CONDENSED AUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2015

Mar-15 Mar-14

STATEMENT OF CASH FLOWSMar-15 Mar-14

Net cash generated from / (used in) operating activities 28,664,228 (18,309,426)

Net cash used in investing activities (54,352,324) (64,107,066) Net cash generated from nancing activities 25,809,459 82,547,728 Increase in cash and cash equivalents 121,363 131,236Cash and cash equivalents at beginning 3,631,825 3,500,589 CASH AND CASH EQUIVALENTS AT THE END 3,753,188 3,631,825

STATEMENT OF CHANGE IN EQUITY AND RESERVESStated Share Application Revenue Total

Capital Premium for Shares Deficit Equity

191,420,000 126,395,000 (118,528,339) 199,286,661

(84,574,613) (84,574,613)

191,420,000 126,395,000 (203,102,952) 114,712,048

175,420,000 62,395,000 4,000,000 (40,216,146) 201,598,85412,000,000 64,000,000 76,000,000 -

-

- -

- - - -

-

-

4,000,000 (4,000,000)(78,312,193) (78,312,193)

191,420,000 126,395,000 199,286,661(118,528,339)

NOTES:

1. The Condensed Audited Financial Statements for the year ended 31 March 2015 were approved by the Board of Directors in its meeting held on 21 May 2015.

2. The Condensed Audited Financial Statements for the year ended 31 March 2015, have been prepared using the same accounting policies as those adopted in the Financial Statements for the year ended 31 March 2014 and complied with IAS34.

3. The Company is involved in provision of Information, Communication, Technology and Computer related activities.

4. The Condensed Audited Financial Statements for the Financial Year ended 31 March 2015 are in compliance with International Financial Reporting Standards (IFRS) and have been audited by Dhanjee Associates & Cie.

5. The last quarter of our Financial Year 2014-2015 was challenging due to both economic and political impacts. We experienced a change in political regime and for quite some time, the status quo prevailed. Our priority was to jealously maintain our customer base, both retail and corporate. In order to maintain the service level, we had no other option than to exceed customer expectations. This meant that we went out of our way to provide a better service than our main competitor who has been constantly aggressive since October 2014 up to February 2015 with different packages of higher capacity than ours.

Roll out has been quite slow as well due to adverse climatic conditions prevailing during the rst two months of the last quarter. However, we started doing some rectication works in the south prior to lighting up the region. In parallel, we completed the survey in the north and started roll out, which is still in progress.

In terms of Value Added Services, we successfully tested Video On Demand (VOD). Same is on test at customer premises. Moreover, we started testing Cloud Services for corporate customers. These services will enhance the acquisition of subscriber base and will improve the quality of service as well as serve as a retention strategy.

6. Despite of challenging conditions in the market, Company's Revenue from Operations for the current Financial Year increased to Rs 38.633 Mn from Rs 19.611 Mn due to increase in subscriber base. As the Operation is growing day by day, Company's Operating Expenses for the current Financial Year also increased to Rs.60.466 Mn as compared to Rs. 47.714 mn. Depreciation and Amortisation cost increased to Rs 62.742 Mn as compared to Rs 50.209 Mn in last Financial Year due to Capitalisation. Consequently, the Company's total Comprehensive Loss increased to Rs 84.575 Mn as compared to Rs 78.312 Mn in last Financial Year.

7. Copies of the Condensed Audited Financial Statements of the Company are available at the Registered Ofce of the Company at 8th Floor, Ebene Mews, 57 Ebene Cybercity, Mauritius.

8. Previous year gures have been regrouped and rearranged whenever necessary.

9. The above Condensed Audited Financial Statements are issued pursuant to DEM Rule 17 and the Securities Act 2005.

10. Copies of the Condensed Audited Financial Statements and the Statement of Direct and Indirect Interests of the Company, pursuant to rule 8(2)(m) of the Securities (Disclosure Obligations of Reporting Issuers) Rule 2007, are available to the public, free of charge, at the Registered Ofce of the Company at 8th Floor, Ebene Mews, 57 Ebene Cybercity, Mauritius.

By Order of the BoardBharat Telecom Ltd

SecretarySt James Secretaries Limited

ParticularsCOMPREHENSIVE INCOME STATEMENT

Total comprehensive loss

Revenue from operationsOperating expensesLoss before depreciation, amortisation and taxation expensesDepreciation and amortisation expenses

60,465,807 47,713,873

62,741,578 50,208,959 Loss before taxationTaxation

Number of sharesEarning per share- Basic- Diluted

38,632,772 19,610,639

(21,833,035) (28,103,234)

(84,574,613) (78,312,193) - -

(84,574,613) (78,312,193)

19,142,000 19,142,000

(4.42) (4.36) (4.42) (4.36)

Mar-15 Mar-14

Particulars

STATEMENT OF FINANCIAL POSITION

Non current assetsCurrent assets

ASSETS

Revenue decitTotal equity

Non-Current liabilities

Total liabilities

TOTAL ASSETSEQUITY AND LIABILITIESStated capital Other reserves

LIABILITIES

TOTAL EQUITY AND LIABILTIES

191,420,000

162,988,243 13,704,602

176,692,845

126,395,000 (203,102,952)

114,712,048

40,153,682

61,980,797 176,692,845

191,420,000

213,598,033 11,321,410

224,919,443

126,395,000 (118,528,339)

199,286,661

17,266,335 Current liabilities 21,827,115 8,366,447

25,632,782 224,919,443

At 01 April 2014Issue of Ordinary Shares

Application for SharesAllotment of SharesLoss for the Year

At 31 March 2015

At 01 April 2013

Issue of Ordinary Shares

Application for SharesAllotment of SharesLoss for the Year

At 31 March 2014

Particulars

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- -

-

-

-

- -

(Amount in Rs.)

Place: MauritiusDate : 21 May 2015

Particulars