Annual Report 2012 - Dialog

Given below are the projected variables used for the impairment test for 2012 and 2011:
Annual Report 2012 l Dialog Axiata PLC l 95
Fixed telephony,
data & infrastructure Television operations
2012 2011 2012 2011
EBIDTA margin (1) 27% 28% 28% 24%
Free cash flow growth rate (2) 20% 2% 23% 121%
Pre-tax discount rate (3) 15% 12% 15% 12%
Terminal growth rate (4) 3% 2% 3% 2%
Based on the impairment test performed, the recoverable amounts exceed the carrying value, hence no provision for
impairment of goodwill was recognised as of 31 December 2012.
Impact of possible changes in key assumptions
The Group’s review includes an impact assessment of change in key assumptions. Sensitivity analysis shows that no
impairment loss is required for the carrying value of the goodwill, including where realistic variances are applied to key
assumptions.
10 Investment in subsidiaries
% Holding 2012 2011 1 Jan 2011
Dialog Television (Private) Limited 100 3,864,746 3,864,746 3,864,746
Dialog Broadband Networks (Private) Limited 100 13,961,264 6,461,264 6,461,264
17,826,010 10,326,010 10,326,010
2012 2011
At 1 January 10,326,010 10,326,010
Issuance of shares against shareholder’s loan 7,500,000 Nil
Acquisition of Firstsource-Dialog Solutions (Private)
Limited (formerly known as Dialog Business
Services (Private) Limited) 100 Nil 62,700
Disposal of Firstsource-Dialog Solutions (Private)
Limited (formerly known as Dialog Business
Services (Private) Limited) 100 Nil (62,700)
At 31 December 17,826,010 10,326,010
On 11 May 2012, DBN converted advances from the Company amounting to Rs. 7,500,000,000 in to ordinary shares at the
price of Rs. 10 each.