BHARTI AIRTEL LIMITED
ANNUAL REPORT 2009-2010
NOTES ON ACCOUNTS
STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED MARCH 31, 2010
1. BASIS OF PREPARATION:
The financial statements have been prepared to comply in all material
respects with the Notified accounting standards by Companies (Accounting
Standards) Rules, 2006, (as amended') and the relevant provisions of the
Companies Act, 1956. The financial statements have been prepared under the
historical cost convention on an accrual basis except in case of assets for
which revaluation is carried out. The accounting policies have been
consistently applied by the Company and are consistent with those used in
the previous year.
2. USE OF ESTIMATES:
The preparation of financial statements in conformity with generally
accepted accounting principles requires management to make estimates and
assumptions that affect the reported amounts of assets and liabilities and
disclosure of contingent liabilities at the date of the financial
statements and the results of operations during the reporting year end.
Although these estimates are based upon management's best knowledge of
current events and actions, actual results could differ from these
estimates.
3. FIXED ASSETS:
Fixed Assets are stated at cost of acquisition and subsequent improvements
thereto, including taxes & duties (net of cenvat credit), freight and other
incidental expenses related to acquisition and installation. Capital work-
in-progress is stated at cost.
Site restoration cost obligations are capitalized when it is probable that
an outflow of resources will be required to settle the obligation and a
reliable estimate of the amount can be made.
The intangible component of license fee payable by the Company for cellular
and basic circles, upon migration to the National Telecom Policy (NTP
1999), i.e. Entry Fee, has been capitalised as an asset and the one time
license fee paid by the Company for acquiring new licences (post NTP-99)
(basic, cellular, national long distance and international long distance
services) has been capitalised as an intangible asset.
4. DEPRECIATION/AMORTISATION:
Depreciation on fixed assets is provided on the straight line method based
on useful lives of respective assets as estimated by the management or at
the rates prescribed under Schedule XIV of the Companies Act, 1956,
whichever is higher. Leasehold land is amortised over the period of lease.
Depreciation rates adopted by the
Company are as follows:
Useful lives
Leasehold Land Period of lease
Building 20 years
Building on Leased Land 20 years
Leasehold Improvements Period of lease or 10 years whichever
is less
Plant & Machinery 3 years to 20 years
Computer & Software 3 years
Office Equipment 2 years/5 years
Furniture and Fixtures 5 years
Vehicles 5 years
Software up to Rs 500 thousand is fully depreciated in the financial year
placed in service.
Bandwidth capacity is amortised on straight line basis over the period of
the agreement subject to a maximum of 18 years.
The Entry Fee capitalised is amortised over the period of the license and
the one time licence fee is amortised over the balance period of licence
from the date of commencement of commercial operations.
The site restoration cost obligation capitalized is depreciated over the
period of the useful life of the related asset.
Fixed Assets costing upto Rs 5 thousand are being fully depreciated within
one year from the date of acquisition.
5. REVENUE RECOGNITION AND RECEIVABLES
Mobile Services:
Service revenue is recognised on completion of provision of services.
Service revenue includes income on roaming commission and an access charge
recovered from other operators, and is net of discounts and waivers.
Enterprise Services (Erstwhile Enterprise Services - Carrier Segment and
Enterprise Services - Corporate Segment):
Revenue, net of discount, is recognised on transfer of all significant
risks and rewards to the customer and when no significant uncertainty
exists regarding realisation of consideration.
Processing fees on recharge is being recognised over the estimated customer
relationship period or voucher validity period, as applicable.
Revenue from prepaid calling cards packs is recognised on the actual usage
basis.
Telemedia Services (Erstwhile Broadband & Telephone Services)
Service revenue is recognised on completion of provision of services.
Revenue is recognised when no significant uncertainty exists regarding
realisation of consideration.
Service Revenues includes access charges passed on to other operators, and
is net of discounts and waivers. Enterprise Services (Erstwhile Enterprise
Services - Carrier Segment and Enterprise Services - Corporate Segment)
Revenue, net of discount, from sale of goods is recognised on transfer of
all significant risks and rewards to the customer and when no significant
uncertainty exists regarding realisation of consideration. Revenue on
account of bandwidth service is recognised on time proportion basis in
accordance with the related contracts. Service Revenues includes access
charges passed on to other operators, revenues from registration,
installation and provision of Internet and Satellite services. Registration
fees is recognised at the time of dispatch and invoicing of Start up Kits.
Installation charges are recognised as revenue on satisfactory completion
of installation of hardware and service revenue is recognised from the date
of satisfactory installation of equipment and software at the customer site
and provisioning of Internet and Satellite services.
Activation Income:
Activation revenue and related direct activation costs, not exceeding the
activation revenue, are deferred and amortised over the related estimated
customer relationship period, as derived from the estimated customer churn
period.
Investing and other Activities:
Income on account of interest and other activities are recognised on an
accrual basis. Dividends are accounted for when the right to receive the
payment is established.
Provision for doubtful debts:
The Company provides for amounts outstanding for more than 90 days in case
of active subscribers, roaming receivables and for entire outstanding from
deactivated customers net off security deposits or in specific cases where
management is of the view that the amounts from certain customers are not
recoverable.
For receivables due from the other operators on account of their National
Long Distance (NLD) and International Long Distance (ILD) traffic and
Interconnect Usage charges (IUC), the Company provides for amounts
outstanding for more than 120 days from the date of billing, net of any
amounts payable to the operators or in specific cases where management is
of the view that the amounts from these operators are not recoverable.
Accrued Billing revenue:
Accrued billing revenue represent revenue recognised in respect of Mobile,
Broadband and Telephone, and Long Distance services provided from the bill
cycle date to the end of each month. These are billed in subsequent periods
as per the terms of the billing plans.
6. INVENTORY:
Inventory is valued at the lower of cost and net realisable value. Cost is
determined on First in First out basis. Net realisable value is the
estimated selling price in the ordinary course of business, less estimated
costs of completion and the estimated costs necessary to make the sale.
The Company provides for obsolete and slow-moving inventory based on
management estimates of the usability of inventory.
7. INVESTMENT:
Current Investments are valued at lower of cost and fair market value
determined on individual basis. Long term Investments are valued at cost.
Provision is made for diminution in value to recognise a decline, if any,
other than that of temporary nature.
8. LICENSE FEES - REVENUE SHARE:
With effect from August 1, 1999, the variable Licence fee computed at
prescribed rates of revenue share is charged to the Profit and Loss Account
in the year in which the related revenues are recognised. Revenue for this
purpose identified as adjusted gross revenue as per the respective license
agreements.
9. FOREIGN CURRENCY TRANSLATION, ACCOUNTING FOR FORWARD CONTRACTS &
DERIVATIVES:
Initial Recognition:-
Foreign currency transactions are recorded in the reporting currency, by
applying to the foreign currency amount the exchange rate between the
reporting currency and the foreign currency at the date of the transaction.
Conversion:
Foreign currency monetary items are reported using the closing rate. Non-
monetary items which are carried in terms of historical cost denominated in
a foreign currency are reported using the exchange rate at the date of the
transaction; and non-monetary items which are carried at fair value or
other similar valuation denominated in a foreign currency are reported
using the exchange rates that existed when the values were determined.
Exchange Differences:
Exchange differences arising on the settlement of monetary items or on
restatement of the Company's monetary items at rates different from those
at which they were initially recorded during the year, or reported in
previous financial statements, are recognised as income or as expenses in
the year in which they arise as mentioned below.
Forward Exchange Contracts covered under AS 11, The Effects of Changes in
Foreign Exchange Rates'
Exchange differences on forward exchange contracts & plain vanilla currency
options for establishing the amount of reporting currency and not intended
for trading & speculation purposes, are recognised in the Profit & Loss
account in the period/year in which the exchange rate changes. The premium
or discount arising at the inception of forward exchange contracts is
amortised as expense or income over the life of the contract. Any profit or
loss arising on cancellation or renewal of such forward exchange contract
is recognised as income or expense for the year.
Exchange difference on forward contracts which are taken to establish the
amount other than the reporting currency arising due to the difference
between forward rate available at the reporting date for the remaining
maturity period and the contracted forward rate (or the forward rate last
used to measure a gain or loss on the contract for an earlier period) are
recognised in the profit and loss account for the year.
Other Derivative Instruments, not in the nature of AS 11, The Effects of
Changes in Foreign Exchange Rates' :
The Company enters into various foreign currency option contracts &
interest rate swap contracts that are not in the nature of forward
contracts designated under AS 11 as such and contracts that are not entered
to establish the amount of the reporting currency required or available at
the settlement date of a transaction; to hedge its risks with respect to
foreign currency fluctuations and interest rate exposure arising out of
import of capital goods using foreign currency loan. At every year end all
outstanding derivative contracts are fair valued on a marked-to-market
basis and any loss on valuation is recognised in the profit and loss
account, on each contract basis. Any gain on marked-to-market valuation on
respective contracts is not recognized by the Company, keeping in view the
principle of prudence as enunciated in AS 1, Disclosure of Accounting
Policies'. Any reduction to fair values and any reversals of such
reductions are included in profit and loss statement of the year.
Embedded Derivative Instruments:
The Company occasionally enters into contracts that do not in their
entirety meet the definition of a derivative instrument that may contain
'embedded' derivative instruments - implicit or explicit terms that affect
some or all of the cash flow or the value of other exchanges required by
the contract in a manner similar to a derivative instrument. The Company
assesses whether the economic characteristics and risks of the embedded
derivative are clearly and closely related to the economic characteristics
and risks of the remaining component of the host contract and whether a
separate, non-embedded instrument with the same terms as the embedded
instrument would meet the definition of a derivative instrument. When it is
determined that (1) the embedded derivative possesses economic
characteristics and risks that are not clearly and closely related to the
economic characteristics and risks of the host contract and (2) a separate,
stand-alone instrument with the same terms would qualify as a derivative
instrument, the embedded derivative is separated from the host contract,
carried at fair value as a trading or non-hedging derivative instrument. At
every period/year end, all outstanding embedded derivative instruments are
fair valued on mark-to-market basis and any loss on valuation is recognized
in the profit & loss account for the period/year. Any reduction in mark to
market valuations and reversals of such reductions are included in profit
and loss statement of the period/year.
Translation of Integral and Non-Integral Foreign Operation:
The financial statements of an integral foreign operation are translated as
if the transactions of the foreign operation have been those of the Company
itself. In translating the financial statements of a non-integral foreign
operation for incorporation in financial statements, the assets and
liabilities, both monetary and non-monetary are translated at the closing
rate; income and expense items are translated at exchange rate at the date
of transaction for the period/year; and all resulting exchange differences
are accumulated in a foreign currency translation reserve until the
disposal of the net investment.
Foreign exchange contracts for trading and speculation purpose:
Foreign exchange contracts intended for trading and/or speculation are fair
valued on a marked-to- market basis and any loss on such valuation is
recognised in the Profit & Loss Account for the period.
10. EMPLOYEE BENEFITS:
(a) Short term employee benefits are recognised in the year during which
the services have been rendered.
(b) All employees of the Company are entitled to receive benefits under the
Provident Fund, which is a defined contribution plan. Both the employee and
the employer make monthly contributions to the plan at a predetermined rate
(presently 12%) of the employees' basic salary. These contributions are
made to the fund administered and managed by the Government of India. In
addition, some employees of the Company are covered under the employees'
state insurance schemes, which are also defined contribution schemes
recognized and administered by the Government of India.
The Company's contributions to both these schemes are expensed in the
Profit and Loss Account.
The Company has no further obligations under these plans beyond its monthly
contributions.
(c) Some employees of the Company are entitled to superannuation, a defined
contribution plan which is administered through Life Insurance Corporation
of India ('LIC'). Superannuation benefits are recorded as an expense as
incurred.
(d) Short term compensated absences are provided for, based on estimates.
Long term compensated absences are provided for based on actuarial
valuation. The actuarial valuation is done as per projected unit credit
method.
(e) The Company provides for gratuity obligations through a defined benefit
retirement plan (the Gratuity Plan') covering all employees. The Gratuity
Plan provides a lump sum payment to vested employees at retirement or
termination of employment based on the respective employee salary and years
of employment with the Company. The Company provides for the Gratuity Plan
based on actuarial valuations as per the Projected Unit Credit Method at
the end of each financial year in accordance with Accounting Standard 15
(revised), 'Employee Benefits '. The Company makes annual contributions to
the LIC for the Gratuity Plan in respect of employees at certain circles.
(f) Other Long term service benefits are provided based on actuarial
valuation made at the end of each period/year. The actuarial valuation is
done as per projected unit credit method.
(g) Actuarial gains and losses are recognized as and when incurred.
11. PRE-OPERATIVE EXPENDITURE:
Expenditure incurred by the Company from the date of acquisition of license
for a new circle or from the date of start-up of new ventures or business,
up to the date of commencement of commercial operations of the circle or
the new venture or business, not directly attributable to fixed assets are
charged to the Profit and Loss account in the year in which such
expenditure is incurred.
12. LEASES
a) Where the Company is the lessee:
Leases where the lessor effectively retains substantially all the risks and
benefits of ownership of the leased term, are classified as operating
leases. Lease Rentals with respect to assets taken on Operating Lease' are
charged to the Profit and Loss Account on a straight-line basis over the
lease term. Leases which effectively transfer to the Company substantially
all the risks and benefits incidental to ownership of the leased item are
classified as finance lease. Assets acquired on Finance Lease' which
transfer risk and rewards of ownership to the Company are capitalized as
assets by the Company at the lower of fair value of the leased property or
the present value of the minimum lease payments or where applicable,
estimated fair value of such assets.
Amortization of capitalised leased assets is computed on the Straight Line
method over the useful life of the assets. Lease rental payable is
apportioned between principal and finance charge using the internal rate of
return method. The finance charge is allocated over the lease term so as to
produce a constant periodic rate of interest on the remaining balance of
liability.
b) Where the Company is the lessor:
Lease income in respect of Operating Lease' is recognised in the Profit
and Loss Account on a straight-line basis over the lease term. Finance
leases as a dealer lessor are recognized as a sale transaction in the
Profit and loss account and are treated as other outright sales.
Finance Income is recognized based on a pattern reflecting a constant
periodic rate of return on the net investment of the lessor outstanding in
respect of the lease.
c) Initial direct costs are expensed in the Profit and Loss Account at the
inception of the lease.
13. TAXATION:
Current Income tax is measured at the amount expected to be paid to the tax
authorities in accordance with Indian Income Tax Act, 1961
Deferred income taxes reflects the impact of current year timing
differences between taxable income and accounting income for the year and
reversal of timing differences of earlier years. Deferred tax is measured
based on the tax rates and the tax laws enacted or substantively enacted at
the balance sheet date. Deferred tax assets are recognised and reviewed at
each balance sheet date, only to the extent that there is reasonable
certainty that sufficient future taxable income will be available against
which such deferred tax assets can be realised. In situations where the
Company has unabsorbed depreciation or carry forward tax losses, all
deferred tax assets are recognised only if there is virtual certainty
supported by convincing evidence that they can be realised against future
taxable profits. At each balance sheet date, unrecognised deferred tax
assets of earlier years are re-assessed and recognised to the extent that
it has become reasonably certain that future taxable income will be
available against which such deferred tax assets can be realized.
Minimum Alternative Tax (MAT) credit is recognised as an asset only when
and to the extent there is convincing evidence that the Company will pay
normal income tax during the specified period. In the period/year in which
the MAT credit becomes eligible to be recognized as an asset in accordance
with the recommendations contained in Guidance Note issued by the ICAI, the
said asset is created by way of a credit to the Profit and Loss account and
shown as MAT Credit Entitlement. The Company reviews the same at each
balance sheet date and writes down the carrying amount of MAT Credit
Entitlement to the extent there is no longer convincing evidence to the
effect that Company will pay normal Income Tax during the specified period.
Finance Act 2009, abolished Fringe Benefit Tax' effective April 1, 2009.
Accordingly, the Company has not accounted for any fringe benefit tax.
14. MISCELLANEOUS EXPENDITURE:
Premium on redemption of debentures is recognised as an expense to the
Profit and Loss Account over the period of the related contract.
15. BORROWING COST:
Borrowing cost attributable to the acquisition or construction of fixed
assets which takes substantial period of time to get ready for its intended
use is capitalised as part of the cost of that asset. Other borrowing costs
are recognised as an expense in the year in which they are incurred.
16. IMPAIRMENT OF ASSETS:
The carrying amounts of assets are reviewed at each balance sheet date for
impairment whenever events or changes in circumstances indicate that the
carrying amount may not be recoverable. An impairment loss is recognized
for the amount by which the assets' carrying amount exceeds its recoverable
amount. The recoverable amount is the higher of the assets' fair value less
costs to sell and value in use.
For the purpose of assessing impairment, assets are grouped at the lowest
levels for which there are separately identifiable cash flows (cash
generating units).
17. SEGMENTAL REPORTING
a) Primary Segment:
The Company operates in three primary business segments viz. Mobile
Services, Telemedia Services and Enterprise Services (Erstwhile Enterprises
Services Carrier' and Enterprise Services Corporate').
b) Secondary Segment:
The Company has operations within India as well as in other countries
through entities located outside India. The operations in India constitute
the major part, which is the only reportable segment, the remaining portion
being attributable to others.
18. EARNINGS PER SHARE:
The earnings considered in ascertaining the Company's Earnings per Share
(EPS') comprise the net profit after tax. The number of shares used in
computing basic EPS is the weighted average number of shares outstanding
during the period. The weighted average number of equity shares outstanding
during the year is adjusted for events of share splits/bonus issue post
period end and accordingly, the EPS is restated for all periods presented
in these financial statements. The diluted EPS is calculated on the same
basis as basic EPS, after adjusting for the effects of potential dilutive
equity shares unless impact is anti dilutive.
The weighted average number of equity shares outstanding during the year
are adjusted for events of bonus issue; bonus element in a rights issue to
existing shareholders; share split; and reverse share split (consolidation
of shares).
19. WARRANTY AND ASSET RETIREMENT OBLIGATIONS (ARO):
Provision for warranty and ARO is based on past experience and technical
estimates.
20. PROVISIONS:
Provisions are recognised when the Company has a present obligation as a
result of past event; it is more likely than not that an outflow of
resources will be required to settle the obligation, in respect of which a
reliable estimate can be made. Provisions are not discounted to its present
value and are determined based on best estimate required to settle the
obligation at the balance sheet date. These are reviewed at each balance
sheet date and adjusted to reflect the current best estimates.
21. EMPLOYEE STOCK OPTIONS OUTSTANDING:
Employee Stock options outstanding are valued using Black Scholes / Lattice
valuation option - pricing model and the fair value is recognised as an
expense over the period in which the options vest.
22. CASH AND CASH EQUIVALENTS:
Cash and Cash equivalents in the Balance Sheet comprise cash in hand and at
bank and short-term investments.
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31, 2010
1. Background:
Bharti Airtel Limited (Bharti Airtel' or the Company') incorporated in
India on July 7, 1995, is a Company promoted by Bharti Telecom Limited
(BTL'), a Company incorporated under the laws of India.
2. New operations:
a) Alcatel-Lucent Network Management Services India Limited (ALNMSIL') was
incorporated with the principal business of developing an efficient and
cost effective platform and vehicle to provide managed services to the
Company. On July 28, 2009, the Company subscribed to 9,000,004 equity
shares in ALNMSIL for an aggregate consideration of Rs 90,000 thousand
towards 26% stake.
b) On June 5, 2007, the Company acquired 40% equity shares of Bharti
Telemedia Limited (BTML') and became holding company of the BTML based on
control over composition of Board of Directors. On October 23, 2009, the
Company has acquired additional 55% equity shares for a consideration of Rs
73,795 thousand from Bharti Enterprises Limited resulting into 95% total
equity interest in BTML.
c) On January 12, 2010, the Company executed agreements for acquiring
(through Bharti Airtel Holdings (Singapore) Pte Ltd, its 100% subsidiary)
an equity stake of 70% by subscription and transfer of shares in Warid
Telecom International Limited, Bangladesh (Warid Telecom') a mobile
telecommunication service provider in Bangladesh for an investment of USD
300,100 thousand (Rs 13,912,175 thousand) in the Company. The Company has
remitted USD 311,527 thousand (Rs 14,141,667 thousand) to its subsidiary,
Bharti Airtel Holdings (Singapore) Pte Ltd towards equity for investment in
Warid Telecom, Bangladesh and to meet incidental costs for the acquisition.
d) On March 18, 2010, Bharti International (Singapore) Pte. Ltd has been
incorporated as a subsidiary of Bharti Airtel Holdings (Singapore) Pte.
Ltd, with an intention of consolidating business interest in Singapore and
investment in overseas ventures. Bharti Airtel Holdings (Singapore) Pte.
Ltd holds 98.52% stake in the newly incorporated entity and remaining 1.48%
stake is held by the ultimate parent company, Bharti Airtel Limited.
e) On March 19, 2010, Bharti Airtel International (Netherlands) B.V., has
been incorporated with an intention of creating a hub for the international
mobile operations of the Company. Bharti International (Singapore) Pte.
Ltd, holding Company holds 98.90% and remaining 1.10% stake is held by the
ultimate parent company Bharti Airtel Limited.
f) On March 30, 2010, the Company has entered into a definitive agreement
with Zain Group to acquire Zain Africa BV ('Zain') for an enterprise
valuation of USD 10.7 bn. The Company, through its overseas wholly owned
subsidiary companies, will acquire Zain's African mobile services
operation in 15 countries with a total subscriber base of over 42 mn. The
parties are in process of completing the transaction.
g) In April 2010, the Company has incorporated a wholly owned subsidiary,
Airtel M Commerce Services Limited and has invested Rs 20,000 thousand in
its 2,000,000 equity shares of Rs 10 each.
3. Contingent liabilities:
a) Total Guarantees outstanding as at March 31, 2010 amounting to Rs
30,435,163 thousand (March 31, 2009 Rs 20,895,580 thousand) have been
issued by banks and financial institutions on behalf of the Company.
Corporate Guarantees outstanding as at March 31, 2010 amounting to Rs
8,498,147 thousand (March 31, 2009 Rs 1,576,542 thousand) have been given
to banks and financial institutions as mentioned above on behalf of Group
Companies.
b) Claims against the Company not acknowledged as debt: (Excluding cases
where the possibility of any outflow in settlement is remote):
(Rs '000)
Particulars As at As at
March 31, 2010 March 31, 2009
(i) Taxes, Duties and Other
demands(under adjudication /
appeal / dispute)
- Sales Tax (see 3 (c) below) 433,894 399,942
- Service Tax (see 3 (d) below) 2,022,375 668,073
- Income Tax (see 3 (e) below) 5,618,246 1,977,127
- Customs Duty (see 3 (f) below) 2,198,348 2,198,348
- Stamp Duty 353,453 353,403
- Entry Tax (see 3 (g) below) 1,956,008 1,020,873
- Municipal Taxes 1,401 2,994
- Access Charges/Port Charges 1,281,981 2,208,917
(see 3 (h) below)
- DoT demands 710,836 579,674
(including 3 (i) below)
- Other miscellaneous demands 83,258 66,034
(ii) Claims under legal cases including 372,974 464,149
arbitration matters
(including 3 (j) below)
15,032,774 9,939,534
Unless otherwise stated below, the management believes that, based on legal
advice, the outcome of these contingencies will be favorable and that a
loss is not probable.
c) Sales tax:
The claims for sales tax as at March 31, 2010 comprised the cases relating
to:-
i. the appropriateness of the declarations made by the Company under the
relevant sales tax legislations which was primarily procedural in nature;
ii. the applicable sales tax on disposals of certain property and equipment
items;
iii. lease circuit / broadband connectivity services; and
iv. the applicability of sales tax on sale of SIM cards, recharge coupons,
SIM replacements, VAS, Handsets and Modem rentals.
v. In the State of J&K, the Company has disputed the levy of General Sales
Tax on its telecom services and towards which the Company has received a
stay from the Hon'ble J&K High Court. The demands received to date have
been disclosed under contingent liabilities.
The Company, believes, that there would be no liability that would arise
from this matter.
d) Service tax:
The service tax demands as at March 31, 2010 relate to:
i. roaming revenues charged from other operators;
ii. subscriber receivables written off; and
iii. cenvat claimed on tower and related material.
e) Income tax demand under appeal:
Income tax demands under appeal mainly included the appeals filed by the
Company before various appellate authorities against the disallowance of
certain expenses being claimed under tax by income tax authorities and non
deduction of tax at source with respect to dealers/distributor's payments.
The management believes that, based on legal advice, it is probable that
its tax positions will be sustained and accordingly, recognition of a
reserve for those tax positions will not be appropriate.
f) Custom duty:
The custom authorities, in some states, demanded Rs 2,198,348 thousand as
at March 31, 2010 (March 31, 2009 - Rs 2,198,348 thousand) for the imports
of special software on the ground that this would form part of the hardware
along with which the same has been imported. The view of the Company is
that such imports should not be subject to any custom duty as it would be
an operating software exempt from any custom duty. The management is of the
view that the probability of the claims being successful is remote.
g) Entry tax:
In certain states an entry tax is levied on receipt of material from
outside the state. This position has been challenged by the Company in the
respective states, on the grounds that the specific entry tax is ultra
vires the constitution. Classification issues have been raised whereby, in
view of the Company, the material proposed to be taxed not covered under
the specific category. The amount under dispute as at March 31, 2010 was Rs
1,956,008 thousand (March 31, 2009 - Rs 1,020,873 thousand) included in
Note 3 (b) above.
h) Access charges:
Interconnect charges are based on the Interconnect Usage Charges (IUC)
agreements between the operators although the IUC rates are governed by the
IUC guidelines issued by TRAI. BSNL has raised a demand requiring the
Company to pay the interconnect charges at the rates contrary to the
guidelines issued by TRAI. The Company filed a petition against that demand
with the Telecom Disputes Settlement and Appellate Tribunal (TDSAT') which
passed a status quo order, stating that only the admitted amounts based on
the guidelines would need to be paid by the Company.
The management believes that, based on legal advice, the outcome of these
contingencies will be favorable and that a loss is not probable.
Accordingly, no amounts have been accrued although some have been paid
under protest.
i) DoT Demands
i) The Company has not been able to meet its roll out obligations fully due
to certain non-controllable factors like Telecommunication Engineering
Center testing, Standing Advisory Committee of Radio Frequency Allocations
clearance, non availability of spectrum, etc. The Company has received show
cause notices from DoT for 14 of its circles for nonfulfillment of its roll
out obligations. DoT has reviewed and revised the criteria now and the
Company is not expecting any penalty on this account.
ii) DoT demands also include demands raised for contentious matters
relating to computation of license fees.
j) Others:
Others mainly include disputed demands for consumption tax, disputes before
consumer forum and with respect to labour cases and a potential claim for
liquidated damages.
The management believes that, based on legal advice, the outcome of these
contingencies will be favourable and that a loss is not probable. No
amounts have been paid or accrued towards these demands.
k) Bharti Mobinet Limited (BMNL') litigation:
Bharti Airtel is currently in litigation with DSS Enterprises Private
Limited (DSS) (0.34 per cent equity interest in erstwhile Bharti Cellular
Limited (BCL)) for an alleged claim for specific performance in respect of
alleged agreements to sell the equity interest of DSS in erstwhile BMNL to
Bharti Airtel. The case filed by DSS to enforce the sale of equity shares
before the Delhi High Court had been transferred to District Court and was
pending consideration of the Additional District Judge. This suit was
dismissed in default on the ground of nonprosecution. DSS had filed an
application for restoration of the suit but has subsequently withdrawn the
restoration application. In respect of the same transaction, Crystal
Technologies Private Limited (Crystal'), an intermediary, has initiated
arbitration proceedings against the Company demanding Rs 194,843 thousand
regarding termination of its appointment as a consultant to negotiate with
DSS for the sale of DSS stake in erstwhile BMNL to Bharti Airtel. The Ld.
Arbitrator has partly allowed the award for a sum of Rs 31,222 thousand, 9%
interest from period October 3, 2001 till date of award (i.e May 28, 2009)
included in Note 3 (b) above and a further 18% interest from date of award
to date of payment. The Company has filed an appeal against the said award.
Hon'ble Delhi High Court, on October 28, 2009 has directed both the parties
to file their submission before the hearing on May 7, 2010.
DSS has also filed a suit against a previous shareholder of BMNL and Bharti
Airtel challenging the transfer of shares by that shareholder to Bharti
Airtel. The suit was subsequently dismissed as frivolous, which has been
appealed to in the Delhi High Court by DSS and subsequently transferred to
District Court. DSS has also initiated arbitration proceedings seeking
direction for restoration of the cellular license and the entire business
associated with it including all assets of BCL/BMNL to DSS or
alternatively, an award for damages. An interim stay has been granted by
the Delhi High Court with respect to the commencement of arbitration
proceedings. The stay has been made absolute. Further against the above
Order of Single Judge making the stay in favour of Bharti absolute, DSS
filed an appeal before the Division Bench of Delhi High Court. The matter
has been admitted, whereafter the matter reached for arguments and was
dismissed on account of non prosecution.
The liability, if any, of Bharti Airtel arising out of above litigation
cannot be currently estimated. Since the amalgamation of BCL and erstwhile
Bharti Infotel Limited (BIL) with Bharti Airtel, DSS, a minority
shareholder in BCL, had been issued 2,722,125 equity shares of Rs 10 each
(5,444,250 equity shares of Rs 5 each post split) bringing the share of DSS
in Bharti Airtel down to 0.14% as at March 31, 2010.
The management believes that, based on legal advice, the outcome of these
contingencies will be favorable and that a loss is not probable.
Accordingly, no amounts have been accrued or paid in regard to this
dispute.
4. Export Obligation:
Bharti Airtel has obtained licenses under the Export Promotion Capital
Goods (EPCG') Scheme for importing capital goods at a concessional rate of
customs duty against submission of bank guarantee and bonds. Under the
terms of the respective schemes, the Company is required to export goods of
FOB value equivalent to, or more than, five times the CIF value of imports
in respect of certain licenses and eight times the duty saved in respect of
licenses where export obligation has been refixed by the order of Director
General Foreign Trade, Ministry of Finance, as applicable within a period
of eight years from the import of capital goods. The Export Promotion
Capital Goods Scheme, Foreign Trade Policy 2004-2009 as issued by the
Central Government of India, covers both manufacturer exporters and service
providers.
Accordingly, in accordance with Clause 5.2 of the Policy, export of
telecommunication services would also qualify. Accordingly, the Company is
required to export goods and services of FOB value of Rs 1,002,766 thousand
(March 31, 2009 Rs 2,596,473 thousand) by February 22, 2018.
5.a) Estimated amount of contracts to be executed on capital account and
not provided for (net of advances) Rs 15,684,080 thousand as at March 31,
2010 (March 31, 2009- Rs 29,526,399 thousand).
b) Under the IT Outsourcing Agreement, the Group has commitments to pay Rs
6,597,050 thousand as at March 31, 2010 (March 31, 2009 - Rs 7,563,213
thousand) comprising of finance lease and service charges. In addition, the
future monthly rentals under this contract are determined on a revenue
share basis over the non-cancellable period of the agreement.
6. Employee benefits a) During the year, the Company has recognized the
following amounts in the Profit and Loss Account
Defined Contribution Plans (Rs '000)
Particulars For the yearended
March 31, 2010 March 31, 2009
Employer's Contribution to 478,025 430,173
Provident Fund *@
Employer's Contribution to 100 2,162
Super annuation Fund #
Employer's Contribution to ESI * 131 755
* Included in Contribution to Provident and Other Funds (Refer Schedule 16)
# Included in Salaries, Wages and Bonus (Refer Schedule 16)
@ Includes Contribution to Defined Contribution Plan for Key Managerial
Personnel (Refer Note 16 below)
Defined Benefit Plans:
Gratuity liability and leave encashment liability are defined benefit
obligations and are provided for on the basis of an actuarial valuation on
projected unit credit method made at the end of each financial year.
For the Yearended March 31, 2010 (Rs '000)
Particulars Gratuity# Leave
Encashment#
Funded Unfunded Total Unfunded
Current service cost 96,473 69,444 165,917 136,017
Interest cost 37,667 11,694 49,362 35,823
Expected Return on (5,691) - (5,691) -
plan assets
Actuarial (gain)/loss 7,773 129,945 137,718 127,443
Past service cost - - - -
Curtailment and - - - -
Settlement cost/
(credit)
Net gratuity/ 136,222 211,084 347,306 299,283
Leave encashment
cost
For the Year ended
March 31, 2009
Current service cost 137,385 16,290 153,675 137,873
Interest cost 24,644 8,777 33,421 34,851
Expected Return on (4,894) - (4,894) -
plan assets
Actuarial (gain)/loss 121,656 (7,094) 114,562 34,078
Past service cost - - - -
Curtailment and - - - -
Settlement cost/
(credit)
Net gratuity/ 278,791 17,973 296,764 206,802
Leave encashment
cost
# Included in Salaries, Wages and Bonus (Refer Schedule 16)
b) The assumptions used to determine the benefit obligations are as
follows:
For the Year ended March 31, 2010
Particulars Gratuity Leave
Encashment
Discount Rate 7.50% 7.50%
Expected Rate of increase in Compensation levels 8.00% 8.00%
Expected Rate of Return on Plan Assets 7.50% N.A.
Expected Average remaining working lives of 24.71 years 24.71 years
employees (years)
For the Year ended March 31, 2009
Discount Rate 7.50% 7.50%
Expected Rate of increase in Compensation levels
- 1st Three Years 15.00% 15.00%
- Thereafter 7.00% 7.00%
Expected Rate of Return on Plan Assets 7.50% N.A.
Expected Average remaining working 25.23 years 25.23 years
lives of employees (years)
c) Reconciliation of opening and closing balances of benefit obligations
and plan assets
For the Year ended March 31, 2010
(Rs '000)
Particulars Gratuity# Leave
Encashment#
Funded Unfunded Total Unfunded
Change in Projected Benefit
Obligation (PBO):
Projected benefit obligation 502,455 155,701 658,156 477,634
at beginning of year
Current service cost 96,473 69,444 165,917 136,017
Interest cost 37,667 11,694 49,362 35,823
Benefits paid - (205,424) (205,424) (243,084)
Curtailment and - - - -
Settlement cost
Contribution by plan - - - -
participants
Past service cost - - - -
Actuarial (gain)/loss 2,108 129,919 132,027 127,443
Projected benefit 638,703 161,335 800,038 533,833
obligation at yearend
Change in plan assets:
Fair value of plan assets 75,881 - 75,881 -
at beginning of year
Expected return on plan 5,691 - 5,691 -
assets
Actuarial gain/(loss) (5,691) - (5,691) -
Employer contribution - - - -
Contribution by plan - - - -
participants
Settlement cost - - - -
Benefits paid - - - -
Fair value of plan 75,881 - 75,881 -
assets at yearend
Net funded status (562,822) (161,335) (724,157) (533,833)
of the plan
Net amount recognized (562,822) (161,335) (724,157) (533,833)
For the Yearended
March 31, 2009
Change in Projected
Benefit Obligation (PBO)
Projected benefit 345,363 100,257 445,620 464,676
obligation at
beginning of
year
Current service cost 137,385 16,290 153,675 137,873
Interest cost 24,644 8,777 33,421 34,851
Benefits paid - (84,228) (84,228) (193,843)
Curtailment and - - - -
Settlement cost
Contribution by - - - -
plan participants
Past service cost - - - -
Actuarial (gain)/loss (4,937) 114,605 109,668 34,077
Projected benefit 502,455 155,701 658,156 477,634
obligation at yearend
Change in plan assets:
Fairvalue of plan assets 65,247 - 65,247 -
at beginning of year
Expected return on plan 4,894 - 4,894 -
assets
Actuarial gain/(loss) (4,893) - (4,893) -
Employer contribution 10,633 - 10,633 -
Contribution by plan - - - -
participants
Settlement cost - - - -
Benefits paid - - - -
Fair value of plan assets 75,881 - 75,881 -
at yearend
Net funded status (426,574) (155,701) (582,275) (477,634)
of the plan
Net amount recognized (426,574) (155,701) (582,275) (477,634)
d) The expected rate of return on plan assets was based on the average
long-term rate of return expected to prevail over the next 15 to 20 years
on the investments made by the LIC. This was based on the historical
returns suitably adjusted for movements in long-term government bond
interest rates. The discount rate is based on the average yield on
government bonds of 20 years.
e) The estimates of future salary increases, considered in actuarial
valuation, take account of inflation, seniority, promotion and other
relevant factors, such as supply and demand in the employment market.
f) The Group made annual contributions to the LIC of an amount advised by
the LIC. The Group was not informed by LIC of the investments made by the
LIC or the break-down of plan assets by investmenttype.
g) Estimated amounts of benefits payable within nextyear are Rs 376,709
thousand (March 31, 2009 Rs 242,918 thousand).
h) The table below illustrates experience adjustment disclosure as per para
120(n)(ii) of Accounting Standard 15,'Employee Benefits'
(Rs '000)
Gratuity
Particulars As at As at As at As at
March 31, March 31, March 31, March 31,
2010 2009 2008 2007
Defined benefit 800,038 658,156 445,620 356,849
obligation
Plan assets 75,881 75,881 65,247 63,256
Surplus/(deficit) (724,157) (582,275) (380,373) (293,593)
Experience (129,758) (82,181) (39,808) 41,650
adjustments
on plan
liabilities
Experience (5,691) (4,894) (4,733) 393
adjustments
on plan assets
Leave Encashment
Particulars As at As at As at As at
March 31, March 31, March 31, March 31,
2010 2009 2008 2007
Defined benefit 533,833 477,634 464,676 366,542
obligation
Plan assets - - - -
Surplus/(deficit) (533,833) (477,634) (464,676) (366,542)
Experience (105,935) (16,439) (68,090) 36,970
adjustments
on plan
liabilities
Experience - - -
adjustments
on plan assets
i) Movement in provision for Deferred Incentive Plan (Rs'000)
Particulars For the yearended
March 31, 2010 March 31, 2009
Opening Balance 470,248 103,172
Addition during the year 671,839 463,797
Less : Utilized during the year 533,252 96,721
Closing Balance 608,835 470,248
j) Other long term service benefits are provided based on actuarial
valuation (as per the Projected Unit Credit Method) made at the end of each
financial year. Long term service award provided by the Company as at March
31, 2010 is Rs 115,743 thousand (March 31, 2009 Rs 95,502 thousand).
7. Investment in Joint Ventures/ Jointly owned assets:
Jointly owned assets
a) The Company has participated in various consortiums towards supply,
construction, maintenance and providing long term technical support with
regards to following Cable Systems. The details of the same are as follows:
For the Yearended March 31, 2010
Cable Project Total Capital Work W.D.V. As at Share %
Contribution in Progress March 31,
2010
(Rs'000) (Rs'000) (Rs'000)
SMW-4 2,514,188 - 1,917,080 11.19%
AAG-Project 1,804,191 - 1,757,397 7.08%
EASSY-Project 107,578 107,578 - 1.00%
EIG-Project 1,387,385 1,387,385 - 7.09%
IMEWE-Project 2,037,223 2,037,223 - 12.79%
Unity- Project- 1,196,612 61,178 1,134,993 10.00%
Common & Others
Unity- Project- 149,201 - 149,143 13.91%
Light Up
For the Year ended
March 31, 2009
SMW-4 2,514,188 331,727 1,763,754 10.76%
AAG-Project 1,212,110 1,212,110 - 7.08%
EASSY-Project 29,753 29,753 - 1.11%
EIG-Project 550,389 550,389 - 7.09%
IMEWE-Project 1,157,698 1,157,698 - 12.79%
Unity- Project- 323,939 323,939 - 10.00%
Common & Others
Unity-Project- 40,541 40,541 - 13.91%
Light Up
Joint Ventures Entity:
b) The Company entered into a Joint Venture with 9 other overseas mobile
operators to form a regional alliance called the Bridge Mobile Alliance
incorporated in Singapore as Bridge Mobile Pte Limited. The principal
activity of the venture is creating and developing regional mobile services
and managing the Bridge Mobile Alliance Programme. The Company has invested
USD 2,200 thousand, amounting to Rs 92,237 thousand, in 2,200 thousand
ordinary shares of USD 1 each which is equivalentto an ownership interest
of 10.00% as at March 31, 2010 (March 31, 2009: USD 2,200 thousand, Rs
92,237 thousand, ownership interest 10.00%)
c) The following represent the Company's share of assets and liabilities,
and income and results of the joint venture.
(Rs '000)
Particulars As at March
31, 2010 31, 2009
(Unaudited) (Audited)
Balance Sheet
Reserve and surplus (34,390) (31,220)
Fixed assets, (net) 1,264 9,901
Investments - -
Current assets
Sundry debtors 4,940 6,711
Cash and bank 70,388 76,508
Loans and advances - -
Current liabilities 7,161 7,154
and provisions
(Rs '000)
Particulars For the yearended March
31, 2010 31, 2009
(Unaudited) (Audited)
Profit and Loss Account
Service revenue 18,445 17,244
Other income - -
Expenses:
Operating expenses 13,221 14,876
Selling, general and 4,854 5,845
administration expenses
Finance expenses/(income) (754) (2,153)
Depreciation 8,582 4,536
Profit/(Loss) (7,457) (5,860)
8. During the year ended March 31, 2005 the Company issued USD 115,000,000
Zero Coupon Convertible Bonds due 2009 (the 'FCCBs'). The FCCBs are
convertible at any time on or after June 12, 2004 (or such earlier date as
is notified to the holders of the FCCBs by the Issuer) up to April 12, 2009
by holders into fully paid equity shares with full voting rights with a par
value of Rs 10 each of the Issuer ('Shares') at an initial Conversion Price
(as defined in the 'Terms and Conditions of the FCCBs') of Rs 233.17 per
share with a fixed rate of exchange on conversion of Rs 43.56 = USD 1.00.
The Conversion Price is subject to adjustmentin certain circumstances.
The FCCBs could be redeemed, in whole or in part, at the option of the
Issuer at any time on or after May 12, 2007 and prior to April 12, 2009,
subject to satisfaction of certain conditions, at their ' Early Redemption
Amount' (as defined in the 'Terms and Conditions of the FCCBs') at the date
fixed for such redemption if the 'Closing Price' (as defined in the 'Terms
and Conditions of the FCCBs') of the Shares translated into U.S. dollars at
the 'prevailing rate' (as defined in the 'Terms and Conditions of the
FCCBs') for each of 30 consecutive 'Trading Days' (as defined in the 'Terms
and Conditions of the FCCBs'), the last of which occurs not more than five
days prior to the date upon which notice of such redemption is published,
is greater than 120 percent of the 'Conversion Price' (as defined in the
'Terms and Conditions of the FCCBs') then in effect translated into U.S.
dollars at the rate of Rs 43.56 = USD 1.00.
The FCCBs could also be redeemed in whole, and not in part, at any time at
the option of the Issuer at their Early Redemption Amount if less than 5
percent in aggregate principal amount of the FCCBs originally issued is
outstanding.
The FCCBs could also be redeemed in whole, at any time at the option of the
Issuer at their Early Redemption Amount in the event of certain changes
relating to taxation in India.
The Issuer could, at the option of any holder of any FCCBs, repurchase at
the Early Redemption Amount such FCCBs at such time as the Shares cease to
be listed or admitted to trading on the NSE or upon the occurrence of a
'Change of Control' (as defined in the 'Terms and Conditions of the FCCBs')
in respect of the Issuer. These FCCBs were listed in the Singapore Exchange
Securities Trading Limited (the 'SGX-ST').
During the year, the Company has converted FCCBs equivalent to USD 350,000
into 65,385 equity shares of the Company at the option exercised by the
bond holders which is as follows:
Date of Allotment No. of Shares FCCB Value (USD)
Allotted
May 1, 2009 65,385 350,000
The balance FCCBs equivalent to USD 50,000 have been redeemed at 111.84% of
their principal amount after completion of the statutory formalities.
As of March 31, 2010, there are no FCCBs pending for conversion into equity
shares.
Rs 2,823,225 thousand (March 31, 2009 Rs 3,424,931 thousand) included under
Current Liabilities, represents refundable security deposits received from
subscribers on activation of connections granted thereto and are repayable
on disconnection, net of outstanding, if any and security deposits received
from channel partners. Sundry debtors are secured to the extent of the
amount outstanding against individual subscribers by way of security
deposit received from them.
10. As at March 31, 2010, 3,130,495 equity shares (of face value of Rs 5)
(March 31, 2009 4,180,490 equity shares) of the Company are held by Bharti
Tele-Ventures Employee's Welfare Trust issued at the rate of Rs 25.68
(Rs.51.36 pre split up) per equity share fully paid up. (Refer Note 30 on
Schedule 22)
11. Sales and Marketing under Schedule 17 includes goodwill waivers which
are other than trade discount, of Rs 353,713 thousand (March 31, 2009,
Rs.340,299 thousand).
12. Loans and advances in the nature of loans along with maxiumum amount
outstanding during the year as per Clause 32 of Listing Agreement areas
follows:
(a) Loans and advances in the nature of loans have been given to
subsidiaries. (Refer Note 23 for amount outstanding and maximum amount
outstanding during the year).
(b) Loan and advance in the nature of loan bearing nil interest given to
Bharti Telemedia Limited Rs 14,879,527 thousand (March 31,2009 Rs 6,384,291
thousand)
(c) Loan and advance in the nature of loan given to Bharti Airtel Lanka
(Private) Limited at LIBOR + 4.5% interest rate is Rs 6,183,649 thousand.
13. Particulars of securities charged against secured loans taken by the
Company areas follows:
Particulars Amount Security charges
Out-
standing
(Rs'000)
11.70%, 50 375,000 } * First ranking pari passu charge on all
Non-convertible } present and future tangible movable and
Redeemable } freehold immovable assets owned by
Debentures of } Bharti Airtel Limited including plant
Rs 10,000 } and machinery, office equipment,
thousand each } furniture and fixtures fittings,spares
balance repayment } tools and accessories
commencing } * All rights, titles, interests in the
from June, } accounts, and monies deposited and
2010 } investments made there from and in
} project documents, book debts and
} insurance policies.
Vehicle Loan 19,296 Secured by Hypothecation of Vehicles of
From Bank the Company
Total 394,296
Note: Following shall be excluded from Securities as mentioned above:
a) Intellectual properties of Bharti Airtel.
b) Investment in subsidiaries of Bharti Airtel.
c) Licenses issued by DoT to the Company to provide various telecom
services.
14. Expenditure/Earnings in Foreign Currency(on accrual basis):
(Rs '000)
Particulars For the yearended March
31, 2010 31, 2009
Expenditure
On accountof:
Interest 981,066 1,999,983
Professional & Consultation Fees 198,466 122,323
Travelling 4,090 1,773
Roaming Charges(IncI.Commission) 2,346,554 2,860,862
Membership & Subscription 30,656 14,277
Staff Training & Others 40,642 63,827
Network Services 756,731 589,528
Annual Maintenance 756,771 502,434
Bandwidth Charges 1,001,948 1,144,713
Access Charges 12,403,255 11,890,341
Software 34,490 26,031
Marketing 406,209 25,956
Up-front fee on borrowings 29,893 74,907
Content Charges 999 3,098
Charity and Donation - 17,801
Point of Presence Charges 26,745 100,601
Directors Commission and Sitting Fees 11,733 10,475
Agency Fees & Premium fees 80,658 59,794
Listing Fees - 32
Total 19,110,906 19,508,756
Earnings:
Roaming Revenue 4,363,782 4,892,441
Billing Revenue 13,380,070 13,173,828
Management Charges 199,619 27,285
Total 17,943,471 18,093,554
15. CIF Value of Imports:
Capital Good 15,472,071 33,833,931
Total 15,472,071 33,833,931
16. The aggregate managerial remuneration
under section 198 of the Companies Act,
1956 to the directors(including Managing
Director) is:
Whole Time Directors:
Salary 92,372 111,193
Contribution to Provident fund 11,085 12,949
and other funds
Reimbursements and Perquisites 879 595
Performance Linked Incentive 178,609 151,686
Total Remuneration payable to 282,944 276,423
whole time directors
Non Whole Time Directors
Commission 15,517 14,056
Sitting Fees 480 480
Total amount paid /payable to 15,997 14,536
non whole time directors
Total Managerial Remuneration 298,941 290,959
As the liability for Gratuity and Leave Encashment are provided on
actuarial basis for the Company as a whole, the amounts pertaining to
Directors are not included above. Computation of Net Profit in accordance
with Section 349 of the Companies Act, 1956, and calculation of
Remuneration payable to Directors.
(Rs '000)
Particulars For the yearended March
31, 2010 31, 2009
Net Profit before tax from 106,992,486 81,615,367
ordinary activities
Add: Remuneration to Whole time director's 282,944 276,423
Add: Amount Paid to Non Whole time directors 15,997 14,536
Add: Depreciation and Amortisation 40,979,212 33,850,990
provided in the books *
Add: (Profit)/Loss on Sales of Fixed Assets 170,856 (38,899)
Add: Provision for doubtful debts and advances 2,267,530 2,684,358
Less: Depreciation under Section 350 of the 40,979,212 33,850,990
Companies Act,1956
Net Profit/ (Loss) for the year 109,729,813 84,551,785
Under Section 349
Maximum Amount paid/payable to non 1,097,298 845,518
whole-time Directors Restricted to
1%
Maximum Amount paid/payable to 10,972,981 8,455,179
whole-time Directors Restricted
to 10%
Amount Paid/Payable to Directors 298,461 290,479
(excluding sitting fees)
* The Company provides depreciation on Fixed Assets based on useful lives
of assets that are lower than those implicit in Schedule XIV of the
Companies Act, 1956.
Accordingly the rates of depreciation followed by Company are higher than
the minimum prescribed rateas perScheduleXIV
Remuneration paid/payable to directorfrom subsidiary company
(Rs '000)
Particulars For the yearended March
31, 2010 31, 2009
Whole Time Directors
Salary 24,810 20,085
Contribution to Provident fund and other funds 2,977 2,205
Performance Linked Incentive 21,420 16,800
Total Remuneration payable to director from 49,207 39,090
subsidiary company
Non Whole Time Directors:
Sitting Fees 50 30
Total amount paid /payable to non whole time 50 30
directors
Total Managerial Remuneration 49,257 39,120
As the liabilities for gratuity and leave encashmentare provided on
actuarial basisfor the Company as a whole, the amounts pertaining to
directors are not included above.
17. Auditors Remuneration :
(Rs '000)
Particulars For the yearended March
31, 2010 31, 2009
- Audit Fee* 39,088 38,888
- As adviser, or in any other
capacity, in respect of-
(i) taxation matters; 179 150
(ii) company law matters; Nil Nil
(iii) management services; and Nil Nil
- in any other manner * 8,930 6,239
- Reimbursement of Expenses * 5,061 4,659
Total 53,258 49,936
* Excluding Service Tax
18. Amounts due to micro and small enterprises under Micro, Small and
Medium Enterprises Development Act, 2006 aggregate to Rs 37,617 thousand
(March 31, 2009 - Rs 44,258 thousand ) based on the information available
with the Company and the confirmation received from the creditors till
theyear end.
(Rs'000)
Sr. Particulars March March
No. 31,2010 31,2009
1. The principal amount and the interest due 37,617 44,258
thereon [Rs 138 thousand (March 31, 2009 -
Rs 871 thousand)] remaining unpaid to any
supplier as atthe end of each accounting year.
2. The amount of interest paid by the buyer - -
in terms of section 16 of the Micro Small
and Medium Enterprise DevelopmentAct, 2006,
along with the amounts of the payment made
to the supplier beyond the appointed day
during each accounting year
3. The amount of interest due and payable - -
for the period of delay in making payment
(which have been paid but beyond the
appointed day during the year) but without
adding the interest specified under Micro
Small and Medium Enterprise Development
Act, 2006
4. The amount of interest accrued and 138 871
remaining unpaid at the end of each
accounting year;
5. The amount of further interest remaining - -
due and payable even in the succeeding years,
until such date when the interest dues as
above are actually paid to the small enterprise
for the purpose of disallowance as a deductible
expenditure under section 23 of the Micro Small
and Medium Enterprise Development Act, 2006.
19. Quantitative Information
2009-10
Particulars Year ended Purchases
March 31, 2009 2009-10
Qty. Value Qty. Value
Nos. (000) Nos. (000)
Simcard (Refer
Note 1 below) 27,847,184 602,211 121,618,363 2,113,609
TDMA/PAMA VSATs
Assembly sets (Refer
Note 2 below) - 6,646 - 121,153
Internet Modem,
Handsets Antennae
& others (Refer
Note 2 below) - 12,653 - 552,480
621,510 2,787,242
Particulars Utilisation Sales
(Refer note 3 below) (Refer note 4 below)
2009-10 2009-10
Qty. Value Qty. Value
Nos. (000) Nos. (000)
Simcard (Refer
Note 1 below) 115,822,752 2,458,631 - 10
TDMA/PAMA VSATs
Assembly sets (Refer
Note 2 below) - 24,836 - 111,193
Internet Modem,
Handsets Antennae
& others (Refer
Note 2 below) - 449,617 - 122,984
2,933,084 234,187
Particulars Year ended
March 31, 2010
Qty. Value
Nos. (000)
Simcard (Refer
Note 1 below) 33,642,795 257,189
TDMA/PAMA VSATs
Assembly sets (Refer
Note 2 below) - 8,465
Internet Modem,
Handsets Antennae
& others (Refer
Note 2 below) - 6,789
272,443
2008-09:
Particulars Year ended Purchases
March 31, 2008 2008-09
Qty. Value Qty. Value
Nos. (000) Nos. (000)
Simcards (Refer Note
2 below) 28,638,046 548,788 78,966,688 1,835,243
TDMA/PAMA VSATs
Assembly - 2,453 - 73,899
sets (Refer Note
3 below)
Internet Modem,
Handsets - 17,366 - 960,285
Antennae and
others (Refer
Note 3 below)
568,607 2,869,427
Particulars Utilisation Sales
(Refer note 3 below) (Refer note 4 below)
2008-09 2008-09
Qty. Value Qty. Value
Nos. (000) Nos. (000)
Simcards (Refer Note
2 below) 79,757,550 1,618,471 - 459
TDMA/PAMA VSATs
Assembly - 63,324 - 8,211
sets (Refer Note
3 below)
Internet Modem,
Handsets - 1,010,678 - 138,480
Antennae and
others (Refer
Note 3 below)
2,692,473 147,150
Particulars Year ended
March 31, 2009
Qty. Value
Nos. (000)
Simcards (Refer Note
2 below) 27,847,184 602,211
TDMA/PAMA VSATs
Assembly - 6,646
sets (Refer Note
3 below)
Internet Modem,
Handsets - 12,653
Antennae and
others (Refer
Note 3 below)
621,510
(1) Closing stock excludes value of simcards issued free of cost
(2) The quantitative information for TDMA/ PAMAVSATs, Assembly sets,
Modems, handsets antennas and others has not been given since they
constitute voluminous small items.
(3) Utilisation includes internal utilisation.
(4) Includes deferred revenue recognized during the year with respect to
simcards.
(5) Utilization includes Provision for diminution in value ofdosing stock
Rs 209,661 thousand (March 31,2009 Rs 20,827 thousand)
20. The details of investments required as per Schedule VI of the Companies
Act, 1956 are provided below:
a) Details of Investments held as at March 31, 2010
Particulars As at As at
March 31, 2010 March 31, 2010
(No. of Cost (No. of Cost
Units) ('000) Units) ('000)
Other than Trade
(Un-Quoted)
6.02% Certificate of 10,500 1,045,435 - -
Deposit of ICICI Bank
6.00% Certificate of 5,000 497,221 - -
Deposit of ICICI Bank
6.00% Certificate of 5,000 497,872 - -
Deposit of Punjab
National Bank
6.20% Certificate of 5,000 499,146 - -
Deposit of Bank of
Baroda
6.25% Certificate of 5,000 499,231 - -
Deposit of Canara
Bank
6.00% Certificate of 4,000 398,232 - -
Deposit of Canara Bank
6.10% Certificate of 4,500 449,100 - -
Deposit of Canara Bank
5.54% Certificate of 5,000 496,683 - -
Deposit of Canara Bank
6.25% Certificate of 2,500 249,658 - -
Deposit of State Bank
of Hyderabad
Investment in India 1 1,000 - -
Innovation Fund
7.30% REC Secured Bonds 30 28,993 30 27,703
7.16% Certificate of - - 2,500 247,284
Deposit of Axis Bank
Ltd
7.23% Certificate of - - 2,500 247,306
Deposit of Kotak Bank
Ltd
6.75% Certificate of - - 5,000 492,800
Deposit of Allahabad
Bank
7.59% Certificate of - - 2,500 247,407
Deposit of Yes Bank
6.87% Certificate of - - 2,500 244,884
Deposit of Punjab
National Bank
6.00% ICD With Rabo India - - 1 250,000
Finance Limited
Total (A) 4,662,570 1,757,384
Other than trade
(Unquoted)- Government
Securities
National Saving 18 1,800 18 1,800
Certificate
Deposits - - - 35
Total (B) 1,800 1,835
Other than Trade
(Quoted)- Mutual
Funds
TATA Floater Fund - 340,049,908 4,575,767 31,654,324 406,787
Growth
DWS Ultra Short Term 245,114,886 2,587,782 19,683,683 201,571
Fund - Institutional
Growth
Kotak Floater Long 222,824,916 3,197,880 63,860,748 885,867
Term - Growth
IDFC Money Manager Fund 188,144,674 2,014,697 51,224,769 531,230
- Treasury Plan- Super
Inst Plan C - Growth
ICICI Prudential Ultra 152,219,277 1,555,538 - -
Short Term Plan - Super
Premium Growth
Birla Sun Life Short 91,692,646 1,000,000 8,688,053 88,044
Term Fund -
Institutional Growth
HDFC Floating Rate 91,023,759 1,410,049 - -
Income Fund - Short
Term Plan-Wholesale
Plan - Growth
Reliance Medium Term 87,566,726 1,649,968 47,904,440 867,940
Fund - Retail Plan-
Growth Plan - Growth
Option
Fidelity Ultra Short 86,298,136 987,852 31,284,742 351,982
Term Debt Fund Super
Institutional-Growth
JM Money Manager Fund- 77,564,636 985,640 - -
Super Plus Plan-Growth
Birla Sun Life Saving 74,958,621 1,284,706 - -
Fund Institutional-
Growth
IDFC Money Manager Fund- 71,712,605 1,000,000 - -
Investment Plan
Institutional Plan B-
Growth
Principal Floating Rate 69,633,478 1,009,585 - -
Fund FMP-Insti. Option-
Growth Plan
SBI SHF-Ultra Short Term- 68,922,285 816,958 - -
Institutional Plan-
Growth
Religare Ultra Short 68,687,454 847,863 - -
Term Fund -
Institutional Growth
Canara Robeco Treasury 63,823,855 878,140 - -
Advantage- Super
Institutional Growth
Fund
HDFC Liquid Fund - 57,369,840 1,048,592 115,190,391 2,027,711
Premium Plan -
Growth
UTI Fixed Income 50,000,000 500,000 - -
Interval Fund-Monthly
Interval Plan II -
Institutional Growth
Plan
JP Morgan India Treasury 49,360,963 575,247 35,374,038 401,304
Fund - Super Inst. Growth
Plan
Templeton India Ultra 49,037,841 574,760 - -
Short Bond Fund Super
Institutional Plan-
Growth
Birla Sun Life Floating 46,386,062 500,000 - -
Rate - Long Term - INSTL-
Growth
Kotak Quarterly Interval 43,624,307 500,000 - -
Plan Series 6 - Growth
DWS Insta Cash Fund - 41,956,073 500,307 143,887,898 1,641,502
Super Institutional Plan
Growth
UTI Fixed Income Interval 41,085,310 500,000 - -
Fund - Quarterly Plan
Series III - Institutional
Growth Plan
IDFC Cash Fund - Super 40,238,152 450,150 - -
Inst Plan C-Growth
HDFC Cash Management 38,485,826 750,000 - -
Fund- Treasury Advantage
-Wholesale Plan-Growth
Kotak Quarterly Interval 29,784,953 350,000 - -
Plan Series 3 - Growth
Sundaram BNP Paribas 29,125,111 360,039 - -
Ultra Short Term Fund
Super Institutional
Growth
Birla Sun Life Interval 20,000,000 200,000 - -
Income - INSTL -Quarterly
- Series 1-GROWTH
LIC MF Income Plus Fund- 18,009,478 220,946 - -
Growth Plan
Kotak Liquid 17,258,714 321,920 - -
(Institutional
Premium) - Growth
Birla Sun Life Cash Plus- 16,977,237 250,000 55,092,791 774,748
Instl. Prem. - Growth
Canara Robeco Liquid 8,943,664 100,000 - -
Super Instt Growth
Fund
L&T Freedom Income STP 6,744,481 100,017 - -
-Inst.-Cum-Org
UTI Floating Rate Fund- 3,265,972 3,355,773 - -
Short Term Plan-
Institutional Growth
Option
UTI Treasury Advantage 2,270,517 2,772,402 - -
Fund - Institutional
Plan (Growth Option)
ICICI Prudential Liquid 1,668,870 226,845 143,331,889 1,858,426
Plan Super Institutional
Growth
Axis Treasury Advantage 730,539 740,433 - -
Fund - Institutional
Growth
UTI Money Market Mutual 242,424 250,000 - -
Fund - Institutional
Growth Plan
Tata Liquid Super High 211,995 360,000 1,329,729 2,155,140
Inv. Fund - Appreciation
Bharti Axa Treasury 211,067 223,821 83,861 83,861
Advantage Fund -
Institutional Plan-
Growth
ICICI Prudential Flexible - - 30,768,095 500,000
Income Plan Premium-
Growth
Birla Sun Life Medium Term - - 50,000,000 500,000
Plan - Instl Growth
Principal Cash Management - - 7,662,244 103,738
Fund Liquid Option Instl.
Prem. Plan - Growth
Canara Robeco Floating - - 7,369,197 100,000
Rate Short Term Fund
Growth Fund
Templeton India Treasury - - 261,789 331,150
Management Account Super
Institutional Plan -
Growth
Religare Liquid Fund - - - 4,321,579 51,929
Super Institutional
Growth
Fortis Money Plus - - 3,824,517 50,010
Institutional Growth
UTI Money Market Fund - - - 93,850,910 2,303,180
Growth Plan
DBS Chola Freedom Income - - 7,092,508 100,016
STP-Inst.-Cum-Org
Reliance Liquidity Fund- - - 22,651,083 300,000
Growth Option
Religare Quarterly - - 8,846,270 100,000
Interval Fund-Plan F-
Growth
JM High Liquidity Fund- - - 37,944,996 522,072
Super Institutional
Plan- Growth
UTI Liquid Cash Plan - - 707,797 1,018,788
Institutional - Growth
Option
Sundaram BNP Paribas Money - - 8,853,107 162,170
Fund Super Inst. Growth
SBI Magnum Insta Cash Fund - - 5,264,874 102,353
-Cash Option
Bharti Axa Liquid Fund- - - 161,378 164,279
Super Institutional Plan-
Growth
Bharti Axa Short Term - - 5,000,000 50,000
Income Fund - Institutional
Plan- Growth
Tata Liquid Super High Inv. - - 35,824 56,208
Fund - Appreciation
Total (C) 41,533,673 18,792,006
TOTAL (A) + (B) + (C) 46,198,043 20,551,225
b) Details of trade investments purchased and sold during the year
Trade Investment Balance as on Purchased Sale/
April 1, 2009 During the Year Redemption
Units (Rs.'000) Units (Rs.'000) Units (Rs.'000)
Investment in
Subsidiaries:
Bharti Hexacom 174999980 5717628 - - - -
Limited
Bharti 500000000 82181703 - - - -
Infratel
Limited
Bharti 4080000 40902 5610000 73795 - -
Telemedia
Limied*
Network i2i 9000000 5316039 - - - -
Limited
Bharti Airtel 525596420 2049411 - - - -
Lanka(Private)
Limited
Bharti Airtel 100 4 75000 3180 - -
(Canada)
Limited
Bharti Airtel 4959480 26333 - - - -
(Hongkong)
Limited
Bharti Airtel 750001 20139 - - - -
(Singapore)
Private
Limited
Bharti Airtel 1 1106553 311000000 14141667 - -
Holdings
(Singapore)
Pte Limited@
Bharti Airtel 123663 100612 - - - -
(UK) Limited
Bharti Airtel 300 508971 - - - -
(USA) Limited
Bharti Airtel 100000 1000 - - - -
Services
Limited
Investment in
Subsidiary's
Subsidiary
Bharti - - 3000 137 - -
International
(Singapore)
Pte. Ltd %
Bharti Airtel - - 200 12 - -
International
(Netherlands)
B.V**
Investment in
Joint Ventures
Bridge Mobile 2200000 92237 - - - -
PTE Limited
Investment in
Associates
Bharti Teleport 1470000 14700 - - - -
Limited
Alcatel-Lucent - - 9000004 90000 - -
Network
Management
Services
India Limited#
Others:
Investment in 100000 50125 - - - -
IFFCO JV
Total Trade 97226357 14308791 -
Investment
* Refer Schedule 2 (b) on Schedule 22
@ Refer Schedule 2 (c) on Schedule 22
% Refer Schedule 2 (d) on Schedule 22
** Refer Schedule 2 (e) on Schedule 22
# Refer Schedule 2 (a) on Schedule 22
c) In terms of the approval granted by the Central Government vide its
letter No.46/71/2010 dated April 27, 2010 under Section 211(4) of the
Companies Act, 1956, the Company has been exempted from the requirement of
the disclosure of the movement relating to purchase and sale of other than
trade investments.
21. The Company uses various premises on lease to install the equipment. A
provision is recognized for the costs to be incurred for the restoration of
these premises at the end of the lease period. It is expected that this
provision will be utilized at the end of the lease period of the respective
sites as per the respective lease agreements. The movement of Provision in
accordance with AS-29 'Provisions, Contingent liabilities and Contingent
Assets' notified under Companies Accounting Standards Rules, 2006 ('as
amended'), is given below:
Site Restoration Cost: (Rs '000)
Particulars For the yearended March
31, 2010 31, 2009
Opening Balance 276,653 1,150,541
Addition during the year 64,696 8,984
Transferred under the - (882,872)
Scheme of Arrangement
Adjustment during the year* (179,293) -
Closing Balance 162,056 276,653
* The Company has revised its estimates of provision for Asset Retirement
Obligation (ARO) and consequently reversed provision amounting to Rs
179,293 thousand with corresponding reduction in gross block of assets. The
change in estimates resulted in lower depreciation and higher profit
beforetax by Rs 5,657 thousandforthe year ended March 31, 2010.
22. Information about Business Segments-Primary
Segment Definitions:
The Company's operating businesses are organized and managed separately
according to the nature of products and services provided, with each
segment representing a strategic business unit that offers different
products and serves different markets. The analysis of geographical
segments is based on the areas in which major operating divisions of the
Company operate.
Mobile Services - These services cover telecom services provided through
cellular mobile technology wherein a subscriber is connected to the network
through wireless equipment The subscriber can freely roam around anywhere
and stay connected wherever the wireless network coverage is available.
Telemedia Services (formerly Broadband and Telephone Services) - These
services are provided through wire-line connectivity to the subscriber. The
end-user equipment is connected through cables from main network equipment
(i.e. switch) to subscriber's premises.
Enterprise Services - During the period, effective April 1, 2009, the
Company has reported erstwhile 'Enterprise Services Carrier Segment' and
'Enterprise Services - Corporate Segment' under 'Enterprise Services
Segment' in accordance with its accounting policy on segment reporting.
These services cover domestic and international long distance services and
internet and broadband services. Long distance services are intermediary
services provided to the service providers of cellular or fixed line
services. Internet and broadband services are used to provide bandwidth and
other network solutions to corporate customers.
Other operations - These comprise the unallocated revenues, profits /
(losses), assets and liabilities of the Company, none of which constitutes
a separately reportable segment. The corporate headquarters' expenses are
not charged to individual segments.
For the year ended March 31, 2010 (Rs'000)
Reportable Segments Mobile Telemedia Enterprise Others
Services Services Services
Revenue:
Service Revenue/Sale of 292160474 32047441 32756077 28710 - 356,992,702
Goods and Other Income
Inter Segment Revenue 6693437 1785517 49802121 - (58,281,075) -
Total Revenue 298853911 33832958 82558198 28710 (58,281,075) 356,992,702
Results:
Segment Result, 64819700 7498542 33581590 (7466185) 2,365 98,436,012
Profit/(Loss)
Net Finance Expense/ - - - (8556474) - (8,556,474)
(Income)
Net Profit/(Loss) 64819700 7498542 33581590 1090289 2,365 106,992,486
Provision for Tax
- Current Tax - - - 19813159 - 19,813,159
- MAT Credit - - - (10385866) - (10,385,866)
- Fringe Benefit Tax - - - - - -
- Deferred Tax - - - 3303646 - 3,303,646
(Credit)/Charge
Net Profit/Loss 64819700 7498542 33581590 22026516 2,365 94,261,547
after tax
Other Information
Segment Assets 211907470 52331935 94145129 174734764 - 533,119,298
Inter Segment Assets 182587710 12238376 122865191 - (317,691,277) -
Advance tax (Net of - - - 837329 - 837,329
provision for tax)
Advance Fringe - - - 13398 - 13,398
Benefit Tax (Net
of provision)
MAT Credit - - - 12210996 - 12,210,996
Total Assets 394495180 64570311 217010320 187796487 (317,691,277) 546,18 1,021
Segment Liabilities 84261407 8296281 29813166 56405857 - 178,776,711
Inter Segment 99241048 36935605 72731342 108783282 (317,691,277) -
Liabilities
Deferred Tax - - - 32543 - 32,543
Liability
Total Liabilities 183502455 45231886 102544508 165221682 (317,691,277) 1 78,809,254
Capital Expenditure 58530335 13683465 23528839 1018964 (26,072,204) 70,689,399
Depreciation and 29212679 7166355 7158475 624362 (3,182,659) 40,979,212
amortisation
Reportable Segments Eliminations Total
Revenue:
Service Revenue/Sale - 356992702
of Goods and Other
Income
Inter Segment Revenue (58281075) -
Total Revenue (58281075) 356992702
Results:
Segment Result, 2365 98436012
Profit/(Loss)
Net Finance Expense/ - (8556474)
(Income)
Net Profit/(Loss) 2365 106992486
Provision for Tax
- Current Tax - 19813159
- MAT Credit - (10385866)
- Fringe Benefit Tax - -
- Deferred Tax - 3303646
(Credit)/Charge
Net Profit/Loss 2365 94261547
after tax
Other Information
Segment Assets - 533119298
Inter Segment Assets (317691277) -
Advance tax (Net of - 837329
provision for tax)
Advance Fringe - 13398
Benefit Tax (Net
of provision)
MAT Credit - 12210996
Total Assets (317691277) 546181021
Segment Liabilities - 178776711
Inter Segment (317691277) -
Liabilities
Deferred Tax - 32543
Liability
Total Liabilities (317691277) 178809254
Capital Expenditure (26072204) 70689399
Depreciation and (3182659) 40979212
amortisation
For the year ended March 31, 2009:
(Rs. '000)
Reportable Segments Mobile Telemedia Enterprise
Services Services Services
Revenue:
Service Revenue/Sale of 274918524 30930923 35338973
Goods and Other Income
Inter Segment Revenue 7814275 2184489 45896963
Total Revenue 282732799 33115412 81235936
Results:
Segment Result,
Profit/(Loss) 63994377 8149339 31471376
Net Finance
Expense/(Income) - - -
Net Profit/(Loss) 63994377 8149339 31471376
Provision for Tax:
- Current Tax - - -
- MAT Credit - - -
- Fringe Benefit Tax - - -
- Deferred Tax
(Credit)/Charge - - -
Net Profit/(Loss)
after tax 63994377 8149339 31471376
Other Information:
Segment Assets 218751570 50331323 77750978
Inter Segment
Assets 121698562 16848857 90849201
Deferred Tax Asset - - -
Advance Tax - - -
(Net of provision
for tax):
Total Assets 340450132 67180180 168600179
Segment Liabilities 92405619 7928447 30130845
Inter Segment
Liabilities 57714286 47328000 56906798
Total Liabilities 150119905 55256447 87037643
Capital Expenditure 73790902 16554505 21166341
Depreciation and
amortisation 24097795 6034562 5190937
(Rs. '000)
Reportable Segments Others Eliminations Total
Revenue:
Service Revenue/Sale of 361850 - 341550270
Goods and Other Income
Inter Segment Revenue - (57143920) -
Total Revenue 361850 (57143920) 341550270
Results:
Segment Result,
Profit/(Loss) (4359883) - 99255209
Net Finance
Expense/(Income) 17639842 - 17639842
Net Profit/(Loss) (21999725) - 81615367
Provision for Tax:
- Current Tax 9173614 - 9173614
- MAT Credit (1396304) - (1396304)
- Fringe Benefit Tax 358731 - 358731
- Deferred Tax
(Credit)/Charge (3959059) - (3959059)
Net Profit/(Loss)
after tax (26176707) - 77438385
Other Information:
Segment Assets 140100735 - 486934606
Inter Segment
Assets 458805 (238694949) -
Deferred Tax Asset 3271103 - 3271103
Advance Tax 894226 - 894226
(Net of provision
for tax):
Total Assets 144724869 (238694949) 491099935
Segment Liabilities 84195380 - 214660291
Inter Segment
Liabilities 67906341 (238694949) -
Total Liabilities 152101721 (238694949) 214660291
Capital Expenditure 334392 (19428759) 94581880
Depreciation and
amortisation 448558 (2623627) 33850990
Notes:
1. 'Others' represents the Unallocated Revenue, Profit/ (Loss), Assets &
Liabilities.
2. Segment results represents Profit/(Loss) before Finance Expenses and
tax.
3. Capital expenditure pertains to gross additions made to fixed assets
during the year.
4. Segment Assets include Fixed Assets, Capital Work in Progress, Pre-
operative Expenses pending allocation, Current Assets and Miscellaneous
Expenditure to the extent not written off.
5. Segment Liabilities include Secured and Unsecured Loans, Current
Liabilities and Provisions.
6. Inter segmentAssets/ Liabilities representthe inter segment account
balances.
7. Inter segment revenues excludes the provision of telephone services free
of cost among group companies. Others are accounted for on terms
established by management on arm's length basis. These transactions have
been eliminated in consolidation.
8. The accounting policies used to derive reportable segment results are
consistent with those described in the 'Significant Accounting Policies'
note to the financial statements. Also refer Note 17 of Schedule 21
Information about Geographical Segment-Secondary:
The Company has operations within India as well as with entities located in
other countries. The information relating to the Geographical segments in
respect of operations within India, which isthe only reportable segment,
the remaining portion being attributableto others, is presented below:
(Rs '000)
Particulars As at As at
March 31,2010 March 31,2009
Segment Revenue from external customers
based on geographical location of
customers (including Other Income)
Within India 339,040,896 320,749,835
Others 17,951,806 20,800,435
356,992,702 341,550,270
Carrying amount of Segment Assets
by geographical location
Within India 523,527,581 479,033,684
Others 22,653,438 12,066,251
546,181,019 491,099,935
Cost incurred during the year to
acquire segment assets by geographical
location
Within India 63,683,720 90,844,077
Others 7,005,679 3,737,803
70,689,399 94,581,880
Notes:
1. 'Others' represents the unallocated revenue, assets and acquisition of
segment assets of the Company.
2. Assets include Fixed Assets, Capital/Work in Progress, Investments,
Deferred Tax Asset, Current Assets and miscellaneous expenditure to the
extent not written off.
3. Cost incurred to acquire segment assets pertain to gross additions made
to Fixed Assets during theyear.
23. Related Party Disclosures:
In accordance with the requirements of Accounting Standards (AS) -18 on
Related Party Disclosures, the names of the related parties where control
exists and/or with whom transactions have taken place during the year and
description of relationships, as identified and certified by the management
are:
List of Related Parties:
Key Management Personnel:
Sunil Bharti Mittal
Manoj Kohli
Sanjay Kapoor (w.e.f. March 1, 2010)
Other Related Parties:
Name of the Related Party and Relationship
Subsidiary Companies:
Bharti Hexacom Limited
Bharti Airtel Services Limited
Bharti Telemedia Limited
Bharti Airtel (USA) Limited
Bharti Airtel Lanka (Private) Limited
Bharti Airtel (UK) Limited
Bharti Airtel (Canada) Limited
Bharti Airtel (Hongkong) Limited
Bharti Infratel Limited
Network i2i Limited
Bharti Airtel Holdings (Singapore) Pte Limited
Bharti Airtel (Singapore) Private Limited
Bharti International (Singapore) Pte Limited
(subsidiary of Bharti Airtel Holdings (Singapore)
Pte Limited)
Bharti Airtel International (Netherlands) B.V
(subsidiary of Bharti International (Singapore)
Pte Limited)
Warid Telecom International Limited
(subsidiary of Bharti Airtel Holdings (Singapore)
Pte Limited)*
Bharti Infratel Lanka (Private) Limited
(subsidiary of Bharti Airtel Lanka (Private) Limited)
Bharti Infratel Ventures Limited
(subsidiary of Bharti Infratel Limited)
Associates:
Alcatel-Lucent Network Management Services India Limited *
Bharti Teleports Limited
Joint Venture/Joint Venture of Subsidiary:
Forum I Aviation Limited
Indus Towers Limited
Bridge Mobile Pte Limited
Entities where Key Management Personnel exercises significant influence/
Group Companies:
Beetel Teletech Limited
(formerly Bharti Teletech Limited)
Bharti Airtel Employees Welfare Trust
(formerly Bharti Tele-ventures Employees
Welfare Trust)
Bharti Axa General Insurance Company Limited
Bharti Axa Investment Managers Private Limited
Bharti Axa Life Insurance Company Limited
Bharti Enterprises Limited
Bharti Foundation
Bharti Realty Holdings Limited
(formerly Tamarind Projects Private Limited)
Bharti Realty Limited
(formerly Bharti Realty Private Limited)
Bharti Retail Limited
(formerly Bharti Retail Private Limited)
Bharti Wal-Mart Private Limited
Centum Learning Limited
Comviva Technologies Limited
Fieldfresh Foods Private Limited
(formerly Bharti Del Monte India Private Limited)
Guernsey Airtel Limited
Jataayu Software Limited
(merged with Comviva Technologies Limited
w.e.f 01-04-2008)
Jersey Airtel Limited
Telecom (Seychelles) Limited
Entity having significant influence:
Singapore Telecommunications Limited
Pastel Limited
Bharti Telecom Limited
* Refer Note 2 on Schedule 22
Related Party Transaction for 2009-10
(Rs'000)
Nature of Bharti Bharti Bharti Bharti
transaction Hexacom Airtel Airtel Airtel (UK)
Limited* Services (USA) Limited
Limited Limited
Purchase of fixed (118,974) - - -
assets/Bandwidth
Sale of fixed assets 1243029 3790 - -
Purchase of - - - -
Investments
Sale of Investments - - - -
Rendering of services 4,511,443 14,024 475,422 20,175
Receiving of services (1,309,981) (3,719,792) (164,676) (102,765)
Management fee 546,724 - - -
(including service
tax)
Fund transferred/ 6,582,313 3,959,483 - -
includes expenses
incurred on behalf
of others
Fund received/includes (8,969,310) (4,263,149) - -
expenses incurred on
behalf of Company
Employee related 21,841 74,665 - -
transaction incurred
on behalf of others
Employee related (7,942) (10,923) - -
transaction incurred
on behalf of Company
Salary - - - -
Donation - - - -
Amount received on - - - -
exercise of ESOP
options
Security deposit/ - - - -
Advances paid
Security deposit/ - - - -
Advances received
Loan to Related - - - -
Party
Subscription to - - - -
share capital
Interest received on 70,595 - 3,306 -
fund transferred
Dividend paid - - - -
Closing balance 183,110 123,703 742,073 (128,068)
Unsecured Loan - - - -
Creditors - (201,297) - (129,690)
Loans and Advances - 325,000 56,151 1,622
Debtors 183,110 - 685,922 -
Closing Balance 183,110 123,703 742,073 (128,068)
Maximum Loans
and Advance:
Outstanding during 1,434,598 325,000 56,151 1,622
the year
Guarantees and 1,207,546 92,784 - -
Collaterals
* Refer Note 27 on Schedule 22
(Rs'000)
Nature of Bharti Bharti Bharti Bharti
transaction Airtel Airtel Airtel Inter-
(Canada) (Hongkong) Holdings national
Limited Limited (Singapore) (Singapore)
Pte Limited Pte Limited
Purchase of fixed - - - -
assets/Bandwidth
Sale of fixed assets - - - -
Purchase of - - - -
Investments
Sale of Investments - - - -
Rendering of services 8,058 - - -
Receiving of services - (11,351) - -
Management fee - - - -
(including service
tax)
Fund transferred/ - - - -
includes expenses
incurred on behalf
of others
Fund received/includes - - - -
expenses incurred on
behalf of Company
Employee related - - - -
transaction incurred
on behalf of others
Employee related - - - -
transaction incurred
on behalf of Company
Salary - - - -
Donation - - - -
Amount received on - - - -
exercise of ESOP
options
Security deposit/ - - - -
Advances paid
Security deposit/ - - - -
Advances received
Loan to Related - - - -
Party
Subscription to 3,180 - 14,141,667 137
share capital
Interest received on 44 - - -
fund transferred
Dividend paid - - - -
Closing balance 11,954 (11,478) - -
Unsecured Loan - - - -
Creditors - (11,478) - -
Loans and Advances 554 - - -
Debtors 11,400 - - -
Closing Balance 11,954 (11,478) - -
Maximum Loans
and Advance:
Outstanding during 554 - - -
the year
Guarantees and - - 6,640,584 -
Collaterals
* Refer Note 27 on Schedule 22
(Rs'000)
Nature of Bharti Bharti Bharti Bharti
transaction Airtel Airtel Telemedia Infratel
International (Singapore) Limited Limited*
(Netherlands) Private
B.V Limited
Purchase of fixed - (3,072,593) - -
assets/Bandwidth
Sale of fixed assets - 399170 38304 2,233
Purchase of - - - -
Investments
Sale of Investments - - - -
Rendering of services - 21,133 189,831 -
Receiving of services - (221,339) (27,985) (12,356,639)
Management fee - - - -
(including service
tax)
Fund transferred/ - - 8,824,564 173,881
includes expenses
incurred on behalf
of others
Fund received/includes - - (202,774) (8,502,248)
expenses incurred on
behalf of Company
Employee related - - 20,471 -
transaction incurred
on behalf of others
Employee related - - (9,736) -
transaction incurred
on behalf of Company
Salary - - - -
Donation - - - -
Amount received on - - - -
exercise of ESOP
options
Security deposit/ - - - 1,551,100
Advances paid
Security deposit/ - - - -
Advances received
Loan to Related - - - -
Party
Subscription to 12 - - -
share capital
Interest received on - - - -
fund transferred
Dividend paid - - - -
Closing balance - (4,015,630) 14,879,527 234,833
Unsecured Loan - - - -
Creditors - (4,015,630) - (2,032,889)
Loans and Advances - - 14,879,527 2,267,722
Debtors - - - -
Closing Balance - (4,015,630) 14,879,527 234,833
Maximum Loans
and Advance:
Outstanding during - - 14,879,527 2,267,722
the year
Guarantees and - 8,073 493,220 53,938
Collaterals
Nature of Bharti Network i2i Bharti Singapore
transaction Airtel Lanka Limited Telecom Telecommuni-
(Private) Limited cations
Limited Limited
Purchase of fixed - (355,085) - -
assets/Bandwidth
Sale of fixed assets - 325,104 - -
Purchase of - - - -
Investments
Sale of Investments - - - -
Rendering of services 48,772 25,229 - 1,353,918
Receiving of services (28,674) (264,523) - (791,149)
Management fee - - - -
(including
service tax)
Fund transferred/ - 12,660 - -
includes expenses
incurred on behalf
of others
Fund received/includes - - (9,078) -
expenses incurred on
behalf of Company
Employee related - - - -
transaction incurred
on behalf of others
Employee related - - - -
transaction incurred
on behalf of Company
Salary - - - -
Donation - - - -
Amount received on - - - -
exercise of ESOP
options
Security deposit/ - - - -
Advances paid
Security deposit/ - - - -
Advances received
Loan to Related Party 3,712,200 - - -
Subscription to share - - - -
capital
Interest received on 232,654 - - -
fund transferred
Dividend paid - - 1,719,972 -
Closing balance 6,209,422 (4,191,200) - 442,749
Unsecured Loan - - - -
Creditors - (4,191,200) - -
Loans and Advances 6,183,649 - - -
Debtors 25,773 - - 442,749
Closing Balance 6,209,422 (4,191,200) - 442,749
Maximum Loans
and Advance:
Outstanding 6,183,649 - 9,078 -
during the
year
Guarantees and - - - -
Collaterals
Nature of Pastel Forum 1 Bridge Alcatel-
transaction Limited Aviation Mobile Pte Lucent
Limited Limited Network
Management
Services
India
Limited
Purchase of fixed - - - (280,296)
assets/Bandwidth
Sale of fixed assets - - - 156,924
Purchase of - - - -
Investments
Sale of Investments - - - -
Rendering of services - - - -
Receiving of services - (39,132) (12,572) (1,646,610)
Management fee - - - -
(including
service tax)
Fund transferred/ - - - -
includes expenses
incurred on behalf
of others
Fund received/includes - - - (28)
expenses incurred on
behalf of Company
Employee related - - - -
transaction incurred
on behalf of others
Employee related - - - (48,234)
transaction incurred
on behalf of Company
Salary - - - -
Donation - - - -
Amount received on - - - -
exercise of ESOP
options
Security deposit/ - - - -
Advances paid
Security deposit/ - - - -
Advances received
Loan to Related Party - - - -
Subscription to share - - - 90,000
capital
Interest received on - - - 1,088
fund transferred
Dividend paid 591,319 - - -
Closing balance - (1,083) - (868,977)
Unsecured Loan - - - -
Creditors - (1,083) - (868,977)
Loans and Advances - - - -
Debtors - - - -
Closing Balance - (1,083) - (868,977)
Maximum Loans
and Advance:
Outstanding - - - -
during the
year
Guarantees and - - - -
Collaterals
Nature of Indus Bharti Comviva Beetel
transaction Towers Wal-Mart Technologies Teletech
Limited Private Limited Limited
Limited (formerly
Bharti
Teletech
Limited)
Purchase of fixed - - (2,221) (677,732)
assets/Bandwidth
Sale of fixed assets 1,722 - - -
Purchase of - - - -
Investments
Sale of Investments - - - -
Rendering of services 58,444 1,436 6,991 239,455
Receiving of services (19,026,533) - (413,368) (186,511)
Management fee - - - -
(including
service tax)
Fund transferred/ 12,386 2,427 25,889 1,165
includes expenses
incurred on behalf
of others
Fund received/includes (10,947,887) - - -
expenses incurred on
behalf of Company
Employee related - - - -
transaction incurred
on behalf of others
Employee related - - - -
transaction incurred
on behalf of Company
Salary - - - -
Donation - - - -
Amount received on - - - -
exercise of ESOP
options
Security deposit/ 5,096,961 - - -
Advances paid
Security deposit/ - - - -
Advances received
Loan to Related Party - - - -
Subscription to share - - - -
capital
Interest received on - - - -
fund transferred
Dividend paid - - - -
Closing balance (1,917,749) 3,440 (29,517) 75,369
Unsecured Loan - - - -
Creditors (7,558,946) - (29,517) -
Loans and Advances 5,641,197 2,004 - -
Debtors - 1,436 - 75,369
Closing Balance (1,917,749) 3,440 (29,517) 75,369
Maximum Loans
and Advance:
Outstanding 5,641,197 2,427 - -
during the
year
Guarantees and - - - -
Collaterals
Nature of Telecom Bharti Guernsey Bharti
transaction (Seychelles) Realty Airtel Realty
Limited Limited Limited Holdings
(formerly Limited
Bharti (formerly
Realty Pvt. Tamarind
Limited) Project
Private
Limited)
Purchase of fixed - - - -
assets/Bandwidth
Sale of fixed assets - - - -
Purchase of - - - -
Investments
Sale of Investments - - - -
Rendering of services 40,582 - 3,978 -
Receiving of services (18,904) (326,560) - (14,354)
Management fee - - - -
(including
service tax)
Fund transferred/ 2,821 - - -
includes expenses
incurred on behalf
of others
Fund received/includes - (9,253) - -
expenses incurred on
behalf of Company
Employee related - - - -
transaction incurred
on behalf of others
Employee related - (658) - -
transaction incurred
on behalf of Company
Salary - - - -
Donation - - - -
Amount received on - - - -
exercise of ESOP
options
Security deposit/ - 12,275 - -
Advances paid
Security deposit/ - - - -
Advances received
Loan to Related Party - - - -
Subscription to share - - - -
capital
Interest received on - - - -
fund transferred
Dividend paid - - - -
Closing balance 4,298 571,518 7,748 8,487
Unsecured Loan - - - -
Creditors - - - -
Loans and Advances - 571,518 - 8,487
Debtors 4,298 - 7,748 -
Closing Balance 4,298 571,518 7,748 8,487
Maximum Loans
and Advance:
Outstanding - 571,518 - 8,487
during the
year
Guarantees and - - - -
Collaterals
Nature of Fieldfresh Bharti AXA Bharti Bharti
transaction Foods Pvt. Ltd. Life Foundation Airtel
(formerly Bharti Insurance Employees
Del Monte India Co. Ltd. Welfare Trust
Pvt. Ltd.) (formerly
Bharti Tele-
ventures
Employees
Welfare
Trust)
Purchase of fixed - - - -
assets/Bandwidth
Sale of fixed assets - - - -
Purchase of - - - -
Investments
Sale of Investments - - - -
Rendering of services - 15,215 - -
Receiving of services - - - -
Management fee - - - -
(including
service tax)
Fund transferred/ 820 - - -
includes expenses
incurred on behalf
of others
Fund received/includes - - - -
expenses incurred on
behalf of Company
Employee related - - - -
transaction incurred
on behalf of others
Employee related - - - -
transaction incurred
on behalf of Company
Salary - - - -
Donation - - 105,519 -
Amount received on - - - (22,777)
exercise of ESOP
options
Security deposit/ - - - -
Advances paid
Security deposit/ - - - -
Advances received
Loan to Related Party - - - -
Subscription to share - - - -
capital
Interest received on - - - -
fund transferred
Dividend paid - - - -
Closing balance - 250 - 84,588
Unsecured Loan - - - -
Creditors - - - -
Loans and Advances - - - 84,588
Debtors - 250 - -
Closing Balance - 250 - 84,588
Maximum Loans
and Advance:
Outstanding - - - 84,588
during the
year
Guarantees and - - - -
Collaterals
Nature of Jersey Bharti Centum Bharti
transaction Airtel Enterprises Learning Retail Ltd.
Limited Limited Limited (formerly
Bharti
Retail Pvt.
Ltd.)
Purchase of fixed - - - -
assets/Bandwidth
Sale of fixed assets - - - -
Purchase of - (73,795) - -
Investments
Sale of Investments - - - -
Rendering of services 47,252 4,867 - 31,472
Receiving of services (11,524) (594) (488,324) (901)
Management fee - - - -
(including
service tax)
Fund transferred/ - 227 11,152 11,962
includes expenses
incurred on behalf
of others
Fund received/includes (1,388) (575,622) - -
expenses incurred on
behalf of Company
Employee related - - - 221
transaction incurred
on behalf of others
Employee related (75) (426) (8,538) -
transaction incurred
on behalf of Company
Salary - - - -
Donation - - - -
Amount received on - - - -
exercise of ESOP
options
Security deposit/ - - - -
Advances paid
Security deposit/ - - - -
Advances received
Loan to Related Party - - - -
Subscription to share - - - -
capital
Interest received on - - - -
fund transferred
Dividend paid - - - -
Closing balance 23,559 1,377 60,072 10,301
Unsecured Loan - - - -
Creditors - - - -
Loans and Advances - - 60,072 -
Debtors 23,559 1,377 - 10,301
Closing Balance 23,559 1,377 60,072 10,301
Maximum Loans
and Advance:
Outstanding - - 60,072 -
during the
year
Guarantees and - - - -
Collaterals
Nature of Jataayu Bharti Axa Bharti Axa Bharti
transaction Software General Investment Teleports
Limited Insurance Managers Limited
Co. Ltd. Pvt. Ltd.
Purchase of fixed - - - -
assets/Bandwidth
Sale of fixed assets - - - -
Purchase of - - (189,960) -
Investments
Sale of Investments - - 264,279 -
Rendering of services 2,465 - - -
Receiving of services - (7,125) - -
Management fee - - - -
(including
service tax)
Fund transferred/ - - - -
includes expenses
incurred on behalf
of others
Fund received/includes - - - -
expenses incurred on
behalf of Company
Employee related - - - -
transaction incurred
on behalf of others
Employee related - - - -
transaction incurred
on behalf of Company
Salary - - - -
Donation - - - -
Amount received on - - - -
exercise of ESOP
options
Security deposit/ - - - -
Advances paid
Security deposit/ - - - -
Advances received
Loan to Related Party - - - 100,000
Subscription to share - - - -
capital
Interest received on - - - 2,066
fund transferred
Dividend paid - - - -
Closing balance (2) 153 - 102,066
Unsecured Loan - - - -
Creditors (2) - - -
Loans and Advances - 153 - 102,066
Debtors - - - -
Closing Balance (2) 153 102,066
Maximum Loans
and Advance:
Outstanding - 153 - 102,066
during the
year
Guarantees and - - - -
Collaterals
Nature of Sunil Manoj Sanjay
transaction Bharti Kohli Kapoor
Mittal
Purchase of fixed - - -
assets/Bandwidth
Sale of fixed assets - - -
Purchase of - - -
Investments
Sale of Investments - - -
Rendering of services - - -
Receiving of services - - -
Management fee - - -
(including
service tax)
Fund transferred/ - -
includes expenses
incurred on behalf
of others
Fund received/includes - -
expenses incurred on
behalf of Company
Employee related - - -
transaction incurred
on behalf of others
Employee related - - -
transaction incurred
on behalf of Company
Salary 234,884 45,276 2,655
Donation - - -
Amount received on - - -
exercise of ESOP
options
Security deposit/ - - -
Advances paid
Security deposit/ - - -
Advances received
Loan to Related Party - - -
Subscription to share - - -
capital
Interest received on - - -
fund transferred
Dividend paid - 180 487
Closing balance (118,800) (15,728) (677)
Unsecured Loan - - -
Creditors (118,800) (15,728) (677)
Loans and Advances - - -
Debtors - - -
Closing Balance (118,800) (15,728) (677)
Maximum Loans
and Advance:
Outstanding - - -
during the
year
Guarantees and - - -
Collaterals
During the year, the Company has paid in addition of provision made last
year Rs 2,784 thousand to Akhil Gupta towards PLI for the year 2008-09
Related Party Transaction for 2008-09:
(Rs. 000)
Nature of transaction Bharti Bharti Bharti Bharti
Hexacom Airtel Airtel Airtel
Limited (Services) (USA) (UK)
Limited Limited Limited
Purchase of fixed
assets/Bandwidth (60269) (7073) - -
Sale of fixed assets 1491733 408 - -
Purchase of
Investments
(Mutual Fund):
Sales of Investments
(Mutual Fund):
Rendering of services 3659324 5379 659829 12720
Receiving of services (1228856) (3561983) (74510) (35280)
Management fee
(including service
tax) 527121
Fund transferred/
includes expenses
incurred on behalf
of others 9155136 3273104 - -
Fund received/includes
expenses incurred on
behalf of Company (9034234) (3214358) - -
Employee related
transaction incurred
on behalf of others 33649 2611 - -
Employee related
transaction incurred
on behalf of Company (8319) - - -
Salary:
Donation - - - -
Amount received on
exercise of ESOP
options:
Security deposit/
Advances paid - - - -
Security deposit/
Advances received - - - -
Loan to Related
Party - - - -
Subscription to
share capital 343062 - - 13093
Interest received
on fund transferred 266820 - 3374 986
Closing balance 4212618 546892 1063575 (25643)
Unsecured Loan - - - -
Creditors - - - (27418)
Loans and Advances 1722565 - 76306 1775
Debtors 2490053 546892 987269 -
Closing Balance 4212618 546892 1063575 (25643)
Maximum Loans
and Advances
outstanding
during the year 7058362 - 76306 1775
Guarantees and
Collaterals 849829 80629 - -
(Rs. 000)
Nature of transaction Bharti Bharti Bharti Bharti
Airtel Airtel Airtel Airtel
(Canada) (Hongkong) Holdings (Singapore)
Limited Limited (Singapore) Limited
Purchase of fixed
assets/Bandwidth - - - (1427039)
Sale of fixed assets - - - -
Purchase of
Investments
(Mutual Fund):
Sales of Investments
(Mutual Fund):
Rendering of services 3751 - - 46852
Receiving of services - (162) - -
Management fee
(including service
tax)
Fund transferred/
includes expenses
incurred on behalf
of others - - - -
Fund received/includes
expenses incurred on
behalf of Company - - - -
Employee related
transaction incurred
on behalf of others - - - -
Employee related
transaction incurred
on behalf of Company - - - -
Salary:
Donation - - - -
Amount received on
exercise of ESOP
options:
Security deposit/
Advances paid - - - -
Security deposit/
Advances received - - - -
Loan to Related
Party - - - -
Subscription to
share capital - - 1106553 -
Interest received
on fund transferred 225 - - -
Closing balance 7409 (162) - (1380187)
Unsecured Loan - - - -
Creditors - (162) - (1380187)
Loans and Advances 3570 0 - -
Debtors 3839 - - -
Closing Balance 7409 (162) - (1380187)
Maximum Loans
and Advances
outstanding
during the year 3570 - - -
Guarantees and
Collaterals - - - -
(Rs. 000)
Nature of Bharti Bharti Bharti Network Bharti
transaction Telemedia Infratel Airtel i2i Aquanet
Limited Limited Lanka Limited Limited
Pte Limited (Private)
Limited
Purchase of fixed
assets/Bandwidth - (10555) - (1682284) -
Sale of fixed
assets - 5 - - -
Purchase of
Investments
(Mutual Fund):
Sales of
Investments
(Mutual Fund):
Rendering of
services 57201 - - - 199
Receiving of
services (16539) (35484173) - (272491) (80282)
Management fee
(including
service tax)
Fund transferred/
includes expenses
incurred on behalf
of others 5665577 251308 - - 43255
Fund received/
includes expenses
incurred on behalf
of Company (158089) (40701) - - (46241)
Employee related
transaction
incurred on behalf
of others 13892 - - - -
Employee related
transaction
incurred on behalf
of Company (95700) (50) - - (33)
Salary:
Donation - - - - -
Amount received
on exercise of
ESOP options:
Security deposit/
Advances paid - 1985707 - - -
Security deposit/
Advances received - - - - -
Loan to Related
Party - 12544332 2471450 - -
Subscription to
share capital - - 2049411 - -
Interest received
on fund transferred - 415094 65455 - -
Closing balance 6356874 1355506 2471450 (4557444) -
Unsecured Loan - - - - -
Creditors (27417) (675696) - (4557444) -
Loans and Advances 6384291 2031202 2471450 - -
Debtors - - - -
Closing Balance 6356874 1355506 2471450 (4557444) -
Maximum Loans
and Advances
outstanding
during the year 6384465 11206561 2471450 -
Guarantees and
Collaterals 624898 1185 - -
(Rs. 000)
Nature of transaction Bharti Singapore Forum I Bridge
Telecom Telecommu- Aviation Mobile Pte
Limited nications Limited Limited
Limited
Purchase of fixed
assets/Bandwidth - - - -
Sale of fixed
assets - - - -
Purchase of
Investments
(Mutual Fund):
Sales of Investments
(Mutual Fund):
Rendering of
services - 1549602 - -
Receiving of
services - (816584) (34753) (15074)
Management fee
(including
service tax):
Fund transferred/
includes expenses
incurred on behalf
of others - - - -
Fund received/
includes expenses
incurred on behalf
of Company - - - -
Employee related
transaction
incurred on behalf
of others - - - -
Employee related
transaction
incurred on behalf
of Company - - - -
Salary:
Donation - - - -
Amount received on
exercise of ESOP
options:
Security deposit
/Advances paid - - - -
Security deposit/
Advances received - - - -
Loan to Related
Party:
Subscription to
share capital - - - -
Interest received
on fund transferred - - 116 -
Closing balance 9078 531594 - -
Unsecured Loan - - - -
Creditors - - - -
Loans and Advances 9078 - - -
Debtors - 531594 - -
Closing Balance 9078 531594 - -
Maximum Loans and
Advances outstanding
during the year 9078 - - -
Guarantees and
Collaterals - - - -
(Rs. 000)
Nature of transaction Indus Bharti Comviva Bharti
Towers Wal-Mart Technologies Teletech
Limited Private Limited Limited
Limited
Purchase of fixed
assets/Bandwidth - - (16346) (1045101)
Sale of fixed
assets - - - -
Purchase of
Investments
(Mutual Fund):
Sales of Investments
(Mutual Fund):
Rendering of
services - 1039 20178 102419
Receiving of
services (9786743) - (690394) (43984)
Management fee
(including
service tax):
Fund transferred/
includes expenses
incurred on behalf
of others - - - 1327
Fund received/
includes expenses
incurred on behalf
of Company - - (686) (5737)
Employee related
transaction
incurred on behalf
of others - - - 54
Employee related
transaction
incurred on behalf
of Company - - - -
Salary:
Donation - - - -
Amount received on
exercise of ESOP
options:
Security deposit
/Advances paid 544237 - - -
Security deposit/
Advances received - - - (53600)
Loan to Related
Party:
Subscription to
share capital - -
Interest received
on fund transferred - - - -
Closing balance (3193085) 381 (197497) 25857
Unsecured Loan - - - -
Creditors (3737322) - (197497) -
Loans and Advances 544237 - - 25857
Debtors - 381 - -
Closing Balance (3193085) 381 (197497) 25857
Maximum Loans and
Advances outstanding
during the year 544237 - - 25857
Guarantees and
Collaterals - - - -
(Rs. 000)
Nature of transaction Telecom Bharti Guernsey Tamarind
(Seychelles) Realty Airtel Projects
Limited Private Limited Private
Limited Limited
Purchase of fixed
assets/Bandwidth - - - -
Sale of fixed
assets - - - -
Purchase of
Investments
(Mutual Fund):
Sales of Investments
(Mutual Fund):
Rendering of
services 15064 - 4165 -
Receiving of
services (12434) (126293) - -
Management fee
(including
service tax):
Fund transferred/
includes expenses
incurred on behalf
of others - - - 14622
Fund received/
includes expenses
incurred on behalf
of Company - - - -
Employee related
transaction
incurred on behalf
of others - - - -
Employee related
transaction
incurred on behalf
of Company - - - -
Salary:
Donation - - - -
Amount received on
exercise of ESOP
options:
Security deposit
/Advances paid - 242591 - -
Security deposit/
Advances received - (188991) - -
Loan to Related
Party:
Subscription to
share capital
Interest received
on fund transferred - - - -
Closing balance 738 611418 10160 -
Unsecured Loan - - - -
Creditors - - - -
Loans and Advances 738 611418 10160 -
Debtors - - - -
Closing Balance 738 611418 10160 -
Maximum Loans and
Advances outstanding
during the year 738 611418 10160
Guarantees and
Collaterals - - - -
(Rs. '000)
Nature of transaction Bharti Bharti Bharti Bharti
Del Monte AXA Life Foundation Tele-
India insurance ventures
Private Co. Ltd. Employee's
Limited Welfate
Trust
Purchase of fixed
assets/Bandwidth - - - -
Sale of fixed assets - - - -
Purchase of
Investments
(Mutual Fund) - - -
Sales of Investments
(Mutual Fund) - - - -
Rendering of
services - 23887 - -
Receiving of
services - (51) - -
Management fee
(including service
tax)
Fund transferred/
includes expenses
incurred on behalf
of others - - - -
Fund received/
includes expenses
incurred on behalf
of Company (447) - - -
Employee related
transaction
incurred on behalf
of others - - - -
Employee related
transaction
incurred on behalf
of Company (1034) - (3079) -
Salary - - - -
Donation - - 103079 -
Amount received on
exercise of ESOP
options - - - (11679)
Security deposit
/Advances paid - - - -
Security deposit/
Advances received - - - -
Loan to Related
Party - - - -
Subscription to
share capital - - - -
Interest received
on fund transferred - - - -
Closing balance 447 23740 - 107364
Unsecured Loan - - - -
Creditors - - - -
Loans and Advances 447 23740 - 107364
Debtors - - - -
Closing Balance 447 23740 - 107364
Maximum Loans and
Advances outstanding
during the year 447 23740 - 107364
Guarantees and
Collaterals - - - -
(Rs. '000)
Nature of transaction Jersey Bharti Centum Bharti
Airtel Enterprises Learning Retail
Limited Limited Limited Private
(Formerly Limited
Bharti
Learning
Systems
Limited)
Purchase of fixed
assets/Bandwidth - - - -
Sale of fixed assets - - 8 -
Purchase of
Investments
(Mutual Fund) - - - -
Sales of Investments
(Mutual Fund) - - - -
Rendering of
services 43559 1134 - 15871
Receiving of
services (477) - (207551) -
Management fee
(including service
tax)
Fund transferred/
includes expenses
incurred on behalf
of others - 71 5859 13694
Fund received/
includes expenses
incurred on behalf
of Company - (166370) - (3936)
Employee related
transaction
incurred on behalf
of others - - - 5131
Employee related
transaction
incurred on behalf
of Company (365) (6210) (1036) (8248)
Salary - - - -
Donation - - - -
Amount received on
exercise of ESOP
options - - - -
Security deposit
/Advances paid - - - -
Security deposit/
Advances received - - - -
Loan to Related
Party - - - -
Subscription to
share capital - - - -
Interest received
on fund transferred - - - -
Closing balance 31672 470 62610 5648
Unsecured Loan - - - -
Creditors - - - -
Loans and Advances 31672 470 62610 5648
Debtors - - - -
Closing Balance 31672 470 62610 5648
Maximum Loans and
Advances outstanding
during the year 31672 470 62610 5648
Guarantees and
Collaterals - - - -
(Rs. '000)
Nature of transaction Jataayu Bharti Bharti Bharti
Software Axa General Axa Teleports
Ltd. Insurance Investment Limited
Co. Ltd. Managers
Private
Limited
Purchase of fixed
assets/Bandwidth - - - -
Sale of fixed assets - - - -
Purchase of
Investments
(Mutual Fund) - - (1210027) -
Sales of Investments
(Mutual Fund) - - 911887 -
Rendering of
services 1313 - - -
Receiving of
services - (10076) - -
Management fee
(including service
tax)
Fund transferred/
includes expenses
incurred on behalf
of others - - - -
Fund received/
includes expenses
incurred on behalf
of Company - (634) - -
Employee related
transaction
incurred on behalf
of others - - - -
Employee related
transaction
incurred on behalf
of Company - - - -
Salary - - - -
Donation - - - -
Amount received on
exercise of ESOP
options - - - -
Security deposit
/Advances paid - - - -
Security deposit/
Advances received - - - -
Loan to Related
Party - - - -
Subscription to
share capital - - - 14700
Interest received
on fund transferred - - - -
Closing balance 230 - - -
Unsecured Loan - - - -
Creditors - - - -
Loans and Advances 230 - - -
Debtors - - - -
Closing Balance 230 - -
Maximum Loans and
Advances outstanding
during the year 230
Guarantees and
Collaterals - - - -
(Rs. '000)
Nature of transaction Sunil Akhil Manoj
Bharti Gupta* Kohli
Mittal
Purchase of fixed
assets/Bandwidth - - -
Sale of fixed assets - - -
Purchase of
Investments
(Mutual Fund) - - -
Sales of Investments
(Mutual Fund) - - -
Rendering of
services
Receiving of
services
Management fee
(including service
tax)
Fund transferred/
includes expenses
incurred on behalf
of others
Fund received/
includes expenses
incurred on behalf
of Company
Employee related
transaction
incurred on behalf
of others
Employee related
transaction
incurred on behalf
of Company
Salary 228977 21489 25958
Donation
Amount received on
exercise of ESOP
options - - -
Security deposit
/Advances paid - - -
Security deposit/
Advances received - - -
Loan to Related
Party - - -
Subscription to
share capital - - -
Interest received
on fund transferred - - -
Closing balance (110000) (7933) (7989)
Unsecured Loan
Creditors (110000) (7933) (7989)
Loans and Advances - - -
Debtors - - -
Closing Balance (110000) (7933) (7989)
Maximum Loans and
Advances outstanding
during the year
Guarantees and
Collaterals - - -
24. Operating lease -Asa Lessee:
The lease rentals charged during the year for cancelable/non-cancelable
leases relating to rent of building premises and cell sites as per the
agreements and maximum obligation on long-term non-cancelable operating
leases areas follows:
(Rs '000)
Particulars As at As at
March 31,2010 March 31,2009
Lease Rentals (Excluding 34,626,021 27,689,266
Lease Equalisation Reserve)
Obligations on non
cancelable leases:
Not later than one year 33,279,040 30,102,470
Later than one year but 84,316,547 75,778,742
not later than five years
Later than five years 133,690,403 136,829,016
Total 251,285,990 242,710,228
The escalation clause includes escalation at various periodic levels
ranging from 0 to 50%, includes option of renewal from 1 to 99 years and
there are no restrictions imposed on lease arrangements.
Operating Lease-Asa Lessor:
i) The Company has entered into a non-cancelable lease arrangementto
provide approximately 100,000 Fiber pair kilometers of dark fiber on
indefeasible right of use (IRU) basis for a period of 18 years. The lease
rental receivable proportionate to actual kilometers accepted by the
customer is credited to the Profit and Loss Account on a straight- line
basis over the lease term. Due to the nature of the transaction, it is not
possible to compute gross carrying amount, depreciation for the year and
accumulated depreciation of the asset given on operating lease as at March
31, 2010 and accordingly, disclosures required by AS 19 is not provided.
ii) The future minimum lease payments receivable are:
(Rs '000)
Particulars As at As at
March 31,2010 March 31,2009
Not later than one year 170,158 164,081
Later than one year but not 438,056 481,121
later than five years
Later than five years 429,034 554,772
Tota 11,037,248 1,199,974
25. Finance Lease-as a Lessee
The Company entered into a composite IT outsourcing agreement, whereby the
vendor supplied fixed assets and IT related services to the Company. Based
on the risks and
rewards incident to the ownership, the fixed asset and liability are
recorded atthefairvalueofthe leased assets at the time of receipt of the
assets, since it is not possible for the Company to determine the extent of
fixed assets and services under the contract at the inception of the
contract. These assets are depreciated over their useful lives as in the
case ofthe Company's own assets.
Since the entire amount payable to the vendor towards the supply of fixed
assets and services during the year is accrued, the disclosures as perAS 19
are not applicable.
There are no restrictions imposed on lease arrangements.
26. The breakup of net Deferred Tax Asset/ (Liability) as on March 31, 2010
is as follows:
(Rs '000)
Particulars As at As at
March 31,2010 March 31,2009
Deferred tax Assets
Provision for doubtful debts/advances 4,703,292 4,116,922
charged in financial statement but
allowed as deduction under the
Income Tax Act in future years
(to the extend considered realisable)
Lease Rent Equilization charged in 1,633,773 796,399
financial statement but allowed
as deduction under the Income Tax
Act in future years on actual
payment basis
Foreign exchange fluctuation and 737,987 3,649,311
MTM losses charged in financial
statement but allowed as deduction
under the Income Tax Act in future
years (by way of depreciation
and actual realisation, respectively)
Other expenses claimed as deduction 887,841 610,483
in the financial statement but allowed
as deduction under Income Tax Act
in future year on actual payment (Net)
Gross Deferred Tax Assets 7,962,893 9,173,116
Deferred Tax Liabilities
Depreciation claimed as deduction (7,995,436) (5,820,367)
under Income Tax Act but chargeable
in the financial statement in
future years
Less: Transfer Under the Scheme of - (79,772)
Arrangement
Add: Acquired Under the Scheme of Merger - (1,874)
Gross Deferred Tax Liabilities (7,995,436) (5,902,013)
Net Deferred Tax Assets/ (32,543) 3,271,103
(Liabilities) (Net)
The tax impact for the above purpose has been arrived at by applying a tax
rate of 33.99% being the substantively enacted tax rate for Indian
companies underthe Income TaxAct,1961
27. Employee stock compensation:
(i) Pursuant to the shareholders' resolutions dated February 27, 2001 and
September 25, 2001, the Company introduced the 'Bharti Tele-Ventures
Employees' Stock Option Plan' (hereinafter called 'the Old Scheme') under
which the Company decided to grant, from time to time, options to the
employees of the Company and its subsidiaries. The grant of options to the
employees under the ESOP Scheme is on the basis of their performance and
other eligibility criteria.
(ii) On August 31, 2001 and September 28, 2001, the Company issued a total
of 1,440,000 equity shares at a price of Rs 565 per equity share to the
Trust. The Company issued bonus shares in the ratio of 10 equity shares for
every one equity share held as atSeptember30, 2001, as a result of which
the total number of shares allotted to the trust increased to 15,840,000
equity shares.
(iii) Pursuant to the shareholders' further resolution dated September 6,
2005, the Company announced a new Employee Stock Option Scheme (hereinafter
called 'the New Scheme') under which the maximum quantum of options was
determined at 9,367,276 options to be granted to employees from time to
time on the basis of their performance and other eligibility criteria.
(iv) All above options are planned to be settled in equity at the time of
exercise and have maximum period of 7 years from the date of respective
grants. The plans existing during the year are as follows:
a) 2001 Plan under the Old Scheme:
The options under this plan have an exercise price of Rs 11.25 per share
(Post split, refer Note 28 of Schedule 22) and vest on a graded basis as
follows:
Vesting period from Vesting
the grant date schedule
For options with a On completion of 12 months 20%
vesting period of On completion of 24 months 30%
36 months: On completion of 36 months 50%
For options with a On completion of 12 months 15%
vesting period of On completion of 18 months 15%
42 months: On completion of 30 months 30%
On completion of 42 months 40%
For options with a On completion of 12 months 10%
vesting period of On completion of 24 months 20%
48 months: On completion of 36 months 30%
On completion of 48 months 40%
b) 2004 Plan under the Old Scheme:
The options under this plan have an exercise price of Rs 35 per share (Post
split, refer Note 28 of Schedule 22) and vest on a graded basis as follows:
Vesting period from Vesting
the grant date schedule
For options with a On completion of 12 months 10%
vesting period of On completion of 24 months 20%
48 months: On completion of 36 months 30%
On completion of 48 months 40%
c) Super-pot Plan under the Old Scheme
The options underthis plan have an exercise price of Rs Nil per share and
vest on a graded basis as follows:
Vesting period from Vesting
the grant date schedule
For options with a On completion of 12 months 30%
vesting period of On completion of 24 months 30%
36 months: On completion of 36 months 40%
d) 2006 Plan under the Old Scheme:
The options underthis plan have an exercise price of Rs 5 per share
(Postsplit, refer Note 28 of Schedule 22) and vest on a graded basis from
the effective date of grantasfollows:
Vesting period from Vesting
the grant date schedule
For options with a On completion of 36 months 50%
vesting period of On completion of 48 months 50%
48 months:
e) 2005 Plan under the New Scheme:
The options under this plan have an exercise price in the range of Rs 5 to
Rs 461 per share (Post split, refer Note 28 of Schedule 22) and vest on a
graded basis from the effective date of grantas follows:
Vesting period from Vesting
the grant date schedule
For options with a On completion of 12 months 10%
vesting period of On completion of 24 months 20%
48 months: On completion of 36 months 30%
On completion of 48 months 40%
f) 2008 Plan and Annual Grant Plan (AGP) under the New Scheme:
The options under this plan have an exercise price in the range of Rs 590
to Rs 805 pershare (Postsplit, refer Note 28 of Schedule 22) and veston a
graded basisfrom the effective date of grantasfollows:
2008 Plan AGP#
Vesting period from Vesting Vesting
the grant date schedule schedule
For options with On completion of 12 months 25% 33%
a vesting period On completion of 24 months 35% 33%
of 36 months: On completion of 36 months 40% 33%
# The above plan has been withdrawn effective January 1, 2010
(v) The Information concerning stock options granted, exercised, forfeited
and outstanding at theyear-end is as follow:
(Shares in A B C D E F
Thousands)
2001 Plan
Number of shares
under option:
Outstanding at 36 11.25 73 11.25
beginning of
year
Granted - - - -
Exercised* 4 11.25 23 11.25
Cancelled or 16 - 14 -
expired
Outstanding at 16 11.25 0.00 to 2.25 36 11.25 0.00 to 3.25
the year end
Exercisable at 16 11.25 36 11.25
end of year
Weighted average - - - - - -
grant date fair
value/exercise
price per option
for options
granted during
the year/period
at less than
market value
2004 Plan
Number of shares
under option:
Outstanding at 576 35.00 955 35.00
beginning of
year
Granted - - - -
Exercised* 406 35.00 379 35.00
Cancelled or - - - -
expired
Outstanding at 170 35.00 0.76 to 1.25 576 35.00 1.76 to 2.25
the year end
Exercisable at 170 35.00 576 35.00
end of year
Weighted average - - - - - -
grant date fair
value/exercise
price per option
for options
granted during
the year/period
at less than
market value
Superpot Plan
Number of shares
under option:
Outstanding at 12 - 12 -
beginning of
year
Granted - - - -
Exercised* - - - -
Cancelled - - - -
or expired
Outstanding at 12 - 1.25 12 - 2.25
the yearend
Exercisable at 12 12
end of year
Weighted average - - - - - -
grant date fair
value/exercise
price per value
for options
granted during
the year/period
at less than
market value
2006 Plan
Number of shares
under option:
Outstanding at 2,410 5.00 2,785 5.00
beginning of
year
Granted 454 5.00 261 5.00
Exercised* 640 5.00 36 5.00
Cancelled or 128 - 600 -
expired
Outstanding at 2,096 5.00 3.17 to 6.77 2,410 5.00 5.07 to 5.35
the year-end
Exercisable 357 5.00 68 5.00
at end of
year
Weighted average 454 299.93 260.93 263.25
grant date
fair value/
exercise price
per value for
options granted
during the year/
period at less
than market value
Scheme 2005:
Number of shares
under option:
Outstanding at 5,998 237.30 7,682 237.30
beginning of
year
Granted 1,323 5.00 - -
Exercised 920 128.37 478 134.08
Cancelled or 604 - 1,206 -
expired
Outstanding at 5,797 192.53 2.44 to 6.34 5,998 237.30 3.44 to 5.92
the year-end
Exercisable at 2,576 192.53 1,876 237.30
end of year
Weighted average 1,323 401.40 - -
grant date fair
value/exercise
price per option
for options
granted during
the year/period
at less than
market value
Scheme 2008 &
Annual Grant
Plan:
Number of
shares under
option:
Outstanding at 5,794 331.22 - -
beginning of
period
Granted 2,566 402.50 6,216 330.36
Exercised 1 - - -
Cancelled or 1,328 - 422 -
expired
Outstanding at 7,031 352.05 5.25 to 6.25 5,794 331.22 6.25 to 6.76
period end
Exercisable at 1,282 352.05 - -
end of period
Weighted 2,566 169.45 6,216 154.44
average grant
date fair
value/exercise
price per option
for options
granted during
the year/period
at less than
market value
A = As of March 31, 2010 Number of stock options
B = As of March 31, 2010 Weighted average exercise price (Rs.)
C = As of March 31, 2010 Weighted average remaining contractual life (in
Years)
D = As of March 31, 2009 Number of stock options
E = As of March 31, 2009 Weighted average exercise price (Rs.)
F = As of March 31, 2009 Weighted average remaining contractual life (in
Years)
*Options have been exercised outofthe shares issued to the trust
The weighted average share price during the year was Rs 365.48.
(vi) The fair value of the options granted was estimated on the date of
grant using the Black-Scholes/Lattice valuation model with the following
assumptions
Particulars For the For the
year ended year ended
March 31,2010 March 31,2009
Risk free interest rates 6.44% to 4.45% to
7.86% 9.70%
Expected life 48 to 66 48 to 60
months months
Volatility 36.13% to 36.23% to
37.47% 41.39%
Dividend yield 0.31% 0
Weighted average 307.42 to 308.40 to
share price on the 412.13 416.27
date of grant
The volatility of the options is based on the historical volatility of the
share price since the Company's equity shares became publicly traded, which
may be shorter than the term of the options.
(vii) The balance of deferred stock compensation as on March 31, 2010 is Rs
977,748 thousand (March 31, 2009 Rs 824,092 thousand) and total employee
compensation cost recognized for the year then ended is Rs 934,185 thousand
(March 31, 2009 Rs 646,967 thousand).
(viii)The Company has granted stock options to the employees of the
subsidiaries i.e. Bharti Hexacom Limited and Bharti Infratel Limited and
the corresponding compensation cost is borne by the Company.
28. Earnings per share (Basic and Diluted):
The board of directors in its meeting held on April 29, 2009 have approved
sub-division (share split) of existing equity shares of Rs 10 each into 2
equity shares of Rs 5 each, which was duly approved by postal ballot by the
shareholders of theCompany on July 11, 2009. Accordingly, EPS fortheyear
ended March 31, 2010 and previous year has been restated, as applicable,
below:
Particulars As at As at
March 31,2010 March 31,2009
(Post Split) (Post Split)
Basic and Diluted Earnings per Share
Nominal value of equity shares (Rs) 5 5
Profit attributable to equity 94,261,547 77,438,385
shareholders(Rs'000) (A)
Weighted average number of equity 3,796,858,204 3,796,210,078
shares outstanding during the year (B)
Basic earnings per Share (Rs) (A/ B) 24.826 20.399
Dilutive effect on profit (Rs '000)(C)* (3,172) 2,097
Profit attributable to equity shareholders 94,258,375 77,440,482
for computing Diluted EPS (Rs'000)
(D)=(A+C)
Dilutive effect on weighted average 1,071,751 1,130,094
number of equity shares outstanding
during the year (E)*
Weighted Average number of Equity shares 3,797,929,955 3,797,340,172
and Equity Equivalent shares for computing
Diluted EPS (F)=(B+E)
Diluted earnings per share (Rs) (D/F) 24.818 20.393
*Diluted effect on weighted average number of equity shares and profit
attributable is on account of Foreign Currency Convertible Bonds and
Employee Stock Option Plan (ESOP)
29. Forward Contracts & Derivative Instruments:
The Company's activities expose it to a variety of financial risks,
including the effects of changes in foreign currency exchange rates and
interest rates. The Company uses derivative financial instruments such as
foreign exchange contracts, Option contracts and interest rate swaps to
manage its exposures to interest rate and foreign exchange fluctuations
The following table details the status of the Company's exposure as on
March 31, 2010:
Sr Particulars Notional Value
No (March 31, 2010) (March 31, 2009)
A. For Loan related exposures
a) Forwards 25,777,373 58,581,419
b) Options 15,985,406 16,087,384
c) Interest Rate Swaps 10,965,195 12,572,404
Total 52,727,974 87,241,206
B. For Trade related exposures
a) Forwards 1,467,050 5,347,203
b) Options 1,986,160 534,975
Total 3,453,210 5,882,178
C. Unhedged foreign currency borrowing 22,127,125 34,834,314
D. Unhedged foreign currency payables 17,663,020 28,273,925
E. Unhedged foreign currency receivables 742,125 -
*All derivatives are taken for hedging purposes only and trade related
exposure includes hedges taken for forecasted receivables
The Company has accounted for derivatives, which are covered under the
Announcement issued by the ICAI, on marked-to-market basis and has
recognized reversal of losses of Rs 42,467 thousand for theyear ended March
31, 2010 [recorded reversals of losses for earlier period of Rs 1,835,399
thousand for the year ended March 31, 2009 (including reversal of losses
recognised in earlier periods Rs 1,230,080 thousand towards embedded
derivatives)]
30.The Board of directors in its meeting held on April 29, 2009 had
approved sub-division (share split) of existing equity shares of Rs 10 each
into 2 equity shares of Rs 5 each, which was duly approved by postal ballot
by the shareholders of the Company on July 11, 2009
31.a) The Board of directors in its meeting held on April 29, 2009 had
proposed dividend of Rs 2 per share for the financial year 2008-09, which
was duly approved by the shareholders of the Company in the annual general
meeting held on August 21, 2009. Accordingly, dividend and tax thereon on
shares issued from April 1, 2009 to August 21, 2009 (record date for
payment of dividend), has been accounted for
b) Net Dividend remitted in foreign exchange
Particulars For the year For the year
ended March ended March
31, 2010 31, 2009
Number of non-resident shareholders 8 NA
Number of equity shares held on which 424,254 NA
dividend was due (in '000)
Amount remitted (Rs in '000) 848,508 NA
Amount remitted (USD in '000) 17,423 NA
Dividend of Rs 2 per share (Face value per share Rs 10 ) was declared for
the year 2008-09
32. The Company has undertaken to provide financial support, to its
subsidiaries Bharti Airtel Services Limited, Bharti Airtel (USA) Limited,
Bharti Airtel (Canada) Limited, Bharti Airtel Hongkong Limited, Bharti
Infratel Ventures Limited, Bharti Telemedia Limited, Bharti Airtel
(Singapore) Private Limited, Bharti Airtel Holdings (Singapore) Pte
Limited, Bharti Airtel Lanka (Pvt) Limited and Bharti Airtel (UK) Limited
33. The Board of directors recommended a final dividend of Re 1 per equity
share of Rs 5 each (20% of face value) for financial year 2009-10. The
payment is subjectto the approval of the shareholders in the ensuing Annual
General Meeting of theCompany
34. Previous year figures have been regrouped / reclassified where
necessary to conform to current year's classification
On behalf of the Board
Sunil Bharti Mittal Manoj Kohli
Chairman and Managing Director CEO (International) &
Joint Managing Director
Sanjay Kapoor Vijaya Sampath Srikanth Balachander
CEO (India & Group General Counsel & Chief Financial Officer
South Asia) Company Secretary
Place: New Delhi
Date : April 28, 2010
|