Together good things happen - Airtel

13. Particulars of securities charged against secured loans taken by the Group are as follows:
Particulars Amount
Outstanding
(Rs ’000)
11.70%, 50 Non-convertible
Redeemable Debentures of
Rs. 10,000 thousand each 375,000
balance repayment commencing
from June, 2010
Loan from Bank 6,000,000
Loan from Banks and
Others (Loan taken by 34,860,000
Indus Tower Limited)
Vehicle Loan From Bank 119,972
Loan from Banks 57,692
Loan from Banks (Loan
taken by Warid Telecom
International Limited) 8,171,658
Total 49,584,322
Security charges
Note: Following shall be excluded from Securities as mentioned above:
a) Intellectual properties of Bharti Airtel
b) Investment in subsidiaries of Bharti Airtel
c) Licenses issued by DoT to the Company provide various telecom services
14. The movement of provision made for site restoration cost
and warranty charges in accordance with AS–29 ‘Provisions,
Contingent Liabilities and Contingent Assets’ notified under
Companies (Accounting Standards) Rules, 2006, (‘As
amended’) is given below:
i) Site Restoration Cost:
(Rs '000)
Particulars For the year For the year
ended March ended March
31, 2010 31, 2009
Opening Balance 10,559,153 5,801,180
Addition during the year 1,362,554 4,757,973
Adjustment during the year* (5,826,701) -
Closing Balance 6,095,006 10,559,153
*The Group has revised its estimates of provision for Asset Retirement
Bharti Airtel Annual Report 2009-10
• First ranking pari passu charge on all present and future tangible movable and freehold immovable assets
owned by Bharti Airtel Limited including plant and machinery, office equipment, furniture and fixtures fittings,
spares tools and accessories
• All rights, titles, interests in the accounts, and monies deposited and investments made there from and in
project documents, book debts and insurance policies
• First ranking pari passu charge amongst the senior secured creditors and second rank pari passu amongst the
second secured credtiors on all present and future tangible movable and immovable assets (excluding land)
owned by Bharti Infratel Limited including plant and machinery, office equipment, furniture and fixtures, spares
tools and accessories.
(i) a mortgage and first charge of all the Borrower's freehold immovable properties, present and future;
(ii) a first charge by way of hypothecation of the Borrower’s entire movable plant and machinery, including Tower
assets, related equipment and spares, tools and accessories, furniture, fixtures, vehicles and all other movable
assets, present and future;
(iii) a charge on Borrower’s cashflows, receivables, book debts, revenues of whatsoever nature and wherever
arising, present and future subject to prior charge in favour of working capital facilities with working capital
limits not exceeding Rs. 10,000 Million (amount in absolute figures) including funded facilities not exceeding
Rs. 5,000 Million (amount in absolute figures);
(iv) an assignment and first charge of (a) all the rights, title, interest, benefits, claims and demands whatsoever of the
Borrower in the documents related to telecom tower rollout and upgradation of existing towers (except the Master
Services Agreement), duly acknowledged and consented to by the relevant counter-parties to such documents, all
as amended, varied or supplemented from time to time; (b) subject to Applicable Law, all the rights, title, interest,
benefits, claims and demands whatsoever of the Borrower in the Clearances and (c) all the rights, title, interest,
benefits, claims and demands whatsoever of the Borrower in any letter of credit, guarantee, performance bond,
corporate guarantee, bank guarantee provided by any party to the documents related to;
(v) a first charge of all the rights, title, interest, benefits, claims and demands whatsoever of the Borrower in the Master
Services Agreements together with the Service Contracts, all as amended, varied or supplemented from time to time;
(vi) first charge on debt service reserve (DSR) of an amount equal to the aggregate principal amount of the Loan
along with interest required to be repaid in one quarter be created immediately upon an Event of default and
maintained to secure a payment default, in case an Event of default occurs and is continuing or failure to
maintain any of the Financial Covenants as mentioned in the relevant loan agreement.
Secured by Hypothecation of Vehicles of the related Companies in the Group
Secured by way of first and specific charge on aircraft puchased by Forum I Aviation Limited
(i) First-ranking pari passu fixed charge over listed machinery and equipment of the Company;
(ii) First-ranking pari passu floating charge over plant, machinery and equipment, both present and future,
excluding machinery and equipment covered by way of fixed charge; and a first-ranking pari passu floating
charge over all current assets of the Company, both present and future, including but not limited to stock, book
debts, receivables and accounts of the Company, entered into or to be entered into by the Company;
Obligation (ARO) and consequently reversed provision amounting to
Rs 5,826,701 thousand with corresponding reduction in gross block
of assets. The change in estimates resulted in lower depreciation and
higher profit before tax by Rs 269,591 thousand for the year ended
March 31, 2010.
ii) Warranty Charges:
(Rs '000)
Particulars For the year For the year
ended March ended March
31, 2010 31, 2009
Opening Balance 3,058 7,528
Addition during the year
Less: Utilised / reversed
2,496 9,989
during the year 1,266 14,459
Closing Balance 4,288 3,058
143