Together good things happen - Airtel

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
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