Together good things happen - Airtel

Joint Venture Entities:
b) The Company entered into a Joint Venture with 9 other
overseas mobile operators to form a regional alliance
called the Bridge Mobile Alliance incorporated in
Singapore as Bridge Mobile Pte Limited. The principal
activity of the venture is creating and developing regional
mobile services and managing the Bridge Mobile Alliance
Programme. The Group has invested USD 2,200
thousand, amounting to Rs 92,237 thousand, in 2,200
thousand ordinary shares of USD 1 each which is
equivalent to an ownership of 10.00% as at March 31,
2010 (March 31, 2009: USD 2,200 thousands Rs 92,237
thousand, ownership interest 10.00%)
c) Bharti Infratel Limited has entered into a joint venture
agreement on December 8, 2007 with Vodafone Essar
Limited and Idea Cellular Limited to form an independent
tower company (“Indus Towers Limited”) to provide
passive infrastructure services in 16 circles of India.
The Company and Vodafone Essar Limited holds 42%
each in the Indus Tower Limited and the balance 16% is
being held by Aditya Birla Telecom Limited. For this
purpose Bharti Infratel Ventures Limited has been
incorporated as a wholly owned subsidiary of Bharti
Infratel Limited wherein relevant assets are to be
transferred for ultimate merger in the Indus Towers
Limited. Pursuant to the aforesaid agreement,
Bharti Infratel Limited has acquired 50,000 equity shares
of Rs 10 each in Indus Towers Limited on December 17,
2007 for an aggregate value of Rs. 500 thousand.
d) Bharti Airtel Services Limited ('BASL') entered into a Joint
Venture with 6 other parties to form an aircraft chartering
company called the Forum I Aviation Limited
incorporated in India. The principal activity of the venture
is operating aircrafts on charter basis. BASL has invested
in 4,550 thousand ordinary shares of Rs 10 each
amounting to Rs 45,500 thousand along with other
partners, which is equivalent to an ownership interest of
14.28% as at March 31, 2010. (March 31, 2009:
Rs 45,500 thousand, ownership interest 14.28%)
e) The following represent the Group’s share of assets and
liabilities, and income and results of the joint ventures
before elimination of transactions between joint ventures
and the Company to the extent of its proportionate share
Balance Sheet
(Rs '000)
Reserve and surplus (439,214) (764,174)
Fixed assets, (net) 41,548,641 28,252,977
Investments 322,876 2,824
Deferred Tax Assets 212,274 376,982
Current assets
Sundry debtors 10,704,112 4,569,743
Cash and bank 279,109 2,041,987
Loans and advances 3,970,114 5,604,738
Current liabilities
and provisions 16,567,472 18,117,789
Unsecured Loans 5,783,090 15,562,449
Secured Loans 34,918,083 7,770,000
Profit and Loss Account
(Rs '000)
Service revenue 36,858,081 8,946,430
Other income 39,218 41,263
Expenses
Operating expenses 28,296,551 7,894,247
Selling, general and
Bharti Airtel Annual Report 2009-10
which are included in the Balance Sheet and Profit and
Loss Account respectively.
Particulars As at
As at
March 31, 2010 March31, 2009
Particulars For the year For the year
ended March ended March
31, 2010 31, 2009
administration expenses 552,049 210,135
Finance expenses/(income) 3,468,256 1,051,728
Depreciation 4,095,061 925,915
Charity and Donation 1 221
Deferred Tax expense/(income) 164,708 (376,982)
Fringe Benefit Tax - 6,198
Profit/(Loss) 320,673 (723,769)
Contingent Liability 86,204 165
Capital Commitment 2,604,389 10,160,782
The above includes Total Assets of Rs 192,273 thousand,
Revenue of Rs 57,647 thousand and Profit of Rs 2,387
thousand with respect to certain Joint ventures based on
unaudited financial statements of these Companies.
f) Loss of Associate Companies of Rs 48,283 thousand is
based on unaudited financial statement of these
companies.
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