GD Goenka

Balance Sheet

Company Name: Bharti Airtel Ltd.

(Indian Rupee .in Millions)

Year End Y201103 Y201003 Y200903Currency Rate(INR) As Of 31-03-2011 31-03-2010 31-03-2009Currency Rate (INR) In INR 1 1 1SOURCES OF FUNDSShare Capital 18988 18988 18982.4Share warrants & Outstandings 2786 1861 1162.17Reserve 419342 346523 256295.07Shareholder's Funds 441116 367372 276439.64Secured Loans 171 394 517.3Unsecured Loans 118804 49995 76619.17Total Debts 118975 50389 77136.47Total Liabilities 560091 417761 353576.12Net_Block 614375 442125 372667.02Less: Accumulated Depreciation 207367 161875 122533.44Less: Impairment of Assets 0 0 0Net Block 407008 280250 250133.59Lease Adjustment A/c 0 0 0Capital Work in Progress 64976 15947 25666.69Pre-operative Expenses pending 0 0 0Assets in transit 0 0 0Investments 118130 157733 117777.58Current Assets, Loans & AdvancesInventories 344 272 621.51Sundry Debtors (Debotrs) 23758 21050 25500.49Cash and Bank 1338 8167 22516.03Other Current Assets 1015 664 1197.13Loans and Advances 167296 110090 71494.72Total Current Assets 193751 140243 121329.88Less : Current Liabilities and ProvisionsCurrent Liabilities 147963 122848 131179.82Provisions 70535 53531 33423.78Total Current Liabilities 218498 176379 164603.6Net Current Assets -24747 -36136 -43273.72Miscellaneous Expenses not written off 0 0 0.87

Deferred Tax Assets / Liabilities -5276 -33 3271.1Total Assets 560091 417761 353576.12Contingent Liabilities 500370 53964 30835.11

We 0.7875790.212421Wd

GD Goenka

Profit & Loss

Company Name: Bharti Airtel Ltd.

Year End Y201103 Y201003 Y200903No of Months 12 12 12Gross Sales 380158 356095 340142.9Less: Excise 0 0 0Net Sales 380158 356095 340142.9EXPENDITURE :Increase/Decrease in Stock -72 350 -1126.91Raw Materials Consumed 233 -147 1250.96Power & Fuel Cost 25233 22650 21732.94Employee Cost 14151.5 15005.5 14045.45Other Manufacturing Expenses 74154 67406 65400.53General and Administration Expenses 96590.5 83886.5 45176.27Selling and Distribution Expenses 31802 24049 21763.99Miscellaneous Expenses 6201 5310 57409.04Less: Pre-operative Expenses Capitalised 0 0 0Total Expenditure 248293 218510 225652.27PBIDT (Excl OI) 131865 137585 114490.63Other Income 4918 3773 5251.35Operating Profit 136783 141358 119741.98Interest 3409 -5680 4275.62PBDT 133374 147038 115466.36Depreciation 46116 40045 33850.99Profit Before Taxation & Exceptional Items 87258 106993 81615.37Exceptional Income / Expenses 0 0 0Profit Before Tax 87258 106993 81615.37Provision for Tax 10089 12731 4176.98PAT 77169 94262 77438.39Extra items 0 0 0Appropriations 344954 279290 195465.57Dividend(%) 20 20 20EPS 20.32 24.82 40.79Book Value 115.42 96.24 145.01

Variable Costs

Fixed Costs

GD Goenka

Cash Flow

Company Name: Bharti Airtel Ltd.

(Rs.in Millions)Particulars Y201103 Y201003 Y200903No of Months 12 12 12Profit Before Tax 87258 106993 81615.37Adjustment 54132 38844 55471Changes In working Capital 7047 811 -2876.97Cash Flow after changes in Working Capital 148437 146648 134209.4Tax Paid -16283 -19721 -10311.1Cash From Operating Activities 132154 126927 123898.3Cash Flow from Investing Activities -190750 -106018 -114310.6Cash from Financing Activites 56465 -25393 -6719.99Net Cash Inflow / Outflow -2131 -4484 2867.72Opening Cash & Cash Equivalents 3415 7899 5027.38Cash & Cash Equivalent on Amalgamation / Take over / Merger 0 0 3.71Cash & Cash Equivalent of Subsidiaries under liquidations 0 0 0Translation adjustment on reserves / op cash balalces frgn subsidiaries 0 0 0Effect of Foreign Exchange Fluctuations 0 0 0Closing Cash & Cash Equivalent 1284 3415 7898.8

GD Goenka

Financial Ratios

Company Name: Bharti Airtel Ltd.

NULLYear End 201103 201003 200903 200803 200703 200603Operational & Financial RatiosEarnings Per Share (Rs) 20.32 24.82 40.79 32.9 21.27 10.62CEPS(Rs) 32.46 35.37 29.31 25.49 17.21 9.09Adjusted EPS (Rs.) 20.32 24.82 20.4 16.45 10.64 5.31DPS(Rs) 1 1 2 0 0 0Adjusted DPS(Rs) 1 1 1 0 0 0Book NAV/Share(Rs) 115.42 96.24 145.01 106.34 60.17 38.67Adjusted Book Value (Rs) 115.42 96.24 72.5 53.17 30.09 19.33Tax Rate(%) 11.56 11.9 5.12 10.45 12.35 11.97Dividend Pay Out Ratio(%) 4.92 4.03 4.9 0 0 0Margin RatiosCore EBITDA Margin(%) 34.69 38.64 33.66 40.57 40.6 34.3EBIT Margin(%) 23.85 28.45 25.25 28.62 27.43 22.39Pre Tax Margin(%) 22.95 30.05 23.99 27.13 25.86 20.36PAT Margin (%) 20.3 26.47 22.77 24.29 22.67 17.92Cash Profit Margin (%) 32.43 37.72 32.72 37.65 36.67 30.68Performance RatiosROA (%) 15.78 24.44 24.91 28.67 27.92 18.57ROE (%) 19.2 29.42 32.46 39.53 43.06 34.12ROCE (%) 18.54 26.27 27.63 33.77 33.81 23.27Asset Turnover(x) 0.78 0.92 1.09 1.18 1.23 1.04Inventory Turnover(x) 1234.28 797.07 571.61 491.11 542.85 455.26Debtors Turnover(x) 16.97 15.3 12.77 11.06 12.07 12.53Sales/Fixed Asset(x) 0.72 0.87 1.04 0.94 0.8 0.72Working Capital/Sales(x) -15.36 -9.85 -7.86 -4.39 -3.3 -3Efficiency RatiosFixed Capital/Sales(x) 1.39 1.14 0.96 1.06 1.25 1.39Receivable days 21.51 23.86 28.58 33.01 30.25 29.12Inventory Days 0.3 0.46 0.64 0.74 0.67 0.8Payable days 168.64 179.37 198.9 208.4 215.13 215.35Growth RatioNet Sales Growth(%) 6.76 4.69 32.33 44.45 58.47 42.08Core EBITDA Growth(%) -3.24 18.05 10.99 46.33 86.85 36.62EBIT Growth(%) -10.51 17.96 16.77 50.68 94.21 34.49PAT Growth(%) -18.13 21.73 24.02 54.82 100.45 66.19EPS Growth(%) -18.13 -39.16 23.99 54.66 100.23 62.64Financial Stability RatiosTotal Debt/Equity(x) 0.27 0.14 0.28 0.33 0.47 0.65Current Ratio(x) 0.89 0.8 0.74 0.58 0.49 0.47Quick Ratio(x) 0.89 0.79 0.73 0.57 0.49 0.46Interest Cover(x) 26.6 -17.84 20.09 19.19 17.41 11.03

200503 200403 200303 200203

6.53 0 0 06.02 0.01 0.01 0.013.27 0 0 0

0 0 0 00 0 0 0

24.12 26.03 26.01 25.9912.06 13.01 13 12.99

22.6 -48.54 19.15 4.990 0 0 0

35.1323.6519.7915.3228.22

16.16 0.01 0 026.05 0.01 0 025.06 0.42 0.65 0.28

1.06 0 0 0250.22

11.041.19 0 0 0

-3.73 0 0 0

0.8433.06

1.46116.87 57.77 240.99 319.67

0 -27.4 181.86 -62.318547.94 -31.39 241.43 -68.81

0 65.22 73.88 -66.90 65.22 73.88 -98.1

1.12 0.13 0 0.020.52 179.75 292.11 64.80.52 179.75 304.53 72.516.13 1.01 1.01 1.01

2011Sales 380158(Variable Cost)Raw materials consumed 233Power and Fuel costs 25233Employee Costs 14151.5General and Administration Expenses 96590.5

Contribution 243950(Fixed Cost)Other Manufacturing Expenses 74154Selling and Distribution Expenses 31802Miscellaneous Expenses 6201

Profit (Operating Leverage) 131793(Interest) 3409PBT 128384(Tax Rate) 10089PAT(Financial Leverage) 118295

Operating Management 2011 2010 2009

ROCE 17.19% 25.78% 28.82%NOPAT Margin -83.23% -65.38% -51.00%

Investment Management

Accounts Receivable Turnover 16.00 16.92 13.34Day's Receivable 22.81 21.58 27.36

Inventory Turnover 1105.1105 1309.173 547.2847Day's Inventory 0.33 0.28 0.67

Financing StrategyShort Term

Current Ratio 0.89 0.80 0.74

Long Term

Debt-to-Equity Ratio 0.27 0.14 0.28

Dividend Policy

Interest Coverage Ratio (Earning Basis) 26.60 -17.84 20.09Interest Coverage Ratio (Cashflow Basis) 42.73 -23.59 30.95

OPERATING ASSETS 2011 2010 2009net block 407008 280250 250133.6Miscellaneous Expenses not written off 0 0 0.87capital work in progress 64976 15947 25666.69total current assets 193751 140243 121329.9total operating assets 665735 436440 397131

OPERATING LIABILITIEStotal current liabilities 218498 176379 164603.6deferred tax assets/liabilities -5276 -33 3271.1Total operating liabilities 213222 176346 167874.7

NOA 452513 260094 229256.3

NOA 452513 260094 229256.3NFO 3631 -105483 -39478.94CSE 448882 365577 268735.3financial expense 3409 -5680 4275.62financial income 4918 3773 5251.35tax 0.12 0.12 0.05NFE -393572 -327081 -250925profit after tax 77169 94262 77438.39NOPAT -316403 -232819 -173487RNOA -0.70 -0.90 -0.76NBC -108.39 3.10 6.36ROCE 17.19% 25.78% 28.82%

FINANCIAL LIABILITIES 2011 2010 2009Secured Loans 171 394 517.3Unsecured Loans 118804 49995 76619.17Share Warrants & Outstandings 2786 1861 1162.17Total financial Liabilities 121761 52250 78298.64

FINANCIAL ASSETSInvestments 118130 157733 117777.6Total Financial Assets 118130 157733 117777.6

NFO 3631 -105483 -39478.94Equity 441116 367372 276439.6

444747 261889 236960.7

FLEV 0.008089 -0.288538 -0.146906SPREAD 107.69 -4.00 -7.11

17.19% 25.78% 28.82%

2011 2010 2009EBIT/Sales 23.85% 28.45% 25.25%Property,Plant and Equipment/Sales 107.06% 78.70% 73.54%Depreciation/Property Plant and Equipment 11.33% 14.29% 13.53%Net Working Capital/Sales -6.51% -10.15% -12.72%Tax paid/EBIT 18.66% 18.43% 12.63%Interest/Debt 2.87% -11.27% 5.54%

2011 2012 2013 2014Sales 380158 456189.6 547427.5 656913EBIT 98273.86 117928.6 141514.4 169817.2Plant & Equip. 76031.6 91237.92 109485.5 131382.6Change in CAPEX 15206.32 18247.58 21897.1Dep. 9922.803 11907.36 14288.84 17146.6Working Capital -37229.8 -44675.76 -53610.91 -64333.1Change in WC -7445.96 -8935.152 -10722.18Earnings after tax 81984.45 98381.34 118057.6 141669.1Year 1 2 3FCF 102528.3 123034 147640.8

Horizon Value

Present Value of Re.1 0.732444 0.536474 0.392938

PV 75096.28 66004.6 58013.62

Vo 471714.2Cash 1338Debt 118975

Enterprise Value 354077.2Stock Price 8390.46

Average 20.00%25.85% Dividend Payout Ratio 4.92%20.00% Retention Ratio 95.08%13.05% ROCE 18.54%-9.79% gn 17.6%16.58%

4.20%For WACCBeta 0.8287

2015 2016 2017 Rf 8%788295.6 945954.8 1021631 Rm 22%203780.7 244536.8 264099.7 0.79157659.1 189191 204326.2 Wd 0.2126276.52 31531.83 15135.28 Ke 19.60%20575.93 24691.11 26666.4 Kd 99.29%

-77199.72 -92639.66 -100051-12866.62 -15439.94 -7411.173 WACC 36.53%

170003 204003.5 220323.84 5 6

177169 212602.8 239266.1

838671.5

0.287805 0.210801

50990.08 44816.86

176792.7

gs

We

8.0%

2011 2010 2009EBIT/Sales 23.85% 28.45% 25.25%Tax Rate 11.56% 11.90% 5.12%Property,Plant and Equipment/Sales 107.06% 78.70% 73.54%Depreciation/Property Plant and Equipment 11.33% 14.29% 13.53%Net Working Capital/Sales -6.51% -10.15% -12.72%

2011 2012 2013 2014Sales 380158 456189.6 547427.5 656913EBIT 98273.86 117928.628819 141514.4 169817.2Property,Plant And Equipment 76031.6 91237.92 109485.5 131382.6Depreciation 49614.02 59536.8209686 71444.19 85733.02Working Capital -37229.8 -44675.762467 -53610.91 -64333.1CAPEX 15206.32 18247.58 21897.1Change in Wc -7445.9604112 -8935.152 -10722.18PAT 88911.94 106694.332155 128033.2 153639.8Year 1 2 3FCF 158470.793535 190165 228197.9Horizon ValuePV of FCF 116071.002577 102018.6 89667.54

Value of Share 394488.429393

Number of shares 421,999,724

Value of Shares 9348.07316113

Average 20.00%25.85% Dividend Payout Ratio 4.92%

9.53% Retention Ratio 95.08%20.00% ROCE 18.54%13.05% gn 17.6%-9.79%

2015 2016 2017 For WACC788295.629 945954.8 1021631 Beta 0.8287203780.671 244536.8 264099.7 Rf 8%157659.126 189191 204326.2 Rm 22%102879.627 123455.6 133332 0.79

-77199.7175 -92639.66 -100051 Wd 0.2126276.521 31531.83 15135.28 Ke 19.60%

-12866.6196 -15439.94 -7411.173 Kd 99.29%184367.806 221241.4 238940.7

4 5 6 WACC 36.53%273837.531 328605 364548.6

127780978811.7522 69270.25 56286.26 512125.4

gs

We

8.0%

GD Goenka

Dividend History

Company Name:Ranbaxy Laboratories Ltd.

Year End Dividend A Dividend % Dividend Yield Dividend Per Share201012 842.08 40 0.33 2200912 0 0 0 0200812 0 0 0 0

Face Value555

2011

Year 1 2 3Dividend 2 2.4 2.88 3.46

Value of stockDividend per share/Discount rate(WACC)- Growth rate

Intrinsic value of the share 2.01 2.01 2.02

4 5 64.15 4.98 5.97

51.47

2.03 2.0321.03 31.13