Vodafone 2007 Annual Report Download - page 139

Vodafone Group Plc Annual Report 2007 137
Financials
In conjunction with the acquisition of Hutchison Essar, the Group entered into a share sale and purchase agreement with a Bharti group company regarding
the Group’s 5.60% direct shareholding in Bharti Airtel. On 9 May 2007, the Bharti group company irrevocably agreed to purchase this shareholding and the
Group expects to receive $1.6 billion in cash consideration for such shareholding by November 2008. The shareholding will be transferred in two tranches, the
first before 31 March 2008 and the second by November 2008. Following the completion of this sale, the Group will continue to hold an indirect stake of
4.39% in Bharti Airtel.
EU Roaming
On 23 May 2007, the European Parliament voted to introduce regulation on retail and wholesale roaming prices. The Group expects roaming revenues to be
lower year on year in 2008 due to the combined effect of Vodafone’s own initiatives and this direct regulatory intervention.
36. Related party transactions
Transactions with joint ventures and associated undertakings
Transactions between the Company and its subsidiaries, joint ventures and associates represent related party transactions. Transactions with subsidiaries have
been eliminated on consolidation. Transactions between the Company and its joint ventures are not material to the extent that they have not been eliminated
through proportionate consolidation. Except as disclosed below, no material related party transactions have been entered into, during the year, which might
reasonably affect any decisions made by the users of these Consolidated Financial Statements.
2007 2006 2005
£m £m £m
Transactions with associated undertakings:
Sales of goods and services 245 288 194
Purchase of goods and services 295 268 243
Amounts owed to joint ventures included within short term borrowings(1) 842 378 1,142
Note:
(1) Loan arises through Vodafone Italy being part of a Group cash pooling arrangement. Interest is paid in line with short term market rates.
Amounts owed by and owed to associated undertakings are disclosed within notes 17 and 27.
Dividends received from associated undertakings are disclosed in the consolidated cash flow statement.
Group contributions to pension schemes are disclosed in note 25.
Compensation paid to the Company’s Board of directors and members of the Executive Committee is disclosed in note 33.
Transactions with directors
During the three years ended 31 March 2007, and as of 25 May 2007, neither any director nor any other executive officer, nor any associate of any director or
any other executive officer, was indebted to the Company.
During the three years ended 31 March 2007, and as of 25 May 2007, the Company has not been a party to any other material transaction, or proposed
transactions, in which any member of the key management personnel (including directors, any other executive officer, senior manager, any spouse or relative
of any of the foregoing, or any relative of such spouse), had or was to have a direct or indirect material interest.
37. Financial information of joint ventures and associated undertakings
Summary aggregated financial information of 50% or less owned entities accounted for using proportionate consolidation or under the equity method,
extracted on a 100% basis from accounts prepared under IFRS at 31 March and for the years then ended, is set out below.
2007 2006 2005
50% or less owned entities classified as associated undertakings £m £m £m
Revenue 30,981 30,204 25,141
Profit for the financial year 6,435 5,768 4,883
Non-current assets 38,055 42,776 36,385
Current assets 5,094 5,868 5,763
Total assets 43,149 48,644 42,148
Total equity shareholders’ funds 27,296 29,951 24,155
Minority interests 858 961 939
Total equity 28,154 30,912 25,094
Non-current liabilities 4,640 9,367 5,579
Current liabilities 10,355 8,365 11,475
Total liabilities 14,995 17,732 17,054
Total equity and liabilities 43,149 48,644 42,148