Airtel 2012 Annual Report Download - page 225

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BHARTI AIRTEL ANNUAL REPORT 2011-12
The derivative financial instruments disclosed in the above table represent fair values of the instrument. However, those
amounts may be settled gross or net.
• Capital management
Capital includes equity attributable to the equity holders of the Parent. The primary objective of the Group’s capital
management is to ensure that it maintains a strong credit rating and healthy capital ratios in order to support its business
and maximize shareholder value.
The Group manages its capital structure and makes adjustments to it, in light of changes in economic conditions. To
maintain or adjust the capital structure, the Group may adjust the dividend payment to shareholders, return capital to
shareholders or issue new shares.
No changes were made in the objectives, policies or processes during the year ended March 31, 2012 and March 31, 2011.
The Group monitors capital using a gearing ratio, which is net debt divided by total capital plus net debt. Net debt is
calculated as loans and borrowings less cash and cash equivalents.
Particulars As of As of
March 31, 2012 March 31, 2011
Loans & Borrowings 690,232 616,708
Less: Cash and Cash Equivalents 20,300 9,575
Net Debt 669,932 607,133
Equity 506,113 487,668
Total Capital 506,113 487,668
Capital and Net Debt 1,176,045 1,094,801
Gearing Ratio 57.0% 55.5%
38. NEW COMPANIES/OPERATIONS
a) On April 5, 2011, Airtel DTH Services Congo (RDC) S.p.r.l. had been incorporated as a wholly owned subsidiary of Bharti
Airtel DTH Holdings B.V. (a wholly-owned subsidiary of Bharti Airtel Africa B.V.).
b) On April 5, 2011, Airtel Mobile Commerce Madagascar S.A. had been incorporated as a wholly owned subsidiary of Airtel
Mobile Commerce B.V. (formerly known as Zap Mobile commerce B.V) (a wholly owned subsidiary of Bharti Airtel International
(Netherlands) B.V.). Airtel Mobile Commerce B.V. had invested ` 0.05 Mn in the newly incorporated company.
c) On April 5, 2011, Congo RDC Towers S.p.r.l. had been incorporated as a wholly owned subsidiary of Africa Towers N.V. (a
wholly owned subsidiary of Bharti Airtel International (Netherlands) B.V.).
(``
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` Millions)
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` Millions)
Particulars As of March 31, 2011
Carrying On Less than 6 to 12 1 to 2 > 2 years Total
amount Demand 6 months months years
Interest bearing borrowings* 616,708 - 80,891 25,045 131,504 461,971 699,411
Financial derivatives 468 - 260 57 104 47 468
Other liabilities 13,856 - - - 3,294 10,562 13,856
Trade and other payables 239,684 - 239,684 - - - 239,684
870,716 - 320,835 25,102 134,902 472,580 953,419
* Includes contractual interest payment based on interest rate prevailing at the end of the reporting period, over the tenor of the borrowings.