Airtel 2013 Annual Report Download - page 185

Consolidated Financial Statements 183
Notes to consolidated financial statements
(` Millions)
Particulars
As determined as of
March 31, 2011, and
August 26, 2011
As determined
on the date of
acquisition
Liabilities assumed
Non current liabilities (66) (66)
Current liabilities (283) (377)
Net identifiable assets (B) 302 208
Non controling interest (C) - -
Goodwill (A-B+C) 2,601 2,695
None of the goodwill recognised is deductible for income tax purposes.
The details of receivables acquired through business combination are as follows:
(` Millions)
As determined as of date of acquisition,
March 31, 2011 and August 26, 2011
Fair Value Gross Contractual
amount of
Receivable
Best estimate of
amount not expected to
be collected
Accounts Receivable 212 212 -
Analysis of cash flows on acquisition
(` Millions)
Particulars Year ended
March 31, 2011
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) 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
` 803,112 Mn and ` 49,429 Mn respectively, had all
the acquisitions been effective for the full year ended
March 31, 2013.
e) Dilution of Shareholding in Bharti Infratel Limited
During the year ended March 31, 2013, Bharti
Infratel Limited (BIL), a subsidiary of the Company,
made an Initial Public Offering (IPO) through book
building process of 188,900,000 equity shares of
` 10 each. The IPO comprised of fresh issue of
146,234,112 equity shares of ` 10 each by BIL and
an offer for sale of 42,665,888 equity shares of ` 10
each by the existing shareholders. BIL has raised
` 32,303 Mn from fresh issue of shares and incurred
related share issue expenses of ` 579 Mn (deferred
tax of ` 185 Mn has been recognised on the same).
BIL’s equity shares got listed on December 28, 2012
on both the Stock Exchanges (BSE & NSE).
Post the issue, the holding of the Company in BIL
has reduced from 86.09% to 79.42%. The equity
shares were allotted on December 22, 2012. On
the date of allotment, the carrying amounts of
the controlling and non-controlling interests
have been adjusted to reflect the changes in their
relative interests in BIL. Consequently, the dilution
gain of ` 16,649 Mn has been recognised directly in
equity as attributable to the equity shareholders of
the Parent.