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Bharti Airtel Limited | Annual Report 2015-16
Transformational
NetworkENRICHING EXPERIENCE.
ENDURING VALUE.

Table of contents

  • Page 1
    Transformational Network ENRICHING EXPERIENCE. ENDURING VALUE. Bharti Airtel Limited | Annual Report 2015-16

  • Page 2
    ... in New Delhi, India, the Company ranks among the top 3 mobile service providers globally in terms of subscribers. In India, the Company's product offerings include 2G, 3G and 4G wireless services, mobile commerce, fixed line services, high speed DSL broadband, IPTV, DTH, enterprise services...

  • Page 3
    ... Market Share Touching Lives Our Winning Strategy Imagine Our Network of Possibilities Product Portfolio Financial Progress Achievements in FY 2015-16 Message from Chairman Message from Managing Director & CEO (India & South Asia) Message from Executive Chairman (Africa) A Bold Leap Forward A New...

  • Page 4
    ..., we at Bharti Airtel crossed major milestones in almost every aspect of the business. During the year, we emerged as the world's third largest mobile operator in terms of subscribers. We bolstered our operating efficiencies, margins and revenue market share significantly in India. We embarked...

  • Page 5
    Bharti Airtel Limited 02-39 Corporate Overview 40-125 | Statutory Reports 126-355 | Financial Statements Touching Lives through the transformative power of communication #1 Ranked telecom operator in India #2 Ranked telecom operator in Africa #3 Ranked telecom operator globally (in terms ...

  • Page 6
    ... experience Empower homes through high-speed broadband, low-cost access and bundling Win DTH through a disproportionate share of digitisation and innovation Win with a war on waste Drive cost efficiency initiatives Lower costs and maximising sharing Reduce waste by network re-design Win with...

  • Page 7
    Bharti Airtel Limited 02-39 Corporate Overview 40-125 | Statutory Reports 126-355 | Financial Statements Value Enablers Large residual opportunity with bulk investments in place We have large residual opportunities in India and Africa; and are well positioned to capture future growth through our...

  • Page 8
    ...services under wireless and fixed line technology, national and international long distance connectivity, Digital TV and IPTV services; and complete integrated telecom solutions to our enterprise customers. Through 'Airtel Money' we are driving financial inclusion by offering convenience of payments...

  • Page 9
    ... Airtel Limited 02-39 Corporate Overview 40-125 | Statutory Reports 126-355 | Financial Statements Product Portfolio Mobile Services First to launch 4G in India Pocket-friendly data packs Seamless 3G connectivity Wide range of plans to choose from Telemedia Landline Attractive plans and offers...

  • Page 10
    Transformational Network Financial Progress Financial Year Ended March 31 Operating Highlights Total Customer Base Mobile Services Broadband & Telephone Services Digital TV Services Units 000s 000s 000s 000s 2012 251,646 241,148 3,270 7,228 2013 271,227 259,844 3,283 8,100 2014 295,948 283,580...

  • Page 11
    Bharti Airtel Limited 02-39 Corporate Overview 40-125 | Statutory Reports 126-355 | Financial Statements Credible Growth Revenue ` Mn 920,394 965,321 EBITDA ` Mn 314,517 341,902 Incremental EBITDA Margin % 57 61 5% Y-o-Y 9% Y-o-Y 361 bps Y-o-Y Cost Efficiency Opex Productivity1 % 43.79 ...

  • Page 12
    ...2015. 15 May June July August September Airtel becomes the third largest mobile operator in the world. Signed an agreement to acquire 100% equity stake in Augere Wireless Broadband India. Introduced new range of 'Infinity Plans' (industry first plan) and an industry first technology platform...

  • Page 13
    ...by Olleh Rwanda Networks (ORN). October November January February March 16 Launched high speed 4G services commercially in 334 towns across India. Concluded the sale of about 9,000 telecom towers in eight African countries. Total proceeds from all the concluded transactions is over USD 1.8 Bn...

  • Page 14
    ... over these issues, operators globally have steadily come to terms with complex regulatory issues. 19.6% of our total customer base in Africa are data customers Early on during the year, Airtel moved past a key milestone, when it became the world's third largest mobile operator (by subscribers...

  • Page 15
    Bharti Airtel Limited 02-39 Corporate Overview 40-125 | Statutory Reports 126-355 | Financial Statements Riding on rapid increase in smartphone penetration, data revenues continued to be a key driving force of our incremental revenues, both in India and Africa. 'Project Leap', involving a ...

  • Page 16
    ...all companies in India. 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...

  • Page 17
    ... level onto the national and international stage. In 2015, 476,000 boys and girls in 28,000 teams participated in the ARS, which is a 6.25% participation growth year-on-year. Airtel Africa's Corporate Social Responsibility programmes are focused on health, education, environment and the development...

  • Page 18
    ... home broadband network by upgrading our copper assets through new-age Vectoring Technology. This technology will enable us to offer 50 Mbps speeds from its current 16 Mbps by 2016-17. In addition, we plan to deploy fibre network to homes, offering up to 100 Mbps speeds. 16 Annual Report 2015...

  • Page 19
    Bharti Airtel Limited 02-39 Corporate Overview 40-125 | Statutory Reports 126-355 | Financial Statements World-class Indoor Experience in Every City: We will deploy a range of solutions including small cells, carrier aggregation solutions, Wi-Fi and the use of multiple technologies across ...

  • Page 20
    ... live in. Growing the Wynk Family Launched in 2014, Wynk Music today is one of the most popular music apps with over 10 Mn songs played daily. On an average, active users spend 5.25 hours every month on the app, ensuring high product quality in the music and entertainment space. 18 Annual Report...

  • Page 21
    Bharti Airtel Limited 02-39 01-36 Corporate Overview 37-118 | Statutory Reports 40-125 Statements 126-355 120-272 | Financial Statements Pre on Post Pre on post is another industry first. A person who has a corporate account can simply do a prepaid data recharge on the corporate number. Pre on ...

  • Page 22
    ... fast cash load and seamless experience for customers. Customer base achieved by Airtel Digital TV within eight years of inception 12 Mn+ App registrations in 2015-16 Payments Bank License cities to further enhance customer on-boarding experience. We constantly work on advancing our technology to...

  • Page 23
    ...Airtel Limited 02-39 01-36 Corporate Overview 37-118 | Statutory Reports 40-125 Statements 126-355 120-272 | Financial Statements Strengthening Airtel Business Airtel Talk Our global Voice over IP (VoIP) calling and messaging application 'Airtel Talk' has grown significantly and now has presence...

  • Page 24
    ... fostering development by changing the face of communications. Africa now has a new narrative to share with the world. Customers (51% growth from FY 2014-15) engaged through social media across Africa 6.2 Mn Launched self-service Value Added Services (VAS) in Nigeria, where customers can activate...

  • Page 25
    ... intermediary billing platform, connected to multiple vendors. It allows mobile users pay for a range of services and digital goods through their mobile phone. The connected home solution offers technology agnostic facility of data sharing, at Home (over Wi-Fi) and outside home among family, friends...

  • Page 26
    ... Director Mr. D. K. Mittal Independent Director Mr. Manish Kejriwal Independent Director CHAIRMAN MEMBER Audit & Risk Management Committee HR & Nomination Committee Stakeholders' Relationship Committee Corporate Social Responsibility Committee Committee of Directors 24 Annual Report 2015...

  • Page 27
    Bharti Airtel Limited 02-39 Corporate Overview 40-125 | Statutory Reports 126-355 | Financial Statements Mr. Ben Verwaayen Independent Director Mr. Rakesh Bharti Mittal Non-Executive Director Mr. V. K. Viswanathan Independent Director Mr. Shishir Priyadarshi Independent Director Ms. Tan Yong...

  • Page 28
    ...Team (Asia) Award' at the Adam Smith Asia Awards 2015. Bharti Airtel won the 'Data Security Council of India (DSCI) Excellence Award' for security in Telecom at the NASSOCM-DSCI Annual Information Security Summit 2015. 5 Bharti Airtel's e-Shakti (Andhra Pradesh) won 'Telecom Service Provider' Award...

  • Page 29
    ... 126-355 | Financial Statements 6 Bharti Airtel honoured with 'Company of the Year for Sustainability Telecommunication India & South Asia' Award at the IAIR Awards 2016. Bharti Airtel was recognised for 'Best Corporate Social Responsibility Practices' and 'Community Development' at the Global CSR...

  • Page 30
    ... of the world's leading providers of telecommunication services, we are committed to conducting our business responsibly and sustainably, with engagement and dialogue with all key stakeholders. Our network is touching and transforming the lives of millions of people across South Asia and Africa; and...

  • Page 31
    Bharti Airtel Limited 02-39 Corporate Overview 40-125 | Statutory Reports 126-355 | Financial Statements Catalysts of Change: Education in Rural India I. Satya Bharti School Program This year the Foundation has initiated year-long celebrations, commemorating 10 years of the Satya Bharti School ...

  • Page 32
    ...-level students for volunteer work carried out in their communities. Satya Bharti Senior Secondary School, Rauni, Ludhiana (Punjab) won the International School Award (2015-2018), instituted by the British Council, for their outstanding project on learning in the global context. Satya Bharti Schools...

  • Page 33
    Bharti Airtel Limited 02-39 Corporate Overview 40-125 | Statutory Reports 126-355 | Financial Statements Satya Bharti Learning Centres - Key Performance Indicators: Centres Children impacted Children enrolled Children mainstreamed Percentage of girls Percentage of SC/ST/ OBC students Education ...

  • Page 34
    ... provided separate toilet blocks for girl students. V. Higher Education Programs Bharti Foundation partnered with Indian Institute of Technology, Delhi in 2,000 to set up the Bharti School of Telecommunication Technology and Management, IIT Delhi. The Foundation has also set up the Bharti Centre...

  • Page 35
    Bharti Airtel Limited 02-39 Corporate Overview 40-125 | Statutory Reports 126-355 | Financial Statements Airtel Connect Airtel Delhi Half Marathon The Airtel Delhi Half Marathon (ADHM) has created an impressive platform to bring together corporates, individuals, employees and students of schools...

  • Page 36
    ... Madhya Pradesh, Andhra Pradesh and Rajasthan in FY 2015-16 Time for Celebrations Various initiatives were undertaken at different locations across India, celebrating festivals and events. To celebrate Children's Day and Diwali with the kids, the teams bearing gifts from Airtel Circle Office at...

  • Page 37
    ... to bring Chennai and Cuddalore back to normalcy. The rescue team worked with local support groups, police action groups and community volunteer groups to help save lives. Our Bihar and Jharkhand Circles donated ` 958,735 to the Chief Minister's Relief Fund on behalf of Bharti Airtel for the...

  • Page 38
    ... cost for service providers by eliminating operational waste, but also promotes optimal use of resources. In FY 2015-16, 45% incremental sites were deployed as sharer sites, reducing the energy consumption by a minimum 30% over standalone sites. Innovative Network Technologies Conversion of...

  • Page 39
    Bharti Airtel Limited 02-39 Corporate Overview 40-125 | Statutory Reports 126-355 | Financial Statements Outdoor Site Deployment During the year, over 90% of the new sites were deployed as outdoor, eliminating air-conditioner usage. In addition, 80% of the sites have been installed with Auto-TRX...

  • Page 40
    ... Airtel DRC launched 'Airtel Santé info' a mobile health service offered for its subscribers. The service offers free consultations and vaccinations, in partnership with the Medical Action Board Association. We continued to support the survivors of Ebola epidemic by providing start-up capital...

  • Page 41
    ... the country to improve their ICT skills Accolades Recognition by the African Union for Airtel's Ebola related initiatives in Africa. Airtel Malawi was awarded a premium Awardee in the Corporate Social Responsibility category during the Top Employers Nigeria SERA 2015 - Best Company in CSR health...

  • Page 42
    ...Network Business Responsibility Report Stakeholder Engagement Customer Value Products Lifecycle Sustainability Employees' Wellbeing Ethics, Transparency and Accountability Business Responsibility Environment Human Rights Policy Advocacy Inclusive Growth... Bharti Mittal 40 Annual Report 2015-16

  • Page 43
    ... Services a. Number of International Locations - The Company has its business operations in 20 countries that includes India, Sri Lanka, Bangladesh and 17 countries in the African continent. Number of National Locations - Headquartered in New Delhi, Bharti Airtel Limited has its business activities...

  • Page 44
    ... our partners. 2. 3. Section D Business Responsibility Information 1. Details of Director / Directors responsible for BR a) Details of Director / Directors responsible for the implementation of BR policy / policies DIN Number 00042494 Name Mr. Rakesh Bharti Mittal Designation Director Details of...

  • Page 45
    Bharti Airtel Limited 02-39 | Corporate Overview 40-125 Statutory Reports 126-355 | Financial Statements (a) Sl. No. 1. 2. 3. 4 Details of Compliance (Reply in Y/N) Questions Do you have a policy / policies for...Has the policy been formulated in consultation with the relevant stakeholders? ...

  • Page 46
    ... of India (COAI), conducts several awareness building sessions over the issue. War on Waste is one of the key business priorities of Bharti Airtel. In line with this, the Company continues to take initiatives and develops innovative technologies to minimise waste that is generated by its operations...

  • Page 47
    Bharti Airtel Limited 02-39 | Corporate Overview 40-125 Statutory Reports 126-355 | Financial Statements Principle 3 Employees' Wellbeing Bharti Airtel acknowledges the immense potential of its human capital, and therefore, 'Win with People' is one of WKHÇŒYHNH\EXVLQHVVSULRULWLHVRIWKH&...

  • Page 48
    ...'s strategies to remain aligned with its sustainability vision, it launched a comprehensive and a structured 'Airtel Sustainability Plan 2020'. The Plan outlines the Company's corporate responsibility and how it aspires to empower millions more through social and economic development. Annual Report...

  • Page 49
    Bharti Airtel Limited 02-39 | Corporate Overview 40-125 Statutory Reports 126-355 | Financial Statements In addition to driving social inclusion, Bharti Airtel makes its presence felt in the communities it serves and also where its employees live and work. The Company is focused on creating a ...

  • Page 50
    ... taxation Net Income / (Loss) ` USD Millions Millions* 1,009,373 378,133 15,415 5,775 FY 2014-15 ` USD Millions Millions* 961,007 356,978 15,728 5,872 Company Overview Bharti Airtel is among the top three mobile service providers globally with presence in 20 countries, including India, Sri Lanka...

  • Page 51
    ... three international credit rating agencies. Directors and Key Managerial Personnel Inductions, Re-appointments, Retirements & Resignations In line with the Company's policy on Independent Directors, the term of Ms. Obiageli Ezekwesili ended on September 25, 2015. Mr. Rajan Bharti Mittal resigned...

  • Page 52
    ... Annual Report (for Abridged Annual Report please refer page no. 84). During FY 2015-16, Augere Wireless Broadband India Private Limited (AWBIPL) and Airtel Money Transfer Limited became subsidiaries of the Company, and AWBIPL is in the process of amalgamation with the Company. Airtel DTH Services...

  • Page 53
    ...their lives through its core competencies. It is passionate to actively support Bharti Foundation and its educational and other initiatives. Airtel's sustainability and business responsibility initiatives have been detailed in its Sustainability Reports, which can be located on the Company's website...

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

  • Page 55
    Bharti Airtel Limited 02-39 | Corporate Overview 40-125 Statutory Reports 126-355 | Financial Statements Section 134(3) of the Companies Act, 2013, read with the Rule 8 of Companies (Accounts of Companies) Rules, 2014 LVDQQH[HGDV$QQH[XUH) to this report. Particulars of Employees Disclosures ...

  • Page 56
    ... (MD & CEO - India & South Asia) Mr. Sundar Rajan R (Group General Counsel) Mr. Arvind Chopra (Group Director - Internal Assurance) 0U'HYHQ.KDQQD 'LUHFWRU&0'Å¡V2ÇŒFH  Mr. Srikanth Balachandran (Global CHRO) Mr. Harjeet Kohli (Group Treasurer) Mr. Ajai Puri (Director - Market Operations) Mr...

  • Page 57
    Bharti Airtel Limited 02-39 | Corporate Overview 40-125 Statutory Reports 126-355 | Financial Statements Sl. No. Particulars x) xi) xii) xiii) xiv) xv) xvi) xvii) Ms. Harmeen Mehta (Global CIO) Mr. Srini Gopalan (Director - Consumer Business) Mr. Moti Gyamlani (Director - Supply Chain) Mr. ...

  • Page 58
    ... including Independent Directors), Key Managerial Personnel ("KMP") and persons who may be appointed in Senior Management positions. To lay down criteria for determining the Company's approach to ensure adequate diversity in its Board. To retain, motivate and promote talent and to ensure long term...

  • Page 59
    ... KRAs), his / her respective 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...

  • Page 60
    ... Audit Report (Financial Year ended March 31, 2016) The Members Bharti Airtel Limited Bharti Crescent, 1, Nelson Mandela Road, Vasant Kunj, Phase-II, New Delhi - 110070 We have conducted the secretarial audit of the compliance of applicable statutory provisions and the adherence to good corporate...

  • Page 61
    .... Annexure A to the Secretarial Audit Report The Members Bharti Airtel Limited Bharti Crescent, 1, Nelson Mandela Road, Vasant Kunj, Phase-II, New Delhi - 110070 1. Maintenance of secretarial record is the responsibility of the management of the Company. Our responsibility LV WR H[SUHVV DQ...

  • Page 62
    ... provided in the Corporate Social Responsibility & Sustainability Report section of the Annual Report. 2. Composition of CSR Committee Name Mr. Rakesh Bharti Mittal, Chairman Mr. D. K. Mittal Mr. Gopal Vittal Designation Non-Executive Director Independent Director Managing Director & CEO (India...

  • Page 63
    ... statement of the CSR Committee  7KH&RPPLWWHHFRQÇŒUPVWKDWWKHLPSOHPHQWDWLRQDQGPRQLWRULQJRI&653ROLF\LVLQFRPSOLDQFHZLWK&65REMHFWLYHVDQG policy of the Company. Gopal Vittal Managing Director & CEO (India & South Asia) Rakesh Bharti Mittal Chairman, CSR Committee Board's Report...

  • Page 64
    ... - II, New Delhi - 110 070. Phone : +91 11 4666 6100 Yes Karvy Computershare Private Limited Karvy Selenium Tower B, Plot number 31 & 32, Gachibowli, Financial District, Nanakramguda, Hyderabad - 500032, India. Phone : +91 040 6716 2222 Whether listed company Name, Address and Contact details of...

  • Page 65
    ... Reports 126-355 | Financial Statements Sl. No. 10 11 12 13 14 15 16 17 18 19 20 21 Name of the Company Address CIN / Registration No. % of shares held 100 100 100 100 100 100 100 100 100 100 100 100 Nxtra Data Limited Wynk Limited Augere Wireless Broadband India Private Limited Airtel...

  • Page 66
    ... Limited Airtel Towers (S.L.) Company Limited Airtel Uganda Limited Bharti Airtel Africa B.V. Immeuble Kube B, Zone Galaxy, Andraharo, 101 -Anantanarivo, Madagascar $LUWHO&RPSOH[&LW\&HQWUH2Ç‹&RQYHQWLRQ Drive, P.O Box 57, Lilongwe, Malawi 25, Regent Road, Hill Station, Freetown, Sierra Leone...

  • Page 67
    Bharti Airtel Limited 02-39 | Corporate Overview 40-125 Statutory Reports 126-355 | Financial Statements Sl. No. 66 67 68 69 70 71 72 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 Name of the Company Address CIN / Registration No. % of shares held 100 100 100 96.36 100 100 100 100 100 100 ...

  • Page 68
    ... Tchad Towers S.A. Towers Support Nigeria Limited (under liquidation) Warid Telecom Uganda Limited (under amalgamation) Zap Trust Company Nigeria Limited (under liquidation) Bharti Airtel Rwanda Holdings Limited (formerly known as Zebrano (Mauritius) Limited) Airtel Money Transfer Limited 107 108...

  • Page 69
    Bharti Airtel Limited 02-39 | Corporate Overview 40-125 Statutory Reports 126-355 | Financial Statements IV. Shareholding Pattern (Equity Share Capital Breakup as percentage of Total Equity) (i) Category-wise Shareholding: Category of Shareholders No. of shares held at the beginning of the year ...

  • Page 70
    ...% of total shares of the Company No. of shares % of total shares of the Company 43.72% April 01, 2015 1 Bharti Telecom Limited 1,747,545,460 May 08, 2015 December 18, 2015 December 25, 2015 December 31, 2015 February 05, 2016 February 12, 2016 February 19, 2016 February 26, 2016 March 04, 2016...

  • Page 71
    Bharti Airtel Limited 02-39 | Corporate Overview 40-125 Statutory Reports 126-355 | Financial Statements Sl. No. Name of the Shareholder Shareholding No. of Shares % of total shares of the Company Cumulative Shareholding during the Year No. of Shares % of total shares of the Company 1.45 1.45...

  • Page 72
    ... total Shares shares of the Company Key Managerial Personnel Mr. Gopal Vittal Managing Director & CEO (India & South Asia) 1 114,885 0.00% April 01, 2015 114,885 0.00% May 01, 2015 August 14, 2015 September 18, 2015 December 18, 2015 March 31, 2016 April 01, 2015 March 25, 2016 March 31, 2016...

  • Page 73
    Bharti Airtel Limited 02-39 | Corporate Overview 40-125 Statutory Reports 126-355 | Financial Statements V. Indebtedness Indebtedness of the Company including interest outstanding / accrued but not due for payment (` Millions) Secured Loans excluding deposits Indebtedness at the beginning of ...

  • Page 74
    ...Ezekwesili ended on September 25, 2015. (2) Appointed w.e.f. January 07, 2016. (3) Ceased to be Director of the Company w.e.f. January 07, 2016. C. Remuneration to Key Managerial Personnel other than Managing Director / Whole-time Director / Manager: (` Millions) Total Amount Sl. No. Particulars...

  • Page 75
    Bharti Airtel Limited 02-39 | Corporate Overview 40-125 Statutory Reports 126-355 | Financial Statements Annexure F Particulars of Energy Conservation, Technology Absorption and Foreign Exchange Earnings and Outgo ORZHU HQHUJ\ FRQVXPSWLRQ DQG PRUH HÇŽFLHQW cooling. Installed Variable ...

  • Page 76
    ... KDQGRYHUV in 3G & 2G network, thus reducing the drop calls. Real time balancing of network load across congested and non-congested sites have reduced overloading, thus improving user throughput and blocking in the network. Real time optimisation has improved network utilisation WKXV LPSURYLQJ...

  • Page 77
    Bharti Airtel Limited 02-39 | Corporate Overview 40-125 Statutory Reports 126-355 | Financial Statements can check feasibility, services and plans and purchase new FRQQHFWLRQV RU PDNH FKDQJHV WR H[LVWLQJ RQHV DOO RQOLQH through www.airtel.in. Airtel stores also provide a world FODVV ...

  • Page 78
    ... 11.91 at March 31, 2015 i.e. an increase of 56.01%. Percentage increase in the market quotation of shares of the Company as compared to the rate of last SXEOLFRǁHU The closing price of Company's equity shares of face value of ` 5/- each on NSE and BSE as of March 31, 2016 was ` 350.80 and ` 350...

  • Page 79
    Bharti Airtel Limited 02-39 | Corporate Overview 40-125 Statutory Reports 126-355 | Financial Statements vi. Average percentage increase already made in the salaries of employees other than the managerial personnel in )

  • Page 80
    ... Financial Year Sl. No. Name Designation 1 A Ganesh Sr. VP - Distribution Head 2 Abhay Savargaonkar Director Networks & CTO Annual Report 2015-16 3 Aditya Kohli Head HR - Enabling Functions 4 Ajai Puri Director - Market Operations 5 Ajay Jain Circle CTO 6 Ajay Chitkara Director...

  • Page 81
    ...Name Designation Bharti Airtel Limited 37 Dushyant Kumar Head Central Operations Group 38 Gaurav Khandelwal Commercial Controller - Consumer Business 39 Gautam Anand Head HR S&D CS DTH 40 George Mathen CEO - Market Operations Tamil Nadu 41 Gopal Vittal MD & CEO - India & South Asia...

  • Page 82
    ... / Head Operation - South Zone Coke / General Chief Accountant Radius Synergies International P.Ltd. / COO COLT Technologies / Consultant M/s BPL Cellular Ltd / Zonal Sales Manager Tulip Telecom Ltd. / COO- North and Head- International Business BPL Mobile Ltd / Product Manager Cummins India Limited...

  • Page 83
    ... Millwardbrown India Pvt Ltd / MD Delhi & Head Client Solutions Unicom Infotel / Director-Sales Bharti Cellular Limited. / CMD Tech M / Corperate Head Director Reliance Infocom Ltd. / Product Manager-Marketing Standard Chartered Bank / Management Trainee Reliance Infocom / Cluster Head Bharti Airtel...

  • Page 84
    ...employment / Designation Passet Consulting Private Limited / Director Yahoo / Senior Director HUL / Business Head Essar Services India Pvt Ltd / President - Group Assurance and Cost Control Idea Cellular / Sr. Manager Bharti Retail / Sr. VP Genpact / Vice president HR Shared Services Nokia / Head of...

  • Page 85
    ... `) Bharti Airtel Limited Sl. No. Name Designation 36 Srikanth Karra Director - Human Resources 37 Sucheta Mahapatra Head Business Strategy & Support 38 Sundar Rajan R Group General Counsel 39 Tejinder Pal Singh Circle CTO 40 Venkatesh Rangachari COO - Mobility 02-39 | Corporate...

  • Page 86
    ... to creating value for our stakeholders, while ensuring highest standards of corporate governance. GDP Growth Trend (%) Actual 2014 2015 World Output Advanced Economies Emerging and Developing Economies China India Bangladesh Sri-Lanka Sub-Saharan Africa (Source - IMF) Projections 2016 2017...

  • Page 87
    ...5.8% in 2016 and 2017, respectively on back of strong domestic demand, and higher private and public investments. Megatrends that drive the Company's business 1. Internet users in India have risen from 50 Mn in 2007 to 100 Mn in 2010; and more than 300 Mn in 2015. Of the 306 Mn internet users as on...

  • Page 88
    ... whereas the rural tele-density stood at 51.37%, as on March 31, 2016. India's telecom market is witnessing a strong growth of internet users; and now has the world's second highest number of internet users. The wire-line customer base is 25.22 Mn at WKHHQGRI0DUFKYLV¢YLV0QDW...

  • Page 89
    ...Wireless Limited and Aircel Cellular Limited to acquire rights to use 20 MHz 2300 Band 4G TD spectrum for eight circles namely, Tamil Nadu (including Chennai), Bihar, Jammu & Kashmir, West Bengal, Assam, North East, Andhra Pradesh; and Odisha at an aggregate consideration of ` 35,000 Mn. The closing...

  • Page 90
    ... they have to make a contribution of 0.6% of its annual gross revenues to the ICT development fund. Uganda, Kenya and Rwanda: The Governments in these three countries are pushing forward the agenda of the One Area Network. In the last quarter these *RYHUQPHQWV KDYH SURSRVHG WR H[SDQG WKH VFRSH...

  • Page 91
    ... market share (post deals with Videocon and Aircel); 4G and 3G carrier aggregation available in 12 and 8 circles, respectively. Presence: #1 telecom player in India and #3 worldwide. The Company is present in 20 countries across South Asia and Africa. Scale: The Company's revenue market share...

  • Page 92
    ... the year, the Company undertook several initiatives to meet and manage its long term funding. Primarily in Q1, the Company raised USD 1,000 Mn through the issuance of 4.375%, Guaranteed Senior Notes due 2025 at an issue price of 99.304%. As on March 31, 2016, the Company was rated 'Investment Grade...

  • Page 93
    Bharti Airtel Limited 02-39 | Corporate Overview 40-125 Statutory Reports 126-355 | Financial Statements term investments of ` 30,059 Mn. During the year ended March 31, 2016, the Company generated operating free FDVKǍRZRI` 135,981 Mn. The Company's consolidated net debt as on March 31, 2016...

  • Page 94
    ... Wireless Limited and Aircel Cellular Limited to acquire rights to use 20 MHz 2300 Band 4G TD spectrum for eight circles namely, Tamil Nadu (including Chennai), Bihar, Jammu & Kashmir, West Bengal, Assam, North East, Andhra Pradesh and Odisha at an aggregate consideration of ` 35,000 Mn. The closing...

  • Page 95
    ... voice, data, video, network integration, data centre, managed services, enterprise mobility applications and digital media. Airtel Business consistently delivers cutting-edge integrated solutions, superior customer service and unmatched depth / reach to global markets, to enterprises, governments...

  • Page 96
    ...% 16% 58% Gross Revenues EBIT 78,033 12,167 Key Initiatives Airtel has launched Smart MPLS services, wherein customers would be provided access to application performance management in addition to network performance management. Global Business has launched Direct Internet Access (DIA) product in...

  • Page 97
    ... of Airtel Kenya roaming in 16 Airtel Africa's countries will be treated as local customers on the visited network in terms of pricing, including receiving calls free of charge, while retaining their home SIM card.  $LUWHO*KDQDODXQFKHGWKHÇŒUVWHYHUWDSDQGSD\PRELOH money payment service in...

  • Page 98
    ... - Talk Chaw; Innovative Enterprise Product of the Year - One Network and Special Recognition to the Telecom Industry Award Lucy Quist. Airtel Nigeria emerges Telecom Company of the Year for its laudable contributions to the growth of the telecoms industry in Nigeria. Airtel Nigeria has been named...

  • Page 99
    ... Digital Marketing Campaign. Airtel Money Tanzania was recognised for the Best Mobile Money Product Innovation at Kalahari mobile money awards. South Asia Overview As on March 31, 2016, South Asia had 10.2 Mn mobile customers on the Company's network. Data customers represented 28.7% of the total...

  • Page 100
    ... business. Mitigation As a responsible corporate citizen, we engage proactively with key stakeholders in the countries in which we operate; and continuously assess the impact 98 Annual Report 2015-16 2. Economic Uncertainties (Operational) Risk Statement The Company's strategy is to focus on growth...

  • Page 101
    Bharti Airtel Limited 02-39 | Corporate Overview 40-125 Statutory Reports 126-355 | Financial Statements Mitigation As a global player with presence across 20 countries, we KDYHGLYHUVLÇŒHGRXUULVNVDQGRSSRUWXQLWLHVDFURVV markets. Through a variety of services including voice, data, Airtel ...

  • Page 102
    ... Statement Across markets, costs structures have been increasing both from volumes (new sites rollouts, capacity) or / and rate 100 Annual Report 2015-16 8. Issues Arising out of Emerging Businesses and New Technologies (Strategic) Risk Statement Evolving technologies result in change in customer...

  • Page 103
    Bharti Airtel Limited 02-39 | Corporate Overview 40-125 Statutory Reports 126-355 | Financial Statements a seamless manner and indoor environment has emerged as a key competitive parameter. Digital content and apps have now become the favourites for mobile customers. Digital Mobile money ...

  • Page 104
    ...ǍLFWV Material Developments in Human Resources At Bharti Airtel, talent has always been key to our sustainable growth. From the roll-out of 4G technology to the latest GLJLWDODSSVEULOOLDQWFXVWRPHUH[SHULHQFHDQGQHZVHUYLFH propositions, our people are involved in both design and H[HFXWLRQ...

  • Page 105
    ... was ranked No 1 in Business Today's Best Companies to Work For survey in the telecom sector, and No 8 overall. In Africa, Airtel was awarded the Best Organisation in the L&D category in the Café Africa 2015 eLearning International Conference. In another prestigious recognition, an Airtel employee...

  • Page 106
    ...2015 (Listing Regulations) and some of the best practices followed internationally on Corporate Governance, the following report on governance lays down the ethos of Bharti Airtel Limited (Bharti Airtel / Airtel / the Company) and its commitment to conduct business in accordance with sound Corporate...

  • Page 107
    ... of Indian and South Asia. He is supported by the Airtel Management Board (AMB). The Company's business in India is structured into four business units (BUs) i.e. Mobile Services, Telemedia Services, Airtel Business and Digital TV Services, each headed by a Business President / CEO. The Passive...

  • Page 108
    ... with the top management team, business and functional heads, among others, and also includes visit to networks centre to understand the operations and technology. Apart from the induction programme, the Company periodically presents updates at the Board / Committee meetings to familiarise the...

  • Page 109
    Bharti Airtel Limited 02-39 | Corporate Overview 40-125 Statutory Reports 126-355 | Financial Statements   HYRWLRQ RI VXÇŽFLHQW WLPH DQG DWWHQWLRQ WRZDUGV ' professional obligations for independent decision making and for acting in the best interest of the Company. Providing strategic ...

  • Page 110
    ... ended on September 25, 2015. As on March 31, 2016, apart from Mr. Gopal Vittal, Managing Director & CEO (India & South Asia) who holds 2,29,885 equity shares, no other Director of the Company holds shares in the Company. Board meeting for the quarter ended September 30, 2015 was held for two days...

  • Page 111
    Bharti Airtel Limited 02-39 | Corporate Overview 40-125 Statutory Reports 126-355 | Financial Statements Directors' Remuneration The details of the remuneration of Directors during FY 2015-16 are given below: (Amount in `) Name of Director Sitting Fees Salary and allowances Performance linked ...

  • Page 112
    ... & CEO (India & South Asia), the Managing Director & CEO (Africa), the Global CFO, the Group Director - Internal Assurance, the Statutory Auditors and the Internal Auditors are permanent invitees. The Chairman of the Committee was present at the last AGM held on August 21, 2015. Key Responsibilities...

  • Page 113
    ... of treasury policies, strategies and status of investor relation activities. (QVXUH WKDW WKH LQWHUQDO DXGLW IXQFWLRQ LV HÇ‹HFWLYH  adequately resourced, and to review coordination between Internal and Statutory Auditors and (where relevant) the risk management department. Review the...

  • Page 114
    ...Financial Reporting Standards (IFRS) and issuing a report thereon. The Ombudsperson is responsible for the Company's Whistle Blower Mechanism. The Company has in place an Internal Assurance Group (IAG) headed by Group Director - Internal Assurance. The Company has also appointed M/s. KPMG, New Delhi...

  • Page 115
    ... for employees. Review employee development strategies. Assess the learning and development needs of the Directors and recommend learning opportunities, which can be used by Directors to meet their needs for development. Review all human resource related issues, including succession plan of key...

  • Page 116
    ... Committee During FY 2015-16, the Committee met four times i.e. April 28, 2015, August 04, 2015, October 25, 2015 and January 28, 2016. The composition and the attendance of members at the meetings held during FY 2015-16, are given below: Name Category Number of meetings attended (total held during...

  • Page 117
    Bharti Airtel Limited 02-39 | Corporate Overview 40-125 Statutory Reports 126-355 | Financial Statements Name Category Mr. Rakesh Bharti Mittal, Chairman1 Mr. D. K. Mittal Mr. Gopal Vittal Mr. Manish Kejriwal Mr. Rajan Bharti Mittal, Chairman2 Non-Executive Director Independent Director ...

  • Page 118
    ... Business Responsibility.   RQVLGHU RWKHU IXQFWLRQV DV GHÇŒQHG E\ WKH %RDUG RU & as may be stipulated under any law, rule or regulation including the Listing Regulations, Corporate Social Responsibility Voluntary Guidelines, 2009 and the Companies Act, 2013.  116 Annual Report 2015...

  • Page 119
    Bharti Airtel Limited 02-39 | Corporate Overview 40-125 Statutory Reports 126-355 | Financial Statements On the recommendation of the CSR Committee, the Board had approved the Corporate Social Responsibility (CSR Policy) of the Company. The CSR Policy intends to strive for economic development ...

  • Page 120
    ...is available on the Company's website www.airtel.com. The Code is applicable to all Board members and Senior Management Personnel who directly report to the Chairman, the Managing Director & CEO (India & South Asia). The Code is circulated to all Board members and Senior Management Personnel and its...

  • Page 121
    ... Airtel Limited 02-39 | Corporate Overview 40-125 Statutory Reports 126-355 | Financial Statements Policy intends to ensure that proper reporting, approval and disclosure processes are in place for all transactions between the Company and related parties. The Policy is posted on the website...

  • Page 122
    ... queries of the investors / analysts. These calls are webcast live and transcripts posted on the website. In addition, discussion with the management team is webcast and also aired on the electronic media. (iii) Separate posts of Chairman and CEO The positions of the Chairman of the Board and the...

  • Page 123
    ... investors and other general information about the Company are available on the website www.airtel.com. Since the time of listing of shares, Bharti Airtel adopted a practise of releasing a quarterly report, which contains ÇŒQDQFLDODQGRSHUDWLQJKLJKOLJKWVNH\LQGXVWU\DQG&RPSDQ\ developments...

  • Page 124
    ...15 Aug-15 Dec-15 Mar-16 Jul-15 Jun-15 Oct-15 Sep-15 Jan-16 Apr-15 Bharti Airtel Share Price Note: Base 100 = April 01, 2015 BSE Sensex Bharti Airtel Share Price NSE Nifty Registrar and Transfer Agent All the work related to share registry, both in physical and electronic form, is handled by the...

  • Page 125
    Bharti Airtel Limited 02-39 | Corporate Overview 40-125 Statutory Reports 126-355 | Financial Statements Distribution of Shareholding By number of shares held as on March 31, 2016 Sl. no. 1 2 3 4 5 6 7 8 Category ( by no. of shares) 1 - 5000 5001 - 10000 10001 - 20000 20001 - 30000 30001 - 40000...

  • Page 126
    ...II, New Delhi - 110 070 Telephone no.: +91 11 46666100 Fax no.: +91 11 46666137 Website: www.airtel.com Address Mr. Harjeet Kohli Corporate Head Treasury & Investor Relations Mr. Raza Khan Head - Group Corporate Communications Karvy Computershare Pvt. Ltd. [email protected] For Corporate Communication...

  • Page 127
    Bharti Airtel Limited 02-39 | Corporate Overview 40-125 Statutory Reports 126-355 | Financial Statements Annexure A Declaration ,KHUHE\FRQÇŒUP...RI&RQGXFW For Bharti Airtel Limited Place: Gurgaon Date: April 27, 2016 Gopal Vittal Managing Director & CEO (India & South Asia) Annexure B &...

  • Page 128
    ...Report Balance Sheet 6WDWHPHQWRI3URÇŸWDQG/RVV Cash Flow Statement Notes to Financial Statements 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. 21. 22. 23. Corporate Information Basis of Preparation 6XPPDU\RI6LJQLÇŸFDQW$FFRXQWLQJ3ROLFLHV Segment Reporting Share Capital...

  • Page 129
    ... statements of Bharti Airtel Limited ("the Company"), which comprises the Balance Sheet as at March 31, 2016, the 6WDWHPHQW RI 3URÇŒW DQG /RVV DQG &DVK )ORZ 6WDWHPHQW IRU WKH \HDU WKHQ HQGHG DQG D VXPPDU\ RI VLJQLÇŒFDQW accounting policies and other explanatory information...

  • Page 130
    ... dues including provident fund, employees' state insurance, income-tax, sales-tax, service tax, duty of customs, value added tax, cess and other material statutory dues applicable to it. The provisions relating to duty of excise are not applicable to the Company. According to the information and...

  • Page 131
    Bharti Airtel Limited 02-39 | Corporate Overview 40-125 | Statutory Reports 126-355 Financial Statements Independent Auditor's Report (b) According to the records of the Company, the dues outstanding of income-tax, sales-tax, service tax, duty of customs, value added tax and cess on account of ...

  • Page 132
    ... by the management, the Company has not entered into any non-cash transactions with directors or persons connected with him. (xvi) According to the information and explanations given to us, the provisions of section 45-IA of the Reserve Bank of India Act, 1934 are not applicable to the Company. (xi...

  • Page 133
    Bharti Airtel Limited 02-39 | Corporate Overview 40-125 | Statutory Reports 126-355 Financial Statements Independent Auditor's Report ANNEXURE 2 Annexure referred to in paragraph 2 of 'Report on other Legal and Regulatory Requirements' Report on the Internal Financial Controls under Clause (i) ...

  • Page 134
    ... 3ODFH*XUJDRQ 'DWH$SULO 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) Nilanjan Roy *OREDO&KLHI)LQDQFLDO2ÇŒFHU 132 Annual Report 2015-16

  • Page 135
    ...DWH$SULO 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) Nilanjan Roy *OREDO&KLHI)LQDQFLDO2ÇŒFHU Standalone Financial Statements (IGAAP) 133

  • Page 136
    ... 3ODFH*XUJDRQ 'DWH$SULO 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) Nilanjan Roy *OREDO&KLHI)LQDQFLDO2ÇŒFHU 134 Annual Report 2015-16

  • Page 137
    Bharti Airtel Limited 02-39 | Corporate Overview 40-125 | Statutory Reports 126-355 Financial Statements NotesWRÇŒQDQFLDOVWDWHPHQWV 1. Corporate Information Bharti Airtel Limited ('the Company') incorporated in India on July 7, 1995, is a company promoted by Bharti Telecom Limited ('BTL'), a ...

  • Page 138
    .... (iv) Other Acquired Intangible Assets Payment for the rights acquired for unlimited license access to various applications are recognised as other acquired intangibles. They are amortised on a straight line basis over the period of the agreements. 3.4. Leases (i) Where the Company is the lessee...

  • Page 139
    Bharti Airtel Limited 02-39 | Corporate Overview 40-125 | Statutory Reports 126-355 Financial Statements NotesWRÇŒQDQFLDOVWDWHPHQWV direct costs incurred in negotiating an operating lease are added to the carrying amount of the leased asset and recognised over the lease term on the same basis...

  • Page 140
    ..., 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 and data messaging services...

  • Page 141
    Bharti Airtel Limited 02-39 | Corporate Overview 40-125 | Statutory Reports 126-355 Financial Statements NotesWRnjQDQFLDOVWDWHPHQWV     ([FKDQJH'LǁHUHQFHV (  [FKDQJH GLNjHUHQFHV DULVLQJ RQ WKH VHWWOHPHQW of monetary items or on restatement of the &RPSDQ\šV PRQHWDU\ LWHPV DW ...

  • Page 142
    ... projected unit credit method. The Company presents the liability for compensated absences as a current liability in the balance sheet as it does not have an unconditional right to defer its settlement for 12 months after the reporting date. 3.15. Share Based Compensation The Company issues equity...

  • Page 143
    ... Reporting (i) Primary Segment The Company operates in three primary business segments viz. Mobile Services, Telemedia Services and Airtel Business. (ii) Secondary Segment The Company has operations serving customers within India as well as in other countries located outside India. The operations...

  • Page 144
    ... Airtel Business - These services cover end-to-end telecom solutions being provided to large Indian and global corporations by serving as a single point of contact for all telecommunication needs across data and voice (domestic as well as international long distance), network integration and managed...

  • Page 145
    Bharti Airtel Limited 02-39 | Corporate Overview 40-125 | Statutory Reports 126-355 Financial Statements NotesWRÇŒQDQFLDOVWDWHPHQWV Summary of the Segmental Information for the year ended and as of March 31, 2015 (` Millions) Particulars Mobile Services 464,426 18,508 482,934 112,562 ...

  • Page 146
    ... 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 the only reportable segment, the remaining portion...

  • Page 147
    Bharti Airtel Limited 02-39 | Corporate Overview 40-125 | Statutory Reports 126-355 Financial Statements NotesWRÇŒQDQFLDOVWDWHPHQWV a. Reconciliation of the equity shares outstanding at the beginning and at the end of the year Particulars $WWKHEHJLQQLQJRIWKH\HDU Issued during the year ...

  • Page 148
    ... dividend paid / proposed is net of credit of ` 1,807 Mn (March 31, 2015 - ` 1,221 Mn) on account of dividend distribution tax on dividend from subsidiary companies. 7. Long-term Borrowings (` Millions) Particulars Secured From Banks From Others Total secured Unsecured 1RQ&RQYHUWLEOH%RQGV 7HUP...

  • Page 149
    Bharti Airtel Limited 02-39 | Corporate Overview 40-125 | Statutory Reports 126-355 Financial Statements NotesWRÇŒQDQFLDOVWDWHPHQWV a. E Secured borrowings represent vehicle loans which are secured by hypothecation of vehicles of the Company. 'HWDLOVUHODWLQJWRPDWXULW\SURÇŒOHLQWHUHVW...

  • Page 150
    ..., 2015 `  0Q  SD\DEOH WR 4XDOFRPP $VLD 3DFLÇŒF 3WH /LPLWHG WRZDUGV purchase of balance equity shares upon satisfaction of certain conditions as per the share purchase agreement for acquisition of erstwhile Airtel Broadband Services Private Limited (formerly know as Wireless Business...

  • Page 151
    Bharti Airtel Limited 02-39 | Corporate Overview 40-125 | Statutory Reports 126-355 Financial Statements NotesWRÇŒQDQFLDOVWDWHPHQWV a. Details relating to interest rate and currency of short term borrowings (` Millions) As of March 31, 2016 Currency of Borrowings Rate of Interest (Weighted ...

  • Page 152
    ... for income tax (net of advance tax of ` Nil (March 31, 2015 `139,277 Mn) and includes `1LO7'6UHFHLYDEOHSURYLGHG for (March 31, 2015 ` 583 Mn) # Proposed dividend (refer note 51) Tax on dividend Total   498 454 730 1,184 450 720 1,170 As of March 31, 2016 As of March 31, 2015 5,436 1,107...

  • Page 153
    ...Millions) Depreciation Net Block As of March 31, 2016 962 1,743 As of March 31, 2016 As of March 31, 2016 2,705 813 149 As of April 1, 2015 Charge for the year 'LVSRVDOV adjustment 5HFODVVLÇ,FDWLRQ Building includes building on leashold land: Gross Block Bharti Airtel Limited Particulars As...

  • Page 154
    ...Intangible Assets Under Development Intangible assets under development includes the amount of spectrum allotted to the Company and related costs LQFOXGLQJERUURZLQJFRVWVFDSLWDOLVHGXQGHU$6ŞŠ%RUURZLQJ&RVWVš LIDQ\IRUZKLFKVHUYLFHVDUH\HWWREHUROOHGRXW 152 Annual Report 2015...

  • Page 155
    Bharti Airtel Limited 02-39 | Corporate Overview 40-125 | Statutory Reports 126-355 Financial Statements NotesWRÇŒQDQFLDOVWDWHPHQWV 17. Non-current Investments Trade Investments (at cost) Investment in Equity Instruments (unquoted unless otherwise stated) (` Millions) Number of Shares March ...

  • Page 156
    ...285 50 383,959 2 3 383,958 309,450 74,511 523,600 3 * During the year ended March 31, 2016, the Company has made a provision of `285 Mn due to decline other than temporary in the value of investment in Indo Teleports Limited (formerly Known as Bharti Teleports Limited). 154 Annual Report 2015-16

  • Page 157
    Bharti Airtel Limited 02-39 | Corporate Overview 40-125 | Statutory Reports 126-355 Financial Statements NotesWRÇŒQDQFLDOVWDWHPHQWV 18. Long-term Loans and Advances (` Millions) Particulars Unsecured, considered good unless stated otherwise Capital Advances &RQVLGHUHGJRRG  &RQVLGHUHG...

  • Page 158
    ...&DVK0DQDJHPHQW5HJXODU3ODQ*URZWK Sundram Money Fund Taurus Mutual Fund Franklin India Treasury Management Account /,&12085$0)/LTXLG)XQG*URZWK3ODQ Total Investment in Deposits and Bonds (Unquoted) India Innovation Fund 7.30% REC Secured Bonds 2015 Total 76   76 8   8 70 10 80...

  • Page 159
    Bharti Airtel Limited 02-39 | Corporate Overview 40-125 | Statutory Reports 126-355 Financial Statements NotesWRÇŒQDQFLDOVWDWHPHQWV 22. Trade Receivables (` Millions) Particulars Unsecured, unless stated otherwise Receivables outstanding for a period exceeding six months from the date they ...

  • Page 160
    ..., in compliance standards. with the applicable accounting Corporate Guarantees outstanding as of March 31, 2016 amounting to ` 798,800 Mn (March 31, 2015 - ` 857,497 Mn) have been given to banks, ÇŒQDQFLDOLQVWLWXWLRQVDQGWKLUGSDUWLHVRQEHKDOIRI Group Companies at no cost to the latter...

  • Page 161
    .... iv. v. 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 employee talk time. e) Standalone Financial Statements (IGAAP) 159

  • Page 162
    ... (IUC) agreements between the operators although the IUC rates are governed by the IUC guidelines issued by Telecom Regulatory Authority of India (TRAI). BSNL has raised a demand requiring the Company to pay the interconnect charges at the rates contrary to the regulations issued by TRAI. The &RPSDQ...

  • Page 163
    Bharti Airtel Limited 02-39 | Corporate Overview 40-125 | Statutory Reports 126-355 Financial Statements NotesWRÇŒQDQFLDOVWDWHPHQWV 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,...

  • Page 164
    ... on capital account and not provided for (net of advances) ` 45,115 Mn as of March 31, 2016 (March 31, 2015 ` 274,832 Mn) (including ` 10,970 Mn (March 31, 2015 Åž` 244,040 Mn) towards spectrum (refer note 37(ii)). Limited, Bharti Telemedia Limited, Airtel M Commerce Services Limited, Bharti...

  • Page 165
    Bharti Airtel Limited 02-39 | Corporate Overview 40-125 | Statutory Reports 126-355 Financial Statements NotesWRÇŒQDQFLDOVWDWHPHQWV 33. Power and Fuel, Rent, Charity and Donation and Other expenses (` Millions) Particulars Power and fuel Network Others Rent Network Others Charity and donation...

  • Page 166
    ...OLDELOLWLHV Total As of April 09, 2015 64,246 591 64,837 b.   $  FTXLVLWLRQV$GGLWLRQDO,QYHVWPHQWV1HZ Developments (i) The Scheme of Arrangements ('Scheme') under sections 391 to 394 of the Companies Act, 1956 with respect to amalgamation of Airtel Broadband Services Private Limited...

  • Page 167
    ...LPLWHG and its subsidiaries Dishnet Wireless Limited and Aircel cellular Limited, to acquire rights to use spectrum in the 2300 Mhz band for eight circles (viz. Tamil Nadu, Bihar, Jammu & Kashmir, West Bengal, Assam, North East, Andhra Pradesh and Odisha). The closing of the transaction is subject...

  • Page 168
    Transformational Network NotesWRÇŒQDQFLDOVWDWHPHQWV 38. As of March 31, 2016, Bharti Airtel Employee's Welfare Trust ('the Trust') holds 1,881,958 equity shares (of face value of ` 5 each) (March 31, 2015 1,410,642 equity shares) of the Company. Particulars As of March 31, 2016 1,410,642 1,500,...

  • Page 169
    Bharti Airtel Limited 02-39 | Corporate Overview 40-125 | Statutory Reports 126-355 Financial Statements NotesWRÇŒQDQFLDOVWDWHPHQWV For the year ended March 31, 2015: (` Millions) Particulars Current service cost Interest cost Expected return on plan assets Net actuarial (gain) / loss Total *...

  • Page 170
    ...end Net funded status of the plan Current Liabilities Non-Current Liabilities d) Gratuity 1,586 240 127 (305) (47) (14) 1,587 76 6 70 (152)   1,587 450 1,137 Leave Encashment 794 142 64 (133) (14) (133) 720 720 720 - The expected rate of return on plan assets was based on the average long-term...

  • Page 171
    Bharti Airtel Limited 02-39 | Corporate Overview 40-125 | Statutory Reports 126-355 Financial Statements NotesWRÇŒQDQFLDOVWDWHPHQWV  J  0RYHPHQWLQRWKHUORQJWHUPHPSOR\HHEHQHÇŒWV The provision for long term service award provided by the Company as of March 31, 2016 is ` 89 Mn (March 31...

  • Page 172
    ... interest rate). (m) Loans and advance in the nature of loan given to Bharti Airtel Employees Welfare Trust at nil interest rate is ` 516 Mn (March 31, 2015 ` 326 Mn at nil interest rate). Refer note 47 for outstanding balance at the end of the year for the above entities. 170 Annual Report 2015...

  • Page 173
    Bharti Airtel Limited 02-39 | Corporate Overview 40-125 | Statutory Reports 126-355 Financial Statements NotesWRÇŒQDQFLDOVWDWHPHQWV  ([SHQGLWXUH(DUQLQJVLQ)RUHLJQ&XUUHQF\ RQDFFUXDOEDVLV (` Millions) Particulars Expenditure 2QDFFRXQWRI Interest Bank charges Professional & ...

  • Page 174
    ... Key Management Personnel Sunil Bharti Mittal Gopal Vittal (ii) Other Related Parties D   (QWLWLHVZKHUHFRQWUROH[LVWÅž6XEVLGLDU\6XEVLGLDULHV RIVXEVLGLDU\ Bharti Hexacom Limited Bharti Airtel Services Limited Bharti Telemedia Limited Bharti Airtel (USA) Limited Bharti Airtel Lanka (Private...

  • Page 175
    Bharti Airtel Limited 02-39 | Corporate Overview 40-125 | Statutory Reports 126-355 Financial Statements NotesWRÇŒQDQFLDOVWDWHPHQWV Africa Towers Services Limited Airtel (Ghana) Limited Airtel (Seychelles) Limited Airtel (SL) Limited Airtel Burkina Faso S.A. Airtel Congo S.A Airtel DTH ...

  • Page 176
    ...Realty and Consultants Limited Nile Tech Limited Y2CF Digital Media Limited Bharti Enterprises Limited Atrium Restaurants India Private Limited Bharti Land Limited Centrum Work skills India Limited Augere Wireless Broadband India Private Limited (w.e.f. December 31, 2015) 174 Annual Report 2015-16

  • Page 177
    Bharti Airtel Limited 02-39 | Corporate Overview 40-125 | Statutory Reports 126-355 Financial Statements NotesWRÇŒQDQFLDOVWDWHPHQWV The details of amounts due to or due from the related parties as of March 31, 2016 and March 31, 2015 are as follows: (` Millions) Sr No Particulars 1 ...

  • Page 178
    Transformational Network NotesWRÇŒQDQFLDOVWDWHPHQWV The details of related party transactions entered into by the Company, for the years ended March 31, 2016 and March 31, 2015 are as follows: (` Millions) Sr No Particulars 1 Subsidiaries 3XUFKDVHRIÇŸ[HGDVVHWVEDQGZLGWK 6DOHRIÇŸ[HGDVVHWV...

  • Page 179
    Bharti Airtel Limited 02-39 | Corporate Overview 40-125 | Statutory Reports 126-355 Financial Statements NotesWRÇŒQDQFLDOVWDWHPHQWV (` Millions) Sr No Particulars 4 -RLQW9HQWXUH-RLQW9HQWXUHRI6XEVLGLDU\ 3XUFKDVHRI,QYHVWPHQWV6XEVFULSWLRQWRVKDUHFDSLWDO Sale of Investments 5HQGHULQJ...

  • Page 180
    ... same type with related parties during the year (` Millions) S. No 1 Particulars Subsidiaries Trade Receivables %KDUWL+H[DFRP/WG $LUWHO%URDGEDQG6HUYLFHV3YW/WG Bharti Airtel International (Netherlands) B.V. Loans & Advances (including accrued interest, wherever applicable) %KDUWL7HOHPHGLD...

  • Page 181
    Bharti Airtel Limited 02-39 | Corporate Overview 40-125 | Statutory Reports 126-355 Financial Statements...6HUYLFHV/LPLWHG Employee related expenses ...Bharti Airtel International (Netherlands) B.V 2 Group Companies...2016 For the year ended March 31, 2015 Standalone Financial Statements (IGAAP) 179

  • Page 182
    ...WKH\HDUHQGHG0DUFK with respect to stock options granted. # Value of PLI considered above represents incentive at 100% performance level. However, same will be paid on the basis of actual performance parameters in next year. * Inclusive of all applicable taxes 180 Annual Report 2015-16

  • Page 183
    Bharti Airtel Limited 02-39 | Corporate Overview 40-125 | Statutory Reports 126-355 Financial Statements NotesWRÇŒQDQFLDOVWDWHPHQWV 48. Lease a) Operating lease - As a lessee The lease rentals charged during the year for cancellable/non-cancellable leases relating to rent of building premises...

  • Page 184
    ... 27, 2001 and September 25, 2001, the Company introduced the "Bharti Tele-Ventures Employees' Stock Option Plan" (hereinafter called "the Old Scheme") under which the Company decided to grant, from time to time, options to the employees of the Company and its subsidiaries. The grant of options to...

  • Page 185
    Bharti Airtel Limited 02-39 | Corporate Overview 40-125 | Statutory Reports 126-355 Financial Statements NotesWRÇŒQDQFLDOVWDWHPHQWV (iv) The following table provides an overview of all existing share option plans of the Company: As of March 31, 2016 Year of issuance of plan Vesting period (...

  • Page 186
    ... and outstanding at the year-end is as follows: As of March 31, 2016 Particulars Number of share options (thousands) Weighted average exercise price (`) As of March 31, 2015 Number of Weighted average share options exercise price (thousands) (`) Equity Settled Plans Scheme I - 2006 Plan 2XWVWDQGLQJ...

  • Page 187
    Bharti Airtel Limited 02-39 | Corporate Overview 40-125 | Statutory Reports 126-355 Financial Statements NotesWRÇŒQDQFLDOVWDWHPHQWV As of March 31, 2016 Particulars Number of share options (thousands) Weighted average exercise price (`) As of March 31, 2015 Number of Weighted average share ...

  • Page 188
    ... is based on the historical volatility of the share price since the Company's equity shares became publicly traded. (x) Bharti Infratel Limited (BIL) has given stock options to certain employees of the Company and the corresponding compensation cost is borne by BIL. 186 Annual Report 2015-16

  • Page 189
    Bharti Airtel Limited 02-39 | Corporate Overview 40-125 | Statutory Reports 126-355 Financial Statements NotesWRÇŒQDQFLDOVWDWHPHQWV 50. Forward Contracts & Derivative Instruments and Unhedged Foreign Currency Exposure   7KH &RPSDQ\Å¡V DFWLYLWLHV H[SRVH LW WR DYDULHW\ RI ÇŒQDQFLDO ...

  • Page 190
    ... UHFRYHU\ RI /LFHQVH IHH in Delhi High Court, notice issued by HC and listed for hearing on May 12, 2015. 54. The Company (M/s J T Mobiles Limited subsequently merged with the Company) was awarded license by DoT to operate cellular services in the state of Punjab in December 1995. On April 18...

  • Page 191
    ... Exceptional Items New Developments / Major Transactions Earnings Per Share (PSOR\HH%HQHÇŸWV Details of dues to micro and small enterprises DVGHÇŸQHGXQGHUWKH060('$FW Related Party Disclosures /HDVH Employee Stock Compensation Derivatives Movement in Provision Security Details Interest in...

  • Page 192
    ...Network Independent Auditor's Report To the Members of Bharti Airtel Limited Report on the Consolidated IGAAP Financial Statements... FRQVROLGDWHG,*$$3ÇŒQDQFLDOVWDWHPHQWVÅ¡  Management's Responsibility for the Consolidated IGAAP Financial Statements 7KH +ROGLQJ... 190 Annual Report 2015-16

  • Page 193
    Bharti Airtel Limited 02-39 | Corporate Overview 40-125 | Statutory Reports 126-355 Financial Statements Independent Auditor's Report &DVK )ORZ 6WDWHPHQW ...For S.R. Batliboi & Associates LLP Chartered Accountants ICAI Firm Registration Number: 101049W per Nilangshu Katriar 3DUWQHU 0HPEHUVKLS...

  • Page 194
    Transformational Network Independent Auditor's Report Annexure 1 To The Independent Auditor's Report of Even Date on The Consolidated Financial Statements of Bharti Airtel Limited Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 ...

  • Page 195
    Bharti Airtel Limited 02-39 | Corporate Overview 40-125 | Statutory Reports 126-355 Financial Statements Independent Auditor's Report Inherent Limitations of Internal Financial Controls Over Financial Reporting...Associates LLP Chartered Accountants ICAI Firm Registration Number: 101049W per ...

  • Page 196
    ... Place: Gurgaon Date: April 27, 2016 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) Nilanjan Roy *OREDO&KLHI)LQDQFLDO2ÇŒFHU 194 Annual Report 2015-16

  • Page 197
    ... 213,674 77,441 (29,236) 106,677 50,908 (17,641) 19,105 54,305 9,739 44,566 37  Sunil Bharti Mittal Chairman Rajendra Chopra Company Secretary Gopal Vittal Managing Director & CEO (India & South Asia) Nilanjan Roy *OREDO&KLHI)LQDQFLDO2ÇŒFHU Consolidated Financial Statements (IGAAP) 195

  • Page 198
    ... Place: Gurgaon Date: April 27, 2016 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) Nilanjan Roy *OREDO&KLHI)LQDQFLDO2ÇŒFHU 196 Annual Report 2015-16

  • Page 199
    Bharti Airtel Limited 02-39 | Corporate Overview 40-125 | Statutory Reports 126-355 Financial Statements 1RWHVWRFRQVROLGDWHGnjQDQFLDOVWDWHPHQWV 1.  Corporate Information  %KDUWL $LUWHO /LPLWHG Ť%KDUWL $LUWHOŤ RU ţWKH &RPSDQ\Ť RUţWKH3DUHQWŤ LVGRPLFLOHGDQGLQFRUSRUDWHG...

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    ... Hongkong Japan India United Kingdom United States of America Singapore Mauritius Netherlands Sri Lanka India India Sri Lanka India India India Singapore India Mauritius India India India India Netherlands Kenya Ghana Seychelles Sierra Leone Burkina Faso Congo Brazzavile 198 Annual Report 2015-16

  • Page 201
    Bharti Airtel Limited 02-39 | Corporate Overview 40-125 | Statutory Reports 126-355 Financial Statements NotesWRFRQVROLGDWHGnjQDQFLDOVWDWHPHQWV S. No. Name of entity Country of Incorporation 3HUFHQWDJHRIRZQHUVKLSLQWHUHVW DQGYRWLQJSRZHU GLUHFW indirect) HǁHFWLYHVKDUHKROGLQJKHOG...

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    ... Channel Sea Management Company (Mauritius) Limited &RQJR5'&7RZHUV6$ &RQJR7RZHUV6$AA *DERQ7RZHUV6$# Indian Ocean Telecom Limited Kenya Towers Limited (refer note 16) 0DGDJDVFDU7RZHUV6$ Malawi Towers Limited 0RELOH&RPPHUFH&RQJR6$ Montana International MSI-Celtel Nigeria Limited...

  • Page 203
    Bharti Airtel Limited 02-39 | Corporate Overview 40-125 | Statutory Reports 126-355 Financial Statements NotesWRFRQVROLGDWHGnjQDQFLDOVWDWHPHQWV S. No. Name of entity Country of Incorporation 3HUFHQWDJHRIRZQHUVKLSLQWHUHVW DQGYRWLQJSRZHU GLUHFW indirect) HǁHFWLYHVKDUHKROGLQJKHOG...

  • Page 204
    ...Network...SHULRGV 4.2. Tangible Assets   7DQJLEOH...Building on Leased Land Leasehold Improvements Plant & Equipment Computer 2ÇŒFH(TXLSPHQW Furniture and Fixtures 9HKLFOHV $VVHWVWDNHQRQÇŸQDQFH lease  Years Period of lease 20 20 Period of lease or 1020 years, as applicable...Annual Report 2015-16

  • Page 205
    Bharti Airtel Limited 02-39 | Corporate Overview 40-125 | Statutory Reports 126-355 Financial Statements... WKHVSHFLÇŒFDJUHHPHQW (v) Other acquired intangible assets   5LJKWV DFTXLUHG IRU XQOLPLWHG...OLQHEDVLVRYHUWKHSHULRGRIWKHDJUHHPHQWV (ii) Group as a lessor   /HDVHV LQ ZKLFK ...

  • Page 206
    ...Network...DV GHIHUUHGUHYHQXHLQRWKHUFXUUHQWOLDELOLWLHV (iv) Sale and leaseback transactions   6DOHDQGOHDVHEDFNWUDQVDFWLRQLQYROYHV...DUHH[SHQVHGLQWKHSHULRGLQZKLFKWKH\RFFXU 4.6. Impairment of Assets   7KH FDUU\LQJ DPRXQWV RI DVVHWV DUH ...LQYDOXH 204 Annual Report 2015-16

  • Page 207
    Bharti Airtel Limited 02-39 | Corporate Overview 40-125 | Statutory Reports 126-355 Financial Statements NotesWR...SODQVFRQWUDFWXDODUUDQJHPHQWV  4.11. Revenue Recognition and Receivables   5HYHQXHLV...SULQFLSDORUDVDQDJHQW (i) Service revenues 6HUYLFH UHYHQXHV LQFOXGH DPRXQWV ...

  • Page 208
    ...Network...Share   7KH UHYHQXHVKDUH IHH RQ OLFHQVH DQG VSHFWUXP LV FRPSXWHG DV SHU WKH OLFHQVLQJ DJUHHPHQW DW WKH SUHVFULEHGUDWHDQGLVH[SHQVHGDVLQFXUUHG 4.13. Foreign currency translation, accounting for IRUZDUGFRQWUDFWVDQGGHULYDWLYHV Initial Recognition... Annual Report 2015-...

  • Page 209
    Bharti Airtel Limited 02-39 | Corporate Overview 40-125 | Statutory Reports 126-355 Financial Statements NotesWRFRQVROLGDWHGÇŒQDQFLDOVWDWHPHQWV ...ORVVIRUWKH\HDU Translation of Integral and Non-Integral Foreign Operation  7KHÇŒQDQFLDOVWDWHPHQWVRIDQLQWHJUDOIRUHLJQRSHUDWLRQ DUH ...

  • Page 210
    ...EHUHDOLVHG $W HDFK UHSRUWLQJ GDWH XQUHFRJQLVHG GHIHUUHG WD[ DVVHWV RI HDUOLHU \HDUV DUH UHDVVHVVHG DQG UHFRJQLVHG WR WKH H[WHQW WKDW LW KDV EHFRPH   208 Annual Report 2015-16

  • Page 211
    Bharti Airtel Limited 02-39 | Corporate Overview 40-125 | Statutory Reports 126-355 Financial Statements ...Services-South Asia: 7KHVH VHUYLFHV FRYHU YRLFH DQG GDWD WHOHFRP VHUYLFHV SURYLGHG WKURXJK ZLUHOHVV WHFKQRORJ\ **  LQ 6UL /DQND DQG %DQJODGHVK Mobile Services Africa...

  • Page 212
    ... Services South Asia Mobile Services Africa Telemedia Services Airtel Business Digital TV Services 7RZHU Infrastructure Services Others Unallocated Eliminations Consolidated Revenue from external customers 542,274 15,866 Annual Report 2015-16 Inter segment revenue 18,605 588 Total...

  • Page 213
    ... Services Africa Telemedia Services Airtel Business Digital TV Services 7RZHU Infrastructure Others Services Eliminations Consolidated 500,770 Mobile Services South Asia 15,379 NotesWRFRQVROLGDWHGÇŒQDQFLDOVWDWHPHQWV Revenue from external customers Inter segment revenue Total revenues...

  • Page 214
    ...E\ORFDWLRQRIWKHHQWLW\LVDVIROORZV (` Millions) Particulars Revenue from External customers India Africa Rest of the World Total Total Assets India Africa Rest of the World Total Capex India Africa Rest of the World Total Year ended March 31, 2016 729,746 245,774 33,853 1,009,373 1,361,789...

  • Page 215
    Bharti Airtel Limited 02-39 | Corporate Overview 40-125 | Statutory Reports 126-355 Financial Statements NotesWRFRQVROLGDWHGÇŒQDQFLDOVWDWHPHQWV 7. Reserves and Surplus (` Millions) Particulars Capital Reserve Securities Premium Reserve Opening balance Additions during the year Closing ...

  • Page 216
    ...,113 72,310 68,791 5,580 35,947 48,103 217,658 More than Ç,YH\HDUV 114,686 180,691 50,023 345,400 INR USD EURO Others Total 193,837 349,110 135,796 67,270 746,013 214 Annual Report 2015-16

  • Page 217
    Bharti Airtel Limited 02-39 | Corporate Overview 40-125 | Statutory Reports 126-355 Financial Statements NotesWRFRQVROLGDWHGÇŒQDQFLDOVWDWHPHQWV G  7KHERUURZLQJVRI ` 0QRXWVWDQGLQJDVRI0DUFKFRPSULVLQJYDULRXVORDQVDUHUHSD\DEOHLQ WRWDOPRQWKO\LQVWDOOPHQWV...

  • Page 218
    ... *  Opening balance Addition (net) Closing balance As of March 31, 2016 8,947 17,735 13,039 264 5,355 45,340 As of March 31, 2015 8,434 17,926 11,514 939 5,106 43,919  6KRUW7HUP%RUURZLQJV (` Millions) Particulars Secured Loans repayable on demand Cash Credit Other loans & advances From...

  • Page 219
    Bharti Airtel Limited 02-39 | Corporate Overview 40-125 | Statutory Reports 126-355 Financial Statements NotesWRFRQVROLGDWHGÇŒQDQFLDOVWDWHPHQWV D 'HWDLOVUHODWLQJWRLQWHUHVWUDWHDQGFXUUHQF\RIVKRUWWHUPERUURZLQJV (` Millions) As of March 31, 2016 &XUUHQF\RI%RUURZLQJV Rate of ...

  • Page 220
    ... Gratuity Provision for Leave Encashment Total Others Provision for Income Tax [net of advance tax of ` 6,779 Mn (March 31, 2015 ` 158,414 Mn) and TDS receivable of ` Nil provided for (March 31, 2015 ` 693 Mn)] Proposed Dividend Tax on Dividend Others Total As of March 31, 2016 576 1,235 1,811 3,654...

  • Page 221
    Bharti Airtel Limited 02-39 | Corporate Overview 40-125 | Statutory Reports 126-355 Financial Statements NotesWRFRQVROLGDWHGÇŒQDQFLDOVWDWHPHQWV )ROORZLQJWDEOHVXPPDULVHVWKHGHWDLORIDVVHWVWDNHQRQÇŒQDQFHOHDVH   `0LOOLRQV  Plant and Equipment Particulars Gross Block Accumulated ...

  • Page 222
    ...87) 927 48 2,669 1,972 Total 15,201 1,703 (22) ...Assets Under Development ,QWDQJLEOHDVVHWVXQGHUGHYHORSPHQWLQFOXGHVWKHDPRXQWRIVSHFWUXPDOORWWHGWRWKH*URXSDQGUHODWHGFRVWV LQFOXGLQJ ERUURZLQJFRVWVFDSLWDOLVHG LIDQ\IRUZKLFKVHUYLFHVDUH\HWWREHUROOHGRXW 220 Annual Report 2015...

  • Page 223
    Bharti Airtel Limited 02-39 | Corporate Overview 40-125 | Statutory Reports 126-355 Financial Statements NotesWRFRQVROLGDWHGÇŒQDQFLDOVWDWHPHQWV 18. Non-current Investments (` Millions) Particulars Trade investments (Un-quoted) Investment in equity instruments IFFCO Kissan Sanchar Limited : ...

  • Page 224
    ... Fund-Investment Plan-Growth(Regular Plan) JPMorgan India Active Bond Fund Retail Plan Growth Option Kotak Bond Scheme Plan A-Growth - Regular Plan Reliance Income Fund Growth Plan - Growth Option Templeton India Income Builder Account Plan A - Growth UTI Bond Fund - Growth BOI AXA Corporate Credit...

  • Page 225
    Bharti Airtel Limited 02-39 | Corporate Overview 40-125 | Statutory Reports 126-355 Financial Statements NotesWRFRQVROLGDWHGÇŒQDQFLDOVWDWHPHQWV 19. Long-term Loans and Advances (` Millions) Particulars Unsecured Capital Advances Considered good* Considered doubtful Less: Provision for ...

  • Page 226
    ... Plan - Growth Sundram Money Fund Taurus Mutual Fund Franklin India Treasury Management Account LIC NOMURA MF Liquid Fund - Growth Plan JM Liquid Fund Kotak Floater ST Plan TATA Money Market Fund Plan A TATA Liquid Fund Plan A Religare Invesco Liquid Fund- Growth Plan JM High Liquidity Fund- Growth...

  • Page 227
    ... Franklin India Income Opportunities Fund ICICI Prudential Income Regular Plan-Growth ICICI Prudential Short Term - Regular Plan - Growth JM High Liquidity Fund - Growth Option Principal Cash Management Fund - Regular Plan Growth ICICI Prudential Money Market Fund - Growth Total  1RRI Units) 23...

  • Page 228
    ... Plan - Growth mutual fund Reliance Liquid Fund-Treasury Plan - Direct Plan - Growth Plan-Growth Option-LFAG Kotak Liquid Scheme Plan A - Direct Plan - Growth SBI Premier Liquid Fund - Direct Plan - Growth HDFC - Cash Management Fund - Saving Plan - Growth Total As of March 31, 2016 No. of Units...

  • Page 229
    Bharti Airtel Limited 02-39 | Corporate Overview 40-125 | Statutory Reports 126-355 Financial Statements NotesWRFRQVROLGDWHGÇŒQDQFLDOVWDWHPHQWV 24. Cash and Bank Balances (` Millions) Particulars Cash and cash equivalents Balances with banks - On current accounts - Deposits with original ...

  • Page 230
    ...adjudication / appeal / dispute) -Sales tax and Service Tax -Income Tax -Customs Duty -Entry Tax -Stamp Duty -Municipal Taxes -DoT demands * -Other miscellaneous demands (ii) Claims under legal cases including arbitration matters -Access Charges / Port Charges -Others Total LQDGGLWLRQUHIHU1RWH...

  • Page 231
    Bharti Airtel Limited 02-39 | Corporate Overview 40-125 | Statutory Reports 126-355 Financial Statements... UHFRJQLVHG a)  Sales tax and Service Tax  7KHFODLPV...IRUDFFHVVFKDUJHV HWF Access charges (Interconnect Usage Charges...LWVIDYRXUDQGLPSXJQHGEHIRUH7'6$7 Customs Duty  7KH FXVWRP ...

  • Page 232
    Transformational Network NotesWRFRQVROLGDWHGÇŒQDQFLDOVWDWHPHQWV e)...EHWD[HGLVQRWFRYHUHGXQGHUWKHVSHFLÇŒF FDWHJRU\ Department of Telecommunications ("DoT") Demands L  'R7 GHPDQGV LQFOXGH GHPDQGV UDLVHG IRU...DZDLWHG f)      YL    LLL 230 Annual Report 2015-16

  • Page 233
    Bharti Airtel Limited 02-39 | Corporate Overview 40-125 | Statutory Reports 126-355 Financial Statements NotesWRFRQVROLGDWHGÇŒQDQFLDOVWDWHPHQWV  YLL  7KH 'HSDUWPHQW RI 7HOHFRPPXQLFDWLRQV 'R7  KDG LVVXHG QRWLFHV WR WKH &RPSDQ\ DV ZHOO DV YDULRXV RWKHU 7HOHFRP 6HUYLFH ...

  • Page 234
    Transformational Network NotesWRFRQVROLGDWHGnjQDQFLDOVWDWHPHQWV   ,Q DGGLWLRQ (:/ KDV njOHG FRQVHUYDWRU\ DWWDFKPHQW SURFHHGLQJV DQG SURFHHGLQJV IRU HQIRUFHPHQW RI WKH )LQDO...6XSUHPH&RXUW7KHGDWHIRUWKH KHDULQJKDVQRW\HWEHHQnj[HG     232 Annual Report 2015-16

  • Page 235
    Bharti Airtel Limited 02-39 | Corporate Overview 40-125 | Statutory Reports 126-355 Financial Statements NotesWRFRQVROLGDWHGÇŒQDQFLDOVWDWHPHQWV 28. Revenue from Operations (` Millions) Particulars Service Revenue 9RLFHDQGGDWDUHYHQXH - Revenue from tower infrastructure services - Others...

  • Page 236
    ... Contribution$ Corporate Social Responsibility# Others Other expenses Interconnect and Port charges Insurance Network Others Installation Repairs and Maintenance Plant and Machinery Building Others - Network Others - Administrative Leased line and gateway charges Internet access and bandwidth...

  • Page 237
    Bharti Airtel Limited 02-39 | Corporate Overview 40-125 | Statutory Reports 126-355 Financial Statements NotesWRFRQVROLGDWHGÇŒQDQFLDOVWDWHPHQWV 33. Finance Costs (` Millions) Particulars Interest expense 2WKHUÇŸQDQFHFRVW Net loss on derivatives Net foreign exchange loss For the year ended...

  • Page 238
    ... Network ...Assets Non-current assets Current assets Total Equity And Liabilities Equity Share Capital Reserve and surplus Liabilities Non-current liabilities Current liabilities Total  As of April 09, 2015...FRQWUROOLQJ VKDUHKROGHUV 7XOLS 7HOHFRP G H  I 236 Annual Report 2015-16

  • Page 239
    Bharti Airtel Limited 02-39 | Corporate Overview 40-125 | Statutory Reports 126-355 Financial Statements NotesWRFRQVROLGDWHGÇŒQDQFLDOVWDWHPHQWV 7HOHFRPPXQLFDWLRQV /LPLWHG 97/  WR DFTXLUH ULJKWV WRXVHVSHFWUXPLQWKH0K]EDQGIRUVL[FLUFOHV 7KHFORVLQJRIWKH...

  • Page 240
    ...DUHDVIROORZV Particulars Discount rate Expected rate of increase in compensation levels Expected rate of return on plan assets Expected average remaining working lives of employees (years) F  For the year ended March 31, 2016 For the year ended March 31, 2015 5HFRQFLOLDWLRQRIRSHQLQJDQG...

  • Page 241
    Bharti Airtel Limited 02-39 | Corporate Overview 40-125 | Statutory Reports 126-355 Financial Statements NotesWRFRQVROLGDWHGÇŒQDQFLDOVWDWHPHQWV For the year ended March 31, 2015: (` Millions) Particulars Change in Obligation Present value of obligation at beginning of year Current service ...

  • Page 242
    ...Entities where Key Management Personnel and their UHODWLYHVDUHDEOHWRH[HUFLVHVLJQLÇŸFDQWLQÇ XHQFH %KDUWL)RXQGDWLRQ %KDUWL$LUWHO(PSOR\HHV:HOIDUH7UXVW +LNH/LPLWHG 0RELQWHFR/LPLWHG 0HUJHGZLWK+LNH/LPLWHGZHI 'HFHPEHU &HGDU6XSSRUW6HUYLFHV/LPLWHG 240 Annual Report 2015-16

  • Page 243
    ... Airtel Limited 02-39 | Corporate Overview 40-125 | Statutory Reports 126-355 Financial Statements NotesWRFRQVROLGDWHGÇŒQDQFLDOVWDWHPHQWV G (QWLWLHVKDYLQJVLJQLÇŸFDQWLQÇ XHQFHRYHUWKH&RPSDQ\ 6LQJDSRUH7HOHFRPPXQLFDWLRQV/LPLWHG 3DVWHO/LPLWHG %KDUWL7HOHFRP/LPLWHG (e) Group Companies...

  • Page 244
    ... Insurance Company Limited Bharti Realty Limited Bharti Realty Holdings Limited Bharti AXA General Insurance Co Ltd Fieldfresh Foods Private Limited Jersey Airtel Limited Bharti Enterprises Limited Beetel Teletech Limited Nile Tech Limited Ignite World Private Limited (formerly known as BSB Portal...

  • Page 245
    ... Foods Private Limited Bharti AXA Life Insurance Company Limited Jersey Airtel Limited Bharti Realty Limited Bharti Retail Limited Gourmet Investments Private Limited Atrium Restaurants India Private Limited Bharti Land Limited Ignite World Private Limited (formerly known as BSB Portal Limited...

  • Page 246
    ... S. No Particulars Bharti Retail Limited Ignite World Private Limited (formerly known as BSB Portal Limited)

  • Page 247
    ... H[HUFLVHVLJQLÇ,FDQW,QǃXHQFH Bharti Airtel Employees Welfare Trust Bharti Infratel Employees Welfare Trust Reimbursement of energy expenses Joint Venture of Subsidiary Indus Towers Limited Group Companies Bharti Realty Holdings Limited Remuneration Key Management Personnel 6KRUW7HUP(PSOR\HH...

  • Page 248
    ...) Interest Income Associate Indo Teleports Limited (formerly known as Bharti Teleports Limited) Group Companies $XJHUH:LUHOHVV%URDGEDQG,QGLD3YW/WG Joint Venture FireFly Networks Limited Refund of security deposit Group Companies Bharti Realty Limited Joint Venture )RUXP$YLDWLRQ/WG (QWLW...

  • Page 249
    Bharti Airtel Limited 02-39 | Corporate Overview 40-125 | Statutory Reports 126-355 Financial Statements NotesWRFRQVROLGDWHGÇŒQDQFLDOVWDWHPHQWV 42. Lease a)  Operating...1,340 Mn ( March 31, 2015 ` 1,580 Mn)] Obligations on...DWHUWKDQÇŸYH\HDUV Total Future minimum lease payments 10,160 38,263...

  • Page 250
    ...WKH*URXSDVRI0DUFKLVDVIROORZV (` Millions) Particulars Not later than one year /DWHUWKDQRQH\HDUEXWQRWODWHUWKDQÇŸYH years Total Future minimum lease payments 45 123 168 Interest 13 17 30 Present value 32 106 138 248 Annual Report 2015-16

  • Page 251
    ... Plans Bharti Airtel Scheme 2005 Bharti Airtel Performance Unit Plan (PUP) 2013 Bharti Airtel Performance Unit Plan (PUP) 2014 Bharti Airtel Performance Unit Plan (PUP) 2015 Bharti Infratel plan Infratel Indus Indus Plan Indus Indus Plan 2013 & 2014 2013 2013 LTI Plan Africa * Performance Unit Plan...

  • Page 252
    ...EHORZ As of March 31, 2016 Particulars Number of share options (In '000) Weighted average exercise price (`) As of March 31, 2015 Number of Weighted average share options exercise price (In '000) (`) Equity Settled Plans Scheme I - 2006 Plan Outstanding at beginning of year Granted Exercised...

  • Page 253
    Bharti Airtel Limited 02-39 | Corporate Overview 40-125 | Statutory Reports 126-355 Financial Statements NotesWRFRQVROLGDWHGÇŒQDQFLDOVWDWHPHQWV As of March 31, 2016 Particulars Number of share options (In '000) Weighted average exercise price (`) As of March 31, 2015 Number of Weighted ...

  • Page 254
    ... Network NotesWRFRQVROLGDWHGÇŒQDQFLDOVWDWHPHQWV As of March 31, 2016 Particulars Number of share options (In '000) Weighted average exercise price (`) As of March 31, 2015 Number of Weighted average share options exercise price (In '000) (`) PUP 2014 Number of shares under option: Outstanding...

  • Page 255
    ... 2015 Plan Cash settled Plans Bharti Airtel PUP 2013 Bharti Airtel PUP 2014 Bharti Airtel PUP 2015 Bharti Infratel Performance Unit Plan Indus SAR Plan 1 Indus SAR Plan 2 305 639 53 126 1,709 732 4 90 499 3,641 907 183 Options Outstanding as of March 31, 2015 Options (thousands) Exercise price...

  • Page 256
    ... date exluding Infratel (`) Wtd average share price on measurement date - Infratel (`) Wtd average exercise price on measurement date - Infratel (`) Year ended March 31, 2016 WR 4 to 60 months WR WR WR WR 0 to 5 Year ended March 31, 2015 WR 10 to 72...

  • Page 257
    Bharti Airtel Limited 02-39 | Corporate Overview 40-125 | Statutory Reports 126-355 Financial Statements NotesWRFRQVROLGDWHGÇŒQDQFLDOVWDWHPHQWV 45. Movement in Provision a) Doubtful Debts/Advances (` Millions) Particulars Balance at the beginning of the year# Provision for the year :ULWH...

  • Page 258
    ...Entity Relation Outstanding loan amount As of March 31, 2016 Bharti Airtel Ltd Parent 20 As of March 31, 2015 19 Security Detail ...over all current assets of the company, both present and future, including but not limited to stock, book debts, receivables and accounts of the company, entered...

  • Page 259
    Bharti Airtel Limited 02-39 | Corporate Overview 40-125 | Statutory Reports 126-355 Financial Statements NotesWRFRQVROLGDWHGÇŒQDQFLDOVWDWHPHQWV (`Millions) Entity Relation Outstanding loan amount As of March 31, 2016 %KDUWL$LUWHO$IULFD%9 and its subsidiaries Subsidiary 18,062 As of March...

  • Page 260
    Transformational Network NotesWRFRQVROLGDWHGnj...Balance Sheet Current assets Non-current assets Current liabilities Non-current liabilities Equity As of March 31, 2016 8,887 99,572 27,263 32,343 48,853 As of March 31, 2015...   DQG LV UHVHUYHG IRU MXGJHPHQW 258 Annual Report 2015-16

  • Page 261
    ...No. Name of the entity 2016 Net Assets, i.e., total assets minus total liabilities As % of consolidated net assets Parent 1 Bharti Airtel Limited Subsidiariesb Indian 1 Airtel Broadband Services Private Limited (formerly known as Wireless Business Services Private Limited) Airtel M Commerce Services...

  • Page 262
    ... Network NotesWRFRQVROLGDWHGÇŒQDQFLDOVWDWHPHQWV (` Millions) S. No. Name of the entity 2016 Net Assets, i.e., total assets minus total liabilities As % of consolidated net assets 20 21 22 23 24 25 26 27 28 29 30 Airtel Mobile Commerce (SL) Limited Airtel Mobile Commerce (Tanzania) Limited...

  • Page 263
    Bharti Airtel Limited 02-39 | Corporate Overview 40-125 | Statutory Reports 126-355 Financial Statements NotesWRFRQVROLGDWHGÇŒQDQFLDOVWDWHPHQWV (` Millions) S. No. Name of the entity 2016 Net Assets, i.e., total assets minus total liabilities As % of consolidated net assets 55 56 57 58 59 60...

  • Page 264
    ... (` Millions) S. No. Name of the entity 2016 Net Assets, i.e., total assets minus total liabilities As % of consolidated net assets 85 Celtel Acquisition Holding %9 /LTXLGDWHGRQ0DUFK 2015) &HOWHO1LJHU6$ Channel Sea Management Company Mauritius Limited &RQJR5'&7RZHUV6SUO &RQJR...

  • Page 265
    ... Airtel Limited 02-39 | Corporate Overview 40-125 | Statutory Reports 126-355 Financial Statements NotesWRFRQVROLGDWHGÇŒQDQFLDOVWDWHPHQWV (` Millions) S. No. Name of the entity 2016 Net Assets, i.e., total assets minus total liabilities As % of consolidated net assets 2 3 FireFly Networks...

  • Page 266
    ... Lease Disclosure Commitments and Contingencies Earnings Per Share Financial Risk Management Objectives and Policies New Developments &RPSDQLHVLQWKH*URXS-RLQW9HQWXUHVDQG Associates 2WKHU6LJQLÇŸFDQW0DWWHUV Non-current Assets held for sale 5HJURXSLQJ5HFODVVLÇŸFDWLRQ Page Nos. 309 310...

  • Page 267
    Bharti Airtel Limited 02-39 | Corporate Overview 40-125 | Statutory Reports 126-355 Financial Statements Independent Auditor's Report To the Board of Directors of Bharti Airtel Limited... International Financial Reporting Standards. Management's Responsibility for the Financial Statements ...

  • Page 268
    ... 3ODFH*XUJDRQ 'DWH$SULO 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) Nilanjan Roy *OREDO&KLHI)LQDQFLDO2ÇŒFHU 266 Annual Report 2015-16

  • Page 269
    ...DWH$SULO 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) Nilanjan Roy *OREDO&KLHI)LQDQFLDO2ÇŒFHU 267 Consolidated Financial Statements (IFRS)

  • Page 270
    ... 656,301   51,984   708,285 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) Nilanjan Roy *OREDO&KLHI)LQDQFLDO2ÇŒFHU 3,997,400 - As of April...

  • Page 271
    ...$SULO For and on behalf of the Board of Directors of Bharti Airtel Limited Sunil Bharti Mittal Chairman Gopal Vittal Managing Director & CEO (India & South Asia) Nilanjan Roy *OREDO&KLHI)LQDQFLDO2ÇŒFHU Rajendra Chopra Company Secretary Consolidated Financial Statements (IFRS) 269

  • Page 272
    ...Network 1RWHVWRFRQVROLGDWHGnjQDQFLDOVWDWHPHQWV 1.  Corporate Information  %KDUWL $LUWHO /LPLWHG ţ%KDUWL $LUWHOŤ RU ţWKH &RPSDQ\Ť or "the Parent") is domiciled and incorporated in India...service provider in India... njQDQFLDO statements.   ...Group. 270 Annual Report 2015-16

  • Page 273
    Bharti Airtel Limited 02-39 | Corporate Overview 40-125 | Statutory Reports 126-355 Financial Statements... by the Group. All intra-group transactions, balances, LQFRPHDQG... and equity instruments issued by the Group LQH[FKDQJHIRU... assets and liabilities required to be measured as per the applicable...

  • Page 274
    ...accounting policies...statement...current assets and liabilities.  3.6 Intangible Assets...recognition, the separately acquired intangible DVVHWV DUH UHFRJQLVHG DW FRVW 7KH FRVW RI LQWDQJLEOH assets that are acquired in a business...changes in accounting estimates.   272 Annual Report 2015-16

  • Page 275
    Bharti Airtel Limited 02-39 | Corporate Overview 40-125 | Statutory Reports 126-355 Financial Statements...ÇŒHG  as pre-payments in service arrangements or under FHUWDLQ ...in intervals, the Group recognises such SDUWV... called Customer premise...RIUHWLUHPHQWRUGLVSRVDO Assets are depreciated to the ...

  • Page 276
    ... costs include purchase price, IUHLJKWLQZDUGVDQGWUDQVLWLQVXUDQFHFKDUJHV   1HWUHDOLVDEOHYDOXHLVWKHHVWLPDWHGVHOOLQJSULFHLQWKH RUGLQDU\ FRXUVH RI EXVLQHVV OHVV HVWLPDWHG FRVWV RI FRPSOHWLRQDQGWKHHVWLPDWHGFRVWVQHFHVVDU\WRPDNH the sale. 274 Annual Report 2015-16

  • Page 277
    Bharti Airtel Limited 02-39 | Corporate Overview 40-125 | Statutory Reports 126-355 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 SHULRGLQZKLFKWKH\DUHLQFXUUHG b. Group...

  • Page 278
    ...Network...ÇŒQDQFHFRVWV in the income statement.  'HULYDWLYHV HPEHGGHG LQ... WKDW ZRXOG RWKHUZLVH EH required. Financial assets measured at amortised cost /RDQV DQG UHFHLYDEOHV... balance...amortised cost are adjusted to record changes LQIDLUYDOXHVDWWULEXWDEOHWR...Annual Report 2015-16  2. 

  • Page 279
    Bharti Airtel Limited 02-39 | Corporate Overview 40-125 | Statutory Reports 126-355 Financial Statements...income statement. D. Hedge Accounting ... 7KH Group also documents ...net basis, or to realise the assets and settle the liabilities simultaneously. F.  Derivative Financial Instruments - Current...

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    ... Scheme liabilities are calculated using the projected unit credit method and applying the principal actuarial DVVXPSWLRQV DV DW WKH GDWH RI VWDWHPHQW RI ÇŒQDQFLDO position. Plan assets are assets that are held by a longWHUP HPSOR\HH EHQHÇŒW IXQG RU TXDOLI\LQJ LQVXUDQFH policies...

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    Bharti Airtel Limited 02-39 | Corporate Overview 40-125 | Statutory Reports 126-355 Financial Statements... international calls and data messaging services. Service revenues are recognised as the services... Balances 7UDQVDFWLRQV LQ IRUHLJQ FXUUHQFLHV DUH LQLWLDOO\ recorded by the Group entities...

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    ... by the reporting GDWH LQ WKH FRXQWULHV ZKHUH WKH *URXS RSHUDWHV and generates taxable income. Current income tax relating to items recognised... WKH GHOLYHU\ RU SHUIRUPDQFH RI PXOWLSOH products, services or rights to use assets including 96$7 DQG LQWHUQHW HTXLSPHQW LQWHUQHW DQG...

  • Page 283
    Bharti Airtel Limited 02-39 | Corporate Overview 40-125 | Statutory Reports 126-355 Financial Statements...\IRUZDUGRIXQXVHGWD[ credits and unused tax losses,...\LQWKH\HDUZKHQ the asset is realised or the liability is settled, ... VKDUHV outstanding during the year including share options XVLQJ...

  • Page 284
    ... ÇŒQDQFLDO VWDWHPHQWV RI   6LJQLÇ,FDQW-XGJHPHQWVLQDSSO\LQJWKH*URXSÅ¡V Accounting Policies  ,Q WKH SURFHVV RI DSSO\LQJ WKH *URXSÅ¡V DFFRXQWLQJ SROLFLHV PDQDJHPHQW KDV PDGH WKH IROORZLQJ MXGJHPHQWVZKLFKKDYHWKHPRVWVLJQLÇŒFDQWHÇ‹HFWRQ 282 Annual Report 2015-16

  • Page 285
    Bharti Airtel Limited 02-39 | Corporate Overview 40-125 | Statutory Reports 126-355 Financial Statements... VXFK FDVHV management uses its judgement to... dividend distribution. ...RI an asset or cash generating unit ('CGU') ...PDQDJHPHQW reporting purpose, the Group uses ten year plans IRU...number...

  • Page 286
    ...DQG ÇŒQLWH OLYHG intangible assets. ,GHQWLÇŒDEOH LQWDQJLEOH DVVHWV DFTXLUHG XQGHU business combination include license, customer EDVHGLVWULEXWLRQQHWZRUNDQGEUDQGV...UHSRUWLQJE\HQWLWLHVWKDWDUHHQJDJHGLQ rate-regulated activities. IFRS does not provide any 284 Annual Report 2015-16

  • Page 287
    Bharti Airtel Limited 02-39 | Corporate Overview 40-125 | Statutory Reports 126-355 Financial Statements...revenue. 7KH QHZ UHYHQXH VWDQGDUG LV DSSOLFDEOH WR DOO HQWLWLHV DQG ZLOO VXSHUVHGH DOO FXUUHQW UHYHQXH recognition...LQWURGXFHV a single lessee accounting model and requires D ...

  • Page 288
    ... to Standards Month of Issue (ǁHFWLYHGDWH annual periods beginning on or ...broadband technology. Digital TV Services:7KLVLQFOXGHVGLJLWDOEURDGFDVWLQJ VHUYLFHVSURYLGHGXQGHUWKH'LUHFWWRKRPHSODWIRUP Airtel Business: 7KHVH VHUYLFHV FRYHU HQGWRHQG telecom solutions being provided...

  • Page 289
    Bharti Airtel Limited 02-39 | Corporate Overview 40-125 | Statutory Reports 126-355 Financial Statements NotesWRFRQVROLGDWHGÇŒQDQFLDOVWDWHPHQWV Others: 7KHVH LQFOXGH DGPLQLVWUDWLYH DQG VXSSRUW services provided to other segments.  7KHPHDVXUHPHQWSULQFLSOHVIRUVHJPHQWUHSRUWLQJDUH ...

  • Page 290
    ... Services South Asia Mobile Services Africa Telemedia Services Airtel Business Digital TV Services 7RZHU Infrastructure Services Others Unallocated Eliminations Consolidated Revenue from external customers   Annual Report 2015-16 Inter segment revenue  588 Total...

  • Page 291
    ... South Asia Mobile Services Africa Telemedia Services Airtel Business Digital TV Services 7RZHU Infrastructure Services Others Unallocated Eliminations Consolidated Bharti Airtel Limited Revenue from external customers   Inter segment revenue  380 Total...

  • Page 292
    ...LVDVIROORZV (a) Revenue from external customers: (` Millions) Particulars India Africa Rest of the World Total (b) Non-current assets(Property, plant and equipment and Intangible assets): (` Millions) Particulars India Africa Rest of the World Total Year ended March 31, 2016 1,817,263 Year ended...

  • Page 293
    ...-39 | Corporate Overview 40-125 | Statutory Reports 126-355 Financial Statements NotesWRFRQVROLGDWHGÇŒQDQFLDOVWDWHPHQWV 7. Business Combination/ Disposal of subsidiary/ Other acquisitions/ Transaction ZLWK1RQFRQWUROOLQJ,QWHUHVWV Dilution of Stake in Airtel M Commerce Services Limited (AMSL...

  • Page 294
    ...Plan 2005 Plan * 2008 Plan & Annual Grant Plan (AGP) Bharti Airtel Scheme 2005 Performance Share Plan (PSP) 2009 Plan Bharti Airtel Scheme 2005 Special ESOP & Restricted Share Units (RSU) Plan Bharti Airtel Scheme 2005 Long Term Incentive (LTI) Plan Bharti Airtel Bharti Airtel Bharti Infratel Bharti...

  • Page 295
    ... As of March 31, 2016 (Share options in thousands) Number of share options Weighted average exercise price (`) As of March 31, 2015 Number of share options Weighted average exercise price (`) Year ended March 31, 2015 (4) 722 718 Equity Settled Plans Scheme I - 2006 Plan Outstanding at beginning of...

  • Page 296
    ...00 5.00 5.00 As of March 31, 2015 Number of share options 408 (178) (41) 189 189 Weighted average exercise price (`) 5.00 5.00 5.00 5.00 5.00 Scheme 2005 - Special ESOP & RSU Plan Outstanding at beginning of year Granted Exercised Forfeited / Expired Outstanding at end of year Exercisable at end of...

  • Page 297
    Bharti Airtel Limited 02-39 | Corporate Overview 40-125 | Statutory Reports 126-355 Financial Statements NotesWRFRQVROLGDWHGÇŒQDQFLDOVWDWHPHQWV As of March 31, 2016 (Share options in thousands) Number of share options Weighted average exercise price (`) As of March 31, 2015 Number of share ...

  • Page 298
    ... March 31, 2016 Options Weighted (thousands) average share price (`) Equity settled Plans Bharti Airtel 2006 Plan Bharti Airtel 2008 Plan & AGP Bharti Airtel PSP 2009 Plan Bharti Airtel Special ESOP & RSU Plan Bharti Airtel /7,3ODQ  2012 & 2015) Bharti Infratel 2008 Plan Bharti Infratel LTI...

  • Page 299
    Bharti Airtel Limited 02-39 | Corporate Overview 40-125 | Statutory Reports 126-355 Financial Statements...'s equity shares became publicly traded. Year ended March 31, 2016 6.86...Total Notes 14 15 Year ended March 31, 2016 174,498 Year ended March 31, 2015 155,311 Consolidated Financial Statements...

  • Page 300
    ... income Dividend from mutual funds Interest income on deposits Interest income on loans to associates Interest income on others Net gain on securities held for trading 1HWJDLQRQGHULYDWLYHÇŸQDQFLDOLQVWUXPHQWV Total Finance costs Interest on borrowings and deferred payment liability ,QWHUHVWRQ...

  • Page 301
    Bharti Airtel Limited 02-39 | Corporate Overview 40-125 | Statutory Reports 126-355 Financial Statements NotesWRFRQVROLGDWHGÇŒQDQFLDOVWDWHPHQWV F &KDUJHRI`0QUHODWHGWRUHVWUXFWXULQJDFWLYLWLHV LQDIHZFRXQWULHV G *DLQRI`0QRQDFFRXQWRISUHPDWXUHWHUPLQDWLRQ RIDQ...

  • Page 302
    ...GHIHUUHG tax asset recognised Net expenses not taxable/deductible Net expense on account of settlement of various disputes/uncertain tax position* Others Lower tax rate on sale of passive assets Income tax expense recorded in the consolidated income statement Year ended March 31, 2016  34...

  • Page 303
    Bharti Airtel Limited 02-39 | Corporate Overview 40-125 | Statutory Reports 126-355 Financial Statements NotesWRFRQVROLGDWHGÇŒQDQFLDOVWDWHPHQWV (` Millions) Particulars Deferred tax (expense)/income Provision for impairment of debtors/advances and other provisions /RVVHVDYDLODEOHIRURÇ‹VHW...

  • Page 304
    Transformational Network NotesWRFRQVROLGDWHGÇŒQDQFLDOVWDWHPHQWV 'HIHUUHG WD[ DVVHWV DUH ... LWEHOLHYHVWKDWLWZRXOGDYDLOWKHWD[FUHGLWIRUWKHGLYLGHQG distribution tax payable by the subsidiaries on its dividend GLVWULEXWLRQ 7KH WD[DEOH...HQWLW\RSHUDWHV 302 Annual Report 2015-16

  • Page 305
    Bharti Airtel Limited 02-39 | Corporate Overview 40-125 | Statutory Reports 126-355 Financial Statements NotesWRFRQVROLGDWHGÇŒQDQFLDOVWDWHPHQWV 14. Property, Plant and Equipment (` Millions) Total Particulars Land and buildings Technical equipment and machinery 1,044,300 1,035,243 161 ...

  • Page 306
    Transformational Network NotesWRFRQVROLGDWHGÇŒQDQFLDOVWDWHPHQWV 15. Intangible Assets (` Millions) Total Particulars *RRGZLOO 6RIWZDUH %DQGZLGWK Licenses (including spectrum) Other acquired intangibles Advance Payment and assets under development 107,718 165,742 Cost As of April 1, ...

  • Page 307
    Bharti Airtel Limited 02-39 | Corporate Overview 40-125 | Statutory Reports 126-355 Financial Statements NotesWRFRQVROLGDWHGnj...Services - India Mobile Services Bangladesh Airtel business Mobile Services - Africa Telemedia Services Total  As of March 31, 2016 344 428,381 As of March 31, 2015...

  • Page 308
    ...DVIROORZV Summarised Information on Statement of Financial Position (` Millions) Particulars As of March 31, 2016 241,432 753  18,309 As of March 31, 2015 243,926 533  19,401 Assets Non Current Assets Current Assets Cash and cash Equivalents Other Current Assets (Excluding cash...

  • Page 309
    Bharti Airtel Limited 02-39 | Corporate Overview 40-125 | Statutory Reports 126-355 Financial Statements NotesWRFRQVROLGDWHGÇŒQDQFLDOVWDWHPHQWV Summarised Information on Income Statement (` Millions) Year ended March 31, 2015 802 14,927 42 Particulars Revenue Depreciation and ...

  • Page 310
    ... March 31, March 31, 2015 2016 410)  Bharti Hexacom Limited Year Year ended ended March 31, March 31, 2016 2015 241) 325 246) 175 $LUWHO1HWZRUNV Limited Year Year ended ended March 31, March 2016 31, 2015 732) - 1HWFDVKLQÇ RZ RXWÇ RZ IURP operating activities 1HWFDVKLQÇ RZ RXW...

  • Page 311
    Bharti Airtel Limited 02-39 | Corporate Overview 40-125 | Statutory Reports 126-355 Financial Statements NotesWRFRQVROLGDWHGÇŒQDQFLDOVWDWHPHQWV 18. Derivative Financial Instruments   7KH *URXS XVHV IRUHLJQ H[FKDQJH RSWLRQ FRQWUDFWV VZDS FRQWUDFWV IRUZDUG FRQWUDFWV DQG ...

  • Page 312
    ...DVVHWV Advances Others Total   As of March 31, 2016 847 30,043 (` Millions) As of March 31, 2015 803 28,383  )DLUYDOXDWLRQRIÇŒQDQFLDODVVHWVUHSUHVHQWVXQDPRUWLVHGSRUWLRQRIWKHGLÇ‹HUHQFHEHWZHHQWKHIDLUYDOXHRIWKHÇŒQDQFLDO assets (security deposits) on initial recognition and...

  • Page 313
    Bharti Airtel Limited 02-39 | Corporate Overview 40-125 | Statutory Reports 126-355 Financial Statements NotesWRFRQVROLGDWHGÇŒQDQFLDOVWDWHPHQWV  0RYHPHQWLQDOORZDQFHVIRUGRXEWIXOGHEWV (` Millions) Particulars Balance, beginning of the year Additions Allowance for the year # Currency ...

  • Page 314
    ... Network NotesWRFRQVROLGDWHGÇŒQDQFLDOVWDWHPHQWV (b) Current As of March 31, 2016 30,059 (` Millions) As of March 31, 2015 92,840 Particulars Held for trading securities - quoted 'HVLJQDWHGDWIDLUYDOXHWKURXJKSURÇŸWRUORVVTXRWHG /RDQVDQGUHFHLYDEOHVÇŸ[HGGHSRVLWVZLWKEDQNV Total...

  • Page 315
    Bharti Airtel Limited 02-39 | Corporate Overview 40-125 | Statutory Reports 126-355 Financial Statements NotesWRFRQVROLGDWHGÇŒQDQFLDOVWDWHPHQWV  %RUURZLQJV 26.1 Long Term Debts As of March 31, 2016  20 26,299   18,756  @ Particulars Secured Term loans Others ...

  • Page 316
    ...ERUURZLQJV EDVHG RQ FRQWUDFWXDO XQGLVFRXQWHG payments. As of March 31, 2016 599,562 (` Millions) As of March 31, 2015 664,631 Particulars Within one year Between ...Particulars INR USD Euro CHF NGN XAF XOF BDT Others March 31, 2016 INR USD Euro CHF NGN XAF XOF BDT Others March 31, 2015 7RWDO...

  • Page 317
    Bharti Airtel Limited 02-39 | Corporate Overview 40-125 | Statutory Reports 126-355 Financial Statements NotesWRFRQVROLGDWHGÇŒQDQFLDOVWDWHPHQWV 26.5   26.6 Other Loans 2WKHUVLQFOXGHYHKLFOHORDQVWDNHQIURPEDQNVZKLFKZHUHVHFXUHGE\K\SRWKHFDWLRQRIWKHYHKLFOHV`0QDQG` ...

  • Page 318
    ... Capital Lenders (STL & OD) except Citibank N.A L 3OHGJHRIDOOÇŸ[HGDQGÇ RDWLQJDVVHWV.HQ\D 1LJHULD7DQ]DQLD8JDQGD'5&*KDQD LL 3OHGJHRQVSHFLÇŸFÇŸ[HGDVVHWV&KDG Bharti Airtel $IULFD%9DQG its subsidiaries Total Subsidiary  44,371 81,099 316 Annual Report 2015...

  • Page 319
    Bharti Airtel Limited 02-39 | Corporate Overview 40-125 | Statutory Reports 126-355 Financial Statements NotesWRFRQVROLGDWHGÇŒQDQFLDOVWDWHPHQWV $IULFD2SHUDWLRQV$FTXLVLWLRQ5HODWHG%RUURZLQJ /RDQV RXWVWDQGLQJ DV DW WKH EDODQFH VKHHW GDWH LQFOXGHV FHUWDLQ ORDQV ZKLFK KDYH EHHQ...

  • Page 320
    ...(` Millions) Particulars Opening Balance Additions (Net) Closing Balance For the year ended March 31, 2016 113,436 For the year ended March 31, 2015 86,531  29. Other Financial Liabilities, Non-current (` Millions) Particulars Equipment Supply Payable - Non Current Security deposits Lease rent...

  • Page 321
    Bharti Airtel Limited 02-39 | Corporate Overview 40-125 | Statutory Reports 126-355 Financial Statements NotesWRFRQVROLGDWHGÇŒQDQFLDOVWDWHPHQWV 31. Trade and Other Payables (` Millions) Particulars Trade creditors Equipment supply payables Dues to employees Accrued expenses Interest accrued ...

  • Page 322
    ... ZLWK noncontrolling interests 29,084 Available Share-based - for - sale payment Ç,QDQFLDO transcations investments reserves reserves Total As of April 1, 2014 ([FKDQJHGLÇ‹HUHQFHV on translation of foreign operations Gain / (loss) on HÇ‹HFWLYHSRUWLRQ on hedge of net investment Gain / (loss) on...

  • Page 323
    Bharti Airtel Limited 02-39 | Corporate Overview 40-125 | Statutory Reports 126-355 Financial Statements NotesWRFRQVROLGDWHGÇŒQDQFLDOVWDWHPHQWV a) (i) Foreign currency translation reserve Foreign currency translation reserve represents H[FKDQJH GLÇ‹HUHQFHV DULVLQJ RQ DFFRXQW RI WKH ...

  • Page 324
    ... Network NotesWRFRQVROLGDWHGÇŒQDQFLDOVWDWHPHQWV (iii) Dividends Paid and Proposed Year ended March 31, 2016  2 10,681 B. Proposed for approval at the annual general meeting (not recognised as a liability): )LQDOGLYLGHQGIRU SHUVKDUH 2.22 per share) of ` 5 each Dividend distribution...

  • Page 325
    ... 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, 2016 8.00% 10.00% 9.00% 25.06 years As of March 31, 2015 8.50% 10.00% 8.00% 24.95 years Consolidated Financial Statements...

  • Page 326
    Transformational Network NotesWRFRQVROLGDWHGÇŒQDQFLDOVWDWHPHQWV Sensitivity Analysis: For the year ended March 31, 2016 Particulars Discount Rate Salary Growth Rate Change in assumption +1% -1% +1% -1% For the year ended March 31, 2015 Particulars Discount Rate Salary Growth Rate Change in ...

  • Page 327
    Bharti Airtel Limited 02-39 | Corporate Overview 40-125 | Statutory Reports 126-355 Financial Statements NotesWRFRQVROLGDWHGÇŒQDQFLDOVWDWHPHQWV 34. Fair Value of Financial Assets and Liabilities  6HWRXWEHORZLVDFRPSDULVRQE\FODVVRIWKHFDUU\LQJDPRXQWVDQGIDLUYDOXHRIWKH*URXS...

  • Page 328
    ... cost Borrowings designated as hedging instruments - Fixed rate - In hedge of net investment Borrowings designated as hedging instruments - Floating rate ,QFDVKÇ RZKHGJH - In hedge of net investment 2WKHUERUURZLQJVÇŸ[HGUDWH 2WKHUERUURZLQJVÇ RDWLQJUDWH Deferred payment liability Trade...

  • Page 329
    Bharti Airtel Limited 02-39 | Corporate Overview 40-125 | Statutory Reports 126-355 Financial Statements NotesWRFRQVROLGDWHGÇŒQDQFLDOVWDWHPHQWV GHULYDWLYH FUHGLW ULVN E\ WUDQVDFWLQJ ZLWK KLJKO\ UDWHG FRXQWHUSDUWLHV 0DQDJHPHQW KDV HYDOXDWHG WKH FUHGLW DQG QRQSHUIRUPDQFH ...

  • Page 330
    ...Financial assets 2WKHUÇŸQDQFLDODVVHWV Financial liabilities Borrowings designated as hedging instruments - Fixed rate - In hedge of net investment 2WKHUERUURZLQJVÇŸ[HGUDWH Deferred payment liability 2WKHUÇŸQDQFLDOOLDELOLWLHV As of March 31, 2015 Level 1 Level 2 Level 3 As of March 31, 2016...

  • Page 331
    Bharti Airtel Limited 02-39 | Corporate Overview 40-125 | Statutory Reports 126-355 Financial Statements NotesWRFRQVROLGDWHGÇŒQDQFLDOVWDWHPHQWV )ROORZLQJWDEOHGHVFULEHVWKHYDOXDWLRQWHFKQLTXHVXVHGDQGNH\LQSXWVWRYDOXDWLRQZLWKLQOHYHODQGDQGTXDQWLWDWLYH LQIRUPDWLRQDERXWVLJQL...

  • Page 332
    ... interest rates to GLVFRXQWIXWXUHFDVKÇ RZV  5HFRQFLOLDWLRQRIIDLUYDOXHPHDVXUHPHQWVFDWHJRULVHGZLWKLQOHYHORIWKHIDLUYDOXHKLHUDUFK\Åž)LQDQFLDO assets / (liabilities) (net) (` Millions) Particulars Opening balance Gain / (losses) recognised in consolidated income statement...

  • Page 333
    Bharti Airtel Limited 02-39 | Corporate Overview 40-125 | Statutory Reports 126-355 Financial Statements NotesWRFRQVROLGDWHGnjQDQFLDOVWDWHPHQWV 35. Related Party Transactions   5HODWHGSDUW\WUDQVDFWLRQVUHSUHVHQWWUDQVDFWLRQVHQWHUHGLQWRE\WKH*URXSZLWKHQWLWLHVKDYLQJVLJQLnjFDQWLQǍ...

  • Page 334
    ...ÇŸWV Share-based payment**      6DOHRIVHUYLFHVÅžLQFOXGHVSULPDULO\ELOOLQJIRUEURDGEDQG international long distance services, mobile, access and roaming services.  3XUFKDVH RI VHUYLFHV Åž LQFOXGHV SULPDULO\ ELOOLQJ IRU broadband, international long distance services, billing...

  • Page 335
    Bharti Airtel Limited 02-39 | Corporate Overview 40-125 | Statutory Reports 126-355 Financial Statements NotesWR...Total Future minimum lease payments 87,804 Interest 29,933 Present value 57,871 122,668 111,408 As of March 31, 2016 As of March 31, 2015 Finance lease obligation of the Group...

  • Page 336
    ...HDUV Total Future minimum lease payments 126 297 423 Interest 33 37 70 Present value 93 260 353 The future minimum lease payments receivable of the Group as lessor... capital expenditure not provided for LQWKHÇŸQDQFLDOVWDWHPHQWV UHIHU1RWH   As of March 31, 2016  As of March 31, 2015 ...

  • Page 337
    Bharti Airtel Limited 02-39 | Corporate Overview 40-125 | Statutory Reports 126-355 Financial Statements NotesWRFRQVROLGDWHGÇŒQDQFLDOVWDWHPHQWV (ii) Contingencies (` Millions) Particulars (i) 7D[HV'XWLHVDQG2WKHUGHPDQGV (under adjudication / appeal / dispute) -Sales Tax and Service Tax -...

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    Bharti Airtel Limited 02-39 | Corporate Overview 40-125 | Statutory Reports 126-355 Financial Statements NotesWRFRQVROLGDWHGÇŒQDQFLDOVWDWHPHQWV 38. Earnings Per Share...the Group's senior management that the *URXSÅ¡V ÇŒQDQFLDO ULVNWDNLQJ DFWLYLWLHV DUH JRYHUQHG by appropriate policies ...

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    ... for impairment is analysed at each reporting date. Refer Note 22 for details on the impairment of trade receivables. 2)  Financial instruments and cash deposits  &UHGLW ULVN IURP EDODQFHV ZLWK EDQNV DQG ÇŒQDQFLDO institutions is managed by Group's treasury in DFFRUGDQFHZLWKWKH%RDUG...

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    Bharti Airtel Limited 02-39 | Corporate Overview 40-125 | Statutory Reports 126-355 Financial Statements NotesWRFRQVROLGDWHGÇŒQDQFLDOVWDWHPHQWV Capital Management Capital includes equity attributable to the equity holders RIWKH3DUHQW7KHSULPDU\REMHFWLYHRIWKH*URXSÅ¡VFDSLWDO ...

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    ... management services Other Africa India South Asia Other Africa India Africa South Asia Africa Netherlands Mauritius Other Africa Mauritius Netherlands India 10 3 2 6 16 6 2 2 25 6 2 2 1 1 1 85 S. No. Principal Activity Principal place of operation / country of incorporation As of March 31, 2015...

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    ...Networks Limited Airtel Broadband Services Private Limited (Merged with Bharti Airtel /LPLWHGZHI$SULO Bangladesh India Bangladesh Canada France Hongkong -DSDQ India 8QLWHG.LQJGRP United States of America Singapore Mauritius Netherlands Sri Lanka India India Sri Lanka India India India...

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    ... Congo Nigeria Gabon Madagascar Malawi Sierra Leone Netherlands Burkina Faso Ghana Netherlands .HQ\D Malawi Madagascar Rwanda Seychelles 7DQ]DQLD Chad Uganda Zambia Data Center and Managed Services Content Procurement and Selling Investment Company Infrastructure sharing services Telecommunication...

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    ... Telecom Uganda Limited (in process of Amalgamation with Airtel Uganda Limited) Warid Congo S.A. (Merged with $LUWHO&RQJR6$ZHI1RYHPEHU 2015) Zambian Towers Limited (refer Note 43) Zap Trust Company Nigeria Limited# Airtel Money Transfer Limited VXEVLGLDU\ZHI-XO\ Bharti...

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    ...| Corporate Overview 40-125 | Statutory Reports 126-355 Financial Statements NotesWRFRQVROLGDWHGÇŒQDQFLDOVWDWHPHQWV (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...

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    ...Network...related penal interest relating... sale. Had the Group not decided to sell these assets, ...closing conditions and is expected to be FRPSOHWHGZLWKLQDSHULRGRIRQH\HDUIURPWKHGDWHRI FODVVLÇŒFDWLRQDVKHOGIRUVDOH   43. Non-current Assets held for Sale D  350 Annual Report 2015...

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    Bharti Airtel Limited 02-39 | Corporate Overview 40-125 | Statutory Reports 126-355 Financial Statements... current assets Other current assets As of March 31, 2016  132 7,002 As of March 31, 2015 ...2015 5,445) H WKHGHGLFDWHGSDUWRIWKHWRZHUVRQZKLFK&RPSDQ\Å¡V equipment are located...

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    ...100% 90% Sr No. Name of the Subsidiary Note Country of Registration Reporting Currency Annual Report 2015-16 1 2 3 4 5 6 7 8 9 Airtel Bangladesh Limited Airtel Payments Bank Limited Bangladesh Infratel Networks Limited Bharti Airtel (France) SAS Bharti Airtel (Hongkong) Limited %KDUWL$LUWHO...

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    ...% Share Capital Reserves Total Assets Total Liabilities Investments* Turnover 3URÇ,W (Loss) Before Taxation Provision for Taxation Community Contribution ^ % of shareholding Capital Expenditure during the reporting period # 872 3URÇ,W (Loss) After Taxation Bharti Airtel Limited Sr No. Name...

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    ... Sr No. Name of the Subsidiary Note Country of Registration Reporting Currency Annual Report 2015-16 94 95 96 97 7DQ]DQLD7RZHUV/LPLWHG Tchad Towers S.A. Towers Support Nigeria Limited Airtel Money RDC S.A. a a DH a TZS XAF NGN CDF 98 100 Airtel Mobile Commerce Burkina...

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    ...31, 2016 Bharti Airtel Limited Sr. No. Name of the Associate / Joint Venture Latest Audited Balance Sheet Date Description Net Worth RIKRZWKHUH attributable to LVVLJQLÇ,FDQW shareholders LQǃXHQFH as per latest audited Balance Sheet 1  30.14% 50% 35% % of share capital % of share...

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    Registered & Corporate Office Bharti Airtel Limited Bharti Crescent, 1, Nelson Mandela Road, Vasant Kunj, Phase II, New Delhi - 110 070, India. CIN No.: L74899DL1995PLC070609 Telephone No.: +91 11 46666100 Fax No.: +91 11 46666137 Email: [email protected] Website: www.airtel.com