Together good things happen - Airtel

ecognised over the period of service net of service tax and
entertainment tax.
Pay per view revenue is recognised when the event is
viewed.
For Other Services, Revenue is recognised on the
completion of Provision of Services.
Investing and other Activities
Income on account of interest and other activities are
recognised on an accrual basis. Dividends are accounted
for when the right to receive the payment is established.
Provision for doubtful debts
The Group provides for amount outstanding for more than
90 days in case of active subscribers, roaming receivables
and for entire outstanding from deactivated customers, net
off security deposits, or in specific cases where
management is of the view that the amount from certain
customers are not recoverable.
The group provides for receivables outstanding for more
than 105 days for site sharing debtors for passive
infrastructure.
For receivables due from the other operators on account
of their National Long Distance (NLD) and International
Long Distance (ILD) traffic and Interconnect Usage
charges (IUC), the Group provides for amount
outstanding for more than 120 days from the date of
billing, net of any amount payable to the operators, or in
specific cases where management is of the view that the
amounts from the operators are not recoverable.
Accrued Billing revenue
Accrued billing revenue represents revenue recognised in
respect of Mobile, Broadband and Telephone, and Long
Distance services provided from the bill cycle date to the
end of each month. These are billed in subsequent periods
as per the terms of the billing plans.
7. INVENTORY
Inventory is valued at the lower of cost and net realisable
value. Cost is determined on First in First out basis. Net
realizable value is the estimated selling price in the
ordinary course of business 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.
8. INVESTMENTS
Current Investments are valued at lower of cost and fair
market value determined on individual basis.
Long term Investments are valued at cost. Provision is
made for diminution in value to recognise a decline, if any,
other than that of temporary nature.
9. LICENCE FEES – REVENUE SHARE
With effect from August 1, 1999, the variable Licence fee
computed at prescribed rates of revenue share is charged
to the Profit and Loss Account in the period in which the
related revenues are recognised. Revenue for this purpose
is defined as adjusted gross revenue as per the respective
license agreements.
10.FOREIGN CURRENCY TRANSLATION, ACCOUNTING FOR
FORWARD CONTRACTS & DERIVATIVES
Initial Recognition
Foreign currency transactions are recorded in the
reporting currency, by applying to the foreign currency
amount the exchange rate between the reporting
currency and the foreign currency at the date of the
transaction
Conversion
Foreign currency monetary items are reported using the
closing rate. Non-monetary items which are carried in
terms of historical cost denominated in a foreign currency
are reported using the exchange rate at the date of the
transaction; and non-monetary items which are carried at
fair value or other similar valuation denominated in a
foreign currency are reported using the exchange rates
that existed when the values were determined.
Exchange Differences
Bharti Airtel Annual Report 2009-10
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 period/year, or reported
in previous financial statements, are recognised as income
or as expenses in the period/year in which they arise as
mentioned below.
Forward Exchange Contracts covered under AS 11,
‘The Effects of Changes in Foreign Exchange Rates’
Exchange differences on forward exchange contracts &
plain vanilla currency options for establishing the amount
of reporting currency and not intended for trading &
speculation purposes, are recognised in the Profit & Loss
account in the year in which the exchange rate changes.
The premium or discount arising at the inception of
forward exchange contracts is amortised as expense or
income over the life of the contract. Any profit or loss
arising on cancellation or renewal of such forward
exchange contract is recognised as income or expense for
the year.
Exchange difference on forward contracts which are
taken to establish the amount other than the reporting
currency arising due to the difference between forward
rate available at the reporting date for the remaining
maturity period and the contracted forward rate (or the
forward rate last used to measure a gain or loss on the
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