Airtel 2012 Annual Report Download - page 182

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BHARTI AIRTEL ANNUAL REPORT 2011-12
From the date of acquisition, Telecom Seychelles Limited has contributed revenue of ` 416 Mn and profit before tax of ` 176 Mn
to the consolidated revenue and net profit before tax of the Group, respectively, for the year ended March 31, 2011.
The details of receivables acquired through business combination are as follows;
As determined as of date of acquisition, Fair Value Gross Contractual Best estimate of amount
March 31, 2011 and August 26, 2011 amount of Receivable not expected to be collected
Accounts Receivable 212 212 -
Analysis of cash flows on acquisition
Cash consideration paid 2,903
Net cash acquired with the subsidiary (53)
Investment in subsidiary, net of cash acquired (A) 2,850
(included in cash flows from investing activities)
Transaction costs of the acquisition (included in cash flows from operating activities)
- for the year ended March 31, 2011 (B) Nil
Total in respect of business combinations (A+B) 2,850
d)d)
d)d)
d) Total consolidated revenue of the Group and its joint ventures and net profit before tax of the Group, its joint ventures
and associates would have been ` 623,477 Mn and ` 74,084 Mn respectively, had all the acquisitions been effective for the
full year ended March 31, 2011.
e) Acquisition of additional interest in Celtel Zambia Plc
On December 17, 2010, the Group acquired 17.47% of the voting shares of Celtel Zambia Plc increasing its ownership to
96.36%. A cash consideration of ` 5,601 Mn was paid to the non-controlling interest shareholders. The carrying value of
the net assets of Celtel Zambia Plc (excluding Goodwill on the original acquisition) at this date was ` 8,479 Mn and the
carrying value of the additional interest acquired was ` 1,481 Mn. The difference of ` 4,120 Mn between the consideration
and the carrying value of the interest acquired has been recognized in ‘Other components of equity’.
On completion of the fair value allocation to the identifiable assets (tangible and intangible) and liabilities of Zain Africa
B.V. (Refer note 7(a)), the consequential decrease of ` 193 Mn in the carrying value of interest acquired in Celtel Zambia
Plc has been recognized in ‘Other components of equity’ during the period.
f) Acquisition of additional interest in Airtel Networks Kenya Limited
On February 24, 2011, the Group acquired 5% of the voting shares of Airtel Networks Kenya Limited increasing its ownership
to 100%. A cash consideration of ` 503 Mn was paid to the non-controlling interest shareholders. The carrying value of the
net assets of Airtel Networks Kenya Limited (excluding Goodwill on the original acquisition) at this date was ` 662 Mn and
the carrying value of the additional interest acquired was ` 33 Mn. The difference of ` 470 Mn between the consideration
and the carrying value of the interest acquired has been recognized in ‘Other components of equity’.
On completion of the fair value allocation to the identifiable assets (tangible and intangible) and liabilities of Zain Africa
B.V. (Refer note 7(a)), the consequential increase of ` 93 Mn in the carrying value of interest acquired in Airtel Networks
Kenya Limited has been recognized in ‘Other components of equity’ during the period.
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