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Bharti Airtel Ltd(Industry :   Telecommunications - Service Provider)
 
BSE Code:532454NSE Symbol: BHARTIARTLP/E  (TTM): 17.16
ISIN Demat:INE397D01024Div Yield %:0.39EPS   (TTM) :20.16
Book Value (Rs):211.2490619Market Cap (RsCr):138270.07Face Value (Rs) :5
  Change Company 

1. Corporate Information

Bharti Airtel Limited (‘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. The Company’s shares are publicly traded on the National Stock Exchange (‘NSE’) and the Bombay Stock Exchange (‘BSE’), India. The Registered office of the Company is situated at Bharti Crescent, 1, Nelson Mandela Road, Vasant Kunj, Phase – II, New Delhi – 110070.

The Company is a leading telecommunication service provider in India providing telecommunication systems and services.

2. Basis of Preparation

The financial statements of the Company have been prepared in accordance with the generally accepted accounting principles in India (Indian GAAP). The financial statements have been prepared to comply in all material respects with the accounting standards notified under Section 133 of the Companies Act, 2013 read with rule 7 of the Companies (Accounts) Rules, 2014 issued by the Ministry of Corporate Affairs. The financial statements have been prepared under the historical cost convention and on an accrual basis except in case of assets for which revaluation is carried out and certain derivative financial instruments (refer note 3.13). The accounting policies have been consistently applied by the Company and are consistent with those used in the previous year.

These financial statements are presented in Indian Rupees (‘Rupees’ or ‘Rs.’) and all amount are rounded to the nearest million (‘Mn’), except as stated otherwise.

3. Summary of Significant Accounting Policies

3.1. Use of Estimates

The preparation of the financial statements in conformity with Indian GAAP requires management to make judgement, 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. Although these estimates are based upon management’s best knowledge of current events and actions, uncertainty about these assumptions and estimates could result in the outcomes requiring a material adjustment to the carrying amounts of assets and liabilities in future periods.

3.2. Tangible Assets

Tangible Assets are stated at cost, net of accumulated depreciation and accumulated impairment losses, if any. Such cost includes the cost of replacing part of the plant and equipment and borrowing costs for long term construction projects, if the recognition criteria are met. When significant parts of tangible assets are required to be replaced in intervals, the Company recognises such parts as separate component of assets with specific useful lives and provides depreciation over their useful life. Subsequent costs are included in the asset’s carrying amount or recognised as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the Company and the cost of the item can be measured reliably. The carrying amount of the replaced part is derecognised. All other repair and maintenance costs are recognised in the statement of profit and loss as incurred. Capital work in progress is valued at cost.

Where assets are installed on the premises of customers (commonly called Customer premise equipment –"CPE"), such assets continue to be treated as tangible assets as the associated risks and rewards remain with the Company and management is confident of exercising control over them.

Gains and losses arising from retirement or disposal of the tangible assets are determined as the difference between the net disposal proceeds and the carrying amount of the asset and are recognised in statement of profit and loss on the date of retirement or disposal. Depreciation on tangible assets is provided on the straight line method based on useful lives of respective assets as estimated by the management. The assets’ residual values and useful lives are reviewed at each financial year end or whenever there are indicators for review, and adjusted prospectively. Freehold Land is not depreciated.

Estimated useful lives of the assets are as follows:

Years
Leasehold Land Period of lease
Building 20
Building on Leased Land 20
Leasehold Improvements Period of lease or 10 years, whichever is less
Plant & Equipment 3 – 20
Computer 3
Office Equipment 2-5
Furniture and Fixtures 5
Vehicles 5

The management basis its past experience and technical assessment has estimated the useful life, which is at variance with the life prescribed in Part C of Schedule II of the Companies Act, 2013 and has accordingly, depreciated the assets over such useful life.

3.3. Intangible Assets

Identifiable intangible assets are recognised when the Company controls the asset, it is probable that future economic benefits attributed to the asset will flow to the Company and the cost of the asset can be reliably measured. Intangible assets under development is valued at cost.

At initial recognition, the separately acquired intangible assets are recognised at cost. Following initial recognition, the intangible assets are carried at cost less any accumulated amortisation and accumulated impairment losses, if any.

Amortisation is recognised in the statement of profit and loss on a straight-line basis over the estimated useful lives of intangible assets from the date they are available for use. The amortisation period and the amortisation method for an intangible asset are reviewed at least at each financial year end. Changes in the expected useful life is accounted for as changes in accounting estimates and accounted prospectively over the remaining useful life. Changes in the expected pattern of consumption of future economic benefits embodied in the asset is accounted for as change in the amortisation method and accounted retrospectively, thus, depreciation is recalculated in accordance with the new method from the date of the asset coming into use and any excess or deficit on such re-computation is accounted in the statement of profit and loss when such change is effected.

Gains and losses arising from retirement or disposal of the intangible assets are determined as the difference between the net disposal proceeds and the carrying amount of the asset and are recognised in statement of profit and loss on the date of retirement or disposal.

(i) Software

Software is capitalized at the amounts paid to acquire the respective license for use and is amortised over the period of license, generally not exceeding three years. Software up to Rupees five hundred thousand, which has an independent use, is amortised over a period of one year from the date of place in service.

(ii) Licenses and spectrum

Acquired licenses and spectrum are initially recognised at cost. Subsequently, they are measured at cost less accumulated amortisation and accumulated impairment loss, if any. Amortisation is recognised in the statement of profit and loss on a straight-line basis over the unexpired period of the license/spectrum commencing from the date when the related network is available for intended use in the respective jurisdiction.

(iii)Bandwidth

Payment for bandwidth capacities are classified as pre-payments in service arrangements or under certain conditions as an acquisition of a right. In the latter case it is accounted for as intangible assets and the cost is amortised over the period of the agreements, which may exceed a period of ten years depending on the tenor of the agreement.

(iv) Other acquired intangible assets

Payment for the rights acquired for unlimited license access to various applications are recognised as other acquired intangibles. They are capitalised at the amounts paid and amortised on a straight-line basis over the period of the agreements.

3.4. Leases

(i) Where the Company is the lessee

Leases where the lessor effectively retains substantially all the risks and rewards incidental to ownership of the leased item, are classified as operating leases. Lease rentals with respect to assets taken on ‘Operating Lease’ are charged to the statement of profit and loss on a straight-line basis over the lease term.

Leases which effectively transfer to the Company substantially all the risks and rewards incidental to ownership of the leased item are classified as finance lease. These are capitalised at the commencement of the lease at the fair value of the leased asset or, if lower, at the present value of the minimum lease payments. Lease payments are apportioned between finance charges and reduction of the lease liability so as to achieve a constant rate of interest on the remaining balance of the liability. Finance charges are recognised in the statement of profit or loss. Lease management fees, legal charges and other initial direct costs of lease are capitalized.

Leased assets are depreciated on straight-line basis over the useful life of the asset. However,if there is no reasonable certainty that the company will obtain ownership by the end of the lease term, the asset is depreciated on straight line basis over the shorter of the estimated useful life of the asset or the lease term.

(ii) Where the Company is the lessor

Leases in which the Company does not transfer substantially all the risks and rewards incidental to ownership of the asset are classified as operating leases. Lease income in respect of ‘Operating Lease’ is recognised in the statement of profit and loss on a straight-line basis over the lease term. Assets subject to operating leases are included in fixed assets. Initial direct costs incurred in negotiating an operating lease are added to the carrying amount of the leased asset and recognised over the lease term on the same basis as rental income.

Leases in which the Company transfer substantially all the risks and rewards incidental to ownership of the asset are classified as finance leases.

Assets leased to others under finance lease are recognised as receivables at an amount equal to the net investment in the leased assets. Finance Income is recognised based on a pattern reflecting a constant periodic rate of return on the net investment of the lessor outstanding in respect of the finance lease.

Initial direct costs are expensed in the statement of profit and loss at the inception of the lease.

(iii) Indefasible right to use (‘IRU’)

As a part of operations, the Company enters into agreement for leasing assets under "Indefasible right to use" with third parties. Under the arrangement the assets are given on lease over the substantial part of the asset life. However, the title to the assets and significant risk associated with the operation and maintenance of these assets remain with the lessor. Hence, such arrangements are recognised as operating lease.

The contracted price is received in advance and is recognised as revenue during the tenure of the agreement. Unearned IRU revenue net of the amount recognisable within one year is disclosed as deferred revenue in other long term liabilities and the amount recognisable within one year is disclosed as deferred revenue in other current liabilities.

3.5. Borrowing Cost

Borrowing costs consist of interest and other costs that the Company incurs in connection with the borrowing of funds. Borrowing costs directly attributable to the acquisition, construction or production of an asset that necessarily takes a substantial period of time to get ready for its intended use or sale are capitalised as part of the cost of the respective assets. All other borrowing costs are expensed in the period in which they occur.

3.6. Impairment of Assets

The carrying amounts of assets are reviewed for impairment, whenever events or changes in circumstances indicate that the carrying amount may not be recoverable or when annual impairment testing for an asset is required. An impairment loss is recognised whenever the carrying amount of an asset or its cash-generating unit exceeds its recoverable amount. The recoverable amount of an asset is the greater of its fair value less costs to sell and value in use. To calculate value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market rates and the risks specific to the asset. For an asset that does not generate largely independent cash inflows, the recoverable amount is determined for the cash-generating unit to which the asset belongs. Fair value less costs to sell is the best estimate of the amount obtainable from the sale of an asset in an arm’s length transaction between knowledgeable, willing parties, less the costs of disposal. Impairment losses, if any, are recognised in the statement of profit and loss as a component of depreciation and amortisation expense. After impairment, depreciation is provided on the revised carrying amount of the asset over its remaining useful life. An impairment loss is only reversed to the extent that the asset’s carrying amount does not exceed the carrying amount that would have been determined if no impairment loss had previously been recognised.

3.7. Asset Retirement Obligations (ARO)

Asset retirement obligations (ARO) are provided for those operating lease arrangements where the Company has a binding obligation at the end of the lease period to restore the leased premises in a condition similar to inception of lease. The estimated future costs of decommissioning are reviewed annually and adjusted as appropriate. Changes in the estimated future costs are added to or deducted from the cost of the asset and depreciated prospectively over the remaining useful life.

3.8. Investment

Investment, which are readily realisable and intended to be held for not more than one year from the date on which such investments are made, are classified as current investments. All other investments are classified as non-current investments.

On initial recognition, all investments are measured at cost. The cost comprises purchase price and directly attributable acquisition charges such as brokerage, fees and duties. Current Investments are carried in the financial statements at lower of cost and fair value determined on an individual investment basis. Non-current investments are valued at cost. Provision is made for diminution in value to recognise a decline, if any, other than that of temporary nature.

On disposal of investment, the difference between its carrying amount and net disposal proceeds is charged or credited to the statement of profit and loss.

3.9. Cash and Cash Equivalents

Cash and cash equivalents for the purpose of cash flow statement comprise cash at bank, cash on hand and cheques on hand, call deposits, and other short term highly liquid investments with an original maturity of three months or less that are readily convertible to a known amount of cash and are subject to an insignificant risk of changes in value.

3.10.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.

3.11. Revenue Recognition and Receivables

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Revenue is measured at the consideration received/receivable net off discounts, process waivers, and value added tax (‘VAT’), service tax or duty. The Company assesses its revenue arrangements against specific criteria, i.e., whether it has exposure to the significant risks and rewards associated with the sale of goods or the rendering of services, in order to determine if it is acting as a principal or as an agent.

(i) Service Revenues

Service revenues include amounts invoiced for usage charges, fixed monthly subscription charges and very small aperture terminal (‘VSAT’) service usage charges, bandwidth services, roaming charges, activation fees, processing fees and fees for value added services (‘VAS’). Service revenues also include revenues associated with access and interconnection for usage of the telephone network of other operators for local, domestic long distance and international calls and data messaging services.

Service revenues are recognised as the services are rendered and are stated net of discounts, process waivers and taxes. Revenues from pre-paid customers are recognised based on actual usage. Processing fees on recharge coupons is recognised over the estimated customer relationship period or coupon validity period, whichever is lower. Activation revenue and related activation costs, not exceeding the activation revenue, are deferred and amortised over the estimated customer relationship period. The excess of activation costs over activation revenue, if any, are expensed as incurred. Billings in excess of revenue recognised is treated as unearned and reported as deferred revenue in the balance sheet.

Service revenues from the internet and VSAT business comprise revenues from registration, installation and provision of internet and VSAT services. Registration fee and installation charges are deferred and amortised over the period of agreement with customer. Service revenue is recognised from the date of satisfactory installation of equipment and software at the customer site and provisioning of internet and VSAT services. Revenues from national and international long distance operations comprise revenue from provision of voice services which are recognised on provision of services while revenue from provision of bandwidth services (including installation) is recognised over the period of arrangement.

(ii) Equipment Sales

Equipment sales consist primarily of revenues from sale of telecommunication equipment and related accessories. Revenue from equipment sales transactions are recognised when the significant risks and rewards of ownership are transferred to the buyer and when no significant uncertainty exists regarding realisation of consideration. Installation charges are recognised as revenue on satisfactory completion of installation.

(iii) Investing and Other Activities

Income on account of interest and other activities are recognised on an accrual basis.

(iv) Dividend Income

Dividend income is recognised when the Company’s right to receive the payment is established.

(v) Provision for Doubtful Debts

The Company provides for amounts outstanding for more than 90 days from the date of billing, in case of active subscribers, roaming receivables, receivables for data services and for entire outstanding from deactivated customers net off security deposits or in specific cases where the 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 for voice 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 the management is of the view that the amounts from these operators are not recoverable.

(vi) Unbilled Revenue

Unbilled revenue represent revenue recognised from last bill cycle date to the end of the reporting period. These are billed in subsequent periods based on the terms of the billing plans / contractual arrangements.

3.12. License Fees – Revenue Share

The revenue-share fee on license and spectrum is computed as per the licensing agreement at the prescribed rate and is expensed as incurred.

3.13. Foreign Currency translation, accounting for forward contracts and 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 translated using exchange rates prevailing at the reporting date. Non-monetary items which are carried in terms of historical cost denominated in a foreign currency are translated 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 translated using the exchange rates at the date 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.

Forward Exchange Contracts covered under AS 11, ‘The effects of Changes in Foreign Exchange Rates’

Exchange differences on forward exchange contracts and plain vanilla currency options for establishing the amount of reporting currency and not intended for trading & speculation purposes, are recognised in the statement of profit and loss in the year in the 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 statement of profit and loss 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 and 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 foreign currency loan. In accordance with the ICAI announcement, at every year end, all outstanding derivative contracts are fair valued on a mark-to-market basis and any loss on valuation is recognised in the statement of profit and loss, on each contract basis. Any gain on mark-to-market valuation on respective contracts is not recognised by the Company, keeping in view the principle of prudence as enunciated in AS 1, ‘Disclosure of Accounting Policies’. Any reduction in fair values and any reversals of such reductions are included in statement of profit and loss 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 year end, all outstanding embedded derivative instruments are fair valued on mark-to-market basis and any loss on valuation is recognised in the statement of profit and loss for the year. Any reduction in mark to market valuations and reversals of such reductions are included in statement of profit and loss of the 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 average exchange rates prevailing during the year; and all resulting exchange differences are accumulated in a foreign currency translation reserve until the disposal of the net investment.

3.14.Employee Benefits

The Company’s post employment benefits include defined benefit plan and defined contribution plans. The Company also provides other benefits in the form of deferred compensation and compensated absences. Under the defined benefit retirement plan, the Company provides retirement obligation in the form of Gratuity. Under the plan, a lump sum payment is made to eligible employees at retirement or termination of employment based on respective employee salary and years of experience with the Company.

For defined benefit retirement plans, the difference between the fair value of the plan assets and the present value of the plan liabilities is recognised as an asset or liability in the balance sheet. Scheme liabilities are calculated using the projected unit credit method and applying the principal actuarial assumptions as at the date of balance sheet. Plan assets are assets that are held by a long-term employee benefit fund or qualifying insurance policies.

All expenses in respect of defined benefit plans, including actuarial gains and losses, are recognised in the statement of profit and loss as incurred.

The Company’s contributions to defined contribution plans are recognised in statement of profit and loss when the employee renders the related services. The Company has no further obligations under these plans beyond its periodic contributions.

The distinction between short-term and long-term employee benefits is based on expected timing of settlement rather than the employee’s entitlement benefits.

The employees of the Company are entitled to compensated absences based on the unavailed leave balance as well as other long term benefits. The Company records liability based on actuarial valuation computed under projected unit credit method. The Company presents the liability for compensated absences as a current liability in the balance sheet as it does not have an unconditional right to defer its settlement for 12 months after the reporting date.

3.15. Share Based Compensation

The Company issues equity-settled and cash-settled share-based options to certain employees. These are measured at fair value on the date of grant.

The fair value determined on the grant date of the equity settled share based options is expensed over the vesting period, based on the Company’s estimate of the shares that will eventually vest.

The fair value determined on the grant date of the cash settled share based options is expensed over the vesting period, based on the Company’s estimates of the shares that will eventually vest. At the end of the each reporting period, until the liability is settled, and at the date of settlement, liability is re-measured at fair value, with any changes in fair value pertaining to the vesting period till the reporting date is recognised immediately in profit or loss. Fair value is measured using Lattice-based option valuation model, Black-Scholes and Monte Carlo Simulation framework and is recognised as an expense, together with a corresponding increase in equity/ liability, as appropriate, over the period in which the options vest using the graded vesting method. The expected life used in the model is adjusted, based on management’s best estimate, for the effects of non-transferability, exercise restrictions and behavioral considerations. The expected volatility and forfeiture assumptions are based on historical information. Where the terms of a share-based compensation are modified,theminimumexpenserecognisedistheexpense as if the terms had not been modified, if the original terms of the award are met. An additional expense is recognised for any modification that increases the total fair value of the share-based payment transaction, or is otherwise beneficial to the employee as measured at the date of modification.

Where an equity-settled award is cancelled, it is treated as if it is vested on the date of cancellation, and any expense not yet recognised for the award is recognised immediately. This includes any award where non-vesting conditions within the control of either the entity or the employee are not met. However, if a new award is substituted for the cancelled award, and designated as a replacement award on the date that it is granted, the cancelled and new awards are treated as if they were a modification of the original award, as described in the previous paragraph. All cancellations of equity-settled transaction awards are treated equally.

3.16.Taxes

(i) Current Income tax

Current Income tax is measured at the amount expected to be paid to the tax authorities in accordance with Indian Income Tax Act, 1961. The tax rates and tax laws used to compute the amount are those that are enacted or substantively enacted, by the reporting date.

(ii) Deferred Tax

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 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. In the situations where the Company is entitled to a tax holiday under the Income-tax Act, 1961, no deferred tax (asset or liability) is recognised in respect of timing differences which reverse during the tax holiday period. Deferred tax in respect of timing differences which reverse after the tax holiday period is recognised in the year in which the timing differences originate. For recognition of deferred taxes, the timing differences which originate first are considered to reverse first.

The carrying amount of deferred tax assets is reviewed at each balance sheet date and reduced to the extent that it is no longer reasonably certain or virtual certain, as the case may be, that sufficient taxable profit will be available to allow all or part of the deferred tax asset to be realised. 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 or virtually certain, as the case may be, that future taxable income will be available against which such deferred tax assets can be realised.

(iii) MAT Credit

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, i.e., the period for which MAT credit is allowed to be carried forward. In the year in which the MAT credit becomes eligible to be recognised as an asset in accordance with the recommendations contained in Guidance Note on Accounting for credit available in respect of

Minimum Alternative Tax under the Income Tax Act, 1961, the said asset is created by way of a credit to the statement of 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.

3.17. Segment Reporting

(i) Primary Segment

The Company operates in three primary business segments viz. Mobile Services, Telemedia Services and Airtel Business.

(ii) Secondary Segment

The Company has operations serving customers within India as well as in other countries located outside India. The operations in India constitute the major part, which is the only reportable segment, the remaining portion being attributable to others.

3.18. Earnings Per Share

The earnings considered in ascertaining the Company’s Earnings per Share (‘EPS’) comprise the net profit after tax attributable to equity shareholders. The number of shares used in computing basic EPS is the weighted average number of shares outstanding during the year. 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).The diluted EPS is calculated on the same basis as basic EPS, after adjusting for the effects of potential dilutive equity shares.

3.19. Provisions and Contingencies

Provisions are recognised when the Company has a present obligation as a result of past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation. 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 estimates are reviewed at each balance sheet date and adjusted to reflect the current best estimates. A contingent liability is a possible obligation that arises from past events whose existence will be confirmed by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the Company or a present obligation that is not recognised because it is not probable that an outflow of resources embodying economic benefits will be required to settle the obligation or the amount of the obligation cannot be measured with sufficient reliability. Information on contingent liabilities is disclosed in the notes to the financial statements, unless the possibility of an outflow of resources embodying economic benefits is remote.

3.20. Multiple Element Contracts with Vendors

The Company enters into multiple element contracts with vendors for supply of goods and rendering of services. The consideration paid is/may be determined independent of the value of supplies received and services availed. Accordingly, the supplies and services are accounted for based on their relative fair values to the overall consideration. The supplies with finite life under such contracts are accounted as Tangible assets or as Intangible assets in view of the substance of these contracts and existence of economic ownership in these assets.

3.21. Expenditure incurred on Corporate Social Responsibility ("CSR")

In accordance with the guidance issued by ICAI, ‘FAQ on the provisions of CSR under Section 135 of the Companies Act 2013 and Rules thereon’, the amount of expenditure incurred on CSR is accounted as appropriation to the statement of profit and loss unless otherwise it is incurred by the Company as part of the normal business activity which also qualifies for CSR activity, in which case, it will continue to be charged to statement of profit and loss in the normal course.

4. 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.

Mobile Services – These services cover voice and data telecom services provided through wireless technology in India (2G/3G/4G). This includes the captive national long distance networks which primarily provide connectivity to the mobile services business in India. This also includes intra city fibre networks.

Telemedia Services – These services cover voice and data communications based on fixed network and broadband technology.

Airtel Business – These services cover end-to-end telecom solutions being provided to large Indian and global corporations by serving as a single point of contact for all telecommunication needs across data and voice (domestic as well as international long distance), network integration and managed services.

Unallocated – Unallocated includes other income, profits/ (losses), assets and liabilities of the Company which are not allocated to the business segments and is primarily related to the corporate headquarter of the Company. These also include current taxes (net of provisions of tax), deferred taxes (net), MAT credit and borrowings not allocated to the business segments.

Summary of the Segmental Information for the year ended and as of March 31, 2015

(Rs. Millions)

Particulars Mobile Services Telemedia Services Airtel Business Unallocated Eliminations Total
Revenue
Revenue from operations external 464,426 40,195 50,343 - - 554,964
Inter segment revenue 18,508 849 8,955 - (28,312) -
Total Revenue 482,934 41,044 59,298 - (28,312) 554,964
Results
Segment Result- Profit / (Loss)* 112,562 8,506 3,786 (4,004) - 120,850
Finance costs (Income)* (35,703)
Profit / (Loss) before tax 156,553
Provision for Tax
- Current Tax (including MAT Credit) 23,302
- Deferred Tax (Credit)/ Charge 1,246
Net Profit / (Loss) after tax 132,005
Other Information
Capital Expenditure 228,213 7,598 6,356 452 (6,772) 235,847
Depreciation and amortisation 66,079 9,040 5,483 11 (5,016) 75,597
As of March 31, 2015
Segment Assets 632,821 29,103 32,356 531,308 - 1,225,588
Inter Segment Assets 435,337 76,880 90,661 - (602,878) -
MAT Credit 38,649 38,649
Total Assets 1,068,158 105,983 123,017 569,957 (602,878) 1,264,237
Segment Liabilities** 337,154 8,774 29,484 94,877 - 470,289
Inter Segment Liabilities 48,602 42,556 41,464 470,256 (602,878) -
Provision for Tax (Net of Advance Tax) 498 498
Deferred Tax Liability (net) 10,721 10,721
Total Liabilities 385,756 51,330 70,948 576,352 (602,878) 481,508

*Segment result excludes finance income of Rs.49,794 Mn, which is netted off from finance costs for the purpose of segment reporting

**Unallocated liabilities includes amount borrowed for the acquisition of 3G and BWA Licenses (including spectrum) of Rs.8,153 Mn

Summary of the Segmental Information for the year ended and as of March 31, 2014

(Rs. Millions)

Particulars Mobile Services Telemedia Services Airtel Business Unallocated Eliminations Total
Revenue
Revenue from operations external 415,484 36,243 47,458 - - 499,185
Inter segment revenue 19,530 1,132 11,109 - (31,771) -
Total revenues 435,014 37,375 58,567 - (31,771) 499,185
Results
Segment Result- Profit / (Loss)* 81,667 5,750 6,519 (1,844) - 92,092
Finance costs (Income)* 6,247
Exceptional items # 2,071
Profit / (Loss) before tax 83,774
Provision for Tax
- Current Tax (including MAT Credit) 19,800
- Deferred Tax (Credit)/ Charge (2,028)
Net Profit / (Loss) after tax 66,002
Other Information
Capital Expenditure 96,945 8,747 5,639 160 (9,887) 101,604
Depreciation and amortisation 62,527 8,996 5,320 - (4,530) 72,313
As of March 31, 2014
Segment Assets 462,946 29,753 30,922 424,928 - 948,549
Inter Segment Assets 322,048 38,392 63,058 28 (423,526) -
Advance tax (Net of provision for tax) 2,855 2,855
MAT Credit 30,637 30,637
Total Assets 784,994 68,145 93,980 458,448 (423,526) 982,041
Segment Liabilities** 154,462 8,384 25,227 117,213 - 305,286
Inter Segment Liabilities 46,424 12,988 18,236 345,878 (423,526) -
Deferred Tax Liability (net) 9,475 9,475
Total Liabilities 200,886 21,372 43,463 472,566 (423,526) 314,761

*Segment result excludes finance income of Rs. 7,117 Mn, which is netted off from finance costs for the purpose of segment reporting

**Unallocated liabilities includes amount borrowed for the acquisition of 3G & BWA Licenses (including Spectrum) of Rs.36,400 Mn

# Exceptional items shown separately relates to reassessment of residual useful lives of certain assets [Refer Note 36 for details] Notes:

1. The Company prepares its segment information in conformity with the accounting policies adopted for preparing and presenting the financial statements of the Company as a whole.

2. Segment results represent profit/(loss) before finance costs (net of finance income), exceptional items and tax.

3. Capital expenditure represents gross additions, capital work-in-progress and capital advance given for acquiring tangible and intangible assets during the year.

4. Segment assets include tangible, intangible, current and other non current assets and excludes non current investments, MAT credit, advance tax (net).

5. Segment liabilities include current, non current liabilities and excludes provision for tax (net), deferred tax liabilities (net).

6. Inter segment assets / liabilities represent the inter segment account balances.

7. Inter segment revenue is accounted for on terms established by the management on arm’s length basis. These transactions have been eliminated at the Company level.

Information about Geographical Segment – Secondary

The Company has operations serving customers within India as well as located in other countries. The information relating to the geographical segments in respect of customers being served and assets within India, which is the only reportable segment, the remaining portion being attributable to others, is presented below :

(Rs. Millions)
Particulars For the year ended March 31, 2015 For the year ended March 31, 2014
Segment Revenue from external customers based on geographical location of customers
Within India 518,924 464,256
Others 36,040 34,929
554,964 499,185
Carrying amount of Segment Assets by geographical location of assets
Within India 978,816 752,938
Others 285,421 229,103
1,264,237 982,041
Cost incurred during the year to acquire Segment Assets by geographical location of assets
Within India 234,197 100,832
Others 1,650 772
235,847 101,604

Notes:

1. Segment assets include tangible, intangible, current and other non-current assets.

2. Cost incurred during the year to acquire segment assets represents gross additions, capital work-in- progress and capital advance given for acquiring tangible and intangible assets during the year.

5. Share Capital

(Rs. Millions)
Particulars As of March 31, 2015 As of March 31, 2014
Authorised shares
5,000,000,000 (March 31, 2014 - 5,000,000,000) equity shares of Rs. 5 each 25,000 25,000
Issued, Subscribed and fully paid-up shares
3,997,400,102 (March 31, 2014- 3,997,400,102) equity shares of Rs. 5 each 19,987 19,987
19,987 19,987

Note: 21,474,527 Equity shares of Rs. 10 each were alloted as fully paid-up shares upon the conversion of Foreign Currency Convertible Bonds (FCCBs) during the financial years from 2007-08 to 2009-10 (42,949,054 equity shares post share split of one equity share of Rs. 10 each into 2 equity shares of Rs. 5 each)

a. Reconciliation of the equity shares outstanding at the beginning and at the end of the year

Particulars For the year ended March 31, 2015 For the year ended March 31, 2014
No. Rs. Mn No. Rs. Mn
At the beginning of the year 3,997,400,102 19,987 3,797,530,096 18,988
Issued during the year (refer note 37) - - 199,870,006 999
Outstanding at the end of the year 3,997,400,102 19,987 3,997,400,102 19,987

b. Terms/rights attached to equity shares

The Company has only one class of equity shares having par value of Rs. 5 per share. Each holder of equity shares is entitled to one vote per share. The Company declares and pays dividend in Indian rupees. The dividend proposed by the Board of Directors is subject to approval of the shareholders in the ensuing Annual General Meeting.

During the year ended March 31, 2015, the Board of Directors has proposed dividend of Rs. 2.22 per share (March 31, 2014 Rs. 1.80). The Company, based on an independent legal opinion, had determined that provisions of the Companies Act, 2013 applies to the proposed dividend for the year ended March 31, 2014, as the same was declared and paid after April 1, 2014. Since, Companies Act, 2013 does not mandate transfer of certain percentage of profits to general reserve, the Company has not transferred any amount to general reserve in respect of proposed dividend for the year ended March 31, 2014 and March 31, 2015.

c. Details of shareholders (as per the register of shareholders) holding more than 5% shares in the Company

Particulars As of March 31, 2015 As of March 31, 2014
No. % holding No. % holding
Equity shares of Rs. 5 each fully paid up
Bharti Telecom Limited* 1,747,545,460 43.72% 1,745,595,460 43.67%
Pastel Limited 591,319,300 14.79% 591,319,300 14.79%
Indian Continent Investment Limited 265,860,986 6.65% 265,860,986 6.65%
Life Insurance Corporation of India - - 207,987,846 5.20%
Three Pillar Pte Limited 199,870,006 5.00% 199,870,006 5.00%

*Holding as at March 31, 2014 does not include 1,950,000 shares credited to the demat account post March 31, 2014.

6. Reserves and Surplus

(Rs. Millions)
Particulars As of March 31, 2015 As of March 31, 2014
Capital Reserve 51 51
Securities Premium Reserve
Opening balance 107,936 40,896
Additions during the year 31 67,040
Closing balance 107,967 107,936
Revaluation Reserve 21 21
Employee Stock Options Outstanding
Opening balance 2,365 2,841
Add : Addition during the year 80 332
Less : Forfeiture/Exercise 1,689 808
Closing balance 756 2,365

 

(Rs. Millions)
Particulars As of March 31, 2015 As of March 31, 2014
Reserve for Business Restructuring 24,912 24,912
General Reserve
Opening balance 27,043 26,973
Add : Adjustment on account of forfeiture of employee stock option 1,327 -
Add : Adjustment on account of exercise of stock options (shares transferred to employees from shares purchased through open market) 82 70
Closing balance 28,452 27,043
Surplus in the Statement of Profit and Loss
Opening balance 484,965 426,780
Add : Profit for the year 132,005 66,002
Amount available for appropriation 616,970 492,782
Appropriations :
CSR expenses # (411) -
Dividend paid/ proposed (refer note 52) (15,390) (7,195)
Tax on dividend paid/ proposed* (586) (622)
Net surplus in the statement of profit and loss 600,583 484,965
Total 762,742 647,293

*Tax on dividend proposed is net of credit of Rs. 1,221 Mn (March 31, 2014 - Rs. 601 Mn) on account of dividend distribution tax on dividend from subsidiary companies.

#As per the requirements of Section 135 of the Companies Act, 2013 the Company was required to spend an amount of Rs. 1,400 Mn on Corporate Social Responsibility expenditure for the financial year 2014-15. During the current financial year, the Company has spent an amount of Rs. 411 Mn against Corporate Social Responsibility expenditure.

7. Long-term Borrowings

(Rs. Millions)
Particulars As of March 31, 2015 As of March 31, 2014
Secured
From Banks 18 10
From Others 1 4
Total secured 19 14
Unsecured
Term Loans
From Banks 19,265 54,876
From Others 46,843 35,228
Total 66,108 90,104
Deferred payment liabilities towards spectrum 143,167 1,026
Finance lease obligations 144 -
Total unsecured 209,419 91,130
Less: Current maturities (refer note 13)
From Banks 5,822 12,642
From Others 7,306 5,785
13,128 18,427
Finance lease obligations 43 -
196,267 72,717

a. Secured borrowings represent vehicle loans which are secured by hypothecation of vehicles of the Company.

b. Details relating to maturity profile, interest rate and currency of long term borrowings

(Rs. Millions)
Maturity Profile
Currency of borrowings Rate of Interest (Weighted average) As of March 31, 2015 Within one year between one and two years between two and five years over five years
INR 10.08% 163,483 5,240 18,245 27,751 112,247
USD 1.25% 45,955 7,931 6,874 14,618 16,532
Total 209,438 13,171 25,119 42,369 128,779

 

(Rs. Millions)
Currency of borrowings Maturity Profile
Rate of Interest (Weighted average) As of March 31, 2014 Within one year between one and two years between two and five years over five years
INR 10.30% 59,439 11,656 15,755 23,028 9,000
USD 1.08% 31,705 6,771 5,529 10,493 8,912
Total 7.06% 91,144 18,427 21,284 33,521 17,912

c. The borrowings of Rs. 209,438 Mn outstanding as of March 31,2015, comprising various loans, are repayable in total 15 quarterly installments, 840 half yearly installments and 15 yearly installments (borrowings of Rs. 91,144 Mn outstanding as of March 31, 2014, comprising various loans, are repayable in total 559 half yearly instalments and 5 yearly installments).

8. Taxes i) Deferred tax liabilities (Net)

(Rs. Millions)
Particulars As of March 31, 2015 As of March 31, 2014
Deferred Tax Liabilities
Depreciation claimed as deduction under Income Tax Act but chargeable in the statement of profit and loss in future years 29,839 25,790
Gross Deferred Tax Liabilities 29,839 25,790
Less:
Deferred Tax Assets
Provision for doubtful debts/advances charged in the statement of profit and loss but allowed as deduction under the Income Tax Act in future years (to the extent considered realisable) 7,178 5,900
Lease rent equalization charged in the statement of profit and loss but allowed as deduction under the Income Tax Act in future years on actual payment basis 5,676 4,842
Foreign exchange fluctuation and mark to market losses charged in the statement of profit and loss but allowed as deduction under the Income Tax Act in future years (by way of depreciation and actual realisation) 4,384 3,910
Other expenses claimed as deduction in the statement of profit and loss but allowed as deduction under Income Tax Act in future year on actual payment (Net) 1,880 1,663
Gross Deferred Tax Assets 19,118 16,315
Deferred Tax Liabilities (Net) 10,721 9,475

ii) Tax expense

(a) MAT credit includes income of Rs. 364 Mn (March 31, 2014 – Rs. 180 Mn), current tax includes income of

Rs. Nil (March 31, 2014- income of Rs. 1,384 Mn) and deferred tax includes income of Rs. 82 Mn (March 31, 2014 – expense of Rs. 76 Mn) relating to earlier years.

(b) During the year ended March 31, 2015, the Company had recognised additional tax charge of Rs. 188 Mn (March 31, 2014 Rs. Nil) on account of change in tax rate from 33.99% to 34.61% as proposed in the Finance Bill, 2015.

9. Other Long-term Liabilities

(Rs. Millions)
Particulars As of March 31, 2015 As of March 31, 2014
Security deposit received# 2,722 2,848
Equipment supply payable 452 2,287
Deferred revenue 15,535 13,433
Lease rent equalization 18,378 16,074
Others* 4,949 4,752
42,036 39,394

#Security deposit received 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. Trade receivables are secured to the extent of the amount outstanding against individual subscribers by way of security deposit received from them.

*Others as of March 31, 2015 includes Rs. 4,104 Mn (March 31, 2014 Rs. 4,104 Mn) payable to Qualcomm Asia Pacific Pte. Limited towards purchase of balance equity shares upon satisfaction of certain conditions as per the share purchase agreement for acquisition of Airtel Broadband Services Private Limited (formerly know as Wireless Business Services Private Limited) (refer note 38 (i)).

10. Long-term Provisions

(Rs. Millions)
Particulars As of March 31, 2015 As of March 31, 2014
Provision for employee benefits (refer note 40)
Provision for gratuity 1,137 1,269
Provision for long term service award 86 105
1,223 1,374
Other provisions
Provision for asset retirement obligation 746 721
1,969 2,095

The Company uses various premises on lease to install its equipments. A provision is recognised for the costs to be incurred for 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’, is given below:

(Rs. Millions)
Particulars For the year ended March 31, 2015 For the year ended March 31, 2014
Opening balance 721 440
Addition (net) 25 281
Closing balance 746 721

11. Short-term Borrowings

(Rs. Millions)
Particulars As of March 31, 2015 As of March 31, 2014
(Unsecured unless stated otherwise)
Loans
From banks 6,259 12,510
6,259 12,510

a. Details relating to interest rate and currency of borrowings

(Rs. Millions)

Currency of Borrowings As of March 31, 2015 As of March 31, 2014
Rate of Interest (Weighted average) Amount outstanding Rate of Interest (Weighted average) Amount outstanding
INR - - 9.96% 6,500
USD 0.43% 6,259 0.81% 6,010
Total 0.43% 6,259 5.56% 12,510

b. The borrowings of Rs. 6,259 Mn outstanding as of March 31, 2015, comprising various loans, are repayable in 2 instalments (borrowings of Rs. 12,510 Mn outstanding as of March 31, 2014, comprising various loans, are repayable in 4 bullet instalments).

12. Trade Payables

(Rs. Millions)
Particulars As of March 31, 2015 As of March 31, 2014
Dues to Micro and Small Enterprises * 10 38
Trade payables other than dues to Micro and Small Enterprises ** 71,222 62,625
71,232 62,663

* refer note 47 for details of dues to Micro and Small Enterprises

** amount payable to related parties Rs. 13,912 Mn (March 31, 2014 Rs. 12,961 Mn) (refer note 48)

13. Other Current Liabilities

(Rs. Millions)
Particulars As of March 31, 2015 As of March 31, 2014
Deferred revenue 29,246 22,780
Equipment supply payables 53,664 30,633
Payable to others* 37,149 27,616
Advance received from customers 1,445 1,440
Current maturities of long term debt (refer note 7) 13,128 18,427
Current maturities of finance lease obligations (refer note 7) 43 -
Interest accrued but not due on borrowings 267 315
Other taxes payable* 4,686 4,166
Unpaid dividends 35 33
Other liabilities 1,012 1,044
Total 140,675 106,454

*Payable to others and Other taxes payable include provision of Rs. 27,843 Mn as of March 31, 2015 and Rs. 22,097 Mn as of March 31, 2014 towards sub judice matters.

14. Short-term Provisions

(Rs. Millions)
Particulars As of March 31, 2015 As of March 31, 2014
Provision for employee benefits (refer note 40)
Provision for Gratuity 450 241
Provision for Leave Encashment 720 794
Total 1,170 1,035
Others
Provision for Income Tax (net of advance tax of Rs. 139,277 Mn (March 31, 2014 Rs. Nil Mn) and includes Rs. 583 Mn TDS receivable provided for (March 31, 2014 is Nil Mn))# 498 -
Proposed Dividend (refer note 52) 8,874 7,195
Tax on Dividend 1,807 1,223
Total 11,179 8,418
12,349 9,453

# Reversal of MAT credit utilisation of Rs. 222 Mn (March 31, 2014 utilisation of Rs. Nil) adjusted with Provision for tax.

15. Tangible Assets

(Rs. Millions)
Particulars Leasehold Land Freehold Land Building Plant and Equipment Furniture and Fixtures Vehicles Office Equipment Computer* Leasehold improvements Total
Cost
As of April 1, 2013 414 1,302 5,931 508,384 1,440 276 3,203 26,477 4,227 551,654
Additions - 50 303 38,726 54 11 554 2,247 252 42,197
Disposals / adjustment - (38) (156) (10,594) (81) (34) (735) (727) (65) (12,430)
Reclassification (3) (2) (22) 163 - - - (3) (162) (29)
As of March 31, 2014 411 1,312 6,056 536,679 1,413 253 3,022 27,994 4,252 581,392
Additions - 38 416 73,923 189 53 666 1,062 208 76,555
Disposals / adjustment - - - (5,501) (2) (25) (27) (36) (44) (5,635)
Reclassification - - (5) 17 - - 1 (1) - 12
As of March 31, 2015 411 1,350 6,467 605,118 1,600 281 3,662 29,019 4,416 652,324
Accumulated Depreciation
As of April 1, 2013 28 - 1,691 255,644 1,178 214 2,372 23,696 2,469 287,292
Charge for the year # 7 - 294 57,737 113 21 386 2,048 477 61,083
Disposals / adjustment - - (79) (6,066) (74) (18) (665) (709) (47) (7,658)
Reclassification - - (12) 157 - - (1) 7 (158) (7)
As of March 31, 2014 35 - 1,894 307,472 1,217 217 2,092 25,042 2,741 340,710
Charge for the year # 5 - 326 56,793 116 17 409 1,756 473 59,895
Disposals / adjustment - - - (4,708) (2) (19) (24) (35) (44) (4,832)
Reclassification - - 3 (7) 2 1 (1) 3 (2) (1)
As of March 31, 2015 40 - 2,223 359,550 1,333 216 2,476 26,766 3,168 395,772
Net Carrying Amount
As of April 1, 2013 386 1,302 4,240 252,740 262 62 831 2,781 1,758 264,362
As of March 31, 2014 376 1,312 4,162 229,207 196 36 930 2,952 1,511 240,682
As of March 31, 2015 371 1,350 4,244 245,568 267 65 1,186 2,253 1,248 256,552

*With respect to assets where the Company has economic ownership, refer note 3.20.

#Includes exceptional items of Rs. Nil (March 31, 2014 Rs. 2,071 Mn) with respect to Plant and Equipment (refer note 36) a. Freehold Land and Building includes Rs. 4 Mn (March 31, 2014 Rs. 4 Mn) and Rs. 13 Mn (March 31, 2014 Rs. 13 Mn) respectively, in respect of which registration of title in favour of the Company is pending b. Building includes building on leashold land:

(Rs. Millions)

Gross Block Depreciation Net Block
Particulars As of April 1, 2014 Additions Disposals / adjustment Reclassification As of March 31, 2015 As of April 1, 2014 Charge for the year Disposals / adjustment Reclassification As of March 31, 2015 As of March 31, 2015 As of March 31, 2014
Building on leasehold land 2,676 - - - 2,676 667 146 - - 813 1,863 2,009

 

(Rs. Millions)

Gross Block Depreciation Net Block
Particulars As of April 1, 2013 Additions Disposals / adjustment Reclassification As of March 31, 2014 As of April 1, 2013 Charge for the year Disposals / adjustment Reclassification As of March 31, 2014 As of March 31, 2014 As of March 31, 2013
Building on leasehold land 2,685 16 (25) - 2,676 570 104 (7) - 667 2,009 2,115

c. Reclassification includes reclass of assets between category of assets. Rs. 12 Mn and Rs. (1) Mn gross block and accumulated depreciation respectively, has been reclassified mainly from intangible assets to tangible assets during the year ended March 31, 2015 and Rs. 29 Mn and Rs. 7 Mn gross block and accumulated depreciation respectively, has been reclassified mainly from tangible assets to intangible assets during the year ended March 31, 2014.

d. Capital work in progress includes goods in transit Rs. 6,017 Mn (March 31, 2014 Rs. 1,718 Mn).

e. Refer note 10, 41 and 49 for ARO, jointly owned assets and assets given on operating lease, respectively.

16. i) Intangible Assets

(Rs. Millions)
Particulars Software* Bandwidth Licenses and Spectrum Other acquired intangibles Total
Cost
As of April 1, 2013 10,701 19,759 179,947 - 210,407
Additions 3,024 925 - - 3,949
Disposals / adjustment - - (34) - (34)
Reclassification - 29 - - 29
As of March 31, 2014 13,725 20,713 179,913 - 214,351
Additions 1,239 3,485 128,618 2,165 135,507
Disposals / adjustment ** - - (1,300) - (1,300)
Reclassification - (12) - - (12)
As of March 31, 2015 14,964 24,186 307,231 2,165 348,546
Accumulated Amortisation
As of April 1, 2013 7,159 6,146 29,638 - 42,943
Charge for the year 2,505 1,374 9,422 - 13,301
Disposals / adjustment - - - - -
Reclassification 7 - - - 7
As of March 31, 2014 9,671 7,520 39,060 - 56,251
Charge for the year 2,301 1,506 11,462 433 15,702
Disposals / adjustment ** - - (1,300) - (1,300)
Reclassification - 1 - - 1
As of March 31, 2015 11,972 9,027 49,222 433 70,654
Net Carrying Amount
As of April 1, 2013 3,542 13,613 150,309 - 167,464
As of March 31, 2014 4,054 13,193 140,853 - 158,100
As of March 31, 2015 2,992 15,159 258,009 1,732 277,892

* With respect to assets where the Company has economic ownership, refer note 3.20. ** Gross block and amortisation of licenses have been offset upon being fully amortised.

a. Weighted average remaining amortisation period of license as of March 31, 2015 and March 31, 2014 is 17.37 years and 16.14 years, respectively.

b. Borrowing cost capitalised during the year ended March 31, 2015 was Rs. 1,083 Mn (March 31, 2014 Rs. Nil). The Company capitalises borrowing cost in the Intangible assets under development.

c. Reclassification includes reclass of assets between category of assets. Rs. 12 Mn and Rs. (1) Mn gross block and accumulated depreciation respectively, has been reclassified mainly from intangible assets to tangible assets during the year ended March 31, 2015 and Rs. 29 Mn and Rs. 7 Mn gross block and accumulated depreciation respectively, has been reclassified mainly from tangible assets to intangible assets during the year ended March 31, 2014.

ii) Intangible Assets Under Development

Intangible assets under development includes the amount of spectrum allotted to the Company and related costs (including borrowing costs capitalised under AS 16 – "Borrowing Costs"), if any, for which services are yet to be rolled out.

17. Non-current Investments

(Rs. Millions)
Particulars As of March 31, 2015 As of March 31, 2014
Trade investments (at cost)
Investment in Equity Instruments
Investment in Subsidiaries
1) Bharti Hexacom Limited: 175,000,000 (March 31, 2014 - 175,000,000) Equity shares of Rs. 10 each fully paid up 5,718 5,718
2) Bharti Airtel Services Limited: 100,000 (March 31, 2014 - 100,000) Equity shares of Rs. 10 each fully paid up. 1 1
3) Bharti Airtel (USA) Limited: 300 (March 31, 2014 - 300) Equity shares of USD .0001 each fully paid up. 509 509
4) Bharti Airtel (UK) Limited:123,663 (March 31, 2014 - 123,663) Equity shares of GBP 1 each fully paid up 101 101
5) Bharti Airtel (Hongkong) Limited: 4,959,480 (March 31, 2014 - 4,959,480) Equity shares of HKD 1 each fully paid up 26 26
6) Bharti Airtel (Canada) Limited: 75,100 (March 31, 2014 - 75,100) Equity shares of Canadian Dollar (CAD) 1 each fully paid up. 3 3
7) Network i2i Limited: 52,227,896 (March 31, 2014 - 52,227,896) Equity shares of USD 1 each fully paid up. 7,925 7,925
8) Bharti Infratel Limited: 1,360,000,000 (March 31, 2014 -1,500,000,000) Equity shares of Rs. 10 each fully paid up. (refer note 38 (vi)) 74,511 82,182
9) Bharti Telemedia Limited: 9,690,000 (March 31, 2014 - 9,690,000) Equity shares of Rs. 10 each fully paid up. 115 115
10) Bharti Airtel Lanka (Private) Limited: 26,126,080,053 (March 31, 2014 - 525,596,420) Equity shares of SLR 10 each fully paid up (refer note 38 (ii)) 13,096 2,049
11) Bharti Airtel Holdings (Singapore) Pte Limited: 1 (March 31, 2014 - 1) Equity share of Singapore Dollar (SGD) 1 each fully paid up and 338,642,771 (March 31, 2014 - 338,642,771) Equity shares of (USD) 1 each fully paid up 15,475 15,475
12) Bharti Airtel International (Mauritius) Ltd: 1,699,970,000 (March 31, 2014 - 1,044,970,000) shares of USD 1 each fully paid up (refer note 38 (iv)) 97,570 57,639
13) Airtel M Commerce Services Limited: 290,000,000 (March 31, 2014 - 255,000,000) Equity shares of Rs. 10 each fully paid up. (refer note 38 (iii)) 2,900 2,550
14) Bharti International (Singapore) Pte. Ltd: 593,739,000 (March 31, 2014 - 593,739,000) Equity shares of USD 1 each fully paid up. 33,035 33,035
15) Bharti Airtel International (Netherlands) B.V.: 908,443,919 (March 31, 2014 - 908,443,919) Equity shares of EURO 1 each fully paid up. 67,354 67,354
16) Telesonic Networks Limited (formerly known as Alcatel-Lucent Network Management Service India Ltd) 89,230,796 (March 31, 2014 - 89,230,796) Equity shares of Rs. 10 each fully paid up. 91 91
17) Nxtra Data Limited: 5,050,000 (March 31, 2014 - 5,050,000) Equity shares of Rs. 10 each fully paid up 51 51
18) Airtel Broadband Services Private Limited (formerly known as Wireless Business Services Private Limited): 5,667,137,909 (March 31, 2014 - 5,667,137,909) Equity shares of Rs. 10 each fully paid up. (refer note 38 (i)) 65,270 65,270
19) Wynk Limited: 50,000 (March 31, 2014 -Nil) Equity shares of Rs. 10 each fully paid up (refer note 38 (viii)) 1 -

 

(Rs. Millions)
Particulars As of March 31, 2015 As of March 31, 2014
Investment in Joint Ventures
1) Bridge Mobile PTE Limited: 800,000 (March 31, 2014- 2,200,000) Equity shares of USD 1 each fully paid up. (refer note 38 (vii)) 34 92
2) FireFly Networks Limited: 1,000,000 (March 31, 2014- Nil) Equity shares of USD 1 each fully paid up. (refer note 38 (v)) 10 -
Investment in Associates
1) Bharti Teleport Limited ; 11,270,000 (March 31, 2014- 11,270,000 Equity shares of Rs. 10 each fully paid up. 113 113
Investment in other equity Instrument
1) IFFCO Kissan Sanchar Limited : 100,000 (March 31, 2014- 100,000) Equity Shares of Rs. 10 each fully paid up. 50 50
383,959 340,349
Other investments (at cost)
"Investment in Government Securities - National Savings Certificate (Un-quoted) : 18 units (March 31, 2014 - 18 units)" 2 2
Less: Provision for diminution in value of investments 3 3
383,958 340,348
Aggregate value of Unquoted Investments 309,450 258,169
Aggregate value of Quoted Investments 74,511 82,182
Aggregate Market value of Quoted Investments 523,600 305,100
Aggregate provision for diminution in value of investments 3 3

18. Long-term Loans and Advances

(Rs. Millions)

Particulars

As of March 31, 2015

As of March 31, 2014

Unsecured, considered good unless stated otherwise
Capital Advances
Considered good* 77 54,519
Considered doubtful 184 106
Less: Provision for doubtful advances (184) (106)
77 54,519
Security Deposit
Considered good** 10,015 9,005
Considered doubtful 525 723
Less: Provision for doubtful deposit (525) 10,015 (723) 9,005
Loans and advances to related parties (refer note 48) 39,640 51,019
MAT Credit Entitlement# 38,649 30,637
88,381 145,180

*Includes advance payments of Rs. Nil towards spectrum (March 31, 2014 – Rs. 53,304 Mn (refer note 38(ix))

**Includes security deposit/advance with/to related parties Rs. 6,950 Mn (March 31, 2014 – Rs. 7,308 Mn) (refer note 48)

#Reversal of MAT credit utilisation of Rs. 222 Mn (March 31, 2014 utilisation of Rs. 2,604 Mn) adjusted with Provision for tax.

19. Other Non-current Assets

(Rs. Millions)
Particulars As of March 31, 2015 As of March 31, 2014
Unsecured, considered good, unless stated otherwise
Non-current bank balances (refer note 23) 529 493
Advances * 16,959 15,704
Unamortised upfront fees and Deferred Premium 1,627 1,704
Trade receivable-non-current 106 -
19,221 17,901

*Advances represent payments made to various Government authorities under protest and are disclosed net of provision of Rs. 27,362 Mn (March 31, 2014 Rs. 20,199 Mn)

20. Current Investments

(Rs. Millions)
Particulars As of March 31, 2015 As of March 31, 2014
Current investment (at lower of cost and fair market value)
Investment in Mutual Funds 47,194 4,865
Investment in Deposits and Bonds 17 26
47,211 4,891
Aggregate value of Unquoted Investments 17 26
Aggregate value of Quoted Investments 47,194 4,865
Aggregate Market Value of Quoted Investments 47,550 4,881
Aggregate provision for diminution in value of investments - -

Details of investments are provided below:

(Rs. Millions, except as stated otherwise)

Particulars

As of March 31, 2015

As of March 31, 2014

(No. of Units) Amount (No. of Units) Amount
Investment in Mutual Funds (Quoted)
Axis Liquid Fund - Growth 650,426 1,000 405,484 575
Baroda Pioneer Treasury Advantage Fund Plan A - Growth - - 86,357 127
Birla Sun Life Cash Plus - Growth - Regular Plan - - 5,948,101 1,221
L&T Liquid Fund - Growth 1,104,487 2,105 - -
HDFC Liquid Fund - Premium Plan - Growth 31,886,747 872 - -
HDFC Cash management Fund saving Plan Growth 82,662,081 2,400 - -
ICICI Prudential Institutional Liquid Plan - Super Institutional Growth 14,605,888 3,000 335,693 64
IDFC Cash Fund - Growth-(Regular Plan) 2,647,900 4,453 - -
JM High Liquidity Fund - Growth Option 117,989,703 4,466 - -
JP Morgan India Liquid Fund Super Institutional Growth 69,186,380 1,250 18,484,749 306
Kotak Floater Short Term - Growth 1,812,276 4,120 - -
Kotak Liquid Scheme Plan A - Growth 343,026 966 - -
BOI AXA Liquid Fund - - 69,211 100
Pramerica Liquid Fund - Growth 412,450 609 125,259 170
Reliance Liquidity Fund-Growth Option 242,935 508 35,475 68
Reliance Liquid Cash Plan Growth Option Fund 293,865 1,000 - -
Religare Liquid Fund - Super Institutional Growth 943,091 1,800 417,082 733
Tata Liquid Fund Plan A - Growth 1,016,663 2,600 - -
Tata Money Market Fund Plan A - Growth 1,742,473 3,801 249,461 502
SBI Premier Liquid Fund - Direct Plan - Growth 454,995 1,000 - -
SBI Megnum Insta Cash Fund 573,778 1,770 - -
UTI Liquid Cash Plan Institutional - Growth Option - - 476,781 1,000
Principal Cash Management - Regular Plan - Growth 1,717,915 2,311 - -
Sundram Money Fund 56,132,271 1,650 - -
Taurus Mutual Fund 1,903,627 2,835 - -
Franklin India Treasury Management Account 400,595 828 - -
LIC NOMURA MF Liquid Fund - Growth Plan 733,879 1,850 - -
Total 389,457,451 47,194 26,633,653 4,865
Investment in Deposits and Bonds (Unquoted)
India Innovation Fund 70 7 64 6
7.30% REC Secured Bonds 2015 10 10 20 20
Total 80 17 84 26

21. Inventories (valued at lower of cost and net realisable value)

(Rs. Millions)
Particulars As of March 31, 2015 As of March 31, 2014
Stock-In-Trade* 94 11
Total 94 11

* Net of provision for diminution in value Rs. 483 Mn (March 31, 2014 Rs. 411 Mn)

22. Trade Receivables

(Rs. Millions)

Particulars

As of March 31, 2015

As of March 31, 2014

Unsecured, unless stated otherwise Receivables outstanding for a period exceeding six months from the date they are due for payment
Considered good 2,522 229
Considered doubtful 6,244 10,369
Less: Provision for doubtful receivables (6,244) 2,522 (10,369) 229
Other receivables
Considered good 30,549 21,426
Considered doubtful 9,985 3,162
Less: Provision for doubtful receivables (9,985) 30,549 (3,162) 21,426
Lease receivable finance lease 39 -
33,110 21,655

Refer note 9 on security deposit.

Includes amount receivable from related party Rs. 2,224 Mn (March 31, 2014 Rs. 1,785 Mn) (refer note 48)

23. Cash and Bank Balances

(Rs. Millions)
Particulars As of March 31, 2015 As of March 31, 2014
Cash and cash equivalents
Balances with banks
- On current accounts 878 875
- Bank deposits with original maturity of 3 months or less 2,700 3,300
- On unpaid dividend account 35 33
Cheques on hand 222 228
Cash on hand 52 22
3,887 4,458
Other bank balances
Bank deposits with original maturity of more than 3 months but less than 12 months - 2
Bank deposits with original maturity of more than 12 months 6 7
Margin money deposit 523 486
529 495
Less: Amount disclosed under non-current assets (refer note 19) 529 493
Total 3,887 4,460

24. Short-term Loans and Advances

(Rs. Millions)
Particulars As of March 31, 2015 As of March 31, 2014
Unsecured, considered good unless stated otherwise
Loans and advances to related parties (refer note 48) 40,552 12,510
Advances recoverable in cash or kind
Considered good 6,863 3,645
Considered doubtful 2,233 1,793
Less: Provision for doubtful advances (2,233) (1,793)
6,863 3,645
Balances with customs, excise and other authorities 6,527 5,208
Advance Tax [net of provision for tax of Rs. Nil (March 31, 2014 Rs. 108,461 Mn) and net of Rs. Nil Mn TDS receivable provided for (March 31, 2014 Rs. 419 Mn)]# - 2,855
53,942 24,218

# MAT credit of Rs. Nil (March 31, 2014 – Rs. 2,604 Mn) has been utilized during the year ended March 31, 2015 and adjusted with Provision for tax.

25. Other Current Assets

(Rs. Millions)
Particulars As of March 31, 2015 As of March 31, 2014
Unsecured, considered good, unless stated otherwise
Unbilled revenue 7,490 10,715
Interest accured on loan given to related parties (refer note 48) 1,154 682
Unamortised upfront fees and deferred premium 650 704
Others 26 52
9,320 12,153

26. Contingent Liabilities

(i) Total Guarantees outstanding as of March 31, 2015 amounting to Rs. 101,379 Mn (March 31, 2014 – Rs. 57,582 Mn) have been issued by banks and financial institutions on behalf of the Company. These guarantees include certain financial bank guarantees which have been given for subjudice matters and in compliance with licensing conditions, the amount with respect to these have been disclosed under capital commitments, contingencies and liabilities, as applicable, in compliance with the applicable accounting standards.

Corporate Guarantees outstanding as of March 31, 2015 amounting to Rs. 857,497 Mn (March 31, 2014 - Rs. 770,121 Mn) have been given to banks, financial institutions and third parties on behalf of Group Companies at no cost to the latter.

(ii) Claims against the Company not acknowledged as debt (excluding cases where the possibility of any outflow in settlement is remote):

a) Claims against the Company not acknowledged as debt:

(Rs. Millions)
Particulars As of March 31, 2015 As of March 31, 2014
(i) Taxes, Duties and Other demands (under adjudication / appeal / dispute)
-Sales Tax and Service Tax 11,120 10,463
-Income Tax 16,335 16,651
-Customs Duty 4,254 4,463
-Entry Tax 4,221 3,676
-Stamp Duty 411 359
-Municipal Taxes 122 122
-DoT demands * 4,766 2,487
-Other miscellaneous demands 59 59
(ii) Claims under legal cases including arbitration matters
-Access Charges / Port Charges 6,952 5,781
-Others 562 557
Total 48,802 44,618

*in addition, refer note (g) (vi), (g) (vii) and (g) (viii) below for DoT matters.

Unless otherwise stated below, the management based on legal advice, believes that, the outcome of these contingencies will be favorable and that a loss is not probable.

b) Sales Tax and Service Tax Sales Tax

The claims for sales tax as of March 31, 2015 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; iv. the applicability of sales tax on sale of SIM cards, 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.

Service Tax

The service tax demands as of March 31, 2015 relate to: i. cenvat claimed on tower and related material, ii. levy of service tax on SIM cards, iii. cenvat credit disallowed for procedural lapses and inadmissibility of credit, iv. disallowance of cenvat credit used in excess of 20% limit, and v. employee talk time c) Income tax

Income tax demands under appeal mainly included the appeals filed by the Company before various appellate authorities against the disallowance by the income tax authorities of certain expenses being claimed, non-deduction of tax at source with respect to dealers/ distributor’s margin and non-deduction of tax on payments to international operators for access charges, etc.

d) Custom Duty

The custom authorities, in some states, demanded custom duty for the imports of special software on the ground that this would form part of the hardware on which it was pre-loaded at the time of import. 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. In response to the application filed by the Company, the Hon’ble CESTAT has passed an order in favour of the custom authorities. The Company has filed an appeal with Hon’ble Supreme Court against the CESTAT order.

e) 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 also been raised whereby, in view of the Company, the material proposed to be taxed is not covered under the specific category.

f) Access Charges (Interconnect Usage Charges)/Port Charges

(i) 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 Telecom Regulatory Authority of India (TRAI). BSNL has raised a demand requiring the Company to pay the interconnect charges at the rates contrary to the regulations 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 regulations would need to be paid by the Company. The final order was also passed in our favour. BSNL has challenged the same in Hon’ble Supreme Court. However, no stay has been granted.

(ii) In another proceeding with respect to Distance Based Carriage Charges, the Hon’ble TDSAT in its order dated May 21, 2010, allowed BSNL appeal praying to recover distance based carriage charges. On filing of appeal by the telecom operators, Hon’ble Supreme Court asked the telecom operators to furnish details of distance-based carriage charges owed by them to BSNL. Further, in a subsequent hearing held on August 30, 2010 Hon’ble Supreme Court sought the quantum of amount in dispute from all the operators as well as BSNL and directed both BSNL and private telecom operators to furnish Call Data Records (CDRs) to TRAI. The CDRs have been furnished to TRAI.

(iii) In another issue with respect to Port Charges, in 2001, TRAI had prescribed slab based rate of port charges payable by private operators which were subsequently reduced in the year 2007 by TRAI. On BSNL’s appeal, TDSAT passed it’s judgement in favour of BSNL, and held that the pre-2007 rates shall be applicable prospectively from May 29, 2010. The rates were further revised downwards by TRAI in 2012. On BSNL’s appeal, TDSAT declined to stay the revised regulation. Further, the Hon’ble Supreme Court vide its judgement dated December 6, 2013, passed in another matter, held that TRAI is empowered to issue regulations on any matter under Section 11(1)(b) of TRAI Act and the same cannot be challenged before TDSAT. Accordingly, all matters raised before TDSAT, wherein TDSAT had interfered in Appeal and passed judgements, do not have any significance. However, parties can file Writ Petitions before High Court challenging such regulations. The Company believes that the above said judgement has further strengthened the position of the Company on many issues with respect to Regulations which had been in its favour and impugned before TDSAT.

g) Department of Telecommunications (‘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 Centre 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 non-fulfillment of its roll out obligations and these have been replied to. DoT has reviewed and revised the criteria and there has been no further development on this matter since then.

ii) DoT demands include demands raised for contentious matters relating to computation of license fees and spectrum charges.

iii) DoT demands include alleged short payment of license fee for financial year 06-07 and financial year 07-08 due to difference of interpretation of Adjusted Gross Revenue (AGR) between the Company and DoT and interest thereon, against which the Company has obtained stay from appropriate Hon’ble High Courts & TDSAT. TDSAT has pronounced its judgement on April 23, 2015, directing DoT to rework and issues fresh demands to the operators.

iv) DoT demands also include the contentious matters in respect of subscriber verification norms and regulations including validity of certain documents allowed as Proof of Address / Identity in certain mobility circles.

v) DoT demands also include penalty for alleged failure to meet the procedural requirement for submission of EMF radiation self certification. The above stated matters are being contested by the Company and the Company, based on legal advice, believes that it has complied with all license related regulations as and when prescribed and does not expect any loss relating to these matters.

In addition to the amount disclosed in the table above, the contingent liability on DoT matters includes the following:

vi) Post the Hon’ble Supreme Court Judgment on October 11, 2011 on components of Adjusted Gross Revenue for computation of license fee, based on the legal advice, the Company believes that the realised and unrealised foreign exchange gain should not be included in Adjusted Gross Revenue (AGR) for computation of license fee thereon. Accordingly, the license fee on such foreign exchange gain has not been provided in these financial statements. Also, due to ambiguity of interpretation of ‘foreign exchange differences’, the license fee impact on such exchange differences is not quantifiable and has not been included in the table above. Further, as per the Order dated June 18, 2012 of the Kerala High Court, stay has been obtained, wherein the licensee can continue making the payment as was being done throughout the period of license on telecom activities. Further as stated in point (iii) above, TDSAT has pronounced its judgement on April 23, 2015, directing DoT to rework and issue fresh demands to the operators.

vii) On January 8, 2013, the Department of Telecommunications (‘DoT’) issued a demand on the Company for Rs. 51,353 Mn towards levy of one time spectrum charge. The demand includes a retrospective charges of Rs. 8,940 Mn for holding GSM Spectrum beyond 6.2 MHz for the period from July 1, 2008 to December 31, 2012 and also a prospective charge of Rs. 42,413 Mn for GSM spectrum held beyond 4.4 MHz for the period from January 1, 2013, till the expiry of the initial terms of the respective licenses.

In the opinion of the Company, inter-alia, the above demand amounts to alteration of financial terms of the licenses issued in the past. Based on a petition filed by the Company, the Hon’ble High Court of Bombay, vide its order dated January 28, 2013, has directed the DoT to respond and not to take any coercive action until the next date of hearing. The DoT has filed its reply and the next date of hearing has been fixed on September 9, 2015.

viii) The Department of Telecommunications (DoT) had issued notices to the Company as well as various other Telecom Service Providers to stop provision of services under 3G Intra Circle Roaming (ICR) arrangements in the service areas where such service providers had not been allocated 3G Spectrum. DoT also levied a financial penalty of Rs. 3,500 Mn. Company contested the notices and upon various rounds of litigations, ultimately, the TDSAT, vide its judgement dated April 29, 2014, held 3G ICR arrangements to be a competent service and compliant with the licensing conditions and quashed the notice imposing penalty. The DoT has challenged the order of TDSAT in an appeal filed before the Hon’ble Supreme Court, which has been admitted. However Hon’ble Supreme Court has refused to grant any interim order during the pendency of the appeal.

h) 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.

i) Bharti Mobinet Limited (‘BMNL’) litigation

The Company is in litigation in various proceedings at various stages and in various forums with DSS Enterprises Private Limited (DSS) (which had 0.34 per cent equity interest in erstwhile Bharti Cellular Limited (BCL)) on claims of specific performance in respect of alleged agreements to sell the equity interest of DSS in erstwhile BMNL to the Company. In respect of one of the transactions with respect to purchase of 10.5% share of DSS in Skycell by the Company, Crystal Technologies Private Limited (‘Crystal’), an intermediary, initiated arbitration proceedings against the Company demanding Rs. 195 Mn regarding termination of its appointment as a consultant to negotiate with DSS for the sale of DSS stake in erstwhile BMNL to the Company. The Ld. Arbitrator partly allowed the award for a sum of Rs. 31 Mn, 9% interest from period October 3, 2001 till date of award (i.e May 28, 2009) and a further 18% interest from date of award to date of payment. The Company appealed in Hon’ble High Court against the award. The Single Judge while dismissing the appeal reduced the rate of interest from 18% to 12%. The matter was appealed thereafter to Division Bench and finally to Hon’ble Supreme Court wherein the matter has been admitted on the condition that the amount as per Single Judge Order shall be secured in Hon’ble Supreme Court, which has been done. The matter will now come up in due course.

DSS has also filed a suit against a previous shareholder of BMNL and the Company challenging the transfer of shares by that shareholder to the Company. The matter is to be reheard.

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 was granted by the Hon’ble Delhi High Court with respect to the commencement of arbitration proceedings. The stay was made absolute. DSS Enterprises has preferred an SLP challenging the order dated May 12, 2005 passed by the Hon’ble Delhi High Court in Company Appeal No.30 of 2004. The Company Appeal was dismissed by Hon’ble Delhi High Court on the grounds of non-disclosure of material facts before the Hon’ble High Court. This appeal has been admitted by the Hon’ble Supreme Court and our Counter Affidavit has been filed, matter is to be now listed for hearing in due course.

The liability, if any, of the Company arising out of above litigation cannot be currently estimated. Since the amalgamation of BCL and erstwhile Bharti Infotel Limited (BIL) with the Company, 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 the Company down to 0.136% as of March 31, 2015.

27. Capital and Other Commitments

a) Estimated amount of contracts to be executed on capital account and not provided for (net of advances) Rs. 274,832 Mn as of March 31, 2015 (March 31, 2014 - Rs. 159,239 Mn). (including Rs. 244,040 Mn (March 31, 2014 - Rs. 129,129 Mn) towards spectrum (refer note 38(ix))

b) Under certain Outsourcing Agreements, the Company has estimated commitments to pay Rs. Nil as of March 31, 2015 (March 31, 2014 - Rs. 311 Mn) comprising of assets and service charges. The amount represents total minimum commitment over the unexpired period of the contracts (uptill 5 years from the reporting date), since it is not possible for the Company to determine the extent of assets and services to be provided over the unexpired period of the contract. However, the actual charges/ payments may exceed the above mentioned minimum commitment based on the terms of contract.

28. The Company has undertaken to provide financial support, to its subsidiaries, namely, Bharti Airtel Services Limited, Bharti Telemedia Limited, Nxtra Data Limited, Telesonic Networks Limited, Airtel M Commerce Services Limited, Bharti Airtel (USA) Limited, Bharti

Airtel (Hongkong) Limited, Bharti Airtel Lanka (Private) Limited, Bharti Airtel Holdings (Singapore) Pte Limited including its subsidiaries and Bharti Airtel International (Netherlands) B.V. including its subsidiaries.

29. Revenue From Operations

(Rs. Millions)
Particulars For the year ended March 31, 2015 For the year ended March 31, 2014
Service Revenue
- Voice revenue 407,836 404,264
- Others 147,032 94,863
Sale of products 96 58
554,964 499,185

Note: Voice Revenue includes revenue from home network subscribers, roaming revenues and interconnect revenues.

30. Other Income

(Rs. Millions)
Particulars For the year ended March 31, 2015 For the year ended March 31, 2014
Interest income on bank deposits 867 173
Interest income on loan given to related parties 529 260
Dividend income from subsidiaries 13,700 4,588
Net gain on sale of investments* 34,698 2,096
Net foreign exchange gain 278 -
Profit on sale of fixed assets (net) - 95
Other non-operating income
Lease rentals 236 66
Liabilities/Provision written back 338 114
Miscellaneous income 1,284 1,142
51,930 8,534

* includes Rs. 32,741 Mn (March 31, 2014 Rs. Nil) towards sales of shares of Bharti Infratel Limited (refer note 38(vi)

31. Cost of Goods Sold

(Rs. Millions)
Particulars For the year ended March 31, 2015 For the year ended March 31, 2014
(Increase)/ Decrease in inventories (638) (183)
Purchase of Stock-in-Trade 714 205
76 22

32. Employee Benefit Expenses

(Rs. Millions)
Particulars For the year ended March 31, 2015 For the year ended March 31, 2014
Salaries and wages 14,578 14,565
Contribution to provident and other funds (refer note 40) 657 670
Expenses on employee stock option plan (refer note 50) 549 195
Sta3 welfare expenses 631 572
Others 500 479
16,915 16,481

33. Power and Fuel, Rent and Other Expenses

(Rs. Millions)
Particulars For the year ended March 31, 2015 For the year ended March 31, 2014
Power and fuel 40,668 40,569
Network 483 1,128
Others 41,151 41,697
Rent
Network 58,331 55,911
Others 1,459 993
59,790 56,904
Other expenses
Interconnect and Port charges 124 210
Insurance
Network 283 501
Others 3 0
Installation 53 89
Repairs and Maintenance
Plant and Machinery 24,499 22,837
Building 175 191
Others - Network 716 645
Others - Administrative 959 926
Leased Line and Gateway charges 1,060 1,253
Internet access and bandwidth charges 4,300 6,396
Advertisement and Marketing 7,022 6,074
Sales Commission, Customer verification and Content cost 17,604 15,779
Indirect Selling and Distribution 2,844 3,350
Sim card utilisation 783 1,068
Legal and Professional 2,451 1,906
Rates and Taxes 2,359 441
IT and Call Centre Outsourcing 9,649 11,701
Travelling and Conveyance 1,168 1,269
Bad debts written o3 2,915 2,644
Provision for doubtful debts and advances (refer note 53) 3,103 3,220
Provision for diminution in stock/ capital work in progress 451 190
Collection and Recovery Expenses 3,133 3,984
Loss on sale of Fixed Assets (net) 550 -
Printing and Stationery 613 689
Net foreign exchange loss - 1,417
Miscellaneous Expenses
Network 1,488 1,130
Sales and Marketing 4,906 3,858
Administrative 2,555 943
95,766 92,711

Note: Miscellaneous Expenses (Sales and Marketing) above includes goodwill waivers which are other than trade discount of Rs. 984 Mn (March 31, 2014 Rs. 716 Mn).

34. Finance Costs
(Rs. Millions)
Particulars For the year ended March 31, 2015 For the year ended March 31, 2014
Interest expense 10,700 10,228
Other borrowing cost 1,033 1,036
Loss from swap arrangements (net) 625 476
Applicable net (gain)/loss on foreign currency borrowings 1,733 1,624
14,091 13,364
35. Depreciation and Amortisation Expense
(Rs. Millions)
Particulars For the year ended March 31, 2015 For the year ended March 31, 2014
Depreciation of tangible assets (refer note 15) 59,895 59,012
Amortisation of intangible assets (refer note 16) 15,702 13,301
75,597 72,313

36. Exceptional Items

a) During the year ended March 31, 2014, the Company had reassessed useful life of certain categories of network assets due to technological developments and had revised the remaining useful life in respect of those assets effective April 1, 2013. Out of those assets, additional depreciation charge of Rs. 2,071 Mn on assets for which the revised useful life had expired on April 1, 2013 had been recognised and disclosed as ‘Exceptional Items’ and additional depreciation charge of Rs. 2,708 Mn for balance assets had been recognised and reflected as ‘Depreciation and amortisation expense’ for the year ended March 31, 2014.

b) Tax expense for the year ended March 31, 2014 includes:

i) Tax benefit of Rs. 540 Mn on above

ii) Reversal of tax provision of Rs. 640 Mn on account of settlement of an uncertain tax position

37. Preferential Allotment

During the year ended March 31, 2014, the Company had issued 199,870,006 equity shares to M/s. Three Pillars Pte. Ltd (belonging to non-promoter category), an affiliate of Qatar Foundation Endowment, constituting 5% of the post issue share capital of the Company, through preferential allotment at a price of Rs. 340 per share aggregating to Rs. 67,956 Mn. The proceeds of the preferential allotment were utilized towards the repayment of equivalent debt in accordance with the objective of the preferential allotment.

38. Acquisitions / Additional Investments / New Developments

(i) On June 25, 2013, the Company acquired additional equity stake of 2% by way of subscription to fresh equity in its existing 49% owned joint venture companies, namely, Airtel Broadband Services Private Limited (‘ABSPL’) (formerly known as Wireless Business Services Private Limited), Wireless Broadband Business Services (Delhi) Private Limited, Wireless Broadband Business Services (Kerala) Private Limited and Wireless Broadband Business Services (Haryana) Private Limited (together referred as "BWA entities"), for a sum of Rs. 638 Mn, thereby increasing its equity shareholding to 51% in each of these entities.

The Scheme of Arrangement (‘Scheme’) under Section 391 to 394 of the Companies Act, 1956 for amalgamation of Wireless Broadband Business Services (Delhi) Private Limited, Wireless Broadband Business Services (Kerala) Private Limited and Wireless Broadband Business Services (Haryana) Private Limited (collectively referred to as "the transferor companies") with ABSPL was approved by the Hon’ble High Courts of Delhi and Bombay vide order dated May 24, 2013 and June 28, 2013, respectively, with appointed date July 6, 2010, and filed with the Registrar of Companies on August 5, 2013, effective date of the Scheme. Accordingly, the transferor companies had ceased to exist and had merged into ABSPL. The shares issued to the Company in ABSPL in exchange of shares in transferor companies had been accounted for at the carrying amount of investment in the transferor companies.

On August 30, 2013, the Company increased its equity investment in ABSPL by way of conversion of loan of Rs. 49,094 Mn, thereby increasing its shareholding from 51% to 93.45% and on October 17, 2013 further acquired 371,273,844 equity shares of ABSPL for a total consideration of Rs. 6,257 Mn from Qualcomm Asia Pacific Pte. Ltd., the only other shareholder of ABSPL, thereby increasing it’s shareholding to 100%. An amount of Rs. 4,104 Mn is payable upon satisfaction of certain conditions as per the share purchase agreement.

The Scheme of Arrangement (‘Scheme’) under Sections 391 to 394 of the Companies Act, 1956 for amalgamation of ABSPL with the Company, was approved by the Hon’ble High Courts of Delhi and Bombay on January 21, 2014 and April 11, 2014, respectively. Subsequent to the balance sheet date, the Company has filed the Scheme under Sections 391 to 394 of the Companies Act, 1956 for amalgamation of Airtel Broadband Services Private Limited (‘ABSPL’) (formerly known as Wireless Business Services Private Limited), a wholly owned subsidiary of the Company, with the Company, as approved by the Hon’ble High Courts of Bombay on April 11, 2014 with Registrar of Companies (‘ROC’) on April 9, 2015 which is the effective date and appointed date of merger. From the filing of the said Scheme with the ROC, ABSPL has ceased to exist and have merged with the Company with effect from April 9, 2015. DoT vide its letter dated February 2, 2015, has given its approval for taking on record the merger of ABSPL with the Company, subject to certain conditions as stipulated in the letter. One of the conditions of merger requires payment of Rs. 4,361 Mn, equal to the difference between the entry fee for Unified Access Service License and entry fees paid for Internet Service Provider license. The Hon’ble TDSAT vide its interim order dated February 9, 2015 has allowed the Company to operationalize the spectrum subject to filing an undertaking that in case the petition fails, it shall pay the sum of Rs. 4,361 Mn along with interest as may be determined by the Tribunal within eight weeks from the date of judgement. The Company based on its evaluation believes that it is not probable that claim will materialise and therefor, no provision has been recognised in the books of accounts.

(ii) During the year ended March 31, 2015, the Company has increased its equity investment by way of conversion of loan into equity of Rs. 11,047 Mn in Bharti Airtel Lanka (Private) Limited.

(iii) During the year ended March 31, 2015, the Company has made equity investment of Rs. 350 Mn in Airtel M Commerce Services Limited.

(iv) During the year ended March 31, 2015, the Company has made equity investment of Rs. 39,931 Mn (USD 655 Mn) in Bharti Airtel International (Mauritius) Limited.

(v) During the year ended March 31, 2015, the Company has made equity investment of Rs. 10 Mn in FireFly Networks Limited. FireFly Networks Limited is a 50:50 joint venture of the Company and Vodafone West Limited (vi) On August 7, 2014, in order to comply with the requirement to maintain minimum public shareholding of 25% in terms of rule 19(2)(b)/ 19A of Securities Contracts (Regulation) Rules, 1957, as amended, and Clause 40A of the equity listing agreement, the Company has sold 85 Mn shares in Bharti Infratel Limited (BIL) for Rs. 21,434 Mn, representing 4.5% shareholding in BIL. Subsequent to the transaction, the shareholding of the Company in BIL has reduced to 74.86% Further on February 25, 2015, the Company sold 55 Mn shares for Rs. 19,255 Mn, representing 2.91% shareholdings in BIL. Subsequent to the transaction, the shareholding of the Company in BIL has reduced to 71.90%.

Excess of proceeds over the cost of investment net of associated costs, taxes and levies, amounting to Rs. 32,741 Mn has been recognised in other income.

(vii) During the year ended March 31, 2015, Bridge Mobile PTE Limited, a joint venture of the Company, has reduced its share capital by USD 14 Mn and has proportionately returned part of its share capital to all its joint venture partners. Accordingly, the Company has received Rs. 87 Mn (USD 1 per share for 1,400,000 shares).

(viii) During the year ended March 31, 2015, the Company has made equity investment of Rs. 0.50 Mn in Wynk Limited (a wholly owned subsidiary company). The main objective of the company is content procurement/aggregation including own content and selling to B2B and B2C customers.

(ix) During the year ended March 31, 2015, the Company has won the auction for 95.20 MHz spectrum in 15 service areas for an amount of Rs. 244,040 Mn in the auction conducted by the Government of India. The Company has opted for the deferred payment option and accordingly, subsequent to the balance sheet date, paid an advance of Rs. 66,496 Mn with the balance amount of Rs. 177,544 Mn payable in 10 equal installments after a moratorium period of two years. Pending the allocation of the spectrum by the Government of India, entire amount outstanding as at March 31, 2015, has been disclosed under capital commitments in the notes to the financial statements. (refer note 27)

During the year ended March 31, 2014, the Company had won the auction for 99.80 MHz spectrum in 13 service areas for an amount of Rs. 182,433 Mn in the auction conducted by the Government of India. The Company had opted for the deferred payment option and had paid an advance of Rs. 53,304 Mn with the balance amount of Rs. 129,129 Mn payable in 10 equal installments after a moratorium of two years. Pending the allocation of spectrum by the Government of India, the balance amount had been disclosed under capital commitments as at March 31, 2014 (refer note 27). During the year ended March 31, 2015, the Government of India has allocated the spectrum to the Company, accordingly the Company has recognised deferred payment liability of Rs. 129,129 Mn.

39. Earnings Per Share

(Rs. Millions, except per share data and as stated otherwise)

Particulars For the year ended March 31, 2015 For the year ended March 31, 2014
Basic and Diluted Earnings per Share :
Nominal value of equity shares (Rs.) 5 5
Profit attributable to equity shareholders (A) 132,005 66,002
Weighted average number of equity shares outstanding during the year (Nos. in Mn) (B) 3,997 3,955
Basic/ Diluted earnings per Share (Rs.) (A/B) 33.02 16.69

40. Employee Benefits a) During the year, the Company has recognised the following amounts in the Statement of Profit and Loss:

i. Defined Contribution Plans

(Rs. Millions)
Particulars For the year ended March 31, 2015 For the year ended March 31, 2014
Employer’s Contribution to Provident Fund *@ 650 662
Employer’s Contribution to ESI and other Funds* 7 8

* Included in Contribution to Provident and Other Funds (Refer Note 32)

@ Includes contribution to Defined Contribution Plan for Key Managerial Personnel.

ii. Defined Benefit Plans and Leave Encashment For the year ended March 31, 2015:

(Rs. Millions)
Particulars Gratuity # Leave Encashment #
Current service cost 240 142
Interest cost 127 64
Expected return on plan assets (6) -
Net actuarial (gain) / loss (84) (133)
Total * 277 73
Actual return on plan assets (76) -
For the year ended March 31, 2014:
(Rs. Millions)
Particulars Gratuity # Leave Encashment #
Current service cost 258 171
Interest cost 117 63
Expected return on plan assets (6) -
Net actuarial (gain) / loss 101 (62)
Total * 470 172
Actual return on plan assets - -

# Included in Salaries and Wages (Refer Note 32)

*Includes charges towards gratuity and leave encashment for Key Managerial Personnel as these are provided on an actuarial basis for the Company as a whole.

b) The assumptions used to determine the benefit obligations are as follows:

For the year ended March 31, 2015:

(Rs. Millions)
Particulars Gratuity Leave Encashment
Discount rate 8.50% 8.50%
Expected rate of increase in compensation levels 10.00% 10.00%
Expected rate of return on plan assets 8.00% N.A.
Expected average remaining working lives of employees (years) 24.38 24.38
For the year ended March 31, 2014:
(Rs. Millions)
Particulars Gratuity Leave Encashment
Discount rate 8.00% 8.00%
Expected rate of increase in compensation levels 10.00% 10.00%
Expected rate of return on plan assets 8.00% N.A.
Expected average remaining working lives of employees (years) 24.39 24.39
c) Reconciliation of opening and closing balances of obligations and plan assets is as follows:
For the year ended March 31, 2015:
(Rs. Millions)
Particulars Gratuity Leave Encashment
Change in Obligation
Present value of obligation at beginning of year 1,586 794
Current service cost 240 142
Interest cost 127 64
Benefits paid (305) (133)
Acquisitions / transfer in / transfer out (47) (14)
Actuarial (gain) / loss (14) (133)
Present value of obligation at year end 1,587 720
Change in plan assets :
Fair value of plan assets at beginning of year 76 -
Expected return on plan assets 6 -
Actuarial gain / (loss) 70 -
Amount received on redemption of plan assets (152) -
Fair value of plan assets at year end - -
Net funded status of the plan 1,587 720
Current Liabilities 450 720
Non-Current Liabilities 1,137 -

For the year ended March 31, 2014:

(Rs. Millions)
Particulars Gratuity Leave Encashment
Change in Obligation
Present value of obligation at beginning of year 1,382 744
Current service cost 258 171
Interest cost 117 63
Benefits paid (252) (114)
Acquisitions/ transfer in/ transfer out (14) (8)
Actuarial (gain) / loss 95 (62)
Present value of obligation at year end 1,586 794
Change in plan assets :
Fair value of plan assets at beginning of year 76 -
Expected return on plan assets 6 -
Actuarial gain / (loss) (6) -
Fair value of plan assets at year end 76 -
Net funded status of the plan 1,510 794
Current Liabilities 241 794
Non-Current Liabilities 1,269 -

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 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) History of experience adjustment is as follows:

(Rs. Millions)
Gratuity
Particulars As of March 31, 2015 As of March 31, 2014 As of March 31, 2013 As of March 31, 2012 As of March 31, 2011
Present value of obligation 1,587 1,586 1,382 1,119 995
Plan assets - 76 76 76 76
Surplus / (deficit) (1,587) (1,510) (1,306) (1,043) (919)
Experience adjustments on plan liabilities- gain/(loss) (69) (28) (31) (57) (87)
Experience adjustments on plan assets- gain/(loss) 70 (6) (6) (6) (6)
(Rs. Millions)
Leave Encashment
Particulars As of March 31, 2015 As of March 31, 2014 As of March 31, 2013 As of March 31, 2012 As of March 31, 2011
Present value of obligation 720 794 744 652 607
Plan assets - - - - -
Surplus / (deficit) (720) (794) (744) (652) (606)
Experience adjustments on plan liabilities- gain/(loss) 134 98 79 51 (97)
Experience adjustments on plan assets- gain/(loss) - - - - -

g) Movement in other long term employee benefits :

The provision for long term service award provided by the Company as of March 31, 2015 is Rs. 86 Mn (March 31, 2014 Rs. 105 Mn).

41. Investment in Joint Ventures/Jointly Owned Assets

a) Jointly owned assets

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:

As of March 31, 2015

(Rs. Millions except % share)

Cable Project Total Contribution Capital Work In Progress Net block % Share
SMW-4 3,317 - 1,637 8.27%
EIG - Project 2,677 205 1,805 7.22%
IMEWE- Project 3,063 - 2,206 12.84%
As of March 31, 2014

(Rs. Millions except % share)

Cable Project Total Contribution Capital Work In Progress Net block % Share
SMW-4 3,382 97 1,811 13.07%
EIG - Project 2,412 - 1,913 7.09%
IMEWE- Project 3,063 - 2,422 12.84%

Refer note 55 for cables transferred to Network i2i Limited, a wholly owned subsidiary of the Company.

b) Joint Ventures Entity

i) The Company has 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. As of March 31, 2015, the Company’s investment in Bridge Mobile Pte Limited is USD 800,000, amounting to Rs. 34 Mn in 800,000 ordinary shares of USD 1 each which is equivalent to an ownership interest of 10.00% (March 31, 2014: Investment of USD 2.2 Mn, amounting to Rs. 92 Mn, USD 2.2 Mn ordinary shares, ownership interest 10.00%). During the year March 31, 2015, Bridge Mobile PTE Limited reduced its share capital by USD 14 Mn and has proportionately returned part of its share capital to all its joint venture partners. Accordingly, the Company has received Rs. 87 Mn (USD 1 per share for 1,400,000 shares). ii) During the year ended March 31, 2014, the Company has increased its equity investment in Airtel Broadband Services Private Limited (ABSPL) from 49% to 100% and ABSPL became the wholly owned subsidiary of the Company.(refer note 38(i))

The following represent the Company’s share of assets and liabilities, and income and results of the joint ventures.

(Rs. Millions)
Particulars As of March 31, 2015 As of March 31, 2014
(Unaudited) (Unaudited)*
Balance Sheet
Current assets 47 113
Non-current assets 4 4
Current liabilities 21 11
Non-current liabilities - -
Equity 30 106

 

(Rs. Millions)
Particulars For the year ended March 31, 2015 For the year ended March 31, 2014
(Unaudited) (Unaudited)
Statement of Profit and Loss
Revenue 38 37
Other Income - 103
Employee benefit expenses 22 24
Other expenses 7 36
Finance costs - 3
Depreciation 1 1
Profit/ (loss) before tax 8 76
Tax Expense - 26
Loss for the year 8 50

*includes shares of income and results of ABSPL till June 25, 2013, i.e., the date, it became the subsidiary of the Company.

42. As of March 31, 2015, Bharti Airtel Employee’s Welfare Trust (‘the Trust’) holds 1,410,642 equity shares (of face value of Rs. 5 each) (March 31, 2014 2,374,698 equity shares) of the Company.

Particulars As of March 31, 2015 As of March 31, 2014 As of March 31, 2015 As of March 31, 2014
Number of shares (Rs. Millions)
Opening Balance 2,374,698 3,937,055 342 674
Purchased during the year - - - -
Issued during the year (964,056) (1,562,357) (228) (332)
Closing Balance 1,410,642 2,374,698 114 342

43. Loans and advances in the nature of loans along with maximum amount outstanding during the year as per Clause 32 of the Listing Agreement are as follows:

(a) Loan and advance in the nature of loan given to Bharti Telemedia Limited at nil interest rate is Rs. 33,395 Mn (March 31, 2014 Rs. 35,770 Mn at nil interest rate).

(b) Loan and advance in the nature of loan given to Bharti Airtel Lanka (Private) Limited at nil interest rate is

Rs. 11,047 Mn (March 31, 2014 Rs. 11,047 Mn at nil interest rate)

(c) Loan and advance in the nature of loan given to Bharti Airtel International (Netherlands) B.V at LIBOR + 1.25% interest rate is Rs. 32,047 Mn (March 31, 2014 Rs. 10,895 Mn at LIBOR + 1.75% interest rate).

(d) Loan and advance in the nature of loan given to Telesonic Networks Limited at SBI base rate is Rs. 90 Mn (March 31, 2014 Rs. 90 Mn at SBI PLR + 1% interest rate).

(e) Loan and advance in the nature of loan given to Bharti Teleports Limited at SBI base rate +1% interest rate is Rs. 466 Mn (March 31, 2014 Rs. 412 Mn at SBI base rate +1% interest rate).

(f) Loan and advance in the nature of loan given to Bharti International (Singapore) Pte Limited at LIBOR + 1.25% interest rate is Rs. 8,887 Mn (March 31, 2014 Rs. 2,731 Mn at LIBOR + 1.75% interest rate).

(g) Loan and advance in the nature of loan given to Nxtra Data Limited at nil interest rate is Rs. 2,000 Mn (March 31, 2014 Rs. 2,000 Mn at nil interest rate).

(h) Loan and advance in the nature of loan given to Bharti Airtel Services Limited at nil interest rate is Rs. 635 Mn (March 31, 2014 Rs. 635 Mn at nil interest rate).

(i) Loan and advance in the nature of loan given to Airtel Broadband Services Private Limited at nil interest rate is Rs. 5,390 Mn (March 31, 2014 Rs. 49,094 Mn at nil interest rate).

Refer note 48 for outstanding balance at the end of the year for the above entities.

44. Expenditure / Earnings in Foreign Currency (on accrual basis)

(Rs. Millions)
Particulars For the year ended March 31, 2015 For the year ended March 31, 2014
Expenditure
On account of :
Interest 496 295
Bank Charges 447 304
Professional & Consultation Fees 90 36
Travelling (Net of Reimbursement) 39 26
Roaming Charges (including Commission) 1,330 1,868
Membership & Subscription 56 95
Sta3 Training & Others 28 2
Network Services 464 447
Annual Maintenance 1,905 1,863
Bandwidth Charges 2,644 3,723
Access Charges 21,288 18,689
Repairs & Maintenance 13 -
Marketing 150 673
Content Charges 1,016 1,289
Directors Commission and Sitting Fees 59 49
Income Tax 147 210
Total 30,172 29,569
Earnings
Service Revenue 36,040 34,929
Interest Income 469 208
Management Charges 765 566
Total 37,274 35,703
45. CIF Value of Imports
(Rs. Millions)
Particulars For the year ended March 31, 2015 For the year ended March 31, 2014
Capital Goods 37,221 16,145
Total 37,221 16,145

46. Auditors’ Remuneration

(Rs. Millions)
Particulars For the year ended March 31, 2015 For the year ended March 31, 2014
- Audit Fee* 68 68
- Reimbursement of Expenses* 5 5
- As advisor for taxation matters* - -
- Other Services* 8 11
Total 81 84

* Excluding Service Tax

47. Details of dues to micro and small enterprises as defined under the MSMED Act, 2006

Amounts due to micro and small enterprises under Micro, Small and Medium Enterprises Development (MSMED) Act, 2006 aggregate to Rs. 10 Mn (March 31, 2014 – Rs. 38 Mn) based on the information available with the Company and the confirmation obtained from the creditors.

(Rs. Millions)
Sr No Particulars March 31, 2015 March 31, 2014
1 The principal amount and the interest due thereon [Rs. Nil (March 31, 2014 – Rs.3Nil)] remaining unpaid to any supplier as at the end of each accounting year 10 38
2 The amount of interest paid by the buyer in terms of section 16 of the MSMED Act, 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 MSMED Act, 2006. - -
4 The amount of interest accrued and 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 MSMED Act, 2006. - -

48. Related Party Disclosures

In accordance with the requirements of Accounting Standard (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 are:

Name of the related party and related party relationship :

(i) Key Management Personnel

Sunil Bharti Mittal

Gopal Vittal

(ii) Other Related Parties

(a) Entities where control exist – Subsidiary/Subsidiaries

of subsidiary

Bharti Hexacom Limited

Bharti Airtel Services Limited

Bharti Telemedia Limited

Bharti Airtel (USA) Limited

Bharti Airtel Lanka (Private) Limited

Bharti Airtel (UK) Limited(subsidiary of

Bharti Airtel Holdings (Singapore) Pte Ltd)

Bharti Airtel (Canada) Limited (Under liquidation)

Bharti Airtel (Hongkong) Limited

Bharti Infratel Limited ("BIL")

Bharti Infratel Services Limited

(subsidiary of Bharti Infratel Limited)

Network i2i Limited

Bharti Airtel Holdings (Singapore) Pte Ltd

Bharti Infratel Lanka (Private) Limited (subsidiary of

Bharti Airtel Lanka (Private) Limited)

Airtel M Commerce Services Limited

Airtel Broadband Services Private Limited (w.e.f. June

25, 2013. Amalgamated with Bharti Airtel Limited

w.e.f. April 9, 2015)

Nxtra Data Limited

Bharti Airtel (Japan) Kabushiki Kaisha (subsidiary of

Bharti Airtel Holdings (Singapore) Pte Ltd)

Bharti Airtel (France) SAS (subsidiary of Bharti Airtel

Holdings (Singapore) Pte Ltd)

Bharti Airtel International (Mauritius) Limited

Bharti International (Singapore) Pte Ltd

Airtel Bangladesh Limited (subsidiary of Bharti Airtel

Holdings (Singapore) Pte Ltd)

Bharti Airtel International (Netherlands) B.V.

Bangladesh Infratel Networks Limited (subsidiary of

Airtel Bangladesh Limited)

Telesonic Networks Limited

Wynk Limited (Incorporated on January 13, 2015) ^

Wireless Broadband Business Services (Delhi) Private

Limited (w.e.f June 25,2013) *

Wireless Broadband Business Services (Haryana)

Private Limited (w.e.f June 25,2013) *

Wireless Broadband Business Services (Kerala) Private

Limited, (w.e.f June 25,2013) *

Other subsidiaries of Bharti Airtel International

(Netherlands) B.V. :

Africa Towers N.V.

Africa Towers Services Limited

Airtel (Ghana) Limited

Airtel (Seychelles) Limited

Airtel (SL) Limited #

Airtel Burkina Faso S.A. #

Airtel Congo S.A #

Airtel DTH Services (Sierra Leone) Limited (under liquidation)

Airtel DTH Services Congo (RDC) S.p.r.l (under liquidation)

Airtel DTH Services Nigeria Limited (under liquidation)

Airtel DTH Services Tanzania Limited (liquidated on April 3, 2014)

Airtel Gabon S.A. #

Airtel Madagascar S.A. #

Airtel Malawi Limited #

Airtel Mobile Commerce (SL) Limited

Airtel Mobile Commerce B.V

Airtel Mobile Commerce Burkina Faso S.A.

Airtel Mobile Commerce (Ghana) Limited

Airtel Mobile Commerce Holdings B.V

Airtel Mobile Commerce Kenya Limited

Airtel Mobile Commerce Limited

Airtel Mobile Commerce Madagascar S.A.

Airtel Mobile Commerce Rwanda Limited

Airtel Mobile Commerce (Seychelles) Limited

Airtel Mobile Commerce (Tanzania) Limited

Airtel Mobile Commerce Tchad SARL

Airtel Mobile Commerce Uganda Limited

Airtel Mobile Commerce Zambia Limited

Airtel Money (RDC) S.p.r.l

Airtel Money Niger S.A.

Airtel Money S.A. (Gabon)

Airtel Networks Kenya Limited #

Airtel Networks Limited

Airtel Networks Zambia Plc #

Airtel Rwanda Limited #

Airtel Tanzania Limited #

Airtel Tchad S.A. #

Airtel Towers (Ghana) Limited

Airtel Towers (S.L.) Company Limited

Airtel Uganda Limited #

Bharti Airtel Acquisition Holdings B.V.

(liquidated on March 31, 2015)

Bharti Airtel Africa B.V.

Bharti Airtel Burkina Faso Holdings B.V.

Bharti Airtel Cameroon B.V. (liquidated on March 31, 2015)

Bharti Airtel Chad Holdings B.V.

Bharti Airtel Congo Holdings B.V.

Bharti Airtel Developers Forum Limited

Bharti Airtel DTH Holdings B.V.

Bharti Airtel Gabon Holdings B.V.

Bharti Airtel Ghana Holdings B.V.

Bharti Airtel Kenya B.V.

Bharti Airtel Kenya Holdings B.V.

Bharti Airtel Madagascar Holdings B.V.

Bharti Airtel Malawi Holdings B.V.

Bharti Airtel Mali Holdings B.V.

Bharti Airtel Niger Holdings B.V.

Bharti Airtel Nigeria B.V. #

Bharti Airtel Nigeria Holdings B.V. (under liquidation)

Bharti Airtel Nigeria Holdings II B.V.

Bharti Airtel RDC Holdings B.V.

Bharti Airtel Services B.V.

Bharti Airtel Sierra Leone Holdings B.V. #

Bharti Airtel Tanzania B.V.

Bharti Airtel Uganda Holdings B.V.

Bharti Airtel Zambia Holdings B.V.

Bharti DTH Services Zambia Limited

(Liquidated on November 21, 2014)

Burkia Faso Towers S.A.

Celtel (Mauritius) Holdings Limited

Celtel Congo RDC S.a.r.l. #

Celtel Niger S.A. #

Channel Sea Management Company Mauritius Limited

Congo RDC Towers S.p.r.l.

Congo Towers S.A.

Gabon Towers S.A.

Indian Ocean Telecom Limited

Kenya Towers Limited (held for sale)

Madagascar Towers S.A.

Malawi Towers Limited (held for sale)

Mobile Commerce Congo S.A.

Montana International

MSI-Celtel Nigeria Limited (under liquidation)

Niger Towers S.A.

Partnership Investments Sprl

Rwanda Towers Limited (divested during the year)

Socit Malgache de Telephonie Cellulaire SA

Tanzania Towers Limited

Tchad Towers S.A.

Towers Support Nigeria Limited

Uganda Towers Limited (held for sale)

Warid Congo S.A.

Warid Telecom Uganda Limited (merger in process)

Zambian Towers Limited (held for sale)

Zap Trust Company Nigeria Limited

Bharti Airtel Rwanda Holdings Ltd (formerly known as Zebrano (Mauritius) Limited)

(b) Associates / Associate of subsidiary

Bharti Teleports Limited

Tanzania Telecommunications Company Limited

(Associate of Bharti Airtel Tanzania B.V.)

Seychelles Cable Systems Company Limited

(Associate of Airtel (Seychelles) Limited)

(c) Joint Ventures /Joint Venture of Subsidiary

Forum I Aviation Limited (Joint Venture of Bharti Airtel Services Limited)

Indus Towers Limited (Joint Venture of Bharti Infratel Limited)

Bridge Mobile Pte Limited

FireFly Networks Limited

Wireless Broadband Business Services (Delhi) Private Limited (till June 24, 2013)*

Wireless Broadband Business Services (Haryana) Private Limited (till June 24, 2013)*

Wireless Broadband Business Services (Kerala) Private Limited, (till June 24, 2013)*

Airtel Broadband Services Private Limited (formerly known as Wireless Business Services Private Limited) (till June 24, 2013)*

(d) Entities where Key Management Personnel and their relatives exercise significant influence

Bharti Foundation

Bharti Airtel Employees Welfare Trust

Hike Limited

Mobinteco Limited

Cedar Support Services Limited

(e) Entities having significant influence over the Company

Singapore Telecommunications Limited

Pastel Limited

Bharti Telecom Limited

(f) Group Companies **

Beetel Teletech Limited

Bharti Axa General Insurance Company Limited

Bharti Axa Life Insurance Company Limited

Bharti Realty Holdings Limited

Bharti Realty Limited

Bharti Retail Limited

Bharti Softbank Holdings Pte Limited

BSB Gaming Private Limited

Ignite World Private Limited (formerly known as BSB

Portal Limited)

BSB Innovation India Limited

BSY Pte Limited

Centum Learning Limited

Fieldfresh Foods Private Limited

Indian Continent Investment Limited

Jersey Airtel Limited

Mehrauli Realty and Consultants Limited

Nile Tech Limited

Y2CF Digital Media Limited

Bharti Enterprises Limited

Atrium Restaurants India Private Limited

** "Group Companies" though not ‘Related Parties’ as per the definition under AS 18, have been included by way of a voluntary disclosure, following the best corporate governance practices.

# Transactions of similar nature with such subsidiaries have been clubbed and shown under the head ‘Other African Subsidiaries’ as their contribution to total transaction value is less than 10%.

^ Refer note 38 above for details of new operations during the year.

* Merged w.e.f August 5, 2013 with Airtel Broadband Services Private Limited (formerly known as Wireless Business Services Private Limited)

The details of amounts due to or due from the related parties as of March 31, 2015 and March 31, 2014 are as follows:

(Rs. Millions)
S.No Particulars As of March 31, 2015 As of March 31, 2014
1 Loans & Advances (including accrued interest, wherever applicable)
Entities where control exist
Bharti Airtel (Services) Limited - 634
Airtel Broadband Services Pvt. Ltd.* 5,390 3,800
Bharti Telemedia Ltd. 31,694 33,226
Bharti Airtel Lanka (Pvt.) Ltd. 470 11,517
Nxtra Data Limited 2,000 2,000
Telesonic Networks Limited 90 90
Bharti International (Singapore) Pte Ltd. 8,949 2,467
Bharti Airtel International (Netherlands) B.V. 32,189 9,831
Associate
Bharti Teleports Ltd. 466 320
Entities where Key Management Personnel and their relatives exercise significant influence
Bharti Airtel Employees Welfare Trust 98 326
81,346 64,211
* refer note 38(i)
2 Security Deposit/Advances given
Entities where control exist
Bharti Airtel (Services) Limited 729 729
Bharti Infratel Ltd. 1,808 1,777
Joint Venture of Subsidiary
Indus Towers Limited 3,513 3,813
Group Companies
Bharti Realty Limited 359 358
Bharti Realty Holdings Limited 86 86
Centum learning Limited 60 60
Nile Tech Ltd. 395 395
Bharti Enterprises Limited - 90
6,950 7,308
3 Trade Receivables
Entities where control exist
Bharti Hexacom Ltd. 406 278
Bharti Telemedia Ltd. 98 26
Airtel Broadband Services Pvt. Ltd.* 684 151
Bharti Airtel (USA) Ltd. 62 182
Bharti Airtel (Hongkong) Ltd. 33 -
Bharti Airtel (Canada) Ltd. 25 26
Bharti Airtel International (Mauritius) Ltd. 3 2
Bharti Airtel Holdings (Singapore) Pte Limited 7 1
Bharti Airtel International (Netherlands) B.V. 132 355
Nxtra Data Limited - 182
Airtel Bangladesh Ltd. 16 -
Airtel Networks Ltd. 57 76
Airtel (Seychelles) Limited 4 -
Bharti Airtel Lanka (Pvt.) Ltd. - 3
Airtel Ghana Ltd. 2 68
Other African Subsidiaries 425 -
Associate
Bharti Teleports Ltd. 114 81
Entities where Key Management Personnel and their relatives exercise significant influence
Hike Limited 60 14
Mobinteco Limited 1 2
Entity having significant influence over the Company
Singapore Telecommunications Ltd. - 294
Group Companies
Bharti Realty Limited 31 -
Bharti Retail Ltd. 46 37
Bharti AXA Life Insurance Company Limited 4 5
Bharti AXA General Insurance Co Ltd 5 2
Fieldfresh Foods Private Limited 1 0
Jersey Airtel Limited 6 -
Nile Tech Ltd. 0 -
BSB Innovation India Limited 2 -
2,224 1,785
* refer note 38(i)
4 Trade Payables
Entities where control exist
Bharti Airtel (Services) Limited (392) (757)
Bharti Infratel Ltd. (2,803) (2,692)
Airtel M Commerce Services Limited (40) (36)
Telesonic Networks Limited (1,153) (318)
Network i2i Limited (265) (137)
Nxtra Data Limited (213) -
Bharti Airtel (UK) Ltd. (768) (543)
Bharti Airtel (Hongkong) Ltd. - (31)
Bharti Airtel (Japan) Kabushiki Kaisha (7) (4)
Airtel Bangladesh Ltd. - (2)
Bharti Airtel (France) SAS (6) (46)
Bharti International (Singapore) Pte Ltd. (46) (778)
Airtel (Seychelles) Limited - (4)
Bharti Airtel Lanka (Pvt.) Ltd. (27) -
Other African Subsidiaries - (40)
Joint Venture/ Joint Venture of Subsidiary
Forum 1 Aviation Ltd (1) (3)
Indus Towers Limited (7,733) (7,394)
Bridge Mobile Pte Limited (6) (4)
Entity having significant influence over the Company
Singapore Telecommunications Ltd. (32) -
Group Companies
Beetel Teletech Limited (121) (41)
Bharti Realty Limited - (1)
Bharti Realty Holdings Limited (6) (7)
Bharti Enterprises Limited (45) (56)
Jersey Airtel Limited - 0
Ignite World Private Limited (Previously known as BSB Portal Limited) (151) (1)
Centum learning Limited (95) (66)
Y2CF Digital Media Pvt. Ltd. (2) -
(13,912) (12,961)

The details of the related party transactions entered into by the Company for the years ended March 31, 2015 and March 31, 2014 are as follows:

(Rs. Millions)
S.No Particulars For the year ended March 31, 2015 For the year ended March 31, 2014
1 Purchase of fixed assets/ bandwidth Entities where control exist
Bharti Hexacom Ltd. 111 158
Bharti Airtel (Services) Limited 507 0
Network i2i Limited 488 -
Telesonic Networks Limited 3,483 1,993
Bharti Airtel (France) SAS - 47
Bharti International (Singapore) Pte Ltd. 556 296
Airtel Broadband Services Pvt. Ltd.* 18 -
Group Companies
Ignite World Private Limited (Previously known as BSB Portal Limited) 53 -
Beetel Teletech Limited 1,162 422
6,378 2,916
* refer note 38(i)
2 Sale of fixed assets/ IRU given
Entities where control exist
Bharti Hexacom Ltd. 1,119 773
Network i2i Limited 24 2,547
Nxtra Data Limited 0 1,771
Bharti International (Singapore) Pte Ltd. 18 101
Airtel Broadband Services Pvt. Ltd.* 95 -
Entity having significant influence over the Company
Singapore Telecommunications Ltd. - 9
Group Companies
Bharti Enterprises Limited - 2
Bharti Retail Ltd. - 20
Mehrauli Realty and Consultants Limited - 72
1,256 5,295
* refer note 38(i)
3 Purchase of Investments/Subscription to share capital
Entities where control exist
Bharti Airtel Lanka Pvt. Ltd.* 11,047 -
Wynk Limited * 1 -
Bharti Airtel International (Mauritius) Ltd.* 39,931 9,518
Network i2i Limited - 2,609
Airtel Broadband Services Pvt. Ltd. - 49,732
Nxtra Data Limited - 51
Airtel M Commerce Service Limited.* 350 990
Joint Venture
FireFly Networks Limited 10 -
51,339 62,900
* refer note 38
4 Sale of Investments
Joint Venture
Bridge Mobile Pte Limited 87 -
87 -
5 Rendering of Services
Entities where control exist
Bharti Hexacom Ltd. 9,092 7,745
Bharti Airtel (Services) Limited 58 115
Bharti Airtel (USA) Ltd. 209 217
Bharti Airtel (UK) Ltd. 3,374 131
Airtel Broadband Services Pvt. Ltd.* 0 8
Bharti Airtel (Hongkong) Ltd. 49 98
Bharti Airtel Holdings (Singapore) Pte Limited 15 12
Nxtra Data Limited 256 -
Airtel Bangladesh Ltd. 25 -
Bharti Telemedia Ltd. 198 49
Bharti Infratel Ltd. 134 159
Bharti Airtel Lanka (Pvt.) Ltd. 386 363
Network i2i Limited 145 106
Airtel M Commerce Services Limited 66 3
Telesonic Networks Limited 58 121
Bharti Airtel (Japan) Kabushiki Kaisha 0 1
Bharti Airtel (France) SAS 1 2
Bharti Airtel International (Mauritius) Ltd. 1 1
Bharti International (Singapore) Pte Ltd. 536 562
Bharti Airtel International (Netherlands) B.V. 557 506
Airtel (Seychelles) Limited 10 40
Airtel (Ghana) Ltd. 126 242
Airtel Networks Ltd. 130 218
Other African Subsidiaries 2,020 1,267
Associate
Bharti Teleports Ltd. 14 5
Joint Venture of Subsidiary
Indus Towers Limited 39 22
Entities where Key Management Personnel and their relatives exercise significant influence
Bharti Foundation 2 -
Mobinteco Limited 0 2
Hike Limited 114 66
Cedar Support Services Limited 1 -
Entity having significant influence over the Company
Singapore Telecommunications Ltd. 1,374 1,555
Group Companies
Bharti Wal-Mart Private Limited - 4
Fieldfresh Foods Private Limited 6 -
Bharti AXA Life Insurance Company Limited 27 15
Jersey Airtel Limited 22 29
Bharti Retail Ltd. 71 35
Ignite World Private Limited (Previously known as BSB Portal Limited) (0) 3
Beetel Teletech Limited 3 -
Bharti Realty Holdings Limited 2 -
Bharti AXA General Insurance Co Ltd 30 -
BSB Innovation India Limited 2 -
Bharti Enterprises Limited 3 -
Centum learning Limited 7 -
Atrium Restaurants India Private Limited 0 -
Bharti Realty Limited 1 -
19,164 13,702
* refer note 38(i)
6 Receiving of services
Entities where control exist
Bharti Hexacom Ltd. 2,986 2,549
Bharti Airtel (Services) Limited 3,138 3,343
Bharti Airtel (USA) Ltd. 581 477
Bharti Airtel (UK) Ltd. 5,316 743
Bharti Airtel (Hongkong) Ltd. 75 110
Airtel Bangladesh Ltd. 15 2
Bharti Telemedia Ltd. 64 59
Bharti Infratel Ltd. 17,924 14,085
Bharti Airtel Lanka (Pvt.) Ltd. 478 727
Network i2i Limited 1,277 1,233
Airtel M Commerce Services Limited 894 161
Nxtra Data Limited 1,805 395
Telesonic Networks Limited 3,969 2,612
Bharti Airtel (Japan) Kabushiki Kaisha 30 10
Bharti Airtel (France) SAS 157 96
Bharti International (Singapore) Pte Ltd. 1,208 1,379
Airtel (Seychelles) Limited 26 44
Airtel (Ghana) Ltd. 12 188
Airtel Networks Ltd. 63 170
Other African Subsidiaries 704 1,272
Associate
Bharti Teleports Ltd. - 2
Joint Venture/ Joint Venture of Subsidiary
Forum 1 Aviation Ltd - 45
Indus Towers Limited 33,348 32,350
Bridge Mobile Pte Limited 26 29
Entity having significant influence over the Company
Singapore Telecommunications Ltd. 314 480
Group Companies
Bharti Wal-Mart Private Limited - 3
Beetel Teletech Limited 119 395
Bharti Realty Limited 539 548
Nile Tech Ltd. 553 596
Ignite World Private Limited (Previously known as BSB Portal Limited) 712 307
Y2CF Digital Media Pvt. Ltd. 4 8
Bharti Realty Holdings Limited 169 194
Bharti AXA Life Insurance Company Limited 1 1
Jersey Airtel Limited 1 1
Centum learning Limited 233 216
Bharti Retail Ltd. 3 7
Bharti AXA General Insurance Co Ltd 15 40
76,759 64,877
7 Fund transferred/Expenses incurred on behalf of others
Entities where control exist
Bharti Hexacom Ltd. 1,129 1,356
Bharti Airtel (Services) Limited 226 299
Airtel Bangladesh Ltd. 0 -
Airtel Broadband Services Pvt. Ltd.* 524 105
Bharti Telemedia Ltd. 583 633
Bharti Infratel Ltd. - 7
Network i2i Limited - 7
Airtel M Commerce Services Limited 51 78
Nxtra Data Limited 44 102
Telesonic Networks Limited 120 128
Joint Venture/ Joint Venture of Subsidiary
Forum 1 Aviation Ltd 1 -
Wireless Business Services Pvt. Ltd.* - 18
Associate
Bharti Teleports Ltd. 23 16
Entity having significant influence over the Company
Singapore Telecommunications Ltd. - 1
Group Companies
Bharti Retail Ltd. 2 15
2,703 2,765
* refer note 38(i)
8 Fund received/Expenses incurred on behalf of the Company
Entities where control exist
Bharti Hexacom Ltd. 4 103
Bharti Airtel (Services) Limited 56 9
Bharti Airtel Holdings (Singapore) Pte Limited 0 3
Bharti International (Singapore) Pte Ltd. 37 -
Bharti Telemedia Ltd. 22 74
Airtel M Commerce Services Limited 132 211
Airtel Broadband Services Pvt. Ltd.* 0 -
Nxtra Data Limited 5 -
Associate
Bharti Teleports Ltd. - 2
Joint Venture of subsidiary
Forum 1 Aviation Ltd 48 -
Group Companies
Bharti Retail Ltd. 1 -
Bharti Enterprises Limited 710 638
1,015 1,040
9 Employee related expenses incurred on behalf of others
Entities where control exist
Bharti Hexacom Ltd. 37 138
Bharti Airtel (Services) Limited 104 307
Bharti Telemedia Ltd. 40 173
Bharti Infratel Ltd. 0 -
Airtel M Commerce Services Limited 86 142
Nxtra Data Limited 2 12
Associate
Bharti Teleports Ltd. - 13
269 785
10 Employee related expenses incurred on behalf of the Company
Entities where control exist
Bharti Hexacom Ltd. 25 15
Bharti Airtel (Services) Limited 40 54
Bharti Infratel Ltd. 1 -
Bharti Telemedia Ltd. 33 25
Airtel M Commerce Services Limited 4 -
Group Companies
Bharti Enterprises Limited 127 92
Bharti Retail Ltd. 1 -
Centum learning Limited 1 -
Beetel Teletech Limited 0 -
232 186
11 Donation
Entities where Key Management Personnel and their relatives exercise significant influence
Bharti Foundation 411 196
411 196
12 Security deposit given/Advances paid
Entities where control exist
Bharti Infratel Ltd. 34 24
Joint Venture of Subsidiary
Indus Towers Limited 68 86
Associate
Bharti Teleports Ltd. 0 -
Group Companies
Bharti Realty Limited 0 -
Bharti Retail Limited 5 -
Nile Tech Ltd. 0 -
Bharti Enterprises Limited - 90
Entity having significant influence over the Company
Bharti Telecom Ltd. 1 -
108 200
13. Refund of Capital Advance
Entity where control exist
Airtel Broadband Services Pvt. Ltd.* - 4,757
- 4,757
* refer note 38(i)
14 Advance received/Refund of Security deposit given
Entity where control exist
Bharti Infratel Ltd. 3 16
Joint Venture of Subsidiary
Indus Towers Limited 368 -
Group Companies
Bharti Realty Limited 0 -
Bharti Retail Limited 5 -
Entity having significant influence over the Company
Bharti Telecom Ltd. 1 -
377 16
15 Repayment of Loan taken
Entity where control exist
Bharti Infratel Ltd. - 22,990
- 22,990
16 Loans given
Entities where control exist
Bharti Airtel (Services) Limited 32 634
Airtel Broadband Services Pvt. Ltd.* 1,590 22,728
Bharti Telemedia Ltd. 5,820 1,520
Nxtra Data Limited 180 2,000
Bharti International (Singapore) Pte Ltd. 5,902 2,211
Bharti Airtel International (Netherlands) B.V. 21,174 9,045
Associate
Bharti Teleports Ltd. 154 110
Joint Venture
Wireless Business Services Pvt. Ltd.* - 14,904
Wireless Broadband Business Services (Delhi) Pvt. Ltd.* - 13,016
Wireless Broadband Business Services (Haryana) Pvt. Ltd.* - 693
Wireless Broadband Business Services (Kerala) Pvt. Ltd.* - 1,556
34,852 68,417
* refer note 38(i)
17 Repayment of Loans given
Entity where control exist
Bharti Airtel (Services) Limited 667 -
Bharti Telemedia Ltd. 7,352 3,320
Nxtra Data Limited 180 -
Bharti Airtel International (Netherlands) B.V. 294 -
Associate
Bharti Teleports Ltd. - 100
Entities where Key Management Personnel and their relatives exercise
significant influence
Bharti Airtel Employees Welfare Trust 228 338
8,721 3,758
18 Interest charged by others
Entities where control exist
Bharti Hexacom Ltd. 2 19
Bharti Infratel Ltd. - 485
2 504
19 Interest charged by the Company
Entities where control exist
Telesonic Networks Limited 13 14
Bharti Airtel International (Mauritius) Ltd. - -
Bharti International (Singapore) Pte Ltd. 119 40
Bharti Airtel International (Netherlands) B.V. 351 164
Associates
Bharti Teleports Ltd. 47 35
530 253
20 Dividend Income
Entities where control exist
Interim Dividend for FY 2014-15
Bharti Infratel Ltd. 6,750 -
6,750 -
Final Dividend for FY 2013-14
Bharti Hexacom Ltd. 350 -
Bharti Infratel Ltd. 6,600 -
6,950 -
Final Dividend for FY 2012-13
Bharti Hexacom Ltd.
Bharti Infratel Ltd. - 88
- 4,500
- 4,588
21 Dividend Paid
Group Companies
Indian Continent Investment Ltd. 912 266
Entities having significant influence over the Company
Pastel Ltd. 2,028 591
Bharti Telecom Ltd. 5,994 1,738
Key Management Personnel
Gopal Vittal 0.17 -
Entities where Key Management Personnel and their relatives exercise significant influence
Bharti Airtel Employees Welfare Trust 7 4
8,941 2,599
22 Reimbursement of energy expenses
Entity where control exist
Bharti Infratel Ltd. 13,972 17,440
Joint Venture of Subsidiary
Indus Towers Limited 21,958 21,961
35,930 39,401
23 Guarantees and collaterals given on behalf of others
(Including Performance guarantees)
Entity where control exist
Bharti Hexacom Ltd. 3,301 2,171
Bharti Telemedia Ltd. 669 727
Airtel Bangladesh Ltd. 14,396 26,444
Bharti Airtel (Services) Limited 160 -
Bharti Airtel International (Netherlands) B.V 814,413 684,320
Nxtra Data Limited 26 -
Bharti International (Singapore) Pte. Limited 25,193 56,486
Associate
Bharti Teleports Ltd. 1 -
858,159 770,148
24 Key Management Personnel Remuneration ^
Salaries and allowances 221 128
Performance linked incentive (‘PLI’)# 99 189
Perquisites 5 8
325 325

^ Excludes an amount of Rs. 35 Mn (March 31, 2014 Rs. 25 Mn) towards expenses recognised in statement of profit and loss during the year ended March 31, 2015 with respect to stock options granted.

# Value of PLI considered above represents incentive at 100% performance level. However, same will be paid on the basis of actual performance parameters in next year. Additional provision of Rs. 23 Mn (March 31, 2014: Reversal of provision of Rs. 2 Mn) has been recorded in the books towards PLI for the year ended March 31, 2015. During the year ended March 31, 2015, PLI of Rs. 220.50 Mn (March 31, 2014: Rs. 144.95 Mn) pertaining to previous year has been paid.

49. Operating Lease

Operating lease as a lessee

The lease rentals charged during the year for cancellable/non-cancellable leases relating to rent of building premises and cell sites as per the agreements and maximum obligation on long-term non-cancellable operating leases are as follows:

(Rs. Millions)
Particulars As of March 31, 2015 As of March 31, 2014
Lease Rentals [Excluding Lease Equalisation Reserve - Rs. 2,339 Mn (March 31, 2014 Rs. 3,079 Mn)] 57,451 53,825
Obligations on non cancellable leases :
Not later than one year 60,478 56,538
Later than one year but not later than five years 218,622 228,617
Later than five years 111,760 130,621
Total 390,860 415,776

The escalation clause includes escalation ranging from 0 to 25%, includes option of renewal from 1 to 15 years and there are no restrictions imposed by lease arrangements.

Operating Lease – As a Lessor

i) The Company has entered into non–cancellable lease arrangements to provide dark fiber on indefeasible right of use (IRU) basis and certain premises on lease. 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 of March 31, 2015 and accordingly, disclosures required by AS 19 are not provided.

ii) The future minimum lease payments receivable are:

(Rs. Millions)
Particulars As of March 31, 2015 As of March 31, 2014
Not later than one year 328 319
Later than one year but not later than five years 1,207 1,305
Later than five years 904 1,134
Total 2,439 2,758

b) Finance Lease

i) Finance Lease obligation of the Company as lessee as of March 31, 2015 is as follow:-

(Rs. Millions)
Particulars Future minimum lease payments Interest Present value
Not later than one year 42 12 30
Later than one year but not later than five years 117 16 101
Later than five years - - -
Total 159 28 131

ii) The future minimum lease payments receivable of the Company as of March 31, 2015 is as follows

(Rs. Millions)
Particulars Future minimum lease payments Interest Present value
Not later than one year 45 13 32
Later than one year but not later than five years 123 17 106
Later than five years - - -
Total 168 30 138

50. 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 Old 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 (face value Rs. 10 each) equity shares at a price of Rs. 565 per equity share (2,880,000 equity shares post split of one equity share of Rs. 10 each into 2 equity shares of Rs. 5 each) to the Trust. The Company issued bonus shares in the ratio of 10 equity shares for every one equity share held as at September 30, 2001, as a result of which the total number of shares allotted to the trust increased to 15,840,000 (face value Rs. 10 each) equity shares (31,680,000 equity shares post share split of one equity share of Rs. 10 each into 2 equity shares of Rs. 5 each).

(iii) Pursuant to the shareholders’ 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 (face value Rs. 10 each) options to be granted to the employees from time to time on the basis of their performance and other eligibility criteria. (18,734,552 equity shares post share split of one equity share of Rs. 10 each into 2 equity shares of Rs. 5 each)

(iv) The following table provides an overview of all existing share option plans of the Company:

As of March 31, 2015 As of March 31, 2014
Scheme Plan Year of issuance of plan Vesting period (years) Contractual term (years) Share options granted (thousands) Weighted average exercise price (Rs.) Share options granted (thousands) Weighted average exercise price (Rs.)
Equity settled
Plans
Scheme I 2001 Plan * 2002 1 - 4 7 30,893 21.25 30,893 21.25
Scheme I 2004 Plan * 2004 1 - 4 7 4,380 35.00 4,380 35.00
Scheme I Superpot * 2004 1 - 3 7 143 - 143 -
Scheme I 2006 Plan 2006 1 - 5 7 5,489 5.48 5,264 5.50
Scheme 2005 2005 Plan 2005 1 - 4 7 11,260 237.06 11,260 237.06
Scheme 2005 2008 Plan & Annual Grant Plan (AGP) 2008 1 - 3 7 8,817 352.13 8,817 352.13
Scheme 2005 Performance Share Plan (PSP) 2009 Plan 2009 3 - 4 7 1,691 5.00 1,691 5.00
Scheme 2005 Special ESOP & Restricted Share Units (RSU) Plan 2010 1 - 5 7 3,615 5.00 3,615 5.00
Scheme 2005 Long Term Incentive (LTI) Plan 2011 1 - 3 7 433 5.00 422 5.00
Scheme 2005 LTI Plan 2012 1 - 3 7 1,649 5.00 1,593 5.00
Cash settled
Plans
Performance Unit Plan (PUP) 2013 Performance Unit Plan (PUP) 2013 2013 1 - 3 3 2,283 - 2,167 -
Performance Unit Plan (PUP) 2014 Performance Unit Plan (PUP) 2014 2014 1 - 5 3-5 4,006 - - -

* Contractual term has expired

(v) The following table exhibits the net compensation expenses arising from share based payment transaction:

(Rs. Millions)
Particulars Year ended March 31, 2015 Year ended March 31, 2014
Expenses arising from equity-settled share-based payment transactions (6) (42)
Expenses arising from Cash-settled share-based payment transactions 555 237
549 195

(vi) The total carrying value of cash settled share based compensation liability is Rs. 658 Mn and Rs. 266 as of March 31, 2015 and March 31, 2014, respectively.

(vii) The information concerning stock options granted, exercised, forfeited and outstanding at the year-end is as follows:

As of March 31, 2015 As of March 31, 2014
Particulars Number of share options Weighted average exercise price Number of share options Weighted average exercise price
(thousands) (Rs.) (thousands) (Rs.)
Equity Settled Plans
Scheme I - 2006 Plan
Outstanding at beginning of year 539 6.74 1,185 5.89
Granted 225 5.00 150 5.00
Exercised (98) 14.38 (320) 5.36
Forfeited / Expired (276) 5.00 (476) 5.00
Outstanding at end of year 390 5.00 539 6.74
Exercisable at end of year 65 5.00 223 9.21
Scheme 2005 - 2005 Plan
Outstanding at beginning of year 1,008 436.06 1,736 384.72
Granted - - - -
Exercised - - (130) 201.88
Forfeited / Expired (1,008) 436.06 (598) 339.18
Outstanding at end of year - - 1,008 436.06
Exercisable at end of year - - 1,008 436.06
Scheme 2005 - 2008 Plan & AGP
Outstanding at beginning of year 3,439 354.54 4,314 355.80
Granted - - - -
Exercised (173) 327.20 (10) 301.47
Forfeited / Expired (732) 357.85 (865) 361.04
Outstanding at end of year 2,534 355.45 3,439 354.54
Exercisable at end of year 2,534 355.45 3,439 354.54
Scheme 2005 - PSP 2009 Plan
Outstanding at beginning of year 242 5.00 569 5.00
Granted - - - -
Exercised (159) 5.00 (217) 5.00
Forfeited / Expired - 5.00 (110) 5.00
Outstanding at end of year 83 5.00 242 5.00
Exercisable at end of year 83 5.00 154 5.00
Scheme 2005 - Special ESOP & RSU
Plan
Outstanding at beginning of year 408 5.00 1,470 5.00
Granted - - - -
Exercised (178) 5.00 (610) 5.00
Forfeited / Expired (41) 5.00 (452) 5.00
Outstanding at end of year 189 5.00 408 5.00
Exercisable at end of year 189 5.00 369 5.00
Scheme 2005 - LTI Plan (2011 & 2012)
Outstanding at beginning of year 1,072 5.00 1,815 5.00
Granted 67 5.00 - -
Exercised (356) 5.00 (275) 5.00
Forfeited / Expired (260) 5.00 (468) 5.00
Outstanding at end of year 523 5.00 1,072 5.00
Exercisable at end of year 230 5.00 183 5.00
Cash Settled Plan
PUP 2013
Outstanding at beginning of year 1,978 - - -
Granted 116 - 2,167 -
Exercised (589) - - -
Forfeited / Expired (542) - (189) -
Outstanding at end of year 962 - 1,978 -
Exercisable at end of year - - - -
PUP 2014
Outstanding at beginning of year - - - -
Granted 4,006 - - -
Exercised - - - -
Forfeited / Expired (167) - - -
Outstanding at end of year 3,839 - - -
Exercisable at end of year - - - -

(viii) The following table summarises information about options exercised and granted during the year and about options outstanding and their remaining contractual life:

March 2015 Options Outstanding as of March 31, 2015 Options Granted during the year ended March 31, 2015 Options Excercised during the year ended March 31, 2015
Plan Options Exercise price Weighted average remaining contractual life Options Weighted average Fair Value Options Weighted average share price
(thousands) (Rs.) (years) (thousands) (Rs.) (thousands) (Rs.)
Equity settled Plans
2006 Plan 390 5.00 to 110.50 5.86 225 361.19 98 371.70
2008 Plan & AGP 2,534 295.00 to 402.50 0.63 - - 173 383.30
PSP 2009 Plan 83 5.00 1.87 - - 159 352.26
Special ESOP & RSU Plan 189 5.00 2.26 - - 178 350.09
LTI Plan (2011 & 2012) 523 5.00 4.27 67 291.63 356 368.36
Cash settled Plans
PUP 2013 962 - 1.37 116 379 589 354.24
PUP 2014 3,839 - 2.89 4,006 390 - -

March 2014

Options Outstanding as of March 31, 2014 Options Granted during the year ended March 31, 2014 Options Excercised during the year ended March 31, 2014
Plan Options Exercise price Weighted average remaining contractual life Options Weighted average Fair Value Options Weighted average share price
(thousands) (Rs.) (years) (thousands) (Rs.) (thousands) (Rs.)
Equity settled Plans
2006 Plan 539 5.00 to 110.50 4.40 150 329.14 320 301.16
2005 Plan 1,008 110.50 to 461.00 0.43 - - 130 316.90
2008 Plan & AGP 3,439 295.00 to 402.50 1.62 - - 10 320.55
PSP 2009 Plan 242 5 .00 2.77 - - 217 326.62
Special ESOP & RSU Plan 408 5 .00 3.20 - - 610 324.96
LTI Plan (2011 & 2012) 1,072 5 .00 2.66 - - 275 327.05
Cash settled Plans
PUP 2013 1,978 - 2.36 2,167 316.85 - -

(ix) The fair value of the options granted was estimated on the date of grant using the Black- Sholes/Monte Carlo Lattice valuation model with the following assumptions:

Particulars Year Ended March 31, 2015 Year Ended March 31, 2014
Risk free interest rates 7.64% to 8.65% 8.38% to 8.53%
Expected life 11 to 72 months 16 to 60 months
Volatility 27.36% to 30.73% 36.31% to 39%
Dividend yield 0.46% to 0.48% 0.31% to 0.32%
Wtd average share price on measurement date (Rs.) 373.7 to 393.9 318.9 to 337.4
Wtd average exercise price on measurement date (Rs.) 0 to 5 0 to 5

The volatility of the options is based on the historical volatility of the share price since the Company’s equity shares became publicly traded.

(x) Bharti Infratel Limited (BIL) has given stock options to certain employees of the Company and the corresponding compensation cost is borne by BIL.

51. Forward Contracts & Derivative Instruments and Unhedged Foreign Currency Exposure

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 foreign exchange fluctuations and changes in interest rate.

The following table details the status of the Company’s exposure:

(Rs. Millions)
Sr No Particulars Notional Value Notional Value
(March 31, 2015) (March 31, 2014)
A For Loan related exposures *
a) Forwards 7,023 7,272
b) Options 19,115 11,958
c) Interest Rate Swaps - -
Total 26,138 19,230
B For Trade related exposures *
a) Forwards 9,326 7,452
b) Options 3,818 2,404
c) Interest Rate Swaps - -
Total 13,144 9,856
C Unhedged foreign currency borrowing 26,075 18,484
D Unhedged foreign currency payables 33,468 26,941
E Unhedged foreign currency receivables 2,648 166

*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 recorded reversal of loss Rs. 258 Mn (including reversal of loss of Rs. 196 Mn towards embedded derivatives) for the year ended March 31, 2015 [recorded net loss of Rs. 73 Mn (including reversal of loss of Rs. 8 Mn towards embedded derivatives) for the year ended March 31, 2014].

52. a) The Board of Directors, in its meeting held on April 29, 2014, proposed a final dividend of Rs. 1.80 per equity share of Rs. 5.00 each (36% of face value) for financial year 2013-14 which was duly approved by the shareholders of the Company in the Annual General Meeting held on September 5, 2014.

b) During the year ended March 31, 2015, on August 13, 2014, the Board of Directors declared an interim dividend for Rs. 1.63 per equity of Rs. 5.00 (32.6% of face value)

c) Net dividend remitted in foreign exchange:

(Rs. Millions)
Particulars During the year ended March 31, 2015 During the year ended March 31, 2014
Number of non-resident shareholders 4 5
Number of equity shares held on which dividend was due (Nos. in Million) 862 862
Amount remitted (Rs. in Millions) 2,958 862
Amount remitted (USD in Millions) 49 13

d) Dividend of Rs. 2.22 per share (Face value per share Rs. 5) proposed for the year 2014-15.

53. Movement in Provision '

a) Doubtful Debts/Advances

(Rs. Millions)
Particulars For the year ended March 31, 2015 For the year ended March 31, 2014
Balance at the beginning of the year# 16,466 13,262
Addition- Provision for the year 6,018 5,864
Application- Write off of bad debts (net of recovery) (2,915) (2,644)
Others - (16)*
Balance at the end of the year# 19,569 16,466

* Rs. 16 Mn provision for doubtful receivable transferred to Nxtra Data Limited, as part of slump sale, during the year ended March 31, 2014 # includes provision for doubtful TDS receivable of Rs. 582 Mn (March 31, 2014 Rs. 419 Mn) grouped under Advance tax

b) Subjudice Matters

The Company is involved in various litigations, the outcomes of which are considered probable, and in respect of which the company has made aggregate provisions of Rs. 55,205 Mn as at March 31, 2015 (March 31, 2014 Rs. 42,296 Mn). The movement of provision towards subjudice matters disclosed under other non-current assets (refer note 19) and other current liabilities (refer note 13)

(Rs. Millions)
Particulars For the year ended March 31, 2015 For the year ended March 31, 2014
Opening Balance 42,296 33,163
Additions (net) 12,909 9,133
Closing Balance 55,205 42,296

54. Details of debt covenant w.r.t. the Company’s 3G/BWA borrowings: The loan agreements with respect to 3G/BWA borrowings contains a negative pledge covenant that prevents the Company to create or allow to exit any security interest on any of its assets without prior written consent of the lenders except in certain agreed circumstances. (refer note 4)

55. During the year ended March 31, 2014, the Company has transferred co-ownership of three undersea cables having net WDV of Rs. 2,725 Mn to its wholly owned subsidiary Network i2i Limited, a company incorporated and existing under the laws of Mauritius, with the intention to aggregate certain international undersea cables under a single entity.

56. The Company has completed an independent evaluation for all international and domestic transactions for the year ended March 31, 2015 to determine whether the transactions with associated enterprises are undertaken at "arm’s length price". Based on the internal and external transfer pricing review and validation, the Company believes that all transactions with associate enterprises are undertaken on the basis of arm’s length principle.

57. The Company (M/s J T Mobiles Limited subsequently merged with the Company) was awarded license by DoT to operate cellular services in the state of Punjab in December 1995. On April 18, 1996, the Company obtained the permission from DoT to operate the Punjab license through its wholly owned subsidiary, Evergrowth

Telecom Limited (ETL). In December 1996, DoT raised argument that the permission dated April 18, 1996 has not become effective and cancelled the permission to operate, which was subsequently reinstated on March 10, 1998 (the period from April 18, 1996 to March 10, 1998 has been hereinafter referred to as ‘blackout period’). On July 15, 1999, license was terminated due to alleged non-payment of license fees, liquidated damages and related penal interest relating to blackout period.

In September 2001, in response to the demand raised by DoT, the Company had paid Rs. 4,856 Mn to DoT under protest subject to resolution of the dispute through arbitration. Consequently, the license was restored and an arbitrator was appointed for settlement of the dispute. Arbitrator awarded an unfavourable order, which was challenged by the Company before Hon’ble Delhi High Court.

On September 14, 2012, Hon’ble Delhi High court passed an order setting aside the award passed by the arbitrator. DoT in the meanwhile has preferred an Appeal, including condonation of delay in filing of appeal, which is presently pending before the Division Bench of the Delhi High Court. The Appeal of DoT on the issue of condonation of delay was allowed on July 16, 2013. However, the Company on October 30, 2013 has filed the writ Petition for recovery of License fee in Delhi High Court, notice issued by HC and listed for hearing on May 6, 2015.

58. Previous year figures have been regrouped / reclassified where necessary to conform to current year’s classification.

   

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