Airtel 2014 Annual Report Download

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Table of contents

  • Page 1

  • Page 2

  • Page 3
    ... Network Product Performance 10 12 14 15 16 Revisiting an Exciting Year Message from Chairman Message from MD & CEO (India & South Asia) Message from MD & CEO (Africa) Digital for all 22 24 26 Board of Directors Awards & Accolades Corporate Social Responsibility & Sustainability Enriching lives...

  • Page 4
    ...moment in human history, when the digital landscape is shaping all aspects of life. From global trade and commerce to education, entertainment, healthcare and governance; and so on. As the digital universe continues to expand with the help of intuitive and all-pervasive technology, telecommunication...

  • Page 5
    Bharti Airtel Limited Enriching lives in the Digital Era Te elec com m oper rato or in Ind dia Te elec com m ope erator r in n Afric ca Mobile opera ator glo obally y (in term ms of f subsc criber ba ase) Mn+ Mobil le subsc criber rs acros ss As sia (Ind dia, Bangl lad desh an nd Sri Lank ka) ...

  • Page 6
    ...cien ncy y Win with h dat ta an nd digit tal se ervi ices Prime spectrum to yield data growth Data and digital revenue growth with industry-first initiatives 3G/4G network rollout Revenue e Gro owth Win n with h pe eop ple e High performance culture Employee centricity 4 Annual Report 2014-15

  • Page 7
    ...end-to-end global telecom company. 239.5 Mn+ Customers in India 76.3 Mn+ Customers in Africa 8.6 Mn+ Customers in South Asia (Sri Lanka and Bangladesh) Large residual opportunity with bulk investments in place We are well positioned to capture future growth through strong spectrum position, wide...

  • Page 8
    ... Our Performance Financial Year ended March 31 Particulars Total Customer Base Mobile Services Broadband & Telephone Services Digital TV Services Based on Consolidated Income Statement Revenue EBITDA (before exceptional items) Cash Profit from Operations before Derivative and Exchange Fluctuation...

  • Page 9
    Bharti Airtel Limited Corporate Overview Statutory Reports Financial Statements Credible Growth Revenue (` Mn) 857,461 920,394 EBITDA (` Mn) 278,430 314,517 PAT (` Mn) 27,727 51,835 7% Y-o -o o-Y 13% Y-o -o o-Y 87% Y-o -o o-Y Cost Efficiency Opex Productivity 1 (%) 45.20 43.79 Capex ...

  • Page 10
    ... 26% of the world's population. We provide telecom services under wireless and fixed line technology, national and international longdistance connectivity, Digital TV and Internet Protocol television (IPTV) services; and offer integrated telecom solutions to our enterprise customers. 'Airtel Money...

  • Page 11
    ... Airtel Limited Corporate Overview Statutory Reports Financial Statements Product Performance (Revenue wise) Mobil le Ser rvic ces s We offer a wide array of services under voice and data categories to over 310 Mn customers. Mobile India and South Asia* (` Mn) 11% Y-o-Y Mobile Africa* (USD...

  • Page 12
    ...Launched 'One-Touch Internet', a first-of-its-kind initiative to make internet discovery easy for first time users Airtel Africa won two awards at Africacom - Best Mobile Money Solution with Airtel Money and Best App for Africa with its intuitive Airtel Internet application 10 Annual Report 2014...

  • Page 13
    ...operating locations in Africa Launched MyPlan family Bharti Airtel partnered with Nokia Networks to launch ultrafast 4G services in India's first FDD-LTE on 1800 MHz: marks India's first FDD-LTE deployment 4G extended to 17 cities in India Airtel's One Touch Internet honoured as the 'Best Mobile...

  • Page 14
    ..., we now have a spectrum mix that gives us unmatched pan-India reach across 2G, 3G and 4G. of the Company's revenues in India is accounted from data services 17.6% Airtel Money customers position us to become a major mobile commerce service provider in Africa. 6.2 Mn+ 12 Annual Report 2014-15

  • Page 15
    ... weakening voice revenues. Our 3G footprint now covers all 17 markets in Africa. We also made our 4G debut in the continent during the year with launches in Rwanda and Seychelles. With over 6.2 Mn Airtel Money customers, we are well on course to become a major mobile commerce service provider in...

  • Page 16
    .... Last year, we strengthened our internal performance management processes and stepped up recruitment from the top engineering and management institutes in the country. We continue to encourage our talent to build a holistic long-term career at Airtel. As we strive for business growth and excellence...

  • Page 17
    ...total MBs on the network grew by over 87.4%. Data usage per customer was 130 MBs by March 2015 accounting for a year-on-year growth of 35.4%. With the launch of 3G in Gabon, Chad and Niger, we now have extended our footprint to all 17 markets in Africa. We also launched our 4G services in Rwanda and...

  • Page 18
    ... first-time users to discover the internet easily and helps them overcome common perception barriers around the mobile data experience. 2 Mn First time data users helped by Airtel One Touch Internet to experience internet 1 Lakh+ 16 Active customers for 3G Wifi Dongle Annual Report 2014-15

  • Page 19
    Bharti Airtel Limited Corporate Overview Statutory Reports Financial Statements Available in 10 languages and a highly visual interface that helps address the 'literacy' barrier to internet adoption. 'One Touch Internet' works as a single-point destination for the 'uninitiated' to see, try and ...

  • Page 20
    ...family. Our customers can now Strengthening Enterprise e Services 3 Lakhs+ 18 Users in 90+ countries are part of the Airtel talk community, as on March 31, 2015 Annual Report 2014-15 We joined the AWS Partner Network (APN), which will enable us to deliver private network solutions for enterprise...

  • Page 21
    ... Company-Owned-CompanyOperated Airtel stores across India. These stores will offer end-to-end service support for their Airtel mobile, dongle and broadband connections. Customer base achieved by Airtel Digital TV in just 6 years of inception 10 Mn Channels & services offered (58 channels added...

  • Page 22
    ... well as our revenues. Airtel Specialised Customer Care Service: Launched in 11 markets with plans to extend across Gabon, DRC, Congo B, Chad and Seychelles. We have Airtel care active user base of over 70,000. 3G Operational in all 17 locations in Africa where we are present Africa's first such...

  • Page 23
    Bharti Airtel Limited Corporate Overview Statutory Reports Financial Statements Video Entertainment Store (VES): We have already launched VES in Kenya, Uganda, Malawi, with plans of further expansion. VES enables customers to watch videos at a low price and consume data with no charges. Home Wi-...

  • Page 24
    Digital for all Board of Directors Sunil Bharti Mittal Chairman Chua Sock Koong Non-Executive Director Sheikh Faisal Thani Al-Thani Non-Executive Director C2 V. K. Viswanathan Independent Director Ben Verwaayen Independent Director Craig Ehrlich Independent Director C1 C2 C1 D. K. Mittal...

  • Page 25
    Bharti Airtel Limited Corporate Overview Statutory Reports Financial Statements Shishir Priyadarshi Independent Director Rajan Bharti Mittal Non-Executive Director C1 C2 C3 C4 Tan Yong Choo Non-Executive Director Gopal Vittal MD & CEO (India & South Asia) C1 C3 C4 Board Committees ...

  • Page 26
    ... the Sri Lanka Institute of Training and Development (SLITAD) in Colombo. Bharti Airtel won 'Voice & Data Telecom Leadership Awards 2014' in three categories - 'Top Circles', 'Product Innovation' and 'Business Services' at the Voice & Data Telecom Leadership Forum 2015 in New Delhi. Bharti Airtel...

  • Page 27
    Bharti Airtel Limited Corporate Overview Statutory Reports Financial Statements Airtel Africa won 'Best Mobile Money Solution' and 'Best App for Africa' awards at the AfricaCom Awards 2014 in Cape Town, South Africa. Airtel Ghana won 'Marketing Oriented Organization of the Year' and 'Brand ...

  • Page 28
    Digital for all Corporate Social Responsibility & Sustainability At Bharti Airtel, we believe that doing business responsibly and sustainably is crucial for building long-term growth and stakeholder value. As the digital landscape is fast expanding globally and touching lives in different ways, we...

  • Page 29
    Bharti Airtel Limited Corporate Overview Statutory Reports Financial Statements by building toilets for girls, where no such facilities exist. I. Satya Bharti School Program The Satya Bharti School Program was introduced in 2006. This rural education initiative has the following objectives: ...

  • Page 30
    ... Program, in partnership with 'Educate a Child' (EAC). This is a global initiative to reduce the number of out-of-school children across the world and Bharti Foundation is a strategic partner to this global campaign. The Satya Bharti Learning Centres (Remedial/Bridge Centres) are set up to enrol...

  • Page 31
    ... Touch) A Caring Touch (ACT) is an employee payroll giving programme for Bharti Group of companies. The programme encourages employees to give back to the society in terms of money, time, skills or knowledge. Contributions are matched by the Company as per policy. Corporate Social Responsibility...

  • Page 32
    ... Awareness Airtel Zonal Team at Ludhiana, with the help of Bharti Foundation's regional team, adopted five villages in Ludhiana to build community awareness for personal hygiene and household sanitation. The Swachhta Pracharaks chose Republic Day to announce the launch 30 Annual Report 2014-15

  • Page 33
    ... hands with the local government authorities to conduct relief work. Its channel partners organised a day-long community kitchen in Srinagar to provide food and water. The Company offered free-calling facility for 60 minutes per day for five days to each of its subscribers. It also set up five...

  • Page 34
    ...Hybrid Solutions As a part of the Company's corporate mandate to help protect the environment, it is aggressively Social Entrepreneurship The Government of India has awarded IKSL for managing the prestigious 'Kisan Call Centre' Services of Government of India. Apart from empowering with information...

  • Page 35
    Bharti Airtel Limited Corporate Overview Statutory Reports Financial Statements Resource Management E-waste The increasing volume of waste generated by the telecommunication sector has been a matter of grave concern. Airtel, as one of the leading companies of telecommunication sector, manages ...

  • Page 36
    ... services to women's savings groups in Uganda. This effort is aimed to reduce the gender gap to mobile access. Awards and Recognition Airtel Nigeria was named 'Best Company in Education CSR 'by Social Enterprise Reports Awards (SERA). Airtel Nigeria received the Corporate Responsibility award...

  • Page 37
    Bharti Airtel Limited Corporate Overview Statutory Reports Financial Statements Bangladesh In line with the Company's overarching objective of helping elevate the quality of life for people across geographies, Airtel Bangladesh has spearheaded multiple community outreach initiatives. Some of the...

  • Page 38
    ... wellbeing. Although we have made definite progress in our social imperatives, I believe there is a lot more that can be done in this area. We will continue to innovate with all our stakeholders to strengthen our business responsibility paradigm. " - Sunil Bharti Mittal 36 Annual Report 2014-15

  • Page 39
    ...scope of this report is Bharti Airtel Limited's India operations, including all businesses under its operational control. Section A General Information 1. 2. 3. 4. 5. 6. 7. Corporate Identity Number (CIN) Name of the Company Registered Address Website Email id Financial Year reported Sector(s) that...

  • Page 40
    ... participate in the Company's BR initiatives. Section D Business Responsibility Information 1. Details of Director / Directors responsible for BR a) Details of the Director / Directors responsible for implementation of the BR policy / policies DIN Number Name Designation b) Details of the BR...

  • Page 41
    Bharti Airtel Limited Corporate Overview Statutory Reports Financial Statements 2. Principle-wise (as per NVGs) BR Policy / policies (Reply in Y / N) The National Voluntary Guidelines on Social, Environmental and Economic Responsibilities of Business (NVGs), released by the Ministry of ...

  • Page 42
    ...Except Code of Conduct, all other policies are the internal policies of the Company and are applicable internally, therefore, not available on the Company's website. The Code of Conduct can be accessed through the following link http://africa.airtel.com/wps/wcm/connect/africarevamp/africa/home/about...

  • Page 43
    Bharti Airtel Limited Corporate Overview Statutory Reports Financial Statements 3. Governance related to BR: The frequency with which the Board of Directors, Committee of the Board or CEO assess the BR performance of the Company. (Within 3 months, 3-6 months, annually, more than 1 year). The ...

  • Page 44
    ... 2013, in compliance with the law on prevention of sexual harassment of women at the work place, the Company has set up Internal Complaints Committee at its offices, comprising a Presiding Officer, who is a senior level woman employee, one member with legal knowledge or experience in social work...

  • Page 45
    ... Limited Corporate Overview Statutory Reports Financial Statements Airtel has designed its workplace practices to provide an inclusive environment, wherein every employee can take part, contribute and develop freely and equitably. Employee engagement and talent development are the key strategic...

  • Page 46
    ... of its products and services across its value chain. The Company, along with its network partners continues its efforts towards implementing several infrastructural solutions to reduce the energy consumption. Few strategies to address the sustainability issues like climate change and energy...

  • Page 47
    Bharti Airtel Limited Corporate Overview Statutory Reports Financial Statements 3) Demand Side Management Sites are being converted mostly by installing FCU for switching off the Aircon, thus making them feasible for installing green energy solutions like Solar and Li-ion, among others. This ...

  • Page 48
    ... business models like Airtel Money, mHealth, mEducation to overcome sustainability barriers. Working towards expanding its bouquet of services and enhancing its communication technologies. Supporting the programmes, run by Bharti Foundation, directed towards free education and vocational trainings...

  • Page 49
    ... provides customers the option to manage their accounts through self-care channels - IVR, USSD, Airtel app and website. Customers can check tariff details, balance information, bill details, payment details, data usage and make payments, among others. Airtel aims to touch and transform the lives of...

  • Page 50
    ...service providers in India. # Subsequent to the date of this report, Bharti Airtel has become third largest mobile operator in the world in terms of subscribers. *1 USD = ` 61.10 Exchange Rate for the financial year ended March 31, 2015. (1 USD = ` 60.59 Exchange Rate for the financial year ended...

  • Page 51
    ... Director. The detailed policy is available on the Company's website at www.airtel.in/wps/wcm/connect/92b49e0e8810-497a-9c3e-9b80657a3688/Policy-on-RemunerationNomination-and-Board-Diversity.pdf?MOD=AJPERES and is also annexed as Annexure B to this report. Employee Stock Option Plan At present, the...

  • Page 52
    ...the Companies Act, 2013 and Listing Agreement is provided in the Report on Corporate Governance, which forms part of this Report. Committees of Board, Number of Meetings of the Board and Board Committees The Board of Directors met five times during the previous financial year. As on March 31, 2015...

  • Page 53
    Bharti Airtel Limited Corporate Overview Statutory Reports Financial Statements Board recommends the same for approval by shareholders at the ensuing AGM. Secretarial Auditor The Company had appointed M/s. Chandrasekaran Associates, Company Secretaries, New Delhi, to conduct its Secretarial ...

  • Page 54
    ... to Directors and Senior Management of the Company is available on the Company's website at www.airtel.in/aboutbharti/investor-relations/corporate-governance. A brief note on the highlights of the Whistle Blower Policy and compliance with Code of Conduct is also provided in the Report on Corporate...

  • Page 55
    Bharti Airtel Limited Corporate Overview Statutory Reports Financial Statements Information Regarding Employees Stock Option Schemes (As On March 31, 2015) Annexure A Sl. No. 1) 2) Particulars Number of stock options granted Pricing Formula ESOP Scheme 2005 27,464,611* Exercise Price not ...

  • Page 56
    ... Remuneration Policy Board Members The overall limits of remuneration of the Board members including Executive Board members (i.e. Managing Director, Whole-time Director, Executive Directors etc.) are governed by the provisions of Section 197 of the Companies Act, 2013, rules 54 Annual Report 2014...

  • Page 57
    ... business unit and the overall Company performance (c) Long term incentive / ESOPs as may be decided by the Committee from time to time. Disclosures by the Company This Policy shall be disclosed in the Company's Annual Report. General The Group Director - HR and the Group General Counsel and Company...

  • Page 58
    ... Audit Report for the Financial Year Ended March 31, 2015 Annexure C To, The Members, Bharti Airtel Limited c) The Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2009; The Securities and Exchange Board of India (Share Based employee Bene...

  • Page 59
    Bharti Airtel Limited Corporate Overview Statutory Reports Financial Statements Adequate notice is given to all Directors to schedule the Board Meetings, agenda and detailed notes on agenda were sent in advance, and a system exists for seeking and obtaining further information and clarifi...

  • Page 60
    ... for all The Annual Report on Corporate Social Responsibility (CSR) Activities Annexure D 1. Brief Outline of Company's CSR Policy At Bharti Airtel, business success is not just about profits and shareholder returns. We believe in pursuing wider socioeconomic and cultural objectives and have...

  • Page 61
    ... statement of the CSR Committee The Committee confirms that the implementation and monitoring of CSR Policy is in compliance with CSR objectives and policy of the Company. Gopal Vittal Managing Director & CEO (India & South Asia) Rajan Bharti Mittal Chairman CSR Committee Board's Report...

  • Page 62
    ... of the Company Address of the Registered office and contact details Whether listed company L74899DL1995PLC070609 July 07, 1995 Bharti Airtel Limited Limited by shares Indian Non-Government Company Bharti Crescent, 1, Nelson Mandela Road, Vasant Kunj, Phase II, New Delhi - 110 070. Phone : +91 11...

  • Page 63
    Bharti Airtel Limited Corporate Overview Statutory Reports Financial Statements S.No Name of the Company Address CIN/Registration No. 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 Airtel Bangladesh Limited Bangladesh Infratel Networks Limited Bharit Airtel (Canada) Limited ...

  • Page 64
    ... Money S.A. (Gabon) Airtel Networks Kenya Limited Airtel Networks Limited Airtel Networks Zambia Plc Airtel Rwanda Limited Airtel Tanzania Limited 61 62 63 64 65 66 67 68 Airtel Tchad S.A. Airtel Towers (Ghana) Limited Airtel Towers (S.L.) Company Limited Airtel Uganda Limited Bharti Airtel Africa...

  • Page 65
    ... Airtel Nigeria Holdings II B.V. Bharti Airtel RDC Holdings B.V. Bharti Airtel Services B.V. Bharti Airtel Sierra Leone Holdings B.V. Bharti Airtel Tanzania B.V. Bharti Airtel Uganda Holdings B.V. Bharti Airtel Zambia Holdings B.V. Burkina Faso Towers S.A. 89 90 Celtel (Mauritius) Holdings Limited...

  • Page 66
    ... Malawi Towers Limited Mobile Commerce Congo S.A. Montana International MSI-Celtel Nigeria Limited (In liquidation) Niger Towers S.A. Partnership Investments Sprl Société Malgache de Telephonie Cellulaire SA Tanzania Towers Limited Airtel House, City Centre, Off Independence Drive, P.O. Box 57...

  • Page 67
    Bharti Airtel Limited Corporate Overview Statutory Reports Financial Statements IV. Share Holding Pattern (Equity Share Capital Breakup as percentage of Total Equity) i) Category-wise Share Holding Category of Shareholders No. of Shares held at the beginning of the year i.e April 01, 2014 Demat ...

  • Page 68
    ... year/ shareholding at the end of the year No. of shares % of total shares of the Company 1 Bharti Telecom Limited 1,745,595,460 1,950,000 Market Purchase through Stock Exchanges 1,747,545,460 1,747,545,460 43.72% 43.72% (iv) Shareholding Pattern of top ten Shareholders (other than Directors...

  • Page 69
    Bharti Airtel Limited Corporate Overview Statutory Reports Financial Statements S.No Name of the Share Holder Shareholding No. of shares % of total shares of the Company 0.22 0.78 0.05 0.95 Cumulative Shareholding during the year No. of shares % of total shares of the Company 0.22 1.00 0.95 ...

  • Page 70
    ... (ceased to be a Director on February 04, 2015) 225,739 0.01% April 1, 2014 May 28, 2014 (50,000) Market Sale 175,739 0.00% % of total shares of the Company Date Increase / decrease during the year Reasons Cumulative Shareholding during the year/ shareholding at the end of the year No. of shares...

  • Page 71
    Bharti Airtel Limited Corporate Overview Statutory Reports Financial Statements S. No Name of the Director or KMP Shareholding at the beginning of the year No. of shares % of total shares of the Company 0.00% Date Increase / decrease during the year Reasons Cumulative Shareholding during ...

  • Page 72
    ... of Directors and Key Managerial Personnel A. Remuneration to Managing Director, Whole-time Directors and / or Manager (` Millions) Sl. Particulars of Remuneration no. Name of Managing Director / Whole-time Director / Manager Mr. Gopal Vittal Mr. Sunil Bharti Mittal Managing Director & CEO (India...

  • Page 73
    Bharti Airtel Limited Corporate Overview Statutory Reports Financial Statements B. Remuneration to Non-Executive Directors including Independent Directors (` Millions) Independent Directors Mr. Ajay Lal 1 Mr. Craig Ehrlich Mr. Tsun-yan Hsieh Mr. Manish Kejriwal Ms. Obiageli Ezekwesili Mr. V. K. ...

  • Page 74
    ...alternate sources of energy. BTS sites are now being operated at low power. Power Management Units (PMUs) introduced. have been Annexure F Speed drivers and energy-efficient lighting systems were introduced at various locations. Innovative design modifications have taken place, such as: Upgrading...

  • Page 75
    ... data centres at Chennai (wheeling through wind power), Bangalore (wheeling through hydro power), and Noida (roof-top solar power plant), and one MSC location. Partnering green projects with Bharti Infratel: Bharti Infratel has been working closely with Bharti Airtel to convert more of the Company...

  • Page 76
    ...of managed services, Airtel has been successful in delivering the most advanced network to its customers. To introduce more and more people to the internet, Airtel launched an innovative product called 'One Touch Internet', which has been recognised as the best mobile service/application of the year...

  • Page 77
    Bharti Airtel Limited Corporate Overview Statutory Reports Financial Statements Statement of Disclosure of Remuneration under Section 197(12) of Companies Act, 2013 read with Rule 5(1) of Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 i. Annexure G The percentage ...

  • Page 78
    ... in remuneration of employees. vii) The key parameters for any variable component of remuneration availed by the Directors: In terms of Company's remuneration Policy, the key parameters for the variable component of remuneration availed by the Executive Directors are directly linked to performance...

  • Page 79
    ... H To The Members of Bharti Airtel Limited, We have examined the compliance of conditions of corporate governance by Bharti Airtel Limited ("the Company"), for the year ended March 31, 2015, as stipulated in Clause 49 of the Listing Agreement of the said Company with Stock Exchanges in India. The...

  • Page 80
    ...Emerging and Developing Economies China India Bangladesh Sri Lanka Sub-Saharan Africa 3.4 1.4 5.0 7.8 6.9 6.1 7.3 5.1 2014 3.4 1.8 4.6 7.4 7.2 6.1 7.4 5.0 2015 3.5 2.9 4.3 6.8 7.5 6.3 6.5 4.5 (%) Projections 2016 3.8 3.2 4.7 6.3 7.5 6.8 6.5 5.1 Economic Overview Global Review Financial year 2014-15...

  • Page 81
    Bharti Airtel Limited Corporate Overview Statutory Reports Financial Statements investments, and this is expected to strengthen India's economic growth, going forward. Telecom is also expected to play a significant role in implementing the Government's Digital India vision. India's GDP growth ...

  • Page 82
    ...%, internet penetration and experience will be the key drivers of growth in urban areas. During the year, the Company continued to work towards improving data connectivity, and launched several industryfirst initiatives to contribute to nation's digital inclusion agenda. Lowering smartphone prices...

  • Page 83
    Bharti Airtel Limited Corporate Overview Statutory Reports Financial Statements With the recent acquisition of spectrum, Airtel is well positioned to enable data growth, and has secured a clear roadmap for the next 20 years. Cumulatively, since 2010 the Company has invested ` 681 Bn in spectrum ...

  • Page 84
    ...-net and off-net mobile voice calls. Rwanda: 4G services were launched in Rwanda by single wholesale network consortium led by Korean Telecom. Operators can provide 4G/LTE services as MVNO to the consortium. Consequently, Airtel has commenced 4G/LTE services as a MVNO. Sierra Leone: The Government...

  • Page 85
    ...investments in place Airtel has the best pan-India spectrum assets with prime spectrum and the largest optical fibre network among private players. 3G and Airtel Money launched in all the 17 countries in Africa Threats Falling average revenue per user Changing rates across a wide array of products...

  • Page 86
    ... on account of stepped up capex in India and Africa. Liquidity and Funding During the year, the Company undertook several initiatives to meet its long-term funding requirements, strategically using a diversified mix of debt and equity: a) In Q1, the Company's subsidiary BAIN raised to USD 1,000...

  • Page 87
    ... voice and data services to its customers across 2G, 3G and 4G technologies. Awards and Recognition Honoured with the Dun & Bradstreet (D&B) Corporate award in the Telecom Services sector at the D&B - Manappuram Finance Corporate Awards 2014 in Mumbai. B Srikanth, Global CFO, Bharti Airtel Ltd, has...

  • Page 88
    ...Free calling stations and local talk time of 10 minutes, along with Advance Talk time facility were provided to all Airtel customers in the affected areas to enable them to connect with their families. Introduced its 'Smart SIM' in the market, which provides customers the freedom to seamlessly work...

  • Page 89
    ... includes local, national and international long-distance voice connectivity. In the office segment, Airtel is a trusted solutions provider for fixed line voice (PRIs), MPLS, mobile, data and other connectivity solutions. Additionally, the Company offers solutions to businesses to improve employee...

  • Page 90
    ... products and solutions, such as toll free services, SMS hub, Firewall, Satellite solutions and airtel talk, among others. Expanding footprint in the emerging markets with access, network, delivery and partnerships to further strengthen the position and revenue from such markets. Developing India...

  • Page 91
    ...- SMB (Corporate) Segment, and Enterprise 3G Service Provider of the Year under the 'Enterprise Telecom Services' category for its exemplary growth and performance. Won the 'Enterprise Mobile App 2014' award for Airtel mGovernance solution and 'Unified Communication Solution' award for Biznet video...

  • Page 92
    ... of 15 years. The Company was successful in obtaining 3G and 4G licences in Tchad. 3G services have also been launched. Airtel Money crossed the milestone of 5 Mn subscribers across Africa. As at the end of March 2015, Airtel Money had 6.2 Mn customers across Africa. Airtel Money celebrated 1 Mn...

  • Page 93
    ... organisation and the only telecom company to win the award for best practices in human resources. At the operating level, the Executive Committees (EC) of Circles in India and Operating Companies in the international operations are fully charged with the responsibilities of managing the risks at...

  • Page 94
    ...The Company works handin- hand with other telecom operators in jointly representing the case for policy stability. It does its best to contribute to the socio-economic growth of the countries in which it operates through high quality services to its customers, improved connectivity, providing direct...

  • Page 95
    Bharti Airtel Limited Corporate Overview Statutory Reports Financial Statements 5. Adverse Regulatory or Taxation Developments Including Risks Related to Tax Positions Risk Statement: Several regulatory developments in India, South Asia and Africa have posed several challenges to the telecom ...

  • Page 96
    ... with changing customer expectations is a big agenda for the telecom sector. Mitigation: Airtel's strong strategic vendor relationships especially in the areas of network technologies, IT, mobile money and a few other key VAS technologies help us keep pace with technology shifts and retain market...

  • Page 97
    ... only connectivity, but also higher end application usage. Bharti Airtel continues to make significant investments in key assets to be able to drive this growth, such as spectrum and licenses, 3G and 4G networks, brand, IT and Customer care. Airtel is the only panIndia data operator in the country...

  • Page 98
    ..., Corporate Social Responsibility, Employee Stock Option Plans and Stakeholders' Relationship. Ensures complete and timely disclosure of relevant financial and operational information to enable the Board to play an effective role in guiding strategies. Organises meetings of Independent Directors...

  • Page 99
    ... the Africa Executive (AEX). The AMB in India and South Asia, and AEX in Africa provide support relating to the Company's business strategy and also derive operational synergies across business units. They own and drive company-wide processes, systems, policies, and also function as role models for...

  • Page 100
    ..., the Company periodically presents update at the Board/Committee meetings to familiarise the Directors with the Company's strategy, business performance, operations, product offerings, finance, risk management framework, human resources and other related matters. The Board members are also...

  • Page 101
    ...shareholders service Disclosures received from Directors Proposals requiring strategic guidance and approval of the Board Related party transactions Regular business updates Update on Corporate Social Responsibility activities Significant transactions and arrangements by subsidiary companies Report...

  • Page 102
    ... & Board Diversity In terms of the revised Clause 49 of the Listing Agreement and Companies Act, 2013, the Board has approved a Policy on Nomination, Remuneration and Board Diversity for Directors, KMPs and other Senior Management Personnel. The Company's remuneration policy is directed towards...

  • Page 103
    Bharti Airtel Limited Corporate Overview Statutory Reports Financial Statements Directors' Remuneration The details of the remuneration of Directors during FY 2014-15 are given below: (Amount in `) Name of Director Sitting fees Salary and allowances Performancelinked incentive 82,500,000 16,500,...

  • Page 104
    ... meets the requirements of Section 177 of the Companies Act, 2013 and Clause 49 of the Listing Agreement. The Company Secretary is the Secretary to the Committee. The Managing Director & CEO (India & South Asia), the Managing Director & CEO (Africa), the Global CFO, the Group Director - Internal...

  • Page 105
    ...Statutory and Internal Auditor's independence, performance and effectiveness of audit process. Review and scrutinise the inter-corporate loans and investments. Monitor and review with the Management, the statement of uses / application of funds raised through an issue (public issue, right issue and...

  • Page 106
    ... Bharti Airtel Limited The Audit & Risk Management Committee is pleased to present its report for the year ended March 31, 2015: The Committee presently comprises five members of whom two-thirds, including the Chairman, are Independent Directors, as per the requirements of Clause 49 of the Listing...

  • Page 107
    Bharti Airtel Limited Corporate Overview Statutory Reports Financial Statements HR and Nomination Committee The Committee comprises five Non-Executive Directors, of whom three members, including, the Chairman are Independent Directors. The composition of the Committee meets the requirements of ...

  • Page 108
    ..., acted as the Company's Compliance Officer up to March 31, 2015. He was responsible for complying with the requirements of the Listing Agreement with Stock Exchanges and requirements of securities laws, including SEBI (Prohibition of Insider Trading) Regulations, 1992. 106 Annual Report 2014-15

  • Page 109
    Bharti Airtel Limited Corporate Overview Statutory Reports Financial Statements The Board in its meeting held on April 28, 2015, has appointed Mr. Rajendra Chopra as the Company Secretary and Compliance Officer of the Company. Nature of Complaints and Redressal Status During FY 2014-15, the ...

  • Page 110
    ...Independent Director Member Member Member 1. Ceased to be member of the Committee w.e.f. February 4, 2015. The Technology Committee was dissolved w.e.f. April 28, 2015. Corporate Social Responsibility (CSR) Committee In compliance with the requirements of the Companies Act, 2013, the Company has...

  • Page 111
    ... Board had approved the Corporate Social Responsibility (CSR Policy) of the Company. The CSR Policy intends to strive for economic development that positively impacts the society at large with minimal resource footprints. The Policy is available on the Company's website at www.airtel.com. Meetings...

  • Page 112
    ...ned to performing key shareholder functions. General Body Meetings The details of last three Annual General Meetings (AGMs) are as follows: Financial Year 2013-14 2012-13 2011-12 Location Air Force Auditorium, Subroto Park, New Delhi-110010 Date September 1, 2014 September 5, 2013 September 6, 2012...

  • Page 113
    ...for all Directors and Senior Management personnel. The code is available on the Company's website www.airtel.com. The Code is applicable to all Board members and Senior Management executives who directly report to the Chairman, the Managing Director & CEO (India & South Asia). The Code is circulated...

  • Page 114
    ... are reported to the Audit & Risk Management Committee. All employees of the Company, as well as vendors/ partners and any person that has a grievance (excluding standard customer complaints) has full access to the Ombudsperson through phones, emails or even meetings in person. During the year under...

  • Page 115
    ... Airtel Limited Corporate Overview Statutory Reports Financial Statements Separate posts of Chairman and CEO The positions of the Chairman of the Board and the Managing Director & Chief Executive Officer of the Company are held by separate individuals. Reporting of Internal Auditor The Internal...

  • Page 116
    ... Company's website and are also submitted to Stock Exchanges, where the Company's shares are listed. General Shareholders' Information 20th Annual General Meeting Date Day Time Venue : : : : August 21, 2015 Friday 3.30 p.m. Air Force Auditorium, Subroto Park, New Delhi - 110 010 Financial Calendar...

  • Page 117
    Bharti Airtel Limited Corporate Overview Statutory Reports Financial Statements Stock Market Data for the Period April 1, 2014 to March 31, 2015 Month Apr-14 May-14 Jun-14 Jul-14 Aug-14 Sep-14 Oct-14 Nov-14 Dec-14 Jan-15 Feb-15 Mar-15 Source: www.nseindia.com NSE High 345.50 349.95 367.15 375....

  • Page 118
    ... Shareholding Public Shareholding (A) (i) (ii) (iii) (iv) (v) (B) (i) (ii) (iii) (iv) (v) Institutional Investors Mutual Funds and Unit Trust of India Financial institutions and Banks Insurance companies Foreign Institutional Investors Others - Foreign Portfolio Investors Others Bodies Corporate...

  • Page 119
    ... Being a service provider company, Bharti Airtel has no plant locations. The Company's Circle Office addresses are provided at the end of the Annual Report. Communication Addresses Contact For Corporate Governance and Other Secretarial related matters For queries relating to Financial Statements Mr...

  • Page 120
    ...nancial year ended March 31, 2015, a confirmation that they are in compliance with the Company's Code of Conduct. For Bharti Airtel Limited Gopal Vittal Managing Director & CEO (India & South Asia) Date: April 28, 2015 Place: New Delhi Annexure B Chief Executive Officer (CEO) / Chief Financial...

  • Page 121
    ... / New Developments Earnings Per Share Employee Benefits Investment in Joint Ventures / Jointly Owned Assets Expenditure / Earnings in Foreign Currency CIF Value of Imports Auditors' Remuneration Details of Dues to Micro and Small Enterprises Related Party Disclosures Operating Lease Employee Stock...

  • Page 122
    ... Limited Report on the Standalone Financial Statements We have audited the accompanying standalone financial statements of Bharti Airtel Limited ("the Company"), which comprise the Balance Sheet as at March 31, 2015, the Statement of Profit and Loss and Cash Flow Statement for the year then ended...

  • Page 123
    Bharti Airtel Limited Corporate Overview Statutory Reports FINANCIAL STATEMENTS Financial Statements Independent Auditor's Report (f) With respect to the other matters to be included in the Auditor's Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our ...

  • Page 124
    ...the information and explanations given to us, no undisputed amounts payable in respect of provident fund, employees' state insurance, income-tax, sales-tax wealth-tax, service tax, duty of customs, value added tax, cess and other material undisputed statutory dues were outstanding as at the year end...

  • Page 125
    Bharti Airtel Limited Corporate Overview Statutory Reports FINANCIAL STATEMENTS Financial Statements Independent Auditor's Report Name of Statutes Nature of the Dues Sales Tax Sales Tax Sales Tax Service Tax Service Tax Service Tax Service Tax Service Tax Service Tax Amount Period to which it ...

  • Page 126
    ... Assets Fixed Assets Tangible assets Intangible assets Capital work-in-progress Intangible assets under development Non current investments Long- term loans and advances Other non-current assets Current Assets Current investments Inventories Trade receivables Cash and bank balances Short-term loans...

  • Page 127
    Bharti Airtel Limited Corporate Overview Statutory Reports FINANCIAL STATEMENTS Financial Statements Statement of Profit and Loss (` Millions except per share data and as stated otherwise) Particulars Notes For the year ended March 31, 2015 554,964 51,930 606,894 79,601 67,062 For the year ...

  • Page 128
    ...New Delhi Date: April 28, 2015 For and on behalf of the Board of Directors of Bharti Airtel Limited Sunil Bharti Mittal Chairman Rajendra Chopra Company Secretary Gopal Vittal Managing Director & CEO (India & South Asia) Srikanth Balachandran Global Chief Financial Officer 126 Annual Report 2014...

  • Page 129
    ... Limited Corporate Overview Statutory Reports FINANCIAL STATEMENTS Financ Financial cia ial al State Statements tements Notes to financial statements 1. Corporate Information Bharti Airtel Limited ('the Company') incorporated in India on July 7, 1995, is a company promoted by Bharti Telecom...

  • Page 130
    ... management fees, legal charges and other initial direct costs of lease are capitalized. Leased assets are depreciated on straight-line basis over the useful life of the asset. However,if there is no reasonable certainty that the company will obtain ownership by the end of the lease term, the asset...

  • Page 131
    Bharti Airtel Limited Corporate Overview Statutory Reports FINANCIAL STATEMENTS Financial Statements Notes to financial statements lessor. Hence, such arrangements are recognised as operating lease. The contracted price is received in advance and is recognised as revenue during the tenure of ...

  • Page 132
    ... services, roaming charges, activation fees, processing fees and fees for value added services ('VAS'). Service revenues also include revenues associated with access and interconnection for usage of the telephone network of other operators for local, domestic long distance and international calls...

  • Page 133
    Bharti Airtel Limited Corporate Overview Statutory Reports FINANCIAL STATEMENTS Financial Statements Notes to financial statements statement of profit and loss in the year in the which the exchange rate changes. The premium or discount arising at the inception of forward exchange contracts is ...

  • Page 134
    ...Notes to financial statements The employees of the Company are entitled to compensated absences based on the unavailed leave balance as well as other long term benefits. The Company records liability based on actuarial valuation computed under projected unit credit method. The Company presents the...

  • Page 135
    ... different markets. Mobile Services - These services cover voice and data telecom services provided through wireless technology in India (2G/3G/4G). This includes the captive national long distance networks which primarily provide connectivity to the mobile services business in India. This also...

  • Page 136
    ... to financial statements Summary of the Segmental Information for the year ended and as of March 31, 2015 (` Millions) Particulars Mobile Services Telemedia Services Airtel Business Unallocated Eliminations Total Revenue Revenue from operations external Inter segment revenue Total Revenue 464,426...

  • Page 137
    Bharti Airtel Limited Corporate Overview Statutory Reports FINANCIAL STATEMENTS Financial Statements Notes to financial statements Summary of the Segmental Information for the year ended and as of March 31, 2014 (` Millions) Particulars Mobile Services Telemedia Services Airtel Business ...

  • Page 138
    ... to financial statements Information about Geographical Segment - Secondary The Company has operations serving customers within India as well as located in other countries. The information relating to the geographical segments in respect of customers being served and assets within India, which is...

  • Page 139
    ... Airtel Limited Corporate Overview Statutory Reports FINANCIAL STATEMENTS Financial Statements Notes to financial statements a. Reconciliation of the equity shares outstanding at the beginning and at the end of the year For the year ended March 31, 2015 No. At the beginning of the year Issued...

  • Page 140
    ... for the financial year 2014-15. During the current financial year, the Company has spent an amount of ` 411 Mn against Corporate Social Responsibility expenditure. 7. Long-term Borrowings (` Millions) Particulars Secured From Banks From Others Total secured Unsecured Term Loans From Banks From...

  • Page 141
    Bharti Airtel Limited Corporate Overview Statutory Reports FINANCIAL STATEMENTS Financial Statements Notes to financial statements a. b. Secured borrowings represent vehicle loans which are secured by hypothecation of vehicles of the Company. Details relating to maturity profile, interest rate...

  • Page 142
    ... years. During the year ended March 31, 2015, the Company had recognised additional tax charge of ` 188 Mn (March 31, 2014 ` Nil) on account of change in tax rate from 33.99% to 34.61% as proposed in the Finance Bill, 2015. 10. Long-term Provisions (` Millions) Particulars Provision for employee...

  • Page 143
    Bharti Airtel Limited Corporate Overview Statutory Reports FINANCIAL STATEMENTS Financial Statements Notes to financial statements 11. Short-term Borrowings (` Millions) Particulars (Unsecured unless stated otherwise) Loans From banks 6,259 6,259 a. Details relating to interest rate and ...

  • Page 144
    ...Depreciation As of April 1, 2013 Charge for the year # Disposals / adjustment Reclassification As of March 31, 2014 Charge for the year # Disposals / adjustment Reclassification As of March 31, 2015 Net Carrying Amount As of April 1, 2013 As of March 31, 2014 As of March 31, 2015 386 376 371 1,302...

  • Page 145
    ...the year ended March 31, 2014. Statutory Reports d. Capital work in progress includes goods in transit ` 6,017 Mn (March 31, 2014 ` 1,718 Mn). e. Refer note 10, 41 and 49 for ARO, jointly owned assets and assets given on operating lease, respectively. Standalone Financial Statements FINANCIAL...

  • Page 146
    ... assets during the year ended March 31, 2014. ii) Intangible Assets Under Development Intangible assets under development includes the amount of spectrum allotted to the Company and related costs (including borrowing costs capitalised under AS 16 - "Borrowing Costs"), if any, for which services...

  • Page 147
    Bharti Airtel Limited Corporate Overview Statutory Reports FINANCIAL STATEMENTS Financial Statements Notes to financial statements 17. Non-current Investments (` Millions) Particulars Trade investments (at cost) Investment in Equity Instruments Investment in Subsidiaries 1) 2) 3) 4) 5) 6) 7) 8)...

  • Page 148
    ... Market value of Quoted Investments Aggregate provision for diminution in value of investments 2 3 383,958 309,450 74,511 523,600 3 2 3 340,348 258,169 82,182 305,100 3 50 340,349 18. Long-term Loans and Advances (` Millions) Particulars Unsecured, considered good unless stated otherwise Capital...

  • Page 149
    Bharti Airtel Limited Corporate Overview Statutory Reports FINANCIAL STATEMENTS Financial Statements Notes to financial statements 19. Other Non-current Assets (` Millions) Particulars Unsecured, considered good, unless stated otherwise Non-current bank balances (refer note 23) Advances * ...

  • Page 150
    ... Option Principal Cash Management - Regular Plan - Growth Sundram Money Fund Taurus Mutual Fund Franklin India Treasury Management Account LIC NOMURA MF Liquid Fund - Growth Plan Total Investment in Deposits and Bonds (Unquoted) India Innovation Fund 7.30% REC Secured Bonds 2015 Total 70 10 80 7 10...

  • Page 151
    Bharti Airtel Limited Corporate Overview Statutory Reports FINANCIAL STATEMENTS Financial Statements Notes to financial statements... security deposit. Includes amount receivable from related party ` 2,224 Mn (March 31, 2014 ` 1,785 Mn) (refer note 48) As of March 31, 2015 As of March 31, 2014 ...

  • Page 152
    ...MAT credit of ` Nil (March 31, 2014 - ` 2,604 Mn) has been utilized during the year ended March 31, 2015 and adjusted with Provision for tax. 24,218 25. Other Current Assets (` Millions) Particulars Unsecured, considered good, unless stated otherwise Unbilled revenue Interest accured on loan given...

  • Page 153
    ...General Sales Tax on its telecom services and towards which the Company has received a stay from the Hon'ble J&K High Court. The demands received to date have been disclosed under contingent liabilities. d) iv. v. c) disallowance of cenvat credit used in excess of 20% limit, and employee talk time...

  • Page 154
    ... can continue making the payment as was being done throughout the period of license on telecom activities. Further as stated in point (iii) above, TDSAT has pronounced its judgement on April 23, 2015, directing DoT to rework and issue fresh demands to the operators. 152 Annual Report 2014-15

  • Page 155
    Bharti Airtel Limited Corporate Overview Statutory Reports FINANCIAL STATEMENTS Financial Statements Notes to financial statements vii) On January 8, 2013, the Department of Telecommunications ('DoT') issued a demand on the Company for ` 51,353 Mn towards levy of one time spectrum charge. The ...

  • Page 156
    ... Millions) Particulars Service Revenue - Voice revenue - Others Sale of products Note: Voice Revenue includes revenue from home network subscribers, roaming revenues and interconnect revenues. For the year ended March 31, 2015 407,836 147,032 96 554,964 For the year ended March 31, 2014 404,264 94...

  • Page 157
    Bharti Airtel Limited Corporate Overview Statutory Reports FINANCIAL STATEMENTS Financial Statements Notes to financial statements 32. Employee Benefit Expenses (` Millions) Particulars Salaries and wages Contribution to provident and other funds (refer note 40) Expenses on employee stock ...

  • Page 158
    ... the objective of the preferential allotment. 38. Acquisitions / Additional Investments / New Developments (i) On June 25, 2013, the Company acquired additional equity stake of 2% by way of subscription to fresh equity in its existing 49% owned joint venture companies, 156 Annual Report 2014-15

  • Page 159
    ...Commerce Services Limited. (iv) During the year ended March 31, 2015, the Company has made equity investment of ` 39,931 Mn (USD 655 Mn) in Bharti Airtel International (Mauritius) Limited. (v) During the year ended March 31, 2015, the Company has made equity investment of ` 10 Mn in FireFly Networks...

  • Page 160
    ... Plan for Key Managerial Personnel. For the year ended March 31, 2015 650 7 For the year ended March 31, 2014 662 8 ii. Defined Benefit Plans and Leave Encashment For the year ended March 31, 2015: (` Millions) Particulars Current service cost Interest cost Expected return on plan assets...

  • Page 161
    ... levels Expected rate of return on plan assets Expected average remaining working lives of employees (years) c) Reconciliation of opening and closing balances of obligations and plan assets is as follows: For the year ended March 31, 2015: (` Millions) Particulars Change in Obligation Present...

  • Page 162
    ...at year end Net funded status of the plan Current Liabilities Non-Current Liabilities Gratuity 1,382 258 117 (252) (14) 95 1,586 76 6 (6) 76 1,510 241 1,269 Leave Encashment 744 171 63 (114) (8) (62) 794 794 794 - d) The expected rate of return on plan assets was based on the average long-term rate...

  • Page 163
    ... Airtel Limited Corporate Overview Statutory Reports FINANCIAL STATEMENTS Financial Statements Notes to financial statements g) Movement in other long term employee benefits : The provision for long term service award provided by the Company as of March 31, 2015 is ` 86 Mn (March 31, 2014...

  • Page 164
    ...(1,562,357) 2,374,698 As of March 31, 2015 342 (228) 114 As of March 31, 2014 674 (332) 342 Number of shares Opening Balance Purchased during the year Issued during the year Closing Balance (` Millions) 43. Loans and advances in the nature of loans along with maximum amount outstanding during the...

  • Page 165
    Bharti Airtel Limited Corporate Overview Statutory Reports FINANCIAL STATEMENTS Financial Statements Notes to financial statements (f) Loan and advance in the nature of loan given to Bharti International (Singapore) Pte Limited at LIBOR + 1.25% interest rate is ` 8,887 Mn (March 31, 2014 ` 2,...

  • Page 166
    ... of Bharti Infratel Limited) Network i2i Limited Bharti Airtel Holdings (Singapore) Pte Ltd Bharti Infratel Lanka (Private) Limited (subsidiary of Bharti Airtel Lanka (Private) Limited) Airtel M Commerce Services Limited March 31, 2015 10 March 31, 2014 38 2 - - 3 - - 4 5 - - 48. Related...

  • Page 167
    Bharti Airtel Limited Corporate Overview Statutory Reports FINANCIAL STATEMENTS Financial Statements Notes to financial statements Airtel Broadband Services Private Limited (w.e.f. June 25, 2013. Amalgamated with Bharti Airtel Limited w.e.f. April 9, 2015) Nxtra Data Limited Bharti Airtel (...

  • Page 168
    ... Cellulaire SA Tanzania Towers Limited Tchad Towers S.A. Towers Support Nigeria Limited Uganda Towers Limited (held for sale) Warid Congo S.A. Warid Telecom Uganda Limited (merger in process) Zambian Towers Limited (held for sale) Zap Trust Company Nigeria Limited Bharti Airtel Rwanda Holdings...

  • Page 169
    ... Airtel Limited Corporate Overview Statutory Reports FINANCIAL STATEMENTS Financial Statements Notes to financial statements The details of amounts due to or due from the related parties as of March 31, 2015 and March 31, 2014 are as follows: (` Millions) S.No 1 Particulars Loans & Advances...

  • Page 170
    ... Particulars Bharti Airtel International (Netherlands) B.V. Nxtra Data Limited Airtel Bangladesh Ltd. Airtel Networks Ltd. Airtel (Seychelles) Limited Bharti Airtel Lanka (Pvt.) Ltd. Airtel Ghana Ltd. Other African Subsidiaries Associate Bharti Teleports Ltd. Entities where Key Management Personnel...

  • Page 171
    ... the related party transactions entered into by the Company for the years ended March 31, 2015 and March 31, 2014 are as follows: (` Millions) S.No 1 Particulars Purchase of fixed assets/ bandwidth Entities where control exist Bharti Hexacom Ltd. Bharti Airtel (Services) Limited Network i2i Limited...

  • Page 172
    ... Companies Bharti Enterprises Limited Bharti Retail Ltd. Mehrauli Realty and Consultants Limited * refer note 38(i) For the year ended For the year ended March 31, 2015 March 31, 2014 18 95 1,256 101 9 2 20 72 5,295 3 Purchase of Investments/Subscription to share capital Entities where control...

  • Page 173
    Bharti Airtel Limited Corporate Overview Statutory Reports FINANCIAL STATEMENTS Financial Statements Notes to financial statements (` Millions) S.No Particulars Network i2i Limited Airtel M Commerce Services Limited Telesonic Networks Limited Bharti Airtel (Japan) Kabushiki Kaisha Bharti Airtel...

  • Page 174
    ... Limited Bharti Airtel (USA) Ltd. Bharti Airtel (UK) Ltd. Bharti Airtel (Hongkong) Ltd. Airtel Bangladesh Ltd. Bharti Telemedia Ltd. Bharti Infratel Ltd. Bharti Airtel Lanka (Pvt.) Ltd. Network i2i Limited Airtel M Commerce Services Limited Nxtra Data Limited Telesonic Networks Limited Bharti Airtel...

  • Page 175
    ... Airtel Limited Corporate Overview Statutory Reports FINANCIAL STATEMENTS Financial Statements Notes to financial statements (` Millions) S.No 7 Particulars Fund transferred/Expenses incurred on behalf of others Entities where control exist Bharti Hexacom Ltd. Bharti Airtel (Services) Limited...

  • Page 176
    ...M Commerce Services Limited Group Companies Bharti Enterprises Limited Bharti Retail Ltd. Centum learning Limited Beetel Teletech Limited 11 Donation Entities where Key Management Personnel and their relatives exercise significant inï¬,uence Bharti Foundation 12 Security deposit given/Advances paid...

  • Page 177
    Bharti Airtel Limited Corporate Overview Statutory Reports FINANCIAL STATEMENTS Financial Statements Notes to financial statements (` Millions) S.No Particulars Entity having significant inï¬,uence over the Company Bharti Telecom Ltd. 13. Refund of Capital Advance Entity where control exist ...

  • Page 178
    ... Key Management Personnel and their relatives exercise significant inï¬,uence Bharti Airtel Employees Welfare Trust 18 Interest charged by others Entities where control exist Bharti Hexacom Ltd. Bharti Infratel Ltd. 19 Interest charged by the Company Entities where control exist Telesonic Networks...

  • Page 179
    Bharti Airtel Limited Corporate Overview Statutory Reports FINANCIAL STATEMENTS Financial Statements Notes to financial statements (` Millions) S.No Particulars Entities where Key Management Personnel and their relatives exercise significant inï¬,uence Bharti Airtel Employees Welfare Trust 22 ...

  • Page 180
    ... financial statements 49. Operating Lease Operating lease as a lessee The lease rentals charged during the year for cancellable/non-cancellable leases relating to rent of building premises and cell sites as per the agreements and maximum obligation on long-term non-cancellable operating leases are...

  • Page 181
    Bharti Airtel Limited Corporate Overview Statutory Reports FINANCIAL STATEMENTS Financial Statements Notes to financial statements 50. Employee Stock Compensation (i) Pursuant to the shareholders' resolutions dated February 27, 2001 and September 25, 2001, the Company introduced the "Bharti ...

  • Page 182
    ... March 31, 2015 and March 31, 2014, respectively. (vii) The information concerning stock options granted, exercised, forfeited and outstanding at the year-end is as follows: As of March 31, 2015 Particulars Equity Settled Plans Scheme I - 2006 Plan Outstanding at beginning of year Granted Exercised...

  • Page 183
    Bharti Airtel Limited Corporate Overview Statutory Reports FINANCIAL STATEMENTS Financial Statements Notes to financial statements As of March 31, 2015 Particulars Scheme 2005 - Special ESOP & RSU Plan Outstanding at beginning of year Granted Exercised Forfeited / Expired Outstanding at end of ...

  • Page 184
    ...) 5.86 0.63 Options Granted during the year ended March 31, 2015 Options (thousands) Weighted average Fair Value (`) Options Excercised during the year ended March 31, 2015 Options (thousands) Weighted average share price (`) Equity settled Plans 2006 Plan 2008 Plan & AGP 390 2,534 5.00 to 110...

  • Page 185
    Bharti Airtel Limited Corporate Overview Statutory Reports FINANCIAL STATEMENTS Financial Statements Notes to financial statements (ix) The fair value of the options granted was estimated on the date of grant using the Black- Sholes/Monte Carlo Lattice valuation model with the following ...

  • Page 186
    ...each (36% of face value) for financial year 2013-14 which was duly approved by the shareholders of the Company in the Annual General Meeting held on September 5, 2014. During the year ended March 31, 2015, on August 13, 2014, the Board of Directors declared an interim dividend for ` 1.63 per equity...

  • Page 187
    ...fee in Delhi High Court, notice issued by HC and listed for hearing on May 6, 2015. 55. During the year ended March 31, 2014, the Company has transferred co-ownership of three undersea cables having net WDV of ` 2,725 Mn to its wholly owned subsidiary Network i2i Limited, a company incorporated and...

  • Page 188
    ...Trade and Other Payables Equity Employee Benefits Fair Value of Financial Assets and Liabilities Related Party Transactions Lease Disclosure Commitments and Contingencies Earnings Per Share Financial Risk Management Objectives and Policies New Developments Companies in the Group, Joint Ventures and...

  • Page 189
    ... Airtel Limited Corporate Overview Statutory Reports FINANCIAL STATEMENTS Financial Statements Independent Auditor's Report To the Board of Directors of Bharti Airtel Limited We have audited the accompanying consolidated financial statements ('financial statements') of Bharti Airtel Limited...

  • Page 190
    ...Associates LLP Chartered Accountants ICAI Firm Registration No: 101049W per Nilangshu Katriar Partner Membership No: 58814 Place: New Delhi Date: April 28, 2015 For and on behalf of the Board of Directors of Bharti Airtel Limited Year ended March 31, 2015 53,083 Year ended March 31, 2014 30,194 (69...

  • Page 191
    Bharti Airtel Limited Corporate Overview Statutory Reports FINANCIAL STATEMENTS Financial Statements Consolidated Statement of Financial Position Particulars Assets Non-current assets Property, plant and equipment Intangible assets Investment in joint ventures and associates Other investments ...

  • Page 192
    ...400 For and on behalf of the Board of Directors of Bharti Airtel Limited Sunil Bharti Mittal Chairman Rajendra Chopra Company Secretary Gopal Vittal Managing Director & CEO (India & South Asia) Srikanth Balachandran Global Chief Financial Officer Particulars (` Millions, except as stated otherwise...

  • Page 193
    ... New Delhi Date: April 28, 2015 For and on behalf of the Board of Directors of Bharti Airtel Limited Sunil Bharti Mittal Chairman Rajendra Chopra Company Secretary Gopal Vittal Managing Director & CEO (India & South Asia) Srikanth Balachandran Global Chief Financial Officer Consolidated Financial...

  • Page 194
    ... financial statements Corporate Information Bharti Airtel Limited ("Bharti Airtel" or "the Company" or "the Parent") is domiciled and incorporated in India and its shares are publicly traded on the National Stock Exchange ("NSE") and the Bombay Stock Exchange ("BSE"), India. The Registered office...

  • Page 195
    Bharti Airtel Limited Corporate Overview Statutory Reports FINANCIAL STATEMENTS Financial Statements Notes to consolidated financial statements 3.2 Basis of consolidation The consolidated financial statements comprise the financial statements of the Company and its subsidiaries as disclosed...

  • Page 196
    ... relating to the joint venture and associate is included in the carrying amount of the investment and is neither amortised nor individually tested for impairment. 3.5 Current versus non-current classification The Group presents assets and liabilities in statement of financial position based...

  • Page 197
    Bharti Airtel Limited Corporate Overview Statutory Reports FINANCIAL STATEMENTS Financial Statements Notes to consolidated financial statements hundred thousand or less, which has an independent use, is amortised over a period of twelve months from the date placed in service. c. Bandwidth ...

  • Page 198
    ... through a sale transaction and a sale is considered highly probable. The sale is considered highly probable only when the asset or disposal group is available for immediate sale in its present condition, it is unlikely that the sale will be withdrawn and sale is expected within one year from the...

  • Page 199
    Bharti Airtel Limited Corporate Overview Statutory Reports FINANCIAL STATEMENTS Financial Statements Notes to consolidated financial statements Operating lease payments are recognised as an expense on a straight-line basis over the lease term. Contingent rents are recognised as expense in the...

  • Page 200
    ... rate risk. The Group designates certain interest rate swaps to hedge the risk of changes in fair value of recognised borrowings. The Group documents at the time of designation the relationship between hedging instruments and hedged items, as well as its risk management objectives and strategy...

  • Page 201
    Bharti Airtel Limited Corporate Overview Statutory Reports FINANCIAL STATEMENTS Financial Statements Notes to consolidated financial statements 2. Cash ï¬,ow hedge The Group applies cash ï¬,ow hedge accounting for hedge of foreign currency risk in a highly probable forecast transaction. Any ...

  • Page 202
    ... Group. For defined benefit retirement plans, the difference between the fair value of the plan assets and the present value of the plan liabilities is recognised as an asset or liability in the statement of financial position. Scheme liabilities are calculated using the projected unit credit...

  • Page 203
    ... services, roaming charges, activation fees, processing fees and fees for value added services ('VAS'). Service revenues also include revenues associated with access and interconnection for usage of the telephone network of other operators for local, domestic long distance and international calls...

  • Page 204
    ... arrangements The Group has entered into certain multipleelement revenue arrangements. These arrangements involve the delivery or performance of multiple products, services or rights to use assets including VSAT and internet equipment, internet and VSAT services, set top boxes and subscription fees...

  • Page 205
    Bharti Airtel Limited Corporate Overview Statutory Reports FINANCIAL STATEMENTS Financial Statements Notes to consolidated financial statements reduction in goodwill. All other acquired tax benefits are recognised in profit or loss on satisfaction of the recognition criteria. The carrying ...

  • Page 206
    ... financial statements Significant Accounting Judgements, Estimates and Assumptions The preparation of the Group's consolidated financial statements requires management to make judgements, estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities...

  • Page 207
    Bharti Airtel Limited Corporate Overview Statutory Reports FINANCIAL STATEMENTS Financial Statements Notes to consolidated financial statements in use, certain assumptions are required to be made in respect of highly uncertain matters, including management's expectations of growth in EBITDA, ...

  • Page 208
    ... in the amortisation income/ charge. The Group believes that the change in such KPIs will not have any material effect on the financial statements. i. Contingencies Refer Note 36 (ii) for details of contingencies. consider contributions from employees or third parties when accounting for defined...

  • Page 209
    Bharti Airtel Limited Corporate Overview Statutory Reports FINANCIAL STATEMENTS Financial Statements Notes to consolidated financial statements adoption of the amendments will have any significant impact on the consolidated financial statements. e. Amendments to IAS 16 and IAS 38: Clarifi...

  • Page 210
    ... data telecom services provided through wireless technology (2G/3G/4G) in India. This includes the captive national long distance networks which primarily provide connectivity to the mobile services business in India. This also includes intra city fibre networks and Mobile commerce services. Mobile...

  • Page 211
    ... in Nigeria, costs relating to post-acquisition integration activities, other costs attributable to restructuring activities, income due to premature termination of an agreement by a telecom operator, income on account of divestment of telecom towers in one of the countries in Africa and charges on...

  • Page 212
    ...financial statements 788,468 159,070 24,154 54,898 52,943 70,854 130,199 19,626 211,850 28,323 967 1,281 172,525 1,162,523 (547,337) (546,063) 1,831,772 1,192,110 Particulars Mobile Services India Mobile Services South Asia Revenue from external customers 446,896 16,945 Annual Report 2014-15...

  • Page 213
    Bharti Airtel Limited Corporate Overview Statutory Reports FINANCIAL STATEMENTS Financial Statements Notes to Particulars consolidated financial statements (` Millions) As of March 31, 2015 8,510 59,502 5,750 100,194 47,567 15,949 237,472 As of March 31, 2014 3,580 62,627 9,319 77,297 5,388 ...

  • Page 214
    ... that once commercial operations are launched, subject to certain terms and conditions, the Company had the option to assume complete ownership and financial responsibility for the BWA entities by the end of 2014. With this acquisition, the Group had secured high speed data leadership. During the...

  • Page 215
    ... purchase agreement with Warid Telecom Uganda LLC and Warid Uganda Holding Inc to acquire 100% equity interest in Warid Telecom Uganda Limited to consolidate its position as the second largest mobile operator in Uganda. The transaction was closed on May 13, 2013. The acquisition was accounted for...

  • Page 216
    ...) Particulars Access charges Licence fees, revenue share and spectrum charges Network operations cost Employee costs Selling, general and administrative expenses Charity & donations * Total * including expenses incurred toward corporate social responsibility. Notes Year ended March 31, 2015 112...

  • Page 217
    Bharti Airtel Limited Corporate Overview Statutory Reports FINANCIAL STATEMENTS Financial Statements Notes to consolidated financial statements Selling, general and administrative expenses include the following: (` Millions) Particulars Trading inventory consumption Dimunition in value of ...

  • Page 218
    ... As of March 31, 2014 Number of Weighted average share options exercise price (`) Year ended March 31, 2015 (4) 722 718 Year ended March 31, 2014 8 396 404 (Share options in thousands) Equity Settled Plans Scheme I - 2006 Plan Outstanding at beginning of year Granted Exercised Forfeited / Expired...

  • Page 219
    ... Airtel Limited Corporate Overview Statutory Reports FINANCIAL STATEMENTS Financial Statements Notes to consolidated financial statements (Share options in thousands) Scheme 2005 - LTI Plan (2011 & 2012) Outstanding at beginning of year Granted Exercised Forfeited / Expired Outstanding at end...

  • Page 220
    ....40 Bharti Infratel 2008 Plan Bharti Infratel LTI Plan (Part of 2008 Plan) Cash settled Plans Bharti Airtel Bharti Airtel PUP 2013 PUP 2014 1,435 5,548 238 - 1.37 2.81 5.34 140 5,909 138 378.92 383.98 336.29 589 46 354.24 262.40 Bharti Infratel Performance Unit Plan 218 Annual Report 2014...

  • Page 221
    Bharti Airtel Limited Corporate Overview Statutory Reports FINANCIAL STATEMENTS Financial Statements Notes to March 31, 2014 consolidated financial statements Options Outstanding as of March 31, 2014 Entity Plan Options (thousands) Exercise price (`) Weighted average remaining contractual ...

  • Page 222
    ...373.7 to 393.9 0 to 5 378.00 Year ended March 31, 2014 8.38% to 8.80% 16 to 60 months 30.96% to 39% 0.31% to 0.50% 318.9 to 337.4 0 to 5 197.60 - Bharti Infratel Limited (the subsidiary of the Company) has issued fresh equity shares to its employees under the equity settled share based compensation...

  • Page 223
    ... During the year ended March 31, 2015, the group had recognised additional tax charge of ` 537 Mn on account of changes in tax rates (including ` 336 Mn relating to India on account of change in tax rate from 33.99% to 34.61% as proposed in Finance Bill, 2015). Consolidated Financial Statements 221

  • Page 224
    ... debtors/advances and other provisions Losses available for offset against future taxable income Employee share options Post employment benefits Minimum tax credit Lease rent equalisation - expense Fair valuation of financial assets/derivative instruments/other investments and unrealised exchange...

  • Page 225
    Bharti Airtel Limited Corporate Overview Statutory Reports FINANCIAL STATEMENTS Financial Statements Notes to Particulars consolidated financial statements (` Millions) Year ended March 31, 2015 2,639 (1,867) (565) 131 8,012 929 (2,354) (5,157) (376) (514) (231) 3,594 (411) 3,830 Year ended ...

  • Page 226
    ...,054 Mn as of March 31, 2015 and March 31, 2014, respectively. The distribution of the same is expected to attract tax in the range of NIL to 20% depending on the tax rates applicable as of March 31, 2015 in the jurisdiction in which the respective Group entity operates. 224 Annual Report 2014-15

  • Page 227
    Bharti Airtel Limited Corporate Overview Statutory Reports FINANCIAL STATEMENTS Financial Statements Notes to consolidated financial statements 14. Property, Plant and Equipment (` Millions) Land and buildings Technical equipment and machinery 992,407 3,233 (13,029) (63,660) 24,943 100,406 1,...

  • Page 228
    ... details towards security and pledge). 15. Intangible Assets (` Millions) Particulars Cost As of April 1, 2013 Additions Acquisition through Business Combinations^ Adjustments relating to Fair value remeasurement ^ Disposals / adjustment Currency translation Reclassification * As of March 31, 2014...

  • Page 229
    Bharti Airtel Limited Corporate Overview Statutory Reports FINANCIAL STATEMENTS Financial Statements Notes to consolidated financial statements (` Millions) Particulars Net Carrying Amount As of April 1, 2013 As of March 31, 2014 As of March 31, 2015 412,423 469,136 414,823 4,507 4,763 3,597 ...

  • Page 230
    ... CGU group 'Mobile Services - Africa') for the year ended March 31, 2014. Growth rates: The growth rates used are in line with the long term average growth rates of the respective industry and country in which the entity operates and are consistent with the forecasts included in the industry reports...

  • Page 231
    Bharti Airtel Limited Corporate Overview Statutory Reports FINANCIAL STATEMENTS Financial Statements Notes to consolidated financial statements 17.1.1 Investments in Joint Ventures 17.1.1 (a) Investments in Indus Towers Limited Summarised financial information of Indus Towers Limited based ...

  • Page 232
    ...' Net profit / (loss) Other comprehensive income / (loss) Total comprehensive income / (loss) Unrecognised losses Refer note 36 for Group's share of associates commitments. Year ended March 31, 2015 (284) (34) (318) 231 Year ended March 31, 2014 (412) 3 (409) 254 230 Annual Report 2014-15

  • Page 233
    Bharti Airtel Limited Corporate Overview Statutory Reports FINANCIAL STATEMENTS Financial Statements Notes to consolidated financial statements 17.2 Investments in subsidiaries The details (Principal place of operation/country of incorporation, principal activities and percentage of ownership...

  • Page 234
    ... recognised on the interest rate swaps and loss of ` 7,454 Mn and gain of ` 3,275 Mn has been recognised on the non-convertible bonds on account of changes in fair value with respect to the hedged risk during the year ended March 31, 2015 and March 31, 2014, respectively. 232 Annual Report 2014-15

  • Page 235
    Bharti Airtel Limited Corporate Overview Statutory Reports FINANCIAL STATEMENTS Financial Statements Notes to consolidated financial statements 19. Other Financial Assets (a) Non-current (` Millions) Particulars Security deposits Restricted cash Rent equalisation Claims recoverable Others ...

  • Page 236
    ... the year ended March 31, 2014 21,571 5,781 1,197 (2,681) 25,868 The Group has taken borrowings from banks and financial institutions which carry charge over certain of the above assets. Details towards security and pledge of the above assets are given under Note 26. Refer Note 38 on credit risk...

  • Page 237
    Bharti Airtel Limited Corporate Overview Statutory Reports FINANCIAL STATEMENTS Financial Statements Notes to consolidated financial statements 23. Prepayments and Other Assets (` Millions) Particulars Prepaid expenses Employee receivables Advances to suppliers Taxes receivable Others Total ...

  • Page 238
    ...2015 and March 31, 2014, respectively, for the impact of change in fair value with respect to the hedged risk. 26.2 Short term debts and current portion of long term debts (` Millions) Particulars Secured Term loans Bank overdraft Total Add: Current portion of long term debts ** Total secured loans...

  • Page 239
    Bharti Airtel Limited Corporate Overview Statutory Reports FINANCIAL STATEMENTS Financial Statements Notes to consolidated financial statements 26.3 The Group borrowed ` 344,586 Mn and ` 361,215 Mn during the year ended March 31, 2015 and March 31, 2014...095 537,618 Fixed rate borrowings 19 160...

  • Page 240
    ... from the highly probable forecasted transaction relating to the sale of telecom towers (Refer Note 42), the Group has reclassified ` 80,190 Mn, from "Long term debts" to "Short term debts and current portion of long term debts" during the year ended March 31, 2015. 238 Annual Report 2014-15

  • Page 241
    Bharti Airtel Limited Corporate Overview Statutory Reports FINANCIAL STATEMENTS Financial Statements Notes to consolidated financial statements 26.8 Security details The Group has taken borrowings in various countries towards funding of its acquisition and working capital requirements. The ...

  • Page 242
    ... Airtel Africa B.V, Bharti Infratel Limited, and their respective subsidiaries) to create or allow to exist any security interest on any of its assets without prior written consent of the majority lenders except in certain agreed circumstances. The Company's 3G/BWA borrowings: The INR term loan...

  • Page 243
    Bharti Airtel Limited Corporate Overview Statutory Reports FINANCIAL STATEMENTS Financial Statements Notes to consolidated financial statements The movement of provision towards subjudice matters disclosed under other non-financial assets, non-current (refer Note 20), other non - financial ...

  • Page 244
    ... Thousands) Particulars Opening balance Purchased during the year Issued during the year Closing balance As of March 31, 2015 2,375 (964) 1,411 As of March 31, 2014 3,937 (1,562) 2,375 As of March 31, 2015 342 (228) 114 (` Millions) As of March 31, 2014 674 (332) 342 b) 242 Annual Report 2014-15

  • Page 245
    Bharti Airtel Limited Corporate Overview Statutory Reports FINANCIAL STATEMENTS Financial Statements Notes to consolidated financial statements (ii) Other Reserves (` Millions) Foreign currency translation reserve (32,571) 15,794 Hedge of net investment in foreign operation Cash ï¬,ow hedge ...

  • Page 246
    ...,041 Year ended March 31, 2014 4,439 4 4,443 8,874 1,807 10,681 7,195 1,223 8,418 32. Employee Benefits The following table sets forth the changes in the projected benefit obligation and plan assets and amounts recognised in the consolidated statement of financial position as of March 31, 2015...

  • Page 247
    ... Rate Expected Rate of increase in Compensation levels Expected Rate of Return on Plan Assets Expected Average remaining working lives of employees (years) As of March 31, 2015 8.50% 10.00% 8.00% 24.95 years As of March 31, 2014 8.00% 10.00% 8.00% 25.47 years Consolidated Financial Statements...

  • Page 248
    ... other long term employee benefits: Deferred incentive plan (` Millions) Particulars Opening Balance Addition Utilisation Closing Balance For the year ended March 31, 2015 1 (1) For the year ended March 31, 2014 1 (1) (64) (6) 69 (139) 75 110 Gratuity Compensated absence 246 Annual Report 2014-15

  • Page 249
    Bharti Airtel Limited Corporate Overview Statutory Reports FINANCIAL STATEMENTS Financial Statements Notes to consolidated financial statements Long term service award (` Millions) Particulars Estimated liability As of March 31, 2015 194 As of March 31, 2014 148 Statement of Employee bene...

  • Page 250
    ...on readily observable market parameters. The valuation models used by the Group reï¬,ect the contractual terms of the derivatives, including the period to maturity, and market-based parameters such as interest rates, foreign exchange rates, and volatility. These models do not contain a high level of...

  • Page 251
    Bharti Airtel Limited Corporate Overview Statutory Reports FINANCIAL STATEMENTS Financial Statements Notes to consolidated financial statements cost of contracts on the measurement date, as well as estimating the maximum potential value of the contracts over their remaining lives, considering...

  • Page 252
    ... Financial assets Other financial assets Financial liabilities Other borrowings- fixed rate Other financial liabilities As of March 31, 2014 Level 1 Level 2 25,126 231,797 27,395 Level 3 - During the year ended March 31, 2015 and March 31, 2014, there were no transfers between Level 1 and Level...

  • Page 253
    Bharti Airtel Limited Corporate Overview Statutory Reports FINANCIAL STATEMENTS Financial Statements Notes to consolidated financial statements Following table describes the valuation techniques used and key inputs to valuation within level 2 and 3, and quantitative information about signifi...

  • Page 254
    ...) Exchange difference on translation of foreign operation recognised in OCI Closing balance For the year ended March 31, 2015 2,997 (181) For the year ended March 31, 2014 3,583 (713) (331) 2,485 127 2,997 * Out of these gains / (losses), loss of ` 342 Mn and gain of ` 801 Mn relates to assets...

  • Page 255
    Bharti Airtel Limited Corporate Overview Statutory Reports FINANCIAL STATEMENTS Financial Statements Notes to consolidated financial statements 34. Related Party Transactions Related party transactions represent transactions entered into by the Group with entities having significant inï¬,...

  • Page 256
    ... network equipments. Expenses incurred by/for the Group - include expenses of general and administrative nature. Sale of services - includes primarily billing for broadband, international long distance services, mobile, access and roaming services. Purchase of services - includes primarily billing...

  • Page 257
    Bharti Airtel Limited Corporate Overview Statutory Reports FINANCIAL STATEMENTS Financial Statements Notes to consolidated financial statements The future minimum lease payments obligation disclosed above include the below future minimum lease payments obligations payable to joint ventures, ...

  • Page 258
    ...395 Mn as of March 31, 2015 and March 31, 2014, respectively. b. Guarantees (` Millions) Particulars Financial bank guarantees* # Guarantees to third parties As of March 31, 2015 109,395 3,130 As of March 31, 2014 65,167 3,005 * The Company has issued corporate guarantees of ` 3,365 Mn and ` 2,741...

  • Page 259
    ... 31, 2015 and March 31, 2014 relate to cenvat claimed on tower and related material, levy of service tax on SIM cards, cenvat credit disallowed for procedural lapses and inadmissibility of credit, disallowance of cenvat credit used in excess of 20% limit and service tax demand on employee talk time...

  • Page 260
    ... stated in point (iii) above, TDSAT has pronounced its judgement on April 23, 2015, directing DoT to rework and issue fresh demands to the operators. vii. On January 8, 2013, DoT issued a demand on the Company and one of its subsidiaries for ` 52,013 Mn towards levy of one time spectrum charge. The...

  • Page 261
    Bharti Airtel Limited Corporate Overview Statutory Reports FINANCIAL STATEMENTS Financial Statements Notes to consolidated financial statements Under the transaction to acquire 65% controlling stake in Airtel Networks Limited in 2006, the erstwhile selling shareholders were obliged under the ...

  • Page 262
    ... appropriate financial risk governance frame work for the Group are accountable to the Board Audit Committee. This process provides assurance to the Group's senior management that the Group's financial risk-taking activities are governed by appropriate policies and procedures and that financial...

  • Page 263
    ... as a hedge of the net investment in foreign operations or cash ï¬,ow hedge of a highly probable forecast transaction. (` Millions) Particulars For the year ended March 31, 2015 US Dollars Euro CHF Others For the year ended March 31, 2014 US Dollars Euro CHF Others Change in currency exchange rate...

  • Page 264
    ... risk of changes in market interest rates relates primarily to the Group's debt interest obligations. Further, the Group engages in financing activities at market linked rates, any changes in the interest rates environment may impact future rates of borrowing. To manage this, the Group may enter...

  • Page 265
    ... business unit subject to the Group's established policy, procedures and control relating to customer credit risk management. Trade receivables are noninterest bearing and are generally on 14 days to 30 days credit term except in case of balances due from trade receivables in Airtel Business Segment...

  • Page 266
    ... for all Notes to 2) consolidated financial statements Financial instruments and cash deposits Credit risk from balances with banks and financial institutions is managed by Group's treasury in accordance with the Board approved policy. Investments of surplus funds are made only with approved...

  • Page 267
    Bharti Airtel Limited Corporate Overview Statutory Reports FINANCIAL STATEMENTS Financial Statements Notes to consolidated financial statements Capital management Capital includes equity attributable to the equity holders of the Parent. The primary objective of the Group's capital management ...

  • Page 268
    ... services Mobile commerce services Mobile commerce services Infrastructure services Infrastructure services Investment company Investment company Investment company Investment company Direct to Home services Submarine cable system Holding, finance services and management services Other Africa India...

  • Page 269
    Bharti Airtel Limited Corporate Overview Statutory Reports FINANCIAL STATEMENTS Financial Statements Notes to consolidated financial statements Additionally the Group also controls the trusts as mentioned in Note 40(b) below. Information of Group's directly and indirectly held subsidiaries, ...

  • Page 270
    ...) Limited (subsidiary w.e.f. August 9, 2013) Airtel Mobile Commerce (Tanzania) Limited Airtel Mobile Commerce Tchad S.a.r.l. Airtel Mobile Commerce Uganda Limited Airtel Mobile Commerce Zambia Limited Airtel Money (RDC) S.p.r.l. Nigeria Tanzania Gabon Madagascar Malawi Sierra Leone Netherlands...

  • Page 271
    Bharti Airtel Limited Corporate Overview Statutory Reports FINANCIAL STATEMENTS Financial Statements Notes to consolidated financial statements S. No. Name of Subsidiary Principal place of operation / Country of Incorporation Principal Activities Percentage of ownership interest and ...

  • Page 272
    ... for sale. ## Dissolved / sold during the year ended March 31,2015. (b) Details of controlled trust: S. No. 1 2 Name of trust Bharti Airtel Employees' Welfare Trust Bharti Infratel Employees' Welfare Trust Principal place of operation / country of incorporation India India 270 Annual Report 2014...

  • Page 273
    Bharti Airtel Limited Corporate Overview Statutory Reports FINANCIAL STATEMENTS Financial Statements Notes to (c) consolidated financial statements Details of joint ventures: Percentage of ownership interest and voting power (direct / indirect) - effective shareholding held by the Group As ...

  • Page 274
    ...the statement of financial position. These assets and liabilities are included under "Mobile Services Africa" segment in Segment Reporting. 42 Non-current Assets Held for Sale a. During the year ended March 31, 2015, the Group decided to sell and lease back a dedicated portion of towers under long...

  • Page 275
    ...19 Telesonic Networks Limited b India Statutory Reports 20 Nxtra Data Limited b India 21 Bharti Infratel Services Limited b India 22 Airtel Broadband Services Private Limited (formerly known as Wireless Business Services Private Limited) USD USD USD XOF USD XOF USD XOF USD XOF USD CDF...

  • Page 276
    ..., 2013 Salient features of the financial statement of subsidiaries, associates and joint ventures for the year ended March 31, 2015 pursuant to Section 129 Sr. No. Name of the Subsidiary Note Country of Registration 35 Bharti Airtel Mali Holdings B.V. b Netherlands Annual Report 2014-15...

  • Page 277
    ... of the financial statement of subsidiaries, associates and joint ventures for the year ended March 31, 2015 pursuant to Section 129 Bharti Airtel Limited Sr. No. Name of the Subsidiary Note Country of Registration 68 SLL XOF USD XOF MWK XOF USD USD USD SCR TZS UGS UGS USD GHS USD SLL NGN SLL...

  • Page 278
    ... Telecom Uganda Limited h Uganda 108 Warid Congo S.A. (Subsidiary w.e.f. March 12, 2014) i Congo Brazzavile Subsidiaries yet to commence operations 1 Bharti Infratel Lanka (Private) Limited 2 Partnership Investment Sprl 3 Zap Trust Company Nigeria Limited 4 Bharti Airtel Developers...

  • Page 279
    ... capital Bharti Teleports Limited March 31, 2014 11,270,000 113 49% % of share capital (50) (2) - 2 Bridge Mobile Pte Limited Corporate Overview 3 FireFly Networks Limited (w.e.f. Feb 4, 2014) 4 Tanzania Telecommunications Company Limited 5 Seychelles Cable Systems Company Limited...

  • Page 280
    ...-18, Patliputra Industrial Area, Patna - 800013, Bihar Kerala & Tamil Nadu Oceanic Tower, 101, Santhome High Road, Santhome, Chennai - 600028, Tamil Nadu West Bengal & Odisha Infinity Building, Salt Lake Electronics Complex, Block GP, Sector V, Kolkata - 700091, West Bengal Delhi NCR Plot No. 16...

  • Page 281
    Notes

  • Page 282
    Notes

  • Page 283

  • Page 284