Together good things happen - Airtel

ecognised as an expense in the year in which they are
incurred.
17.IMPAIRMENT OF ASSETS
The carrying amounts of assets are reviewed at each balance
sheet date. Assets that are subject to amortization are
reviewed for impairment whenever events or changes in
circumstances indicate that the carrying amount may not be
recoverable An impairment loss is recognised for the
amount by which the assets’ carrying amount exceeds its
recoverable amount. The recoverable amount is higher of
the assets’ fair value less cost to sell and value in use.
For the purpose of assessing impairment, assets are
grouped at the lowest levels for which there are separately
identifiable cash flows (cash generating units).
18.SEGMENTAL REPORTING
a) Primary Segment
The Group operates in four primary business
segments viz. Mobile Services, Telemedia Services,
Enterprise Services (Erstwhile Enterprises Services
‘Carrier’ and Enterprise Services ‘Corporate’) and
Passive Infrastructure Services.
b) Secondary Segment
The Group has operations within India as well as in
other countries through entities located outside India.
The operations in India constitute the major part,
which is the only reportable segment, the remaining
portion being attributable to others.
19.EARNINGS PER SHARE
The earnings considered in ascertaining the Group’s
Earnings per Share (‘EPS’) comprise the net profit after tax.
The number of shares used in computing basic EPS is the
weighted average number of shares outstanding during the
period/ year. The weighted average number of equity shares
outstanding during the year is adjusted for the events of
share splits/bonus issue post period end and, accordingly,
the EPS is restated for all periods presented in these financial
statements. The diluted EPS is calculated on the same basis
as basic EPS, after adjusting for the effects of potential
dilutive equity shares unless impact is anti dilutive.
The weighted average number of equity shares
outstanding during the period are adjusted for events of
bonus issue; bonus element in a rights issue to the existing
shareholders; share split; and reverse share split
(consolidation of shares).
20.WARRANTY & ASSET RETIREMENT OBLIGATIONS (ARO)
Provision for Warranty and ARO is based on past
experience and technical estimates.
21.PROVISIONS
Provisions are recognised when the Group has a present
obligation as a result of past event; it is more likely than
not that an outflow of resources will be required to settle
the obligation, in respect of which a reliable estimate can
be made. 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
are reviewed at each balance sheet date and adjusted to
reflect the current best estimates.
22.EMPLOYEE STOCK OPTIONS OUTSTANDING
Employee Stock options outstanding are valued using
Black Scholes /Lattice valuation option – pricing model
and the fair value is recognised as an expense over the
period in which the options vest.
23.CASH AND CASH EQUIVALENTS
Cash and Cash equivalents in the Balance Sheet comprise
of cash in hand and at bank and short-term investments.