Airtel 2014 Annual Report Download - page 142

Notes to financial statements
Digital for all
Annual Report 2014-15
140
ii) Tax expense
(a) MAT credit includes income of ` 364 Mn (March 31,
2014 – ` 180 Mn), current tax includes income of
` Nil (March 31, 2014- income of ` 1,384 Mn) and
deferred tax includes income of ` 82 Mn (March 31,
2014 – expense of ` 76 Mn) relating to earlier years.
(b) 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.
9. Other Long-term Liabilities
(` Millions)
Particulars
As of
March 31,
2015
As of
March 31,
2014
Security deposit
received#
2,722 2,848
Equipment supply payable 452 2,287
Deferred revenue 15,535 13,433
Lease rent equalization 18,378 16,074
Others* 4,949 4,752
42,036 39,394
#Security deposit received represents refundable security deposits
received from subscribers on activation of connections granted thereto
and are repayable on disconnection, net of outstanding, if any and
security deposits received from channel partners. Trade receivables
are secured to the extent of the amount outstanding against individual
subscribers by way of security deposit received from them.
*Others as of March 31, 2015 includes ` 4,104 Mn (March 31, 2014 ` 4,104
Mn) payable to Qualcomm Asia Pacific Pte. Limited towards purchase of
balance equity shares upon satisfaction of certain conditions as per the
share purchase agreement for acquisition of Airtel Broadband Services
Private Limited (formerly know as Wireless Business Services Private
Limited) (refer note 38 (i)).
10. Long-term Provisions
(` Millions)
Particulars
As of
March 31,
2015
As of
March 31,
2014
Provision for employee
benefits (refer note 40)
Provision for gratuity 1,137 1,269
Provision for long
term service award
86 105
1,223 1,374
Other provisions
Provision for asset
retirement obligation
746 721
1,969 2,095
The Company uses various premises on lease to install
its equipments. A provision is recognised for the costs
to be incurred for restoration of these premises at the
end of the lease period. It is expected that this provision
will be utilized at the end of the lease period of the
respective sites as per the respective lease agreements.
The movement of provision in accordance with AS–29
Provisions, Contingent liabilities and Contingent Assets’,
is given below:
(` Millions)
Particulars
For the
year ended
March 31,
2015
For the
year ended
March 31,
2014
Opening balance 721 440
Addition (net) 25 281
Closing balance 746 721