Together good things happen - Airtel
Together good things happen - Airtel Together good things happen - Airtel
STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31, 2010 SCHEDULE : 21 The significant accounting policies adopted by Bharti Airtel Limited (‘Bharti Airtel’ or the Company) and its subsidiaries, joint ventures, and associates (hereinafter referred to as the “Group”) in respect of these Consolidated Financial Statements, are set out below. 1. BASIS OF PREPARATION These consolidated financial statements have been prepared to comply in all material respects with notified accounting standards by Companies (Accounting Standards) Rules, 2006, (‘as amended’) and the relevant provisions of the Companies Act, 1956 to reflect the financial position and the results of operations of the Group. These consolidated financial statements are prepared under the historical cost convention on the accrual basis of accounting and reporting requirements of Accounting Standard (‘AS’) 21 ‘Consolidated Financial Statements’, AS-23 ‘Accounting for Investments in Associates in Consolidated Financial Statements’ and AS-27, Financial Reporting of Interests in Joint Ventures notified under Companies (Accounting Standards) Rules, 2006, (‘as amended’) and consolidated as per Para 2 below for the year ended March 31, 2010. The accounting policies have been consistently applied by the Group and are consistent with those used in the previous year. 2. PRINCIPLES OF CONSOLIDATION These accounts represent consolidated accounts of the Group and its majority owned subsidiaries, joint ventures and Investment in associates as follows: Entity Country of Principal Service Relationship Shareholding as Incorporation at March 31, 2010 Bharti Airtel (Singapore) Singapore International calling services and Subsidiary 100% Private Limited wholesale switching data products Bharti Airtel Lanka (Pvt) Limited Sri Lanka Mobile Services Subsidiary 100% Network i2i Limited Mauritius Submarine Cable System Subsidiary 100% Bharti Airtel Holdings Singapore Investments Subsidiary 100% (Singapore) Pte Limited Bharti Infratel Limited (Infratel) India Passive Infrastructure for Mobile Services Subsidiary 86.09% Bharti Airtel (Canada) Limited Canada International calling services and Subsidiary 100% wholesale switching data products Bharti Hexacom Limited India Cellular Mobile and Broadband Subsidiary 70% (‘BHL’) and fixed Telephone Services Bharti Airtel Services India Manpower support to Bharti Airtel Subsidiary 100% Limited (‘BASL’) (erstwhile and VSAT equipment trading Bharti Comtel Limited) Bridge Mobile Pte Limited Singapore Mobile Services Joint Venture 10.00% Forum I Aviation Limited India Buy, sell, lease, hire, maintain, operate Joint Venture of Bharti 14.28% and run Aircrafts / Helicopters etc. Airtel Services Limited Bharti Telemedia Limited India Direct- to - Home Services Subsidiary 95% (‘BTML’) [Refer Note 2 (c) on Schedule 22] Bharti Airtel (USA) Limited United States International calling services and Subsidiary 100% of America wholesale switching data products Bharti Airtel (UK) Limited United Kingdom International calling services and Subsidiary 100% wholesale switching data products Bharti Airtel (Hong Kong) Hong Kong International calling services and Subsidiary 100% Limited wholesale switching data products Indus Towers Limited India Passive Infrastructure Services Joint Venture of 42%* (Indus) Bharti Infratel Limited
Bharti Airtel Annual Report 2009-10 Entity Country of Principal Service Relationship Shareholding as Incorporation at March 31, 2010 Bharti Infratel Lanka Sri Lanka Passive Infrastructure Services Subsidiary of 100% Private Limited a Subsidiary Bharti Infratel India Passive Infrastructure Services Subsidiary of 100%* Ventures Limited Bharti Infratel Limited Bharti Teleports Limited India Uplinking Channels for Broadcaster Associate 49% Alcatel Lucent Network India Telecommunication network Associate 26% Management Services operations and transformation services India Limited Bharti International Singapore Investments Subsidiary 100% # (Singapore) Pte. Ltd Warid Telecom International Ltd Bangladesh Mobile Services Subsidiary 70% # Bharti Airtel International Netherland Investments Subsidiary 100% @ (Netherlands) B.V. * Represents holding of Bharti Infratel Limited # Represents holding of Bharti Airtel Holdings (Singapore) Pte Limited. @ Represents holding of Bharti International (Singapore) Pte Limited. a) For the purpose of this consolidation, jointly owned entities, where Bharti Airtel or its subsidiaries own directly or indirectly more than 50 percent of voting rights of a Company’s share capital, have been accounted for as subsidiaries. b) The equity and net income attributable to minority shareholders’ interest are shown separately in the Balance Sheet and Profit and Loss Account, respectively. Reserves arising on dilution of equity in a subsidiary company is shown separately as ‘Reserve arising on dilution of Equity in Subsidiary Company’ under the head ‘Reserves and Surplus’. c) The Group’s interests in jointly controlled entities are accounted for by proportionate consolidation. The Group combines its share of the joint ventures’ individual income and expenses, assets and liabilities and cash flows on a line-by-line basis with similar items in the Group’s financial statements. d) The Group’s interests in Associates are accounted for using equity method in accordance with Accounting Standard (AS) 23 - “Accounting for investments in associates in consolidated financial statements”. e) Inter-Company balances have been eliminated in the consolidation. The consolidated financial statements are prepared using uniform accounting policies for like transactions and other events in similar circumstances.. 3. GOODWILL Goodwill is stated as an excess of the purchase consideration over Bharti Airtel’s interest in the net identifiable assets acquired. Goodwill is carried at cost less accumulated amortisation and is amortised on a straight-line basis over the remaining period of the service licence of the acquired Company. In case the acquired company does not have a Licence, Goodwill is amortised over 10 year period from the date of acquisition. 4. FIXED ASSETS Fixed Assets are stated at cost of acquisition and subsequent improvements thereto, including taxes & duties (net of cenvat credit), freight and other incidental expenses related to acquisition and installation. Capital work-in-progress is stated at cost. Site restoration cost obligations are capitalised when it is probable that an outflow of resources will be required to settle the obligation and a reliable estimate of the amount can be made. The intangible component of license fee payable by the Group for cellular and basic circles, upon migration to the National Telecom Policy (NTP 1999), i.e. Entry Fee, has been capitalised as an asset and the one time license fee paid by the Group for acquiring new licences (post NTP- 99) (basic, cellular, national long distance and international long distance services) has been capitalised as an intangible asset. 5. DEPRECIATION / AMORTISATION Depreciation on fixed assets is provided on the straightline method based on useful lives of respective assets as estimated by the management or at the rates prescribed under schedule XIV of the Companies Act, 1956, whichever is higher. Leasehold land is amortised over the period of lease. The leasehold improvements are amortised over the remaining period of lease or the useful 129
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STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR<br />
ENDED MARCH 31, 2010<br />
SCHEDULE : 21<br />
The significant accounting policies adopted by Bharti <strong>Airtel</strong> Limited (‘Bharti <strong>Airtel</strong>’ or the Company) and its subsidiaries, joint<br />
ventures, and associates (hereinafter referred to as the “Group”) in respect of these Consolidated Financial Statements, are set<br />
out below.<br />
1. BASIS OF PREPARATION<br />
These consolidated financial statements have been prepared to comply in all material respects with notified accounting<br />
standards by Companies (Accounting Standards) Rules, 2006, (‘as amended’) and the relevant provisions of the Companies<br />
Act, 1956 to reflect the financial position and the results of operations of the Group. These consolidated financial statements<br />
are prepared under the historical cost convention on the accrual basis of accounting and reporting requirements of<br />
Accounting Standard (‘AS’) 21 ‘Consolidated Financial Statements’, AS-23 ‘Accounting for Investments in Associates in<br />
Consolidated Financial Statements’ and AS-27, Financial Reporting of Interests in Joint Ventures notified under Companies<br />
(Accounting Standards) Rules, 2006, (‘as amended’) and consolidated as per Para 2 below for the year ended March 31,<br />
2010. The accounting policies have been consistently applied by the Group and are consistent with those used in the<br />
previous year.<br />
2. PRINCIPLES OF CONSOLIDATION<br />
These accounts represent consolidated accounts of the Group and its majority owned subsidiaries, joint ventures and<br />
Investment in associates as follows:<br />
Entity Country of Principal Service Relationship Shareholding as<br />
Incorporation at March 31, 2010<br />
Bharti <strong>Airtel</strong> (Singapore) Singapore International calling services and Subsidiary 100%<br />
Private Limited wholesale switching data products<br />
Bharti <strong>Airtel</strong> Lanka (Pvt) Limited Sri Lanka Mobile Services Subsidiary 100%<br />
Network i2i Limited Mauritius Submarine Cable System Subsidiary 100%<br />
Bharti <strong>Airtel</strong> Holdings Singapore Investments Subsidiary 100%<br />
(Singapore) Pte Limited<br />
Bharti Infratel Limited (Infratel) India Passive Infrastructure for Mobile Services Subsidiary 86.09%<br />
Bharti <strong>Airtel</strong> (Canada) Limited Canada International calling services and Subsidiary 100%<br />
wholesale switching data products<br />
Bharti Hexacom Limited India Cellular Mobile and Broadband Subsidiary 70%<br />
(‘BHL’) and fixed Telephone Services<br />
Bharti <strong>Airtel</strong> Services India Manpower support to Bharti <strong>Airtel</strong> Subsidiary 100%<br />
Limited (‘BASL’) (erstwhile and VSAT equipment trading<br />
Bharti Comtel Limited)<br />
Bridge Mobile Pte Limited Singapore Mobile Services Joint Venture 10.00%<br />
Forum I Aviation Limited India Buy, sell, lease, hire, maintain, operate Joint Venture of Bharti 14.28%<br />
and run Aircrafts / Helicopters etc. <strong>Airtel</strong> Services Limited<br />
Bharti Telemedia Limited India Direct- to - Home Services Subsidiary 95%<br />
(‘BTML’) [Refer Note 2<br />
(c) on Schedule 22]<br />
Bharti <strong>Airtel</strong> (USA) Limited United States International calling services and Subsidiary 100%<br />
of America wholesale switching data products<br />
Bharti <strong>Airtel</strong> (UK) Limited United Kingdom International calling services and Subsidiary 100%<br />
wholesale switching data products<br />
Bharti <strong>Airtel</strong> (Hong Kong) Hong Kong International calling services and Subsidiary 100%<br />
Limited wholesale switching data products<br />
Indus Towers Limited India Passive Infrastructure Services Joint Venture of 42%*<br />
(Indus) Bharti Infratel Limited
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