG LBV 2101 B 09955 100 Libreville, Gabon 56 Airtel Networks Kenya Parkside Towers, Mombasa Road, P. O. Box 140223 100 Limited 73146-00200, Narobi, Kenya 57 Plot L2, Banana Island, Foreshore Estate/ 398557 79.06 Ikoyi Lagos, Nigeria 58 Airtel Networks Zambia Plc Plot 2375, Airtel House, Corner Addis Ababa 38136 96.36 Drive and Great East Road, Lusaka, Zambia 59 Airtel Rwanda Limited Airtel Building Gasabo District, Remera, 102437818 100 Nyabisindu, P.O. Box 4164, Kigali, Rwanda 60 Airtel Tanzania Limited Airtel House, Block 41 Kinondoni, Corner of 41291 60 A.H. Mwinyi Road/Kawawa Road, Kinondoni, Dar es Salaam, Tanzania 61 Airtel Tchad S.A. Avenue Charles De Gaulle, BP: 5665, TC/NDJ/10B127 (TC.NDJ 100 N’Djamena, Tchad 063B99) 62 Airtel Towers (Ghana) Limited 4th Floor, GNAT Heights, 30 Independence CA 82,071 75 Avenue, North Ridge, Accra, Ghana 63 Airtel Towers (S.L.) Company 25, Regent Road, Hill Station, CF/106/2011 100 Limited Freetown, Sierra Leone 64 Limited Airtel Towers, Plot 16A Clement Hill Road, V-232-36 100 Nakasero, P.O.Box 6771, Kampala-Uganda 65 Bharti Airtel Africa B.V. Overschiestraat 65, 1062 XD Amsterdam, 8076497 100 The Netherlands

64 Annual Report 2015-16 40-125 Bharti Airtel Limited 02-39 | Corporate OverviewStatutory Reports 126-355 | Financial Statements

Sl. Name of the Company Address CIN / Registration No. % of No. shares held 66 Bharti Airtel Burkina Faso Overschiestraat 65, 1062 XD Amsterdam, 08077622 100 Holdings B.V. The Netherlands 67 Bharti Airtel Chad Holdings Overschiestraat 65, 1062 XD Amsterdam, 34125184 100 B.V. The Netherlands 68 Bharti Airtel Congo Holdings Overschiestraat 65, 1062 XD Amsterdam, 08077621 100 B.V. The Netherlands 69 Bharti Airtel Developers Plot 2375, Airtel House, Corner Addis Ababa 82795 96.36 Forum Limited Drive and Great East Road, Lusaka, Zambia 70 Bharti Airtel DTH Holdings Overschiestraat 65, 1062 XD Amsterdam, 50921266 100 B.V. The Netherlands 71 Bharti Airtel Gabon Holdings Overschiestraat 65, 1062 XD Amsterdam, 08078528 100 B.V. The Netherlands 72 Bharti Airtel Ghana Holdings Overschiestraat 65, 1062 XD Amsterdam, 34204633 100 B.V. The Netherlands 73 Bharti Airtel Kenya B.V. Overschiestraat 65, 1062 XD Amsterdam, 38023926 100 The Netherlands 74 Bharti Airtel Kenya Holdings Overschiestraat 65, 1062 XD Amsterdam, 34164357 100 B.V. The Netherlands 75 Bharti Airtel Madagascar Overschiestraat 65, 1062 XD Amsterdam, 34204848 100 Holdings B.V. The Netherlands 76 Bharti Airtel Malawi Holdings Overschiestraat 65, 1062 XD Amsterdam, 8077659 100 B.V. The Netherlands 77 Bharti Airtel Mali Holdings B.V. Overschiestraat 65, 1062 XD Amsterdam, 34164359 100 The Netherlands 78 Bharti Airtel Niger Holdings Overschiestraat 65, 1062 XD Amsterdam, 34143743 100 B.V. The Netherlands 79 Bharti Airtel Nigeria B.V. Overschiestraat 65, 1062 XD Amsterdam, 34164360 100 The Netherlands 80 Bharti Airtel Nigeria Holdings Overschiestraat 65, 1062 XD Amsterdam, 08076499 100 B.V. (under liquidation) The Netherlands 81 Bharti Airtel Nigeria Holdings Overschiestraat 65, 1062 XD Amsterdam, 8077623 100 II B.V. The Netherlands 82 Bharti Airtel RDC Holdings Overschiestraat 65, 1062 XD Amsterdam, 34125193 100 B.V. The Netherlands 83 Bharti Airtel Services B.V. Overschiestraat 65, 1062 XD Amsterdam, 8077657 100 The Netherlands 84 Bharti Airtel Sierra Leone Overschiestraat 65, 1062 XD Amsterdam, 8078533 100 Holdings B.V. The Netherlands 85 Bharti Airtel Tanzania B.V. Overschiestraat 65, 1062 XD Amsterdam, 8078747 100 The Netherlands 86 Bharti Airtel Uganda Holdings Overschiestraat 65, 1062 XD Amsterdam, 8078530 100 B.V. The Netherlands 87 Bharti Airtel Zambia Holdings Overschiestraat 65, 1062 XD Amsterdam, 8076501 100 B.V. The Netherlands 88 Celtel (Mauritius) Holdings C/o Abax Corporate Services Ltd, 18259/3238 100 Limited 6thǠRRU7RZHU$&\EHUFLW\(EHQH Mauritius 89 Airtel Congo (RDC) S.A. 278, Avenue de’l Equateur, Kinshasa,Gombe, CD/KIN/RCCM/13-B-01054 98.5 Democratic Republic of Congo 90 Celtel Niger S.A. 2054 Route de l’aéroport, BP 11 922, NI-NIM-2007-B 1848 90 Niamey, Niger 91 Channel Sea Management C/o Abax Corporate Services Ltd, 6thǠRRU 18258/3237 100 Co Mauritius Limited Tower A, 1 Cybercity, Ebene, Mauritius 92 Congo RDC Towers S.A. Croisement des Avenues du Tchad et du Bas CD/KIN/RCCM/14-B-4040 100 Congo, Commune de la Gombe, Republique Democratique du Congo 93 Congo Towers S.A. (under Avenue Amilcar cabral, B.P. 1038, CG/BZV/11 B 2566 90 dissolution) Brazzaville, Republique du Congo 94 Gabon Towers S.A. (under 124 Avenue Bouet/ BP 9259, Libreville, 2013B11106 90 dissolution) Gabon 95 Telecom Trust & Corporate Services 70138 100 Limited Limited, 43/45, La Motte Street, St. Helier, Jersey, JE4 8SD, Channel Islands

Board’s Report 65 Transformational Network

Sl. Name of the Company Address CIN / Registration No. % of No. shares held 96 Madagascar Towers S.A. Immeuble Kube B, Zone Galaxy Andraharo, 2011 B 00184 100 101- Antananarivo, Madagascar 97 Malawi Towers Limited $LUWHO&RPSOH[&LW\&HQWUH2Nj&RQYHQWLRQ 10995 100 Drive, P.O Box 57, Lilongwe, Malawi 98 Mobile Commerce Congo S.A. 1er et 2ème étages, Immeuble SCI Monte 09B 1796 100 Cristo, Rond Point de la Gare, Croisement du Boulevard Denis Sassou Gnuesso & de l’avenue Orsy, Centre Ville, BP 1038, Brazzaville, République du Congo 99 Montana International Abax Corporate Services Ltd, 6thǠRRU 6/97/2593 100 Tower A, 1 Cybercity, Ebene, Mauritius 100 MSI-Celtel Nigeria Limited 7, Walter Carrington Crescent, Victoria 372966 100 (under liquidation) Island, Lagos 101 Partnership Investments 68/A Croisement des avenues du 51554 100 S.A.R.L. Commerce et Marais, 2ieme niveau, Gombe, Kinshasa, DRC 102 Société Malgache de Abax Corporate Services Ltd, 6thǠRRU 19022/3479 100 Telephonie Cellulaire S.A. Tower A, 1 Cybercity, Ebene, Mauritius 103 Tanzania Towers Limited Airtel House, Block 41 Kinondoni, Corner of 84005 60 A.H. Mwinyi Road/Kawawa Road, Kinondoni, Dar es Salaam, Tanzania 104 Tchad Towers S.A. Avenue Charles De Gaulle, BP: 5665, TC/NDJ 11 B 69 100 N’Djamena, Tchad 105 Towers Support Nigeria Plot L2, Foreshore Estate, Banana Island, 940514 79.06 Limited (under liquidation) Ikoyi, Lagos, Nigeria 106 Uganda Airtel House, Plot 16A, Clement Hill Road, 82317 100 Limited (under Nakasero, Kampala, P. O. Box 6771, Kampala amalgamation) - Uganda 107 Zap Trust Company Nigeria Plot L2, Banana Island, Foreshore Estate/ 889384 100 Limited (under liquidation) Ikoyi Lagos, Nigeria 108 Bharti Airtel Rwanda Holdings Abax Corporate Services Ltd, 6thǠRRU C083311 100 Limited (formerly known as Tower A, 1 Cybercity, Ebene, Mauritius Zebrano (Mauritius) Limited) 109 Airtel Money Transfer Limited Parkside Towers, Mombasa Road, L.R. Nr. CPR/2015/199517 100 209/11880, P.O. Box 73146-00200 Nairobi, Kenya Associates u/s 2(6) of the Companies Act, 2013 1 Tanzania 12th Floor, Exelcoms House, Dar es Salaam, 24490 35 Telecommunications Tanzania Company Limited 2 Seychelles Cable Systems Third Floor, Caravelle House, Victoria, Mahe, 846498-1 26 Company Limited Seychelles Joint Venture Companies u/s 2(6) of the Companies Act, 2013 1 Indus Towers Limited Bharti Crescent, 1, Nelson Mandela Road, U92100DL2007PLC170574 30.19 Vasant Kunj, Phase - II, New Delhi - 110 070 2 Bridge Mobile Pte Limited 750 Chai Chee Road, Technopark@ 200413856E 10 ChaiChee, The Oasis, #03-02/0, Singapore 469000 3 FireFly Networks Limited A-19, Mohan Co-operative Industrial Estate, U74999DL2014PLC264417 50 Mathura Road, New Delhi - 110044

66 Annual Report 2015-16 40-125 Bharti Airtel Limited 02-39 | Corporate OverviewStatutory Reports 126-355 | Financial Statements

IV. Shareholding Pattern (Equity Share Capital Breakup as percentage of Total Equity) (i) Category-wise Shareholding: Category of No. of shares held at the beginning of the year i.e. No. of shares held at the end of the year i.e. % Shareholders April 01, 2015 March 31, 2016 Change during Demat Physical Total % of Total Demat Physical Total % of the Shares Total year Shares A. Promoters Indian Individual / HUF ------Central Government ------State Government ------Bodies Corporate 1,747,545,460 - 1,747,545,460 43.72 1,802,318,492 - 1,802,318,492 45.09 1.39 Banks / FI ------Any Other ------Sub-Total (A) (1) 1,747,545,460 - 1,747,545,460 43.72 1,802,318,492 - 1,802,318,492 45.09 1.39 Foreign NRIs - Individuals ------Others - Individuals ------Bodies Corporate 857,180,286 - 857,180,286 21.44 865,673,286 - 865,673,286 21.66 - Banks / Financial ------Institutions Any other (Foreign 8,493,000 - 8,493,000 0.21 - - --- Institutional Investor) Sub-Total A(2) 865,673,286 - 865,673,286 21.66 865,673,286 - 865,673,286 21.66 - Total A=A(1)+A(2) 2,613,218,746 2,613,218,746 65.37 2,667,991,778 2,667,991,778 66.74 1.39 B. Public Shareholding Institutions Mutual Funds / UTI 108,033,416 - 108,033,416 2.70 99,168,397 - 99,168,397 2.48 (0.23) Banks / FI 932,054 - 932,054 0.02 1,291,949 - 1,291,949 0.03 0.01 Central Government ------State Government ------Venture Capital ------Funds 190,892,726 - 190,892,726 4.78 297,836,594 0 297,836,594 7.45 2.67 Companies FIIs (including foreign 716,795,355 - 716,795,355 17.93 670,962,174 0 670,962,174 16.78 (1.15) portfolio investors) Foreign Venture ------Capital Funds ------Others ------Sub-Total B(1) 1,016,653,551 - 1,016,653,551 25.43 1,069,259,114 - 1,069,259,114 26.75 1.30 Non Institutions Bodies Corporate i) Indian 110,752,708 5,444,270 116,196,978 2.91 4,079,321 5,444,270 9,523,591 0.24 (2.67) ii) Overseas ------Individual 29,099,563 8,418 29,107,981 0.73 27,145,695 8,852 27,154,547 0.68 (0.05) shareholders holding nominal share capital upto ` 1 lakh Individual 6,595,400 - 6,595,400 0.16 4,749,760 - 4,749,760 0.12 (0.04) shareholders holding nominal share capital in excess of `1 lakh 4XDOLǟHG)RUHLJQ ------Investor Foreign National ------Foreign Companies 204,952,716 - 204,952,716 5.13 204,127,716 - 204,127,716 5.11 (0.02) Non-resident Indians 2,159,619 - 2,159,619 0.05 2,174,198 - 2,174,198 0.05 0.00 Trusts 5,670,563 - 5,670,563 0.14 7,773,082 7,773,082 0.19 0.05 Clearing Members 2,844,548 - 2,844,548 0.07 4,416,431 - 4,416,431 0.11 0.04 Sub-Total B(2) 362,075,117 5,452,688 367,527,805 9.19 346,554,232 5,453,122 352,007,354 8.81 (2.69) Total Public 1,378,728,668 5,452,688 1,384,181,356 34.63 1,323,955,202 5,453,122 1,329,408,324 33.26 (1.39) shareholding (B) = B(1)+B(2) C. Shares held by ------Custodians for GDR’s & ADR’s Total (A) + (B) + (C) 3,991,947,414 5,452,688 3,997,400,102 100 3,991,946,980 5,453,122 3,997,400,102 100 -

Board’s Report 67 Transformational Network

(ii) Shareholding of Promoters: Sl. Shareholder Shareholding at the beginning of Shareholding at the end of the year No. Name the year No. of shares % of total % of shares No. of shares % of total % of shares shares pledged / shares pledged / % Change in of the encumbered of the encumbered shareholding Company to total Company to total shares shares

1 Bharti Telecom 1,747,545,460 43.72% - 1,802,318,492 45.09% - 1.37% Limited 2 Pastel Limited 591,319,300 14.79% - 591,319,300 14.79% - 0.00% 3 Indian Continent 265,860,986 6.65% - 265,860,986 6.65% - 0.00% Investment Limited 4 Viridian Limited 8,493,000 0.21% - 8,493,000 0.21% - 0.00% Total 2,613,218,746 65.37% - 2,667,991,778 66.74% - 1.37%

(iii) Change in Promoter Shareholding: Sl. Name of the Shareholding at the Date Increase/ Reasons Cumulative Shareholding No. Promoter beginning of the year decrease during the year / during the shareholding at the end of year the year

No. of shares % of total No. of shares % of total shares of the shares Company of the Company

1 Bharti 1,747,545,460 43.72% April 01, 2015 Telecom Limited May 08, 2015 3,068,055 Market 1,750,613,515 43.79% December 18, 2015 669,575 Purchase 1,751,283,090 43.81% through December 25, 2015 2,430,138 Stock 1,753,713,228 43.87% December 31, 2015 3,662,000 Exchanges 1,757,375,228 43.96% February 05, 2016 3,767,315 1,761,142,543 44.06% February 12, 2016 5,780,636 1,766,923,179 44.20% February 19, 2016 2,799,693 1,769,722,872 44.27% February 26, 2016 7,781,064 1,777,503,936 44.47% March 04, 2016 11,155,145 1,788,659,081 44.75% March 11, 2016 3,243,942 1,791,903,023 44.83% March 18, 2016 5,665,469 1,797,568,492 44.97% March 25, 2016 4,750,000 1,802,318,492 45.09% March 31, 2016 - 1,802,318,492 45.09% Note: There was no change in shareholding of other promoters during the year.

(iv) Shareholding Pattern of top ten Shareholders (other than Directors, Promoters and Holders of GDRs and ADRs): Sl. Name of the Shareholder Shareholding Cumulative Shareholding during No. the Year No. of Shares % of total shares No. of Shares % of total of the Company shares of the Company 1 Life Insurance Corporation of India At the beginning of the year 188,528,106 4.72 188,528,106 4.72 Bought during the year 54,318,505 1.36 242,846,611 6.08 Sold during the year 38,967,755 0.97 203,878,856 5.10 At the end of the year 203,878,856 5.10 203,878,856 5.10

68 Annual Report 2015-16 40-125 Bharti Airtel Limited 02-39 | Corporate OverviewStatutory Reports 126-355 | Financial Statements

Sl. Name of the Shareholder Shareholding Cumulative Shareholding during No. the Year No. of Shares % of total shares No. of Shares % of total of the Company shares of the Company 2 Dodge and Cox International Stock Fund At the beginning of the year 57,768,204 1.45 57,768,204 1.45 Bought during the year - - 57,768,204 1.45 Sold during the year 4,706,700 0.12 53,061,504 1.33 At the end of the year 53,061,504 1.33 53,061,504 1.33 3 Goldman Sachs (Singapore) Pte. Limited At the beginning of the year 56,471,438 1.41 56,471,438 1.41 Bought during the year 4,381,881 0.11 60,853,319 1.52 Sold during the year 60,794,806 1.52 58,513 0.00 At the end of the year 58,513 0.00 58,513 0.00 4 ICICI Prudential Life Insurance Company Limited At the beginning of the year 52,927,757 1.32 52,927,757 1.32 Bought during the year 17,555,443 0.44 70,483,200 1.76 Sold during the year 6,291,115 0.16 64,192,085 1.61 At the end of the year 64,192,085 1.61 64,192,085 1.61 5 HDFC Trustee Company Limited At the beginning of the year 37,898,454 0.95 37,898,454 0.95 Bought during the year 3,941,951 0.10 41,840,405 1.05 Sold during the year 18,359,840 0.46 23,480,565 0.59 At the end of the year 23,480,565 0.59 23480565 0.59 6 Skagen Kon-Tiki Verdipapirfond At the beginning of the year 29,648,206 0.74 29,648,206 0.74 Bought during the year - - 29,648,206 0.74 Sold during the year 5,511,908 0.14 24,136,298 0.60 At the end of the year 24,136,298 0.60 24,136,298 0.60 7 Capital World Growth and Income Fund At the beginning of the year 12,360,000 0.31 12,360,000 0.31 Bought during the year 11,759,712 0.29 24,119,712 0.60 Sold during the year - - 24,119,712 0.60 At the end of the year 24,119,712 0.60 24,119,712 0.60 8 Vanguard Emerging Markets Stock Index Fund At the beginning of the year 23,035,760 0.58 23,035,760 0.58 Bought during the year 372,872 0.01 23,408,632 0.59 Sold during the year 3,764,979 0.09 19,643,653 0.49 At the end of the year 19,643,653 0.49 19,643,653 0.49 9 Parvest Equity India At the beginning of the year 16,815,799 0.42 16,815,799 0.42 Bought during the year 9,594,201 0.24 26,410,000 0.66 Sold during the year 4,700,000 0.12 21,710,000 0.54 At the end of the year 21,710,000 0.54 21,710,000 0.54 10 Franklin Templeton Mutual Fund At the beginning of the year 21,411,657 0.54 21,411,657 0.54 Bought during the year 8,289,355 0.21 29,701,012 0.74 Sold during the year 3,619,873 0.09 26,081,139 0.65 At the end of the year 26,081,139 0.65 26,081139 0.65 11 ICICI Prudential Mutual Funds At the beginning of the year 15,740,500 0.39 15,740,500 0.39 Bought during the year 28,459,974 0.71 44,200,474 1.11 Sold during the year 23,548,042 0.59 20,652,432 0.52 At the end of the year 20,652,432 0.52 20,652,432 0.52

Board’s Report 69 Transformational Network

Sl. Name of the Shareholder Shareholding Cumulative Shareholding during No. the Year No. of Shares % of total shares No. of Shares % of total of the Company shares of the Company 12 Abu Dhabi Investment Authority At the beginning of the year 20,121,580 0.50 20,121,580 0.50 Bought during the year 21,558,223 0.54 41,679,803 1.04 Sold during the year 14,149,740 0.35 27,530,063 0.69 At the end of the year 27,530,063 0.69 27,530,063 0.69 13 Government Pension Fund Global At the beginning of the year 17,509,170 0.44 17,509,170 0.44 Bought during the year 3,826,196 0.10 21,335,366 0.53 Sold during the year 10,913,849 0.27 10,421,517 0.26 At the end of the year 10,421,517 0.26 10,421,517 0.26 Note: The details of shareholding are maintained by respective Depositories and it is not feasible to provide daily change in the shareholding of top ten shareholders. Therefore, consolidated changes during the year 2015-16 have been provided.

(v) Shareholding of Directors and Key Managerial Personnel Sl. Name of the Shareholding at the Date Increase/ Reasons Cumulative No. Director or KMP beginning of the decrease Shareholding year during during the year / the year shareholding at the end of the year No. of % of total No. of % of total Shares shares Shares shares of the of the Company Company Key Managerial Personnel 1 Mr. Gopal Vittal 114,885 0.00% April 01, 2015 114,885 0.00% Managing Director & CEO (India & South Asia) May 01, 2015 10,000 Shares allotted 124,885 0.00% under ESOP August 14, 2015 20,000 Shares allotted 144,885 0.00% under ESOP September 18, 2015 65,000 Shares allotted 209,885 0.00% under ESOP December 18, 2015 20,000 Shares allotted 229,885 0.00% under ESOP March 31, 2016 229,885 0.00% 2 Mr. Srikanth 4,913 0.00% April 01, 2015 4,913 0.00% Balachandran* March 25, 2016 (4,000) Market Sale 913 0.00% March 31, 2016 913 0.00% 3 Mr. Nilanjan Roy# 1,673 0.00% April 01, 2015 1,673 0.00% May 08, 2015 (1,673) Market Sale 0 0.00% June 05, 2015 2,750 Shares allotted 2,750 0.00% under ESOP December 18, 2015 5,867 Shares allotted 8,617 0.00% under ESOP December 25, 2015 (2,750) Market Sale 5,867 0.00% March 31, 2016 5,867 0.00%  1RRWKHU'LUHFWRURU.03KHOGDQ\VKDUHVRIWKH&RPSDQ\GXULQJWKHnjQDQFLDO\HDU  5ROHFKDQJHGWR*OREDO&KLHI+52ǎFHUZHI$XJXVW # Appointed as Global CFO w.e.f. August 05, 2015.

70 Annual Report 2015-16 40-125 Bharti Airtel Limited 02-39 | Corporate OverviewStatutory Reports 126-355 | Financial Statements

V. Indebtedness Indebtedness of the Company including interest outstanding / accrued but not due for payment (` Millions) Secured Loans Unsecured Deposits Total excluding deposits Loans Indebteness Indebtedness at the beginning of WKHǂQDQFLDO\HDU i) Principal Amount 19 215,678 - 215,697 ii) Interest due but not paid - - - - iii) Interest accured but not due - 267 - 267 Total (i+ii+iii) 19 215,945 - 215,964 Change in indebtedness during WKHǂQDQFLDO\HDU Addition 17 306,576 - 306,593 Reduction 16 64,839 - 64,855 Net Change 1 241,737 - 241,738 Indebtedness at the end of the ǂQDQFLDO\HDU i) Principal Amount 20 457,415 - 457,435 ii) Interest due but not paid - - - - iii) Interest accured but not due - 1,218 1,218 Total (i+ii+iii) 20 458,633 - 458,653

VI. Remuneration of Directors and Key Managerial Personnel A. Remuneration to Managing Director, Whole-time Directors and / or Manager: (` Millions) Sl. Particulars of Remuneration Name of Managing Director / Whole-time Total No. Director / Manager Amount Mr. Sunil Bharti Mittal Mr. Gopal Vittal Chairman Managing Director & CEO (India & South Asia) 1 Gross salary (a) Salary as per provisions contained in 246.22 59.02 305.24 Section 17(1) of the Income-tax Act, 1961 (b) Value of perquisites u/s 17(2) Income-tax 11.78 0.05* 11.83 Act, 1961 (c) 3URǟWVLQOLHXRIVDODU\XQGHU6HFWLRQ   --- Income-tax Act, 1961 2 Stock Option - 41.78* 41.78 3 Sweat Equity - - - 4 Commission - - - DVRISURǟW --- -others, specify… - - - 5 Others – PF Contribution 20.55 3.04 23.59 Total (A) 278.55 103.89 382.44 Ceiling as per the Act `0Q EHLQJRI1HW3URǟWVRIWKH&RPSDQ\ calculated as per Section 198 of the Companies Act, 2013). * Value of perquisites u/s 17 (2) Income Tax Act, 1961 does not include perquisite value of ` 41.78 Mn towards stock options exercised by Mr. Gopal Vittal during FY 2015-16. The same has been shown separately in point no. (2).

Board’s Report 71 Transformational Network

B. Remuneration to Non-Executive Directors including Independent Directors: (` Millions) Independent Directors Fee for attending board Commission Total / committee meetings Mr. Ben Verwaayen 0.50 16.68 17.18 Mr. Craig Ehrlich 0.50 9.95 10.45 Mr. D. K. Mittal 1.00 7.00 8.00 Mr. Manish Kejriwal 0.40 6.50 6.90 Ms. Obiageli Ezekwesili1 - 3.55 3.55 Mr. Shishir Priyadarshi 0.50 9.95 10.45 Mr. V. K. Viswanathan 0.50 8.00 8.50 Total B1 3.40 61.63 65.03

Other Non-Executive Directors Fee for attending board Commission Total / committee meetings Mr. Rakesh Bharti Mittal2 - 0.70 0.70 Ms. Chua Sock Koong - 3.98 3.98 Mr. Rajan Bharti Mittal3 - 2.30 2.30 Ms. Tan Yong Choo - 3.98 3.98 Sheikh Faisal Thani Al-Thani - 3.98 3.98 Total B2 - 14.94 14.94 Total B = (B1+B2) 3.40 76.57 79.97 Ceiling as per the Act `0Q EHLQJRI1HW3URǟWVRIWKH&RPSDQ\FDOFXODWHGDVSHU Section 198 of the Companies Act, 2013). Total Managerial Remuneration ` 462.41 Mn (A+B) Total ceiling as per the act (11%) `0Q EHLQJRI1HW3URǟWVRIWKH&RPSDQ\FDOFXODWHGDVSHU Section 198 of the Companies Act, 2013). (1) Term of Ms. Obiageli Ezekwesili ended on September 25, 2015. (2) Appointed w.e.f. January 07, 2016. (3) Ceased to be Director of the Company w.e.f. January 07, 2016. C. Remuneration to Key Managerial Personnel other than Managing Director / Whole-time Director / Manager:

(` Millions) Sl. Particulars of Remuneration Key Managerial Personnel Total Amount No. Mr. Nilanjan Roy Mr. Rajendra Chopra Global CFO# Company Secretary# 1 Gross Salary (a) Salary as per Sec 17(1) of Income Tax Act, 31 6.97 37.97 1961 (b) Value of perks as per Sec 17(2) of Income 0.09* 0.04 0.13 Tax Act, 1961 (c) 3URǟWVLQOLHXRIVDODU\XQGHU6HFWLRQ   --- Income Tax Act, 1961 2 Stock Options 2.15* - 2.15 3 Sweat Equity - - 0 4 Commission - - 0 DVRISURǟW --0 - others, specify… - - 0 5 Others - PF Contribution 1.14 0.32 1.46 Total 34.38 7.33 41.71  9DOXHRISHUTXLVLWHVXV  ,QFRPH7D[$FWGRHVQRWLQFOXGHSHUTXLVLWHYDOXHRI`0QWRZDUGVVWRFNRSWLRQVH[HUFLVHGE\0U1LODQMDQ5R\ during FY 2015-16. The same has been shown separately in point no. (2). # Mr. Nilanjan Roy was appointed as Global CFO w.e.f. August 05, 2015 and Mr. Rajendra Chopra was appointed as Company Secretary w.e.f. April 28, 2015. However, the remuneration provided above for Global CFO and Company Secretary is for the FY 2015-16.

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72 Annual Report 2015-16 40-125 Bharti Airtel Limited 02-39 | Corporate OverviewStatutory Reports 126-355 | Financial Statements

Annexure F

Particulars of Energy Conservation, Technology ORZHU HQHUJ\ FRQVXPSWLRQ DQG PRUH HǎFLHQW Absorption and Foreign Exchange Earnings and Outgo cooling. Installed Variable Frequency Drives (VFDs) in for A. Conservation of Energy the HVAC systems, which helps to automatically 1. The Company undertook various initiatives to reduce the motor’s speed and power driven. reduce and conserve energy: a. On Network side:  3HUIRUPHG LGHQWLnjFDWLRQ DQG UHFWLnjFDWLRQ RI KRW spots and optimised lighting and aircon usage.  0D[LPLVLQJ RXWGRRU Ş 1HZ VLWHV KDYH EHHQ deployed as outdoor sites with reduced need of  0DLQWDLQHGDQDYHUDJH3RZHU8WLOLVDWLRQ(ǎFLHQF\ air-conditioners and diesel. WRLPSURYHHǎFLHQF\DFURVVDOO'DWD&HQWUHV Sites on sharer basis – Deployed new sites on F (QHUJ\HDŽFLHQF\LQ$LUWHOIDFLOLWLHV shared basis, which results in reduction of their Use of Variable Frequency Drive for HVAC system. energy consumption by 30% as compared to standalone sites.  5HWURnjWWHG WKH YDULRXV EXLOGLQJV ZLWK HQHUJ\ HǎFLHQWDLUFRQGLWLRQLQJDQG/('OLJKWV Incremental sites have been deployed outdoor by utilising technology like low power consuming BTS, Introduced UPS optimisation at its technology Free Cooling Unit (FCU), Natural Cooling Unit (NCU), centres. Micro Cooling Unit (MCU), Power Management Installed Automatic Power Factor Controller, Units (PMUs). $3)& DWRǎFHDFURVV3DQ,QGLD Installed advance VRLA battery banks, Li-ion 2. Utilisation of green energy: Battery solutions and other operational measures. Rooftop Solar at Main Switching Centres (MSCs): Introduced air-conditioning rationalisation, The Company has installed solar power plants at reducing the consumption by 10%. total 14 MSC locations by the end of FY 2015-16, H[SDQGLQJWKHWRWDOLQVWDOOHGFDSDFLW\WR0:S  'HSOR\HG HQHUJ\ HǎFLHQW UHWURnjWV LQ %76 VLWHV such as integrated power management systems, Green Power Wheeling for MSC and Data Centres: HǎFLHQW'&WR$&FRQYHUWRUVHǎFLHQWDLUFRQV 7R HQKDQFH WKH HQHUJ\ HǎFLHQF\ WKH &RPSDQ\ implemented the renewable sources of energy  ,QVWDOOHGHQHUJ\HǎFLHQWDLUFRQGLWLRQLQJDQG/(' at its core locations. Green Power Wheeling lighting in core locations. agreements were made for procuring green  ,QWURGXFHG LQQRYDWLYH GHVLJQ PRGLnjFDWLRQV DW HQHUJ\IRUORFDWLRQVDQGLVSODQQLQJWRH[WHQG sites: the same for nine more sites. Trail conducted on solar natural cooling Solar and battery hybrid solution: The Company, solutions. with help of its network infrastructure partners, Designed and installed outdoor small cell converted over 350 additional sites to green sites sites with ground based mast with Li-ion by utilising solar and battery hybrid solution in batteries reducing the energy consumption FY 2015-16. by 30-40%. Reduction by using battery back-ups: In FY 2015- Installed sites with auto-TRX shutdown 16, over 4,530 sites were installed with advance feature, which reduces the energy VRLA batteries and Li-ion battery solutions to requirement at non-peak hours. reduce the running of DG set. Few sites were also installed with Li-ion battery banks by utilising Piloted TRX shutdown feature for cell, sector ground based mast designs with Li-ion battery and cluster level. solution. Installed shelters with optimal cooling, power  ,QVWDOODWLRQRIVRODUSODWHVIRUIDFLOLWLHVDQGRǎFH and thermal management systems etc. premises. Reduced the indoor placement of BTS, which 3. The capital investment on energy conservation reduced the air-conditioning load. equipment is shown below: E (QHUJ\HDŽFLHQF\DFURVV'DWD&HQWUHV Sl. Location Capex The Company puts emphasis on optimising the data No. (in ` centre facilities, operations for energy conservation, Millions) improved space utilisation and enhanced performance. Some of the initiatives undertaken are as follows: 1 2ZQVLWHV +H[DFRP &RUH 47 TOCO (Indus Towers & Bharti Use of cold aisle containment as a physical barrier 2 487 Infratel) & SP (Ericsson /NSN) WR UHGXFH WKH PL[LQJ RI FROG VXSSO\ DLU DQG KRW H[KDXVW DLU LQ 'DWD &HQWUH DLVOHV 7KLV GHOLYHUV TOTAL 534

Board’s Report 73 Transformational Network

B. Technology Absorption  $LUWHO LV WKH njUVW WHOHFRP FRPSDQ\ WR LPSOHPHQW 6HOI  7KHHǁRUWVPDGHWRZDUGVWHFKQRORJ\DEVRUSWLRQ Optimising Network (SON), enabling automation of Indian mobile broadband demand has been growing QHWZRUN RSWLPLVDWLRQ RI LWV FRPSOH[ PXOWLWHFKQRORJ\ H[SRQHQWLDOO\DWPRUHWKDQ&$*5,QGLDQRZKDV multi-vendor networks. It has enabled dynamic the second largest internet user base with more than FRQnjJXUDWLRQ RI WKH QHWZRUN IRU VHDPOHVV KDQGRYHUV 400 Mn internet users, out of which more than 80% of in 3G & 2G network, thus reducing the drop calls. Real the users are using internet service on mobile network. time balancing of network load across congested and There are 1 Bn wireless subscribers as opposed to a non-congested sites have reduced overloading, thus mere 26 Mn wireline subscribers. improving user throughput and blocking in the network. Real time optimisation has improved network utilisation With an objective to provide best in class mobile WKXV LPSURYLQJ HǎFLHQF\ RI WKH DYDLODEOH VSHFWUXP EURDGEDQG H[SHULHQFH WR RXU FXVWRPHUV DQG and network capacity. Airtel has pioneered customer LPSURYHPHQW LQ VSHFWUXP HǎFLHQF\ $LUWHO HQYLVDJHG GHPDQG FHQWULF QHWZRUN SODQQLQJ  GHQVLnjFDWLRQ deployment of 75,000 sites last year. This was a by getting visibility of the network consumption on challenging task as this had to be deployed across JUDQXODU P [ P JULG ,W KDV KHOSHG LQ HQVXULQJ India in partnership with multiple vendors. Every tower deployment of new sites, small cells in corridors of high installation required proper wireless planning, MW planning, transport planning, availability of material, FRQVXPSWLRQ WKXV LPSURYLQJ HǎFLHQF\ RI WKH QHZ permission, alignment of material with ASP team, deployments. MW team, provisioning team. All the deployment was In case of imported technology (imported during happening on live sites, which made this deployment the last three years reckoned from the beginning of H[HUFLVHHYHQPRUHFULWLFDO WKHǂQDQFLDO\HDU  Deployment of these sites was essential to launch a. The details of technology imported: 3G sites in 6 gap markets and a pan India 4G launch. The Company has not imported any technology We also planned to re-farm 900MHz spectrum to 3G in the given period, only telecom equipment were for improved indoor coverage for mobile broadband imported. network, increasing capacity of 3G networks and b. Year of import: LQFUHDVLQJHǎFLHQF\RIWKHVFDUFHVSHFWUXPUHVRXUFHV N.A.  7R PDQDJH WKH H[LVWLQJ QHWZRUN EHWWHU $LUWHO KDV c. Whether the technology been fully absorbed: embraced Self Optimisation Network & Geo-analytical N.A. WRROVUHDOWLPHFXVWRPHUH[SHULHQFHEDVHGRSWLPLVDWLRQ of its mobile broadband network. These platforms d. If not fully absorbed, areas where absorption have enabled automatic optimisation of multi-layered has not taken place, and the reasons thereof: networks, thereby reducing drop calls, network N.A. blocking, and increasing data throughputs for setting QHZEHQFKPDUNVLQHQGXVHUH[SHULHQFH 3. The expenditure incurred on Research and Development: In our continuous endeavour to be pioneers in new NIL technology, we launched carrier aggregation, dual band 3G, 3G dual carrier last year. 7KHHǁRUWVPDGHWRZDUGVFUHDWLQJDGLJLWDO$LUWHO: With the growth of smartphones and the consumers  7KHEHQHǂWVGHULYHGIURPWHFKQRORJ\DEVRUSWLRQ becoming more and more digitally savvy, there is a huge  7KURXJKPHWLFXORXVDQGHNjHFWLYHSODQQLQJDQGSURMHFW focus towards creating a digital Airtel. There is a massive management, we managed to deploy more than SURJUDPPHUXQQLQJZLWKIRFXVRQGLJLWLVLQJH[SHULHQFHIRU 88,000 towers in our network and additional 20,000 the customers as well as internally for employees. Digitisation .PRInjEUHDFURVV,QGLD7KURXJKWKLVZHGRXEOHGRXU is helping us seamlessly manage the ever changing mobile broadband footprint. We now connect more RUJDQLVDWLRQDO FRPSOH[LWLHV WKDW FRPH ZLWK WKH VFDOH RI than 350,000 towns and villages through high speed 250 Mn subscribers, 500 Mn monthly transactions and broadband. Last year we launched 4G in all 14 licensed 1.5 Mn retailers. circles and 3G in 6 gap circles. In this journey we also ODXQFKHG ,QGLDšV njUVW GXDO EDQG * LQ 0XPEDL  Market Digitisation: The entire sales and distribution chain MHz was re-farmed in 5 circles this year – AP, KK, NESA, of the organisation from retailers to distributors as well as our Punjab, Mumbai. entire salesforce are fully empowered with a digital suite of apps that gives them ready access to qualitative information  $LUWHO EHFDPH WKH njUVW FRPSDQ\ LQ ,QGLD WR ODXQFK on their mobile with full transparency in market planning, carrier aggregation, LTE TD and FD, on a commercial target setting, KPI scorecard measurements and earnings. device reaching a speed of 135 Mbps. Airtel also This app suite gets over 6 Mn hits per month and has helped SLRQHHUHG ,QGLDšV njUVW GXDO FDUULHU LQ 7DPLO 1DGX IRU enhance revenue and drive key value propositions in the 3G in 2100 MHz reaching a peak speed on 42 Mbps. market. This technology adoption and innovation helped us to PDQDJH WKH VSHFWUXP HǎFLHQWO\ DQG SURYLGH D JUHDW Customer Acquisition: 7KHFXVWRPHUDFTXLVLWLRQǍRZKDV EURDGEDQGH[SHULHQFHWRRXUFXVWRPHUV been digitised for postpaid and Telemedia, where customers

74 Annual Report 2015-16 40-125 Bharti Airtel Limited 02-39 | Corporate OverviewStatutory Reports 126-355 | Financial Statements

can check feasibility, services and plans and purchase new schedules, allows appointment, booking and provides FRQQHFWLRQV RU PDNH FKDQJHV WR H[LVWLQJ RQHV DOO RQOLQH PD[LPXPHǎFLHQF\LQWKHHQWLUHSURFHVV7KLVDOORZVXVWR through www.airtel.in. Airtel stores also provide a world VHUYLFHRXUFRQVXPHUVDQG%%FOLHQWVPRUHHǎFLHQWO\DQG FODVV GLJLWDO DQG WUDQVSDUHQW H[SHULHQFH IRU DFTXLVLWLRQV HNjHFWLYHO\ through eCAF, an in-house solution enabling on-the-spot Due to all these advanced developments, Airtel has won the postpaid activations with self-selected mobile number and a prestigious Global TM forum digital award for ‘Outstanding SHUVRQDOLVHGǍH[LEOHSODQ Contribution to Improved Business Agility Award – Communications Industry’. Customer Service: P\$LUWHO DSS RNjHUV IXOO ǍH[LELOLW\ DQG control to consumers to view their usage, make payments, C. Foreign Exchange Earnings and Outgo self-service any plan changes, recharge their prepaid or DTH $FWLYLWLHV UHODWLQJ WR LQLWLDWLYHV WDNHQ WR LQFUHDVH H[SRUWV connections etc. Millions of consumers around the country GHYHORSPHQW RI QHZ H[SRUW PDUNHWV IRU SURGXFWV DQG are using myAirtel app on a daily basis. VHUYLFHVDQGH[SRUWSODQV Workforce Management: 9DULRXV njHOG IRUFHV RI $LUWHO IRU 7RWDOIRUHLJQH[FKDQJHXVHGDQGHDUQHGIRUWKH\HDU service, installation and fault repair etc., have also been ` 41,867 Mn. digitised through a workforce management solution called D  7RWDO)RUHLJQ([FKDQJH(DUQLQJV “Airtel Konnect” which automatically assigns tasks, manages E  7RWDO)RUHLJQ([FKDQJH2XWJR` 112,627 Mn.

Annexure G Statement of Disclosure of Remuneration under Section 197(12) of Companies Act, 2013 read with Rule 5(1) of Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 L 7KHSHUFHQWDJHLQFUHDVHLQUHPXQHUDWLRQRIHDFK'LUHFWRU&KLHI)LQDQFLDO2DŽFHU&KLHI([HFXWLYH2DŽFHUDQG Company Secretary during FY 2015-16, ratio of the remuneration of each Director to the median remuneration of the employees of the Company for FY 2015-16 and comparison of the remuneration of each Key Managerial Personnel (KMP) against the performance of the Company are as under:

Sl. Name of the Director Remuneration of Percentage Ratio of Comparison of No. Director / KMP increase in remuneration remuneration of for FY 2015-16 remuneration of each KMP against the (in `) in FY 2015-165 Director performance of to median the Company remuneration of the employees of the Company5,6 Executive Directors 1. Mr. Sunil Bharti Mittal, 278,546,235 2.494 347.49 The Company’s Chairman revenue has increased by 2. Mr. Gopal Vittal, 62,105,442* 16.234 77.48 11.7% on year to Managing Director & CEO year basis and (India & South Asia) revenue from operations has increased by 8.66% year to year basis. Non-Executive Directors 3. Mr. Rakesh Bharti Mittal1 696,721 N.A. 3.74 4. Ms. Chua Sock Koong 3,979,974 6.38 4.97 5. Mr. Rajan Bharti Mittal2 2,303,279 (0.35) 3.73 6. Ms. Tan Yong Choo 3,979,974 6.38 4.97 7. Sheikh Faisal Thani Al-Thani 3,979,974 5.16 4.97 Independent Directors 8. Mr. Ben Verwaayen 17,183,179 (30.95) 21.44 9. Mr. Craig Ehrlich 10,449,935 15.76 13.04 10. Mr. D. K. Mittal 8,000,000 33.33 9.98 11. Mr. Manish Kejriwal 6,900,000 - 8.61 12. Ms. Obiageli Ezekwesili3 3,548,456 (12.14) 9.10 13. Mr. Shishir Priyadarshi 10,449,935 (10.04) 13.04 14. Mr. V. K. Viswanathan 8,500,000 3.64 10.60

Board’s Report 75 Transformational Network

Sl. Name of the Director Remuneration of Percentage Ratio of Comparison of No. Director / KMP increase in remuneration remuneration of for FY 2015-16 remuneration of each KMP against the (in `) in FY 2015-165 Director performance of to median the Company remuneration of the employees of the Company5,6 Key Managerial Personnel other than Executive Directors 15. Mr. Nilanjan Roy7 22,410,832# 11.554 - The Company’s Global Chief Financial revenue has 2njFHU increased by 16. Mr. Rajendra Chopra8 7,002,382^ 58.764 - 11.7% on year to Company Secretary year basis and revenue from operations has increased by 8.66 % year to year basis. 1. From January 07, 2016 to March 31, 2016. 2. From April 01, 2015 to January 07, 2016. Mr. Rajan Bharti Mittal ceased to be Director of the Company. 3. Term of Ms. Obiageli Ezekwesili ended on September 25, 2015. 4. The value of performance linked incentive (PLI) in remuneration of Key Managerial Personnels (KMPs) represents incentive which will accrue at 100% SHUIRUPDQFHOHYHO)RUHNjHFWLYHFRPSDULVRQWKH3/,FRPSRQHQWRIWKHLUUHPXQHUDWLRQIRU)<KDVDOVREHHQFRQVLGHUHGDWSHUIRUPDQFH level. 5. Based on Annualised Remuneration.  5HPXQHUDWLRQRI(PSOR\HHVDQG.03VGRHVQRWLQFOXGHSHUTXLVLWHYDOXHRIVWRFNRSWLRQVH[HUFLVHGGXULQJWKHnjQDQFLDO\HDU 7. From August 05, 2015 to March 31, 2016. 8. From April 28, 2015 to March 31, 2016.  7KHUHKDVEHHQQRFKDQJHLQUHPXQHUDWLRQSROLF\IRU1RQ([HFXWLYH'LUHFWRUV&KDQJHLQUHPXQHUDWLRQRI1RQ([HFXWLYH'LUHFWRUVYLV¢YLVSUHYLRXV\HDU LVGXHWRFKDQJHLQWKHLU&RPPLWWHHPHPEHUVKLSDQGFKDQJHLQIRUHLJQH[FKDQJHUDWHV  7KHUHPXQHUDWLRQRI0U*RSDO9LWWDOH[FOXGHVSHUTXLVLWHYDOXHRIVWRFNRSWLRQVRI`H[HUFLVHGGXULQJWKHFXUUHQWnjQDQFLDO\HDU  7KHUHPXQHUDWLRQRI0U1LODQMDQ5R\H[FOXGHVSHUTXLVLWHYDOXHRIVWRFNRSWLRQVRI`H[HUFLVHGGXULQJWKHFXUUHQWnjQDQFLDO\HDUDQGFDVK payout of ` 9,813,969 under performance-based long-term incentive plan of the Company.  A7KHUHPXQHUDWLRQRI0U5DMHQGUD&KRSUDH[FOXGHVFDVKSD\RXWRI` 327,367 under performance-based long-term incentive plan of the Company. ii. 7KHSHUFHQWDJHLQFUHDVHLQWKHPHGLDQUHPXQHUDWLRQRIWKHHPSOR\HHVLQWKHǂQDQFLDO\HDU There has been a decrease of 4.5% in median remuneration of employees in FY 2015-16 as compared to FY 2014-15. iii. The number of permanent employees on the roll of the Company: There were 9,596 employees on the rolls of the Company as on March 31, 2016. iv. The explanation on the relationship between average increase in remuneration and Company performance: The revenue growth during FY 2015-16 over FY 2014-15 was 11.7% and revenue from operations increased was 7KHDYHUDJHLQFUHDVHLQWKHUHPXQHUDWLRQRIHPSOR\HHVH[FOXGLQJ.H\0DQDJHULDO3HUVRQQHOGXULQJ)< was 9%. v. a) Variation in the market capitalisation: The market capitalisation is based on closing share price quoted on NSE, ` 1,572,177.46 Mn at March 31, 2015 and ` 1,402,287.96 Mn at March 31, 2016 i.e. decrease of 10.80%. b) Price earnings ratio: The price earning ratio was 18.58 at March 31, 2016 as compared to 11.91 at March 31, 2015 i.e. an increase of 56.01%. c) Percentage increase in the market quotation of shares of the Company as compared to the rate of last SXEOLFRǁHU The closing price of Company’s equity shares of face value of ` 5/- each on NSE and BSE as of March 31, 2016 was ` 350.80 and ` 350.90 respectively, representing 1,459% increase over IPO price of ` 45/- per equity share of face value of ` 10/- each.

76 Annual Report 2015-16 40-125 Bharti Airtel Limited 02-39 | Corporate OverviewStatutory Reports 126-355 | Financial Statements

vi. Average percentage increase already made in the salaries of employees other than the managerial personnel in )<DQGLWVFRPSDULVRQZLWKWKHSHUFHQWDJHLQFUHDVHLQWKHPDQDJHULDOUHPXQHUDWLRQDQGMXVWLǂFDWLRQ thereof:7KHDYHUDJHLQFUHDVHLQWKHUHPXQHUDWLRQRIHPSOR\HHVH[FOXGLQJ.03VGXULQJ)<ZDVDQGWKH average increase in the remuneration of KMPs was 22.26%. The increase of 22.26% is due to substantial increase in VDODU\RI&KLHI)LQDQFLDO2ǎFHUDQG&RPSDQ\6HFUHWDU\RIWKH&RPSDQ\ZKLFKZDVEDVHGRQH[WHUQDOEHQFKPDUNLQJ internal parity, Company’s performance and individual performance level. vii. The key parameters for any variable component of remuneration availed by the Directors: In terms of Company’s UHPXQHUDWLRQ3ROLF\WKHNH\SDUDPHWHUVIRUWKHYDULDEOHFRPSRQHQWRIUHPXQHUDWLRQDYDLOHGE\WKH([HFXWLYH'LUHFWRUV are directly linked to performance of the individual (i.e. achievement against pre-determined KRAs), his / her respective Business Unit and the overall Company’s performance. No other Director receives any variable pay. viii. The ratio of the remuneration of the highest paid Director to that of the employees who are not Directors but receive remuneration in excess of the highest paid Director during the year: During the year 2016, no employee UHFHLYHGUHPXQHUDWLRQLQH[FHVVRIKLJKHVWSDLG'LUHFWRU ix. $DŽUPDWLRQWKDWWKHUHPXQHUDWLRQLVDVSHUWKHUHPXQHUDWLRQSROL F\RIWKH&RPSDQ\ The remuneration of Directors was as per the Remuneration Policy of the Company.

$XGLWRUVš&HUWLǂFDWHUHJDUGLQJ&RPSOLDQFHRI&RQGLWLRQVRI&RUSRUDWH*RYHUQDQFH Annexure H

To The Members of Bharti Airtel Limited,

:HKDYHH[DPLQHGWKHFRPSOLDQFHRIFRQGLWLRQVRIFRUSRUDWHJRYHUQDQFHE\%KDUWL$LUWHO/LPLWHG ţWKH&RPSDQ\Ť IRUWKH year ended March 31, 2016, as stipulated in Clause 49 of the Listing Agreement (“Listing Agreement”) of the Company with WKH6WRFN([FKDQJHVIRUWKHSHULRG$SULOWR1RYHPEHUDQGDVSHUWKHUHOHYDQWSURYLVLRQVRI6HFXULWLHV DQG([FKDQJH%RDUGRI,QGLD /LVWLQJ2EOLJDWLRQVDQG'LVFORVXUH5HTXLUHPHQWV 5HJXODWLRQV ţ/LVWLQJ5HJXODWLRQVŤ DV referred to in Regulation 15(2) of the Listing Regulations, for the period December 01, 2015 to March 31, 2016. 7KHFRPSOLDQFHRIFRQGLWLRQVRIFRUSRUDWHJRYHUQDQFHLVWKHUHVSRQVLELOLW\RIWKHPDQDJHPHQW2XUH[DPLQDWLRQZDVOLPLWHGWR procedures and implementation thereof, adopted by the Company for ensuring the compliance of the conditions of Corporate *RYHUQDQFH,WLVQHLWKHUDQDXGLWQRUDQH[SUHVVLRQRIRSLQLRQRQWKHnjQDQFLDOVWDWHPHQWVRIWKH&RPSDQ\ ,QRXURSLQLRQDQGWRWKHEHVWRIRXULQIRUPDWLRQDQGDFFRUGLQJWRWKHH[SODQDWLRQVJLYHQWRXVZHFHUWLI\WKDWWKH&RPSDQ\ has complied with the conditions of Corporate Governance as stipulated in the above mentioned Listing Agreement / Listing Regulations, as applicable. :HIXUWKHUVWDWHWKDWVXFKFRPSOLDQFHLVQHLWKHUDQDVVXUDQFHDVWRWKHIXWXUHYLDELOLW\RIWKH&RPSDQ\QRUWKHHǎFLHQF\RU HNjHFWLYHQHVVZLWKZKLFKWKHPDQDJHPHQWKDVFRQGXFWHGWKHDNjDLUVRIWKH&RPSDQ\

For S.R. Batliboi & Associates LLP Chartered Accountants ICAI Firm Registration Number: 101049W

per Nilangshu Katriar Place: Gurgaon Partner Date: April 27, 2016 Membership Number: 58814

Board’s Report 77 Transformational Network ness d Core d Core es Manager Annexure I Annexure d-India Foods es Manager of Managerial Personnel) Managerial Personnel) of Development &HQWXP/HDUQLQJ&KLHI)LQDQFLDO2njFHUDQG+HDG,7 Planning Previous employment / Designation employment Previous %KDUWL,QIRWHO/WG&KLHI7HFKQRORJ\2njFHU Planning 1DWLRQDO3DQDVRQLF6U6DOHV2njFHU ) ` (in Gross Gross 9,404,799 Mumbai / Audit Assistant & Associates, Kucheri Remuneration Remuneration Nature of duties of duties of of Nature the employee Development Total Total (in years) experience experience Date of of Date Employment Commencement of Commencement of 52 07-Jul-2014 33 IT 53,471,402 Architect / Global Chief Telefonica (In Age years) MBA 42 Military the Royal Sandhurst Academy 19-Jul-2010 19 Business Head 8,546,484 Head AMD India Pvt/ Marketing Ltd B.Com, CAMBA 56 01-Sep-2004 47 26 21-Nov-2001 Finance 24 Business Head 37,342,589 / VP-Corp Finance & Engineering Industries Ltd. Triveni 11,934,893 4XDOLǂFDWLRQ V &KLHI2SHUDWLQJ2njFHU0DUNHW2SHUDWLRQV - Kerala Head Data & Circuit Core & IN A&E Core Head Data & Circuit B.E'LUHFWRU&0'šV2njFH &KLHI2SHUDWLQJ2njFHU0DUNHW2SHUDWLRQV83 West 46 29-Apr-2010 23 Network 9,989,317 / AVP Varaprasad Name Designation 1213 Anupam Arora14 V Gunari Aravind 15 Aggarwal Archana 16 Basu Argha 17 Aruna Pidikiti18 Ashish Arora19 Ashish Jain Homes S & M Head - Telemedia 20 CTO Circle Ashish Mehra Head Media Planning & Buying21 Ganapathy Ashok 22 Asit Tandon & TSG Dev - Prod Vice President Sr. Sachdeva Atul 23 Hub CTO MBA Business - Corporate CEO Sohoni Atul 24 MBA - Finance Vice President 25 N&E - Sales EGB Vice President Operations-Maharashtra - Market CEO Deepak Avinash MBA26 Sarkar Ayan 27 Balakrishnan Janardhanan VP - Network Sr. Planning28 Head Wireless Dash PGDBM Biswaranjan 4229 B.E C Surendran MBA Commerce 44 - Sales Vice President Campbell Mcclean Business Head Regional 02-Jan-199830 48 MBA 09-Dec-2013 Narasimha Venkata Chamakura Head Marketing M.Tech. 50 Head Cons Biz IT 47 25-Feb-2008 18 PGDBM 45 Architect Chief 46 15 03-May-2013 KK Operations CEO-Market 02-Aug-2010 Sales B.E 25 42 Brand 08-Aug-2005 B.E MBA 03-Apr-2007 46 27 & TSG Dev Prod 27 43 07-Aug-2014 21-Dec-2000 20 Business Head 21 Sales B.E & MBA PG Diploma B.Sc / BCA 29-Aug-2006 46 10,759,715 Network 20 6,412,694 Business Head / Business Head-Mpls VSNL 47 / GM Limited 25 Bharti Telemedia 45 9,427,128 19,384,793 from Graduated & Gamble / Country Media Manager Procter Finance 02-Apr-2007 Mediaworks / CEO Reliance 21 Network 38 26-Apr-2004 50 49 28-Aug-2006 12,949,419 Network / National Sales Head Sify Ltd 8,006,101 23 30-Jan-2006 8,932,351 04-Nov-2003 Manager / Associate 21-May-2001 Professional Manpower 26 / Head NSS Ltd BPL Mobile Cellular 22 Network 6,476,515 Sales 11,741,579 Sales 13 28 26 (TECH) Director STPI / Dy. 11,191,037 an / Head- BSS, Transmission Ltd Teleservices Marketing Tata Business Head IT 9,476,305 Manager / General 16,691,538 6,783,094 8,373,494 / Head-Outsourcing Modi Xerox Sal & Zonal Manager / Branch Ltd BPL Cellular Accounts) / National Head (Strategic Infonet BT 6,312,091 - Marketing / Manager Ltd. Idea Cellular 7,022,605 / Manager Ltd Koshika Telecom Sl. No. 910 Anant Arora11 Anil Bahl Anjani Rathor South - EGB CEO & PMO Head - IT Governance Tax Head India Indirect PGDBM CA-Inter B.E / B.Tech 43 49 47 10-Dec-2007 11-Apr-2003 01-Apr-2008 19 26 21 IT Business Head Finance 17,156,116 / Head - Sales Operations Ltd Infocomm Reliance 14,253,914 6,381,946 and Busi Strategy Boeing / Director, Delhi Accenture Tax S.R. Batliboi & Co / Manager-Indirect 12 A Ganesh3 Savargaonkar Abhay 4 Kohli Aditya 5 Ajai Puri6 Jain Ajay 7 Chitkara Ajay 8 Networks & CTO Director Akhil R Garg Amit Anchal VP - Distribution Head Sr. Head HR - Enabling Functions Operations - Market Director & Data Business - Global Voice Director CTO Circle B.E. / B. Tech Head FR - India - Business Development Vice President Sr. PGDBM / B. Tech PG Diploma PGDBM 51 MBA 39 Graduation Post 05-Aug-2006 40 01-Feb-2013 55 44 13-Oct-2014 26 39 15-May-2004 01-May-2001 MBA / CA 15 M.E Operations 18 Sales 10-Jun-2002 35 22 HR 39 Business Head Business Head 17 23,500,210 44 23-Jan-2014 Business 13,242,012 41,274,542 23,009,593 27-Jul-2001 Manager / General Limited India / Business Hea Sal Foods / Area Cargill Max Limited Comsat 14 12,435,284 / Head P&R Bank Chartered Standard 23 Finance Network 6,623,041 GM / Sr. Pepsico 7,731,306 / Head Projects Group) ENIL (TOI 35 Khajuria Dharmender 36 Bhagat Dhruv UP East Operations CEO-Market PGDBM 46 01-Sep-2006 20 Business Head 18,834,037 / Business Head Ltd. Essar Hutchison 3132 Tripathi Chandrakant 33 Ramamoorthy Chandrasekar 34 Sanghi Deepak Khanna Deven Experience Head - Network CTO Circle & IP Planning Head Transport MBA B.E B.Tech 34 03-Feb-2014 42 44 11 29-Mar-2004 29-Dec-2000 Network 21 22 Network Network 10,287,791 Associate / Senior Booz & Company 9,430,938 6,922,018 Consultant Nortel Networks / Technical O&M Core Manager / Deputy Ltd Telecom Reliance Statement of particulars under Section 197(12) of the Companies Act, 2013 read with the Companies (Appointment and Remuneration the Companies Act, 2013 read Section 197(12) of particulars under of Statement Rules, 2014 for the year ended March 31, 2016 ended March year the 2014 for Rules, the Financial Year Throughout (A) Employed

78 Annual Report 2015-16 40-125 Bharti Airtel Limited 02-39 | Corporate OverviewStatutory Reports 126-355 | Financial Statements rvice, North North India ctor dent & Head lobal IT ging director sident, HR irector - Financial Controls irector s Manager Senior Manager Senior - Sales of Managerial Personnel) Managerial Personnel) of Government Business Government Commerce Internet /DNPH/HYHU3ULYDWH/LPLWHG&KLHI2SHUDWLQJ2njFHU +&/,QǟQHW/LPLWHG=RQDO+HDG1RUWK (DVW $NjDLUV Previous employment / Designation employment Previous ) ` (in Gross Gross 61,381,456 / CIO Global Markets BBVA 46,505,666 Chain - Global supply Vice President / Group GE Energy Remuneration Remuneration Technology Management Nature of duties of duties of of Nature the employee Total Total (in years) experience experience Date of of Date Employment Commencement of Commencement of 42 24-Oct-2013 17 Information 42 17-Dec-2012 20 Chain Supply (In Age years) Engg) MBA 38 06-May-2013BA 14 International Business MarketingAdministration 62 02-Sep-2013 17,054,977 32 Regulatory Corporate 10,239,068 - Corporate / Director Indian Pvt Limited WC&C Carrefour 4XDOLǂFDWLRQ V &KLHI,QQRYDWLRQ2njFHU &(2:\QN +HDG([WHUQDO$NjDLUV Name Designation 4647 Harsh Dhillon48 Guruswamy Hemanth Kumar Krishna Indeevar Homes CEO Head - Channel & Inside Sales Ops Head Market B.A PGDBM PGDBM 44 45 20-May-2013 27-Jan-2014 476566 Singla Mukesh 67 19 Chaganti Murthy 01-Nov-2010 2168 Aldangady Naveen 69 Sales Sanghi Naveen 70 Marketing Navin Shenoy 2271 Nikhil Gilani72 Nikhil Kumar Finance Controller-NSGExperience Customer 73 Gujarat Operations CEO-Market Chain Supply head - DTH Vertical Nilanjan Roy74 M Pandian 15,350,411 75 Head - Legal & Compliance and Se Chopra Operations CITIBANK / Head - Branch Pankaj 9,560,251 76 VP Retail / Sr. 6,726,644 Matrimony.com Sarna Pankaj Business / Head - Carrier Head Advertising Telecom Tulip Routray Prasad B.E MBA Head - 4G LTE Head - Cust Experience & Billing Systems CA Global CFO PGDCA Head Planning Head CSD LLM Lead India Tax Business Head Regional 46 49 PGDBM 44 10-Apr-2014 54 01-Feb-2007 43 MBA 19-Nov-2001 17-Jul-2001 28 26 03-Aug-2004 PG Diploma 38 CA B.Tech 20 Business Head SCM MBA 21 CA 19 15-Jul-2013 Finance 37 42 IT Legal 14,345,362 Business Head / Circle Aircel 09-May-2007 41 14 11-Feb-1998 50 46 Brand 55 7,224,123 16-Jul-2012 15 01-Mar-2006 / Head - Source RCL 8,806,027 21 Manager / Deputy Spice Communication Limited 19-Oct-2001 16-Jan-1999 Marketing Sales 7,094,503 21 9,306,925 26 Legal Manager / Dy Spice Communication Limited / Manager BPL Mobile Ltd 25 Network 31 Finance 6,915,042 Manager Brand / Sr. Limited Hindustan Unilever Experience Customer Finance 8,224,370 business - Retail / Manager VSNL 6,655,687 7,432,694 / Asst. Manager Limited BPL Cellular / Executive-Sales Ltd Koshika Telecom 6,325,587 22,410,832 Account Manager Technical / Sr. Wireless Ruckus / Finance Director / Plc, Usa Nv Unilever 8,334,473 Channels - Indirect / Controller Ltd. Modi Xerox 45 Harmeen Mehta4950 Walia Inder Jijo John Global CIO5152 Kamal Dua53 Singh Ahluwalia Kanwardeep 54 Sheth Kartik 55 Asrani Kishor Integration Head Middleware 56 Mahesh Halankar - Human Resources Director Group 57 Manikandan R58 EGB Head USD & CTO Manish Agarwal59 Manish Prakash FR India Segment Head60 Manoj Murali PGDBM61 Sc & BE (computer Singh Khurana Manpreet PGDBM CTO Circle N&E - EGB CEO 62 Manu Sood Mohan Shukla Experience - Customer Vice President 63 Global Head Taxation64 & Ops Head - Global Infrastructure Monika Gupta & Government - Enterprise Director B.Tech 58 Moti Gyamlani 40 B.Com Rajasthan Hexacom Operations - Market CEO B.Sc MBA 06-Aug-2007 MBA 20-Jul-2009 MBA Punjab Operations - Market CEO 43 PGDBM - IT Vice president 32 CA / CS 37 MBA Chain 19 - Supply Director 49 Human Resources 02-Jul-2001 45 MBA IT 08-Mar-2007 40 42 12-May-2004 46 58,631,316 01-Oct-2001 42 21 Vice Pre Mittal / Executive Arcelor 03-Jul-2014 15 02-Jan-2014 47 29 15-Feb-2005 Network 11-Dec-2008 21 in Masters Finance B.E 43Experience Customer 10-Jan-2011 13 20 Business Head 25 7,117,224 18 13-Jan-2012 / Engineer Technologies IT Business Head 6,840,574 / Cholamandalam Investment 20 Business Head Finance 6,288,710 - Bengaluru / Account Manager Ltd. Infotway Satyam 15,439,820 15 8,378,810 Network Sale / Area Greaves 42 Crompton Idea / AM 23,755,323 / Mana Limited Australia Accenture Business Head 11,070,358 02-Jan-2015 10,482,315 14,879,354 - G / Vice President Manager General Noida / Deputy HCL Technologies HCL TEchnologies, 17,538,178 9,511,501 13 - Manager / General Limited Hindustan Lever Network / Head of Ltd Aircel IT 7,111,135 / Director Ericsson Sl. No. 3738 Kumar Dushyant 39 Khandelwal Gaurav 40 Gautam Anand41 Mathen George 42 Gopal Vittal43 Singh Gurpreet Group Operations Head Central 44 Business - Consumer Controller Commercial Harjeet Kohli Singh Kohli Harjinder CA Head HR S&D CS DTH Nadu Tamil Operations - Market CEO B.E / B.Tech Homes S & M Head - Telemedia - India & South Asia MD & CEO Vertical Head - Government Graduation Post Treasurer Group 38 50 47 MBA PGDM 03-Nov-2014 MBA 02-Nov-1998 B Com 17-Nov-2006 15 24 25 42 39 Finance MBA Network 50 Business Head 49 12-Nov-2002 30-Jul-2009 03-Apr-2012 22-Sep-2011 15,243,730 20 10,271,427 17 Coca Cola India / Head 42 12,519,532 / D Limited Hindustan Unilever 25 / Manager Ltd Internet Bharti BT 29 Sales HR Business Head 19-Jan-2009 Sales 18 62,105,442 Dire / Executive Limited Hindustan Uniliver Finance 7,837,546 Manager 13,432,412 / Dy. India Solutions Ltd. ISERV Management / Portfolio Citibank 8,897,286 Vice Presi / Sr. Limited Sify Technologies 21,305,479 India / Director Citigroup Rules, 2014 for the year ended March 31, 2016 ended March year the 2014 for Rules, the Financial Year Throughout (A) Employed Statement of particulars under Section 197(12) of the Companies Act, 2013 read with the Companies (Appointment and Remuneration the Companies Act, 2013 read Section 197(12) of particulars under of Statement

Board’s Report 79 Transformational Network l ne r ccounts) / Director - / Director President rity COO ons & Marketing Manager ons & Marketing d Care Channel Development, Channel Development, d Care duct Manager - Prepaid duct Manager peration of Managerial Personnel) Managerial Personnel) of Previous employment / Designation employment Previous 5HOLDQFH(QHUJ\*HQHUDWLRQ/WG6HQLRU2njFHU & Sales Marketing Development, Management Materials Director Business IMEA & PS Solution Sales Wirelsss 6LHPHQV6U2njFHU ) ` (in Gross Gross 7,002,382 Secretary / Company Ltd DLF Power 7,490,854 Viom Networks / GM - Corp Comm Remuneration Remuneration Nature of duties of duties of of Nature the employee Regulatory Communications Total Total (in years) experience experience Date of of Date Employment Commencement of Commencement of 46 14-Jun-2007 19Experience Customer 8,085,731 Technology Manager India / Senior Convergys (In Age years) CS / LLBin Didgital Electronics(PG) 44MBA 16-Mar-2005 23 & Corp Secretarial 40 05-Jan-2015 17 SCMPGDM / B.E 20,780,544 / Ltd. Company Mobile (China) Investment Microsoft 40 21-Feb-2006 16 Business Head 11,827,728 Manager / Product BPL Mobile Ltd 4XDOLǂFDWLRQ V Regulatory &KLHI*OREDO6RXUFLQJ2njFHU &KLHIRSHUDWLQJ2njFHU0DUNHW2SHUDWLRQV Maharashtra Name Designation Sl. No. 9394 Sanghvi P. Ritesh 95 Vig Rohin 96 Marwha Rohit 97 Relan Rohit Malhotra Rohit Head Marketing Ops Head Pricing & Market - SCM Vice President Ops Head Market - Retail CEO PGDBM MBA CA CA 40 PGDM 37 16-Jul-2001 37 10-Jun-2002 46 23-Jul-2007 18 48 15 Marketing 04-Apr-2005 Marketing 15-Apr-2009 15 SCM 21 24 10,555,872 Experience Customer / Director Prints & Packs Vijaya Business Head 6,884,794 Bharti / GM Airtel Ltd 9,489,069 Manager / Sr. Ltd. Teleservices Tata 10,968,143 21,769,873 Assurance Inc / Revenue Worldspace - South Zo / Head Operation India Ltd Retail Pantaloon 7778 Surana Pravin Purumedh Gupta7980 Raghunath Mandava81 Rahul Sethi82 Rajat Dhawan Chopra Rajendra 83 Tax Head Direct Business Head Regional 84 Experience - Customer Director Rajesh Gupta Rajesh Kumar8586 Head Sales Business Head Regional Rajnish Verma & - Corp. Secretarial Vice President Sr. 87 Kumar Rakesh BE & MBA Ram Kuppuswamy B.Tech88 CTO Circle 89 CSO - Global Business Ranjan Sharma90 CA Rashim Kapoor91 Gandhi 49 Ravi Parkash - Sales Vice President 92 Singh Negi Ravindra PG Diploma CTO Circle 40 Khan Raza 29-Sep-2003 Sourcing Capex Head - Network MBA 09-Apr-2007 Policies Regulatory Chief Head Service Operations Platform 37 43 PGDBA / Diploma Bengal 26 Operations-West - Market CEO 98 23-Jan-2006 18 PG Diploma 03-Nov-2005 Business Head PG Diploma99 S Balasubramanian B.Tech PGDBM Communications - Corporate Vice President Engineering100 Sales Sachin Deshpande 41101 Sachin Verma 16 PG Diploma 20102 Sachin R Sarna B.Tech 43,775,855 45 M Tech 44 / Operati Ltd. Hindustan Lever Saibal Roy Finance 01-Jun-2006 Sales103 43 Financial Controller Group 44 Batra Sameer 41 19-Apr-2006 15-Mar-2005 Head Small Cell Solution & Acq 44104 31-Aug-2005105 Chugh Sameer 18 01-Aug-2000 7,071,505 IT EA Core 45 09-Mar-2015 Kirit Anjaria Sameer Business / Incharge Ltd. Systems Autocomp 48 Tata 05-May-2011 22 - Sales Vice President 106 22 Sales Sandeep Gupta 21 6,558,226 03-Mar-2008107 Network 21 Business Head Regional 01-Apr-2006 7,505,692 Sales 20 PGDBM CA A 21 Lead (Strategic / Circle Ltd. Infocomm Reliance 108 Berry Sanjay Network109 Kashyap Sanjeev Business Head Assam Operations -Market CEO SCM - Legal Director 24110 Mishra Corporate Sanjiv 26111 Kanade Sarang 112 Satyamoorti Sivasubramanian Legal A & E LAB Head Wireless 6,826,650 49 Network MBA113 Phatak Sayali Sales Manager / Area Ltd 6,800,177 BPL Mobile Cellular 15,694,619 / Pro Ltd. ADIL Rajasthan / DGM Koshika Telecom 50114 - IT Balasubramaniam Vice President Senthil Kumar Sr. B.Tech 6,523,191 MMS / B.E - SNG CTO 8,754,671 - Finance Sales Manage / Regional Vice President Limited Sr. Telecom Reliance B.Tech Leader Shailesh Gupta 26-Dec-2014 / Team Infocom Reliance CTO Circle - Sales Vice President 08-Aug-2005 8,412,971 Experience - Customer Director / Director India Pvt Ltd ZTE Telecom 21 B.Tech 13,436,683 9,810,730 43 42 LLB, PGDBM Usha / Vice Communication Limited Reliance General Director BSNL / Joint Deputy - Legal Vice President Sr. 47 25 Network 40 Head SAE IP & Transport CA 03-Dec-2012 13-Apr-2005 Finance PhD 23-Aug-2012 Graduation Post 42 09-Jul-2007 46 MBA 19 21 45 MBA 28 04-Aug-2014 B.E 19 30-Nov-2012 9,088,542 LLB Business Head Sales / P.Ltd. International Radius Synergies Sales 47 02-Mar-2010 13,298,712 PG Diploma 58 Accountant Chief / General Coke IT 21 25 29-May-2012 46 12,763,840 Legal 02-Jun-2014 19 MEA / Hea Nokia Corporation 48 Network 41 42 50 01-Aug-2007 Business Head 21 7,376,622 17-Oct-2007 35 Sales Manager / Zonal Ltd BPL Cellular M/s 8,956,837 18-Dec-2000 North and Head- Internationa / COO- Ltd. Telecom Tulip 11-May-2005 22-Dec-2010 Finance 24 IT 6,715,513 23,306,234 / Consultant Technologies COLT 25 20,867,381 12,320,490 / VP O Ltd Spencers Retail 15 / VP - Legal and Secretarial India Limited India Pvt. Limited Huawei Telecommunications Sales 18 20 Network Network Network Legal 10,122,123 - Tax SCS India Pvt/ Director Ltd 20,525,855 Secu Information / Director, SingTel-Optus 8,045,471 6,918,073 Manager India / Regional Dickenson Becton WWIL / CTO 6,828,953 7,271,830 - Technical Shogi Communications / Director 9,748,405 / Vice President Nokia siemens Network Rules, 2014 for the year ended March 31, 2016 ended March year the 2014 for Rules, the Financial Year Throughout (A) Employed Statement of particulars under Section 197(12) of the Companies Act, 2013 read with the Companies (Appointment and Remuneration the Companies Act, 2013 read Section 197(12) of particulars under of Statement

80 Annual Report 2015-16 40-125 Bharti Airtel Limited 02-39 | Corporate OverviewStatutory Reports 126-355 | Financial Statements lobal lient ement Trainee ct Manager-Marketing of Managerial Personnel) Managerial Personnel) of / GM Previous employment / Designation employment Previous /HDUD&KLHI7HFKQLFDO2njFHU Finance Solutions ) ` (in Gross Gross Remuneration Remuneration Nature of duties of duties of of Nature the employee Total Total (in years) experience experience Date of of Date Employment Commencement of Commencement of 46 02-Sep-2013 24 Business Head 60,635,636 Director UK / Consumer (In Age years) (Economics) 4XDOLǂFDWLRQ V Name Designation Sl. No. 115116 Jaiswal Sharad 117 Shetty Sharan 118 Malhotra Shefali 119 P Mardikar Shyam 120 Siddharth Sharma Srikanth Balachandran121 Head - Operations Srini Gopalan Karnataka Operations - Market COO 122 Assurance Global Head Revenue and Planning Head - Architecture 123 S Vemuri Srinivas Global CHRO Head - Postpaid Rout Subhransu 124 MMS / B. Tec125 Sunil Singh126 Sunil Bharti Mittal CA B.E / B.Tech127 Business Kamat - Consumer Swati Director Head CS - PS Planning Raghavan Vijay 128 Venkatesh 48 PGDBM Insights Head Consumer 129 Rattan Vidur 130 Deshpande Vikram 45 04-Jun-2007131 AP Operations Puri - Market Vinny CEO Chairman132 Vipin Gupta Head NLD & Domestic Data - W S MBA 43 MBA, BA Hons CA, B.Com133 Nath Inder Vir 26-Jul-2012 41 Hub CTO134 Bharti 21 Vivek Head IKSL 01-Mar-2000 Manglik Vivek MBA Maharashtra Operations - Market COO PGDBM 03-Dec-2012 B.E Business Head 23 PGDBM 55 40 21 experience Head - Mobile & Telemedia Network PGDBM CTO Circle 18 Operations-MP&CG - Market CEO 17-Nov-2008 11,310,576 Finance 02-Mar-2005 Levis / Business Head Chain COE Global Head - Supply 47 47 Marketing & Roaming VAS Head - Global Voice Graduation Post 43 47 Graduate 35 23-Jun-2014 11-Jul-1998 16 38 PGDBM 24,803,612 39 04-Jul-2003 B.E Finance 01-Dec-2004 PGDBM MBA B.Tech Marketing 9,711,426 16-Apr-2001 22 7,573,531 22-Jun-1998 25 Accounts / Manager Airborne Express 57 / Head - Retail VIP Industires 21 23 Marketing 43 Network MBA 01-Oct-2001 19 18 Business Head Sales 45 48,700,990 46 50 – G Leader / Programme Limited Hindustan Unilever 8,606,435 23-Apr-2007 44 Business Head / DMA Manager BPL Mobile Ltd Experience Customer 28 06-Sep-2010 01-Aug-2013 29-Aug-2014 15,384,946 08-Aug-2005 8,263,464 / Produ 6,941,710 Ltd. Infocom Reliance 19 Management Genral / MD Delhi & Head C India Pvt Ltd Millwardbrown 7,484,213 Bharti Airtel Ltd 44 10,022,993 Plant / Lecturer Steel Vizag 21 / Manag Bank Chartered Standard 23 29 Business Head 8,647,913 278,546,235 23 / Director-Sales Unicom Infotel / CMD BhartiLimited. Cellular Sales 03-Oct-2001 SCM Network Sales 12,523,459 15 / DGM IDEA Cellular Network 10,774,977 8,955,910 / GM Sales Communications Limited Tata Head Director M / Corperate Tech 7,734,406 6,467,214 / Vice President JKT Consulting Limited Head / Cluster Infocom Reliance 6,975,906 / AM Hughes Telecom Rules, 2014 for the year ended March 31, 2016 ended March year the 2014 for Rules, the Financial Year Throughout (A) Employed Statement of particulars under Section 197(12) of the Companies Act, 2013 read with the Companies (Appointment and Remuneration the Companies Act, 2013 read Section 197(12) of particulars under of Statement

Board’s Report 81 Transformational Network resident resident Director a Ltd / Director a Ltd Team Lead Team of Managerial Personnel) Managerial Personnel) of ia Pvt Ltd / President - Group Assurance Assurance - Group ia Pvt/ President Ltd Previous employment / Designation employment Previous and Cost Control South Asia %KDUWL7HOH9HQWXUHV/WG&KLHI2SHUDWLQJ2njFHU - HR ) ` (in Gross Gross 7,344,043 & Co. / Assistant Consultant A F Ferguson Remuneration Remuneration Nature of duties of duties of of Nature the employee 0'2njFH Total Total (in years) experience experience Date of of Date Employment Commencement of Commencement of 59 17-Jan-1993 33 Business Head 73,054,745 48 19-Sep-2005 26 Marketing 2,898,607 / DGM - National Accounts Limited Idea Cellular (In Age years) M.Sc 38MBA 08-Apr-2014 14 Marketing 42 GraduationPost MBA 01-May-2013 49 Diploma in P.G. 19,187,093 Trade International Director / Senior Yahoo 19 01-Jul-2002 Business Head 48 27 22-Mar-2010 25,174,108 CSD Skin Cleansing, / Vice President Limited Hindustan Unilever 26 Brand 4,360,510 Manager / Regional Infotech Wipro 17,148,934 Director / Executive Lowe Lintas India Limited MBA GraduationPost MBA 51 41B.E / B.Tech 11-Mar-2016Electronics 01-Sep-2015 47 28 48 16 SCM 29-Dec-2014 03-Aug-2009 Brand 28 24 CSD Network 514,497 Vice President Jio / Sr. Reliance 6,385,292 Director Marketing / Senior PepsiCo 5,308,562 2,466,139 Communications / Vice President Tata Smart Digivision Pvt./ CTO Ltd. CA 44 03-Jan-2000 24 4XDOLǂFDWLRQ V &KLHI3URGXFW2njFHU &KLHI0DUNHWLQJ2njFHU%& &KLHI6HFXULW\2njFHU$LUWHO%XVLQHVV &KLHI%UDQG2njFHU &KLHI%UDQG2njFHU &KLHI6XSSO\&KDLQ2njFHU,QGLD &KLHI'HOLYHU\2njFHU &LUFOH&KLHI7HFKQLFDO2njFHU 6U9LFH3UHVLGHQW0'šV2njFH Name Designation 12 Amit Sobti Anand Chandrasekaran 56 Rana Ashwani 7 Uppiliappan Bharath 8 Deepa Chadha Experience - Customer Vice President 9 Kumar Deepak Parthasarathy Govindaranjan 10 Graduation Post 11 Operations-Bihar - Market CEO Singh Gurpreet Operations Regulatory Chief 12 Khurana Ishwinder 13 Singhsehdev Pal Jatinder - HR Vice President 4114 Sood Jayant & FM Estate Head - Real 15 Abrahamson Jonathan Rafael MBA 15-Jul-2010 Prasad Lal Bahadur & IP Planning Head Transport Head Service Ops Head Sales & Marketing LLM Head Digital & VAS 19 Head - Contact Experience M Tech CSD PG Diploma PG Diploma 44 49 MBA 10-Aug-2015 CA / LLB 44 B.Com 01-Nov-2004 43 47 CA 20 09-Feb-2009 22-Mar-2012 5,175,203 27 01-Sep-2014 / Limited Consulting Private Passet Business Head 40 44 Legal 37 21 29 16 23-Jul-2014 28-Dec-2010 HR 51 Network 01-Sep-2015 6,458,768 SCM VP Bharti / Sr. Retail 14 19 12-Aug-2009 15 9,439,369 Sales CSD Manager / Sr. Idea Cellular Marketing 31 8,379,789 Indi Huawei Telecommunications 5,428,071 CSD 6,159,139 Services HR Shared Genpact / Vice president India Estate, Real Nokia / Head of 7,096,263 5,735,825 and mFinance Prepaid / Director, Singtel 4,652,643 India North and West / Head of VP - CS / Associate P Limited DB Telecom Etisalat 4,337,393 / Business Leader American Express 34 Anand Khurana Arvind Chopra Operations-Bihar - Market CEO Assurance - Internal Director Group MBA B. Com (H), ACA16 5217 Mohit Beotra N Arjun 30-Sep-2015 44 06-Jan-2014 25 Assurance Internal 19 - Projects Director 14,954,014 Business Head Services Ind Essar 10,634,645 HUL / Business Head B.Com, MBA and 1819 Akella Natraj 20 Navin Sherman21 Jain Neeraj Banerjee Papiya 2223 Singh Nayyar Paramjit 24 R Mahalakshmi Jaguar Head - Project - Finance Vice President Sr. Mathrani Rajiv Talent and Global Head of CLO Head FR - India Head HR Enabling Functions Talent and Global Head of CLO CA MA MBA MBA MBA CA 46 46 42 38 07-May-2003 10-May-2010 01-Feb-2016 42 04-Nov-2003 39 25 25 30-Oct-2008 18 17 Finance 19-Jul-2004 Marketing HR HR 19 17 HR Finance 2,460,139 4,850,219 Manager BPL Mobile Communications / Sr. IBM / Business Manager 1,657,118 Vice P / Sr. Co.Ltd Insurance Life 6,517,725 Tokio Edelweiss Executive / Sr. Engineering & Inds Ltd Triveni 14,211,366 / GM - HR (L & D) Ltd Laboratories Ranbaxy 6,550,816 - Finance Pvt./ Vice President Ltd. C D Equisearch 2526 Ramakrishna Lella 27 Ramananda S G28 Saji Pk 29 Salil Khanna30 Sachdeva Sanjay 31 Jain Kumar Sanjay Mahajan Sanjeev Homes S & M Head - Telemedia & Systems Chain Process Head Supply West - EGB CEO & Demand Planning Head Market Graduation MBA 50 BA / Diploma in 18-Sep-2007 50 MBA 05-Feb-2007 30 Sales 28 48 SCM 11-Jul-2006 5,095,179 28 / CEO Raksha Group Business Head 7,312,171 Manager / S. I. Procurment Motorola 5,067,669 / L2 Ltd. Infocomm Reliance 32 Goel Saurabh Assam Operations - Market CEO Graduation Post 48 27-Jun-2003 20 Business Head 14,707,133 / Hughes Escorts Comm. Ltd. 3334 S J Selvinson Sonal Kapasi CTO Circle B.E 43 07-Jun-2004 23 Network 1,853,907 Head Networks / Technical Bobsai 35 Ranjan Jena Soumya Quality Head Network B.E / B.Tech 49 05-Apr-2007 21 Network 7,602,043 / Manager Nigeria Ltd) (Celtel Ecnet Sl. No. Statement of particulars under Section 197(12) of the Companies Act, 2013 read with the Companies (Appointment and Remuneration the Companies Act, 2013 read particularsSection 197(12) of under of Statement Rules, 2014 for the year ended March 31, 2016 ended March year the 2014 for Rules, the Financial Year of Part for (B) Employed

82 Annual Report 2015-16 40-125 Bharti Airtel Limited 02-39 | Corporate OverviewStatutory Reports 126-355 | Financial Statements of Managerial Personnel) Managerial Personnel) of Previous employment / Designation employment Previous *05&RUSRUDWH$NjDLUV3YW/WG*URXS*HQHUDO&RXQVHO  - Legal & Secretarial President ) ` (in Gross Gross V  Remuneration Remuneration U*RSDO9LWWDO  Nature of duties of duties of of Nature the employee 9.81 Mn under performance-based long-term incentive plan of the Company. plan of incentive long-term performance-based 9.81 Mn under ` \RXWRI Total Total (in years) experience experience KH\HDU H&RPSDQ\GXULQJWKHFXUUHQWnjQDQFLDO\HDU  Date of of Date Employment NHVK%KDUWL0LWWDODQG0U5DMDQ%KDUWL0LWWDOZKRDUHEURWKHU Commencement of Commencement of WD%RDUGSRVLWLRQH[FHSWWKDWRI0U6XQLO%KDUWL0LWWDODQG0 FRQWUDFWXDO 53 15-May-2014 26 Human Resources 5,807,632 & Director / Founder Limited Solutions Private Soseeo (In Age years) 5,00,000 p.m. ` Management & Industrial Relations, General of Bachelor Law 4XDOLǂFDWLRQ V 60,00,000 p.a. ` 0QH[HUFLVHGGXULQJWKHFXUUHQWnjQDQFLDO\HDUDQGFDVKSD ` 0QWRZDUGVWKHYDOXHRIVWRFNRSWLRQVH[HUFLVHGGXULQJW ` RQWULEXWLRQWR3URYLGHQW)XQGDQGWD[DEOHYDOXHRISHUTXLVLWHV 0QXQGHUSHUIRUPDQFHEDVHGORQJWHUPLQFHQWLYHSODQRIWK `  HSWIRU0U6XQLO%KDUWL0LWWDODQG0U*RSWDO9LWWDOZKLFKLV 'LUHFWRUVRIWKH&RPSDQ\H[FHSW0U6XQLO%KDUWL0LWWDO0U5D OXHRIVWRFNRSWLRQVRI HDUHDRIUHVSRQVLELOLW\RFFXUULQJLQWKHDERYH6WDWHPHQWLVQR Name Designation *URVVUHPXQHUDWLRQFRPSULVHVRI6DODU\$OORZDQFHV&RPSDQ\šVF 36 Srikanth Karra3738 Sucheta Mahapatra Rajan R Sundar 39 - Human Resources Director 40 Singh Pal Tejinder 41 Rangachari Venkatesh & Support Head Business Strategy Tripathi Vijai Prakash Counsel General Group - Mobility COO in Personal Masters CTO Circle MBA Head UNOC CS, LLB 35 25-May-2015 MBA B.Tech 51 Graduation Post 14 03-Sep-2015 Business Head 53 43 49 15-Dec-1997 26 29-Nov-2011 5,620,256 09-Feb-2012 Legal Manager / Sr. Bain and Company 28 17 28 Network Business Head Network 14,834,808 7,311,067 Business Head / Circle Aircel 9,268,477 Lead / Project Ltd. Telecom Optel 6,225,480 (UN) / CTO Reliance Sl. No. Note: Note: 1. 4. the Company. capital of share more hold 2% or mentioned above the employees None of  7KHGHVLJQDWLRQŠ'LUHFWRUšZKHUHYHUSUHnj[HGGHVFULELQJWK  7KHUHDUHQRVSHFLnjFWHUPVDQGFRQGLWLRQVIRUHPSOR\PHQW  1DWXUHRIHPSOR\PHQWIRUDOOWKHHPSOR\HHVLVSHUPDQHQWH[F 2. basis: (B) on the following (A) or being included in Category would qualify for The employee not less than was year him during the by drawn remuneration the aggregate (A) if For not less than was year the him during the part of by drawn  remuneration the aggregate (B) if For 1RQHRIWKHHPSOR\HHVPHQWLRQHGDERYHLVDUHODWLYHRIDQ\ 8. of value Gopal Vittal does not include perquisite Mr. of Remuneration  5HPXQHUDWLRQRI0U5DMHQGUD&KRSUDH[FOXGHVFDVKSD\RXWRI 7KHUHPXQHUDWLRQRI0U1LODQMDQ5R\H[FOXGHVSHUTXLVLWHYD

Statement of particulars under Section 197(12) of the Companies Act, 2013 read with the Companies (Appointment and Remuneration the Companies Act, 2013 read particularsSection 197(12) of under of Statement Rules, 2014 for the year ended March 31, 2016 ended March year the 2014 for Rules, the Financial Year of Part for (B) Employed

Board’s Report 83 Transformational Network

Management Discussion and Analysis

At Bharti Airtel, we are transforming at a rapid pace; and GDP Growth Trend (%) catering to the aspirations of millions of people in South Asia Actual Projections and Africa as a leading global telecommunications company. Our life-enrichment network transcends geographic barriers, 2014 2015 2016 2017 FXOWXUDOGLNjHUHQFHVDQGOLQJXLVWLFGLYHUVLWLHVWRHPHUJHDVD World Output 3.4 3.1 3.2 3.5 XQLnjHURQDJOREDOVFDOH:LWKRYHU0QFXVWRPHUVDFURVV Advanced Economies 1.8 1.9 1.9 2.0 20 countries of the world, the Airtel family is growing stronger Emerging and each day, touching almost every aspect of life. We emerged 4.6 4.0 4.1 4.6 as the world’s third largest operator during FY 2016 in Developing Economies terms of customer base. This landmark was achieved in only China 7.3 6.9 6.5 6.2 two decades of operations, underlining the strength of our India 7.2 7.3 7.5 7.5 business model and global scale. Bangladesh 6.3 6.4 6.6 6.9 We continue to be committed towards our customers and Sri-Lanka 4.5 5.2 5.0 5.0 maintain our leadership position across geographies. We Sub-Saharan Africa 5.1 3.4 3.0 4.0 are happy to be leading in an industry (Telecom), which is itself transforming and creating plenty of opportunities for (Source – IMF) XV'DWDKDVVHHQDVLJQLnjFDQWXSWDNHLQWKHSDVW\HDUZLWK 4G launches across India. Our entry into Mobile banking in Key Snapshot India with the grant of a Payments Bank license gives us 1. The US economy grew by 2.4% in CY 2015, just as the opportunity to enter into a complementary category. it did in CY 2014. The challenges were weaker than :H ODXQFKHG PDQ\ LQGXVWU\njUVW LQLWLDWLYHV DQG HQWHUHG H[SHFWHG GRPHVWLF GHPDQG ODFNOXVWUH SHUIRUPDQFH into strategic partnerships. We will continue to enhance our RI WKH PDQXIDFWXULQJ VHFWRUGHFOLQLQJ H[SRUWV GXH WR LQYHVWPHQWVLQ$IULFDDQGUHDSEHQHnjWVRIWKHH[SRQHQWLDO VWURQJHUGROODUDQGDGYHUVHH[WHUQDOWUDGHHQYLURQPHQW RSSRUWXQLWLHVWKHFRQWLQHQWRNjHUV:HDUHZHOOSRVLWLRQHGWR 2. The Euro Area as a whole grew by 1.6% in CY 2015, derive advantages from low mobile broadband penetration in faster than CY 2014. The economy received robust ,QGLDDQG$IULFDVLJQLnjFDQWJURZWKLQVPDUWSKRQHVKLSPHQWV support from three tailwinds: a) lower oil prices favourable demographics and industry consolidation. EROVWHULQJFRQVXPHUH[SHQGLWXUHGRPHVWLFGHPDQG  We are focusing on deleveraging in Africa through strategic E H[SDQVLRQDU\njVFDOSROLFLHVDQGF DQDFFRPPRGDWLYH stake sale in subsidiaries, tower sales and other asset (&%7KHFKDOOHQJHVKRZHYHUZHUHVXE]HURLQǍDWLRQ monetisation. Our investment grade ratings (awarded and high non-performing loans and debt trajectories, low UHDǎUPHG E\ LQWHUQDWLRQDO FUHGLW UDWLQJ DJHQFLHV YDOLGDWH investment and eroding skills of the working population the fact that we have built a robust, scalable and sustainable due to long-term high unemployment in the region. business model. Our focus is to maintain the optimum capital 3. Economic growth for China was 6.9% in CY 2015. The VWUXFWXUHDWDOOWLPHVDQGHQKDQFHRXUnjQDQFLDOVWUHQJWK:H slowdown and rebalancing of the economy led to a stay committed to creating value for our stakeholders, while decline in investment in real estate, manufacturing and ensuring highest standards of corporate governance. allied industries.

Economic Overview 4. The economic performance of many African economies ZDVORZHUWKDQH[SHFWDWLRQV5HVRXUFHULFKFRXQWULHVLQ Global Review $IULFDVXNjHUHGRZLQJWRDGHFOLQHLQFRPPRGLW\SULFHV Global economic activity in 2015 remained largely subdued. and also because their frontier markets were adversely Global growth is projected at 3.4% in 2016 and 3.6% in 2017. DNjHFWHGE\WLJKWHUJOREDOnjQDQFLQJFRQGLWLRQV Gradual slowdown and rebalancing of economic activity in China, lower prices for energy and other commodities, Indian Economy and gradual tightening of monetary policy in United States India’s economic growth for 2015-16 was 7.6%, overtaking LQǍXHQFHG WKH JOREDO RXWORRN *URZWK LQ HPHUJLQJ DQG its formidable economic rival China (Source: CSO). The developing economies contributed to 70% of global growth GHFOLQHLQRLOSULFHZKLOHDNjHFWLQJODUJHSDUWVRIWKHZRUOG in 2015. has helped the economy lower its huge import bill. The Government of India has also ushered in a series of reforms Economic adjustments on the back of global slowdown will in agriculture, manufacturing, infrastructure and services KDYHPDWHULDOLPSDFWRQHFRQRPLFUHFRYHU\:KLOHGHǍDWLRQ sectors to bolster economic performance and make growth and revitalisation of European Union and Japan has led to PRUHLQFOXVLYH'HFOLQLQJnjVFDOGHnjFLWPRGHUDWLQJLQǍDWLRQ central banks undergoing quantitative easing programmes, DQG D FRPIRUWDEOH LQWHUHVW UDWH WUDMHFWRU\ ZHUH GHnjQLWH United States is looking at rate hikes this year on the back positives as well. India stands out as one of the rising stars in of strengthening economy and wage escalations. Some DZRUOGFKDUDFWHULVHGE\YRODWLOLW\DQGnjQDQFLDOWXUEXOHQFHRQ LPSURYHGGDWDUHOHDVHVOLNHnjUPLQJRIRLOSULFHVVXSSRUWE\ account of its economic stability, favourable demographics, PDMRUFHQWUDOEDQNVDQGORZHUFDSLWDORXWǍRZVIURP&KLQD proactive Central Bank and a Government focused on are resulting in improved investor sentiments. consistent reforms.

84 Annual Report 2015-16 40-125 Bharti Airtel Limited 02-39 | Corporate OverviewStatutory Reports 126-355 | Financial Statements

Key Snapshot   /HVV IRFXV RQ RLO H[SRUWV DQG RWKHU FRPPRGLWLHV ZLOO 1) The Union Budget 2016-17 focused on enhancing augur well for the economy, going forward. farm output and welfare of farmers. South Asian Economies   &RQVLVWHQW njVFDO FRQVROLGDWLRQ KDV UHGXFHG %DQJODGHVK VKRZV VLJQLnjFDQW SRWHQWLDO LQ 6RXWK $VLD ,W *RYHUQPHQWšVnjVFDOGHnjFLWWRFORVHWRRI*'3 RQ has a stable democracy with focus on empowerment from a 12-month rolling basis), down from a peak of 7.6% in grassroots. The economy’s key growth enablers comprise: 2009. growing manufacturing and construction sector, robust service sector and higher private consumption bolstered 3) The Government’s Make in India initiative has been by remittances. These pivots have resulted in sustainable a resounding success. It has encouraged domestic economic growth for the nation. entrepreneurship and even attracted FDI to the country VLJQLnjFDQWO\,QWKHSHULRGRIPRQWKV 2FWREHU Sri Lanka is also a stable, democratic society with focus on inclusive growth. The island nation’s economic potential to February 2016) after the launch of Make in India, is considerable. The country has a strong base of human )', LQǍRZV LQFUHDVHG E\  6RXUFH 0LQLVWU\ RI capital and reliable infrastructure. It also occupies a strategic Commerce and Industry). position in Asia, the fastest growing region in the world; and 4) Digital India will have a transformational impact on investments over the last decade (especially in ports and Indian society. It represents a connected society, where other transport-related facilities) can take advantage of this every citizen will be connected to the internet. This will opportunity. KHOS HQKDQFH HGXFDWLRQ HPSOR\PHQW HǎFLHQFLHV Key Snapshot governance and controls.   %DQJODGHVKšV*'3JUHZE\LQYLV¢YLV 5) Internet penetration is around 30% in India; and is in 2014. SURMHFWHG WR WRXFK DURXQG  QH[W \HDU 6RXUFH   *URZWKLVH[SHFWHGWRIXUWKHULQFKXSWRLQ IAMAI). OHG E\ VWURQJ JDUPHQWV H[SRUWV DQG ULVLQJ SULYDWH 6) The Government’s Smart Cities Mission is a revolutionary consumption as government employees get wage concept in terms of overall infrastructure, sustainable increase. real estate, communications and market viability. There 3) Real GDP growth for Sri Lanka was 4.8% in 2015 are many technological platforms involved, including (broadly unchanged from 2014), driven by robust but not limited to automated sensor networks and data growth in services and agriculture, as well as a positive centres. contribution from manufacturing. African Economy   6UL/DQNDšV HFRQRP\ LV H[SHFWHG WR JURZ E\  Africa’s economy as a whole remained more resilient and 5.8% in 2016 and 2017, respectively on back of to global volatilities, compared to many other emerging strong domestic demand, and higher private and public and developing regions. The continent’s growth enablers investments. comprise: the vastly improved macroeconomic environment, EHQHnjWLQJEXVLQHVVHVUHGXFWLRQRIH[WHUQDOGHEWDQGVRFLDO Megatrends that drive the Company’s business FRQǍLFWV LPSURYHG SROLWLFDO DQG HFRQRPLF JRYHUQDQFH 1. Internet users in India have risen from 50 Mn in 2007 to JURZLQJGRPHVWLFGHPDQGEXR\DQWVHUYLFHVVHFWRUnjQDQFLDO 100 Mn in 2010; and more than 300 Mn in 2015. Of the services growth in line with an upswing in information and 306 Mn internet users as on December 2015, 219 Mn communications technology; and rapid internet penetration. users are from urban India. The urban user base grew by 71% year-on-year. On the other hand, the rural user Poverty in the continent is also seeing a declining trend. base went up by 93% from December 2014 to reach Africa’s young and aspirational population is acting as 87 Mn at the end of December 2015. an agent of change in largely conservative societies. The 2. India is a lucrative market for global and domestic FRQWLQHQWšV\RXWKEXOJHZLOOGULYHWKHQH[WHUDRIJURZWKDQG smartphone manufacturers. Smartphone shipments transformation. increased by 55% between 2014 and 2015 (Source – Key Snapshot IDC). The country has an established base of 184 Mn 1) A large African middle-class is emerging, over XVHUV (QKDQFHG IRFXV RQ PDQXIDFWXULQJ DNjRUGDEOH 350 Mn people, driving the culture of innovation and handsets with indigenous technology will further spur policymaking. . 2) Africa is the world’s second fastest growing FDI  :LWKULVH LQ DNjRUGDEOH VPDUWSKRQHV DQG PRUH XVHUV GHVWLQDWLRQMXVWEHKLQG$VLD3DFLnjF preferring 3G / 4G, data usage is likely to grow by 12 WLPHVIURPWR0RELOHGDWDWUDǎFLQFUHDVHG 3) Sustainable policies for urbanisation, manufacturing by 89% between 2014 and 2015; and mobile data growth, agricultural output, along with education and WUDǎFJUHZE\WLPHVIDVWHUWKDQ,QGLDšVnj[HG,3WUDǎF empowerment can act as key catalysts. (Source: Cisco VNI forecasts). Network migration from

Management Discussion and Analysis 85 Transformational Network

2G to 3G / 4G is driving a change in data consumption Industry Overview from low bandwidth to high-bandwidth applications, Indian Telecom Sector along with more availability of relevant content. India’s total customer base stood at 1058.86 Mn with a tele- 4. India is in a sweet spot to leverage market opportunities density of 83.36%, as on March 31, 2016, having grown from emerging through Internet of Things (IoT). A strong a base of 996.49 Mn and tele-density of 79.38% last year. ecosystem of IT organisations, renewed focus on The urban tele-density stood at 154.01%, whereas the rural PDQXIDFWXULQJ VLJQLnjFDQW RSSRUWXQLWLHV LQ HGXFDWLRQ tele-density stood at 51.37%, as on March 31, 2016. India’s healthcare and agriculture; and enormous growth telecom market is witnessing a strong growth of internet in mobile internet usage will act as key catalysts in users; and now has the world’s second highest number of supporting investments in IoT. The Government of internet users. The wire-line customer base is 25.22 Mn at India’s initiative of smart cities requires seamless digital WKHHQGRI0DUFKYLV¢YLV0QDWWKHHQGRI DQG SK\VLFDO LQIUDVWUXFWXUH WR EH VKDUHG HǎFLHQWO\ March 31, 2015. across devices and applications; IoT will play a critical UROHLQIXOnjOOLQJWKLVYLVLRQ $PRQJ WKH VHUYLFH DUHDV H[FOXGLQJ PHWURV +LPDFKDO Pradesh has the highest tele-density (127.41%) followed 5. Convergence is a global trend for the telecom by Tamil Nadu (118.12%), Punjab (106.09%), Kerala business of the future. It enables a user to have a (102.27%), Karnataka (101.88%), Gujarat (100.05%) and XQLIRUP H[SHULHQFH ERWK DW KRPH DQG RQ WKH PRYH Combination of conveniences, freedom of movement, Maharashtra (98.98%). Among the three metros, Delhi tops and personalised services, along with high quality and with 236.30% tele-density. On the other hand, the service VSHHGRInj[HGFRPPXQLFDWLRQVZLOOHQDEOHDVHDPOHVV areas, such as Bihar (54.31%), Assam (57.55%), Madhya QHWZRUNH[SHULHQFHIRUWKHHQGXVHU Pradesh (64.18%), Uttar Pradesh (65.83%) and Odisha (69.09%) have comparatively low tele-density. 6. India is on the cusp of a huge digital revolution. Digital Literacy Mission will touch 60 Mn rural households as per the Union Budget of India 2016. The Government of Tele Density: India (%) India also plans to connect 550 farmer markets in the country through the use of technology. The Digital India drive will bring along a transformative impact on every 1,058.86 citizen through the medium of internet. 996.49 951.34 933.00 898.02 7. The proposed policy environment through M&A rules, spectrum sharing guidelines and 20-year spectrum positions for telecom operators not only enhances business certainty, but also encourages industry 78.66 consolidation and healthy growth. The gains in network 83.36 HǎFLHQF\WKDWVKDULQJFDQSURYLGHZLOOEHQHnjWRSHUDWRUV 79.38 and customers alike. Upcoming auctions will further help in building stronger networks. 75.23 73.32 8. Mobile banking is on a rise in India and Africa. India’s largest wallet company has around 120 Mn wallets with other companies estimated to have 30 Mn+. This LVVLJQLnjFDQWO\PRUHWKDQWKHQXPEHURIFUHGLWFDUGVLQ India. Additionally, mobile phone banking technology 2011-12 2012-13 2013-14 2014-15 2015-16 is bringing more people in Sub-Saharan Africa into the IRUPDOnjQDQFLDOVHFWRUDQGWKHHFRQRP\PRUHEURDGO\ Customer Base (Mn) Tele Density (%) 9. Africa, with a median population of less than 20 (Source: Telecom Regulatory Authority of India) years, is on the cusp of a mobile data revolution as 3G and 4G deployments gather scale with more DNjRUGDEOH KDQGVHWV DYDLODEOH 0RELOH GDWD LV KHOSLQJ Rural penetration (low at nearly 50%) represents huge people elevate their lives with a large proportion of headroom for growth. With urban tele-density crossing the population relying on the internet for education, LQWHUQHWSHQHWUDWLRQDQGH[SHULHQFHZLOOEHWKHNH\ njQDQFLDOWUDQVDFWLRQVKHDOWKFDUHDQGVRRQ drivers of growth in urban areas. With the government’s 10. E-commerce is at the epicentre of Africa’s thriving favourable regulation and policies and the developing 4G economy. The continent’s digital evolution is a promising HFRV\VWHP,QGLDšVWHOHFRPPXQLFDWLRQVHFWRULVH[SHFWHGWR SURVSHFWZLWKWKHHFRPPHUFHPDUNHWH[SHFWHGWREH ZLWQHVVDQH[SORVLYHGDWDJURZWKLQWKHQH[WIHZ\HDUV ZRUWK DSSUR[LPDWHO\ 86'  %Q E\  ,QGLD KDV During the year, the Company introduced a comprehensive DQH[FLWLQJHFRPPHUFHVWRU\DVZHOOZLWKRQOLQHUHWDLO network transformation programme - Project Leap aimed JURZLQJ[LQWKHODVWWKUHH\HDUV,QGLDšVHFRPPHUFH at delivering a world class network. This programme will industry is likely to be worth USD 38 Bn by 2016, a 67% see an investment of `0QLQWKHQH[WWKUHH\HDUV surge over the USD 23 Bn revenues for 2015 (Source: The programme will help Airtel build a smart and dynamic Deloitte). QHWZRUN WKDW ZLOO VLJQLnjFDQWO\ LPSURYH WKH TXDOLW\ RI ERWK

86 Annual Report 2015-16 40-125 Bharti Airtel Limited 02-39 | Corporate OverviewStatutory Reports 126-355 | Financial Statements

voice and data services across India. The programme aims guidelines, active infrastructure sharing will be limited WR GHOLYHU D WUXO\ GLNjHUHQWLDWHG FXVWRPHU H[SHULHQFH DQG to antenna, feeder cable, Node B, Radio Access Network reinforce its commitment to build a future-ready network. (RAN) and transmission system only. $LUWHO KDV DFTXLUHG ULJKWV WR XVH [ 0+] VSHFWUXP LQ Valuation and Reserve Price of Spectrum: In January the 1800 MHz Band from Videocon Telecommunications 2016, TRAI issued its recommendation on Valuation Limited (VTL) which was allotted to VTL by the Department and Reserve price of Spectrum in 700 MHz, 800 MHz, RI 7HOHFRPPXQLFDWLRQ 'R7  RQ $SULO   IRU VL[ 900 MHz, 1800 MHz, 2100 MHz, 2300 MHz and 2500 circles, namely, Bihar, Haryana, Madhya Pradesh, UP (East), MHz Bands. As per the recommendation, auction in all UP (West) and Gujarat at an aggregate consideration of the bands should be conducted simultaneously. DoT ` 44,280 Mn. VKRXOG FDUU\ RXW FDUULHU UHDVVLJQPHQW H[HUFLVH LQ WKH 800 MHz band at the earliest; and ensure that the entire %KDUWL $LUWHO /LPLWHG DQG LWV VXEVLGLDU\ %KDUWL +H[DFRP spectrum that is available for commercial use is put to /LPLWHG HQWHUHG LQWR GHnjQLWLYH DJUHHPHQWV ZLWK $LUFHO auction and it should be in contiguous blocks. Spectrum Limited and its subsidiaries Dishnet Wireless Limited and LQ0+]EDQGVKRXOGEHRNjHUHGLQWKHEORFNVL]HRI Aircel Cellular Limited to acquire rights to use 20 MHz 2300 MHz (paired). In case a TSP is able to win more than one Band 4G TD spectrum for eight circles namely, Tamil Nadu block of spectrum in the upcoming auctions, it should be (including Chennai), Bihar, Jammu & Kashmir, West Bengal, allocated spectrum in contiguous blocks. Assam, North East, Andhra Pradesh; and Odisha at an aggregate consideration of ` 35,000 Mn. The closing of the Liberalisation of Spectrum: On November 05, 2015, said transaction is subject to certain customary regulatory the Department of Telecommunications issued the approvals and other closing conditions. Guidelines on Liberalisation of Administratively allotted spectrum in 800 MHz and 1800 MHz band in a service During the year, the Company had launched 3G services area for the balance validity period of right to use of in its gap circles and the high-speed 4G services were also spectrum, after payment of auction determined price, commercially launched across India. prorated for the balance validity period. The entry fee With the proposed spectrum acquisitions from Videocon paid will be pro-rated for the balance validity period of and Aircel, the Company is set to become a pan-India 4G the right to use spectrum; and will be deducted from the operator. total amount to be paid by the TSP for liberalising the spectrum. In case the spectrum gets liberalised, the One African Telecom Sector Time Spectrum Charges (OTSC) will be charged and the Africa is among the fastest growing regions, but had faced same has to be paid by the licensee. VLJQLnjFDQW KHDGZLQGV LQ WKH ODVW\HDU DV D UHVXOW RI JOREDO WUHQGV DQG UHJLRQ VSHFLnjF LVVXHV 7KH JOREDO FRPPRGLW\ DoT guidelines on Spectrum Trading: In October 2015, super-cycle has come to an end, sharply lowering the price of the DoT issued the guidelines on Spectrum Trading. RLOJDVPHWDOVDQGPLQHUDOV$VDQHWFRPPRGLWLHVH[SRUWHU Spectrum Trading shall be allowed between two access $IULFDLVGHHSO\DNjHFWHGE\IDOOLQJFRPPRGLW\SULFHVSXWWLQJ service providers, holding Cellular Mobile Telephone SUHVVXUHRQWKHFXUUHQWDFFRXQWDQGnjVFDOEDODQFHV 6HUYLFH &076 8QLnjHG$FFHVV6HUYLFH/LFHQVH 8$6/   8QLnjHG /LFHQVH $FFHVV 6HUYLFHV  8/ $6   8QLnjHG 7KHUHYHQXHZHLJKWHGFXUUHQF\GHSUHFLDWLRQYLV¢YLVWKH86 License (UL) with authorisation of Access service in Dollar across 17 countries in Africa over the last 12 months a licensed service area. All access spectrum bands H[LW 0DUFK  UDWHV  KDV EHHQ  SULPDULO\ FDXVHG E\ earmarked for Access Services by the Licensor will be depreciation in Malawi Kwacha by 54.9%, Zambian Kwacha treated as tradable spectrum bands. Only that spectrum by 45.1% and Tanzanian Shilling by 17.3%. In terms of can be traded that has been assigned through an auction the 12-month average rates, the revenue-weighted Y-o-Y in 2010 or afterwards, or on which TSP has already paid currency depreciation has been 18.3%, mainly caused by the prescribed market price. depreciation in Zambian Kwacha by 51.8%, Malawi Kwacha by 32.1%, Ugandan Shilling by 25.1%, Nigerian Naira by TRAI releases Telecom Consumers Protection (Ninth 18.0% and CFA by 14.2%. Amendment) Regulations, 2015 on Call Drop: On October 16, 2015 TRAI releases Telecom Consumers However, Africa’s market with a billion-plus population Protection (Ninth Amendment) Regulations, 2015 on Call promises considerable opportunities for African telecom Drop, which mandates the originating service provider VHFWRU'DWDDQGPRELOHPRQH\KDYHDVLJQLnjFDQWSRWHQWLDO providing Cellular Mobile Telephone Service, for each call for sustained growth; and with increasing adoption of drop within its own network compensate the consumer smartphones this trend is set to continue. by crediting the account of the calling consumer by Development in Regulations UXSHHVXEMHFWWRDPD[LPXPRIGURSSHGFDOOVLQD The year saw several regulatory changes and developments. day; and inform the consumer within four hours of the 7KHVLJQLnjFDQWUHJXODWRU\FKDQJHVZHUH occurrence of a call drop. The Supreme Court ruled in favour of Telco’s where it struck down TRAI’s directive. India Sharing of Active Infrastructure: In February 2016, the Spectrum Sharing: On September 24, 2015 the Department of Telecommunications issued Guidelines Department of Telecommunications issued the for Sharing of Active Infrastructure among service guidelines on Spectrum Sharing. Spectrum sharing will providers, based on mutual agreements. As per the be allowed only for the access service providers holding

Management Discussion and Analysis 87 Transformational Network

CMTS license, UASL, UL (AS) and UL with authorisation RQWKH'DUHV6DODDP6WRFN([FKDQJHZLWKLQPRQWKV of Access Service in a Licensed Service Area (LSA), failing which they have to make a contribution of 0.6% of where both the licensees are having spectrum in the its annual gross revenues to the ICT development fund. same band. Both the licensees shall ensure that they Uganda, Kenya and Rwanda: The Governments in IXOnjOO WKH VSHFLnjHG UROORXW REOLJDWLRQV DQG VSHFLnjHG these three countries are pushing forward the agenda Quality of Service norms. of the One Area Network. In the last quarter these TRAI’s recommendations on ‘Introducing Virtual *RYHUQPHQWV KDYH SURSRVHG WR H[SDQG WKH VFRSH RI Network Operators in Telecom Sector’: In May 2015, VHUYLFHVXQGHUWKHUHJXODWHGWDULNjWR606DQG'DWD TRAI made its recommendations on Introducing Virtual Network Operators in telecom sector to DoT. Virtual Nigeria: Nigerian Communications Commission (NCC) Network Operators (VNO) to be introduced through a has released the Information Memorandum for 2.6 proper licensing framework. The terms and conditions of GHz spectrum auction for LTE and has also shared the sharing of infrastructure between the Network Services consultation paper on Procedures and Guidelines for the Operator (NSO) and VNO should be left to the market i.e. provision of Value Added Services in Nigeria. on the basis of mutually accepted terms and conditions Ghana: The Regulator has proposed to license frequency between the NSO and the VNO. An NSO shall allocate in the 800 MHz band. This comes with an obligation for a numbering range to their VNO(s) from the numbering local shareholding of up to 40%. Consultations between range allocated to it by the licensor. VNOs shall also the industry and the Regulator have taken place and the utilise the LRN and network codes of the parent NSO for njQDOGHFLVLRQLVDZDLWHG the purpose of routing of calls. Zambia: The Regulator is proposing to introduce a Africa XQLnjHG OLFHQVLQJ UHJLPH ,I WKLV SURSRVDO LV DGRSWHG LW Zambia, Tanzania, Malawi and Other SADC ZLOODNjHFWWKHH[LVWLQJULJKWVDQGREOLJDWLRQVXQGHUWKH Countries: The Governments within the SADC region FXUUHQWOLFHQVLQJ,WZLOODOVRDNjHFWRXUVSHFWUXPKROGLQJ have commenced bilateral arrangements to implement and introduce new acquisition costs. WKH 5RDP /LNH DW +RPH WDULNjV LPSRVHG E\ WKH 6$'& governments. Kenya: The Regulator has agreed to make available to Airtel at least 10 MHz of the available 800 MHz spectrum Burkina Faso and Congo B: The Regulator has for LTE. The price for the same is under discussion with performed a cost study to determine the interconnect the Regulator. rates that will be applicable in 2016. Basis that, the Regulator has kept the rates unchanged. Niger: The Government has put in place a new law SURSRVLQJWKHLQWURGXFWLRQRIDQH[FOXVLYHLQWHUQDWLRQDO Rwanda: The interconnect rates glide path, which had gateway, which is in violation of the mobile operators’ been set by the Regulator has come to the end of the license. term. Operators are now awaiting new rates from the Regulator. DRC: There is a proposed new law that will if passed; DNjHFWWKHWHUPVDQGFRQGLWLRQVRIWKHOLFHQVH6RPHRI Uganda: The Regulator has indicated that it will review the proposals include restrictions on license ownership, the interconnect rates; and is in the process of recruiting QDWLRQDOLVDWLRQ RI LQIUDVWUXFWXUH DQG WDULNj FRQWURO a consultant to handle the process. Industry is in discussion with the Regulator to review the Burkina Faso: The Regulator is proposing the introduction proposed law. RIDWD[RQLQFRPLQJLQWHUQDWLRQDOWUDǎF7KHLQGXVWU\LV Malawi: There is a requirement in the license that in discussion with the Regulator on this matter. So far no the Company should have a minimum of 20% local decision has been taken for its implementation. VKDUHKROGLQJ$LUWHOKDVUHFHLYHGDZULWWHQH[WHQVLRQRI Tanzania: The Government of Tanzania in October 2015 the 20% local shareholding obligation for another 1.5 had passed a new regulation that requires Telco’s to list years from February 2016.

88 Annual Report 2015-16 40-125 Bharti Airtel Limited 02-39 | Corporate OverviewStatutory Reports 126-355 | Financial Statements

SCOT Analysis

Strengths Challenges

1. Spectrum: Strong and expanding network 1. Operations: Geographically varied presence, – Pan India 4G spectrum and 3G spectrum integrating operations across India, South Asia in 21 circles. Wide spectrum presence with and Africa leveraging common platform. 21.1% spectrum market share (post deals 2. Customer Needs: Understanding changing with Videocon and Aircel); 4G and 3G carrier customer expectations and perceptions in a aggregation available in 12 and 8 circles, fast evolving multi-cultural, multi-lingual, and respectively. multi-technological environment. 2. Presence: #1 telecom player in India and #3 3. Technological: Harmonisation of multi-band worldwide. The Company is present in 20 sub 5MHz of spectrum. countries across South Asia and Africa. 3. Scale: The Company’s revenue market share is the highest in the industry. It also has the highest subscriber market share with the largest net additions this year.  'LYHUVLǂHG3RUWIROLR Vast product line, which includes telecom services like DTH, Telemedia, Airtel Business and Tower Infrastructure. The portfolio also includes other bundled services like Wynk music, movies, and mobile wallet.

Opportunities Threats

1. Data Usage: Data explosion is at its cusp with 1. Competition: Competitor launches and its WKHSUROLIHUDWLRQRIDNjRUGDEOHVPDUWSKRQHV impact on the overall industry structure and Data uptake has also increased with usage SURǟWDELOLW\HVSHFLDOO\GDWDUDWHVDFURVV moving from low to high bandwidth content. 4G + 3G. 2. Convergence: Newer and converged needs 2. OTT: Cannibalisation of traditional voice across technologies and services targeted to and messaging – further aggravated by OTT VSHFLǟFFXVWRPHUVHJPHQWV applications gaining scale. 3. Internet Space: 6LJQLǟFDQWRSSRUWXQLWLHV 3. Regulatory: Political and economic thrown up by the internet across payment uncertainties in Africa and India due to mechanisms, e-commerce, m-commerce changes in policies. and IoT. 4. Currency Exposures: Volatility in currencies 4. Investments: Large residual opportunity with due to global macro-economic uncertainties. bulk investments in place. Best pan-India spectrum assets with prime spectrum to yield GDWDXSWDNHODUJHVWRSWLFDOǟEUHQHWZRUN amongst private players.

Management Discussion and Analysis 89 Transformational Network

Financial Review SURnjWV IURP RSHUDWLRQV EHIRUH GHULYDWLYH DQG H[FKDQJH Consolidated Figures ǍXFWXDWLRQV  IRU WKH\HDU HQGHG 0DUFK   VWRRG DW `0QYLV¢YLV` 285,280 Mn in the previous year. FY 2015-16 FY 2014-15 Particulars ` USD ` USD 1HWnjQDQFHFRVWVDW`0QZHUHVLJQLnjFDQWO\KLJKHU Millions Millions* Millions Millions* by ` 20,403 Mn, compared to that of previous year, primarily Gross revenue 965,321 14,742 920,394 15,064 on account of higher interest on borrowings due to spectrum EBITDA before 341,902 5,222 314,517 5,148 exceptional items ERUURZLQJFRVWKLJKHULQWHUHVWRQnjQDQFHOHDVHREOLJDWLRQ Interest, Depreciation 235,702 3,600 198,855 3,255 DQG ORZHU LQYHVWPHQW LQFRPH 7KH )RUH[ DQG GHULYDWLYH & Others before losses were lower at ` 18,108 Mn (PY: ` 21,530 Mn). exceptional items 3URǟWEHIRUH 106,200 1,622 115,662 1,893 &RQVHTXHQWO\ WKH FRQVROLGDWHG SURnjW EHIRUH WD[HV DQG exceptional items H[FHSWLRQDO LWHPV DW ` 106,200 Mn has declined by 8.2% and Tax over the previous year. 3URǟWEHIRUHWD[ 120,705 1,843 107,130 1,753 Tax expense 59,368 907 54,047 885 7KHFRQVROLGDWHGLQFRPHWD[H[SHQVH EHIRUHWKHLPSDFWRQ 3URǟWIRUWKH\HDU 54,842 838 51,835 848 H[FHSWLRQDOLWHPV IRUWKHIXOO\HDUHQGLQJ0DUFK Earnings per share 13.72 0.21 12.97 0.21 ZDV DOPRVW ǍDW DW ` 53,180 Mn, compared to ` 52,928 (In ` / USD) 0QIRUWKHSUHYLRXV\HDU7KHHNjHFWLYHWD[UDWHLQ,QGLDIRU * 1 USD = `([FKDQJH5DWHIRUnjQDQFLDO\HDUHQGHG0DUFK WKH IXOO\HDU FDPH LQ DW   H[FOXGLQJ GLYLGHQG (1 USD = `([FKDQJH5DWHIRUnjQDQFLDO\HDUHQGHG0DUFK  GLVWULEXWLRQWD[ FRPSDUHGWR H[FOXGLQJWKH LPSDFW RI GLYLGHQG GLVWULEXWLRQ WD[  IRU WKH IXOO\HDU HQGHG Standalone Figures 0DUFK7KHLQFUHDVHLQWKHXQGHUO\LQJHNjHFWLYHWD[ FY 2015-16 FY 2014-15 UDWHLQ,QGLDLVSULPDULO\RQDFFRXQWRIH[SLU\UHGXFWLRQRI Particulars ` USD ` USD WD[KROLGD\EHQHnjWVLQVHOHFWXQLWV7KHWD[FKDUJHLQ$IULFD Millions Millions* Millions Millions* for the full year at USD 189 Mn (PY: USD 203 Mn) has been Gross revenue 603,002 9,209 554,964 9,083 ORZHUSULPDULO\GXHWRFKDQJHLQSURnjWPL[RIWKHFRXQWULHV EBITDA before 238,218 3,638 246,241 4,030 exceptional items ([FHSWLRQDOLWHPVGXULQJWKH\HDUDFFRXQWHGIRUQHWJDLQV Interest, Depreciation 131,021 2,001 89,688 1,468 of ` 7,097 Mn. These included impact of gains / losses & Others on divestment of telecom towers, settlement of various 3URǟWEHIRUH 107,197 1,637 156,553 2,562 disputes, few restructuring and integration activities and exceptional items and Tax revisiting certain accounting positions. After accounting for 3URǟWEHIRUHWD[ 100,398 1,533 156,553 2,562 H[FHSWLRQDO LWHPV WKH UHVXOWDQW FRQVROLGDWHG QHW LQFRPH Tax expense 24,933 381 24,548 402 for the year ended March 31, 2016 touched ` 54,842 Mn, 3URǟWIRUWKH\HDU 75,465 1,153 132,005 2,160 a 5.8% escalation over the previous year. Net income before Earnings per share 18.88 0.29 33.02 0.54 H[FHSWLRQDOLWHPVIRUWKHIXOO\HDUWRXFKHG` 47,745 Mn, a (In ` / USD) 21.5% decline over the previous year. * 1 USD = `([FKDQJH5DWHIRUnjQDQFLDO\HDUHQGHG0DUFK (1 USD = `([FKDQJH5DWHIRUnjQDQFLDO\HDUHQGHG0DUFK  7KHFDSLWDOH[SHQGLWXUHIRUWKHIXOO\HDUZDV` 205,919 Mn 86'  %Q  DQ LQFUHDVH RI YLV¢YLV WKH SUHYLRXV The Company’s consolidated revenues grew by 4.9% to \HDU &RQVROLGDWHG RSHUDWLQJ IUHH FDVK ǍRZ IRU WKH \HDU ` 965,321 Mn for the year ended March 31, 2016 (growth of UHǍHFWHGDQLQFUHDVHRIWR` 135,982 Mn. 6.9% after normalising for impact of IUC in India and impact During the year, the Group has designated the USD of divestment of tower assets in Africa). The revenues for GHQRPLQDWHGnjQDQFHOHDVHREOLJDWLRQV Š)/2Š UHVXOWLQJIURP India and South Asia (` 723,881 Mn for the year ended the sale and lease back of telecom tower assets in Africa, March 31, 2016) represented a growth of 9.6% compared to as a hedge against the net investments in subsidiaries with that of previous year (growth of 12.2% after normalising for 86'IXQFWLRQDOFXUUHQF\7KHHNjHFWLYHSRUWLRQRIWKHIRUHLJQ impact of IUC in India). The revenues for Africa, in constant H[FKDQJHPRYHPHQWVRQWKHKHGJLQJLQVWUXPHQWKDVEHHQ currency terms, grew by 3.1% (growth of 4.2% adjusting for UHFRJQLVHGLQRWKHUFRPSUHKHQVLYHLQFRPHVRDVWRRNjVHW the impact of divestment of tower assets). WKH IRUHLJQ H[FKDQJH PRYHPHQW RQ WKH QHW LQYHVWPHQWV 7KH &RPSDQ\ LQFXUUHG RSHUDWLQJ H[SHQGLWXUH H[FOXGLQJ EHLQJKHGJHG$FFRUGLQJO\GXULQJWKH\HDUIRUHLJQH[FKDQJH access charges, cost of goods sold, license fees and CSR loss of `0Q QHWRIWD[DQGQRQFRQWUROOLQJLQWHUHVWV  costs) of ` 413,886 Mn representing an increase of 2.9% has been recognised in other comprehensive income. ` over the previous year. Consolidated EBITDA at 341,902 Liquidity and Funding Mn grew by 8.7% over the previous year. The Company’s During the year, the Company undertook several initiatives (%,7'$ PDUJLQ IRU WKH IXOO \HDU WRXFKHG  YLV¢YLV to meet and manage its long term funding. Primarily in Q1,  LQ WKH SUHYLRXV \HDU SULPDULO\ GXH WR WLJKWHU RSH[ the Company raised USD 1,000 Mn through the issuance controls (after adjusting for the impact in reduction of of 4.375%, Guaranteed Senior Notes due 2025 at an issue termination rates, EBITDA margin for the previous year was price of 99.304%. 34.6%). Depreciation and amortisation costs for the year were higher by 12.4% to ` 174,498 Mn primarily on account As on March 31, 2016, the Company was rated ‘Investment of spectrum related amortisation cost in India. Consequently, Grade’ with a ‘Stable’ outlook by all three international EBIT at ` 166,434 Mn increased by 5.0%, resulting in a credit rating agencies namely Fitch, Moody’s and S&P. It ǍDW PDUJLQ RI YLV¢YLV WKH SUHYLRXV \HDU 7KH FDVK had cash and cash equivalents of ` 37,087 Mn and short-

90 Annual Report 2015-16 40-125 Bharti Airtel Limited 02-39 | Corporate OverviewStatutory Reports 126-355 | Financial Statements

term investments of ` 30,059 Mn. During the year ended industry. Data revenues, as a percentage of total revenues, March 31, 2016, the Company generated operating free VLJQLnjFDQWO\LQFUHDVHGIURPWRLQWKHFXUUHQW FDVKǍRZRI` 135,981 Mn. The Company’s consolidated net year. Of its total number of mobile subscribers, the Company debt as on March 31, 2016 increased by USD 1,982 Mn to had 58.2 Mn data customers at the end of March 31, 2016, USD 12,661 Mn as compared to USD 10,679 Mn last year, of which 35.4 Mn were mobile broadband customers. mainly on account of deferred payment liabilities to the DoT 7KH VHJPHQW ZLWQHVVHG VLJQLnjFDQW LPSURYHPHQW LQ WKH EHLQJ LQFOXGHG LQ GHEW 7KH 1HW 'HEW H[FOXGLQJ WKH 'R7 EBITDA margin to 39.0% during the year, compared to obligations stood at USD 7,508 Mn as on March 31, 2016 37.6% in the last year. Improvement in margin is primarily i.e. it decreased by USD 884 Mn over the previous year (USD due to the sustained top line growth and tighter control 8,392 Mn as at March 31, 2015). The Net Debt - EBITDA RYHURSHUDWLQJH[SHQVHV(%,7PDUJLQIRUWKH\HDUGHFOLQHG ratio (USD terms LTM) as on March 31, 2016 deteriorated to to 22.8%, compared to 24.0% in the last year, primarily on 2.47 times as compared to 2.08 times in the previous year, account of incremental amortisation cost on new spectrum mainly on account of increase in debt during the year. The acquired, which has an impact on EBIT margin of 2.3%. Net Debt-Equity ratio increased to 1.28 times as on March 31, 2016, compared to 1.08 times in the previous year. During the year, the Company accelerated its spends on FDSH[ ZKLFK ZHUH ODUJHO\ GLUHFWHG WRZDUGV EXLOGLQJ GDWD Awards and Recognition capacities, increasing 3G / 4G coverage and improving the Airtel is No. 1 Telecom Company in the ‘Best Telecom DOOURXQGFXVWRPHUH[SHULHQFH'XULQJWKH\HDUWKH&RPSDQ\ companies to Work for in India’ survey conducted by rolled out over 63 K mobile broadband (MBB) base stations Business Today and No. 8 across all sectors. in India. This is one of the largest global rollouts of MBB base Airtel has won the ‘Golden Peacock Award for stations in a single year. The Company had 154,097 network Sustainability’ for 2015. It is indeed an honour to receive towers, compared to 146,539 network towers in the last year. WKLVDZDUGDVLWUHFRJQLVHV$LUWHOšVHNjRUWVLQHPEHGGLQJ Mobile broadband (MBB) base stations were 118,197 at the sustainability in the services we provide; and the way we end of the year, compared to 54,381 at the end of last year. conduct our business. This award brings Airtel a step closer to achieving our vision of becoming the most Y-o-Y Particulars FY 2015-16 FY 2014-15 loved brand. Growth  $LUWHO ZLQV ,QQRYDWLRQ $ZDUG  IRU H[FHOOHQFH LQ ` Millions ` Millions % Internal Auditing by the Institute of Internal Auditors (IIA). Gross Revenues 560,818 519,636 8% Airtel has been honoured as the Firm of the year - EBIT 127,734 124,695 2% Telecommunication at the CNBC TV18 India Risk Note: Normalising for impact of IUC, Y-o-Y revenue growth is 11.7%. Management Awards. Airtel Global Revenue Assurance & Fraud Management Wireless Subscribers: India (Million) WHDPZLQVWKH2SHUDWRU([FHOOHQFHDZDUGLQWKHFDWHJRU\ RI %XVLQHVV ,QQRYDWLRQ LQ 5LVN 0DQDJHPHQW DW 6XEH[ 10.6% CAGR user conference organised at Prague, Czech Republic. 251.2 Airtel wins Annual Cybermedia ICT Business Awards for being ‘India’s Top Mobile Services Operator‘, Top Internet Services Operator” & “Top Broadband Wireless Access Operator” award for the year 2015. 226.0

Segment-wise Performance B2C services Mobile Services: India 205.5 Overview 7KH ODVW \HDU VDZ VLJQLnjFDQW EXVLQHVV DQG UHJXODWRU\ developments, which also include the release of spectrum 2013-14 2014-15 2015-16 sharing and trading guidelines by the Department of Telecommunications. The Company launched 3G services in LWVJDSFLUFOHVDQGZDVWKHnjUVWRSHUDWRUWRODXQFKKLJKVSHHG Key Initiatives 4G services across India. With the spectrum acquisitions AiUWHOKDVLQWURGXFHGLWVQHZUDQJHRIŠ,QnjQLW\3ODQVšDQG from Videocon and the proposed spectrum acquisition DQLQGXVWU\njUVWWHFKQRORJ\SODWIRUPŞ)OH[SDJH:KLOH from Aircel, the Company is set to become a pan-India 4G WKH,QnjQLW\3ODQVUHSUHVHQWDQLQGXVWU\njUVWSODQWRRNjHU operator. It also widened its content portfolio by launching unlimited voice calls on mobile, along with bundled Wynk Movies and Wynk Games mobile application. PRYLHV DQG PXVLF WKH )OH[SDJH LV DQ DXWRPDWHG platform that allows customers to track their data usage As on March 31, 2016, the Company had 251.2 Mn mobile and get real-time usage alerts. customers. The churn has increased to 3.4% for the current year, compared to 2.7% during the previous year, primarily on Airtel launched ‘Wynk Movies’ – it’s an all new carrier account of enhanced market intervention and competitive DJQRVWLF PRELOH DSSOLFDWLRQ RNjHULQJ FXVWRPHUV pressure; however, it still remains the lowest in the thousands of movies and other video content. Launched

Management Discussion and Analysis 91 Transformational Network

following the success of Wynk Music, the app is Services Limited (AMSL)). The Reserve Bank of India had ,QGLDšV njUVW FXUDWHG YLGHR PDUNHWSODFH WKDW RNjHUV DQ decided to grant an ‘in-principle’ approval to APBL to set H[KDXVWLYH OLEUDU\ RI SRSXODU PRYLHV 79 VKRZV DQG XSD3D\PHQWV%DQNLQ,QGLD$3%/DOUHDG\RNjHUV$LUWHOšV other entertainment videos across genres. It also has a ǍDJVKLSVHPLFORVHGZDOOHWXQGHUWKHEUDQGQDPHŠ$LUWHO comprehensive library of 5,000+ movies and 25,000+ Money’. videos.  $LUWHO KDV DFTXLUHG ULJKWV WR XVH [ 0+] VSHFWUXP Airtel mobile moves all its prepaid mobile customers to in the 1800 MHz Band allotted to Videocon per second billing. Rolled out under the new Pay for What Telecommunications Limited (VTL) by the Department of You Use initiative as part of the Company’s Customer 7HOHFRPPXQLFDWLRQ 'R7 RQ$SULOIRUVL[FLUFOHV First commitment, this will help ensure that customers namely, Bihar, Haryana, Madhya Pradesh, UP (East), UP pay only for the time they use the Airtel network. (West) and Gujarat at an aggregate consideration of ` 44,280 Mn.  $LUWHO UHYROXWLRQLVHG WKH VPDUWSKRQH H[SHULHQFH IRU HYHU\ FXVWRPHU E\ RNjHULQJ LUUHVLVWLEOH GDWD EHQHnjWV  %KDUWL$LUWHO/LPLWHGDQGLWVVXEVLGLDU\%KDUWL+H[DFRP and surprises ranging from 50% daily Data ‘Cashback‘ /LPLWHG HQWHUHG LQWR D GHnjQLWLYH DJUHHPHQW ZLWK $LUFHO RNjHU VKDULQJ RI *  * SDFNV LQ )DPLO\ DV ZHOO DV Limited and its subsidiaries Dishnet Wireless Limited and 6PDUWSKRQH 6XUSULVH RNjHUV D SLRQHHULQJ LQLWLDWLYH LQ Aircel Cellular Limited to acquire rights to use 20 MHz India. With this, Airtel has further established itself as an 2300 Band 4G TD spectrum for eight circles namely, XQGLVSXWHGSUHIHUUHGSDUWQHUIRUGDWDH[SHULHQFHRQDQ\ Tamil Nadu (including Chennai), Bihar, Jammu & Kashmir, smartphone. West Bengal, Assam, North East, Andhra Pradesh and Odisha at an aggregate consideration of ` 35,000 Mn.  $LUWHO ODXQFKHG ,QGLDšV njUVW XQUHVWULFWHGYDOLGLW\ GDWD The closing of the said transaction is subject to certain plan for its prepaid mobile customers. The Company customary regulatory approvals and other closing reinforced its commitment of Customers First by conditions. enabling its prepaid users to enjoy unrestricted validity towards consuming their data quota. Airtel signed an agreement to acquire 100% equity stake in Augere Wireless Broadband India, which holds 20  $LUWHO H[SDQGHG LWV FRQWHQW SRUWIROLR E\ ODXQFKLQJ MHz of BWA spectrum in the telecom circle of Madhya beta phase of ‘Wynk Games’ mobile application – the Pradesh and Chhattisgarh. Company’s latest OTT addition to the Wynk portfolio. 7KH DSS RNjHUV D OLEUDU\ RI RYHU  JOREDO DQG ORFDO Kotak Mahindra Bank Limited (KMBL) and Airtel games from across genres. ‘Wynk Games’ subscription Payments Bank Limited signed the Share Subscription is free for Airtel users and at a promotional price of ` 29 and Shareholders Agreement, wherein, KMBL agreed to for other customers in the current beta phase of the app. acquire 19.90% of the paid-up capital of APBL. Airtel invited customers in its network modernisation drive by, launching a microsite www.airtel.in/leap. It allows Telemedia Services the customers to know everything they want to know Overview about project leap; and get a transparent view of the 7KH&RPSDQ\SURYLGHVnj[HGOLQHWHOHSKRQHDQGEURDGEDQG coverage of voice and high speed broadband services, '6/ VHUYLFHVIRUKRPHVDVZHOODVRǎFHVLQFLWLHVDFURVV along with other details in their respective localities. This India. The Telemedia business witnessed a record high DSL LVDQLQGXVWU\njUVWLQLWLDWLYH net addition of 309 k, seven times compared to previous year, Airtel network transformation programme Project Leap primarily driven by launch of innovative pricing plans and an is now focusing on a series of fresh initiatives towards aggressive Go-to-Market strategy. As on March 31, 2016, creating a greener environment and building a sustainable Airtel had 3.7 Mn customers. Of these, 1.8 Mn customers network for the future. The Company announced the subscribed to its broadband / internet services, representing migration of 40,000 of its network sites across India to 49.6% compared to 44.2% last year. The higher number of green technology, while committing to bring down its EURDGEDQGFXVWRPHUVDOVRUHVXOWHGLQDVLJQLnjFDQWLQFUHDVH ` ` carbon emission footprint by 70% by 2018. in ARPU to 1,063 during the year, compared to 1,026 in the previous year. Consequently, non-voice revenue as  $LUWHO EHFDPH WKH njUVW PRELOH RSHUDWRU LQ ,QGLD WR a percentage of total Telemedia revenues now represents commercially deploy LTE-Advanced (4G+) technology 68.2% as compared to 64.9% in the last year. on a live 4G network in Kerala. LTE-Advanced carrier aggregation technology combines TD LTE (2300 MHz) ,Q WKH +RPHV VHJPHQW WKH RNjHULQJV LQFOXGH KLJKVSHHG with FD LTE (1800 MHz) bandwidths to deliver mobile EURDGEDQG RQ FRSSHU DQG njEUH XS WR WKH VSHHGV RI  GDWDVSHHGVXSWR0ESV7KLVLVDOVRDQLQGXVWU\njUVW Mbps. Besides, the product portfolio also includes local, initiative. national and international long-distance voice connectivity, IPTV and other VAS services. Majority of the DSL Net additions Airtel announced the launch of its Platinum 3G network as referred above has come in the Homes Segment. for customers in the North East. Airtel’s Platinum 3G will deliver faster internet speeds, enhance voice clarity and In the Corporate Business segment, Airtel is a trusted ICT RNjHUDVXSHULRUQHWZRUNH[SHULHQFHIRUFXVWRPHUVLQWKH VROXWLRQSURYLGHUIRUnj[HGOLQHYRLFH 35,V6,3WUXQNLQJ GDWD circle. solutions (ILP, MPLS, NLD) and other connectivity solutions like Enterprise Mobility (Resource Tracking, IOT / M2M). Key Highlights $GGLWLRQDOO\ WKH &RPSDQ\ RNjHUV VROXWLRQV WR EXVLQHVVHV RBI approved Payments Bank License to Airtel Payments to improve employee productivity through collaborative Bank Limited (APBL) (formerly known as Airtel Commerce solutions (Audio, Video and Web Conferencing). Cloud

92 Annual Report 2015-16 40-125 Bharti Airtel Limited 02-39 | Corporate OverviewStatutory Reports 126-355 | Financial Statements

portfolio is also an integral part of its business solutions 7KH &RPSDQ\ FXUUHQWO\ RNjHUV ERWK VWDQGDUG DQG KLJK VXLWHZKLFKRNjHUVVWRUDJHFRPSXWH 0LFURVRIW2ǎFH GHnjQLWLRQ +'  GLJLWDO 79 VHUYLFHV ZLWK ' FDSDELOLWLHV DQG on a pay-as-you-go model. 'ROE\ VXUURXQG VRXQG 7KH &RPSDQ\ FXUUHQWO\ RNjHU D WRWDO of 504 channels including 42 HD channels, 4 international FKDQQHOVDQGLQWHUDFWLYHVHUYLFHV$NjRUGDELOLW\RI+'VHWWRS Y-o-Y Particulars FY 2015-16 FY 2014-15 ER[HV GHPDQG IRU +' FKDQQHOV DQG XSVHOOLQJ HNjRUWV OHG WR Growth ARPU increasing by ` 19 to ` 226 as compared to previous ` Millions ` Millions % year on an underlying basis. Consequently, DTH business Gross Revenues 47,609 44,325 7% turned EBIT positive on full year basis at ` 1,843 Mn compared EBIT 12,429 8,699 43% to EBIT losses of ` 1,581 Mn in the previous year.

Y-o-Y Broadband Users (Million) Particulars FY 2015-16 FY 2014-15 Growth ` Millions ` Millions % 11.7% CAGR Gross Revenues 29,178 24,759 18% 1.82 EBIT 1,843 (1,581) 217%

DTH Subscriber Base (Million)

14% CAGR

1.51 11.7 1.46

2013-14 2014-15 2015-16 10.1 . Key Initiatives 9.0  2Q WKH +RPHV IURQW VLJQLnjFDQW SURJUHVV ZDV PDGH in the endeavour to pioneer high-speed broadband through FTTH and VDSL rollouts in the top markets. 2013-14 2014-15 2015-16 Another key intervention was improvement in the quality of acquisition through focused interventions and plan / price rationalisation, resulting in lower churn. Focus Key Initiatives on high-speed internet during both - acquisition and ALUWHO 'LJLWDO 79 ODXQFKHG LWV njUVW .8OWUD +' 8+'  EDVHPLJUDWLRQUHVXOWHGLQKLJKVSHHGEDVH GHnjQHGDV channel. With the launch of UHD channel, Airtel enables greater than or equal to 4 Mbps) moving to 59% at the LWVFXVWRPHUVWRH[SHULHQFHWKHWLPHVVXSHULRUSLFWXUH end of the year as against 46% last year. quality as compared to HD channels.  2Q WKH &RUSRUDWH %XVLQHVV IURQW VLJQLnjFDQW SURJUHVV  $LUWHO 'LJLWDO 79 DQQRXQFHG WKH ODXQFK RI LWV njUVW was made in ICT solutions both in terms of increasing LQGLJHQRXVO\PDQXIDFWXUHGVHWWRSER[HV7KH0DGHLQ geographic coverage - making all sites RF ready & faster ,QGLDVHWWRSER[HVZLOOEHDYDLODEOHLQ+'WREHJLQZLWK LPSOHPHQWDWLRQZLWKGHnjQHGWLPHOLQHV2QSURGXFWIURQW DQG VRRQ DOO RI $LUWHO 'LJLWDO 79šV VHWWRSER[HV ZLOO EH OD\HUHGLQWHUQHWRNjHULQJVFUHDWHGIRUVHUYLFLQJFXVWRPHU manufactured in India. With this, Airtel Digital TV has needs of all segments. become the latest corporate to join the Government’s  $LUWHOUROOHGRXWLUUHVLVWLEOHRNjHUVRQLWVKRPHEURDGEDQG Make in India initiative, contributing to its growing SODQV IRU H[LVWLQJ DV ZHOO DV QHZ FXVWRPHUV FDOOHG DV proliferation across sectors. ţ$LUWHO 6XUSULVHVŤ ,W HQDEOHV WKH H[LVWLQJ FXVWRPHUV WR XSJUDGHWRKLJKHUVSHHGVRUDGGLWLRQDOGDWDEHQHnjWVRQ B2B Services WKHLUH[LVWLQJSODQVFRPSOHWHO\IUHHRIFRVWDQGHQDEOHV Airtel Business its new customers to avail the best possible internet Overview VSHHGDWWKHLUKRPHDWQRH[WUDFRVW Airtel Business is India’s leading and most trusted ICT services provider. Its diverse portfolio of services includes Digital TV Services voice, data, video, network integration, data centre, managed Overview services, enterprise mobility applications and digital media. The Company served a customer base of 11.7 Mn on its Airtel Business consistently delivers cutting-edge integrated Direct-to-Home platform (Airtel digital TV), as on March 31, solutions, superior customer service and unmatched depth 2016, adding 1.7 Mn customers during the year. During / reach to global markets, to enterprises, governments, WKH \HDU WKH &RPSDQ\ ODXQFKHG LWV njUVW LQGLJHQRXVO\ carriers, and small and medium businesses. PDQXIDFWXUHGVHWWRSER[HV

Management Discussion and Analysis 93 Transformational Network

Revenues in this segment include those from: a) Enterprise Airtel launched the digital engagement solutions with & Government Business (EGB), which is predominantly long-term contracts in the government space. Main Data, and b) Global Business which includes wholesale voice pillars of the solutions, include IVR, USSD, Bulk SMS and and data. The EGB revenues (included in Airtel Business) toll-free internet. together with the Corporate Mobile revenues (included in Airtel continued its drive to localise the content, which ,QGLD0RELOH DQG&RUSRUDWH)L[HG/LQHUHYHQXHV LQFOXGHG LPSURYHVXVHUH[SHULHQFHDORQJZLWKORZHULQJWKHFRVW in Telemedia) is ` 92,327 Mn in this year; this is now 13.0% of accessing content. Airtel now serves more than 50% of the total India revenues, and has grown by 18.8% over internet requirements from India and have partnered the last year. with various global OTTs for content delivery service. Global Business, the international arm of Airtel Business,  $LUWHOKDVH[SDQGHGLWVFORXGVHUYLFHSRUWIROLRZLWKWKH RNjHUV DQ LQWHJUDWHG VXLWH RI JOREDO DQG ORFDO FRQQHFWLYLW\ ODXQFK RI &RQQH[LRQ ZKLFK ZLOO HQVXUH D PRUH VHFXUH solutions, spanning voice and data to the carriers, Telcos, scalable and seamless private connection between OTTs, large multinationals and content owners globally. enterprises, cloud service providers, and data centre Airtel’s international infrastructure includes the ownership of partners. This will help customers seamlessly and i2i submarine cable system, connecting Chennai to Singapore more securely connect to Microsoft Azure, by bringing and consortium ownership of SMEWE4 submarine cable down their network cost substantially and improving system, which connects Chennai and Mumbai to Singapore performance. and Europe. It also includes cable system investments like Airtel has strategic tie-ups with various global operators for Asia America Gateway (AAG), India, the Middle East and satellite business. The objective is to reach destinations, Western Europe (IMEWE), Unity, (EIG) and East Africa Submarine System (EASSy). Along with where we have limited or unreliable connectivity. Airtel is these seven owned subsea cables, Airtel Business has a focusing primarily on satellite communication, media and capacity on 20 other cables across various geographies. broadcast solutions, along with managed solutions and consulting projects. Its global network runs across 225,000 Rkms with over FXVWRPHUVFRYHULQJFRXQWULHVDQGnjYHFRQWLQHQWV  $LUWHOLVDGGLQJQHZFDSDFLW\LQQHZDQGH[LVWLQJFDEOHV This is further interconnected to its domestic network and DVVHWVLQWKH3DFLnjFDQG$WODQWLFURXWHVWRIXUWKHUH[SDQG direct terrestrial cables to SAARC countries and China, its footprint globally. helping accelerate India’s emergence as a preferred transit Airtel has launched two new POP in Kenya and South hub. Global business now serves more than 60% of the Africa for IP Transit and MPLS services. SAARC internet requirement. Key Highlights Leveraging the direct presence of Airtel in 20 countries Innovations like ‘Call me free’ and ‘Share credit with DFURVV $VLD DQG $IULFD *OREDO %XVLQHVV DOVR RNjHUV PRELOH solutions (ITFS, signalling hubs, messaging), along with friends’ in Airtel Talk helped in winning ‘Innovations managed services and SatCom solutions. Award’ in the Consumer Services category at the Global Telecom Awards 2016, London. Airtel Talk also won the Gold Stevie Award in the ‘Utility and Y-o-Y th Particulars FY 2015-16 FY 2014-15 Services app’ category at the 12 annual International Growth Business Awards, 2015. Stevie’s is one of the world’s ` Millions ` Millions % most prestigious awards and celebrates distinguished Gross Revenues 78,033 67,130 16% accomplishments of companies worldwide. EBIT 12,167 7,713 58% Airtel Corporate Business won Frost & Sullivan ICT Award for the second year in a row. Key Initiatives Airtel Business has won the coveted Aegis Graham Airtel has launched Smart MPLS services, wherein Bell Award for its mHealth solution. mHealth solution customers would be provided access to application aims to improve the delivery of primary health services, performance management in addition to network performance management. VSHFLnjFDOO\ IRU H[SHFWLQJ PRWKHUV LQ UXUDO ,QGLD E\ leveraging technology. The application successfully Global Business has launched Direct Internet Access works in tandem with the National Rural Health Mission’s (DIA) product in partnership with various global (NRHM) initiatives to improve local health indices and carriers. The DIA product would enable global telecom quality of life. organisations to deal multiple providers, multiple billings DQGGLNjHUHQW6/$ZKHQSURFXULQJORFDO,QWHUQHWIRUWKHLU Passive Infrastructure Services customers across multiple countries. Overview Airtel launched a unique, one-of-a-kind gamut of corporate Bharti Infratel Limited, a subsidiary of Bharti Airtel, provides applications known as EAS- Enterprise Application store, passive infrastructure services on a non-discriminatory basis which will empower an enterprise by providing the one to all telecom operators in India. Bharti Infratel deploys, owns VWRS VKRS H[SHULHQFH WR DFKLHYH LWV PRELOLW\ REMHFWLYHV and manages telecom towers and communication structures provide completely online / touch free consumption and in 11 circles of India. It also holds 42% share in Indus Towers self-care for enterprise application user. (a joint venture between Bharti Infratel, Vodafone and Idea

94 Annual Report 2015-16 40-125 Bharti Airtel Limited 02-39 | Corporate OverviewStatutory Reports 126-355 | Financial Statements

Cellular). Indus Towers operates in 15 circles (four common 0Q  UHǍHFWHG D VLPLODU PDUJLQ RI  FRPSDUHG WR WKH FLUFOHVZLWK%KDUWL,QIUDWHOFLUFOHVRQDQH[FOXVLYHEDVLV  previous year. EBIT at USD 79 Mn was lower in comparison Hence, the Company has a nationwide presence with to USD 155 Mn in the previous year, primarily due to lower operations in India’s all the 22 telecommunications circles. (%,7'$ $IWHU DFFRXQWLQJ IRU WKH IXOO \HDU FDSH[ RI 86' 0Q 3<86'0Q RSHUDWLQJIUHHFDVKǍRZZDV As on March 31, 2016, Bharti Infratel owned and operated USD 81 Mn, compared to cash burn of USD 197 Mn in the 38,458 towers, while Indus Towers operated 119,881 previous year. towers. Bharti Infratel’s towers, including its 42% interest in Indus Towers, comprised an economic interest in the equivalent of 88,808 towers in India, as on March 31, 2016. Y-o-Y Particulars FY 2015-16 FY 2014-15 %KDUWL,QIUDWHOLVOLVWHGRQWKH,QGLDQ6WRFN([FKDQJHV16( Growth and BSE. ` Millions ` Millions % Gross Revenues 251,332 269,070 (7%) Y-o-Y EBIT 4,909 11,781 (58%) Particulars FY 2015-16 FY 2014-15 Growth ` Millions ` Millions % Gross Revenues 56,173 54,282 3% Y-o-Y EBIT 15,106 14,462 4% Particulars FY 2015-16 FY 2014-15 Growth USD (CC) USD (CC) % Africa Millions Millions Overview Gross Revenues 4,059 3,965 3% The revenue-weighted currency depreciation versus the US EBIT 79 155 (49%) Dollar across 17 countries in Africa over the last 12 months H[LW 0DUFK  UDWHV  KDV EHHQ  SULPDULO\ FDXVHG E\ Note: Normalising for impact of divestment of Tower assets, Y-o-Y revenue the depreciation in Malawi Kwacha, Zambian Kwacha and growth is 4.2%. Tanzanian Shilling. In terms of the 12-month average rates, the revenue-weighted Y-o-Y currency depreciation has been Wireless Subscriber: Africa (Million) 18.3%, primarily caused by the depreciation in Zambian Kwacha, Nigerian Naira, CFA, Malawi Kwacha and Ugandan 7.7% CAGR Shilling. To enable comparison on an underlying basis, all njQDQFLDOV XS WR 3%7 DQG DOO RSHUDWLQJ PHWULFV PHQWLRQHG below are in constant currency rates as on March 05, 2015 IRUDOOWKHSHULRGV 3%7DVPHQWLRQHGEHORZH[FOXGHVDQ\ 76.26 80.56 UHDOLVHGXQUHDOLVHGGHULYDWLYHVDQGH[FKDQJHJDLQRUORVV for the period). During the year, sale and lease back of 8,740 towers in seven countries was completed for a total consideration of 69.44 USD 1.8 Bn. As on March 31, 2016, the Company had 80.6 Mn customers in Africa across 17 countries, compared to 76.3 Mn customers in the previous year, an increase of 5.6%. The total minutes 2013-14 2014-15 2015-16 on the network during the year increased by 14.7% to 136.0 Bn, compared to 118.6 Bn in the previous year. At the end of Key Initiatives the year, 15.8 Mn data customers accounted for 19.6% of ALUWHO.HQ\DODXQFKHGDQHZSODQZKLFKRNjHUVǍDWUDWH the total customer base, compared to 16.1% in the previous IRU URDPLQJ DFURVV $IULFD 2QH $LUWHO SURYLGHV ǍH[LEOH \HDU RQWKHEDVLVRIUHYLVHGGHnjQLWLRQRIŠGDWDFXVWRPHUšDV DQGVLPSOHWDULNjZLWKLQWKH$LUWHO1HWZRUNIRRWSULQW7KH RQHZKRXVHVDWOHDVW0%LQODVWGD\V 'DWDWUDǎFKDG customers of Airtel Kenya roaming in 16 Airtel Africa’s been more than doubled to 74.0 Bn MBs from 35.3 Bn MBs countries will be treated as local customers on the visited in the previous year with usage per customer increasing from network in terms of pricing, including receiving calls free 277 MBs to 435 MBs. Voice realisation per minute, however, of charge, while retaining their home SIM card. declined from 2.53 cents to 2.14 cents for the full year, due  $LUWHO*KDQDODXQFKHGWKHnjUVWHYHUWDSDQGSD\PRELOH to competitive pressures. Consequently, the overall ARPU in money payment service in Ghana. The OpCo has Africa declined from USD 4.6 to USD 4.2. Total sites in Africa DGGHGDQRWKHUnjUVWWRLWVFUHGLWVDVLWKDVUROOHGRXWDQ as on March 31, 2016 were 20,196 (PY: 18,819), of which innovative service through its Airtel Money that allows 13,128 (PY: 10,011) were 3G sites, representing 65% of the a tap-and-pay, contactless payment, based on the Near total sites, compared to 53% for the previous year. Field Communications (NFC) technology. The revenues of Airtel Africa grew by 3.1% to USD 4,059 Airtel signed a three-year global agreement with the Mn, compared to USD 3,935 Mn in the last year (growth World Food Programme for cash and value voucher of 4.2% adjusting for the impact of divestment of tower distribution services in Madagascar, Malawi, Tanzania, assets). Underlying EBITDA at USD 906 Mn (PY: USD 869 DRC, Congo B and Zambia.

Management Discussion and Analysis 95 Transformational Network

Airtel DRC and Korongo Airlines have signed an tower – 2,681 towers for USD 0.54 Bn, IHS towers - 949 agreement for air tickets purchase through Airtel towers for USD 0.15 Bn, Helios towers - 393 towers for M-Falanga - Airtel Money. USD 0.05 Bn and ATC – 4,717 towers for USD 1.06 Bn). Airtel Africa partners with customer engagement  $LUWHOKDVVLJQHGDGHnjQLWLYHDJUHHPHQWZLWK2UDQJHWo software provider IMImobile, to launch Airtel Artist sell its operations in Burkina Faso and Sierra Leone. The Management System. The Airtel Artist Management companies had signed an initial agreement in July 2015 System is a new service innovation, enabling upcoming for the acquisition of Airtel’s operations in Burkina Faso, music artists to upload and make available their music to Sierra Leone, Chad and Congo B. The agreement over potential audiences out of its 83 Mn subscribers. the latter two countries has lapsed.  $LUWHO '5&  8%$ RǎFLDOO\ ODXQFK Š/,%,.,š WKH QHZ The Company’s subsidiary in Tanzania and American microloan service through mobile phones. LIBIKI is the Towers Corporation and its subsidiaries have entered QHZ$LUWHO0RQH\VHUYLFHVZKLFKRNjHUVPDOODPRXQWRI into an agreement for the sale of over 1,300 telecom loans to the entrepreneurs or craftsmen, who have no towers in Tanzania. access to the bank credit system.  $LUWHO 5ZDQGD LQ D GULYH WR H[WHQG DNjRUGDEOH Airtel and I&M Bank Ltd have announced a partnership telecommunications products and services to Rwandans, that enables I&M Bank customer’s access to their has partnered with ITEL to introduce a new trendy and accounts via Airtel Money free of charge. The Bank DNjRUGDEOH GDWD HQDEOHG SKRQH GXEEHG .(=$ ,W QRZ account holders will now be able to pull money from their VWDQGV DV RQH RI WKH PRVW DNjRUGDEOH GDWD HQDEOHG bank accounts into their Airtel Money wallets or push phones in the Rwandan market. money from their Airtel Money wallets to their I&M Bank Awards & Recognition accounts. Airtel Rwanda received the award of best 4G Mobile The year has continued to see Airtel’s involvement in the 1HWZRUN2SHUDWRUIRUIRUH[FHSWLRQDOSHUIRUPDQFH community across Africa, such as: in 4G LTE. Airtel Kenya participated in the First Lady’s half Airtel Money Malawi was commended for being the marathon aimed at eradicating maternal deaths by PRELOH njQDQFLDO VHUYLFHV OHDGHU LQ 0DODZL DW  providing better healthcare systems for pregnant market share by Malawi Communications Regulatory mothers. Authority in conjunction with the National Statistical 2ǎFH Airtel Chad together with UNICEF launched and H[HFXWHG D QDWLRQZLGH FDPSDLJQ WR njJKW 0DODULD Airtel Money Seychelles won the best innovative product Ebola and Cancer. in the Seychelles chambers of commerce award (SCCI) in November 2015. Airtel led a breast cancer awareness campaign in partnership with the Think Pink Foundation. Airtel Tanzania has lifted awards in a recent Tanzania Leadership Awards 2015. Airtel emerged winners in two Airtel Zambia donated various items for the categories, the best use of social media in marketing 0DOQXWULWLRQZDUGDVZHOODVIRRGVWXNjIRUWKHFDQFHU DQG EUDQG H[FHOOHQFH ZLWKLQ WKH WHOHFRP VHFWRU LQ WKH ward. country. Airtel Kenya reached 43 schools with free internet Airtel Sierra Leone has received an award in recognition connectivity. RI WKH UROH WKH &RPSDQ\ SOD\HG LQ WKH njJKW WR FRQWDLQ  $LUWHO*KDQDKHOSHGPLOOLRQVRIǍRRGYLFWLPVE\JLYLQJ and eradicate the Ebola Virus Disease (EVD) from the them an opportunity to communicate with their loved 2ǎFHRIWKH3UHVLGHQW RQHVDQGIULHQGVIRUIUHHWKURXJKDQHPHUJHQF\RNjHU Airtel Ghana was bestowed with four awards at the 2015 ‘Airtel Too Much Relief‘ Pack. Ghana Telecom Awards. The Company has won these Key Highlights DZDUGV IRU njYH FRQVHFXWLYH \HDUV $LUWHO *KDQD VZHSW Airtel and Liquid Telecom signed pan-African agreement awards in the following categories - Telecom Brand of WR SURYLGH njEUH FRQQHFWLYLW\ WR WRZHUV $LUWHOšV PRELOH the Year; Marketing Campaign of the Year - Talk Chaw; broadband subscribers in Africa will soon enjoy faster Innovative Enterprise Product of the Year - One Network Internet access speeds on its 3G and 4G networks. and Special Recognition to the Telecom Industry Award - The framework agreement enables Airtel operations Lucy Quist. WR OHYHUDJH /LTXLG 7HOHFRPšV H[LVWLQJ  NPORQJ Airtel Nigeria emerges Telecom Company of the Year for njEUHQHWZRUNDFURVV(DVW&HQWUDODQG6RXWKHUQ$IULFD its laudable contributions to the growth of the telecoms DV ZHOO DV HQMR\ QHZ SXUSRVHEXLOW njEUH LQIUDVWUXFWXUH industry in Nigeria. Airtel Nigeria has been named to connect Airtel’s mobile base stations and enterprise Africa’s Telecommunications Company of the Year at the FXVWRPHUVZLWKnjEUH 6th African Business Leadership Forum & Awards 2015. During the year, sale and lease back of 8,740 towers in Airtel Uganda won two awards at the Digital Impact seven countries (Ghana, Uganda, Kenya, Burkina Faso, Awards Africa for its innovations in the Finance and Zambia, Nigeria and Congo B) was completed for a total Entertainment sector. Airtel Uganda’s mobile money consideration of USD 1.8 Bn (sale and lease back to Eaton transaction service was recognised and awarded in the

96 Annual Report 2015-16 40-125 Bharti Airtel Limited 02-39 | Corporate OverviewStatutory Reports 126-355 | Financial Statements

category of Best Financial Inclusion Impact. The talent won a Gold Award for the Best search music competition, Airtel Trace Music Star, was Multinational Corporations in Sri Lanka and silver award recognised in the category of the Best Digital Marketing for Medium Sized Enterprise Category. Airtel Lanka Campaign. is the youngest organisation in terms of market Airtel Money Tanzania was recognised for the Best H[LVWHQFH LQ 6UL /DQND WR UHFHLYH WKHVH SUHVWLJLRXV Mobile Money Product Innovation at Kalahari mobile accolades; and the only telecommunication operator to money awards. be listed on the GPTW (Sri Lanka) Hall of Fame. South Asia  $[LDWD*URXS%HUKDGDQG%KDUWL$LUWHO/LPLWHGVLJQHG Overview D 'HnjQLWLYH $JUHHPHQW WR PHUJH WKHLU UHVSHFWLYH As on March 31, 2016, South Asia had 10.2 Mn mobile telecommunication subsidiaries in Bangladesh, namely, customers on the Company’s network. Data customers 5REL $[LDWD /LPLWHG 5REL  DQG $LUWHO %DQJODGHVK represented 28.7% of the total customer base as on March Limited (Airtel). The agreement followed the September 2016, compared to 25.5% in the last year (on the basis of 09, 2015 announcement of both parties entering into UHYLVHGGHnjQLWLRQRIŠGDWDFXVWRPHUšDVRQHZKRXVHVDWOHDVW DQ H[FOXVLYH GLVFXVVLRQ WR H[SORUH WKH SRVVLELOLW\ RI 1 MB in last 30 days). As on March 2016, the Company had combining the business operations in Bangladesh. 7,083 sites on network, compared to 6,867 sites in the last Airtel Bangladesh has won the prestigious Asia year. Of the total number, 3G sites were 4,115 (PY: 3,050) in number, representing 58.1% of the total sites, compared to Communication Award 2015 in the Category of 44.4% for the previous year. Š&XVWRPHU ([SHULHQFH ,QLWLDWLYHš IRU Š2QOLQH $LUWHO ([SHULHQFH&HQWUHš The Company’s full year revenues of South Asia increased by 4.4% to ` 16,454 Mn, compared to ` 15,759 Mn in the Risks and Concerns previous year. EBITDA loss for the year was at ` 801 Mn, At Bharti Airtel (the Company), we have thrived globally compared to a loss of ` 196 Mn in the previous year. EBIT by building a culture of innovation and high performance. losses for the year reported at ` 6,394 Mn, compared to a :H H[SORUH QHZ PDUNHWV DQG EXVLQHVV PRGHOV DFURVV loss of `0QLQWKHSUHYLRXV\HDU&DSH[IRUWKH\HDU was ` 3,321 Mn, compared to ` 3,233 Mn in the previous the world; evolve new ways of customer and stakeholder year. engagement; enter into new strategic partnerships; adopt QHZ WHFKQRORJLHV DQG EXLOG H[SRQHQWLDO HǎFLHQFLHV LQ H[LVWLQJ V\VWHPV :KLOH WKHVH LQLWLDWLYHV XQYHLO D XQLYHUVH Y-o-Y Particulars FY 2015-16 FY 2014-15 Growth of possibilities, potential risks and uncertainties arise in a volatile business environment. The distress signals need to ` Millions ` Millions % be addressed with urgency for smooth operations. Therefore, Gross Revenues 16,454 15,759 4% we have created a robust risk management framework EBIT (6,394) (6,138) (4%) in our operating landscape. We have a sound practice to identify key risks across the Group and prioritise relevant Wireless Subscriber: South Asia (Million) action plans for mitigation. At the Board Governance level, the Risk Management 9% CAGR Framework is reviewed bi-annually by the Company’s Risk 10.24 Management Committee. The Board of Directors performs DQDQQXDOUHYLHZ7KHVHDSH[UHYLHZVLQFOXGHGLVFXVVLQJWKH management submissions on risks, prioritising key risks and approving action plans to mitigate such risks. The Internal Audit function is responsible to assist the Risk Management Committee on an independent basis with a full status of 8.62 risk assessments and management. Every quarter, the Risk Management Committee also obtains periodic updates on 8.60 FHUWDLQLGHQWLnjHGULVNVGHSHQGLQJXSRQWKHQDWXUHTXDQWXP and likely impact on the business.

2013-14 2014-15 2015-16 At the Management level, the respective CEOs for the 0DQDJHPHQW%RDUGV $0%DQG$IULFD([FR DUHDFFRXQWDEOH for managing risks across their respective businesses, Key Initiatives viz., India and South Asia, and Africa. The strategic risk Airtel Sri Lanka commenced 2016 by being the UHJLVWHUVFDSWXUHWKHULVNVLGHQWLnjHGE\WKHRSHUDWLQJWHDPV Principal Sponsor of the Battle of the North (annual (Circles or Operating Companies) as well as the functional cricketing tournament) for the third consecutive year. OHDGHUVKLSWHDPVDWWKHQDWLRQDOOHYHO7KH$0%$IULFD([FR Airtel Sri Lanka launched Smart Byte facility in order HQVXUHWKDWWKHHQYLURQPHQWŞERWKH[WHUQDODQGLQWHUQDOŞLV to facilitate customers to enjoy data usage at scanned for all possible risks. Internal Audit reports are also discounted rates. FRQVLGHUHGIRULGHQWLnjFDWLRQRINH\ULVNV

Management Discussion and Analysis 97 Transformational Network

The two CEOs, for India & South Asia and Africa, are responsible for the implementation of the agreed risk framework, including the detailed processes of:

Scanning the entire Listing and Classifying various risks in Developing objective business environment - prioritising the key terms of probability, impact measurement and internal and external for risks to be addressed and nature methodology for such risks identifying potential risks and managed

Approving resources, Fixing accountability of Agreeing detailed action including budgets for risk people and positions to plans to manage key risks management implement the mitigating action plans

Reviewing progress of action Reporting progress to 5HSRUWLQJRQVSHFLǟF plans, taking stock of gross the Board and Audit issues to the Audit and net exposures and Committee Committee mandating corrective actions

At the operating level, WKH([HFXWLYH&RPPLWWHHV (& RI of the changing political scenario. We contribute to the Circles in India and Operating Companies in the international socio-economic growth of the countries in which we operations are entrusted with responsibilities of managing operate through high-quality services to our customers, the risks at the ground level. Every EC has local representation improved connectivity, providing direct and indirect from all functions, including many centrally driven functions HPSOR\PHQWDQGFRQWULEXWLRQVWRWKHH[FKHTXHU2XU like IT, Legal & Regulatory, Finance and SCM, besides annual Sustainability Report is a document, which customer-facing functions, such as Customer Service, Sales KLJKOLJKWV WR WKH ODUJHU H[WHUQDO HQYLURQPHQW WKH UROH & Distribution and Networks. It is the responsibility of the we are playing in the countries we are operating in. Circle CEO or Country MD to pull together various functions We maintain cordial relationships with governments and partners to manage the risks. They are also responsible and other stakeholders in every country where we IRULGHQWLnjFDWLRQRIULVNVDQGHVFDODWLQJLWWRWKH&HQWUHIRU operate. The Country MDs and Circle CEOs carry direct agreeing mitigation plans. Operating level risk assessments accountability for maintaining neutral Government (RACM) have been concluded at Function / OpCo risk relations. Through our CSR initiatives (Bharti Foundation DVVHVVPHQWDQGPLWLJDWLRQSODQVDJUHHGDQGNLFNHGRNj etc.), we contribute to the social and economic Internal Audit Plans are being drawn up to ensure scope and GHYHORSPHQWHVSHFLDOO\LQWKHnjHOGRIHGXFDWLRQ FRYHUDJHRIWKHVHFULWLFDOULVNVGXULQJWKHFRXUVHRIQH[W\HDU We actively work with industry bodies like COAI, CII, and The key risks that may impact the Company and the FICCI on espousing industry issues e.g. penalties, right mitigating actions undertaken by the Company comprise: of way, tower sealing, and so on.

1. Regulatory and Political Uncertainties (Legal & 2. Economic Uncertainties (Operational) Compliance) Risk Statement Risk Statement The Company’s strategy is to focus on growth opportunities The Company operates in India, Bangladesh, Sri Lanka and in the emerging and developing markets. These markets 17 African countries. Some of these countries (or regions are characterised by low to medium mobile penetration, low ZLWKLQ FRXQWULHV  DUH DNjHFWHG E\ SROLWLFDO LQVWDELOLW\ FLYLO internet penetration and relatively lower per capita incomes, unrest and other social tensions. The political systems in a few WKXV RNjHULQJ PRUH JURZWK SRWHQWLDO +RZHYHU WKHVH countries are also fragile, resulting in regime uncertainties; countries are also more prone to economic uncertainties, hence, the risk of arbitrary action. Such conditions tend to VXFKDVFDSLWDOFRQWUROVLQǍDWLRQLQWHUHVWUDWHVDQGFXUUHQF\ DNjHFW WKH RYHUDOO EXVLQHVV VFHQDULR ,Q DGGLWLRQ UHJXODWRU\ ǍXFWXDWLRQV 6LQFH WKH &RPSDQ\ KDV ERUURZHG LQ IRUHLJQ uncertainties, like escalating spectrum prices, call drops / FXUUHQFLHV DQG PDQ\ ORDQV DUH FDUU\LQJ ǍRDWLQJ LQWHUHVW EMF penalties, among others are potential risks facing the WHUPV ZH DUH H[SRVHG WR PDUNHW ULVNV ZKLFK LPSDFW RXU business. HDUQLQJV FDVK ǍRZ DQG EDODQFH VKHHW 7KHVH FRXQWULHV Mitigation DUHDOVRDNjHFWHGE\HFRQRPLFGRZQWXUQVSULPDULO\GXHWR As a responsible corporate citizen, we engage FRPPRGLW\ SULFH ǍXFWXDWLRQV UHGXFHG DLG FDSLWDO LQǍRZV proactively with key stakeholders in the countries in and remittances. Slowing down of economic growth tends which we operate; and continuously assess the impact WRDNjHFWFRQVXPHUVSHQGLQJLQFOXGLQJWHOHFRP

98 Annual Report 2015-16 40-125 Bharti Airtel Limited 02-39 | Corporate OverviewStatutory Reports 126-355 | Financial Statements

Mitigation Mitigation As a global player with presence across 20 countries, Network Planning is increasingly being done in-house, we KDYHGLYHUVLnjHGRXUULVNVDQGRSSRUWXQLWLHVDFURVV to ensure that intellectual control on architecture is markets. retained within the Company. The recently announced ` 600,000 Mn Leap Programme in India continuously Through a variety of services including voice, data, seeks to address issues (congestion, indoor coverage, Airtel Money and value added services, we have also call drops, modernisation and upgrade of data speeds, spread our portfolio. among others) to ensure better quality of network. To mitigate currency risks, we follow a prudent risk 5HFHQW HNjRUWV DOVR LQFOXGH WUDQVIRUPDWLRQ RI WKH management policy, including hedging mechanisms PLFURZDYH WUDQVPLVVLRQ njEUH QHWZRUNV VHFRQGDU\ WR SURWHFW RXU FDVK ǍRZ 1R VSHFXODWLYH SRVLWLRQV rings / links and submarine cable networks. The are created; all foreign currency hedges are taken on Company consistently eliminates systemic congestion WKH EDFN RI RSHUDWLRQDO H[SRVXUHV $ SUXGHQW FDVK in the network, and removes causes of technical management policy ensures that surplus cash is up- failures through a quality improvement programme, streamed regularly to minimise the risks of blockages as well as embedding redundancies. Tighter SLAs are DW WLPHV RI FDSLWDO FRQWUROV :H KDYH VSHFLnjFDOO\ reinforced upon network partners for their delivery. The UHQHJRWLDWHG PDQ\ RSHUDWLQJ H[SHQGLWXUH  FDSH[ Company’s Network Team performance is measured, )[ FRQWUDFWV LQ $IULFD DQG FRQYHUWHG WKHP WR ORFDO EDVHG RQ QHWZRUN VWDELOLW\ FXVWRPHU H[SHULHQFH DQG FXUUHQF\WKHUHE\UHGXFLQJ)[H[SRVXUH competitor benchmarking. The Revenue Assurance team constantly monitors revenue leakages due to To mitigate interest rate risks, the Company is further IDLOXUHRIV\VWHPVRUFRQnjJXUDWLRQHUURUV7KH&RPSDQ\ VSUHDGLQJ LWV GHEW SURnjOH DFURVV ORFDO DQG RYHUVHDV follows a conservative insurance cover policy that sources of funds and to create natural hedges. provides a value cover, equal to the replacement values Finally, the Company adopts a pricing strategy that is RI DVVHWV DJDLQVW ULVNV VXFK DV njUH ǍRRGV DQG RWKHU natural disasters. EDVHGRQWZLQSULQFLSOHVRIPDUNWRPDUNHWSURnjWDELOLW\ DQGDNjRUGDELOLW\ZKLFKHQVXUHVWKDWZHSURWHFWPDUJLQV In Africa, a sustained concentrated investment DW WLPHV RI LQǍDWLRQ DQG PDUNHW VKDUHV DW WLPHV RI programme started in FY 2015-16 based on market market contraction. revenue mapping will ensure that our network quality in these areas are comparable if not better than 3. Poor Quality of Networks and Information competition. Technology Including Redundancies and Disaster The Company’s philosophy is to share infrastructure Recoveries (Operational) with other operators, and enter into SLA-based Risk Statement outsourcing arrangements. We have been proactively The Company’s operations and assets are spread across VHHNLQJVKDULQJUHODWLRQVKLSVRQWRZHUVnjEUH96$7GDWD wide geographies. Our telecom networks are subject to risks centres and other infrastructure. The disposal of towers of technical failures, partner failures, human errors, or wilful in Africa to independent and well-established tower acts or natural disasters. Equipment delays and failures, companies and long-term lease arrangements with spare shortages, energy or fuel shortages, software errors, them will ensure high quality of assets and maintenance njEUHFXWVODFNRIUHGXQGDQF\SDWKVZHDNGLVDVWHUUHFRYHU\ on the passive infrastructure. We have also put in place IDOOEDFNDQGSDUWQHUVWDNjDEVHQWHHLVPDPRQJRWKHUVDUH UHGXQGDQF\SODQVIRUSRZHURXWDJHVnjEUHFXWV96$7 IHZ H[DPSOHV RI KRZ QHWZRUN IDLOXUHV KDSSHQ 5HSHDWHG breakdowns, and so on, through appropriate backups outages and / or poor quality of networks cause disruption such as generators, secondary links, among others. of services, resulting in revenue losses, customer attrition, Similar approaches are deployed for IT hardware and market share losses and damage to brand image and software capacities; and internal IT architecture teams &RPSDQ\ UHSXWDWLRQ 5HJXODWRUV DUH QRZ DOVR OHY\LQJ VWLNj FRQWLQXRXVO\UHDVVHVVWKHHNjHFWLYHQHVVRI,7V\VWHPV monetary penalties for poor quality of services. Information Security is managed by dedicated The Company’s IT systems are critical to run the customer- IT professionals, given the huge dependence on facing and market-facing operations, besides running automated systems, as well as to ensure that customer internal systems. In many geographies or states, the quality privacy is protected. of IT connectivity is sometimes erratic or unreliable, which DNjHFW WKH GHOLYHU\ RI VHUYLFHV HJ UHFKDUJHV FXVWRPHU 4. Inadequate Quality of Customer Lifecycle query, distributor servicing, customer activation, billing, etc. Management from Acquisition to Churn ,Q VHYHUDO GHYHORSLQJ FRXQWULHV WKH TXDOLW\ RI ,7 VWDNj LV (Operational) rudimentary, leading to instances of failures of IT systems Risk Statement and / or delays in recoveries. The systems landscape is ever In a market dominated by prepaid customers, several changing due to newer versions, upgrades and ‘patches’ for LQHǎFLHQWSURFHVVHVKDYHFUHSWLQRYHUWKH\HDUVDFURVVWKH innovations, price changes, among others; the dependence industry, in respect of customer acquisitions. Such practices RQ,7VWDNjIRUWXUQDURXQGRIVXFKSURMHFWVDQGFKDQJHVLV are resulting in high rotational churn, high acquisition costs, huge. Unauthorised access to network and IT systems can low lifetime value of new customers, diversion of focus of UHVXOWLQZURQJFRQnjJXUDWLRQVSRRUTXDOLW\RIVHUYLFHIUDXGV sales force on acquisitions, rather than revenue generation, and regulatory non-compliances. trade frauds, among others.

Management Discussion and Analysis 99 Transformational Network

&XVWRPHUPLQGVHWVDQGKDELWVDUHVKLIWLQJUDSLGO\UHǍHFWHG LQFUHDVHV LQǍDWLRQ)[LPSDFWVZDJHKLNHVDQGVRRQ 7KHVH LQ WKHLU HYHUULVLQJ H[SHFWDWLRQV LQ WHUPV RI TXDOLW\YDULHW\ costs may not be naturally compensated through revenue features and pricing. The competitive landscape is also increases, which are linked to telecom mark to market issues changing dramatically, as operators vie with one another HJPDUNHWWDULNjVFRPSHWLWLYHSRVLWLRQVDQGLGOHFDSDFLWLHV to capture customer and revenue market shares. Failure &RQVHTXHQWO\ &RPSDQ\ PDUJLQV  FDVK ǍRZV FDQ FRPH WR NHHS SDFH ZLWK FXVWRPHU H[SHFWDWLRQV ZRXOG UHVXOW LQ XQGHU SUHVVXUH SXWWLQJ WKH njQDQFLDO KHDOWK RI D &RPSDQ\ FXVWRPHUFKXUQOHDGLQJWRHURVLRQRIUHYHQXHVSURnjWVDQG at risk. FDVKǍRZVDQGPDUNHWVKDUHORVVHV Mitigation Mitigation The Company has institutionalised the War on Improved customer acquisition process like monitoring Waste (WOW) Programme, an enterprise-wide cost- new customer acquisition churn, high acquisition reduction programme. This has been rolled out across recharge denominations, direct distribution, trade all functions and countries. All functions / countries margins structures and so on have been introduced. DUH WDUJHWLQJ FRVW UHGXFWLRQV DQG FRVW HǎFLHQFLHV &DSH[ &RPPLWWHHV KDYH EHHQ LQWURGXFHG HQVXULQJ The Company constantly refreshes its ways of VWULQJHQWPRQLWRULQJRIFDSH[SURSRVDOV7KHSURSRVDOV working, especially in customer service, innovation, now systemically need to cover issues like revenue marketing and distribution. These are now captured JHQHUDWLQJFDSH[UDWLRFDSH[WULJJHUULVNVDOWHUQDWHV in the Company’s integrated Customer Lifecycle competitors, among others. Management approach, which ensures that every FXVWRPHUšV EHKDYLRXU LV VWXGLHG FODVVLnjHG DQG  5HGXFWLRQLQFDSH[VSHQGVDQGLPSURYHPHQWLQFDSH[ segmented, followed by segmented service and price SURGXFWLYLW\KDVKDSSHQHGZLWKVLJQLnjFDQWSURJUDPPHV RNjHULQJV 2UJDQLVDWLRQDO HNjHFWLYHQHVV LV HQKDQFHG OLNH,&5njEUHVKDULQJ,58njEUHFREXLOGDQG$IULFDWRZHU through appropriate design and creation of leaner disposal. and multi-functional teams. Technologies and tools The Company has introduced more science into the EXVLQHVV LQWHOOLJHQFH VFLHQWLnjF SULFLQJ PRGHOV  DUH decision-making criteria for investments in new sites. deployed in managing the customer lifecycle. 7. Entry of New Competition with Disruptive  1RQFRPSOLDQFHZLWK6XEVFULEHU9HULǂFDWLRQ Business Models (Strategic) and KYC Regulations (Operational) Risk Statement Risk Statement Entry of any new operators, including MVNOs into an already Regulators are introducing more stringent subscriber crowded telecom market is a potential risk. Entry of new YHULnjFDWLRQ DQG .<& JXLGHOLQHV LQFOXGLQJ YHULnjFDWLRQ operators into the market will create surplus capacities, processes capturing biometrics, such as retina scan, leading to pricing pressures in the industry; and at the same njQJHUSULQWVDPRQJRWKHUV7KHTXDOLW\RI.<&GRFXPHQWV time accelerate customer migration from legacy 2G / 3G is also being stringently scrutinised. Non-compliance with networks. This may put pressure on margins / cash for the WKHVHJXLGHOLQHVHQWDLOVHYHUHSHQDOWLHVZKLFKLVUHǍHFWHGE\ Company, in the short term before industry consolidates and instances of such actions by regulators on other operators. / or the surplus capacity is absorbed. Mitigation Mitigation  7KH&RPSDQ\ LV LQYHVWLQJ VLJQLnjFDQWO\ LQ .<& WRROV Airtel has prided itself on being the # 1 network including biometric scanners to improve the quality of operator across the country. Its long term spectrum subscriber activation and documentation processes strategy, based on future technologies and consumer as per required legislation. Self-compliance and needs have been ahead of the market. The Company reinforcing of ‘tone at the top’ to ensure compliance is LQ4šZDVWKHnjUVW*RSHUDWRUWRODXQFK*DFURVV the bedrock of our control. Focus on quality of partners ,QGLDLQFLWLHVnjUPLQJLWVSRVLWLRQVDVWKHRQO\* DQG,7V\VWHPVVWDNjWUDLQLQJSURDFWLYHPDNHUFKHFNHU operator in the country. The Company has become the controls and internal audits, as well as robust internal only company with 3G spectrum across 21 of the 22 MIS help achieve adherence to compliances. Internal circles in India. A record breaking 63,816 broadband MIS on compliance scores, activation time taken, etc. GDWDVLWHVZHUHUROOHGRXWDFURVV,QGLDWKLVnjVFDOZKLFK has been standardised to achieve greater focus on is well ahead of all the operators. Airtel has also been FRPSOLDQFHV 6WDNj LQYROYHG LQ VXFK SURFHVVHV KDYH the preferred network for high value customers; and EHHQ UHYDPSHG WR UHǍHFW FOHDU UHVSRQVLELOLWLHV IRU has the highest ARPU in the industry. The Company has FRPSOLDQFHWRYHULnjFDWLRQDQG.<&JXLGHOLQHV6HYHUH strategic programmes for driving down churn through management action is taken in case of any non- DQLQWHJUDWHGDQGHQGWRHQGH[SHULHQFHWKURXJKVKDUS compliance. propositions for high-value customers.

6. Increase in Cost Structure (Capex / Operating 8. Issues Arising out of Emerging Businesses and Expenditure) Ahead of Revenues (Operational) New Technologies (Strategic) Risk Statement Risk Statement Across markets, costs structures have been increasing both Evolving technologies result in change in customer value from volumes (new sites rollouts, capacity) or / and rate SURSRVLWLRQV7KHTXDOLW\RILQWHUQHWH[SHULHQFHHVSHFLDOO\LQ

100 Annual Report 2015-16 40-125 Bharti Airtel Limited 02-39 | Corporate OverviewStatutory Reports 126-355 | Financial Statements

a seamless manner and indoor environment has emerged as Mitigation a key competitive parameter. Digital content and apps have The Company has always stood for a fair, transparent and non now become the favourites for mobile customers. Digital – discriminatory government policy on telecom regulation. It Mobile money technologies, innovative mobile apps, Cloud, has insisted governments of all countries that sustainable M2M, SaaS and other technology-based VAS products regulatory regimes will lead to a healthy growth of the sector, are also evolving. Such rapid technology evolution may leading to higher investments and modernisation, which LPSDFW WKH IXQFWLRQDOLW\ RI H[LVWLQJ DVVHWV DQG DFFHOHUDWH LQ WXUQ EHQHnjWV WKH LQGXVWU\ DQG VRFLHW\ 7KH &RPSDQ\ obsolescence. Keeping pace with changing customer stands for a regime that promotes healthy, competitive H[SHFWDWLRQVLVDELJDJHQGDIRUWKHWHOHFRPVHFWRU pricing keeping two objectives in mind – customer interests There is also a serious risk of unavailability of right skills to and health of the sector. As an industry participant the grow these emerging businesses and / or deploy the new &RPSDQ\SURYLGHVDGHTXDWHIDFWVDQGnjJXUHVWRSURYHKRZ technologies. Talent availability in emerging economies is healthy telecom growth strengthens a country’s economic also limited, since the overall demand for good talent far growth. The Company has been at the forefront of industry RXWVWULSVWKHVXSSO\VSHFLnjFDOO\IRU,7DQG1HWZRUNVDNjHFWLQJ cooperation to share infrastructure, minimise impact on the performance of our partners also. In addition, there is a the environment, lower operational cost and make services need for constantly upgrading skills and competencies of the PRUH DNjRUGDEOH $V D UHVSRQVLEOH RSHUDWRU WKH &RPSDQ\ H[LVWLQJZRUNIRUFH6NLOOPLVPDWFKOHDGVWRIDLOHGODXQFKHV participates in government consultation and industry ill-planned projects, sub-optimal cost structures, faulty asset association events, to foster collaboration and knowledge FRQnjJXUDWLRQVDPRQJRWKHUVZKLFKLQWXUQOHDGVWRnjQDQFLDO sharing for best industry policies and practices. losses. 10. Gaps in Internal Controls (Financial and Non- Mitigation ǂQDQFLDO Ş 2SHUDWLRQDO Airtel’s strong strategic vendor relationships – especially Risk Statement in the areas of network technologies, IT, mobile money and a few other key VAS technologies help us keep pace The Company serves over 357 Mn customers globally with with technology shifts and retain market leadership. The a daily average of 4,037 Mn minutes of voice and 1,887 Company’s own digital innovations such as Wynk under terra bytes of data carried on wireless networks located at which OTT apps like Music, Movies and Gaming have more than 181,000 sites. Gaps in internal controls and / or EHHQODXQFKHG0\$LUWHO$SSHWFDUHIHZH[DPSOHVRI process compliances not only lead to wastages, frauds and its keeping pace with the changing landscape. losses, but can also adversely impact the Airtel brand. The potential risks of asset obsolescence are managed Mitigation through leaner order pipelines, demand-based capacity Airtel’s business philosophy is to ensure compliance sourcing and formal swap arrangements with vendors. with all accounting, legal and regulatory requirements In several countries, the Company is proactively leading proactively. Compliance is monitored meticulously the development of 3G, 4G, digital content partnerships, at all stages of operation. Substantial investments in mobile money, among others ahead of the curve to ,7 V\VWHPV DQG DXWRPDWHG ZRUNǍRZ SURFHVVHV KHOS leverage big opportunities. The Company has also minimise human errors. entered the digital payments space with the receipt of a Payments Bank license, which will enable it to become Besides internal audits, we also have a process of self- a key player in this rapidly evolving ecosystem. validation of several checklists and compliances as well as a ‘maker-checker’ division of duties to identify 9. Adverse Regulatory Taxation or Fiscal Taxation and rectify deviations early enough. The Company has Developments including Risks Related to Tax also implemented GRC systems (Governance, Risk and Positions (Legal & Compliance) Compliance) to embed systemic controls. Risk Statement The Company has introduced Internal Financial Regulatory developments in India, South Asia and Africa can Controls and the Corporate Audit Group has tested pose several challenges to the telecom sector. The telecom such controls. The Audit Group has asserted that the VHFWRULVKLJKO\WD[HGZLWKKLJKUHYHQXHVKDUHEDVHGOLFHQVH Company has in place adequate tools, procedures and IHHVDQGVLJQLnjFDQWVSHFWUXPDFTXLVLWLRQFRVWVLQDXFWLRQV SROLFLHV HQVXULQJ RUGHUO\ DQG HǎFLHQW FRQGXFW RI LWV PXOWLSOHOHYLHVVXFKDVVHUYLFHWD[HVH[FLVHGXWLHV6LPWD[ business, including adherence to Company’s policies, 9$7DQGVRRQ7KHFRUSRUDWHWD[UDWHVRQSURnjWVFRPELQHG safeguarding of its assets, prevention and detection ZLWK ZLWKKROGLQJ WD[HV RQ UHPLWWDQFHV KDYH PDGH WKH of frauds and errors, accuracy and completeness of RYHUDOO WD[ VWUXFWXUH H[WUHPHO\ KHDY\ ,Q VHYHUDO FRXQWULHV accounting records; and timely preparation of reliable WD[ OLWLJDWLRQV DUH JHWWLQJ SURORQJHG GXH WR DPELJXRXV njQDQFLDOLQIRUPDWLRQ interpretations and / or lack of judicial precedents. In some countries, which are undergoing economic challenges, Internal Controls unfortunately, the telecom industry is being seen as a ‘cash The Company’s philosophy towards internal controls is cow’. The stringent regulatory requirements in respect based on the principle of healthy growth with a proactive of rollout / coverage and quality of services accompanied approach to risk management. by unreasonable demands also pose another threat. Such DGYHUVHUHJXODWRU\RUWD[DWLRQGHYHORSPHQWVKDYHDNjHFWHG The Circle and Country Finance Heads are held accountable the telecom sector, including the Company. IRU njQDQFLDO FRQWUROV PHDVXUHG E\ REMHFWLYH PHWULFV

Management Discussion and Analysis 101 Transformational Network

on accounting hygiene and audit scores. They are fully India. The award recognises entities for innovation in the responsible for accuracy of books of accounts, preparation use of technology, controls, business process and internal RI njQDQFLDO VWDWHPHQWV DQG UHSRUWLQJ WKH VDPH DV SHU auditing in an innovative manner for business impact. the Company’s accounting policies. Regulatory and 7KH $LUWHO &HQWUH RI ([FHOOHQFH Š$&(š  EDVHG LQ *XUJDRQ legal requirements, accounting standards, and other and Bengaluru, is the captive shared service for Financial pronouncements are assessed regularly as to whether and Accountage, Revenue Assurance, SCM and HR processes. It WRZKDWH[WHQWWKH\DUHUHOHYDQWDQGWKHLUUHODWHGLPSDFWRQ FRQWLQXHVWRH[SDQGLWVIRRWSULQWDFURVVFRXQWULHVWKHUHE\ njQDQFLDOUHSRUWLQJ7KHUHOHYDQWUHTXLUHPHQWVDUHGHnjQHGLQ ensuring standardisation of all these processes across the the Group Accounting Manuals, which are communicated organisation with inbuilt embedded controls. Digitisation of WR UHOHYDQW XQLWV DQG WRJHWKHU ZLWK WKH njQDQFLDO UHSRUWLQJ ACE is being aimed as a part of the transformation agenda calendar evidencing the tasks and timelines that are binding and includes initiatives like system based reconciliation, WKURXJKRXW WKH *URXS IRUPV WKH EDVLV RI WKH njQDQFLDO UHSRUWLQJSURFHVVHVZLWKYLYLGO\GHnjQHGVHJUHJDWLRQRIGXWLHV reporting process. ERP integration in Africa into an Oracle Single Instance has The Company deploys robust system of internal controls been accomplished across all African countries, ensuring WKDW IDFLOLWDWHV IDLU SUHVHQWDWLRQ RI RXU njQDQFLDO UHVXOWV LQ XQLIRUPLW\DQGVWDQGDUGLVDWLRQLQ(53FRQnjJXUDWLRQVFKDUW a manner that is complete, reliable and understandable, RIDFFRXQWVnjQDQFHDQG6&0SURFHVVHVDFURVVFRXQWULHV ensure adherence to regulatory and statutory compliances, 4XDOLW\RInjQDQFLDOUHSRUWLQJDQGFRQWUROVFRQWLQXHVWRVKRZ and safeguards investor interest by ensuring the highest LPSURYHPHQW :H FRQWLQXRXVO\ H[DPLQH RXU JRYHUQDQFH level of governance and periodic communication with practices to enhance investor trust and improve the Board’s investors. M/s. S.R. Batliboi & Associates LLP, our Statutory RYHUDOOHNjHFWLYHQHVV,QLWLDWLYHVXQGHUWDNHQLQWKHSUHYLRXV Auditors, have done an independent evaluation of key year’s such as virtual desktop interface for ultimate data FRQWUROV RYHU njQDQFLDO UHSRUWLQJ ,&2)5  DQG H[SUHVVHG security, self-validation checks, desktop reviews and regular DQ XQTXDOLnjHG RSLQLRQ VWDWLQJ WKDW WKH &RPSDQ\ KDV LQ SK\VLFDO YHULnjFDWLRQ DUH SURGXFLQJ PHDVXUDEOH RXWFRPHV DOO PDWHULDO UHVSHFWV DGHTXDWH LQWHUQDO njQDQFLDO FRQWURO through substantial improvement in control scores across V\VWHPRYHUnjQDQFLDOUHSRUWLQJDQGVXFKLQWHUQDOnjQDQFLDO both India and Africa. FRQWUROV RYHU njQDQFLDO UHSRUWLQJ ZHUH RSHUDWLQJ HNjHFWLYHO\ Oracle Governance Risk & Compliance (GRC) module as on March 31, 2016. Independent validation was also led has been implemented for India and Africa to strengthen E\&RUSRUDWH$XGLW*URXSIRUDVVHVVLQJWKHHNjHFWLYHQHVVRI H[LVWLQJFRQWUROVSHUWDLQLQJWRDFFHVVULJKWVIRUYDULRXV(53V Internal Financial Controls (IFC) and no reportable material ensuring segregation of duties and preventing possibilities weaknesses in the design or operation were observed. RIDFFHVVFRQǍLFWV The Company has in place an Internal Assurance Group (IAG) headed by Group Director - Internal Assurance. Material Developments in Human Resources M/s. KPMG and M/s. ANB & Co (ANB) are the Internal At Bharti Airtel, talent has always been key to our sustainable $XGLWRUV RI WKH &RPSDQ\ ZKLFK FRQGXFWV njQDQFLDO growth. From the roll-out of 4G technology to the latest compliance and process improvement audits each year. GLJLWDODSSVEULOOLDQWFXVWRPHUH[SHULHQFHDQGQHZVHUYLFH Our Audit Committee oversees the scope and evaluates propositions, our people are involved in both design and the overall results of these audits, and members of that H[HFXWLRQ:HUHDOLVHWKDWRXUDELOLW\WRFRQWLQXHDQGVXVWDLQ Committee regularly attend meetings of Board of Directors. RXU JURZWK DQG H[WUDRUGLQDU\ VXFFHVV VWURQJO\ GHSHQGV 7KH$XGLW&RPPLWWHHDOVRUHYLHZVWKHHNjHFWLYHQHVVRIWKH on our ability to grow and nurture this talent. Through our internal control system, and invites functional Directors 10-point Talent First agenda, the people pillar of the Airtel and senior management personnel to provide updates on GPS, our endeavour is to provide an enabling environment RSHUDWLQJ HNjHFWLYHQHVV DQG FRQWUROV IURP WLPH WR WLPH that empowers our employees to learn, grow and succeed. $ &(2 DQG &)2 &HUWLnjFDWH IURP DOO RSHUDWLQJ HQWLWLHV IRUPLQJSDUWRIWKH&RUSRUDWH*RYHUQDQFH5HSRUWFRQnjUPV In 2015-16, we encouraged a culture of performance WKH H[LVWHQFH DQG HNjHFWLYHQHVV RI LQWHUQDO FRQWUROV DQG H[FHOOHQFH E\ SURYLGLQJ HPSOR\HHV FRPSOHWH FODULW\ RQ UHLWHUDWHVWKHLUUHVSRQVLELOLWLHVWRUHSRUWGHnjFLHQFLHVWRWKH WKHLUJRDOV(PSOR\HHVZHUHH[SHFWHGWRVHWRQO\IRXU.5$V Audit Committee and rectify the same. The Company’s code three operational and one strategic. Mid-year and year-end of conduct requires compliance with law and Company performance assessments and dialogues provided a view of SROLFLHVDQGDOVRFRYHUVPDWWHUVVXFKDVnjQDQFLDOLQWHJULW\ the employee’s performance to his / her reporting manager, DYRLGLQJFRQǍLFWVRILQWHUHVWZRUNSODFHEHKDYLRXUGHDOLQJV who in turn provided feedback to the person concerned. ZLWKH[WHUQDOSDUWLHVDQGUHVSRQVLELOLWLHVWRWKHFRPPXQLW\ Employees’ performance and potential were then discussed in Talent Councils to enable ‘One View of Talent’ across the $XGLWV DUH FDWHJRULVHG LQWR GHnjQHG DVVXUDQFH WUDFNV ZLWK Company; and ensure that leaders are made accountable M/s. KPMG responsible to audit Finance and Technology for talent development. The Company’s leadership track and ANB responsible to audit Customer and L&R development strategy is focused on nurturing in-house track. M/s. KPMG is also engaged to perform forensics work. talent through need-based interventions. With an internal Bottom-up risk assessment and directional inputs from the succession rate of over 70% and over 16% of employees Audit & Risk Management Committee formed the basis of with cross-functional H[SHULHQFH WKH &RPSDQ\ KDV audit priorities. The Company was awarded for ‘Innovation been able to provide accelerated career and development in Internal Audit 2016’ by the Institute of Internal Auditors, opportunities to its young talent.

102 Annual Report 2015-16 40-125 Bharti Airtel Limited 02-39 | Corporate OverviewStatutory Reports 126-355 | Financial Statements

At the senior leadership level, succession planning was Conference. In another prestigious recognition, an Airtel conducted for critical roles to ensure a ready pipeline. A employee in Seychelles, Ms. Erna Hoarau, was bestowed 360-degree feedback survey was administered for over with the National Employee of the Year award for the ICT 370 senior leaders across India and Africa to enhance Industry by the Ministry of Labour & HRD. OHDGHUVKLSHNjHFWLYHQHVV7KH\HDUVDZWKHODXQFKRI$LUWHOšV new Learning Management System, iLearn, with interactive Outlook features like social learning, virtual connect sessions, India’s telecommunications sector continues to be an e-libraries and so on. There was a continued focus on role- integral part of the country’s engine of growth, innovation based academies for critical talent like the Zonal Business and disruption. With a subscriber base of nearly Manager Academy. The Company’s high impact functional 1,058.86 Mn at the end of March 2016, India has the learning programmes in Sales, Marketing, Network, world’s second largest telecom network. Mobile based )LQDQFH 6&0 DQG ,7 DQG SUHVWLJLRXV H[WHUQDO leadership Internet is a key component of the country’s internet usage, development programmes, also enabled enriching learning with seven out of eight users accessing internet from their H[SHULHQFHV:HDOVRODXQFKHGDQinduction module giving PRELOH SKRQHV 7KH DYDLODELOLW\ RI DNjRUGDEOH VPDUWSKRQHV an overview of Bharti Group, Airtel and its business verticals. is driving industry growth. Smartphones will likely account As a part of our commitment to build a diverse workforce, for over 80% of annual phone shipments by 2018. Thanks ZH LQFUHDVHG RXU 0DWHUQLW\ OHDYH SROLF\ IURP WKH H[LVWLQJ to e-commerce, mobile banking and high quality content 12 weeks to 22 weeks, along with the Company’s pledge viewing (anytime anywhere), India is set to witness an to provide the same or an equivalent role to the woman H[SRQHQWLDO GDWD JURZWK ZKLOH YRLFH JURZWK LV ODUJHO\ employee on return. stabilising. The Company has also launched the Mood-o-Meter app, $IULFDšV WHOHFRP VHFWRU KDV VHHQ H[SRQHQWLDO JURZWK LQ which gives employees an option to provide feedback mobile phone usage since the early 2000s. Over the throughout the year. With thousands of employees working in past year, digital innovation continues to transform the WKHPDUNHWnjHOGDQGVWRUHVWKLVXQLTXHIHDWXUHRIIHHGEDFN continent’s economic and business landscape. There are on-the-go is useful to regularly feel the organisational pulse. substantial growth opportunities in the data market in Africa, both in terms of data connectivity and data based services. The past year also saw multiple initiatives to brand Airtel as $IULFD E\SDVVHG nj[HG OLQHV WR GHYHORS PRELOH QHWZRUNV an Employer of Choice. Some of them are: Airtel Stories $GGLWLRQDOO\ PRELOH PRQH\ KDV VLJQLnjFDQWO\ HQKDQFHG (highlighting the career journey of employees); launching a njQDQFLDOLQFOXVLRQLQ$IULFD$IULFDšVPRELOH0RQH\0DUNHWLV refurbished Airtel careers website; and enhanced presence H[SHFWHGWRJURZQHDUO\VHYHQIROGE\ on LinkedIn (over 238,790 followers) and Facebook. Telecom operators continue to invest heavily on networks Airtel was ranked No 1 in Business Today’s Best Companies to tap the increased demand from the sector. Bharti Airtel’s survey in the telecom sector, and No 8 overall. In to Work For pan-India 4G footprint, payments bank license, South Asian Africa, Airtel was awarded the Best Organisation in the L&D SUHVHQFHGLYHUVLnjHGSURGXFWSRUWIROLRDQGQHWZRUNUROORXWV category in the Café Africa 2015 eLearning International in Africa will act as a major stimulus to the Company’s growth.

Management Discussion and Analysis 103 Transformational Network

Report on Corporate Governance

Corporate Governance is more than set of processes Adopts policies on tenure of Directors, rotation of and compliances at Bharti Airtel Limited. It underlines Auditors and a Code of Conduct for Directors and the role that we see for ourselves for today, tomorrow Senior Management. and beyond. Creates various Committees for Audit & Risk ,Q DFFRUGDQFH ZLWK 6HFXULWLHV DQG ([FKDQJH %RDUG RI Management, HR and Nomination, Corporate Social India (Listing Obligations and Disclosure Requirements) Responsibility, Employee Stock Option Plans and Regulations, 2015 (Listing Regulations) and some of the best Stakeholders’ Relationship. practices followed internationally on Corporate Governance, Ensures complete and timely disclosure of relevant the following report on governance lays down the ethos of njQDQFLDO DQG RSHUDWLRQDO LQIRUPDWLRQ WR HQDEOH WKH Bharti Airtel Limited (Bharti Airtel / Airtel / the Company) and its commitment to conduct business in accordance with %RDUGWRSOD\DQHNjHFWLYHUROHLQJXLGLQJVWUDWHJLHV sound Corporate Governance practices. Organises meetings of Independent Directors without WKH SUHVHQFH RI DQ\ 1RQ,QGHSHQGHQW  ([HFXWLYH Governance Philosophy Directors and members from the management At Bharti Airtel, the philosophy of Corporate Governance to identify areas, where they need more clarity or focuses on creating and sustaining a deep relationship information and putting the same before the Board or of trust and transparency with all stakeholders. We follow management. ethical business standards in all our operations globally. We consider stakeholders as partners in our journey forward  2NjHUV D IRUPDO LQGXFWLRQ VFKHGXOH DQG SURYLGH and we are committed to ensure their wellbeing, despite familarisation programme for new Board members business challenges and economic volatilities. that enable them to meet individually with the top management team, customers etc. 7KHQRUPVDQGSURFHVVHVRI&RUSRUDWH*RYHUQDQFHUHǍHFW our commitment to disclose timely and accurate information  5HYLHZV UHJXODUO\ DQG HVWDEOLVKHV HNjHFWLYH PHHWLQJ UHJDUGLQJRXUnjQDQFLDODQGRSHUDWLRQDOSHUIRUPDQFHDVZHOO practices that encourage active participation and as the Company’s leadership and governance structure. Over contribution from all members. the years, our stakeholder commitment has enhanced the Ensures independence of Directors in reviewing and respect and recall of our brand nationally and internationally. approving corporate strategy, major business plans and Our global stature has enabled us to attract best industry activities. WDOHQW DQG njQDQFLDO UHVRXUFHV WR WUDQVODWH RXU VKRUWWHUP and long-term strategies into a viable business blueprint.  .HHSVLQSODFHDZHOOGHnjQHGFRUSRUDWHVWUXFWXUHWKDW establishes checks, balances and delegates decision Our Board of Directors (‘Board’) shapes the long-term making to appropriate levels in the organisation, though vision and policy approach to steadily elevate the quality WKH%RDUGDOZD\VUHPDLQVLQHNjHFWLYHFRQWURORIDNjDLUV RI JRYHUQDQFH LQ RXU RUJDQLVDWLRQ :H IROORZ D GHnjQHG guideline and an established framework of corporate Corporate Governance Rating governance. The objective is to emerge as a market leader CRISIL assigned its Governance and Value Creation (GVC) in our industry, nationally and internationally with focus on rating, viz. CRISIL GVC Level 1 on the Corporate Governance creating greater value for all those who have a stake in our progress directly or indirectly. At the same time, the Board practices adopted by Airtel. The rating indicates that Bharti puts a lot of emphasis on creating a global talent pool and Airtel’s capability, with respect to Corporate Governance helping protect the environment by following green practices and value creation for all its stakeholders, is the highest. The and technologies. Company acknowledges that standards are a constantly upwardly moving target. It aims to benchmark itself with the 2XU HQOLJKWHQHG %RDUG UHSUHVHQWV D FRQǍXHQFH RI best of companies in India and globally and to maintain the H[SHULHQFHDQGH[SHUWLVHDFURVVGLYHUVHDUHDVUDQJLQJIURP highest ratings for its practices. JOREDO njQDQFH WHOHFRPPXQLFDWLRQ JHQHUDO PDQDJHPHQW administrative services and consulting. There is a clear Governance Structure demarcation of duties and responsibilities among the Sustaining a culture of integrity along with high performance Chairman and Managing Directors & CEOs to ensure best RULHQWDWLRQLQWRGD\šVFRPSOH[EXVLQHVVHQYLURQPHQWQHHGV corporate performance and socio-economic value creation. a robust governance structure. The Corporate Governance Our governance conforms to global standards through structure of the Company is multi-tiered, comprising continuous evaluation and benchmarking. It is based on the governing / management Boards at various levels, each of following broad tenets whereby the Company: which is interlinked in the following manner: Adopts transparent procedures and practices and  $WWKHDSH[OHYHOLVWKH%RDUGRI'LUHFWRUVDQGYDULRXV arrives at decisions based on adequate information. committees, which collectively direct the highest standards of Corporate Governance and transparency  (QVXUHV FRPSOLDQFH ZLWK UHJXODWRU\ DQG njGXFLDU\ LQ WKH &RPSDQ\šV IXQFWLRQLQJ 7KH %RDUG H[HUFLVHV requirements in letter and spirit. independent judgement in overseeing management  2NjHUV KLJK OHYHOV RI GLVFORVXUHV WR GLVVHPLQDWH performance on behalf of the share owners and FRUSRUDWH njQDQFLDO DQG RSHUDWLRQDO LQIRUPDWLRQ WR DOO other stakeholders, and hence, plays a vital role in stakeholders. the oversight and management of the Company. The

104 Annual Report 2015-16 40-125 Bharti Airtel Limited 02-39 | Corporate OverviewStatutory Reports 126-355 | Financial Statements

Board is chaired by the Chairman, who is responsible The Board comprises of twelve members which includes a for the overall strategy development, alliances, Chairman, a Managing Director & CEO (India & South Asia) leadership development, international opportunities, IRXU1RQ([HFXWLYH'LUHFWRUVDQGVL[,QGHSHQGHQW'LUHFWRUV strengthening governance practices and enhancing 'HWDLOHG SURnjOH RI HDFK RI WKH 'LUHFWRUV LV DYDLODEOH RQ brand value and Airtel’s global image and reputation. the Company’s website at www.airtel.com in the Investor At one level below the Board, strategic co-ordination Relations section. and direction is provided by the Airtel Corporate The Company’s Board members are from diverse Council (ACC). The ACC is headed by the Chairman EDFNJURXQGV ZLWK VNLOOV DQG H[SHULHQFH LQ FULWLFDO DUHDV and comprises the Managing Directors & CEOs OLNH WHFKQRORJ\ JOREDO njQDQFH WHOHFRPPXQLFDWLRQ and selected senior management personnel as its entrepreneurship, administrative services, consulting and members. The key role and responsibilities of the ACC JHQHUDOPDQDJHPHQW0DQ\RIWKHPKDYHZRUNHGH[WHQVLYHO\ are provided later in this report. in senior management positions in global corporations, and The Managing Director & CEO (India & South Asia) others are industrialists of repute with a deep understanding is responsible for strategy deployment and overall of the global business environment. The Board reviews its business performance of Indian and South Asia. He strength and composition from time to time to ensure that is supported by the Airtel Management Board (AMB). it remains aligned with the statutory, as well as business The Company’s business in India is structured into four requirements. business units (BUs) i.e. Mobile Services, Telemedia Services, Airtel Business and Digital TV Services, each As per the Company’s Policy on Nomination, Remuneration headed by a Business President / CEO. and Board Diversity, selection of a new board member(s) is the responsibility of the HR and Nomination Committee, The Passive Infrastructure business is deployed, owned which is subsequently approved by the Board. All the and managed by Bharti Infratel Limited (Infratel), a appointments are made with unanimous approval. The listed subsidiary company. Infratel’s operations are appointment of such Director is subsequently approved by managed by its Managing Director & CEO under the the shareholders at the Annual General Meeting (AGM). supervision of an Independent Board. The business While the shareholders’ representative Directors are transactions between the Company and Infratel are proposed by the respective shareholders, Independent undertaken on an arms’ length basis, since it provides Directors are selected from diverse academic, professional services to other telecom operators as well, on a non- or technical background depending upon business needs. discriminatory basis. The Company’s operations in Africa are guided by Independent Directors the Managing Director & CEO (Africa) of Bharti Airtel The Company has a policy on Independent Directors, their International (Netherlands) B.V., a subsidiary company. roles, responsibilities and duties, are consistent with the He is responsible for strategy deployment and overall Listing Regulations and Section 149 of the Companies Act, business performance. He is supported by the Africa 2013. It sets out the criteria of independence, age limits, ([HFXWLYH $(;  recommended tenure, committee memberships, remuneration and other related terms of appointment. The policy emphasises The AMB in India and South Asia, and AEX in Africa importance of independence. As per the policy: provide support relating to the Company’s business strategy and also derive operational synergies across a) The Independent Director must meet the baseline business units. They own and drive company-wide GHnjQLWLRQDQGFULWHULDRQŠLQGHSHQGHQFHšDVVHWRXWLQ processes, systems, policies, and also function as role Listing Regulations (erstwhile Listing Agreement) and models for leadership development and as catalysts Section 149 of the Companies Act, 2013 and other for imbibing customer centricity and meritocracy in the regulations. Company. E  7KH,QGHSHQGHQW'LUHFWRUPXVWQRWEHGLVTXDOLnjHGIURP Airtel’s governance structure thus helps in clearly being appointed as Director in terms of Section 164 determining the responsibilities and entrusted powers and other applicable provisions of the Companies Act, RIHDFKRIWKHEXVLQHVVHQWLWLHVHQDEOLQJWKHPWRIXOnjOO 2013. WKRVH UHVSRQVLELOLWLHV LQ WKH PRVW HNjHFWLYH PDQQHU,W c) 7KHPLQLPXPDJHLV\HDUVDQGWKHPD[LPXPLV also allows the Company to retain the organisational years. '1$ ZKLOH HQDEOLQJ HNjHFWLYH GHOHJDWLRQ RI DXWKRULW\ and empowerment at all levels. d) The Independent Directors are not to be on the Board RIPRUHWKDQVL[OLVWHGFRPSDQLHV+RZHYHUSXUVXDQW Board of Directors to the Listing Regulations if the Independent Director is serving as a Whole-time Director in any listed company Composition of the Board then he shall not serve as an Independent Director in 7KH &RPSDQ\šV %RDUG LV DQ RSWLPXP PL[ RI ([HFXWLYH more than three listed companies. 1RQ([HFXWLYH DQG ,QGHSHQGHQW 'LUHFWRUV DQG FRQIRUPV with the provisions of the Companies Act, 2013, the Listing e) Th HPD[LPXPWHQXUHLVWZRWHUPVRInjYH\HDUVHDFK Regulations, FDI guidelines, terms of the requirements of the However, the second term is subject to approval by shareholders’ agreement and other statutory provisions. shareholders by way of special resolution.

Report on Corporate Governance 105 Transformational Network

The Company has issued letter of appointment to all opportunity to familiarise themselves with the Company, its the Independent Directors. This letter inter-alia sets out management, its operations and the industry in which the the roles, functions, duties and responsibilities, details Company operates. regarding remuneration, training and development and The induction programme includes one-to-one interactive performance evaluation process. The detailed terms and conditions of the appointment of Independent sessions with the top management team, business and Directors are available on the Company’s website i.e. functional heads, among others, and also includes visit to http://www.airtel.in/wps/wcm/connect/2ffaf2d2- networks centre to understand the operations and technology. d542-44e2-a42a-50225c9245f5/Terms-and- Apart from the induction programme, the Company Conditions-of-Appointment-of-Independent-Director. periodically presents updates at the Board / Committee pdf?MOD=AJPERES. meetings to familiarise the Directors with the Company’s VWUDWHJ\EXVLQHVVSHUIRUPDQFHRSHUDWLRQVSURGXFWRNjHULQJV At the time of appointment and thereafter at the njQDQFHULVNPDQDJHPHQWIUDPHZRUNKXPDQUHVRXUFHVDQG EHJLQQLQJ RI HDFK njQDQFLDO \HDU WKH ,QGHSHQGHQW other related matters. The Board members are also given an 'LUHFWRUV VXEPLW D VHOIGHFODUDWLRQ FRQnjUPLQJ WKHLU opportunity to visit Airtel outlets and meet customers / other independence and compliance with various eligibility VWDNHKROGHUV SHULRGLFDOO\ IRU JDLQLQJ njUVWKDQG H[SHULHQFH criteria laid down by the Company, among other about the products and services of the Company. disclosures and the Company also ensures that its Directors meet the above eligibility criteria. All such The Board also has an active communication channel with declarations are placed before the Board for information. WKHH[HFXWLYHPDQDJHPHQWZKLFKHQDEOH'LUHFWRUVWRUDLVH TXHULHVVHHNFODULnjFDWLRQVIRUHQDEOLQJDJRRGXQGHUVWDQGLQJ Lead Independent Director of the Company and its various operations. Quarterly updates, The Company has for a long time followed the practice of press releases and mid-quarter updates are regularly appointing a Lead Independent Director. Mr. Craig Ehrlich is FLUFXODWHGWRWKH'LUHFWRUVWRNHHSWKHPDEUHDVWRQVLJQLnjFDQW currently designated as the Lead Independent Director and developments in the Company. his role and responsibilities, inter alia, are to: Detailed familiarisation programme for Directors is available Preside over all deliberation sessions of the Independent on the Company’s website at http://www.airtel.in/wps/ Directors. wcm/connect/ea0152dc-a649-40ae-89d9-b3cec142d249/ Provide objective feedback of the Independent Directors Familiarisation+Programme+for+Board+Members. as a group to the Board on various matters, including pdf?MOD=AJPERES&ContentCache=NONE. agenda and other matters relating to the Company. Board Evaluation Undertake such other assignments, as may be In compliance with the provisions of the Companies Act, requested by the Board from time to time. 2013 and the Listing Regulations, the HR and Nomination Committee has approved the process, format, attributes and Meeting of Independent Directors criteria for the performance evaluation of the Board, Board The Independent Directors meet separately at least once Committees and Individual Directors including the Chairman in a quarter, prior to the commencement of Board meeting, and Managing Director & CEO (India and South Asia). The without the presence of any Non-Independent Directors or process provides that the performance evaluation shall be representatives of management. They meet to discuss and carried out on an annual basis. During the year, the Directors form an independent opinion on the agenda items, various had completed the evaluation process, which included other Board-related matters, identify areas where they need for clarity or information from management and to annually evaluation of the Board as a whole, the Board Committees review the performance of Non-Independent Directors, the and individual Directors including the Chairman and the MD Board as a whole and the Chairman. The Lead Independent & CEO (India and South Asia). The evaluation process was Director updates the Board about the proceedings of the IDFLOLWDWHGE\DQLQGHSHQGHQWFRQVXOWLQJnjUP meeting. Performance of the Board and Board Committees were In these meetings, the Independent Directors also meet the evaluated on various parameters such as structure, Statutory Auditors, as well as Internal Auditors at least once FRPSRVLWLRQ TXDOLW\ GLYHUVLW\ H[SHULHQFH FRPSHWHQFLHV D \HDU E\ URWDWLRQ WR GLVFXVV LQWHUQDO DXGLW HNjHFWLYHQHVV SHUIRUPDQFH RI VSHFLnjF GXWLHV DQG REOLJDWLRQV TXDOLW\ RI control environment and their general feedback. The Lead GHFLVLRQPDNLQJDQGRYHUDOO%RDUGHNjHFWLYHQHVV Independent Director updates the Audit & Risk Management Performance of individual Directors was evaluated on Committee / the Board about the outcome of the meetings parameters, such as meeting attendance, participation and action, if any, required to be taken by the Company. and contribution, responsibility towards stakeholders and During FY 2015-16, the Independent Directors met four independent judgement. times i.e. April 28, 2015, August 04, 2015, October 25, 2015 The Chairman and the MD & CEO were evaluated on certain and January 28, 2016. additional parameters, such as performance of the Company, Familiarisation programme for Board members leadership, relationships, communication, recognition and The Company has adopted a well structured two-day awards received by the Company. induction programme for orientation and training of Directors Some of the performance indicators based on which the at the time of their joining so as to provide them with an Independent Directors were evaluated include:

106 Annual Report 2015-16 40-125 Bharti Airtel Limited 02-39 | Corporate OverviewStatutory Reports 126-355 | Financial Statements

 'HYRWLRQ RI VXǎFLHQW WLPH DQG DWWHQWLRQ WRZDUGV functional heads of various business segments / functions professional obligations for independent decision are also invited at regular intervals to present updates on making and for acting in the best interest of the their core areas. Company. Information available to the Board Providing strategic guidance to the Company and help The Board has complete access to all the relevant determine important policies with a view to ensure information within the Company and to all the employees long-term viability and strength. of the Company. The information shared on a regular basis  %ULQJLQJH[WHUQDOH[SHUWLVHDQGLQGHSHQGHQWMXGJHPHQW ZLWKWKH%RDUGVSHFLnjFDOO\LQFOXGHV that contributes objectivity in the Board’s deliberation, Annual operating plans, capital budgets and updates particularly on issues of strategy, performance and therein. FRQǍLFWPDQDJHPHQW Quarterly and annual consolidated and standalone All Directors participated in the evaluation survey and UHVXOWVDQGnjQDQFLDOVWDWHPHQWVRIWKH&RPSDQ\DQG UHYLHZ ZDV FDUULHG RXW WKURXJK SHHUHYDOXDWLRQ H[FOXGLQJ its operating divisions or business segments. the Director being evaluated. The result of evaluation was discussed in the Independent Director’s meeting, respective Minutes of meetings of the Board and Board Committee meetings and in the Board Meeting held on Committees, resolutions passed by circulations, and April 27, 2016. The Board members noted the suggestions/ Board minutes of the unlisted subsidiary companies. inputs of Independent Directors, HR and Nomination Information on recruitment / remuneration of senior Committee and respective committee Chairman and also RǎFHUVMXVWEHORZ%RDUGOHYHO discussed various initiatives to further strengthen Board HNjHFWLYHQHVV Material important show cause, demand, prosecution notices and penalty notices, if any. Board Meeting Schedules and Agenda The calendar for the Board and Committee meetings, in Fatal or serious accidents, dangerous occurrences, ZKLFK WKH njQDQFLDO UHVXOWV ZRXOG EH FRQVLGHUHG LQ WKH PDWHULDOHǏXHQWRUSROOXWLRQSUREOHPVLIDQ\ HQVXLQJ\HDUDVZHOODVPDMRULWHPVRIWKHDJHQGDDUHnj[HG  $Q\PDWHULDOGHIDXOWLQnjQDQFLDOREOLJDWLRQVWRDQGE\ in advance for the whole year. The Board Calendar for the the Company or substantial non-payment for services njQDQFLDO\HDUKDVEHHQGLVFORVHGODWHULQWKHUHSRUW provided by the Company. and has also been uploaded on the Company’s website. The Board meetings are held within 45 days from the Any issue which involves possible public or product end of the quarter in the manner that it coincides with the liability claims of substantial nature, if any. announcement of quarterly results. Time gap between two Details of any acquisition, joint venture or collaboration FRQVHFXWLYHPHHWLQJVGRHVQRWH[FHHGGD\V,QFDVHRI agreement. an urgent necessity, additional Board meetings are called. Transactions involving substantial payment towards The Audit & Risk Management Committee and the HR and goodwill, brand equity or intellectual property. Nomination Committee meetings are generally held on the same dates as Board meetings. To ensure an immediate Human resource updates and strategies. update to the Board, the Chairman of the respective committee briefs the Board about the proceedings of the Sale of material nature, investments, subsidiaries, respective committee meetings. assets, which is not in the normal course of business. The Company Secretary, in consultation with the Chairman, Quarterly treasury reports. prepares the Board and the Committee meeting’s agenda.  4XDUWHUO\FRPSOLDQFHFHUWLnjFDWHVZLWKWKHŠ([FHSWLRQV 7KH GHWDLOHG DJHQGD DORQJ ZLWK H[SODQDWRU\ QRWHV DQG Reports’, which includes non-compliance of any DQQH[XUHV DV DSSOLFDEOH DUH VHQW WR WKH %RDUG DQG regulatory, statutory nature or listing requirements and Committee members well in advance, at least a week before shareholders’ service. WKH PHHWLQJV ,Q VSHFLDO DQG H[FHSWLRQDO FLUFXPVWDQFHV additional or supplementary item(s) are permitted to be Disclosures received from Directors. taken up as ‘any other item’. Sensitive subject matters are Proposals requiring strategic guidance and approval of discussed at the meeting, without written material being the Board. circulated in advance. Related party transactions. As a process prior to each Board meeting, proposals are invited from Independent Directors for discussion / Regular business updates. deliberation at the meeting(s) and these are included in the Update on Corporate Social Responsibility activities. meeting’s agenda.  6LJQLnjFDQW WUDQVDFWLRQV DQG DUUDQJHPHQWV E\ Group CFO and other Senior Management members are subsidiary companies. invited to the Board meetings to present reports on the items being discussed at the meeting. In addition, the Report on action taken on last Board meeting decisions.

Report on Corporate Governance 107 Transformational Network

Number of Board Meetings During FY 2015-16, the Board met four times i.e. on April 28, 2015, August 04, 2015, October 26-27, 2015 and January 28, 2016. Requisite information, according to the requirements of Regulation 34 of the Listing Regulations is provided below:

Name of Director Director Category Number of other directorships1 No. of board Whether ,GHQWLǂFDWLRQ and committee2 memberships and meetings attended Number chairmanships attended last AGM Directorships Committees (total held during Chairman Member tenure)

Mr. Sunil Bharti Mittal 00042491 Chairman 9 Nil Nil 4 (4) Yes Executive Mr. Gopal Vittal 02291778 2 Nil Nil 4 (4) Yes Director Non-Executive Ms. Chua Sock Koong3 00047851 1 Nil Nil 2 (4) No Director Non-Executive Mr. Rajan Bharti Mittal4 00028016 N.A. N.A. N.A. 3 (3) No Director Non-Executive Mr. Rakesh Bharti Mittal5 00042494 14 Nil 1 1 (1) N.A. Director Sheikh Faisal Thani Non-Executive 06675785 Nil Nil Nil 1 (4) No Al-Thani Director Non-Executive Ms. Tan Yong Choo 02910529 1 Nil Nil 4 (4) No Director Independent Mr. Ben Verwaayen 06735687 Nil Nil Nil 4 (4) No Director Independent Mr. Craig Ehrlich 02612082 Nil Nil Nil 4 (4) No Director Independent Mr. D. K. Mittal 00040000 11 Nil 4 4 (4) Yes Director Independent Ms. Obiageli Ezekwesili6 06385532 N.A. N.A. N.A. 0 (2) No Director Independent Mr. Manish Kejriwal 00040055 3 Nil 2 3 (4) No Director Independent Mr. Shishir Priyadarshi9 03459204 1 Nil Nil 4 (4) No Director Independent Mr. V. K. Viswanathan 01782934 7 3 2 4 (4) Yes Director

1. The directorships, held by Directors, as mentioned above, do not include the directorships held in foreign body corporates and Bharti Airtel Limited. 2. Committees considered for the purpose are those prescribed under Regulation 26 of the Listing Regulations viz. the Audit and Risk Management Committee and the Stakeholders’ Relationship Committee of Indian Public Limited companies other than Bharti Airtel Limited. Committee memberships details provided do not include chairmanship of committees as it has been provided separately. 3. Two meetings were attended by Mr. Mark Chong Chin Kok, alternate Director. 4. Mr. Rajan Bharti Mittal ceased to be a Director w.e.f. January 07, 2016. 5. Mr. Rakesh Bharti Mittal was appointed as an additional Director w.e.f. January 07, 2016. 6. The term of Ms. Obiageli Ezekwesili ended on September 25, 2015.  ([FHSW0U6XQLO%KDUWL0LWWDODQG0U5DNHVK%KDUWL0LWWDOZKRDUHEURWKHUVQRQHRIWKH'LUHFWRUVDUHUHODWLYHVRIDQ\RWKHU'LUHFWRU 8. As on March 31, 2016, apart from Mr. Gopal Vittal, Managing Director & CEO (India & South Asia) who holds 2,29,885 equity shares, no other Director of the Company holds shares in the Company. 9. Board meeting for the quarter ended September 30, 2015 was held for two days i.e. October 26, 2015 and October 27, 2015. Mr. Shishir Priyadarshi was granted leave of absence for October 27, 2015.

Nomination, Remuneration & Board Diversity rewarding performance based on a periodice review of the In terms of the Listing Regulations and Companies Act, achievements periodically. 2013, the Board has approved a Policy on Nomination, The detailed Nomination, Remuneration and Board Diversity Remuneration and Board Diversity for Directors, KMPs and 3ROLF\LVDQQH[HGDV$QQH[XUH% to the Directors’ Report. The other Senior Management Personnel. &RPSDQ\DǎUPVWKDWWKHUHPXQHUDWLRQSDLGWRWKH'LUHFWRUV is as per terms laid out in the Nomination, Remuneration and The Company’s remuneration policy is directed towards Board Diversity Policy.

108 Annual Report 2015-16 40-125 Bharti Airtel Limited 02-39 | Corporate OverviewStatutory Reports 126-355 | Financial Statements

Directors’ Remuneration The details of the remuneration of Directors during FY 2015-16 are given below:

(Amount in `) Name of Director Sitting Salary and Performance Perquisites Commission Total Fees allowances linked incentive Executive Directors Mr. Sunil Bharti Mittal -- 191,764,391 75,000,000 11,781,844 -- 278,546,235 Mr. Gopal Vittal -- 42,559,119 19,500,000 46,323 -- 62,105,442 Non-Executive Directors Mr. Rakesh Bharti Mittal ------696,721 696,721 Mr. Ben Verwaayen 500,000 ------16,683,179 17,183,179 Ms. Chua Sock Koong ------3,979,974 3,979,974 Mr. Craig Ehrlich 500,000 ------9,949,935 10,449,935 Mr. D. K. Mittal 1,000,000 ------7,000,000 8,000,000 Mr. Manish Kejriwal 400,000 ------6,500,000 6,900,000 Ms. Obiageli Ezekwesili ------3,548,611 3,548,611 Mr. Rajan Bharti Mittal ------2,303,279 2,303,279 Ms. Tan Yong Choo ------3,979,974 3,979,974 Sheikh Faisal Thani Al-Thani ------3,979,974 3,979,974 Mr. Shishir Priyadarshi 500,000 ------9,949,935 10,449,935 Mr. V. K. Viswanathan 500,000 ------8,000,000 8,500,000 Total 3,400,000 234,323,510 94,500,000 11,828,167 76,571,582 420,623,259

The salary and allowance includes the Company’s contribution to the Provident Fund. Liability for gratuity and leave encashment is provided on actuarial basis for the Company as a whole, the amount pertaining to the Directors is not ascertainable and, therefore, not included.  7KHYDOXHRIWKHSHUTXLVLWHVLVFDOFXODWHGDVSHUWKHSURYLVLRQVRIWKH,QFRPH7D[$FW Value of Performance Linked Incentive (PLI) considered above represents incentive which will accrue at 100% performance level for FY 2015-16 and ZLOO JHW SDLG EDVLV DFWXDO SHUIRUPDQFH SDUDPHWHUV LQ WKH QH[W\HDU$W  SHUIRUPDQFH OHYHO WKH JURVV UHPXQHUDWLRQ RI 0U 6XQLO %KDUWL 0LWWDO ZDV ` 278,546,235 for FY 2015-16 and ` 271,773,463 for FY 2014-15 and that of Mr. Gopal Vittal was ` 62,105,442 for FY 2015-16 and ` 53,432,196 for FY 2014-15. During the year, Mr. Sunil Bharti Mittal and Mr. Gopal Vittal were paid ` 99,000,000 and ` 21,124,110 respectively as PLI for previous year 2014- 15, which is not included above.  'XULQJWKH\HDU0U*RSDO9LWWDOZDVJUDQWHGVWRFNRSWLRQVRQ$XJXVWXQGHUWKH(6236FKHPHDWDQH[HUFLVHSULFHRI` 5 per option, with vesting period spread over 3 years. The above remuneration of Mr. Gopal Vittal does not include perquisite value of ` 41,780,450 towards the value of VWRFNRSWLRQVH[HUFLVHGGXULQJWKH\HDU  7KHRSWLRQVFDQEHFRQYHUWHGLQWRHTXLW\VKDUHVHLWKHULQIXOORULQWUDQFKHVDWDQ\WLPHXSWRVHYHQ\HDUVIURPWKHJUDQWGDWH7KHXQH[HUFLVHGYHVWHGRSWLRQV FDQEHFDUULHGIRUZDUGWKURXJKRXWWKHH[HUFLVHSHULRG7KHRSWLRQVZKLFKDUHQRWH[HUFLVHGZLOOODSVHDIWHUWKHH[SLU\RIWKHH[HUFLVHSHULRG No other Director has been granted any stock option during the year.  7KH&RPSDQ\KDVHQWHUHGLQWRFRQWUDFWVZLWKWKH([HFXWLYH'LUHFWRUVLH0U6XQLO%KDUWL0LWWDOGDWHG2FWREHUDQGZLWK0U*RSDO9LWWDOGDWHG February 01, 2013. These are based on the approval of the shareholders. There are no other contracts with any other Director. No notice period or severance fee is payable to any Director.  7KHUHZHUHQRRWKHUSHFXQLDU\UHODWLRQVKLSVRUWUDQVDFWLRQVRI1RQ([HFXWLYH'LUHFWRUVYLV¢YLVWKH&RPSDQ\

Report on Corporate Governance 109 Transformational Network

Board Committees issues with the Internal and Statutory Auditors and the In compliance with the statutory requirements, the Board management of the Company. KDV FRQVWLWXWHGYDULRXV FRPPLWWHHV ZLWK VSHFLnjF WHUPV RI  5HYLHZ ZLWK WKH 0DQDJHPHQW WKH TXDUWHUO\ njQDQFLDO UHIHUHQFHDQGVFRSH7KHREMHFWLYHLVWRIRFXVHNjHFWLYHO\RQ statements before submission to the Board for approval. WKH LVVXHV DQG HQVXUH H[SHGLHQW UHVROXWLRQ RI WKH GLYHUVH matters. The committees operate as the Board’s empowered  5HYLHZ ZLWK WKH 0DQDJHPHQW WKH DQQXDO njQDQFLDO agents according to their charter / terms of reference. The statements and Auditor’s Report thereon before Constitution and charter of the Board Committees are submission to the Board for approval, with particular available on the Company’s website, www.airtel.com and are reference to: also stated herein. Matters required to be included in the Directors’ responsibility statement, included in the Board’s Audit & Risk Management Committee Report in terms of Clause (c) of Sub-section 3 of Audit & Risk Management Committee comprises four Section 134 of the Companies Act, 2013. Directors, three of whom are independent. The Chairman of Changes, if any, in accounting policies and the Committee, Mr. V. K. Viswanathan, Independent Director is practices and reasons for the same. D&KDUWHUHG$FFRXQWDQWDQGKDVVRXQGnjQDQFLDONQRZOHGJH DVZHOODVPDQ\\HDUVRIH[SHULHQFHLQJHQHUDOPDQDJHPHQW Major accounting entries involving estimates All members of the Audit & Risk Management Committee, EDVHG RQ WKH H[HUFLVH RI MXGJHPHQW E\ LQFOXGLQJ WKH &KDLUPDQ KDYH DFFRXQWLQJ DQG njQDQFLDO management. PDQDJHPHQWH[SHUWLVH7KHFRPSRVLWLRQRIWKH$XGLW 5LVN  6LJQLnjFDQW DGMXVWPHQWV PDGH LQ WKH njQDQFLDO Management Committee meets the requirements of Section VWDWHPHQWVDULVLQJRXWRIDXGLWnjQGLQJV 177 of the Companies Act, 2013 and the Listing Regulations. Compliance with listing and other legal The Company Secretary is the Secretary to the Committee. UHTXLUHPHQWVUHODWLQJWRnjQDQFLDOVWDWHPHQW The Managing Director & CEO (India & South Asia), the Managing Director & CEO (Africa), the Global CFO, the Disclosure of all related party transactions. Group Director – Internal Assurance, the Statutory Auditors  0RGLnjHGRSLQLRQ V LQWKHGUDIW$XGLW5HSRUW and the Internal Auditors are permanent invitees. Review the following information: The Chairman of the Committee was present at the last AGM held on August 21, 2015.  0DQDJHPHQW'LVFXVVLRQDQG$QDO\VLVRInjQDQFLDO condition and results of operations. Key Responsibilities of the Audit & Risk Management Committee Management letter / letters of internal control  2YHUVHH WKH &RPSDQ\šV njQDQFLDO UHSRUWLQJ SURFHVV weaknesses issued by the Statutory Auditors. DQGWKHGLVFORVXUHRILWVnjQDQFLDOLQIRUPDWLRQWRHQVXUH Internal Audit Reports relating to internal control WKDWWKHnjQDQFLDOVWDWHPHQWVDUHFRUUHFWVXǎFLHQWDQG weaknesses. credible.  7KH njQDQFLDO VWDWHPHQWV LQ SDUWLFXODU WKH Consider and recommend to the Board, the appointment investments, if any, made by unlisted subsidiary LQFOXGLQJ njOOLQJ RI D FDVXDO YDFDQF\  UHVLJQDWLRQ RU companies. dismissal, remuneration and terms of appointment LQFOXGLQJTXDOLnjFDWLRQDQGH[SHULHQFH RIWKH6WDWXWRU\  4XDUWHUO\ FRPSOLDQFH FHUWLnjFDWHV FRQnjUPLQJ Auditor, Internal Auditors / Chief Internal Auditor, Cost compliance with laws and regulations, including Auditor and Secretarial Auditor. DQ\H[FHSWLRQVWRWKHVHFRPSOLDQFHV Prior approval of non-audit services that can be Oversee the functioning of the Vigil Mechanism / provided by the Statutory Auditors and approval of Whistle Blower Mechanism. payment of such non-audit services. Establish the systems for storage, retrieval and display Prior approval of all transactions with related party(ies), RI ERRNV RI DFFRXQWV DQG RWKHU njQDQFLDO UHFRUGV LQ VXEVHTXHQWPRGLnjFDWLRQVRIWUDQVDFWLRQVZLWKUHODWHG electronic format. SDUWLHV DQG UHYLHZ RI WKH VWDWHPHQW RI VLJQLnjFDQW  5HYLHZWKHnjQGLQJVRIDQ\LQWHUQDOLQYHVWLJDWLRQE\WKH UHODWHG SDUW\ WUDQVDFWLRQV ZLWK VSHFLnjF GHWDLOV RI WKH Internal Auditors into matters where there is suspected transactions. fraud or irregularity, or a failure of internal control systems of a material nature and reporting the matter Discussion with the Statutory Auditor before the to the Board. commencement of audit about the nature and scope of the audit to be conducted and post-audit discussion to Review the reasons for substantial defaults, if any, in ascertain any areas of concern. the payment to the depositors, debenture holders, shareholders (in case of non-payment of declared To call for comments of the Auditors about internal dividends) and creditors, if any. control system, including the observation of the $XGLWRUV UHYLHZ njQDQFLDO VWDWHPHQW EHIRUH WKHLU Approve the appointment, re-appointment and removal submission to the Board and discussion on any related RI &RPSDQ\šV &KLHI )LQDQFLDO 2ǎFHU DIWHU DVVHVVLQJ

110 Annual Report 2015-16 40-125 Bharti Airtel Limited 02-39 | Corporate OverviewStatutory Reports 126-355 | Financial Statements

WKHTXDOLnjFDWLRQVH[SHULHQFHDQGEDFNJURXQGDPRQJ Formulate and review risk management policy. others, of the candidate. Implement, monitor and review the risk management  5HYLHZWKH&RPSDQ\šVnjQDQFLDODQGULVNPDQDJHPHQW framework, risk management plan and related matters. policies, implementation of treasury policies, strategies and status of investor relation activities. Delegate above said functions to Sub-Committees, whenever required.  (QVXUH WKDW WKH LQWHUQDO DXGLW IXQFWLRQ LV HNjHFWLYH adequately resourced, and to review coordination The Audit & Risk Management Committee shall also between Internal and Statutory Auditors and (where undertake such other functions, as may be assigned relevant) the risk management department. by the Board of Directors from time to time, or as may be stipulated under any law, rule or regulation including Review the state and adequacy of internal controls with key members of the Management, Statutory Auditors the Listing Agreement and the Companies Act, 2013. and Internal Auditors. Powers of the Audit & Risk Management Committee Discuss with the Internal Auditor the coverage, Investigate any activity within its terms of reference. functioning, frequency and methodology of internal Seek any information that it requires from any employee audits as per the annual audit plan and discuss of the Company, and all employees are directed to VLJQLnjFDQWnjQGLQJVDQGIROORZXSWKHUHRQ cooperate with any request made by the Committee. Review & monitor the Statutory and Internal Auditor’s LQGHSHQGHQFH SHUIRUPDQFH  HNjHFWLYHQHVV RI DXGLW Obtain outside legal or independent professional process. advice. Review and scrutinize the inter-corporate loans and  6HFXUHDWWHQGDQFHRIRXWVLGHUVZLWKUHOHYDQWH[SHUWLVH investments.  $FFHVVVXǎFLHQWUHVRXUFHVWRFDUU\RXWLWVGXWLHV Monitor and review with the Management, the Meetings, Attendance and Composition of the Audit & statement of uses / application of funds raised through an issue (public issue, right issue and preferential Risk Management Committee issue, among others), the statement of funds utilised During FY 2015-16, the Committee met four times i.e. on IRU SXUSRVHV RWKHU WKDQ WKRVH VWDWHG LQ WKH RNjHU April 28, 2015; August 04, 2015; October 25, 2015 and document / prospectus / notice and the report January 28, 2016. submitted by the monitoring agency monitoring the Beside the Committee meetings as above, the Committee utilisation of proceeds of a public or right issue, and also holds a conference call before every regular Committee making appropriate recommendations to the Board to take up steps in this matter. meeting to discuss routine internal audit issues. This provides an opportunity to the Committee to devote more Valuation of undertakings or assets of the Company, WLPHRQRWKHUVLJQLnjFDQWPDWWHUVLQWKHUHJXODU&RPPLWWHH wherever necessary. meeting. During FY 2015-16, the Committee had met four Appointment of a registered valuer of the Company and times through the conference call i.e. April 24, 2015, July 28, nj[DWLRQRIWKHLUWHUPVDQGFRQGLWLRQV 2015, October 21, 2015 and January 21, 2016.  (YDOXDWLRQ RI LQWHUQDO njQDQFLDO FRQWUROV DQG ULVN All recommendations made by the Audit & Risk Management management systems. Committee were accepted by the Board.

The composition and the attendance of members at the meetings held during FY 2015-16, are given below:

Name Category Number of meetings Number of conference calls attended (total held attended (total conducted during tenure) during tenure ) Mr. V. K. Viswanathan (Chairman) Independent Director 4 (4) 4 (4) Mr. Craig Ehrlich Independent Director 4 (4) 1 (4) Mr. Shishir Priyadarshi Independent Director 4 (4) 4 (4) Ms. Tan Yong Choo Non-Executive Director 4 (4) 4 (4) Ms. Obiageli Ezekwesili1 Independent Director 0 (2) 1 (2) 1. Term ended on September 25, 2015.

Report on Corporate Governance 111 Transformational Network

Audit and Risk Management Committee Report 7KH &RPPLWWHH DOVR FRQVLGHUV WKDW WKH njQDQFLDO for the year ended March 31, 2016 VWDWHPHQWV DUH WUXH DQG IDLU SURYLGH VXǎFLHQW To the Shareholders of Bharti Airtel Limited information. The Committee believes the Company has followed adequate processes to The Audit & Risk Management Committee (“Audit SUHSDUHWKHVHnjQDQFLDOVWDWHPHQWV Committee” or “Committee”) is pleased to present its report for the year ended March 31, 2016: III. The Committee has reviewed both abridged 1. The Committee presently comprises of four members and unabridged versions of the standalone and of whom three-fourths, including the Chairman are FRQVROLGDWHG njQDQFLDO VWDWHPHQWV IRU WKH \HDU Independent Directors, as against the requirement ended March 31, 2016. It has recommended the of two-thirds prescribed under Regulation 18 of same for the Board’s approval. WKH 6HFXULWLHV DQG ([FKDQJH %RDUG RI ,QGLD /LVWLQJ IV. The Committee has reviewed the internal controls Obligations and Disclosure Requirements) Regulations, for ensuring that the Company’s accounts are 2015 and Section 177 of the Companies Act, 2013. properly maintained and that the accounting transactions are in accordance with prevailing 2. The responsibility for the Company’s internal laws and regulations. In conducting such reviews, FRQWUROV DQG njQDQFLDO UHSRUWLQJ SURFHVVHV OLHV ZLWK WKH &RPPLWWHH IRXQG QR PDWHULDO GHnjFLHQF\ the Management. The Statutory Auditors have the or weakness in the Company’s internal control responsibility of performing an independent audit of systems. WKH&RPSDQ\šVnjQDQFLDOVWDWHPHQWVLQDFFRUGDQFHZLWK the India’s Generally Accepted Accounting Principles V. The Committee reviewed the Company’s internal (IGAAP) and International Financial Reporting njQDQFLDOFRQWUROVDQGULVNPDQDJHPHQWV\VWHPV Standards (IFRS) and issuing a report thereon. The from time to time. Ombudsperson is responsible for the Company’s VI. The Committee reviewed the Ombudsperson’s Whistle Blower Mechanism. report on the functioning of the Whistle Blower 3. The Company has in place an Internal Assurance Group Mechanism for reporting concerns about unethical (IAG) headed by Group Director – Internal Assurance. behaviour, actual or suspected fraud, or violation of The Company has also appointed M/s. KPMG, New the Company’s Code of Conduct or ethics policy. Delhi and M/s. ANB & Co., Chartered Accountants, The Committee believes that the Company has an Mumbai as Internal Auditors in accordance with Section HNjHFWLYH:KLVWOH%ORZHU0HFKDQLVPDQGQRERG\ 138 of the Companies Act, 2013. The audit conducted has been denied access to this mechanism. by the Internal Auditors is based on an internal audit VII. The Committee reviewed with the Management, plan, which is reviewed each year in consultation the independence and performance of Statutory with the IAG and the Audit Committee. These audits Auditors. It has recommended to the Board, are based on risk based methodology and interalia UDWLnjFDWLRQRIUHDSSRLQWPHQWRI0V65%DWOLERL involve the review of internal controls and governance & Associates LLP, Chartered Accountants, processes, adherence to management policies and Gurgaon, as the Company’s Statutory Auditors for review of statutory compliances. The Internal Auditors QH[WWHUPDWWKHHQVXLQJ$*0 VKDUHWKHLUnjQGLQJVRQDQRQJRLQJEDVLVGXULQJWKH\HDU for corrective action. VIII. The Committee, along with the Management, reviewed the performance of the Internal 4. The Audit Committee oversees the work of Statutory Auditors and recommended to the Board the Auditors, Internal Auditors, IAG and the Ombudsperson. re-appointment of M/s. KPMG, New Delhi and It is also responsible for overseeing the processes M/s. ANB & Co., Chartered Accountants, Mumbai, UHODWHG WR WKH njQDQFLDO UHSRUWLQJ DQG LQIRUPDWLRQ as the Company’s Internal Auditors for the dissemination. succeeding tenure. 5. In this regard, the Audit Committee Reports as IX. The Committee has been vested with the adequate follows: powers to seek support and other resources from I. The Committee has discussed with the Company’s the Company. The Committee has access to Internal Auditors and Statutory Auditors the the information and records as well. It also has overall scope and plan for their respective audits. the authority to obtain professional advice from The Committee has also discussed the results H[WHUQDOVRXUFHVLIUHTXLUHG DQG HNjHFWLYHQHVV RI WKH DXGLW HYDOXDWLRQ RI WKH X. The Audit & Risk Management Committee Company’s internal controls and the overall quality monitored and approved all related party RInjQDQFLDOUHSRUWLQJ WUDQVDFWLRQV LQFOXGLQJ DQ\ PRGLnjFDWLRQ  amendment in any such transactions. II. The Management has presented the Company’s njQDQFLDO VWDWHPHQWV WR WKH &RPPLWWHH DQG  ,Q FRQFOXVLRQ WKH $XGLW &RPPLWWHH LV VXǎFLHQWO\ DǎUPHGWKDWWKH&RPSDQ\šVnjQDQFLDOVWDWHPHQWV VDWLVnjHGWKDWLWKDVFRPSOLHGZLWKWKHUHVSRQVLELOLWLHVDV have been drawn in accordance with the Indian outlined in the Audit & Risk Management Committee’s GAAP and IFRS. Based on its review and the Charter. discussions conducted with the Management and the Statutory Auditors, the Audit Committee V. K. Viswanathan EHOLHYHVWKDWWKH&RPSDQ\šVnjQDQFLDOVWDWHPHQWV are fairly presented in conformity with applicable Place: Gurgaon Chairman, Audit & Risk accounting standards in all material aspects. Date: April 27, 2016 Management Committee

112 Annual Report 2015-16 40-125 Bharti Airtel Limited 02-39 | Corporate OverviewStatutory Reports 126-355 | Financial Statements

HR and Nomination Committee  ([HUFLVHSHULRGZLWKLQZKLFKWKHHPSOR\HHVKRXOG 7KH &RPPLWWHH FRPSULVHV njYH 1RQ([HFXWLYH 'LUHFWRUV H[HUFLVHWKHRSWLRQDQGWKDWRSWLRQZRXOGODSVH of whom three members, including, the Chairman of the RQIDLOXUHWRH[HUFLVHWKHRSWLRQZLWKLQWKHH[HUFLVH Committee are Independent Directors. The composition period. of the Committee meets the requirements of Section 178  6SHFLnjHGWLPHSHULRGZLWKLQZKLFKWKHHPSOR\HH of the Companies Act, 2013 and Regulation 19 of the PXVWH[HUFLVHWKHYHVWHGRSWLRQVLQWKHHYHQWRI Listing Regulations. The Company Secretary acts as the termination or resignation of an employee. 6HFUHWDU\RIWKH&RPPLWWHH7KH*OREDO&KLHI+52ǎFHULV a permanent invitee to the Committee meetings. Other  5LJKWRI DQ HPSOR\HH WR H[HUFLVH DOO WKH RSWLRQV Senior Management members are also invited to the vested in him at one time or at various points of meeting to present reports relating to items being discussed WLPHZLWKLQWKHH[HUFLVHSHULRG at the meeting. Procedure for making a fair and reasonable Key Responsibilities of the HR and Nomination adjustment to the number of options and to the Committee H[HUFLVH SULFH LQ FDVH RI ULJKWV LVVXHV ERQXV HR Related issues and other corporate actions. Formulation and recommendation to the Board, a policy  *UDQW YHVW DQG H[HUFLVH RI RSWLRQ LQ FDVH RI relating to remuneration of Directors, Key Managerial employees, who are on long leave, and the Personnel* and other employees. SURFHGXUHIRUFDVKOHVVH[HUFLVHRIRSWLRQV Determine the compensation (including salaries and Any other matter which may be relevant for VDODU\ DGMXVWPHQWV LQFHQWLYHV  EHQHnjWV ERQXVHV  and performance targets of the Chairman and of the administration of ESOP schemes from time to Managing Directors & CEO’s. time.  ,QWKHHYHQWRIQRSURnjWRULQDGHTXDWHSURnjWWRDSSURYH To frame suitable policies and processes to ensure the remuneration payable to managerial persons, that there is no violation of SEBI (Prohibition of Insider WDNLQJ LQWR DFFRXQW WKH &RPSDQ\šV njQDQFLDO SRVLWLRQ Trading) Regulations, 1992 and SEBI (Prohibition of LQGXVWU\ WUHQG DSSRLQWHHšV TXDOLnjFDWLRQ H[SHULHQFH Fraudulent and Unfair Trade Practices relating to the past performance, past remuneration while bringing Securities Market) Regulations, 1995. objectivity in determining the remuneration package, Other key issues as may be referred by the Board. while striking a balance between the Company’s interest and shareholders. Nomination Related Formulate the criteria / policy for appointment of Attraction and retention strategies for employees. Directors, Senior Management**, which shall, inter-alia, Review employee development strategies. LQFOXGHTXDOLnjFDWLRQVSRVLWLYHDWWULEXWHVGLYHUVLW\DQG independence of a Director. Assess the learning and development needs of the Directors and recommend learning opportunities, Review and recommend the structure, size and which can be used by Directors to meet their needs for FRPSRVLWLRQ LQFOXGLQJWKHVNLOOVNQRZOHGJHH[SHULHQFH development. and diversity) of the Board and Board Committees. Review all human resource related issues, including  (YDOXDWH WKH EDODQFH RI VNLOOV NQRZOHGJH H[SHULHQFH succession plan of key personnel. and diversity on the Board for description of the role The Committee shall also consider any other key issues and capabilities, required for a particular appointment. / matters as may be referred by the Board, or as may Identify and recommend to the Board, persons who be necessary in view of Regulation 19 of the Listing DUH TXDOLnjHG WR EHFRPH 'LUHFWRUV DQG ZKR PD\ EH Regulations or any other statutory provisions. appointed in Senior Management, including Key ESOP Related Managerial Personnel, in accordance with the criteria Formulation of ESOP plans and decide on future grants. laid down and their removal thereof. Formulation of terms and conditions on following under Recommend the appointment of any Director to the present ESOP Schemes of the Company with H[HFXWLYHRURWKHUHPSOR\PHQWSODFHRISURnjWLQWKH respect to: Company. Quantum of options to be granted under ESOP Identify and nominate for the approval of the Board, Scheme(s) per employee and in the aggregate FDQGLGDWHV WR njOO %RDUGYDFDQFLHV DV DQG ZKHQ WKH\ under a plan. arise. Performance conditions attached to any ESOP  5HYLHZ VXFFHVVLRQ SODQQLQJ IRU ([HFXWLYH DQG 1RQ Plan. ([HFXWLYH 'LUHFWRUV DQG RWKHU 6HQLRU ([HFXWLYHV particularly the Chairman, Managing Directors & CEOs. Conditions under which options vested in employees may lapse in case of termination of Recommend suitable candidate for the role of Lead employment for misconduct. Independent Director.

Report on Corporate Governance 113 Transformational Network

Formulation of criteria for evaluation of Independent Committee. The Company Secretary acts as a Secretary to Directors and the Board. the Committee. Conduct an annual evaluation of the overall Key Responsibilities of the Stakeholders’ Relationship HNjHFWLYHQHVV RI WKH %RDUG WKH &RPPLWWHHV RI WKH Committee Board and the performance of each Director. The key responsibilities of the Stakeholders’ Relationship Review the Terms of Reference of all committees of Committee include the following: the Board, including itself on an annual basis, and Formulation of procedures, in line with the statutory recommend any changes to the Board. guidelines to ensure speedy disposal of various  š.H\ 0DQDJHULDO 3HUVRQQHOš PHDQV L  WKH &KLHI ([HFXWLYH 2ǎFHU RU WKH requests received from shareholders from time to time. Managing Director or the Manager; ii) the Company Secretary; iii) the Whole- WLPH'LUHFWRULY WKH&KLHI)LQDQFLDO2ǎFHU Consider and resolve the complaints / grievances of ** ‘Senior Management’ means personnel of the Company who are members security holders of the Company, including complaints RI LWV FRUH PDQDJHPHQW WHDP H[FOXGLQJ %RDUG RI 'LUHFWRUV FRPSULVLQJ related to transfer of shares, non-receipt of balance DOO PHPEHUV RI WKH 0DQDJHPHQW RQH OHYHO EHORZ WKH ([HFXWLYH 'LUHFWRUV including the functional heads. sheet and non-receipt of declared dividend.  'HPDWHULDOLVHRUUHPDWHULDOLVHWKHVKDUHFHUWLnjFDWHV Meetings, Attendance and Composition of HR and Nomination Committee Approve the transmission of shares or other securities During FY 2015-16, the Committee met four times i.e. April arising as a result of death of the sole / any of joint 28, 2015, August 04, 2015, October 25, 2015 and January shareholder. 28, 2016. Sub-divide, consolidate and / or replace any share or The composition and the attendance of members at the RWKHUVHFXULWLHVFHUWLnjFDWH V RIWKH&RPSDQ\ meetings held during FY 2015-16, are given below:  ,VVXHGXSOLFDWHVKDUHRWKHUVHFXULW\ LHV FHUWLnjFDWH V  Name Category Number of LQOLHXRIWKHRULJLQDOVKDUHVHFXULW\ LHV FHUWLnjFDWH V  meetings of the Company. attended Approve, register and refuse to register transfer / (total held transmission of shares and other securities. during tenure) To further delegate all or any of the power to any other Mr. Ben Verwaayen, Independent 4 (4) HPSOR\HH V RǎFHU V UHSUHVHQWDWLYH V FRQVXOWDQW V  Chairman Director professional(s), or agent(s). Ms. Chua Sock Koong1 Non-Executive 2 (4) Oversee & review, all matters connected with the Director transfer of securities of the Company. Mr. D.K. Mittal Independent 4 (4) Oversee the performance of the Company’s Registrar Director and Share Transfer Agent. Mr. Manish Kejriwal Independent 3 (4) Director Recommend methods to upgrade the standard of Mr. Rajan Bharti Non-Executive 3 (3) services to the investors. 2 Mittal Director To deal with the Company’s unclaimed / undelivered Mr. Rakesh Bharti Non-Executive 1 (1) shares, as prescribed in the relevant Regulation of the Mittal3 Director Listing Regulations. 1. Two meetings attended by Mark Chong Chin Kok, alternate Director. 2. Ceased to be member of the Committee w.e.f. January 07, 2016. To do all such acts, deeds and things as may be 3. Appointed as a member of the Committee w.e.f. January 07, 2016. necessary in this regard. The meetings of the Committee are generally held as The details relating to remuneration of Directors, as required and when deemed necessary, to review and ensure that under Listing Regulations have been given under a separate all investor requests / grievances are redressed within section, viz. ‘Directors’ Remuneration’ in this report. stipulated time period. Stakeholders’ Relationship Committee Meetings, Attendance and Composition of In compliance with the Regulation 20 of the Listing Stakeholders’ Relationship Committee Regulations, requirements and provisions of Section 178 of 'XULQJ )<  WKH &RPPLWWHH PHW VL[ WLPHV LH RQ the Companies Act, 2013, the Company has a Stakeholders’ April 28, 2015, June 22, 2015, August 04, 2015, October Relationship Committee. The Committee comprises four 25, 2015, January 11, 2016 and March 02, 2016. The members including two Independent Directors. Mr. Rakesh composition and the attendance of members at the %KDUWL0LWWDO1RQ([HFXWLYH'LUHFWRULVWKH&KDLUPDQRIWKH meetings held during FY 2015-16, are given below:

114 Annual Report 2015-16 40-125 Bharti Airtel Limited 02-39 | Corporate OverviewStatutory Reports 126-355 | Financial Statements

Name Category Number of Meetings, Attendance and Composition of Committee meetings of Directors attended 'XULQJ)<WKH&RPPLWWHHPHWnjYHWLPHVLHRQ$SULO (total held 28, 2015, August 04, 2015, October 27, 2015, December during 11, 2015 and January 28, 2016. The composition and tenure) the attendance of members at the meetings held during Mr. Rakesh Bharti Non-Executive 1 (2) FY 2015 -16, are given below: Mittal, Chairman1 Director Name Category Number of Mr. D. K. Mittal Independent 6 (6) meetings Director attended Mr. Gopal Vittal Executive 6 (6) (total held Director during tenure) Mr. Manish Kejriwal Independent 2 (6) Director Mr. Rakesh Bharti Non-Executive 1 (1) Mittal, Chairman1 Director Mr. Rajan Bharti Mittal, Non-Executive 3 (4) Mr. D. K. Mittal Independent 5 (5) Chairman2 Director Director 1. Appointed as member and Chairman of the Committee w.e.f. January 07, 2016. Mr. Gopal Vittal Executive 5 (5) 2. Ceased to be member and Chairman of the Committee w.e.f. January 07, 2016. Director &RPSOLDQFH2DŽFHU Mr. Manish Kejriwal Independent 3 (5) Mr. Rajendra Chopra, Sr. Vice President & Company Secretary Director DFWVDVWKH&RPSOLDQFH2ǎFHURIWKH&RPSDQ\IRUFRPSO\LQJ Mr. Rajan Bharti Mittal, Non-Executive 4 (4) with the requirements of the Listing Regulations and Chairman2 Director requirements of securities laws, including SEBI (Prohibition of 1. Appointed as member and Chairman of the Committee w.e.f. January 07, 2016. Insider Trading) Regulations, 2015. 2. Ceased to be member and Chairman of the Committee w.e.f. January 07, 2016.

Nature of Complaints and Redressal Status Key Responsibilities of the Committee of Directors During FY 2015-16, the complaints and queries received by (within the limit approved by the Board) the Company were general in nature, which include issues Investment Related relating to non-receipt of dividend warrants, shares, annual To grant loans to any body corporate / entity. reports and others, which were resolved to the satisfaction of the shareholders. To give guarantee(s) in connection with loan made to any body corporate / entity. Details of the investors’ complaints received during FY 2015- 2016 are as follows:  7R QHJRWLDWH njQDOLVH DPHQG PRGLI\ DSSURYH DQG accept the terms and conditions with respect to Type of Number Redressed Pending as aforesaid loans and / or guarantee(s) from time to time. complaint on March To purchase, sell, acquire, subscribe, transfer or 31, 2016 otherwise deal in the shares / securities of any Non-receipt of Company, body corporate or other entities. 00 0 securities Treasury Related Non-receipt of To borrow such sum of money, as may be required 00 0 Annual Report by the Company from time to time provided that the Non–receipt money already borrowed, together with the money to of dividend EH ERUURZHG E\ WKH &RPSDQ\ GRHV QRW H[FHHG WKH 1 1 Nil / dividend limits provided under Section 180 of the Companies warrants Act, 2013 i.e. upto the paid up capital and free reserve of the Company. Miscellaneous 1 1 Nil To create security / charge(s) on all or any of the assets Total 2 2 Nil of the Company for the purpose of securing credit facility (ies) of the Company. Committee of Directors To deal in government securities, units of mutual funds, To cater to various day-to-day requirements and to facilitate nj[HG LQFRPH DQG PRQH\ PDUNHW LQVWUXPHQWV nj[HG seamless operations, the Company has formed a functional GHSRVLWVDQGFHUWLnjFDWHRIGHSRVLWSURJUDPPHRIEDQNV Committee known as the Committee of Directors. The and other instruments / securities / treasury products Committee meets as and when deem necessary to cater to RIEDQNV njQDQFLDOLQVWLWXWLRQVDVSHUWUHDVXU\SROLF\RI the day to day requirements of the Company. the Company. The Committee comprises four members including two  7R GHDO LQ IRUHLJQ H[FKDQJH DQG njQDQFLDO GHULYDWLYHV Independent Directors. Mr. Rakesh Bharti Mittal, Non- OLQNHGWRIRUHLJQH[FKDQJHDQGLQWHUHVWUDWHVLQFOXGLQJ ([HFXWLYH 'LUHFWRU LV WKH &KDLUPDQ RI WKH &RPPLWWHH 7KH EXW QRW OLPLWHG WR IRUHLJQ H[FKDQJH VSRW IRUZDUGV Company Secretary acts as a Secretary to the Committee. options, currency swaps and interest rate swaps.

Report on Corporate Governance 115 Transformational Network

To open, operate, close, change in authorisation for  HQWHULQWRVLJQH[HFXWHDQGGHOLYHUDOOFRQWUDFWV any Bank Account, Subsidiary General Ledger (SGL) for and on behalf of the Company. Account, Dematerialisation / Depository Account. To do all such acts, deeds and things as may be  7RDSSURYHnjQDOLVHDQGDXWKRULVHWKHH[HFXWLRQRIDQ\ required for the smooth conduct of the operations of deed, document, letter or writing in connection with WKH&RPSDQ\DQGZKLFKGRHVQRWUHTXLUHWKHVSHFLnjF the aforesaid activities, including borrowing / credit approval of the Board of the Company or which has facilities, creation of charge. VSHFLnjFDOO\EHHQGHOHJDWHGE\WKH%RDUGWRDQ\RWKHU &RPPLWWHH RI WKH %RDUG RU DQ\ RǎFHU HPSOR\HH RU Allotment of Shares agent of the Company. Issue and allot shares of the Company in one or more tranches as per the terms of the ESOP Schemes for To perform such other functions as may be authorised the time being in force or upon conversion of Foreign / delegated by the Board or as might have been Currency Convertible Bonds issued by the Company. authorised / delegated to the erstwhile Borrowing Committee, Investment Committee, Committee of To seek listing of shares issued as above on one or more Director or the Allotment Committee. 6WRFN([FKDQJHVLQ,QGLDDQGDOOVXFKVKDUHVEHLQJSDUL SDVVXZLWKWKHH[LVWLQJHTXLW\VKDUHVRIWKH&RPSDQ\LQ To authorise / delegate any or all of its power to any all respects. SHUVRQRǎFHUUHSUHVHQWDWLYH

To do all such acts, deeds and things, as may be Corporate Social Responsibility (CSR) Committee necessary and incidental to allotment and listing of In compliance with the requirements of the Companies Act, shares. 2013, the Company has constituted the Corporate Social General Authorisations Responsibility Committee.  7R RSHQ VKLIW PHUJH FORVH DQ\ EUDQFK RǎFH FLUFOH The Committee comprises three members including RǎFH one Independent Director. Mr. Rakesh Bharti Mittal, Non- To approve for participation into any tender, bid, auction ([HFXWLYH'LUHFWRULVWKH&KDLUPDQRIWKH&RPPLWWHH7KH by the Company. Company Secretary acts as a Secretary to the Committee. To register the Company with any Central / State Key Responsibilities of the CSR Committee Government authorities, Semi-Government authorities, Formulate, monitor and recommend to the Board ORFDO DXWKRULWLHV WD[ DXWKRULWLHV LQFOXGLQJ VDOHV WD[ CSR Policy and the activities to be undertaken by the VHUYLFH WD[ YDOXH DGGHG WD[ DXWKRULWLHV ODERXU ODZ Company. authorities, administrative authorities, business  5HFRPPHQGWKHDPRXQWRIH[SHQGLWXUHWREHLQFXUUHG associations and other bodies. on the activities undertaken. To purchase, sell, take on lease / license, transfer or Review the Company’s performance in the area of CSR. otherwise deal with any property. Evaluate social impact of the Company’s CSR activities. To apply for and surrender any electricity, power or water connection. Review the Company’s disclosure of CSR matters including any annual Social Responsibility Report. To appoint any Merchant Banker, Chartered Accountant, Advocate, Company Secretary, Engineer, Technician, Review the following, with the Management, before Consultants and / or Professionals for undertaking any submission to the Board for approval. assignment for and on behalf of the Company. The Business Responsibility (BR) Report. To constitute, reconstitute, modify, dissolve any trust or CSR Report. association with regard to the administrative matters or employee related matters and to appoint, reappoint, Annual Sustainability Report. remove, replace the trustees or representatives. Formulate and implement the BR policies in consultation  7R DXWKRULVH RQH RU PRUH HPSOR\HH V  RǎFHU V  with the respective stakeholders. representative(s), consultant(s), professional(s), or Establish a monitoring mechanism to ensure that agent(s) jointly or severally to: the funds contributed by the Company are spent by represent the Company before Central Bharti Foundation, or any other charitable organisation Government, State Governments, Judicial, Quasi- to which the Company makes contribution, for the judicial and other statutory / administrative intended purpose only. authorities or any other entity. Approve the appointment or re-appointment of  QHJRWLDWH njQDOLVH H[HFXWH PRGLI\ VLJQ DFFHSW Directors responsible for Business Responsibility. and withdraw all deed, agreements, undertakings,  &RQVLGHURWKHUIXQFWLRQVDVGHnjQHGE\WKH%RDUGRU FHUWLnjFDWHVDSSOLFDWLRQVFRQnjUPDWLRQVDǎGDYLWV as may be stipulated under any law, rule or regulation indemnity bonds, surety bonds, and all other including the Listing Regulations, Corporate Social documents and papers. Responsibility Voluntary Guidelines, 2009 and the  Dǎ[FRPPRQVHDORIWKH&RPSDQ\ Companies Act, 2013.

116 Annual Report 2015-16 40-125 Bharti Airtel Limited 02-39 | Corporate OverviewStatutory Reports 126-355 | Financial Statements

On the recommendation of the CSR Committee, the Board sheet, borrowings and investments, including strategy had approved the Corporate Social Responsibility (CSR implementation. Policy) of the Company. The CSR Policy intends to strive for Appointment, remuneration, promotion, termination, economic development that positively impacts the society at career and succession planning and all employment large with minimal resource footprints. The Policy is available related matters of the AMB and AIMB members (other on the Company’s website at www.airtel.com. than Chairman, MD & JMD). Meetings, Attendance and Composition of CSR Approval of the variation in the Approved Annual Committee Operation Plan up to 5% negative deviation. During FY 2015-16, the Committee met three times i.e. on April 28, 2015, October 26, 2015 and January 25, 2016. Approval of overall rewards strategy for the Company The composition and the attendance of members at the and its funding cost. meetings held during the FY 2015 - 16, are given below: Approval of performance target for the purpose of Name Category Number of performance bonus and long term incentive plans in meetings respect of regions, segments and concerned business attended units. (total held Review and approval of all strategic consulting during assignment. tenure) Mr. Rakesh Bharti Non-Executive Review and recommend for approval of all items / 1 (1) Mittal, Chairman1 Director proposals relating to restructuring, new line of business, LQYHVWPHQWV njQDQFLDO UHVWUXFWXULQJ *HQHUDO 5HVHUYHG Independent Mr. D. K. Mittal 3 (3) Matters (as referred in Article 125 (ii) of Articles of Director Association of the Company) and other matters, which Executive Mr. Gopal Vittal 2 (3) require the Board’s approval. Director Mr. Rajan Bharti Mittal, Non-Executive Acquisition, disposal, transfer of any immovable 2 (2) Chairman2 Director SURSHUW\ RIYDOXH H[FHHGLQJ DQ\ DPRXQW LQ H[FHVV RI the duly approved respective DoA’s. 1. Appointed as member and Chairman of the Committee w.e.f. January 07, 2016. 2. Ceased to be member and Chairman of the Committee w.e.f. January 07, 2016. Review with the Auditors the Internal Audit Reports and Corporate Social Responsibility Report for the year Special Audit Reports. ended March 31, 2016  )RUPDWLRQ PRGLnjFDWLRQ ZLWKGUDZDO LPSOHPHQWDWLRQ The CSR Report for the year ended March 31, 2016 is of systems, policies, control manuals and other DQQH[HGDV$QQH[XUH' to the Board’s Report. SROLF\ IUDPHZRUNV IRU RSHUDWLRQDO HǎFLHQF\ DQG ULVN management. Airtel Corporate Council (ACC) Approval of major legal initiatives including Airtel Corporate Council is a non-statutory committee, commencement of legal action against Government / constituted by the Board for strategic management Quasi Government authorities. and supervision of the Company’s operations within the approved framework.  :ULWH RNj DGYDQFHV UHFHLYDEOHV FODLPV DQG DQ\ RWKHU DPRXQWV LQ H[FHVV RI WKH GXO\ DXWKRULVHG UHVSHFWLYH 7KH &RPPLWWHH FRPSULVHV VL[ PHPEHUV 0U 6XQLO %KDUWL DoA’s. Mittal, is the Chairman of the Committee. The Company Secretary acts as a Secretary to the Committee.  (QWU\RUH[LWLQWRQHZVXEOLQHRIEXVLQHVVSURGXFWOLQH / major activity in any manner whatsoever. Key Responsibilities of the ACC Committee Strategic Management and supervision of Company’s Change of the Company’s brand name, logo, trade business. mark. Formulation of Company’s business plan including Approval for charitable donations within the overall limit REMHFWLYHVDQGVWUDWHJLHVFDSH[DQGLQYHVWPHQWV set by the Board. Formulation of organisation policies, systems and Approval for contribution to any political party / political processes, concerning the Company’s operations. trust within the overall limit set by the Board. Review and monitor implementation of plans / Nomination of Director / representative on the strategies. subsidiaries and joint ventures. Review the business-wise performance against Reviewing all major pending legal cases and related DSSURYHG SODQV RI UHYHQXH FRVWV SURnjWV EDODQFH matters.

Report on Corporate Governance 117 Transformational Network

Powers of ACC in respect of the Subsidiaries and their  (QWU\LQWRH[LWIURPEXVLQHVVPDMRUEXVLQHVVDFWLYLWLHV step down Subsidiaries (Other than listed subsidiaries) in any manner whatsoever, including purchase, sale, Formulation of business plan, including any strategic lease, franchise, among others. LQLWLDWLYH LQYHVWPHQWV FDSH[ ERUURZLQJ LQFOXGLQJ With respect to overseas subsidiaries and their step down UHnjQDQFLQJDQGH[WHQVLRQDPRQJRWKHUV VXEVLGLDULHVWKHSRZHURI$&&LVFRQnjQHGWRSHUIRUPLQJNH\ Nomination of the respective subsidiaries nominee on shareholder functions. Board of other companies.

General Body Meetings The details of last three Annual General Meetings (AGMs) are as follows:

Financial Year Location Date Time Special Resolution passed 2014-2015 Air Force Auditorium, August 21, 2015 1530 Hrs. (IST) No special resolution 2013-2014Subroto Park, September 01, 2014 1530 Hrs. (IST) was passed in the last 2012-2013New Delhi - 110 010 September 05, 2013 1530 Hrs. (IST) three AGMs

Postal Ballot Code of Conduct for its employees. As a process, an annual The Company had passed the following Special Resolutions FRQnjUPDWLRQ LV DOVR VRXJKW IURP DOO WKH HPSOR\HHV $OO through postal ballot / e-voting on Tuesday, April 14, 2015: HPSOR\HHVDUHH[SHFWHGWRFRQnjUPFRPSOLDQFHWRWKH&RGH DQQXDOO\ 5HJXODU WUDLQLQJ SURJUDPPH  VHOI FHUWLnjFDWLRQV Implementation of the ESOP Scheme 2005 through DUHFRQGXFWHGDFURVVORFDWLRQVWRH[SODLQDQGUHLWHUDWHWKH ESOP Trust and related amendment in the ESOP importance of adherence to the code. Scheme 2005; and Authorisation to the ESOP trust for secondary Disclosures and Policies acquisition of shares and provision of money for 'LVFORVXUH RQ 0DWHULDOO\ 6LJQLǂFDQW 5HODWHG 3DUW\ acquisition of such shares. 7UDQVDFWLRQVWKDWPD\KDYHSRWHQWLDOFRQǃLFWZLWKWKH interest of Company at large Details of postal ballot w.r.t. above resolutions were provided $OOWUDQVDFWLRQVHQWHUHGLQWRZLWKUHODWHGSDUWLHVDVGHnjQHG in the Report on Corporate Governance forming part of under the Companies Act, 2013 and the Listing Regulations $QQXDO5HSRUWIRUWKHnjQDQFLDO\HDUHQGHG0DUFK GXULQJ WKH njQDQFLDO \HDU ZHUH LQ WKH RUGLQDU\ FRXUVH RI There is no immediate proposal for passing any special business and on arm’s length basis and do not attract the resolution through Postal Ballot on or before ensuing Annual provisions of Section 188 of the Companies Act, 2013. General Meeting. None of the transactions with any of the related parties ZHUH LQ FRQǍLFW ZLWK WKH LQWHUHVW RI WKH &RPSDQ\ UDWKHU Code of Conduct they synchronise and synergise with the Company’s In compliance with Regulation 17 of the Listing Regulations operations. Attention of members is drawn to the and the Companies Act, 2013, the Company has framed disclosure of transactions with the related parties set out in and adopted a Code of Conduct for all Directors and Senior Note no. 47 of the Standalone Financial Statements, forming Management Personnel. The Code is available on the part of the Annual Report. Company’s website www.airtel.com. The Code is applicable to all Board members and Senior Management Personnel The required statements / disclosures, with respect to the who directly report to the Chairman, the Managing Director related party transactions, are placed before the Audit & Risk & CEO (India & South Asia). The Code is circulated to all Management Committee as well as to the Board of Directors, Board members and Senior Management Personnel and its on quarterly basis in terms of Regulation 23(3) of the FRPSOLDQFHLVDǎUPHGE\WKHPDQQXDOO\ Listing Regulations and other applicable laws for approval / information. Prior omnibus approval is obtained for Related %HVLGHVWKH&RPSDQ\DOVRSURFXUHVDTXDUWHUO\FRQnjUPDWLRQ Party Transactions which are of repetitive in nature. RI PDWHULDO njQDQFLDO DQG FRPPHUFLDO WUDQVDFWLRQV HQWHUHG into by Senior Management personnel with the Company The Company’s major related party transactions are WKDWPD\KDYHDSRWHQWLDOFRQǍLFWRILQWHUHVW generally with its subsidiaries and associates. These transactions are entered into based on consideration of A declaration signed by the Managing Director & CEO YDULRXVEXVLQHVVH[LJHQFLHVVXFKDVV\QHUJ\LQRSHUDWLRQV ,QGLD  6RXWK $VLD  UHJDUGLQJ DǎUPDWLRQ RI FRPSOLDQFH sectoral specialisation, liquidity and capital resource of with the Code of Conduct by Board Members and Senior subsidiary and associates and all such transactions are on 0DQDJHPHQWIRUWKHnjQDQFLDO\HDUHQGHG0DUFK arm’s length basis. LVDQQH[HGDV$QQH[XUH$ to this report. The Board of Directors has formulated a Policy on dealing Along with the Code of Conduct for the Board members with Related Party Transactions pursuant to the provisions of and Senior Management, the Company has also laid down a the Companies Act, 2013 and the Listing Regulations. The

118 Annual Report 2015-16 40-125 Bharti Airtel Limited 02-39 | Corporate OverviewStatutory Reports 126-355 | Financial Statements

Policy intends to ensure that proper reporting, approval and administers a formal process to review and investigate any disclosure processes are in place for all transactions between concern raised. It also undertakes all appropriate actions the Company and related parties. The Policy is posted on the required to resolve the reported matter. Instances of serious website of the Company at http://www.airtel.in/wps/wcm/ misconduct dealt with by the Ombudsperson are reported connect/36a5305d-f0ba-490c-9eff-152ef6811917/BAL- to the Audit & Risk Management Committee. All employees Policy-on-Related-Party-Transactions.pdf?MOD=AJPERES. of the Company as well as vendors / partners and any Disclosure on Risk Management SHUVRQWKDWKDVDJULHYDQFH H[FOXGLQJVWDQGDUGFXVWRPHU The Company has established an enterprise-wide risk complaints) has full access to the Ombudsperson through management (ERM) framework to optimally identify and phones, emails or even meetings in person. During the year manage risks, as well as to address operational, strategic under review, no employee was denied access to the Audit & and regulatory risks. In line with the Company’s commitment Risk Management Committee. to deliver sustainable value, this framework aims to provide $XGLWRUVš&HUWLǂFDWHRQ&RUSRUDWH*RYHUQDQFH an integrated and organised approach to evaluate and As required under Regulation 34 of the Listing Regulations, manage risks. Risk assessment monitoring is included in the WKHDXGLWRUVšFHUWLnjFDWHRQ&RUSRUDWH*RYHUQDQFHLVDQQH[HG Company’s annual Internal Audit programme and reviewed as $QQH[XUH+ to the Board’s Report. by the Audit & Risk Management Committee at regular intervals. In compliance with Regulation 17 and 21 of the &(2DQG&)2&HUWLǂFDWLRQ Listing Regulations, the Board of Directors has formulated 7KHFHUWLnjFDWHUHTXLUHGXQGHU5HJXODWLRQ  RIWKH/LVWLQJ a Risk Management Policy for framing, implementing and Regulations, duly signed by the CEO and CFO was placed monitoring the risk management plan for the Company. before the Board. The same is provided as $QQH[XUH % to The Board is periodically updated on the key risks, steps and this report. processes initiated for reducing and, if feasible, eliminating Subsidiary Companies various risks. Business risk evaluation and management is The Company monitors performance of subsidiary an ongoing process within the Company. Companies, inter-alia, by the following means: Detailed update on risk management framework has Financial Statements, in particular investments made been covered under the risk section, forming a part of the by unlisted subsidiary companies, are reviewed Management Discussion and Analysis. quarterly by the Audit & Risk Management Committee. Details of Non-compliance with regard to Capital Minutes of the Board Meetings of unlisted subsidiary Markets during the last three years companies are regularly placed before the Board. There have been no instances of non-compliances by the Company and no penalties and / or strictures have been  $VWDWHPHQW FRQWDLQLQJ VLJQLnjFDQW WUDQVDFWLRQV DQG LPSRVHG E\ 6WRFN ([FKDQJHV RU 6(%, RU DQ\ VWDWXWRU\ arrangements entered into by unlisted subsidiary authority on any matter related to capital markets during the companies is placed before the Company’s Board. last three years. Bharti Infratel Limited, the Company’s material Indian Insider Trading VXEVLGLDU\LVOLVWHGRQ6WRFN([FKDQJHVDQGWKHUHIRUHWKH In compliance with the SEBI regulation on prevention of insider Company is not required to nominate a Director on the trading, the Company has established systems and procedures Board of Bharti Infratel Limited. to prohibit insider trading activity and has formulated a code on The Board of Directors have formulated a Policy for insider trading for designated persons, who may have access determining material subsidiaries pursuant to the provisions to the Company’s price sensitive information. The Code lays of the Listing Regulations. The same is posted on the down procedures to be followed and disclosures to be made, Company’s website at http://www.airtel.in/wps/wcm/ while trading in the Company’s shares. connect/7e99add6-9401-4ab3-899a-07572390a956/ The Company follows highest standards of transparency BAL-Policy-for-determining-Material-Subsidiaries. and fairness in dealing with all stakeholders and ensures pdf?MOD=AJPERES. that no insider shall use his or her position with or without Compliance with the Mandatory Requirements of the NQRZOHGJH RI WKH &RPSDQ\ WR JDLQ SHUVRQDO EHQHnjW RU WR Listing Regulations SURYLGHEHQHnjWWRDQ\WKLUGSDUW\ The Board of Directors periodically review the compliance Ombudsperson Policy / Whistle Blower Policy of all applicable laws. The Company has complied with all Bharti Airtel has adopted an Ombudsperson Policy (includes the mandatory requirements of the Code of Corporate Whistle Blower Policy). It outlines the method and process *RYHUQDQFHDVVSHFLnjHGLQ5HJXODWLRQWRDQG&ODXVHV for stakeholders to voice genuine concerns about unethical (b) to (i) of sub regulation (2) of Regulation 46 of the conduct that may be in breach with the employees’ Code of /LVWLQJ 5HJXODWLRQV ,W KDV REWDLQHG D FHUWLnjFDWH DǎUPLQJ Conduct. The policy aims to ensure that genuine complainants the compliances from M/s. S.R. Batliboi & Associates LLP, DUH DEOH WR UDLVH WKHLU FRQFHUQV LQ IXOO FRQnjGHQFH ZLWKRXW Chartered Accountants, Gurgaon, the Company’s Statutory any fear of retaliation or victimisation. The Ombudsperson Auditors and the same is attached to the Board’s Report.

Report on Corporate Governance 119 Transformational Network

Details of Compliances with the Non-mandatory (iii) Separate posts of Chairman and CEO Requirements of Regulation 27 of the Listing Regulations The positions of the Chairman of the Board and the In addition to the mandatory requirements, the Company 0DQDJLQJ 'LUHFWRU  &KLHI ([HFXWLYH 2ǎFHU RI WKH has also adopted the following non-mandatory requirements Company are held by separate individuals. Regulation 27(1) of the Listing Regulations: (iv) Reporting of Internal Auditor (i) Shareholders’ Rights The Internal Auditors directly reports to the Audit & Risk The Company has a policy of announcement of the Management Committee. audited quarterly results. The results, as approved by (v) Compliance with the ICSI Secretarial Standards WKH%RDUGRI'LUHFWRUV RU&RPPLWWHHWKHUHRI DUHnjUVW The relevant Secretarial Standards issued by the VXEPLWWHGWR6WRFN([FKDQJHVZLWKLQPLQXWHV Institute of Company Secretaries of India (ICSI) has (under Clause 49 of the Listing Agreement / Clause 30 been complied by the Company. of the Listing Regulations) of the approval of the results. (vi) IFRS Financial Statements 2QFH WDNHQ RQ UHFRUG E\ WKH 6WRFN ([FKDQJHV WKH In addition to the Consolidated Financial Statements same were disseminated in the media through press prepared under IGAAP, the Company has also voluntarily UHOHDVH 7KH TXDUWHUO\ njQDQFLDO UHVXOWV DUH SXEOLVKHG prepared the Consolidated Financial Statements as per in newspapers and uploaded on Company’s website IFRS for its investors and other stakeholders. www.airtel.com. Green Initiatives by MCA  2QWKHQH[WGD\RIWKHDQQRXQFHPHQWRIWKHTXDUWHUO\ In compliance with the provisions of Section 20 of the results, an earnings call is organised, where the Companies Act, 2013 and as a continuing endeavour management responds to the queries of the investors towards the ‘Go Green’ initiative, the Company sends all / analysts. These calls are webcast live and transcripts correspondence / communications through email to those posted on the website. In addition, discussion with the shareholders who have registered their email id with their management team is webcast and also aired on the depository participant’s / Company’s registrar and share electronic media. transfer agent. In case the shareholders desire to receive a printed copy of such communications, they send a requisition LL  $XGLW4XDOLǂFDWLRQV to the Company. The Company forthwith sends a printed  &RPSDQ\šVnjQDQFLDOVWDWHPHQWVDUHXQTXDOLnjHG copy of the communication to the shareholder.

Status of Dividend Declared The Company declared its maiden dividend in August 2009 for the FY 2008-09. Status of the dividend declared by the Company for the last seven years is as under. Amount in ` Millions Financial Year Rate of Dividend per equity Total Pay-out Amount Paid to the Amount un-paid to share of ` 5 each shareholders the shareholders 2014-15 ` 2.22 8,874.23 8,873.32 (99.99%) 0.90 (0.01%) 2014-15 ` 1.63 6,515.76 6,505.85 (99.85%) 9.91 (0.15%) (Interim Dividend) 2013-14 ` 1.80 7,195.32 7,184.26 (99.85%) 11.06 (0.15%) 2012-13 ` 1 3,797.53 3,791.06 (99.83%) 6.47 (0.17%) 2011-12 ` 1 3,797.53 3,790.79 (99.82%) 6.74 (0.18%) 2010-11 ` 1 3,797.53 3,791.14 (99.83%) 6.39 (0.17%) 2009-10 ` 1 3,797.53 3,790.09 (99.80%) 7.44 (0.20%) 2008-09 ` 1 3,796.84 3,790.75 (99.84%) 6.09 (0.16%) 7KH&RPSDQ\FRQVWDQWO\HQGHDYRXUVWRUHGXFHWKHXQSDLGGLYLGHQGDPRXQW7KHVKDUHKROGHUVZKRKDYHQRWFODLPHGWKHLUGLYLGHQGIRUWKHDERYHnjQDQFLDO\HDUV are requested to contact the Company or its Share Transfer Agent. Equity Shares in the Suspense Account In terms of Regulation 34 of the Listing Regulations, the details of the equity shares lying in the suspense accounts, which were issued in physical form, are as follows:

Particulars Number of Number of equity Shareholders shares Number of shareholders and aggregate number of shares as transferred to 821 the Unclaimed Suspense Account outstanding as on April 01, 2015 Number of shareholders who approached the Company for transfer of shares Nil Nil and shares transferred from suspense account during the year Aggregate Number of shareholders and the outstanding shares in the 821 suspense account lying as on March 31, 2016 The voting rights on the shares in the suspense accounts as on March 31, 2016 shall remain frozen till the rightful owners of such shares claim the shares.

120 Annual Report 2015-16 40-125 Bharti Airtel Limited 02-39 | Corporate OverviewStatutory Reports 126-355 | Financial Statements

Means of Communication Disclosure of commodity price risks and Quarterly Results: The Company’s Quarterly Audited commodity hedging activities Results are published in prominent daily newspapers, viz. The Company follows prudent Board approved risk Mint (English daily) and Hindustan (vernacular newspaper) management policies. A detailed note on commodity and are also uploaded on the Company’s website price risks and commodity hedging activities is given in www.airtel.com. Management Discussion and Analysis forming part of this Annual Report. News releases, presentations:2ǎFLDOQHZVUHOHDVHVDQG RǎFLDO PHGLD UHOHDVHV DUH VHQW WR 6WRFN ([FKDQJHV DQG General Shareholders’ Information uploaded on the Company’s website www.airtel.com. 21st Annual General Meeting Earning Calls & Presentations to Institutional Investors Date August 19, 2016 / Analysts: The Company organises an earnings call with Day Friday DQDO\VWV DQG LQYHVWRUV RQ WKH QH[W GD\ RI DQQRXQFHPHQW of results, which is also broadcast live on the Company’s Time 3.30 p.m. website. The transcript of the earnings call is posted on the Air Force Auditorium, ZHEVLWH VRRQ DIWHU $Q\ VSHFLnjF SUHVHQWDWLRQ PDGH WR WKH Venue Subroto Park, analysts / others is also uploaded on the website www.airtel. New Delhi – 110 010 com. Financial Calendar NSE Electronic Application Processing System (NEAPS) / BSE Corporate Compliance & Listing Centre: The (Tentative Schedule, subject to change) NEAPS/ BSE’s Listing Centre is a web-based application Financial year April 01 to March 31 GHVLJQHG IRU FRUSRUDWHV $OO SHULRGLFDO FRPSOLDQFH njOOLQJV Results for the quarter like shareholding pattern, Corporate Governance Report, ending: PHGLDUHOHDVHVDQGRWKHUPDWHULDOLQIRUPDWLRQLVDOVRnjOHG June 30, 2016 July 27, 2016 (Wednesday) electronically on the designated portals. September 30, 2016 October 25, 2016 (Tuesday) December 31, 2016 January 24, 2017 (Tuesday) Website: 8SWRGDWH njQDQFLDO UHVXOWV DQQXDO UHSRUWV March 31, 2017 April 25, 2017 (Tuesday) VKDUHKROGLQJ SDWWHUQV RǎFLDO QHZV UHOHDVHV njQDQFLDO analysis reports, latest presentation made to the institutional Book Closure investors and other general information about the Company Saturday, August 13, 2016 to Friday, August 19, 2016 (both are available on the website www.airtel.com. days inclusive). Since the time of listing of shares, Bharti Airtel adopted Dividend a practise of releasing a quarterly report, which contains ` 1.36 per equity share of ` 5/- each (i.e. 27.20% on the face njQDQFLDODQGRSHUDWLQJKLJKOLJKWVNH\LQGXVWU\DQG&RPSDQ\ value of the shares) developments, results of operations, stock market highlights, QRQ*$$3LQIRUPDWLRQUDWLRDQDO\VLVVXPPDULVHGnjQDQFLDO Dividend Pay-out Date statements and so on. The quarterly reports are posted on On or after August 19, 2016 (within the statutory time limit the Company’s website and are also submitted to the Stock of 30 days i.e. up to September 18, 2016), subject to the ([FKDQJHVZKHUHWKH&RPSDQ\šVVKDUHVDUHOLVWHG approval of the shareholders.

Equity Shares Listing, Stock Code and Listing Fee Payment Name and address of the Stock Exchange Scrip code Status of fee paid for FY 2016-17 National Stock Exchange of India Limited BHARTIARTL Paid Exchange Plaza, C-1 Block G Bandra Kurla Complex, Bandra (E), Mumbai – 400 051 BSE Limited 532454 Paid Phiroze Jeejeebhoy Towers, Dalal Street, Mumbai – 400001 7KH&RPSDQ\GHOLVWHGLWVVKDUHVIURPWKH'HOKL6WRFN([FKDQJH$VVRFLDWLRQ/LPLWHG 5HJLRQDO GXULQJWKHǟQDQFLDO\HDU 2003-04. During the year, the Company had issued USD 1,000 Mn 4.375% Senior Unsecured Notes. These Notes are listed on Singapore Stock Exchange.

Report on Corporate Governance 121 Transformational Network

Stock Market Data for the Period April 01, 2015 to March 31, 2016

Month BSE NSE High Low Volume (Nos.) High Low Volume (Nos.) April 2015 425.70 371.85 6,345,103 427.00 371.80 109,472,835 May 2015 434.70 374.05 7,076,146 435.00 373.60 171,876,253 June 2015 437.20 403.50 6,044,738 437.30 402.85 80,413,818 July 2015 452.45 404.30 4,817,950 452.45 404.10 69,210,577 August 2015 427.60 332.60 4,918,622 427.70 332.50 98,617,633 September 2015 366.00 315.65 5,794,823 365.70 315.60 86,118,960 October 2015 374.35 335.80 4,109,165 374.70 335.60 78,058,324 November 2015 354.10 317.90 3,608,897 353.80 317.10 50,606,564 December 2015 341.20 304.65 4,840,420 341.75 304.15 76,546,265 January 2016 343.90 282.30 5,078,987 344.00 282.30 72,258,491 February 2016 334.80 291.00 9,328,164 334.90 291.20 90,335,726 March 2016 361.20 310.20 6,921,492 361.40 310.25 70,171,917 Source: www.bseindia.com Source: www.nseindia.com

Bharti Airtel Share Price Vs. BSE Sensex Bharti Airtel Share Price Vs. NSE Nifty

110 110

100 100

90 90 80 80

70 70 Jul-15 Jul-15 Apr-15 Oct-15 Jan-16 Jun-15 Feb-16 Sep-15 Mar-16 Dec-15 Apr-15 Nov-15 Oct-15 Aug-15 Jan-16 Jun-15 Feb-16 May-15 Sep-15 Dec-15 Mar-16 Nov-15 Aug-15 May-15

Bharti Airtel Share Price BSE Sensex Bharti Airtel Share Price NSE Nifty

Note: Base 100 = April 01, 2015

Registrar and Transfer Agent FRPSOHWH LQ DOO UHVSHFWV $OO WUDQVIHUV DUH njUVW SURFHVVHG All the work related to share registry, both in physical and by the Transfer Agent and are submitted thereafter to electronic form, is handled by the Company’s Registrar the Company, for approval. The Transfer Agent has been and Transfer Agent at the address mentioned in the authorised to transfer minor shareholding up to 50 shares communication addresses section. without the Company’s involvement. Pursuant to Regulation 40(9) of the Listing Regulations, the Share Transfer System &RPSDQ\ REWDLQV FHUWLnjFDWHV IURP D SUDFWLFLQJ &RPSDQ\ As much as 99.86% of the Company’s equity shares are in 6HFUHWDU\ RQ D KDOI\HDUO\ EDVLV WR WKH HNjHFW WKDW DOO WKH electronic format. These shares can be transferred through transfers are completed within the statutory stipulated the depositories without the Company’s involvement. SHULRG $ FRS\ RI WKH FHUWLnjFDWHV VR UHFHLYHG LV VXEPLWWHG Transfer of shares in physical form is processed within 15 WRERWK6WRFN([FKDQJHVZKHUHWKHVKDUHVRIWKH&RPSDQ\ days from the date of receipt, provided the documents are are listed.

122 Annual Report 2015-16 40-125 Bharti Airtel Limited 02-39 | Corporate OverviewStatutory Reports 126-355 | Financial Statements

Distribution of Shareholding By number of shares held as on March 31, 2016 Sl. no. Category ( by no. of shares) No. of shareholders % to holders No. of shares % of shares 1 1 – 5000 220,735 97.81 18,586,204 0.47% 2 5001 – 10000 2,177 0.96 3,302,274 0.08% 3 10001 – 20000 977 0.43 2,847,428 0.07% 4 20001 – 30000 360 0.16 1,799,949 0.05% 5 30001 – 40000 169 0.08 1,192,924 0.03% 6 40001 – 50000 135 0.06 1,246,131 0.03% 7 50001 – 100000 226 0.10 3,273,971 0.08% 8 100001 – above 906 0.40 3,965,151,221 99.19% Total 2,25,685 100 % 3,997,400,102 100 %

By category of holders as on March 31, 2016 S. no. Category No. of shares %age of holding I Promoter and Promoter Group (i) Indian promoters 1,802,318,492 45.09 (ii) Foreign promoters 865,673,286 21.66 Total Promoters shareholding 2,667,991,778 66.75 II Public Shareholding (A) Institutional Investors (i) Mutual Funds and Unit Trust of India 99,168,397 2.48 (ii) Financial institutions and Banks 1,291,949 0.03 (iii) Insurance companies 297,836,594 7.45 (iv) Foreign Institutional Investors 417,947,942 10.46 (v) Others - Foreign Portfolio Investors 253,014,232 6.33 (B) Others (i) Bodies Corporate (Indian) 9,523,591 0.24 (ii) Bodies Corporate (Foreign) 204,127,716 5.11 (iii) Trusts 7,773,082 0.19 (iv) NRIs / OCBs / Foreign Nationals / QFI 2,174,198 0.05 (v) Indian Public & Others 36,523,623 0.91 Total Public Shareholding 1,329,408,324 33.25 Total Shareholding 3,997,400,102 100.00

Dematerialisation of Shares and Liquidity The Company’s shares are compulsorily traded in dematerialised form and are available for trading with both the depositories i.e. National Securities Depository Limited (NSDL) and Central Depository Services (India) Limited (CDSL). The shareholders can hold the Company’s shares with any of the depository participants, registered with these depositories. ISIN for the Company’s shares is INE397D01024. 7KH&RPSDQ\šVHTXLW\VKDUHVDUHIUHTXHQWO\WUDGHGDWWKH%6(/LPLWHGDQGWKH1DWLRQDO6WRFN([FKDQJHRI,QGLD/LPLWHG

Outstanding GDRs / ADRs / Warrants or any Convertible instruments, conversion date and likely impact on equity The Company does not have any outstanding GDRs / ADRs / Warrants or any convertible instruments as on date.

Plant Locations %HLQJDVHUYLFHSURYLGHUFRPSDQ\%KDUWL$LUWHOKDVQRSODQWORFDWLRQV7KH&RPSDQ\šV&LUFOH2ǎFHDGGUHVVHVDUHSURYLGHGDW the end of the Annual Report.

Report on Corporate Governance 123 Transformational Network

Communication Addresses Contact Email Address For Corporate Mr. Rajendra Chopra FRPSOLDQFHRnjFHU#EKDUWLLQ Governance and other Company Secretary Secretarial related Bharti Airtel Limited matters Bharti Crescent, 1, Nelson For queries relating to Mr. Harjeet Kohli [email protected] Mandela Road, Vasant Kunj, Financial Statements Corporate Head - Phase – II, New Delhi – 110 070 Treasury & Investor Telephone no.: +91 11 46666100 Relations Fax no.: +91 11 46666137 For Corporate Mr. Raza Khan corporate.communications@ Website: www.airtel.com Communication related Head – Group Corporate bharti.in matters Communications Registrar & Transfer Karvy Computershare [email protected] Karvy Selenium Tower Agent Pvt. Ltd. B, Plot number 31 & 32, Gachibowli, Financial District, Nanakramguda, Hyderabad – 500032 Ph No.: 040-67162222 Fax No.: 040-23001153 Website: www.karvy.com

124 Annual Report 2015-16 40-125 Bharti Airtel Limited 02-39 | Corporate OverviewStatutory Reports 126-355 | Financial Statements

Annexure A

Declaration ,KHUHE\FRQnjUPWKDWWKH&RPSDQ\KDVUHFHLYHGIURPDOOWKHPHPEHUVRIWKH%RDUGDQG6HQLRU0DQDJHPHQWIRUWKHnjQDQFLDO \HDUHQGHG0DUFKDFRQnjUPDWLRQWKDWWKH\DUHLQFRPSOLDQFHZLWKWKH&RPSDQ\šV&RGHRI&RQGXFW

For Bharti Airtel Limited Place: Gurgaon Gopal Vittal Date: April 27, 2016 Managing Director & CEO (India & South Asia)

Annexure B

&KLHI([HFXWLYH2DŽFHU &(2 &KLHI)LQDQFLDO2DŽFHU &)2 &HUWLǂFDWLRQ

:H*RSDO9LWWDO0DQDJLQJ'LUHFWRU &(2 ,QGLD 6RXWK$VLD DQG1LODQMDQ5R\*OREDO&KLHI)LQDQFLDO2ǎFHURI%KDUWL$LUWHO Limited, to the best of our knowledge and belief hereby certify that: D  :HKDYHUHYLHZHGnjQDQFLDOVWDWHPHQWVDQGWKHFDVKǍRZVWDWHPHQWIRUWKH\HDUHQGHG0DUFKDQGWKDWWRWKH best of our knowledge and belief: (i) these statements do not contain any materially untrue statement or omit any material fact or contain statements that might be misleading;  LL  WKHVHVWDWHPHQWVWRJHWKHUSUHVHQWDWUXHDQGIDLUYLHZRIWKH&RPSDQ\šVDNjDLUVDQGDUHLQFRPSOLDQFHZLWKH[LVWLQJ accounting standards, applicable laws and regulations. (b) There are, to the best of our knowledge and belief, no transactions entered into by the Company during the year which are fraudulent, illegal or violative of the Company’s code of conduct. F  :H DFFHSW UHVSRQVLELOLW\ IRU HVWDEOLVKLQJ DQG PDLQWDLQLQJ LQWHUQDO FRQWUROV IRU njQDQFLDO UHSRUWLQJ DQG WKDW ZH KDYH HYDOXDWHGWKHHNjHFWLYHQHVVRILQWHUQDOFRQWUROV\VWHPVRIWKH&RPSDQ\SHUWDLQLQJWRnjQDQFLDOUHSRUWLQJDQGZHKDYH GLVFORVHGWRWKH$XGLWRUVDQGWKH$XGLW&RPPLWWHHGHnjFLHQFLHVLQWKHGHVLJQRURSHUDWLRQRIVXFKLQWHUQDOFRQWUROVLIDQ\ RIZKLFKZHDUHDZDUHDQGWKHVWHSVZHKDYHWDNHQRUSURSRVHWRWDNHWRUHFWLI\WKHVHGHnjFLHQFLHV (d) We have indicated to the Auditors and the Audit Committee: L  VLJQLnjFDQWFKDQJHVLQLQWHUQDOFRQWURORYHUnjQDQFLDOUHSRUWLQJGXULQJWKH\HDU LL  VLJQLnjFDQWFKDQJHVLQDFFRXQWLQJSROLFLHVGXULQJWKH\HDUDQGWKDWWKHVDPHKDYHEHHQGLVFORVHGLQWKHQRWHVWR WKHnjQDQFLDOVWDWHPHQWVDQG LLL  LQVWDQFHVRIVLJQLnjFDQWIUDXGRIZKLFKZHKDYHEHFRPHDZDUHDQGWKHLQYROYHPHQWWKHUHLQLIDQ\RIWKHPDQDJHPHQW RUDQHPSOR\HHKDYLQJDVLJQLnjFDQWUROHLQWKH&RPSDQ\šVLQWHUQDOFRQWUROV\VWHPRYHUnjQDQFLDOUHSRUWLQJ

Place: Gurgaon Nilanjan Roy Gopal Vittal Date: April 27, 2016 *OREDO&KLHI)LQDQFLDO2ǎFHU Managing Director & CEO (India & South Asia)

Report on Corporate Governance 125 Standalone Financial Statements (IGAAP)

Page Page Particulars Particulars Nos. Nos. Independent Auditor’s Report 127 24. ShortWHUP/RDQVDQG$GYDQFHV 158 Balance Sheet 132 25. Other Current Assets 158 6WDWHPHQWRI3URǟWDQG/RVV 133 26. *XDUDQWHHVDQG&RQWLJHQW/LDELOLWLHV 158 Cash Flow Statement 134 27. Capital and Other Commitments 162 Notes to Financial Statements 29. Revenue from Operations 162 1. Corporate Information 135 30. Other Income 162 2. Basis of Preparation 135 31. Cost of Goods Sold 162 3. 6XPPDU\RI6LJQLǟFDQW$FFRXQWLQJ3ROLFLHV 135 32. (PSOR\HH%HQHǟW([SHQVHV 162 4. Segment Reporting 141 33. Power and Fuel, Rent, Charity and Donation 163 and Other expenses 5. Share Capital 144 34. Finance Costs 164 6. Reserves and Surplus 145 35. Depreciation and Amortisation Expense 164 7. /RQJWHUP%RUURZLQJV 146 36. Exceptional Items 164 8. Ta xe s 147 37. Acquisitions / Additional Investments / 164 9. 2WKHU/RQJWHUP/LDELOLWLHV 148 New Developments 10. /RQJWHUP Provisions 148 39. Earnings Per Share 166 11. ShortWHUP Borrowings 148 40. (PSOR\HH%HQHǟWV 166 12. 7UDGH3D\DEOHV 149 41. Investment in Joint Ventures / Jointly 169 13. 2WKHU&XUUHQW/LDELOLWLHV 149 Owned Assets 14. ShortWHUP Provisions 150 43. Expenditure / Earnings in Foreign Currency 171 15. 7DQJLEOH$VVHWV 150 44. CIF Value of Imports 171 16. ,QWDQJLEOH$VVHWV 152 45. Auditors’ Remuneration 171 46. 17. 1RQFXUUHQW,QYHVWPHQWV 153 Details of Dues to Micro and Small 172 Enterprises 18. /RQJWHUP/RDQVDQG$GYDQFHV 155 47. Related Party Disclosures 172 19. 2WKHU1RQFXUUHQW$VVHWV 155 48. /HDVH 181 20. Current Investments 155 49. Employee Stock Compensation 182 21. Inventories 156 50. Forward Contracts & Derivative Instruments 187 22. 7UDGH5HFHLYDEOHV 157 and Unhedged Foreign Currency Exposure 23. Cash and Bank Balances 157 52. Movement in Provision 188

)RU2WKHU1RWHVWR5HIHU3DJHVDQGUHVSHFWLYHO\ 126-355 Bharti Airtel Limited 02-39 | Corporate Overview 40-125 | Statutory Reports Financial Statements

Independent Auditor’s Report

To the Members of Bharti Airtel Limited and the reasonableness of the accounting estimates made by the Company’s Directors, as well as evaluating the overall Report on the Standalone Financial Statements SUHVHQWDWLRQ RI WKH VWDQGDORQH njQDQFLDO VWDWHPHQWV :H :H KDYH DXGLWHG WKH DFFRPSDQ\LQJ VWDQGDORQH njQDQFLDO EHOLHYHWKDWWKHDXGLWHYLGHQFHZHKDYHREWDLQHGLVVXǎFLHQW statements of Bharti Airtel Limited (“the Company”), which and appropriate to provide a basis for our audit opinion on comprises the Balance Sheet as at March 31, 2016, the WKHVWDQGDORQHnjQDQFLDOVWDWHPHQWV 6WDWHPHQW RI 3URnjW DQG /RVV DQG &DVK )ORZ 6WDWHPHQW IRU WKH \HDU WKHQ HQGHG DQG D VXPPDU\ RI VLJQLnjFDQW Opinion accounting policies and other explanatory information. In our opinion and to the best of our information and according to the explanations given to us, the standalone Management’s Responsibility for the Standalone njQDQFLDO VWDWHPHQWV JLYH WKH LQIRUPDWLRQ UHTXLUHG E\ WKH Financial Statements Act in the manner so required and give a true and fair The Company’s Board of Directors is responsible for the view in conformity with the accounting principles generally matters stated in Section 134(5) of the Companies Act, DFFHSWHGLQ,QGLDRIWKHVWDWHRIDNjDLUVRIWKH&RPSDQ\DV 2013 (“the Act”) with respect to the preparation of these DW0DUFKLWVSURnjWDQGLWVFDVKǍRZVIRUWKH\HDU VWDQGDORQH njQDQFLDO VWDWHPHQWV WKDW JLYH D WUXH DQG IDLU ended on that date. YLHZ RI WKH njQDQFLDO SRVLWLRQ njQDQFLDO SHUIRUPDQFH DQG Emphasis of Matter FDVKǍRZVRIWKH&RPSDQ\LQDFFRUGDQFHZLWKDFFRXQWLQJ principles generally accepted in India, including the We draw attention to Note 26 (ii) (g) (vi) to the $FFRXQWLQJ 6WDQGDUGV VSHFLnjHG XQGHU VHFWLRQ  RI WKH VWDQGDORQH njQDQFLDO VWDWHPHQWV ZKLFK GHVFULEHV WKH Act, read with Rule 7 of the Companies (Accounts) Rules, uncertainties related to the legal outcome of Department 2014. This responsibility includes maintenance of adequate of Telecommunications’ demand with respect to One Time 6SHFWUXP&KDUJH2XURSLQLRQLVQRWTXDOLnjHGLQUHVSHFWRI accounting records in accordance with the provisions of the this matter. Act for safeguarding of the assets of the Company and for preventing and detecting frauds and other irregularities; Report on Other Legal and Regulatory selection and application of appropriate accounting policies; Requirements making judgements and estimates that are reasonable and 1. As required by the Companies (Auditor’s report) Order, prudent; and the design, implementation and maintenance 2016 (“the Order”) issued by the Central Government RI DGHTXDWH LQWHUQDO njQDQFLDO FRQWURO WKDW ZHUH RSHUDWLQJ of India in terms of sub-section (11) of section 143 of HNjHFWLYHO\ IRU HQVXULQJ WKH DFFXUDF\ DQG FRPSOHWHQHVV RI the Act, we give in the Annexure 1 a statement on the the accounting records, relevant to the preparation and PDWWHUVVSHFLnjHGLQSDUDJUDSKVDQGRIWKH2UGHU SUHVHQWDWLRQRIWKHVWDQGDORQHnjQDQFLDOVWDWHPHQWVWKDWJLYH 2. As required by section 143 (3) of the Act, we report a true and fair view and are free from material misstatement, that: whether due to fraud or error. (a) We have sought and obtained all the information Auditor’s Responsibility and explanations which to the best of our Our responsibility is to express an opinion on these knowledge and belief were necessary for the VWDQGDORQHnjQDQFLDOVWDWHPHQWVEDVHGRQRXUDXGLW:HKDYH purpose of our audit; taken into account the provisions of the Act, the accounting and auditing standards and matters which are required to (b) In our opinion, proper books of account as required be included in the audit report under the provisions of the by law have been kept by the Company so far as it Act and the Rules made thereunder. We conducted our audit appears from our examination of those books; in accordance with the Standards on Auditing issued by  F  7KH%DODQFH6KHHW6WDWHPHQWRI3URnjWDQG/RVV WKH,QVWLWXWHRI&KDUWHUHG$FFRXQWDQWVRI,QGLDDVVSHFLnjHG and Cash Flow Statement dealt with by this Report under Section 143(10) of the Act. Those Standards require are in agreement with the books of account; that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about  G  ,QRXURSLQLRQWKHDIRUHVDLGVWDQGDORQHnjQDQFLDO ZKHWKHUWKHVWDQGDORQHnjQDQFLDOVWDWHPHQWVDUHIUHHIURP statements comply with the Accounting Standards material misstatement. VSHFLnjHGXQGHUVHFWLRQRIWKH$FWUHDGZLWK Rule 7 of the Companies (Accounts) Rules, 2014; An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in (e) On the basis of written representations received WKH VWDQGDORQH njQDQFLDO VWDWHPHQWV 7KH SURFHGXUHV from the directors as on March 31, 2016, and selected depend on the auditor’s judgement, including taken on record by the Board of Directors, none of the assessment of the risks of material misstatement of WKHGLUHFWRUVLVGLVTXDOLnjHGDVRQ0DUFK WKHVWDQGDORQHnjQDQFLDOVWDWHPHQWVZKHWKHUGXHWRIUDXG from being appointed as a director in terms of or error. In making those risk assessments, the auditor section 164 (2) of the Act; FRQVLGHUVLQWHUQDOnjQDQFLDOFRQWUROUHOHYDQWWRWKH&RPSDQ\šV (f) With respect to the adequacy of the internal SUHSDUDWLRQRIWKHVWDQGDORQHnjQDQFLDOVWDWHPHQWVWKDWJLYH njQDQFLDO FRQWUROV RYHU njQDQFLDO UHSRUWLQJ RI WKH a true and fair view in order to design audit procedures that &RPSDQ\DQGWKHRSHUDWLQJHNjHFWLYHQHVVRIVXFK are appropriate in the circumstances. An audit also includes controls, refer to our separate Report dated April evaluating the appropriateness of accounting policies used 27, 2016 in Annexure 2 to this report;

Independent Auditor’s Report 127 Transformational Network

Independent Auditor’s Report

(g) With respect to the other matters to be included in iii. There were no amounts which were required the Auditor’s Report in accordance with Rule 11 of to be transferred to the Investor Education and the Companies (Audit and Auditors) Rules, 2014, Protection Fund by the Company. in our opinion and to the best of our information and according to the explanations given to us:

i. The Company has disclosed the impact of pending For S.R. Batliboi & Associates LLP OLWLJDWLRQVRQLWVnjQDQFLDOSRVLWLRQLQLWVVWDQGDORQH Chartered Accountants njQDQFLDO VWDWHPHQWV Ş 5HIHU 1RWH  E  WR WKH ICAI Firm Registration Number: 101049W VWDQGDORQHnjQDQFLDOVWDWHPHQWV per Nilangshu Katriar ii. The Company has made provision, as required Partner under the applicable law or accounting standards, Membership Number: 58814 for material foreseeable losses, if any, on long-term FRQWUDFWV LQFOXGLQJ GHULYDWLYH FRQWUDFWV Ş 5HIHU Place: Gurgaon 1RWHWRWKHVWDQGDORQHnjQDQFLDOVWDWHPHQWV Date: April 27, 2016

Annexure 1 maintained under section 189 of the Companies Act, 2013. Accordingly, the provision of clause 3(iii)(a), (b) Annexure referred to in paragraph 1 of ‘Report on other and (c) of the Order are not applicable to the Company Legal and Regulatory Requirements’ and hence not commented upon. Re: [BHARTI AIRTEL LIMITED] (‘the Company’) (iv) In our opinion and according to the information (i) (a) The Company has maintained proper records and explanations given to us, there are no loans, showing full particulars with respect to most of investments, guarantees, and securities granted in LWVnj[HGDVVHWVDQGLVLQWKHSURFHVVRIXSGDWLQJ respect of which provisions of section 185 and 186 of quantitative and situation details with respect to the Companies Act, 2013 are applicable and hence not FHUWDLQnj[HGDVVHWVLQWKHUHFRUGVPDLQWDLQHGE\ commented upon. the Company. (v) The Company has not accepted any deposits from the  E 7KHFDSLWDOLVHGnj[HGDVVHWVDUHSK\VLFDOO\YHULnjHG public. by the management according to a regular (vi) We have broadly reviewed the books of account programme designed to cover all the items over maintained by the Company pursuant to the rules made a period of three years. Pursuant to the planned by the Central Government for the maintenance of cost programme during the year, a substantial portion records under section 148(1) of the Companies Act, RI nj[HG DVVHWV DQG FDSLWDO ZRUN LQ SURJUHVV KDV 2013, related to service of telecommunication and are EHHQSK\VLFDOO\YHULnjHGE\WKHPDQDJHPHQWGXULQJ of the opinion that prima facie, the prescribed accounts the year, which in our opinion is reasonable having and records have been made and maintained. We have regard to the size of the Company and nature of its not, however, made a detailed examination of records assets. No material discrepancies were noted on with a view to determine whether they are accurate or VXFKYHULnjFDWLRQ complete. (c) Based on our audit procedures performed for the (vii) (a) The Company is regular in depositing with purpose of reporting the true and fair view of the appropriate authorities undisputed statutory njQDQFLDOVWDWHPHQWVDQGDFFRUGLQJWRLQIRUPDWLRQ dues including provident fund, employees’ and explanations given by the management, the state insurance, income-tax, sales-tax, service title deeds of immovable properties included in tax, duty of customs, value added tax, cess and property, plant and equipment are held in the other material statutory dues applicable to it. name of the Company. The provisions relating to duty of excise are not LL  7KHPDQDJHPHQWKDVFRQGXFWHGSK\VLFDOYHULnjFDWLRQ applicable to the Company. of inventory (other than inventory with third parties) According to the information and explanations at reasonable intervals during the year and no given to us, no undisputed amounts payable material discrepancies were noticed on such physical in respect of provident fund, employees’ state YHULnjFDWLRQ insurance, income-tax, sales-tax, service tax, duty of (iii) According to the information and explanations given to customs, value added tax, cess and other material us, the Company has not granted any loans, secured undisputed statutory dues were outstanding, as at RU XQVHFXUHG WR FRPSDQLHV njUPV OLPLWHG OLDELOLW\ the year end, for a period of more than six months SDUWQHUVKLSnjUPRURWKHUSDUWLHVFRYHUHGLQWKHUHJLVWHU from the date they became payable.

128 Annual Report 2015-16 126-355 Bharti Airtel Limited 02-39 | Corporate Overview 40-125 | Statutory Reports Financial Statements

Independent Auditor’s Report

(b) According to the records of the Company, the dues outstanding of income-tax, sales-tax, service tax, duty of customs, value added tax and cess on account of any dispute, are as follows:

Name of Statutes Nature of Amount Period to which Forum where the dispute is the Dues Disputed it relates pending (in ` Mn) Andhra Pradesh VAT Act Sales Tax 41  7ULEXQDO Deputy Commissioner, Andhra Pradesh VAT Act Sales Tax 46  Commercial Taxes, Punjagutta Bihar Value Added Sales Tax Act Sales Tax 0  Assistant Commissioner, Appeal Bihar Value Added Sales Tax Act Sales Tax 69  Joint Commissioner, Appeal Bihar Value Added Sales Tax Act Sales Tax 42  7ULEXQDO Chhattisgarh VAT Act Sales Tax 0  Assistant Commissioner Gujarat Sales Tax Act Sales Tax 1  Assistant Commissioner J&K General Sales Tax Sales Tax 34  High Court, Jammu & Kashmir Karnataka Sales Tax Act Sales Tax 291  Assistant Commissioner Kerala Sales Tax Act Sales Tax 1  &RPPHUFLDOWD[2njFHU Kerala Sales Tax Act Sales Tax 1  &RPPHUFLDOWD[2njFHU Kerala Sales Tax Act Sales Tax 11  Deputy Commissioner, Appeal Kerala Sales Tax Act Sales Tax 0  ,QWHOOLJHQFH2njFHU6TXDG Kerala Sales Tax Act Sales Tax 2  7ULEXQDO Kerala Value Added Tax Act Sales Tax 5  Deputy Commissioner, Appeal Kerala Value Added Tax Act Sales Tax 71  High Court of Kerala Asst. Commissioner, Spl Circle Kerala Value Added Tax Act Sales Tax 44  III, Ernakulam Intelligence Inspector, Squad Kerala Value Added Tax Act Sales Tax 0  No. I, Tellichery Intelligence Inspector, Squad Kerala Value Added Tax Act Sales Tax 0  No. 3, Ernakulam Kerala Value Added Tax Act Sales Tax 1  Asst. Commissioner Madhya Pradesh Commercial Sales Tax Act Sales Tax 23  Appellate authority Madhya Pradesh Commercial Sales Tax Act Sales Tax 2  High Court Madhya Pradesh Commercial Sales Tax Act Sales Tax 1  7ULEXQDO Madhya Pradesh Commercial Sales Tax Act Sales Tax 0  &RPPHUFLDOWD[2njFHU Madhya Pradesh Commercial Sales Tax Act Sales Tax 1  Deputy Commissioner Madhya Pradesh Commercial Sales Tax Act Sales Tax 22  Deputy Commissioner, Appeal Maharashtra Sales Tax Act Sales Tax 0  Joint Commissioner, Appeal Deputy Excise and Taxation 3XQMDE6DOHV7D[$FW Sales Tax 1  Commissioner 3XQMDE6DOHV7D[$FW Sales Tax 30  High Court 3XQMDE6DOHV7D[$FW Sales Tax 1  Jt. Director (Enforcement) 3XQMDE6DOHV7D[$FW Sales Tax 1  7ULEXQDO UP VAT Act Sales Tax 20  $VVHVVLQJ2njFHU UP VAT Act Sales Tax 21  Assistant Commissioner UP VAT Act Sales Tax 1  &RPPHUFLDOWD[2njFHU UP VAT Act Sales Tax 6  High Court UP VAT Act Sales Tax 3  Joint Commissioner, Appeal UP VAT Act Sales Tax 7  7ULEXQDO UP VAT Act Sales Tax 7  Additional Commissioner UP VAT Act Sales Tax 6  Deputy Commissioner Uttaranchal VAT Act Sales Tax 0  AO The Deputy Commisssoner of West Bengal Sales Tax Act Sales Tax 0  Commercial Taxes West Bengal Sales Tax Act Sales Tax 0  &RPPHUFLDOWD[2njFHU West Bengal Sales Tax Act Sales Tax 9  Revision Board West Bengal Sales Tax Act Sales Tax 3  7ULEXQDO Sub Total (A) 826 Finance Act, 1994 (Service tax provisions) Service Tax 307  Supreme Court Finance Act, 1994 (Service tax provisions) Service Tax 7  Commissioner Adjudication Finance Act, 1994 (Service tax provisions) Service Tax 16  Commissioner Appeal Finance Act, 1994 (Service tax provisions) Service Tax 7  High court Finance Act, 1994 (Service tax provisions) Service Tax 10,015  7ULEXQDO Finance Act, 1994 (Service tax provisions) Service Tax 3  $GG&RPPLVVLRQHU'HOKL:+2 Commissioner of Service Tax Finance Act, 1994 (Service tax provisions) Service Tax 238  Gurgaon Finance Act, 1994 (Service tax provisions) Service Tax 8  Commissioner of Service Tax Sub Total (B) 10,601

Independent Auditor’s Report 129 Transformational Network

Independent Auditor’s Report

Name of Statutes Nature of Amount Period to which Forum where the dispute is the Dues Disputed it relates pending (in ` Mn)  Income Tax Act, 1961 Income Tax 128 Supreme Court, High Court   Income Tax Act, 1961 Income Tax 11,578 ,QFRPH7D[$SSHOODWH7ULEXQDO   Commissioner of Income Tax Income Tax Act, 1961 Income Tax 18,899  (Appeals)  Income Tax Act, 1961 Income Tax 17,919 $VVHVVLQJ2njFHU  Income Tax Act, 1961 Income Tax 75  Sub Total (C) 48,599 Custom Act, 1962 Custom Act 4,128  Supreme Court Custom Act, 1962 Custom Act 0  7ULEXQDO Custom Act, 1962 Custom Act 126  7ULEXQDO Sub Total (D) 4,254  7KHDERYHPHQWLRQHGnjJXUHVUHSUHVHQWWKHWRWDOGLVSXWHGFDVHVZLWKRXWDQ\DVVHVVPHQWRI3UREDEOH3RVVLEOHDQG5HPRWHDVGRQHLQFDVHRIFRQWLQJHQW liabilities of the above cases, total amount deposited in respect of sales tax is ` 292 Mn, Service tax is ` 463 Mn, Income tax is ` 11,056 Mn and Custom Duty is ` 2,138 Mn.

(viii) Based on our audit procedures for the purpose are not applicable to the Company and hence not RI UHSRUWLQJ WKH WUXH DQG IDLU YLHZ RI WKH njQDQFLDO commented upon. statements and according to information and (xiii) Based on our audit procedures performed for the explanations given by the management, we are of purpose of reporting the true and fair view of the the opinion that the Company has not defaulted in UHSD\PHQW RI GXHV WR D njQDQFLDO LQVWLWXWLRQ EDQN njQDQFLDOVWDWHPHQWVDQGDFFRUGLQJWRWKHLQIRUPDWLRQ debenture holders or government. and explanations given by the management, transactions with the related parties are in compliance (ix) Based on our audit procedures performed for the with section 177 and 188 of Companies Act, 2013 purpose of reporting the true and fair view of the where applicable and the details have been disclosed njQDQFLDO VWDWHPHQWV DQG DFFRUGLQJ WR LQIRUPDWLRQ LQWKHQRWHVWRWKHnjQDQFLDOVWDWHPHQWVDVUHTXLUHGE\ and explanations given by the management and on the applicable accounting standards. an overall examination of the balance sheet, we report that, monies raised by the Company by way of debt (xiv) According to the information and explanations given instruments / term loans were applied for the purpose to us and on an overall examination of the balance for which the loans were obtained, though idle/surplus sheet, the Company has not made any preferential funds which were not required for immediate utilisation allotment or private placement of shares or fully or have been gainfully invested in liquid investments partly convertible debentures during the year under payable on demand. The maximum amount of idle/ review and hence not commented upon. surplus funds invested during the year was ` 63,215 (xv) Based on our audit procedures performed for the Mn, of which no amount was outstanding at the end of SXUSRVHRIUHSRUWLQJWKHWUXHDQGIDLUYLHZRIWKHnjQDQFLDO the year. statements and according to the information and (x) Based upon the audit procedures performed for the explanations given by the management, the Company purpose of reporting the true and fair view of the has not entered into any non-cash transactions with njQDQFLDO VWDWHPHQWV DQG DV SHU WKH LQIRUPDWLRQ DQG directors or persons connected with him. explanations given by the management, we report that no fraud by the Company or on the Company by (xvi) According to the information and explanations given to WKH RǎFHU DQG HPSOR\HHV RI WKH &RPSDQ\ KDV EHHQ us, the provisions of section 45-IA of the Reserve Bank noticed or reported during the year. of India Act, 1934 are not applicable to the Company. (xi) Based on our audit procedures performed for the purpose of reporting the true and fair view of the For S.R. Batliboi & Associates LLP njQDQFLDOVWDWHPHQWVDQGDFFRUGLQJWRWKHLQIRUPDWLRQ Chartered Accountants and explanations given by the management, we report ICAI Firm Registration Number: 101049W that the managerial remuneration has been paid / provided in accordance with the requisite approvals per Nilangshu Katriar mandated by the provisions of section 197 read with Partner Schedule V to the Companies Act, 2013. Membership Number: 58814 (xii) In our opinion, the Company is not a Nidhi Company. Place: Gurgaon Therefore, the provisions of clause 3(xii) of the order Date: April 27, 2016

130 Annual Report 2015-16 126-355 Bharti Airtel Limited 02-39 | Corporate Overview 40-125 | Statutory Reports Financial Statements

Independent Auditor’s Report

ANNEXURE 2 We believe that the audit evidence we have obtained is Annexure referred to in paragraph 2 of ‘Report on other VXǎFLHQW DQG DSSURSULDWH WR SURYLGH D EDVLV IRU RXU DXGLW Legal and Regulatory Requirements’ RSLQLRQ RQ WKH LQWHUQDO njQDQFLDO FRQWUROV V\VWHP RYHU njQDQFLDOUHSRUWLQJ Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 Meaning of Internal Financial Controls Over (“the Act”) Financial Reporting $FRPSDQ\šVLQWHUQDOnjQDQFLDOFRQWURORYHUnjQDQFLDOUHSRUWLQJ To the Members of Bharti Airtel Limited is a process designed to provide reasonable assurance :H KDYH DXGLWHG WKH LQWHUQDO njQDQFLDO FRQWUROV RYHU UHJDUGLQJ WKH UHOLDELOLW\ RI njQDQFLDO UHSRUWLQJ DQG WKH njQDQFLDOUHSRUWLQJRI%KDUWL$LUWHO/LPLWHG ţWKH&RPSDQ\Ť  SUHSDUDWLRQRInjQDQFLDOVWDWHPHQWVIRUH[WHUQDOSXUSRVHVLQ as of March 31, 2016 in conjunction with our audit of the accordance with generally accepted accounting principles. VWDQGDORQHnjQDQFLDOVWDWHPHQWVRIWKH&RPSDQ\IRUWKH\HDU $ FRPSDQ\šV LQWHUQDO njQDQFLDO FRQWURO RYHU njQDQFLDO ended on that date. reporting includes those policies and procedures that (1) Management’s Responsibility for Internal pertain to the maintenance of records that, in reasonable Financial Controls GHWDLO DFFXUDWHO\ DQG IDLUO\ UHǍHFW WKH WUDQVDFWLRQV DQG dispositions of the assets of the company; (2) provide The Company’s Management is responsible for establishing reasonable assurance that transactions are recorded as DQG PDLQWDLQLQJ LQWHUQDO njQDQFLDO FRQWUROV EDVHG RQ WKH QHFHVVDU\ WR SHUPLW SUHSDUDWLRQ RI njQDQFLDO VWDWHPHQWV LQ LQWHUQDOFRQWURORYHUnjQDQFLDOUHSRUWLQJFULWHULDHVWDEOLVKHG accordance with generally accepted accounting principles, by the Company considering the essential components of and that receipts and expenditures of the company are internal control stated in the Guidance Note on Audit of being made only in accordance with authorisations of Internal Financial Controls Over Financial Reporting issued management and directors of the company; and (3) provide by the Institute of Chartered Accountants of India. These reasonable assurance regarding prevention or timely responsibilities include the design, implementation and detection of unauthorised acquisition, use, or disposition of PDLQWHQDQFH RI DGHTXDWH LQWHUQDO njQDQFLDO FRQWUROV WKDW WKHFRPSDQ\šVDVVHWVWKDWFRXOGKDYHDPDWHULDOHNjHFWRQ ZHUH RSHUDWLQJ HNjHFWLYHO\ IRU HQVXULQJ WKH RUGHUO\ DQG WKHnjQDQFLDOVWDWHPHQWV HǎFLHQW FRQGXFW RI LWV EXVLQHVV LQFOXGLQJ DGKHUHQFH WR the Company’s policies, the safeguarding of its assets, the Inherent Limitations of Internal Financial Controls prevention and detection of frauds and errors, the accuracy Over Financial Reporting and completeness of the accounting records, and the timely %HFDXVH RI WKH LQKHUHQW OLPLWDWLRQV RI LQWHUQDO njQDQFLDO SUHSDUDWLRQ RI UHOLDEOH njQDQFLDO LQIRUPDWLRQ DV UHTXLUHG FRQWUROV RYHU njQDQFLDO UHSRUWLQJ LQFOXGLQJ WKH SRVVLELOLW\ under the Act. of collusion or improper management override of controls, Auditor’s Responsibility material misstatements due to error or fraud may occur and Our responsibility is to express an opinion on the Company’s not be detected. Also, projections of any evaluation of the LQWHUQDOnjQDQFLDOFRQWUROVRYHUnjQDQFLDOUHSRUWLQJEDVHGRQ LQWHUQDO njQDQFLDO FRQWUROV RYHU njQDQFLDOUHSRUWLQJWR IXWXUH our audit. We conducted our audit in accordance with the SHULRGV DUH VXEMHFW WR WKH ULVN WKDW WKH LQWHUQDO njQDQFLDO Guidance Note on Audit of Internal Financial Controls Over FRQWURO RYHU njQDQFLDO UHSRUWLQJ PD\ EHFRPH LQDGHTXDWH Financial Reporting (the “Guidance Note”) and the Standards because of changes in conditions, or that the degree of RQ$XGLWLQJDVVSHFLnjHGXQGHUVHFWLRQ  RIWKH$FWWR compliance with the policies or procedures may deteriorate. WKHH[WHQWDSSOLFDEOHWRDQDXGLWRILQWHUQDOnjQDQFLDOFRQWUROV Opinion both applicable to an audit of Internal Financial Controls and, In our opinion, the Company has, in all material respects, an both issued by the Institute of Chartered Accountants of DGHTXDWH LQWHUQDO njQDQFLDO FRQWUROV V\VWHP RYHU njQDQFLDO India. Those Standards and the Guidance Note require that UHSRUWLQJDQGVXFKLQWHUQDOnjQDQFLDOFRQWUROVRYHUnjQDQFLDO we comply with ethical requirements and plan and perform UHSRUWLQJZHUHRSHUDWLQJHNjHFWLYHO\DVDW0DUFK the audit to obtain reasonable assurance about whether EDVHGRQWKHLQWHUQDOFRQWURORYHUnjQDQFLDOUHSRUWLQJFULWHULD DGHTXDWHLQWHUQDOnjQDQFLDOFRQWUROVRYHUnjQDQFLDOUHSRUWLQJ established by the Company considering the essential was established and maintained and if such controls components of internal control stated in the Guidance RSHUDWHGHNjHFWLYHO\LQDOOPDWHULDOUHVSHFWV Note on Audit of Internal Financial Controls Over Financial Our audit involves performing procedures to obtain audit Reporting issued by the Institute of Chartered Accountants HYLGHQFH DERXW WKH DGHTXDF\ RI WKH LQWHUQDO njQDQFLDO of India. FRQWUROVV\VWHPRYHUnjQDQFLDOUHSRUWLQJDQGWKHLURSHUDWLQJ For S.R. Batliboi & Associates LLP HNjHFWLYHQHVV 2XU DXGLW RI LQWHUQDO njQDQFLDO FRQWUROV RYHU Chartered Accountants njQDQFLDO UHSRUWLQJ LQFOXGHG REWDLQLQJ DQ XQGHUVWDQGLQJ RI ICAI Firm Registration Number: 101049W LQWHUQDOnjQDQFLDOFRQWUROVRYHUnjQDQFLDOUHSRUWLQJDVVHVVLQJ the risk that a material weakness exists, and testing and per Nilangshu Katriar HYDOXDWLQJ WKH GHVLJQ DQG RSHUDWLQJ HNjHFWLYHQHVV RI Partner internal control based on the assessed risk. The procedures Membership Number: 58814 selected depend on the auditor’s judgement, including the assessment of the risks of material misstatement of the Place: Gurgaon njQDQFLDOVWDWHPHQWVZKHWKHUGXHWRIUDXGRUHUURU Date: April 27, 2016

Independent Auditor’s Report 131 Transformational Network

Balance Sheet

(` Millions) As of As of Particulars Notes March 31, 2016 March 31, 2015 Equity and Liabilities Shareholders' Funds Share capital 5 19,987 19,987 Reserves and surplus 6 824,481 762,742 Non-Current Liabilities /RQJWHUPERUURZLQJV 7 417,002 196,267 'HIHUUHGWD[OLDELOLWLHV 1HW  8 32,784 10,721 2WKHUORQJWHUPOLDELOLWLHV 9 43,954 42,036 /RQJWHUPSURYLVLRQV 10 2,262 1,969 Current Liabilities 6KRUWWHUPERUURZLQJV 11 6,999 6,259 7UDGHSD\DEOHV 12  WRWDORXWVWDQGLQJGXHVRIPLFURHQWHUSULVHVDQGVPDOO 26 10 enterprises  WRWDORXWVWDQGLQJGXHVRIFUHGLWRUVRWKHUWKDQPLFUR 70,562 71,222 enterprises and small enterprises 2WKHUFXUUHQWOLDELOLWLHV 13 193,604 140,675 6KRUWWHUPSURYLVLRQV 14 7,727 12,349 Total 1,619,388 1,264,237 Assets Non-current Assets Fixed Assets  7DQJLEOHDVVHWV 15 311,563 256,552  ,QWDQJLEOHDVVHWV 16 606,582 277,892  &DSLWDOZRUNLQSURJUHVV 28,251 26,561  ,QWDQJLEOHDVVHWVXQGHUGHYHORSPHQW 16 9,715 64,108 1RQFXUUHQWLQYHVWPHQWV 17 430,261 383,958 /RQJWHUPORDQVDQGDGYDQFHV 18 93,470 88,381 2WKHUQRQFXUUHQWDVVHWV 19 25,489 19,221 Current Assets Current investments 20 8 47,211 Inventories 21 53 94 7UDGHUHFHLYDEOHV 22 37,930 33,110 &DVKDQGEDQNEDODQFHV 23 521 3,887 6KRUWWHUPORDQVDQGDGYDQFHV 24 68,429 53,942 Other current assets 25 7,116 9,320 Total 1,619,388 1,264,237

7KHDFFRPSDQ\LQJQRWHVIRUPDQLQWHJUDOSDUWRIWKHVHǟQDQFLDOVWDWHPHQWV

As per our report of even date For S. R. Batliboi & Associates LLP For and on behalf of the Board of Directors of Bharti Airtel Limited Chartered Accountants ICAI Firm Registration No: 101049W per Nilangshu Katriar Sunil Bharti Mittal Gopal Vittal Partner Chairman Managing Director 0HPEHUVKLS1R & CEO (India & South Asia)

3ODFH*XUJDRQ Rajendra Chopra Nilanjan Roy 'DWH$SULO Company Secretary *OREDO&KLHI)LQDQFLDO2njFHU

132 Annual Report 2015-16 126-355 Bharti Airtel Limited 02-39 | Corporate Overview 40-125 | Statutory Reports Financial Statements

6WDWHPHQWRI3URnjWDQG/RVV

(` Millions, except per share data and as stated otherwise) For the year ended For the year ended Particulars Notes March 31, 2016 March 31, 2015 Income Revenue from operations 29 603,002 554,964 Other income 30 14,856 51,930 Total Income 617,858 606,894 Expenses Access charges 80,236 79,601 /LFHQVHIHHDQGVSHFWUXPFKDUJHV UHYHQXHVKDUH  70,654 67,062 Cost of goods sold 31 373 76 (PSOR\HHEHQHǟWVH[SHQVHV 32 18,693 16,915 Power and fuel 33 40,387 41,151 Rent 33 65,413 59,790 Charity and donation 33 575 292 Other expenses 33 103,309 95,766 Total Expenses 379,640 360,653 3URǂWEHIRUHǂQDQFHFRVWVGHSUHFLDWLRQDPRUWLVDWLRQ 238,218 246,241 exceptional items and tax Finance costs 34 35,590 14,091 Depreciation and amortisation expense 35 95,431 75,597 3URǂWEHIRUHH[FHSWLRQDOLWHPVDQGWD[ 107,197 156,553 Exceptional items 36 6,799    3URǂWEHIRUH7D[ 100,398 156,553 Tax Expense (including exceptional items) Current tax 20,501 31,092 MAT credit (17,631) (7,790) Deferred tax 22,063 1,246 3URǂWIRUWKH\HDU 75,465 132,005 Earnings per share (equity shares of par value ` 5 each) 39 Basic and Diluted (In `) 18.88 33.02

7KHDFFRPSDQ\LQJQRWHVIRUPDQLQWHJUDOSDUWRIWKHVHǟQDQFLDOVWDWHPHQWV

As per our report of even date For S. R. Batliboi & Associates LLP For and on behalf of the Board of Directors of Bharti Airtel Limited Chartered Accountants ICAI Firm Registration No: 101049W per Nilangshu Katriar Sunil Bharti Mittal Gopal Vittal Partner Chairman Managing Director 0HPEHUVKLS1R & CEO (India & South Asia)

3ODFH*XUJDRQ Rajendra Chopra Nilanjan Roy 'DWH$SULO Company Secretary *OREDO&KLHI)LQDQFLDO2njFHU

Standalone Financial Statements (IGAAP) 133 Transformational Network

Cash Flow Statement

(` Millions) For the year ended For the year ended Particulars March 31, 2016 March 31, 2015 A. &DVKǃRZVIURPRSHUDWLQJDFWLYLWLHV 3URǟWEHIRUHWD[ 100,398 156,553 Adjustments for: Depreciation and amortisation expense 95,431 75,597 Exceptional Items (refer Note 36) 2,925  Interest income (2,815) (1,396) 3URǟW ORVVRQVDOHRILQYHVWPHQWV (173) (34,698) Finance costs 35,590 14,091 Unrealised foreign exchange (gain) / loss 248 (853) Expenses on employee stock option plan 204 (6) 3URǟW ORVVRQVDOHRIDVVHWV QHW 716 550 Dividend income (9,470) (13,700) 2SHUDWLQJFDVKǃRZEHIRUHFKDQJHVLQDVVHWVDQGOLDELOLWLHV 223,054 196,138 Adjustments for changes in assets and liabilities :  ,QFUHDVH GHFUHDVHLQWUDGHUHFHLYDEOHV (4,972) (11,455)  ,QFUHDVH GHFUHDVHLQRWKHUUHFHLYDEOHV (11,565) (4,074)  ,QFUHDVH GHFUHDVHLQLQYHQWRULHV 68 (83) ,QFUHDVH GHFUHDVH LQWUDGHDQGRWKHUSD\DEOHV 15,701 27,260 ,QFUHDVH GHFUHDVH LQSURYLVLRQV 93 148 Cash generated from operations 222,379 207,934 CSR expenses Paid (refer Note 33)  (411) Income taxes paid (21,797) (28,125) 1HWFDVKǃRZIURP XVHGLQ RSHUDWLQJDFWLYLWLHV 200,582 179,398 B &DVKǃRZVIURPLQYHVWLQJDFWLYLWLHV 3XUFKDVHRIWDQJLEOHDVVHWV (117,411) (70,142) 3XUFKDVHRILQWDQJLEOHDVVHWV (69,907) (6,900) 3URFHHGVIURPVDOHRIWDQJLEOHDVVHWV 4,852 501 Sale/(Purchase) of investments (net) 47,376 (40,392) Proceeds from sale/redemption/reduction of shares in  40,499 VXEVLGLDULHVDVVRFLDWHVMRLQWYHQWXUHV QHWRIH[SHQVHV $FTXLVLWLRQVXEVFULSWLRQLQYHVWPHQWLQVXEVLGLDULHV (111,384) (40,292) associates/ joint ventures (refer Note 37) $GYDQFHVJLYHQWRVXEVLGLDULHVDVVRFLDWHMRLQWYHQWXUH (15,338) (34,861) 5HSD\PHQWRIDGYDQFHVJLYHQWRVXEVLGLDULHVDVVRFLDWHMRLQWYHQWXUH 26,749 8,513 3XUFKDVHRIEDQNGHSRVLWV ZLWKPDWXULW\PRUHWKDQWKUHHPRQWKV (46,717) (705) 3URFHHGVIURPPDWXULW\RIEDQNGHSRVLWV 46,658 671 (with maturity more than three months) Interest received 2,819 1,396 'LYLGHQGUHFHLYHGIURPVXEVLGLDU\FRPSDQLHV 9,470 13,700 1HWFDVKǃRZIURP XVHGLQ LQYHVWLQJDFWLYLWLHV (222,833) (128,012) C &DVKǃRZVIURPǂQDQFLQJDFWLYLWLHV 3URFHHGVIURPERUURZLQJV 74,520 23,192 5HSD\PHQWVRIERUURZLQJV (37,648) (58,138) 6KRUWWHUPERUURZLQJV QHW (105) 3,094 Dividend paid (8,875) (13,711) Tax on dividend paid  (2) ,QWHUHVWDQGRWKHUǟQDQFHFKDUJHVSDLG (9,007) (6,392) 1HWFDVKǃRZIURP XVHGLQ ǂQDQFLQJDFWLYLWLHV 18,885 (51,957) 1HWLQFUHDVH GHFUHDVH LQFDVKDQGFDVKHTXLYDOHQWVGXULQJWKH\HDU (3,366) (571) $GG%DODQFHDVDWWKHEHJLQQLQJRIWKH\HDU 3,887 4,458 Balance as at the end of the year (refer note 23) 521 3,887 1RWHV      )LJXUHVLQEUDFNHWVLQGLFDWHFDVKRXWǠRZ     7KHDERYHFDVKǠRZVWDWHPHQWKDVEHHQSUHSDUHGXQGHUWKHLQGLUHFWPHWKRGVHWRXWLQ$6Š&DVK)ORZ6WDWHPHQWVšQRWLǟHGXQGHU6HFWLRQRIWKH&RPSDQLHV $FWUHDGZLWKUXOHRIWKH&RPSDQLHV $FFRXQWV 5XOHVLVVXHGE\WKH0LQLVWU\RI&RUSRUDWH$NjDLUV    3 Cash and cash equivalents also includes `0QLQXQSDLGGLYLGHQGEDQNDFFRXQW 0DUFK` 35 Mn) (refer note 23) 3UHYLRXV\HDUǟJXUHVKDYHEHHQUHJURXSHGDQGUHFDVWZKHUHYHUQHFHVVDU\WRFRQIRUPWRWKHFXUUHQW\HDUFODVVLǟFDWLRQ

7KHDFFRPSDQ\LQJQRWHVIRUPDQLQWHJUDOSDUWRIWKHVHǟQDQFLDOVWDWHPHQWV As per our report of even date For S. R. Batliboi & Associates LLP For and on behalf of the Board of Directors of Bharti Airtel Limited Chartered Accountants ICAI Firm Registration No: 101049W per Nilangshu Katriar Sunil Bharti Mittal Gopal Vittal Partner Chairman Managing Director 0HPEHUVKLS1R & CEO (India & South Asia) 3ODFH*XUJDRQ Rajendra Chopra Nilanjan Roy 'DWH$SULO Company Secretary *OREDO&KLHI)LQDQFLDO2njFHU

134 Annual Report 2015-16 126-355 Bharti Airtel Limited 02-39 | Corporate Overview 40-125 | Statutory Reports Financial Statements

NotesWRnjQDQFLDOVWDWHPHQWV

1. Corporate Information upon management’s best knowledge of current events Bharti Airtel Limited (‘the Company’) incorporated in and actions, uncertainty about these assumptions and India on July 7, 1995, is a company promoted by Bharti estimates could result in the outcomes requiring a Telecom Limited (‘BTL’), a company incorporated under material adjustment to the carrying amounts of assets the laws of India. The Company’s shares are publicly and liabilities in future periods. traded on the National Stock Exchange (‘NSE’) and the 3.2. Tangible Assets (‘BSE’), India. The Registered Tangible Assets are stated at cost, net of accumulated RǎFH RI WKH &RPSDQ\ LV VLWXDWHG DW %KDUWL &UHVFHQW depreciation and accumulated impairment losses, if any. 1HOVRQ0DQGHOD5RDG9DVDQW.XQM3KDVHŞ,,1HZ 'HOKLŞ Such cost includes purchase price, the cost of replacing part of the plant and equipment and borrowing costs The Company is a leading telecommunication service for long term construction projects, if the recognition provider in India providing telecommunication systems criteria are met and directly attributable cost of bringing and services. the asset to its working condition for the intended use. Any trade discounts and rebates are deducted in 2. Basis of Preparation DUULYLQJDWWKHSXUFKDVHSULFH:KHQVLJQLnjFDQWSDUWVRI  7KHnjQDQFLDO VWDWHPHQWV RI WKH &RPSDQ\ KDYH EHHQ tangible assets are required to be replaced in intervals, prepared in accordance with the generally accepted the Company recognises such parts as separate accounting principles in India (Indian GAAP). The FRPSRQHQW RI DVVHWV ZLWK VSHFLnjF XVHIXO OLYHV DQG njQDQFLDO VWDWHPHQWV KDYH EHHQ SUHSDUHG WR FRPSO\ provides depreciation over their useful life. Subsequent in all material respects with the accounting standards costs are included in the asset’s carrying amount or QRWLnjHG XQGHU 6HFWLRQ  RI WKH &RPSDQLHV $FW recognised as a separate asset, as appropriate, only 2013 read with rule 7 of the Companies (Accounts) ZKHQ LW LV SUREDEOH WKDW IXWXUH HFRQRPLF EHQHnjWV 5XOHVLVVXHGE\WKH0LQLVWU\RI&RUSRUDWH$NjDLUV DVVRFLDWHG ZLWK WKH LWHP ZLOO ǍRZ WR WKH &RPSDQ\ 7KH njQDQFLDO VWDWHPHQWV KDYH EHHQ SUHSDUHG XQGHU and the cost of the item can be measured reliably. The the historical cost convention and on an accrual basis carrying amount of the replaced part is derecognised. except in case of assets for which revaluation is carried All other repair and maintenance costs are recognised RXW DQG FHUWDLQ GHULYDWLYH njQDQFLDO LQVWUXPHQWV UHIHU LQWKHVWDWHPHQWRISURnjWDQGORVVDVLQFXUUHG&DSLWDO note 3.13). work in progress is valued at cost. The accounting policies have been consistently applied Where assets are installed on the premises of customers by the Company and are consistent with those used (commonly called Customer premise equipment in the previous year except expenditure incurred on Şţ&3(Ť VXFKDVVHWVFRQWLQXHWREHWUHDWHGDVWDQJLEOH Corporate Social Responsibility (‘CSR’), which was assets as the associated risks and rewards remain DFFRXQWHG DV DSSURSULDWLRQ WR VWDWHPHQW RI SURnjW ZLWK WKH &RPSDQ\ DQG PDQDJHPHQW LV FRQnjGHQW RI and loss during previous year (in accordance with the exercising control over them. guidance issued by ICAI, ‘FAQ on the provision of CSR under section 135 of the Companies Act 2013 and Gains and losses arising from retirement or disposal of Rules thereon’). During current year, Company has WKH WDQJLEOH DVVHWV DUH GHWHUPLQHG DV WKH GLNjHUHQFH aligned accounting treatment of CSR with Guidance between the net disposal proceeds and the carrying Note on ‘Accounting for Expenditure on Corporate amount of the asset and are recognised in statement of Social Responsibility Activities’ issued by the Institute SURnjWDQGORVVRQWKHGDWHRIUHWLUHPHQWRUGLVSRVDO of Chartered Accountants of India in May 2015. Accordingly, expenditure pertaining to CSR activities is Assets are depreciated to the residual values on a FKDUJHGDVDQH[SHQVHLQWKHVWDWHPHQWRISURnjWDQG straight-line basis over the useful lives of respective loss (refer note 3.21). assets as estimated by the management. The depreciation period and the depreciation method  7KHVH njQDQFLDO VWDWHPHQWV DUH SUHVHQWHG LQ ,QGLDQ for a tangible asset are reviewed at least at each Rupees (‘Rupees’ or ‘`’) and all amount are rounded to njQDQFLDO\HDUHQG&KDQJHVLQWKHH[SHFWHGXVHIXOOLIH the nearest million (‘Mn’), except as stated otherwise. is accounted for as changes in accounting estimates and accounted prospectively over the remaining useful  6XPPDU\RI6LJQLǂFDQW$FFRXQWLQJ3ROLFLHV life. Changes in the expected pattern of consumption 3.1. Use of Estimates RI IXWXUH HFRQRPLF EHQHnjWV HPERGLHG LQ WKH DVVHW LV  7KH SUHSDUDWLRQ RI WKH njQDQFLDO VWDWHPHQWV LQ accounted for as change in the depreciation method conformity with Indian GAAP requires management and accounted retrospectively, thus, depreciation is to make judgement, estimates and assumptions that recalculated in accordance with the new method from DNjHFW WKH UHSRUWHG DPRXQWV RI DVVHWV DQG OLDELOLWLHV the date of the asset coming into use and any excess and disclosure of contingent liabilities at the date of the RUGHnjFLWRQVXFKUHFRPSXWDWLRQLVDFFRXQWHGLQWKH njQDQFLDOVWDWHPHQWVDQGWKHUHVXOWVRIRSHUDWLRQVGXULQJ VWDWHPHQW RI SURnjW DQG ORVV ZKHQ VXFK FKDQJH LV the reporting year. Although these estimates are based HNjHFWHG)UHHKROG/DQGLVQRWGHSUHFLDWHG

Standalone Financial Statements (IGAAP) 135 Transformational Network

NotesWRnjQDQFLDOVWDWHPHQWV

Estimated useful lives of the assets are as follows: (ii) Licenses and Spectrum Acquired licenses and spectrum are initially recognised Years at cost. Subsequently, they are measured at cost /HDVHKROG/DQG Period of lease less accumulated amortisation and accumulated Building 20 impairment loss, if any. Amortisation is recognised in %XLOGLQJRQ/HDVHG/DQG 20 WKHVWDWHPHQWRISURnjWDQGORVVRQDVWUDLJKWOLQHEDVLV Period of lease over the unexpired period of the license/spectrum /HDVHKROG,PSURYHPHQWV or 10 years, commencing from the date when the related network is whichever is less available for intended use in the respective jurisdiction. Plant & Equipment 3 – 20 The amortisation period related to licenses/spectrum Computer 3 acquired in a amalgamation is determined primarily by 2njFH(TXLSPHQW  reference to their unexpired period. Furniture and Fixtures 5 (iii) Bandwidth Vehicles 5  3D\PHQWIRUEDQGZLGWKFDSDFLWLHVDUHFODVVLnjHGDVSUH The management basis its past experience and technical payments in service arrangements or under certain assessment has estimated the useful life, which is at conditions as an acquisition of a right. In the latter case variance with the life prescribed in Part C of Schedule it is accounted for as intangible assets and the cost is II of the Companies Act, 2013 and has accordingly, amortised over the period of the agreements, which depreciated the assets over such useful life. may not exceed a period of 15 years depending on the tenor of the agreement. 3.3. Intangible Assets  ,GHQWLnjDEOHLQWDQJLEOHDVVHWVDUHUHFRJQLVHGZKHQWKH (iv) Other Acquired Intangible Assets Company controls the asset, it is probable that future Payment for the rights acquired for unlimited license HFRQRPLF EHQHnjWV DWWULEXWHG WR WKH DVVHW ZLOO ǍRZ WR access to various applications are recognised as other the Company and the cost of the asset can be reliably acquired intangibles. They are amortised on a straight - measured. Intangible assets under development is line basis over the period of the agreements. valued at cost. 3.4. Leases At initial recognition, the separately acquired intangible (i) Where the Company is the lessee assets are recognised at cost. Following initial  /HDVHVZKHUHWKHOHVVRUHNjHFWLYHO\UHWDLQVVXEVWDQWLDOO\ recognition, the intangible assets are carried at cost all the risks and rewards incidental to ownership of the less any accumulated amortisation and accumulated OHDVHG LWHP DUH FODVVLnjHG DV RSHUDWLQJ OHDVHV /HDVH impairment losses, if any. rentals with respect to assets taken on ‘Operating /HDVHšDUHFKDUJHGWRWKHVWDWHPHQWRISURnjWDQGORVV Gains and losses arising from retirement or disposal of on a straight-line basis over the lease term. WKHLQWDQJLEOHDVVHWVDUHGHWHUPLQHGDVWKHGLNjHUHQFH between the net disposal proceeds and the carrying  /HDVHV ZKLFK HNjHFWLYHO\ WUDQVIHU WR WKH &RPSDQ\ amount of the asset and are recognised in statement of substantially all the risks and rewards incidental to SURnjWDQGORVVRQWKHGDWHRIUHWLUHPHQWRUGLVSRVDO RZQHUVKLSRIWKHOHDVHGLWHPDUHFODVVLnjHGDVnjQDQFH lease. These are capitalised at the commencement of  $PRUWLVDWLRQ LV UHFRJQLVHG LQ WKH VWDWHPHQW RI SURnjW the lease at the fair value of the leased asset or, if lower, and loss on a straight-line basis over the estimated at the present value of the minimum lease payments. useful lives of intangible assets from the date they /HDVH SD\PHQWV DUH DSSRUWLRQHG EHWZHHQ njQDQFH are available for use. The amortisation period and charges and reduction of the lease liability so as to the amortisation method for an intangible asset are achieve a constant rate of interest on the remaining UHYLHZHGDWOHDVWDWHDFKnjQDQFLDO\HDUHQG&KDQJHV balance of the liability. Finance charges are recognised in the expected useful life is accounted for as changes LQWKHVWDWHPHQWRISURnjWDQGORVV/HDVHPDQDJHPHQW in accounting estimates and accounted prospectively fees, legal charges and other initial direct costs of lease over the remaining useful life. Changes in the expected are capitalised. SDWWHUQ RI FRQVXPSWLRQ RI IXWXUH HFRQRPLF EHQHnjWV embodied in the asset is accounted for as change in the Leased assets are depreciated on straight-line basis amortisation method and accounted retrospectively, over the useful life of the asset. However, if there is thus, amortisation is recalculated in accordance with no reasonable certainty that the Company will obtain the new method from the date of the asset coming into ownership by the end of the lease term, the asset is XVHDQGDQ\H[FHVVRUGHnjFLWRQVXFKUHFRPSXWDWLRQ depreciated on straight-line basis over the shorter of LVDFFRXQWHGLQWKHVWDWHPHQWRISURnjWDQGORVVZKHQ the estimated useful life of the asset or the lease term. VXFKFKDQJHLVHNjHFWHG (ii) Where the Company is the Lessor (i) Software Leases in which the Company does not transfer Software is capitalised at the amounts paid to acquire substantially all the risks and rewards incidental to the respective license for use and is amortised over the RZQHUVKLS RI WKH DVVHW DUH FODVVLnjHG DV RSHUDWLQJ period of license, generally not exceeding three years. leases. Lease income in respect of ‘Operating Lease’ 6RIWZDUHXSWR5XSHHVnjYHKXQGUHGWKRXVDQGZKLFK LVUHFRJQLVHGLQWKHVWDWHPHQWRISURnjWDQGORVVRQD has an independent use, is amortised over a period of straight-line basis over the lease term. Assets subject one year from the date of place in service. WRRSHUDWLQJOHDVHVDUHLQFOXGHGLQnj[HGDVVHWV,QLWLDO

136 Annual Report 2015-16 126-355 Bharti Airtel Limited 02-39 | Corporate Overview 40-125 | Statutory Reports Financial Statements

NotesWRnjQDQFLDOVWDWHPHQWV

direct costs incurred in negotiating an operating lease DUHUHFRJQLVHGLQWKHVWDWHPHQWRISURnjWDQGORVVDVD are added to the carrying amount of the leased asset component of depreciation and amortisation expense. and recognised over the lease term on the same basis After impairment, depreciation/amortisation is as rental income. provided on the revised carrying amount of the asset Leases in which the Company transfer substantially all over its remaining useful life. An impairment loss is only the risks and rewards incidental to ownership of the reversed to the extent that the asset’s carrying amount DVVHWDUHFODVVLnjHGDVnjQDQFHOHDVHV does not exceed the carrying amount that would have been determined if no impairment loss had previously  $VVHWV OHDVHG WR RWKHUV XQGHU njQDQFH OHDVH DUH been recognised. recognised as receivables at an amount equal to the net investment in the leased assets. Finance Income 3.7. Asset Retirement Obligations (ARO) LVUHFRJQLVHGEDVHGRQDSDWWHUQUHǍHFWLQJDFRQVWDQW Asset retirement obligations (ARO) are provided periodic rate of return on the net investment of the for those operating lease arrangements where the OHVVRURXWVWDQGLQJLQUHVSHFWRIWKHnjQDQFHOHDVH,QLWLDO Company has a binding obligation at the end of direct costs are accounted over the lease term. the lease period to restore the leased premises in a (iii) Indefasible right to use (‘IRU’) condition similar to inception of lease. The estimated future costs of decommissioning are reviewed annually As a part of operations, the Company enters into and adjusted as appropriate. Changes in the estimated agreement for leasing assets under “Indefasible right future costs are added to or deducted from the cost to use” with third parties. Under the arrangement the of the asset and depreciated prospectively over the assets are given on lease over the substantial part of the remaining useful life. DVVHWOLIH+RZHYHUWKHWLWOHWRWKHDVVHWVDQGVLJQLnjFDQW risk associated with the operation and maintenance 3.8. Investment of these assets remain with the lessor. Hence, such Investment, which are readily realisable and intended arrangements are recognised as operating lease. to be held for not more than one year from the date The contracted price is received in advance and RQZKLFKVXFKLQYHVWPHQWVDUHPDGHDUHFODVVLnjHGDV is recognised as revenue during the tenure of the FXUUHQWLQYHVWPHQWV$OORWKHULQYHVWPHQWVDUHFODVVLnjHG agreement. Unearned IRU revenue net of the amount as non-current investments. recognisable within one year is disclosed as deferred On initial recognition, all investments are measured at revenue in other long term liabilities and the amount cost. The cost comprises purchase price and directly recognisable within one year is disclosed as deferred attributable acquisition charges such as brokerage, revenue in other current liabilities. fees and duties. 3.5. Borrowing Cost  &XUUHQW ,QYHVWPHQWV DUH FDUULHG LQ WKH njQDQFLDO Borrowing costs consist of interest and other costs that statements at lower of cost and fair value determined the Company incurs in connection with the borrowing on an individual investment basis. Non-current of funds. Borrowing costs directly attributable to the investments are valued at cost. Provision is made for acquisition, construction or production of an asset that diminution in value to recognise a decline, if any, other necessarily takes a substantial period of time to get than that of temporary nature. ready for its intended use or sale are capitalised as part of the cost of the respective assets. All other borrowing  2QGLVSRVDORILQYHVWPHQWWKHGLNjHUHQFHEHWZHHQLWV costs are expensed in the period in which they occur. carrying amount and net disposal proceeds is charged RUFUHGLWHGWRWKHVWDWHPHQWRISURnjWDQGORVV 3.6. Impairment of Assets The carrying amounts of assets are reviewed 3.9. Cash and Cash Equivalents for impairment, whenever events or changes in Cash and cash equivalents for the purpose of cash circumstances indicate that the carrying amount ǍRZVWDWHPHQWFRPSULVHFDVKDWEDQNFDVKRQKDQG may not be recoverable or when annual impairment and cheques on hand, call deposits, and other short testing for an asset is required. An impairment loss is term highly liquid investments with an original maturity recognised whenever the carrying amount of an asset of three months or less that are readily convertible or its cash-generating unit exceeds its recoverable to a known amount of cash and are subject to an amount. The recoverable amount of an asset is the LQVLJQLnjFDQWULVNRIFKDQJHVLQYDOXH greater of its fair value less costs to sell and value in 3.10. Inventory use. To calculate value in use, the estimated future cash Inventory is valued at the lower of cost and net realisable ǍRZV DUH GLVFRXQWHG WR WKHLU SUHVHQW YDOXH XVLQJ D value. Cost is determined on First in First out basis. SUHWD[GLVFRXQWUDWHWKDWUHǍHFWVFXUUHQWPDUNHWUDWHV Inventory costs include purchase price, freight inward DQG WKH ULVNV VSHFLnjF WR WKH DVVHW )RU DQ DVVHW WKDW and transit insurance charges. Net realisable value is GRHV QRW JHQHUDWH ODUJHO\ LQGHSHQGHQW FDVK LQǍRZV the estimated selling price in the ordinary course of the recoverable amount is determined for the cash- business, less estimated costs of completion and the generating unit to which the asset belongs. Fair value estimated costs necessary to make the sale. less costs to sell is the best estimate of the amount obtainable from the sale of an asset in an arm’s length The Company provides for obsolete and slow-moving transaction between knowledgeable, willing parties, inventory based on management estimates of the less the costs of disposal. Impairment losses, if any, usability of inventory.

Standalone Financial Statements (IGAAP) 137 Transformational Network

NotesWRnjQDQFLDOVWDWHPHQWV

3.11. Revenue Recognition and Receivables exists regarding realisation of consideration. Revenue is recognised to the extent that it is probable Installation charges are recognised as revenue on WKDW WKH HFRQRPLF EHQHnjWV ZLOO ǍRZ WR WKH &RPSDQ\ satisfactory completion of installation. and the revenue can be reliably measured. Revenue (iii) Investing and Other Activities is measured at the consideration received/receivable QHW RNj GLVFRXQWV SURFHVV ZDLYHUV DQG YDOXH DGGHG Income on account of interest and other activities tax (‘VAT’), service tax or duty. The Company assesses are recognised on an accrual basis. LWV UHYHQXH DUUDQJHPHQWV DJDLQVW VSHFLnjF FULWHULD (iv) Dividend Income LH ZKHWKHU LW KDV H[SRVXUH WR WKH VLJQLnjFDQW ULVNV Dividend income is recognised when the and rewards associated with the sale of goods or the Company’s right to receive the payment is rendering of services, in order to determine if it is acting established. as a principal or as an agent. (v) Provision for Doubtful Debts (i) Service Revenues The Company provides for amounts outstanding Service revenues include amounts invoiced for more than 90 days from the date of billing, in IRU XVDJH FKDUJHV nj[HG PRQWKO\ VXEVFULSWLRQ case of active subscribers, roaming receivables, charges and very small aperture terminal (‘VSAT’) receivables for data services and for entire service usage charges, bandwidth services, RXWVWDQGLQJ IURP GHDFWLYDWHG FXVWRPHUV QHW RNj roaming charges, activation fees, processing fees VHFXULW\ GHSRVLWV RU LQ VSHFLnjF FDVHV ZKHUH WKH and fees for value added services (‘VAS’). Service management is of the view that the amounts from revenues also include revenues associated with certain customers are not recoverable. access and interconnection for usage of the telephone network of other operators for local, For receivables due from the other operators on domestic long distance and international calls and account of their National Long Distance (NLD) data messaging services. DQG ,QWHUQDWLRQDO /RQJ 'LVWDQFH ,/'  WUDǎF IRU voice and Interconnect Usage charges (IUC), the Service revenues are recognised as the services Company provides for amounts outstanding for are rendered and are stated net of discounts, more than 120 days from the date of billing, net process waivers and taxes. Revenues from pre- of any amounts payable to the operators or in paid customers are recognised based on actual VSHFLnjF FDVHV ZKHUH WKH PDQDJHPHQW LV RI WKH usage. Processing fees on recharge coupons view that the amounts from these operators are is recognised over the estimated customer not recoverable. relationship period or coupon validity period, whichever is lower. Activation revenue and related (vi) Unbilled Revenue activation costs, not exceeding the activation Unbilled revenue represent revenue recognised revenue, are deferred and amortised over the from last bill cycle date to the end of the reporting estimated customer relationship period. The period. These are billed in subsequent periods excess of activation costs over activation revenue, based on the terms of the billing plans / contractual if any, are expensed as incurred. Billings in excess arrangements. of revenue recognised is treated as unearned and reported as deferred revenue in the balance sheet. 3.12. License fees – revenue share The revenue-share fee on license and spectrum is Service revenues from the internet and VSAT computed as per the licensing agreement at the business comprise revenues from registration, prescribed rate and is expensed as incurred. installation and provision of internet and VSAT services. Registration fee and installation charges 3.13. Foreign Currency Translation, Accounting For are deferred and amortised over the period of Forward Contracts and Derivatives agreement with customer. Service revenue is Initial Recognition recognised from the date of satisfactory installation Foreign currency transactions are recorded in of equipment and software at the customer site the reporting currency, by applying to the foreign and provisioning of internet and VSAT services. currency amount the exchange rate between the Revenues from national and international long reporting currency and the foreign currency at the distance operations comprise revenue from date of the transaction. provision of voice services which are recognised on Conversion provision of services while revenue from provision Foreign currency monetary items are translated of bandwidth services (including installation) is recognised over the period of arrangement. using exchange rates prevailing at the reporting date. Non-monetary items which are carried in (ii) Equipment Sales terms of historical cost denominated in a foreign Equipment sales consist primarily of revenues from currency are translated using the exchange rate sale of telecommunication equipment and related at the date of the transaction; and non-monetary accessories. Revenue from equipment sales items which are carried at fair value or other similar WUDQVDFWLRQVDUHUHFRJQLVHGZKHQWKHVLJQLnjFDQW valuation denominated in a foreign currency are risks and rewards of ownership are transferred translated using the exchange rates at the date WRWKHEX\HUDQGZKHQQRVLJQLnjFDQWXQFHUWDLQW\ when the values were determined.

138 Annual Report 2015-16 126-355 Bharti Airtel Limited 02-39 | Corporate Overview 40-125 | Statutory Reports Financial Statements

NotesWRnjQDQFLDOVWDWHPHQWV

  ([FKDQJH'LǁHUHQFHV H[SOLFLWWHUPVWKDWDNjHFWVRPHRUDOORIWKHFDVK   ([FKDQJH GLNjHUHQFHV DULVLQJ RQ WKH VHWWOHPHQW ǍRZRUWKHYDOXHRIRWKHUH[FKDQJHVUHTXLUHGE\ of monetary items or on restatement of the the contract in a manner similar to a derivative &RPSDQ\šV PRQHWDU\ LWHPV DW UDWHV GLNjHUHQW instrument. The Company assesses whether from those at which they were initially recorded the economic characteristics and risks of the GXULQJ WKH\HDURU UHSRUWHG LQ SUHYLRXV njQDQFLDO embedded derivative are clearly and closely statements, are recognised as income or as related to the economic characteristics and expenses in the year in which they arise. risks of the remaining component of the host contract and whether a separate, non-embedded Forward Exchange Contracts covered under instrument with the same terms as the embedded $6Š7KH(ǁHFWVRI&KDQJHVLQ)RUHLJQ LQVWUXPHQW ZRXOG PHHW WKH GHnjQLWLRQ RI D Exchange Rates’ derivative instrument. When it is determined that   ([FKDQJH GLNjHUHQFHV RQ IRUZDUG H[FKDQJH (1) the embedded derivative possesses economic contracts and plain vanilla currency options for characteristics and risks that are not clearly and establishing the amount of reporting currency and closely related to the economic characteristics not intended for trading & speculation purposes, and risks of the host contract and (2) a separate, DUHUHFRJQLVHGLQWKHVWDWHPHQWRISURnjWDQGORVV stand-alone instrument with the same terms in the year in the which the exchange rate changes. would qualify as a derivative instrument, the The premium or discount arising at the inception embedded derivative is separated from the host of forward exchange contracts is amortised as contract, carried at fair value as a trading or non- expense or income over the life of the contract. Any hedging derivative instrument. At every year end, SURnjWRUORVVDULVLQJRQFDQFHOODWLRQRUUHQHZDORI all outstanding embedded derivative instruments such forward exchange contract is recognised as are fair valued on mark-to-market basis and any income or expense for the year. loss on valuation is recognised in the statement   ([FKDQJH GLNjHUHQFH RQ IRUZDUG FRQWUDFWV ZKLFK RI SURnjW DQG ORVV IRU WKH \HDU $Q\ UHGXFWLRQ LQ are taken to establish the amount other than the mark-to-market valuations and reversals of such UHSRUWLQJ FXUUHQF\ DULVLQJ GXH WR WKH GLNjHUHQFH UHGXFWLRQVDUHLQFOXGHGLQVWDWHPHQWRISURnjWDQG between forward rate available at the reporting loss for the year. date for the remaining maturity period and the Translation of Integral and Non-Integral contracted forward rate (or the forward rate last Foreign Operation used to measure a gain or loss on the contract for   7KHnjQDQFLDO VWDWHPHQWV RI DQ LQWHJUDO IRUHLJQ an earlier period) are recognised in the statement operation are translated as if the transactions RISURnjWDQGORVVIRUWKH\HDU of the foreign operation have been those of the Other Derivative Instruments, not in the Company itself. QDWXUHRI$6Š7KH(ǁHFWVRI&KDQJHVLQ   ,QWUDQVODWLQJ WKH njQDQFLDO VWDWHPHQWV RI D QRQ Foreign Exchange Rates’ integral foreign operation for incorporation in The Company enters into various foreign currency njQDQFLDO VWDWHPHQWV WKH DVVHWV DQG OLDELOLWLHV option contracts and interest rate swap contracts both monetary and non-monetary are translated that are not in the nature of forward contracts at the closing rate; income and expense items are designated under AS 11 as such and contracts translated at average exchange rates prevailing that are not entered to establish the amount of during the year; and all resulting exchange the reporting currency required or available at GLNjHUHQFHVDUHDFFXPXODWHGLQDIRUHLJQFXUUHQF\ the settlement date of a transaction; to hedge its translation reserve until the disposal of the net ULVNVZLWKUHVSHFWWRIRUHLJQFXUUHQF\ǍXFWXDWLRQV investment. and interest rate exposure arising out of foreign currency loan. In accordance with the ICAI 3.14.(PSOR\HH%HQHǂWV announcement, at every year end, all outstanding  7KH &RPSDQ\šV SRVW HPSOR\PHQW EHQHnjWV LQFOXGH derivative contracts are fair valued on a mark- GHnjQHG EHQHnjW SODQ DQG GHnjQHG FRQWULEXWLRQ SODQV to-market basis and any loss on valuation is 7KH&RPSDQ\DOVRSURYLGHVRWKHUEHQHnjWVLQWKHIRUP UHFRJQLVHGLQWKHVWDWHPHQWRISURnjWDQGORVVRQ RIRWKHUORQJWHUPHPSOR\HHEHQHnjWV each contract basis. Any gain on mark-to-market  8QGHUWKHGHnjQHGEHQHnjWUHWLUHPHQWSODQWKH&RPSDQ\ valuation on respective contracts is not recognised provides retirement obligation in the form of Gratuity. by the Company, keeping in view the principle of Under the plan, a lump sum payment is made to eligible prudence as enunciated in AS 1, ‘Disclosure of employees at retirement or termination of employment Accounting Policies’. Any reduction in fair values based on respective employee salary and years of and any reversals of such reductions are included experience with the Company. LQVWDWHPHQWRISURnjWDQGORVVIRUWKH\HDU  )RU GHnjQHG EHQHnjW UHWLUHPHQW SODQV WKH GLNjHUHQFH Embedded Derivative Instruments between the fair value of the plan assets and the The Company occasionally enters into contracts, present value of the plan liabilities is recognised as an WKDW GR QRW LQ WKHLU HQWLUHW\ PHHW WKH GHnjQLWLRQ asset or liability in the balance sheet. Scheme liabilities of a derivative instrument, that may contain are calculated using the projected unit credit method ţHPEHGGHGŤ GHULYDWLYH LQVWUXPHQWV Ş LPSOLFLW RU and applying the principal actuarial assumptions as

Standalone Financial Statements (IGAAP) 139 Transformational Network

NotesWRnjQDQFLDOVWDWHPHQWV

at the date of balance sheet. Plan assets are assets SD\PHQWWUDQVDFWLRQRULVRWKHUZLVHEHQHnjFLDOWRWKH WKDWDUHKHOGE\DORQJWHUPHPSOR\HHEHQHnjWIXQGRU HPSOR\HHDVPHDVXUHGDWWKHGDWHRIPRGLnjFDWLRQ qualifying insurance policies. Where an equity-settled award is cancelled, it is treated  $OO H[SHQVHV LQ UHVSHFW RI GHnjQHG EHQHnjW SODQV as if it is vested on the date of cancellation, and any including actuarial gains and losses, are recognised in expense not yet recognised for the award is recognised WKHVWDWHPHQWRISURnjWDQGORVVDVLQFXUUHG immediately. This includes any award where non- vesting conditions within the control of either the entity  7KH&RPSDQ\šV FRQWULEXWLRQV WR GHnjQHG FRQWULEXWLRQ or the employee are not met. However, if a new award is SODQV DUH UHFRJQLVHG LQ VWDWHPHQW RI SURnjW DQG ORVV substituted for the cancelled award, and designated as when the employee renders the related services. The a replacement award on the date that it is granted, the Company has no further obligations under these plans cancelled and new awards are treated as if they were a beyond its periodic contributions. PRGLnjFDWLRQRIWKHRULJLQDODZDUGDVGHVFULEHGLQWKH The distinction between short-term and long-term previous paragraph. All cancellations of equity-settled HPSOR\HH EHQHnjWV LV EDVHG RQ H[SHFWHG WLPLQJ RI transaction awards are treated equally. settlement rather than the employee’s entitlement EHQHnjWV 3.16. Ta xe s (i) Current Income tax The employees of the Company are entitled to Current Income tax is measured at the amount expected compensated absences based on the unavailed to be paid to the tax authorities in accordance with OHDYHEDODQFHDVZHOODVRWKHUORQJWHUPEHQHnjWV7KH Indian Income Tax Act, 1961. The tax rates and tax laws Company records liability based on actuarial valuation used to compute the amount are those that are enacted computed under projected unit credit method. The or substantively enacted, by the reporting date. Company presents the liability for compensated absences as a current liability in the balance sheet (ii) Deferred Tax as it does not have an unconditional right to defer its  'HIHUUHG LQFRPH WD[HV UHǍHFWV WKH LPSDFW RI FXUUHQW settlement for 12 months after the reporting date. \HDU WLPLQJ GLNjHUHQFHV EHWZHHQ WD[DEOH LQFRPH DQG accounting income for the year and reversal of timing 3.15. Share Based Compensation GLNjHUHQFHV RI HDUOLHU \HDUV 'HIHUUHG WD[ LV PHDVXUHG The Company issues equity-settled and cash-settled based on the tax rates and the tax laws enacted or share-based options to certain employees. These are substantively enacted at the balance sheet date. measured at fair value on the date of grant. Deferred tax liabilities are recognised for all taxable The fair value determined on the grant date of the WLPLQJGLNjHUHQFHV'HIHUUHGWD[DVVHWVDUHUHFRJQLVHG equity settled share based options is expensed over the only to the extent that there is reasonable certainty vesting period, based on the Company’s estimate of the WKDW VXǎFLHQW IXWXUH WD[DEOH LQFRPH ZLOO EH DYDLODEOH shares that will eventually vest. against which such deferred tax assets can be realised. In situations, where the Company has unabsorbed The fair value determined on the grant date of the cash depreciation or carry forward tax losses, deferred tax settled share based options is expensed over the vesting assets are recognised only if there is virtual certainty period, based on the Company’s estimates of the shares supported by convincing evidence that they can be that will eventually vest. At each reporting date, until the UHDOLVHGDJDLQVWIXWXUHWD[DEOHSURnjWV liability is settled, and at the date of settlement, liability is re-measured at fair value, with any changes in fair value In the situations where the Company is entitled to a pertaining to the vesting period till the reporting date is tax holiday under the Indian Income-tax Act, 1961, no UHFRJQLVHGLPPHGLDWHO\LQSURnjWDQGORVV deferred tax (asset or liability) is recognised in respect of WLPLQJGLNjHUHQFHVZKLFKUHYHUVHGXULQJWKHWD[KROLGD\ Fair value is measured using Lattice-based option SHULRG 'HIHUUHG WD[ LQ UHVSHFW RI WLPLQJ GLNjHUHQFHV valuation model, Black-Scholes and Monte Carlo which reverse after the tax holiday period is recognised Simulation framework and is recognised as an expense, LQWKH\HDULQZKLFKWKHWLPLQJGLNjHUHQFHVRULJLQDWH)RU together with a corresponding increase in equity/ UHFRJQLWLRQ RI GHIHUUHG WD[HV WKH WLPLQJ GLNjHUHQFHV liability, as appropriate, over the period in which the ZKLFKRULJLQDWHnjUVWDUHFRQVLGHUHGWRUHYHUVHnjUVW options vest using the graded vesting method. The expected life used in the model is adjusted, based on The carrying amount of deferred tax assets is reviewed PDQDJHPHQWšV EHVW HVWLPDWH IRU WKH HNjHFWV RI QRQ at each balance sheet date and reduced to the extent transferability, exercise restrictions and behavioral that it is no longer reasonably certain or virtual certain, considerations. The expected volatility and forfeiture DVWKHFDVHPD\EHWKDWVXǎFLHQWWD[DEOHSURnjWZLOOEH assumptions are based on historical information. available to allow all or part of the deferred tax asset to be realised. Where the terms of a share-based compensation are PRGLnjHG WKH PLQLPXP H[SHQVH UHFRJQLVHG LV WKH At each balance sheet date, unrecognised deferred tax H[SHQVHDVLIWKHWHUPVKDGQRWEHHQPRGLnjHGLIWKH assets of earlier years are re-assessed and recognised to the original terms of the award are met. An additional extent that it has become reasonably or virtually certain, as H[SHQVH LV UHFRJQLVHG IRU DQ\ PRGLnjFDWLRQ WKDW the case may be, that future taxable income will be available increases the total fair value of the share-based against which such deferred tax assets can be realised.

140 Annual Report 2015-16 126-355 Bharti Airtel Limited 02-39 | Corporate Overview 40-125 | Statutory Reports Financial Statements

NotesWRnjQDQFLDOVWDWHPHQWV

(iii) MAT Credit virtually certain. The expense relating to any provision is Minimum Alternative Tax (MAT) credit is recognised as SUHVHQWHGLQWKHVWDWHPHQWRISURnjWDQGORVVQHWRIDQ\ an asset only when and to the extent there is convincing reimbursement. evidence that the Company will pay normal income tax A contingent liability is a possible obligation that arises GXULQJWKHVSHFLnjHGSHULRGLHWKHSHULRGIRUZKLFK0$7 IURP SDVW HYHQWV ZKRVH H[LVWHQFH ZLOO EH FRQnjUPHG credit is allowed to be carried forward. In the year in by the occurrence or non-occurrence of one or more which the MAT credit becomes eligible to be recognised uncertain future events not wholly within the control as an asset in accordance with the recommendations of the Company or a present obligation that is not contained in Guidance Note on Accounting for credit UHFRJQLVHGEHFDXVHLWLVQRWSUREDEOHWKDWDQRXWǍRZ available in respect of Minimum Alternative Tax under RI UHVRXUFHV HPERG\LQJ HFRQRPLF EHQHnjWV ZLOO EH the Income Tax Act, 1961, the said asset is created required to settle the obligation or the amount of the E\ZD\RIDFUHGLWWRWKHVWDWHPHQWRISURnjWDQGORVV REOLJDWLRQFDQQRWEHPHDVXUHGZLWKVXǎFLHQWUHOLDELOLW\ account and shown as MAT Credit Entitlement. The Information on contingent liabilities is disclosed in the Company reviews the same at each balance sheet date QRWHVWRWKHnjQDQFLDOVWDWHPHQWVXQOHVVWKHSRVVLELOLW\ and writes down the carrying amount of MAT Credit RI DQ RXWǍRZ RI UHVRXUFHV HPERG\LQJ HFRQRPLF Entitlement to the extent there is no longer convincing EHQHnjWVLVUHPRWH HYLGHQFH WR WKH HNjHFW WKDW &RPSDQ\ ZLOO SD\ QRUPDO LQFRPHWD[GXULQJWKHVSHFLnjHGSHULRG 3.20. Multiple Element Contracts With Vendors The Company enters into multiple element contracts 3.17. Segment Reporting with vendors for supply of goods and rendering of (i) Primary Segment services. The consideration paid is independent of The Company operates in three primary business the value of supplies received and services availed. segments viz. Mobile Services, Telemedia Services and Accordingly, the supplies and services are accounted Airtel Business. for based on their relative fair values to the overall (ii) Secondary Segment FRQVLGHUDWLRQ 7KH VXSSOLHV ZLWK njQLWH OLIH XQGHU VXFK The Company has operations serving customers within contracts are accounted as Tangible assets or as India as well as in other countries located outside India. Intangible assets in view of the substance of these The operations in India constitute the major part, which contracts and existence of economic ownership in is the only reportable segment, the remaining portion these assets. being attributable to others. 3.21. Expenditure incurred on Corporate Social 3.18. Earnings Per Share Responsibility (“CSR”) The earnings considered in ascertaining the Company’s In accordance with the guidance note issued by (DUQLQJVSHU6KDUH Š(36š FRPSULVHWKHQHWSURnjWDIWHU Institute of Chartered Accountants of India (ICAI) tax attributable to equity shareholders. The number of on May 15, 2015, ‘Accounting for Expenditure on shares used in computing basic EPS is the weighted Corporate Social Responsibility Activities’, the amount average number of shares outstanding during the of expenditure incurred on CSR is accounted as charge year. The weighted average number of equity shares WRWKHVWDWHPHQWRISURnjWDQGORVV outstanding during the year are adjusted for events of 3.22. Exceptional Items bonus issue, bonus element in a rights issue to existing Exceptional items refer to items of income or expense shareholders, share split, and reverse share split within the income statement from ordinary activities (consolidation of shares). The diluted EPS is calculated which are non-recurring and are of such size, nature or on the same basis as basic EPS, after adjusting for the incidence that their separate disclosure is considered HNjHFWVRISRWHQWLDOGLOXWLYHHTXLW\VKDUHVLIDQ\ necessary to explain the performance of the Company. 3.19. Provisions and Contingencies 3.23. Amalgamation Accounting Provisions are recognised when the Company has a The Company has treated the amalgamation in the present obligation as a result of past event, it is probable nature of merger under pooling of interest method as WKDW DQ RXWǍRZ RI UHVRXUFHV HPERG\LQJ HFRQRPLF there is continuity of business of the amalgamated EHQHnjWV ZLOO EH UHTXLUHG WR VHWWOH WKH REOLJDWLRQ DQG Company and all the assets, liabilities and ownership is a reliable estimate can be made of the amount of the transferred to the Company. obligation. Provisions are not discounted to its present value and are determined based on best estimate 4. Information about Business Segments - required to settle the obligation at the balance sheet Primary date. These estimates are reviewed at each balance  6HJPHQW'HǂQLWLRQV VKHHW GDWH DQG DGMXVWHG WR UHǍHFW WKH FXUUHQW EHVW The Company’s operating businesses are organised estimates. and managed separately according to the nature of Where the Company expects some or all of a provision products and services provided, with each segment to be reimbursed, the reimbursement is recognised as UHSUHVHQWLQJ D VWUDWHJLF EXVLQHVV XQLW WKDW RNjHUV a separate asset but only when the reimbursement is GLNjHUHQWSURGXFWVDQGVHUYHVGLNjHUHQWPDUNHWV

Standalone Financial Statements (IGAAP) 141 Transformational Network

NotesWRnjQDQFLDOVWDWHPHQWV

Mobile Services - These services cover voice and data global corporations by serving as a single point of telecom services provided through wireless technology contact for all telecommunication needs across data in India (2G/3G/4G). This includes the captive national and voice (domestic as well as international long long distance networks which primarily provide distance), network integration and managed services. connectivity to the mobile services business in India. Unallocated - Unallocated includes other income, 7KLVDOVRLQFOXGHVLQWUDFLW\njEUHQHWZRUNV SURnjWV ORVVHV  DVVHWV LQFOXGLQJ QRQFXUUHQW Telemedia Services - These services cover voice and investments) and liabilities of the Company which are data telecommunication services provided through not allocated to the business segments and is primarily nj[HGOLQHQHWZRUNDQGEURDGEDQGWHFKQRORJ\ related to the corporate headquarter of the Company. These also include current tax (net of provisions of Airtel Business - These services cover end-to-end tax), deferred tax (net), MAT credit and borrowings not telecom solutions being provided to large Indian and allocated to the primary business segments.

Summary of the Segmental Information for the year ended and as of March 31, 2016

(` Millions) Mobile Telemedia Airtel Unallocated Eliminations Total Particulars Services Services Business Revenue 5HYHQXHIURPRSHUDWLRQV 500,080 43,908 59,014       603,002 external Inter Segment Revenue 18,226 514 9,176    (27,916)    Total Revenue 518,306 44,422 68,190 - (27,916) 603,002 Results 6HJPHQW5HVXOW3URǟW /RVV  110,955 11,910 7,598 (134)  130,329 )LQDQFHFRVWV ,QFRPH  23,132 Exceptional items # 6,799 3URǂWEHIRUHWD[ 100,398 Tax expense &XUUHQWWD[ LQFOXGLQJ0$7 2,870 Credit) 'HIHUUHGWD[FKDUJH 22,063 3URǂWIRUWKHSHULRG 75,465 Other Information Capital expenditure 425,954 11,807 8,025 932 (11,042) 435,676 Depreciation and amortisation 85,970 9,127 5,976 14 (5,656) 95,431 expense As of March 31, 2016 Segment Assets 987,398 29,187 33,336 512,359    1,562,280 Inter Segment Assets 389,702 144,841 125,634 358 (660,535)    Advance tax (Net of provision 829 829 for tax) MAT Credit 56,279 56,279 Total Assets 1,377,100 174,028 158,970 569,825 (660,535) 1,619,388 6HJPHQW/LDELOLWLHV  564,869 11,238 32,220 133,809    742,136 ,QWHU6HJPHQW/LDELOLWLHV 54,374 98,544 70,105 437,512 (660,535)    'HIHUUHG7D[/LDELOLW\ QHW     32,784    32,784 Total Liabilities 619,243 109,782 102,325 604,105 (660,535) 774,920  6HJPHQWUHVXOWVH[FOXGHnjQDQFHLQFRPHRI`0QLVQHWWHGRNjIURPnjQDQFHFRVWVIRUWKHSXUSRVHRIVHJPHQWUHSRUWLQJ ** Unallocated liabilities includes amount borrowed for the acquisition of 3G and BWA Licenses (including spectrum) of ` Nil. # Exceptional items represents regulatory fee provisions arising out of re-assessment of certain positions and operating cost on network refarming and up- gradation program.

142 Annual Report 2015-16 126-355 Bharti Airtel Limited 02-39 | Corporate Overview 40-125 | Statutory Reports Financial Statements

NotesWRnjQDQFLDOVWDWHPHQWV

Summary of the Segmental Information for the year ended and as of March 31, 2015

(` Millions) Mobile Telemedia Airtel Unallocated Eliminations Total Particulars Services Services Business Revenue Revenue from operations 464,426 40,195 50,343   554,964 external Inter Segment Revenue 18,508 849 8,955    (28,312)    Total Revenue 482,934 41,044 59,298 - (28,312) 554,964 Results 6HJPHQW5HVXOW3URǟW /RVV  112,562 8,506 3,786 (4,004)    120,850 )LQDQFHFRVWV ,QFRPH  (35,703) 3URǂWEHIRUHWD[ 156,553 Tax expense &XUUHQW7D[ LQFOXGLQJ0$7 23,302 Credit) 'HIHUUHG7D[&KDUJH 1,246 3URǂWIRUWKH\HDU 132,005 Other Information Capital expenditure 228,213 7,598 6,356 452 (6,772) 235,847 Depreciation and amortisation 66,079 9,040 5,483 11 (5,016) 75,597 As of March 31, 2015 Segment Assets 632,821 29,103 32,356 531,308    1,225,588 Inter Segment Assets 435,337 76,880 90,661    (602,878)    MAT Credit          38,649    38,649 Total Assets 1,068,158 105,983 123,017 569,957 (602,878) 1,264,237 6HJPHQW/LDELOLWLHV  337,154 8,774 29,484 94,877    470,289 ,QWHU6HJPHQW/LDELOLWLHV 48,602 42,556 41,464 470,256 (602,878)    Provision for Tax (Net of          498    498 Advance Tax) 'HIHUUHG7D[/LDELOLW\ QHW     10,721    10,721 Total Liabilities 385,756 51,330 70,948 576,352 (602,878) 481,508 6HJPHQWUHVXOWH[FOXGHVnjQDQFHLQFRPHRI`0QZKLFKLVQHWWHGRNjIURPnjQDQFHFRVWVIRUWKHSXUSRVHRIVHJPHQWUHSRUWLQJ ** Unallocated liabilities includes amount borrowed for the acquisition of 3G and BWA Licenses (including spectrum) of ` 8,153 Mn Notes:  7KH&RPSDQ\SUHSDUHVLWVVHJPHQWLQIRUPDWLRQLQFRQIRUPLW\ZLWKWKHDFFRXQWLQJSROLFLHVDGRSWHGIRUSUHSDULQJDQGSUHVHQWLQJWKHnjQDQFLDOVWDWHPHQWVRI the Company as a whole.  6HJPHQWUHVXOWVUHSUHVHQWSURnjW ORVV EHIRUHnjQDQFHFRVWV QHWRInjQDQFHLQFRPH H[FHSWLRQDOLWHPVDQGWD[  &DSLWDOH[SHQGLWXUHUHSUHVHQWVJURVVDGGLWLRQVWRnj[HGDVVHWVDQGFDSLWDODGYDQFHJLYHQIRUDFTXLULQJWDQJLEOHDQGLQWDQJLEOHDVVHWVGXULQJWKH\HDU 4. Inter segment assets / liabilities represent the inter segment account balances. 5. Inter segment revenue is accounted for on terms established by the management on arm’s length basis. These transactions have been eliminated at the Company level.

Standalone Financial Statements (IGAAP) 143 Transformational Network

NotesWRnjQDQFLDOVWDWHPHQWV

Information about Geographical Segment – Secondary The Company has operations serving customers within India as well as located in other countries. The information relating to the geographical segments in respect of customers being served and assets within India, which is the only reportable segment, the remaining portion being attributable to others, is presented below :

(` Millions) For the year ended For the year ended Particulars March 31, 2016 March 31, 2015 Segment Revenue from external customers based on geographical location of customers Within India 562,696 518,924 Others 40,306 36,040 603,002 554,964 Carrying amount of Segment Assets by geographical location of assets Within India 1,211,299 978,816 Others 408,089 285,421 1,619,388 1,264,237 Cost incurred during the year to acquire Segment Assets by geographical location of assets Within India 434,656 234,197 Others 1,020 1,650 435,676 235,847 Notes: 1. Segment assets include tangible, intangible, current and other non-current assets. &RVWLQFXUUHGGXULQJWKH\HDUWRDFTXLUHVHJPHQWDVVHWVUHSUHVHQWVJURVVDGGLWLRQVWRnj[HGDVVHWVDQGFDSLWDODGYDQFHJLYHQIRUDFTXLULQJWDQJLEOHDQG intangible assets during the year.

5. Share Capital (` Millions) As of As of Particulars March 31, 2016 March 31, 2015 Authorised shares  0DUFK HTXLW\VKDUHVRI 25,000 25,000 ` 5 each Issued, Subscribed and fully paid-up shares  0DUFK HTXLW\VKDUHVRI 19,987 19,987 ` 5 each 19,987 19,987 Note: 21,474,527 Equity shares of ` 10 each were alloted as fully paid-up shares upon the conversion of Foreign Currency Convertible Bonds (FCCBs) during WKHnjQDQFLDO\HDUVIURPWR HTXLW\VKDUHVSRVWVKDUHVSOLWRIRQHHTXLW\VKDUHRI` 10 each into 2 equity shares of ` 5 each)

144 Annual Report 2015-16 126-355 Bharti Airtel Limited 02-39 | Corporate Overview 40-125 | Statutory Reports Financial Statements

NotesWRnjQDQFLDOVWDWHPHQWV a. Reconciliation of the equity shares outstanding at the beginning and at the end of the year For the year ended For the year ended Particulars March 31, 2016 March 31, 2015 No. ` Mn No. ` Mn $WWKHEHJLQQLQJRIWKH\HDU 3,997,400,102 19,987 3,997,400,102 19,987 Issued during the year     Outstanding at the end of the year 3,997,400,102 19,987 3,997,400,102 19,987

E 7HUPVULJKWVDWWDFKHGWRHTXLW\VKDUHV The Company has only one class of equity shares having par value of ` 5 per share. Each holder of equity shares is entitled to one vote per share. The dividend proposed by the Board of Directors is subject to approval of the shareholders in the ensuing Annual General Meeting. c. Details of shareholders (as per the register of shareholders) holding more than 5% shares in the Company As of As of Particulars March 31, 2016 March 31, 2015 No. % holding No. % holding Equity shares of ` 5 each fully paid up %KDUWL7HOHFRP/LPLWHG 1,802,318,492 45.09% 1,747,545,460 43.72% 3DVWHO/LPLWHG 591,319,300 14.79% 591,319,300 14.79% ,QGLDQ&RQWLQHQW,QYHVWPHQW/LPLWHG 265,860,986 6.65% 265,860,986 6.65% /,&RI,QGLD&KLOG)RUWXQH3OXV%DODQFHG)XQG 203,878,856 5.10%       7KUHH3LOODU3WH/LPLWHG 199,870,006 5.00% 199,870,006 5.00%

6. Reserves and Surplus (` Millions) As of As of Particulars March 31, 2016 March 31, 2015 Capital Reserve 2SHQLQJEDODQFH 51 51 $FTXLUHGXQGHUWKHVFKHPHRIDPDOJDPDWLRQ 8,700    Closing balance 8,751 51 Securities Premium Reserve 2SHQLQJEDODQFH 107,967 107,936 Additions during the year 274 31 Closing balance 108,241 107,967 Revaluation Reserve 21 21 Employee Stock Options Outstanding 2SHQLQJEDODQFH 756 2,365 $GG$GGLWLRQGXULQJWKH\HDU 520 80 /HVV)RUIHLWXUH([HUFLVH 768 1,689 Closing balance 508 756 Reserve for Business Restructuring 2SHQLQJEDODQFH 24,912 24,912 /HVV$GMXVWPHQWGXHWRDPDOJDPDWLRQ 8,599  Closing balance 16,313 24,912

Standalone Financial Statements (IGAAP) 145 Transformational Network

NotesWRnjQDQFLDOVWDWHPHQWV

(` Millions) As of As of Particulars March 31, 2016 March 31, 2015 General Reserve 2SHQLQJEDODQFH 28,452 27,043 $GG$GMXVWPHQWRQDFFRXQWRIIRUIHLWXUHRIHPSOR\HHVWRFNRSWLRQ    1,327 $GG$GMXVWPHQWRQDFFRXQWRIH[HUFLVHRIVWRFNRSWLRQV VKDUHV 308 82 WUDQVIHUUHGWRHPSOR\HHVIURPVKDUHVSXUFKDVHGE\7UXVWWKURXJK open market) Closing balance 28,760 28,452 6XUSOXVLQWKH6WDWHPHQWRI3URǂWDQG/RVV 2SHQLQJEDODQFH 600,583 484,965 $GG3URǟWIRUWKH\HDU 75,465 132,005 /HVV$FTXLUHGXQGHUWKH6FKHPHRIDPDOJDPDWLRQ 9,425    $PRXQWDYDLODEOHIRUDSSURSULDWLRQ 666,623 616,970 $SSURSULDWLRQV CSR expenses (refer note 33)    (411) Dividend paid/ proposed (refer note 51) (5,436) (15,390) Tax on dividend paid/ proposed^ 700 (586) 1HWVXUSOXVLQWKHVWDWHPHQWRISURǂWDQGORVV 661,887 600,583 Total 824,481 762,742 * (refer note 37(i)) ^ Tax on dividend paid / proposed is net of credit of ` 1,807 Mn (March 31, 2015 - ` 1,221 Mn) on account of dividend distribution tax on dividend from subsidiary companies.

7. Long-term Borrowings (` Millions) As of As of Particulars March 31, 2016 March 31, 2015 Secured From Banks 12 18 From Others 8 1 Total secured 20 19 Unsecured 1RQ&RQYHUWLEOH%RQGV 66,255  7HUP/RDQV From Banks 1,573 19,265 From Others 39,213 46,843 Total 107,041 66,108 'HIHUUHGSD\PHQWOLDELOLWLHVWRZDUGVVSHFWUXP 341,424 143,167 )LQDQFHOHDVHREOLJDWLRQV 1,951 144 Total unsecured 450,416 209,419 /HVV&XUUHQWPDWXULWLHV UHIHUQRWH From Banks 669 5,822 From Others 6,677 7,346 7,306 13,128 'HIHUUHGSD\PHQWOLDELOLWLHVWRZDUGVVSHFWUXP 25,428 - )LQDQFHOHDVHREOLJDWLRQV 660 43 417,002 196,267 * USD 1,000 Mn 4.375% senior notes due on 2025 listed on Singapore exchange (refer note 37(iii)).

146 Annual Report 2015-16 126-355 Bharti Airtel Limited 02-39 | Corporate Overview 40-125 | Statutory Reports Financial Statements

NotesWRnjQDQFLDOVWDWHPHQWV a. Secured borrowings represent vehicle loans which are secured by hypothecation of vehicles of the Company. E 'HWDLOVUHODWLQJWRPDWXULW\SURnjOHLQWHUHVWUDWHDQGFXUUHQF\RIORQJWHUPERUURZLQJV

(` Millions) Currency of Rate of Interest As of 0DWXULW\3URǂOH borrowings (Weighted March 31, 2016 Within one Between Between 2YHUǂYH average) year one and two and years two years ǂYH\HDUV INR 10.00% 342,833 25,883 25,284 85,781 205,885 USD 3.34% 107,603 7,551 6,391 14,039 79,622 Total 450,436 33,434 31,675 99,820 285,507

(` Millions) Currency of Rate of Interest As of 0DWXULW\3URǂOH borrowings (Weighted March 31, 2015 Within one Between Between 2YHUǂYH average) year one and two and years two years ǂYH\HDUV INR 10.08% 163,483 5,240 18,245 27,751 112,247 USD 1.25% 45,955 7,931 6,874 14,618 16,532 Total 209,438 13,171 25,119 42,369 128,779 c. The borrowings of ` 40,806 Mn outstanding as of March 31, 2016, comprising various loans, are repayable in total 730 half yearly installments, borrowings of ` 66,255 Mn is payable in 1 bullet installment, ` 341,424 Mn repayable in WRWDO\HDUO\LQVWDOOPHQWVDQGnjQDQFHOHDVHREOLJDWLRQIRU` 1,951 repayable in total 84 yearly, quarterly and monthly installments (borrowings of ` 209,438 Mn outstanding as of March 31, 2015, comprising various loans, are repayable in total 15 quaterly installments, 840 half yearly installments and 15 yearly installments).

8. Taxes i) Deferred tax liabilities (Net) (` Millions) As of As of Particulars March 31, 2016 March 31, 2015 Deferred Tax Liabilities arising on account of: Depreciation and amortisation 53,668 29,839 53,668 29,839 Less: Deferred Tax Assets arising on account of: 3URYLVLRQIRUGRXEWIXOGHEWVDGYDQFHV 7,977 7,178 /HDVHUHQWHTXDOLVDWLRQ 6,187 5,676 )RUHLJQH[FKDQJHǠXFWXDWLRQDQGPDUNWRPDUNHW 5,009 4,384 Other 1,711 1,880 20,884 19,118 Deferred Tax Liabilities (Net) 32,784 10,721

Standalone Financial Statements (IGAAP) 147 Transformational Network

NotesWRnjQDQFLDOVWDWHPHQWV ii) Tax expense 10. Long Term Provisions (a) MAT credit includes income of ` 752 Mn (March (` Millions)   Ş LQFRPH RI ` 364 Mn), current tax includes income of ` 543 Mn (March 31, 2015 - As of As of ` Nil) and deferred tax includes income of ` 333 Particulars March 31, March 31, 0Q 0DUFKŞLQFRPHRI` 82 Mn) relating 2016 2015 to earlier years. Provision for HPSOR\HHEHQHǂWV (b) During the year ended March 31, 2015, the (refer note 39) Company had recognised additional tax charge of Provision for gratuity 1,213 1,137 ` 188 Mn on account of change in tax rate from 33.99% to 34.61% as proposed in the Finance Bill, Provision for long 89 86 2015. term service award 1,302 1,223 9. Other Long Term Liabilities Other provisions Provision for 960 746 (` Millions) asset retirement As of As of REOLJDWLRQ Particulars March 31, March 31, 2,262 1,969 2016 2015 Security deposit 2,602 2,722 The Company takes various premises on lease to install received# its telecom equipments. A provision is recognised Equipment supply    452 for the costs to be incurred for restoration of these SD\DEOH premises at the end of the lease period. It is expected that this provision will be utilised at the end of the lease Deferred revenue 16,628 15,535 period of the respective sites as per the respective lease /HDVHUHQWHTXDOLVDWLRQ 19,793 18,378 agreements. The movement of provision is given below: 2WKHUV 4,931 4,949 (` Millions) 43,954 42,036 For the year For the year # Security deposit received represents refundable security deposits ended ended received from subscribers on activation of connections granted thereto Particulars and are repayable on disconnection, net of outstanding, if any and March 31, March 31, security deposits received from channel partners. Trade receivables 2016 2016 are secured to the extent of the amount outstanding against individual subscribers by way of security deposit received from them.(refer note 22) 2SHQLQJEDODQFH 746 721 *Others as of March 31, 2016 includes ` 4,104 Mn (March 31, 2015 Addition (net) 214 25 `0Q SD\DEOHWR4XDOFRPP$VLD3DFLnjF3WH/LPLWHGWRZDUGV &ORVLQJEDODQFH 960 746 purchase of balance equity shares upon satisfaction of certain conditions as per the share purchase agreement for acquisition of erstwhile Airtel Broadband Services Private Limited (formerly know as Wireless Business Services Private Limited). (refer note 37(i))

11. Short-term Borrowings (` Millions) As of As of Particulars March 31, 2016 March 31, 2015 (Unsecured unless stated otherwise) Loans )URPEDQNV 3,975 6,259 Loans repayable on demand Cash Credit 3,024 - 6,999 6,259

148 Annual Report 2015-16 126-355 Bharti Airtel Limited 02-39 | Corporate Overview 40-125 | Statutory Reports Financial Statements

NotesWRnjQDQFLDOVWDWHPHQWV a. Details relating to interest rate and currency of short term borrowings

(` Millions) As of March 31, 2016 As of March 31, 2015 Rate of Rate of Currency of Borrowings Interest Amount Interest Amount (Weighted outstanding (Weighted outstanding average) average) INR 9.00% 3,024     USD 0.20% 3,975 0.43% 6,259 Total - 6,999 0.43% 6,259 b. The borrowings of ` 3,024 Mn as of March 31, 2016, comprising cash credit facilities from banks which are repayable on demand (March 31, 2015 ` Nil). Borrowing of ` 3,975 Mn outstanding as of March 31, 2016 are repayable in 2 half yearly installments (March 31, 2015 ` 6,259 Mn are repayable in 2 half yearly installments)

12. Trade Payables (` Millions) As of As of Particulars March 31, 2016 March 31, 2015 'XHVWR0LFUR(QWHUSULVHVDQG6PDOO(QWHUSULVHV 26 10 7UDGHSD\DEOHVRWKHUWKDQGXHVWR0LFUR(QWHUSULVHVDQG6PDOO 70,562 71,222 (QWHUSULVHV 70,588 71,232 * refer note 46 for details of dues to Micro Enterprises and Small Enterprises ** amount payable to related parties ` 14,648 Mn (March 31, 2015 ` 13,912 Mn) (refer note 47)

13. Other Current Liabilities (` Millions) As of As of Particulars March 31, 2016 March 31, 2015 Deferred revenue 29,972 29,246 (TXLSPHQWVXSSO\SD\DEOHV 65,807 53,664 3D\DEOHWRRWKHUV 52,909 37,149 Advance received from customers 1,294 1,445 &XUUHQWPDWXULWLHVRIORQJWHUPGHEW UHIHUQRWH 7,346 13,128 &XUUHQWPDWXULWLHVRIGHIHUUHGSD\PHQWOLDELOLWLHVWRZDUGVVSHFWUXP 25,428    (refer note 7) &XUUHQWPDWXULWLHVRIǟQDQFHOHDVHREOLJDWLRQV UHIHUQRWH 660 43 ,QWHUHVWDFFUXHGEXWQRWGXHRQERUURZLQJV 1,218 267 2WKHUWD[HVSD\DEOH 7,844 4,686 Unpaid dividends 55 35 2WKHUOLDELOLWLHV 1,071 1,012 193,604 140,675 * Payable to others and Other taxes payable include provision of ` 40,610 Mn as of March 31, 2016 and ` 27,843 Mn as of March 31, 2015 towards sub judice matters. (refer note 52)

Standalone Financial Statements (IGAAP) 149 Transformational Network

NotesWRnjQDQFLDOVWDWHPHQWV

14. Short Term Provisions (` Millions) As of As of Particulars March 31, 2016 March 31, 2015 3URYLVLRQIRUHPSOR\HHEHQHǂWV UHIHUQRWH Provision for gratuity 454 450 Provision for leave encashment 730 720 Total 1,184 1,170 Others Provision for income tax (net of advance tax of ` Nil (March 31,    498 2015 `139,277 Mn) and includes `1LO7'6UHFHLYDEOHSURYLGHG for (March 31, 2015 ` 583 Mn) # Proposed dividend (refer note 51) 5,436 8,874 Tax on dividend 1,107 1,807 Total 6,543 11,179 7,727 12,349

# Reversal of MAT credit utilisation of ` Nil (March 31, 2015 utilisation of ` 222 Mn) adjusted with Provision for tax.

15. Tangible Assets (` Millions) Particulars Leasehold Freehold Building Plant and Furniture Vehicles 2DŽFH Computer * Leasehold Total Land Land Equipment and Equipment improvements Fixtures Cost As of April 1, 2014 411 1,312 6,056 536,679 1,413 253 3,022 27,994 4,252 581,392 Additions  38 416 73,923 189 53 666 1,062 208 76,555 Disposals / adjustment    (5,501) (2) (25) (27) (36) (44) (5,635) 5HFODVVLǟFDWLRQ   (5) 17   1 (1)  12 As of March 31, 2015 411 1,350 6,467 605,118 1,600 281 3,662 29,019 4,416 652,324 Additions   46 123,848 127 21 661 1,879 119 126,701 Disposals / adjustment   (51) (8,762) (14) (9) (72) (8,102) (4) (17,014) 5HFODVVLǟFDWLRQ  (42) (171) 69 4       (3) 143  As of March 31, 2016 411 1,308 6,291 720,273 1,717 293 4,251 22,793 4,674 762,011 Accumulated Depreciation As of April 1, 2014 35  1,894 307,472 1,217 217 2,092 25,042 2,741 340,710 Charge for the year # 5    326 56,793 116 17 409 1,756 473 59,895 Disposals / adjustment          (4,708) (2) (19) (24) (35) (44) (4,832) 5HFODVVLǟFDWLRQ   3 (7) 2 1 (1) 3 (2) (1) As of March 31, 2015 40 - 2,223 359,550 1,333 216 2,476 26,766 3,168 395,772 Charge for the year # 4  330 66,093 115 18 485 1,838 397 69,280 Disposals / adjustment   (51) (6,433) (14) (3) (64) (8,072) 33 (14,604) 5HFODVVLǟFDWLRQ   (52) 1   3 8 40  As of March 31, 2016 44 - 2,450 419,211 1,434 231 2,900 20,540 3,638 450,448 Net Carrying Amount As of April 1, 2014 376 1,312 4,162 229,207 196 36 930 2,952 1,511 240,682 As of March 31, 2015 371 1,350 4,244 245,568 267 65 1,186 2,253 1,248 256,552 As of March 31, 2016 367 1,308 3,841 301,062 283 62 1,351 2,253 1,036 311,563

* With respect to assets where the Company has economic ownership, refer note 3.20. # Includes exceptional items of ` 2,925 Mn (March 31, 2015 ` Nil) with respect to Plant and Equipment (refer note 36)

150 Annual Report 2015-16 126-355 Bharti Airtel Limited 02-39 | Corporate Overview 40-125 | Statutory Reports Financial Statements

NotesWRnjQDQFLDOVWDWHPHQWV Millions) Millions) ` ` ( ( As of As of As of As of Net Block Net Block March 31, 2015 March March 31, 2016 March EHHQUHFODVVLnjHG 813 1,863 962 1,743 As of As of As of As of 2015 2016 March 31, March March 31, March 5HFODVVLǂFDWLRQ 5HFODVVLǂFDWLRQ (1) Mn). `     'LVSRVDOV 'LVSRVDOV 12 Mn and adjustment adjustment ` for for Charge Charge Charge Charge the year the the year the 6,017 Mn). As of As of As of As of 2015 2014 ` April 1, 1LOJURVVEORFNDQGDFFXPXODWHGGHSUHFLDWLRQUHVSHFWLYHO\KDV April 1,

` Nil and ` As of As of As of As of 2015 2016 2,676 667 146 2,705 813 149 March 31, March March 31, March RIDVVHWV 3,047 Mn ( March 31, 2015 3,047 Mn ( March 5HFODVVLǂFDWLRQ 5HFODVVLǂFDWLRQ `   Gross BlockGross BlockGross Depreciation Depreciation Net Block 'LVSRVDOV 'LVSRVDOV adjustment adjustment    Additions Additions 2015 2014 2,676 2,676 29 April 1, April 1, Building on land leasehold Particulars As of Particulars As of Building on land leasehold from intangible assets to tangible assets during the year ended March 31, 2016 (March 31, 2015 31, 2016 (March ended March year during the tangible assets to intangible assets from a. Building includes building on leashold land: E 5HFODVVLnjFDWLRQLQFOXGHVUHFODVVRIDVVHWVEHWZHHQFDWHJRU\ d. lease. on operating given and assets owned assets jointly ARO, 10, 41 and 48 for note Refer c. includes goods in transit in progress Capital work

Standalone Financial Statements (IGAAP) 151 Transformational Network

NotesWRnjQDQFLDOVWDWHPHQWV

16. i) Intangible Assets (` Millions) Software* Bandwith Licenses Other Total Particulars (including acquired Spectrum) intangible Cost As of April 1, 2014 13,725 20,713 179,913 - 214,351 Additions 1,239 3,485 128,618 2,165 135,507 'LVSRVDOVDGMXVWPHQW    (1,300)    (1,300) 5HFODVVLǟFDWLRQ  (12)       (12) As of March 31, 2015 14,964 24,186 307,231 2,165 348,546 Additions 3,086 1,665 353,015    357,766 'LVSRVDOVDGMXVWPHQW  (4,249)    (9,403)    (13,652) 5HFODVVLǟFDWLRQ      As of March 31, 2016 13,801 25,851 650,843 2,165 692,660 Accumulated Amortisation As of April 1, 2014 9,671 7,520 39,060  56,251 Charge for the year 2,301 1,506 11,462 433 15,702 'LVSRVDOVDGMXVWPHQW   (1,300)    (1,300) 5HFODVVLǟFDWLRQ  1       1 As of March 31, 2015 11,972 9,027 49,222 433 70,654 Charge for the year 2,408 1,640 24,594 434 29,076 'LVSRVDOVDGMXVWPHQW  (4,249)    (9,403)    (13,652) 5HFODVVLǟFDWLRQ      As of March 31, 2016 10,131 10,667 64,413 867 86,078 Net Carrying Amount As of April 1, 2014 4,054 13,193 140,853 - 158,100 As of March 31, 2015 2,992 15,159 258,009 1,732 277,892 As of March 31, 2016 3,670 15,184 586,430 1,298 606,582

* With respect to assets where the Company has economic ownership, refer note 3.20. *URVVEORFNDQGDPRUWLVDWLRQRIOLFHQVHV LQFOXGLQJVSHFWUXP DQGVRIWZDUHKDYHEHHQRNjVHWXSRQEHLQJIXOO\DPRUWLVHG a. Weighted average remaining amortisation period of F 5HFODVVLnjFDWLRQ LQFOXGHV UHFODVV RI DVVHWV EHWZHHQ license as of March 31, 2016 and March 31, 2015 is category of assets. ` Nil and ` Nil gross block and 17.53 years and 17.37 years, respectively. accumulated depreciation respectively, has been UHFODVVLnjHG IURP LQWDQJLEOH DVVHWV WR WDQJLEOH DVVHWV b. Borrowing cost capitalised during the year ended during the year ended March 31, 2016 (March 31, March 31, 2016 was ` 1,937 Mn (March 31, 2015 2015 ` 12 Mn and ` (1) Mn). ` 1,083 Mn). The Company capitalises borrowing cost in the Intangible assets under development. ii) Intangible Assets Under Development Intangible assets under development includes the amount of spectrum allotted to the Company and related costs LQFOXGLQJERUURZLQJFRVWVFDSLWDOLVHGXQGHU$6ŞŠ%RUURZLQJ&RVWVš LIDQ\IRUZKLFKVHUYLFHVDUH\HWWREHUROOHGRXW

152 Annual Report 2015-16 126-355 Bharti Airtel Limited 02-39 | Corporate Overview 40-125 | Statutory Reports Financial Statements

NotesWRnjQDQFLDOVWDWHPHQWV

17. Non-current Investments Trade Investments (at cost) Investment in Equity Instruments (unquoted unless otherwise stated) (` Millions) Number of Number of Shares Particulars As of As of Shares March 31, 2015 March 31, March 31, March 31, 2016 2016 2015 ,QYHVWPHQWLQ6XEVLGLDULHV 175,000,000 175,000,000 %KDUWL+H[DFRP/LPLWHG(TXLW\6KDUHVRI 5,718 5,718 ` 10 each 100,000 100,000 %KDUWL$LUWHO6HUYLFHV/LPLWHG(TXLW\6KDUHV 1 1 of ` 10 each 300 300 %KDUWL$LUWHO 86$ /LPLWHG(TXLW\6KDUHVRI 509 509 USD .0001 each 123,663 123,663 %KDUWL$LUWHO 8. /LPLWHG(TXLW\6KDUHVRI 101 101 GBP 1 each 4,959,480 4,959,480 %KDUWL$LUWHO +RQJNRQJ /LPLWHG(TXLW\ 26 26 Shares of HKD 1 each    75,100 %KDUWL$LUWHO &DQDGD /LPLWHG(TXLW\    3 Shares of CAD 1 each (dissolved during the year) 52,227,896 52,227,896 1HWZRUNLL/LPLWHG(TXLW\6KDUHVRI86' 7,925 7,925 1 each 1,360,000,000 1,360,000,000 %KDUWL,QIUDWHO/LPLWHG(TXLW\6KDUHVRI` 10 74,511 74,511 each (Quoted) 9,690,000 9,690,000 %KDUWL7HOHPHGLD/LPLWHG(TXLW\6KDUHVRI 115 115 ` 10 each 27,146,471,771 26,126,080,053 %KDUWL$LUWHO/DQND 3ULYDWH /LPLWHG(TXLW\ 13,567 13,096 6KDUHVRI6/5HDFK UHIHUQRWH YLL 1 1 Bharti Airtel Holdings (Singapore) Pte 15,475 15,475 /LPLWHG(TXLW\6KDUHVRI6*'HDFK 338,642,771 338,642,771 Bharti Airtel Holdings (Singapore) Pte /LPLWHG(TXLW\6KDUHVRI86'HDFK 3,384,970,000 1,699,970,000 Bharti Airtel International (Mauritius) 207,725 97,570 /LPLWHG(TXLW\6KDUHVRI86'HDFK (refer note 37 (iv)) 396,000,000 290,000,000 $LUWHO0&RPPHUFH6HUYLFHV/LPLWHG(TXLW\ 3,960 2,900 Shares of ` 10 each (refer note 37 (v)) 593,739,000 593,739,000 Bharti International (Singapore) Pte. 33,035 33,035 /LPLWHG(TXLW\6KDUHVRI86'HDFK 908,443,919 908,443,919 Bharti Airtel International (Netherlands) 67,354 67,354 %9(TXLW\6KDUHVRI(852HDFK 89,230,796 89,230,796 7HOHVRQLF1HWZRUNV/LPLWHG(TXLW\6KDUHV 91 91 of ` 10 each 5,050,000 5,050,000 1[WUD'DWD/LPLWHG(TXLW\6KDUHVRI` 10 51 51 each     $LUWHO%URDGEDQG6HUYLFHV3ULYDWH/LPLWHG    65,270 Equity Shares of ` 10 each (merged during the year with the Company) (refer note 37 (i)) 21,850,000  ,QGR7HOHSRUWV/LPLWHG IRUPHUO\NQRZQDV 285    %KDUWL7HOHSRUWV/LPLWHG (TXLW\6KDUHVRI ` 10 each (refer note 37(vii))

Standalone Financial Statements (IGAAP) 153 Transformational Network

NotesWRnjQDQFLDOVWDWHPHQWV

(` Millions) Number of Number of Shares Particulars As of As of Shares March 31, 2015 March 31, March 31, March 31, 2016 2016 2015 50,000 50,000 :\QN/LPLWHG(TXLW\6KDUHVRI` 10 each 1 1 Investment in Joint Ventures 800,000 800,000 %ULGJH0RELOH37(/LPLWHG(TXLW\6KDUHVRI 34 34 USD 1 each 1,000,000 1,000,000 )LUH)O\1HWZRUNV/LPLWHG(TXLW\6KDUHVRI 10 10 ` 10 each Investment in Associates  11,270,000 ,QGR7HOHSRUWV/LPLWHG IRUPHUO\NQRZQDV    113 %KDUWL7HOHSRUWV/LPLWHG (TXLW\6KDUHVRI ` 10 each (refer note 37(vii)) Investment in other equity instrument 100,000 100,000 ,))&2.LVVDQ6DQFKDU/LPLWHG(TXLW\ 50 50 Shares of ` 10 each 430,544 383,959 Other investments (at cost) ,QYHVWPHQWLQ*RYHUQPHQW6HFXULWLHV 2 2 1DWLRQDO6DYLQJV&HUWLǟFDWH /HVV3URYLVLRQIRUGLPLQXWLRQLQYDOXHRI 285 3 LQYHVWPHQWV 430,261 383,958 Aggregate value of Unquoted Investments 356,035 309,450 Aggregate value of Quoted Investments 74,511 74,511 Aggregate Market value of Quoted 519,452 523,600 Investments Aggregate provision for diminution in value 285 3 of investments * During the year ended March 31, 2016, the Company has made a provision of `285 Mn due to decline other than temporary in the value of investment in Indo Teleports Limited (formerly Known as Bharti Teleports Limited).

154 Annual Report 2015-16 126-355 Bharti Airtel Limited 02-39 | Corporate Overview 40-125 | Statutory Reports Financial Statements

NotesWRnjQDQFLDOVWDWHPHQWV

18. Long-term Loans and Advances (` Millions) Particulars As of March 31, 2016 As of March 31, 2015 Unsecured, considered good unless stated otherwise Capital Advances &RQVLGHUHGJRRG  3,989 77 &RQVLGHUHGGRXEWIXO 144 184 /HVV3URYLVLRQIRUGRXEWIXODGYDQFHV (144) 3,989 (184) 77 Security Deposit &RQVLGHUHGJRRG  10,691 10,015 &RQVLGHUHGGRXEWIXO 810 525 /HVV3URYLVLRQIRUGRXEWIXOGHSRVLW (810) 10,691 (525) 10,015 /RDQVDQGDGYDQFHVWRUHODWHGSDUWLHV UHIHUQRWH  22,511 39,640 MAT Credit Entitlement# 56,279 38,649 93,470 88,381 * Includes advance payment of `0Q 0DUFKŞ` Nil) towards spectrum. ** Includes security deposit/advance with/to related parties `0Q 0DUFKŞ` 6,950 Mn) (refer note 48). # MAT credit utilisation of `Nil (March 31, 2015 reversal of MAT credit utilisation of ` 222 Mn) adjusted with Provision for tax.

19. Other Non-current Assets (` Millions) As of As of Particulars March 31, 2016 March 31, 2015 Unsecured, considered good unless stated otherwise Bank deposits and margin money (refer note 23) 588 529 $GYDQFHV  22,669 16,959 Unamortised upfront fees and deferred premium 1,972 1,627 7UDGHUHFHLYDEOHQRQFXUUHQW 260 106 25,489 19,221 * Advances represent payments made to various Government authorities under protest and are disclosed net of provision of ` 34,586 Mn (March 31, 2015 ` 27,362 Mn) [refer note 52]

20. Current Investments (` Millions) As of As of Particulars March 31, 2016 March 31, 2015 Current investments (at lower of cost and fair market value) Investment in Mutual Funds    47,194 Investment in Deposits and Bonds 8 17 8 47,211 Aggregate value of Unquoted Investments 8 17 Aggregate value of Quoted Investments    47,194 Aggregate Market Value of Quoted Investments  47,550 Aggregate provision for diminution in value of investments    

Standalone Financial Statements (IGAAP) 155 Transformational Network

NotesWRnjQDQFLDOVWDWHPHQWV

Details of investments are provided below: (` Millions, except as stated otherwise) Particulars As of March 31, 2016 As of March 31, 2015 (No. of (No. of Amount Amount Units) Units) Investment in Mutual Funds (Quoted) $[LV/LTXLG)XQG*URZWK       650,426 1,000 / 7/LTXLG)XQG*URZWK       1,104,487 2,105 +')&/LTXLG)XQG3UHPLXP3ODQ*URZWK       31,886,747 872 HDFC Cash management Fund saving Plan Growth       82,662,081 2,400 ,&,&,3UXGHQWLDO,QVWLWXWLRQDO/LTXLG3ODQ6XSHU       14,605,888 3,000 Institutional Growth ,')&&DVK)XQG*URZWK 5HJXODU3ODQ       2,647,900 4,453 -0+LJK/LTXLGLW\)XQG*URZWK2SWLRQ       117,989,703 4,466 -30RUJDQ,QGLD/LTXLG)XQG6XSHU,QVWLWXWLRQDO       69,186,380 1,250 Growth .RWDN)ORDWHU6KRUW7HUP*URZWK       1,812,276 4,120 .RWDN/LTXLG6FKHPH3ODQ$*URZWK       343,026 966 3UDPHULFD/LTXLG)XQG*URZWK       412,450 609 5HOLDQFH/LTXLGLW\)XQG*URZWK2SWLRQ       242,935 508 5HOLDQFH/LTXLG&DVK3ODQ*URZWK2SWLRQ)XQG       293,865 1,000 5HOLJDUH/LTXLG)XQG6XSHU,QVWLWXWLRQDO*URZWK       943,091 1,800 7DWD/LTXLG)XQG3ODQ$*URZWK       1,016,663 2,600 7DWD0RQH\0DUNHW)XQG3ODQ$*URZWK       1,742,473 3,801 6%,3UHPLHU/LTXLG)XQG'LUHFW3ODQ*URZWK       454,995 1,000 SBI Magnum Insta Cash Fund       573,778 1,770 3ULQFLSDO&DVK0DQDJHPHQW5HJXODU3ODQ*URZWK       1,717,915 2,311 Sundram Money Fund       56,132,271 1,650 Taurus Mutual Fund       1,903,627 2,835 Franklin India Treasury Management Account       400,595 828 /,&12085$0)/LTXLG)XQG*URZWK3ODQ       733,879 1,850 Total --389,457,451 47,194 Investment in Deposits and Bonds (Unquoted) India Innovation Fund 76 8 70 7 7.30% REC Secured Bonds 2015       10 10 Total 76 8 80 17

21. Inventories (valued at lower of cost and net realisable value) (` Millions) As of As of Particulars March 31, 2016 March 31, 2015 Stock-In-Trade* 53 94 Total 53 94 * Net of provision for diminution in value ` 659 Mn (March 31, 2015 ` 483 Mn)

156 Annual Report 2015-16 126-355 Bharti Airtel Limited 02-39 | Corporate Overview 40-125 | Statutory Reports Financial Statements

NotesWRnjQDQFLDOVWDWHPHQWV

22. Trade Receivables (` Millions) Particulars As of March 31, 2016 As of March 31, 2015 Unsecured, unless stated otherwise Receivables outstanding for a period exceeding six months from the date they are due for payment Considered good 518 2,522 &RQVLGHUHGGRXEWIXO 14,271 6,244 /HVV3URYLVLRQIRUGRXEWIXOUHFHLYDEOHV (14,271) 518 (6,244) 2,522 Other Considered good 37,277 30,549 &RQVLGHUHGGRXEWIXO 3,910 9,985 /HVV3URYLVLRQIRUGRXEWIXOUHFHLYDEOHV (3,910) 37,277 (9,985) 30,549 /HDVHUHFHLYDEOHǟQDQFHOHDVH 135 39 37,930 33,110 Refer note 9 on security deposit. Includes amount receivable from related party ` 1,110 Mn (March 31, 2015 ` 2,224 Mn) (refer note 47)

23. Cash and Bank Balances (` Millions) As of As of Particulars March 31, 2016 March 31, 2015 Cash and cash equivalents %DODQFHVZLWKEDQNV 2QFXUUHQWDFFRXQWV 240 878 %DQNGHSRVLWVZLWKRULJLQDOPDWXULW\RIPRQWKVRUOHVV    2,700 2QXQSDLGGLYLGHQGDFFRXQW 55 35 Cheques on hand 166 222 Cash on hand 60 52 521 3,887 Other bank balances Bank deposits with remaining maturity of less than 12 months       Bank deposits with remaining maturity of more than 12 months 7 6 Margin money deposit 581 523 588 529 /HVV$PRXQWGLVFORVHGXQGHUQRQFXUUHQWDVVHWV UHIHUQRWH  588 529 Total 521 3,887

Standalone Financial Statements (IGAAP) 157 Transformational Network

NotesWRnjQDQFLDOVWDWHPHQWV

24. Short-term Loans and Advances (` Millions) As of As of Particulars March 31, 2016 March 31, 2015 Unsecured, considered good unless stated otherwise /RDQVDQGDGYDQFHVWRUHODWHGSDUWLHV 43,376 40,552 (refer note 48) $GYDQFHVUHFRYHUDEOHLQFDVKRUNLQG Considered good 15,045 6,863 &RQVLGHUHGGRXEWIXO 1,347 2,233 /HVV3URYLVLRQIRUGRXEWIXODGYDQFHV (1,347) 15,045 (2,233) 6,863 Balances with customs, excise and other 9,179 6,527 authorities Advance Tax [net of provision for tax of 829 ` 160,596 Mn (March 31, 2015 ` Nil ) and net of `0Q7'6UHFHLYDEOHSURYLGHG for (March 31,2015 ` Nil)] 68,429 53,942

25. Other Current Assets (` Millions) As of As of Particulars March 31, 2016 March 31, 2015 Unsecured, considered good unless stated otherwise 8QELOOHGUHYHQXH 5,079 7,490 Interest accured on loan given to related parties (refer note 48) 1,407 1,154 Unamortised upfront fees and deferred premium 604 650 Others 26 26 7,116 9,320

26. Guarantees and Contingent Liabilities (i) Total Guarantees outstanding as of March 31, compliance with the applicable accounting 2016 amounting to ` 99,911 Mn (March 31, 2015 standards. Ş` 101,379 Mn) have been issued by banks and Corporate Guarantees outstanding as of March njQDQFLDO LQVWLWXWLRQV RQ EHKDOI RI WKH &RPSDQ\ 31, 2016 amounting to ` 798,800 Mn (March 31, 7KHVH JXDUDQWHHV LQFOXGH FHUWDLQ njQDQFLDO EDQN 2015 - ` 857,497 Mn) have been given to banks, guarantees which have been given for subjudice njQDQFLDOLQVWLWXWLRQVDQGWKLUGSDUWLHVRQEHKDOIRI matters and in compliance with licensing Group Companies at no cost to the latter. conditions, the amount with respect to these (ii) Claims against the Company not acknowledged have been disclosed under capital commitments, as debt (excluding cases where the possibility of contingencies and liabilities, as applicable, in DQ\RXWǍRZLQVHWWOHPHQWLVUHPRWH 

158 Annual Report 2015-16 126-355 Bharti Airtel Limited 02-39 | Corporate Overview 40-125 | Statutory Reports Financial Statements

NotesWRnjQDQFLDOVWDWHPHQWV a) Claims against the Company not acknowledged as debt: (` Millions) As of As of Particulars March 31, 2016 March 31, 2015 (i) Taxes, Duties and Other demands (under adjudication / appeal / dispute)   6DOHV7D[DQG6HUYLFH7D[ 11,259 11,120   ,QFRPH7D[ 16,282 16,335   &XVWRPV'XW\ 4,254 4,254   (QWU\7D[ 5,061 4,221   6WDPS'XW\ 404 411   0XQLFLSDO7D[HV 122 122   'R7GHPDQGV 4,809 4,766   2WKHUPLVFHOODQHRXVGHPDQGV 818 59 LL  &ODLPVXQGHUOHJDOFDVHVLQFOXGLQJDUELWUDWLRQPDWWHUV   $FFHVV&KDUJHV3RUW&KDUJHV 8,196 6,952   2WKHUV 610 562 Total 51,815 48,802 * in addition, refer note (g) (v), (g) (vi), (g) (vii) and (g) (viii) below for DoT matters. Unless otherwise stated below, the management based on legal advice, believes that, the outcome of these contingencies will be favorable and that a loss is not probable.

E  6DOHVWD[VAT and Service tax c) Income Tax  6DOHVWD[9$7 Income tax demands under appeal mainly include Claims for sales tax / VAT as of March 31, 2016 comprise WKH DSSHDOV njOHG E\ WKH &RPSDQ\ EHIRUH YDULRXV cases relating to: appellate authorities against the disallowance by the income tax authorities of certain expenses being i. the appropriateness of the declarations made by the claimed, non-deduction of tax at source with respect Company under the relevant sales tax / VAT legislations to dealer’s/distributor’s margin and non-deduction of which was primarily procedural in nature; tax on payments to international operators for access ii. the applicable sales tax / VAT on disposals of certain charges, etc. property and equipment items; d) Custom Duty iii. lease circuit / broadband connectivity services; The Custom authorities, in some States, demanded iv. the applicability of sales tax / VAT on sale of SIM cards, custom duty for the imports of special software on the SIM replacements, VAS, Handsets and Modem rentals; ground that this would form part of the hardware on which it was pre-loaded at the time of import. The view v. In the State of Jammu & Kashmir, the Company has of the Company is that such imports should not be disputed the levy of General Sales Tax / VAT on its subject to any custom duty as it would be an operating telecom services and towards which the Company has software exempt from any custom duty. In response received a stay from the Hon’ble Jammu & Kashmir WR WKH DSSOLFDWLRQ njOHG E\ WKH &RPSDQ\ WKH +RQšEOH High Court. The demands received to date have been CESTAT has passed an order in favour of the custom disclosed under contingent liabilities. DXWKRULWLHV 7KH &RPSDQ\ KDV njOHG DQ DSSHDO ZLWK Service Tax Hon’ble Supreme Court against the CESTAT order. Service tax demands as of March 31, 2016 relate to: e) Entry Tax i. cenvat claimed on tower and related material; In certain States an entry tax is levied on receipt of ii. levy of service tax on SIM cards; material from outside the State. This position has been challenged by the Company in the respective iii. cenvat credit disallowed for procedural lapses and 6WDWHV RQ WKH JURXQGV WKDW WKH VSHFLnjF HQWU\ WD[ LV inadmissibility of credit; XOWUDYLUHV WKH &RQVWLWXWLRQ &ODVVLnjFDWLRQ LVVXHV KDYH iv. disallowance of cenvat credit used in excess of 20% also been raised whereby, in view of the Company, the limit; and material proposed to be taxed is not covered under the VSHFLnjFFDWHJRU\ v. employee talk time.

Standalone Financial Statements (IGAAP) 159 Transformational Network

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I  $FFHVVFKDUJHV ,QWHUFRQQHFW8VDJH&KDUJHV  (AGR) between Company and DoT and interest thereon, Port charges which the Company has obtained stay from appropriate (i) Interconnect charges are based on the Interconnect Hon’ble High Courts and TDSAT. TDSAT has pronounced Usage Charges (IUC) agreements between the its judgement on April 23, 2015 thereby setting aside the operators although the IUC rates are governed by the impugned demands raised by DoT and directed to rework IUC guidelines issued by Telecom Regulatory Authority the license fees payable in light of the judgement and of India (TRAI). BSNL has raised a demand requiring to issue fresh demands. Pursuant thereto Union of India the Company to pay the interconnect charges at the (UOI) and the Company (on limited heads of revenue) rates contrary to the regulations issued by TRAI. The DORQJZLWKYDULRXVRWKHURSHUDWRUVKDYHnjOHGDSSHDOV &RPSDQ\njOHGDSHWLWLRQDJDLQVWWKDWGHPDQGZLWKWKH cross appeals before the Hon’ble Supreme Court of India. Telecom Disputes Settlement and Appellate Tribunal The Hon’ble Supreme Court of India issued notice in the (‘TDSAT’) which passed a status quo order, stating that appeals and has declined to grant any interim relief to only the admitted amounts based on the regulations UOI. The appeals tagged together came up for hearing ZRXOGQHHGWREHSDLGE\WKH&RPSDQ\7KHnjQDORUGHU on February 29, 2016 and the Supreme Court allowed was also passed in our favour. BSNL has challenged the DoT to raise demands as per its understanding with the same in Hon’ble Supreme Court. However, no stay has condition that the demands raised will not be enforced been granted. WLOOWKHnjQDOGHFLVLRQRIWKH6XSUHPH&RXUW7KHPDWWHULV (ii) In another proceeding with respect to Distance Based likely to be listed for hearing after 8 weeks. DoT further Carriage Charges, the Hon’ble TDSAT in its order dated had issued LF demand cum show cause notice for May 21, 2010, allowed BSNL appeal praying to recover njQDQFLDO\HDUGDWHG-XQHZKLFKKDV GLVWDQFHEDVHGFDUULDJHFKDUJHV2QnjOLQJRIDSSHDOE\ been challenged before TDSAT. TDSAT vide an interim the telecom operators, Hon’ble Supreme Court asked order dated August 17, 2015 had directed DoT not to the telecom operators to furnish details of distance- invoke any bank guarantees for realisation of impugned based carriage charges owed by them to BSNL. Further, demand amounting to ` 12,316 Mn and vide its order in a subsequent hearing held on August 30, 2010 dated November 6, 2015, TDSAT has disposed of the Hon’ble Supreme Court sought the quantum of amount matter after recording the statement made by UOI that in dispute from all the operators as well as BSNL and the demand notice should be construed as an advance directed both BSNL and private telecom operators to notice, which the DoT does not intend to enforce until furnish Call Data Records (CDRs) to TRAI. The CDRs the appeals against Tribunal’s AGR judgement pending have been furnished to TRAI. EHIRUHWKH+RQšEOH6XSUHPH&RXUWLVnjQDOO\GLVSRVHGRI (iii) In another issue with respect to Port Charges, in 2001, TRAI had prescribed slab based rate of port charges iii) DoT demands also include the contentious matters in payable by private operators which were subsequently UHVSHFWRIVXEVFULEHUYHULnjFDWLRQQRUPVDQGUHJXODWLRQV reduced in the year 2007 by TRAI. On BSNL’s appeal, including validity of certain documents allowed as Proof TDSAT passed it’s judgement in favour of BSNL, of Address / Identity in certain mobility circles. and held that the pre-2007 rates shall be applicable iv) DoT demands also include penalty for alleged failure to prospectively from May 29, 2010. The rates were meet the procedural requirement for submission of EMF further revised downwards by TRAI in 2012. On BSNL’s UDGLDWLRQVHOIFHUWLnjFDWLRQ appeal, TDSAT declined to stay the revised regulation. The above stated matters are being contested by the Further, the Hon’ble Supreme Court vide its judgement Company and the Company, based on legal advice, believes dated December 6, 2013, passed in another matter, that it has complied with all license related regulations as and held that TRAI is empowered to issue regulations on when prescribed and does not expect any loss relating to any matter under Section 11(1)(b) of TRAI Act and the same cannot be challenged before TDSAT. Accordingly, these matters. all matters raised before TDSAT, wherein TDSAT In addition to the amount disclosed in the table above, the had interfered in Appeal and passed judgements, contingent liability on DoT matters includes the following: GR QRW KDYH DQ\ VLJQLnjFDQFH +RZHYHU SDUWLHV FDQ njOH :ULW 3HWLWLRQV EHIRUH +LJK &RXUW FKDOOHQJLQJ v) Post the Hon’ble Supreme Court Judgement on October such regulations. 11, 2011 on components of Adjusted Gross Revenue for computation of license fee, based on the legal The Company believes that the above said judgement advice, the Company believes that the realised and has further strengthened the position of the Company unrealised foreign exchange gain should not be included on many issues with respect to regulations which had in Adjusted Gross Revenue (AGR) for computation been in its favour and impugned before TDSAT. of license fee thereon. Accordingly, the license fee on g) Department of Telecommunications (‘DoT’) such foreign exchange gain has not been provided demands LQ WKH njQDQFLDO VWDWHPHQWV $OVR GXH WR DPELJXLW\ RI i) DoT demands include demands raised for contentious LQWHUSUHWDWLRQ RI ŠIRUHLJQ H[FKDQJH GLNjHUHQFHVš WKH matters relating to computation of license fees and OLFHQVHIHHLPSDFWRQVXFKH[FKDQJHGLNjHUHQFHVLVQRW spectrum charges. TXDQWLnjDEOH DQG KDV QRW EHHQ LQFOXGHG LQ WKH WDEOH above. Further, as per the Order dated June 18, 2012 ii) DoT demands include alleged short payment of license IHH IRU njQDQFLDO \HDU  DQG  GXH WR Hon’ble High Court of Kerala, stay has been obtained, GLNjHUHQFHRILQWHUSUHWDWLRQRI$GMXVWHG*URVV5HYHQXH wherein the licensee can continue making the payment

160 Annual Report 2015-16 126-355 Bharti Airtel Limited 02-39 | Corporate Overview 40-125 | Statutory Reports Financial Statements

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as was being done throughout the period of license on i) Bharti Mobinet Limited (‘BMNL’) Litigation telecom activities. Further as stated in point (iii) above, The Company is in litigation in various proceedings TDSAT has pronounced its judgement on April 23, 2015, at various stages and in various forums with DSS wherein it has stated that any gain or loss due to foreign Enterprises Private Limited (DSS) (which had 0.34 per H[FKDQJHǍXFWXDWLRQGRHVQRWKDYHDQ\EHDULQJRQWKH cent equity interest in erstwhile Bharti Cellular Limited license fees and directing DoT to rework and issue fresh %&/  RQ FODLPV RI VSHFLnjF SHUIRUPDQFH LQ UHVSHFW demands to the operators. The next date of hearing is of alleged agreements to sell the equity interest of nj[HGIRU-XQHDW.HUDOD+LJK&RXUW DSS in erstwhile BMNL to the Company. In respect of vi) On January 8, 2013, DoT issued a demand on the one of the transactions with respect to purchase of Company for ` 51,353 Mn towards levy of one time 10.5% share of DSS in Skycell by the Company, Crystal spectrum charge. The demand includes a retrospective Technologies Private Limited (‘Crystal’), an intermediary, charges of ` 8,940 Mn for holding GSM Spectrum initiated arbitration proceedings against the Company beyond 6.2 Mhz for the period from July 1, 2008 to demanding ` 195 Mn regarding termination of its December 31, 2012 and also a prospective charge of appointment as a consultant to negotiate with DSS for ` 42,413 Mn for GSM spectrum held beyond 4.4 Mhz the sale of DSS stake in erstwhile BMNL to the Company. for the period from January 1, 2013, till the expiry of the The Ld. Arbitrator partly allowed the award for a sum of initial terms of the respective licenses. ` 31 Mn, 9% interest from period October 3, 2001 till date of award (i.e May 28, 2009) and a further 18% In the opinion of the Company, inter-alia, the above interest from date of award to date of payment. The GHPDQGDPRXQWVWRDOWHUDWLRQRInjQDQFLDOWHUPVRIWKH Company appealed in Hon’ble High Court against the OLFHQVHVLVVXHGLQWKHSDVW%DVHGRQDSHWLWLRQnjOHGE\ award. The Single Judge while dismissing the appeal the Company, the Hon’ble High Court of Bombay, vide reduced the rate of interest from 18% to 12%. The its order dated January 28, 2013, has directed the DoT matter was appealed thereafter to Division Bench and to respond and not to take any coercive action until the njQDOO\ WR +RQšEOH 6XSUHPH &RXUW ZKHUHLQ WKH PDWWHU QH[WGDWHRIKHDULQJ7KH'R7KDVnjOHGLWVUHSO\DQGWKH has been admitted on the condition that the amount next date of hearing is awaited. as per Single Judge Order shall be secured in Hon’ble vii) DoT had issued notices to the Company as well Supreme Court, which has been done. The matter will as various other Telecom Service Providers to stop now come up in due course. provision of services under 3G Intra Circle Roaming (ICR) arrangements in the service areas where such service  '66KDVDOVRnjOHGDVXLWDJDLQVWDSUHYLRXVVKDUHKROGHU providers had not been allocated 3G Spectrum. DoT of BMNL and the Company challenging the transfer of DOVROHYLHGDnjQDQFLDOSHQDOW\RI` 3,500 Mn. Company shares by that shareholder to the Company. The matter contested the notices and upon various rounds of is to be reheard. litigations, ultimately, the TDSAT, vide its judgement DSS has also initiated arbitration proceedings seeking dated April 29, 2014, held 3G ICR arrangements to be direction for restoration of the cellular license and the competent and compliant with the licensing conditions entire business associated with it including all assets and quashed the notice imposing penalty. The DoT has of BCL/BMNL to DSS or alternatively, an award for FKDOOHQJHGWKHRUGHURI7'6$7LQDQDSSHDOnjOHGEHIRUH damages. An interim stay was granted by the Hon’ble the Hon’ble Supreme Court, which has been admitted. Delhi High Court with respect to the commencement of However, Hon’ble Supreme Court has refused to grant arbitration proceedings. The stay was made absolute. any interim order during the pendency of the appeal. The case is yet to be listed for hearing in the Hon’ble DSS Enterprises has preferred an SLP challenging Supreme Court. the order dated May 12, 2005 passed by the Hon’ble Delhi High Court in Company Appeal No.30 of 2004. viii) The Company has not been able to meet its roll out The Company Appeal was dismissed by Hon’ble Delhi obligations fully due to certain non-controllable factors High Court on the grounds of non-disclosure of material like Telecommunication Engineering Center testing, facts before the Hon’ble High Court. This appeal has Standing Advisory Committee of Radio Frequency been admitted by the Hon’ble Supreme Court and our Allocations clearance, non availability of spectrum, etc. &RXQWHU $ǎGDYLW KDV EHHQ njOHG PDWWHU LV WR EH QRZ The Company has received show cause notices from listed for hearing in due course. 'R7IRURILWVFLUFOHVIRUQRQIXOnjOOPHQWRILWVUROORXW obligations and these have been replied to. DoT has The liability, if any, of the Company arising out of reviewed and revised the criteria and there has been above litigation cannot be currently estimated. Since no further development on this matter since then. the amalgamation of BCL and erstwhile Bharti Infotel Limited (BIL) with the Company, DSS, a minority h) Others shareholder in BCL, had been issued 2,722,125 equity Others mainly include disputed demands for shares of ` 10 each (5,444,250 equity shares of consumption tax, disputes before consumer forum and ` 5 each post split) bringing the share of DSS in the with respect to labour cases and a potential claim for Company down to 0.136% as of March 31, 2016. liquidated damages.

Standalone Financial Statements (IGAAP) 161 Transformational Network

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27. Capital and Other Commitments Limited, Bharti Telemedia Limited, Airtel M Commerce Estimated amount of contracts to be executed on Services Limited, Bharti Teleports Limited, Nxtra capital account and not provided for (net of advances) Data Limited, Bharti Airtel (USA) Limited, Bharti Airtel ` 45,115 Mn as of March 31, 2016 (March 31, 2015 - (Hongkong) Limited, Bharti Airtel (Japan) Limited, Bharti ` 274,832 Mn) (including ` 10,970 Mn (March 31, 2015 Airtel Lanka (Private) Limited, Bharti Airtel Holdings Ş` 244,040 Mn) towards spectrum (refer note 37(ii)). (Singapore) Pte Limited including its subsidiaries and 28. 7KH &RPSDQ\ KDV XQGHUWDNHQ WR SURYLGH njQDQFLDO Bharti Airtel International (Netherlands) B.V. including support, to its subsidiaries, namely, Bharti Airtel Services its subsidiaries.

29. Revenue from Operations (` Millions) For the year ended For the year ended Particulars March 31, 2016 March 31, 2015 Service Revenue 9RLFH GDWDUHYHQXH 439,691 428,264 2WKHUV 162,926 126,604 Sale of products 385 96 603,002 554,964  2WKHUVLQFOXGHUHYHQXHIURP9$6VHUYLFHVnj[HGPRQWKO\VXEVFULSWLRQ%DQGZLGWKVHUYLFHVDQG96$7HWF

30. Other Income (` Millions) For the year ended For the year ended Particulars March 31, 2016 March 31, 2015 ,QWHUHVWLQFRPHRQEDQNGHSRVLWV 2,083 867 Interest income on loan given to related parties 732 529 'LYLGHQGLQFRPHIURPVXEVLGLDULHV 9,470 13,700 1HWJDLQRQVDOHRILQYHVWPHQWV  173 34,698 Net foreign exchange gain 587 278 2WKHUQRQRSHUDWLQJLQFRPH /HDVHUHQWDOV 236 236 /LDELOLWLHVSURYLVLRQZULWWHQEDFN 145 338 Miscellaneous income 1,430 1,284 14,856 51,930 * includes ` Nil (March 31, 2015 ` 32,741 Mn) towards sales of shares of Bharti Infratel Limited

31. Cost of Goods Sold (` Millions) For the year ended For the year ended Particulars March 31, 2016 March 31, 2015 (Increase)/ Decrease in inventories (143) (638) 3XUFKDVHRI6WRFNLQ7UDGH 516 714 373 76

 (PSOR\HH%HQHǂW([SHQVHV (` Millions) For the year ended For the year ended Particulars March 31, 2016 March 31, 2015 Salaries and wages 16,334 14,578 &RQWULEXWLRQWRSURYLGHQWDQGRWKHUIXQGV UHIHUQRWH  652 657 Expenses on employee stock option plan (refer note 50) 564 549 6WDNjZHOIDUHH[SHQVHV 682 631 Others 461 500 18,693 16,915

162 Annual Report 2015-16 126-355 Bharti Airtel Limited 02-39 | Corporate Overview 40-125 | Statutory Reports Financial Statements

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33. Power and Fuel, Rent, Charity and Donation and Other expenses (` Millions) For the year ended For the year ended Particulars March 31, 2016 March 31, 2015 Power and fuel Network 39,930 40,668 Others 457 483 40,387 41,151 Rent Network 63,196 58,331 Others 2,217 1,459 65,413 59,790 Charity and donation 3ROLWLFDOFRQWULEXWLRQ$    250 &RUSRUDWHVRFLDOUHVSRQVLELOLW\# 535    Others 40 42 575 292 Other expenses Interconnect and port charges 126 124 Insurance Network 332 283 Others 4 3 Installation 70 53 Repairs and maintenance Plant and machinery 26,165 24,499 Building 166 175 2WKHUVQHWZRUN 678 716 2WKHUVDGPLQLVWUDWLYH 896 959 /HDVHGOLQHDQGJDWHZD\FKDUJHV 621 1,060 ,QWHUQHWDFFHVVDQGEDQGZLGWKFKDUJHV 4,832 4,300 Advertisement and marketing 7,485 7,022 6DOHVFRPPLVVLRQ GLVFRXQWFXVWRPHUYHULǟFDWLRQDQGFRQWHQWFRVW 19,900 17,604 ,QGLUHFWVHOOLQJDQGGLVWULEXWLRQ 3,836 2,844 Sim card utilisation 1,426 783 /HJDODQGSURIHVVLRQDO 2,258 2,451 Rates and taxes 568 2,359 IT and call center outsourcing 9,554 9,649 Travelling and conveyance 1,261 1,168 %DGGHEWVZULWWHQRNj 4,391 2,915 3URYLVLRQIRUGRXEWIXOGHEWVDQGDGYDQFHV UHIHUQRWH  1,500 3,103 Provision for diminution in stock/ capital work in progress 1,303 451 Collection and recovery expenses 3,625 3,133 /RVVRQVDOHRIǟ[HGDVVHWV QHW  434 550 Printing and stationery 572 613 Miscellaneous expenses Network 1,632 1,488 6DOHVDQGPDUNHWLQJ  6,817 4,906 Administrative 2,857 2,555 103,309 95,766 # As per the requirements of section 135 of the Companies Act, 2013, the Company was required to spend an amount of ` 1,890 Mn (March 31, 2015 ` 1,400 Mn) on Corporate Social Responsibility expenditure for the year ended March 31, 2016. During the year ended March 31, 2016, the Company has spent in cash an amount of ` 535 Mn (March 31, 2015 ` 411 Mn) towards education and sanitation. In the previous year, the Company had accounted H[SHQGLWXUHLQFXUUHGRQ&RUSRUDWH6RFLDO5HVSRQVLELOLW\ Š&65š DVDSSURSULDWLRQWRVWDWHPHQWRISURnjWDQGORVV UHIHUQRWH  * Includes goodwill waivers which are other than trade discount of ` 603 Mn (March 31, 2015 ` 984 Mn). $ Paid to Satya Electoral Trust for political purpose.

Standalone Financial Statements (IGAAP) 163 Transformational Network

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34. Finance Costs (` Millions) For the year ended For the year ended Particulars March 31, 2016 March 31, 2015 Interest expense 29,048 10,700 2WKHUERUURZLQJFRVW 1,023 1,033 /RVVIURPVZDSDUUDQJHPHQWV QHW  751 625 1HWORVVRQIRUHLJQFXUUHQF\ERUURZLQJV 4,768 1,733 35,590 14,091

35. Depreciation and Amortisation Expense (` Millions) For the year ended For the year ended Particulars March 31, 2016 March 31, 2015 Depreciation (refer note 15) 66,355 59,895 Amortisation (refer note 16) 29,076 15,702 95,431 75,597

36. Exceptional Items liabilities and reserves in the books of ABSPL acquired Exceptional items comprise of the following : pursuant to the scheme is as follows: a. Charge for regulatory fee provisions of ` 2,659 Mn (` Millions) (March 31, 2015 ` Nil) arising out of re-assessment of Particulars As of April 09, 2015 certain positions for the year ended March 31, 2016. Assets b. Charge of ` 4,140 Mn (March 31, 2015 ` Nil) towards 1RQFXUUHQWDVVHWV 64,246 operating costs on network refarming and up-gradation Current assets 591 program for the year ended March 31, 2016. Total 64,837  7D[H[SHQVHLQFOXGHVWD[EHQHnjWRI` 2,243 Mn for the Equity And Liabilities year ended March 31, 2016 (March 31, 2015 ` Nil) on Equity above exceptional items. Share Capital 56,671 Reserve and surplus (724)  $FTXLVLWLRQV$GGLWLRQDO,QYHVWPHQWV1HZ 55,947 Developments Liabilities (i) The Scheme of Arrangements (‘Scheme’) under 1RQFXUUHQWOLDELOLWLHV 5,396 sections 391 to 394 of the Companies Act, 1956 with &XUUHQWOLDELOLWLHV 3,494 respect to amalgamation of Airtel Broadband Services 8,890 Private Limited (‘ABSPL’), a wholly owned subsidiary Total 64,837 of the Company, with the Company, as approved by the Hon’ble High Court of Bombay on April 11, 2014, However, DoT vide its letter dated February 2, 2015, KDV EHHQ njOHG E\ WKH &RPSDQ\ ZLWK WKH 5HJLVWUDU RI has given its approval for taking on record the merger of &RPSDQLHV Š52&š RQ$SULOEHLQJWKHHNjHFWLYH ABSPL with the Company, subject to certain conditions and appointed date of the scheme whereby ABSPL as stipulated in the letter. One of the conditions of shall cease to exist. The Company has accounted merger requires payment of ` 4,361 Mn, equal to the amalgamation in the nature of merger under the pooling GLNjHUHQFH EHWZHHQ WKH HQWU\ IHH IRU 8QLnjHG $FFHVV of interest method. Accordingly, the assets, liabilities and Service License and entry fees paid for Internet reserves in the books of ABSPL have been recognised Service Provider license. The Hon’ble Telecom Disputes by the Company as at the date of the amalgamation at Settlement and Appellate Tribunal (‘TDSAT’) vide its WKHVDPHFDUU\LQJYDOXHV7KHGLNjHUHQFHRI` 8,599 Mn interim order dated February 9, 2015 has allowed the between the share capital of ABSPL and the carrying Company to operationalise the spectrum subject to value of investment in the equity shares of ABSPL in njOLQJ DQ XQGHUWDNLQJ WKDW LQ FDVH WKH SHWLWLRQ IDLOV LW the books of the Company has been adjusted with the shall pay the sum of ` 4,361 Mn along with interest as reserves of the Company. The carrying values of assets, may be determined by the Tribunal within eight weeks

164 Annual Report 2015-16 126-355 Bharti Airtel Limited 02-39 | Corporate Overview 40-125 | Statutory Reports Financial Statements

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IURPWKHGDWHRIMXGJHPHQW7KH&RPSDQ\KDVnjOHGDQ The balance amount of ` 10,970 Mn (March 31, 2015 undertaking before TDSAT for the same. ` 244,040 Mn) attributable towards the spectrum not yet allotted to the Company, has been disclosed as part On February 24, 2012, the TDSAT ordered the Company to pay certain dues (including interest and penalties) of capital commitments as of March 31, 2016. allegedly owed by one of then existing Company’s (iii) During the year ended March 31, 2016, the Company Indian non-controlling shareholders, Tulip Telecom has issued 4.375% Senior Unsecured USD 1,000 Mn Limited (Tulip), to the DoT without prejudice to the right (` 63,973 Mn approximately) Notes at the price of of Tulip to contest the claim and provided that any sum 99.304% that are due for repayment in March 2025. ultimately found not to be due (or paid by Tulip) would The said notes are listed on the Singapore Exchange. be refunded by the Department of Telecommunication (DoT), without interest, within four weeks of the date (iv) During the year ended March 31, 2016, the Company of completion of the assessment of Tulip in respect of has made an additional equity investment of ` 110,155 assessment years in question. Accordingly, as per the Mn (USD 1,685 Mn) in Bharti Airtel International terms and conditions of the TDSAT order dated February (Mauritius) Limited. 24, 2012, the Company had deposited ` 4,104 Mn. (v) During the year ended March 31, 2016, the Company Further as per the agreement dated February 13, 2012 has made an additional equity investment of ` 1,060 HQWHUHGEHWZHHQWKH&RPSDQLHV4XDOFRPP$VLD3DFLnjF Mn in Airtel M Commerce Services Limited. 3WH/LPLWHGDQG7XOLSXSRQWKHnjQDOGHWHUPLQDWLRQGDWH being reached, that Tulip is liable to pay the Company (vi) During the year ended March 31, 2016, the Company an amount equal to the relevant amount determined to has made an additional equity investment of ` 471 be owed by Tulip that is not paid by Tulip and retained Mn in Bharti Airtel Lanka (Private) Limited by way of by the DoT from the Company’s deposit as described conversion of accrued interest on loan into equity. in above paragraph (the “Indemnity Amount”) in the (vii) During the year ended March 31, 2016, the Company EDQN DFFRXQW VSHFLnjHG E\ WKH &RPSDQ\ ZLWKLQ  has increased its equity investment in Indo Teleports GD\VIURPWKHnjQDOGHWHUPLQDWLRQGDWHRUWKHGDWHRI Limited (“Teleports”) formerly known as Bharti Teleports WKHSD\PHQWQRWLFHZKHQnjQDOGHWHUPLQDWLRQGDWHKDV Limited from 49% to 95% for a consideration of ` 172 already occurred prior to the payment notice, without any demur or protest and notwithstanding any dispute Mn, thereby acquiring control over Teleport. regarding the same or any portion thereof. The balance (viii) During the year ended March 31, 2016, the Company amount will be recovered by the Company from DoT as has purchased 100% stake in Augere Wireless per the above TDSAT order. Broadband Private Limited. The consummation of Accordingly, based on the TDSAT order and agreements the said transaction is subject to the approval from referred herein, the amount deposited with DoT has statutory authorities. been considered good and recoverable in these special (ix) During the year ended March 31, 2016, the Company SXUSRVHnjQDQFLDOVWDWHPHQWV KDVHQWHUHGLQWRDGHnjQLWLYHDJUHHPHQWZLWK9LGHRFRQ (ii) During the year ended March 31, 2015, the Company Telecommunications Limited (VTL) to acquire rights to had won the auction for 95.20 MHz spectrum in use spectrum in the 1800 Mhz band for six circles (viz. 15 service areas for an amount of ` 244,040 Mn in Bihar, Haryana, Madhya Pradesh, UP (East), UP (West) the auction conducted by the Government of India and Gujarat). The closing of the said transaction is (‘GOI’). The Company has opted for deferred payment subject to certain customary regulatory approvals and option and accordingly, during the year ended March other closing conditions. 31, 2016, paid an advance of ` 66,496 Mn with the balance amount of ` 177,544 Mn payable in 10 equal (x) Subsequent to the balance sheet date, the Company has installments after a moratorium period of two years. HQWHUHGLQWRDGHnjQLWLYHDJUHHPHQWZLWK$LUFHO/LPLWHG and its subsidiaries Dishnet Wireless Limited and Aircel During the year ended March 31, 2016, Government cellular Limited, to acquire rights to use spectrum in of India issued Letters of Intent for earmarking the the 2300 Mhz band for eight circles (viz. Tamil Nadu, spectrum in all the 15 service areas. During the year Bihar, Jammu & Kashmir, West Bengal, Assam, North ended March 31, 2016, the GOI has allotted 91.80 MHz East, Andhra Pradesh and Odisha). The closing of the of spectrum to the Company. Accordingly, the Company transaction is subject to certain customary regulatory has recognised deferred payment liability of ` 166,574 Mn with respect to these spectrum. approvals and other closing conditions.

Standalone Financial Statements (IGAAP) 165 Transformational Network

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38. As of March 31, 2016, Bharti Airtel Employee’s Welfare Trust (‘the Trust’) holds 1,881,958 equity shares (of face value of ` 5 each) (March 31, 2015 1,410,642 equity shares) of the Company.

As of As of As of As of Particulars March 31, 2016 March 31, 2015 March 31, 2016 March 31, 2015 Number of shares (` Millions) Opening Balance 1,410,642 2,374,698 114 342 Purchased during the year 1,500,000  514  Issued during the year (1,028,684) (964,056) (103) (228) Closing Balance 1,881,958 1,410,642 525 114

39. Earnings per Share (` Millions, except per share data and as stated otherwise) For the year ended For the year ended Particulars March 31, 2016 March 31, 2015 Basic and Diluted Earnings per Share : Nominal value of equity shares (`) 5 5 3URǟWDWWULEXWDEOHWRHTXLW\VKDUHKROGHUV $  75,465 132,005 :HLJKWHGDYHUDJHQXPEHURIHTXLW\VKDUHVRXWVWDQGLQJGXULQJ 3,997 3,997 the year (Nos. in Mn) (B) Basic / Diluted earnings per Share (`) (A/B) 18.88 33.02

 (PSOR\HH%HQHǂWV D  'XULQJWKH\HDUWKH&RPSDQ\KDVUHFRJQLVHGWKHIROORZLQJDPRXQWVLQWKH6WDWHPHQWRI3URǟWDQG/RVV  L 'HǂQHG&RQWULEXWLRQ3ODQV (` Millions) For the year ended For the year ended Particulars March 31, 2016 March 31, 2015 (PSOR\HUšV&RQWULEXWLRQWR3URYLGHQW)XQG@ 646 650 (PSOR\HUšV&RQWULEXWLRQWR(6,DQGRWKHU)XQGV 6 7   #,QFOXGHVFRQWULEXWLRQWR'HnjQHG&RQWULEXWLRQ3ODQIRU.H\0DQDJHULDO3HUVRQQHO

 LL 'HǂQHG%HQHǂW3ODQVDQG/HDYH(QFDVKPHQW For the year ended March 31, 2016:

(` Millions) Particulars Gratuity # Leave Encashment # Current service cost 247 145 Interest cost 135 61 Net actuarial (gain) / loss 46 (57) Total * 428 149 Actual return on plan assets    

166 Annual Report 2015-16 126-355 Bharti Airtel Limited 02-39 | Corporate Overview 40-125 | Statutory Reports Financial Statements

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For the year ended March 31, 2015:

(` Millions) Particulars Gratuity # Leave Encashment # Current service cost 240 142 Interest cost 127 64 Expected return on plan assets (6)    Net actuarial (gain) / loss (84) (133) Total * 277 73 Actual return on plan assets (76)    # Included in salaries and wages (Refer Note 32) * Includes charges towards gratuity and leave encashment for Key Managerial Personnel as these are provided on an actuarial basis for the Company as a whole. b) The assumptions used to determine the obligations are as follows : For the year ended March 31, 2016: (` Millions) Particulars Gratuity Leave Encashment Discount rate 8.00% 8.00% Expected rate of increase in compensation levels 10.00% 10.00% Expected rate of return on plan assets N.A. N.A. Expected average remaining working lives of employees (years) 24.63 24.63

For the year ended March 31, 2015: (` Millions) Particulars Gratuity Leave Encashment Discount rate 8.50% 8.50% Expected rate of increase in compensation levels 10.00% 10.00% Expected rate of return on plan assets 8.00% N.A. Expected average remaining working lives of employees (years) 24.38 24.38 c) Reconciliation of opening and closing balances of obligations and plan assets is as follows: For the year ended March 31, 2016 (` Millions) Particulars Gratuity Leave Encashment Change in Obligation 3UHVHQWYDOXHRIREOLJDWLRQDWEHJLQQLQJRI\HDU 1,587 720 Current service cost 247 145 Interest cost 135 61 %HQHǟWVSDLG (340) (145) Acquisitions / transfer in / transfer out (7) 6 Actuarial (gain) / loss 46 (57) Present value of obligation at year end 1,668 730 Change in plan assets : )DLUYDOXHRISODQDVVHWVDWEHJLQQLQJRI\HDU   Expected return on plan assets   Actuarial gain / (loss)   Amount received on redemption of plan assets   Fair value of plan assets at year end       Net funded status of the plan 1,668 730 Current Liabilities 454 730 Non-Current Liabilities 1,213 -

Standalone Financial Statements (IGAAP) 167 Transformational Network

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For the year ended March 31, 2015: (` Millions) Particulars Gratuity Leave Encashment Change in Obligation 3UHVHQWYDOXHRIREOLJDWLRQDWEHJLQQLQJRI\HDU 1,586 794 Current service cost 240 142 Interest cost 127 64 %HQHǟWVSDLG (305) (133) Acquisitions/ transfer in/ transfer out (47) (14) Actuarial (gain) / loss (14) (133) Present value of obligation at year end 1,587 720 Change in plan assets : )DLUYDOXHRISODQDVVHWVDWEHJLQQLQJRI\HDU 76  Expected return on plan assets 6  Actuarial gain / (loss) 70  Amount received on redemption of plan assets (152)  Fair value of plan assets at year end       Net funded status of the plan 1,587 720 Current Liabilities 450 720 Non-Current Liabilities 1,137 - d) The expected rate of return on plan assets was based on the average long-term rate of return expected to prevail over the next 15 to 20 years on the investments made by LIC. This was based on the historical returns suitably adjusted for movements in long-term government bond interest rates. The discount rate is based on the average yield on government bonds of 20 years.

H  7KHHVWLPDWHVRIIXWXUHVDODU\LQFUHDVHVFRQVLGHUHGLQDFWXDULDOYDOXDWLRQWDNHDFFRXQWRILQǍDWLRQVHQLRULW\SURPRWLRQ and other relevant factors, such as supply and demand in the employment market. f) History of experience adjustment is as follows: (` Millions) Gratuity Particulars As of As of As of As of As of March 31, March 31, March 31, March 31, March 31, 2016 2015 2014 2013 2012 3UHVHQWYDOXHRIREOLJDWLRQ 1,668 1,587 1,586 1,382 1,119 Plan assets       76 76 76 6XUSOXV GHǟFLW (1,668) (1,587) (1,510) (1,306) (1,043) Experience adjustments on plan (6) (69) (28) (31) (57) OLDELOLWLHVJDLQ ORVV Experience adjustments on plan    70 (6) (6) (6) DVVHWVJDLQ ORVV

(` Millions) Leave Encashment Particulars As of As of As of As of As of March 31, March 31, March 31, March 31, March 31, 2016 2015 2014 2013 2012 3UHVHQWYDOXHRIREOLJDWLRQ 730 720 794 744 652 Plan assets                6XUSOXV GHǟFLW (730) (720) (794) (744) (652) Experience adjustments on 74 134 98 79 51 REOLJDWLRQJDLQ ORVV

168 Annual Report 2015-16 126-355 Bharti Airtel Limited 02-39 | Corporate Overview 40-125 | Statutory Reports Financial Statements

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 J  0RYHPHQWLQRWKHUORQJWHUPHPSOR\HHEHQHnjWV The provision for long term service award provided by the Company as of March 31, 2016 is ` 89 Mn (March 31, 2015 ` 86 Mn).  ,QYHVWPHQWLQ-RLQW9HQWXUHV-RLQWO\2ZQHG$VVHWV a) Jointly owned assets The Company has participated in various consortiums towards supply, construction, maintenance and providing long term technical support with regards to following Cable Systems. The details of the same are as follows: As of March 31, 2016 (` Millions except % share) Cable Project Total Capital Work Net block % Share Contribution In Progress 60: 3,317  1,315 8.20% (,*3URMHFW 2,657 20 1,817 7.22% ,0(:(3URMHFW 3,063  2,007 12.84%

As of March 31, 2015 (` Millions except % share) Cable Project Total Capital Work Net block % Share Contribution In Progress 60: 3,317    1,637 8.27% (,*3URMHFW 2,677 205 1,805 7.22% ,0(:(3URMHFW 3,063    2,206 12.84% b) Jointly Ventures Entity to ` 34 Mn, 800,000 Mn ordinary shares, ownership i) The Company has a Joint Venture with 9 other interest 10.00%) overseas mobile operators to form a regional LL  )LUHǍ\1HWZRUNV/LPLWHGLVDMRLQWYHQWXUHRIWKH alliance called the Bridge Mobile Alliance, incorporated in Singapore as Bridge Mobile Pte Company and Vodafone West Limited. The principle Limited. The principal activity of the venture is activity of the venture is site acquisition, installation, creating and developing regional mobile services operation and maintenance of the infrastructure at the and managing the Bridge Mobile Alliance hotspot to enable telecommunication and internet, to Programme. As of March 31, 2016, the Company’s RNjHU FXVWRPHU :Lnj DFFHVV DFURVV WKH WHUULWRU\ $V RI investment in Bridge Mobile Pte Limited is USD 0DUFK   WKH &RPSDQ\šV LQYHVWPHQW LQ )LUHǍ\ 800,000, amounting to ` 34 Mn in 800,000 Networks Limited is ` 10 Mn in 1,000,000 ordinary ordinary shares of USD 1 each which is equivalent shares of ` 10 each which is equivalent to an ownership to an ownership interest of 10.00% (March 31, interest of 50% (March 31, 2015: Investment of ` 10 2015: Investment of USD 800,000 Mn, amounting Mn, 100,000 ordinary shares, ownership interest 50%).

The following represents the Company’s share of assets and liabilities, and income and results of the joint ventures:

(` Millions) As of March 31, As of March 31, Particulars 2016 2015 (Unaudited) (Unaudited) Balance Sheet Current assets 69 47 1RQFXUUHQWDVVHWV 5 4 &XUUHQWOLDELOLWLHV 31 21 1RQFXUUHQWOLDELOLWLHV 5    Equity 38 30

Standalone Financial Statements (IGAAP) 169 Transformational Network

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(` Millions) For the year ended For the year ended Particulars March 31, 2016 March 31, 2015 (Unaudited) (Unaudited) 6WDWHPHQWRI3URǂWDQG/RVV Revenue 69 38 (PSOR\HHEHQHǟWH[SHQVHV 26 22 Other expenses 30 7 Depreciation 2 1 3URǂW ORVV EHIRUHWD[ 10 8 Tax Expense 0    Loss for the year 11 8

42. Loans and advances in the nature of loans along with 2015 ` 8,887 Mn (USD 140 Mn) at LIBOR + 1.25% maximum amount outstanding during the year as interest rate). per Para A of Schedule V of Securities and Exchange (g) Loan and advance in the nature of loan given to Nxtra Board of India (Listing obligations and disclosure Data Limited at nil interest rate is ` 2,480 Mn (March requirements) Regulations, 2015 are as follows: 31, 2015 ` 2,000 Mn at nil interest rate). (a) Loan and advance in the nature of loan given to Bharti (h) Loan and advance in the nature of loan given to Bharti Telemedia Limited at nil interest rate is ` 32,289 Mn Airtel Services Limited at nil interest rate is ` 320 Mn (March 31, 2015 ` 33,395 Mn at nil interest rate). (March 31, 2015 ` 635 Mn at nil interest rate). (b) Loan and advance in the nature of loan given to Bharti (i) Loan and advance in the nature of loan given to Airtel Airtel Lanka (Private) Limited at nil interest rate is ` Nil Broadband Services Private Limited at nil interest rate (March 31, 2015 ` 11,047 Mn (LKR 25,916 Mn) at nil is ` Nil (March 31, 2015 ` 5,390 Mn at nil interest rate). interest rate) ( j) Loan and advance in the nature of loan given to Wynk (c) Loan and advance in the nature of loan given to Bharti Limited at nil interest rate is ` 40 Mn (March 31, 2015 Airtel International (Netherlands) B.V at LIBOR + 1.25% ` Nil at nil interest rate). interest rate is ` 34,820 Mn (USD 506 Mn) (March 31, 2015 ` 32,047 Mn (USD 506 Mn) at LIBOR + 1.25% (k) Loan and advance in the nature of loan given to Augere interest rate). Wireless Broadband India Private Limited at 12% interest rate is ` 49 Mn (March 31, 2015 ` Nil at nil (d) Loan and advance in the nature of loan given to interest rate). Telesonic Networks Limited at SBI base rate is ` 220 Mn (March 31, 2015 ` 90 Mn at SBI base rate). O  /RDQDQGDGYDQFHLQWKHQDWXUHRIORDQJLYHQWR)LUHǍ\ Networks Limited at 9.8% interest rate is ` 5 Mn (March (e) Loan and advance in the nature of loan given to Bharti 31, 2015 ` Nil at nil interest rate). Teleports Limited at SBI base rate +1% interest rate is ` 488 Mn (March 31, 2015 ` 466 Mn at SBI base rate (m) Loans and advance in the nature of loan given to Bharti +1% interest rate). Airtel Employees Welfare Trust at nil interest rate is ` 516 Mn (March 31, 2015 ` 326 Mn at nil interest rate). (f) Loan and advance in the nature of loan given to Bharti International (Singapore) Pte Limited at LIBOR + 1.25% Refer note 47 for outstanding balance at the end of the year interest rate is ` 9,656 Mn (USD 140 Mn) (March 31, for the above entities.

170 Annual Report 2015-16 126-355 Bharti Airtel Limited 02-39 | Corporate Overview 40-125 | Statutory Reports Financial Statements

NotesWRnjQDQFLDOVWDWHPHQWV

 ([SHQGLWXUH(DUQLQJVLQ)RUHLJQ&XUUHQF\ RQDFFUXDOEDVLV (` Millions) For the year ended For the year ended Particulars March 31, 2016 March 31, 2015 Expenditure 2QDFFRXQWRI Interest 3,153 496 Bank charges 137 447 Professional & consultation fees 38 90 7UDYHOOLQJ QHWRIUHLPEXUVHPHQW 75 39 Roaming charges (including commission) 1,238 1,330 0HPEHUVKLS VXEVFULSWLRQ 82 56 6WDNjWUDLQLQJ RWKHUV 3 28 Network services 1,041 464 Annual maintenance 1,840 1,905 Bandwidth charges 1,996 2,644 Access charges 25,308 21,288 Repairs & maintenance 15 13 Marketing 124 150 Content charges 799 1,016 Directors commission and sitting fees 54 59 Income tax    147 Total 35,903 30,172 Earnings Service revenue 40,306 36,040 Interest income 675 469 Management charges 887 765 Total 41,868 37,274

44. CIF Value of Imports (` Millions) For the year ended For the year ended Particulars March 31, 2016 March 31, 2015 Capital goods 73,702 37,221 Total 73,702 37,221

45. Auditors’ Remuneration (` Millions) For the year ended For the year ended Particulars March 31, 2016 March 31, 2015 $XGLWIHH  78 68 5HLPEXUVHPHQWRIH[SHQVHV  6 5 $VDGYLVRUIRUWD[DWLRQPDWWHUV        2WKHUVHUYLFHV  18 8 Total 102 81 * Excluding Service Tax

Standalone Financial Statements (IGAAP) 171 Transformational Network

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 'HWDLOVRIGXHVWRPLFURHQWHUSULVHVDQGVPDOOHQWHUSULVHVDVGHǂQHGXQGHUWKH060('$FW  %DVHGRQWKHLQIRUPDWLRQDYDLODEOHZLWKWKH&RPSDQ\DQGWKHFRQnjUPDWLRQREWDLQHGIURPWKHFUHGLWRUVDPRXQWVGXHWR micro enterprises and small enterprises under Micro, Small and Medium Enterprises Development (MSMED) Act, 2006 is given below: (` Millions) Sr No Particulars March 31, 2016 March 31, 2015 1 The principal amount and the interest due thereon [` Nil 32 10 (March 31, 2015 – `b1LO @UHPDLQLQJXQSDLGWRDQ\VXSSOLHU as at the end of each accounting year 2 7KHDPRXQWRILQWHUHVWSDLGE\WKHEX\HULQWHUPVRIVHFWLRQ   16 of the MSMED Act, 2006, along with the amounts of the SD\PHQWPDGHWRWKHVXSSOLHUEH\RQGWKHDSSRLQWHGGD\ during each accounting year 3 7KHDPRXQWRILQWHUHVWGXHDQGSD\DEOHIRUWKHSHULRGRI   GHOD\LQPDNLQJSD\PHQW ZKLFKKDYHEHHQSDLGEXWEH\RQG WKHDSSRLQWHGGD\GXULQJWKH\HDU EXWZLWKRXWDGGLQJWKH LQWHUHVWVSHFLǟHGXQGHU060('$FW 4 The amount of interest accrued and remaining unpaid at   the end of each accounting year; 5 7KHDPRXQWRIIXUWKHULQWHUHVWUHPDLQLQJGXHDQGSD\DEOH   even in the succeeding years, until such date when the LQWHUHVW GXHV DV DERYH DUH DFWXDOO\ SDLG WR WKH VPDOO HQWHUSULVHIRUWKHSXUSRVHRIGLVDOORZDQFHDVDGHGXFWLEOH expenditure under section 23 of the MSMED Act, 2006.

47. Related Party Disclosures Bharti Airtel Holdings (Singapore) Pte Ltd In accordance with the requirements of Accounting Bharti Infratel Lanka (Private) Limited (subsidiary of Standard (AS) -18 on Related Party Disclosures, the Bharti Airtel Lanka (Private) Limited) (under process of names of the related parties where control exists and/ VWULNLQJRNj or with whom transactions have taken place during the Airtel M Commerce Services Limited year and description of relationships are: Airtel Broadband Services Private Limited (merged Name of the related party and related party with Bharti Airtel Limited w.e.f. April 9, 2015). relationship : Nxtra Data Limited (i) Key Management Personnel Bharti Airtel (Japan) Kabushiki Kaisha (subsidiary of Sunil Bharti Mittal Bharti Airtel Holdings (Singapore) Pte Ltd) Gopal Vittal Bharti Airtel (France) SAS (subsidiary of Bharti Airtel (ii) Other Related Parties Holdings (Singapore) Pte Ltd) D  (QWLWLHVZKHUHFRQWUROH[LVWŞ6XEVLGLDU\6XEVLGLDULHV Bharti Airtel International (Mauritius) Limited RIVXEVLGLDU\ Bharti International (Singapore) Pte Ltd Bharti Hexacom Limited Airtel Bangladesh Limited (subsidiary of Bharti Airtel Bharti Airtel Services Limited Holdings (Singapore) Pte Ltd) (Under Amalgamation) Bharti Telemedia Limited Bharti Airtel International (Netherlands) B.V. Bharti Airtel (USA) Limited Bangladesh Infratel Networks Limited (subsidiary of Bharti Airtel Lanka (Private) Limited Airtel Bangladesh Limited) (Under liquidation) Bharti Airtel (UK) Limited (subsidiary of Bharti Airtel Telesonic Networks Limited Holdings (Singapore) Pte Ltd) Wynk Limited Bharti Airtel (Canada) Limited (dissolved on December Indo Teleports Limited (formely know as Bharti 31, 2015) Teleports Limited) (w.e.f. August 27, 2015) Bharti Airtel (Hongkong) Limited Smartx Service Limited (subsidiary of Bharti Infratel Bharti Infratel Limited (“BIL”) Limited) Bharti Infratel Services Limited (subsidiary of Bharti Other subsidiaries of Bharti Airtel International ,QIUDWHO/LPLWHG  XQGHUSURFHVVRIVWULNLQJRNj (Netherlands) B.V. : Network i2i Limited Africa Towers N.V.

172 Annual Report 2015-16 126-355 Bharti Airtel Limited 02-39 | Corporate Overview 40-125 | Statutory Reports Financial Statements

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Africa Towers Services Limited Bharti Airtel Kenya Holdings B.V. Airtel (Ghana) Limited Bharti Airtel Madagascar Holdings B.V. Airtel (Seychelles) Limited Bharti Airtel Malawi Holdings B.V. Airtel (SL) Limited Bharti Airtel Mali Holdings B.V. Airtel Burkina Faso S.A. Bharti Airtel Niger Holdings B.V. Airtel Congo S.A Bharti Airtel Nigeria B.V. Airtel DTH Services (SL) Limited (under liquidation) Bharti Airtel Nigeria Holdings B.V. (under liquidation) Airtel DTH Services Congo (DRC) SARL. (Dissolved Bharti Airtel Nigeria Holdings II B.V. w.e.f March 2, 2016) Bharti Airtel RDC Holdings B.V. Airtel DTH Services Nigeria Limited (under liquidation) Bharti Airtel Services B.V. Airtel Gabon S.A. Bharti Airtel Sierra Leone Holdings B.V. Airtel Madagascar S.A. Bharti Airtel Tanzania B.V. # Airtel Malawi Limited Bharti Airtel Uganda Holdings B.V. Airtel Mobile Commerce (SL) Limited Bharti Airtel Zambia Holdings B.V. Airtel Mobile Commerce B.V Burkina Faso Towers S.A. (dissolved w.e.f February 24, Airtel Mobile Commerce Burkina Faso S.A. 2016) Airtel Mobile Commerce (Ghana) Limited Celtel (Mauritius) Holdings Limited Airtel Mobile Commerce Holdings B.V Airtel Congo (RDC) S.A (formerly know as Celtel Airtel Mobile Commerce Kenya Limited Congo (RDC) S.a.r.l.) Airtel Mobile Commerce Limited (Malawi) Celtel Niger S.A. Airtel Mobile Commerce Madagascar S.A. Channel Sea Management Company Mauritius Limited Airtel Mobile Commerce Rwanda Limited Congo RDC Towers S.A. Airtel Mobile Commerce (Seychelles) Limited Congo Towers S.A. (under dissolution) Airtel Mobile Commerce (Tanzania) Limited Gabon Towers S.A. (under dissolution) Airtel Mobile Commerce Tchad SARL Indian Ocean Telecom Limited Airtel Mobile Commerce Uganda Limited Kenya Towers Limited (sold on September 23, 2015) Airtel Mobile Commerce Zambia Limited Madagascar Towers S.A. Airtel Money (RDC) S.A. Malawi Towers Limited Airtel Money Niger S.A. Mobile Commerce Congo S.A. Airtel Money S.A. (Gabon) Montana International Airtel Networks Kenya Limited MSI-Celtel Nigeria Limited (under liquidation) Airtel Networks Limited Niger Towers S.A.(dissolved w.e.f. March 17, 2016) Airtel Networks Zambia Plc Partnership Investments S.A.R.L. Airtel Rwanda Limited Société Malgache de Telephonie Cellulaire SA Airtel Tanzania Limited Tanzania Towers Limited Airtel Tchad S.A. Tchad Towers S.A. Airtel Towers (Ghana) Limited Towers Support Nigeria Limited (under liquidation) Airtel Towers (S.L.) Company Limited Uganda Towers Limited (sold on June 1, 2015) Airtel Uganda Limited Warid Congo S.A.(Merged with Airtel Congo SA on Bharti Airtel Africa B.V. October 16, 2015, dissolved on November 5, 2015) Bharti Airtel Burkina Faso Holdings B.V. Warid Telecom Uganda Limited (under amalgamation) Bharti Airtel Chad Holdings B.V. Zambian Towers Limited (sold on August 31, 2015) Bharti Airtel Congo Holdings B.V. Zap Trust Company Nigeria Limited (under liquidation) Bharti Airtel Developers Forum Limited Bharti Airtel Rwanda Holdings Ltd (formerly known as Bharti Airtel DTH Holdings B.V. Zebrano (Mauritius) Limited) Bharti Airtel Gabon Holdings B.V. Airtel Money Transfer Limited (Incorporated on July Bharti Airtel Ghana Holdings B.V. 20, July 2015) Bharti Airtel Kenya B.V.

Standalone Financial Statements (IGAAP) 173 Transformational Network

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E  $VVRFLDWHV$VVRFLDWHRIVXEVLGLDU\ I  *URXS&RPSDQLHV Tanzania Telecommunications Company Limited Beetel Teletech Limited (Associate of Bharti Airtel Tanzania B.V.) Bharti Axa General Insurance Company Limited Seychelles Cable Systems Company Limited Bharti Axa Life Insurance Company Limited (Associate of Airtel (Seychelles) Limited) Bharti Realty Holdings Limited Indo Teleports Limited (formerly known as Bharti Bharti Realty Limited Teleports Limited) (uptill August 27, 2015 Bharti Retail Limited F  -RLQW9HQWXUHV-RLQW9HQWXUHRI6XEVLGLDU\ Ignite World Private Limited (formerly known as BSB Forum I Aviation Limited (Joint Venture of Bharti Airtel Portal Limited) Services Limited) (Ceased to be related party w.e.f Limited (formerly known as BSB January 7, 2016) Innovation India Limited) Indus Towers Limited (Joint Venture of Bharti Infratel Centum Learning Limited Limited) Fieldfresh Foods Private Limited Bridge Mobile Pte Limited Indian Continent Investment Limited FireFly Networks Limited Jersey Airtel Limited (d) Entities where Key Management Personnel and their Mehrauli Realty and Consultants Limited UHODWLYHVH[HUFLVHVLJQLǟFDQWLQǠXHQFH Nile Tech Limited Bharti Foundation Y2CF Digital Media Limited Bharti Airtel Employees Welfare Trust Bharti Enterprises Limited Hike Limited Atrium Restaurants India Private Limited Mobinteco Limited (Merged with Hike Limited w.e.f December 22, 2015) Bharti Land Limited Cedar Support Services Limited Centrum Work skills India Limited Augere Wireless Broadband India Private Limited (w.e.f. H  (QWLWLHVKDYLQJVLJQLǟFDQWLQǠXHQFHRYHUWKH December 31, 2015) Company Singapore Telecommunications Limited Pastel Limited Bharti Telecom Limited

*URXS&RPSDQLHVŤWKRXJKQRWŠ5HODWHG3DUWLHVšDVSHUWKHGHnjQLWLRQXQGHU$6KDYHEHHQLQFOXGHGE\ZD\RIDYROXQWDU\GLVFORVXUHIROORZLQJWKHEHVW corporate governance practices. ^ Refer note 37 above for details of new operations during the year.

174 Annual Report 2015-16 126-355 Bharti Airtel Limited 02-39 | Corporate Overview 40-125 | Statutory Reports Financial Statements

NotesWRnjQDQFLDOVWDWHPHQWV

The details of amounts due to or due from the related parties as of March 31, 2016 and March 31, 2015 are as follows: (` Millions) As of As of Sr No Particulars March 31, 2016 March 31, 2015 1 Subsidiaries 7UDGH5HFHLYDEOHV 1,301 1,954 /RDQV $GYDQFHV LQFOXGLQJDFFUXHGLQWHUHVWZKHUHYHU 66,730 80,783 DSSOLFDEOH Security Deposit/Advances 2,580 2,537 7UDGH3D\DEOHV (6,010) (5,720) Total 64,601 79,554 2 Associate: 7UDGH5HFHLYDEOHV    114 /RDQV $GYDQFHV LQFOXGLQJDFFUXHGLQWHUHVWZKHUHYHU    466 DSSOLFDEOH 7UDGH3D\DEOHV       Total    580 3 Group Companies: 7UDGH5HFHLYDEOHV 178 96 /RDQV $GYDQFHV LQFOXGLQJDFFUXHGLQWHUHVWZKHUHYHU 51    DSSOLFDEOH Security Deposit/Advances 894 901 7UDGH3D\DEOHV (403) (420) Total 720 577 4 -RLQW9HQWXUH-RLQW9HQWXUHRI6XEVLGLDU\ /RDQV $GYDQFHV LQFOXGLQJDFFUXHGLQWHUHVWZKHUHYHU 5    DSSOLFDEOH Security Deposit/Advances 3,631 3,513 7UDGH3D\DEOHV (8,115) (7,740) Total (4,479) (4,227) 5 (QWLW\KDYLQJVLJQLǂFDQWLQǃXHQFHRYHUWKH&RPSDQ\ Security Deposit/Advances     7UDGH3D\DEOHV (120) (32) Total (120) (32) 6 Entities where key management personnel & their relatives H[HUFLVHVLJQLǂFDQWLQǃXHQFH 7UDGH5HFHLYDEOHV 34 61 /RDQV $GYDQFHV LQFOXGLQJDFFUXHGLQWHUHVWZKHUHYHU 508 98 DSSOLFDEOH Total 542 159

Standalone Financial Statements (IGAAP) 175 Transformational Network

NotesWRnjQDQFLDOVWDWHPHQWV

The details of related party transactions entered into by the Company, for the years ended March 31, 2016 and March 31, 2015 are as follows: (` Millions) As of As of Sr No Particulars March 31, 2016 March 31, 2015 1 Subsidiaries 3XUFKDVHRIǟ[HGDVVHWVEDQGZLGWK 3,729 5,163 6DOHRIǟ[HGDVVHWV,58JLYHQ 1,026 1,256 3XUFKDVHRI,QYHVWPHQWV6XEVFULSWLRQWRVKDUHFDSLWDO 111,858 51,328 Sale of Investments 3    5HQGHULQJRI6HUYLFHV 20,957 17,448 5HFHLYLQJRIVHUYLFHV 46,759 40,722 )XQGWUDQVIHUUHG([SHQVHVLQFXUUHGRQEHKDOIRIRWKHUV 2,351 2,677 )XQGUHFHLYHG([SHQVHVLQFXUUHGRQEHKDOIRIWKH&RPSDQ\ 88 257 (PSOR\HHUHODWHGH[SHQVHVLQFXUUHGRQEHKDOIRIRWKHUV 203 269 (PSOR\HHUHODWHGH[SHQVHVLQFXUUHGRQEHKDOIRIWKH&RPSDQ\ 81 102 Security deposit given/Advances paid 50 34 Advance received/Refund of Security deposit given 7 3 /RDQVJLYHQ 14,755 34,699 5HSD\PHQWRI/RDQVJLYHQ 26,503 8,493 ,QWHUHVWFKDUJHGE\RWKHUV 6 2 ,QWHUHVWFKDUJHGE\WKH&RPSDQ\ 707 482 Dividend Income 9,470 13,700 5HLPEXUVHPHQWRIHQHUJ\H[SHQVHV 12,456 13,972 *XDUDQWHHVDQGFROODWHUDOVJLYHQRQEHKDOIRIRWKHUV ,QFOXGLQJ 799,179 858,157 Performance guarantees) Total 1,050,188 1,048,765 2 Associate: 5HQGHULQJRI6HUYLFHV 4 14 )XQGWUDQVIHUUHG([SHQVHVLQFXUUHGRQEHKDOIRIRWKHUV 5 23 Security deposit given/Advances paid    0 /RDQVJLYHQ 14 154 5HSD\PHQWRI/RDQVJLYHQ 14    ,QWHUHVWFKDUJHGE\WKH&RPSDQ\ 21 47 *XDUDQWHHVDQGFROODWHUDOVJLYHQRQEHKDOIRIRWKHUV ,QFOXGLQJ    1 Performance guarantees) Total 58 239 3 Group Companies: 3XUFKDVHRIǟ[HGDVVHWVEDQGZLGWK 2,390 1,215 5HQGHULQJRI6HUYLFHV 146 174 5HFHLYLQJRIVHUYLFHV 2,738 2,349 )XQGWUDQVIHUUHG([SHQVHVLQFXUUHGRQEHKDOIRIRWKHUV    2 )XQGUHFHLYHG([SHQVHVLQFXUUHGRQEHKDOIRIWKH&RPSDQ\ 23 711 (PSOR\HHUHODWHGH[SHQVHVLQFXUUHGRQEHKDOIRIRWKHUV 42    (PSOR\HHUHODWHGH[SHQVHVLQFXUUHGRQEHKDOIRIWKH&RPSDQ\ 97 130 Security deposit given/Advances paid 23 6 Advance received/Refund of Security deposit given 28 5 /RDQVJLYHQ 40    ,QWHUHVWFKDUJHGE\WKH&RPSDQ\ 2    Dividend Paid 590 912 Total 6,119 5,504

176 Annual Report 2015-16 126-355 Bharti Airtel Limited 02-39 | Corporate Overview 40-125 | Statutory Reports Financial Statements

NotesWRnjQDQFLDOVWDWHPHQWV

(` Millions) As of As of Sr No Particulars March 31, 2016 March 31, 2015 4 -RLQW9HQWXUH-RLQW9HQWXUHRI6XEVLGLDU\ 3XUFKDVHRI,QYHVWPHQWV6XEVFULSWLRQWRVKDUHFDSLWDO    10 Sale of Investments    87 5HQGHULQJRI6HUYLFHV 36 39 5HFHLYLQJRIVHUYLFHV 36,815 33,374 )XQGWUDQVIHUUHG([SHQVHVLQFXUUHGRQEHKDOIRIRWKHUV    1 )XQGUHFHLYHG([SHQVHVLQFXUUHGRQEHKDOIRIWKH&RPSDQ\ 25 48 (PSOR\HHUHODWHGH[SHQVHVLQFXUUHGRQEHKDOIRIRWKHUV 14    Security deposit given/Advances paid 117 68 Advance received/Refund of Security deposit given    368 /RDQVJLYHQ 5    ,QWHUHVWFKDUJHGE\WKH&RPSDQ\     5HLPEXUVHPHQWRIHQHUJ\H[SHQVHV 21,988 21,958 Total 59,000 55,953 5 (QWLW\KDYLQJVLJQLǂFDQWLQǃXHQFHRYHUWKH&RPSDQ\ 5HQGHULQJRI6HUYLFHV 1,266 1,374 5HFHLYLQJRIVHUYLFHV 210 314 Security deposit given/Advances paid  1 Advance received/Refund of Security deposit given    1 Dividend Paid 5,199 8,022 Total 6,675 9,712 6 Subsidiaries: ,QWHULP'LYLGHQGIRU)<    6,750 )LQDO'LYLGHQGIRU)< 9,470    )LQDO'LYLGHQGIRU)<    6,950 Total 9,470 13,700 7 Key Management Personnel: Dividend Paid 0 0 Remuneration^ Salaries and allowances 234 221 3HUIRUPDQFHOLQNHGLQFHQWLYH Š3/,š # 94 99 Perquisites 12 5 Total 340 325 8 Entities where key management personnel & their relatives H[HUFLVHVLJQLǂFDQWLQǃXHQFH 5HQGHULQJRI6HUYLFHV 194 117 /RDQVJLYHQ 514    5HSD\PHQWRI/RDQVJLYHQ 104 228 Dividend Paid 1 7 Donation 524 411 Total 1,337 763 * Inclusive of all applicable taxes

Standalone Financial Statements (IGAAP) 177 Transformational Network

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Disclosure in respect of transactions which are more than 10% of the total transactions of the same type with related parties during the year (` Millions) As of As of S. No Particulars March 31, 2016 March 31, 2015 1 Subsidiaries Trade Receivables %KDUWL+H[DFRP/WG 184 406 $LUWHO%URDGEDQG6HUYLFHV3YW/WG    684 Bharti Airtel International (Netherlands) B.V. 362 132 Loans & Advances (including accrued interest, wherever applicable) %KDUWL7HOHPHGLD/WG 19,206 31,694 %KDUWL,QWHUQDWLRQDO 6LQJDSRUH 3WH/WG 9,621 8,949 Bharti Airtel International (Netherlands) B.V. 34,607 32,189 6HFXULW\'HSRVLW$GYDQFHV %KDUWL$LUWHO 6HUYLFHV /LPLWHG 729 729 %KDUWL,QIUDWHO/WG 1,851 1,808 Trade Payables %KDUWL,QIUDWHO/WG (2,873) (2,803) 2 -RLQW9HQWXUH-RLQW9HQWXUHRI6XEVLGLDU\ 6HFXULW\'HSRVLW$GYDQFHV ,QGXV7RZHUV/LPLWHG 3,630 3,513 Trade Payables ,QGXV7RZHUV/LPLWHG (8,087) (7,733)

The details of related party transactions entered into by the Company, for the year ended March 31, 2016 and March 31, 2015 are as follows: (` Millions) For the year ended For the year ended S. No Particulars March 31, 2016 March 31, 2015 1 Subsidiaries 3XUFKDVHRIǂ[HGDVVHWVEDQGZLGWK 7HOHVRQLF1HWZRUNV/LPLWHG 3,536 3,483 6DOHRIǂ[HGDVVHWV,58JLYHQ %KDUWL+H[DFRP/WG 650 1,119 1HWZRUNLL/LPLWHG 180 24 :\QN/LPLWHG 162    3XUFKDVHRI,QYHVWPHQWV6XEVFULSWLRQWRVKDUHFDSLWDO %KDUWL$LUWHO/DQND3YW/WG 471 11,047 %KDUWL$LUWHO,QWHUQDWLRQDO 0DXULWLXV /WG 110,155 39,931 Sale of Investments %KDUWL$LUWHO &DQDGD /LPLWHG 3    Rendering of Services %KDUWL+H[DFRP/WG 8,244 9,092 %KDUWL$LUWHO 8. /WG 8,787 3,374 Receiving of services %KDUWL,QIUDWHO/WG 19,426 17,924

178 Annual Report 2015-16 126-355 Bharti Airtel Limited 02-39 | Corporate Overview 40-125 | Statutory Reports Financial Statements

NotesWRnjQDQFLDOVWDWHPHQWV

(` Millions) For the year ended For the year ended S. No Particulars March 31, 2016 March 31, 2015 )XQGWUDQVIHUUHG([SHQVHVLQFXUUHGRQEHKDOIRIRWKHUV %KDUWL+H[DFRP/WG 1,347 1,129 $LUWHO%URDGEDQG6HUYLFHV3YW/WG    524 %KDUWL7HOHPHGLD/WG 569 583 )XQGUHFHLYHG([SHQVHVLQFXUUHGRQEHKDOIRIWKH&RPSDQ\ %KDUWL7HOHPHGLD/WG 15 22 $LUWHO0&RPPHUFH6HUYLFHV/LPLWHG 68 132 Employee related expenses incurred on behalf of others %KDUWL+H[DFRP/WG 15 37 %KDUWL$LUWHO 6HUYLFHV /LPLWHG 121 104 %KDUWL7HOHPHGLD/WG 17 40 $LUWHO0&RPPHUFH6HUYLFHV/LPLWHG 48 86 Employee related expenses incurred on behalf of the Company %KDUWL+H[DFRP/WG 6 25 %KDUWL$LUWHO 6HUYLFHV /LPLWHG 14 40 %KDUWL7HOHPHGLD/WG 9 33 $LUWHO0&RPPHUFH6HUYLFHV/LPLWHG 47 4 6HFXULW\GHSRVLWJLYHQ$GYDQFHVSDLG %KDUWL,QIUDWHO/WG 50 34 $GYDQFHUHFHLYHG5HIXQGRI6HFXULW\GHSRVLWJLYHQ %KDUWL,QIUDWHO/WG 6 3 Loans given %KDUWL7HOHPHGLD/WG 13,592 5,820 %KDUWL,QWHUQDWLRQDO 6LQJDSRUH 3WH/WG    5,902 Bharti Airtel International (Netherlands) B.V.    21,174 Repayment of Loans given %KDUWL7HOHPHGLD/WG 26,079 7,352 Interest charged by others %KDUWL+H[DFRP/WG 6 3 Interest charged by the Company %KDUWL,QWHUQDWLRQDO 6LQJDSRUH 3WH/WG 146 119 Bharti Airtel International (Netherlands) B.V. 528 351 Dividend Income %KDUWL,QIUDWHO/WG 8,840 13,350 Reimbursement of energy expenses %KDUWL,QIUDWHO/WG 12,456 13,972 Guarantees and collaterals given on behalf of others (Including Performance guarantees) Bharti Airtel International (Netherlands) B.V 780,802 814,413 2 Group Companies: 3XUFKDVHRIǂ[HGDVVHWVEDQGZLGWK %HHWHO7HOHWHFK/LPLWHG 2,390 1,162

Standalone Financial Statements (IGAAP) 179 Transformational Network

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(` Millions) For the year ended For the year ended S. No Particulars March 31, 2016 March 31, 2015 )XQGUHFHLYHG([SHQVHVLQFXUUHGRQEHKDOIRIWKH&RPSDQ\ %KDUWL(QWHUSULVHV/LPLWHG 17 710 Employee related expenses incurred on behalf of others %KDUWL(QWHUSULVHV/LPLWHG 40    Employee related expenses incurred on behalf of the Company %KDUWL(QWHUSULVHV/LPLWHG 97 127 6HFXULW\GHSRVLWJLYHQ$GYDQFHVSDLG 1LOH7HFK/WG 22 0 $GYDQFHUHFHLYHG5HIXQGRI6HFXULW\GHSRVLWJLYHQ %KDUWL5HDOW\/LPLWHG 28 0 Dividend Paid ,QGLDQ&RQWLQHQW,QYHVWPHQW/WG 590 912 3 -RLQW9HQWXUH-RLQW9HQWXUHRI6XEVLGLDU\ Sale of Investments %ULGJH0RELOH3WH/LPLWHG    87 Receiving of services ,QGXV7RZHUV/LPLWHG 36,765 33,348 )XQGUHFHLYHG([SHQVHVLQFXUUHGRQEHKDOIRIWKH&RPSDQ\ )RUXP$YLDWLRQ/WG 25 48 6HFXULW\GHSRVLWJLYHQ$GYDQFHVSDLG ,QGXV7RZHUV/LPLWHG 117 68 $GYDQFHUHFHLYHG5HIXQGRI6HFXULW\GHSRVLWJLYHQ ,QGXV7RZHUV/LPLWHG  368 Reimbursement of energy expenses ,QGXV7RZHUV/LPLWHG 21,988 21,958 4 Entity where key management personnel & their relatives H[HUFLVHVLJQLǂFDQWLQǃXHQFH Donation Bharti Foundation 524 411 5 (QWLW\KDYLQJVLJQLǂFDQWLQǃXHQFHRYHUWKH&RPSDQ\ Dividend Paid 3DVWHO/WG 1,313 2,028 %KDUWL7HOHFRP/WG 3,886 5,994 6 Key Management Personnel: Remuneration # 340 325 ^ Excludes an amount of 57 Mn (March 31, 2015, `0Q WRZDUGVH[SHQVHVUHFRJQLVHGLQVWDWHPHQWRISURnjWDQGORVVGXULQJWKH\HDUHQGHG0DUFK with respect to stock options granted. # Value of PLI considered above represents incentive at 100% performance level. However, same will be paid on the basis of actual performance parameters in next year. * Inclusive of all applicable taxes

180 Annual Report 2015-16 126-355 Bharti Airtel Limited 02-39 | Corporate Overview 40-125 | Statutory Reports Financial Statements

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48. Lease a) Operating lease - As a lessee The lease rentals charged during the year for cancellable/non-cancellable leases relating to rent of building premises and cell sites as per the agreements and maximum obligation on long-term non-cancellable operating leases are as follows:

(` Millions) As of As of Particulars March 31, 2016 March 31, 2015 /HDVHUHQWDOV>H[FOXGLQJOHDVHHTXDOLVDWLRQUHVHUYH` 1,473 Mn 63,941 57,451 (March 31, 2015 ` 2,339 Mn)] Obligations on non cancellable leases : Not later than one year 68,645 60,478 /DWHUWKDQRQH\HDUEXWQRWODWHUWKDQǟYH\HDUV 215,297 218,622 /DWHUWKDQǟYH\HDUV 102,969 111,760 Total 386,911 390,860

The escalation clause includes escalation ranging from 0% to 25%, includes option of renewal from 1 to 15 years and there are no restrictions imposed by lease arrangements. Operating Lease – As a Lessor  L  7KH&RPSDQ\KDVHQWHUHGLQWRQRQŞFDQFHOODEOHOHDVHDUUDQJHPHQWVWRSURYLGHGDUNnjEHURQLQGHIHDVLEOHULJKWRI use (IRU) basis and certain premises on lease. Due to the nature of the transaction, it is not possible to compute gross carrying amount, depreciation for the year and accumulated depreciation of the asset given on operating lease as of March 31, 2016 and accordingly, disclosures required by AS 19 are not provided. ii) The future minimum lease payments receivable are: (` Millions) As of As of Particulars March 31, 2016 March 31, 2015 Not later than one year 337 328 /DWHUWKDQRQH\HDUEXWQRWODWHUWKDQǟYH\HDUV 1,344 1,207 /DWHUWKDQǟYH\HDUV 430 904 Total 2,111 2,439 b) Finance Lease – As a Lessee i) Finance Lease obligation of the Company as lessee as of March 31, 2016 is as follow:-

(` Millions) Particulars Future minimum Interest Present value lease payments Not later than one year 713 92 621 /DWHUWKDQRQH\HDUEXWQRWODWHUWKDQǟYH 1,519 228 1,291 years /DWHUWKDQǟYH\HDUV    Total 2,232 320 1,912

Standalone Financial Statements (IGAAP) 181 Transformational Network

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Finance Lease obligation of the Company as lessee as of March 31, 2015 is as follow:- (` Millions) Particulars Future minimum Interest Present value lease payments Not later than one year 42 12 30 /DWHUWKDQRQH\HDUEXWQRWODWHUWKDQǟYH 117 16 101 years /DWHUWKDQǟYH\HDUV    Total 159 28 131

 LL  )LQDQFH/HDVHŞ$VD/HVVRU The future minimum lease payments receivable of the Company as of March 31, 2016 is as follows:

(` Millions) Particulars Future minimum Interest Present value lease payments Not later than one year 126 33 94 /DWHUWKDQRQH\HDUEXWQRWODWHUWKDQǟYH 297 37 260 years /DWHUWKDQǟYH\HDUV    Total 423 70 354

The future minimum lease payments receivable of the Company as of March 31, 2015 is as follows:

(` Millions) Particulars Future minimum Interest Present value lease payments Not later than one year 45 13 32 /DWHUWKDQRQH\HDUEXWQRWODWHUWKDQǟYH 123 17 106 years /DWHUWKDQǟYH\HDUV    Total 168 30 138

49. Employee Stock Compensation share held as at September 30, 2001, as a result of (i) Pursuant to the shareholders’ resolutions dated which the total number of shares allotted to the trust February 27, 2001 and September 25, 2001, the increased to 15,840,000 (face value ` 10 each) equity Company introduced the “Bharti Tele-Ventures shares (31,680,000 equity shares post share split of Employees’ Stock Option Plan” (hereinafter called “the one equity share of ` 10 each into 2 equity shares of Old Scheme”) under which the Company decided to ` 5 each). grant, from time to time, options to the employees of the Company and its subsidiaries. The grant of options (iii) Pursuant to the shareholders’ resolution dated to the employees under the Old Scheme is on the basis September 6, 2005, the Company announced a new of their performance and other eligibility criteria. Employee Stock Option Scheme (hereinafter called “the New Scheme”) under which the maximum (ii) On August 31, 2001 and September 28, 2001, the quantum of options was determined at 9,367,276 Company issued a total of 1,440,000 (face value (face value ` 10 each) options to be granted to the ` 10 each) equity shares at a price of ` 565 per equity share ( 2,880,000 equity shares post split of one employees from time to time on the basis of their equity share of ` 10 each into 2 equity shares of ` 5 performance and other eligibility criteria. (18,734,552 each) to the Trust. The Company issued bonus shares equity shares post share split of one equity share of in the ratio of 10 equity shares for every one equity ` 10 each into 2 equity shares of ` 5 each)

182 Annual Report 2015-16 126-355 Bharti Airtel Limited 02-39 | Corporate Overview 40-125 | Statutory Reports Financial Statements

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(iv) The following table provides an overview of all existing share option plans of the Company:

As of March 31, 2016 As of March 31, 2015 Share Weighted Share Weighted Year of Vesting Contractual options average options average Scheme Plan issuance period term granted exercise granted exercise of plan (years) (years) (thousands) price (thousands) price Equity settled Plans Scheme I 3ODQ 2002  7 30,893 21.25 30,893 21.25 Scheme I 3ODQ 2004  7 4,380 35.00 4,380 35.00 Scheme I 6XSHUSRW 2004  7 143  143  Scheme I 2006 Plan 2006  7 5,489 5.48 5,489 5.48 Scheme 2005 3ODQ 2005  7 11,260 237.06 11,260 237.06 2008 Plan & Scheme 2005 Annual 2008  7 8,817 352.13 8,817 352.13 Grant Plan (AGP) Performance Scheme 2005 Share Plan (PSP) 2009  7 1,691 5.00 1,691 5.00 2009 Plan Special ESOP & Scheme 2005 Restricted Share 2010  7 3,615 5.00 3,615 5.00 Units (RSU) Plan /RQJ7HUP Scheme 2005 ,QFHQWLYH /7,  2011  7 433 5.00 433 5.00 Plan Scheme 2005 /7,3ODQ 2012  7 1,649 5.00 1,649 5.00 Scheme 2005 /7,3ODQ 2015  7 1,576 5.00  Cash settled Plans Performance Performance Unit Unit Plan (PUP) 2013  3 2,283  2,283  Plan (PUP) 2013 2013 Performance Performance Unit Unit Plan (PUP) 2014   4,017  4,006  Plan (PUP) 2014 2014 Performance Performance Unit Unit Plan (PUP) 2015  3 7    Plan (PUP) 2015 2015 * Contractual term has expired

(v) The following table exhibits the net compensation expenses arising from share based payment transaction:

(` Millions) Year ended March Year ended March Particulars 31, 2016 31, 2015 ([SHQVHVDULVLQJIURPHTXLW\VHWWOHGVKDUHEDVHGSD\PHQW 204 (6) transactions ([SHQVHVDULVLQJIURP&DVKVHWWOHGVKDUHEDVHGSD\PHQW 360 555 transactions 564 549

(vi) The total carrying value of cash settled share based compensation liability is `697 Mn and ` 658 as of March 31, 2016 and March 31, 2015, respectively.

Standalone Financial Statements (IGAAP) 183 Transformational Network

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(vii) The information concerning stock options granted, exercised, forfeited and outstanding at the year-end is as follows:

As of March 31, 2016 As of March 31, 2015 Particulars Number of Weighted average Number of Weighted average share options exercise price share options exercise price (thousands) (`) (thousands) (`) Equity Settled Plans Scheme I - 2006 Plan 2XWVWDQGLQJDWEHJLQQLQJRI\HDU 390 5.00 539 6.74 Granted       225 5.00 Exercised (75) 5.00 (98) 14.38 Forfeited / Expired (10) 5.00 (276) 5.00 Outstanding at end of year 305 5.00 390 5.00 ([HUFLVDEOHDWHQGRI\HDU 30 5.00 65 5.00 Scheme 2005 - 2005 Plan 2XWVWDQGLQJDWEHJLQQLQJRI\HDU       1,008 436.06 Granted             Exercised             Forfeited / Expired       (1,008) 436.06 Outstanding at end of year             ([HUFLVDEOHDWHQGRI\HDU             Scheme 2005 - 2008 Plan & AGP 2XWVWDQGLQJDWEHJLQQLQJRI\HDU 2,534 355.45 3,439 354.54 Granted             Exercised (686) 334.89 (173) 327.20 Forfeited / Expired (1,209) 342.24 (732) 357.85 Outstanding at end of year 639 402.50 2,534 355.45 ([HUFLVDEOHDWHQGRI\HDU 639 402.50 2,534 355.45 Scheme 2005 - PSP 2009 Plan 2XWVWDQGLQJDWEHJLQQLQJRI\HDU 83 5.00 242 5.00 Granted             Exercised (22) 5.00 (159) 5.00 Forfeited / Expired (8) 5.00    5.00 Outstanding at end of year 53 5.00 83 5.00 ([HUFLVDEOHDWHQGRI\HDU 53 5.00 83 5.00 Scheme 2005 - Special ESOP & RSU Plan 2XWVWDQGLQJDWEHJLQQLQJRI\HDU 189 5.00 408 5.00 Granted             Exercised (44) 5.00 (178) 5.00 Forfeited / Expired (19) 5.00 (41) 5.00 Outstanding at end of year 126 5.00 189 5.00 ([HUFLVDEOHDWHQGRI\HDU 126 5.00 189 5.00 Scheme 2005 - LTI Plan (2011, 2012 & 2015) 2XWVWDQGLQJDWEHJLQQLQJRI\HDU 523 5.00 1,072 5.00 Granted 1,576 5.00 67 5.00 Exercised (201) 5.00 (356) 5.00 Forfeited / Expired (189) 5.00 (260) 5.00 Outstanding at end of year 1,709 5.00 523 5.00 ([HUFLVDEOHDWHQGRI\HDU 208 5.00 230 5.00

184 Annual Report 2015-16 126-355 Bharti Airtel Limited 02-39 | Corporate Overview 40-125 | Statutory Reports Financial Statements

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As of March 31, 2016 As of March 31, 2015 Particulars Number of Weighted average Number of Weighted average share options exercise price share options exercise price (thousands) (`) (thousands) (`) Cash Settled Plan PUP 2013 2XWVWDQGLQJDWEHJLQQLQJRI\HDU 962    1,978    Granted       116    Exercised (381)    (589)    Forfeited / Expired (208)    (542)    Outstanding at end of year 373    962    ([HUFLVDEOHDWHQGRI\HDU             PUP 2014 1XPEHURIVKDUHVXQGHURSWLRQ 2XWVWDQGLQJDWEHJLQQLQJRI\HDU 3,839          Granted 11    4,006    Exercised (441)          Forfeited / Expired (671)    (167)    Outstanding at end of year 2,738    3,839    ([HUFLVDEOHDWHQGRI\HDU             PUP 2015 1XPEHURIVKDUHVXQGHURSWLRQ 2XWVWDQGLQJDWEHJLQQLQJRI\HDU             Granted 7          Exercised             Forfeited / Expired             Outstanding at end of year 7          ([HUFLVDEOHDWHQGRI\HDU            

(viii) The following table summarises information about options exercised and granted during the year and about options outstanding and their remaining contractual life: March 2016

Options Outstanding Options Granted during the Options Excercised during as of March 31, 2016 year ended the year ended March 31, 2016 March 31, 2016 Plan Options Exercise Weighted Options Wtd Avg Options Weighted (thousands) price average (thousands) Fair Value (thousands) average remaining share price contractual life (years) Equity settled Plans 2006 Plan 305 5.00 5.00       75 350.45 2008 Plan & AGP 639 402.50 0.25       686 397.45 PSP 2009 Plan 53 5.00 0.69       22 367.51 Special ESOP & 126 5.00 1.20       44 319.66 RSU Plan /7,3ODQ  1,709 5.00 5.98 1,576 398.32 201 348.28 2012 & 2015) Cash settled Plans PUP 2013 373  0.37   381 417.90 PUP 2014 2,738  2.05 11 373.40 441 423.32 PUP 2015 7  2.35 7 342.44      

Standalone Financial Statements (IGAAP) 185 Transformational Network

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March 2015

Options Outstanding Options Granted during the Options Excercised during as of March 31, 2015 year ended the year ended March 31, 2015 March 31, 2015 Plan Options Exercise Weighted Options Wtd Avg Options Weighted (thousands) price average (thousands) Fair Value (thousands) average remaining share price contractual life (years) Equity settled Plans 2006 Plan 390 5.00 to 5.86 225 361.19 98 371.70 110.50 2008 Plan & AGP 2,534 295.00 0.63       173 383.30 to 402.50 PSP 2009 Plan 83 5.00 1.87       159 352.26 Special ESOP & 189 5.00 2.26       178 350.09 RSU Plan /7,3ODQ   523 5.00 4.27 67 291.63 356 368.36 2012) Cash settled Plans PUP 2013 962 1.37 116 378.92 589 354.24 PUP 2014 3,839  2.89 4,006 389.59      

(ix) The fair value of the options granted was estimated on the date of grant using the Black- Scholes / Monte Carlo Lattice valuation model with the following assumptions:

(` Millions) Year ended March Year ended March Particulars 31, 2016 31, 2015 Risk free interest rates 6.86% to 7.83% 7.64% to 8.65% Expected life 4 to 60 months 11 to 72 months Volatility 26.63% to 27.45% 27.36% to 30.73% Dividend yield 0.54% to 0.63% 0.46% to 0.48% Wtd average share price on measurement date 350.9 to 411.7 373.7 to 393.9 Wtd average exercise price on measurement date 0 to 5 0 to 5

The volatility of the options is based on the historical volatility of the share price since the Company’s equity shares became publicly traded.

(x) Bharti Infratel Limited (BIL) has given stock options to certain employees of the Company and the corresponding compensation cost is borne by BIL.

186 Annual Report 2015-16 126-355 Bharti Airtel Limited 02-39 | Corporate Overview 40-125 | Statutory Reports Financial Statements

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50. Forward Contracts & Derivative Instruments and Unhedged Foreign Currency Exposure  7KH&RPSDQ\šVDFWLYLWLHVH[SRVHLWWRDYDULHW\RInjQDQFLDOULVNVLQFOXGLQJWKHHNjHFWVRIFKDQJHVLQIRUHLJQFXUUHQF\ H[FKDQJH UDWHV DQG LQWHUHVW UDWHV 7KH &RPSDQ\ XVHV GHULYDWLYH njQDQFLDO LQVWUXPHQWV VXFK DV IRUHLJQ H[FKDQJH FRQWUDFWV RSWLRQ FRQWUDFWV DQG LQWHUHVW UDWH VZDSV WR PDQDJH LWV H[SRVXUHV WR IRUHLJQ H[FKDQJH ǍXFWXDWLRQV DQG changes in interest rate. The following table details the status of the Company’s exposure:

(` Millions) Sr. Notional Value Notional Value Particulars No (March 31, 2016) (March 31, 2015) A For Loan related exposures * a) Forwards 1,655 7,023 E 2SWLRQV 20,802 19,115 Total 22,457 26,138 B For Trade related exposures * a) Forwards 15,537 9,326 E 2SWLRQV 13,317 3,818 c) Interest Rate Swaps     Total 28,854 13,144 C Unhedged foreign currency borrowing 88,560 26,075 D Unhedged foreign currency payables 17,055 33,468 E Unhedged foreign currency receivables 45,742 43,104 * All derivatives are taken for hedging purposes only and trade related exposure includes hedges taken for forecasted receivables. The Company has accounted for derivatives, which are covered under the Announcement issued by the ICAI, on mark- to-market basis and has recorded reversal of loss ` 133 Mn (including reversal of loss of ` 125 Mn towards embedded derivatives) for the year ended March 31, 2016 [recorded reversal of loss of ` 258 Mn (including reversal of loss of ` 196 Mn towards embedded derivatives) for the year ended March 31, 2015].

51. D  7KH%RDUGRI'LUHFWRUVLQLWVPHHWLQJKHOGRQ$SULOSURSRVHGDnjQDOGLYLGHQGRI` 2.22 per equity share of `HDFK RIIDFHYDOXH IRUnjQDQFLDO\HDUZKLFKZDVGXO\DSSURYHGE\WKHVKDUHKROGHUVRIWKH Company in the Annual General Meeting held on August 21, 2015. b) During the year ended March 31, 2015, on August 13, 2014, the Board of Directors declared an interim dividend for ` 1.63 per equity share of ` 5.00 each (32.6% of face value)

c) Net dividend remitted in foreign exchange: (` Millions) During the year ended During the year ended Particulars March 31, 2016 March 31, 2015 1XPEHURIQRQUHVLGHQWVKDUHKROGHUV 3 4 1XPEHURIHTXLW\VKDUHVKHOGRQZKLFKGLYLGHQGZDV 861 862 due (Nos. in Million) Amount remitted (` in Millions) 1,912 2,958 Amount remitted (USD in Millions) 29 49

d) Dividend of ` 1.36 per share (Face value per share ` SURSRVHGIRUWKHnjQDQFLDO\HDU

Standalone Financial Statements (IGAAP) 187 Transformational Network

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52. Movement in Provision  D  'RXEWIXO'HEWV$GYDQFHV (` Millions) For the year ended For the year ended Particulars March 31, 2016 March 31, 2015 %DODQFHDWWKHEHJLQQLQJRIWKH\HDU# 19,569 16,466 $GGLWLRQ3URYLVLRQIRUWKH\HDU 5,891 6,018 $SSOLFDWLRQ:ULWHRNjRIEDGGHEWV QHWRIUHFRYHU\ (4,391) (2,915) Balance at the end of the year# 21,069 19,569 # includes provision for doubtful TDS receivable of ` 732 Mn (March 31, 2015 ` 582 Mn) grouped under Advance tax

b) Subjudice Matters The Company is involved in various litigations, the outcomes of which are considered probable, and in respect of which the Company has made aggregate provisions of ` 75,196 Mn as at March 31, 2016 (March 31, 2015 ` 55,205 Mn). The movement of provision towards subjudice matters disclosed under other non-current assets (refer note 19) and other current liabilities (refer note 13)

(` Millions) For the year ended For the year ended Particulars March 31, 2016 March 31, 2015 Opening Balance 55,205 42,296 Additions (net) 19,991 12,909 Closing Balance 75,196 55,205

53. Details of debt covenant w.r.t. the Company’s 3G/BWA In September 2001, in response to the demand raised borrowings: by DoT, the Company had paid ` 4,856 Mn to DoT under protest subject to resolution of the dispute through The loan agreements with respect to 3G/BWA arbitration. Consequently, the license was restored borrowings contains a negative pledge covenant and an arbitrator was appointed for settlement of the that prevents the Company to create or allow to exit dispute. Arbitrator awarded an unfavourable order, any security interest on any of its assets without prior which was challenged by the Company before Hon’ble written consent of the lenders except in certain agreed Delhi High Court. circumstances. (refer note 4) On September 14, 2012, Hon’ble Delhi High court The Company (M/s J T Mobiles Limited subsequently 54. passed an order setting aside the award passed by merged with the Company) was awarded license by the arbitrator. DoT in the meanwhile has preferred DoT to operate cellular services in the state of Punjab DQ $SSHDO LQFOXGLQJ FRQGRQDWLRQ RI GHOD\ LQ njOLQJ RI in December 1995. On April 18, 1996, the Company appeal, which is presently pending before the Division obtained the permission from DoT to operate the Bench of the Delhi High Court. The Appeal of DoT on Punjab license through its wholly owned subsidiary, the issue of condonation of delay was allowed on July Evergrowth Telecom Limited (ETL). In December 1996, 16, 2013. However, the Company on October 30, 2013 DoT raised argument that the permission dated April KDV njOHG WKH ZULW 3HWLWLRQ IRU UHFRYHU\ RI /LFHQVH IHH   KDV QRW EHFRPH HNjHFWLYH DQG FDQFHOOHG in Delhi High Court, notice issued by HC and listed for the permission to operate, which was subsequently hearing on May 12, 2015. reinstated on March 10, 1998 (the period from April 18, 1996 to March 10, 1998 has been hereinafter referred 55. 3UHYLRXV \HDU njJXUHV KDYH EHHQ UHJURXSHG  to as ‘blackout period’). On July 15, 1999, license was UHFODVVLnjHG ZKHUH QHFHVVDU\ WR FRQIRUP WR FXUUHQW terminated due to alleged non-payment of license fees, \HDUšVFODVVLnjFDWLRQ liquidated damages and related penal interest relating to blackout period.

188 Annual Report 2015-16 Consolidated Financial Statements (IGAAP)

Page Page Particulars Particulars Nos. Nos. Independent Auditor’s Report 190 23. 7UDGH5HFHLYDEOHV 226 Consolidated Balance Sheet 194 24. Cash and Bank Balances 227 &RQVROLGDWHG6WDWHPHQWRI3URǟWDQG/RVV 195 25. 6KRUWWHUP/RDQVDQG$GYDQFHV 227 Consolidated Cash Flow Statement 196 26. Other Current Assets 227 Notes to Consolidated Financial Statements 27. &RPPLWPHQWVDQG&RQWLQJHQW/LDELOLWLHV 228 1. Corporate Information 197 28. Revenue from Operations 233 2. Basis of Preparation 197 29. Other Income 233 3. Principles of Consolidation 197 4. 6XPPDU\RI6LJQLǟFDQW$FFRXQWLQJ3ROLFLHV 202 30. Cost of Goods Sold 233 5. ,QIRUPDWLRQDERXW%XVLQHVV6HJPHQWVŞ 209 31. (PSOR\HH%HQHǟW([SHQVHV 233 Primary 32. Power and Fuel, Rent, Charity and Donation 234 6. Share Capital 212 and Other Expenses 7. Reserves and Surplus 213 33. Finance Costs 235 8. /RQJ7HUP%RUURZLQJV 214 34. Depreciation and Amortisation Expense 235 9. Taxes 215 35. Exceptional Items 235 10. 2WKHU/RQJ7HUP/LDELOLWLHV 216 36. New Developments / Major Transactions 235 11. /RQJ7HUP3URYLVLRQV 216 37. Earnings Per Share 237 12. Short Term Borrowings 216 38. (PSOR\HH%HQHǟWV 237 13. 7UDGH3D\DEOHV 217 40. Details of dues to micro and small enterprises 240 14. 2WKHU&XUUHQW/LDELOLWLHV 217 DVGHǟQHGXQGHUWKH060('$FW 41. Related Party Disclosures 240 15. Short Term Provisions 218 16. 7DQJLEOH$VVHWV 218 42. /HDVH 247 17. ,QWDQJLEOH$VVHWV 220 43. Employee Stock Compensation 249 18. 1RQFXUUHQW,QYHVWPHQWV 221 44. Derivatives 254 19. /RQJWHUP/RDQVDQG$GYDQFHV 223 45. Movement in Provision 255 20. 2WKHU1RQFXUUHQW$VVHWV 223 46. Security Details 256 21. Current Investments 223 47. Interest in Joint Venture 258 22. Inventories 226 50. (NjHFWRI$FTXLVLWLRQ'LVSRVDORI6XEVLGLDULHV 263

For Other Notes 39, 48, 49 and 51 – Refer Pages 240, 258, 259 and 263 respectively. Transformational Network

Independent Auditor’s Report

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190 Annual Report 2015-16 126-355 Bharti Airtel Limited 02-39 | Corporate Overview 40-125 | Statutory Reports Financial Statements

Independent Auditor’s Report

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Independent Auditor’s Report 191 Transformational Network

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Independent Auditor’s Report

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Opinion For S.R. Batliboi & Associates LLP ,Q RXU RSLQLRQ WKH +ROGLQJ &RPSDQ\ LWV VXEVLGLDU\ Chartered Accountants FRPSDQLHV LWV DVVRFLDWH FRPSDQLHV DQG MRLQWO\ FRQWUROOHG ICAI Firm Registration Number: 101049W FRPSDQLHVZKLFKDUHFRPSDQLHVLQFRUSRUDWHGLQ,QGLDKDYH PDLQWDLQHG LQ DOO PDWHULDO UHVSHFWV DQ DGHTXDWH LQWHUQDO per Nilangshu Katriar njQDQFLDOFRQWUROVV\VWHPRYHUnjQDQFLDOUHSRUWLQJDQGVXFK 3DUWQHU LQWHUQDO njQDQFLDO FRQWUROV RYHU njQDQFLDO UHSRUWLQJ ZHUH 0HPEHUVKLS1XPEHU RSHUDWLQJ HNjHFWLYHO\ DV DW 0DUFK   EDVHG RQ WKH LQWHUQDOFRQWURORYHUnjQDQFLDOUHSRUWLQJFULWHULDHVWDEOLVKHGE\ 3ODFH*XUJDRQ WKH+ROGLQJ&RPSDQ\FRQVLGHULQJWKHHVVHQWLDOFRPSRQHQWV 'DWH$SULO

Independent Auditor’s Report 193 Transformational Network

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(` Millions) As of As of Particulars Notes March 31, 2016 March 31, 2015 Equity and Liabilities Shareholders' Funds Share capital 6 19,987 19,987 Reserves and surplus 7 402,989 377,783 Minority Interest 74,465 68,906 Non-current Liabilities Long-term borrowings 8 897,745 611,161 Deferred tax liabilities (Net) 9 46,028 25,598 Other long-term liabilities 10 45,340 43,919 Long-term provisions 11 18,598 17,970 Current Liabilities Short-term borrowings 12 57,238 88,138 Trade payables 13 - total outstanding due of micro enterprises and small 34 72 enterprises - total outstanding due of creditors other than micro 174,683 160,702 enterprises and small enterprises Other current liabilities 14 349,766 389,752 Short-term provisions 15 12,565 20,360 Total 2,099,438 1,824,348 Assets Non-current Assets Fixed Assets Tangible assets 16 732,172 690,512 Intangible assets 17 887,780 552,274 Capital work-in-progress 48,522 49,553 Intangible assets under development 17 9,725 124,595 Non-current investments 18 24,325 27,434 Deferred tax assets (Net) 9 7,643 4,958 Long-term loans and advances 19 109,745 99,262 Other non-current assets 20 71,461 56,616 Current Assets Current investments 21 14,851 80,086 Inventories 22 1,691 1,339 Trade receivables 23 58,681 52,072 Cash and bank balances 24 51,388 20,831 Short-term loans and advances 25 65,485 44,535 Other current assets 26 15,969 20,281 Total 2,099,438 1,824,348

7KHDFFRPSDQ\LQJQRWHVIRUPDQLQWHJUDOSDUWRIWKHVHFRQVROLGDWHGǟQDQFLDOVWDWHPHQWV As per our report of even date For S. R. Batliboi & Associates LLP For and on behalf of the Board of Directors of Bharti Airtel Limited Chartered Accountants ICAI Firm Registration No: 101049W per Nilangshu Katriar Sunil Bharti Mittal Gopal Vittal Partner Chairman Managing Director Membership No: 58814 & CEO (India & South Asia)

Place: Gurgaon Rajendra Chopra Nilanjan Roy Date: April 27, 2016 Company Secretary *OREDO&KLHI)LQDQFLDO2njFHU

194 Annual Report 2015-16 126-355 Bharti Airtel Limited 02-39 | Corporate Overview 40-125 | Statutory Reports Financial Statements

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(` Millions, except per share data and as stated otherwise) For the year ended For the year ended Particulars Notes March 31, 2016 March 31, 2015 Income Revenue from operations 28 1,009,373 961,007 Other income 29 11,098 20,958 Total Income 1,020,471 981,965 Expenses Access charges 109,423 112,759 License fee and spectrum charges (revenue share) 95,952 89,060 Cost of goods sold 30 6,291 2,796 (PSOR\HHEHQHǟWH[SHQVHV 31 51,003 48,570 Power and fuel 32 82,474 84,398 Rent 32 65,899 55,409 Charity and donation 32 1,390 1,422 Other expenses 32 229,906 230,573 Total Expenses 642,338 624,987 3URǂWEHIRUHǂQDQFHFRVWVGHSUHFLDWLRQDPRUWLVDWLRQ 378,133 356,978 exceptional items and taxation Finance costs 33 87,018 44,465 Depreciation and amortisation 34 213,674 198,583 3URǂWEHIRUHH[FHSWLRQDOLWHPVDQGWD[ 77,441 113,930 Exceptional items 35 (29,236) 8,532 3URǂWEHIRUHWD[ 106,677 105,398 Tax Expense (including tax on exceptional items) Current tax 50,908 59,488 MAT credit (17,641) (7,790) Deferred tax 19,105 3,169 3URǂWDIWHUWD[ 54,305 50,531 Share of loss of associates - (53) 3URǟWDWWULEXWDEOHWRPLQRULW\LQWHUHVW 9,739 4,270 3URǂWDWWULEXWDEOHWRHTXLW\VKDUHKROGHUV 44,566 46,208 Earnings per share (equity shares of par value ` 5 each) 37 Basic and Diluted (In ` )  

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As per our report of even date For S. R. Batliboi & Associates LLP For and on behalf of the Board of Directors of Bharti Airtel Limited Chartered Accountants ICAI Firm Registration No: 101049W per Nilangshu Katriar Sunil Bharti Mittal Gopal Vittal Partner Chairman Managing Director Membership No: 58814 & CEO (India & South Asia)

Place: Gurgaon Rajendra Chopra Nilanjan Roy Date: April 27, 2016 Company Secretary *OREDO&KLHI)LQDQFLDO2njFHU

Consolidated Financial Statements (IGAAP) 195 Transformational Network

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(` Millions) For the year ended For the year ended Particulars March 31, 2016 March 31, 2015 A. &DVKǃRZVIURPRSHUDWLQJDFWLYLWLHV 3URǟWEHIRUHWD[ 106,677 105,398 Adjustments for: Depreciation and amortisation 213,675 198,583 Exceptional items (38,815) 1,941 Finance income (8,756) (12,240) Finance costs and foreign exchange loss / (gain) 87,020 39,008 Expenses on employee stock option plan 248 (4) 3URǟW ORVVRQVDOHRIDVVHWV QHW  (671) (964) 2SHUDWLQJFDVKǃRZVEHIRUHFKDQJHVLQDVVHWVDQGOLDELOLWLHV 359,378 331,722 Adjustments for changes in assets and liabilities : - Increase in trade receivables (3,681) (9,338) - Increase in other receivables (3,816) (8,701) - Increase in inventories (872) (2) - Increase in trade and other payables 3,830 14,935 - (Decrease) / increase in provisions (106) 1,071 Cash generated from operations 354,733 329,687 Income taxes paid (52,549) (49,097) 1HWFDVKǃRZVIURPRSHUDWLQJDFWLYLWLHV 302,184 280,590 B. &DVKǃRZVIURPLQYHVWLQJDFWLYLWLHV Purchase of tangible assets (204,228) (156,539) Purchase of intangible assets (81,452) (65,970) Proceeds from sale of tangible assets 4,543 3,592 Sale / (purchase) of investments (net) 67,743 (565) Purchase of non-current investments (3,218) (3,078) Sale of non-current investments 7,642 5,618 Acquisition of subsidiary, net of cash acquired (135) (358) Sale of tower assets 56,821 1,021 Proceeds from sale of interest in joint venture 55 - Loan given to associate - (154) Net purchase of bank deposits (5,625) (8,468) Interest received 3,772 1,367 Dividend received 118 480 1HWFDVKǃRZVXVHGLQLQYHVWLQJDFWLYLWLHV (153,964) (223,054) C. &DVKǃRZVIURPǂQDQFLQJDFWLYLWLHV Proceeds from borrowings 197,669 349,834 Repayments of borrowings (328,815) (433,175) Net proceeds from short-term borrowings 10,803 6,262 3URFHHGVIURPVDOHDQGǟQDQFHOHDVHEDFNRIWRZHUV 48,120 - 5HSD\PHQWRIǟQDQFHOHDVHOLDELOLWLHV (2,593) - Proceeds from exercise of share options 569 552 Dividend paid (including tax) (16,146) (23,472) ,QWHUHVWDQGRWKHUǟQDQFHFKDUJHVSDLG (35,290) (36,513) Sale of stake in a subsidiary to minority interest 984 40,412 Acquisition of minority interest - (624) 1HWFDVKǃRZVXVHGLQǂQDQFLQJDFWLYLWLHV (124,699) (96,724) Net increase / (decrease) in cash and cash equivalents during the year 23,521 (39,188) (NjHFWRIH[FKDQJHUDWHFKDQJHVRQFDVKDQGFDVKHTXLYDOHQWV 1,342 43 Add : Cash and cash equivalents at the beginning of the year 11,975 51,120 Cash and cash equivalents at the end of the year 36,838 11,975 Cash and cash equivalents comprise: Cash and cheques on hand 992 1,356 Balances with bank 15,054 7,769 Deposits with original maturity of three months or less 20,792 2,850 Total cash and cash equivalents 36,838 11,975 Notes :  )LJXUHVLQEUDFNHWVLQGLFDWHFDVKRXWǠRZ     7KHDERYHFDVKǠRZVWDWHPHQWKDVEHHQSUHSDUHGXQGHUWKHLQGLUHFWPHWKRGVHWRXWLQ$6Š&DVK)ORZ6WDWHPHQWVšQRWLǟHGXQGHU6HFWLRQRIWKH&RPSDQLHV $FWUHDGZLWKUXOHRIWKH&RPSDQLHV $FFRXQWV 5XOHVLVVXHGE\0LQLVWU\RI&RUSRUDWH$NjDLUV  3UHYLRXV\HDUǟJXUHVKDYHEHHQUHJURXSHGDQGUHFDVWZKHUHYHUQHFHVVDU\WRFRQIRUPWRWKHFXUUHQW\HDUFODVVLǟFDWLRQ

7KHDFFRPSDQ\LQJQRWHVIRUPDQLQWHJUDOSDUWRIWKHVHFRQVROLGDWHGǟQDQFLDOVWDWHPHQWV As per our report of even date For S. R. Batliboi & Associates LLP For and on behalf of the Board of Directors of Bharti Airtel Limited Chartered Accountants ICAI Firm Registration No: 101049W per Nilangshu Katriar Sunil Bharti Mittal Gopal Vittal Partner Chairman Managing Director Membership No: 58814 & CEO (India & South Asia) Place: Gurgaon Rajendra Chopra Nilanjan Roy Date: April 27, 2016 Company Secretary *OREDO&KLHI)LQDQFLDO2njFHU

196 Annual Report 2015-16 126-355 Bharti Airtel Limited 02-39 | Corporate Overview 40-125 | Statutory Reports Financial Statements

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Consolidated Financial Statements (IGAAP) 197 Transformational Network

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3HUFHQWDJHRIRZQHUVKLSLQWHUHVW DQGYRWLQJSRZHU GLUHFW S. Country of Name of entity indirect) - No. Incorporation HǁHFWLYHVKDUHKROGLQJKHOGE\WKH Group As of As of March 31, 2016 March 31, 2015 % % Airtel Bangladesh Limited 1 Bangladesh 100 100 (refer note 36(d)) 2 Airtel M Commerce Services Limited India  100 3 Bangladesh Infratel Networks Limited# Bangladesh 100 100 4 Bharti Airtel (Canada) Limited## Canada - 100 5 Bharti Airtel (France) SAS France 100 100 6 Bharti Airtel (Hongkong) Limited Hongkong 100 100 7 Bharti Airtel (Japan) Kabushiki Kaisha Japan 100 100 8 Bharti Airtel Services Limited India 100 100 9 Bharti Airtel (UK) Limited United Kingdom 100 100 United States of 10 Bharti Airtel (USA) Limited 100 100 America 11 Bharti Airtel Holdings (Singapore) Pte Ltd Singapore 100 100 Bharti Airtel International (Mauritius) 12 Mauritius 100 100 Limited Bharti Airtel International (Netherlands) 13 Netherlands 100 100 %9 14 Bharti Airtel Lanka (Private) Limited Sri Lanka 100 100 15 Bharti Hexacom Limited India 70 70 Indo Teleports Limited (formerly known as 16 India 95 - Bharti Teleports Limited)@ 17 Bharti Infratel Lanka (Private) Limited# Sri Lanka 100 100 18 Bharti Infratel Limited India   19 Bharti Infratel Services Limited*# India   Smartx Services Limited 20 India  - VXEVLGLDU\ZHI6HSWHPEHU 21 %KDUWL,QWHUQDWLRQDO 6LQJDSRUH 3WH/WG Singapore 100 100 22 Bharti Telemedia Limited India 95 95 23 Network i2i Limited Mauritius 100 100 24 Telesonic Networks Limited India 100 100 Airtel Broadband Services Private Limited 25 PHUJHGZLWK%KDUWL$LUWHO/LPLWHGZHI India - 100 April 9, 2015) 26 Nxtra Data Limited India 100 100 27 Wynk Limited India 100 100 28 $IULFD7RZHUV19 Netherlands 100 100 29 Africa Towers Services Limited Kenya 100 100 30 Airtel Ghana Limited^ Ghana 75 75 31 Airtel (Seychelles) Limited Seychelles 100 100 32 Airtel (SL) Limited Sierra Leone 100 100 33 $LUWHO%XUNLQD)DVR6$ Burkina Faso 100 100 34 $LUWHO&RQJR6$ Congo Brazzavile 90 90

198 Annual Report 2015-16 126-355 Bharti Airtel Limited 02-39 | Corporate Overview 40-125 | Statutory Reports Financial Statements

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3HUFHQWDJHRIRZQHUVKLSLQWHUHVW DQGYRWLQJSRZHU GLUHFW S. Country of Name of entity indirect) - No. Incorporation HǁHFWLYHVKDUHKROGLQJKHOGE\WKH Group As of As of March 31, 2016 March 31, 2015 % % 35 Airtel DTH Services (SL) Limited^^ Sierra Leone 100 100 Democratic Republic 36 $LUWHO'7+6HUYLFHV&RQJR 5'& 6SUO## - 100 of Congo 37 Airtel DTH Services Nigeria Limited# Nigeria 100 100 38 $LUWHO*DERQ6$ Gabon 90 90 39 $LUWHO0DGDJDVFDU6$ Madagascar 100 100 40 Airtel Malawi Limited Malawi 100 100 41 Airtel Mobile Commerce (SL) Limited Sierra Leone 100 100 42 $LUWHO0RELOH&RPPHUFH%9 Netherlands 100 100 43 $LUWHO0RELOH&RPPHUFH%XUNLQD)DVR6$ Burkina Faso 100 100 44 Airtel Mobile Commerce (Ghana) Limited Ghana 75 100 45 $LUWHO0RELOH&RPPHUFH+ROGLQJV%9 Netherlands 100 100 46 Airtel Mobile Commerce (Kenya) Limited Kenya 100 100 47 Airtel Mobile Commerce Limited Malawi 100 100 48 $LUWHO0RELOH&RPPHUFH0DGDJDVFDU6$ Madagascar 100 100 49 Airtel Mobile Commerce Rwanda Limited Rwanda 100 100 Airtel Mobile Commerce (Seychelles) 50 Seychelles 100 100 Limited Airtel Mobile Commerce (Tanzania) 51 Tanzania 100 100 Limited 52 $LUWHO0RELOH&RPPHUFH7FKDG6DUO Chad 100 100 53 Airtel Mobile Commerce Uganda Limited Uganda 100 100 54 Airtel Mobile Commerce Zambia Limited Zambia 100 100 Democratic Republic 55 $LUWHO0RQH\ 5'& 6$ 100 100 of Congo 56 $LUWHO0RQH\1LJHU6$ Niger 90 100 57 $LUWHO0RQH\6$ *DERQ Gabon 100 100 58 Airtel Networks Kenya Limited^ Kenya 100 100 59 Airtel Networks Limited Nigeria   60 Airtel Networks Zambia Plc Zambia   61 Airtel Rwanda Limited Rwanda 100 100 62 Airtel Tanzania Limited Tanzania 60 60 63 $LUWHO7FKDG6$ Chad 100 100 64 Airtel Towers (Ghana) Limited Ghana 75 75 65 Airtel Towers (SL) Company Limited Sierra Leone 100 100 66 Airtel Uganda Limited^ Uganda 100 100 67 %KDUWL$LUWHO$IULFD%9 Netherlands 100 100 68 %KDUWL$LUWHO%XUNLQD)DVR+ROGLQJV%9 Netherlands 100 100 69 %KDUWL$LUWHO&KDG+ROGLQJV%9 Netherlands 100 100 70 %KDUWL$LUWHO&RQJR+ROGLQJV%9 Netherlands 100 100 71 Bharti Airtel Developers Forum Limited Zambia  100 72 %KDUWL$LUWHO'7++ROGLQJV%9 Netherlands 100 100 73 %KDUWL$LUWHO*DERQ+ROGLQJV%9 Netherlands 100 100 74 %KDUWL$LUWHO*KDQD+ROGLQJV%9 Netherlands 100 100 75 %KDUWL$LUWHO.HQ\D%9 Netherlands 100 100

Consolidated Financial Statements (IGAAP) 199 Transformational Network

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3HUFHQWDJHRIRZQHUVKLSLQWHUHVW DQGYRWLQJSRZHU GLUHFW S. Country of Name of entity indirect) - No. Incorporation HǁHFWLYHVKDUHKROGLQJKHOGE\WKH Group As of As of March 31, 2016 March 31, 2015 % % 76 %KDUWL$LUWHO.HQ\D+ROGLQJV%9 Netherlands 100 100 77 %KDUWL$LUWHO0DGDJDVFDU+ROGLQJV%9 Netherlands 100 100 78 %KDUWL$LUWHO0DODZL+ROGLQJV%9 Netherlands 100 100 79 %KDUWL$LUWHO0DOL+ROGLQJV%9 Netherlands 100 100 80 %KDUWL$LUWHO1LJHU+ROGLQJV%9 Netherlands 100 100 81 %KDUWL$LUWHO1LJHULD%9 Netherlands 100 100 82 %KDUWL$LUWHO1LJHULD+ROGLQJV%9# Netherlands 100 100 83 %KDUWL$LUWHO1LJHULD+ROGLQJV,,%9 Netherlands 100 100 84 %KDUWL$LUWHO5'&+ROGLQJV%9 Netherlands 100 100 85 %KDUWL$LUWHO6HUYLFHV%9 Netherlands 100 100 86 %KDUWL$LUWHO6LHUUD/HRQH+ROGLQJV%9 Netherlands 100 100 87 %KDUWL$LUWHO7DQ]DQLD%9 Netherlands 100 100 88 %KDUWL$LUWHO8JDQGD+ROGLQJV%9 Netherlands 100 100 89 %KDUWL$LUWHO=DPELD+ROGLQJV%9 Netherlands 100 100 90 %XUNLQD)DVR7RZHUV6$## Burkina Faso - 100 91 Celtel (Mauritius) Holdings Limited Mauritius 100 100 $LUWHO&RQJR 5'& 6$ IRUPHUO\NQRZQ Democratic Republic 92   DV&HOWHO&RQJR 5'& 6DUO of Congo 93 &HOWHO1LJHU6$ Niger 90 90 Channel Sea Management Company 94 Mauritius 100 100 (Mauritius) Limited Democratic Republic 95 &RQJR5'&7RZHUV6$ 100 100 of Congo 96 &RQJR7RZHUV6$AA Congo Brazzavile 90 90 97 *DERQ7RZHUV6$# Gabon 90 90 98 Indian Ocean Telecom Limited Jersey 100 100 99 Kenya Towers Limited (refer note 16) Kenya - 100 100 0DGDJDVFDU7RZHUV6$ Madagascar 100 100 101 Malawi Towers Limited Malawi 100 100 102 0RELOH&RPPHUFH&RQJR6$ Congo Brazzavile 100 100 103 Montana International Mauritius 100 100 104 MSI-Celtel Nigeria Limited# Nigeria 100 100 105 1LJHU7RZHUV6$## Niger - 90 Democratic Republic 106 3DUWQHUVKLS,QYHVWPHQWV6DUO 100 100 of Congo Société Malgache de Téléphone Cellulaire 107 Mauritius 100 100 6$ 108 Tanzania Towers Limited Tanzania 60 60 109 7FKDG7RZHUV6$ Chad 100 100 110 Towers Support Nigeria Limited# Nigeria   111 Uganda Towers Limited (refer note 16) Uganda - 100

200 Annual Report 2015-16 126-355 Bharti Airtel Limited 02-39 | Corporate Overview 40-125 | Statutory Reports Financial Statements

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B. Details of Joint ventures: 3HUFHQWDJHRIRZQHUVKLSLQWHUHVW Country of DQGYRWLQJSRZHU GLUHFW S.no Name of entity Incorporation LQGLUHFW HǁHFWLYHVKDUHKROGLQJ held by the Group As of As of March 31, 2016 March 31, 2015 % % 1 Indus Towers Limited * India   2 Bridge Mobile Pte Limited Singapore 10 10 3 Forum I Aviation Ltd India -  4 FireFly Networks Limited India 50 50

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204 Annual Report 2015-16 126-355 Bharti Airtel Limited 02-39 | Corporate Overview 40-125 | Statutory Reports Financial Statements

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206 Annual Report 2015-16 126-355 Bharti Airtel Limited 02-39 | Corporate Overview 40-125 | Statutory Reports Financial Statements

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Consolidated Financial Statements (IGAAP) 207 Transformational Network

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208 Annual Report 2015-16 126-355 Bharti Airtel Limited 02-39 | Corporate Overview 40-125 | Statutory Reports Financial Statements

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Consolidated Financial Statements (IGAAP) 209 Transformational Network

NotesWRFRQVROLGDWHGnjQDQFLDOVWDWHPHQWV 78,262 33,267 19,105 54,305 Millions) 106,677 ` (29,236) ( GORQJWHUPFRQWUDFWH[SHQVHV Others Unallocated Eliminations Consolidated 7RZHU Services Infrastructure Infrastructure IGLVSXWHGUHFHLYDEOHVH[SLUHGFODLPV YLVLRQVDPHQGPHQWRIWHQXUHDQGLQYDULRXVWHUPVRIWKHUHODWH Services Digital TV RIVHJPHQWUHSRUWLQJ Airtel Business Services Telemedia Telemedia Africa Mobile Services WRIGLYHVWPHQWRIWHOHFRPWRZHUVLQ$IULFDUHJXODWRU\IHHSUR RQQHWZRUNUHIDUPLQJDQGXSJUDGDWLRQSURJUDPDQGRQDFFRXQWR Mobile Services South Asia 0QZKLFKLVQHWWHGRNjIURPnjQDQFHFRVWVIRUWKHSXUSRVH ` India 18,605 588 5,558 3,217 15,530 59 53,789 3,038 - (100,384) - 127,241 (6,677) (21,133) 12,464 11,912 1,840 32,981 (27) (2,588) (310) 155,703 714,837 31,220 230,427 144,179 159,191 46,975 56,077 1,220 1,347,579 (1,129,708) 1,601,997 Services 542,274 15,866 245,774 44,420 62,625 29,119 69,295 - - - 1,009,373 560,879 16,454 251,332 47,637 78,155 29,178 123,084 3,038 - (100,384) 1,009,373 1,576,483 38,787 559,602 208,873 249,317 22,748 264,147 1,037 301,403 (1,122,959) 2,099,438 (91,543) (5,876) (73,900) (9,313) (7,478) (8,137) (22,693) - 0 5,266 (213,674) (372,418) (3,465) (57,729) (11,862) (10,550) (11,067) (22,102) - (932) 11,144 (478,981) # Exceptional items Exceptional Segment result Finance costs (Income)* Revenue from external external from Revenue customers segment Inter revenue revenues Total Particulars Particulars Mobile 3URǂWEHIRUHWD[ Tax for Provision Tax - Current Credit) (including MAT Tax - Deferred Charge (Credit)/ 1HW3URǂW /RVV  tax after items segment Other capital Period expenditure and Depreciation amortisation 31, 2016 March As of Segment assets Segment liabilities** Š([FHSWLRQDOLWHPVšVKRZQVHSDUDWHO\UHODWHVWRJDLQRQDFFRXQ RQUHVWUXFWXULQJDFWLYLWLHVLQDIHZFRXQWULHVRSHUDWLQJFRVWV Summary of the Segmental Information for the year ended and as of March 31, 2016 March ended and as of year the for the Segmental Information Summary of 6HJPHQWUHVXOWH[FOXGHVnjQDQFHLQFRPHRI #

210 Annual Report 2015-16 126-355 Bharti Airtel Limited 02-39 | Corporate Overview 40-125 | Statutory Reports Financial Statements

NotesWRFRQVROLGDWHGnjQDQFLDOVWDWHPHQWV  3,169 8,532 32,226 51,698 50,531 Millions) 105,398 ` ( RXQWRIVHWWOHPHQWRI Eliminations Consolidated RWKHUFRVWVDWWULEXWDEOHWRUHVWUXFWXULQJ

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Consolidated Financial Statements (IGAAP) 211 Transformational Network

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Geographical Segment – Secondary  ,QIRUPDWLRQFRQFHUQLQJJHRJUDSKLFDODUHDVE\ORFDWLRQRIWKHHQWLW\LVDVIROORZV (` Millions) Year ended Year ended Particulars March 31, 2016 March 31, 2015 Revenue from External customers India 729,746 666,893 Africa 245,774 264,128 Rest of the World 33,853 29,986 Total 1,009,373 961,007 Total Assets India 1,361,789 1,107,305 Africa 558,905 553,385 Rest of the World 178,744 163,658 Total 2,099,438 1,824,348 Capex India 417,358 322,226 Africa 57,738 81,226 Rest of the World 3,885 3,808 Total 478,981 407,260

6. Share Capital (` Millions) As of As of Particulars March 31, 2016 March 31, 2015 Authorised shares 5,000,000,000 (March 31, 2015 - 5,000,000,000) equity shares of 25,000 25,000 ` 5 each Issued, Subscribed and fully paid-up shares 3,997,400,102 (March 31, 2015- 3,997,400,102) equity shares of 19,987 19,987 ` 5 each 19,987 19,987  1RWH(TXLW\VKDUHVRI`HDFKZHUHDOORWHGDVIXOO\SDLGXSVKDUHVXSRQWKHFRQYHUVLRQRI)RUHLJQ&XUUHQF\&RQYHUWLEOH%RQGV )&&%V  GXULQJWKHnjQDQFLDO\HDUVIURPWR HTXLW\VKDUHVSRVWVKDUHVSOLWRIRQHHTXLW\VKDUHRI`HDFKLQWRHTXLW\VKDUHVRI `HDFK a. Terms / rights attached to Equity Shares 7KH&RPSDQ\KDVRQO\RQHFODVVRIHTXLW\VKDUHVKDYLQJSDUYDOX HRI` SHUVKDUH(DFKKROGHURIHTXLW\VKDUHVLV HQWLWOHGWRRQHYRWHSHUVKDUH7KHGLYLGHQGSURSRVHGE\WKH%RDUGRI'LUHFWRUVLVVXEMHFWWRDSSURYDORIWKHVKDUHKROGHUV LQWKHHQVXLQJ$QQXDO*HQHUDO0HHWLQJ b. Details of shareholders (as per the register of shareholders) holding more than 5% shares in the Company As of As of Particulars March 31, 2016 March 31, 2015 No. % holding No. % holding %KDUWL7HOHFRP/LPLWHG 1,802,318,492  1,747,545,460  3DVWHO/LPLWHG 591,319,300  591,319,300  ,QGLDQ&RQWLQHQW,QYHVWPHQW/LPLWHG 265,860,986  265,860,986  /,&RI,QGLD&KLOG)RUWXQH3OXV%DODQFHG 203,878,856  - - )XQG 7KUHH3LOODU3WH/LPLWHG 199,870,006  199,870,006 

212 Annual Report 2015-16 126-355 Bharti Airtel Limited 02-39 | Corporate Overview 40-125 | Statutory Reports Financial Statements

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7. Reserves and Surplus (` Millions) As of As of Particulars March 31, 2016 March 31, 2015 Capital Reserve 1,513 1,513 Securities Premium Reserve Opening balance 107,967 107,936 Additions during the year 274 31 Closing balance 108,241 107,967 Revaluation Reserve 21 21 Employee Stock Options Outstanding Opening balance 1,343 3,501 Add : Addition during the year 551 80 Less : Forfeiture/Excercise 1,130 2,238 Closing balance 764 1,343 General Reserve Opening balance 82,176 56,114 Scheme of Indus & Arrangement (1,053) (1,406) Dilution of equity in subsidiaries 825 26,059 Forfeiture of employee stock option - 1,327 Excercise of stock options 298 82 Closing balance 82,246 82,176 Reserve For Business Restructuring Opening balance 19,728 20,203 Less : Utilisation 415 475 Closing balance 19,313 19,728 Foreign Currency Translation Reserve Opening balance (86,554) (38,368) Additions during the year (12,167) (48,186) Closing balance (98,721) (86,554) 6XUSOXVLQWKH6WDWHPHQWRI3URǂWDQG/RVV Opening balance 251,589 226,007 $GG3URǟWIRUWKH\HDU 44,566 46,208 Amount available for appropriation 296,155 272,215 Appropriations: Dividend proposed (5,436) (15,390) Tax on dividend proposed (1,107) (5,236) 1HWVXUSOXVLQWKHVWDWHPHQWRISURǂWDQGORVV 289,612 251,589 Total 402,989 377,783

Consolidated Financial Statements (IGAAP) 213 Transformational Network

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 /RQJ7HUP%RUURZLQJV (` Millions) As of As of Particulars March 31, 2016 March 31, 2015 Secured )URP%DQNV 43,299 79,944 )URP2WKHUV 8 13,625 Total 43,307 93,569 Unsecured 7HUP/RDQV )URP%DQNV# 80,681 155,448 )URP2WKHUV 47,974 56,774 Total 128,655 212,222 'HIHUUHGSD\PHQWOLDELOLWLHVWRZDUGVVSHFWUXP 341,424 143,167 1RQFRQYHUWLEOHQRWHV 387,859 296,297 )LQDQFHOHDVHREOLJDWLRQV 57,871 758 Total 915,809 652,444 /HVV&XUUHQWPDWXULWLHV UHIHUQRWH )URP%DQNV 24,520 124,549 )URP2WKHUV 6,677 9,646 'HIHUUHGSD\PHQWOLDELOLWLHVWRZDUGVVSHFWUXP 25,428 - )LQDQFHOHDVHREOLJDWLRQV 4,746 657 Total 897,745 611,161   'XULQJWKH\HDUHQGHG0DUFKWKHnjQDQFLDOLQVWLWXWLRQIURPZKLFKORDQDPRXQWLQJWR`0QZDVRXWVWDQGLQJKDVEHHQFRQYHUWHGWR%DQN  ,QFOXGHVUHERUURZDEOHWHUPORDQVRI`0QDQG`1LODVRI0DUFKDQG0DUFKUHVSHFWLYHO\ZKLFKKDYHGDLO\SUHSD\PHQWǍH[LELOLW\  D5HIHU1RWH D IRU'HIHUUHGSD\PHQWOLDELOLWLHVWRZDUGVVSHFWUXP  E5HIHUQRWHIRUVHFXULW\GHWDLOVRQWKHERUURZLQJV  F'HWDLOVUHODWLQJWRFXUUHQF\LQWHUHVWUDWHDQGPDWXULW\SURnjOHRIORQJWHUPERUURZLQJV

March 2016: (` Millions) Currency of Rate of Interest As of 0DWXULW\3URǂOH ERUURZLQJV (Weighted March 31, 2016 Within one %HWZHHQ %HWZHHQ More than average) year one and WZRDQG ǂYH\HDUV WZR\HDUV ǂYH\HDUV INR  378,814 33,622 31,139 104,652 209,401 USD  402,853 22,431 25,900 77,331 277,191 EURO  136,357 943 943 78,247 56,224 Others  41,092 4,375 2,950 33,767 - Total 959,116 61,371 60,932 293,997 542,816

March 2015: (` Millions) Currency of Rate of Interest As of 0DWXULW\3URǂOH ERUURZLQJV (Weighted March 31, 2015 Within one EHWZHHQ %HWZHHQ More than average) year one and WZRDQG ǂYH\HDUV WZR\HDUV ǂYH\HDUV INR  193,837 15,131 23,410 40,610 114,686 USD  349,110 76,996 19,113 72,310 180,691 EURO  135,796 16,982 - 68,791 50,023 Others  67,270 25,743 5,580 35,947 - Total 746,013 134,852 48,103 217,658 345,400

214 Annual Report 2015-16 126-355 Bharti Airtel Limited 02-39 | Corporate Overview 40-125 | Statutory Reports Financial Statements

NotesWRFRQVROLGDWHGnjQDQFLDOVWDWHPHQWV

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During the year ended March 31, 2016: Issue price Due in Listed on stock exchange 86'0Q ` 63,973 Mn)  2025 Singapore

During the year ended March 31, 2015: Issue price Due in Listed on stock exchange 86'0Q ` 58,746 Mn)  2024 Singapore / Frankfurt (XUR0Q ` 60,395 Mn)  2021 Singapore / Frankfurt

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9. Taxes i) Deferred tax 7KHFRPSRQHQWZLVHEUHDNXSRIGHIHUUHGWD[LVJLYHQEHORZ (` Millions) As of As of Particulars March 31, 2016 March 31, 2015 Deferred tax liabilities (net) a) Deferred tax liability due to Depreciation and amortisation 63,034 39,987 Revenue / rent equalisation 1,207 1,731 b) Deferred tax asset arising out of Provision for doubtful debts / advances (10,203) (8,409) )RUHLJQH[FKDQJHGLNjHUHQFHDQGPDUNWRPDUNHWORVVHV (5,143) (4,693) Brought forward losses / expenses carried forward (695) (400) Others (2,172) (2,618) 46,028 25,598

(` Millions) As of As of Particulars March 31, 2016 March 31, 2015 Deferred tax assets (net) a) Deferred tax liability due to Depreciation and amortisation (1,815) (2,380) Others (137) (146) b) Deferred tax asset arising out of Depreciation and amortisation 2,781 1,120 Revenue / rent equalisation 537 496 Provision for doubtful debts / advances 1,871 2,241 )RUHLJQH[FKDQJHGLNjHUHQFHDQGPDUNWRPDUNHWORVVHV 2,513 2,413 Brought forward losses / expenses carried forward 1,157 638 Others 736 576 7,643 4,958

Consolidated Financial Statements (IGAAP) 215 Transformational Network

NotesWRFRQVROLGDWHGnjQDQFLDOVWDWHPHQWV ii) Tax expense  7KH*URXS XVHV YDULRXV SUHPLVHV RQ OHDVH WR LQVWDOO  D  0$7FUHGLWLQFOXGHVFUHGLWRI` 0Q 0DUFK LWVHTXLSPHQWV$SURYLVLRQLVUHFRJQLVHGIRUWKHFRVWV Ş` 0Q FXUUHQWWD[LQFOXGHVH[SHQVHRI WREHLQFXUUHGIRUUHVWRUDWLRQRIWKHVHSUHPLVHVDWWKH ` 0Q 0DUFKH[SHQVHRI` 0Q  HQGRIWKHOHDVHSHULRG,WLVH[SHFWHGWKDWWKLVSURYLVLRQ DQG GHIHUUHG WD[ LQFOXGHV H[SHQVHV RI `  ZLOO EH XWLOLVHG DW WKH HQG RI WKH OHDVH SHULRG RI WKH 0Q 0DUFKŞH[SHQVHVRI` 0Q  UHVSHFWLYHVLWHVDVSHUWKHUHVSHFWLYHOHDVHDJUHHPHQWV UHODWLQJWRHDUOLHU\HDUV 7KHPRYHPHQWRISURYLVLRQLVJLYHQEHORZ  E  'XULQJWKH\HDUHQGHG0DUFKWKH*URXS (` Millions) KDGUHFRJQLVHGDGGLWLRQDOWD[FKDUJHRI` 0Q RQDFFRXQWRIFKDQJHLQWD[UDWHV For the year For the year ended ended Particulars March 31, March 31, 10. Other Long Term Liabilities 2016 2015 (` Millions) Opening balance 15,896 19,438 As of As of Addition (net) 388 (3,542) Particulars March 31, March 31, Closing balance 16,284 15,896 2016 2015 Security deposit 8,947 8,434  6KRUW7HUP%RUURZLQJV Deferred revenue 17,735 17,926 (` Millions) Lease rent equalisation 13,039 11,514 As of As of Equipment supply 264 939 Particulars March 31, March 31, payable 2016 2015 Others * 5,355 5,106 Secured 45,340 43,919 Loans repayable on   2WKHUVDVRI0DUFKLQFOXGHV`0Q 0DUFK demand `  0Q  SD\DEOH WR 4XDOFRPP $VLD 3DFLnjF 3WH /LPLWHG WRZDUGV SXUFKDVHRIEDODQFHHTXLW\VKDUHVXSRQVDWLVIDFWLRQRIFHUWDLQFRQGLWLRQV Cash Credit 513 987 DVSHUWKHVKDUHSXUFKDVHDJUHHPHQWIRUDFTXLVLWLRQRIHUVWZKLOH$LUWHO %URDGEDQG6HUYLFHV3ULYDWH/LPLWHG IRUPHUO\NQRZDV:LUHOHVV%XVLQHVV Other loans & 6HUYLFHV3ULYDWH/LPLWHG  advances From others 17,165 10,396 11. Long Term Provisions Unsecured (` Millions) Loans repayable on As of As of demand Particulars March 31, March 31, Cash Credit 18,938 13,676 2016 2015 Other loans & Provision for advances HPSOR\HHEHQHǂWV From banks 14,882 45,484 (refer note 38) From others 5,740 17,595 Provision for gratuity 2,108 1,880 57,238 88,138 Provision for long- 206 194 term service award 2,314 2,074 Other provisions Provision for 16,284 15,896 asset retirement obligation 18,598 17,970

216 Annual Report 2015-16 126-355 Bharti Airtel Limited 02-39 | Corporate Overview 40-125 | Statutory Reports Financial Statements

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(` Millions) As of March 31, 2016 As of March 31, 2015 Rate of Rate of &XUUHQF\RI%RUURZLQJV Interest Amount Interest Amount (Weighted outstanding (Weighted outstanding average) average) INR  3,459  10,521 USD  23,114  55,152 Others  30,665  22,465 Total 57,238 88,138

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13. Trade Payables (` Millions) As of As of Particulars March 31, 2016 March 31, 2015 Total outstanding due of micro enterprises and small enterprises * 34 72 Total outstanding due of creditors other than micro enterprises and 174,683 160,702 small enterprises ** 174,717 160,774   5HIHUQRWHIRUGHWDLOVRIGXHVWR0LFURDQG6PDOO(QWHUSULVHV   $PRXQWSD\DEOHWRUHODWHGSDUWLHV` 0Q 0DUFK` 0Q UHIHUQRWH

14. Other Current Liabilities (` Millions) As of As of Particulars March 31, 2016 March 31, 2015 Equipment supply payables 106,990 105,208 Deferred revenue 51,988 50,608 Payable to others * 94,419 67,408 Current maturities of long-term debt (refer note 8) 31,197 134,195 Current maturities of deferred payment liabilities towards 25,428 - spectrum(refer note 8) &XUUHQWPDWXULWLHVRIǟQDQFHOHDVHREOLJDWLRQV UHIHUQRWH 4,746 657 Interest accrued but not due on borrowings 6,654 6,835 Advance received from customers 2,057 1,946 Other taxes payable * 21,618 15,783 Liability held for sale 1,039 5,445 Unpaid dividends 55 35 Other liabilities# 3,575 1,632 349,766 389,752   3D\DEOHWRRWKHUVDQG2WKHUWD[HVSD\DEOHLQFOXGHSURYLVLRQRI` 0QDVRI0DUFKDQG` 0QDVRI0DUFKWRZDUGVVXE MXGLFHPDWWHUV  ,QFOXGHVOLDELOLW\UHFRJQLVHGUHODWLQJWRGHULYDWLYHnjQDQFLDOLQVWUXPHQWV

Consolidated Financial Statements (IGAAP) 217 Transformational Network

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15. Short Term Provisions (` Millions) As of As of Particulars March 31, 2016 March 31, 2015 3URYLVLRQIRUHPSOR\HHEHQHǂWV UHIHUQRWH Provision for Gratuity 576 516 Provision for Leave Encashment 1,235 1,159 Total 1,811 1,675 Others Provision for Income Tax [net of advance tax of ` 6,779 Mn 3,654 6,838 (March 31, 2015 ` 158,414 Mn) and TDS receivable of ` Nil provided for (March 31, 2015 ` 693 Mn)] Proposed Dividend 5,436 8,874 Tax on Dividend 1,107 2,591 Others 557 382 10,754 18,685 Total 12,565 20,360

16. Tangible Assets

Particulars Land & Plant & 2SHUDWLQJ2DŽFH  Total Buildings Equipment Other Equipment# Cost As of April 1, 2014 21,703 1,203,060 68,831 1,293,594 Additions 1,819 156,357 8,885 167,061 Disposals / adjustments (319) (20,706) (2,596) (23,621) Currency translation (1,958) (79,117) (10,540) (91,615) 5HFODVVLǟFDWLRQ@ (12) (2,600) 1,238 (1,374) As of March 31, 2015 21,233 1,256,994 65,818 1,344,045 Additions 1,027 203,030 14,759 218,816 Acquisitions@@ - 161 1 162 Disposals / adjustments (793) (89,893) (9,293) (99,979) Currency translation 8 3,650 36 3,694 5HFODVVLǟFDWLRQ@ (551) 745 500 694 As of March 31, 2016 20,924 1,374,687 71,821 1,467,432 Accumulated depreciation As of April 1, 2014 4,259 524,154 50,069 578,482 Charge ^ 1,034 141,082 12,619 154,735 Disposals / adjustments (56) (19,090) (2,391) (21,537) Currency translation (898) (47,606) (9,361) (57,865) 5HFODVVLǟFDWLRQ@ (36) (1,108) 862 282 As of March 31, 2015 4,303 597,432 51,798 653,533 Charge ^ 1,488 147,614 10,689 159,791 Disposals / adjustments (240) (69,830) (9,157) (79,227) Currency translation (49) 551 (8) 494 5HFODVVLǟFDWLRQ@ (14) 17 666 669 As of March 31, 2016 5,488 675,784 53,988 735,260 Net carrying amount As of April 1, 2014 17,444 678,906 18,762 715,112 As of March 31, 2015 16,930 659,562 14,020 690,512 As of March 31, 2016 15,436 698,903 17,833 732,172

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218 Annual Report 2015-16 126-355 Bharti Airtel Limited 02-39 | Corporate Overview 40-125 | Statutory Reports Financial Statements

NotesWRFRQVROLGDWHGnjQDQFLDOVWDWHPHQWV

)ROORZLQJWDEOHVXPPDULVHVWKHGHWDLORIDVVHWVWDNHQRQnjQDQFHOHDVH   `0LOOLRQV  Plant and Equipment Other Equipment, Particulars Period 2SHUDWLQJDQGRDŽFH equipment Gross Block As of March 31, 2016 38,188 1,097 As of March 31, 2015 435 831 Accumulated Depreciation As of March 31, 2016 17,521 835 As of March 31, 2015 7 431 Net block As of March 31, 2016 20,667 262 As of March 31, 2015 428 400

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Consolidated Financial Statements (IGAAP) 219 Transformational Network

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17. i) Intangible Assets (` Millions) 6RIWZDUH %DQGZLGWK *RRGZLOO Licenses Other Total Particulars (including acquired Spectrum) intangibles Cost As of April 1, 2014 15,201 11,964 421,643 209,205 70 658,083 Additions 1,703 3,207 - 137,198 3,217 145,325 Disposals / adjustments * (22) - - (4,293) - (4,315) Currency translation (121) 18 (53,531) (7,386) (389) (61,409) 5HFODVVLǟFDWLRQ@@ (33) 1,382 - (3) 28 1,374 As of March 31, 2015 16,728 16,571 368,112 334,721 2,926 739,058 Additions 3,439 3,244 - 377,654 70 384,407 Acquisitions@ - - 330 - 128 458 Disposals / adjustments* (4,295) - - (15,130) (143) (19,568) Currency translation 103 72 12,880 3,532 (82) 16,505 5HFODVVLǟFDWLRQ@@ (706) 12 - - - (694) As of March 31, 2016 15,269 19,899 381,322 700,777 2,899 1,120,166 Accumulated Amortisation As of April 1, 2014 11,575 2,790 109,676 41,557 22 165,620 Charge 2,773 908 26,772 15,452 509 46,414 Disposals / adjustments* - - - (4,140) 7 (4,133) Currency translation (97) 87 (16,115) (4,878) (396) (21,399) 5HFODVVLǟFDWLRQ@@ 50 122 - (5) 115 282 As of March 31, 2015 14,301 3,907 120,333 47,986 257 186,784 Charge 2,841 1,207 25,042 29,023 876 58,989 Disposals / adjustments* (4,295) - - (15,130) (119) (19,544) Currency translation 103 164 4,582 2,064 (87) 6,826 5HFODVVLǟFDWLRQ@@ (681) 12 - - - (669) As of March 31, 2016 12,269 5,290 149,957 63,943 927 232,386 Net Carrying Amount As of April 1, 2014 3,626 9,174 311,967 167,648 48 492,463 As of March 31, 2015 2,427 12,664 247,779 286,735 2,669 552,274 As of March 31, 2016 3,000 14,609 231,365 636,834 1,972 887,780

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(ii) Intangible Assets Under Development ,QWDQJLEOHDVVHWVXQGHUGHYHORSPHQWLQFOXGHVWKHDPRXQWRIVSHFWUXPDOORWWHGWRWKH*URXSDQGUHODWHGFRVWV LQFOXGLQJ ERUURZLQJFRVWVFDSLWDOLVHG LIDQ\IRUZKLFKVHUYLFHVDUH\HWWREHUROOHGRXW

220 Annual Report 2015-16 126-355 Bharti Airtel Limited 02-39 | Corporate Overview 40-125 | Statutory Reports Financial Statements

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18. Non-current Investments (` Millions) As of As of Particulars March 31, 2016 March 31, 2015 Trade investments (Un-quoted) Investment in equity instruments IFFCO Kissan Sanchar Limited : 100,000 Equity Shares of ` 10 50 50 each fully paid up Investment in preference share Tube INC (Data Mi) : 4,947,871 (March 31,2015- Nil) non 302 - cumulative convertible preference shares 4,947,871 @ (XURHDFK Investment in Associates Indo Teleports Limited (formerly known as Bharti Teleports Limited) Nil (March 31, 2015 - 11,270,000 Equity shares of ` 10 each fully paid up) Original Cost - 113 Accumulated loss - (113) Tanzania Telecommunications Company Limited - 102,852,615 Equity shares of Tanzanian shilling 1,000 each fully paid up Original Cost 1,972 1,972 Accumulated loss (1,972) (1,972) Seychelles Cable Systems Company Limited 260 Equity shares of Seychelles Rupee 100 each fully paid up Original Cost 220 220 Accumulated loss (220) (220) Other investments Investment in equity instruments (Un-quoted) Greenenergy Wind Corporation Pvt Ltd : 41,535 (March 31, 4 - 2015- Nil) ordinary shares ` 10 each fully paid up Investment in mutual funds (Quoted) 20,753 27,382 Investment in bonds (Quoted) 3,214 - Investment in Government Securities (Un-quoted) 1DWLRQDO6DYLQJV&HUWLǟFDWHXQLWV 2 2 24,325 27,434 Aggregate value of Unquoted Investments - Cost 357 52 Aggregate value of Quoted Investments - Cost 23,967 27,382 Aggregate Market value of Quoted Investments 28,094 31,260 Aggregate provision for diminution in value of investments - -

Consolidated Financial Statements (IGAAP) 221 Transformational Network

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 'HWDLOVRI,QYHVWPHQWVLQPXWXDOIXQGVDUHSURYLGHGEHORZ (` Millions, except as stated otherwise) As of March 31, 2016 As of March 31, 2015 Particulars 1RRI8QLWV Amount 1RRI8QLWV Amount Birla Sun Life Income Plus - Growth Regular Plan 81,531,569 4,488 81,531,569 4,488 Birla Sun Life Short Term Opportunities Fund - Growth- - - 86,393,736 1,730 Regular Plan DSP Black Rock Strategic Bond Fund-Institutional Plan- 1,082,504 1,499 1,745,815 2,500 Growth HDFC Income Fund Growth 104,051,219 2,897 104,051,219 2,897 Franklin India Income Opportunities Fund 50,660,486 800 - - ICICI Prudential Income -Regular Plan - Growth 45,694,326 1,753 45,694,326 1,753 BOI AXA Corporate Credit Spectrum Fund - Regular Plan 25,000,000 250 - - IDFC Super Saver Income Fund-Investment Plan-Growth- 85,232,890 2,497 85,232,890 2,497 (Regular Plan) JPMorgan India Active Bond Fund Retail Plan Growth - - 47,044,600 623 Option Kotak Bond Scheme Plan A-Growth - Regular Plan 36,212,982 1,278 36,212,982 1,278 Reliance Income Fund Growth Plan - Growth Option 65,982,324 2,648 65,982,324 2,648 Templeton India Income Builder Account Plan A - Growth - - 48,224,495 1,999 UTI Bond Fund - Growth 41,865,468 1,536 74,936,438 2,749 BOI AXA Corporate Credit Spectrum Fund - Regular Plan - - 25,000,000 250 Reliance Regular Savings Fund - Debt Plan - Growth Plan - - 66,227,040 1,170 - Growth Option Franklin India Income Builder Account - Plan A 26,698,497 1,107 50,660,486 800 564,012,265 20,753 818,937,920 27,382

Details of investments in bonds are provided below:

(` Millions, except as stated otherwise) As of March 31, 2016 Particulars No. of Units Amount 3RZHU)LQDQFH&RUSRUDWLRQ/WG

222 Annual Report 2015-16 126-355 Bharti Airtel Limited 02-39 | Corporate Overview 40-125 | Statutory Reports Financial Statements

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19. Long-term Loans and Advances (` Millions) Particulars As of March 31, 2016 As of March 31, 2015 Unsecured Capital Advances Considered good* 40,908 48,833 Considered doubtful 553 491 Less: Provision for doubtful advances (553) 40,908 (491) 48,833

Security Deposit Considered good** 12,548 11,310 Considered doubtful 1,123 620 Less: Provision for doubtful deposit (1,123) 12,548 (620) 11,310 Loans and advances to related parties (refer note 40) - 466 MAT credit entitlement# 56,289 38,653 109,745 99,262

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20. Other Non-current Assets (` Millions) As of As of Particulars March 31, 2016 March 31, 2015 Deposits (refer note 24) 15,643 11,358 Advances * 29,365 27,001 Revenue equalisation 10,252 10,986 Unamortised upfront fees and Deferred Premium 3,865 4,287 Receivable in respect of tower sale 10,658 - Others 1,678 2,985 71,461 56,616   $GYDQFHVUHSUHVHQWSD\PHQWVPDGHWRYDULRXV*RYHUQPHQWDXWKRULWLHVXQGHUSURWHVWDQGDUHGLVFORVHGQHWRISURYLVLRQRI` 0Q 0DUFK ` 0Q 

21. Current Investments (` Millions) As of As of Particulars March 31, 2016 March 31, 2015 &XUUHQWLQYHVWPHQWV DWORZHURIFRVWDQGIDLUPDUNHWYDOXH Investment in Mutual Funds (Quoted) 10,863 80,069 Investment in Mutual Funds (Un-quoted) 1,134 - Investment in Deposits and Bonds (Un-quoted) 2,854 17 14,851 80,086 Aggregate value of Unquoted Investments 3,988 17 Aggregate value of Quoted Investments 10,863 80,069 $JJUHJDWH0DUNHW9DOXHRI4XRWHG,QYHVWPHQWV 16,149 83,996

Consolidated Financial Statements (IGAAP) 223 Transformational Network

NotesWRFRQVROLGDWHGnjQDQFLDOVWDWHPHQWV

 'HWDLOVRILQYHVWPHQWVDUHSURYLGHGEHORZ (` Millions, except as stated otherwise) As of March 31, 2016 As of March 31, 2015 Particulars  1RRI Amount  1RRI8QLWV  Amount Units) Investment in Mutual Funds (Quoted) Axis Liquid Fund - Growth -- 650,426 1,000 L&T Liquid Fund - Growth -- 1,104,487 2,105 HDFC Liquid Fund - Premium Plan - Growth -- 31,886,747 872 HDFC Cash management Fund saving Plan Growth -- 82,662,081 2,400 ICICI Prudential Institutional Liquid Plan - Super -- 14,605,888 3,000 Institutional Growth IDFC Cash Fund - Growth-(Regular Plan) -- 2,647,900 4,453 JM High Liquidity Fund - Growth Option -- 117,989,703 4,466 JP Morgan India Liquid Fund Super Institutional -- 69,186,380 1,250 Growth Kotak Floater Short Term - Growth -- 1,812,276 4,120 Kotak Liquid Scheme Plan A - Growth -- 343,026 966 Pramerica Liquid Fund - Growth -- 412,450 609 Reliance Liquidity Fund-Growth Option -- 242,935 508 Reliance Liquid Cash Plan Growth Option Fund -- 293,865 1,000 Religare Liquid Fund - Super Institutional Growth -- 943,091 1,800 Tata Liquid Fund Plan A - Growth -- 1,016,663 2,600 Tata Money Market Fund Plan A - Growth -- 1,742,473 3,801 SBI Premier Liquid Fund - Direct Plan - Growth -- 454,995 1,000 SBI Megnum Insta Cash Fund -- 573,778 1,770 Principal Cash Management - Regular Plan - Growth -- 1,717,915 2,311 Sundram Money Fund -- 56,132,271 1,650 Taurus Mutual Fund -- 1,903,627 2,835 Franklin India Treasury Management Account -- 400,595 828 LIC NOMURA MF Liquid Fund - Growth Plan -- 733,879 1,850 JM Liquid Fund -- 210,444 8 Kotak Floater ST Plan -- 56,057 128 TATA Money Market Fund Plan A -- 52,954 116 TATA Liquid Fund Plan A -- 27,675 71 Religare Invesco Liquid Fund- Growth Plan -- 27,668 50 JM High Liquidity Fund- Growth option -- 3,030,950 108 ICICI Prudential Savings Fund- Regular Plan -Growth -- 1,031,452 210 ICICI Prudential Liquid - Regular Plan - Growth -- 26,874 5 DWS Ultra Short Term Fund- Growth -- 30,821,770 500 Birla Sun Life Cash Manager - Growth - Regular Plan -- 607,642 200 Birla Sun Life Floating Rate Fund Short Term Plan- -- 216,825 40 Growth - Regular Plan

224 Annual Report 2015-16 126-355 Bharti Airtel Limited 02-39 | Corporate Overview 40-125 | Statutory Reports Financial Statements

NotesWRFRQVROLGDWHGnjQDQFLDOVWDWHPHQWV

(` Millions, except as stated otherwise) As of March 31, 2016 As of March 31, 2015 Particulars  1RRI Amount  1RRI8QLWV  Amount Units) Birla Sun Life Income Plus- Growth Regular Plan 23,775,009 1,260 58,818,759 3,117 HDFC Income Fund Growth 46,967,635 1,265 68,876,846 1,856 HDFC Short Term Plan-Dividend -- 18,306,435 500 Birla Sun Life Treasury Optimizer Plan - Growth -- 2,909,807 500 Regular Plan HDFC HIF STP - Growth -- 43,115,259 1,070 UTI Short Term Income Fund Institutional Option - -- 30,042,480 500 Growth ICICI Prudential Short Term - Regular Plan - Growth 96,811,536 3,587 17,618,475 500 Religare Invesco Short Term Fund - Growth -- 631,432 1,070 Religare Invesco Ultra Short Term Fund - Growth -- 263,235 500 SBI Magnum Income Fund - Regular Plan - Growth -- 32,485,568 1,000 Sundaram Ultra Short Term Fund Regular Growth -- 10,541,073 200 ICICI Prudential Money Market Fund - Direct Plan - -- 2,068,170 400 Growth ICICI Prudential Liquid - Direct Plan - Growth -- 5,315,317 1,100 IDFC Dynamic Bond Fund - Growth Regular Plan -- 29,627,698 500 IDFC Dynamic Bond Fund - Growth Regular Plan -- 52,199,311 865 IDFC Super Saver Income Fund-Investment Plan- 34,149,368 1,002 34,149,368 1,001 Growth - Regular Plan Kotak Liquid Scheme Plan A - Direct Plan - Growth -- 387,765 1,100 Reliance Liquid Fund - Cash Plan - Growth Option - -- 181,226 400 Growth Plan Reliance Liquid Fund - Treasury Plan - Direct Plan - -- 308,049 1,050 Growth Plan - Growth Option Reliance Money Manager Fund - Growth Plan -- 265,208 500 Growth Option ICICI Prudential Flexible Income - Regular Plan - -- 1,534,000 400 Growth Birla Sun Life Floating Rate Fund Short Term Plan - -- 5,909,931 1,100 *URZWK'LUHFW3ODQ AXIS Banking Debt Fund - Growth (BD-GP) -- 197,482 250 Kotak Bond Scheme Plan A-Growth - Regular Plan 82,688,429 2,799 118,736,484 4,019 SBI Dynamic Bond Fund- Regular Growth -- 137,780,607 2,021 Franklin India Income Opportunities Fund -- 50,465,370 666 ICICI Prudential Income Regular Plan-Growth -- 115,575,705 4,282 ICICI Prudential Short Term - Regular Plan - Growth -- 30,176,155 849 JM High Liquidity Fund - Growth Option -- 1,582,314 59 Principal Cash Management Fund - Regular Plan -- 47,708 64 Growth ICICI Prudential Money Market Fund - Growth 4,546,492 950 - - Total 288,938,469 10,863 1,295,684,999 80,069

Consolidated Financial Statements (IGAAP) 225 Transformational Network

NotesWRFRQVROLGDWHGnjQDQFLDOVWDWHPHQWV

(` Millions, except as stated otherwise) As of March 31, 2016 Particulars No. of Units Amount Investments in Mutual Funds (Unquoted) Birla Sun life Cash Plus – Growth – Direct Plan 863,916 210 ICICI Prudential Liquid - Direct Plan – Growth mutual fund 187,423 42 Reliance Liquid Fund-Treasury Plan – Direct Plan - Growth Plan-Growth 73,952 273 Option-LFAG Kotak Liquid Scheme Plan A – Direct Plan - Growth 82,064 252 SBI Premier Liquid Fund – Direct Plan - Growth 35,326 84 HDFC – Cash Management Fund – Saving Plan – Growth 91,376 273 Total 1,334,057 1,134

(` Millions, except as stated otherwise) As of March 31, 2016 As of March 31, 2015 Particulars No. of Units Amount No. of Units Amount Investment in Deposits and Bonds (Unquoted)

HDFC Bank Limited 18,500 1,847 - - Limited 10,000 999 - - India Innovation Fund 76 8 70 7 5(&6HFXUHG%RQGV -- 10 10 Total 28,576 2,854 80 17

 ,QYHQWRULHV YDOXHGDWORZHURIFRVWDQGQHWUHDOLVDEOHYDOXH (` Millions) As of As of Particulars March 31, 2016 March 31, 2015 Stock-In-Trade* 1,691 1,339 Total 1,691 1,339   1HWRISURYLVLRQIRUGLPLQXWLRQLQYDOXH` 0Q 0DUFK`0Q 

23. Trade Receivables (` Millions) Particulars As of March 31, 2016 As of March 31, 2015 8QVHFXUHGXQOHVVVWDWHGRWKHUZLVH Receivables outstanding for a period exceeding six months Considered good 5,843 6,127 Considered doubtful 26,613 17,173 Less: Provision for doubtful receivables (26,613) 5,843 (17,173) 6,127 Others Considered good 52,838 45,945 Considered doubtful 8,719 13,009 Less: Provision for doubtful receivables (8,719) 52,838 (13,009) 45,945 58,681 52,072  7UDGHUHFHLYDEOH,QFOXGHDPRXQWUHFHLYDEOHIURPUHODWHGSDUW\` 0Q 0DUFK` 0Q UHIHUQRWH

226 Annual Report 2015-16 126-355 Bharti Airtel Limited 02-39 | Corporate Overview 40-125 | Statutory Reports Financial Statements

NotesWRFRQVROLGDWHGnjQDQFLDOVWDWHPHQWV

24. Cash and Bank Balances (` Millions) As of As of Particulars March 31, 2016 March 31, 2015 Cash and cash equivalents Balances with banks - On current accounts 14,999 7,734 - Deposits with original maturity of three months or less 20,792 2,850 - On unpaid dividend account 55 35 Cheques on hand 184 425 Cash on hand 808 931 36,838 11,975 Other bank balances Bank deposits with remaining maturity of less than twelve months 14,550 8,856 Bank deposits with more than twelve months 7 6 Margin money deposit 15,636 11,352 30,193 20,214 Less: Amount disclosed under non-current assets (refer note 20) 15,643 11,358 51,388 20,831

25. Short-term Loans and Advances (` Millions) As of As of Particulars March 31, 2016 March 31, 2015 Unsecured, considered good unless VWDWHGRWKHUZLVH Advances recoverable in cash or kind Considered good 39,418 24,416 Considered doubtful 2,785 3,658 Less: Provision for doubtful advances (2,785) 39,418 (3,658) 24,416 Balances with customs, excise and other 16,517 13,409 authorities Loans and advances to related parties - 1,117 722 refer note 41 Advance Tax [net of provision for tax of 8,433 5,988 ` 213,139 Mn (March 31, 2015, ` 25,454 Mn) and tds receivable of ` 1,050 Mn Provided for (March 31, 2015, ` 46 Mn)] 65,485 44,535

26. Other Current Assets (` Millions) As of As of Particulars March 31, 2016 March 31, 2015 8QVHFXUHGFRQVLGHUHGJRRGXQOHVVVWDWHGRWKHUZLVH Unbilled revenue 8,828 12,583 Unamortised upfront fees and deferred premium 4,999 831 Revenue equalisation 1,780 1,099 Others 362 5,768 15,969 20,281

Consolidated Financial Statements (IGAAP) 227 Transformational Network

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27. Commitments and Contingent Liabilities (i) Commitments

a. Capital commitments (` Millions) As of As of Particulars March 31, 2016 March 31, 2015 Contracts placed for future capital expenditure not provided for in 74,061 343,859 WKHǟQDQFLDOVWDWHPHQWV UHIHUQRWH D 7KHDERYHLQFOXGHV` 0QDVRI0DUFK `0QDVRI0DUFK SHUWDLQLQJWRFHUWDLQ RXWVRXUFLQJ DJUHHPHQWV XQGHU ZKLFK WKHYHQGRU VXSSOLHV DVVHWV DV ZHOO DV VHUYLFHV WR WKH *URXS 7KH DPRXQW UHSUHVHQWVWRWDOPLQLPXPFRPPLWPHQWRYHUWKHXQH[SLUHGSHULRGRIWKHFRQWUDFWV XSWRnjYH\HDUVIURPWKHUHSRUWLQJ GDWH VLQFHLWLVQRWSRVVLEOHIRUWKH*URXSWRGHWHUPLQHDOORFDWLRQEHWZHHQDVVHWVDQGVHUYLFHVWREHSURYLGHGRYHU WKHXQH[SLUHGSHULRGRIWKHFRQWUDFW+RZHYHUWKHDFWXDOFKDUJHVSD\PHQWVPD\H[FHHGWKHDERYHPHQWLRQHG PLQLPXPFRPPLWPHQWEDVHGRQWKHWHUPVRIWKHDJUHHPHQWV ,QDGGLWLRQWRWKHDERYHWKH*URXSšVVKDUHRIMRLQWYHQWXUHVDQGDVVRFLDWHVFDSLWDOFRPPLWPHQWVLV`0QDQG ` 0QDVRI0DUFKDQG0DUFKUHVSHFWLYHO\

b. Guarantees (` Millions) As of As of Particulars March 31, 2016 March 31, 2015 Financial bank guarantees* 106,255 109,395 Guarantees to third parties - 3,130 * The Company has issued corporate guarantees of ` 4,152 Mn and ` 3,365 Mn as of March 31, 2016 and March 31, 2015 respectively, to banks DQGǟQDQFLDOLQVWLWXWLRQVIRULVVXLQJEDQNJXDUDQWHHVRQEHKDOIRIWKH*URXSFRPSDQLHVDWQRFRVWWRWKHODWWHU $OVRLWLQFOXGHVFHUWDLQǟQDQFLDOEDQNJXDUDQWHHVZKLFKKDYHEHHQJLYHQIRUVXEMXGLFHPDWWHUVDQGLQFRPSOLDQFH with licensing conditions, the amount with respect to these have been disclosed under capital commitments, FRQWLQJHQFLHVDQGǟQDQFLDOOLDELOLWLHVDVDSSOLFDEOHLQFRPSOLDQFHZLWKWKHDSSOLFDEOHDFFRXQWLQJVWDQGDUGV

(ii) Contingencies (` Millions) As of As of Particulars March 31, 2016 March 31, 2015 (i) Taxes, Duties and Other demands (under adjudication / appeal / dispute) -Sales tax and Service Tax 40,214 38,225 -Income Tax 19,746 20,130 -Customs Duty 6,601 6,136 -Entry Tax 8,201 6,957 -Stamp Duty 596 603 -Municipal Taxes 1,114 863 -DoT demands * 5,273 5,020 -Other miscellaneous demands 7,105 2,133 (ii) Claims under legal cases including arbitration matters -Access Charges / Port Charges 8,761 7,443 -Others 4,370 5,703 Total 101,981 93,213 LQDGGLWLRQUHIHU1RWHI Y I YL I YLL DQGI YLLL EHORZIRURWKHU'R7PDWWHUV

228 Annual Report 2015-16 126-355 Bharti Airtel Limited 02-39 | Corporate Overview 40-125 | Statutory Reports Financial Statements

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Consolidated Financial Statements (IGAAP) 229 Transformational Network

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230 Annual Report 2015-16 126-355 Bharti Airtel Limited 02-39 | Corporate Overview 40-125 | Statutory Reports Financial Statements

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232 Annual Report 2015-16 126-355 Bharti Airtel Limited 02-39 | Corporate Overview 40-125 | Statutory Reports Financial Statements

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28. Revenue from Operations (` Millions) For the year ended For the year ended Particulars March 31, 2016 March 31, 2015 Service Revenue 9RLFHDQGGDWDUHYHQXH 721,251 723,699 - Revenue from tower infrastructure services 69,052 62,667 - Others * 213,300 170,390 Sale of products 5,770 4,251 1,009,373 961,007  2WKHUVPDLQO\LQFOXGHUHYHQXHIURP9$6VHUYLFHVnj[HGPRQWKO\VXEVFULSWLRQEDQGZLGWKVHUYLFHVDQG96$7HWF

29. Other Income (` Millions) For the year ended For the year ended Particulars March 31, 2016 March 31, 2015 Interest income on bank deposits 5,401 1,428 Interest income on loan given to related parties 24 47 Dividend income - 479 Net gain on sale of investments 3,331 7,329 Net gain on derivatives - 2,956 Net foreign exchange gain - 5,458 3URǟWRQVDOHRIǟ[HGDVVHWV 671 964 Other non-operating income - Lease rentals 28 109 - Liabilities/Provision written back 831 1,406 - Miscellaneous income 812 782 11,098 20,958

30. Cost of Goods Sold (` Millions) For the year ended For the year ended Particulars March 31, 2016 March 31, 2015 Increase in inventories (4,996) (4,948) Purchase of Stock-in-Trade 11,287 7,744 6,291 2,796

 (PSOR\HH%HQHǂW([SHQVHV (` Millions) For the year ended For the year ended Particulars March 31, 2016 March 31, 2015 Salaries, wages and bonus 43,854 42,522 Contribution to provident and other funds (refer note 38) 2,231 1,805 Expenses on employee stock option plan (refer note 43) 1,028 773 6WDNjZHOIDUHH[SHQVHV 2,623 2,150 Others 1,267 1,320 51,003 48,570

Consolidated Financial Statements (IGAAP) 233 Transformational Network

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 3RZHUDQG)XHO5HQW&KDULW\DQG'RQDWLRQDQG2WKHU([SHQVHV (` Millions) For the year ended For the year ended Particulars March 31, 2016 March 31, 2015 3RZHUDQGIXHO Network 81,906 83,808 Others 568 590 82,474 84,398 Rent Network 62,214 52,416 Others 3,685 2,993 65,899 55,409 Charity and donation Political Contribution$ - 310 Corporate Social Responsibility# 996 766 Others 394 346 1,390 1,422 Other expenses Interconnect and Port charges 135 133 Insurance Network 467 424 Others 12 6 Installation 234 486 Repairs and Maintenance Plant and Machinery 54,455 53,712 Building 590 717 Others - Network 4,708 5,260 Others - Administrative 2,977 2,808 Leased line and gateway charges 1,383 1,491 Internet access and bandwidth charges 5,750 5,797 Advertisement and marketing 20,726 20,888 6DOHVFRPPLVVLRQFXVWRPHUYHULǟFDWLRQDQGFRQWHQWFRVW 43,234 41,021 Other selling and distribution expenses 16,927 16,172 Sim card utilisation 4,367 4,004 Legal and professional fees 5,666 6,100 Rates and taxes 2,145 5,243 IT and call center outsourcing 19,655 21,775 Travelling and conveyance 3,824 4,051 %DGGHEWVZULWWHQRNj 6,867 4,247 Provision for doubtful debts and advances (refer note 45) 2,506 5,154 Provision for diminution in stock / capital work in progress 1,849 966 Collection and recovery expenses 3,864 3,482 Printing and stationery 817 902 Miscellaneous expenses Network 12,359 11,354 Sales and Marketing* 10,031 8,787 Administrative 4,358 5,593 229,906 230,573  3DLGWR6DW\D(OHFWRUDO7UXVWIRUSROLWLFDOSXUSRVH  $VSHUWKHUHTXLUHPHQWVRIVHFWLRQRIWKH&RPSDQLHV$FWWKH*URXSZDVUHTXLUHGWRVSHQGDQDPRXQWRI` 0Q 0DUFK`  0Q RQ&RUSRUDWH6RFLDO5HVSRQVLELOLW\H[SHQGLWXUHIRUWKH\HDUHQGHG0DUFK'XULQJWKH\HDUHQGHG0DUFKWKH&RPSDQ\KDVVSHQW LQFDVKDQDPRXQWRI` 0Q 0DUFK` 0Q WRZDUGVHGXFDWLRQDQGVDQLWDWLRQ   ,QFOXGHVJRRGZLOOZDLYHUVZKLFKDUHRWKHUWKDQWUDGHGLVFRXQWRI`0Q 0DUFK`0Q 

234 Annual Report 2015-16 126-355 Bharti Airtel Limited 02-39 | Corporate Overview 40-125 | Statutory Reports Financial Statements

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33. Finance Costs (` Millions) For the year ended For the year ended Particulars March 31, 2016 March 31, 2015 Interest expense 57,496 40,280 2WKHUǟQDQFHFRVW 4,148 4,185 Net loss on derivatives 504 - Net foreign exchange loss 24,870 - 87,018 44,465

34. Depreciation and Amortisation Expense (` Millions) For the year ended For the year ended Particulars March 31, 2016 March 31, 2015 Depreciation (refer note 16) 154,685 152,169 Amortisation (refer note 17) 58,989 46,414 213,674 198,583

35. Exceptional Items H *DLQRI `  0Q RQ DFFRXQW RI JDLQ UHFRJQLVHG RQ  ([FHSWLRQDOLWHPVFRPSULVHRIWKHIROORZLQJ GLYHVWPHQWRIWHOHFRPWRZHUVLQRQHRIWKHFRXQWULHVLQ $IULFD (i) For the year ended March 31, 2016 : 7D[H[SHQVHLQFOXGHV D 1HWJDLQRI` 0QSHUWDLQLQJWRWKHGLYHVWPHQWRI WHOHFRPWRZHUDVVHWVLQ%XUNLQD)DVR.HQ\D=DPELD L  &KDUJHRI` 0QDQGEHQHnjWRI` 0QGXULQJ 8JDQGD*KDQD&RQJR%UD]]DYLOOHDQG1LJHULD WKH\HDUHQGHG0DUFKDQG0DUFK UHVSHFWLYHO\RQWKHDERYHH[FHSWLRQDOLWHPVDQG E &KDUJH IRU UHJXODWRU\ IHH SURYLVLRQV RI `  0Q DULVLQJRXWRIUHDVVHVVPHQWRIFHUWDLQSRVLWLRQV LL  &KDUJH RI 1LO DQG `  0Q GXULQJ WKH\HDU HQGHG 0DUFKDQG0DUFKUHVSHFWLYHO\RQ F &KDUJH RI `  0Q DULVLQJ IURP DPHQGPHQW RI DFFRXQWRIVHWWOHPHQWRIYDULRXVGLVSXWHVXQFHUWDLQ WHQXUH DQG LQ YDULRXV WHUPV RI WKH UHODWHG ORQJWHUP WD[SRVLWLRQV FRQWUDFW  3URnjW ORVV DWWULEXWDEOHWRPLQRULW\LQWHUHVWLQFOXGHV G &KDUJH IRU SURYLVLRQ DJDLQVW FHUWDLQ GLVSXWHG H[SHQVHRI` 0QDQGEHQHnjWRI` 0QGXULQJ UHFHLYDEOHVH[SLUHGFODLPVDPRXQWLQJWR` 0Q WKH\HDUHQGHG0DUFKDQG0DUFK UHVSHFWLYHO\UHODWLQJWRWKHDERYHH[FHSWLRQDOLWHPV H &KDUJHRI` 0QWRZDUGVUHVWUXFWXULQJDFWLYLWLHVLQ DIHZFRXQWULHV  1HZ'HYHORSPHQWV0DMRUWUDQVDFWLRQV I &KDUJH RI `  0Q WRZDUGV RSHUDWLQJ FRVWV D 'XULQJWKH\HDUHQGHG0DUFKDQGWKH LQFOXGLQJ DFFHOHUDWHG GHSUHFLDWLRQ  RQ QHWZRUN *URXSKDGZRQWKHDXFWLRQIRUVSHFWUXPDJJUHJDWLQJ UHIDUPLQJDQGXSJUDGDWLRQSURJUDP WR  0K] 7KH *URXS KDV RSWHG IRU GHIHUUHG SD\PHQW LQ FHUWDLQ FLUFOHV IRU D VSHFLnjHG SRUWLRQ RI (ii) For the year ended March 31, 2015 : WKH DXFWLRQ SULFH ZKHUHE\ LW LV SD\DEOH LQ  HTXDO D &KDUJHRI` 0QRQDFFRXQWRIRQHWLPHWUDQVODWLRQ LQVWDOOPHQWV LQFOXGLQJ WKH UHODWHG LQWHUHVW  DIWHU DQ LQLWLDO PRUDWRULXP SHULRG RI WZR \HDUV $V RI 0DUFK LPSDFW RI FHUWDLQ IRUHLJQ FXUUHQF\ OLDELOLWLHV LQ 1LJHULD WKH*RYHUQPHQWRI,QGLDKDVDOORWWHG IURPWKH&HQWUDOEDQNDGPLQLVWHUHGUDWHVWRWKHRSHQ 0+] VSHFWUXP WR WKH *URXS 0DUFK    PDUNHW H[FKDQJH UDWHV FRQVHTXHQW WR D QRWLnjFDWLRQ 0+] DFFRUGLQJO\WKH*URXSKDVUHFRJQLVHGGHIHUUHG GDWHG1RYHPEHU SD\PHQW OLDELOLW\ LQFOXGLQJ DFFUXHG LQWHUHVW WKHUHWR  E &KDUJH RI `  0Q RQ DFFRXQW RI VHWWOHPHQW RI WRZDUGVWKHVDPHIRURI` 0Q 0DUFK YDULRXVGLVSXWHV `  )XUWKHUSHQGLQJWKHDOORFDWLRQRIEDODQFH VSHFWUXPE\*2,DQDPRXQWRI` 0Q 0DUFK F &KDUJHRI` 0QUHODWHGWRUHVWUXFWXULQJDFWLYLWLHV    0Q  KDV EHHQ GLVFORVHG XQGHU LQDIHZFRXQWULHV capital commitment in the notes to the consolidated G *DLQRI` 0QRQDFFRXQWRISUHPDWXUHWHUPLQDWLRQ njQDQFLDOVWDWHPHQWV RIDQDJUHHPHQWE\DWHOHFRPRSHUDWRU

Consolidated Financial Statements (IGAAP) 235 Transformational Network

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236 Annual Report 2015-16 126-355 Bharti Airtel Limited 02-39 | Corporate Overview 40-125 | Statutory Reports Financial Statements

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37. Earnings per Share (` Millions, except per share data and as stated otherwise) For the year ended For the year ended Particulars March 31, 2016 March 31, 2015 3URǟWDWWULEXWDEOHWRHTXLW\VKDUHKROGHUV $  44,566 46,208 Weighted average number of equity shares outstanding during the 3,997 3,997 \HDU 1RVLQ0Q  %  Basic/ Diluted earnings per Share (`) (A/B)   Nominal value of equity shares (`) 5 5

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Consolidated Financial Statements (IGAAP) 237 Transformational Network

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 LL 'HǂQHG%HQHǂW3ODQVDQG/HDYH(QFDVKPHQW For the year ended March 31, 2016: (` Millions) Particulars Gratuity# Leave Encashment# Current service cost 435 261 Net interest cost / (income) 206 99 Net actuarial (gain) / loss 141 (39) Total * 782 321 Actual return on plan assets (1) -

For the year ended March 31, 2015:

(` Millions) Particulars Gratuity# Leave Encashment# Current service cost 371 244 Net interest cost / (income) 179 96 Net actuarial (gain) / loss (68) (162) Total * 482 178 Actual return on plan assets (88) -   ,QFOXGHGLQ6DODULHV:DJHVDQG%RQXV 5HIHU1RWH  ,QFOXGHVFKDUJHVWRZDUGVJUDWXLW\DQGOHDYHHQFDVKPHQWIRU.H\0DQDJHULDO3HUVRQQHODVWKHVHDUHSURYLGHGRQDQDFWXDULDOEDVLVIRUWKH*URXS DVDZKROH

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For the year ended For the year ended Particulars March 31, 2016 March 31, 2015 Discount rate   Expected rate of increase in compensation levels   Expected rate of return on plan assets   Expected average remaining working lives of employees (years)  

F  5HFRQFLOLDWLRQRIRSHQLQJDQGFORVLQJEDODQFHVRIREOLJDWLRQVDQGSODQDVVHWVLVDVIROORZV For the year ended March 31, 2016 (` Millions) Particulars Gratuity Leave Encashment Change in Obligation : Present value of obligation at beginning of year 2,500 1,160 Current service cost 435 261 Interest cost 214 98 %HQHǟWVSDLG (510) (246) Acquisitions / transfer in / out (21) 1 Actuarial (gain) / loss 132 (39) Present value of obligation at year end 2,750 1,235 Change in plan assets : Fair value of plan assets at beginning of year 104 - Expected return on plan assets 9 - Actuarial gain / (loss) (9) - %HQHǟWVSDLG (38) - Fair value of plan assets at year end 66 - Net funded status of the plan (2,684) (1,235) Current Liabilities 576 1,235 Non-Current Liabilities 2,108

238 Annual Report 2015-16 126-355 Bharti Airtel Limited 02-39 | Corporate Overview 40-125 | Statutory Reports Financial Statements

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For the year ended March 31, 2015: (` Millions) Particulars Gratuity Leave Encashment Change in Obligation Present value of obligation at beginning of year 2,390 1,195 Current service cost 370 243 Interest cost 192 96 %HQHǟWVSDLG (415) (210) Acquisitions / transfer in / out (44) (3) Actuarial (gain) / loss 7 (162) Present value of obligation at year end 2,500 1,159 Change in plan assets : Fair value of plan assets at beginning of year 179 - Expected return on plan assets 13 - Actuarial gain / (loss) 75 - Amount received on redemption of plan assets (161) - %HQHǟWVSDLG (2) - Fair value of plan assets at year end 104 - Net funded status of the plan (2,396) (1,159) Current Liabilities 516 1,159 Non-Current Liabilities 1,880

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I  +LVWRU\RIH[SHULHQFHDGMXVWPHQWLVDVIROORZV (` Millions) Gratuity Particulars As of As of As of As of As of March 31, March 31, March 31, March 31, March 31, 2016 2015 2014 2013 2012 Present value of obligation 2,750 2,500 2,334 1,979 1,500 Plan assets 66 104 179 183 81 6XUSOXV GHǟFLW (2,684) (2,396) (2,155) (1,796) (1,419) Experience adjustments on (2) (138) (26) (29) (28) obligation- gain/(loss) Experience adjustments on plan (1) 74 (6) - - assets- gain/(loss)

(` Millions) Leave Encashment Particulars As of As of As of As of As of March 31, March 31, March 31, March 31, March 31, 2016 2015 2014 2013 2012 Present value of obligation 1,235 1,159 1,123 1,128 902 Experience adjustments on 79 104 93 - - obligation- gain/(loss)

Consolidated Financial Statements (IGAAP) 239 Transformational Network

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41. Related Party Disclosures ,QGR7HOHSRUWV/LPLWHG IRUPHUO\NQRZQDV%KDUWL7HOHSRUWV 5HODWHG SDUWLHV ZKHUH FRQWURO H[LVWV DQG  RU ZLWK ZKRP /LPLWHG  XSWLOO$XJXVW  UHIHUQRWH L WUDQVDFWLRQV KDYH WDNHQ SODFH GXULQJ WKH \HDU DQG E -RLQW9HQWXUHV GHVFULSWLRQRIUHODWLRQVKLSVDUH )RUXP , $YLDWLRQ /LPLWHG -RLQW 9HQWXUH RI %KDUWL $LUWHO Name of the related party and related party 6HUYLFHV/LPLWHG  &HDVHGWREHUHODWHGSDUW\ZHI-DQXDU\ relationship :  (i) Key Management Personnel ,QGXV7RZHUV/LPLWHG -RLQW9HQWXUHRI%KDUWL,QIUDWHO/LPLWHG  6XQLO%KDUWL0LWWDO %ULGJH0RELOH3WH/LPLWHG Gopal Vittal )LUH)O\1HWZRUNV/LPLWHG  &KULVWDQGH)DULD (c) Entities where Key Management Personnel and their (ii) Other Related Parties UHODWLYHVDUHDEOHWRH[HUFLVHVLJQLǟFDQWLQǠXHQFH (a) Associates %KDUWL)RXQGDWLRQ 7DQ]DQLD7HOHFRPPXQLFDWLRQV&RPSDQ\/LPLWHG $VVRFLDWH %KDUWL$LUWHO(PSOR\HHV:HOIDUH7UXVW RI%KDUWL$LUWHO7DQ]DQLD%9 +LNH/LPLWHG 6H\FKHOOHV &DEOH 6\VWHPV &RPSDQ\ /LPLWHG $VVRFLDWH RI 0RELQWHFR/LPLWHG 0HUJHGZLWK+LNH/LPLWHGZHI $LUWHO 6H\FKHOOHV /LPLWHG 'HFHPEHU &HGDU6XSSRUW6HUYLFHV/LPLWHG

240 Annual Report 2015-16 126-355 Bharti Airtel Limited 02-39 | Corporate Overview 40-125 | Statutory Reports Financial Statements

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The details of amounts due to or due from the related parties as of March 31, 2016 and March 31, 2015 are as follows:

(` Millions) As of As of S. Particulars March 31, March 31, No 2016 2015 1 Loans & Advances (including any accrued interest) (QWLWLHVZKHUH.H\0DQDJHPHQW3HUVRQQHODQGWKHLUUHODWLYHVH[HUFLVH VLJQLǂFDQW,QǃXHQFH Bharti Airtel Employees Welfare Trust 508 98 Bharti Infratel Employees Welfare Trust 555 624 Associate Indo Teleports Limited (formerly known as Bharti Teleports Limited) - 466 Group Companies $XJHUH:LUHOHVV%URDGEDQG,QGLD3YW/WG 51 - Joint Venture )LUHǠ\1HWZRUNOLPLWHG 3 - 1,117 1,188 2 Security Deposit/Advances given Group Companies Bharti Realty Limited 419 419 Bharti Realty Holdings Limited 103 99 Centum learning Limited 60 60 Nile Tech Limited 428 396 Joint Venture Indus Towers Limited 2,208 2,136 )LUHǠ\1HWZRUNOLPLWHG 0 - 3,218 3,110 3 Trade Receivables Associate Indo Teleports Limited (formerly known as Bharti Teleports Limited) - 125 Joint Venture of Subsidiary Indus Towers Limited 14 139

Consolidated Financial Statements (IGAAP) 241 Transformational Network

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(` Millions) As of As of S. Particulars March 31, March 31, No 2016 2015 Group Companies Bharti Retail Limited 72 69 Bharti AXA Life Insurance Company Limited 7 5 Bharti Realty Limited 43 32 Bharti Realty Holdings Limited 8 4 Bharti AXA General Insurance Co Ltd 9 7 Fieldfresh Foods Private Limited 2 1 Jersey Airtel Limited 7 6 Bharti Enterprises Limited 0 - Beetel Teletech Limited 12 10 Nile Tech Limited 2 - Ignite World Private Limited (formerly known as BSB Portal Limited) 29 35 Hike Messenger Limited (formerly Known as BSB Innovation India Limited) 1 2 Centum learning Limited 82 13 Bharti Land Limited 1 - $XJHUH:LUHOHVV%URDGEDQG,QGLD3YW/WG 65 - (QWLWLHVZKHUH.H\0DQDJHPHQW3HUVRQQHODQGWKHLUUHODWLYHVH[HUFLVH VLJQLǂFDQW,QǃXHQFH Hike Limited 36 65 (QWLW\KDYLQJVLJQLǂFDQWLQǃXHQFHRYHUWKH&RPSDQ\ 6LQJDSRUH7HOHFRPPXQLFDWLRQV/WG 233 342 623 855 4 Trade Payables Associate Indo Teleports Limited (formerly known as Bharti Teleports Limited) - 1 Tanzania Telecommunications Company Limited 613 145 Joint Ventures Indus Towers Limited 5,049 5,175 %ULGJH0RELOH3WH/LPLWHG 4 5 )LUHǠ\1HWZRUNOLPLWHG 12 - Group Companies Beetel Teletech Limited 515 243 Bharti Realty Limited - 10 Bharti Retail Limited 2 3 Bharti Realty Holdings Limited 14 15 Bharti Enterprises Limited 18 45 Bharti AXA General Insurance Co Ltd 2 127 Nile Tech Limited 1 0 Ignite World Private Limited (formerly known as BSB Portal Limited) 78 201 Centum learning Limited 94 114 <&)'LJLWDO0HGLD3YW/WG - 2 (QWLW\KDYLQJVLJQLǂFDQWLQǃXHQFHRYHUWKH&RPSDQ\ Singapore Telecommunications Limited 533 436 6,935 6,522

242 Annual Report 2015-16 126-355 Bharti Airtel Limited 02-39 | Corporate Overview 40-125 | Statutory Reports Financial Statements

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(` Millions) For the year For the year S. Particulars ended ended No March 31, 2016 March 31, 2015 1 3XUFKDVHRIǂ[HGDVVHWVEDQGZLGWK Group Companies Ignite World Private Limited (formerly known as BSB Portal Limited) - 92 Beetel Teletech Limited 2,475 1,204 Associate of Subsidiary Seychelles Cable Systems Company Limited - 111 2,475 1,407 2 Rendering of Services Associate /Associate of Subsidiary Indo Teleports Limited (formerly known as Bharti Teleports Limited) 13 29 Tanzania Telecommunications Company Limited 115 106 Group Companies Fieldfresh Foods Private Limited 10 3 Bharti AXA Life Insurance Company Limited 23 21 Jersey Airtel Limited 15 23 Bharti Realty Limited 13 - Bharti Retail Limited 46 69 Gourmet Investments Private Limited - - Atrium Restaurants India Private Limited 0 - Bharti Land Limited 1 - Ignite World Private Limited (formerly known as BSB Portal Limited) 28 19 Beetel Teletech Limited 7 3 Bharti Realty Holdings Limited 6 1 Bharti AXA General Insurance Co Ltd 33 12 Hike Messenger Limited (Formerly Known as BSB Innovation India 1 2 Limited) Bharti Enterprises Limited 3 0 Centum learning Limited 7 6 Joint Venture of Subsidiary Indus Towers Limited 21 - (QWLWLHVZKHUHNH\PDQDJHPHQWSHUVRQQHO WKHLUUHODWLYHV H[HUFLVHVLJQLǂFDQWLQǃXHQFH Hike Limited 190 116 Mobinreco Limited (Merged with Hike Limited wef December 22,2015 ) - - Bharti Foundation 3 0 (QWLW\KDYLQJVLJQLǂFDQWLQǃXHQFHRYHUWKH&RPSDQ\ 6LQJDSRUH7HOHFRPPXQLFDWLRQV/WG 1,313 1,444 1,848 1,854 3 Receiving of services Associate of Subsidiary Tanzania Telecommunications Company Limited 928 305 Joint Ventures Indus Towers Limited 22,379 20,341 Bridge Mobile Pte Limited 23 23 FireFly Networks Limited 12 - Group Companies Beetel Teletech Limited 1,457 730 Bharti Realty Limited 9 5

Consolidated Financial Statements (IGAAP) 243 Transformational Network

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(` Millions) For the year For the year S. Particulars ended ended No March 31, 2016 March 31, 2015 Bharti Retail Limited 1 - Ignite World Private Limited (formerly known as BSB Portal Limited) 707 755 <&)'LJLWDO0HGLD3YW/WG 2 4 Bharti Realty Holdings Limited 227 192 Bharti AXA Life Insurance Company Limited 0 71 Bharti AXA General Insurance Company Limited 34 52 Jersey Airtel Limited 1 1 Centum learning Limited 610 797 %KDUWL5HWDLO/WG - 3 (QWLW\KDYLQJVLJQLǂFDQWLQǃXHQFHRYHUWKH&RPSDQ\ 6LQJDSRUH7HOHFRPPXQLFDWLRQV/WG 629 614 27,019 23,893 4 Fund transferred/Expenses incurred on behalf of others Associate Indo Teleports Limited (formerly known as Bharti Teleports Limited) - 23 Group Companies %KDUWL5HWDLO/WG - 2 - 25 5 Fund received/Expenses incurred on behalf of the Company Joint Venture Forum 1 Aviation Ltd 21 40 Indus Towers Limited 51 38 Group Companies %KDUWL5HWDLO/WG 0 1 Bharti Realty Limited 6 - Bharti Realty Holdings Limited 16 - Bharti Enterprises Limited 234 926 328 1,005 6 Employee related expenses incurred on behalf of the Company Group Companies Bharti Enterprises Limited 97 127 %KDUWL5HWDLO/WG - 1 Bharti Realty Limited 0 - Bharti Realty Holdings Limited 0 - Centum learning Limited 0 1 Beetel Teletech Limited 0 0 97 129 7 Donation (QWLWLHVZKHUH.H\0DQDJHPHQW3HUVRQQHODQGWKHLUUHODWLYHV H[HUFLVHVLJQLǂFDQW,QǃXHQFH Bharti Foundation 830 804 830 804 8 Security deposit given/Advances paid Joint Venture Indus Towers Limited 73 42 FireFly Networks Limited 0 - Associate Indo Teleports Limited (formerly known as Bharti Teleports Limited) - 0 Group Companies Bharti Realty Limited 35 0 Nile Tech Limited 33 0

244 Annual Report 2015-16 126-355 Bharti Airtel Limited 02-39 | Corporate Overview 40-125 | Statutory Reports Financial Statements

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(` Millions) For the year For the year S. Particulars ended ended No March 31, 2016 March 31, 2015 Bharti Realty Holdings Limited 4 - (QWLW\KDYLQJVLJQLǂFDQWLQǃXHQFHRYHUWKH&RPSDQ\ %KDUWL7HOHFRP/WG 0 1 145 43 9 Loans given (QWLWLHVZKHUH.H\0DQDJHPHQW3HUVRQQHODQGWKHLUUHODWLYHV H[HUFLVHVLJQLǂFDQW,QǃXHQFH Bharti Airtel Employees Welfare Trust 514 - Bharti Infratel Employees Welfare Trust - 624 Joint Venture FireFly Networks Limited 3 - Group Companies $XJHUH:LUHOHVV%URDGEDQG,QGLD3YW/WG 40 - Associate Indo Teleports Limited (formerly known as Bharti Teleports Limited) 14 154 571 778 10 Repayment of Loans given Joint Venture of Subsidiary Indus Tower Limited - 5,320 Associate Indo Teleports Limited (formerly known as Bharti Teleports Limited) 14 - (QWLWLHVZKHUH.H\0DQDJHPHQW3HUVRQQHODQGWKHLUUHODWLYHV H[HUFLVHVLJQLǂFDQW,QǃXHQFH Bharti Airtel Employees Welfare Trust 104 228 Bharti Infratel Employees Welfare Trust 69 - 187 5,548 11 Dividend Paid (QWLWLHVKDYLQJVLJQLǂFDQWLQǃXHQFHRYHUWKH&RPSDQ\ 3DVWHO/WG 1,313 2,028 %KDUWL7HOHFRP/WG 3,886 5,994 Group Companies ,QGLDQ&RQWLQHQW,QYHVWPHQW/WG 590 912 Key Management Personnel *RSDO9LWWDO 0 0 Entities Where Key Management Personnal and their relative H[HUFLVHVLJQLǂFDQW,QǃXHQFH Bharti Airtel Employees Welfare Trust 1 7 Bharti Infratel Employees Welfare Trust 11 - 5,801 8,941 12 Reimbursement of energy expenses Joint Venture of Subsidiary Indus Towers Limited 13,467 13,514 Group Companies Bharti Realty Holdings Limited 4 3 13,471 13,517 13 Remuneration Key Management Personnel 6KRUW7HUP(PSOR\HH%HQHǟWV 274 250 'HǟQHG&RQWULEXWLRQ3ODQ 24 22 Performance Linked Incentive ('PLI')# 153 153 451 425

Consolidated Financial Statements (IGAAP) 245 Transformational Network

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(` Millions) For the year For the year S. Particulars ended ended No March 31, 2016 March 31, 2015 14 Rent Expense Group Companies Beetel Teletech Limited 4 13 Bharti Realty Limited 1,116 655 Bharti Axa Life Insurance Company Limited 0 1 Nile Tech Limited 667 553 1,787 1,222 15 Rent Income Associate Indo Teleports Limited (formerly known as Bharti Teleports Limited) 2 4 2 4 16 Interest Income Associate Indo Teleports Limited (formerly known as Bharti Teleports Limited) 22 47 Group Companies $XJHUH:LUHOHVV%URDGEDQG,QGLD3YW/WG 2 - Joint Venture FireFly Networks Limited 0 - 24 47 17 Refund of security deposit Group Companies Bharti Realty Limited 32 - Joint Venture )RUXP$YLDWLRQ/WG 3 - (QWLW\KDYLQJVLJQLǂFDQWLQǃXHQFHRYHUWKH&RPSDQ\ %KDUWL7HOHFRP/LPLWHG - 1 35 1 18 Claim received Group Companies %KDUWL$[D*HQHUDO,QVXUDQFH&RPSDQ\/LPLWHG 72 46 72 46 19 Purchase of investment Joint Venture )LUHǍ\1HWZRUNOLPLWHG - 5 - 5 20 Reduction of share capital Joint Venture %ULGJH0RELOH3WH/LPLWHG - 78 - 78 21 Employee related expenses incurred on behalf of the Others Joint Venture - )LUHǍ\1HWZRUNOLPLWHG 7 - Group Companies %KDUWL(QWHUSULVHV/LPLWHG 40 - &HQWXPOHDUQLQJ/LPLWHG 2 - 49 - 9DOXHRI3/,FRQVLGHUHGDERYHUHSUHVHQWVLQFHQWLYHDWSHUIRUPDQFHOHYHO+RZHYHUVDPHZLOOEHSDLGRQWKHEDVLV RIDFWXDOSHUIRUPDQFHSDUDPHWHUVLQQH[W\HDU$GGLWLRQDOSURYLVLRQRI`0QDQG`0QKDVEHHQUHFRUGHGLQWKHERRNV WRZDUGV3/,IRUWKH\HDUHQGHG0DUFKDQG0DUFKUHVSHFWLYHO\'XULQJWKH\HDUHQGHG0DUFK3/, RI`0Q 0DUFK` 0Q SHUWDLQLQJWRSUHYLRXV\HDUKDVEHHQSDLG

246 Annual Report 2015-16 126-355 Bharti Airtel Limited 02-39 | Corporate Overview 40-125 | Statutory Reports Financial Statements

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42. Lease a) Operating lease - As a lessee  7KHOHDVHUHQWDOVFKDUJHGGXULQJWKH\HDUIRUFDQFHOODEOHQRQFDQFHOODEOHOHDVHVUHODWLQJWRUHQWRIEXLOGLQJSUHPLVHV DQGFHOOVLWHVDVSHUWKHDJUHHPHQWVDQGPD[LPXPREOLJDWLRQRQORQJWHUPQRQFDQFHOODEOHRSHUDWLQJOHDVHVDUHDV IROORZV

(` Millions) As of As of Particulars March 31, 2016 March 31, 2015 Lease rentals [excluding lease equalisation reserve - ` 1,340 Mn 64,559 53,829 ( March 31, 2015 ` 1,580 Mn)] Obligations on non-cancellable leases : Not later than one year 49,241 42,232 /DWHUWKDQRQH\HDUEXWQRWODWHUWKDQǟYH\HDUV 152,459 143,424 /DWHUWKDQǟYH\HDUV 101,436 93,393 Total 303,135 279,049  7KHHVFDODWLRQFODXVHLQFOXGHVHVFDODWLRQUDQJLQJIURPWRLQFOXGHVRSWLRQRIUHQHZDOIURPWR\HDUVDQG WKHUHDUHQRRWKHUVLJQLnjFDQWUHVWULFWLRQVLPSRVHGE\OHDVHDUUDQJHPHQWV b) Operating Lease – As a Lessor  L  7KH&RPSDQ\KDVHQWHUHGLQWRQRQŞFDQFHOODEOHOHDVHDUUDQJHPHQWVWRSURYLGHGDUNnjEHURQLQGHIHDVLEOHULJKWRI XVH ,58 EDVLVDQGFHUWDLQSUHPLVHVRQOHDVH'XHWRWKHQDWXUHRIWKHWUDQVDFWLRQLWLVQRWSRVVLEOHWRFRPSXWH JURVVFDUU\LQJDPRXQWGHSUHFLDWLRQIRUWKH\HDUDQGDFFXPXODWHGGHSUHFLDWLRQRIWKHDVVHWJLYHQRQRSHUDWLQJ OHDVHDVRI0DUFKDQGDFFRUGLQJO\GLVFORVXUHVUHTXLUHGE\$6/HDVHVDUHQRWSURYLGHG  LL  7KHIXWXUHPLQLPXPOHDVHSD\PHQWVUHFHLYDEOHDUH (` Millions) As of As of Particulars March 31, 2016 March 31, 2015 Not later than one year 49,821 43,492 /DWHUWKDQRQH\HDUEXWQRWODWHUWKDQǟYH\HDUV 157,129 160,167 /DWHUWKDQǟYH\HDUV 62,948 57,148 Total 269,898 260,807 c) Finance Lease – As a Lessee  L  )LQDQFH/HDVHREOLJDWLRQRIWKH*URXSDVOHVVHHDVRI0DUFKLVDVIROORZ

(` Millions) Particulars Future minimum Interest Present value lease payments Not later than one year 10,160 5,414 4,746 /DWHUWKDQRQH\HDUEXWQRWODWHUWKDQǟYH 38,263 16,973 21,290 years /DWHUWKDQǟYH\HDUV 39,381 7,545 31,835 Total 87,804 29,932 57,871

Consolidated Financial Statements (IGAAP) 247 Transformational Network

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(` Millions) Particulars Future minimum Interest Present value lease payments Not later than one year 721 164 557 /DWHUWKDQRQH\HDUEXWQRWODWHUWKDQǟYH 1,083 421 662 years /DWHUWKDQǟYH\HDUV 575 166 409 Total 2,379 751 1,628 d) Finance Lease – As a Lessor L  7KHIXWXUHPLQLPXPOHDVHSD\PHQWVUHFHLYDEOHRIWKH*URXSDVRI0DUFKLVDVIROORZV

(` Millions) Particulars Future minimum Interest Present value lease payments Not later than one year 126 33 93 /DWHUWKDQRQH\HDUEXWQRWODWHUWKDQǟYH 297 37 260 years Total 423 70 353

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(` Millions) Particulars Future minimum Interest Present value lease payments Not later than one year 45 13 32 /DWHUWKDQRQH\HDUEXWQRWODWHUWKDQǟYH 123 17 106 years Total 168 30 138

248 Annual Report 2015-16 126-355 Bharti Airtel Limited 02-39 | Corporate Overview 40-125 | Statutory Reports Financial Statements

NotesWRFRQVROLGDWHGnjQDQFLDOVWDWHPHQWV  `)             average average exercise exercise price ( Weighted Weighted ------1- 0- 34 143 - 309 - 433 560 As of March 31, 2015 March As of Share Share 4,380 5,489 8,817 1,691 3,615 1,649 9,913 3,4355,909 - - 30,893 11,260 options granted granted (thousands) `)               average average exercise exercise price ( Weighted Weighted 1 - 1 - 0- 34 90 143 - 433 560 309 - As of March 31, 2016 March As of 4,380 5,489 8,817 1,691 3,615 1,649 1,576 9,913 3,4355,9201,045 - - - 30,893 11,260 Share Share options granted granted (thousands) H DQG 5HPXQHUDWLRQ &RPPLWWHH DQG FRPPXQLFDWHG WKURXJK WKH DZDUG 7 7 7 7 7 7 7 7 7 7 7 7 7 7 3 3 7 7 7 7 3-5 term term (years) Contractual Contractual 1 - 3 period (years) Vesting Vesting 20082009 1 - 3 2010 3 - 4 2011 1 - 5 1 - 3 20142015 1 - 5 1 - 3 2014 2013 1 - 3 Year of of Year of plan of issuance RSWLRQSODQVRIWKH*URXS SOLFDEOH XQGHU WKH 6FKHPH RU DV GHWHUPLQHG E\ WKH +XPDQ 5HVRXUF Grant Plan (AGP) Grant (PSP) 2009 Plan Units (RSU) Plan Share Plan Unit Plan Performance (PUP) 2014 Unit Plan Performance (PUP) 2015 Performance Unit Plan Performance (PUP) 2013 Infratel planInfratel planInfratel 2008 Plan 2008 plan) of Plan (Part LTI 2012 1 - 3 Plan (PUP) 2014 2008Plan (PUP) 2015 1 - 5 Infratel planInfratel 2015 Plan 2015 1 - 3 Infratel planInfratel PUP 2013 & Plan (PUP) 2013 Bharti Airtel Scheme I Superpot * 2004 1 - 3 Bharti Airtel Scheme IBharti Airtel Scheme 2005Bharti Airtel Scheme 2005 2004 Plan *Bharti Airtel 2005 Plan * Scheme 2005 2008 Plan & Annual Bharti Airtel Scheme 2005 Plan Share Performance Bharti Airtel Scheme 2005 Special ESOP & Restricted 2004Bharti Airtel (LTI) Incentive Long Term Scheme 2005Bharti 2005Infratel 1 - 4 Bharti 1 - 4 Plan LTI Infratel Bharti Airtel Unit Performance 2015Bharti Airtel Unit Performance 1 - 3 Entity SchemeBharti Airtel Scheme I Plan 2001 Plan * 2002 1 - 4 Plans Cash settled Bharti Airtel Scheme 2005 Plan Africa * LTI 2011 1 - 3 Indus Indus Plan SAR Plan - 2 2013 1 - 3 Bharti Airtel Scheme I 2006 Plan 2006 1 - 5 Bharti Infratel Indus Indus Plan SAR Plan - 1 2013 ** Bharti Infratel Bharti Airtel Scheme 2005 Plan LTI Bharti Airtel Unit Performance 2012 1 - 3 Equity settled Plans settled Equity OHWWHUV 43. Compensation Stock Employee  7KHIROORZLQJWDEOHSURYLGHVDQRYHUYLHZRIDOOH[LVWLQJVKDUH  &RQWUDFWXDOWHUPKDVH[SLUHG  7KH YHVWLQJ VFKHGXOH RI 6$5 3ODQ VWLSXODWHV YHVWLQJ DV DS        

Consolidated Financial Statements (IGAAP) 249 Transformational Network

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(` Millions) Year ended Year ended Particulars March 31, 2016 March 31, 2015 Equity-settled share-based payment transactions 248 (4) Cash-settled share-based payment transactions 780 777 1,028 773

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As of March 31, 2016 As of March 31, 2015 Particulars Number of Weighted average Number of Weighted average share options exercise price share options exercise price (In ‘000) (`) (In ‘000) (`) Equity Settled Plans Scheme I - 2006 Plan Outstanding at beginning of year 390  539  Granted - - 225  Exercised (75)  (98)  Forfeited / Expired (10)  (276)  Outstanding at end of year 305  390  Exercisable at end of year 30  65 

Scheme 2005 - 2005 Plan Outstanding at beginning of year - - 1,008  Granted - - - - Exercised - - - - Forfeited / Expired - - (1,008)  Outstanding at end of year - - - - Exercisable at end of year - - - -

Scheme 2005 - 2008 Plan & AGP Outstanding at beginning of year 2,534  3,439  Granted - - - - Exercised (686)  (173)  Forfeited / Expired (1,209)  (732)  Outstanding at end of year 639  2,534  Exercisable at end of year 639  2,534 

Scheme 2005 - PSP 2009 Plan Outstanding at beginning of year 83  242  Granted - - - - Exercised (22)  (159)  Forfeited / Expired (8)  -  Outstanding at end of year 53  83  Exercisable at end of year 53  83 

Scheme 2005 - Special ESOP & RSU Plan Outstanding at beginning of year 189  408  Granted - - - - Exercised (44)  (178)  Forfeited / Expired (19)  (41)  Outstanding at end of year 126  189  Exercisable at end of year 126  189 

250 Annual Report 2015-16 126-355 Bharti Airtel Limited 02-39 | Corporate Overview 40-125 | Statutory Reports Financial Statements

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As of March 31, 2016 As of March 31, 2015 Particulars Number of Weighted average Number of Weighted average share options exercise price share options exercise price (In ‘000) (`) (In ‘000) (`) Scheme 2005 - LTI Plan (2011, 2012 & 2015) Outstanding at beginning of year 523  1,072  Granted 1,576  67  Exercised (201)  (356)  Forfeited / Expired (189)  (260)  Outstanding at end of year 1,709  523  Exercisable at end of year 208  230  Bharti Infratel : 2008 Plan Outstanding at beginning of year 3,834  8,554  Granted - - - - Exercised (3,078)  (4,463)  Forfeited / Expired (24)  (257)  Outstanding at end of year 732  3,834  Exercisable at end of year 732  3,607  Bharti Infratel : LTI Plan (Part of 2008 Plan) Number of shares under option: Outstanding at beginning of year 6  16  Granted - - - - Exercised (2)  (5)  Forfeited / Expired -  (5)  Outstanding at end of year 4  6  Exercisable at end of year 4  3  Bharti Infratel : LTI Plan (2015 Plan) Number of shares under option: Outstanding at beginning of year - - - - Granted 90  - - Exercised - - - - Expired - - - - Forfeited / Expired - - - - Outstanding at end of year 90  - - Exercisable at end of year - - - - Cash Settled Plan Scheme 2005 - LTI Plan Africa Outstanding at beginning of year - - 107  Granted - - - - Exercised - - - - Forfeited - - (107)  Outstanding at end of year - - - - Exercisable at end of year - - - - PUP 2013 Outstanding at beginning of year 1,435 - 3,004 - Granted - - 140 - Exercised (381) - (589) - Forfeited (555) - (1,120) - Outstanding at end of year 499 - 1,435 - Exercisable at end of year - - - -

Consolidated Financial Statements (IGAAP) 251 Transformational Network

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As of March 31, 2016 As of March 31, 2015 Particulars Number of Weighted average Number of Weighted average share options exercise price share options exercise price (In ‘000) (`) (In ‘000) (`) PUP 2014 Number of shares under option: Outstanding at beginning of year 5,548 - - - Granted 11 - 5,909 - Exercised (441) - - - Forfeited / Expired (1,477) - (361) - Outstanding at end of year 3,641 - 5,548 - Exercisable at end of year - - - - PUP 2015 Number of shares under option: Outstanding at beginning of year - - - - Granted 1,045 - - - Exercised - - - - Forfeited / Expired (138) - - - Outstanding at end of year 907 - - - Exercisable at end of year - - - - Bharti Infratel : Performance Unit Plan Number of shares under option: Outstanding at beginning of year 238 - 171 - Granted - - 138 - Exercised (51) - (46) - Forfeited / Expired (4) - (25) - Outstanding at end of year 183 - 238 - Exercisable at end of year 37 - 2 - Indus : SAR Plan 1 * Number of shares under option: Outstanding at beginning of year  -  - Exercised   -   - Forfeited / Expired - -   - Outstanding at end of year  -  - Exercisable at end of year  -  - Indus : SAR Plan 2 * Number of shares under option: Outstanding at beginning of year  -  - Granted  -  - Exercised   -   - Forfeited / Expired   -   - Outstanding at end of year  -  - Exercisable at end of year  -  -  5HSUHVHQWVWKH&RPSDQ\šVVKDUHRILQWKHMRLQWYHQWXUH

252 Annual Report 2015-16 126-355 Bharti Airtel Limited 02-39 | Corporate Overview 40-125 | Statutory Reports Financial Statements

NotesWRFRQVROLGDWHGnjQDQFLDOVWDWHPHQWV ) ) ` ` ( (                    average average average average Weighted Weighted Weighted Weighted share price share share price price share ------46 98 589 356 201 441       the year ended the year the year ended the year March 31, 2015 March Options March 31, 2016 March Options (thousands) (thousands) Options Excercised during Options Excercised Options Excercised during Options Excercised ) ) ` ` ( ( DQGWKHLUUHPDLQLQJFRQWUDFWXDOOLIH          average average average average Weighted Weighted Fair Value Value Fair Weighted Weighted Fair Value Value Fair ------173 159 178 - - - - - 4,463 5 ------75 686 - 22 44 - 3,078 2 381 - - 51 - - 67 90 11 138 140 225 5,909 1,576 1,045 the year ended the year the year ended the year March 31, 2015 March Options March 31, 2016 March Options Options Granted during Options Granted Options Granted during Options Granted (thousands) (thousands)          (years) (years) remaining remaining remaining remaining WR      WR      contractual life life contractual contractual life life contractual Weighted average average Weighted Weighted average average Weighted ) - - ) - - ` ` ( (     price       price

           Exercise Exercise WR  Exercise Exercise as of March 31, 2016 March as of Options Outstanding as of March 31, 2015 March as of Options Outstanding WR  LVHGDQGJUDQWHGGXULQJWKH\HDUDQGDERXWRSWLRQVRXWVWDQGLQJ 4 53 90 499 - 305 639 126 732 183 - 907 -   1,709 3,641 -   (thousands) (thousands) IndusIndus SAR Plan 1 SAR Plan 2 Bharti Infratel Unit Plan Performance 238 - Bharti Airtel PUP 2014 5,548 - Equity settled Plans settled Equity Bharti Airtel 2006 Plan 390 Bharti AirtelBharti Airtel 2008 Plan & AGPBharti Airtel PSP 2009 PlanBharti Airtel Special ESOP & RSU Plan Plan (2011 & 2012) LTI 189 2,534 523 83 Bharti Infratel 2008 Plan 3,834 Bharti Infratel 2008 Plan) of Plan (Part LTI Plans Cash settled Bharti Airtel PUP 2013 6 1,435 - Cash settled Plans Cash settled Bharti Airtel PUP 2013 Entity Plan Options Equity settled Plans settled Equity Bharti AirtelBharti Airtel 2006 Plan Bharti Airtel 2008 Plan & AGP Bharti Airtel PSP 2009 Plan Bharti Airtel Special ESOP & RSU Plan Bharti Infratel Plan (2011, 2012 & 2015) LTI 2008 Plan Bharti Infratel 2008 Plan) of Plan (Part LTI Bharti Infratel 2015 Plan Bharti Airtel PUP 2014 Bharti Infratel Unit Plan Performance IndusIndus SAR Plan 1 SAR Plan 2 Entity PlanBharti Airtel Options PUP 2015 7KHIROORZLQJWDEOHVXPPDULVHVLQIRUPDWLRQDERXWRSWLRQVH[HUF March 31, 2016 March March 31, 2015 March

Consolidated Financial Statements (IGAAP) 253 Transformational Network

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Year ended March Year ended March Particulars 31, 2016 31, 2015 Risk free interest rates WR WR Expected life 4 to 60 months 10 to 72 months 9RODWLOLW\ WR WR Dividend yield excluding Indus WR WR Dividend yield - Indus WR WR Wtd average share price on measurement date exluding Infratel (`) WR WR Wtd average exercise price on measurement date exluding Infratel (`) 0 to 5 0 to 5 Wtd average share price on measurement date - Infratel (`)   Wtd average exercise price on measurement date - Infratel (`)  -

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44. Derivatives  7KH*URXSšVDFWLYLWLHVH[SRVHLWWRDYDULHW\RInjQDQFLDOULVNVLQFOXGLQJWKHHNjHFWVRIFKDQJHVLQIRUHLJQFXUUHQF\H[FKDQJH UDWHVDQGLQWHUHVWUDWHV7KH*URXSXVHVGHULYDWLYHnjQDQFLDOLQVWUXPHQWVVXFKDVIRUHLJQH[FKDQJHFRQWUDFWVRSWLRQ FRQWUDFWVDQGLQWHUHVWUDWHVZDSVWRPDQDJHLWVH[SRVXUHVWRIRUHLJQH[FKDQJHǍXFWXDWLRQVDQGFKDQJHVLQLQWHUHVWUDWH  7KHIROORZLQJWDEOHGHWDLOVWKHVWDWXVRIWKH*URXSšVH[SRVXUH

(` Millions) S. Notional Value Notional Value Particulars No. (March 31, 2016) (March 31, 2015) A For Loan related exposures* a) Forwards 76,712 7,023 b) Options 35,908 32,548 c) Interest rate swaps 251,356 186,990 Total 363,976 226,561 B For Trade related exposures* a) Forwards 20,707 13,992 b) Options 26,082 6,605 c) Interest Rate Swaps - - Total 46,789 20,597 C 8QKHGJHGIRUHLJQFXUUHQF\ERUURZLQJ 340,036 370,962 D Unhedged foreign currency payables 51,537 75,877 E Unhedged foreign currency receivables 82,210 66,614

 7UDGHUHODWHGH[SRVXUHLQFOXGHVKHGJHVWDNHQIRUIRUHFDVWHGUHFHLYDEOHV  7KH*URXSKDVDFFRXQWHGIRUGHULYDWLYHVZKLFKDUHFRYHUHGXQGHUWKH$QQRXQFHPHQWLVVXHGE\WKH,&$,RQPDUNHGWR PDUNHWEDVLVDQGKDVUHFRUGHGDQHWORVV` 0Q LQFOXGLQJQHWORVVRI` 0QWRZDUGVHPEHGGHGGHULYDWLYHV IRU WKH\HDUHQGHG0DUFKDQGUHFRUGHGUHYHUVDORIORVVRI` 0Q LQFOXGLQJUHYHUVDORIORVVRI` 0QWRZDUGV HPEHGGHGGHULYDWLYHV IRUWKH\HDUHQGHG0DUFK

254 Annual Report 2015-16 126-355 Bharti Airtel Limited 02-39 | Corporate Overview 40-125 | Statutory Reports Financial Statements

NotesWRFRQVROLGDWHGnjQDQFLDOVWDWHPHQWV

45. Movement in Provision a) Doubtful Debts/Advances (` Millions) For the year ended For the year ended Particulars March 31, 2016 March 31, 2015 Balance at the beginning of the year# 35,199 31,585 Provision for the year 9,373 9,401 :ULWHRNjRIEDGGHEWV QHWRIUHFRYHU\ (6,867) (4,247) Currency translation 2,573 (1,540) Balance at the end of the year# 40,278 35,199   LQFOXGHVSURYLVLRQIRUGRXEWIXO7'6UHFHLYDEOHRI` 0Q 0DUFK` 0Q JURXSHGXQGHU$GYDQFHWD[

b) Subjudice Matters   7KH*URXS LV LQYROYHG LQ YDULRXV OLWLJDWLRQV WKH RXWFRPH RI ZKLFK DUH FRQVLGHUHG SUREDEOH DQG LQ UHVSHFW RI ZKLFK WKH *URXS KDV PDGH DJJUHJDWH SURYLVLRQV RI `  0Q DV DW 0DUFK   0DUFK   ` 0Q    7KHPRYHPHQWRISURYLVLRQWRZDUGVVXEMXGLFHPDWWHUVGLVFORVHGXQGHURWKHUQRQFXUUHQWDVVHWV UHIHUQRWH DQG RWKHUFXUUHQWOLDELOLWLHV UHIHUQRWH

  0RYHPHQWLQ3URYLVLRQWRZDUGVVXEMXGLFHPDWWHUV (` Millions) For the year ended For the year ended Particulars March 31, 2016 March 31, 2015 Opening Balance 86,531 74,674 Additions (net) 26,906 11,857 Closing Balance 113,437 86,531

Consolidated Financial Statements (IGAAP) 255 Transformational Network

NotesWRFRQVROLGDWHGnjQDQFLDOVWDWHPHQWV

46. Security Details 7KH*URXSKDVWDNHQERUURZLQJVLQYDULRXVFRXQWULHVWRZDUGVIXQGLQJRILWVDFTXLVLWLRQDQGZRUNLQJFDSLWDOUHTXLUHPHQWV 7KHERUURZLQJVFRPSULVHRIIXQGLQJDUUDQJHPHQWVZLWKYDULRXVEDQNVDQGnjQDQFLDOLQVWLWXWLRQVWDNHQE\WKH3DUHQWDQG VXEVLGLDULHV7KHGHWDLOVRIVHFXULW\SURYLGHGE\WKH*URXSLQYDULRXVFRXQWULHVDUHDVIROORZV (`Millions) Entity Relation Outstanding loan amount As of As of Security Detail March 31, March 31, 2016 2015 Bharti Airtel Ltd Parent 20 19 Hypothecation of vehicles L 'HHGRI +\SRWKHFDWLRQ E\ ZD\ RI ǟ[HG FKDUJHFUHDWLQJDǟUVWUDQNLQJSDULSDVVX ǟ[HG FKDUJH RYHU OLVWHG PDFKLQHU\ DQG equipment of the company, favouring the %DQN  ),,V LQYHVWRUV DQG WKH 2NjVKRUH 6HFXULW\ $JHQW DQG ǟOHG ZLWK WKH 5HJLVWUDURI-RLQW6WRFN&RPSDQLHV7KLUG 0RGLǟFDWLRQWR'HHGRI+\SRWKHFDWLRQIRU EKN-1, EKN-2, SCB Mauritius & HDFC Loan IDFLOLWLHV LL 'HHGRI+\SRWKHFDWLRQE\ZD\RIǠRDWLQJ FKDUJHFUHDWLQJDǟUVWUDQNLQJSDULSDVVX ǠRDWLQJ FKDUJH RYHU SODQW PDFKLQHU\ and equipment, both present and future, excluding machinery and equipment covered under the foregoing Deed of +\SRWKHFDWLRQE\ZD\RIǟ[HGFKDUJHDQG D ǟUVWUDQNLQJ SDUL SDVVX ǠRDWLQJ FKDUJH over all current assets of the company, both present and future, including but not limited to stock, book debts, receivables and accounts of the company, entered into or to be entered into by the company, favouring the Bank / FIIs Facility Investors DQG2NjVKRUH6HFXULW\$JHQWDQGǟOHGZLWK Airtel Bangladesh Ltd Subsidiary 26,351 21,744 the Registrar of Joint Stock Companies for EKN-1, EKN-2, SCB Mauritius & HDFC loan IDFLOLW\ (iii) Corporate Guarantee by BAHSPL %KDUWL $LUWHO +ROGLQJV 3WH /WG  WR $LUWHO Bangladesh Limited for EKN-1, EKN-  +')&  6&% 0DXULWLXV ORDQ IDFLOLW\ Counter Guarantee to BAHSPL by BAL (Bharti Airtel Limited) for EKN-1, EKN-2, +')&ORDQIDFLOLW\ (iv) Register Hypothecations of all present and future book debts, receivables, monies, and movable property of the Borrower consisting of raw materials, VWRFNVLQYHQWRU\ZRUNLQSURJUHVVǟQLVKHG goods and insurance proceeds thereof, of Airtel Bangladesh on Pari Passu basis with other Lenders, under a Letter of Hypothecation dated February 8, 2012 DQG LWV VXEVHTXHQW PRGLǟFDWLRQV WR WKH hypothecation executed in favor of the H[LVWLQJOHQGHUVDQGǟOHGZLWKWKH5HJLVWUDU RI -RLQW 6WRFN &RPSDQLHV )RU 6KRUW Term Working Capital Lenders (STL & OD) H[FHSW&LWLEDQN1$ 

256 Annual Report 2015-16 126-355 Bharti Airtel Limited 02-39 | Corporate Overview 40-125 | Statutory Reports Financial Statements

NotesWRFRQVROLGDWHGnjQDQFLDOVWDWHPHQWV

(`Millions) Entity Relation Outstanding loan amount As of As of Security Detail March 31, March 31, 2016 2015 L  3OHGJHRI DOO ǟ[HG DQG ǠRDWLQJ DVVHWV  %KDUWL$LUWHO$IULFD%9 Subsidiary 18,062 59,349 Kenya, Nigeria, Tanzania, Uganda, DRC, and its subsidiaries Ghana LL 3OHGJHRQVSHFLǟFǟ[HGDVVHWV&KDG L DǟUVWFKDUJHE\ZD\RIK\SRWKHFDWLRQRI WKH -9 &RPSDQ\šV HQWLUH PRYDEOH DVVHWV plant and machinery, including tower, related equipment and spares, tools and DFFHVVRULHV IXUQLWXUH ǟ[WXUHV YHKLFOHV and all other movable assets, present and future; LL D FKDUJH RQ -9 &RPSDQ\šV FDVK ǠRZV receivables, book debts, revenues of whatsoever nature and wherever arising, Indus Towers Limited Joint present and future subject only to prior 16,552 23,840 (42% share) 9HQWXUH charge in favour of working capital lenders with working capital facility limits not exceeding ` 10,000 Mn (amount LQ DEVROXWH ǟJXUHV  LQFOXGLQJ IXQGHG facilities; and LLL DǟUVWFKDUJHRYHUWKHDPRXQWLQWKH'HEW Service Account opened and maintained E\ WKH -9 &RPSDQ\ LQ DFFRUGDQFH with the terms of this Agreement and the Debt Service Account Agreement;

Total 60,985 104,952

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Consolidated Financial Statements (IGAAP) 257 Transformational Network

NotesWRFRQVROLGDWHGnjQDQFLDOVWDWHPHQWV

47. Interest in Joint Venture  7KH*URXSšVVKDUHRIWKHDVVHWVOLDELOLWLHVLQFRPHDQGH[SHQVHRIWKHMRLQWYHQWXUHZKLFKKDVEHHQSURSRUWLRQDWHO\ FRQVROLGDWHGLQWKHFRQVROLGDWHGnjQDQFLDOVWDWHPHQWVEHIRUHHOLPLQDWLRQRIWUDQVDFWLRQVEHWZHHQWKHJURXSDQGWKHMRLQW YHQWXUHDUHDVIROORZV (` Millions) As of March As of March Particulars 31, 2016 31, 2015 Balance Sheet Current assets 8,887 8,933 Non-current assets 99,572 101,440 Current liabilities 27,263 22,396 Non-current liabilities 32,343 36,693 Equity 48,853 51,284

(` Millions) For the year ended For the year ended Particulars March 31, 2016 March 31, 2015 6WDWHPHQWRI3URǂWDQG/RVV Revenue 67,245 62,915 Other Income 1,095 1,676 (PSOR\HHEHQHǟWH[SHQVHV 1,766 1,583 Other expenses 37,001 35,207 Finance costs 2,193 2,968 Depreciation 10,994 10,632 3URǂWEHIRUHWD[ 16,386 14,201 Tax Expense 5,777 5,109 3URǂWIRUWKH\HDU 10,609 9,092

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258 Annual Report 2015-16 126-355 Bharti Airtel Limited 02-39 | Corporate Overview 40-125 | Statutory Reports Financial Statements

NotesWRFRQVROLGDWHGnjQDQFLDOVWDWHPHQWV

49. Additional information, as required under Schedule III to the Companies Act, 2013 of enterprises consiolidated as Subsidiaries, Associates and Joint ventures. (` Millions) S. Name of the entity 2016 2015 No. Net Assets, i.e., total assets 6KDUHLQSURǂWRUORVV Net Assets, i.e., total assets 6KDUHLQSURǂWRUORVV minus total liabilities minus total liabilities As % of Amount As % of Amount As % of Amount As % of Amount consolidated consolidated consolidated consolidated net assets SURǂWRUORVV net assets SURǂWRUORVV

Parent 1 Bharti Airtel Limited 200% 844,468 169% 75,465 197% 782,729 286% 132,005 Subsidiariesb Indian 1 Airtel Broadband Services - - 0% (6) 14% 55,953 (1%) (234) Private Limited (formerly known as Wireless Business Services Private Limited) 2 Airtel M Commerce Services 1% 2,369 (1%) (346) 0% 671 0% 45 Limited 3 Bharti Airtel Services Limited 0% (1,008) 0% (65) 0% (943) 0% (88) 4 Bharti Hexacom Limited 15% 62,564 23% 10,277 13% 52,288 23% 10,793 5 Bharti Infratel Limited 32% 134,635 30% 13,233 30% 119,030 24% 10,978 6 Bharti Infratel Services Limited - - 0% (0) 0% 0 0% (0) 7 Bharti Telemedia Limited (8%) (34,116) 3% 1,278 (9%) (35,393) (4%) (1,907) 8 Indo Teleports Limited 0% (359) 0% (78) - - - - (formerly known as Bharti Teleports Limited) 9 Nxtra Data Limited 0% (17) 0% 14 0% (31) 0% (78) 10 Smartx Services Limited 0% 30 0% 0 - - - - 11 Telesonic Networks Limited 0% 116 1% 323 0% (207) 0% 219 12 Wynk Limited 0% 16 0% 16 0% 1 0% - Foreign 1 $IULFD7RZHUV19 0% (355) (1%) (284) 0% (70) 0% (69) 2 Africa Towers Services Limited 0% (0) 0% 35 0% (34) 0% (43) 3 Airtel (Seychelles) Limited 0% (799) (1%) (243) 0% (529) 0% (164) 4 Airtel (SL) Limited (1%) (4,618) 1% 240 (1%) (4,233) (1%) (293) 5 Airtel Bangladesh Limited (5%) (21,090) (16%) (7,269) (3%) (12,979) (14%) (6,590) 6 $LUWHO%XUNLQD)DVR6$ (1%) (2,739) 1% 245 0% (1,598) (1%) (595) 7 $LUWHO&RQJR 5'& 6$ (16%) (69,368) (36%) (16,153) (13%) (50,573) (36%) (16,825) (formerly Celtel Congo RDC 6DUO 8 $LUWHO&RQJR6$ (6%) (23,389) (8%) (3,701) (4%) (16,661) (18%) (8,228) 9 Airtel DTH Services (SL) 0% - 0% - 0% - 0% - Limited (in liquidation) 10 Airtel DTH Services Congo 0% - 0% - 0% - 0% - 5'& 6SUO ,QOLTXLGDWLRQ 11 Airtel DTH Services Nigeria 0% - 0% - 0% - 0% - Limited (In liquidation) 12 Airtel DTH Services Tanzania 0% - 0% - 0% - 0% - Limited (Liquidated on April 4, 2014) 13 $LUWHO*DERQ6$ (4%) (18,635) (16%) (6,999) (3%) (10,595) (13%) (6,083) 14 Airtel Ghana Limited (7%) (29,726) 1% 472 (7%) (28,770) (28%) (12,775) 15 $LUWHO0DGDJDVFDU6$ (2%) (7,735) (7%) (3,206) (1%) (4,747) (3%) (1,295) 16 Airtel Malawi Limited 0% (1,699) (3%) (1,266) 0% (1,084) 2% 735 17 Airtel Mobile Commerce 0% 1 0% - 0% 1 0% - (Ghana) Limited 18 Airtel Mobile Commerce 0% 0 0% - 0% 0 0% - (Kenya) Limited 19 Airtel Mobile Commerce 0% - 0% - 0% - 0% - (Seychelles) Limited

Consolidated Financial Statements (IGAAP) 259 Transformational Network

NotesWRFRQVROLGDWHGnjQDQFLDOVWDWHPHQWV

(` Millions) S. Name of the entity 2016 2015 No. Net Assets, i.e., total assets 6KDUHLQSURǂWRUORVV Net Assets, i.e., total assets 6KDUHLQSURǂWRUORVV minus total liabilities minus total liabilities As % of Amount As % of Amount As % of Amount As % of Amount consolidated consolidated consolidated consolidated net assets SURǂWRUORVV net assets SURǂWRUORVV

20 Airtel Mobile Commerce (SL) 0% 0 0% - 0% 0 0% - Limited 21 Airtel Mobile Commerce 0% 0 0% - 0% 0 0% - (Tanzania) Limited 22 $LUWHO0RELOH&RPPHUFH%9 0% (25) 0% (8) 0% (16) 0% (7) 23 Airtel Mobile Commerce 0% 161 0% 177 0% (138) 0% (3) %XUNLQD)DVR6$ 24 Airtel Mobile Commerce 0% 1 0% (0) 0% 1 0% - +ROGLQJV%9 25 Airtel Mobile Commerce 0% (373) 0% (132) 0% (393) 0% (181) Limited 26 Airtel Mobile Commerce 0% (408) 0% (113) 0% (303) 0% (118) 0DGDJDVFDU6$ 27 Airtel Mobile Commerce 0% 1 0% - 0% 1 0% - Rwanda Limited 28 Airtel Mobile Commerce 0% 0 0% - 0% 0 0% - 7FKDG6DUO 29 Airtel Mobile Commerce 0% 0 0% - 0% 0 0% - Uganda Limited 30 Airtel Mobile Commerce 0% (441) 0% (133) 0% (425) 0% (138) Zambia Limited (formerly ZMP Limited) 31 $LUWHO0RQH\ 5'& 6SUO 0% (1,588) (1%) (486) 0% (1,045) (2%) (880) 32 $LUWHO0RQH\1LJHU6$ 0% - 0% - 0% 1 0% - 33 $LUWHO0RQH\6$ *DERQ 0% (363) 0% (42) 0% (284) 0% (124) 34 Airtel Money Transfer Limited 0% - 0% - 0% - 0% - 35 Airtel Networks Kenya Limited (6%) (25,083) 7% 2,996 (7%) (29,732) (15%) (7,005) 36 Airtel Networks Limited (12%) (52,282) 44% 19,504 (17%) (65,774) (37%) (17,116) 37 Airtel Networks Zambia Plc (1%) (2,421) 2% 820 (1%) (3,028) (3%) (1,334) 38 Airtel Rwanda Limited (2%) (9,575) (7%) (3,034) (2%) (6,786) (5%) (2,332) 39 Airtel Tanzania Limited (7%) (30,365) (30%) (13,497) (6%) (23,240) (25%) (11,541) 40 $LUWHO7FKDG6$ (3%) (11,992) (7%) (3,052) (2%) (7,895) (7%) (3,157) 41 Airtel Towers (Ghana) Limited 0% (15) 0% 32 0% (45) 0% (8) 42 Airtel Towers (SL) Company 0% (16) 0% 27 0% (36) 0% 10 Limited 43 Airtel Uganda Limited (2%) (8,534) 4% 1,727 (3%) (10,413) (7%) (3,030) 44 Bangladesh Infratel Networks (0) (0) 0 0 (0) (0) (0) (0) Limited 45 Bharit Airtel (Canada) Limited 0% - 0% 28 0% (27) 0% (3) 46 Bharti Airtel (France) SAS 0% 254 0% 196 0% 47 0% 25 47 Bharti Airtel (Hongkong) 0% (181) 0% 138 0% (301) 0% (18) Limited 48 Bharti Airtel (Japan) Kabushiki 0% (6) 0% (17) 0% 11 0% 16 Kaisha 49 Bharti Airtel (UK) Limited 0% 545 0% (111) 0% 634 1% 338 50 Bharti Airtel (USA) Limited 0% 406 1% 587 0% (177) 0% 50 51 Bharti Airtel Acquisition 0% - 0% - 0% - 0% - +ROGLQJV%9 /LTXLGDWHGRQ March 31, 2015) 52 %KDUWL$LUWHO$IULFD%9 18% 77,253 7% 3,061 18% 70,112 8% 3,546 53 Bharti Airtel Burkina Faso 2% 9,152 2% 1,077 2% 7,637 5% 2,453 +ROGLQJV%9 54 %KDUWL$LUWHO&DPHURRQ%9 0% - 0% - 0% - 0% - (Liquidated on March 31, 2015)

260 Annual Report 2015-16 126-355 Bharti Airtel Limited 02-39 | Corporate Overview 40-125 | Statutory Reports Financial Statements

NotesWRFRQVROLGDWHGnjQDQFLDOVWDWHPHQWV

(` Millions) S. Name of the entity 2016 2015 No. Net Assets, i.e., total assets 6KDUHLQSURǂWRUORVV Net Assets, i.e., total assets 6KDUHLQSURǂWRUORVV minus total liabilities minus total liabilities As % of Amount As % of Amount As % of Amount As % of Amount consolidated consolidated consolidated consolidated net assets SURǂWRUORVV net assets SURǂWRUORVV

55 Bharti Airtel Chad Holdings 0% 361 0% 44 0% 300 0% 5 %9 56 Bharti Airtel Congo Holdings 1% 6,078 1% 298 1% 5,463 0% (44) %9 57 Bharti Airtel Developers 0% - 0% - 0% - 0% - Forum Limited 58 %KDUWL$LUWHO'7++ROGLQJV%9 0% 1 0% (0) 0% 1 0% (1) 59 Bharti Airtel Gabon Holdings 2% 8,509 1% 250 2% 7,804 10% 4,400 %9 60 Bharti Airtel Ghana Holdings (1%) (5,801) (3%) (1,251) (1%) (4,308) (2%) (1,060) %9 61 Bharti Airtel Holdings 3% 14,547 0% 12 4% 14,831 (1%) (396) (Singapore) Pte Ltd 62 Bharti Airtel International 49% 207,752 0% (2) 25% 97,600 0% (2) (Mauritius) Limited 63 Bharti Airtel International 74% 313,972 (38%) (16,918) 58% 229,206 131% 60,528 1HWKHUODQGV %9 64 %KDUWL$LUWHO.HQ\D%9 (1%) (5,278) (3%) (1,130) (1%) (3,928) (2%) (1,002) 65 Bharti Airtel Kenya Holdings (1%) (2,549) 0% (106) (1%) (2,308) 0% (58) %9 66 Bharti Airtel Lanka (Private) (1%) (4,257) (6%) (2,746) (1%) (2,148) (5%) (2,106) Limited 67 Bharti Airtel Madagascar 0% (904) 0% (197) 0% (670) 0% (174) +ROGLQJV%9 68 Bharti Airtel Malawi Holdings 0% 342 0% (22) 0% 344 0% 66 %9 69 %KDUWL$LUWHO0DOL+ROGLQJV%9 0% 237 0% - 0% 224 0% - 70 Bharti Airtel Niger Holdings 2% 10,498 3% 1,387 2% 8,618 5% 2,120 %9 71 %KDUWL$LUWHO1LJHULD%9 (8%) (33,021) (7%) (3,119) (7%) (28,272) (9%) (4,111) 72 Bharti Airtel Nigeria Holdings 0% - 0% - 0% - 0% - %9 ,QOLTXLGDWLRQ 73 Bharti Airtel Nigeria Holdings 0% (118) 0% - 0% (112) 0% - ,,%9 74 %KDUWL$LUWHO5'&+ROGLQJV%9 1% 2,943 3% 1,277 0% 1,584 2% 897 75 Bharti Airtel Rwanda Holdings 0% 194 0% (3) 0% 186 0% (5) Limited (formerly Zebrano 0DXULWLXV /LPLWHG 76 %KDUWL$LUWHO6HUYLFHV%9 0% (344) 0% (59) 0% (270) 0% (46) 77 Bharti Airtel Sierra Leone 0% 199 0% 137 0% 60 0% 125 +ROGLQJV%9 78 %KDUWL$LUWHO7DQ]DQLD%9 0% (1,498) 1% 432 0% (1,820) 0% 195 79 Bharti Airtel Uganda Holdings (1%) (5,750) (1%) (516) (1%) (4,949) (1%) (644) %9 80 Bharti Airtel Zambia Holdings 7% 29,063 2% 999 7% 26,519 12% 5,734 %9 81 Bharti DTH Services Zambia 0% - 0% - 0% - 0% - Limited (Dissolved on November 21, 2014) 82 Bharti International 20% 84,513 1% 450 13% 52,924 0% 27 (Singapore) Pte Ltd 83 %XUNLQD)DVR7RZHUV6$ 0% - 0% 39 0% (35) 0% (0) 84 Celtel (Mauritius) Holdings 1% 2,194 1% 342 0% 1,752 1% 270 Limited

Consolidated Financial Statements (IGAAP) 261 Transformational Network

NotesWRFRQVROLGDWHGnjQDQFLDOVWDWHPHQWV

(` Millions) S. Name of the entity 2016 2015 No. Net Assets, i.e., total assets 6KDUHLQSURǂWRUORVV Net Assets, i.e., total assets 6KDUHLQSURǂWRUORVV minus total liabilities minus total liabilities As % of Amount As % of Amount As % of Amount As % of Amount consolidated consolidated consolidated consolidated net assets SURǂWRUORVV net assets SURǂWRUORVV

85 Celtel Acquisition Holding - - -- 0% 0% 0% (0) %9 /LTXLGDWHGRQ0DUFK 2015) 86 &HOWHO1LJHU6$ (1%) (3,569) (5%) (2,205) 0% (144) -3% (1,216) 87 Channel Sea Management 0% 38 0% (2) 0% 39 0% (2) Company Mauritius Limited 88 &RQJR5'&7RZHUV6SUO 0% (728) 0% (159) 0% (538) 0% 1 89 &RQJR7RZHUV6$ 0% - 0% 45 0% (41) 0% (1) 90 *DERQ7RZHUV6$ 0% (2) 0% 35 0% (33) 0% 3 91 Indian Ocean Telecom Limited 0% 968 0% (2) 0% 917 0% (0) 92 Kenya Towers Limited 0% - (2%) (955) 0% 376 0% (33) 93 0DGDJDVFDU7RZHUV6$ 0% 324 (1%) (298) 0% 627 0% (73) 94 Malawi Towers Limited 0% (1,495) (4%) (1,689) 0% (226) 0% (124) 95 0RELOH&RPPHUFH&RQJR6$ 0% 1 0% - 0% 1 0% - 96 Montana International 0% (11) 0% (1) 0% (9) 0% (1) 97 MSI-Celtel Nigeria Limited (In 0% - 0% - 0% - 0% - liquidation) 98 1HWZRUNLL/LPLWHG 6% 24,326 9% 3,913 5% 19,245 8% 3,596 99 1LJHU7RZHUV6$ 0% - 0% 37 0% (34) 0% 1 100 Partnership Investment Sprl 0% - 0% - 0% - 0% - 101 Rwanda Towers Limited (Sold 0% - 0% - 0% - 0% 154 during March 2015) 102 Société Malgache de 0% 153 0% (2) 0% 146 0% (2) 7«O«SKRQH&HOOXODLUH6$ 103 Tanzania Towers Limited 0% (30) 0% 24 0% (61) 0% (16) 104 7FKDG7RZHUV6$ 0% (83) 0% 44 0% (113) 0% (41) 105 Towers Support Nigeria 0% (1) 0% 33 0% (32) 0% 0 Limited 106 Uganda Towers Limited 0% - (1%) (271) 0% (838) (2%) (863) 107 :DULG&RQJR6$ 6XEVLGLDU\ 0% - 0% - 0% 1,253 (1%) (442) ZHI0DUFK 108 Warid Telecom Uganda 0% - 0% - 0% - 0% - Limited 109 Zambian Towers Limited 0% - (6%) (2,566) 0% (224) 0% (102) 110 Zap Trust Company Nigeria 0% - 0% - 0% - 0% - Limited Minority Interests in all (18%) (74,465) (22%) (9,739) (17%) (68,906) (9%) (4,270) VXEVLGLDULHVb $VVRFLDWHV ,QYHVWPHQWbDV per the equity method) - Indian 1 Indo Teleports Limited -- -- 0% - 0% - (formerly known as Bharti Teleports Limited) - Foreign 1 Tanzania Telecommunications 0% - 0% - 0% - 0% - Company Ltd (TTCL) 2 Seychelles Cable Systems 0% - 0% - 0% - 0% (53) Company Limited Joint Ventures (as per SURSRUWLRQDWHFRQVROLGDWLRQb method) - Indian 1 Indus Towers Limited 12% 48,815 24% 10,586 13% 51,171 19% 8,946

262 Annual Report 2015-16 126-355 Bharti Airtel Limited 02-39 | Corporate Overview 40-125 | Statutory Reports Financial Statements

NotesWRFRQVROLGDWHGnjQDQFLDOVWDWHPHQWV

(` Millions) S. Name of the entity 2016 2015 No. Net Assets, i.e., total assets 6KDUHLQSURǂWRUORVV Net Assets, i.e., total assets 6KDUHLQSURǂWRUORVV minus total liabilities minus total liabilities As % of Amount As % of Amount As % of Amount As % of Amount consolidated consolidated consolidated consolidated net assets SURǂWRUORVV net assets SURǂWRUORVV

2 FireFly Networks Limited 0% (1) 0% 1 0% (2) 0% (12) 3 Forum I Aviation Limited - - 0% 12 0% 83 0% 6 - Foreign 3 Bridge Mobile Pte Limited 0% 43 0% 10 0% 30 0% 8 Inter Company Elimination/ (965,841) (3,608) (774,128) (82,923) Adjustments on consolidation Net Assets - Consolidated 100% 422,976 100% 44,566 100% 397,770 100% 46,208 ,QFOXGHV$LUWHO&RQJR%:DULGZKLFKLVPHUJHGGXULQJWKH\HDU

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(` in Millions) Acquisitions Disposals Particulars March 2016 March 2016 March 2015 Balance Sheet Equity (359) 1,986 (680) Non-current liabilities 440 1,151 1,105 Current liabilities 321 6,524 9,615 Total 402 9,661 10,040 ASSETS Non-current assets 157 8,982 9,286 Current assets 245 678 753 Total 402 9,660 10,039 Income Revenue from operations 285 2,222 6,097 Other income 1 - - 286 2,222 6,097 Expenses (PSOR\HHEHQHǟWVH[SHQVHV 9 46 105 Other expenses 276 2,638 3,879 Finance costs 50 1,826 746 Depreciation & amortisation 29 738 2,307 364 5,248 7,037 3URǂWEHIRUH7D[ (78) (3,026) (940)

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Consolidated Financial Statements (IGAAP) 263 Consolidated Financial Statements (IFRS)

Page Page Particulars Particulars Nos. Nos. Independent Auditor’s Report 265 19. Other Financial Assets 309 Consolidated Income Statement 266 20 2WKHU1RQǟQDQFLDO$VVHWV1RQFXUUHQW 310 Consolidated Statement of Comprehensive Income 266 21. Inventories 310 Consolidated Statement of Financial Position 267 22. Trade and Other Receivables 310 Consolidated Statement of Changes in Equity 268 23. Prepayments and Other Assets 311 Consolidated Statement of Cash Flows 269 24. Other Investments 311 Notes to Consolidated Financial Statements 25. Cash and Cash Equivalents 312 1. Corporate Information 270 26. Borrowings 313 2. Basis of Preparation 270 27. Deferred Payment Liability 317 3. 6XPPDU\RI6LJQLǟFDQW$FFRXQWLQJ3ROLFLHV 270 28. Provisions 317 4. 6LJQLǟFDQW$FFRXQWLQJ-XGJHPHQWV(VWLPDWHV 282 and Assumptions 29. 2WKHU)LQDQFLDO/LDELOLWLHV1RQFXUUHQW 318 5. 6WDQGDUGV,VVXHG%XW1RW\HW(NjHFWLYHXSWR 284 30. Other Non-Financial Liabilities 318 the Date of Issuance of the Group’s Financial Statements 31. Trade and Other Payables 319 6. Segment Reporting 286 32. Equity 319 7. Business Combination / Disposal of 291 33. (PSOR\HH%HQHǟWV 322 Subsidiary / Other Acquisitions / Transaction 34. )DLU9DOXHRI)LQDQFLDO$VVHWVDQG/LDELOLWLHV 325 with Non-controlling Interest 35. Related Party Transactions 331 8. Operating Expenses 291 9. Other Expenses 297 36. Lease Disclosure 332 10. Depreciation and Amortisation 297 37. Commitments and Contingencies 334 11. Finance Income and Costs 298 38. Earnings Per Share 339 12. Exceptional Items 298 39. Financial Risk Management Objectives and 339 13. Income Taxes 299 Policies 14. 3URSHUW\3ODQWDQG(TXLSPHQW 303 40. New Developments 343 15. Intangible Assets 304 41. &RPSDQLHVLQWKH*URXS-RLQW9HQWXUHVDQG 344 Associates 16. Impairment Reviews 305 42. 2WKHU6LJQLǟFDQW0DWWHUV 350 17. ,QYHVWPHQWLQ$VVRFLDWHV-RLQW9HQWXUHVDQG 306 Subsidiaries 43. Non-current Assets held for sale 350 18. Derivative Financial Instruments 309 44. 5HJURXSLQJ5HFODVVLǟFDWLRQ 351 126-355 Bharti Airtel Limited 02-39 | Corporate Overview 40-125 | Statutory Reports Financial Statements

Independent Auditor’s Report

To the Board of Directors of Bharti Airtel Limited SROLFLHV XVHG DQG WKH UHDVRQDEOHQHVV RI WKH DFFRXQWLQJ HVWLPDWHVPDGHE\PDQDJHPHQWDVZHOODVHYDOXDWLQJWKH :HKDYHDXGLWHGWKHDFFRPSDQ\LQJFRQVROLGDWHGnjQDQFLDO RYHUDOOSUHVHQWDWLRQRIWKHnjQDQFLDOVWDWHPHQWV:HEHOLHYH VWDWHPHQWV ŠnjQDQFLDO VWDWHPHQWVš  RI %KDUWL $LUWHO /LPLWHG WKDWWKHDXGLWHYLGHQFHZHKDYHREWDLQHGLVVXǎFLHQWDQG ţWKH&RPSDQ\Ť DQGLWVVXEVLGLDULHV WRJHWKHUUHIHUUHGWR DSSURSULDWHWRSURYLGHDEDVLVIRURXUDXGLWRSLQLRQ DVţWKH*URXSŤ FRPSULVLQJRIWKHFRQVROLGDWHGVWDWHPHQW RI njQDQFLDO SRVLWLRQ DV DW 0DUFK  DQG WKH UHODWHG Opinion consolidated income statement and consolidated statement ,Q RXU RSLQLRQ DQG WR WKH EHVW RI RXU LQIRUPDWLRQ DQG RI FRPSUHKHQVLYH LQFRPH FRQVROLGDWHG VWDWHPHQW RI according to the explanations given to us and based on FKDQJHV LQ HTXLW\ DQG FRQVROLGDWHG VWDWHPHQW RI FDVK WKHFRQVLGHUDWLRQRIWKHUHSRUWRIWKHRWKHUDXGLWRUVRQWKH ǍRZVIRUWKH\HDUWKHQHQGHGDQGDVXPPDU\RIVLJQLnjFDQW njQDQFLDO VWDWHPHQWV RI WKH MRLQW YHQWXUH RI WKH &RPSDQ\ accounting policies and other explanatory notes. DV QRWHG EHORZ WKHVH njQDQFLDO VWDWHPHQWV SUHVHQW IDLUO\ Management’s Responsibility for the Financial LQ DOO PDWHULDO DVSHFWV WKH njQDQFLDO SRVLWLRQ RI WKH *URXS Statements DV DW 0DUFK   DQG LWV njQDQFLDO SHUIRUPDQFH DQG FDVK ǍRZV IRU WKH \HDU WKHQ HQGHG LQ DFFRUGDQFH ZLWK 0DQDJHPHQW LV UHVSRQVLEOH IRU WKH SUHSDUDWLRQ RI WKHVH International Financial Reporting Standards. njQDQFLDO VWDWHPHQWV LQ DFFRUGDQFH ZLWK WKH UHTXLUHPHQWV RI ,QWHUQDWLRQDO )LQDQFLDO 5HSRUWLQJ 6WDQGDUGV 7KLV Emphasis of Matter responsibility includes the design, implementation, and :H GUDZ DWWHQWLRQ WR 1RWH  LL I YL  WR WKH njQDQFLDO PDLQWHQDQFHRILQWHUQDOFRQWUROUHOHYDQWWRWKHSUHSDUDWLRQ VWDWHPHQWV ZKLFK GHVFULEHV WKH XQFHUWDLQWLHV UHODWHG WR RI WKH njQDQFLDO VWDWHPHQWV WKDW DUH IUHH IURP PDWHULDO WKH OHJDO RXWFRPH RI 'HSDUWPHQW RI 7HOHFRPPXQLFDWLRQVš PLVVWDWHPHQWZKHWKHUGXHWRIUDXGRUHUURU GHPDQG ZLWK UHVSHFW WR 2QH 7LPH 6SHFWUXP &KDUJH 2XU Auditor’s Responsibility RSLQLRQLVQRWTXDOLnjHGLQUHVSHFWRIWKLVPDWWHU 2XUUHVSRQVLELOLW\LVWRH[SUHVVDQRSLQLRQRQWKHVHnjQDQFLDO Other Matters statements based on our audit. We conducted our audit in :HGLGQRWDXGLWWKHnjQDQFLDOVWDWHPHQWVRIWKHMRLQWYHQWXUH DFFRUGDQFH ZLWK WKH 6WDQGDUGV RQ $XGLWLQJ LVVXHG E\ WKH LQFOXGHGKHUHLQZLWKWKH&RPSDQ\šVVKDUHRISURnjWLQMRLQW ,QVWLWXWHRI&KDUWHUHG$FFRXQWDQWVRI,QGLD7KRVH6WDQGDUGV YHQWXUHRI`0QIRUWKH\HDUHQGHG0DUFK UHTXLUHWKDWZHFRPSO\ZLWKHWKLFDOUHTXLUHPHQWVDQGSODQ 7KHVHnjQDQFLDOVWDWHPHQWVDQGRWKHUnjQDQFLDOLQIRUPDWLRQ DQGSHUIRUPWKHDXGLWWRREWDLQUHDVRQDEOHDVVXUDQFHDERXW KDYHEHHQDXGLWHGE\RWKHUDXGLWRUVZKRVHUHSRUWKDVEHHQ ZKHWKHU WKH njQDQFLDO VWDWHPHQWV DUH IUHH IURP PDWHULDO IXUQLVKHGWRXVE\WKHPDQDJHPHQW2XURSLQLRQLQVRIDUDV misstatement. LWUHODWHVWRWKHDNjDLUVRIVXFKMRLQWYHQWXUHLVEDVHGVROHO\ $Q DXGLW LQYROYHV SHUIRUPLQJ SURFHGXUHV WR REWDLQ DXGLW RQWKHUHSRUWRIRWKHUDXGLWRUV2XURSLQLRQLVQRWTXDOLnjHGLQ evidence about the amounts and disclosures in the UHVSHFWRIWKLVPDWWHU njQDQFLDO VWDWHPHQWV 7KH SURFHGXUHV VHOHFWHG GHSHQG on the auditor’s judgement, including the assessment RI WKH ULVNV RI PDWHULDO PLVVWDWHPHQW V  RI WKH njQDQFLDO For S.R. Batliboi & Associates LLP VWDWHPHQWVZKHWKHUGXHWRIUDXGRUHUURU,QPDNLQJWKRVH Chartered Accountants ULVN DVVHVVPHQWV WKH DXGLWRU FRQVLGHUV LQWHUQDO FRQWURO ICAI Firm Registration Number: 101049W UHOHYDQWWRWKH&RPSDQ\šVSUHSDUDWLRQDQGIDLUSUHVHQWDWLRQ per Nilangshu Katriar RIWKHFRQVROLGDWHGnjQDQFLDOVWDWHPHQWVLQRUGHUWRGHVLJQ Partner audit procedures that are appropriate in the circumstances, 0HPEHUVKLS1XPEHU EXW QRW IRU WKH SXUSRVH RI H[SUHVVLQJ DQ RSLQLRQ RQ WKH HNjHFWLYHQHVV RI WKH &RPSDQ\šV LQWHUQDO FRQWURO $Q DXGLW 3ODFH*XUJDRQ DOVRLQFOXGHVHYDOXDWLQJWKHDSSURSULDWHQHVVRIDFFRXQWLQJ 'DWH$SULO

Independent Auditor’s Report 265 Transformational Network

Consolidated Income Statement

(`0LOOLRQVH[FHSWSHUVKDUHGDWD  Year ended Year ended Particulars Notes March 31, 2016 March 31, 2015 Revenue 6   Other operating income 871 957 Operating expenses 8     340,933 313,883 Depreciation and amortisation 10     3URǂWIURPRSHUDWLQJDFWLYLWLHVEHIRUHH[FHSWLRQDOLWHPV 166,435 158,572 Share of results of joint ventures and associates 17   3URǂWEHIRUHǂQDQFHLQFRPHǂQDQFHFRVWVRWKHUH[SHQVHV 176,089 165,795 exceptional items and tax Finance income 11   Finance costs 11     Other expenses 9     ([FHSWLRQDOLWHPVQHW 12    3URǂWEHIRUHWD[ 120,705 107,130 Income tax expense (including exceptional items) 13     3URǂWIRUWKH\HDU 61,337 53,083 Attributable to : Equity holders of the Parent   Non-controlling interests (including exceptional items)   3URǂWIRUWKH\HDU 61,337 53,083 Earnings per share (In `) 38 %DVLFSURǟWDWWULEXWDEOHWRHTXLW\KROGHUVRIWKH3DUHQW 13.72 12.97 'LOXWHGSURǟWDWWULEXWDEOHWRHTXLW\KROGHUVRIWKH3DUHQW 13.72 12.97 7KHDFFRPSDQ\LQJQRWHVIRUPDQLQWHJUDOSDUWRIWKHVHFRQVROLGDWHGnjQDQFLDOVWDWHPHQWV &RQVROLGDWHG6WDWHPHQWRI&RPSUHKHQVLYH,QFRPH (` Millions) Year ended Year ended Particulars March 31, 2016 March 31, 2015 3URǂWIRUWKH\HDU 61,337 53,083 Other comprehensive income : ,WHPVWKDWPD\EHUHFODVVLǟHGVXEVHTXHQWO\WRSURǟWRUORVV ([FKDQJHGLNjHUHQFHVRQWUDQVODWLRQRIIRUHLJQRSHUDWLRQV     ,QFRPHWD[HNjHFW - - Gains / (Losses) on hedge of net investments    ,QFRPHWD[HNjHFW 506 - *DLQV /RVVHV RQFDVKǠRZKHGJH    ,QFRPHWD[HNjHFW - - Change in value of available-for-sale investments 9 - ,QFRPHWD[HNjHFW (3) - (7,002) (41,611) ,WHPVWKDWZLOOQRWEHUHFODVVLǟHGWRSURǟWRUORVV 5HPHDVXUHPHQWJDLQV ORVVHV RQGHǟQHGEHQHǟWSODQV (129) 75 ,QFRPHWD[HNjHFW 23 (18) (106) 57 Other comprehensive loss for the year, net of tax (7,108) (41,554) Total comprehensive income for the year, net of tax 54,229 11,529 Attributable to : Equity holders of the Parent   Non-controlling interests (including exceptional items)  (919) Total comprehensive income 54,229 11,529 7KHDFFRPSDQ\LQJQRWHVIRUPDQLQWHJUDOSDUWRIWKHVHFRQVROLGDWHGnjQDQFLDOVWDWHPHQWV

For S. R. Batliboi & Associates LLP For and on behalf of the Board of Directors of Bharti Airtel Limited Chartered Accountants ICAI Firm Registration No: 101049W per Nilangshu Katriar Sunil Bharti Mittal Gopal Vittal Partner Chairman Managing Director 0HPEHUVKLS1R & CEO (India & South Asia)

3ODFH*XUJDRQ Rajendra Chopra Nilanjan Roy 'DWH$SULO Company Secretary *OREDO&KLHI)LQDQFLDO2njFHU

266 Annual Report 2015-16 126-355 Bharti Airtel Limited 02-39 | Corporate Overview 40-125 | Statutory Reports Financial Statements

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(` Millions) As of As of Particulars Notes March 31, 2016 March 31, 2015 Assets Non-current assets 3URSHUW\SODQWDQGHTXLSPHQW 14   Intangible assets 15   Investment in joint ventures and associates 17   Other investments 24   'HULYDWLYHǟQDQFLDODVVHWV 18   2WKHUǟQDQFLDODVVHWV 19   2WKHUQRQǟQDQFLDODVVHWV 20   Deferred tax assets 13   2,019,933 1,690,163 Current assets Inventories 21   Trade and other receivables 22   'HULYDWLYHǟQDQFLDODVVHWV 18   Prepayments and other assets 23   Income tax recoverable   Other investments 24   2WKHUǟQDQFLDODVVHWV 19   Cash and cash equivalents 25   221,737 222,010 $VVHWVRIGLVSRVDOJURXSFODVVLǟHGDVKHOGIRUVDOH 43     Total assets 2,248,672 1,957,818 Equity and liabilities Equity Issued capital 32   Treasury shares 32 (524) (114) Share premium   Retained earnings   Other reserves 32    Equity attributable to equity holders of the Parent   Non-controlling interests   Total equity 708,285 668,089 Non-current liabilities Borrowings 26   Deferred payment liability 27   Deferred revenue   Provisions 28   'HULYDWLYHǟQDQFLDOOLDELOLWLHV 18 8 164 Deferred tax liabilities 13   2WKHUǟQDQFLDOOLDELOLWLHV 29   2WKHUQRQǟQDQFLDOOLDELOLWLHV 30   958,066 655,294 Current liabilities Borrowings 26   Deferred payment liability 27  - Deferred revenue   Provisions 28   2WKHUQRQǟQDQFLDOOLDELOLWLHV 30   'HULYDWLYHǟQDQFLDOOLDELOLWLHV 18  628 Income tax liabilities   Trade & other payables 31   581,282 628,990 /LDELOLWLHVRIGLVSRVDOJURXSFODVVLǟHGDVKHOGIRUVDOH 43   582,321 634,435 Total liabilities 1,540,387 1,289,729 Total equity and liabilities 2,248,672 1,957,818 7KHDFFRPSDQ\LQJQRWHVIRUPDQLQWHJUDOSDUWRIWKHVHFRQVROLGDWHGǟQDQFLDOVWDWHPHQWV

As per our report of even date For S. R. Batliboi & Associates LLP For and on behalf of the Board of Directors of Bharti Airtel Limited Chartered Accountants ICAI Firm Registration No: 101049W per Nilangshu Katriar Sunil Bharti Mittal Gopal Vittal Partner Chairman Managing Director 0HPEHUVKLS1R & CEO (India & South Asia)

3ODFH*XUJDRQ Rajendra Chopra Nilanjan Roy 'DWH$SULO Company Secretary *OREDO&KLHI)LQDQFLDO2njFHU

Consolidated Financial Statements (IFRS) 267 Transformational Network

&RQVROLGDWHG6WDWHPHQWRI&KDQJHVLQ(TXLW\ Total Total equity       - - 803         interests controlling controlling & CEO (India & South Asia) & CEO *OREDO&KLHI)LQDQFLDO2njFHU Total Non- 0LOOLRQVH[FHSWDVVWDWHGRWKHUZLVH `       (     - - - - 32) (Note (Note Other Other                 Reserves Reserves      For and on behalf of the Board of Directors of Bharti Airtel Limited of Directors of the Board of and on behalf For Sunil Bharti MittalChairman Chopra Rajendra Secretary Company Gopal Vittal Nilanjan Roy Managing Director earnings Retained Retained Share Share premium Attributable to equity holders of the Parent holders of equity Attributable to shares shares Treasury Treasury (Note 32) (Note 32) (Note (Note Issued capital WHGǟQDQFLDOVWDWHPHQWV ------(16) (16) ------228 - - - - - (173) 55 - 497 552 - - - - - 54,736 (7,805) 46,931 7,298 54,229 shares shares (in ‘000) 3,997,400 19,987 (524) 123,456 517,082 (3,700) 656,301 51,984 708,285 (Note 32) (Note

Dividend paid (including tax) to non- Dividend paid (including tax) to Interests controlling 31, 2016 March As of Purchase of treasury shares from market market from shares treasury of Purchase options share of on exercise Receipt interests with non-controlling Transaction Company’s Dividend paid (including tax) to shareholders 32) Note (refer - - - - (514) 104 ------531 127 - (514) 531 231 453 338 - (514) 984 569 Share based compensation compensation based Share arising on a interests Non-controlling business combination - - - - - 237 237 11 248 Total comprehensive income / (loss) comprehensive Total Dividend paid (including tax) to non- Dividend paid (including tax) to Interests controlling 31, 2015 March As of 3URǟWIRUWKH\HDU income / (loss) comprehensive Other - 3,997,400 19,987 - (114) 123,456 - 473,025 3,210 619,564 - (106) 48,525 668,089 Dividend paid (including tax) to Company’s Company’s Dividend paid (including tax) to 32) note (refer shareholders Other comprehensive income / (loss) comprehensive Other - - - - 57 Total comprehensive income / (loss) comprehensive Total compensation based Share options (refer share of on exercise Receipt 8.2) Note interests with non-controlling Transaction 7) Note (refer ------51,892 (39,444) - 12,448 (919) - 11,529 (7) (7) 3 (4) Particulars April 1, 2014 As of 3URǟWIRUWKH\HDU No of 3,997,400 19,987 (342) 123,456 437,167 17,292 597,560 42,102 639,662 7KHDFFRPSDQ\LQJQRWHVIRUPDQLQWHJUDOSDUWRIWKHVHFRQVROLGD date even of report our As per LLP S. R. Batliboi & Associates For Accountants Chartered No: 101049W ICAI Firm Registration Nilangshu Katriar per Partner 0HPEHUVKLS1R 3ODFH*XUJDRQ 'DWH$SULO

268 Annual Report 2015-16 126-355 Bharti Airtel Limited 02-39 | Corporate Overview 40-125 | Statutory Reports Financial Statements

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(` Millions) For the year ended For the year ended Particulars March 31, 2016 March 31, 2015 &DVKǃRZVIURPRSHUDWLQJDFWLYLWLHV 3URǟWEHIRUHWD[ 120,705 107,130 Adjustments for Depreciation and amortisation   Finance income     Finance costs   Share of results of joint ventures and associates     Exceptional items (net)    Employee share-based payment expenses 248 (4) Other non-cash items (143) (45) 2SHUDWLQJFDVKǃRZEHIRUHFKDQJHVLQDVVHWVDQGOLDELOLWLHV 330,434 305,574 Trade & other receivables and prepayments     Inventories (872) (2) Trade and other payables   Provisions (273)  2WKHUǟQDQFLDODQGQRQǟQDQFLDOOLDELOLWLHV  (99) 2WKHUǟQDQFLDODQGQRQǟQDQFLDODVVHWV     Cash generated from operations 326,262 303,935 Interest received   Dividend received from mutual funds 118 480 Dividend received -  Income tax paid     1HWFDVKLQǃRZIURPRSHUDWLQJDFWLYLWLHV 283,205 276,018 &DVKǃRZVIURPLQYHVWLQJDFWLYLWLHV 3XUFKDVHRISURSHUW\SODQWDQGHTXLSPHQW     3URFHHGVIURPVDOHRISURSHUW\SODQWDQGHTXLSPHQW   Purchase of intangible assets     Net movement in current investments    Purchase of non-current investments     Sale of non-current investments   ,QYHVWPHQWLQVXEVLGLDU\QHWRIFDVKDFTXLUHG UHIHU1RWH (135) (358) Sale of tower assets (refer Note 43)   Investment in joint venture / associate - (10) Proceeds from sale of interest / capital reduction in joint venture 55 87 Loan to joint venture / associate (19) (154) Loan repayment received from joint venture / associate (refer Note 35) 14 - 1HWFDVKRXWǃRZIURPLQYHVWLQJDFWLYLWLHV (146,036) (220,481) &DVKǃRZVIURPǂQDQFLQJDFWLYLWLHV Proceeds from borrowings   Repayment of borrowings     Net proceeds from short term borrowings   3URFHHGVIURPVDOHDQGǟQDQFHOHDVHEDFNRIWRZHUV UHIHU1RWH  - 5HSD\PHQWRIǟQDQFHOHDVHOLDELOLWLHV   - Repayment of loan to joint venture -   Purchase of treasury shares (514) - ,QWHUHVWDQGRWKHUǟQDQFHFKDUJHVSDLG     Proceeds from exercise of share options 569 552 Dividend paid (including tax) (refer Note 32)     Proceeds from issuance of equity shares to non - controlling interests (refer Note 7) 984 - Sale of interest in a subsidiary (refer Note 7) -  Acquisition of non-controlling interests (refer Note 7) - (624) 1HWFDVKRXWǃRZIURPǂQDQFLQJDFWLYLWLHV (119,461) (96,570) Net decrease in cash and cash equivalents during the year 17,708 (41,033) (NjHFWRIH[FKDQJHUDWHFKDQJHVRQFDVKDQGFDVKHTXLYDOHQWV  43 $GG%DODQFHDVDWWKHEHJLQQLQJRIWKH\HDU     Balance as at the end of the year (refer Note 25) 17,635 (1,415) 7KHDFFRPSDQ\LQJQRWHVIRUPDQLQWHJUDOSDUWRIWKHVHFRQVROLGDWHGǟQDQFLDOVWDWHPHQWV As per our report of even date For S. R. Batliboi & Associates LLP For and on behalf of the Board of Directors of Bharti Airtel Limited Chartered Accountants ICAI Firm Registration No: 101049W per Nilangshu Katriar Sunil Bharti Mittal Gopal Vittal Partner Chairman Managing Director 0HPEHUVKLS1R & CEO (India & South Asia)

3ODFH*XUJDRQ Rajendra Chopra Nilanjan Roy 'DWH$SULO Company Secretary *OREDO&KLHI)LQDQFLDO2njFHU

Consolidated Financial Statements (IFRS) 269 Transformational Network

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270 Annual Report 2015-16 126-355 Bharti Airtel Limited 02-39 | Corporate Overview 40-125 | Statutory Reports Financial Statements

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Consolidated Financial Statements (IFRS) 271 Transformational Network

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272 Annual Report 2015-16 126-355 Bharti Airtel Limited 02-39 | Corporate Overview 40-125 | Statutory Reports Financial Statements

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Consolidated Financial Statements (IFRS) 273 Transformational Network

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274 Annual Report 2015-16 126-355 Bharti Airtel Limited 02-39 | Corporate Overview 40-125 | Statutory Reports Financial Statements

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276 Annual Report 2015-16 126-355 Bharti Airtel Limited 02-39 | Corporate Overview 40-125 | Statutory Reports Financial Statements

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278 Annual Report 2015-16 126-355 Bharti Airtel Limited 02-39 | Corporate Overview 40-125 | Statutory Reports Financial Statements

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280 Annual Report 2015-16 126-355 Bharti Airtel Limited 02-39 | Corporate Overview 40-125 | Statutory Reports Financial Statements

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282 Annual Report 2015-16 126-355 Bharti Airtel Limited 02-39 | Corporate Overview 40-125 | Statutory Reports Financial Statements

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284 Annual Report 2015-16 126-355 Bharti Airtel Limited 02-39 | Corporate Overview 40-125 | Statutory Reports Financial Statements

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286 Annual Report 2015-16 126-355 Bharti Airtel Limited 02-39 | Corporate Overview 40-125 | Statutory Reports Financial Statements

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NotesWRFRQVROLGDWHGnjQDQFLDOVWDWHPHQWV -      120,705     Millions) ` ( FFRXQWRIGLVSXWHG 212           RQRIWKHWRZHUVDOHDJUHHPHQW -   - - - - (932) - 0 4 - - (23) Others Unallocated Eliminations Consolidated  7RZHU   Services QJFRVWVRQQHWZRUNUHIDUPLQJDQGXSJUDGDWLRQSURJUDPDQGRQD Infrastructure Infrastructure HHSURYLVLRQVGHSUHFLDWLRQFKDUJHDULVLQJRXWRIWKHWHUPLQDWL 59 Services Digital TV Airtel Business HG0DUFKLVDVIROORZV Services Telemedia Telemedia    Africa [SHQVHVRQUHVWUXFWXULQJDFWLYLWLHVLQDIHZFRXQWULHVRSHUDWL Mobile Services DFFRXQWRIGLYHVWPHQWRIWHOHFRPWRZHUVLQ$IULFDUHJXODWRU\I 588 Mobile Services South Asia 10 - - - - - India                   Services               560,818 16,454 251,333 47,609 78,033 29,178 56,173 3,051 - (77,328) 965,321                  Particulars Particulars Mobile Revenue from external external from Revenue customers Segment result Inter segment segment Inter revenue revenues Total of results of Share and joint ventures associates Finance income Finance costs expenses Other ([FHSWLRQDOLWHPV net* 3URǂWEHIRUHWD[ items segment Other Capital expenditure and Depreciation amortisation As of March 31, 2016 March As of Segment assets Segment liabilities 6XPPDU\RIWKH6HJPHQWDO,QIRUPDWLRQDVRIDQGIRUWKH\HDUHQG Š([FHSWLRQDOLWHPVQHWšVKRZQVHSDUDWHO\UHODWHVWRJDLQRQ FKDUJHVWRZDUGVGHUHFRJQLWLRQRIHPEHGGHGGHULYDWLYHDVVHWVH UHFHLYDEOHVH[SLUHGFODLPV 5HIHU1RWH 

288 Annual Report 2015-16 126-355 Bharti Airtel Limited 02-39 | Corporate Overview 40-125 | Statutory Reports Financial Statements

NotesWRFRQVROLGDWHGnjQDQFLDOVWDWHPHQWV -         107,130   Millions) ` ( FKDUJHVRQDFFRXQWRI (1)         LWLHVRWKHUFRVWVDWWULEXWDEOHWR -            -- - (950) 9 - - 6 - - 16 789 Others Unallocated Eliminations Consolidated  7RZHU   Services VWPHQWRIWHOHFRPWRZHUVLQRQHRIWKHFRXQWULHVLQ$IULFDDQG Infrastructure Infrastructure Q1LJHULDFRVWVUHODWLQJWRSRVWDFTXLVLWLRQLQWHJUDWLRQDFWLY 60 Services Digital TV Airtel Business HG0DUFKLVDVIROORZV Services Telemedia Telemedia Africa    Mobile Services PHWUDQVODWLRQLPSDFWRIFHUWDLQIRUHLJQFXUUHQF\OLDELOLWLHVL IDQDJUHHPHQWE\DWHOHFRPRSHUDWRULQFRPHRQDFFRXQWRIGLYH 380 Mobile Services South Asia 8 - (53) (10) - - India  Services                                                           As of March 31, 2015 March As of Segment assets Segment result Revenue from external external from Revenue customers segment Inter revenue revenuesTotal of results of Share and joint ventures associates 519,636 15,759 269,070 44,325 67,130 24,759 54,282 2,914 - (77,481) 920,394 Finance income Finance costs expenses Other ([FHSWLRQDOLWHPVQHW 3URǂWEHIRUHWD[ items segment Other Capital expenditure and Depreciation amortisation Segment liabilities Particulars Particulars Mobile VHWWOHPHQWRIYDULRXVGLVSXWHV 5HIHU1RWH  UHVWUXFWXULQJDFWLYLWLHVLQFRPHGXHWRSUHPDWXUHWHUPLQDWLRQR 6XPPDU\RIWKH6HJPHQWDO,QIRUPDWLRQDVRIDQGIRUWKH\HDUHQG Š([FHSWLRQDOLWHPVQHWšVKRZQVHSDUDWHO\FRPSULVHVRIRQHWL

Consolidated Financial Statements (IFRS) 289 Transformational Network

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(` Millions) As of As of Particulars March 31, 2016 March 31, 2015 Unallocated assets comprise of : 'HULYDWLYHǟQDQFLDODVVHWV   Deferred tax asset   Income tax recoverable   Inter-segment loans/ receivables   Other investments 8  Others   Total 181,847 237,472

(` Millions) As of As of Particulars March 31, 2016 March 31, 2015 Unallocated liabilities comprise of : Borrowings   'HULYDWLYHǟQDQFLDOOLDELOLWLHV  792 Deferred tax liability   Income tax liabilities   Inter-segment loans/ payables   Others   Total 1,112,904 1,191,726  %RUURZLQJVLQFOXGHDPRXQWERUURZHGIRUWKHDFTXLVLWLRQRI*DQG%:$/LFHQVHV LQFOXGLQJVSHFWUXP `0QDQG `0QDQGIRUIXQGLQJWKHDFTXLVLWLRQRI$IULFDRSHUDWLRQVDQGRWKHUERUURZLQJVRI$IULFDRSHUDWLRQV` 0QDQG`0QDVRI0DUFKDQG0DUFKUHVSHFWLYHO\ Geographical information:  ,QIRUPDWLRQFRQFHUQLQJJHRJUDSKLFDODUHDVE\ORFDWLRQRIWKHHQWLW\LVDVIROORZV (a) Revenue from external customers: (` Millions) Year ended Year ended Particulars March 31, 2016 March 31, 2015 India   Africa   Rest of the World   Total 965,321 920,394

(b) Non-current assets(Property, plant and equipment and Intangible assets): (` Millions) Year ended Year ended Particulars March 31, 2016 March 31, 2015 India   Africa   Rest of the World   Total 1,817,263 1,501,440

290 Annual Report 2015-16 126-355 Bharti Airtel Limited 02-39 | Corporate Overview 40-125 | Statutory Reports Financial Statements

NotesWRFRQVROLGDWHGnjQDQFLDOVWDWHPHQWV

7. Business Combination/ Disposal of DQG FODXVH $ RI WKH HTXLW\ OLVWLQJ DJUHHPHQW WKH subsidiary/ Other acquisitions/ Transaction &RPSDQ\VROG0QVKDUHVLQ%KDUWL,QIUDWHO/LPLWHG ZLWK1RQFRQWUROOLQJ,QWHUHVWV %,/ IRU`0QUHSUHVHQWLQJVKDUHKROGLQJ a) Dilution of Stake in Airtel M Commerce Services LQ%,/6XEVHTXHQWWRWKHWUDQVDFWLRQWKHVKDUHKROGLQJ Limited (AMSL) RIWKH&RPSDQ\LQ%,/KDVUHGXFHGWR  2Q )HEUXDU\   $06/ D VXEVLGLDU\ RI WKH  )XUWKHU RQ )HEUXDU\   WKH &RPSDQ\ VROG *URXS.RWDN0DKLQGUD%DQN/LPLWHG .0%/ DQGWKH  0Q VKDUHV IRU `  0Q UHSUHVHQWLQJ  Company have entered into a Share Subscription and VKDUHKROGLQJLQ%,/6XEVHTXHQWWRWKHWUDQVDFWLRQWKH 6KDUHKROGHUVš DJUHHPHQW WR DOORW  RI WKH SRVW VKDUHKROGLQJ RI WKH &RPSDQ\ LQ %,/ KDV UHGXFHG WR LVVXHVKDUHFDSLWDORI$06/WR.0%/$FFRUGLQJO\WKH  VKDUHKROGLQJRIWKH&RPSDQ\LQ$06/VWDQGVUHGXFHG WR  DQG WKH FRUUHVSRQGLQJ QRQFRQWUROOLQJ  7KHFDUU\LQJ DPRXQW RI QRQFRQWUROOLQJ LQWHUHVWV KDV LQWHUHVWV KDV EHHQ UHFRJQLVHG ([FHVV RI SURFHHGV EHHQDGMXVWHGWRUHǍHFWWKHFKDQJHRIUHODWLYHLQWHUHVW over net assets attributable to non-controlling interests, LQ %,/ ([FHVV RI SURFHHGV RYHU WKH FKDQJH LQ QRQ amounting to `0QKDVEHHQUHFRJQLVHGGLUHFWO\LQ FRQWUROOLQJLQWHUHVWVQHWRIDVVRFLDWHGWUDQVDFWLRQFRVWV HTXLW\DVDWWULEXWDEOHWRWKHHTXLW\VKDUHKROGHUVRIWKH taxes and regulatory levies, amounting to `0Q parent. has been recognised directly in equity as attributable to b) Acquisition of Additional Interest in Indo Teleports WKHHTXLW\VKDUHKROGHUVRIWKHSDUHQW /LPLWHG IRUPHUO\NQRZQDV%KDUWL7HOHSRUWV d) Purchase of Shares of BIL by Bharti Infratel Limited) Employees’ Welfare Trust  2Q$XJXVW   WKH *URXS DFTXLUHG DGGLWLRQDO  'XULQJ WKH \HDU HQGHG 0DUFK   %KDUWL  RI WKH VKDUH FDSLWDO RI ,QGR 7HOHSRUWV /LPLWHG ,QIUDWHO (PSOR\HHVš :HOIDUH 7UXVW DFTXLUHG  0Q IRUPHUO\NQRZQDV%KDUWL7HOHSRUWV/LPLWHG LQFUHDVLQJ QXPEHU RI VKDUHV RI %KDUWL ,QIUDWHO /LPLWHG IURP QRQ LWVRZQHUVKLSWRDQGDFFRUGLQJO\JRRGZLOORI` FRQWUROOLQJ LQWHUHVWV IRU D FRQVLGHUDWLRQ RI `  0Q 0QKDVEHHQUHFRJQLVHGLQWKHWUDQVDFWLRQ 7KHFDUU\LQJDPRXQWVRIQRQFRQWUROOLQJLQWHUHVWVKDYH c) Sale of Stake in Bharti Infratel Limited (BIL) EHHQ DGMXVWHG WR UHǍHFW WKH FKDQJHV LQ WKHLU UHODWLYH  2Q $XJXVW   LQ RUGHU WR FRPSO\ ZLWK WKH LQWHUHVWVLQ%,/([FHVVRIFRVWRYHUWKHFKDQJHLQQRQ requirement to maintain minimum public shareholding controlling interests, amounting to `0QKDVEHHQ RI  LQ WHUPV RI UXOH   E  $ RI 6HFXULWLHV recognised directly in equity as attributable to the &RQWUDFWV 5HJXODWLRQ  5XOHV  DV DPHQGHG HTXLW\VKDUHKROGHUVRIWKHSDUHQW

8. Operating Expenses (` Millions) Year ended Year ended Particulars Notes March 31, 2016 March 31, 2015 Access charges   /LFHQFHIHHVUHYHQXHVKDUHDQGVSHFWUXPFKDUJHV   Network operations cost   Employee costs 8.1   6HOOLQJJHQHUDODQGDGPLQLVWUDWLYHH[SHQVHV   Charity & donations *   Total 625,259 607,468  LQFOXGLQJH[SHQGLWXUHWRZDUGVFRUSRUDWHVRFLDOUHVSRQVLELOLW\  6HOOLQJJHQHUDODQGDGPLQLVWUDWLYHH[SHQVHVLQFOXGHWKHIROORZLQJ (` Millions) Year ended Year ended Particulars March 31, 2016 March 31, 2015 Trading inventory consumption   Dimunition in value of inventory 288 515 Provision for doubtful debts  

Consolidated Financial Statements (IFRS) 291 Transformational Network

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8.1 Employee Costs (` Millions) Year ended Year ended Particulars Notes March 31, 2016 March 31, 2015 6DODULHVDOORZDQFHV RWKHUV   'HǟQHGFRQWULEXWLRQSODQ   'HǟQHGEHQHǟWSODQRWKHUORQJWHUPEHQHǟWV 926 734 Share based compensation 8.2 998 718 Total 49,112 47,123

8.2 Share Based Compensation Plans  7KHIROORZLQJWDEOHSURYLGHVDQRYHUYLHZRIDOOH[LVWLQJVKDUHRSWLRQSODQVRIWKH*URXS

As of March 31, 2016 As of March 31, 2015 Entity Scheme Plan Year of Vesting Contractual Share Weighted Share Weighted issuance period term options average options average of plan (years) (years) granted exercise granted exercise (thousands) price (`) (thousands) price (`) Equity settled Plans Bharti Airtel Scheme I 2001 Plan * 2002 1 - 4 7  21.25  21.25 Bharti Airtel Scheme I 2004 Plan * 2004 1 - 4 7  35.00  35.00 Bharti Airtel Scheme I Superpot * 2004 1 - 3 7 143 - 143 - Bharti Airtel Scheme I 2006 Plan 2006 1 - 5 7  5.48  5.48 Bharti Airtel Scheme 2005 2005 Plan * 2005 1 - 4 7  237.06  237.06 Bharti Airtel Scheme 2005 2008 Plan & 2008 1 - 3 7  352.13  352.13 Annual Grant Plan (AGP) Bharti Airtel Scheme 2005 Performance 2009 3 - 4 7  5.00  5.00 Share Plan (PSP) 2009 Plan Bharti Airtel Scheme 2005 Special ESOP & 2010 1 - 5 7  5.00  5.00 Restricted Share Units (RSU) Plan Bharti Airtel Scheme 2005 Long Term 2011 1 - 3 7 433 5.00 433 5.00 Incentive (LTI) Plan Bharti Airtel Scheme 2005 LTI Plan 2012 1 - 3 7  5.00  5.00 Bharti Airtel Scheme 2005 LTI Plan 2015 1 - 3 7  5.00 - - Bharti Infratel Infratel plan 2008 Plan 2008 1 - 5 7  109.67  109.67 Bharti Infratel Infratel plan LTI Plan (Part of 2012 1 - 3 7 34 10.00 34 10.00 2008 plan) Bharti Infratel Infratel plan 2015 Plan 2015 1 - 3 7 90 10.00 - - Cash settled Plans Bharti Airtel Scheme 2005 LTI Plan Africa * 2011 1 - 3 3 560 5.00 560 5.00 Bharti Airtel Performance Performance Unit 2013 1 - 3 3  -  - Unit Plan Plan (PUP) 2013 (PUP) 2013 Bharti Airtel Performance Performance Unit 2014 1 - 5 3-5  -  - Unit Plan Plan (PUP) 2014 (PUP) 2014 Bharti Airtel Performance Performance Unit 2015 1 - 3 3  - -- Unit Plan Plan (PUP) 2015 (PUP) 2015 Bharti Infratel Infratel plan PUP 2013 & 1 - 3 7 309 - 309 - 2014 * Contractual term has expired

292 Annual Report 2015-16 126-355 Bharti Airtel Limited 02-39 | Corporate Overview 40-125 | Statutory Reports Financial Statements

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(` Millions) Year ended Year ended Particulars March 31, 2016 March 31, 2015 Expenses arising from equity-settled share-based payment transactions 248 (4) Expenses arising from Cash-settled share-based payment transactions 750 722 998 718

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As of March 31, 2016 As of March 31, 2015

(Share options in thousands) Number of Weighted average Number of Weighted average share exercise price share exercise price options (`) options (`) Equity Settled Plans Scheme I - 2006 Plan Outstanding at beginning of year 390 5.00 539 6.74 Granted - - 225 5.00 Exercised (75) 5.00 (98) 14.38 Forfeited / Expired (10) 5.00 (276) 5.00 Outstanding at end of year 305 5.00 390 5.00 Exercisable at end of year 30 5.00 65 5.00

Scheme 2005 - 2005 Plan Outstanding at beginning of year - -  436.06 Granted - - - - Exercised - - - - Forfeited / Expired - -   436.06 Outstanding at end of year - - - - Exercisable at end of year - - - -

Scheme 2005 - 2008 Plan & AGP Outstanding at beginning of year  355.45  354.54 Granted - - - - Exercised (686) 334.89 (173) 327.20 Forfeited / Expired   342.24 (732) 357.85 Outstanding at end of year 639 402.50  355.45 Exercisable at end of year 639 402.50  355.45

Scheme 2005 - PSP 2009 Plan Outstanding at beginning of year 83 5.00 242 5.00 Granted - - - - Exercised (22) 5.00 (159) 5.00 Forfeited / Expired (8) 5.00 - 5.00 Outstanding at end of year 53 5.00 83 5.00 Exercisable at end of year 53 5.00 83 5.00

Consolidated Financial Statements (IFRS) 293 Transformational Network

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As of March 31, 2016 As of March 31, 2015

(Share options in thousands) Number of Weighted average Number of Weighted average share exercise price share exercise price options (`) options (`) Scheme 2005 - Special ESOP & RSU Plan Outstanding at beginning of year 189 5.00 408 5.00 Granted - - - - Exercised (44) 5.00 (178) 5.00 Forfeited / Expired (19) 5.00 (41) 5.00 Outstanding at end of year 126 5.00 189 5.00 Exercisable at end of year 126 5.00 189 5.00

Scheme 2005 - LTI Plan (2011, 2012 & 2015) Outstanding at beginning of year 523 5.00  5.00 Granted  5.00 67 5.00 Exercised (201) 5.00 (356) 5.00 Forfeited / Expired (189) 5.00 (260) 5.00 Outstanding at end of year  5.00 523 5.00 Exercisable at end of year 208 5.00 230 5.00

Bharti Infratel : 2008 Plan Outstanding at beginning of year  109.67  109.67 Granted - - - - Exercised   109.67   109.67 Forfeited / Expired (24) 109.67 (257) 109.67 Outstanding at end of year 732 109.67  109.67 Exercisable at end of year 732 109.67  109.67

Bharti Infratel : LTI Plan (Part of 2008 Plan) 1XPEHURIVKDUHVXQGHURSWLRQ Outstanding at beginning of year 6 10.00 16 10.00 Granted - - - - Exercised (2) 10.00 (5) 10.00 Forfeited / Expired - 10.00 (5) 10.00 Outstanding at end of year 4 10.00 6 10.00 Exercisable at end of year 4 10.00 3 10.00

Bharti Infratel : LTI Plan (2015 Plan) 1XPEHURIVKDUHVXQGHURSWLRQ Outstanding at beginning of year - - - - Granted 90 10.00 - - Exercised - - - - Forfeited / Expired - - - - Outstanding at end of year 90 10.00 - - Exercisable at end of year - - - -

294 Annual Report 2015-16 126-355 Bharti Airtel Limited 02-39 | Corporate Overview 40-125 | Statutory Reports Financial Statements

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As of March 31, 2016 As of March 31, 2015

(Share options in thousands) Number of Weighted average Number of Weighted average share exercise price share exercise price options (`) options (`) Cash Settled Plan Scheme 2005 - LTI Plan Africa Outstanding at beginning of year - - 107 5.00 Granted - - - - Exercised - - - - Forfeited - - (107) 5.00 Outstanding at end of year - - - - Exercisable at end of year - - - - PUP 2013 Outstanding at beginning of year  -  - Granted - - 140 - Exercised (381) - (589) - Forfeited / Expired (555) -   - Outstanding at end of year 499 -  - Exercisable at end of year - - - -

PUP 2014 1XPEHURIVKDUHVXQGHURSWLRQ Outstanding at beginning of year  - - - Granted 11 -  - Exercised (441) - - - Forfeited / Expired   - (361) - Outstanding at end of year  -  - Exercisable at end of year - - - -

PUP 2015 1XPEHURIVKDUHVXQGHURSWLRQ Outstanding at beginning of year - - - Granted  - - - Exercised - - - - Forfeited / Expired (138) - - - Outstanding at end of year 907 - - - Exercisable at end of year - - - -

Bharti Infratel : Performance Unit Plan 1XPEHURIVKDUHVXQGHURSWLRQ Outstanding at beginning of year 238 - 171 - Granted - - 138 - Exercised (51) - (46) - Forfeited / Expired (4) - (25) - Outstanding at end of year 183 - 238 - Exercisable at end of year 37 - 2 -

Consolidated Financial Statements (IFRS) 295 Transformational Network

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7KH IROORZLQJ WDEOH VXPPDULVHV LQIRUPDWLRQ DERXW RSWLRQV H[HUFLVHG DQG JUDQWHG GXULQJ WKH \HDU DQG DERXW RSWLRQV RXWVWDQGLQJDQGWKHLUUHPDLQLQJFRQWUDFWXDOOLIH March 31, 2016 Options Outstanding Options Granted during the Options Excercised as of March 31, 2016 year ended March 31, 2016 during the year ended March 31, 2016 Entity Plan Options Exercise Weighted Options Wtd Avg Fair Options Weighted (thousands) price average (thousands) Value (`) (thousands) average (`) remaining share contractual price (`) life (years) Equity settled Plans Bharti Airtel 2006 Plan 305 5.00 5.00 - - 75 350.45 Bharti Airtel 2008 Plan & 639 402.50 0.25 - - 686 397.45 AGP Bharti Airtel PSP 2009 Plan 53 5.00 0.69 - - 22 367.51 Bharti Airtel Special ESOP & 126 5.00 1.20 - - 44 319.66 RSU Plan Bharti Airtel /7,3ODQ   5.00 5.98  398.32 201 348.28 2012 & 2015) Bharti Infratel 2008 Plan 732 109.67 1.05 - -  394.02 Bharti Infratel LTI Plan (Part 4 10.00 3.42 - - 2 394.02 of 2008 Plan) Bharti Infratel 2015 Plan 90 10.00 6.33 90 414.41 - - Cash settled Plans Bharti Airtel PUP 2013 499 - 0.37 - - 381 417.90 Bharti Airtel PUP 2014  - 1.97 11 373.40 441 423.32 Bharti Airtel PUP 2015 907 - 2.35  342.44 - - Bharti Infratel Performance 183 - 4.34 - - 51 439.11 Unit Plan March 31, 2015 Options Outstanding Options Granted during the Options Excercised as of March 31, 2015 year ended March 31, 2015 during the year ended March 31, 2015 Entity Plan Options Exercise Weighted Options Wtd Avg Fair Options Weighted (thousands) price average (thousands) Value (`) (thousands) average (`) remaining share contractual price (`) life (years) Equity settled Plans Bharti Airtel 2006 Plan 390 5.00 to 5.86 225 361.19 98 371.70 110.50 Bharti Airtel 2008 Plan &  295.00 0.63 - - 173 383.30 AGP to 402.50 Bharti Airtel PSP 2009 Plan 83 5.00 1.87 - - 159 352.26 Bharti Airtel Special ESOP & 189 5.00 2.26 - - 178 350.09 RSU Plan Bharti Airtel LTI Plan (2011 523 5.00 4.27 67 291.63 356 368.36 & 2012) Bharti Infratel 2008 Plan  109.67 1.95 - -  262.40 Bharti Infratel LTI Plan (Part 6 10.00 4.42 - - 5 262.40 of 2008 Plan) Cash settled Plans Bharti Airtel PUP 2013  - 1.37 140 378.92 589 354.24 Bharti Airtel PUP 2014  - 2.81  383.98 - - Bharti Infratel Performance 238 - 5.34 138 336.29 46 262.40 Unit Plan 7KHWRWDOFDUU\LQJYDOXHRIFDVKVHWWOHGVKDUHEDVHGFRPSHQVDWLRQOLDELOLW\LV`0QDQG`0QDVRI0DUFK DQG0DUFKUHVSHFWLYHO\

296 Annual Report 2015-16 126-355 Bharti Airtel Limited 02-39 | Corporate Overview 40-125 | Statutory Reports Financial Statements

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Year ended Year ended Particulars March 31, 2016 March 31, 2015 Risk free interest rates 6.86% to 7.87% 7.64% to 8.65% Expected life 4 to 60 months 10 to 72 months 9RODWLOLW\ 26.63% to 37.23% 27.36% to 32.59% Dividend yield 0.54% to 1.44% 0.46% to 0.6% Wtd average share price on measurement date exluding Infratel (`) 350.9 to 411.7 373.7 to 393.9 Wtd average exercise price on measurement date exluding Infratel (`) 0 to 5 0 to 5 Wtd average share price on measurement date - Infratel (`) 497.00 378.00 Wtd average exercise price on measurement date - Infratel (`) 10.00 -

7KHH[SHFWHGOLIHRIWKHVKDUHRSWLRQLVEDVHGRQKLVWRULFDO %KDUWL,QIUDWHO/LPLWHG WKHVXEVLGLDU\RIWKH&RPSDQ\ KDVLVVXHG GDWD FXUUHQWH[SHFWDWLRQDQGQRWQHFHVVDULO\LQGLFDWLYHRI IUHVK HTXLW\ VKDUHV WR LWV HPSOR\HHV XQGHU WKH HTXLW\ VHWWOHG H[HUFLVHSDWWHUQWKDWPD\RFFXU7KHYRODWLOLW\RIWKHRSWLRQV VKDUHEDVHGFRPSHQVDWLRQSODQDQGKDVUHFHLYHGDQDPRXQWRI LVEDVHGRQWKHKLVWRULFDOYRODWLOLW\RIWKHVKDUHSULFHVLQFH `0Q 0DUFK`0Q UHVXOWLQJLQLQFUHDVHLQWKH the respective entity’s equity shares became publicly traded. KROGLQJRIQRQFRQWUROOLQJVKDUHKROGHUVE\

9. Other Expenses  2WKHUH[SHQVHVFRPSULVHUHJXODWRU\OHYLHVDSSOLFDEOHWRnjQDQFHLQFRPHLQVRPHRIWKHJHRJUDSKLHV

10. Depreciation and Amortisation (` Millions) Year ended Year ended Particulars Notes March 31, 2016 March 31, 2015 Depreciation 14   Amortisation 15   Total 174,498 155,311

Consolidated Financial Statements (IFRS) 297 Transformational Network

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11. Finance Income and Costs (` Millions) Year ended Year ended Particulars March 31, 2016 March 31, 2015 Finance income Dividend from mutual funds 118 480 Interest income on deposits  674 Interest income on loans to associates 28 47 Interest income on others   Net gain on securities held for trading   1HWJDLQRQGHULYDWLYHǟQDQFLDOLQVWUXPHQWV   Total 16,177 24,788 Finance costs Interest on borrowings and deferred payment liability   ,QWHUHVWRQǟQDQFHOHDVHOLDELOLWLHV  - Unwinding of discount on provisions 286 416 Net exchange loss   1HWIDLUYDOXHORVVRQǟQDQFLDOLQVWUXPHQWV)DLUYDOXHKHGJHV   2WKHUǟQDQFHFKDUJHV   Total 85,042 73,252

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298 Annual Report 2015-16 126-355 Bharti Airtel Limited 02-39 | Corporate Overview 40-125 | Statutory Reports Financial Statements

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13. Income Taxes  7KHPDMRUFRPSRQHQWVRIWKHLQFRPHWD[H[SHQVHDUH

(` Millions) Year ended Year ended Particulars March 31, 2016 March 31, 2015 Current income tax - India   - Overseas     Deferred tax* 5HODWLQJWRRULJLQDWLRQ UHYHUVDORIWHPSRUDU\GLNjHUHQFHV    - Relating to change in tax rate - 537 7D[H[SHQVHDWWULEXWDEOHWRFXUUHQW\HDU VSURǂW   Adjustments in respect of income tax of previous year - Current income tax India 198 (217) Overseas 742 658 940 441 - Deferred tax*#     Income tax expense recorded in the consolidated income 59,368 54,047 statement   ,QFOXGHVWD[FUHGLWUHFRYHUDEOHRQDFFRXQWRIPLQLPXPDOWHUQDWHWD[ 0$7 RI`0QDQG`0QGXULQJ\HDUVHQGHG0DUFKDQG0DUFK UHVSHFWLYHO\  ,QFOXGHVUHYHUVDORIGHIHUUHGWD[DVVHWRI`0QDQG`1LOOGXULQJWKH\HDUHQGHG0DUFKDQG0DUFKUHVSHFWLYHO\LQRQHRIWKH VXEVLGLDU\RQDFFRXQWRIVXUUHQGHURIGHSUHFLDWLRQZLWK7D[DXWKRULW\  'XULQJWKH\HDUHQGHG0DUFKWKHJURXSKDGUHFRJQLVHGDGGLWLRQDOWD[FKDUJHRI`0QRQDFFRXQWRI changes in tax rates (including `0QUHODWLQJWR,QGLDRQDFFRXQWRIFKDQJHLQWD[UDWHIURPWRDV SURSRVHGLQ)LQDQFH%LOO 

Consolidated Financial Statements (IFRS) 299 Transformational Network

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7KHFRPSRQHQWVWKDWJDYHULVHWRGHIHUUHGWD[DVVHWVDQGOLDELOLWLHVDUHDVIROORZV (` Millions) As of As of Particulars March 31, 2016 March 31, 2015 Deferred tax asset/(liabilities) Provision for impairment of debtors/advances and other provisions   /RVVHVDYDLODEOHIRURNjVHWDJDLQVWIXWXUHWD[DEOHLQFRPH   Employee share options 298 281 3RVWHPSOR\PHQWEHQHǟWV 902 787 Minimum tax credit   Lease rent equalisation - expense   )DLUYDOXDWLRQRIǟQDQFLDODVVHWVGHULYDWLYHLQVWUXPHQWVRWKHULQYHVWPHQWV (829)   DQGXQUHDOLVHGH[FKDQJHǠXFWXDWLRQ Accelerated depreciation/amortisation for tax purposes     Fair valuation of intangibles/property plant & equipments on business 801 855 combination Lease rent equalisation - income     Unearned Income 472 628 Deferred tax liability on undistributed retained earnings     Others 55 (177) Net deferred tax asset/(liabilities) 32,382 44,392

300 Annual Report 2015-16 126-355 Bharti Airtel Limited 02-39 | Corporate Overview 40-125 | Statutory Reports Financial Statements

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(` Millions) Year ended Year ended Particulars March 31, 2016 March 31, 2015 Deferred tax (expense)/income Provision for impairment of debtors/advances and other provisions   /RVVHVDYDLODEOHIRURNjVHWDJDLQVWIXWXUHWD[DEOHLQFRPH (872)   Employee share options 17 (565) 3RVWHPSOR\PHQWEHQHǟWV 117 131 Minimum tax credit   Lease rent equalisation - expense 597 929 )DLUYDOXDWLRQRIǟQDQFLDODVVHWVGHULYDWLYHLQVWUXPHQWVRWKHU 492   LQYHVWPHQWVDQGXQUHDOLVHGH[FKDQJHǠXFWXDWLRQ Accelerated depreciation/amortisation for tax purposes     Fair valuation of intangibles/property plant & equipments on business (119) (376) combination Lease rent equalisation - income (202) (514) Unearned Income (94) (231) Deferred tax liability on undistributed retained earnings    Others 46 (411) Net deferred tax (expense)/income (14,677) 3,830

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(` Millions) As of As of Particulars March 31, 2016 March 31, 2015 Deferred tax asset   Deferred tax liabilities     Deferred tax asset (net) 32,382 44,392

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(` Millions) Year ended Year ended Particulars March 31, 2016 March 31, 2015 Opening balance   7D[,QFRPH H[SHQVH GXULQJWKH\HDUUHFRJQLVHGLQSURǟWRUORVV    Deferred tax liability reversed upon sale of subsidiary 787 - Translation adjustment and others    Closing balance 32,382 44,392

Consolidated Financial Statements (IFRS) 301 Transformational Network

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'HIHUUHG WD[ DVVHWV DUH UHFRJQLVHG WR WKH H[WHQW WKDW LW LV (` Millions) SUREDEOHWKDWWD[DEOHSURnjWZLOOEHDYDLODEOHDJDLQVWZKLFK As of WKH GHGXFWLEOH WHPSRUDU\ GLNjHUHQFHV FDUU\ IRUZDUG RI March 31, unabsorbed depreciation and unused tax losses can be March 31, 2015 XWLOLVHG$FFRUGLQJO\WKH*URXSKDVQRWUHFRJQLVHGGHIHUUHG 2016  WD[ DVVHWV LQ UHVSHFW RI GHGXFWLEOH WHPSRUDU\ GLNjHUHQFHV 2017  FDUU\ IRUZDUG RI XQDEVRUEHG GHSUHFLDWLRQ DQG XQXVHG WD[ 2018  ORVVHVRI`0QDQG`0QDVRI0DUFK DQG0DUFKUHVSHFWLYHO\DVLWLVQRWSUREDEOH 2019  WKDWWD[DEOHSURnjWVZLOOEHDYDLODEOHLQIXWXUH 2020  7KH WD[ UDWHV DSSOLFDEOH WR WKHVH XQXVHG WD[ ORVVHV Thereafter  unabsorbed depreciation and deductible temporary 86,585 GLNjHUHQFHV YDU\ IURP  WR  GHSHQGLQJ RQ WKH MXULVGLFWLRQ LQ ZKLFK WKH UHVSHFWLYH *URXS HQWLW\ RSHUDWHV 7KH *URXS KDV QRW UHFRJQLVHG GHIHUUHG WD[ OLDELOLW\ ZLWK 2IWKHDERYHEDODQFHDVRI0DUFKDQG0DUFK respect to unremitted retained earnings and associated  WD[ ORVVHV XQDEVRUEHG GHSUHFLDWLRQ DQG GHGXFWLEOH IRUHLJQFXUUHQF\WUDQVODWLRQUHVHUYHZLWKUHVSHFWWRFHUWDLQ ` WHPSRUDU\ GLNjHUHQFHV WR WKH H[WHQW RI   0Q DQG RILWVVXEVLGLDULHVDQGMRLQWYHQWXUHVZKHUHWKH*URXSLVLQ ` 0QUHVSHFWLYHO\KDYHDQLQGHnjQLWHFDUU\IRUZDUG DSRVLWLRQWRFRQWUROWKHWLPLQJRIWKHGLVWULEXWLRQRISURnjWV SHULRGDQGWKHEDODQFHDPRXQWH[SLUHVXQXWLOLVHGDVIROORZV and it is probable that the subsidiaries and joint ventures ZLOOQRWGLVWULEXWHWKHSURnjWVLQWKHIRUHVHHDEOHIXWXUH$OVR (` Millions) WKH*URXSGRHVQRWUHFRJQLVHVGHIHUUHGWD[OLDELOLW\RQWKH As of March 31, XQUHPLWWHG UHWDLQHG HDUQLQJV RI LWV VXEVLGLDULHV ZKHUHYHU March 31, 2016 LWEHOLHYHVWKDWLWZRXOGDYDLOWKHWD[FUHGLWIRUWKHGLYLGHQG 2017  distribution tax payable by the subsidiaries on its dividend 2018  GLVWULEXWLRQ 7KH WD[DEOH WHPSRUDU\ GLNjHUHQFH DVVRFLDWHG ZLWKUHVSHFWWRXQUHPLWWHGUHWDLQHGHDUQLQJVDQGDVVRFLDWHG 2019  IRUHLJQ FXUUHQF\ WUDQVODWLRQ UHVHUYH LV `  0Q DQG 2020  `  0Q DV RI 0DUFK   DQG 0DUFK   2021  UHVSHFWLYHO\ 7KH GLVWULEXWLRQ RI WKH VDPH LV H[SHFWHG WR Thereafter  DWWUDFWWD[LQWKHUDQJHRI1,/WRGHSHQGLQJRQWKHWD[ UDWHVDSSOLFDEOHDVRI0DUFKLQWKHMXULVGLFWLRQLQ 100,284 ZKLFKWKHUHVSHFWLYH*URXSHQWLW\RSHUDWHV

302 Annual Report 2015-16 126-355 Bharti Airtel Limited 02-39 | Corporate Overview 40-125 | Statutory Reports Financial Statements

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14. Property, Plant and Equipment

(` Millions) Particulars Land and Technical Other Advance Total buildings equipment equipment, payments and operating and machinery DQGRDŽFH construction equipment in progress Cost As of April 1, 2014 24,001 1,044,300 84,278 23,398 1,175,977 Additions  -    Disposals / adjustment (702)     -   Transferred to assets held for sale @ (231)   -     Currency translation           5HFODVVLǟFDWLRQ (12)       As of March 31, 2015 22,873 1,035,243 81,197 49,827 1,189,140 Additions 961 -    Acquisition through Business Combinations @@ - 161 1 - 162 Disposals / adjustment (532)     -   Transferred from / to assets held for sale # -  -   Currency translation 9  39 428  5HFODVVLǟFDWLRQ (550)  499   694 As of March 31, 2016 22,761 1,220,713 86,738 47,880 1,378,092 Accumulated Depreciation As of April 1, 2014 6,092 506,248 67,208 - 579,548 Charge    -  Disposals / adjustment (85)     -   Transferred to assets held for sale @ -   - -   Currency translation (899)     -   5HFODVVLǟFDWLRQ (36)   859 - (283) As of March 31, 2015 6,072 535,064 68,847 - 609,983 Charge^    -  Disposals / adjustment (212)     -   Transferred from / to assets held for sale # -  - -  Currency translation (36)   (5) -   5HFODVVLǟFDWLRQ (14) 18 644 - 648 As of March 31, 2016 7,272 645,055 70,952 - 723,279 Net Carrying Amount As of April 1, 2014 17,909 538,052 17,070 23,398 596,429 As of March 31, 2015 16,801 500,179 12,350 49,827 579,157 As of March 31, 2016 15,489 575,658 15,786 47,880 654,813

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Consolidated Financial Statements (IFRS) 303 Transformational Network

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15. Intangible Assets

(` Millions) Licenses Other Advance Total (including acquired Payment and Particulars *RRGZLOO 6RIWZDUH %DQGZLGWK spectrum) intangibles assets under development Cost As of April 1, 2014 471,773 16,283 11,959 297,832 20,413 107,718 925,978 Additions -       Disposals / - - -     -   adjustment ** Transferred to assets - - - (15) - - (15) held for sale @ Currency translation   (116) 17   (712) -   5HFODVVLǟFDWLRQ - (33)   28    As of March 31, 2015 417,460 17,713 16,573 408,398 4,325 165,742 # 1,030,211 Additions -   - 70   Acquisition 314 - - - 128 - 442 through Business Combinations @@ Disposals / -   -   (143) -   adjustment ** Currency translation  103 72  25 75  5HFODVVLǟFDWLRQ - (706) 12  -   (694) As of March 31, 2016 431,018 16,218 19,901 771,197 4,405 50,030 # 1,292,769 Accumulated amortisation As of April 1, 2014 - 11,520 2,845 79,557 19,703 - 113,625 Charge -  908  830 -  Disposals / - - -     -   adjustment ** Transferred to assets - - - (3) - - (3) held for sale @ Currency translation - (134) 85   (627) -   5HFODVVLǟFDWLRQ - 50 123 (5) 115 - 283 As of March 31, 2015 - 14,116 3,961 85,881 1,333 - 105,291 Charge -     -  Disposals / -   -   (119) -   adjustment ** Currency translation - 103 162  4 -  5HFODVVLǟFDWLRQ - (660) 12 - - - (648) As of March 31, 2016 - 12,027 5,342 108,011 2,302 - 127,682 Accumulated impairment As of April 1, 2014 2,637 - - - - - 2,637 As of March 31, 2015 2,637 - - - - - 2,637 As of March 31, 2016 2,637 - - - - - 2,637 Net Carrying Amount As of April 1, 2014 469,136 4,763 9,114 218,275 710 107,718 809,716 As of March 31, 2015 414,823 3,597 12,612 322,517 2,992 165,742 922,283 As of March 31, 2016 428,381 4,191 14,559 663,186 2,103 50,030 1,162,450 * `0QDQG`0QJURVVEORFNDQGDFFXPXODWHGGHSUHFLDWLRQUHVSHFWLYHO\KDVEHHQUHFODVVLnjHGPDLQO\IURPVRIWZDUHWRRWKHUHTXLSPHQWRSHUDWLQJ DQGRǎFHHTXLSPHQWGXULQJWKH\HDUHQGHG0DUFKDQG`0QDQG`0QJURVVEORFNDQGDFFXPXODWHGGHSUHFLDWLRQUHVSHFWLYHO\KDV EHHQUHFODVVLnjHGPDLQO\IURPWHFKQLFDOHTXLSPHQWDQGPDFKLQHU\WREDQGZLGWKGXULQJWKH\HDUHQGHG0DUFK *URVVEORFNDQGDFFXPXODWHGDPRUWLVDWLRQRIOLFHQFHV LQFOXGLQJVSHFWUXP DQGVRIWZDUHKDYHEHHQRNjVHWXSRQEHLQJIXOO\DPRUWLVHG LQFOXGHVDGYDQFHSD\PHQWRI`01DQG`0QWRZDUGVVSHFWUXPDVDW0DUFKDQG0DUFKUHVSHFWLYHO\ ##0DMRUEXVLQHVVDFTXLVLWLRQVH[SODLQHGLQ1RWH #5HIHU1RWH

304 Annual Report 2015-16 126-355 Bharti Airtel Limited 02-39 | Corporate Overview 40-125 | Statutory Reports Financial Statements

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 'XULQJWKH \HDUV HQGHG 0DUFK   DQG 0DUFK LQGXVWU\ DQG FRXQWU\ LQ ZKLFK WKH HQWLW\ RSHUDWHV WKH*URXSKDVFDSLWDOLVHGERUURZLQJFRVWRI DQGDUHFRQVLVWHQWZLWKIRUHFDVWVLQFOXGHGLQLQGXVWU\ `0QDQG0QUHVSHFWLYHO\ reports.  7KH *URXS KDV WDNHQ ERUURZLQJV IURP EDQNV DQG Key assumptions used in value-in-use calculations njQDQFLDO LQVWLWXWLRQV ZKLFK FDUU\ FKDUJH RYHU FHUWDLQ  2SHUDWLQJPDUJLQV (DUQLQJVEHIRUHLQWHUHVWDQG RIWKHDERYHDVVHWV UHIHU1RWHIRUGHWDLOVWRZDUGV taxes) security and pledge).  'LVFRXQWUDWH  :HLJKWHG DYHUDJH UHPDLQLQJ DPRUWLVDWLRQ SHULRG RI  *URZWKUDWHV OLFHQVHDVRI0DUFKDQG0DUFKLV Capital expenditures \HDUVDQG\HDUVUHVSHFWLYHO\ Operating margins: Operating margins have been  ,PSDLUPHQW5HYLHZV HVWLPDWHGEDVHGRQSDVWH[SHULHQFHDIWHUFRQVLGHULQJ  7KH *URXS WHVWV JRRGZLOO IRU LPSDLUPHQW DQQXDOO\ LQFUHPHQWDOUHYHQXHDULVLQJRXWRIDGRSWLRQRIYDOXHG RQ 'HFHPEHU  DQG ZKHQHYHU WKHUH DUH LQGLFDWRUV DGGHG DQG GDWD VHUYLFHV IURP WKH H[LVWLQJ DQG QHZ RI LPSDLUPHQW UHIHU 1RWH   ,PSDLUPHQW WHVWLQJ LV FXVWRPHUV WKRXJK WKHVH EHQHnjWV DUH SDUWLDOO\ RNjVHW SHUIRUPHG DW WKH OHYHO RI HDFK &DVK *HQHUDWLQJ 8QLW E\ GHFOLQH LQ WDULNjV LQ D K\SHU FRPSHWLWLYH VFHQDULR Š&*8š  RU JURXSV RI &*8V H[SHFWHG WR EHQHnjW IURP 0DUJLQVZLOOEHSRVLWLYHO\LPSDFWHGIURPWKHHǎFLHQFLHV DFTXLVLWLRQUHODWHGV\QHUJLHVDQGUHSUHVHQWWKHORZHVW DQGLQLWLDWLYHVGULYHQE\WKH&RPSDQ\DWWKHVDPHWLPH OHYHOZLWKLQWKHHQWLW\DWZKLFKWKHJRRGZLOOLVPRQLWRUHG IDFWRUVOLNHKLJKHUFKXUQLQFUHDVHGFRVWRIRSHUDWLRQV IRULQWHUQDOPDQDJHPHQWSXUSRVHVZLWKLQDQRSHUDWLQJ may impact the margins negatively. VHJPHQW7KHLPSDLUPHQWDVVHVVPHQWLVEDVHGRQYDOXH Discount rate: 'LVFRXQW UDWH UHǍHFWV WKH FXUUHQW LQXVHFDOFXODWLRQVH[FHSWLQFDVHRI0RELOH6HUYLFHVŞ PDUNHW DVVHVVPHQW RI WKH ULVNV VSHFLnjF WR D &*8 RU %DQJODGHVK ZKHUH IDLUYDOXH OHVV FRVW WR VHOO LV XVHG JURXSRI&*8V7KHGLVFRXQWUDWHLVHVWLPDWHGEDVHGRQ LQYLHZRIWKHLPSHQGLQJPHUJHURI$LUWHO%DQJODGHVK WKHZHLJKWHGDYHUDJHFRVWRIFDSLWDOIRUUHVSHFWLYH&*8 /LPLWHGZLWK5REL$[LDWD/LPLWHG UHIHU1RWH F  RU JURXS RI &*8V 3UHWD[ GLVFRXQW UDWH XVHG UDQJHG  'XULQJ WKH \HDU WKH WHVWLQJ GLG QRW UHVXOW LQ DQ\ IURPWR KLJKHUUDWHXVHGIRU&*8JURXS LPSDLUPHQWLQWKHFDUU\LQJDPRXQWRIJRRGZLOO Š0RELOH6HUYLFHVŞ$IULFDš IRUWKH\HDUHQGHG0DUFK  DQG UDQJHG IURP  WR  KLJKHU UDWH  7KHFDUU\LQJDPRXQWRIJRRGZLOOKDVEHHQDOORFDWHGWR XVHGIRU&*8JURXSŠ0RELOH6HUYLFHVŞ$IULFDš IRUWKH WKHIROORZLQJ&*8*URXSRI&*8V \HDUHQGHG0DUFK (` Millions) *URZWKUDWHV 7KHJURZWKUDWHVXVHGDUHLQOLQHZLWK As of As of WKHORQJWHUPDYHUDJHJURZWKUDWHVRIWKHUHVSHFWLYH Particulars March March LQGXVWU\DQGFRXQWU\LQZKLFKWKHHQWLW\RSHUDWHVDQG 31, 2016 31, 2015 DUHFRQVLVWHQWZLWKWKHIRUHFDVWVLQFOXGHGLQWKHLQGXVWU\ Mobile Services - India   UHSRUWV7KHDYHUDJHJURZWKUDWHVXVHGLQH[WUDSRODWLQJ FDVK ǍRZV EH\RQG WKH SODQQLQJ SHULRG UDQJHG IURP Mobile Services -   WR KLJKHUUDWHXVHGIRU&*8JURXSŠ0RELOH Bangladesh 6HUYLFHVŞ$IULFDš&*8 IRUWKH\HDUHQGHG0DUFK Airtel business   DQGUDQJHGIURPWR KLJKHUUDWHXVHG Mobile Services - Africa   IRU&*8JURXSŠ0RELOH6HUYLFHVŞ%DQJODGHVKš&*8 IRU Telemedia Services 344 344 WKH\HDUHQGHG0DUFK Total 428,381 414,823 Capital expenditures:  7KH FDVK ǍRZ IRUHFDVWV RI capital expenditure are based on past experience  7KHPHDVXUHPHQW RI WKH IDLU YDOXH OHVV FRVW WR VHOO FRXSOHG ZLWK DGGLWLRQDO FDSLWDO H[SHQGLWXUH UHTXLUHG LQ FDVH RI 0RELOH 6HUYLFHV Ş %DQJODGHVK KDV EHHQ IRUUROORXWRILQFUHPHQWDOFRYHUDJHUHTXLUHPHQWVDQG GHWHUPLQHGEDVHGRQWKHIDLUYDOXHRIVWDNH EDVLV to provide enhanced voice and data services adjusted year plan) to be received by the Group in the merged ZKHUHDSSOLFDEOHIRUWKHLPSDFWRISURSRVHGGLYHVWPHQW HQWLW\ LHFRPELQHGHQWLW\DIWHUPHUJHURI5REL$[LDWD RIWRZHUVLQ$IULFD /LPLWHGDQG$LUWHO%DQJODGHVK/LPLWHG LQFRQVLGHUDWLRQ RIFRQWULEXWLRQWRPHUJHGHQWLW\7KHPHDVXUHPHQWRIDOO Sensitivity to changes in assumptions other cash generating units’ value in use is determined  :LWK UHJDUG WR WKH DVVHVVPHQW RI YDOXHLQXVH IRU EDVHG RQ WHQ \HDU njQDQFLDO SODQV SODQQLQJ SHULRG  0RELOH6HUYLFHVŞ,QGLD7HOHPHGLD6HUYLFHVDQG$LUWHO that have been approved by management and are %XVLQHVV DQG IDLU YDOXH OHVV FRVW WR VHOO LQ 0RELOH DOVR XVHG IRU LQWHUQDO SXUSRVHV 7KH SODQQLQJ KRUL]RQ 6HUYLFHVŞ%DQJODGHVKQRUHDVRQDEO\SRVVLEOHFKDQJH UHǍHFWVWKHDVVXPSWLRQVIRUVKRUWWRPLGWHUPPDUNHW LQ DQ\ RI WKH DERYH NH\ DVVXPSWLRQV ZRXOG FDXVH GHYHORSPHQWV&DVKǍRZVEH\RQGWKHSODQQLQJSHULRG WKH FDUU\LQJ DPRXQW RI WKHVH XQLWV WR H[FHHG WKHLU DUH H[WUDSRODWHG XVLQJ DSSURSULDWH WHUPLQDO JURZWK UHFRYHUDEOHDPRXQW)RU0RELOH6HUYLFHV$IULFD&*8 UDWHV 7KH WHUPLQDO JURZWK UDWHV XVHG GR QRW H[FHHG group, the recoverable amount exceeds the carrying WKH ORQJ WHUP DYHUDJH JURZWK UDWHV RI WKH UHVSHFWLYH DPRXQW E\ DSSUR[LPDWHO\  DV RI 'HFHPEHU 

Consolidated Financial Statements (IFRS) 305 Transformational Network

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 DQG DSSUR[LPDWHO\  DV RI 'HFHPEHU   7KHDPRXQWVUHFRJQLVHGLQWKHFRQVROLGDWHGVWDWHPHQW $QLQFUHDVHRI 'HFHPEHU  RInjQDQFLDOSRVLWLRQDUHDVIROORZV in discount rate shall equate the recoverable amount (` Millions) ZLWK WKH FDUU\LQJ DPRXQW RI WKH 0RELOH 6HUYLFHV Ş As of As of $IULFD &*8 JURXS DV RI 'HFHPEHU   )XUWKHU Particulars March 31, March 31, IRU0RELOH6HUYLFHVŞ$IULFD&*8JURXSQRUHDVRQDEO\ 2016 2015 SRVVLEOHFKDQJHLQWKHWHUPLQDOJURZWKUDWHEH\RQGWKH SODQQLQJKRUL]RQZRXOGFDXVHWKHFDUU\LQJDPRXQWWR -RLQW9HQWXUHV   exceed the recoverable amount. Associates - - 17. Investment in Associates, Joint ventures and Total 55,817 46,257 Subsidiaries 17.1 Investments accounted for using the equity 7KH DPRXQWV UHFRJQLVHG LQ WKH FRQVROLGDWHG LQFRPH method VWDWHPHQWDUHDVIROORZV  7KH*URXSšVLQWHUHVWVLQ-RLQW9HQWXUHVDQGDVVRFLDWHV (` Millions) DUH DFFRXQWHG IRU XVLQJ WKH HTXLW\ PHWKRG RI Year ended Year ended DFFRXQWLQJ 7KH GHWDLOV 3ULQFLSDO SODFH RI RSHUDWLRQ Particulars March 31, March 31, FRXQWU\ RI LQFRUSRUDWLRQ SULQFLSDO DFWLYLWLHV DQG 2016 2015 SHUFHQWDJH RI RZQHUVKLS LQWHUHVW DQG YRWLQJ SRZHU -RLQW9HQWXUHV   GLUHFWLQGLUHFW KHOGE\WKH*URXS RI-RLQW9HQWXUHV DQG$VVRFLDWHVDUHVHWRXWLQ1RWH Associates - (53) Total 9,654 7,223

17.1.1 Investments in Joint Ventures  D ,QYHVWPHQWVLQ,QGXV7RZHUV/LPLWHG 6XPPDULVHGnjQDQFLDOLQIRUPDWLRQRI,QGXV7RZHUV/LPLWHGEDVHGRQLWV,)56njQDQFLDOVWDWHPHQWVDQGUHFRQFLOLDWLRQZLWKWKH FDUU\LQJDPRXQWRIWKHLQYHVWPHQWLQFRQVROLGDWHGnjQDQFLDOVWDWHPHQWVLVDVIROORZV Summarised Information on Statement of Financial Position (` Millions) As of As of Particulars March 31, 2016 March 31, 2015 Assets Non Current Assets 241,432 243,926 Current Assets Cash and cash Equivalents 753 533 Other Current Assets (Excluding cash and cash equivalents)   Total Current Assets 18,309 19,401 Liabilities Non Current Liabilities Non Current Financial Liabilities (Other than trade and other payables   and provisions) - Loans and borrowings Other Non Current Liabilities   Total Non Current Liabilities 54,532 63,258 Current Liabilities Current Financial Liabilities (Other than trade and other payables and   provisions) - Loans and borrowings Other Current Liabilities   Total Current Liabilities 38,225 53,653 Equity   Percentage of Group's ownership interest 42% 42% ,QWHUHVWLQ-RLQW9HQWXUH   )DLUYDOXDWLRQDGMXVWPHQWZLWKUHJDUGWRSURSHUW\SODQWDQGHTXLSPHQW     on consolidation (net of depreciation impact thereon `0Q 0DUFK`0Q Other fair value adjustments on consolidation     Carrying amount of investment  

306 Annual Report 2015-16 126-355 Bharti Airtel Limited 02-39 | Corporate Overview 40-125 | Statutory Reports Financial Statements

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Summarised Information on Income Statement

(` Millions) Year ended Year ended Particulars March 31, 2016 March 31, 2015 Revenue   Depreciation and amortisation   Finance income (including Interest income of ` 697 Mn 772 802 0DUFK` 394 Mn)) Finance cost (including Interest expense of `0Q   0DUFK`0Q Income tax expense   3URǂWIRUWKH\HDU 20,568 14,927 Percentage of Group's ownership interest 42% 42% *URXS VVKDUHLQ-RLQW9HQWXUH VSURǟWIRUWKH\HDU   Consolidation adjustments   *URXS VVKDUHLQ-RLQWYHQWXUHV SURǟWUHFRJQLVHG   'LYLGHQGUHFHLYHGIURP-RLQWYHQWXUH - 

17.1.1 (b) Information of other joint ventures $JJUHJDWHLQIRUPDWLRQRIMRLQWYHQWXUHVWKDWDUHQRWLQGLYLGXDOO\PDWHULDOLVDVIROORZV (` Millions) As of As of Particulars March 31, 2016 March 31, 2015 Carrying amount of investment 43 123 Cumulative unrecognised losses 2 2

(` Millions) Year ended Year ended Group’s share in joint ventures March 31, 2016 March 31, 2015 1HWSURǟW ORVV 14 5 Other comprehensive income 2 4 Total comprehensive income 16 9 Unrecognised losses - 2 5HIHU1RWHIRU*URXSšVVKDUHRIMRLQWYHQWXUHVFRPPLWPHQWVDQGFRQWLQJHQFLHV

17.1.2 Investments in Associates   7KH *URXS GRHV QRW KDYH DQ\ LQGLYLGXDOO\ PDWHULDO DVVRFLDWH $JJUHJDWH LQIRUPDWLRQ RI DVVRFLDWHV WKDW DUH QRW LQGLYLGXDOO\PDWHULDOLVDVIROORZV

(` Millions) As of As of Particulars March 31, 2016 March 31, 2015 Carrying amount of investment - - Cumulative unrecognised losses  

(` Millions) Year ended Year ended Group’s share in associates’ March 31, 2016 March 31, 2015 1HWSURǟW ORVV (206) (284) Other comprehensive income / (loss) - (34) Total comprehensive income / (loss) (206) (318) Unrecognised losses 206 231 5HIHU1RWHIRU*URXSšVVKDUHRIDVVRFLDWHVFRPPLWPHQWV

Consolidated Financial Statements (IFRS) 307 Transformational Network

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17.2 Investments in Subsidiaries  7KHGHWDLOV 3ULQFLSDOSODFHRIRSHUDWLRQFRXQWU\RILQFRUSRUDWLRQSULQFLSDODFWLYLWLHVDQGSHUFHQWDJHRIRZQHUVKLS LQWHUHVWDQGYRWLQJSRZHU GLUHFWLQGLUHFW KHOGE\WKH*URXS RIVXEVLGLDULHVDUHVHWRXWLQ1RWH   6XPPDULVHGnjQDQFLDOLQIRUPDWLRQRIVXEVLGLDULHV LQFOXGLQJIDLUYDOXDWLRQDGMXVWPHQWVPDGHDWWKHWLPHRIDFTXLVLWLRQ LIDQ\ KDYLQJPDWHULDOQRQFRQWUROOLQJLQWHUHVWVLVDVIROORZV (` Millions) Bharti Infratel Bharti Hexacom $LUWHO1HWZRUNV Limited* Limited Limited Particulars As of As of As of As of As of As of March 31, March 31, March 31, March 31, March 31, March 2016 2015 2016 2015 2016 31, 2015 Assets Non Current Assets       Current Assets       Liabilities Non Current Liabilities       Current Liabilities       Equity        Percentage of ownership interest 28.24% 28.12% 30.00% 30.00% 20.94% 20.94% held by non-controlling interests Accumulated Non-controlling        interests

(` Millions) Bharti Infratel Bharti Hexacom $LUWHO1HWZRUNV Limited* Limited Limited Particulars Year Year Year Year Year Year ended ended ended ended ended ended March 31, March 31, March 31, March 31, March 31, March 2016 2015 2016 2015 2016 31, 2015 Revenue       1HW3URǟW ORVV        Other Comprehensive Income 6 (2) (2) (1)    Total Comprehensive Income        3URǟW ORVV DOORFDWHGWR1RQ        controlling interests

(` Millions) Bharti Infratel Bharti Hexacom $LUWHO1HWZRUNV Limited* Limited Limited Particulars Year Year Year Year Year Year ended ended ended ended ended ended March 31, March 31, March 31, March 31, March 31, March 2016 2015 2016 2015 2016 31, 2015 1HWFDVKLQǠRZ RXWǠRZ IURP       operating activities 1HWFDVKLQǠRZ RXWǠRZ IURP           investing activities 1HWFDVKLQǠRZ RXWǠRZ IURP            ǟQDQFLQJDFWLYLWLHV 1HWFDVKLQǠRZ RXWǠRZ  (410) (241) (246)  (732) Dividend paid to Non-controlling   325 175 - - interests (including tax) %DVHGRQFRQVROLGDWHGnjQDQFLDOVWDWHPHQWVDOVRUHIHU1RWH F 

308 Annual Report 2015-16 126-355 Bharti Airtel Limited 02-39 | Corporate Overview 40-125 | Statutory Reports Financial Statements

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18. Derivative Financial Instruments  7KH*URXS XVHV IRUHLJQ H[FKDQJH RSWLRQ FRQWUDFWV VZDS FRQWUDFWV IRUZDUG FRQWUDFWV DQG LQWHUHVW UDWH VZDSV WR PDQDJHVRPHRILWVWUDQVDFWLRQH[SRVXUHV7KHVHGHULYDWLYHLQVWUXPHQWV H[FHSWIRUFHUWDLQLQWHUHVWUDWHVZDSVUHIHU EHORZŠ+HGJLQJLQVWUXPHQWVš DUHQRWGHVLJQDWHGDVFDVKǍRZIDLUYDOXHRUQHWLQYHVWPHQWKHGJHVDQGDUHHQWHUHGLQWR IRUSHULRGVFRQVLVWHQWZLWKFXUUHQF\DQGLQWHUHVWH[SRVXUHV  7KHGHWDLOVRIGHULYDWLYHnjQDQFLDOLQVWUXPHQWVDUHDVIROORZV (` Millions) As of As of Particulars March 31, 2016 March 31, 2015 Assets &XUUHQF\VZDSVIRUZDUGDQGRSWLRQFRQWUDFWV  280 Interest rate swaps   Embedded derivatives 431  18,764 8,510 Liabilities &XUUHQF\VZDSVIRUZDUGDQGRSWLRQFRQWUDFWV  381 Interest rate swaps - 73 Embedded derivatives 843 338 1,939 792 Bifurcation of above derivative instruments into current and non current 1RQFXUUHQWGHULYDWLYHǟQDQFLDODVVHWV   &XUUHQWGHULYDWLYHǟQDQFLDODVVHWV   1RQFXUUHQWGHULYDWLYHǟQDQFLDOOLDELOLWLHV (8) (164) &XUUHQWGHULYDWLYHǟQDQFLDOOLDELOLWLHV   (628) 16,825 7,718

Embedded Derivative 7KH *URXS HQWHUHG LQWR DJUHHPHQWV GHQRPLQDWHGGHWHUPLQHG LQ IRUHLJQ FXUUHQFLHV 7KH YDOXH RI WKHVH FRQWUDFWV FKDQJHVLQUHVSRQVHWRWKHFKDQJHVLQVSHFLnjHGIRUHLJQFXUUHQFLHV6RPHRIWKHVHFRQWUDFWVKDYHHPEHGGHGIRUHLJQ FXUUHQF\GHULYDWLYHVKDYLQJHFRQRPLFFKDUDFWHULVWLFVDQGULVNVWKDWDUHQRWFORVHO\UHODWHGWRWKRVHRIWKHKRVWFRQWUDFWV 7KHVHHPEHGGHGIRUHLJQFXUUHQF\GHULYDWLYHVKDYHEHHQVHSDUDWHGDQGFDUULHGDWIDLUYDOXHWKURXJKSURnjWRUORVV

19. Other Financial Assets (a) Non-current (` Millions) As of As of Particulars March 31, 2016 March 31, 2015 Security deposits   Restricted cash   Rent equalisation   Claims recoverable   Receivable in respect of tower sale  - Others 344  Total 27,451 16,018 6HFXULW\GHSRVLWVSULPDULO\LQFOXGHVHFXULW\GHSRVLWVJLYHQWRZDUGVUHQWHGSUHPLVHVFHOOVLWHVLQWHUFRQQHFWSRUWVDQG other miscellaneous deposits. 7KH*URXSKDVWDNHQERUURZLQJVIURPEDQNVDQGnjQDQFLDOLQVWLWXWLRQV'HWDLOVWRZDUGVVHFXULW\DQGSOHGJHRIWKHDERYH DVVHWVDUHJLYHQXQGHU1RWH 5HVWULFWHG FDVK UHSUHVHQWV DPRXQW JLYHQ DV FROODWHUDO IRU OHJDO FDVHV RUDQGEDQN JXDUDQWHHV IRU GLVSXWHG PDWWHUV LVVXHGLQXVXDOFRXUVHRIEXVLQHVV

Consolidated Financial Statements (IFRS) 309 Transformational Network

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(b) Current (` Millions) As of As of Particulars March 31, 2016 March 31, 2015 Restricted Cash   Total 14,626 10,075 5HVWULFWHG FDVK UHSUHVHQWV DPRXQW JLYHQ DV FROODWHUDO IRU OHJDO FDVHV RUDQGEDQN JXDUDQWHHV IRU GLVSXWHG PDWWHUV LVVXHGLQXVXDOFRXUVHRIEXVLQHVVDQGFDVKUHFHLYHGIURPVXEVFULEHUVRI0RELOH&RPPHUFH6HUYLFHV

 2WKHU1RQǂQDQFLDO$VVHWV1RQFXUUHQW (` Millions) As of As of Particulars March 31, 2016 March 31, 2015 )DLUYDOXDWLRQDGMXVWPHQWVǟQDQFLDODVVHWV   Advances   Others 847 803 Total 30,043 28,383  )DLUYDOXDWLRQRInjQDQFLDODVVHWVUHSUHVHQWVXQDPRUWLVHGSRUWLRQRIWKHGLNjHUHQFHEHWZHHQWKHIDLUYDOXHRIWKHnjQDQFLDO assets (security deposits) on initial recognition and the amount paid.  $GYDQFHVUHSUHVHQWSD\PHQWVPDGHWRYDULRXV*RYHUQPHQWDXWKRULWLHVXQGHUSURWHVWDQGDUHGLVFORVHGQHWRISURYLVLRQ RI`0QDQG`0QDVRI0DUFKDQG0DUFKUHVSHFWLYHO\

21. Inventories (` Millions) As of As of Particulars March 31, 2016 March 31, 2015 Transmission equipment 222 160 Handsets  949 Others 146 230 Total 1,692 1,339  7KH*URXSKDVWDNHQERUURZLQJVIURPEDQNVDQGnjQDQFLDOLQVWLWXWLRQV'HWDLOVWRZDUGVVHFXULW\DQGSOHGJHRIWKHDERYH DVVHWVDUHJLYHQXQGHU1RWH

22. Trade and Other Receivables (` Millions) As of As of Particulars March 31, 2016 March 31, 2015 Trade receivable*   /HVV$OORZDQFHIRUGRXEWIXOGHEWV     Total Trade receivables 65,949 62,204 Other receivables Due from related party 291 224 Receivables from joint ventures 26 236 Interest accrued on investments  68 Claim receivables   Others 135 39 Total 73,106 67,252

310 Annual Report 2015-16 126-355 Bharti Airtel Limited 02-39 | Corporate Overview 40-125 | Statutory Reports Financial Statements

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 0RYHPHQWLQDOORZDQFHVIRUGRXEWIXOGHEWV (` Millions) For the year ended For the year ended Particulars March 31, 2016 March 31, 2015 Balance, beginning of the year   Additions - Allowance for the year #   Currency translation adjustment    Application - :ULWHRNjRIEDGGHEWV QHWRIUHFRYHU\     Balance, end of the year 35,080 27,795  7UDGHUHFHLYDEOHVLQFOXGHXQELOOHGUHFHLYDEOHV  LQFOXGHVH[FHSWLRQDOLWHPRI`0Q UHIHUQRWH L  H IRUWKH\HDUHQGHG0DUFK  7KH*URXSKDVWDNHQERUURZLQJVIURPEDQNVDQGnjQDQFLDOLQVWLWXWLRQVZKLFKFDUU\FKDUJHRYHUFHUWDLQRIWKHDERYH DVVHWV'HWDLOVWRZDUGVVHFXULW\DQGSOHGJHRIWKHDERYHDVVHWVDUHJLYHQXQGHU1RWH  5HIHU1RWHRQFUHGLWULVNRIWUDGHUHFHLYDEOHV

23. Prepayments and Other Assets (` Millions) As of As of Particulars March 31, 2016 March 31, 2015 Prepaid expenses   Employee receivables 976 847 Advances to Suppliers   Taxes receivable   Others 524  Total 48,832 31,828 (PSOR\HHUHFHLYDEOHVSULQFLSDOO\FRQVLVWRIDGYDQFHVJLYHQIRUEXVLQHVVSXUSRVHV $GYDQFHWR6XSSOLHUVDUHGLVFORVHGQHWRISURYLVLRQRI`0QDQG`0QDVRI0DUFKDQG0DUFK UHVSHFWLYHO\ 7D[HVUHFHLYDEOHVLQFOXGHFXVWRPVGXW\H[FLVHGXW\VHUYLFHWD[VDOHVWD[DQGRWKHUUHFRYHUDEOH

24. Other Investments (a) Non-current (` Millions) As of As of Particulars March 31, 2016 March 31, 2015 Held for trading securities - quoted *   'HVLJQDWHGDWIDLUYDOXHWKURXJKSURǟWRUORVVTXRWHG   ,QYHVWPHQWFODVVLǟHGDV$YDLODEOHIRUVDOH  - Total 28,622 31,260 ,QFOXGHLQYHVWPHQWVUHFODVVLnjHGIURPFXUUHQWLQYHVWPHQWVWRQRQFXUUHQWLQYHVWPHQWVEDVLVWKHIXWXUHXWLOLVDWLRQSODQRIIXQGV

Consolidated Financial Statements (IFRS) 311 Transformational Network

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(b) Current (` Millions) As of As of Particulars March 31, 2016 March 31, 2015 Held for trading securities - quoted   'HVLJQDWHGDWIDLUYDOXHWKURXJKSURǟWRUORVVTXRWHG -  /RDQVDQGUHFHLYDEOHVǟ[HGGHSRVLWVZLWKEDQNV   Total 30,059 92,840 7KHPDUNHWYDOXHVRITXRWHGLQYHVWPHQWVZHUHDVVHVVHGRQWKHEDVLVRIWKHTXRWHGSULFHVDVDWWKHGDWHRIVWDWHPHQW RInjQDQFLDOSRVLWLRQ+HOGIRUWUDGLQJLQYHVWPHQWVSULPDULO\FRPSULVHVGHEWOLQNHGPXWXDOIXQGVDQGTXRWHGOLTXLGGHEW LQVWUXPHQWVLQZKLFKWKH*URXSLQYHVWVVXUSOXVIXQGVWRPDQDJHOLTXLGLW\DQGZRUNLQJFDSLWDOUHTXLUHPHQWV,QYHVWPHQWV GHVLJQDWHGDWIDLUYDOXHWKURXJKSURnjWRUORVVFRPSULVHVLQYHVWPHQWVLQGHEWOLQNHGPXWXDOIXQGV 7KH*URXSKDVWDNHQERUURZLQJVIURPEDQNVDQGnjQDQFLDOLQVWLWXWLRQVZKLFKFDUU\FKDUJHRYHUFHUWDLQRIWKHDERYH DVVHWV'HWDLOVWRZDUGVVHFXULW\DQGSOHGJHRIWKHDERYHDVVHWVDUHJLYHQXQGHU1RWH

25. Cash and Cash Equivalents (` Millions) As of As of Particulars March 31, 2016 March 31, 2015 Cash and bank balances   Fixed deposits with banks   Total 37,087 11,719

)RUWKHSXUSRVHRIWKHFRQVROLGDWHGFDVKǍRZVWDWHPHQWFDVKDQGFDVKHTXLYDOHQWVFRPSULVHRIIROORZLQJ

(` Millions) As of As of Particulars March 31, 2016 March 31, 2015 Cash and bank balances   Fixed deposits with banks   $GG,QFOXGHGLQWKHDVVHWVRIWKHGLVSRVDOJURXS - 73 /HVV%DQNRYHUGUDIW UHIHU1RWH     Total 17,635 (1,415)

312 Annual Report 2015-16 126-355 Bharti Airtel Limited 02-39 | Corporate Overview 40-125 | Statutory Reports Financial Statements

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 %RUURZLQJV 26.1 Long Term Debts (` Millions) As of As of Particulars March 31, 2016 March 31, 2015 Secured Term loans   Others 20 19 Total 26,299 68,962 /HVV&XUUHQWSRUWLRQ UHIHUQRWH     Total secured loans, net of current portion 18,756 31,639 Unsecured Term loans #   Non-convertible bonds (refer note 26.6) @   Total 525,469 508,030 /HVV&XUUHQWSRUWLRQ UHIHUQRWH     Total unsecured loans, net of current portion 508,585 420,644 Total 527,341 452,283 @ Increased by `0QDQG`0QDVRI0DUFKDQG0DUFKUHVSHFWLYHO\IRUWKHLPSDFWRIFKDQJHLQIDLUYDOXHZLWKUHVSHFW WRWKHKHGJHGULVN ,QFOXGHVUHERUURZDEOHWHUPORDQVRI`0QDQG`1LODVRI0DUFKDQG0DUFKUHVSHFWLYHO\ZKLFKKDYHGDLO\SUHSD\PHQWǍH[LELOLW\ 26.2 Short Term Debts and Current Portion of Long Term Debts (` Millions) As of As of Particulars March 31, 2016 March 31, 2015 Secured Term loans   Bank overdraft 513 987 Total 17,678 11,383 $GG&XUUHQWSRUWLRQRIORQJWHUPGHEWV UHIHUQRWH   Total secured loans, including current portion 25,221 48,706 Unsecured Term Loans   Bank overdraft   Total 39,560 75,297 $GG&XUUHQWSRUWLRQRIORQJWHUPGHEWV UHIHUQRWH   Total unsecured loans, including current portion 56,444 162,683 Total 81,665 211,389

26.3 7KH*URXSERUURZHG`0QDQG`0QGXULQJWKH\HDUHQGHG0DUFKDQG0DUFK UHVSHFWLYHO\ LQFOXGLQJDPRXQWUHFHLYHGDJDLQVWQRQFRQYHUWLEOHERQGVGXULQJWKH\HDUHQGHG0DUFKDQG 0DUFKUHIHUQRWHEHORZ 7KH*URXSUHSDLGERUURZLQJVRI`0QDQG`0QGXULQJWKH \HDUHQGHG0DUFKDQG0DUFKUHVSHFWLYHO\2WKHUVKRUWWHUPERUURZLQJV QHWSURFHHGV  RULJLQDO maturity upto three months) amounted to `0QDQG`0QGXULQJWKH\HDUHQGHG0DUFKDQG 0DUFKUHVSHFWLYHO\

Consolidated Financial Statements (IFRS) 313 Transformational Network

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 $QDO\VLVRI%RUURZLQJV  7KHGHWDLOVJLYHQEHORZDUHJURVVRIGHEWRULJLQDWLRQFRVWDQGIDLUYDOXDWLRQDGMXVWPHQWVZLWKUHVSHFWWRWKHKHGJHG ULVN 0DWXULW\RIERUURZLQJV  7KHWDEOH EHORZ VXPPDULVHV WKH PDWXULW\ SURnjOH RI WKH *URXSšV ERUURZLQJV EDVHG RQ FRQWUDFWXDO XQGLVFRXQWHG payments. (` Millions) As of As of Particulars March 31, 2016 March 31, 2015 Within one year   Between one and two years   %HWZHHQWZRDQGǟYH\HDUV   2YHUǟYH\HDUV   Total 599,562 664,631

,QWHUHVWUDWH FXUUHQF\RIERUURZLQJV   7KHEHORZGHWDLOVGRQRWQHFHVVDULO\UHSUHVHQWVIRUHLJQFXUUHQF\RULQWHUHVWUDWHH[SRVXUHWRWKHLQFRPHVWDWHPHQW VLQFHWKH*URXSKDVWDNHQGHULYDWLYHVIRURNjVHWWLQJWKHIRUHLJQFXUUHQF\ LQWHUHVWUDWHH[SRVXUH)RUIRUHLJQFXUUHQF\ DQGLQWHUHVWUDWHVHQVLWLYLW\UHIHU1RWH (` Millions) Particulars 7RWDOERUURZLQJV )ORDWLQJUDWHERUURZLQJV )L[HGUDWHERUURZLQJV INR   20 USD    Euro    CHF  -  NGN   - XAF  -  XOF  -  BDT  513  Others    March 31, 2016 599,562 173,078 426,484 INR   19 USD    Euro    CHF  -  NGN   441 XAF  -  XOF  -  BDT  242  Others    March 31, 2015 664,631 332,325 332,306

314 Annual Report 2015-16 126-355 Bharti Airtel Limited 02-39 | Corporate Overview 40-125 | Statutory Reports Financial Statements

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26.5 Other Loans  2WKHUVLQFOXGHYHKLFOHORDQVWDNHQIURPEDQNVZKLFKZHUHVHFXUHGE\K\SRWKHFDWLRQRIWKHYHKLFOHV`0QDQG` 0QDVRI0DUFKDQG0DUFKUHVSHFWLYHO\  7KHDPRXQWVSD\DEOHIRUWKHVHREOLJDWLRQVH[FOXGLQJLQWHUHVWH[SHQVHLV`0QDQG`0QIRUWKH\HDUVHQGLQJRQ 0DUFKDQGUHVSHFWLYHO\ 26.6 7KH&RPSDQ\LVVXHGVHQLRUXQVHFXUHGQRWHV 1RQFRQYHUWLEOHERQGVRU1RWHV GXULQJWKH\HDUHQGHG0DUFK DQG%KDUWL$LUWHO,QWHUQDWLRQDO 1HWKHUODQGV %9DVXEVLGLDU\RIWKH&RPSDQ\LVVXHGVHQLRUXQVHFXUHGJXDUDQWHHG QRWHV 1RQFRQYHUWLEOHERQGVRU1RWHV GXULQJWKH\HDUHQGHG0DUFK7KH1RWHVLVVXHGE\%KDUWL$LUWHO ,QWHUQDWLRQDO 1HWKHUODQGV %9DUHJXDUDQWHHGE\WKH&RPSDQ\ During the year ended March 31, 2016: Issue price Due in Listed on stock exchange 86'0Q `0Q 99.304% 2025 Singapore

During the year ended March 31, 2015: Issue price Due in Listed on stock exchange 86'0Q `0Q 99.916% 2024 Singapore / Frankfurt 3.375% Euro 750 Mn (`0Q 99.248% 2021 Singapore / Frankfurt

26.7 &RQVLGHULQJ WKH XWLOLVDWLRQ SODQ RI WKH H[SHFWHG VDOH FRQVLGHUDWLRQ UHFHLYDEOH IURP WKH KLJKO\ SUREDEOH IRUHFDVWHG WUDQVDFWLRQUHODWLQJWRWKHVDOHRIWHOHFRPWRZHUV 5HIHU1RWH WKH*URXSKDGUHFODVVLnjHG`0QIURPţ/RQJ WHUPGHEWVŤWRţ6KRUWWHUPGHEWVDQGFXUUHQWSRUWLRQRIORQJWHUPGHEWVŤGXULQJWKH\HDUHQGHG0DUFK

Consolidated Financial Statements (IFRS) 315 Transformational Network

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26.8 Security Details   7KH *URXS KDV WDNHQ ERUURZLQJV LQ YDULRXV FRXQWULHV WRZDUGV IXQGLQJ RI LWV DFTXLVLWLRQ DQG ZRUNLQJ FDSLWDO UHTXLUHPHQWV7KHERUURZLQJVFRPSULVHRIIXQGLQJDUUDQJHPHQWVZLWKYDULRXVEDQNVDQGnjQDQFLDOLQVWLWXWLRQVWDNHQ E\WKH3DUHQWDQGVXEVLGLDULHV7KHGHWDLOVRIVHFXULW\SURYLGHGE\WKH*URXSLQYDULRXVFRXQWULHVWRYDULRXVEDQNVRQ WKHDVVHWVRI3DUHQWDQGVXEVLGLDULHVDUHDVIROORZV (` Millions) Entity Relation Outstanding loan amount As of March As of March Security Detail 31, 2016 31, 2015 Bharti Airtel Ltd Parent 20 19 Hypothecation of vehicles L 'HHGRI+\SRWKHFDWLRQE\ZD\RIǟ[HGFKDUJH FUHDWLQJDǟUVWUDQNLQJSDULSDVVXǟ[HGFKDUJH over listed machinery and equipment of the FRPSDQ\ IDYRXULQJ WKH %DQN  ),,V LQYHVWRUV DQG WKH 2NjVKRUH 6HFXULW\ $JHQW DQG ǟOHG ZLWK WKH 5HJLVWUDU RI -RLQW 6WRFN &RPSDQLHV 7KLUG 0RGLǟFDWLRQWR'HHGRI+\SRWKHFDWLRQIRU(.1 (.16&%0DXULWLXV +')&/RDQIDFLOLWLHV

LL  'HHG RI +\SRWKHFDWLRQ E\ ZD\ RI ǠRDWLQJ FKDUJHFUHDWLQJDǟUVWUDQNLQJSDULSDVVXǠRDWLQJ FKDUJH RYHU SODQW PDFKLQHU\ DQG HTXLSPHQW ERWK SUHVHQW DQG IXWXUH H[FOXGLQJ PDFKLQHU\ and equipment covered under the foregoing 'HHGRI+\SRWKHFDWLRQE\ZD\RIǟ[HGFKDUJH DQG  D ǟUVWUDQNLQJ SDUL SDVVX ǠRDWLQJ FKDUJH RYHU DOO FXUUHQW DVVHWV RI WKH FRPSDQ\ ERWK SUHVHQW DQG IXWXUH LQFOXGLQJ EXW QRW OLPLWHG WR VWRFNERRNGHEWVUHFHLYDEOHVDQGDFFRXQWVRI WKHFRPSDQ\HQWHUHGLQWRRUWREHHQWHUHGLQWR E\WKHFRPSDQ\IDYRXULQJWKH%DQN),,V)DFLOLW\ ,QYHVWRUVDQG2NjVKRUH6HFXULW\$JHQWDQGǟOHG Airtel Subsidiary   ZLWKWKH5HJLVWUDURI-RLQW6WRFN&RPSDQLHVIRU Bangladesh Ltd (.1(.16&%0DXULWLXV +')&ORDQIDFLOLW\

(iii) Corporate Guarantee by BAHSPL (Bharti Airtel Holdings Pte. Ltd.) to Airtel %DQJODGHVK /LPLWHG IRU (.1 (.1 HDFC & SCB Mauritius loan facility. Counter Guarantee to BAHSPL by BAL (Bharti Airtel /LPLWHG  IRU (.1 (.1 +')& ORDQ IDFLOLW\

(iv) Register Hypothecations of all present and IXWXUH ERRN GHEWV UHFHLYDEOHV PRQLHV DQG movable property of the Borrower consisting of UDZPDWHULDOVVWRFNVLQYHQWRU\ZRUNLQSURJUHVV ǟQLVKHGJRRGVDQGLQVXUDQFHSURFHHGVWKHUHRI of Airtel Bangladesh on Pari Passu basis with RWKHU/HQGHUVXQGHUD/HWWHURI+\SRWKHFDWLRQ GDWHG )HEUXDU\   DQG LWV VXEVHTXHQW PRGLǟFDWLRQV WR WKH K\SRWKHFDWLRQ H[HFXWHG LQ IDYRU RI WKH H[LVWLQJ OHQGHUV DQG ǟOHG ZLWK WKH 5HJLVWUDU RI -RLQW 6WRFN &RPSDQLHV )RU Short Term Working Capital Lenders (STL & OD) except Citibank N.A). Bharti Airtel Subsidiary   L 3OHGJHRIDOOǟ[HGDQGǠRDWLQJDVVHWV.HQ\D $IULFD%9DQG 1LJHULD7DQ]DQLD8JDQGD'5&*KDQD its subsidiaries LL 3OHGJHRQVSHFLǟFǟ[HGDVVHWV&KDG Total 44,371 81,099

316 Annual Report 2015-16 126-355 Bharti Airtel Limited 02-39 | Corporate Overview 40-125 | Statutory Reports Financial Statements

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$IULFD2SHUDWLRQV$FTXLVLWLRQ5HODWHG%RUURZLQJ limitation on indebtedness and all notes carry a restriction on /RDQV RXWVWDQGLQJ DV DW WKH EDODQFH VKHHW GDWH LQFOXGHV LQFXUUHQFHRIDQ\OLHQRQLWVDVVHWVRWKHUWKDQDVSHUPLWWHG FHUWDLQ ORDQV ZKLFK KDYH EHHQ WDNHQ WR UHnjQDQFH WKH XQGHUWKHDJUHHPHQWXQOHVVDQHNjHFWLYHSURYLVLRQLVPDGH $IULFD RSHUDWLRQV DFTXLVLWLRQ UHODWHG ERUURZLQJ 7KHVH WR VHFXUH WKH 1RWHV DQG JXDUDQWHH HTXDOO\ DQG UDWDEO\ loan agreements contain a negative pledge covenant that ZLWK VXFK LQGHEWHGQHVV IRU VR ORQJ DV VXFK LQGHEWHGQHVV SUHYHQWV WKH *URXS H[FOXGLQJ $LUWHO %DQJODGHVK /LPLWHG LVVRVHFXUHGE\VXFKOLHQ7KHOLPLWDWLRQRQLQGHEWHGQHVV %KDUWL $LUWHO $IULFD %9 %KDUWL ,QIUDWHO /LPLWHG DQG WKHLU FRYHQDQWRQ(XUR1RWHVGXHDQG86'1RWHVGXH UHVSHFWLYHVXEVLGLDULHV WRFUHDWHRUDOORZWRH[LVWDQ\VHFXULW\ JHWV VXVSHQGHG RQ 1RWHV PHHWLQJ FHUWDLQ DJUHHG FULWHULD LQWHUHVWRQDQ\RILWVDVVHWVZLWKRXWSULRUZULWWHQFRQVHQWRI the majority lenders except in certain agreed circumstances. 7KH GHEW FRYHQDQWV UHPDLQHG VXVSHQGHG DV RI WKH GDWH RI WKH DXWKRULVDWLRQ RI WKH njQDQFLDO VWDWHPHQWV 7KH RWKHU 7KH(XUR1RWHVGXHLQDQG86'1RWHVGXHLQ notes issued do not carry any restrictions on the limitation LVVXHG E\ %$,1 FRQWDLQ FHUWDLQ FRYHQDQWV UHODWLQJ WR on indebtedness.

26.9 Unused Lines of Credit * (` Millions) As of As of Particulars March 31, 2016 March 31, 2015 Secured   Unsecured   Total Unused lines of credit 176,908 180,975 * Excluding non fund based facilities. 27. Deferred Payment Liability  'XULQJWKH\HDUHQGHG0DUFKDQGWKH*URXSKDGZRQWKHDXFWLRQIRUVSHFWUXPDJJUHJDWLQJWR 0K]7KH*URXSKDVRSWHGIRUGHIHUUHGSD\PHQWLQFHUWDLQFLUFOHVIRUDVSHFLnjHGSRUWLRQRIWKHDXFWLRQSULFHZKHUHE\ LWLVSD\DEOHLQHTXDOLQVWDOOPHQWV LQFOXGLQJWKHUHODWHGLQWHUHVW DIWHUDQLQLWLDOPRUDWRULXPSHULRGRIWZR\HDUV$V RI0DUFKWKH*RYHUQPHQWRI,QGLDKDVDOORWWHG0+]VSHFWUXPWRWKH*URXS 0DUFK 0+] DFFRUGLQJO\WKH*URXSKDVUHFRJQLVHGGHIHUUHGSD\PHQWOLDELOLW\ LQFOXGLQJDFFUXHGLQWHUHVWWKHUHWR WRZDUGV WKHVDPHIRURI`0Q 0DUFK` )XUWKHUSHQGLQJWKHDOORFDWLRQRIEDODQFHVSHFWUXPE\ *2,DQDPRXQWRI`0Q 0DUFK0Q KDVEHHQGLVFORVHGXQGHUFDSLWDOFRPPLWPHQWLQWKH QRWHVWRWKHFRQVROLGDWHGnjQDQFLDOVWDWHPHQWV 28. Provisions (` Millions) Particulars (PSOR\HHEHQHǂWV Asset retirement Total obligation* As of March 31, 2014 3,426 8,343 11,769 2IZKLFKFXUUHQW   Provision during the year 734 44 778 Remeasurement losses (75) - (75) accounted for in OCI Payment during the year (498) - (498) Interest charge - 416 416 Derecognised due to sale - (20) (20) (refer Note 43) &ODVVLǟHGDVKHOGIRUVDOH -     (refer Note 43) As of March 31, 2015 3,587 4,722 8,309 2IZKLFKFXUUHQW   Provision during the year 925 175  Remeasurement losses 129 - 129 accounted for in OCI Payment during the year (719) - (719) Interest charge - 286 286

Consolidated Financial Statements (IFRS) 317 Transformational Network

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(` Millions) Particulars (PSOR\HHEHQHǂWV Asset retirement Total obligation* &ODVVLǟHGIURPKHOGIRU - 571 571 sale (refer Note 43) As of March 31, 2016 3,922 5,754 9,676 2IZKLFKFXUUHQW  -    ţ3URYLVLRQGXULQJWKH\HDUŤIRUDVVHWUHWLUHPHQWREOLJDWLRQLVDIWHUFRQVLGHULQJWKHLPSDFWRIFKDQJHLQGLVFRXQWUDWH 'XHWRODUJHQXPEHURIOHDVHDUUDQJHPHQWVRIWKH*URXSWKHUDQJHRIH[SHFWHGSHULRGRIRXWǍRZVRISURYLVLRQIRU DVVHWUHWLUHPHQWREOLJDWLRQLVVLJQLnjFDQWO\ZLGH

  7KHPRYHPHQWRISURYLVLRQWRZDUGVVXEMXGLFHPDWWHUVGLVFORVHGXQGHURWKHUQRQnjQDQFLDODVVHWVQRQFXUUHQW UHIHU 1RWH RWKHUQRQnjQDQFLDOOLDELOLWLHVFXUUHQW UHIHU1RWH DQGWUDGHDQGRWKHUSD\DEOHV UHIHU1RWH LVDV EHORZ (` Millions) For the year ended For the year ended Particulars March 31, 2016 March 31, 2015 Opening Balance   Additions (Net)   Closing Balance 113,436 86,531

29. Other Financial Liabilities, Non-current (` Millions) As of As of Particulars March 31, 2016 March 31, 2015 Equipment Supply Payable - Non Current 264 939 Security deposits   Lease rent equalisation   Finance lease liabilities *   Others  670 Total 73,700 18,939   LQFOXGHVnjQDQFHOHDVHOLDELOLWLHVDULVLQJRQVDOHDQGOHDVHEDFNRIWRZHUDVVHWV UHIHUQRWH H

  2WKHU1RQǂQDQFLDO/LDELOLWLHV (` Millions) As of As of Particulars March 31, 2016 March 31, 2015 Non - current )DLUYDOXDWLRQDGMXVWPHQWVǟQDQFLDOOLDELOLWLHV 692 630 Others 836 836   Current Taxes payable     Total 23,372 17,363   UHSUHVHQWVXQDPRUWLVHGSRUWLRQRIWKHGLNjHUHQFHEHWZHHQWKHIDLUYDOXHRIWKHnjQDQFLDOOLDELOLW\ VHFXULW\GHSRVLW RQLQLWLDOUHFRJQLWLRQDQGWKHDPRXQW received.

  7D[HVSD\DEOHLQFOXGHVHUYLFHWD[VDOHVWD[DQGRWKHUWD[HVSD\DEOHDQGDOVRLQFOXGHSURYLVLRQRI`0QDQG `0QDVRI0DUFKDQG0DUFKUHVSHFWLYHO\WRZDUGVVXEMXGLFHPDWWHUV

318 Annual Report 2015-16 126-355 Bharti Airtel Limited 02-39 | Corporate Overview 40-125 | Statutory Reports Financial Statements

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31. Trade and Other Payables (` Millions) As of As of Particulars March 31, 2016 March 31, 2015 Trade creditors   Equipment supply payables   Dues to employees   Accrued expenses   Interest accrued but not due   Due to related parties  528 Finance Lease Liabilities *  557 Others   Total 387,456 339,670

 LQFOXGHVnjQDQFHOHDVHOLDELOLWLHVDULVLQJRQVDOHDQGOHDVHEDFNRIWRZHUDVVHWV UHIHUQRWH H  “Others” include non-interest bearing advance received from customers and international operators. 7UDGHFUHGLWRUVDFFUXHGH[SHQVHVDQGHTXLSPHQWVXSSO\SD\DEOHLQFOXGHSURYLVLRQRI`0QDQG`0Q DVRI0DUFKDQG0DUFKUHVSHFWLYHO\WRZDUGVVXEMXGLFHPDWWHUV

32. Equity (i) Shares (` Millions) As of As of Particulars March 31, 2016 March 31, 2015 Authorised shares  0DUFK equity shares of ` 5 each   Issued, Subscribed and fully paid-up shares  0DUFK equity shares of ` 5 each   Treasury shares  0DUFK equity shares of ` 5 each (524) (114) a) Treasury Shares (Shares in Thousands) (` Millions) As of As of As of As of Particulars March 31, 2016 March 31, 2015 March 31, 2016 March 31, 2015 Opeining Balance   114 342 Purchased during the year  - 514 - Issued during the year   (964) (104) (228) Closing Balance 1,882 1,411 524 114

Consolidated Financial Statements (IFRS) 319 Transformational Network

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(ii) Other Reserves

(` Millions) Particulars Foreign &DVKǃRZ Reserve Available Share-based Total currency Hedge arising - for - sale payment translation reserve on ǂQDQFLDO transcations reserve transactions investments reserves ZLWK reserves non- controlling interests As of April 1, 2014 (16,777) - 29,084 - 4,985 17,292 ([FKDQJHGLNjHUHQFHV on translation of   - - - -   foreign operations Gain / (loss) on HNjHFWLYHSRUWLRQ  - - - -  on hedge of net investment Gain / (loss) on HNjHFWLYHSRUWLRQRQ -   - - -   FDVKǠRZKHGJH Share based - - - - (7) (7) compensation Receipt on exercise of share options (refer - - - - (173) (173) Note 8.2) Transaction with non- controlling interests - -  - -  (refer Note 7) As of March 31, 2015 (52,017) (4,204) 54,626 - 4,805 3,210 ([FKDQJHGLNjHUHQFHV on translation of   - - - -   foreign operations Gain / (loss) on HNjHFWLYHSRUWLRQ   - - - -   on hedge of net investment Gain / (loss) on HNjHFWLYHSRUWLRQRQ -  - - -  FDVKǠRZKHGJH Change in value of available-for-sale - - - 4 - 4 investments Share based - - - - 237 237 compensation Receipt on exercise of share options (refer - - - - 127 127 Note 8.2) Transaction with non- - - 531 - - 531 controlling interests As of March 31, 2016 (63,306) (724) 55,157 4 5,169 (3,700)

320 Annual Report 2015-16 126-355 Bharti Airtel Limited 02-39 | Corporate Overview 40-125 | Statutory Reports Financial Statements

NotesWRFRQVROLGDWHGnjQDQFLDOVWDWHPHQWV a) Foreign currency translation reserve WKHVH IRUZDUG FRQWUDFWV DV D FDVK ǍRZ KHGJH RI WKH (i) Foreign currency translation reserve represents IRUHLJQFXUUHQF\ULVNDULVLQJIURPWKH(XURERUURZLQJV H[FKDQJH GLNjHUHQFHV DULVLQJ RQ DFFRXQW RI WKH Any gain or loss on the hedging instrument relating to WUDQVODWLRQ RI WKH njQDQFLDO VWDWHPHQWV RI IRUHLJQ WKHHNjHFWLYHSRUWLRQRIWKHKHGJHLVUHFRJQLVHGLQRWKHU subsidiaries including net investment hedges. FRPSUHKHQVLYH LQFRPH QHW RI LQFRPH WD[ $PRXQWV that had been recognised in other comprehensive LL  'XULQJWKH \HDU HQGHG 0DUFK   WKH *URXS LQFRPH DUH UHFODVVLnjHG IURP HTXLW\ WR SURnjW RU ORVV KDV IRUPDOO\ GHVLJQDWHG njQDQFH OHDVH REOLJDWLRQ DV D UHFODVVLnjFDWLRQ DGMXVWPHQW LQ WKH VDPH SHULRG )/2 GLVFORVHGXQGHURWKHUnjQDQFLDOOLDELOLWLHVDULVLQJ RUSHULRGVGXULQJZKLFKWKHKHGJHGFDVKǍRZVDNjHFW RXW RI VDOH DQG OHDVH EDFN RI WRZHU DVVHWV LQ $IULFD SURnjWRUORVV/RVVRQGHULYDWLYHnjQDQFLDOLQVWUXPHQWV GHQRPLQDWHG LQ 86' FXUUHQF\  DQG ERQGV LVVXHG QHW RI UHFODVVLnjFDWLRQ DGMXVWPHQW  RI `  0Q E\ WKH &RPSDQ\ GHQRPLQDWHG LQ 86' FXUUHQF\  (`0QQHWRIWD[DQGQRQFRQWUROOLQJLQWHUHVWV DQG as a hedge against net investments in Airtel Congo `1LOGXULQJWKH\HDUHQGHG0DUFKDQG0DUFK 5'& 6$1HWZRUNLL/LPLWHGDQG%KDUWL$LUWHO$IULFD   UHVSHFWLYHO\ KDV EHHQ UHFRJQLVHG LQ RWKHU %9 UHVSHFWLYHO\ ZKRVH IXQFWLRQDO FXUUHQF\ LV 86' comprehensive income. $Q\ IRUHLJQ H[FKDQJH JDLQ RU ORVV RQ WKH KHGJLQJ LQVWUXPHQW UHODWLQJ WR WKH HNjHFWLYH SRUWLRQ RI WKH  7KH*URXSKDGGHVLJQDWHGFHUWDLQRILWVIRUHLJQFXUUHQF\ hedge is recognised in other comprehensive income, ERUURZLQJVGHQRPLQDWHGLQ86'DVDFDVKǍRZKHGJH QHW RI LQFRPH WD[HV DQG QRQFRQWUROOLQJ LQWHUHVWV WR RIWKHIRUHLJQFXUUHQF\ULVNDULVLQJIURPWKHH[SHFWHG RNjVHW WKH FKDQJH LQ WKH YDOXH RI WKH QHW LQYHVWPHQW VDOHFRQVLGHUDWLRQUHFHLYDEOHIURPWKHKLJKO\SUREDEOH EHLQJKHGJHG1HWIRUHLJQH[FKDQJHORVVRI`0Q IRUHFDVWHG WUDQVDFWLRQ UHODWLQJ WR WKH VDOH RI WHOHFRP (`0QQHWRIWD[DQGQRQFRQWUROOLQJLQWHUHVWV  WRZHUV 5HIHU 1RWH   )RUHLJQ H[FKDQJH ORVV RI and `1LOGXULQJWKH\HDUHQGHG0DUFKDQG `0Q `0QQHWRIWD[DQGQRQFRQWUROOLQJ 0DUFKUHVSHFWLYHO\KDVEHHQUHFRJQLVHGLQ interests) and `0Q `0QQHWRIWD[DQG other comprehensive income. QRQFRQWUROOLQJLQWHUHVWV GXULQJWKH\HDUHQGHG0DUFK DQG0DUFKUHVSHFWLYHO\KDVEHHQ  'XULQJWKH \HDU HQGHG 0DUFK   WKH *URXS recognised in other comprehensive income. Further, on IRUPDOO\ GHVLJQDWHG IRU DFFRXQWLQJ SXUSRVHV FHUWDLQ RFFXUUHQFH RI IRUHFDVWHG VDOH WUDQVDFWLRQ GXULQJ WKH (XUR ERUURZLQJV DV D KHGJH DJDLQVW QHW LQYHVWPHQWV \HDUHQGHG0DUFKIRUHLJQH[FKDQJHORVVRI LQVXEVLGLDULHV LQ)UDQFRSKRQHFRXQWULHVZKHUHWKH `0Q `0QQHWRIWD[DQGQRQFRQWUROOLQJ ORFDOFXUUHQF\LVSHJJHGWRWKH(XUR )RUHLJQH[FKDQJH LQWHUHVWV GXULQJWKH\HDUHQGHG0DUFKKDV ORVV RI `  0Q `  0Q QHW RI WD[ DQG QRQ EHHQUHFODVVLnjHGIURPRWKHUFRPSUHKHQVLYHLQFRPHWR FRQWUROOLQJ LQWHUHVWV  DQG IRUHLJQ H[FKDQJH JDLQ RI income statement and disclosed as exceptional item. `0Q `0QQHWRIWD[DQGQRQFRQWUROOLQJ LQWHUHVWV GXULQJWKH\HDUHQGHG0DUFKDQG F  5HVHUYHVDULVLQJRQWUDQVDFWLRQVZLWKQRQ 0DUFKUHVSHFWLYHO\KDVEHHQUHFRJQLVHGLQ controlling interests RWKHU FRPSUHKHQVLYH LQFRPH 7KH LQHNjHFWLYH SRUWLRQ  7KH WUDQVDFWLRQV ZLWK QRQFRQWUROOLQJ LQWHUHVWV DUH RI JDLQ RI ` 1LO DQG `  0Q KDV EHHQ UHFRJQLVHG DFFRXQWHG IRU DV WUDQVDFWLRQV ZLWK HTXLW\ RZQHUV RI as gain in the consolidated income statement during WKH*URXS*DLQVRUORVVHVRQWUDQVDFWLRQVZLWKKROGHUV WKH\HDUHQGHG0DUFKDQG0DUFK RIQRQFRQWUROOLQJLQWHUHVWVZKLFKGRHVQRWUHVXOWLQWKH respectively. FKDQJHRIFRQWURODUHUHFRUGHGLQHTXLW\)XUWKHUOLDELOLW\ IRUSXUFKDVHRIQRQFRQWUROOLQJLQWHUHVWVLVUHFRJQLVHG E  &DVKǃRZKHGJHUHVHUYH DJDLQVWHTXLW\5HIHU1RWHIRUGHWDLOV  'XULQJWKH \HDU HQGHG 0DUFK   %KDUWL $LUWHO ,QWHUQDWLRQDO 1HWKHUODQGV %9 D VXEVLGLDU\ RI WKH d) Share-based payment transactions reserve &RPSDQ\ HQWHUHG LQWR (XUR  86' DQG &+)  86'  7KH VKDUHEDVHG SD\PHQW WUDQVDFWLRQV UHVHUYH IRUZDUG H[FKDQJH FRQWUDFW WR KHGJH WKH FDVK ǍRZ FRPSULVH WKH YDOXH RI HTXLW\VHWWOHG VKDUHEDVHG ULVN RQ LWV IRUHLJQ FXUUHQF\ ERUURZLQJV GHQRPLQDWHG payment transactions provided to employees LQ(XURDQG&+)WREHUHSDLGLQ'HFHPEHUDQG LQFOXGLQJNH\PDQDJHPHQWSHUVRQQHODVSDUWRIWKHLU 0DUFK  UHVSHFWLYHO\ 7KH *URXS KDV GHVLJQDWHG remuneration.

Consolidated Financial Statements (IFRS) 321 Transformational Network

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(iii) Dividends Paid and Proposed (` Millions) Year ended Year ended Particulars March 31, 2016 March 31, 2015 A Declared and paid during the year: ,QWHULPGLYLGHQG` 1.63 per share of ` 5 each -  Dividend on treasury shares - 3 (including dividend distribution tax of `0Q )LQDOGLYLGHQGIRU` 1.80 per share of ` 5 each -  Dividend on treasury shares - 4 (including dividend distribution tax of `0Q )LQDOGLYLGHQGIRU` 2.22 per share of ` 5 each  - Dividend on treasury shares 2 - (including dividend distribution tax of `0Q 10,681 16,041 B. Proposed for approval at the annual general meeting (not recognised as a liability): )LQDOGLYLGHQGIRU`SHUVKDUH    ` 2.22 per share) of ` 5 each Dividend distribution tax   6,543 10,681

 (PSOR\HH%HQHǂWV 7KHIROORZLQJWDEOHVHWVIRUWKWKHFKDQJHVLQWKHSURMHFWHGEHQHǟWREOLJDWLRQORQJWHUPHPSOR\HHEHQHǟWDQGSODQ DVVHWVDQGDPRXQWVUHFRJQLVHGLQWKHFRQVROLGDWHGVWDWHPHQWRIǟQDQFLDOSRVLWLRQDVRI0DUFKDQG0DUFK EHLQJWKHUHVSHFWLYHPHDVXUHPHQWGDWHV

Movement in Obligation (` Millions) Particulars Gratuity Compensated absence 2EOLJDWLRQ$SULO   Current service cost 354 220 Interest cost 187 90 %HQHǟWVSDLG (405) (184) Acquisitions / Transfer in/ Transfer out (44) (3) Remeasurements - actuarial loss/ (gain) (0) (175) Obligation - March 31, 2015 2,426 1,071 2EOLJDWLRQ$SULO   Current service cost 416 233 Interest cost 209 92 %HQHǟWVSDLG (494) (209) Acquisitions / Transfer in/ Transfer out (22) 1 Remeasurements - actuarial loss/ (gain) 121 (61) Obligation - March 31, 2016 2,656 1,127

322 Annual Report 2015-16 126-355 Bharti Airtel Limited 02-39 | Corporate Overview 40-125 | Statutory Reports Financial Statements

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Movement in Plan Assets - Gratuity (` Millions) Year ended Year ended Particulars March 31, 2016 March 31, 2015 Fair value of plan assets at beginning of year 104 179 Interest income 9 13 %HQHǟWVSDLG (39) (2) Amount received on redemption of plan assets - (161) Actuarial gain / (loss) (8) 75 Fair value of plan assets at end of year 66 104 Net funded status of plan (2,590) (2,322) Actual return on plan assets 1 88

 7KHFRPSRQHQWVRIWKHJUDWXLW\ FRPSHQVDWHGDEVHQFHFRVWZHUHDVIROORZV  5HFRJQLVHGLQSURǂWRUORVV (` Millions) Particulars Gratuity Compensated absence Current service cost 416 233 Interest cost / (income) (net) 200 92 Remeasurements - actuarial loss/ (gain) - (61) For the year ended March 31, 2016 616 264 Current service cost 354 220 Interest cost / (income) (net) 174 90 Remeasurements - actuarial loss/ (gain) - (175) For the year ended March 31, 2015 528 135

Recognised in other comprehensive income (` Millions) Particulars Gratuity Compensated absence Remeasurements - actuarial loss/ (gain) 129 - For the year ended March 31, 2016 129 - Remeasurements - actuarial loss/ (gain) (75) - For the year ended March 31, 2015 (75) -

 7KHSULQFLSDODFWXDULDODVVXPSWLRQVXVHGIRUHVWLPDWLQJWKH*URXSšVGHǂQHGEHQHǂWREOLJDWLRQVDUHVHWRXWEHORZ (` Millions) As of As of Weighted average actuarial assumptions March 31, 2016 March 31, 2015 Discount Rate 8.00% 8.50% Expected Rate of increase in Compensation levels 10.00% 10.00% Expected Rate of Return on Plan Assets 9.00% 8.00% Expected Average remaining working lives of employees (years) 25.06 years 24.95 years

Consolidated Financial Statements (IFRS) 323 Transformational Network

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Sensitivity Analysis: For the year ended March 31, 2016 Particulars Change in assumption (ǁHFWRQ*UDWXLW\ (ǁHFWRQ&RPSHQVDWHG obligation absence obligation Discount Rate +1% (243) (98) -1% 267 107 Salary Growth Rate +1% 265 104 -1% (246) (98)

For the year ended March 31, 2015 Particulars Change in assumption (ǁHFWRQ*UDWXLW\ (ǁHFWRQ&RPSHQVDWHG obligation absence obligation Discount Rate +1% (237) (103) -1% 277 123 Salary Growth Rate +1% 294 131 -1% (253) 114

 7KHDERYHVHQVLWLYLW\DQDO\VLVLVEDVHGRQDFKDQJHLQDQDVVXPSWLRQZKLOHKROGLQJDOORWKHUDVVXPSWLRQVFRQVWDQW ,QSUDFWLFHWKLVLVXQOLNHO\WRRFFXUDQGFKDQJHVLQVRPHRIWKHDVVXPSWLRQVPD\EHFRUUHODWHG:KHQFDOFXODWLQJWKH VHQVLWLYLW\RIWKHGHnjQHGEHQHnjWREOLJDWLRQWRVLJQLnjFDQWDFWXDULDODVVXPSWLRQVWKHVDPHPHWKRG SURMHFWHGXQLWFUHGLW PHWKRG KDVEHHQDSSOLHGDVZKHQFDOFXODWLQJWKHGHnjQHGEHQHnjWREOLJDWLRQUHFRJQLVHGZLWKLQWKHVWDWHPHQWRInjQDQFLDO position.

 +LVWRU\RI([SHULHQFH$GMXVWPHQWVLVDVIROORZV (` Millions) Particulars Gratuity Compensated absence For the year ended March 31, 2016 Plan Liabilities - (loss)/gain (8) 95 Plan Assets - (loss)/gain (1) - For the year ended March 31, 2015 Plan Liabilities - (loss)/gain (139) 110 Plan Assets - (loss)/gain 75 -

 'LVFORVXUHRIRWKHUORQJWHUPHPSOR\HHEHQHǂWV  /RQJWHUPVHUYLFHDZDUG (` Millions) As of As of Particulars March 31, 2016 March 31, 2015 Estimated liability 205 194

 6WDWHPHQWRIHPSOR\HHEHQHǂWSURYLVLRQ (` Millions) As of As of Particulars March 31, 2016 March 31, 2015 Gratuity   Compensated absences   2WKHUHPSOR\HHEHQHǟWV 205 194 Total 3,922 3,587

324 Annual Report 2015-16 126-355 Bharti Airtel Limited 02-39 | Corporate Overview 40-125 | Statutory Reports Financial Statements

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34. Fair Value of Financial Assets and Liabilities  6HWRXWEHORZLVDFRPSDULVRQE\FODVVRIWKHFDUU\LQJDPRXQWVDQGIDLUYDOXHRIWKH*URXSšVǟQDQFLDOLQVWUXPHQWV WKDWDUHUHFRJQLVHGLQWKHǟQDQFLDOVWDWHPHQWV

(` Millions) Carrying Amount Fair Value Particulars As of As of As of As of March 31, 2016 March 31, 2015 March 31, 2016 March 31, 2015 Financial Assets Assets carried at fair value through SURǂWRUORVV Derivatives - not designated as hedging instruments &XUUHQF\VZDSVIRUZDUGDQG 601 280 601 280 option contracts - Interest rate swaps  619  619 - Embedded derivatives 431  431  Derivatives - designated as hedging instruments &XUUHQF\VZDSVIRUZDUGDQG RSWLRQFRQWUDFWV LQFDVKǠRZ  -  - hedge) - Interest rate swaps (in fair value     hedge) Held for trading securities - quoted     Investments designated at fair value     WKURXJKSURǟWRUORVVTXRWHG Available for sale investments  -  - Assets carried at amortised cost Fixed deposits with banks     Cash and bank balances     Trade and other receivables     2WKHUǟQDQFLDODVVHWV     229,715 237,674 229,751 237,651 Financial Liabilities Liabilities carried at fair value WKURXJKSURǂWRUORVV Derivatives - not designated as hedging instruments &XUUHQF\VZDSVIRUZDUGDQG  381  381 option contracts - Interest rate swaps - 49 - 49 - Embedded derivatives 843 338 843 338 Derivatives - designated as hedging instruments in fair value hedge - Interest rate swaps - 24 - 24

Consolidated Financial Statements (IFRS) 325 Transformational Network

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(` Millions) Carrying Amount Fair Value Particulars As of As of As of As of March 31, 2016 March 31, 2015 March 31, 2016 March 31, 2015 Liabilities carried at amortised cost Borrowings designated as hedging instruments - Fixed rate - In hedge of net investment     Borrowings designated as hedging instruments - Floating rate ,QFDVKǠRZKHGJH -  -  - In hedge of net investment -  -  2WKHUERUURZLQJVǟ[HGUDWH     2WKHUERUURZLQJVǠRDWLQJUDWH     Deferred payment liability     Trade & other payables     2WKHUǟQDQFLDOOLDELOLWLHVGHVLJQDWHG as hedging instruments * - In hedge of net investment  -  - 2WKHUǟQDQFLDOOLDELOLWLHV     1,413,525 1,166,240 1,444,147 1,186,331  5HSUHVHQWVnjQDQFHOHDVHREOLJDWLRQVDULVLQJIURPVDOHDQGOHDVHEDFNRIWRZHUVLQ$IULFD5HIHU1RWHLL D  LL 

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326 Annual Report 2015-16 126-355 Bharti Airtel Limited 02-39 | Corporate Overview 40-125 | Statutory Reports Financial Statements

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Assets / Liabilities Measured at Fair Value (` Millions) As of March 31, 2016 Particulars Level 1 Level 2 Level 3 Financial assets Derivatives - not designated as hedging instruments &XUUHQF\VZDSVIRUZDUGDQGRSWLRQFRQWUDFWV - 601 - - Interest rate swaps -  - - Embedded derivatives - 380 51 Derivatives - designated as hedging instruments &XUUHQF\VZDSVIRUZDUGDQGRSWLRQFRQWUDFWV -  - LQFDVKǠRZKHGJH - Interest rate swaps (in fair value hedge) -  - Held for trading securities - quoted  - - 'HVLJQDWHGDWIDLUYDOXHWKURXJKSURǟWRUORVVTXRWHG  - - Available for sale investments  - - Financial liabilities Derivatives - not designated as hedging instruments &XUUHQF\VZDSVIRUZDUGDQGRSWLRQFRQWUDFWV -  - - Interest rate swaps - - - - Embedded derivatives - 843 - Derivatives - designated as hedging instruments - Interest rate swaps (in fair value hedge) - - -

Consolidated Financial Statements (IFRS) 327 Transformational Network

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(` Millions) As of March 31, 2015 Particulars Level 1 Level 2 Level 3 Financial assets Derivatives - not designated as hedging instruments &XUUHQF\VZDSVIRUZDUGDQGRSWLRQFRQWUDFWV - 280 - - Interest rate swaps - 619 - - Embedded derivatives - 147  Derivatives - designated as hedging instruments - Interest rate swaps (in fair value hedge) -  - Held for trading securities - quoted  - - 'HVLJQDWHGDWIDLUYDOXHWKURXJKSURǟWRUORVVTXRWHG  - - Financial liabilities Derivatives - not designated as hedging instruments &XUUHQF\VZDSVIRUZDUGDQGRSWLRQFRQWUDFWV - 381 - - Interest rate swaps - 49 - - Embedded derivatives - 338 - Derivatives - designated as hedging instruments - Interest rate swaps (in fair value hedge) - 24 -

$VVHWV/LDELOLWLHVIRUZKLFKIDLUYDOXHLVGLVFORVHG (` Millions) As of March 31, 2016 Particulars Level 1 Level 2 Level 3 Financial assets 2WKHUǟQDQFLDODVVHWV -  - Financial liabilities Borrowings designated as hedging instruments - Fixed rate - In hedge of net investment -  - 2WKHUERUURZLQJVǟ[HGUDWH  Deferred payment liability  2WKHUǟQDQFLDOOLDELOLWLHVGHVLJQDWHGDVKHGJLQJLQVWUXPHQWV - In hedge of net investment  2WKHUǟQDQFLDOOLDELOLWLHV -  -

(` Millions) As of March 31, 2015 Particulars Level 1 Level 2 Level 3 Financial assets 2WKHUǟQDQFLDODVVHWV -  - Financial liabilities Borrowings designated as hedging instruments - Fixed rate - In hedge of net investment -  - 2WKHUERUURZLQJVǟ[HGUDWH -  - Deferred payment liability -  - 2WKHUǟQDQFLDOOLDELOLWLHV -  - 'XULQJWKH\HDUHQGHG0DUFKDQG0DUFKWKHUHZHUHQRWUDQVIHUVEHWZHHQ/HYHODQG/HYHOIDLUYDOXH PHDVXUHPHQWVDQGQRWUDQVIHULQWRDQGRXWRI/HYHOIDLUYDOXHPHDVXUHPHQWV

328 Annual Report 2015-16 126-355 Bharti Airtel Limited 02-39 | Corporate Overview 40-125 | Statutory Reports Financial Statements

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Consolidated Financial Statements (IFRS) 329 Transformational Network

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330 Annual Report 2015-16 126-355 Bharti Airtel Limited 02-39 | Corporate Overview 40-125 | Statutory Reports Financial Statements

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35. Related Party Transactions  5HODWHGSDUW\WUDQVDFWLRQVUHSUHVHQWWUDQVDFWLRQVHQWHUHGLQWRE\WKH*URXSZLWKHQWLWLHVKDYLQJVLJQLnjFDQWLQǍXHQFH RYHUWKH*URXS ŠVLJQLnjFDQWLQǍXHQFHHQWLWLHVš DVVRFLDWHVMRLQWYHQWXUHVDQGRWKHUUHODWHGSDUWLHV7KHWUDQVDFWLRQVZLWK WKHUHODWHGSDUWLHVIRUWKH\HDUVHQGHG0DUFKDQG0DUFKUHVSHFWLYHO\DUHGHVFULEHGEHORZ a) Transactions for the period (` Millions) Year ended March 31, 2016 Year ended March 31, 2015 6LJQLǂFDQW Associates Joint Other 6LJQLǂFDQW Associates Joint Other Relationship LQǃXHQFH Ventures related LQǃXHQFH Ventures related entities parties entities parties Purchase of assets - - -  - (111) -   Purchase of ------(10) - investment Reduction of share ------87 - capital Sale / Rendering of  125 36 385  140 - 274 services Purchase of goods / (629) (928)   (614) (305)    Receiving of services Reimbursement of - -  (4) - -  (3) energy expenses Loans to related - 14 5 40 - 154 - - party Loan repayment - (14) - - - -   - Expenses incurred by - 5 14 42 - 23 - 2 the Group on behalf of related party Expenses incurred by - - (113) (355) - - (114) (949) related party for the Group Security deposit paid - - 125 73 1 0 73 0 Refund of security - - (4) (32) (1) - (384) - deposit Interest income on - 21 0 1 - 47 - - loan Claim received - - - 72 - - - 46 Dividend paid   - - (590)   - - (912) Dividend received ------ - b) Closing Balances (` Millions) Closing balance as of March 31, 2016 Closing balance as of March 31, 2015 6LJQLǂFDQW Other 6LJQLǂFDQW Other Relationship LQǃXHQFH Joint related LQǃXHQFH Joint related entities Associates Ventures parties entities Associates Ventures parties Due From 233 -   342 591   Due To (533) (613)   (718) (436) (146)   (759) (300) (613) (4,897) 715 (94) 445 (5,003) 464

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Consolidated Financial Statements (IFRS) 331 Transformational Network

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 5HPXQHUDWLRQWRNH\PDQDJHPHQWSHUVRQQHOZHUHDVIROORZV (` Millions) Year ended Year ended Particulars March 31, 2016 March 31, 2015 6KRUWWHUPHPSOR\HHEHQHǟWV 274 250 Performance linked incentive ('PLI')# 153 153 3RVW(PSOR\PHQWEHQHǟWV 'HǟQHGFRQWULEXWLRQSODQ 24 22 'HǟQHGEHQHǟWSODQ - - 2WKHUORQJWHUPEHQHǟWV - - Share-based payment** 57 35 508 460  9DOXHRI3/,FRQVLGHUHGDERYHUHSUHVHQWVLQFHQWLYHDWSHUIRUPDQFHOHYHO+RZHYHUVDPHZLOOEHSDLGRQWKHEDVLVRIDFWXDOSHUIRUPDQFHSDUDPHWHUV LQQH[W\HDU$GGLWLRQDOSURYLVLRQRI`0QDQG`0QKDVEHHQUHFRUGHGLQWKHERRNVWRZDUGV3/,IRUWKH\HDUHQGHG0DUFKDQG0DUFK UHVSHFWLYHO\'XULQJWKH\HDUHQGHG0DUFK3/,RI`0Q 0DUFK`0Q SHUWDLQLQJWRSUHYLRXV\HDUKDVEHHQSDLG   $VWKHOLDELOLWLHVIRUGHnjQHGEHQHnjWSODQLHJUDWXLW\DQGRWKHUORQJWHUPEHQHnjWVLHFRPSHQVDWHGDEVHQFHVDUHSURYLGHGRQDFWXDULDOEDVLVIRUWKH &RPSDQ\DVDZKROHWKHDPRXQWVSHUWDLQLQJWRNH\PDQDJHPHQWSHUVRQQHODUHQRWLQFOXGHGDERYH   ,WUHSUHVHQWVH[SHQVHUHFRJQLVHGLQWKHLQFRPHVWDWHPHQWIRURSWLRQVJUDQWHG In addition to above `WKRXVDQGGXULQJWKH\HDUHQGHG0DUFKDQG`WKRXVDQGGXULQJWKH\HDUHQGHG0DUFKKDVEHHQSDLGDV HTXLW\GLYLGHQGWRNH\PDQDJHPHQWSHUVRQQHO

36. Lease Disclosure Operating Lease  $VOHVVHHWKH*URXSšVREOLJDWLRQVDULVLQJIURPQRQFDQFHOODEOHOHDVHDUHPDLQO\UHODWHGWROHDVHDUUDQJHPHQWVIRUSDVVLYH LQIUDVWUXFWXUHDQGUHDOHVWDWH7KHVHOHDVHVKDYHYDULRXVH[WHQVLRQRSWLRQVDQGHVFDODWLRQFODXVH$VSHUWKHDJUHHPHQWV PD[LPXPREOLJDWLRQRQORQJWHUPQRQFDQFHOODEOHRSHUDWLQJOHDVHVDUHDVIROORZV  7KHIXWXUHPLQLPXPOHDVHSD\PHQWVREOLJDWLRQVas lessee DUHDVIROORZV (` Millions) As of As of Particulars March 31, 2016 March 31, 2015 Obligations on non-cancellable leases : Not later than one year   /DWHUWKDQRQH\HDUEXWQRWODWHUWKDQǟYH\HDUV   /DWHUWKDQǟYH\HDUV   Total 319,985 307,914 Lease Rentals (Excluding lease equalisation adjustment of `   Mn and `0QIRUWKH\HDUHQGHG0DUFKDQG 0DUFK

332 Annual Report 2015-16 126-355 Bharti Airtel Limited 02-39 | Corporate Overview 40-125 | Statutory Reports Financial Statements

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 7KHIXWXUHPLQLPXPOHDVHSD\PHQWVREOLJDWLRQGLVFORVHGDERYHLQFOXGHWKHEHORZIXWXUHPLQLPXPOHDVHSD\PHQWV REOLJDWLRQVSD\DEOHWRMRLQWYHQWXUHVZKLFKPDLQO\SHUWDLQWRDPRXQWVSD\DEOHXQGHUWKH0DVWHU6HUYLFHV$JUHHPHQW HQWHUHGE\WKH3DUHQWDQGLWVVXEVLGLDULHVZLWK,QGXV7RZHUV/LPLWHGDMRLQWYHQWXUHRIWKH*URXS

(` Millions) As of As of Particulars March 31, 2016 March 31, 2015 Obligations to joint venture on non-cancellable leases : Not later than one year   /DWHUWKDQRQH\HDUEXWQRWODWHUWKDQǟYH\HDUV   /DWHUWKDQǟYH\HDUV   Total 161,094 177,822

 7KHHVFDODWLRQFODXVHLQFOXGHVHVFDODWLRQUDQJLQJIURPWRLQFOXGHVRSWLRQRIUHQHZDOIURPWR\HDUVDQG there is no restrictions imposed by lease arrangements.  $VOHVVRUWKH*URXSšVUHFHLYDEOHVDULVLQJIURPQRQFDQFHOODEOHOHDVHDUHPDLQO\UHODWHGWROHDVHDUUDQJHPHQWVIRUSDVVLYH LQIUDVWUXFWXUH  7KHIXWXUHPLQLPXPOHDVHSD\PHQWVUHFHLYDEOHas lessorDUHDVIROORZV

(` Millions) As of As of Particulars March 31, 2016 March 31, 2015 Receivables on non-cancellable leases : Not later than one year   /DWHUWKDQRQH\HDUEXWQRWODWHUWKDQǟYH\HDUV   /DWHUWKDQǟYH\HDUV   Total 122,668 111,408

Finance Lease (i) Finance lease obligation of the Group as lesseeDVRI0DUFKLVDVIROORZV

(` Millions) Particulars Future minimum Interest Present value lease payments Not later than one year    /DWHUWKDQRQH\HDUEXWQRWODWHUWKDQǟYH\HDUV    /DWHUWKDQǟYH\HDUV    Total 87,804 29,933 57,871

Finance lease obligation of the Group as lesseeDVRI0DUFKLVDVIROORZV (` Millions) Particulars Future minimum Interest Present value lease payments Not later than one year 721 164 557 /DWHUWKDQRQH\HDUEXWQRWODWHUWKDQǟYH\HDUV  421 662 /DWHUWKDQǟYH\HDUV 575 166 409 Total 2,379 751 1,628

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Consolidated Financial Statements (IFRS) 333 Transformational Network

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(ii) The future minimum lease payments receivable of the Group as lessorDVRI0DUFKLVDVIROORZV (` Millions) Particulars Future minimum Interest Present value lease payments Not later than one year 126 33 93 /DWHUWKDQRQH\HDUEXWQRWODWHUWKDQǟYH\HDUV 297 37 260 /DWHUWKDQǟYH\HDUV - - - Total 423 70 353

The future minimum lease payments receivable of the Group as lessorDVRI0DUFKLVDVIROORZV

(` Millions) Particulars Future minimum Interest Present value lease payments Not later than one year 45 13 32 /DWHUWKDQRQH\HDUEXWQRWODWHUWKDQǟYH\HDUV 123 17 106 /DWHUWKDQǟYH\HDUV - - - Total 168 30 138

37. Commitments and Contingencies (i) Commitments a. Capital commitments (` Millions) As of As of Particulars March 31, 2016 March 31, 2015 Contracts placed for future capital expenditure not provided for   LQWKHǟQDQFLDOVWDWHPHQWV UHIHU1RWH

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334 Annual Report 2015-16 126-355 Bharti Airtel Limited 02-39 | Corporate Overview 40-125 | Statutory Reports Financial Statements

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(ii) Contingencies (` Millions) As of As of Particulars March 31, 2016 March 31, 2015 (i) 7D[HV'XWLHVDQG2WKHUGHPDQGV (under adjudication / appeal / dispute) -Sales Tax and Service Tax   -Income Tax   -Customs Duty   -Entry Tax   -Stamp Duty 596 603 -Municipal Taxes  863 -DoT demands *   -Other miscellaneous demands   (ii) Claims under legal cases including arbitration matters -Access Charges / Port Charges   -Others   Total 101,981 93,213

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336 Annual Report 2015-16 126-355 Bharti Airtel Limited 02-39 | Corporate Overview 40-125 | Statutory Reports Financial Statements

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338 Annual Report 2015-16 126-355 Bharti Airtel Limited 02-39 | Corporate Overview 40-125 | Statutory Reports Financial Statements

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38. Earnings Per Share  7KHIROORZLQJLVDUHFRQFLOLDWLRQRIWKHHTXLW\VKDUHVXVHGLQWKHFRPSXWDWLRQRIEDVLFDQGGLOXWHGHDUQLQJVSHUHTXLW\ VKDUH (Shares in Millions) As of As of Particulars March 31, 2016 March 31, 2015 Weighted average shares outstanding- Basic   (NjHFWRIGLOXWLYHVHFXULWLHVRQDFFRXQWRI(623 1 2 Weighted average shares outstanding- diluted 3,997 3,998

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Consolidated Financial Statements (IFRS) 339 Transformational Network

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(` Millions) Particular Change in currency (ǁHFWRQSURǂW (ǁHFWRQHTXLW\ exchange rate before tax (OCI) For the year ended March 31, 2016 US Dollars +5%     -5%   Euro +5%     -5%   CHF +5% (174) - -5% 174 - Others +5% 16 - -5% (16) - For the year ended March 31, 2015 US Dollars +5%     -5%   Euro +5% (642)   -5% 642  CHF +5%   - -5%  - Others +5% (1) - -5% 1 -

Interest Rate Risk  ,QWHUHVWUDWHULVNLVWKHULVNWKDWWKHIDLUYDOXHRUIXWXUH UDWHV RI ERUURZLQJ 7R PDQDJH WKLV WKH *URXS PD\ FDVK ǍRZV RI D njQDQFLDO LQVWUXPHQW ZLOO ǍXFWXDWH HQWHULQWRLQWHUHVWUDWHGHULYDWLYHVOLNHVZDSDQGRSWLRQ EHFDXVH RI FKDQJHV LQ PDUNHW LQWHUHVW UDWHV 7KH FRQWUDFWV7KHPDQDJHPHQWDOVRPDLQWDLQVDSRUWIROLR *URXSšV H[SRVXUH WR WKH ULVN RI FKDQJHV LQ PDUNHW PL[ RI ǍRDWLQJ DQG nj[HG UDWH GHEW $V RI 0DUFK  interest rates relates primarily to the Group’s debt  DIWHU WDNLQJ LQWR DFFRXQW WKH HNjHFW RI LQWHUHVW interest obligations. Further, the Group engages in UDWH VZDSV DSSUR[LPDWHO\  RI WKH *URXSšV njQDQFLQJDFWLYLWLHVDWPDUNHWOLQNHGUDWHVDQ\FKDQJHV ERUURZLQJV DUH DW D nj[HG UDWH RI LQWHUHVW 0DUFK  LQ WKH LQWHUHVW UDWHV HQYLURQPHQW PD\ LPSDFW IXWXUH  

340 Annual Report 2015-16 126-355 Bharti Airtel Limited 02-39 | Corporate Overview 40-125 | Statutory Reports Financial Statements

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(` Millions) Interest rate sensitivity Increase / decrease (ǁHFWRQSURǂW in basis points before tax For the year ended March 31, 2016 INR - borrowings +100 (224) -100 224 US Dollar -borrowings +100   -100  Euro - borrowings +100 (688) -100 688 Nigerian Naira - borrowings +100 (65) -100 65 Other Currency -borrowings +100 (63) -100 63 For the year ended March 31, 2015 INR - borrowings +100 (352) -100 352 US Dollar -borrowings +100   -100  Euro - borrowings +100 (757) -100 757 Nigerian Naira - borrowings +100 (314) -100 314 Other Currency -borrowings +100 (32) -100 32 The assumed movement in basis points for interest rate sensitivity analysis is based on the currently observable market environment.

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Consolidated Financial Statements (IFRS) 341 Transformational Network

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(` Millions) Particular Neither past due nor Past due but not impaired Total impaired (including Less Than 30 to 60 60 to 90 Above 90 unbilled) 30 days days days days Trade Receivables as       of March 31, 2016 Trade Receivables as       RI0DUFK The requirement for impairment is analysed at each reporting date. Refer Note 22 for details on the impairment of trade receivables.

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(` Millions) As of March 31 , 2016 Particular Carrying On Demand Less than 6 to 12 1 to 2 > 2 Total amount 6 months months years years Interest bearing borrowings*#        Financial derivatives  -  144 3 5  'HNjHUHG3D\PHQW/DLELOLW\  - -     2WKHUǟQDQFLDOOLDELOLWLHV  - - -    Trade and other payables#  -   - -  1,413,525 19,452 446,478 55,074 117,313 1,163,579 1,801,896

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342 Annual Report 2015-16 126-355 Bharti Airtel Limited 02-39 | Corporate Overview 40-125 | Statutory Reports Financial Statements

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Consolidated Financial Statements (IFRS) 343 Transformational Network

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S. Principal activity Principal place of 1XPEHURIZKROO\RZQHGVXEVLGLDULHV No. operation / country of incorporation As of As of March 31, 2016 March 31, 2015 1 Telecommunication services Africa 10 10 2 Telecommunication services India 3 4 3 Telecommunication services South Asia 2 2 4 Telecommunication services Other 6 7 5 Mobile commerce services Africa 16 17 6 Mobile commerce services India - 1 7 Infrastructure services Africa 6 9 8 Infrastructure services South Asia 2 2 9 Investment company Africa 2 3 10 Investment company Netherlands 25 25 11 Investment company Mauritius 6 6 12 Investment company Other 2 2 13 Direct to Home services Africa 2 3 14 Submarine cable system Mauritius 1 1 +ROGLQJǟQDQFHVHUYLFHVDQG 15 Netherlands 1 1 management services 16 Other India 1 1 85 94

S. No. Principal Activity Principal place of 1XPEHURI1RQZKROO\RZQHG operation / country subsidiaries of incorporation As of As of March 31, 2016 March 31, 2015 1 Telecommunication services Africa 8 9 2 Telecommunication services India 2 1 3 Infrastructure services India 2 2 4 Infrastructure services Africa 5 7 5 Mobile commerce services Africa 2 - 6 Mobile commerce services India 1 - 7 Investment company Africa 1 - 8 Direct to Home services India 1 1 9 Uplinking channels for broadcasters India 1 - 23 20

344 Annual Report 2015-16 126-355 Bharti Airtel Limited 02-39 | Corporate Overview 40-125 | Statutory Reports Financial Statements

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$GGLWLRQDOO\WKH*URXSDOVRFRQWUROVWKHWUXVWVDVPHQWLRQHGLQ1RWH E EHORZ ,QIRUPDWLRQRI*URXSšVGLUHFWO\DQGLQGLUHFWO\KHOGVXEVLGLDULHVMRLQWYHQWXUHVDQGDVVRFLDWHVLVDVIROORZV (a) Details of Subsidiaries:- S. Name of subsidiary Principal place Principal activities Percentage of no of operation RZQHUVKLSLQWHUHVW / country of DQGYRWLQJSRZHU incorporation (direct / indirect) - HǁHFWLYHVKDUHKROGLQJ held by the Group As of As of March 31, March 31, 2016 2015 % % Airtel Bangladesh Limited (refer 1 Bangladesh Telecommunication services 100 100 Note 40(c)) 2 Airtel M Commerce Services Limited India Mobile commerce services 80.10 100 Bangladesh Infratel Networks Passive infrastructure 3 Bangladesh 100 100 Limited# Services 4 Bharti Airtel (Canada) Limited## Canada Telecommunication services - 100 5 Bharti Airtel (France) SAS France Telecommunication services 100 100 6 Bharti Airtel (Hongkong) Limited Hongkong Telecommunication services 100 100 %KDUWL$LUWHO -DSDQ .DEXVKLNL 7 -DSDQ Telecommunication services 100 100 .DLVKD Administrative support to 8 Bharti Airtel Services Limited India Group companies and trading 100 100 activities 9 %KDUWL$LUWHO 8. /LPLWHG 8QLWHG.LQJGRP Telecommunication services 100 100 United States of 10 Bharti Airtel (USA) Limited Telecommunication services 100 100 America Bharti Airtel Holdings (Singapore) 11 Singapore Investment Company 100 100 Pte Ltd Bharti Airtel International (Mauritius) 12 Mauritius Investment Company 100 100 Limited Bharti Airtel International +ROGLQJ)LQDQFH6HUYLFHVDQG 13 Netherlands 100 100 1HWKHUODQGV %9 Management Services 14 Bharti Airtel Lanka (Private) Limited Sri Lanka Telecommunication services 100 100 15 Bharti Hexacom Limited India Telecommunication services 70 70 Indo Teleports Limited (formerly Uplinking channels for 16 India 95 - known as Bharti Teleports Limited) @ broadcasters Bharti Infratel Lanka (Private) Passive infrastructure 17 Sri Lanka 100 100 Limited# Services Passive infrastructure 18 Bharti Infratel Limited India 71.76 71.88 Services Passive infrastructure 19 Bharti Infratel Services Limited* # India 71.76 71.88 Services Smartx Services Limited (subsidiary 20 India Telecommunication services 71.76 - ZHI6HSWHPEHU Bharti International (Singapore) Pte. 21 Singapore Telecommunication services 100 100 Ltd 22 Bharti Telemedia Limited India Direct To Home services 95 95 23 Network i2i Limited Mauritius Submarine Cable System 100 100 24 Telesonic Networks Limited India Network Services 100 100 Airtel Broadband Services Private 25 Limited (Merged with Bharti Telecommunication services - 100 /LPLWHGZHI$SULO

Consolidated Financial Statements (IFRS) 345 Transformational Network

NotesWRFRQVROLGDWHGnjQDQFLDOVWDWHPHQWV

S. Name of subsidiary Principal place Principal activities Percentage of no of operation RZQHUVKLSLQWHUHVW / country of DQGYRWLQJSRZHU incorporation (direct / indirect) - HǁHFWLYHVKDUHKROGLQJ held by the Group As of As of March 31, March 31, 2016 2015 % % Data Center and Managed 26 Nxtra Data Limited India 100 100 Services Content Procurement and 27 Wynk Limited India 100 100 Selling 28 $IULFD7RZHUV19 Netherlands Investment Company 100 100 29 Africa Towers Services Limited .HQ\D Infrastructure sharing services 100 100 30 Airtel Ghana Limited^ Ghana Telecommunication services 75 75 31 Airtel (Seychelles) Limited Seychelles Telecommunication services 100 100 32 Airtel (SL) Limited Sierra Leone Telecommunication services 100 100 33 Airtel Burkina Faso S.A. Burkina Faso Telecommunication services 100 100 Congo 34 Airtel Congo S.A. Telecommunication services 90 90 %UD]]DYLOH 35 Airtel DTH Services (SL) Limited^^ Sierra Leone Direct To Home services 100 100 Democratic Airtel DTH Services Congo (RDC) 36 Republic of Direct To Home services - 100 S.p.r.l.## Congo 37 Airtel DTH Services Nigeria Limited# Nigeria Direct To Home services 100 100 38 Airtel Gabon S.A. Gabon Telecommunication services 90 90 39 Airtel Madagascar S.A. Madagascar Telecommunication services 100 100 40 Airtel Malawi Limited Malawi Telecommunication services 100 100 Airtel Mobile Commerce (SL) 41 Sierra Leone Mobile commerce services 100 100 Limited 42 $LUWHO0RELOH&RPPHUFH%9 Netherlands Investment Company 100 100 Airtel Mobile Commerce Burkina 43 Burkina Faso Mobile commerce services 100 100 Faso S.A. Airtel Mobile Commerce (Ghana) 44 Ghana Mobile commerce services 75 100 Limited Airtel Mobile Commerce Holdings 45 Netherlands Investment Company 100 100 %9 $LUWHO0RELOH&RPPHUFH .HQ\D  46 .HQ\D Mobile commerce services 100 100 Limited 47 Airtel Mobile Commerce Limited Malawi Mobile commerce services 100 100 Airtel Mobile Commerce 48 Madagascar Mobile commerce services 100 100 Madagascar S.A. Airtel Mobile Commerce Rwanda 49 Rwanda Mobile commerce services 100 100 Limited Airtel Mobile Commerce 50 Seychelles Mobile commerce services 100 100 (Seychelles) Limited $LUWHO0RELOH&RPPHUFH 7DQ]DQLD  51 7DQ]DQLD Mobile commerce services 100 100 Limited 52 Airtel Mobile Commerce Tchad S.a.r.l. Chad Mobile commerce services 100 100 Airtel Mobile Commerce Uganda 53 Uganda Mobile commerce services 100 100 Limited Airtel Mobile Commerce Zambia 54 Zambia Mobile commerce services 100 100 Limited

346 Annual Report 2015-16 126-355 Bharti Airtel Limited 02-39 | Corporate Overview 40-125 | Statutory Reports Financial Statements

NotesWRFRQVROLGDWHGnjQDQFLDOVWDWHPHQWV

S. Name of subsidiary Principal place Principal activities Percentage of no of operation RZQHUVKLSLQWHUHVW / country of DQGYRWLQJSRZHU incorporation (direct / indirect) - HǁHFWLYHVKDUHKROGLQJ held by the Group As of As of March 31, March 31, 2016 2015 % % Democratic 55 Airtel Money (RDC) S.A. Republic of Mobile commerce services 100 100 Congo 56 Airtel Money Niger S.A. Niger Mobile commerce services 90 100 57 Airtel Money S.A. (Gabon) Gabon Mobile commerce services 100 100 58 $LUWHO1HWZRUNV.HQ\D/LPLWHGA .HQ\D Telecommunication services 100 100 59 Airtel Networks Limited Nigeria Telecommunication services 79.059 79.059 60 Airtel Networks Zambia Plc Zambia Telecommunication services 96.36 96.36 61 Airtel Rwanda Limited Rwanda Telecommunication services 100 100 62 $LUWHO7DQ]DQLD/LPLWHG 7DQ]DQLD Telecommunication services 60 60 63 Airtel Tchad S.A. Chad Telecommunication services 100 100 64 Airtel Towers (Ghana) Limited Ghana Infrastructure sharing services 75 75 65 Airtel Towers (SL) Company Limited Sierra Leone Infrastructure sharing services 100 100 66 Airtel Uganda Limited^ Uganda Telecommunication services 100 100 67 %KDUWL$LUWHO$IULFD%9 Netherlands Investment Company 100 100 Bharti Airtel Burkina Faso Holdings 68 Netherlands Investment Company 100 100 %9 69 %KDUWL$LUWHO&KDG+ROGLQJV%9 Netherlands Investment Company 100 100 70 %KDUWL$LUWHO&RQJR+ROGLQJV%9 Netherlands Investment Company 100 100 Bharti Airtel Developers Forum 71 Zambia Investment Company 96.36 100 Limited 72 %KDUWL$LUWHO'7++ROGLQJV%9 Netherlands Investment Company 100 100 73 %KDUWL$LUWHO*DERQ+ROGLQJV%9 Netherlands Investment Company 100 100 74 %KDUWL$LUWHO*KDQD+ROGLQJV%9 Netherlands Investment Company 100 100 75 %KDUWL$LUWHO.HQ\D%9 Netherlands Investment Company 100 100 76 %KDUWL$LUWHO.HQ\D+ROGLQJV%9 Netherlands Investment Company 100 100 Bharti Airtel Madagascar Holdings 77 Netherlands Investment Company 100 100 %9 78 %KDUWL$LUWHO0DODZL+ROGLQJV%9 Netherlands Investment Company 100 100 79 %KDUWL$LUWHO0DOL+ROGLQJV%9 Netherlands Investment Company 100 100 80 %KDUWL$LUWHO1LJHU+ROGLQJV%9 Netherlands Investment Company 100 100 81 %KDUWL$LUWHO1LJHULD%9 Netherlands Investment Company 100 100 82 %KDUWL$LUWHO1LJHULD+ROGLQJV%9# Netherlands Investment Company 100 100 83 %KDUWL$LUWHO1LJHULD+ROGLQJV,,%9 Netherlands Investment Company 100 100 84 %KDUWL$LUWHO5'&+ROGLQJV%9 Netherlands Investment Company 100 100 85 %KDUWL$LUWHO6HUYLFHV%9 Netherlands Investment Company 100 100 Bharti Airtel Sierra Leone Holdings 86 Netherlands Investment Company 100 100 %9 87 %KDUWL$LUWHO7DQ]DQLD%9 Netherlands Investment Company 100 100 88 %KDUWL$LUWHO8JDQGD+ROGLQJV%9 Netherlands Investment Company 100 100 89 %KDUWL$LUWHO=DPELD+ROGLQJV%9 Netherlands Investment Company 100 100 90 Burkina Faso Towers S.A.## Burkina Faso Infrastructure sharing services - 100 91 Celtel (Mauritius) Holdings Limited Mauritius Investment Company 100 100 Democratic Airtel Congo (RDC) S.A. (formerly 92 Republic of Telecommunication services 98.5 98.5 known as Celtel Congo (RDC) S.a.r.l.) Congo

Consolidated Financial Statements (IFRS) 347 Transformational Network

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S. Name of subsidiary Principal place Principal activities Percentage of no of operation RZQHUVKLSLQWHUHVW / country of DQGYRWLQJSRZHU incorporation (direct / indirect) - HǁHFWLYHVKDUHKROGLQJ held by the Group As of As of March 31, March 31, 2016 2015 % % 93 Celtel Niger S.A. Niger Telecommunication services 90 90 Channel Sea Management Company 94 Mauritius Investment Company 100 100 (Mauritius) Limited Democratic 95 Congo RDC Towers S.A. Republic of Infrastructure sharing services 100 100 Congo Congo 96 Congo Towers S.A.^^ Infrastructure sharing services 90 90 %UD]]DYLOH 97 Gabon Towers S.A. # Gabon Infrastructure sharing services 90 90 98 Indian Ocean Telecom Limited -HUVH\ Investment Company 100 100 .HQ\D7RZHUV/LPLWHG UHIHU1RWH 99 .HQ\D Infrastructure sharing services - 100 43) 100 Madagascar Towers S.A. Madagascar Infrastructure sharing services 100 100 101 Malawi Towers Limited Malawi Infrastructure sharing services 100 100 Congo 102 Mobile Commerce Congo S.A. Mobile commerce services 100 100 %UD]]DYLOH 103 Montana International Mauritius Investment Company 100 100 104 MSI-Celtel Nigeria Limited# Nigeria Investment Company 100 100 105 Niger Towers S.A.## Niger Infrastructure sharing services - 90 Democratic 106 Partnership Investments S.a.r.l. Republic of Investment Company 100 100 Congo Société Malgache de Téléphone 107 Mauritius Investment Company 100 100 Cellulaire S.A. 108 7DQ]DQLD7RZHUV/LPLWHG 7DQ]DQLD Infrastructure sharing services 60 60 109 Tchad Towers S.A. Chad Infrastructure sharing services 100 100 110 Towers Support Nigeria Limited# Nigeria Infrastructure sharing services 79.059 79.059 Uganda Towers Limited (refer Note 111 Uganda Infrastructure sharing services - 100 43) Warid Telecom Uganda Limited (in 112 process of Amalgamation with Airtel Uganda Telecommunication services 100 100 Uganda Limited) Warid Congo S.A. (Merged with Congo 113 $LUWHO&RQJR6$ZHI1RYHPEHU Telecommunication services - 90 %UD]]DYLOH 2015) Zambian Towers Limited (refer Note 114 Zambia Infrastructure sharing services - 96.36 43) 115 Zap Trust Company Nigeria Limited# Nigeria Mobile commerce services 100 100 Airtel Money Transfer Limited 116 .HQ\D Mobile commerce services 100 - VXEVLGLDU\ZHI-XO\ Bharti Airtel Rwanda Holdings 117 Limited (formerly known as Zebrano Mauritius Investment Company 100 100 (Mauritius) Limited)

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348 Annual Report 2015-16 126-355 Bharti Airtel Limited 02-39 | Corporate Overview 40-125 | Statutory Reports Financial Statements

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(b) Details of Controlled Trust: S.no Name of trust Principal place of operation / country of incorporation 1 Bharti Airtel Employees’ Welfare Trust India 2 Bharti Infratel Employees’ Welfare Trust India

(c) Details of Joint ventures: Percentage of RZQHUVKLSLQWHUHVW DQGYRWLQJSRZHU Principal place (direct / indirect) - of operation HǁHFWLYHVKDUHKROGLQJ S.no Name of joint ventures Principal activities / country of held by the Group incorporation As of As of March 31, March 31, 2016 2015 % % 1 Indus Towers Limited * India Passive infrastructure services 30.14 30.19 Provision of regional mobile 2 Bridge Mobile Pte Limited Singapore 10 10 services 3 Forum I Aviation Ltd India Aircraft chartering services - 16.67 4 FireFly Networks Limited India Telecommunication services 50 50   %KDUWL,QIUDWHO/LPLWHG ţ%,/Ť LQZKLFKWKH*URXSKDVHTXLW\LQWHUHVW DVRI0DUFK RZQVRI%KDUWL,QIUDWHO6HUYLFHV /LPLWHGRI6PDUW[6HUYLFHV/LPLWHGDQGRI,QGXV7RZHUV/LPLWHG RI%KDUWL,QIUDWHO6HUYLFHV/LPLWHGDQGRI,QGXV7RZHUV/LPLWHG DVRI0DUFK 

(d) Details of Associates: Percentage of RZQHUVKLSLQWHUHVW DQGYRWLQJSRZHU Principal place (direct / indirect) - of operation HǁHFWLYHVKDUHKROGLQJ S.no Name of associates Principal activities / country of held by the Group incorporation As of As of March 31, March 31, 2016 2015 % % Indo Teleports Limited Uplinking channels for 1 (formerly known as Bharti India - 49 broadcasters Teleports Limited) @ 7DQ]DQLD 2 Telecommunications 7DQ]DQLD Telecommunication services 35 35 Company Limited Seychelles Cable Systems 3 Seychelles Submarine Cable System 26 26 Company Limited  #7KH*URXSKDVDFTXLUHGDGGLWLRQDOVWDNHLQWKHFRPSDQ\DQGWKHUHIRUHEHFDPHVXEVLGLDU\ZHIIURP$XJXVW

Consolidated Financial Statements (IFRS) 349 Transformational Network

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350 Annual Report 2015-16 126-355 Bharti Airtel Limited 02-39 | Corporate Overview 40-125 | Statutory Reports Financial Statements

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F 7KHPDMRUFODVVHVRIDVVHWVDQGOLDELOLWLHVFODVVLnjHGDVKHOGIRUVDOHDVRI0DUFKDUHDVIROORZV (` Millions) As of As of $VVHWVRIGLVSRVDOJURXSFODVVLǂHGDVKHOGIRUVDOH March 31, 2016 March 31, 2015 Non current assets   Other current assets 132  7,002 45,645

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Consolidated Financial Statements (IFRS) 351 7UDQVIRUPDWLRQDO1HWZRUN 95% % of % of 100% Millions) ` ( shareholding 5 90% 1 100% 9 100% 23 90% 25 100% 31 100% 45 90% 36 98.50% 209 71.76% 105 70% Community Community Contribution ^ 786 100% 923 100%        Capital period # reporting reporting during the Expenditure Expenditure

------100% 100% - 135 - 100% - - - 100% - - - - 100% - - - - 100% -   Dividend Proposed Proposed After After            (Loss) 3URǂW                   Taxation Taxation    ------    38 for 45 121 130 199 414 731 114 196 584 220 Taxation Taxation Provision Provision 618 183 435 710 100% 292 (115) 407 97 100% 336 13 323 69 100% (71) (85) 14 576 100% (37) (154) 117 - (62) 3 (65) 183 100% (154) (30) (124) 150 100%     (Loss) Before Before 3URǂW   Taxation Taxation - (2) - (2) - 100% - 12 6 6 - 100%                                 ------296 - 296 - - - 100% ------43 - 43 - - - 100% ------(22) - (22) - - - 100% - - - - (105) - (105) - - - 100% - - 395 (346) - (346) 139 80.10% - 4 302  Investments* Investments* Turnover 4 0 - - 77 - - 248 - 248 - - - 100% 47 - - Total Total Liabilities              Assets Assets      31                                                  Reserves Reserves Total - - - - - (0) - (0) - 71.76% - 219 0 ------100% 1 16 449 432 490 23 7 16 162 100% 1 1 1 1 0 522 1 1 329 2 1 1 236 1 658 308 421 ------100% 0 1 (0) 32 0 340 307 0 - 272 - 77 (0) 97 - (20) (0) 183 - 100% 100% 0 1 (6) 19 25 8 (18) (0) (18) - 100% 32 498 30 0 30 0 - 0 0 0 - 71.76% 51 (67) 42 23 42 (225) 546 729 575 140 5 135 172 100% 892 (776) 102 230 (589) 402 761 285 (78) - (78) 14 95% 598 288 690 173     Share Share                         Capital                                      0.845 1.000 1.000 1.000 1.000 1.000 1.000 0.454 0.454 1.000 1.000 1.000 1.000 0.115 0.115 0.115 0.115 0.115 0.098 0.070 0.653 0.845 8.540 0.590 1.000 1.000 Rate as Rate 66.255 66.255 49.246 66.255 66.255 66.255 66.255 66.255 66.255 66.255 66.255 66.255 66.255 66.255 66.255 66.255 75.447 95.411 31, 2016 of March March of Exchange Exchange ODWLQJWRVXEVLGLDU\FRPSDQLHVIRUWKH\HDUHQGHG0DUFK FHPEHU 0DUFK 0DUFK 0DUFK 0DUFK 0DUFK 0DUFK 0DUFK 0DUFK 0DUFK 0DUFK 0DUFK 0DUFK 0DUFK 0DUFK 0DUFK 0DUFK 0DUFK 0DUFK 0DUFK 0DUFK 0DUFK 0DUFK 0DUFK 0DUFK 0DUFK 0DUFK 0DUFK 0DUFK 0DUFK 0DUFK 0DUFK 0DUFK 0DUFK 0DUFK 0DUFK Apr '15 to Mar '16 Mar '15 to Apr Apr '15 to Mar '16 Mar '15 to Apr -DQ WR0DU  0DUFK -DQ WR'HF  'HFHPEHU Reporting Period Reporting Period End Financial Year -DQ WR'HF  'HFHPEHU -DQ WR'HF  'HFHPEHU -DQ WR'HF  'HFHPEHU -DQ WR'HF  'HFHPEHU -DQ WR'HF  'HFHPEHU Apr '15 to Mar '16 Mar '15 to Apr Apr '15 to Mar '16 Mar '15 to Apr /.5 /.5 XAF Reporting Currency USD '16 Mar '15 to Apr 0:. -DQ WR'HF  'HFHPEHU CDF +.' GBP '16 Mar '15 to Apr India INR '16 Mar '15 to Apr India INR '16 Mar Sep '15 to India INR '16 Mar '15 to Apr India INR '16 Mar '15 to Apr Sri Lanka India INR '16 Mar '15 to Apr Netherlands USD '16 Mar '15 to Apr &RQJR%UD]]DYLOH Registration United States of of States United America Netherlands USDNetherlands '16 Mar '15 to Apr USD '16 Mar '15 to Apr Netherlands USD '16 Mar '15 to Apr Netherlands USD '16 Mar '15 to Apr Netherlands USD '16 Mar '15 to Apr Republic of Congo of Republic Netherlands USD '16 Mar '15 to Apr NetherlandsNetherlands USD USDNetherlands '16 Mar '15 to Apr '16 Mar '15 to Apr USD '16 Mar '15 to Apr Bangladesh BDT '16 Mar '15 to Apr India INR '16 Mar '15 to Apr 8QLWHG.LQJGRP b Netherlands USD '16 Mar '15 to Apr c Democratic a Mauritius INR '16 Mar '15 to Apr a b Netherlands USD '16 Mar '15 to Apr DL DM DK DJ DJ DG EH EH EH 6HSWHPEHU Limited Limited 1HWKHUODQGV %9 %KDUWL$LUWHO&RQJR+ROGLQJV%9 EG Name of the Subsidiary the Subsidiary Name of Note of Country %KDUWL$LUWHO%XUNLQD)DVR+ROGLQJV%9 EG %KDUWL$LUWHO*DERQ+ROGLQJV%9 EG %KDUWL$LUWHO$IULFD%9 %KDUWL$LUWHO1LJHU+ROGLQJV%9 EG %KDUWL$LUWHO5'&+ROGLQJV%9Congo (RDC) S.a.r.l.) 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Limited(subsidiary 20 i2i Limited Network a Mauritius USD '16 Mar '15 to Apr 16 Limited Indo Teleports 1415 Limited Lanka (Private) Bharti Infratel Bharti Limited Hexacom 13 Limited Bharti Airtel Lanka (Private) a Sri Lanka 12 Bharti (Mauritius) Airtel International 11 Ltd Pte Bharti (Singapore) International a Singapore USD '16 Mar '15 to Apr 10 Ltd Bharti Pte Airtel Holdings (Singapore) a Singapore SGD '16 Mar '15 to Apr 25 Bharti Airtel International 2324 Limited Wynk Services Bharti Limited Infratel a India INR 22 Data Limited Nxtra a India INR '16 Mar '15 to Apr 33 34 Airtel Congo S.A. c Sr Sr No. 9 Bharti Airtel (USA) Limited 27 28 S.A. Airtel Burkina Faso 31 a Burkina faso XOF 30 S.A. Airtel Tchad a Chad XAF 26 32 Airtel Gabon S.A. a Gabon XAF 44 S.A. Niger Celtel a Niger XOF 43 35 36 Celtel Airtel Congo (RDC) S.A. (Formerly 29 42 Airtel Malawi Limited a Malawi 40 39 37 38 41 6 34 Networks Limited Bangladesh Infratel 5 SAS Bharti Airtel (France) Limited Bharti Airtel (Hongkong) a b Hongkong France EUR '16 Mar '15 to Apr 1 Airtel Bangladesh Limited a Bangladesh BDT '16 Mar '15 to Apr 7 Bharti Airtel Services Limited a India INR '16 Mar '15 to Apr 2 Limited Bank Airtel Payments 8 6WDWHPHQW3XUVXDQWWR6HFWLRQRIWKH&RPSDQLHV$FWUH

352 Annual Report 2015-16 126-355 Bharti Airtel Limited 02-39 | Corporate Overview 40-125 | Statutory Reports Financial Statements % of % of Millions) ` ( shareholding 7 100% 5 75% 20 60% 41 79.06% 10 13 96.36% 100% Community Community Contribution ^       Capital period # reporting reporting during the Expenditure Expenditure

------100% 100% - - - - - 940 Dividend Proposed Proposed After After   (Loss) 3URǂW         Taxation Taxation  - - - for 194 (288) (285) Taxation Taxation Provision Provision 549 227 322 - 872 35 100% 263 175 88 - 365 6 100% (312) (52) (260) - 338 - 100% (Loss) Before Before 3URǂW     Taxation Taxation                       - - - - - (196) - - (196) ------100% - - - 100% - - - 428 - - 428 - - - 100% - - (2) - (2) - - - 100% - - - - (512) - (512) - - - 100% - - - - 135 - 135 - - - 100% - - 380 57 323 - - - 100% ------100% ------100% - - (282) - (282) - - - 100% - - 374 (107) 3 (110) - 86 - 100% - - 948 (847) - (847) - 4 - 100% - 186 Investments* Investments* Turnover 0 - - 991 - 991 - - - 100% Total Total  Liabilities               Assets Assets                                             Reserves Reserves Total ------100% ------100% ------100% ------100% 1 1 1 1 (906) 38 40 1 1 (120) - - (2) - (2) - - - 100% 0 (11) 3 14 - - (1) - (1) - - - 100% 1 327 417 89 ------0 - 100% 3 185 1 0 - 0 ------100% 5 292 0 1 1 - - 615 583 615 582 ------100% 100% 0 - 1 2 6 0 - 203 203 ------100% 0 - 4 (360) 1 177 0 2 (0) (26) 108 398 108 422 - - - - (0) (8) 0 - (0) (8) ------100% 100% 1 2 (16) (7) 2 1 17 6 - - - - (6) (0) - - (6) (0) ------75% 100% 1 (405) 839 1 1 0 454 453 - 1 0 0 0 - - - 100% 0 1 (17) (8) 9 1 26 8 - - 33 - 19 40 3 - 16 40 ------100% 90% 1 - 166 165 ------100% 3 2 150 (0) 169 16 2 0 - - - (2) - (0) - (2) - - (0) - - - - 100% - 100% 0 434 61 67 12 (422) 210 620 - 67 (114) 1 (115) - 8 - 100% 166 803 977 8 - - (2) - (2) - - - 100% 247 133 (179) Share Share           Capital 0.021 0.333 0.333 0.030 0.098 4.911 0.653 0.030 0.020 0.017 6.025 0.017 6.025 0.020 0.115 0.115 0.098 0.017 0.333 0.115 0.017 0.115 0.115 0.021 Rate as Rate 66.255 17.251 66.255 66.255 66.255 66.255 66.255 66.255 66.255 66.255 66.255 66.255 17.251 66.255 66.255 66.255 66.255 66.255 66.255 17.251 66.255 66.255 66.255 31, 2016 of March March of Exchange Exchange ODWLQJWRVXEVLGLDU\FRPSDQLHVIRUWKH\HDUHQGHG0DUFK 0DUFK 0DUFK 0DUFK 0DUFK 0DUFK 0DUFK 0DUFK 0DUFK 0DUFK 0DUFK 0DUFK 0DUFK 0DUFK 0DUFK -DQ WR'HF  'HFHPEHU -DQ WR'HF  'HFHPEHU -DQ WR'HF -DQ WR'HF  'HFHPEHU 'HFHPEHU -DQ WR'HF  'HFHPEHU Reporting Period Reporting Period End Financial Year -DQ WR'HF  'HFHPEHU -DQ WR'HF  'HFHPEHU -DQ WR'HF  'HFHPEHU -DQ WR'HF -DQ WR'HF  'HFHPEHU 'HFHPEHU -DQ WR'HF  'HFHPEHU -DQ WR'HF  'HFHPEHU -DQ WR'HF -DQ WR'HF  'HFHPEHU 'HFHPEHU -DQ WR'HF  'HFHPEHU -DQ WR'HF  'HFHPEHU -DQ WR'HF  'HFHPEHU -DQ WR'HF  'HFHPEHU -DQ WR'HF  'HFHPEHU -DQ WR'HF  'HFHPEHU -DQ WR'HF  'HFHPEHU -DQ WR'HF  'HFHPEHU -DQ WR'HF  'HFHPEHU -DQ WR'HF  'HFHPEHU -DQ WR'HF  'HFHPEHU -DQ WR'HF -DQ WR'HF  'HFHPEHU 'HFHPEHU -DQ WR'HF  'HFHPEHU -DQ WR'HF  'HFHPEHU -DQ WR'HF  'HFHPEHU Reporting Currency TZS 0:. -DQ WR'HF  'HFHPEHU TZS 0:. -DQ WR'HF  'HFHPEHU XAF XAF USD Ghana GHS Netherlands USD '16 Mar '15 to Apr Netherlands USD '16 Mar '15 to Apr Netherlands USD '16 Mar '15 to Apr Netherlands USD '16 Mar '15 to Apr Netherlands USD '16 Mar '15 to Apr Registration Netherlands USD '16 Mar '15 to Apr 7DQ]DQLD Netherlands USD '16 Mar '15 to Apr .HQ\D .(6 -DQ WR'HF  'HFHPEHU 7DQ]DQLD Uganda UGS NetherlandsNetherlands USD USD '16 Mar '15 to Apr '16 Mar '15 to Apr Netherlands USD '16 Mar '15 to Apr Netherlands USD '16 Mar '15 to Apr Netherlands USD '16 Mar '15 to Apr Sierra LeoneSierra SLL Netherlands USD '16 Mar '15 to Apr &RQJR%UD]]DYLOH Netherlands-HUVH\ USD '16 Mar '15 to Apr a Mauritius USD a a Mauritius USD a a a Zambia ZMW a Mauritius USD FI DI DH &RQJR%UD]]DYLOH GH %KDUWL$LUWHO*KDQD+ROGLQJV%9 EG (Mauritius) Limited %KDUWL$LUWHO1LJHULD%9 EG $LUWHO7DQ]DQLD/LPLWHG %KDUWL$LUWHO0DGDJDVFDU+ROGLQJV%9 EG (Mauritius) Limited) Zebrano (Formerly %KDUWL$LUWHO1LJHULD+ROGLQJV,,%9 EG %KDUWL$LUWHO1LJHULD+ROGLQJV%9 EGH Name of the Subsidiary the Subsidiary Name of Note of Country %KDUWL$LUWHO6HUYLFHV%9 EG %KDUWL$LUWHO=DPELD+ROGLQJV%9$LUWHO0RELOH&RPPHUFH .HQ\D /LPLWHG EG $LUWHO0RELOH&RPPHUFH 7DQ]DQLD /LPLWHG (Formerly ZMP Limited) (Formerly %KDUWL$LUWHO8JDQGD+ROGLQJV%9%KDUWL$LUWHO7DQ]DQLD%9 EG EG $IULFD7RZHUV19 EG %KDUWL$LUWHO6LHUUD/HRQH+ROGLQJV%9 EG $LUWHO0RELOH&RPPHUFH%9 EG %KDUWL$LUWHO'7++ROGLQJV%9 EG S.A. $LUWHO0RELOH&RPPHUFH+ROGLQJV%9 EG 61 62 Airtel Ghana Limited 53 Channel Sea Management Company 60 51 52 54 Bharti Holdings Limited Airtel Rwanda 59 5556 Montana International S.A. Airtel Madagascar 58 Nigeria Limited MSI-Celtel a a Mauritius e Madagascar Nigeria USD MGA NGN 57 Sr Sr No. 63 64 Airtel Networks Limited a Nigeria NGN 80 Limited Airtel (Seychelles) a Seychelles SCR 65 6667 Limited Airtel Mobile Commerce a Malawi 81 6869 Ghana Limited Airtel Mobile Commerce (Mauritius) Holdings Limited Celtel a Ghana a Mauritius GHS USD 70 Zambia Limited Airtel Mobile Commerce 82 Uganda Limited Airtel Mobile Commerce a Uganda UGS 49 ## Airtel Uganda Limited 48 50 4647 Airtel (SL) Limited Airtel Networks Zambia Plc a c Zambia Leone Sierra SLL ZMW 7172 (SL) Limited Airtel Mobile Commerce S.a.r.l. Tchad Airtel Mobile Commerce a a Leone Sierra Chad SLL XAF 83 84 Ghana Limited Airtel Towers a Ghana GHS 45 73 74 S.A. (Gabon) Airtel Money a Gabon XAF 85 86 Services (SL) Limited Airtel DTH 75 Limited Malawi Towers a Malawi 87 Services Nigeria Limited Airtel DTH e Nigeria NGN 76 S.A. Niger Airtel Money a Niger XOF 88 Limited (SL) Company Airtel Towers a Leone Sierra SLL 77 Cellulaire Malgache de Téléphone Société 9091 S.A. Congo Towers S.A. Towers Madagascar a Madagascar MGA 92 Congo S.A. Mobile Commerce a 78 79 Limited Indian Ocean Telecom a 6WDWHPHQW3XUVXDQWWR6HFWLRQRIWKH&RPSDQLHV$FWUH

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354 Annual Report 2015-16 126-355 Bharti Airtel Limited 02-39 | Corporate Overview 40-125 | Statutory Reports Financial Statements - Millions) ` ( consolidation Not Considered in Not Considered - (45) - (161) - (1) 10 - March 31, 2016 March  3URǂW/RVVIRUWKH\HDUHQGHG consolidation Considered in Considered  114 441 (4.3)   audited audited  Net Worth Net Worth as per latest latest as per shareholders shareholders Balance Sheet attributable to attributable to capital capital capital capital capital LQǃXHQFH % of share share % of % of share share % of % of share share % of % of share share % of % of share share % of Description Description RIKRZWKHUH LVVLJQLǂFDQW PHQWVRIYHQWXUHULQYHVWRU 30.14%  Extent of of Extent DUHKROGLQJRIWKH&RPSDQ\ holding % - 35% 10 50% 34 10% Amount of Amount of Investment Investment Joint Venture in Associate / in Associate ODWLQJWRVXEVLGLDU\FRPSDQLHVIRUWKH\HDUHQGHG0DUFK 260 186 26% company as of March 31, 2016 March as of company shares     Number of of Number  Share of Associates / Joint Ventures held by the held by / Joint Ventures Associates of Share FDUU\LQJYDOXHRILQYHVWPHQWVLQWKHVWDQGDORQHnjQDQFLDOVWDWH PLWHG EHFDPHVXEVLGLDU\RI%KDUWL$LUWHO/LPLWHGZHI$XJXVW VKDUHKROGLQJRI%KDUWL,QIUDWHO/LPLWHGDVDJDLQVWHNjHFWLYHVK -XQH 0DUFK 'HFHPEHU 0DUFK 0DUFK Latest Audited Audited Latest Balance Sheet Date Company Limited Company 7DQ]DQLD Telecommunications Limited Company Name of the Associate / the Associate Name of Joint Venture

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356 Annual Report 2015-16

Registered & Corporate Office Bharti Airtel Limited Bharti Crescent, 1, Nelson Mandela Road, Vasant Kunj, Phase II, New Delhi - 110 070, India. CIN No.: L74899DL1995PLC070609 Telephone No.: +91 11 46666100 Fax No.: +91 11 46666137 Email: [email protected] Website: www.airtel.com