AIRTELBHARTI AIRTEL LIMITEDBalance Sheet as at March 31, 2013In Millions

ParticularsNotesAs atMarch 31, 2013EQUITY AND LIABILITIES Shareholders Funds (a) Share Capital 518988(b) Reserves and Surplus 6522474541,462Non Current Liabilities (a) Long Term Borrowings 798408(b)Deferred Tax liabilities811503(c) Other Long Term Liabilities 931708(d) Long Term Provisions 101494143,113Current Liabilities (a) Short Term Borrowings 1131390(b) Trade Payables 1251372(c) Other Current Liabilities 13106034(d) Short Term Provisions 145461194,257TOTAL 878,832878,832ASSETS Non Current Assets (a) Fixed Assets (i) Tangible Assets 15264362(ii) Intangible Assets 16167464(iii) Capital Work in Progress 10308

(b) Non Current Investments 17271191(c) Long Term Loans and Advances 1889358(d)Other non current assets1914111816,794Current Assets (a) Current Investments 2010800- (b) Inventories 2121(c) Trade Receivables 2222468(d) Cash and Bank Balances 233627(e) Short Term Loans and Advances 2414133(f) Other Current Assets 251098962,038TOTAL 878832878,832

AVERAGE TOTAL ASSET841034.5

STATEMENT OF PROFIT AND LOSS ACCOUNT For the year endedFOR THE YEAR ENDED MARCH 31, 201231.03.2012(Rs. In MILLION)

PARTICULARSNOTESINCOME Revenue from operations 453509Total Income 453509EXPENSESCost of goods sold 3119Gross Profit453490Access charges 74212License fee and spectrum charges 48815Employee benefits expenses 15113Rent 3352,225Power and fuel 3335699Other expenses 3391943EBITDA135,483Depreciation and amortisation expense 3568267EBIT67,216Finance costs3416523EBT50,693Current tax 13604Deferred tax 3,136MAT credit 315519,895EAT30,798Earnings per share (Rs)8.1100081425PROFITABILTY RATIOIn (%)1Gross profit margin100

2Operating Margin11.1779479569

3Net Profit Margin6.7910449407

4ROE5.6879337793

5ROE6.79104494070.51603605691.62307234865.6879337793

6ROE0.60753950250.754180552214.82131556370.51603605691.62307234865.6879337793

7ROA3.6619187441

8ROIC40836.3751997317704,6285.7954516709

9ROCE7.5315865167

IDEAIDEA LIMITEDBalance Sheet as at March 31, 2012RS IN MILLIONS

ParticularsN0TESAs atMarch 31, 2013EQUITY AND LIABILITIES Shareholders Funds (a) Share Capital 333,143(b) Reserves and Surplus 4107,055.79140,199.01Non-Current Liabilities(a) Long Term Borrowings 5105,743.96(b)Deferred Tax Liabilities (Net)610,231.17(c) Other Long Term Liabilities 78,266.48(d) Long Term Provisions 82,018.86126,260.47Current Liabilities (a) Short Term Borrowings 97,050.38(b) Trade Payables 24,315.89(c) Other Current Liabilities 10415,201.05(d) Short Term Provisions 111,239.6977,807.01TOTAL 344,266.49ASSETS Non Current Assets (a) Fixed Assets (i) Tangible Assets 12176,859.46(ii) Intangible Assets 1282526(iii) Capital Work in Progress 128,434.25(b) Goodwill1316,377.07(c) Long Term Loans and Advances 1430,018.68314,215.46Current Assets (a) Current Investments 159,296.00(b) Inventories 16545.10(c) Trade Receivables 179,156.79(d) Cash and Bank Balances 181,157.36(e) Short Term Loans and Advances 199,887.34(f) Other Current Assets 208.4430,051.03TOTAL 344,266.49

Total average assets327053.51STATEMENT OF PROFIT AND LOSS ACCOUNT For the year endedFOR THE YEAR ENDED MARCH 31, 201231.03.2012(Rs. In MILLION)

PARTICULARSNOTESINCOMEService Revenue 220,434.35TOTAL 220,434.35OPERATING EXPENDITUREPersonnel Expenditure 2210,038.30Network Expenses and IT Outsourcing Cost 2363,551.95License Fees and WPC Charges 2424,752.50Roaming & Access Charges 2540,145.27Subscriber Acquisition & Servicing Expenditure 2621,324.32Advertisement and Business Promotion Expenditure 4,535.61Administration & Other Expenses 274890.68Total169238.63

EBITDA51,195.72Depreciation 25,383.58Amortisation of Intangible Assets 5159.99EBIT20,652.15Finance & Treasury Charges 8134.55EBT12,517.60Provision for Taxation - Current 2737.36 Deferred 4,703.79 MAT Credit 2737.36EAT2,339.09

Earnings Per Share2.357

PROFITABILTY RATIOIn (%)1Gross profit margin100

2Operating Margin9.3688438304

3Net Profit Margin1.0611277235

4ROE1.668406931

5ROE1.06112772350.64030150022.45555578461.668406931

6ROE0.18686409540.60611607029.36884383040.64030150022.45555578461.6684

7ROA0.7152010079

8ROIC3859.1453268598279,9661.3784345049

9ROCE2.2118853578

TATATATA COMMUNICATION LIMITEDBalance Sheet as at March 31, 2012RS. IN CRORE

ParticularsNotesAs atMarch 31, 2013EQUITY AND LIABILITIES Shareholders Funds (a) Share Capital 3285(b) Reserves and Surplus 47,231.427,516.42Non-Current Liabilities(a) Long Term Borrowings (b)Deferred Tax Liabilities (Net)5625(c) Other Long Term Liabilities 60(d) Long Term Provisions 7391.568122.16Current Liabilities 1,138.72(a) Short Term Borrowings (b) Trade Payables 9149.7(c) Other Current Liabilities 101,248.30(d) Short Term Provisions 11537.1712110.52TOTAL 2,045.69ASSETS 10,700.83

Non Current Assets (a) Fixed Assets 13(i) Tangible Assets 4,694.91(ii) Intangible Assets 138.54(iii) Capital Work in Progress 174.665,008.11

(b) Non Current Investments 142,030.51(c)Deferred Tax assets68.71(d) Long Term Loans and Advances 151,683.00(e)Other non current assets168.083,730.32

Current Assets(a) Current Investments17462.42(b) Inventories 4.20(c) Trade Receivables 18861.02(d) Cash and Bank Balances 19328.62(e) Short Term Loans and Advances 20285.85(f) Other Current Assets 2120.301,962.41TOTAL 10,700.84Average total asset10778.465STATEMENT OF PROFIT AND LOSS ACCOUNT For the year endedFOR THE YEAR ENDED MARCH 31, 201231.03.2012(Rs. In MILLION)

PARTICULARSNOTES

INCOME Revenue from telecommunication services4,416.12Total Revenue4,416.12

EXPENSESNetwork and transmission 231963.2Employee benefits 24639.46Operating and other expenses 25813.25Depreciation and amortization13762.4EBIT237.81Finance cost 26119.69Total Expenses 4,298.00

EBT118.12 Tax expense:(a) Current tax 206.58(b) Deferred tax -25.13 EAT-113.59Earnings Per Share -3.98PROFITABILTY RATIOIn (%)1Gross profit margin100

2Operating Margin5.3850438847

3Net Profit Margin-2.572167423

4ROE-1.5112247586

5ROE-2.5721674230.41268909731.4236617964-1.5112247586

6ROE-0.96164917030.49669904555.38504388470.41268909731.4236617964-1.5112247586

7ROA-1.0538606379

8ROIC-228.68978919748,805-2.597319079

9ROCE2.7476158676

RELIANCERELIANCE COMMUNICATIONS LIMITEDBalance Sheet as at March 31, 2012RS. IN CRORE

ParticularsNotesAs atMarch 31, 2013EQUITY AND LIABILITIES Shareholders Funds (a) Share Capital 2.011,032(b) Reserves and Surplus 2.0232,11033,142Non-Current Liabilities(a) Long Term Borrowings 2.0322,891(b) Other Long Term Liabilities 2.05143(c) Long Term Provisions 2.05437027,404Current Liabilities (a) Short Term Borrowings 2.067,436(b) Trade Payables 2.071,478(c) Other Current Liabilities 2.083,612(d) Short Term Provisions 2.092,86415,390TOTAL 75,936

ASSETS Non Current Assets (a) Fixed Assets (i) Tangible Assets 2.116,761(ii) Intangible Assets 2.119,297(iii) Capital Work in Progress 2.173536,793

(b)Non current investment2.1121,013(c)Long term loans and advances2.124,50862,314

Current Assets (a) Current Investments 2.130(b) Inventories 2.14304(c) Trade Receivables 2.152,066(d) Cash and Bank Balances 2.16228(e) Short Term Loans and Advances 2.178736(f) Other Current Assets 2.182,28813,622TOTAL 75,936

Average total asset80,821STATEMENT OF PROFIT AND LOSS ACCOUNT For the year endedFOR THE YEAR ENDED MARCH 31, 201231.03.2012(Rs. In MILLION)

PARTICULARSNOTESRevenue from Operations 2.1911,267Total Revenue 11,267EXPENDITURE Access Charges, License Fees and Network Expenses 2.217,270Employee Benefits Expenses 2.22290Depreciation and Amortisation Expenses 2.12,957Depreciation adjusted against Provision for Business Restructuring 99Depreciation adjusted against General Reserve III 1,177Sales and General Administration Expenses 979EBIT-1,505Finance Costs 2.231,976EBT-3,481Profit/ (Loss) for the year before Tax and Adjustment Current Tax and Deferred Tax 0Excess provision for tax of earlier years 0EAT-3,481

EARNING PER SHARE (RS)-11.6033333333

PROFITABILTY RATIOIn (%)

1Gross profit margin100

2Operating Margin-13.3575929706

3Net Profit Margin-30.895535635

4ROE-10.5032888782

5ROE-30.8955356350.14837494732.2912316698-10.5032888782

6ROE12.3129568106-13.35759297060.14837494732.2912316698-10.5032888782

7ROA-4.3070489106

8ROIC-150567,982-2.2138213056

9ROCE3.2636342616

PROFIT RATIOPROFITABILTY RATIOIn (%)Serial No.ParticularsBHARATI AIRTEL LTDIDEA CELLULAR LTDTATA COMMUNICATION LTDRELIANCE COMMUNICATION LTDIndustry

1Gross profit margin100.00100.00100.00100.00100.00

2Operating Margin11.189.365.39-13.383.14

3Net Profit Margin6.791.06-2.57-30.90-25.61

4ROE5.691.67-1.55-10.50-1.17

5ROE (three stage DuPont)5.691.67-1.55-10.50-1.17

6ROE(five stage DuPont)5.691.67-1.55-10.50-1.17

7ROA3.660.72-1.05-4.31-0.25

8ROIC5.801.38-2.60-2.210.59

9ROCE7.532.212.753.263.94

10EARING PER SHARE (Rs)8.112.36-3.98-11.60-1.28

ANALYSIS

Operating Margin-> The Operating Margin of a Airtel is higher than its competitors.

Net Profit Margin-> The Net Profit Margin is highest for Airtel when compared with its competitors.

ROE(3 stage) ROE was highest for Airtel campared for its competitors. Bharti Airtel- The highest contribution of ROE is from the net profit margin while the equity multiplier is greater than one. Idea Cellular-The highest contribution of ROE is the equity multiplier which is greater than two. Tata communication- A negative net profit margin coupled win lower asset turnover ratio lead to a lower ROE. Reliance communication- This company has the lowest net profit margin, hence pulling its high equity multiplier abysmally down to -10%.

ROE(5 stage) Effective Tax Impact was highest for Reliance and was lowest for IDEA. The Net Profit Margin is highest for airtel for airtel while the lowest for Reliance. The Asset Turnover Ratio is highest for IDEA and lowest for Reliance. The Equity Multiplier is highest for IDEA but lowest for TATA.

ROIC is highest for AIRTEL while it is lowest for TATA.

ROCE is highest for AIRTEL and it is lowest for IDEA.

EPS is highest for AIRTEL and lowest for Reliance.

AIRTEL is outperforming the industry in all the profit ratios.