Airtel 2011 Annual Report Download - page 53

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51
Name of the Statutes Nature of
the Dues
Amount Disputed
(in ` Mn)
Period to Which
it Relates
Forum where the dispute is
pending
Income Tax Act, 1961 Income Tax 2,884.73 1994-2011 Commissioner of Income Tax
(Appeals)
Income Tax Act, 1961 Income Tax 5.95 1994-1995;
1996-97;
1999-00; 2003-05
High Court
Income Tax Act, 1961 Income Tax 7,958.59 2006-07 Dispute Resolution Panel
Income Tax Act, 1961 Income Tax 1,602.90 1996-97; 2005-10 Assessing Officer
Income Tax Act, 1961 Income Tax 1,296.30 1997-98, 2000-01
to 2006-07
Income Tax Appelate Tribunal
Sub Total (C) 13,748.46
Customs Act-1962 Custom Act 2,167.15 2001-04; 2007-08 Commisioner of Customs
Customs Act-1962 Custom Act 31.19 2005-06 Customs, Excise and Service Tax
Appellate Tribunal, Chennai
Sub Total (D) 2,198.35
The above mentioned figures represent the total disputed cases without any assessment of Probable, Possible and Remote, as done in case of
Contingent Liabilities. Of the above cases, total amount deposited in respect of Sales Tax is ` 1,024 Mn, Service Tax is ` 15 Mn, Income Tax
is ` 1,572 Mn and Custom Duty is ` 74 Mn.
(x) The Company has no accumulated losses at the end of the
financial year and it has not incurred cash losses in the
current and immediately preceding financial year.
(xi) Based on our audit procedures and as per the information
and explanations given by the management, we are of the
opinion that the Company has not defaulted in repayment of
dues to a financial institution, bank or debenture holders.
(xii) According to the information and explanations given to us
and based on the documents and records produced to us, the
Company has not granted loans and advances on the basis
of security by way of pledge of shares, debentures and other
securities.
(xiii) In our opinion, the Company is not a chit fund or a nidhi/
mutual benefit fund/society. Therefore, the provisions of
clause 4(xiii) of the Companies (Auditor’s Report) Order,
2003 (as amended) are not applicable to the Company.
(xiv) In our opinion, the Company is not dealing in or trading
in shares, securities, debentures and other investments.
Accordingly, the provisions of clause 4(xiv) of the
Companies (Auditor’s Report) Order, 2003 (as amended) are
not applicable to the Company.
(xv) According to the information and explanations given to us,
the Company has given guarantee for loans taken by others
from bank or financial institutions, the terms and conditions
whereof in our opinion are not prima facie prejudicial to the
interest of the Company.
(xvi) Based on information and explanations given to us by the
management, term loans were applied for the purpose for
which the loans were obtained.
(xvii) According to the information and explanations given to
us and on overall examination of the balance sheet of the
Company, funds amounting to ` 40,796 Mn raised on short-
term basis (primarily represented by capital creditors) have
been used for long-term investment (primarily represented
by fixed assets).
(xviii) The Company has not made any preferential allotment
of shares to parties or companies covered in the register
maintained under Section 301 of the Companies Act, 1956.
(xix) The Company has created security or charge in respect of
debentures outstanding at the year end.
(xx) The Company has not raised any money by public issues
during the year.
(xxi) According to the information and explanations furnished
by the management, which have been relied upon by us,
there were no frauds on or by the Company noticed or
reported during the course of our audit except few cases of
fraud, primarily in the nature of unauthorized use of Company’s
services, on the Company by employees and external parties
estimated at ` 5 Mn and ` 63.7 Mn, respectively, as detected
by the management for which appropriate steps were taken
to recover the amount and ` 2.8 Mn out of such estimated
amounts, has been recovered by the Company.
For S.R. BATLIBOI & ASSOCIATES
Firm Registration No. 101049W
Chartered Accountants
per Prashant Singhal
Partner
Membership No. 93283
Place: New Delhi
Date: May 5, 2011