Airtel 2011 Annual Report Download - page 143

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Purchase of services – included primarily billing for
broadband, international long distance services, management
service charges, billing for passive infrastructure services and
maintenance charges towards network equipments.
Payments made to key management personnel/non-executive
directors were as follows:
Year ended
March 31,
2011
March 31,
2010
Short-Term Employee benefits 356 303
Post-Employment benefits 16 11
Other Long-Term Employee benefits* - -
Share-based payment** 221 34
593 348
*As the liabilities for gratuity and leave encashment are provided on
actuarial basis for the Company as a whole, the amounts pertaining to
directors are not included above.
**It represents fair value of options granted during the year which has
been considered for amortisation over the vesting periods.
35. Operating Segment
The Group, over the last year has expanded its foot print
through acquisition of Warid Telecom and Zain Africa BV,
wireless telecommunication service provider having operations
spread over Bangladesh and Africa continent.
The Group’s operating segments are organised and managed
separately through the respective business managers, according
to the nature of products and services provided, with each
segment representing a strategic business unit. These business
units are reviewed by the Chairman and Managing Director of
the Group (Chief operating decision maker).
Mobile Services: These services cover voice and data telecom
services provided through GSM technology in the geographies
of India & South Asia (SA) and Africa. This also includes
the captive national long distance networks which primarily
provide connectivity to the mobile services business in India.
Telemedia Services: These services provided under the
segment include voice and data communications based on
fixed network and broadband technology. This also includes
the sale of terminal equipment and the hardware. The services
are offered to retail and small business customers.
Enterprise Services: These services cover domestic and
international long distance services and internet and broadband
services. Long distance services are intermediary services
provided to the non-group international/domestic telecom
service providers. Internet and broadband services are used to
provide bandwidth and other network solutions to corporate
customers.
Passive Infrastructure Services: These services include setting
up, operating and maintaining wireless communication towers,
providing network development services and to engage in
video, voice, data and internet transmission business in and out
of India.
Others: These comprise corporate headquarters’ expenses
in India which are not charged to individual business and
geographical segments. Further, these costs also include
corporate headquarter costs of the Company’s Africa operations.
Others also include revenue, profits/losses, assets and liabilities
of Direct to Home Services in India.
The measurement principles for segment reporting are based
on IFRSs adopted in the consolidated financial statements.
Segment’s performance is evaluated based on operating revenue
and profit or loss from operations (EBIT).
Operating revenues and expenses related to both third party
and inter-segment transactions are included in determining the
operating earnings of each respective segment. Segment result
is computed as operating income (including “other income”) less
non-operating expenses. Re-branding expenditure pertaining to
the acquired businesses are included under the related business
segment and other re-branding expenditure are included
under the ‘Others’ segment. Finance income earned, finance
expense incurred and income tax expenses are not allocated
to individual segment and the same has been reflected at the
Group level for segment reporting.
Inter segment revenue are accounted for on terms established
by the management on arm’s length basis. Inter segment pricing
and terms are reviewed and changed by the management to
reflect changes in market conditions and changes to such
terms are reflected in the period the change occurs. Segment
information prior to the change in terms is not restated. These
transactions have been eliminated on consolidation.
The total assets disclosed for each segment represent assets
directly managed by each segment, and primarily include
receivables, property, plant and equipment, intangibles,
inventories, operating cash and bank balances. Corporate
held assets managed at the corporate level not allocated to the
segments include deferred tax asset and derivative financial
instruments.
Segment liabilities comprise operating liabilities and exclude
borrowings, provision for taxes, deferred tax liabilities and
derivative financial instruments.
Segment capital expenditures comprise additions to property,
plant and equipment and intangible assets (net of rebates,
where applicable).