Together good things happen - Airtel

Joint Ventures Entity
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
P r o g r a m m e . T h e C o m p a n y h a s i n v e s t e d
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 interest of 10.00% as at March
31, 2010 (March 31, 2009: USD 2,200 thousand,
Rs 92,237 thousand, ownership interest 10.00%)
c) The following represent the Company’s share of assets
and liabilities, and income and results of the joint venture.
Particulars As at
(Rs '000)
As at
March March
31, 2010 31, 2009
(Unaudited) (Audited)
Balance Sheet
Reserve and surplus (34,390) (31,220)
Fixed assets, (net) 1,264 9,901
Investments - -
Current assets
Sundry debtors 4,940 6,711
Cash and bank 70,388 76,508
Loans and advances - -
Current liabilities
and provisions 7,161 7,154
Particulars For the year
(Rs '000)
For the year
ended March ended March
31, 2010 31, 2009
(Unaudited) (Audited)
Profit and Loss Account
Service revenue 18,445 17,244
Other income - -
Expenses
Operating expenses 13,221 14,876
Selling, general and
administration expenses 4,854 5,845
Finance expenses/(income) (754) (2,153)
Depreciation 8,582 4,536
Profit/(Loss) (7,457) (5,860)
8. During the year ended March 31, 2005 the Company
issued USD 115,000,000 Zero Coupon Convertible Bonds
due 2009 (the “FCCBs”). The FCCBs are convertible at any
time on or after June 12, 2004 (or such earlier date as is
notified to the holders of the FCCBs by the Issuer) up to April
12, 2009 by holders into fully paid equity shares with full
voting rights with a par value of Rs 10 each of the Issuer
(“Shares”) at an initial Conversion Price (as defined in the
“Terms and Conditions of the FCCBs”) of Rs 233.17 per share
with a fixed rate of exchange on conversion of
Rs 43.56 = USD 1.00. The Conversion Price is subject to
adjustment in certain circumstances.
The FCCBs could be redeemed, in whole or in part, at the
option of the Issuer at any time on or after May 12, 2007
and prior to April 12, 2009, subject to satisfaction of
certain conditions, at their “ Early Redemption Amount”
(as defined in the “Terms and Conditions of the FCCBs”) at
the date fixed for such redemption if the “Closing Price”
(as defined in the “Terms and Conditions of the FCCBs”) of
the Shares translated into U.S. dollars at the “prevailing
rate” (as defined in the “Terms and Conditions of the
FCCBs”) for each of 30 consecutive “Trading Days” (as
defined in the “Terms and Conditions of the FCCBs”), the
last of which occurs not more than five days prior to the
date upon which notice of such redemption is published,
is greater than 120 percent of the “Conversion Price” (as
defined in the “Terms and Conditions of the FCCBs”) then
in effect translated into U.S. dollars at the rate of
Rs 43.56 = USD 1.00.
The FCCBs could also be redeemed in whole, and not in
part, at any time at the option of the Issuer at their Early
Redemption Amount if less than 5 percent in aggregate
principal amount of the FCCBs originally issued is
outstanding.
The FCCBs could also be redeemed in whole, at any time at
the option of the Issuer at their Early Redemption
Amount in the event of certain changes relating to
taxation in India.
The Issuer could, at the option of any holder of any FCCBs,
repurchase at the Early Redemption Amount such FCCBs
at such time as the Shares cease to be listed or admitted to
trading on the NSE or upon the occurrence of a “Change
of Control” (as defined in the “Terms and Conditions of
the FCCBs”) in respect of the Issuer. These FCCBs were
listed in the Singapore Exchange Securities Trading
Limited (the “SGX-ST”).
During the year, the Company has converted FCCBs
equivalent to USD 350,000 into 65,385 equity shares of
the Company at the option exercised by the bond holders
which is as follows:
Date of Allotment No. of Shares Allotted FCCB Value (USD)
May 1, 2009 65,385 350,000
The balance FCCBs equivalent to USD 50,000 have been
redeemed at 111.84% of their principal amount after
completion of the statutory formalities.
As of March 31, 2010, there are no FCCBs pending for
conversion into equity shares.
9. Rs 2,823,225 thousand (March 31, 2009 Rs 3,424,931
thousand) included under Current Liabilities, represents
refundable security deposits received from subscribers on
activation of connections granted thereto and are