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lives of assets, whichever is shorter. Depreciation rates<br />
adopted by the Company are as follows:<br />
Useful lives<br />
Leasehold Land Period of lease<br />
Building 20 years<br />
Building on Leased Land 20 years or period of<br />
lease, whichever is lower<br />
Leasehold Improvements Period of lease or 10 years,<br />
whichever is lower<br />
Plant & Machinery 3 to 20 years<br />
Computer & Software 3 years/ 5 years<br />
Office Equipment 2 years/5 years<br />
Furniture and Fixtures 5 years<br />
Vehicles 5 years<br />
Customer Premises Equipment Over Estimated Subscriber Life<br />
Software up to Rs 500 thousand is written off in the<br />
financial year placed in service.<br />
Bandwidth capacity is amortised on straight line basis<br />
over the period of the agreement subject to a maximum of<br />
18 years.<br />
The Entry Fee capitalised is amortised over the period of<br />
the license and the one time licence fee is amortised over<br />
the balance period of licence from the date of<br />
commencement of commercial operations.<br />
The site restoration cost obligation capitalised is<br />
depreciated over the period of the useful life of the related<br />
asset, or balance lease period as applicable.<br />
Fixed Assets costing upto Rs 5 thousand are being fully<br />
depreciated within one year from the date of acquisition,<br />
other than Customer Premises Equipments which are<br />
depreciated over the estimated subscriber life.<br />
6. REVENUE RECOGNITION AND RECEIVABLES<br />
Mobile Services<br />
Service revenue is recognised on completion of provision<br />
of services. Service revenue includes income on roaming<br />
commission and an access charges recovered from other<br />
operators, and is net of discounts and waivers. Revenue,<br />
net of discount, from sale of <strong>good</strong>s is recognised on<br />
transfer of all significant risks and rewards to the<br />
customer and when no significant uncertainty exists<br />
regarding realisation of consideration.<br />
Processing fees on recharge is being recognised over the<br />
estimated customer relationship period or voucher<br />
validity period, as applicable.<br />
Revenue from prepaid calling cards packs is recognised on<br />
the actual usage basis.<br />
Telemedia Services (Erstwhile Broadband & Telephone<br />
Services)<br />
Service revenue is recognised on completion of provision<br />
of services. Revenue, net of discount, from sale of <strong>good</strong>s is<br />
recognised on transfer of all significant risks and rewards to<br />
the customer and when no significant uncertainty exists<br />
regarding realisation of consideration. Service Revenue<br />
includes access charges recovered from other operators,<br />
and is net of discounts and waivers.<br />
Enterprise Services (Erstwhile Enterprise Services –<br />
Carrier Segment and Enterprise Services - Corporate<br />
Segment)<br />
Revenue, net of discount, from sale of <strong>good</strong>s is recognised<br />
on transfer of all significant risks and rewards to the<br />
customer and when no significant uncertainty exists<br />
regarding realisation of consideration. Revenue on<br />
account of bandwidth service is recognised on time<br />
proportion basis in accordance with the related contracts.<br />
Service Revenues includes access charges recovered<br />
from other operators, revenues from registration,<br />
installation and provision of Internet and Satellite<br />
services. Registration fees is recognised at the time of<br />
dispatch and invoicing of Start up Kits. Installation<br />
charges are recognised as revenue on satisfactory<br />
completion of installation of hardware and service<br />
revenue is recognised from the date of satisfactory<br />
installation of equipment and software at the customer<br />
site and provisioning of Internet and Satellite services.<br />
Passive Infrastructure Services<br />
Service income includes revenue from use of sites/assets<br />
and reimbursement of energy charges, rent, security and<br />
maintenance charges. Revenue for use of sites is<br />
recognised as and when the services are rendered. If the<br />
payment terms in the service agreements include fixed<br />
escalations, the effect of such increase is recognised on<br />
straight line basis over the fixed, non-cancellable term of<br />
the agreement, as applicable.<br />
Others<br />
Service revenue is recognised on completion of provision<br />
of services and on transfer of all significant risks and<br />
rewards to the customers and when no significant<br />
uncertainty exists regarding realisation of the<br />
consideration.<br />
Activation Income<br />
Activation revenue and related direct activation costs, not<br />
exceeding the activation revenue, are deferred and<br />
amortised over the related estimated customers<br />
relationship period, as derived from the estimated<br />
customer churn period.<br />
Subscription Revenue & Other Services<br />
Subscription revenue from DTH subscription services is
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