BHARTI INFOTEL LIMITED - Airtel

SCHEDULES ANNEXED
TO AND FORMING PART OF ACCOUNTS
Subsequent to the amalgamation, the Company has commenced International Long Distance Telephony Services with effect
from July 19, 2002.
The Scheme of Amalgamation has been accounted for under the Pooling of Interest Method as per Accounting Standard 14 on
Accounting for Amalgamations issued by The Institute of Chartered Accountants of India whereby the assets, liabilities and
reserves of the erstwhile BBNL and BTSoL (including assets liabilities and reserves of erstwhile JDPPL referred to in note 2 (ii)
above) have been recorded in the Company’s books at their book value to the erstwhile companies. The value of net assets
acquired effective from April 3, 2002 and the calculation of difference between consideration and value of net identifiable assets
acquired is set out below:
Assets/(Liabilities) acquired BTSoL BBNL
(Rs. ’000) (Rs. ’000)
Fixed Assets (including CWIP and net off accumulated depreciation) 6,352,850 584,222
Pre-operative Pending Allocation 4,244 –
Investments (*Excludes Investment in JDPPL) 102,000* 23
Unamortised Licence Fees 1,241,597 -
Net Current Assets (543,719) (122,911)
Deferred Tax Asset 12,988 –
Miscellaneous Expenditure (To the extent not written off or adjusted) 16,030 18,115
Liabilities acquired (4,832,299) (1,413,122)
Share Premium acquired – (876,446)
Accumulated Losses 146,309 1,910,119
Net Assets acquired as on April 3, 2002 (A)
Adjustments for
2,500,000 100,000
Book value of shares issued to BTVL (B) 882,000 390,000
Investment in BTNL Books (C)
Difference between consideration and value of net identifiable
assets acquired taken to the opening balance of the Profit and Loss
750,066 –
Account of the Company (B+C-A) (867,934) 290,000
(v) In accordance with the aforesaid scheme, the paid-up capital of the Company is reduced to adjust the absorption of losses of
erstwhile BBNL and BTSoL and represent the available assets justifiably. The impact of reduction in capital, as computed below,
has been taken to the opening balance of Profit and Loss Account of the Company :
(Rs. ’000)
300,000,000 Equity Shares of Rs. 10/- each held by the shareholders of the Company
prior to amalgamation
Add : Shares allotted in terms of Scheme of Amalgamation referred to in Note (vii) above :
3,000,000
– 39,000,000 Equity Shares of Rs. 10/- each allotted to the shareholders of erstwhile BBNL
against fully paid shares in the ratio of 390 shares for every 100 shares held in erstwhile BBNL
390,000
– 88,200,000 Equity Shares of Rs. 10/- each allotted to the shareholders of erstwhile BTSoL
against fully paid shares in the ratio of 50.4 shares for every 100 shares held in erstwhile BTSoL
882,000
Less: Capital Reduction in terms of the Scheme of Amalgamation
– 150,000,000 Equity Shares of Rs. 10/- each 1,500,000
Issued, Subscribed and Paid-up Share Capital, post amalgamation and Capital Reduction :
– 277,200,000 Equity Shares of Rs. 10/- each 2,772,000
(vi) Subsequent to the Amalgamation, the name of the Company has been changed to Bharti Infotel Limited. The Registrar of
Companies has issued the fresh Certificate of Incorporation for the changed name dated September 15, 2003.
ANNUAL REPORT 2002-2003 211