BHARTI INFOTEL LIMITED - Airtel

BHARTI INFOTEL LIMITED
(Formerly BHARTI TELENET LIMITED)
3.12 The Company has a system of determining unserviceable
or damaged finished goods on the basis of technical
evaluation and on such basis, in our opinion, adequate
amounts have been written off such stocks in the
accounts.
3.13 The Company has not accepted any deposits from the
public.
3.14 In our opinion, the Company’s present internal audit
system is generally commensurate with its size and nature
of business.
3.15 The Central Government of India has not prescribed
the maintenance of cost records by the Company
under Section 209(1)(d) of the Act for any of its
products.
3.16 The Company has regularly deposited, during the year,
Provident Fund and Employees’ State Insurance dues
with the appropriate authorities in India.
3.17 At the last day of the financial year there was no amount
outstanding in respect of undisputed income tax, sales
tax, customs duty and excise duty which were due for
more than six months from the date they became
payable.
3.18 During the course of our examination of the books of
account carried out in accordance with the generally
accepted auditing practices in India, we have not come
across any personal expenses which have been charged
to Profit and Loss Account, nor have we been informed
of such case by the management other than those payable
under contractual obligations and/or accepted business
practices.
3.19 In respect of services rendered:
(a) The nature of services is such that it does not
involve consumption of materials and stores.
(b) Considering the nature of the services rendered
and the basis of billing, it is not necessary to have a
system of allocation of man-hours utilised to the
relative jobs.
3.20 In respect of trading activities:
Damaged goods have been determined pursuant to the
Company’s laid down procedures and consequential
adjustments, which have not been significant, have been
made in the accounts.
194 ANNUAL REPORT 2002-2003
3.21 The other clauses of the Order are not applicable to the
Company’s activities for the year and accordingly we are
not commenting on the same.
4. Further to our comments in paragraph 3 above, we report that:
(a) We have obtained all the information and explanations,
which to the best of our knowledge and belief were
necessary for the purposes of our audit;
(b) In our opinion, proper books of account as required by
law have been kept by the Company so far as appears
from our examination of those books;
(c) The Balance Sheet, Profit and Loss Account and Cash
Flow Statement dealt with by this report are in agreement
with the books of account;
(d) In our opinion, the Balance Sheet, Profit and Loss
Account and Cash Flow Statement dealt with by this
report comply with the accounting standards referred to
in sub-section (3C) of Section 211 of the Act;
(e) On the basis of written representations received from
the directors, as on March 31, 2003 and taken on record
by the Board of Directors, we report that none of the
directors is disqualified as on March 31, 2003 from being
appointed as a director in terms of clause (g) of subsection
(1) of Section 274 of the Act;
(f) In our opinion and to the best of our information and
according to the explanations given to us, the said
financial statements together with the notes thereon
and attached thereto give in the prescribed manner the
information required by the Act, give a true and fair
view in conformity with the accounting principles
generally accepted in India:
(i) in the case of the Balance Sheet, of the state of
affairs of the company as at March 31, 2003;
(ii) in the case of the Profit and Loss Account, of the
loss for the year ended on that date; and
(iii) in the case of the Cash Flow Statement, of the cash
flows for the year ended on that date.
U. RAJEEV
Partner
For and on behalf of
Place : New Delhi PRICE WATERHOUSE
Date : September 16, 2003 Chartered Accountants