IDEA CELLULAR LIMITED

Mr. G. D. Birla and Mr. Aditya Birla, our founding fathers. We live by their values. Integrity, Commitment, Passion, Seamlessness and Speed.

The Chairman’s Letter to Shareholders
Dear Shareholder, The global economy has withstood the recession though its recovery has been rather sluggish. World growth decelerated to nearly 3.8% during the second half of 2010 from 5.3% during the first half. The IMF forecasts a 4.3% global growth in 2011. The US economy grew at 3% last year. Growth in the Euro zone was muted at around 2%. In sharp contrast emerging economies have grown briskly in excess of 7%. China and India are the clear standouts, peaking at over 10% and 9% growth respectively. With the global economic growth slowing, growth levels in India are likely to be impacted. Nevertheless, as we know, the fundamentals of the Indian economy remain strong. Over the past few years India’s track record has been impressive. The country recorded almost twice the global growth rate. Whilst the country does face roadblocks in the short term, the medium to long term growth prospects for India are bright. In the Telecom sector, with the granting of New Licenses in 2008, the number of mobile operators rose from an average of 8 per circle to 14 for every circle. The last two years have witnessed hypercompetition phase and it is apparently continuing. This has led to a steep decline in mobile tariffs, resulting in the slowdown of the Mobile Industry Revenue growth to 11.9% in 2010-11.

It has the highest ratio of active subscribers to reported subscribers in the sector. while retaining their mobile number. which will help your company to tap the growing opportunity in the field of wireless broadband and other ‘Non voice’ revenue services.In contrast. superior customer service and brand strength.an invite to customers to change their Wireless Operator.9 Early this year.3 million against the reported subscriber base of 89. at 93. Your Company strengthened its revenue market share to 13.1% with VLR subscribers (surrogate to active subscribers) base of 83. clocking an annual revenue growth of 29.3 billion on a standalone basis. MNP highlights your Company’s network quality. It achieved an annual revenue of ` 153. your Company continued on its upward growth trajectory. your Company rolled out its 3G services in 9 out of the 11 service areas. The consolidated revenue of your Company for the year stood at ` 155. . Idea has developed a facility titled “Idea MyCash” It provides .0 billion with an EBITDA of ` 37 billion. The overwhelming response from the consumers on Your Company also leads the Industry in terms of the quality of its subscribers.4% in the previous year as per the TRAI release.5 million. . Your Company also leads the Industry in terms of the quality of its subscribers. Idea’s 3G services connect with the world of faster internet with the speed of upto 21 Mbps. at 93. It has the highest ratio of active subscribers to reported subscribers in the sector. video calling and conferencing on the handset.0%. Mobile TV and many more exclusive applications.3 million against the reported subscriber base of 89. I am pleased to share with you that your Company is the fastest growing Indian Mobile Operator. the Department of Telecommunications introduced the global practice of Mobile Number Portability (MNP) . It is heartening to record that your Company is the leader on the MNP space and is the biggest net gainer nationally.9 billion and EBITDA of ` 31. In January 2011. This reaffirms the increasing consumer preference for brand !dea.2% in FY’11 vis-à-vis 12.1% with VLR subscribers (surrogate to active subscribers) base of 83. where it won 3G Spectrum. Your Company is also among the first major telecom operator to initiate mobile banking service in alliance with likeminded Banks.5 million.

Over The service area specific strategy of consolidating its leadership position in the thirteen Established service areas and cautious expansion in nine New service areas. recording a 22% growth. I believe that purposive actions in the people area can be huge differentiators to our growth plans. for new ways of working that keep our Companies and our products on our clients and customers radar all the time. For the year 2010-11. has a penchant for collaborative and innovative solutions. This is what drives our performance. has enabled your Company to strengthen its competitiveness in tough market conditions. compared to US $ 29 billion in the preceding year. The service area specific strategy of consolidating its leadership position in the thirteen Established service areas and cautious expansion in nine New service areas. it is very important to know what our people think of us. belonging to 42 nationalities across 6 continents. our consolidated revenues stand at US $ 35 billion. multi dimensional Group with a bench strength of 133. For us. regardless of levels. Our leadership. . To our teams I would like to say a big thank you to all of our teams for their consistent high performance.basic banking services including money transfer using the mobile platform – to offer banking services to the ‘Unbanked’ that will play an important role in financial inclusion of a large mass of Indian population. capturing future opportunities in wireless broadband. The Aditya Birla Group in perspective Today.000 passionate and committed people. The improving capacity utilization of our 2G voice services. So we recourse to a biannual Organizational Health Survey (OHS) conducted by Gallup as the barometer of the engagement at work index in our Group. we are a multi ethnic. I expect this to happen once the hyper-competitive phase draws to its inevitable close and the pricing power returns to the operators. underscores Idea’s ability to benefit from long term sector opportunities. I take great pride in the performance of our people. increasing preference of customers for brand !dea and the generation of healthy cash profits with a strong Balance Sheet. has enabled your Company to strengthen its competitiveness in tough market conditions.

along with me. is unrelenting. It is a matter of great satisfaction for me that the key strength of the Group. Given the decline in ethics we see in business today. This is already afoot in the cement business. Our commitment to employee learning and development at all levels. there were 30. continues to be the great sense of pride that our employees experience and express in working for the Aditya Birla Group. have invested over 500 manhours in discussing. Over the coming years it will be extended across other businesses in the Group.28. continues to be the great sense of pride that our employees experience and express in working for the Aditya Birla Group. development plans include engagement with special projects. That 60% of the total leadership positions were filled in from our existing talent in 2010-11 validates the talent honing processes which have laid a robust leadership pipeline within our Group. The participation level at 97%. in turn is a great driver of positive energy and performance. In 2010-11. To capitalize on this positivity and to grow and hone the talent resident in the Group. coaching and mentoring by the top leadership team. collectively our Business Directors and Business Heads. Pride. More importantly. in Gallup’s opinion. We have launched the ‘Career Management Services’ – a pioneering effort which is an integrated end-to-end career service aimed at all employees. as identified in the OHS.000 touch points . as identified in the OHS. that is a huge validation of our insistence on valuebased leadership. reviewing and working through the development plans of each of our talent pool members at the Group level. On the issue of grooming talent. sets a new benchmark. there is immense value in its findings. Given its objectivity and rigor of its process.000 executives spanning 31 countries participated in OHS 7 (2010). this pride stems from our employees’ belief and conviction that we are a good corporate citizen. besides attending cutting-edge functional and behavioural programmes globally that open the frontiers of their mind and goad them to defy limitations. Their It is a matter of great satisfaction for me that the key strength of the Group. we have launched several initiatives that further our Employee Value Proposition – a World of Opportunities.

200 colleagues at very senior levels attended specially designed programmes. Our people are our future. They were a great faculty. we feel buoyant about achieving our stretch goal of becoming a 65 billion dollar Group by 2015. More than 25. With them and the wind in our sails. Aditya Birla Group. our Institute of Management Learning. at Gyanodaya. Michigan and Duke at the global level along with professors from the IIMs and ISB (Hyderabad). has been declared as one of the ‘Best Employers’ in India in the Aon Hewitt Survey conducted recently. Our senior managers also derived immense value from training and learning sessions conducted by leading consultancies such as The Centre for Creativity Leadership (CCL). They had the opportunity to interact with professors from leading Universities and B-Schools. I am delighted to share with you that our employees have given a thumping vote of confidence to our Group as the ‘Best Employers’ in India and in Asia Pacific. we have been ranked among the top companies as well. The Hay Group and The Works Partnership (TWP). who participated in the survey. Kumar Mangalam Birla . Soon we hope to attain this stature in the rest of the world too – wherever we operate. among others. In Asia Pacific. Your Company will play an important role in reaching this destination.with our learners through multiple formats of learning.000 employees enlisted in e-learning programmes at Gyanodaya. This year. we feel buoyant about achieving our stretch goal of becoming a 65 billion dollar Group by 2015. of which your Company is an integral member. We ranked 2nd from among 200 other Indian organizations. RICE. Yours sincerely. With them and the wind in our sails. drawn from Universities such as Stanford. Our people are our future. Your Company will play an important role in reaching this destination. Finally.

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Table of Contents 1 3 5 10 19 32 36 37 38 62 Corporate Information Performance Highlights Management Discussion and Analysis Report Directors’ Report Report on Corporate Governance Auditors’ Report Balance Sheet Profit and Loss Account Schedules to the Accounts Cash Flow Statement Consolidated Financial Statements 65 66 67 68 91 Auditors’ Report Consolidated Balance Sheet Consolidated Profit and Loss Account Schedules to the Consolidated Accounts Consolidated Cash Flow Statement .

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Corporate Information
Board of Directors Mr. Kumar Mangalam Birla Mrs. Rajashree Birla Dr. Rakesh Jain Mr. Biswajit A. Subramanian Mr. Juan Villalonga Navarro Mr. Sanjeev Aga Mr. Arun Thiagarajan Mr. Gian Prakash Gupta Mr. Mohan Gyani Ms. Tarjani Vakil Mr. R.C. Bhargava Mr. P Murari . Mr. Himanshu Kapania Dr. Shridhir Sariputta Hansa Wijayasuriya Chairman Non-Executive Director Non-Executive Director Non-Executive Director Non-Executive Director Non-Executive Director Independent Director Independent Director Independent Director Independent Director Independent Director Independent Director Managing Director Alternate Director to Mr. Juan Villalonga Navarro

Chief Financial Officer Mr. Akshaya Moondra Company Secretary Mr. Pankaj Kapdeo Auditors Deloitte Haskins & Sells Chartered Accountants 706, B Wing, ICC Trade Tower, Senapati Bapat Road, Pune – 411 016 Registered Office Suman Tower, Plot No. 18, Sector 11, Gandhinagar – 382 011 Gujarat Corporate Office Windsor, 5th Floor, Off CST Road, Near Vidya Nagari, Kalina, Santacruz (East), Mumbai – 400 098 Registrar and Share Transfer Agents Bigshare Services Pvt. Ltd. E-2 & 3, Ansa Industrial Estate, Saki-Vihar Road, Sakinaka, Andheri (East), Mumbai - 400 072 Website http://www.ideacellular.com

1

8.25 x 10.75

Performance Highlights

Robust Growth in Top Line
INR bn 155.0 125.0 101.5 67.4 43.9 14.9

Robust Growth in EBITDA
INR bn 34.6 28.4 22.7 37.9

FY07

FY08

FY09

FY10

FY11

FY07

FY08

FY09

FY10

FY11

Robust Growth in Net Profits
INR bn 10.4 8.8 9.5

Robust Growth in Cash Profits
INR bn 30.6 9.0 19.8 23.5

34.1

5.0

11.7

FY07

FY08

FY09

FY10

FY11

FY07

FY08

FY09

FY10

FY11

3

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offering good growth opportunity in the voice business for the strong incumbent telecom operators. for medium to heavy users. 2011. Launch of 3G services In April-June 2010. The Indian wireless market has reached global proportions and is the second largest wireless market in the world. Kolkata and Tamil Nadu (including Chennai). company improved its national standing and as per latest TRAI release. Idea is delighted to win 3G spectrum in 11 important service areas. The country’s wireless tele-density stands at 68. M-education etc. Company is also expanding OFC PoPs and presently has over 1.54. The demerged 11. 2011 Company launched its 3G services and same is now extended to 9 out of these 11 service areas.9% but the sectorial gross revenue increased only by 11. through the market determined auction process. the broadband subscriber base is only at 11.0% 12. respectively. In comparison. through a combination of home network and roaming arrangements. ILD. enabling it to offer 3G services in 15 service areas. Company’s NLD and ILD network currently carries over 90% of captive NLD and ILD outgoing minutes.0% 10. the industry has witnessed savage price drops.Annual Report 2010-11 Management Discussion And Analysis Report Indian Wireless Sector With the award of new mobile licenses in 2008 by the DoT. evolved with time in terms of profitability) and New Service Areas (9 service areas. the testimony to its growing performance. ISP and IP-1 services. including time based billing plans for 3G services. The revenue market share for the company stands at 13. Your Company is now installing 3G cell sites to capture the future wireless broadband data market.4% Source: TRAI 5 .8%. video calling and conferencing on the handset. From 5th ranked operator in FY09.9%. Mobile TV. Revenue Market Share The Company remains focused to improve its revenue market share.0% 13. in terms of gross revenues.0% 11. Your Company’s 2G mobile business is segregated into Established Service Areas (13 service areas.000 plus towers with a tenancy of over 1. launched in FY09 and FY10 and gestating in terms of profitability). Long Distance & Other Services Your Company holds licenses for NLD. 2011.0% as on March 31. slower than gross GDP.7%. Besides these.2% 13. is positioned as No. the Company and its subsidiaries still own 9.2% in FY11 compared to 12. in the last 8 quarters.1% 11. As a result. Telecom Infrastructure As on March 31. The Company has Pan India coverage.7% for 2010-11. the capacity of which is further being expanded. enabling user to avail high end data services without worrying about the volume of usage. With launch of 3G services and all around improvement in 3G ecosystem in terms of devices. Idea subscribers would very soon be able to enjoy 3G services. The Company pursues the strategy of consolidating its leadership position in Established Service Areas and following a calibrated approach while expanding its footprint in the New Service Areas. with around 20. the Company has a portfolio of 73. Idea’s gold standard 3G services connect to the world of faster internet with the speed of upto 21 Mbps. Company was placed among top two operators in terms of incremental gross revenue market share in FY11.094 towers are under IRU arrangement with Indus.668 2G cell sites. across most parts of India. applications and contents your Company is all set to exploit the untapped wireless broadband data market and other emerging verticals of revenue like Mobile banking. In its established service areas Company commands a revenue market share of 17. Company also entered into bilateral roaming arrangement for the service areas of Mumbai. This is expected to change with the arrival of 3G & BWA platforms. Established Service Areas contributes to over 89% of mobile revenues. Karnataka. while the rural tele-density is still under-penetrated at 32. while share of New Service Areas is increasing steadily.89 Mn. 3 Indian operator. Last year industry wireless subscriber base grew by 38. Idea is the first company to introduce the sachet pricing at as low as ` 8 for trial purpose and attractive ‘Gigabyte’ bundles. with leading quality operators. counterintuitive for a high growth market. M-commerce. a penetration of 1%. Revenue market share for Established Service Areas stands at 17. In March. restricting the revenue growth inspite being among the fastest growing global markets in terms of subscribers. Delhi.0% FY09 FY10 FY11 12. These 11 service areas cover 76% of Idea’s revenue base as well as account for half of national mobility revenue. Discussion on Idea’s Operational Performance and Consolidated Financial statements Mobile Business Idea provides mobile services in all 22 service areas of India. the Indian wireless sector is experiencing a phase of hypercompetition and over-capacity.000 km of own built fibre cable transmission network and additional IRU arrangement with other telecom operators. Bihar. besides many other infotainment services. Idea’s Revenue Market Share 14. M-health. The fibre network of the Company optimally serves Company’s 2G/ 3G/ NLD/ ILD/ ISP/Wireless Broadband needs. Idea Mall applications store.4% in FY10.400 PoPs in 91 cities and linked highways. the DoT conducted open auction for 3G and BWA spectrum inviting the existing Indian and Global telecom operator. as fixed-line penetration is low. Idea has also introduced a choice of affordable data billing option for Pre-paid and Post-paid subscribers.

Project ‘Idea MyCash’ along with Axis Bank is currently at a pilot stage. caring.2%. voice quality and low call drops. 2011) and lowest port-out ratio of only 58 subscribers against every 100 subscribers. the TRAI recently started releasing the data of VLR subscribers (surrogate for active subscribers). accessible and humane customer care. Our mission is to shift paradigms. Idea has developed a facility titled ‘Idea MyCash’ which provides basic banking services including money transfer using the mobile platform. and our brand efforts have played a sterling role in cutting through the clutter of advertising with a simple message on the benefits of telephony. placing it among the top 10 operators in the world in terms of voice minutes of usage. On an overall basis. 2011. To monitor the quality of subscribers reported by the industry. 2011). where Non-voice revenue is significantly high. a Pan India network offering seamless connectivity across the length and breadth of the country. driven by a cause. Idea has been most successful on the MNP drive as its program is based on the insights that mobile consumer look for. 2011 compared to a reported subscriber market share of 11. The overwhelming response from the Indian consumers on MNP reflects the power of these parameters. We were the first mover to promote MNP.0%. Your Company is targeting to improve adoption of SMS services. and will be extended to other remittance corridors subsequently. Power Brand Idea is envisioned as a ‘Champion’ brand. We have creatively used the role Mobile Services is playing in uniting the country and providing innovative suggestions to long standing social and societal issues. true reflection of competitive strength of the Company. highlighting our network quality. your Company leads the industry with 93% of reported subscribers as VLR subscribers.6% in March. Non Voice Revenue Idea believes there is significant potential for the growth in the ‘Non Voice Segment’ revenues across all three categories – Text.8 Mn last year. your Company leads the industry with respect to Mobile Number Portability. Idea VAS strategy is to offer rich and high quality content around music. This framework has led to the creation of some very noticeable and memorable advertising like the Caste War.5 Mn as compared to 63. Idea’s communication has been about simple ideas that have the potential to change your life. This is mobile based financial inclusion initiative which besides providing basic banking services to the unbanked like cash deposit. where current penetration is only 39%. The ‘Idea 3G pe Busy’ campaign has been much appreciated and is the most talked about campaign in recent times. Idea has always been stringent in monitoring the quality of its subscriber base. Get Idea’ campaign. The remittance facility is currently being offered on pilot basis from Mumbai (Dharavi) to Uttar Pradesh East (Allahabad) remittance corridor to begin with. the subscribers who opted to change their operator are not very large in numbers. while retaining their mobile number was implemented by a nationwide launch on January 20. Mobile Number Portability The Mobile Number Portability (MNP) . and has also been ranked among India’s Buzziest Brands across telecom and non-telecom categories. This time we have embarked on an even more ambitious social issue that looms large on India’s front – POPULATION. Idea is focused on capturing this opportunity in VAS. The brand communication is designed to be perceived as humane. Voice and Data. cash withdrawal and balance enquiry. accurate billing system. Idea strives to build preference for the brand through its services. making mobile telephony a way of life.IDEA CELLULAR LIMITED Quality Subscriber Base As at end March. Idea represents innovation and vitality. It paints a picture of possibilities that lift mobile telephony from just communication to being an enabler of positive change in the lives of millions. Indian telecom operators manages only 12-13% of VAS revenue. warm and friendly. As per TRAI release (March. Idea is the fastest growing telecom operator in the world’s fastest growing telecom market. Mobile Banking RBI has allowed the mobile operators to acquire a ‘Semi Closed Wallet’ to offer M-banking services for the unbanked so as to improve the financial inclusion of masses. With a net gain of over 930. Education for all. The success on MNP can be attributed to winning the MNP space in consumer’s mind. 6 . superior consumer service and brand strength. bollywood. is imaginative and future ready. Use Mobile Save Paper.an invite to all Indian mobile customers to change their Wireless Operator. Global Scale of Operation at World’s Lowest Pricing Points The Company carried 362. the trends emerging from MNP are clearly distinguishing Idea in terms of customers’ preference for better quality of services and perception of brand value. 2011 the Company’s subscriber base stands at 89. an increase of 40. To be a leader in the fast changing telecom industry. Company’s VLR EoP subscriber market share stands at 14. Indonesia etc. However. it is important to be ahead of the times. thereby lagging behind other emerging markets counterparts in China.6 billion minutes on its network during FY11. only 10% are active users of wireless data services and the company is making all efforts to change the same.000 subscribers (as on July 24. Similarly while 60% of Idea consumers use GPRS/EDGE devices. being delivered by your company. which have not only won many awards but also millions of hearts. Break the Language Barrier. will also enable money transfer between the migrant population in urban areas to their beneficiaries back home. cricket and other mass appeal products to over 93 million mobile users. using the power of ‘No Idea. Idea became the first major telecom operator to initiate Mobile Banking services through an alliance with Axis Bank.

282 as on March 31. 2011. forming part of total revenues after inter segment eliminations. competition. compliance with the requirements of clause 49 of the Listing Agreement.964 Mn. Subscriber Acquisition and Servicing Expenses 10.9%.107 Mn. 7 .Annual Report 2010-11 Due to hyper-competition. stood at ` 155.980 Mn as at March 31. which is an acknowledgement of the organizational culture that exists.6p.104 Mn during the year and stood at ` 10. including the risks associated with the economy.0%. The audit committee of the Board of Directors actively reviews the adequacy and effectiveness of internal control systems and suggests improvements for strengthening them. 2011 as against ` 20. Advertisement & Business Promotion Expenditure 2. The tax charge.005 Mn to ` 3.906 Mn for the year ended March 31. covering operations. But your Company has worked hard to manage its cost structure with better assets utilisation and efficiencies in operation. 2011.0% from ` 4. Internal Control Systems The Company has appropriate internal control systems for business processes. through its participative work environment. Process controls are reviewed periodically and strengthened given the inherent nature of operational fraud risks in telecom sector.3% over the previous year at ` 9. The Gross Block and Net Block [including Capital Work in Progress (CWIP)] stood at ` 336. and by championing the values of commitment. 2011. The Net Profit for the year ended March 31. Net Finance Charges for the year decreased slightly by 1. The framework establishes risk management across all service areas and functions of the Company.0%. License and WPC charges 11.3%. Risk Management The Risk Management framework of the Company ensures. In June. foreign exchange. and concern areas are being suitably addressed. interest rate etc.9%. Depreciation and Amortisation The Company generated a Profit before Interest. amongst others. Other Income reduced predominantly due to reversals arising from conversion of lease agreements from finance lease to operating lease which was specific to the previous year. seamlessness and speed. the realised rate fell by 12. as appropriate.6p.149 mn for the previous year. Regular internal audits and checks ensure that the responsibilities are executed effectively. mainly consisting of deferred tax charge stood at ` 982 Mn. Revenues Revenues and Other Income for the year ended March 31.969 Mn. skill development activities. the cost per minute during the same period declined by 10.316 Mn respectively as at March 31. due to issuance of equity shares to the employees pursuant to exercise of stock options granted under Employee Stock Option Scheme. the Company incurred a capital expenditure of ` 99. Treasury investments in mutual funds decreased by ` 1. indicating a growth of 24. the Company has been ranked 1st in the Telecommunications sector and ranked 12th amongst 471 companies which had participated across sectors on an All India basis. As a result. as compared to ` 124. which are very encouraging. Cash Profit stood at ` 34. 2011 was ` 8.973 Mn for the year ended March 31. Non-voice revenues from subscribers grew at 41. 2011..4%. including ` 57.5% were Personnel Expenditure 5.6%.8%. The various risks.1%.990 Mn during the previous year. in a sector which grew by only 11. The company has participated in the Organisation Health Study (OHS) during the year and findings of the same have been analysed. Roaming and Access Charges 16.3%. from Q4FY10 to Q4FY11 and stands at 40. Clearly defined roles and responsibilities for all managerial positions drive adherence of defined processes. 2011 as part of India’s Best Company to Work for – 2011 study.7% for the previous year.399 Mn for the previous year. Profits and Taxes For the year ended March 31. 2011. These processes are periodically reviewed to ensure that the management of the Company controls risks through a defined framework.977 Mn and ` 261.0% to ` 23. Depreciation. Net Current Liabilities increased as at March 31. The contributors to the total Operating Expense of 75. Depreciation and Amortisation of ` 37. Network Operating Expenses 25. and has in place procedures to inform the Board Members about the risk assessment and minimization process. passion.987 Mn resulting in a net profit margin of 5.773 Mn. financial reporting and compliance with applicable laws and regulations. 2011.5% over the previous year. 2011. were ` 414 Mn while revenues from Passive Infrastructure services were ` 718 Mn. as compared to ` 34.1% over the previous year. The Profit before Tax for the year stood reduced by 7.2%. Human Resources The Company.5% compared to 27.591 Mn for the previous year. Balance Sheet During the year. The total shareholders’ funds stood at ` 122. 2011. Operating Expenses Operating Expenses stood at ` 117.032 Mn. which is able to run high quality telecom services at the world’s lowest price. regulations. 2011 and stood at ` 24. integrity. Amortisation and Finance Charges Depreciation and Amortisation expenses increased by 19.686 Mn being the payout for 3G spectrum.200 Mn as at March 31. Revenues from Long Distance services. Capital Expenditure During the year ended March 31.34 Mn. a growth of 11. The operating parameters are also monitored and controlled. Profit before Interest. the paid-up equity share capital of the Company increased by ` 34.068 Mn.5% and Administration & Other Expenditure 4. 2006. The employee strength on rolls stood at 7. promotes strong bonding with its employees. are monitored and managed effectively.126 Mn vis-à-vis ` 90. and stands at 32. Idea is one of the few companies in the world. The operating profit margin for the current financial year stood at 24.

2 MHz and these prices may be made applicable w. April. • • • • However no final decision has been taken by the Department of Telecommunications on this issue. • 8 . the DoT will shortly conduct a Proof of Concept for the same with a few operators. as per which. while submitting the above report. 2010 had entrusted four experts to study the issues involved and provide the value of spectrum in 1800 MHz band. same was introduced across all remaining service areas of the country from January 20. 2010. In fact. There should be uniform license fee across all telecom licenses and service areas.75 Crore while for the spectrum beyond 6. who do not hold more than 4. After successful trial. As a result. On other security linked compliances. The amendment effectively visualized a penalty of ` 50 crore for any incidence of non-compliance – valid for each purchase order. is estimated to be ` 1. some operators have started roll-out of 3G services. especially in rural areas. Post conclusion of the 3G and BWA spectrum auctioning process.5 times of 1800MHz band. around 64. have impacted services at certain locations like Jammu & Kashmir. it may be noted that DoT extended the time frame for completion of subscriber reverification process – which considering the existing subscriber base was a mammoth exercise.f.2 MHz. majority of the vendors were not able to sign the agreement. Report on the 2010 value of spectrum in the 1800 MHz band The TRAI post their recommendations in May. takes place then in certain service areas spectrum would be available and in that event it should be possible for the government to auction the surplus spectrum and treat the auction price as the relevant price of spectrum beyond 6. 900MHz spectrum band will be valued at 1. 2010 to March 31.23 lakh subscribers have submitted their requests to different service providers for porting their mobile number. After deliberations from service providers the DoT also accepted the UID as a valid Proof of Identity and Address for acquiring mobile connections. In a letter to DoT. The TRAI is separately initiating the exercise to further study this subject and would apprise the Government of its findings. 2010 prorated for the remaining validity of the respective licenses while charging for excess spectrum. the DoT agreed for extension of deadline for EMF compliance from November 30. There were many clauses in the template which were incoherent and not acceptable to the vendors and the operators. 2011 the TRAI has released the experts report on “The 2010 value of spectrum in 1800 MHz band”. the DoT had issued the license amendment. All future licenses should be unified licenses and spectrum to be delinked from the license. The 3G price should be adopted to determine the current price of spectrum in the 1800 MHz band. Spectrum sharing to be allowed between 2 operators. 2010.571. As per the recommendations: • • The contracted spectrum will be 6. The 3G auction conducted by International auctioneers under supervision by Department of Telecommunications concluded in May 2010. upto 6. led to considerable delays in import of equipment and associated roll-out. Post discussions with service providers. During the last quarter of the year. Later on the DoT clarified that the process of import of equipment could also be considered under specific approval process. The 3G and BWA auction fetched a total of approximate ` 106. Spectrum in 800 MHz and 900 MHz bands should be refarmed at the time of renewal of licenses and to be replaced with 450/1900 MHz (for CDMA) /1800 MHz (for GSM) bands with equal amount of spectrum. The service providers also had to face fresh requirements related to compliance on EMF radiation norms. the price for per MHz of the Pan India spectrum. 2011. which was followed by auction for BWA spectrum.87 Crore.000 crore to the Government of India. This clarification – valid for vendors. 2010.2 MHz. On February 9. By the end of March 2011. • TRAI Recommendations on Spectrum Management & Licensing Framework The TRAI on May 11. as per the timeline provided in the Notice Inviting Application (NIA). spectrum has been allocated to successful bidders.769.IDEA CELLULAR LIMITED Regulatory Major regulatory developments for the period are: 3G and BWA Spectrum Allotment The DoT conducted the auction of 3G and BWA spectrum in 2010. who did not sign template agreements. the TRAI has also mentioned the following points: • If the cancellation of licenses. a security template had to be signed between the licensees and vendors. All Spectrum assigned beyond the prescribed limit shall be withdrawn. the estimated price of the Pan India spectrum is ` 4.e. The DoT has also amended the CMTS/UAS license conditions to use 3G/BWA spectrum for provision of telecom access services. The price given by the experts be adopted as the best available figures for spectrum up to 6. Mobile Number Portability The facility of Mobile Number Portability (MNP) service was introduced on a pilot basis in the service area of Haryana on November 25.2 MHz. other than Delhi and Mumbai where it will be 10 MHz. while MTNL and BSNL were allocated spectrum in respective areas with equivalent winning bid prices. (Source: TRAI) Security Compliances On July 28.2 MHz for GSM operators and 5 MHz for CDMA operators. However issues relating to interference etc. As per the report. 2011. announced recommendations on Spectrum Management and Licensing Framework.4 MHz. The prescribed limit for spectrum to be assigned to a service provider will be 8 MHz for all service areas. A total of 71 slots for 3G spectrum were auctioned. as advised by the authority.

Opportunities. Risks. The Company is in partnership with global leaders in Network equipment and IT services and enjoys very long standing healthy relations with all its suppliers. tax laws and other statutes and other incidental factors. This. Competition from new technologies is an inherent threat. However. Idea won 3G spectrum in all these strategically important service areas. has an attractive spectrum footprint to adapt to future technology changes. Concerns and Threats The Indian wireless sector is going through a phase where the volume growth in terms of total minutes of usage in the sector is healthy. IT and business processes. Maharashtra. in terms of gross revenue. Besides the 20 year license won by the company in 22 service areas for 2G business at various stages of its lifecycle. After the completion of the license period. the company works with local. The telecom sector is characterized by technology changes. your Company. Idea has significantly improved its competitiveness in the world’s fastest growing telecom market and now ranks among the top three Indian wireless operators. along with the strong Balance Sheet and a power brand. The Company’s business is dependent on key Network and IT equipment suppliers. for management and continuity of its Network.Annual Report 2010-11 However no final decision has been taken by the Department of Telecommunications on this issue. Idea also holds 3G spectrum for the service areas of Uttar Pradesh (East) and Himachal Pradesh out of these service areas. The Company is of the view that such renewal will be with moderate fees and will not be disruptive in nature. making Idea the second largest operator in these service areas put together. Idea based on its strong position in the leadership service areas. Idea is the leader in four service areas viz. Delhi. The continuation of services and investment protection will hopefully be ensured through the terms of renewal. calibrated approach for new service areas. Madhya Pradesh and Uttar Pradesh (West). estimates. These service areas. Punjab and Andhra Pradesh and ranks 3rd in Gujarat. and 3G spectrum for 11 service areas. Important factors that could make a difference to the Company’s operations include economic conditions affecting demand/supply and price conditions in the domestic markets in which the Company operates. Outlook The over-capacity and hyper-competitive scenario over the last two years resulted in compulsion to operate at tariff levels which are lower than costs for most of the new operators. Idea’s 2G operations are competitively very well placed. Actual results could differ materially from those expressed or implied. Cautionary Statement Statements in the Management Discussion and Analysis describing the Company’s objectives. 9 . However. changes in the Government Regulations. In this phase. expectations may constitute a “forward-looking statement” within the meaning of applicable securities laws and regulations.. related to national security. but the continuous decline in the tariffs resulting in a much lower growth in terms of gross revenue for the sector. with an assortment of spectrum in 900/1800 MHz and now also in 2100 MHz. Idea is also emerging as a strong operator in the service areas of Uttar Pradesh (East) and Rajasthan (ranks 3rd). the renewal of the licenses will be as per the applicable policy. projections. where it was a late entrant. Company has also launched its 3G services in most parts of India and the initial response from 3G subscribers is encouraging. which is under formulation. Himachal Pradesh and Bihar (ranks 4th). brand power. Kerala. state and central agencies for specific permissions to operate its mobile licenses and meet regulatory/policy guidelines of the DoT. Idea is suitably positioned to benefit from the future growth in voice and data. sophisticated management processes coupled with its strong Balance Sheet and generation of steady cash profits is poised to benefit from long term sector opportunities. subscriber verification and other related local/national issues. give a combined revenue market share of 23. ranks 2nd in three service areas namely Haryana. positions the company to make the best of future opportunities in this growth sector.6%.

945 15. Financial Results The standalone and consolidated financial results of your Company for the financial year ended March 31.0% as of end March.8% as compared to the previous year. your Directors do not recommend any dividend for the year ended March 31. 2011. 2011 stood at 89.4% in the previous year.038) Operations Review Your Company’s total subscriber base as on March 31. 2006 (ESOS-2006). a decrease of 5.433. the issued.097 Mn. the brought forward losses from the previous years (including those acquired on amalgamation of Spice Communications Limited in March 2010) have been completely wiped off during this financial year.(10. 2011. Dividend The Company is in the telecommunication sector which continues to see tremendous growth and significant new investments. in FY 11 operated for the first full financial year and are yet to generate cash from operations. Credit Rating Your Company continues to have credit rating of CARE A1+ and CRISIL A1+ for its short term debt program and CARE AA credit rating for its long term debt program. Employee Stock Option Scheme During the year. your Company’s subscriber market share stood at 11.949 (9. As of March 31.303 155.126 37.687 1150 10.314) (5. the total revenues were higher by 24.890 122. an increase of 40. 10 .973 13. 2011 stood at 3.303.0% over the previous year. your company has carried the accumulated Profit and Loss balance of ` 4.979 801 648 1.433 2.500 options as fourth tranche under the Employee Stock Option Scheme.730 11.591 20. The Company’s capex requirements are presently higher than the cash profits and hence the company currently does not have free cash flows.609 31. 2011 from 12.987 Mn.446 (3.005 317 10. your Company issued and allotted 3.964) Consolidated 2010-11 2009-10 As a result of the above. 2011. During the financial year. Share Capital During the year under review. The Profit after tax was lower at ` 8. which. the total revenues for the financial year were ` 153.399 34.482 Mn to Reserves and Surplus.906 23. Your Company incurred a capex of ` 99.2% for the year ended March.271.446 Mn.537 (4. to the option grantees pursuant to the exercise of stock options under Employee Stock Option Scheme.754 1. subscribed and paid-up equity share capital of your Company as on March 31.686 Mn and ` 4. Capital Expenditure Your Company continues to expand network for enhanced coverage and quality. fully paid-up.933 3.524.990 90. 2011.032 Mn over the previous year. Hence.505 equity shares of ` 10/. As at end March.969 982 8.442 4.512 13.448) 4.8% compared to the previous year.each.107 Mn (including ` 57. placing the Company amongst the largest 10 telecom operators in the world.358 28.551 2. a decrease of 19. being payout for 3G spectrum fee and interest capilatised thereon) during the financial year 2010-11. 2011 are summarised below: ` Mn Particulars Standalone 2010-11 2009-10 Income from Services Other Income Total Revenue Operating Expenses EBITDA Depreciation and Amortisation EBIT Interest and Financing charges Surplus from prepayment of loan EBT Taxes Net Profit after Tax Balance brought forward from previous year Accumulated Losses acquired on Amalgamation of Spice Communications Limited (net of withdrawals from General Reserve & Deferred Tax effects) Cumulative Profit / (Losses) 153.038) 90. During the last financial year (FY 10). it carried about 90% of its captive NLD and ILD outgoing traffic.502 154.987 (5.384 123. Consequently. your Company had launched 7 new service areas.328 562 153. the Company’s revenue market share increased to 13.IDEA CELLULAR LIMITED Directors’ Report Dear Shareholders. together with the audited financial statements of the Company for the financial year ended March 31.each.149 14.964 9. Further. Each option is convertible into one Equity 118. On a consolidated basis.482 (3.487 9. on a standalone basis.032 124.215 9.964) 3. However.263) .063 317 11.2% over the previous year. The Company grew its Optic Fibre network by ~ 7. The consolidated Net Profit after tax stood at ` 8. and augmenting the International Long Distance (ILD) network. your Company’s total minutes of usage on the network crossed the daily one billion minutes mark in terms of daily voice traffic. The Company also made significant progress in rolling out its National Long Distance (NLD) network.5 million.713 Equity Shares of ` 10/.063 617 8. the ESOS Compensation Committee granted 2. On a national basis.539 (5.053) 117. Your Directors are pleased to present the sixteenth Annual Report.2006) to the eligible employees of the Company.0% at ` 155.890 Mn representing a growth of 29. 2006 (ESOS .000 route kilometers during the financial year to cater to almost all of its captive National Long Distance traffic.011 119. 2011.281 19.

The disclosures in compliance with clause 12 of Securities and Exchange Board of India (Employees Stock Option Scheme and Employees Stock Purchase Scheme) Guidelines. he has successfully led the numerous new service area roll outs in the last four years and also has led several Company-wide strategic initiatives contributing to the growth of the Company. As the Company did not receive any response to repeated requests made to DoT. it approached Telecom Disputes Settlement and Appellate Tribunal (TDSAT) and filed Petition for necessary direction to the DoT to allow the commercial usage of allocated 3G Spectrum for Punjab service area. 2011.Annual Report 2010-11 Share of the Company upon vesting. • Change in Leadership Mr. shared agreement. the Appellate Bench through interim orders. best in class and in line with the international quality management systems. • 3G Spectrum for Punjab Service Area The Company had participated in the 3G auction conducted by the Department of Telecommunications (DoT). has directed DoT to:(i) Accept the License Fee from the Company without prejudice. 1999. Sanjeev Aga relinquished the office of the Managing Director of the Company from the close of business hours on March 31. challenging the above judgment of July 4. Implementation of sophisticated management processes and continued investment in people have helped the Company set high standards of performance. in the position as Director Operations. Besides providing 3G services in the service areas where the Company has won spectrum. 2011. the Company has launched 3G services in 9 out of these 11 service areas. The matter remains sub-judice. it. Mr. Himanshu Kapania assumed the role of the Managing Director with effect from April 1. The TDSAT has dismissed the said petition in view of order passed by Delhi High Court in July. These options will vest in 4 equal annual installments after one year of the grant and shall be exercisable within a period of 5 years from the date of the vesting. The 3G spectrum for Punjab service area has not been earmarked by DoT to the Company for commercial usage as yet. The Company is in the process of launching 3G services in Jammu and Kashmir service area. Kapania has over 26 years of experience and has indepth knowledge of the Telecom Industry including the current competitive landscape in India. The ISO 9001:2008 certification (by TUV-Nord) ensures a unified platform for providing consistent services to all the customers the Company serves across the markets and hence the processes that are implemented are customer centric. The Hon’ble High Court of Delhi while pronouncing its judgment on July 4. • ISO 9001:2008 Certification The Service Delivery function of the Company is ISO 9001:2008 certified. Consequent to these arrangements. 2011 from the Hon’ble High Court of Delhi against its order dated February 5. 2011. 2011 concerning amalgamation of erstwhile Spice Communications Limited with the Company. the six licenses granted to erstwhile Spice along with the spectrum (including the two operational licenses for Punjab & Karnataka service areas). (ii) Maintain status quo in relation to the aforesaid two operating licenses and not to take any coercive steps in relation to any demand pertaining to the four non operating licenses till the next date of hearing. reaffirmed the amalgamation of Spice with the Company. including Punjab service area. till the time permission of DoT is obtained. the Company is providing 3G services in 6 service areas through roaming arrangements. Upon an appeal filed by the Company before the Appellate Bench. basis the 2G licenses held by it for various service areas and was declared winner for the allotment of 3G spectrum in 11 service areas on May 21. 2011. Significant Developments: • Launch of 3G Services The Company was winner of 3G spectrum in 11 services areas. Though DoT carried the requisite amendments to 2G licenses for 10 service areas. the said judgment transferred and vested unto the DoT. The Company has filed necessary appeal before the Appellate Bench of Delhi High Court against the July. Aga continues to be on the Board as a Non-Executive Director of the Company. basis the outcome of appeal. which was holding the operative 2G license in respect of Punjab service area. Mr. inter-alia. robust measurement and constructive performance conversations. However. During the period March’11 to July’11. the Company has also entered into bilateral roaming arrangements with other leading operators. • Merger of Spice Communications Limited The Department of Telecommunications (DoT) had obtained an ex-parte stay on March 30. however. 2010 sanctioning the Scheme of Amalgamation of Spice Communications Limited (Spice) with the Company. for Punjab service area. and hence Company has not been able to launch 3G service there until now. 2011 order passed by the single judge and would decide the next course of action at an appropriate time. Before taking over this current role. enabling the Company for commercial usage of 3G spectrum. The DoT accordingly issued Letters of Intent for earmarking of 3G spectrum. are set out in Annexure ‘A’ to this Report. the Company had received various Show Cause / Demand Notices from the DoT in respect of the operational and non- 11 . Human Resources Your company continues to invest in building a strong performance culture through alignment. and is in talks to launch its 3G services in the remaining service areas. Thereafter the Company approached DoT for carrying out license amendment. 2010. Mr. is yet to carry license amendment and allow commercial usage of earmarked 3G spectrum in respect of Punjab service area. • Notices from DoT for alleged violation of terms and conditions of License Agreement Due to the DoTs alleged contention that the acquisition of erstwhile Spice Communications Limited and its subsequent amalgamation violates certain license conditions / guidelines. as the Company is continuing to operate the licenses for Punjab & Karnataka service areas granted to erstwhile Spice. as amended.

over 40% of our total BTS portfolio comprises of OD BTS. In a major overhaul of its logistics management. Efforts are also on to re-deploy ID BTS to OD BTS sites. Your Company germinated the thought of ‘Use Mobile. This will reduce the fuel consumption of power generator from running for 15-16 hours to less than 5 hours a day in these locations. use of eco-friendly renewable energy sources. in partnership with The Economic Times. smart logistics. and thereby saving the green cover necessary for the health of the planet. recycling. part of the Aditya Birla Group which is India’s first truly global conglomerate. ultimately resulting in saving tonnes of paper. In a bid to reduce energy consumption by our BTS. Save Paper’ in the minds of millions of mobile users in India. which has resulted in reducing our conventional energy consumption by about 25% as compared to the ID BTS (indoor BTS). Your Company was amongst the first mobile operators in India to promote V-Top up recharges for prepaid users. More details are provided in Note B4 of Schedule 22 – Notes to Accounts. The project aims at exploring the usage of hydrogen as an alternate energy source to power mobile base stations. is one of the oldest players in the Indian telecom industry and has played a key role in the development of mobile telephony. it introduced the ‘PICO’ card. Currently. This initiative is committed towards continuous innovation endeavors. Driven by its socially conscious parent Group. by using a range of mobile based value added services in day-to-day activities to replace paper. along with a few other industry leaders in the wireless space. and business strategies to effectively integrate emerging environmental. cross-industry consortium to encourage the development of environmentally sustainable mobile networks was also led by your Company. social and economic considerations. particularly in rural India. which is being consistently promoted to ensure that more and more users opt for this service. aimed at developing biofuels as a source of power for wireless networks in rural India which are located beyond the reach of the national electricity grid.IDEA CELLULAR LIMITED operational licenses including for alleged failure to meet rollout obligations. 12 . which is a halfsize plastic card that bears the SIM card. Communication Initiatives With a current subscriber base of nearly 10 crore. Some of them are listed below: • Your company has been ranked 1st in the Telecommunications sector and ranked 12th in the country under India’s Best Companies to Work for – 2011 Study conducted by Great Place to Work® Institute. to ensure that there is minimal paper documentation. your Company has conceived another innovative program which is aimed at reducing plastic consumption on a large scale. to explore broad basing of the program. with its aggressive yet thought provoking campaign. Whether it’s through conserving energy. for internal communication amongst employees to minimize travel. As part of a socially responsible corporate group. This will save tonnes of paper and help maintain otherwise fragile eco-balance. to introduce the new PICO card which is expected to save over 90% of plastic used in manufacturing regular cards. The learnings of the research were later handed to the infrastructure company which owns the towers. was conducted in parts of Andhra Pradesh and Maharashtra. videoconferencing. etc. this program has the potential of reducing the usage of a regular power generator to Zero. your Company chose OD BTS (outdoor BTS) as our preferred BTS type in 2007. optimization of future tower rollouts. Efficient power management. leveraging the latest in technology to reach out to a large audience in most energy efficient manner such as video and teleconferencing. responsible and positive influence on the environment and the society in which it operates. Another recent and ongoing initiative is e-Bill. Currently. to ensure a clean and green environment. which will further reduce energy consumption at these sites by 25%. Network Infrastructure Initiatives In our effort to give back to the environment and reduce the collective carbon foot print of the telecom sector in India. your Company stays committed to the cause of giving back to the environment and will continue to drive the efforts towards environment sustainability by reducing carbon foot print and energy consumption. The pilot. and contribute towards saving paper. your Company has and continues to adopt policies. if successful. The campaign was designed to highlight numerous ways of saving paper. Your Company is contesting the same before the appropriate forums. Breaking all conventions. in some locations. Corporate Sustainability Your Company. web chats etc. Your Company is also part of the Fuel Cell project. in a major way. infrastructure sharing. Employee Based Initiatives Your Company’s HR operations have all been enabled online for its over 7. India. The Company uses smart ICT solutions such as teleconferencing. which led to virtual phasing out of paper-based recharge vouchers. initiated by our Group. are some of the best practices in our network infrastructure and day-to-day business operations. which was supported by the GSMA. and enhanced operational efficiencies leading to a substantial reduction of carbon foot print. or finding innovative solutions to environmental and social challenges.000 employees. Your Company is one of the first operators. your Company is committed to being a respectful. The Indian telecom industry’s first collaborative. Awards and Recognitions Your Company’s contribution and efforts is being recognised through prestigious awards and recognitions in various fora. globally. at trial stage. there is an opportunity to influence a large mass of people by promoting green initiatives through our various communication programs and customer service initiatives. your Company pioneered the concept of ‘Shared Telecom Infrastructure’ services. Your Company has explored a Solar Hybrid Solution for running our BTS in parts of rural Bihar.

Some of these are: • “IMAGINE” promotions management system won the Prepaid Excellence Awards 2011 for Best Product Innovation category. Idea strengthened its brand through a series of media properties with associations with Kaun Banega Crorepati. It was supported with a unique service of ‘Idea Language Helpline’ offering instant translations in 15 Indian languages. Matrimony. • • • • • • • • Subsidiaries and Joint Ventures Your Company has the following subsidiaries and joint ventures: Subsidiaries • Aditya Birla Telecom Limited. which provides information on key requirements of the rural segment like mandi rates. 3G compatible handset. The ‘Use Mobile Save Paper’ campaign was one of the most awarded campaigns with over 7 awards in various media awards like the EMVIES 2010. Mission Army and Grammy Awards on VH1. mobile handsets and Fixed Wireless Phones. is engaged in the business of Mobile Banking.5 Lakh students across 3000 schools in 100 cities. Netbook. 3G Experience Zones have been established at the Service Centers across various cities. The campaign was also creditably nominated at the Asian Marketing Effectiveness Awards and it also won us the Olive Crown Gold Award for the Green Brand of the Year at Goafest 2011. Classified Services have been launched as a new VAS service. New Initiatives and Alliances During the year under review. your Company made extensive progress on the marketing and customer care front by introducing various innovative products and services and also entered into various alliances. Idea Cellular Infrastructure Services Limited. Government of India. This system enables the Company to launch targeted promotions for the prepaid subscribers and ensures enhancement in take rate of the promotions. offering access to Jobs. NetSetter and device simulators for demonstration and query handling. Idea Present Citizens Journalist and other regional media properties. Real Estate. To facilitate higher adoption of 3G services by customers and to provide better face-to-face service. The brand continued its association with the Delhi Daredevils team in IPL4. The Company also received the award for ‘Most outstanding use of Radio in an Ad campaign’ at the India Radio Forum 2011. though it is yet to commence commercial operations. Koffee With Karan. Brand !dea has been ranked the 4th Buzziest Brand by Agencyfaqs for second consecutive year. Idea continued on its ‘What an Idea Sirji’ campaign and launched the much appreciated ‘Break the Language Barrier’ campaign. which had a participation of 522 portfolio managers and investors. This is the largest Implementation of Siebel in a single instance in the world. increased customer satisfaction through better customer service. Best Deals etc. the number and SIM management system is being rolled out to enable seamless provisioning of numbers and starter packs in the various network elements.EEMAX Awards 2010 for ‘Idea Rocks India’ and an award for Rural Marketing Programme at the WOW Awards. holds towers de-merged from the Company. The program was very well received as it became one of the largest National School Connect Programs in the country touching 2. Digital Media Awards 10-11 and Yahoo big Chair Awards 10-11. vide its circular 13 .Annual Report 2010-11 • Your Company has also been adjudged amongst the Top 3 companies in Telecommunications sector in the “Best Companies to Work For” Study conducted by Business Today. agriculture etc. Crystal implementation has ensured. Matrix. ICTIL has filed a scheme of arrangement in the Hon’ble High Court of Delhi which provides for its merger into Indus Towers Limited. Best Televised Event . The 3G Experience Zones are managed by trained Data Specialist equipped with TV. Idea Cellular Services Limited. Your Company has been ranked 3rd in Best Investor Relations category for Telecommunications sector (Nominated by Sell Side) in 2011 All-Asia Executive Team rankings by Institutional Investor magazine in a sector based survey. provides manpower services to the Company. in addition to existing marquee properties like Idea Filmfare Awards. livestock. holds 16% shareholding in Indus Towers Limited and 100% shareholding in Idea Cellular Towers Infrastructure Limited. reduced cost. as well as 348 sell-side analysts. • • • The Company launched a unique Interactive Voice Response rural service called ‘Behtar Zindagi’ in 16 regional languages. Siebel CRM (Christened as Crystal) was successfully rolled out in the Company. Swinder Singh Satara and Company Limited. The Idea 3G media campaign was launched to support Idea’s 3G rollout. Outdoor Innovation for “Break the Language Barrier campaign” won two Silver Awards at the OAC (Outdoor Advertising Convention) Awards 2011 for Telecom Category for Multiple Executions and Best New Media Format Innovation. • • • • • • • • In terms of general exemption granted by the Ministry of Corporate Affairs. is a tower company owning towers in Bihar and Orissa service areas and provides passive infrastructure services in these service areas. EFFIES 2010. Idea Mobile Commerce Services Limited (Formerly Carlos Towers Limited). weather information. Idea launched a unique National Inter School Skill fest called “Kaho Whats Your Idea” in association with renowned Quizmaster Derek O Brien. is engaged in the trading of Data Cards. Idea Cellular Towers Infrastructure Limited (ICTIL).

Management Discussion and Analysis The Management Discussion and Analysis Report for the year under review. proper and sufficient care has been taken to the best of their knowledge and belief for the maintenance of adequate accounting records in accordance with the provisions of the Companies Act. as stipulated under clause 49 of the Listing Agreement is presented in a separate section forming part of the Annual Report. Rakesh Jain retire from office by rotation. so as to give a true and fair view of the state of affairs of the Company as at the end of the financial year and of the profit of the Company for that period. Particulars of Employees In accordance with the provisions of Section 217(2A) of the Companies Act. in which Aditya Birla Telecom Limited (ABTL) holds a 16% stake. the Directors confirm that: a) in the preparation of the annual accounts. offer themselves for re-appointment at the ensuing Annual General Meeting of the Company. The annual accounts and other related information of the Subsidiary Companies shall be available for inspection during business hours by the members at the Registered Office of the Company. may write to the Company Secretary at the Registered Office of the Company. Kumar Mangalam Birla. for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities. Technology Absorption. They believe that the financial statements reflect fairly the form and substance of transactions carried out during the year and reasonably present the Company’s financial condition and results of operations. 2/2011 dated February 8. A certificate from the statutory auditors of the Company. confirming compliance with the conditions of Corporate Governance. as therein set out. no amount of principal or interest on fixed deposits was outstanding on the date of the Balance Sheet. and provides passive infrastructure services in 16 service areas. Gian Prakash Gupta.IDEA CELLULAR LIMITED no. Aga during his tenure as the Managing Director. 1988. read with the Companies (Particulars of Employees) Rules. 2011 have not been attached to the Company’s accounts. Any member. is a joint venture between the Bharti group. 1956. Brief profile of the Directors proposed to be appointed / reappointed as required under Clause 49 of the Listing Agreement are annexed to the Notice convening the 16th Annual General Meeting forming part of this Annual Report. and being eligible. Mr. 1956. Conservation of Energy. Mr. the applicable accounting standards have been followed along with proper explanation relating to material departures. the reports and annual accounts of the subsidiary companies for the financial year ended March 31. Himanshu Kapania has been appointed as the Managing Director of the Company for a period of 5 years with effect from April 1. in terms of the provisions of Section 219(1)(b)(iv) of the Act. Foreign Exchange Earnings & Outgo The particulars as required to be disclosed pursuant to Section 217(1)(e) of the Companies Act. Vodafone Essar group and the Company (through ABTL). Your Directors adhere to all the requirements as provided in clause 49 of the Listing Agreement which relates to Corporate Governance. 1975. Fixed Deposits Your Company does not accept or hold any deposits and as such. the report and accounts. A Report on Corporate Governance as stipulated under clause 49 of the Listing Agreement forms part of the Annual Report. are given to the extent applicable in the Annexure ‘B’ forming part of this Report. read with the Companies (Disclosures of Particulars in the Report of Board of Directors) Rules. 2011. Sanjeev Aga relinquished the office of the Managing Director of the Company from the close of business hours on March 31. the Board decided to avail his services as a Non-Executive Director on the Board of the Company with effect from April 1. the annual accounts have been prepared on a going concern basis. An abstract of the terms and conditions of his appointment and memorandum of interest under Section 302 of the Act have been sent to the Members of the Company in February. Corporate Governance The Company is committed to maintain the highest standards of Corporate Governance. 2011. in the growth of the Company. 1956 and the Articles of Association of the Company. However. are being sent to all the members of the Company excluding the aforesaid information about employees. 2011. and in compliance with the conditions enlisted therein. the names and other particulars of employees have been set out in the annexure to this report. Board of Directors Mr. as stipulated under clause 49 forms part of this report. 2011. The copies of these documents will also be made available to the members upon request. Mr. Joint Ventures Indus Towers Limited. 1956. b) c) d) 14 . Sanjeev Aga. and Dr. In accordance with the provisions of the Companies Act. Mr. the accounting policies have been applied consistently and judgments and estimates made are reasonable and prudent. Directors’ Responsibility Statement Your Directors affirm that the audited accounts containing the financial statements for the Financial Year 2010-11 are in conformity with the requirements of the Companies Act. Taking into account the significant contribution made by Mr. 1956. who is interested in obtaining such particulars about employees. Pursuant to Section 217(2AA) of the Companies Act. 2011. 1956.

M/s. does not call for any further explanation/clarification by the Board of Directors under Section 217(3) of the Companies Act. the State Governments. Auditors’ Report and Notes to Accounts The Board has duly reviewed the Statutory Auditors’ Report on the Accounts. Acknowledgements Your Directors wish to express their sincere appreciation to the Department of Telecommunications. Chartered Accountants. 1956. bankers and all the business associates for their support and look forward to continued support in future.Annual Report 2010-11 Auditors The Statutory Auditors of the Company. The Board recommends their re-appointment for the next term. Deloitte Haskins & Sells. For and on behalf of the Board Place: Mumbai Date: July 29. retire at the conclusion of the ensuing Annual General Meeting. 2011 Kumar Mangalam Birla Chairman 15 . including on the sub-judice matter. the Central Government. Mumbai. The Statutory Auditors have confirmed their eligibility and willingness to accept the office on re-appointment. Your Directors also wish to place on record their appreciation to the employees for their commitment in the progress of the Company. The observations appearing in the Auditors’ Report.

2009.221. Tranche IV (January 24.000 NIL g) Variation of terms of In accordance with the approval options of the Board of Directors and the shareholders of the Company. 2008) 6. ` 19.485. c) Options vested d) Options exercised 8.750 The exercise price was determined by averaging the daily closing price of the Company’s equity shares during 7 days immediately preceding the date of grant.30 per option on December 22. 2.000 personnel: In accordance with the approval NIL of the Board of Directors and the shareholders of the Company.250 lapsed 1.918.200 3.253.86 per option of the Board of Directors and option the shareholders of the Company.864.55 ` 229. the ESOS Compensation Committee had re-priced the options from ` 112.524.931. the ESOS Compensation Committee had re-priced the options from ` 112.232.74 Mn 16 .385.624 1.131.500 The exercise price was determined by averaging the daily closing price of the Company’s equity shares during 7 days immediately preceding the date of grant.526.176. 2009) 6. equal to or exceeding 1% of the issued capital (excluding outstanding warrants and conversions) of the Company at the time of grant k) Diluted Earnings Per Share l) Difference between the employee compensation cost.388 ` 3.281.IDEA CELLULAR LIMITED Annexure ‘A’ to the Directors’ Report Disclosure pursuant to the provisions of the Securities and Exchange Board of India (Employee Stock Option Scheme and Employee Stock Purchase Scheme) Guidelines. In accordance with the approval of the Board of Directors and the shareholders of the Company.874 39.` 57. NIL NIL NIL ` 2. 2011) 2.03 to ` 45.03 to ` 45.111. 2009.57 to ` 39.050 Tranche II (July 24. during any one year. the ESOS Compensation Committee had re-priced the options from ` 84. h) Money realized by exercise ` 139.544.30 per option on December 22.940. 2009.55 per option on December 22.57 to ` 39.050 arising as a result of exercise of options f) Options forfeited/cancelled/ 4.889 422.522. 1999 Particulars Tranche I (December 31.90 4.539 NIL NIL Not Applicable e) The total number of shares 3.2006 Tranche III (December 22.238 1. the ESOS Compensation Committee had re-priced the options from ` 84.712.250 The exercise price was determined by averaging the daily closing price of the Company’s equity shares during 7 days immediately preceding the date of grant.500 Mr.337 NIL 2.45 5.819. 2009. ESOS .539 56.544.165 of options i) j) Total number of options in 11.000 granted b) The pricing formula The exercise price was determined by averaging the daily closing price of the Company’s equity shares during 7 days immediately preceding the date of grant and discounting it by 15%. Sanjeev Aga: 428.422 56.` 68.55 per option on December 22. In accordance with the approval Exercise price .000 NIL NIL NIL NIL NIL ii) Any other employee NIL who received a grant in any one year of option amounting to 5% or more of options granted during that year iii) Identified employees NIL who were granted option.182.640. 2007) a) Number of Stock Options 19. computed using the intrinsic value of the stock options and the employee compensation cost that shall have been recognised if the fair value of the options was used.238 422. Sanjeev Aga: 1.700 force Employee wise details of options granted: i) Senior managerial Mr.55 per Exercise price .

2011) The impact of this difference on profits and on The effect of adopting the fair value on the net income and earnings per share for 2010-11 is as presented below : EPS of the company Particulars Net profit after tax but before exceptional items Add: Intrinsic Value compensation cost Less: Fair Value compensation cost Adjusted Net Income Earnings Per Share (`) ` As reported As Adjusted m) (i) W e i g h t e d .2006 Tranche III (December 22.Annual Report 2010-11 Annexure ‘A’ to the Directors’ Report (Contd.55 2. including the following weighted-average information: On the date of Grant (i) risk-free interest rate 7. 2007) Tranche II (July 24.a v e r a g e exercise prices and weighted-average fair values of options whose exercise price exceeds the market price of the stock n) A description of the method and significant assumptions used during the year to estimate the fair values of options.a v e r a g e exercise prices and weighted-average fair values of options whose exercise price is less than the market price of the stock (iii) W e i g h t e d .average fair value options: ` 31.23 Diluted 2.36 (%) (ii) expected life (No.average fair value of Weighted .a v e r a g e exercise prices and weighted-average fair values of options whose exercise price equals the market price of the stock (ii) W e i g h t e d .54 Nil 7. of 4 years 6 months years) (iii) expected volatility (%) (iv) dividend yield (%) 54.average fair value of Weighted .216.average exercise Weighted – average exercise price: ` 39.34 of options: ` 37.34 380.14 6 years 6 months 50.54 Nil ` 57.47 (v) the price of the ` 139.55 Weighted .55 Basic 2.36 6 years 6 months 54.) Particulars Tranche I (December 31. 2008) ESOS .80 Nil ` 87.10 underlying share in market at the time of option grant On the date of Re-pricing (i) risk-free interest rate 7.A.45 Nil ` 68.55 price: ` 68.78 (%) (ii) expected life (No.75 7.08 8.56 2.A.36 5 years 9 months 54. N. 2009) Tranche IV (January 24.50 6 years 6 months 45.30 price: ` 45.97 150.445.04 – 8.76 options: ` 30.05 N. of years) (iii) expected volatility (%) (iv) dividend yield (%) 6 years 6 months 40.86 Weighted .average fair value of options: ` 31.80 __ __ __ __ Weighted – average exercise Weighted – average exercise price: ` 57.00 Nil 7.54 Nil ` 57.05 underlying share in market at the time of option Re-pricing 17 .49 ` Mn 8.48 — __ __ __ Weighted . (v) the price of the ` 57.05 8.

The additional measures adopted / being tried out by the Company for energy conservation are: (i) (ii) (iii) (iv) (v) (vi) B. Particulars of imported technology in the last five years: a) b) c) Technology imported Year of import : : Has the technology been fully absorbed. Benefits derived as a result of the above efforts : Development of a skilled team of engineers in the area of radio engineering. 1988 are furnished hereunder: A. : If not fully absorbed areas where this has not taken place.970. GSM equipments are imported on a regular basis.25 Mn Outgo: ` 16. The company regularly reviews power consumption patterns across its networks and implements requisite improvements/changes in the network or processes in order to optimize power consumption and thereby achieve cost savings. Not applicable 3. No Technology has been imported.IDEA CELLULAR LIMITED Annexure ’B’ to the Directors’ Report Particulars pursuant to the Companies (Disclosure of Particulars in the Report of the Board of Directors) Rules. reasons thereof and future plans of action : 4. The GSM equipments are imported on ongoing basis. Achieved better coverage and high quality of reception. installation of base station and operation of mobile telecom services.70 Mn For and on behalf of the Board Place: Mumbai Date: July 29. Specific areas in which R & D is carried out by the Company 2. Foreign exchange earnings and outgo (Outgo includes CIF value of imports) Earnings: ` 1. Efforts in brief towards technology absorption. : innovation 2. RESEARCH & DEVELOPMENT (R&D) 1. 3. Cost of installation of base station reduced due to better network planning and designing. Benefits derived as result of the above R & D Future Plan of action Expenditure on R&D: a) Capital b) Recurring c) Total d) Total R&D expenditure as percentage of total turnover Solar-DG Hybrid Solutions DG-Battery Hybrid Solutions Indoor to Outdoor conversion of BTSs Deployment of Active TRX shutdown feature Fixed Energy Model with IP Companies Hydrogen Fuel Cell Solutions with Ministry of New and Renewable Energy subsidy : : : Nil Nil The Company will explore various options to adopt latest technology/use of equipment for its operations Nil Nil Nil Nil : : : : TECHNOLOGY ABSORPTION.113. adaptation. CONSERVATION OF ENERGY : Electricity is used for operating the Company’s network. 4. ADAPTATION AND INNOVATION: 1. 2011 Kumar Mangalam Birla Chairman 18 . However.

Rajashree Birla Dr. 5. general management and entrepreneurship. Aga. Pursuant to the demitting of office of Managing Director by Mr.Annual Report 2010-11 Corporate Governance Report Company’s Philosophy on Corporate Governance Corporate Governance refers to a set of laws. 2011 are as follows: 1. Mr. Our governance practices are a product of self desire. The primary role of the Board is to safeguard and enhance the shareholders value and monitor the effective functioning of the Company. Rakesh Jain Mr. 2011.C. Mr. the details of which for the financial year ended March 31. Represents Membership / Chairmanship of two Committees viz. 2011. R. The Company has a balanced board with optimum combination of Executive and Non-Executive Directors which includes independent professionals. As on the date of this report. excludes alternate directorships. Sanjeev Aga. Alternate Director to Mr. relinquished the position of Managing Director of the Company from the close of business hours on March 31. as the Managing Director of the Company with effect from April 1. Idea Cellular Limited. However. if required. Our governance philosophy rests on five basic tenets: ● Board accountability to the Company and shareholders ● Strategic guidance and effective monitoring by the Board ● Protection of minority interests and rights ● Equitable treatment of all shareholders ● Superior transparency and timely disclosure In line with this philosophy. directorships held in foreign companies and companies registered under Section 25 of the Companies Act. of Outside Directorship(s) Held1 Outside Committee Positions Held2 Public Private 15 12 1 4 3 2 2 1 Member 1 1 8 3 1 5 5 Chairman/ Chairperson 3 3 4 2 1 Mr. Nominee of Axiata Group Berhad. 19 . Non-Executive Non-Executive Non-Executive Non-Executive Non-Executive Non-Executive Independent Independent Independent Independent Independent Independent Managing Director 10 6 6 1 9 10 5 9 9 6 Directorships held by the Directors as mentioned above. Shridhir Sariputta Hansa Wijayasuriya4 Mr. Composition of the Board The Board of Directors of your Company comprises of the eminent members from diversified background having rich and varied expertise in the areas of technology. Tarjani Vakil Mr. The Board is assisted by the Managing Director / Senior Management Personnel in ensuring effective functioning of the Company. reflecting the culture of the trusteeship that is deeply ingrained in our value system and reflected in our strategic thought process. All the Directors have intimated periodically about their Directorship and Membership on the Board Committees of other Companies. We believe in maintaining highest standards of Corporate Governance by ensuring compliance with all the applicable laws. Juan Villalonga Navarro. Six Independent Directors and Five Non-Executive Directors. Mohan Gyani Ms. Juan Villalonga Navarro3 Dr. an Aditya Birla Group Company. regulations and good practices that enables an organisation to perform efficiently and ethically generate long-term wealth and create value for all its stakeholders. demonstrating high level of accountability. the Board of Directors has appointed Mr. 4. maintaining high standards of transparency and conducting business in ethical manner. Sanjeev Aga relinquished the office of Managing Director of the Company with effect from close of business hours on March 31. Mr. comprising of a Non-Executive Chairman. Murari Mr. None of the Directors on the Board is a Member of more than ten Committees or Chairman of more than five Committees (as specified in clause 49). The composition of the Board of Directors as on March 31. Subramanian Mr. Arun Thiagarajan Mr. Himanshu Kapania. continuously strives for excellence through adoption of best governance and disclosure practices. he continues to serve as a NonExecutive Director on the Board of the Company. Bhargava Mr. Your Company confirms the compliance of Corporate Governance as contained in clause 49 of the Listing Agreement. across all the Companies in which he/she is a Director. BOARD OF DIRECTORS An active. Audit Committee and Shareholders’ / Investors’ Grievance Committee of Public Limited companies. law. 2011 and the number of Directorships and Committee positions held by them are as under: No. Gian Prakash Gupta Mr. 3. 2011. subject to the approval of the Members of the Company and approval of the Central Government. Biswajit A. The Aditya Birla Group is committed to the adoption of best governance practices and its adherence in the true spirit at all times. informed and independent Board is necessary to ensure highest standards of Corporate Governance. Sanjeev Aga5 1. 2. a Managing Director. Aga continues to be a Non-Executive Director on the Board of the Company effective April 1. 1956. the Board of your Company comprises of 13 Directors. finance. Kumar Mangalam Birla Mrs. The Board provides strategic direction to the Company and Name of Director Category exercises appropriate control to ensure that the business of the Company is conducted in the best interests of the shareholders and society at large. 2011. P.

All Directors except the Managing Director are subject to retirement by rotation and at every Annual General Meeting. The Board Meetings of the Company and its subsidiaries are scheduled well in advance and the notice of such board meeting is given in writing to all the Directors. A declaration signed by the Managing Director affirming the compliance with the Code of Conduct by the Board Members and Senior Management Personnel of the Company is attached and forms part of this report.IDEA CELLULAR LIMITED Appointment and tenure The Directors of the Company are appointed by the shareholders at the General Meeting. Action Taken Report in respect of the matters arising out of the previous meetings is placed at the succeeding meeting of the Board / Committee for noting. The important decisions taken at the Board / Committee meetings are communicated to the concerned departments promptly. which is also uploaded on the website of the Company (www. good corporate governance. The details of attendance of Directors at the Board Meetings and at the last Annual General Meeting are as under: Name of Director No. 2010 and January 24. 2010. The Members of the Board have complete freedom to express their opinion and have unfettered and complete access to information in the Company. Attended as an Alternate Director to Mr. The members of the Board in consultation with the Chairman may bring up any matter for the consideration of the Board. four meetings of the Board were held on May 3. The presentations covering the Company’s performance. In case of business exigencies some resolutions are also passed by circulation. The agenda and agenda notes are circulated to all the Directors well in advance of each meeting of the Board of Directors. The Code is derived from three inter-linked fundamental principles.com). The draft minutes of each Board / Committee Meetings are circulated to all Directors for their comments. viz. During the financial year 2010-11. Murari Mr. R. The Company Secretary in consultation with the Chairman and Managing Director prepares the detailed agenda for the meetings. 2010. operations and business strategy are also made to the Board. the same is tabled at the meeting. Remuneration Committee. if eligible. The Minutes of the Committee Meetings are noted by the Board. ESOS Compensation Committee. 2011. Shareholders’/ Investors’ Grievance Committee. Juan Villalonga Navarro. P. The Company Secretary records the minutes of each Board / Committee Meeting. Rakesh Jain Mr.ideacellular. additional Board Meetings are convened to address the specific needs of the Company. All the relevant information as enumerated in Annexure 1A to clause 49 of the Listing Agreement is placed before the Board. Sanjeev Aga Code of Conduct The Board of Directors have laid down the Code of Conduct for all the Board Members and Senior Management Personnel of the Company. COMMITTEES OF THE BOARD The Board of Directors of the Company has constituted six Board Committees viz.C. before being recorded in the minutes book. good corporate citizenship and exemplary personal conduct. Kumar Mangalam Birla 4 4 Mrs. The Board meets at least once in a quarter to review the quarterly financial results and operations of the Company. The Meetings are governed by a structured agenda. October 25. Rajashree Birla 4 2 Dr. Board Meetings and Procedure The annual calendar of meetings is broadly determined at the beginning of each year. 20 . Audit Committee The Board of Directors has in accordance with the requirements of clause 49 of the Listing Agreement and Section 292A of the 4 4 4 4 4 4 4 4 4 4 4 4 3 1 2 3 4 1 4 3 2 4 Attended Last AGM No No No No No Yes No Yes No No No No No 1. of Board Meetings held during the tenure Held Attended Mr. 2. The role and composition of the aforesaid committees. offer themselves for re-appointment. including the number of meetings held and the related attendance of the members are given below: A. one third of such Directors. July 22. Mohan Gyani Ms. Juan Villalonga Navarro Dr. Where it is not practical to send the relevant information as a part of the agenda papers. Arun Thiagarajan Mr. The Chief Financial Officer and other Senior Management Personnel are invited to the Board Meetings to present reports on the items being discussed at the meeting. The Board periodically reviews the compliance status of all the applicable laws. additional or supplementary agenda items are taken up for discussion with the permission of the Chairman. so as to enable the Directors to have focused discussion at the meeting and to take informed decisions. The terms of reference of each of these Committees are determined by the Board. The maximum time gap between any two consecutive meetings did not exceed four months as prescribed under clause 49 of the Listing Agreement. All the decisions are taken after detailed deliberations by the Board Members at the meetings. Shridhir Sariputta Hansa Wijayasuriya1 Mr. Subramanian Mr. In special and exceptional circumstances. Bhargava Mr. All the agenda items are backed by comprehensive agenda notes and relevant supportings containing all the vital information. Tarjani Vakil Mr. Gian Prakash Gupta Mr. Audit Committee. The Meetings of the Board are generally held in Mumbai. Apart from the above. All Board Members and Senior Management Personnel have affirmed compliance to the Code of Conduct. The Managing Director is appointed for maximum period of 5 years and is eligible for re-appointment upon completion of the term. Finance Committee and IPO Committee. Biswajit A.

Major accounting entries based on exercise of judgment by the management. performance and remuneration of the internal and statutory auditors. 2010. Recommending to the Board. the Statutory Auditors. five meetings of the Audit Committee were held on May 3. Terms of reference The broad terms of reference of Audit Committee includes the following. and the adequacy of internal control systems. Powers of Audit Committee As enumerated in clause 49 of the Listing Agreement. with promoters or the management. Meetings and Attendance The Audit Committee of the Board comprises of four members. the performance of external and internal auditors. reappointment and if required. Compliance with listing and other legal requirements concerning financial statements. The Audit Committee acts as a link between the Management. e. the appointment. sufficient and credible. Reviewing with the management. Oversight of the Company’s financial reporting process and the disclosure of its financial information to ensure that the financial statement is correct. b. Carrying out any other function as and when referred by the Board. auditing and financial reporting process including review of the internal audit reports and action taken report. that may have potential conflict with the interests of Company at large. the Audit Committee. Qualifications in Draft Audit Report. in terms of Section 217(2AA) of the Companies Act. To investigate any activity within its terms of reference. including the structure of the internal audit department.. and n. 2010. g. i. Reviewing with the management. Reviewing the reasons for substantial defaults in the payment to the depositors. 1956: a. August 18. Representatives of the Statutory Auditors and Internal Auditors of the Company are also invited to the Audit Committee Meetings. Changes in accounting policies and practices. Any related party transactions i. Reviewing of functioning of ‘Whistle Blower Mechanism’ in case the same exists. 2010. shareholders (in case of non-payment of declared dividends) and creditors. To seek information from any employee. The majority of the Audit Committee members possess accounting and financial management expertise. Review of Management Letters / Letters of Internal Control Weaknesses issued by the Statutory / Internal Auditors. transactions of the Company of material nature. Compliance with Accounting Standards. coverage and frequency of internal audit. the annual financial statements before submission to the Board. including the Chairman. In addition. reporting structure. Review of Management Discussion and Analysis of financial condition and results of operations. Reviewing the adequacy of internal audit function. July 22. of which three members. m. ● ● ● ● ● ● 21 . c.e. The Managing Director and the Chief Financial Officer of the Company are permanent invitees to the Audit Committee Meeting. To obtain outside legal or other professional advice. October 25. Internal Auditors and the Board of Directors to oversee the financial reporting process of the Company. The recommendations of the Audit Committee are binding on the Board. h. determination of audit fee and also approval of payment for any other services. Significant adjustments made in financial statements arising out of audit findings. 2011. The Company Secretary acts as a Secretary to the Committee. as mandated in clause 49 of the Listing Agreement and Section 292A of the Companies Act. auditing and overall financial reporting process of the Company. Discussion with external auditors before the audit commences on the nature and scope of audit as well as having post-audit discussions to ascertain any area of concern. inter-alia. their subsidiaries or relatives etc. 2010 and January 24. The Committee also oversees the appointment. has the following powers: ● ● ● ● ● Matters required to be included in the Directors’ Responsibility Statement. staffing and seniority of the official heading the department. During the financial year 2010-11. constituted an Audit Committee for overseeing the accounting. Reviewing with the management. the quarterly financial statements before submission to the Board for approval. Discussion with internal auditors on any significant findings and follow-up thereon. Reviewing the findings of any internal investigations by the internal auditors into matters where there is suspected fraud or irregularity or a failure of internal control systems of a material nature and reporting the matter to the Board. Composition. debenture holders. The Committee also gives directions to the management in areas that needs to be strengthened. l. and To secure attendance of outsiders with relevant expertise if it considers necessary. The Committee’s purpose is to oversee the quality and integrity of accounting. are Independent Directors and one Member is a Non-Executive Director. j. The Going Concern assumption. d. with particular reference to: ● ● k. 1956. f. 1956. other Senior Management Personnel are also invited to the Committee Meetings to present reports on the respective functions that are discussed at the meetings from time to time. the removal of external auditor.Annual Report 2010-11 Companies Act.

712. Independent Independent Non . The recommendations of the Remuneration Committee are considered and approved by the Board. 2006. Sanjeev Aga was for a period of five years effective from November 1. (c) Mr. Tarjani Vakil and Mr.000 stock options (Tranche II) at an exercise price of ` 84. details. Remuneration of Directors (i) Remuneration to the Managing Director The remuneration package of the Managing Director is determined by the Remuneration Committee. Sanjeev Aga was paid remuneration in accordance with the limits approved by the Central Government and the Shareholders of the Company at the Annual General Meeting of the Company held on December 21. Arun Thiagarajan. approved vesting of all the unvested options.IDEA CELLULAR LIMITED The composition of the Audit Committee and the attendance of the members at the meetings held during the year are as under: Name of Director Category No. Sanjeev Aga has relinquished the office of the Managing Director of the Company with effect from close of business hours on March 31. Pursuant to the approval received by the members at the 14th Annual General Meeting. if any All elements of remuneration package i. Gian Prakash Gupta. 2007 at an exercise price of ` 112. During the financial year 2010-11. the Company granted 428. Till the date of this report no options have been exercised by Mr. 2010 and January 24. Details of the Managerial Remuneration paid to the Managing Director during FY 2010-11 is as under: Remuneration during 2010-11 Fixed Service Contract. c. These Options would now be exercisable by Mr. Arun Thiagarajan Ms. benefits. Review of remuneration payable to the Directors and senior officials of the Company. Name of the Director Relationship with other Directors Business relationship with the Company. but is continuing as a Non-Executive Director on the Board of the Company. of Meetings Meetings held attended during the tenure 5 5 5 5 5 4 3 3 b. within 3 years from the date of retirement subject to the last date of exercise not exceeding 5 years from the date of vesting of options. Ms. pension etc. Shridhir Sariputta Hansa Wijayaurisya. Alternate Director to Mr. which otherwise would have been lapsed. two meetings of the Remuneration Committee were held on October 25. Juan Villalonga Navarro1 1. No severance fees was payable to the Managing Director. Meetings and Attendance The Remuneration Committee comprises of three NonExecutive Directors. Each Option is convertible into one equity share of the Company upon vesting. The appointment was subject to termination by three months notice on either side. the ESOS Compensation Committee has.57 per option. Further. Terms of reference The broad terms of reference of Remuneration Committee includes the following: a. The Company Secretary acts as a Secretary to the Committee.03 per option.61 Mn Mr. Sanjeev Aga None Managing Director (a) Mr. Aga.000 stock options (Tranche I) on December 31. of No. in accordance with the terms of the Employee Stock Option Scheme. Juan Villalonga Navarro attended two Audit Committee Meetings. The remuneration package of the Managing Director comprises of a fixed salary component and a performance linked bonus. 2011. 2011. 22 . all of whom are Independent Directors. 2009.16 Mn towards performance incentive. 2011. As on March 31. along with performance criteria See note (a) See note (b) See note (c) Mr. ` 76. salary. 2011. if any performance severance fee linked incentives. Sanjeev Aga. Consequent to the retirement of Mr. Mr.55 per option. 2006. During the financial year 2010-11. Sanjeev Aga from the employment of the Company with effect from April 1. 2008.Executive Dr. which were attended by all the members. and Such other matters as may be decided by the Board from time to time Composition.30 per option and stock options granted in Tranche II to ` 45. bonuses. Tarjani Vakil Mr. Sanjeev Aga was paid a sum of ` 27. on July 24.e. Sanjeev Aga was granted 1. Gian Prakash Gupta (Chairman) Independent Mr. (b) The appointment of Mr. the Committee comprised of Mr. Mr. Remuneration Committee The Remuneration Committee has been constituted for reviewing and recommending the remuneration payable to the Directors and senior officials of the Company. subject to the approval of the members of the Company. the ESOS Compensation Committee had re-priced the stock options granted in Tranche I to ` 39. B. linked to achievement of targets. Stock Option component & notice period. Reviewing and advising the Board over the remuneration policies of the Company generally.

the complaints and queries received from the shareholders were general in nature and were mainly pertaining to non-receipt of annual reports.11. All the complaints were resolved to the satisfaction of the investors.000 60.000/. Juan Villalonga Navarro.000 *Dr. P. Santacruz (East).000 60. Tarjani Vakil Mr. Vice President (Legal) & Company Secretary. The Compliance Officer can be contacted at: Idea Cellular Limited “Windsor”. 2011.000 150. Mumbai – 400 098 Tel: +91-9594003434 Fax: +91-22-26527080 Email: shs@idea. issue of duplicate share certificates. 23 . Sanjeev Aga No.700 4.000/. During the financial year 2010-11. The Committee oversees the process of share transfer and monitors redressal of shareholders’/ investors’ complaints / grievances viz. The Compliance Officer briefs the Committee on the grievances/queries of the investors and the steps taken by the Company for redressing their grievances.C. request for subsidiary annual accounts etc. Compliance Officer Mr.000 150. acts as the Compliance Officer of the Company. Arun Thiagarajan Mr. Pankaj Kapdeo.000 40. Rakesh Jain and Mr.for each meeting of the Board and ` 10.000 120. Tarjani Vakil Mr. # shares held singly or as a first shareholder are only considered. The Non-Executive Directors are also entitled to reimbursement of expenses incurred in performance of the duties as directors and members of the committees.192 147 212. The sitting fees. Murari Sitting Fees (`) ` 110. 5th Floor. The Company Secretary acts as a Secretary to the Committee. Juan Villalonga Navarro Mr. the Shareholders’/Investors’ Grievance Committee met once on January 24. the Committee comprises of two members namely. Shridhir Sariputta Hansa Wijayasuriya* Mr. R. Dr. of Equity Shares# 233. Rakesh Jain Mr.000 40. (iii) Details of Shareholding of Directors The details of shareholding of Directors as on March 31. Kalina. There were no other pecuniary relationships or transactions of Non-Executive Directors vis-a-vis Company.868 Composition.for each Meeting of the Committee. Kumar Mangalam Birla Mrs. Gian Prakash Gupta Mr. Rajashree Birla Dr. Kumar Mangalam Birla Dr. 2011 are as under: Name of Director Mr. Meetings and Attendance As on March 31. Gian Prakash Gupta Ms. is presently ` 20. Bhargava Mr. dividend payment. Biswajit A.000 20. Off CST Road. transmission of shares and other related complaints.Annual Report 2010-11 (ii) Remuneration to Non-Executive Directors The Non-Executive Directors are not paid any remuneration except sitting fees for attending the Board Meetings and Committee Meetings. In addition. the Committee also monitors other issues including status of dematerlisation / rematerialisation of shares issued by the Company.000 160. Company has in due compliance with clause 49 of the Listing Agreement constituted a Shareholders’/Investors’ Grievance Committee. Sanjeev Aga. Shridhir Sariputta Hansa Wijayasuriya was paid sitting fees for the meetings attended by him as an alternate director to Mr.com Investor Grievances Redressal Status During the financial year 2010. Rakesh Jain Mr. 2011 are as under: Name of Non-Executive Director Mr. non-receipt of annual report. Near Vidya Nagari. The details of the sitting fees paid to Non-Executive Directors for the financial year ended March 31.adityabirla.000 60. Subramanian Dr. as determined by the Board. The Company has not granted any stock option to any of its Non-Executive Directors. Mohan Gyani Ms. Shareholders’/Investors’ Grievance Committee In order to ensure quick redressal of the complaints of the stakeholders.333 5. 2011 which was attended by both the members. C.000 30. Arun Thiagarajan Mr.000 7.

com to which investors may send complaints. During the financial year 2010-11. Sanjeev Aga. for formulating and implementing an Employee Stock Option Scheme of the Company. 2011. 2011. 2010 and January 24. As on March 31. 2010. Arun Thiagarajan and Ms. 2010. Tarjani Vakil. 2011 No. the Committee comprises of Dr. of complaints as on April 1. of whom two members are Independent Directors. As on the March 31. whose turnover or net worth (paid-up capital and free reserves) exceeds 20% of the consolidated turnover or net worth respectively of the Company. and formulating detailed terms and conditions in accordance with the SEBI Guidelines. Kumar Mangalam Birla Mr. 2010 and July 22. the implementation of the Scheme. The particulars of related party transactions have been disclosed under Note B 18 of Schedule 22 of the Balance Sheet forming part of the Annual Report. the Committee comprised of Mr. of Meetings held during the tenure 3 3 3 No. three meetings of the Finance Committee were held on April 8. 2010 No. As on March 31.adityabirla. Disclosure on materially significant related party transactions The related party transactions are placed before Audit Committee as well as the Board of Directors on a quarterly basis. 4. Rakesh Jain and Mr. 6. SUBSIDIARY COMPANIES The Company does not have any material non-listed Indian subsidiary. 2011 is as follows: No. names of which are set out as under: 1. b. the Company has a dedicated E-mail ID. the Committee comprises of Dr. the Company has followed all the relevant / applicable Accounting Standards issued by the Institute of the Chartered Accountants of India. the Company had six Subsidiary Companies.IDEA CELLULAR LIMITED The status of investors’ complaints as on March 31. Finance Committee The Company has constituted a Finance Committee to approve matters relating to availing of financial / banking facilities. 2. 2011. The Compensation Committee comprises of three Non-Executive Directors. Aditya Birla Telecom Limited Idea Cellular Services Limited Idea Cellular Infrastructure Services Limited Idea Cellular Towers Infrastructure Limited Swinder Singh Satara and Company Limited Idea Mobile Commerce Services Limited (Formerly known as Carlos Towers Limited) To redress investor grievances. 2011 0 239 239 0 F. Sanjeev Aga. Mr. The composition of the ESOS Compensation Committee and the attendance of the members at the meetings held during the year are as under: Name of Director Category No. 1999. three meetings of the Committee were held on May 3. of complaints received during the financial year 2010-11 No. May 21. As on March 31. 2011. The Committee oversees the formulation of ESOP plans. 2011. 3. Kumar Mangalam Birla. DISCLOSURES a. of complaints resolved upto March 31. there were no transactions of material nature entered into with the related parties which were not on the arm’s length basis or that may have potential conflict with the interest of the Company at large. IPO Committee The IPO Committee of the Company was constituted to give effect to the Initial Public Offering of the Company and issue of further equity shares. Tarjani Vakil Non-Executive Independent Independent 3 3 3 E. During the financial year 2010-11. no meetings of the Committee were held. Compensation Committee A Compensation Committee known as “ESOS Compensation Committee” has been constituted in accordance with SEBI (Employee Stock Option Scheme and Employee Stock Purchase Scheme) Guidelines. of complaints pending as on March 31. shs@idea. which were attended by both the members. Disclosure of Accounting Treatment While preparing the financial statements. For the financial year ended March 31. 2010. D. Arun Thiagarajan Ms. Mr. 2011. October 25. 24 . 3. its administration. Rakesh Jain and Mr. 4. 5. During the financial year 2010-11. supervision. of Meetings attended The Minutes of the subsidiary companies as well as statement of significant transactions and arrangements entered into by the unlisted subsidiary companies are placed before the Board Meeting for their review.

Sector 25. Alteration of Articles of Association of the Company due to increase in Authorised Share Capital 2007-08 September 29. the Company organizes earnings call with the analysts and investors and the transcripts of the same are uploaded on the website thereafter. Communication to Shareholders The Company’s quarterly financial results. ii) 5. Financial Year 2009-10 Date September 27. Hotel Haveli. e. 2009. There were no penalties or strictures imposed on the Company by Stock Exchanges or SEBI or any statutory authority on any matter related to capital markets during the last three years. iii) General Body Meetings The last three Annual General Meetings were held as under: Particulars of Special Resolution(s) None 2008-09 December 21. Emerald Hall. The other provisions of these guidelines are being evaluated and your Company will strive to adopt the same in a phased manner. Plot No. Disclosure of Risk Management The Company has an integrated approach to manage the risks inherent in the various aspects of business. MANAGEMENT DISCUSSION AND ANALYSIS A detailed report on Management Discussion and Analysis forms part of the Directors’ Report. Re-pricing of Stock Options granted under ESOS-2006.Annual Report 2010-11 c. 2010 Time 12. The Audit Committee of the Board is regularly informed about the business risks and steps taken to mitigate the same. Voluntary Guidelines – 2009 The Ministry of Corporate Affairs has issued a set of Voluntary Guidelines on ‘Corporate Governance’ and ‘Corporate Social Responsibility’ in December.00 p. Sector 25. 6.ideacellular. X-22/23 GIDC Electronic Estate. Cambay Spa and Resort. official news releases and other general information about the Company are uploaded on the Company’s website (www. At the end of each quarter. d. Plot No.m. Gujarat.00 noon ● ● Increase in Remuneration of Managing Director. X-22/23 GIDC Electronic Estate.com). ● 25 . Gujarat. Gandhinagar -382 044. 2009 12. The quarterly financial results of the Company are generally published in The Economic Times (all editions) and Western Times (a regional daily published in Gujarat). Gandhinagar -382 044. These guidelines are expected to serve as a benchmark for the Corporate Sector and also help them in achieving the highest standard of Corporate Governance. Some of the provisions of these guidelines are already in place as reported elsewhere in this Report.00 noon Venue Cambay Spa and Resort. Gandhinagar – 382 011 Gujarat. Haveli Arcade. 2008 2. SHAREHOLDERS’ INFORMATION i) Disclosure regarding appointment re-appointment of Directors or Brief profile of the Directors seeking appointment or re-appointment is annexed to the notice convening the 16th Annual General Meeting forming part of this Annual Report. Details of non-compliance with regard to the Capital Market The Company has complied with all the requirements of the Stock Exchanges as well as the regulations and guidelines prescribed by the Securities and Exchange Board of India (SEBI). presentation made to Institutional Investors / Analysts. Sector 11.

the Company shall credit the shares allotted pursuant to the Initial Public Offering (IPO) of the Company in the year 2007. Gandhinagar – 382 044. Gujarat. the CEO/CFO certification is appended as an Annexure to this Report. COMPLIANCE The Company has fully complied with all the mandatory requirements as prescribed in clause 49 of the Listing Agreement. September 28. iv) Details of unclaimed shares in terms of clause 5A of the Listing Agreement In terms of clause 5A of the Listing Agreement. of shares 25. as on March 31. 2012 : 3. Gujarat. 9. confirming compliance with the conditions of Corporate Governance.653 Financial Calendar for 2011-12 (Tentative) Financial reporting for the quarter ending June 30. 2011 to September 28. 2011 7.IDEA CELLULAR LIMITED Extra Ordinary General Meeting During the financial year 2010-11. GENERAL SHAREHOLDERS’ INFORMATION 1. an Extra Ordinary General Meeting of the Company was held on March 4. : 6. X-22/23. as on April 1. India. Sector . 2012 End January 2012 : End April 2012 Annual General Meeting for the year ended March 31. Dividend Payment Date Registered Office : 5. has no Plant Locations 4. Sector 25. for passing a special resolution for Alteration to the Articles of Association of the Company. No. Tel: +91-79-66714000 Fax: +91-79-23232251 The Company being a service provider. Book Closure Date : August / September 2012 September 19. 18. the Board has constituted a Remuneration Committee of Directors comprising of Non-Executive and Independent Directors. A Certificate from the Statutory Auditors of the Company. Plot No.e. 2010 Number of shareholders who approached to the Issuer / Registrar for transfer of shares from suspense account during the Financial Year 2010-11 Number of shareholders to whom shares were transferred from suspense account during the Financial Year 2010-11 Aggregate number of shareholders and the outstanding shares lying in the suspense account at the end of the year i. 8. The Company is in full compliance with all the provisions of clause 49 of the Listing Agreement entered into with the Stock Exchange(s). 2011.e. Plot No. 2011 Financial reporting for the quarter ending September 30.048 5. Postal Ballot There was no Special Resolution passed through Postal Ballot during the financial year 2010-11. which are unclaimed and are lying in escrow account to a demat suspense account. Annual General Meeting Day and Date Time Venue : : : Wednesday. 2011 : Financial reporting for the year ending March 31. 2011 : End July 2011 : End October 2011 Financial reporting for the quarter ending December 31. Gandhinagar – 382 011.11. REPORT ON CORPORATE GOVERNANCE This Corporate Governance Report forms part of the Annual Report. CEO/CFO CERTIFICATION As required by clause 49 of the Listing Agreement.048 20. As far as adoption of non-mandatory requirements are concerned. 2011 (both days inclusive) Not Applicable (Since no dividend is proposed for the Financial Year 2010-11) Suman Tower.701 5. Plant Locations : 26 . of cases 134 26 26 108 No. as stipulated in clause 49 of the Listing Agreement entered into with the Stock Exchange(s) is annexed and forms part of this Annual Report. 2. GIDC Electronic Estate. 2011 12:00 noon Cambay Spa and Resort. and the details thereof as required to be disclosed in the Annual Report are given below: Particulars Aggregate number of shareholders and the outstanding shares lying in the suspense account at the beginning of the year i.

548 National Stock Exchange of India Limited High (in `) 69.689 April – 2010 May – 2010 June – 2010 July – 2010 August – 2010 September – 2010 October – 2010 November – 2010 December – 2010 January – 2011 February – 2011 March – 2011 10.65 57.051 1. Dalal Street.50 48.60 71.00 72.20 72.60 67.640.15 66.803 4.10 65.00 64.10 52.762 2.35 70. Bandra-Kurla Complex.05 56.129.232.20 73.00 75. Mumbai – 400 051 Bombay Stock Exchange Limited Phiroze Jeejeebhoy Towers.364 1.55 48.453 8.) 634.15 68.477 660.595.20 66.539.00 79.10 75.75 76.069 5.627.50 67. Mumbai – 400 001 8.199 9.00 67.50 59.) 4.586 5.65 64.30 55. Bandra (East).55 48.60 57.90 76.571 967.BO IDEA.65 57.90 71.45 Avg.70 59.40 Low (in `) 60. (in Nos.00 Close (in `) 61.987.854.40 Bombay Stock Exchange Limited Low (in `) 60.919.628. 9.70 72.911.057 2.986 532.45 73.207.066 4.666 337.80 57.780 1.15 50. Vol.55 67.20 70.40 69.NS Bloomberg IDEA IN NIDEA IN INE669E01016 The Company’s payment of Listing Fees is up-to-date.40 80. Stock Performance The performance of the Company’s share price vis-à-vis the broad based BSE and NSE indices during the year 2010-11 is as under: (a) Comparison of the Company’s share price with BSE Sensex 80 70 60 50 40 May 2010 Aug 2010 Nov 2010 Dec 2010 Sep 2010 Oct 2010 Apr 2010 Mar 2011 Jun 2010 Feb 2011 Jan 2011 Jul 2010 22000 21000 20000 19000 18000 17000 16000 30 Idea Share Price BSE Sensex 27 .15 67.30 73.55 69.00 65.000 1.15 70.50 55.50 Avg. Market Price Data The monthly high and low prices and volume of shares of the Company at the Bombay Stock Exchange Limited (BSE) and the National Stock Exchange of India Limited (NSE) for the year 2010-11 are as under: Month High (in `) 68.20 50.Annual Report 2010-11 7.394.05 75.65 67.70 68.55 73.951 716.746.90 75.974 6.45 72. Listing Details The Equity Shares of the Company are listed on the following Stock Exchanges: Name of Stock Exchanges National Stock Exchange of India Limited “Exchange Plaza”.50 69.80 Close (in `) 61.182 4. (in Nos.95 65.279 3. Vol.10 72.750 259.55 69.355 424.80 48.812.00 65.25 71.80 66.50 59.20 70. Stock Codes Stock Code Bombay Stock Exchange 532822 National Stock Exchange IDEA ISIN Reuters IDEA.30 73.560.90 59.60 71.80 65.

285 Equity Shares of the Company constituting over 99.16 97. Distribution of Shareholding The distribution of shareholding of the Company as on March 31.00 Promoter and Promoter Group Foreign Institutional Investors Non-Resident Indians / Overseas Corporate Bodies 1.91 0.160 Total 3. Saki-Vihar Road.57 1. Dematerialisation of Shares and Liquidity The Shares of the Company are compulsorily traded in dematerialized form. subscribed and paid-up share capital were held in dematerialised form as on March 31.495.645 10. 15. All transfers are first processed by the Registrar and Share Transfer Agent and are submitted to the Company for approval thereafter.57.com 13.977 1. Sakinaka.308.303. Registrar and Share Transfer Agents M/s.005.990.047 327. Ansa Industrial Estate. Shareholding Pattern The shareholding pattern of the Company as on March 31.606 5.07 0.085.88 7.271.271. Near Vidya Nagari.57 100. Mumbai – 400 098 Tel: +91-9594003434 Fax: +91-22-26527080 E-mail: shs@idea. Share Transfer System Transfer of shares in dematerialized form is done through the depositories without any involvement of the Company.561 4.027 7.00 No.58 100. The Company has not issued any GDRs/ADRs/Warrants and hence no amount is outstanding as at the year end.07 3. Investor Correspondence In order to facilitate quick redressal of the grievances / queries. Transfer of shares in physical form is normally processed within a period of 12 days from the date of the lodgement.520. 2011 is as follows: Number of Equity Shares held Upto 5000 5000 – 10000 10001– 20000 20001 – 30000 30001 – 40000 40001 – 50000 50001 – 100000 100001 & above Total Number % to total of ShareShareholders holders 3. Kalina.310 13.303.04 9.957.19 0.256.826. 16.426.486 554 522 707 722 3. Mumbai – 400 072 Tel: +91-22-2847 0652 / 4043 0200 Fax: +91-22-2847 5207 E-mail: investor@bigshareonline. the Investors and Shareholders may contact the Company Secretary at the under mentioned address for any assistance: Mr.408 1. Andheri (East).505 28 .adityabirla.14 0.22 0.com 17.99% of the issued. of Shares 1. Santacruz (East). 2011 is as follows: Category No. Bigshare Services Private Limited E -2 & 3. subject to documents being valid and complete in all respects.222.123.00 14.90 32. 2011. Banks and Insurance Companies 261.075 Resident Indians and Others 85.121 3.69 2.918 3.31 0.160 Domestic Bodies Corporate 22.839 94. The shares of the Company are admitted for trading under both the Depository Systems in India – NSDL and CDSL.260 Mutual Funds.247.574.49 0. 12.14 0.679.475.505 % to total Shareholding 1.116 2.796.32 0.IDEA CELLULAR LIMITED (b) Comparison of the Company’s share price with NSE Nifty 80 70 60 6500 6000 5500 50 40 Feb 2011 Jan 2011 May 2010 Sep 2010 Aug 2010 Nov 2010 Dec 2010 Mar 2011 Apr 2010 Jun 2010 Oct 2010 Jul 2010 5000 4500 30 Idea Share Price NSE Nifty 11.11 0.79. Financial Institutions. 5th Floor.664 3.637. Off CST Road.19 100.06 0. A total number of 3.303. of Shares held 49. Pankaj Kapdeo Vice President (Legal) & Company Secretary Idea Cellular Limited “Windsor”. Outstanding GDRs / ADRs etc.39 0.803 % Shareholding 46.

if any. We have indicated. if any. in the accounting policies during the year and that the same has been disclosed in the notes to the financial statements. 2011 Himanshu Kapania Managing Director Akshaya Moondra Chief Financial Officer 29 . if any in the internal control over financial reporting during the year. Place: Mumbai Date: July 29. Himanshu Kapania. We accept responsibility for establishing and maintaining internal controls for financial reporting and we have evaluated the effectiveness of internal control systems of the Company pertaining to financial reporting. these statements together present a true and fair view of the Company’s affairs and are in compliance with existing Accounting Standards. 2011. which are fraudulent. of the management or any employee having a significant role in the Company’s internal control system over financial reporting. 2011 and: i) ii) b) c) these statements do not contain any materially untrue statement or omit any material fact or contain statements that might be misleading. Significant changes. if any. Managing Director and Akshaya Moondra. We have disclosed to the Auditors and the Audit Committee. 2011 Himanshu Kapania Managing Director CEO/CFO Certification To the Board of Directors Idea Cellular Limited We. d) Place: Mumbai Date: July 29. wherever applicable. to the best of our knowledge and belief. illegal or violative of the Company’s code of conduct. deficiencies in the design and operations of such internal controls. of which we are aware and steps that have been taken to rectify these deficiencies. hereby certify that: a) We have reviewed the financial statements and cash flow statement of the Company for the year ended March 31. There are no transactions entered into by the Company during the year ended March 31. it is hereby declared that all the Board Members and Senior Management personnel of Idea Cellular Limited have affirmed compliance with the Code of Conduct for the year ended March 31. to the Auditors and the Audit Committee: i) ii) iii) Significant changes.Annual Report 2010-11 Declaration As provided under Clause 49 of the Listing Agreement with the Stock Exchange(s). applicable laws and regulations. 2011. and Instances of significant fraud of which we have become aware and the involvement therein. Chief Financial Officer of Idea Cellular Limited (‘the Company’).

we certify that the Company has complied with the conditions of Corporate Governance as stipulated in Clause 49 of the above mentioned Listing Agreement. The compliance of conditions of Corporate Governance is the responsibility of the management. We further state that such compliance is neither an assurance as to the future viability of the Company nor of the efficiency or effectiveness with which the management has conducted the affairs of the Company. It is neither an audit nor an expression of opinion on the financial statements of the Company. 2011 30 . for the year ended on 31st March 2011. Joshi Partner (Membership No.IDEA CELLULAR LIMITED Auditors’ Certificate To the Members of Idea Cellular Limited We have examined the compliance of conditions of Corporate Governance by Idea Cellular Limited. 117 366W) Hemant M. In our opinion and to the best of our information and according to the explanations given to us and the representations made by the Directors and the management. as stipulated in Clause 49 of the Listing Agreement of the said Company with stock exchanges. Our examination has been limited to review of the procedures and implementation thereof adopted by the Company for ensuring compliance with the conditions of Corporate Governance as stipulated in the said Clause.: 38019) Place: Mumbai Date: July 29. For Deloitte Haskins & Sells Chartered Accountants (Registration No.

Annual Report 2010-11 Persons constituting group coming within the definition of “group” for the purpose of Regulation 3 (1)(e)(i) of the Securities and Exchange Board of India (Substantial Acquisition of Shares and Takeovers) Regulations. include the following: 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 Mr. Kumar Mangalam Birla Mrs. Rajashree Birla Mrs. 1997. Neerja Birla Master Aryaman Vikram Birla Birla Group Holdings Private Limited BGH Exim Limited Birla TMT Holdings Private Limited Chaturbhuj Enterprises LLP Essel Mining & Industries Limited Global Holdings Private Limited Green Acre Agro Services Private Limited Gwalior Properties And Estates Private Limited Heritage Housing Finance Limited IGH Holdings Private Limited Infocyber India Private Limited Mangalam Services Limited Naman Finance And Investment Private Limited Rajratna Holdings Private Limited Seshasayee Properties Private Limited 20 Siddhipriya Enterprises LLP 21 TGS Investment And Trade Private Limited 22 Trapti Trading And Investments Private Limited 23 Turquoise Investments And Finance Private Limited 24 Umang Commercial Company Limited 25 Vighnahara Enterprises LLP 26 Vaibhav Holdings Private Limited 31 .

The Company has filed an appeal before the Appellate Bench of Hon’ble High Court of Delhi. as well as evaluating the overall financial statement presentation. Since the matter is sub-judice. 2003. 2. we report as follows: (a) we have obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit. We conducted our audit in accordance with the auditing standards generally accepted in India. Our responsibility is to express an opinion on these financial statements based on our audit. An audit includes examining. Joshi Partner (Membership No. 117 366W) Hemant M. the six telecom licenses granted to erstwhile Spice along with the spectrum (including two operational licenses for Punjab & Karnataka service areas) till the time permission of DoT is granted for transfer thereof upon an application from the Company to that effect. Those Standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatements. evidence supporting the amounts and disclosures in the financial statements. of the cash flows of the Company for the year ended on that date. 2011 and taken on record by the Board of Directors. 3. the Balance Sheet. 6. 2011. 2010 sanctioning the Scheme of Amalgamation of Spice Communications Limited (Spice) with the Company. Without qualifying our opinion. 4. the said financial statements read together with the notes thereon give the information required by the Companies Act.The Appellate Bench of Hon’ble High Court of Delhi through interim order has directed DoT to maintain status quo in respect of the two operational licenses for Punjab & Karnataka and not to take any coercive action for remaining four non-operational licenses. On the basis of the written representations received from the Directors as on March 31. both annexed thereto (together referred to as ‘financial statements’). of the state of affairs of the Company as at March 31. we enclose in the annexure a statement on the matters specified in the paragraphs 4 and 5 of the said Order. the outcome of which is uncertain at this stage. 5. the Profit and Loss Account and the Cash Flow Statement dealt with by this report are in agreement with the books of account. we draw attention to note 2 of schedule 22 B to the financial statements. none of the Directors is disqualified as on March 31. and (iii) in the case of the Cash Flow Statement. till the next date of hearing.IDEA CELLULAR LIMITED Auditors’ Report To the Members of Idea Cellular Limited 1. These financial statements are the responsibility of the Company’s Management. challenging the above judgment dated July 4. of the profit of the Company for the year ended on that date. (b) in our opinion. the Profit and Loss Account and the Cash Flow Statement of the Company for the year ended on that date. Further to our comments in the Annexure referred to in paragraph 3 above. An audit also includes assessing the accounting principles used and the significant estimates made by management. 1956. on the financial statements. (e) in our opinion and to the best of our information and according to the explanations given to us and read with our comments in Para 4 above. As required by the Companies (Auditor’s Report) Order. 2011. if any. 2011 from being appointed as a director in terms of Section 274(1)(g) of the Companies Act. 1956. (d) in our opinion. We believe that our audit provides a reasonable basis for our opinion. 2011 32 . on a test basis. (c) the Balance Sheet. For Deloitte Haskins & Sells Chartered Accountants (Registration No. the Hon’ble High Court of Delhi on July 4. We have audited the attached Balance Sheet of Idea Cellular Limited (‘the Company’) as at March 31. 1956. proper books of account as required by law have been kept by the Company so far as it appears from our examination of those books. the Profit and Loss Account and the Cash Flow Statement dealt with by this report are in compliance with the Accounting Standards referred to in Section 211(3C) of the Companies Act. 2011. 2011 has reaffirmed its order dated February 5.: 38019) Place: Mumbai Date: July 29. (‘the said Order’ / ‘CARO’) issued by the Central Government in terms of Section 227(4A) of the Companies Act. However the judgment transferred & vested unto the Department of Telecommunications (DoT). we are unable to comment on the consequential impact. 1956 in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India: (i) in the case of the Balance Sheet. (ii) in the case of the Profit and Loss Account.

Details of dues of Income Tax. Customs duty and Entry Tax which have not been deposited as on March 31. except for those lying with the third parties. We have. the Company has neither granted nor taken any loans. In our opinion. secured or unsecured. however. Employees’ State Insurance. the procedures of physical verification of inventories followed by the management were reasonable and adequate in relation to the size of the Company and the nature of its business. Customs Duty. Cess and other material statutory dues in arrears. Management believes that differences if any. not affected the going concern status of the Company. there are adequate internal control procedures commensurate with the size of the Company and the nature of its business with regard b) 4. In our opinion and according to the information and explanations given to us. c) 7 . as at March 31. to purchase of inventory and fixed assets and for the sale of goods and services. In our opinion and according to the information and explanations given to us.Annual Report 2010-11 Annexure to the Auditors’ Report (Referred to in paragraph 3 of our report of even date) 1. not made a detailed examination of the records with a view to determining whether they are accurate or complete. 1956. in our opinion. provides for physical verification of all the fixed assets at reasonable intervals. There are no dues of Wealth Tax and Cess which have not been deposited on account of any dispute. including Provident Fund. 9. Sales Tax. the prescribed accounts and records have been made and maintained. the Company has not accepted any deposits from the public to which the directives issued by the Reserve Bank of India and the provisions of sections 58A and 58AA of the Companies Act. including quantitative details and situation of fixed assets. 1956 in respect of telecommunication activities and are of the opinion that prima facie. to / from companies. Sales Tax. the Company has maintained proper records of its inventories and no material discrepancies were noticed on physical verification. In our opinion and according to the information and explanations given to us. 8. b) c) 3. Customs Duty. 2. In respect of its fixed assets: a) The Company has maintained proper records showing full particulars. There were no undisputed amount payable in respect of Income Tax. particulars of which needed to be entered in the register maintained under section 301 of the Companies Act. In our opinion and according to the information and explanations given to us. 2011 for a period of more than six months from the date they became payable. were physically verified during the year by the Management at reasonable intervals. arising out of such reconciliation are not expected to be material. Wealth Tax. firms or other parties listed in the register maintained under section 301 of the Companies Act. During the course of our audit. the Company did not have any dues on account of Excise Duty and Investor Education and Protection Fund. c) 33 . having regard to explanation that certain items purchased are of special nature and suitable alternative sources are not readily available for obtaining comparable quotations. According to information and explanation given to us the Management is in the process of reconciling the results of such physical verification with the fixed assets register. 1956 and the rules framed there under are applicable. we have not observed any major weaknesses in such internal controls systems. The fixed assets were physically verified during the year by the Management in accordance with a regular programme of verification which. Wealth Tax. The fixed assets disposed off during the year. Service Tax. We have broadly reviewed the books of account maintained by the Company pursuant to the rules made by the Central Government for maintenance of cost records under section 209(1)(d) of the Companies Act. the Company has an internal audit system commensurate with the size and nature of its business. According to the information and explanations given to us. 2011 by the Company on account of disputes: b) 6. According to the information and explanations given to us. the inventories. Income Tax. Service Tax. As explained to us. in our opinion. 1956 and hence provisions of paragraph 4(v)(b) of the said Order relating to reasonableness of price having regard to prevailing market price is not applicable to the Company. According to information and explanations given to us in respect of statutory dues: a) The Company has generally been regular in depositing undisputed dues. In respect of its inventory: a) As explained to us. do not constitute a substantial part of the fixed assets of the Company and such disposal has. there were no contracts. Cess and other material statutory dues applicable to it with the appropriate authorities. in our opinion. 5.

1963 Madhya Pradesh Commercial Tax Act. 1961 Income Tax Act.10 Additional Commissioner (Appeals) 3.70 0.53 Assessing Officer.04 0.56 Assistant Excise & Taxation Commissioner. 1994 Punjab VAT Act. 1994 (Service Tax provisions) Finance Act. 1963 Kerala Sales Tax Act. 2004-05 1998-99 to 2001-02 2006-07 1997-98 1998-99 2004-05.94 2. Chandigarh 3. 1962 Haryana Land Development Tax Act. 2004-05. 2008-09 2006-07. 2007-08 2007-08 2006-07 2007-08 2006-07 2002-03. 2002-03.06 19. 2002-03 1999-00 to 2003-04 2006-07 2003-04 2002-03 Amount Forum where the (` Mn) dispute is pending ` 11.203. 2009-10 2007-08 2003-04 to 2009-10 2003-04 to 2007-08 1998-99. 1948 Uttar Pradesh Value Added Act. 1994 (Service Tax provisions) Finance Act.13 2. 1994 Madhya Pradesh Commercial Tax Act.31 Additional Commissioner (Appeals) Sales Tax Appellate Tribunal Assessing officer Sales Tax Appellate Tribunal Deputy Commissioner. 1961 Income Tax Act.69 0. 2005 Uttar Pradesh Trade Tax Act. Sales Tax Joint Commissioner (Appeals) 1.12 Customs Excise & Service Tax Appellate Tribunal 9. 2008 Uttar Pradesh Trade Tax Act.37 Assistant Commissioner of Income Tax 232. 2001-02. 1969 Gujarat Sales Tax Act. 1969 Kerala Sales Tax Act. 1961 Income Tax Act.56 Commissioner Of Appeal-III Lucknow 227. 1994 (Service Tax provisions) Customs Act. 1961 Income Tax Act. Sales Tax Deputy Commissioner. 1994 Madhya Pradesh Commercial Tax Act.98 Commercial Tax Tribunal Bench II Lucknow Allahabad High Court Customs Excise & Service Tax Appellate Tribunal Commissioner of Central Excise (Appeals) Punjab & Haryana High Court 3. 2004-05 2005-06 to 2007-08 2003-04. 2008-09 2002-03 to 2010-11 2007-08.10 Supreme Court 34.IDEA CELLULAR LIMITED Name of the Statute Income Tax Act. 2007-08 2000-01 2003-04 to 2006-07 2006-07. 1948 Uttar Pradesh Trade Tax Act.59 Commercial Tax Tribunal Madhya Pradesh 61. 2007-08.66 Andhra Pradesh High Court 92. 2005 Delhi Sales Tax Act.48 Joint Commissioner (Appeals) 1.15 Karnataka High Court 13.2001 Nature of Dues Income Tax Income Tax Income Tax Income Tax Income Tax Income Tax Sales Tax Sales Tax Sales Tax Sales Tax Sales Tax Sales Tax Sales Tax Sales Tax Sales Tax Sales Tax Sales Tax Sales Tax Sales Tax Sales Tax Sales Tax Sales Tax Sales Tax Sales Tax Sales Tax Service Tax Service Tax Service Tax Service Tax Service Tax Custom Duty Entry Tax Period to which the amount pertains 2007-08.46 Andhra Pradesh High Court 103. 1994 (Service Tax provisions) Finance Act. 2007-08. 1948 (UTTRAKHAND AMENDEMENT) Uttar Pradesh Trade Tax Act. 2008-09 2003 to 2010 2002-03 to 2004-05 2007-08 1997-98. Appeal CG Appellate Board 10.05 0.94 Deputy Commissioner. 1961 Andhra Pradesh General Sales Tax Act.74 7.52 Tribunal 34 .29 Income Tax Officer – TDS 128.79 8.18 Commissioner of Income Tax (Appeals) 29.73 1. 2007-08 1999-00. 2003-04. 1948 (UTTRAKHAND AMENDEMENT) Uttar Pradesh Trade Tax Act. 1948 Finance Act. 1975 Gujarat Sales Tax Act. 1948 Uttar Pradesh Trade Tax Act. 1957 Andhra Pradesh Value Added Tax.02 Trade Tax Tribunal 34.38 Income Tax Appellate Tribunal 4. Commissioner Central Excise & Service Tax 7. 1948 Uttar Pradesh Trade Tax Act. 1994 (Service Tax provisions) Finance Act.39 Joint Commissioner 1.83 0. 1961 Income Tax Act.

1976 MP Entry Tax Act. 2000 Bihar Value Added Tax Act. Joshi Partner (Membership No. Therefore.2002-03. 2001-02 to 2003-04. The Company does not have accumulated losses at the end of the financial year and the Company has not incurred cash losses in the financial year and in the immediately preceding financial year.22 Deputy Commissioner Joint Commissioner (Appeals). 17.47 Deputy Commissioner (Appeal) 5. 1948 (UTTRAKHAND AMENDEMENT) The Uttar Pradesh Tax on Entry of Goods Act. 12. 117 366W) Hemant M.20 Orissa High Court 2. 2000 Uttar Pradesh Trade Tax Act. 21. 2005 Nature of Dues Entry Tax Entry Tax Entry Tax Entry Tax Entry Tax Entry Tax Entry Tax Entry Tax Entry Tax Entry Tax Entry Tax Entry Tax Entry Tax Period to which the amount pertains 2004-05 1998-99 to 2000-01 1998-99 to 2006-07 2005-06 to 2007-08 2008-09.08 2. the term loans have been applied for the purposes for which they were obtained. 2.18 Trade Tax Tribunal 0. the Company has not issued any debentures during the year. 1999 Rajasthan Tax On Entry Of Goods Into Local Areas Act.457 Mn have been used during the year for long term investment. Entry Tax 14. 1999 The Uttar Pradesh Tax on Entry of Goods Act. Therefore. 1976 Orissa Entry Tax Act. debentures and other securities. In our opinion and according to the information and explanations given to us. debentures and other investments. 20. According to the information and explanations furnished by the Management.: 38019) Place: Mumbai Date: July 29.Annual Report 2010-11 Name of the Statute Karnataka Tax on Entry of Goods Act. 2000 The Uttar Pradesh Tax on Entry of Goods Act.57 Uttarakhand High Court 6. In our opinion and according to the information and explanations given to us.92 Karnataka High Court 0. the Company has not raised any money by public issue. 1979 MP Entry Tax Act. the Company has not granted loans and advances on the basis of security by way of pledge of shares. the Company has not defaulted in the repayment of dues to banks and financial institutions. 18. the Company is not dealing in or trading in shares. during the year covered by our audit report. which have been relied upon by us. 1956. 2011 35 . The Company is not a chit fund or a nidhi / mutual benefit fund / society. 11. 13. 2000 The Uttar Pradesh Tax on Entry of Goods Act.03 10.73 Joint Commissioner (Appeals) Joint Commissioner (Appeals). In our opinion and according to the information and explanations given to us.00 1. Commercial Tax. 16.92 Mn detected by the Management for which appropriate steps were taken to strengthen controls.41 Rajasthan High Court Additional Commissioner (Appeals) 0. 2003-04 2007-08 2009-10 Amount Forum where the (` Mn) dispute is pending ` 8.13 Assistant Commissioner. 15. For Deloitte Haskins & Sells Chartered Accountants (Registration No. In our opinion and according to the information and explanations given to us and on an overall examination of the Balance Sheet. Commercial Tax. 2007-08 2001-02. the provisions of paragraph 4 (xv) of the said Order are not applicable to the Company. we report that funds raised on the short term basis amounting to ` 16. other than temporary deployment pending application. the Company has not given any guarantee for loans taken by others from banks or financial institutions. 2000 The Uttar Pradesh Tax on Entry of Goods Act. the Company has not made preferential allotment of shares to parties and companies covered in the register maintained under section 301 of the Companies Act. According to the information and explanations given to us. According to information and explanations given to us. According to information and explanations given to us. 14. 19.72 Commercial Tax Tribunal Madhya Pradesh 22. there were no frauds on or by the Company noticed or reported during the course of our audit except few cases of fraud by employees and by external parties estimated at ` 0. 2009-10 2008-09 2007-08 2006-07 2004-05 1999-00. the provisions of paragraph 4(xiii) of the said Order are not applicable to the Company. According to the information and explanations given to us. 11. securities. According to information and explanations given to us. 1976 MP Entry Tax Act.

295.377.093.05) 231.96 79.76 33.243.05 65.60 2.173.02 77.37 149.84 53.343. 2011 ` Mn Schedules SOURCES OF FUNDS Shareholders’ Funds Share Capital Outstanding Employee Stock Options Reserves and Surplus Loan Funds Secured Unsecured Deferred Tax Liability (Net) (Refer Note B 22 to Schedule 22) TOTAL APPLICATION OF FUNDS Fixed Assets Gross Block (At Cost) Less: Depreciation & Amortisation Net Block Capital Work-in-Progress Investments Current Assets.72 478.056.17 2.378.21 105.387.751.237.IDEA CELLULAR LIMITED Balance Sheet as at March 31.16 1.: 38019 Place: Mumbai Date: July 29.09 89.08 5.870.77 466.998.056.51 227.89 (21.307.35 741.39 27.002.625.291.940.796.963.77 32.65 30.62 38.18 3.58 22 36 .15 231.796.264.600.45 85.38 444.09 59.819.29 191.574. 2010 1 2 33.528.58 3 4 5 6 289.032. Joshi Partner Membership No.728.073.536.614.233.886.73 54.74 186. 2011 For and on behalf of the Board Gian Prakash Gupta Director Akshaya Moondra Chief Financial Officer Arun Thiagarajan Director Pankaj Kapdeo Company Secretary Himanshu Kapania Managing Director As at As at March 31.07 228.301.99 4.81 38.974.21 123.03 36.256.804.46 4. 2011 March 31.11 22.53 98.85 645.551.316.896.16 4.24 35.902.071.36 186.23 1.13 2.515.26 118.26 7 8 9 10 11 12 522.256.270.59 4.751. Loans and Advances Current Assets Inventories Sundry Debtors Cash and Bank Balances Other Current Assets Loans and Advances Less: Current Liabilities and Provisions Current Liabilities Provisions Net Current Assets / (Liabilities) Profit and Loss Account TOTAL Significant Accounting Policies and Notes to the Financial Statements The Schedules referred to above form an integral part of the Balance Sheet In terms of our report attached For Deloitte Haskins & Sells Chartered Accountants Hemant M.75 25.81 153.41 1.40 27.

53 3.94 4. 2011 For and on behalf of the Board Gian Prakash Gupta Director Akshaya Moondra Chief Financial Officer Arun Thiagarajan Director Pankaj Kapdeo Company Secretary Himanshu Kapania Managing Director 37 .963.33) 11.280.23 2.063. DEPRECIATION.288.687.77 (2.848.45) 8.944.87 0.32 3.95 2. 2011 ` Mn Schedules INCOME Service Revenue Sale of Trading Goods Other Income TOTAL OPERATING EXPENDITURE Cost of Trading Goods Sold Personnel Expenditure Network Operating Expenditure License and WPC Charges Roaming & Access Charges Subscriber Acquisition & Servicing Expenditure Advertisement and Business Promotion Expenditure Administration & Other Expenses For the year ended March 31.452.90 (316.32 2.25 561.463.35 17.698.21 9.74) 4.22 5.343.13 1.56 90.13) 10.33 (831.90 613.20 13.427.44 119.83 46.79 17.31 31.: 38019 Place: Mumbai Date: July 29. 2010 118.17 17.303.77 (4.445.38 13 153.063.71) (3.229.21 1. AMORTISATION & TAXES Finance and Treasury Charges (Net) 21 Depreciation 5A Amortisation of Intangible Assets 5 B Surplus from Prepayment of Loan PROFIT BEFORE TAX FROM OPERATING ACTIVITIES Impairment in license value Less: Amount withdrawn from Securities Premium Loss on impairment and expenses relating to Spice Amalgamation Scheme Less: Amount withdrawn from Business Restructuring Reserve PROFIT BEFORE TAX Provision for Taxation .585.15 9.32 28.063.580.83) 15.585.577.456.55 2.150. 2011 For the year ended March 31.394.38 5.39 3.74) 3.845.Deferred .72 122.945.609.844.963.536.889.66 2.97 0.55 14 15 16 17 18 19 20 PROFIT BEFORE FINANCE CHARGES.Annual Report 2010-11 Profit and Loss Account for the year ended March 31.066.60) (171.500.754.482.95 153.21 0.80 (3.89 4.Current .071.798.00 24.487.502.687.77 0.79 (1.763.07 1.327.80) 831.16 12.666.94) 11.86 34.728.90 11.358.MAT Credit PROFIT AFTER TAX Balance of Loss brought forward from previous year Accumulated Losses on Amalgamation of Spice Communications Limited Withdrawal from General Reserve Deferred tax on Amalgamation of Spice Communications Limited BALANCE OF PROFIT / (LOSS) CARRIED FORWARD TO BALANCE SHEET EARNINGS PER SHARE (in `) (Refer note B 21 to Schedule 22) Basic Diluted Significant Accounting Policies and Notes to the Financial Statements 22 The Schedules referred to above form an integral part of the Profit & Loss Account In terms of our report attached For Deloitte Haskins & Sells Chartered Accountants Hemant M.97 (3.22 801.052.55 (4.48 16.20 7.56 2. Joshi Partner Membership No.071.

998.05 220.750.00 33.30 4.000.000.694.694.755.58 38.500 (Previous year 1.77 168.each 1.15) (4.38 64.694.271.56 (1.500) Redeemable Cumulative Non Convertible Preference Shares of ` 10 Mn each Issued.000.00 15.792) Equity Shares of ` 10/.72 32.00 67.000.67 20.00) (3.694.942.450.57) 1.each fully paid up Out of the above 199.796.750.57 (643.05 1.000.56) 83.13 (17.60) 20.000) Equity Shares of ` 10/.134. 2011 March 31.62 2.230.00 (831.00 15.80) (19.505 (Previous year 3.299.54 4.33) 168.230.920.72 64.032. 2010 SCHEDULE 1 SHARE CAPITAL Authorised 6.67 20.469 Equity Shares are allotted as fully paid up under the Scheme of Amalgamation of Spice Communications Limited without payments being received in cash SCHEDULE 2 RESERVES AND SURPLUS Amalgamation Reserve Extinguishment as per Spice Amalgamation Scheme Capital Reserve Extinguishment as per Spice Amalgamation Scheme Securities Premium Account Opening Balance Add: Premium on issue of shares under ESOP scheme Add: Addition on Amalgamation of Spice Communications Limited Less: Utilisation/appropriation as per Spice Amalgamation Scheme i) to Business Restructuring Reserve ii) to Profit and Loss Account iii) to General Reserve Reserve for Business Restructuring Opening Balance Add: Transfer from Securities Premium Account Less: Transferred to Profit and Loss Account during the year General Reserve Opening Balance Addition on merger of telecom business of Aditya Birla Telecom Limited Transfer from Securities Premium Account Transfer from Reserves (Amalgamation and Capital) Adjustment on Amalgamation of Spice Communications Limited Transfer to Profit and Loss Account Profit and Loss Account 67.IDEA CELLULAR LIMITED Schedules forming part of the Accounts ` Mn As at As at March 31.303.482.54 20.000.153.093.72 32.23 89.775.21 643. Subscribed and Paid-up Equity Share Capital 3.67 168.38 33.000 (Previous year 6.585.920.058.62) 64.54 85.837.750.414.998.844.59 (1.26 38 .750.414.54 19.00 82.775.00 82.032.

525.822.00 Mn) Vendor Finance (Repayable within one year ` 885.776. Previous year ` 151.17 Mn.921.523. Previous year ` 1.77 3.48 Mn.149.156.670.378.05 8.026.05 2.952.000.141.42 292. Previous year Nil) Short Term Loan Rupee Loan from Banks Buyers Credit in Foreign Currency from Banks Commercial Papers from Banks (Maximum amount outstanding during the year ` 15.600.34 7.47 309.20 77.48 Mn) Vehicle Loan (Repayable within one year ` 143.000.07 5.98 (Repayable within one year ` 169.39 SCHEDULE 4 UNSECURED LOANS Term Loan Foreign Currency Loan From Banks 10.00 39.386.66 59. Previous year ` 2.080.62 (Repayable within one year ` 2.886.Annual Report 2010-11 Schedules forming part of the Accounts ` Mn As at As at March 31.695. Previous year Nil) Rupee Loan From Banks From Financial Institutions & Others 52.99 5. Previous year ` 6.86 Mn) 891.84 Mn) 39 .28 3.17 27.861.68 6.54 14.991.974. 2010 SCHEDULE 3 SECURED LOANS Term Loan (Refer note B 3 to Schedule 22) Foreign Currency Loan From Banks From Financial Institutions 6.15 Mn.55 3.08 (Repayable within one year ` 8.579.94 3.21 1.12 Mn) Vendor Finance (Repayable within one year Nil.09 Mn.886.833. 2011 March 31.35 Mn.

10 48.419.98 193.296.055.09 7. B .730.738.500.37 Computer .51 4.42 684.19 323.16 Mn (Previous year ` 1.940. 2011 March 31.63 878.751.81 71.52 55.621.26 1.96 Notes: 1.95 731.797.61 1.964.` 10.37 Sale/AdjustAs at ment during March 31.84 1.655. 2011 ranges between 5 to 20 years based on the respective Telecom Service License period.990.71 TOTAL 191. 2010 8.14 58.229.170. issued by Ministry of Corporate Affairs.924. 2011 March 31.460.45 578.31 1.35 731.85 0.071. 2011 the year As at April 1.42 Schedules forming part of the Accounts SCHEDULE 5 .29 45.17 200.62 Previous year 132.23 Mn) and Net Block Nil (Previous year Nil).14 1.09 397.387.56 7.460. 2.85 121.395.396.52 17. 35.15 20.342.94 2.128.434.167.461.53 138.07 798.42 130.427.11 Amortisation Additions during the year 1.85 0. Computer .20 35.030.15 16.07 Mn).24 142.67 Office Equipment 2.Software 3.945. Plant & Machinery includes Gross Block of assets capitalised under finance lease ` 5.275.216.90 Bandwidth 1.53 Mn (Previous year ` 3.40 ` Mn Gross Block Additions during the year 92.64 2.800.51 4.93 58.12 Mn) de-capitalised as per transitional provisions of notification under AS-11. 2011 the year As at April 1.85 Mn) and corresponding Accumulated Depreciation being ` 3.53 Leasehold Land 191.94 217.24 16.434.08 59.11 1.94 Building 1.698.587.57 18.07 TOTAL 36.00 225.37 35.073.62 34.267.90 65.127.61 582. 2010 during the year 148.28 2.814.46 7.012.59 3.689.27 4.72 Mn).19 898.48 Grand Total 228.919.41 565.85 - Additions on account of Amalgamation Entry/License Fees 31.37 83.48 Particulars As at April 1.Software include Gross Block of assets capitalised under finance lease ` 1.99 368.16 10.54 286.399.11 26.54 133.23 149.40 Mn) (Includes capital advances ` 448.53 914.247.39 36.40 32.45 79.05 1.909.75 Mn (Previous year .10 Net Block ` Mn Sale/AdjustAs at As at As at ment during March 31.288.94 1.845.21 1.34 Previous year 23.00 133. 2010 Additions on account of Amalgamation Additions during the year Depreciation Net Block Sale/AdjustAs at As at As at ment March 31.17 2.101.430.85 257. 2011 March 31.797.34 1. 3.39 26.127.143.53 624.70 75.17 13. 2010 Additions on account of Amalgamation 5.429.00 92.09 56.118.22 27.85 12.419.777.81 Capital Work in Progress (Net of impairment provision of ` 8.395.90 211. The remaining amortisation period of license / spectrum fees as at March 31.700.775.247.13 152. Exchange gain amounting to ` 75.22 71.539.194.07 732. 2.33 462.82 140.90 19. 2011 March 31.11 Sale/AdjustAs at ment during March 31.21 Mn (Previous year ` 863.Gross Block ` 174.FIXED ASSETS A .68 65.48 88.10 62.88 1. 2010 Additions on account of Amalgamation Land 148.85 98.868. 4.53 127.986.660.835.51 Plant & Machinery 185.INTANGIBLE ASSETS Gross Block Additions during the year 33.15 1.22 IDEA CELLULAR LIMITED Vehicles 830.71 22. 2010 the year 0. Depreciation charge for the year includes accelerated depreciation of ` 566.34 289.14 191.552.86 Mn) and corresponding Accumulated Depreciation being ` 758.44 4.76 140.058.31 0.64 901.51 337.03 Notes: 1.24 13.861.90 72.65 Mn Previous year ` 131.48 191.430.224.625. Plant & Machinery includes assets held for disposal.957.343.73 12.127.92 20.140.81 Mn (Previous year ` 304.83 664.316.24 16.157.275.729.46 1.85 1.18 19.657.666.318.04 Furniture & Fixture 1.TANGIBLE ASSETS Particulars As at April 1.68 1.53 193.924.67 Mn due to change in estimated useful life of certain fixed assets.143.09 117.332.99 53.398.99 19.46 17.56 Mn) .54 Mn (Previous year ` 744.

73 219.each Idea Cellular Services Limited 50.920.each Swinder Singh Satara & Company Limited 50.000) fully paid equity shares of ` 10/.699.31 16.50 0.91 4.497.23 4.551.183.919.41 95.31 41 .50 1.301.46 4.16 522.12 1.76 0.64 Mn (Previous year ` 292.69 27.50 38.Considered doubtful Other Debts Unsecured .05 220.000 (Previous year 50.02 522.17 235.Considered good .614.302.68 2.728.000 fully paid equity shares of ` 10/.18 1.64 2.99 466.05 2. 2010 SCHEDULE 6 INVESTMENTS Long-term Trade Investment (Unquoted) Investments in Shares of Subsidiaries Aditya Birla Telecom Limited 10.90 1.16 466.474.Annual Report 2010-11 Schedules forming part of the Accounts ` Mn As at As at March 31.000 fully paid equity shares of ` 10/.07 11.000 fully paid equity shares of ` 10/. 2011 March 31.03 4.00 25.360.262.each Idea Mobile Commerce Services Limited (Formerly known as Carlos Towers Limited) 100.082.99 9.379.000 fully paid equity shares of ` 10/.13 4.26 16.50 38.99 Mn) have been taken and are lying with the Company 4.327.00 0.each Current Investment Investments in Units of Mutual Funds (Refer note B 12 to Schedule 22) SCHEDULE 7 INVENTORIES (At lower of cost or estimated realisable value) Sims and Other Cards SCHEDULE 8 SUNDRY DEBTORS Debts outstanding for over six months Unsecured .76 0.Considered good .each Idea Cellular Infrastructure Services Limited 50.357.000.50 0.Considered doubtful Less: Provision for doubtful debts Total Sundry Debtors include certain parties from whom Security Deposits of ` 200.327.

48 3.73 54.528.042.Considered good .30 3.669.342.51 6.918.251.377.81 665.77 4.92 1.72 499.27 455.796.544.98 578.513.08 741. 2011 March 31. Authorities Deposits with others Advance Income Tax (Net of provision of ` 1.251.18 1.45 30.22 11.86 1.85 42 .16 186.90 22.62 38.374.24 Mn as margin money (Previous year ` 262.509.52 1.70 287.72 439.41 733.95 3.11 743.81 37.44 1.90 Mn) MAT Credit Entitlement SCHEDULE 12 CURRENT LIABILITIES AND PROVISIONS Current Liabilities Sundry Creditors (Refer note B 13 to Schedule 22) Book Bank Overdraft Advances from Customers and Unearned Income Deposits from Customers and Others Other Liabilities Interest accrued but not due Provisions Gratuity (Refer note B 16 to Schedule 22) Leave Encashment Asset Retirement Obligation (Refer note B 23 to Schedule 22) Provision for Current Tax (Net of Advance Tax of ` 1.23 110.49 338.in Current Accounts .237.68 4.59 Mn)] SCHEDULE 10 OTHER CURRENT ASSETS Unbilled Revenue Interest Receivable on Deposits SCHEDULE 11 LOANS AND ADVANCES (Unsecured.75 3.765.89 24.592.74 585.040.95 Mn in Previous year) Total 136.902.20 1.35 134.743.13 1.855.10 2.03 8.73 5.774.80 53.918.98 6.22 578.715.68 7.65 6.47 3.13 503.92 1.16 8.53 297.75 275.382.in Deposit Accounts [Includes ` 39.73 523.80 490. considered good unless otherwise stated) Advances recoverable in cash or kind or for value to be received .243.76 6.621.96 450.291.804.05 1.002.556.686.157.51 585. 2010 SCHEDULE 9 CASH AND BANK BALANCES Cash and Cheques on Hand Balances with Scheduled Banks .Considered doubtful Less: Provision for doubtful advances Deposits with Body Corporates Deposits with Subsidiaries Deposits and Balances with Govt.65 36.300.IDEA CELLULAR LIMITED Schedules forming part of the Accounts ` Mn As at As at March 31.95 328.814.93 1.18 4.515.942.173.74 1.580.

86 0.698.25 24.51 384.44 6.076.754.21 17.20 0.651.34 57.444.95 744.109.13 87.74 95.40 561.44 43 .90 11.289.69 16.07 7.05 14.20 0.09 306.91 4.22 20.10 58.48 674.22 0.84 10.55 87. 2010 SCHEDULE 13 OTHER INCOME Liabilities / Provisions no longer required written back Miscellaneous Receipts SCHEDULE 14 COST OF TRADING GOODS SOLD Opening Stock Add: Purchases Less: Closing Stock SCHEDULE 15 PERSONNEL EXPENDITURE Salaries and Allowances etc.728.452.559.187.59 406.10 801.788.79 586.42 206.394.00 46.73 13.23 24.21 5.57 4.Plant and Machinery Switching & Cellsites Rent Lease Line and Connectivity Charges Network Insurance Passive Infrastructure Charges Other Network Operating expenses SCHEDULE 17 LICENSE AND WPC CHARGES License Fees WPC and Spectrum Charges SCHEDULE 18 ROAMING & ACCESS CHARGES Roaming Charges Access Charges 705.16 6.49 1.049.261.17 442.798.682. 2011 March 31.926.10 296.70 930.Annual Report 2010-11 Schedules forming part of the Accounts ` Mn For the year ended For the year ended March 31.288.51 249.34 34.778.83 5.37 47.00 8.47 5.212.509.22 474.07 3.746.70 4.56 17.88 12.310.944. Contribution to Provident and Other Funds Staff Welfare Recruitment and Training SCHEDULE 16 NETWORK OPERATING EXPENDITURE Security Service Charges Power and Fuel Repairs and Maintenance .

184.456.80 266.Others Other Insurance Non Network Rent Rates and Taxes Electricity Printing and Stationery Communication Expenses Travelling and Conveyance Bad Debts written off Provision for bad and doubtful debts / advances Bank Charges Directors Sitting Fees Legal and Professional Charges Audit Fees (Refer note B 7 to Schedule 22) Loss on Sale of Fixed Assets / Asset disposed off Miscellaneous expenses SCHEDULE 21 FINANCE AND TREASURY CHARGES (NET) Interest .22) 78.16 3.56 1.45 172.83 5.44 808.71 0.11 (1.350.87 81.22 230.343. Previous year Nil) .34 244.54 5.35 71.40 11.50 30.19 878.35 2.318.26 82.65 631.185.90 87.13 1.68 16.063.265.763.71 298.26 2.401.30 30.585.31 579.436.49 444.87 431.22 79.89 44 .65 448.36 47.558.Building .093.IDEA CELLULAR LIMITED Schedules forming part of the Accounts ` Mn For the year ended For the year ended March 31.17 5.55 362.On Fixed Period Loan (Net of ` 4.46 1.00 434.17 4.30 554.02 2.13 Mn capitalised.60 249.72 3.487.29 128.427.03 76.11 35.08 1.615.51 1.674.260.342.73 134.98 29. 2010 SCHEDULE 19 SUBSCRIBER ACQUISITION & SERVICING EXPENDITURE Cost of Sim and Other Cards Commission and Discount to Dealers & Recharge Expenses Customer Verification Expenses Collection & Telecalling Expenses Customer Retention & Customer Loyalty Expenses SCHEDULE 20 ADMINISTRATION & OTHER EXPENSES Repairs and Maintenance .462.41 71.733.67 577.85 314.88 3.664.51 2. 2011 March 31.53 1.72 38.66 12.Others Financing Charges Less: Interest Received Profit on Sale of Other Investments Gain / (Loss) on Foreign Exchange Fluctuation (Net) 652.68 9.27 5.58 321.67 461.20 3.47 110.

2. 5. Cost is determined on weighted average basis. Asset retirement obligations are capitalized based on a constructive obligation as a result of past events. Such costs are depreciated over the remaining useful life of the asset. Long term foreign currency monetary liabilities used for acquisition of fixed assets: adjusted to the cost of the fixed assets and amortised over the remaining useful life of the asset. The mandatory applicable accounting standards in India and the provisions of the Companies Act. The company has aligned its accounting policy based on this notification.Annual Report 2010-11 Schedules forming part of the Accounts SCHEDULE 22 A. Foreign currency transactions: Transactions in foreign currency are recorded at the exchange rates prevailing at the dates of the transactions. Basis of Preparation of Financial Statements: The Financial Statements have been prepared under the historical cost convention on accrual basis.are depreciated fully in the month of purchase. 1956 have been followed in preparation of these financial statements. Inventories: Inventories are valued at cost or net realisable value. 4. 3) ii) i) Cost of Rights. Depreciation and Amortisation: Depreciation on fixed assets is provided on straight-line method (except stated otherwise) on the basis of estimated useful economic lives as given below: Tangible Assets Buildings Network Equipments Optical Fibre Other Plant and Machineries Office Equipments Computers Furniture and Fixtures Motor Vehicles Leasehold Improvements Leasehold Land Years 9 to 30 10 to 13 15 5 3 to 9 3 3 to 10 upto 5 Period of Lease Period of Lease b) 7. Bandwidth / Fibre taken on Indefeasible Right of Use (IRU) is amortised over the agreement period. 2009. As per the transitional provisions given in the notification issued by Ministry of Corporate Affairs dated 31st March. Deferred Tax: Deferred tax arising on account of timing differences and which are capable of reversal in one or more subsequent periods is recognised using the tax rates and tax laws that have been Intangible Assets are amortised on straight-line method as under:- 45 . Assets costing upto ` 5. the company has opted for the option of adjusting the exchange difference on long term foreign currency monetary items to the cost of the assets acquired out of these foreign currency monetary items. 2012. when it is probable that an outflow of resources will be required to settle the obligation and a reliable estimate of the amount can be made. Licences including the fees paid on fixed basis prior to revenue share regime and Spectrum fee is amortised on straight-line method on commencement of operations over the validity period. Cost is inclusive of freight. which is not an integral part of Hardware. Software. Fixed Assets: Fixed assets are stated at cost of acquisition and installation less accumulated depreciation. Other long term foreign currency monetary liabilities: recognised in “Foreign Currency Monetary Item Translation Difference Account” and amortised over the period of liability not exceeding 31st March. Expenditure during pre-operative period of license: Expenses incurred on project and other charges during construction period are included under pre-operative expenditure (grouped under Capital Work in Progress) and are allocated to the cost of Fixed Assets on the commencement of commercial operations. duties. 3. is treated as Intangible asset and is amortized over their useful economic lives as estimated by the management between 3 to 5 years. whichever is lower. Exchange difference arising out of fluctuation in exchange rates on settlement / period end is accounted based on the nature of transaction as under: 1) 2) Short term foreign currency monetary assets and liabilities: recognised in the Profit and Loss account. SIGNIFICANT ACCOUNTING POLICIES 1.000/. levies and any directly attributable cost of bringing the assets to their working condition for intended use. 6. iii) Taxation: a) Current Tax: Provision for current income tax is made on the taxable income using the applicable tax rates and tax laws.

Finance: Leased assets acquired on which significant risk and reward of ownership effectively transferred to the Company are capitalised at lower of fair value or the amounts paid under such lease arrangements. if any. on a straight-line or other systematic basis over the lease term. 10. 14. 13. b) 46 . the said asset is created by way of a credit to the Profit and Loss account and shown as MAT credit entitlement. which remain unpaid for more than 90 days from the date of bill and/or other debts which are otherwise considered doubtful. Provision in accounts for leave benefits to employees is based on actuarial valuation done by projected accrued benefit method at the period end. are provided for. Borrowing Cost: Interest and other costs incurred in connection with the borrowing of the funds are charged to revenue on accrual basis except those borrowing costs which are directly attributable to the acquisition or construction of those fixed assets. 8. 1999 the variable licence fee computed at prescribed rates of revenue share is being charged to the profit and loss account in the period in which the related revenue arises. In the year in which the MAT credit becomes eligible to be recognized as an asset in accordance with the recommendations contained in Guidance Note issued by the ICAI. service tax etc. Unbilled receivables represent revenues recognized from the bill cycle date to the end of each month. Use of Estimate: The preparation of financial statements in conformity with generally accepted accounting principles requires estimates and assumptions to be made that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities on the date of the financial statements and the reported amounts of revenues and expenses during the reporting year. Such costs are capitalized with the fixed assets. Lease payments under an operating lease are recognised as expense in the profit and loss account. Leases: a) Operating: Lease of assets under which significant risks and rewards of ownership are effectively retained by the lessor are classified as operating leases. 12. discount. Licence Fees – Revenue Share: With effect from 1st August. on rendering of services and supply of goods respectively. 9. Service income from passive infrastructure is recognized on accrual basis (net of reimbursements) as per the contractual terms on straight line method over the contract period. Debts (net of security deposits outstanding there against) due from subscribers. c) Minimum Alternative Tax (MAT) credit: MAT credit is recognised as an asset only when and to the extent there is convincing evidence that the Company will pay normal income tax during the specified period. Deferred tax assets are not recognised unless there is virtual certainty with respect to the reversal of the same in future years. Retirement Benefits: Contributions to Provident and Pension funds are funded with the appropriate authorities and charged to the Profit and Loss Account. Liability for gratuity as at the year end is provided on the basis of actuarial valuation and funded with Life Insurance Corporation of India. roaming charges and passive infrastructure sharing from other telecom operators is made for dues outstanding more than 180 days from the date of billing other than cases when an amount is payable to that operator or in specific case when management is of the view that the amount is recoverable. Provision for doubtful debts on account of interconnect usage charges (IUC). Investments: Current investments are stated at lower of cost or fair value in respect of each separate investment. Recharge fees on recharge vouchers is recognized as revenue as and when the recharge voucher is activated by the subscriber. 11.IDEA CELLULAR LIMITED enacted or substantively enacted. Revenue Recognition and Receivables: Revenue on account of telephony services (mobile & long distance) and sale of handsets and related accessories is recognized net of rebates. The Company reviews the same at each balance sheet date and writes down the carrying amount of MAT credit entitlement to the extent there is no longer convincing evidence to the effect that Company will pay normal income tax during the specified period. These are billed in subsequent periods as per the terms of the billing plans. Contributions to superannuation are funded with the Life Insurance Corporation of India and charged to the profit and loss account. Differences between actual results and estimates are recognised in the periods in which the results are known / materialise. Such assets are amortised over the period of lease or estimated life of such assets whichever is less. Revenue for this purpose comprises adjusted gross revenue as per the licence agreement of the licence area to which the licence pertains. Long-term investments are stated at cost less provision for diminution in value other than temporary. which necessarily take a substantial period of time to get ready for their intended use.

2011. Madhya Pradesh & Chattisgarh. till the time permission of DoT is granted for transfer thereof upon an application from the Company to that effect. if required. A contingent liability is disclosed where there is a possible obligation or a present obligation that may. 2011. 16. the Company has not been given clearance for commercial use of the allotted spectrum band. the consequential financial impact. However. challenging the above judgment of 4th July. Earnings Per Share: The earnings considered in ascertaining the Company’s EPS comprises the net profit after tax. reaffirmed the amalgamation of Spice with the Company.Annual Report 2010-11 15.048. 2010. the incremental intrinsic value of the option is accounted as employee cost over the remaining vesting period. the six licenses granted to erstwhile Spice along with the spectrum (including the two operational licenses for Punjab & Karnataka service areas). Himachal Pradesh. The erstwhile Spice Communications Limited (Spice) was amalgamated with the Company effective 1st March. maintain status quo in relation to the aforesaid two operating licenses and no coercive steps in relation to any demand pertaining to the four non operating licenses. As of 31st March. the Hon’ble High Court of Delhi while pronouncing its judgment on 4th July. The Company had approached Hon’ble TDSAT for direction to DoT to allow commercial use of the allotted 3G spectrum band. it is more likely than not that an outflow of resources will be required to settle the obligation.96 Mn) and Rupee Loans 47 .90 Mn Spectrum in the 2100 MHz band has been allotted to the Company for a period of twenty years in the 11 service areas. for the amount by which the asset’s carrying amount exceeds its recoverable amount as on the carrying date. Appellate Bench has directed DoT to :(i) Accept the License Fee from the Company without prejudice. Haryana. paid or not). Andhra Pradesh. the intrinsic value of the option is treated as discount and accounted as employee compensation cost over the vesting period. viz. Gujarat. Madhya Pradesh & Chattisgarh. Pending the final disposal of the appeal.776. 2010 pursuant to sanction of the Scheme of Amalgamation by Hon’ble High Court of Gujarat and Hon’ble High Court of Delhi. 3. sanctioning the above scheme. Impairment of Assets: Assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. The number of shares used in computing basic EPS is the weighted average number of shares outstanding during the period. The recoverable amount is higher of the asset’s fair value less costs to sell vis-à-vis value in use. the said judgment transferred and vested unto the DoT. Himachal Pradesh and Jammu & Kashmir. Maharashtra. In respect of re-pricing of existing stock option. require an outflow of resources. 18. The Company then filed an appeal. An impairment loss is recognized in accordance for AS-28 “Impairment of Assets”.685. and the amount has been reliably estimated. Uttar Pradesh (East). Uttar Pradesh (West). 2. 19. after adjusting for the effects of potential dilutive equity shares unless the effect of the potential dilutive equity shares is anti-dilutive. Secured Loans a) Foreign Currency and Rupee Loans Foreign Currency Loans amounting to ` 20. assets are grouped at the lowest levels for which there are separately identifiable cash flows. the Company has launched 3G services in select towns in the service areas of Gujarat. upon the final disposal of the matters mentioned in point 2 below by the Appellate Bench of Hon’ble High Court of Delhi. B. issued by the Institute of Chartered Accountants of India. 2011. The Hon’ble TDSAT has directed the Company to approach it again. Through interim orders. Provisions & Contingent Liability: Provisions are recognized when the Company has a present obligation as a result of past events. 17. For the purpose of impairment. In the service areas of Andhra Pradesh. Punjab. 3G services in select towns have been launched in April. 2011. Kerala. 2011 for recall of the order dated 5th February. as per Accounting Standard 20 on “Earnings Per Share”. before the Appellate Bench of the Hon’ble High Court of Delhi. The diluted EPS is calculated on the same basis as basic EPS. as the Company is continuing to operate the licenses for Punjab & Karnataka service areas granted to erstwhile Spice. However. but probably will not. In the Punjab service area. Maharashtra and Uttar Pradesh (West). (ii) Till the next date of hearing. if any. Employee Stock Option: In respect of stock options granted pursuant to the company’s Employee Stock Option Scheme. cannot be ascertained. Issue Expenditure: Expenses incurred in connection with issue of equity shares are adjusted against share premium. Kerala and Uttar Pradesh (East). upon an application made by DoT on 30th March. Haryana. after reducing dividend on Cumulative Preference Shares for the period (irrespective of whether declared. 1. NOTES TO ACCOUNTS The company successfully bid for 11 service areas in the 3G Spectrum auction held by the Department of Telecommunications (DoT) during the year for a total cost of ` 57.22 Mn (Previous year ` 14.

4. The same has been disposed off by Hon’ble TDSAT. The above demands were challenged by the Company before the Hon’ble TDSAT and stay has been granted. in case the company is aggrieved by any final orders of DoT in this matter.106. 2011 and dated 1st June. book debts. 2011 for violation of license conditions in respect of Punjab & Karnataka service areas respectively granted to the Company.98 Mn (Previous year ` 42. Following the favourable decision of TDSAT on petition No. iii.733. b) ii.98 Mn (Previous year ` 42. Haryana and Maharashtra service areas held by the company. which the Company has since complied with.88 Mn. Dated 11th May. titles and interest. The Company had challenged the show cause notice dated 24th February. Maharashtra. 2011 above before Hon’ble TDSAT. the company has received the following demands / notices: (i) Demand notices dated 24th February. which were deposited under protest and reflected as advances. other general assets. these amounts have been adjusted against spectrum dues as of 31 st March. 2011 for termination due to non fulfillment of rollout obligations in respect of UAS license for Karnataka service area granted to Company and for Andhra Pradesh service area granted to erstwhile Spice Communications Limited. A first priority charge over all intangible assets (excluding Telecom Licenses) of the Company. Haryana and Andhra Pradesh service areas granted to erstwhile Spice Communications Limited.41 Mn) additionally have pledge on 60% shareholding of Indus Towers Limited held by wholly owned subsidiary. 2011. (iii) Demands for liquidated damages amounting to ` 276. bank accounts. During the financial year 2006-07.41 Mn) included above. DoT has filed an appeal in Hon’ble Supreme Court. have additional security as first priority charge over Telecom Licenses also. provided in favour of the Company. Vide interim orders dated 8th June. letters of credit and guarantee or performance bond.791.97 Mn (Previous year ` 42. Further Foreign Currency Loan amounting to ` 8. Dated 24th February. 2011 and 1st June. 48 . iii. (ii) Show Cause notices for termination of six UAS licenses issued in 2008.34 Mn (Previous year ` 8. BTA Cellcom Limited and Spice Communications Limited amounting to ` 844. Out of the above Loan. Subsequently. Haryana and Andhra Pradesh. b) Vehicle Loan Vehicle Loan amounting to ` 292. Foreign Currency Loan amounting to ` 18.96 Mn) & Rupee Loan amounting to ` 40.531. on deposits. the Hon’ble TDSAT has directed the Company to deposit 60% of the amount within a week for securing interest of both the parties without prejudice to their respective rights and contentions. which have not been rolled out. 2011. insurance covers.34 Mn) & Rupee Loan amounting to ` 40. the WPC wing of DoT had raised demands towards monthly compounded interest and penalty on WPC charges for the period upto financial year 2002-03 in respect of the telecom service areas of the erstwhile Idea Mobile Communication Limited. First charge by hypothecation / mortgage on all the movable and immovable properties of the Company respectively. as under: i.782.02 Mn (Previous year ` 11.20 Mn (Previous year ` 309. 2011 of ` 500 Mn each in respect of CMTS licenses of Delhi.606.106.531. Demand notices dated 1st June. Andhra Pradesh.IDEA CELLULAR LIMITED amounting to ` 56.531. Assignment of the rights. Dated 1st June. 2011 for violation of license conditions in respect of Delhi. 123 of 2008. investments.50 Mn for non fulfillment of roll out obligations in respect of UAS licenses issued in 2008 to the Company for Punjab and Karnataka service areas and to the erstwhile Spice Communications Limited for the service areas of Maharashtra.349. terming it as premature with a liberty to approach the Hon’ble TDSAT afresh. 2011 of ` 500 Mn each in respect of UAS licenses for Punjab and Karnataka service areas respectively held by erstwhile Spice Communications Limited. The company has filed appropriate petitions before the Hon’ble TDSAT for quashing these demands. which have not been rolled out. ii. i.41 Mn) are secured by way of first charge / assignment ranking pari-passu interse the lenders.05 Mn) is secured by hypothecation of Vehicles against which the loans have been taken. Contingent Liabilities a) Due to the DoT’s alleged contention that the acquisition of erstwhile Spice Communications Limited and its subsequent amalgamation with the company violates certain license conditions/ guidelines.

2011 mainly relates to the demands raised by the VAT/Sales Tax authorities at few states on SIM cards. prepaid cards and recharge coupons. However. 2010 20. 2011 mainly relates to the following matters: • • • Interpretation issues arising out of Rule 6(3) of the Cenvat Credit Rules. 2010 10. miscellaneous disputed matters with DoT and other consumer court cases. Sales Tax: The Sales Tax demands as at 31st March. airtime revenue etc.72 6.306.412. from the holder at the original issue price of ` 20.78 Income Tax matters not acknowledged as debts (see i below) Sales Tax matters not acknowledged as debts (see ii below) Service Tax matters not acknowledged as debts (see iii below) Entry Tax and Custom matters not acknowledged as debts (see iv below) Other claims not acknowledged as debts (see v below) i.09 3. commitments under EPCG.21 2. Denial of Cenvat Credit related to Towers & Shelters Disallowance of Cenvat Credit on input services viewed as not related to output service. The Company has a contingent obligation to buy compulsory convertible preference shares issued by ABTL. 2011 765. 2011 20. ii.182.124.581.Annual Report 2010-11 c) Other Matters not provided for: ` Mn Particulars As on March 31.306. iii.35 Estimated amount of contracts (net of advance) 5. d) Estimated amount of contracts (net of advance) remaining to be executed on capital account and not provided for: ` Mn Particulars As on March 31. Service Tax: The service tax demands as at 31st March. Bank guarantees given 49 .10 115.01 3.906. v.50 Mn. on which the Company has already paid service tax.91 2.84 2. iv.305. 2011 16. Entry Tax: In certain states entry tax is being demanded on receipt of material from outside the state.982. 2010 727. non deduction of tax on roaming charges etc.02 As on March 31. Details of guarantees given: ` Mn Particulars As on March 31.22 3. 2004. Other claims not acknowledged as debts: Mainly include matters appealed by BSNL in Hon’ble Supreme Court.464. Income Tax matters: The appeals which are pending before various Appellate Authorities includes mainly the appeals filed by the company against the demands raised by various income tax authorities on account of non deduction of tax on discount allowed to prepaid distributors.246.72 353. the Company has challenged the constitutional validity of the levy.23 As on March 31.11 As on March 31.

10 3.86 191.10 93. Expenditure in Foreign Currency (on remittance basis): ` Mn Particulars For the year ended March 31. 2010 20. On accrual basis ` 247.79 Mn for Current year and ` 786.706.02 Salary including perquisites Contribution to provident and other fund Performance incentive Total The above remuneration excludes gratuity & leave encashment amounts as the same is been based on actuarial valuation. 2011 811. Managerial Remuneration under section 198 of the Companies Act.86 For the year ended March 31.86 3. 50 .69 - International roaming services* Termination / carriage services # * On accrual basis ` 946.27 4.50 3.23 ` Mn Particulars For the year ended March 31. 2010 38. 2010 406.980.97 Mn for Current year and ` 16.24 For the year ended March 31. in misc expenses) Total Remuneration 8. 2011 35.IDEA CELLULAR LIMITED 7.18 27. Earning in Foreign Currency (on receipt basis): For the year ended March 31. in legal and professional charges) Out of pocket expenses (incl.76 18.84 14.67 301.61 For the year ended March 31.58 # Interest Travel Professional and consultancy fees International roaming services Termination / carriage charges Others 10.45 3.15 4.16 76. 2011 45.91 224.71 1. 2010 712.23 143.68 0.40 61.84 Statutory audit fees Certification and other matters (incl. 1956 paid or payable during the financial year is as under: ` Mn Particulars For the year ended March 31.82 Mn for Previous year. 2011 947. 11. 2010 30.65 1.252. 2011 13.66 34. CIF value of imports: ` Mn Particulars For the year ended March 31.21 Mn for Previous year.49 39. Auditors’ Remuneration (excluding of service tax): ` Mn Particulars For the year ended March 31.15 0.07 Capital Goods (including spares) 9.09 For the year ended March 31.

140.725 177.913 57.247 8.793 17.881 7.431 1.853 250 1.300 24.117 1.202.251 8.067 240.044 61.638.023 6.300 724.IP – Growth Birla Sun Life Cash Manager .IP – Growth DWS Credit Opportunities Cash Fund .074 1.933 398.074 1.007 17.IP – Growth Birla Sun Life Short Term Floater Institutional Growth Birla Sun Life Short Term Fund .604 194.WP .Savings Plan – Growth HDFC Cash Management Fund .612 135.571 64.949 625.044 61.760 3.222.017.282 607.923 398.497 552.504 3.047.954 50 50 23.273 1.Plan C .045 494.897 50.IP – Growth HDFC Cash Management Fund .952 17.Growth IDFC Cash Fund .297 5.LT – Growth Kotak Liquid .554.Growth (Re-Launched) Kotak Flexi Debt Fund .067 240.533 3.002 11.571 64.504 3.438 932 17.Super IP – Growth Canara Robeco Treasury Advantage Fund .793 17.202.707 430 250 18.193 51.683 1.435.718 627.284 17.944 18.Inst Plus – Growth ICICI Prudential Liquid .022 74.IP – Growth DWS Insta Cash Plus Fund .232 7.105 4.655 8.Annual Report 2010-11 12.628 9.Inst Premium Plan – Growth 51 .451 494.109 494.299.STF .IP – Growth Birla Sun Life Short Term Opportunities Fund .180 11.655 8.838 50 50 23.244 96.637 94.594 48.225 1.Plan C .IP – Growth Canara Robeco Liquid .295 12.111.023 75.755 1.Sup Prem .244 1.101 6.045 1.562 2.691 21.096 12.117 1.LTP .496.139 4.805 250 29.Treasury Plan Plan C . the Company has purchased and sold following units: Qty in ‘000 Units Purchased During the year ended March 31.028 1.676 1.590 50 50 100 810 7.040 4.500 2.109 988.892 26.000 495 975 8.139 954.WP – Growth HDFC Liquid Fund .718 627.913 57.637 94.675 9.IP Growth Birla Sun Life Floating Rate Short Term Plan – Growth Birla Sun Life Floating Rate Short Term Plan .Plan D – Growth ICICI Prudential Liquid .IP – Growth Birla Sun Life Savings Fund .30D – Growth DWS Insta Cash Plus Fund .440 933 17.Plan C – Growth IDFC Money Manager .273 1.005 971.658 250 21.451 494.744 383.005 971.739 250 29.193 51.511 2.952 6.725 177.881 7.696 430 250 18.238 1.758 14.099.169 6.041 20.562 1.000 17.Inst Plan – Growth Baroda Pioneer Treasury Advantage Fund .996 724.656 531 15.Growth Birla Sun Life Floating Rate Fund .934 1.560 50 50 250 251 2.030 4.992 48.Treasury Advantage .247 23.594 2.527 1.933 24.Super IP – Growth IDFC Money Manager .Treasury Plan .IP – Growth Kotak Floater .683 1.888 135.892 26.808 4.622 1.099.232 7.Plan B – Growth IDFC Money Manager .645.IP – Growth Birla Sun Life Cash Manager .299 5.Institutional Premium Plan .Super IP .104 97.853 250 1.282 607.579.236 17.638. 2011 During the year ended March 31.Super IP – Growth DWS Ultra Short-Term Fund .086 132.370 1.949 625.300 15.560 50 50 250 250 2.428 6.086 132.Premium Plus Plan – Growth HDFC Quarterly Interval Fund .Whole Sale Plan .342.016 2.046 112.579.401 107.100 12. Details of Investments a) During the year.001 495 975 253 8. 2010 Qty in Qty in Qty in ` in ` in ` in ` in Mn ‘000 Mn ‘000 Mn ‘000 Mn Purchase Units Sale Units Purchase Units Sale Value Sold Value Purchased Value Sold Value 1.798 536 3.180 11.222.371 116.933 24.891 1.Growth HDFC F R I F .Super IP – Growth ICICI Prudential Ultra Short Term Plan .533 3.022 12.953 6.358 138.995 50.794.638 1.295 12.199 383.713 552.360 11.950 17.971 1.Premium Plan – Growth HDFC Liquid Fund .IP – Growth Birla Sun Life Cash Plus .755 1.058 4.786 639.Treasury Plan .IP – Growth Birla Sun Life Floating Rate Fund Short term .338.358 138.Growth DSP Blackrock Liquidity Fund .670 1.840 Scheme Axis Liquid Fund – Growth Axis Treasury Advantage Fund – Growth Baroda Pioneer Liquid Fund .Premium – Growth ICICI Prudential FRF .Growth ICICI Prudential Flexible Income Plan .554.786 639.041 50 50 101 810 7.897 24.793 958.252 23.045 107.

278 5.246 19.000 507 251 5.193 1.267 219.790 1.429 1.Cash Plan SBI Magnum Insta Cash .365 14.187 Units Sold 1.140 4.000 1.360 As at March 31.048 1.199 8.914 206.549.093 588.373 750 2.308 5.Cash Plan – Growth Reliance Liquid Fund .365 14.671 12.261 59.046 2.Super IP – Growth UTI Fixed Income Interval Fund .649 During the year ended March 31.028.491 7.281 2.757 88.284 2.441 341. 2011 Qty in Qty in ` in ` in ‘000 Mn ‘000 Mn Units Purchased Kotak Liquid .181 59.913 3.IP – Growth HDFC Quarterly Interval Fund .Institutional Premium Plan – Growth Birla Sun Life Floating Rate Short Term Plan .119 262.459 309 4.IP – Growth Grand Total b) 241 3.695 18.190 8.895 11.Institutional Growth Plan UTI Floating Rate Fund .651 120.033 1.IP – Growth Birla Sun Life Short Term Fund .370 750 2.IP – Growth Birla Sun Life Savings Fund .629 531 250 1.IP – Growth UTI Liquid Fund .Plan C .895 11.TP .659 21.249 804.IP – Growth Templeton India TMA .197.735 170.761 1.260 Units Sold 1.028 93.Cash Plan .393 2.085 87.536 354.177 6.908 2.488 7.568 80.505 50.941 50.050 4.154.985 494.103 410.245 30.914 206.078 299.649 14.554 804.140 4.IP – Growth UTI Money Market – Growth UTI Money Market .393 2.093 588.085 75.Super IP – Growth SBI SHDF .763 - 296.249 75.675 12.103 410.IP – Growth Religare Liquid Fund .Ultra Short Term .941 50.016 2. 2010 Qty in ‘000 ` in Mn Closing Units Closing Value 16.701 14.Whole Sale Plan – Growth ICICI Prudential Ultra Short Term Plan .Quarterly Interval Plan V .Plan C .000 17.Series II Quarterly Interval Plan V .Fixed Income Interval Fund .993 15.913 3.IP – Growth Reliance Liquidity Fund – Growth Reliance Medium Term Fund – Growth Reliance Money Manager Fund .181 59.260 4.568 80.735 170.833 250 6.649 Purchase Value 21.Cash Plan – Growth SBI Premier Liquid Fund .IP – Growth UTI Treasury Advantage Fund .005 911.767 341.793 87. 2011 the closing balance in mutual fund units are as follows: Particulars As at March 31.767 341.266 - Scheme Sale Units Value Purchased 21.IP – Growth SBI Magnum Insta Cash .801 1.037 2.Monthly Interval Series I Growth UTI Fixed Income Interval Fund .305 5.697 18.608 30.249 50.550 515.061 525. 2010 Qty in Qty in ` in ` in ‘000 Mn ‘000 Mn Purchase Value 22 360 1.775 918.175 6.216 48.IPP – Growth Kotak Quarterly Interval Plan Series 2 – Growth Kotak Quarterly Interval Plan Series 6 – Growth LIC MF Liquid Fund – Growth Reliance Liquid Fund .072 8.502 50.Sup Prem – Growth IDFC Cash Fund .530 1.863 500 1.IP – Growth SBI Premier Liquid Fund .748 1.545 610.246 19.119 262.184 Birla Sun Life Cash Plus .498.000 5.763 Sale Value 22 360 257 251 17.995 96.775 918.460 16.463 16.STP .659 87.260 4.IP – Growth Kotak Liquid .Super IP – Growth Kotak Quarterly Interval Plan Series 6 – Growth UTI.052 250 5.000 500 11.005 1.267 219.Series II .461 309 4.284 5.089 4.015 2.Institutional Growth Plan Total 52 .562 24.002 5.962 As at 31st March.024 1.000 16.Super IP – Growth Religare Ultra Short Term Fund .005 241 3.441 341.532 1.154.536 354.069 8.007 1.806 8.650 710 9.974 16. 2011 Qty in ‘000 ` in Mn Closing Units Closing Value 551.908 2.651 120.711 14.649 14.429 1.863 1.IDEA CELLULAR LIMITED During the year ended March 31.014 1.

30 Diluted earnings per share (in `) . 2011 March 31.500 6.449 22.114 24.445. 2010 27.91 9. of the Company.500 2.56 3.As reported 2.55 3.46 b) The amount of interest paid by the buyer in terms of section 16 of the Act.311 2.162.34 Mn (Previous year ` 282.70 Basic earnings per share (in `) . 2011.Annual Report 2010-11 13.433. The options will vest in 4 equal annual installments after one year of the grant. Had the compensation cost for the Company’s stock based compensation plan been determined as per fair value approach (calculated using Black & Scholes Option Pricing Model).84 Personnel expenditure includes ` 150.34 282.524.39 . 2011 March 31.08 567. Nil Nil 14. As per the requirement of Section 22 of The Micro. During the year. The compensation costs of stock options granted to employees have been accounted by the Company using the intrinsic value method.each. Each option when exercised would be converted into one equity share of ` 10/.119.687 3.91 Mn) being the amortisation of intrinsic value for the year ending 31st March. Nil Nil c) The amount of the payment made to the supplier beyond the appointed day during the accounting year Nil Nil d) The amounts of interest accrued and remaining unpaid at the end of financial year Nil Nil e) The amount of interest due and payable for the period of delay in making payment (which have been paid but beyond the due date during the year) but without adding the interest specified under this Act.91 Less: Total stock-based employee compensation expense determined under fair value base method 380.119.48 3.918.29 53 . The maximum period of exercise is 5 years from the date of vesting.500 options have been granted as ‘Tranche IV’ to the eligible employees as on 24th January 2011. Small and Medium Enterprises Development Act. of Stock Options March 31.750 1.85 Mn) and earnings per share as reported would be lower as indicated below: ` Mn Particulars For the year ended For the year ended March 31.449 47.251.38 .713 589.952. 32.49 3.As reported 2. the Company’s net income would be lower by ` 229. Nil Nil The total of (i) & (ii) 32.693.23 10.925 27.74 Mn (Previous year ` 284.536.91 9.Adjusted 2.76 Adjusted net profit 8.46 (ii) The interest due on above.97 10.Adjusted 2.65 44. 2010 Net profit after tax but before exceptional items 8.55 Add: Total stock-based employee compensation expense determined under intrinsic value base method 150. under ESOS 2006. 2. Summary of Stock Options Particulars Options outstanding at beginning of the year Options granted during the year Options forfeited/lapsed during the year Options exercised during the year Options outstanding at end of the year Weighted average exercise price of outstanding options (`) No.216. 2006 following information are disclosed: ` Mn Particulars For the year ended For the year ended March 31. 2011 March 31. 2010 a) (i) The principal amount remaining unpaid to any supplier at the end of accounting year included in sundry creditors. fully paid up.524.516.

06 0.54 Tranche IV Nil 6 yrs 6months 8.54 Tranche II Nil 5 yrs 9 months 7.45 On the date of re-pricing Tranche I Nil 4 yrs 6 months 7.989.228.03 13.07 722.216.727.75 0.94 327. 2010 17.03 0.91 0.20 0.31 0.914.00 On the date of grant Tranche II Nil 7.78 40.36 54.36 54. ^ Includes USD 68 Mn(Previous year USD 18 Mn) fully hedged for principal repayments only.00 49.727.53 128.IDEA CELLULAR LIMITED The fair value of each option is estimated on the date of grant / re-pricing based on the following assumptions: Particulars Tranche I Dividend yield (%) Expected life Risk free interest rate (%) Volatility (%) Nil 7. 2011 As at March 31.14 50.89 15.67 43.10 As at March 31.47 23.25 0. b) Not hedged by a derivative instrument or otherwise: Amount in Mn Particulars Foreign Currency Loan: Foreign currency loan in USD Vendor finance in USD The Equivalent INR of Foreign Currency Loan Sundry Creditors: Sundry creditors in USD Interest accrued but not due on foreign currency loans in USD Sundry creditors in EURO The Equivalent INR of Sundry Creditors & Interest Accrued in Foreign Currency Sundry Debtors: Sundry debtors in USD Sundry debtors in EURO The Equivalent INR of Sundry Debtors in Foreign Currency 8. 2011 As at March 31.79 17.64 0. Details of foreign currency exposures: a) Hedged by a derivative instrument: Amount in Mn Particulars Foreign Currency Loan* Foreign currency loan in USD^ Vendor finance in USD Foreign currency loan in JPY Sundry Creditors Sundry creditors in USD Interest accrued but not due on foreign currency loans in USD The Equivalent INR of Foreign Currency Loans & Creditors *Fully hedged for interest and principal repayments.80 Tranche III Nil 6 yrs 6 months 7. 2010 54 .01 4.50 45.8.36 54.02 5.86 17.222.32 93.00 24.54 6 yrs 6 months 6 yrs 6 months 15.04 198.31 18.04 .73 48.12 10.09 11.68 296.16 375.73 As at March 31.741.

62 255.00% 7. 2010 55 .27 34.81 (186.55 186.90 (12.51 22.64) (0.82 51.68 (17. Particulars No.83 (39.78 110.51 8.25 4.36 178.57 178.21 (9.69 14.34) 28.55 9.64) 26.81) 255.64 255.75) 4.30 22.73 (110.28 144. ` Mn Sr.21 14.40 365.60 124.00% For the year ended For the year ended March 31.78 110.83 110.36 132.90 55.55 186.64) 0.82 (9.27) 44.50% 6.57) 44.35 144.00 (9.00% 7.79 39.50% 7.76 51.73) (49.75) 49.73 9.28) 39.41 85. Employee Benefits: a) Defined Benefit Plan: The Company provides for its liability towards gratuity as per the actuarial valuation.40) (4.Plan Assets Total (gain)/loss for the year Actuarial (gain)/loss recognized in the year 5 The amounts to be recognised in the Balance Sheet Present value of obligations as at the end of year Fair value of plan assets as at the end of the year Funded status Net asset/(liability) recognized in Balance Sheet 6 Expenses recognised in statement of Profit & Loss Current service cost Interest cost Expected return on plan assets Net actuarial (gain)/loss recognised in the year Expenses recognised in statement of Profit & Loss 7 Investment details of Plan Assets (% allocation) Insurer managed funds* 100% 100% 55.51 144.34 16.10 365.81 17.78 12. The present value of the accrued gratuity minus fund value is provided in the books of accounts.Obligation Actuarial (gain)/loss for the year . 2011 March 31.30 (17.83 44. 1 Assumptions Discount rate Expected return on plan assets Salary Escalation 2 Table showing changes in present value of obligations Present value of obligations as at beginning of the year Interest cost Current service cost Benefits paid Liabilities assumed on acquisition Actuarial (gain)/loss on obligations Present value of obligations as at end of the year 3 Table showing changes in the fair value of plan assets Fair value of plan assets at beginning of the year Expected return on plan assets Contributions Asset acquired on acquisition Benefits paid Actuarial gain/(loss) on plan assets Fair value of plan assets at the end of the year Funded status Actual return on plan assets 4 Actuarial Gain/Loss recognised Actuarial gain/(loss) for the year .Annual Report 2010-11 16.50% 7.35 39.

550.24 8.751.353.95 268.58 19.842.77 414. 2008 For the year ended March 31.006. 2007 b) * The funds are managed by LIC and LIC does not provide breakup of plan assets by investment type.90 9.99 192.55 (8.280.57 17.751. 2011 March 31.92 1.14) 14.487. such as supply and demand in the employment market.55 (186.97 61. 2011 March 31. 2.543.93 41. Defined Contribution Plan: During the year.287. 2010 Employers’ Contribution to Provident & Pension Fund Employers’ Contribution to Superannuation Fund 211.97 153.85 20.97 11.063.490.889.54 160.35 9.066.IDEA CELLULAR LIMITED ` Mn Sr. the Company has recognised the following amounts in the Profit and Loss Account: ` Mn Particulars For the year ended For the year ended March 31.490.602.29) (21.973.490. 2010 For the year ended March 31.07 5.70 32.44 154.490.82) (57. Experience adjustments have been disclosed for the year ended 31st March 2008 onwards for which information is available on Accounting Standard 15 (Revised 2005) “Employee Benefits”.82) (57.730. considered in actuarial valuation. Particulars No.73) 57.467. 8 Experience Adjustments Defined benefit obligation Plan assets Surplus/ (deficit) Experience adjustments on plan liabilities Experience adjustments on plan assets 365.76 34.015.870.37 2.68 164. 2009 For the year ended March 31.50 19.287.812.28 132.59) 81.76 24.61 286.51 144.08 154.80 (20.69 124.92 80.445.33 Elimination Total (21.939.475.90 182. The estimates of future salary increases.103.82) (57.02 0.90 24. Primary Segment: The Company operates in two business segments: a) Mobility Services: providing GSM based mobile and related telephony services.56 2.29 192.33 (4.36 178.126. Secondary Segment: The Company caters only to the needs of Indian market representing a singular economic environment with similar risks and rewards and hence there are no reportable geographical segments.21 617. Segment Reporting 1.401.82) - 153.11 84. Primary Business Information (Business Segments) for the year ended 31st March.29 93.35 40. seniority. take account of inflation.10 56 .05 19. b) Long Distance (LD): providing national and international long distance services.78 (110.842.575. 2011: ` Mn Particulars Revenue External Revenue Inter-segment Revenue Total Revenue Segment Result Interest & Financing Charges (Net) Profit before Tax Provision for Tax (Net) Profit after Tax Other Information Segment Assets Unallocated Corporate Assets Total Assets Segment Liabilities Unallocated Corporate Liabilities Total Liabilities Capital Expenditure Depreciation & Amortisation Business Segments Mobility LD 153.29) (57. promotion and other relevant factors.583.15 162.61 34.52 93.97 244.33 255.81) 25.015.99 268.889.36 2.066.17) For the For the year ended year ended March 31.

063. Akshaya Moondra. Sanjeev Aga. Limited (SSS & Co) Aditya Birla Telecom Limited (ABTL) Idea Cellular Services Limited (ICSL) Idea Cellular Infrastructure Services Limited (ICISL) Idea Cellular Towers Infrastructure Limited (ICTIL) Idea Mobile Commerce Services Limited (IMCSL) (Formerly known as Carlos Towers Limited) Joint Venture Indus Towers Limited (ITL) Spice Communications Limited (SCL) ( Upto February 28th.40) 119.97 180.694.34 30.79 68.69 103.55 Business Segments Mobility LD Elimination Total 57 . MD Mr.565.987.20 346.272.544.987.53 30. Limited (Birla TMT) Subsidiaries Swinder Singh Satara & Co.71 11.603.32) (26.132.782.97 118.146.316.66 13. related parties of the Company are disclosed below: A.77 12.700.32 1. Related Party Transactions As per Accounting Standard .96 220.987.66 119. CFO 180.06 2.603.404.02 (12. 2010: ` Mn Particulars Revenue External Revenue Inter-segment Revenue Total Revenue Segment Result Interest & Financing Charges (Net) Other Income Profit before Tax Provision for Tax (Net) Profit after Tax Other Information Segment Assets Unallocated Corporate Assets Total Assets Segment Liabilities Unallocated Corporate Liabilities Total Liabilities Capital Expenditure Depreciation & Amortisation 18.804.274.687. List of Related Parties: Promoters Hindalco Industries Limited (Hindalco) Grasim Industries Limited (Grasim) Aditya Birla Nuvo Limited (ABNL) Birla TMT Holdings Pvt.804.32) 170.908.85 11.85 3.266.511.08 11.21 (26. 2010) Entities having significant Influence TMI Mauritius Ltd TMI India Ltd (TMI) Axiata Group Berhad Key Management Personnel (KMP) Mr.32) (26.148.150.332.53 118.274.18 on “Related Party Disclosures”.949.63 119.443.15 11.37 2.949.442.40 15.95 533.73 49.28 105.19 15.987.97 118.332.40) (12.48 5.35 365.76 16.Annual Report 2010-11 Primary Business Information (Business Segments) for the year ended 31st March.08 16.150.536.58 8.142.32) (26.316.77 10.

54) 556.656.03 (336.72) (1.10 (2.251.33) (9. 2010) 58 .10 (-) 562.36) 22.03 (72.74) (15.36 (12.97 (341.772.50) Rent paid 2.537.44) 50.64 (217.88) 5.23) 71.42 (12.IDEA CELLULAR LIMITED B.15) (0.34) Purchase of fixed assets (0.48 (595.47 (1.17) Unsecured loan/ICD repaid 115.74 (-) Advances repaid by 575.42 (4.651.08) 968.96) (710.66 (0.57 (0.31 (7.40) 0.33 (261.37 (0.56 (1.28 (1.321.70 (2.40 (5.89 (7.85) 0.70) Issue of shares *(1.54 (823.54) 15.23) 432.20 (-) (25.689.00 (0.06 (41.90 (20.75) Expense incurred by Company on behalf of 0.288.36) 6.22 (5.79) (0.75) 0.76) Sale of service/goods 21.951.03 (-) Investments Purchase of service/goods - 13.34) 427.78 (330.15) 7.43 (0.746.37) Security deposit given 375.63) 0.79) 29.23) Unsecured loans/ICD repaid by 5.50 (-) Sale of fixed assets 0.41 (0.75) (710.54 (996.35 (33.09) (456.49) Pass through and reimbursement of expenses incurred on behalf of Pass through and reimbursement of expenses incurred on Company’s behalf by Advances given 5.65) Unsecured loan/ICD taken 29.26 - 535.91 (410.57) 0.36) 1. IMCSL TMI KMP Remuneration 90.50 (330.13) (10.37 (2.497.53) Unsecured loans/ICD given (5.85) 0.01) 253.51) * Shares issued pursuant to amalgamation of Spice Communications Limited (Figures in bracket are for the year ended March 31.56) 0.46) 3.20 (-) Expenses incurred on Company’s behalf by 0.23) Interest on unsecured loans given 63.19) 3.64 (-) 207.98) (604.01) (210.50) (15. Transactions with Related Parties: ` Mn Particulars Promoters Hindalco Grasim Aditya Industries Industries Birla Nuvo Ltd Ltd Ltd Joint Venture Indus Spice Towers CommuniLtd cations Ltd ICSL ICISL Nature of Relationship Subsidiaries ICTIL ABTL SSS & Co.84) 11.

877.20 (-) Joint Venture Indus Spice Towers CommuniLtd cations Ltd 2.10 3.34 (7. Ltd (SSS & Co) Idea Mobile Commerce Services Limited (IMCSL) Joint Venture: Indus Towers Limited 19.685.82) 2. IMCSL TMI KMP D.86 4.952.68 - 59 .16) (44.98 (4.025.34 0.651.14) 3.54 (20.985.20) 3.37) Later than one year but not later than five years 41. 2010) 7.144.122. 2010) For the current year.31 (0.720.88) 45.69) (5.56 15.10 (-) 197.210.00 (6.20 3.20 5.651.87) ICSL ICISL Nature of Relationship Subsidiaries ICTIL ABTL SSS & Co.73 (1. 2011: ` Mn Particulars Promoters Hindalco Grasim Aditya Industries Industries Birla Nuvo Ltd Ltd Ltd Deposit given Unsecured loan/advances given Remuneration payable Accounts receivable Accounts payable (Figures in bracket are as of March 31.20 5.88 88.755.457.251.12 (406.75 197. The future minimum lease payments in respect of the above are as follows: ` Mn Particulars Minimum lease payments (Figures in bracket are as of March 31.46 243.457.88 (64. 2010 Maximum Outstanding during the year 2009-10 Name of the Party Subsidiary: Aditya Birla Telecom Limited (ABTL) Idea Cellular Infrastructure Services Limited (ICISL) Idea Cellular Towers Infrastructure Limited (ICTIL) Swinder Singh Satara & Co. total lease payments amounting to ` 22.52 84.685.Annual Report 2010-11 C.25 3. Outstanding as on March 31. switches and cell sites for periods ranging from 36 months to 240 months. 2011 Maximum Outstanding during the year 2010-11 Outstanding as at March 31. Operating Lease: As a Lessee The Company has entered into non-cancellable operating leases for offices.651.813.91) 5.38 (0.51) 31.20 21.75 (-) 15. Disclosures of amounts at the year end and the maximum amount of loans & advances outstanding during the year: ` Mn Outstanding as at March 31. Not later than one year 12.57 Mn) are included in the rental expenditure head.26 45.918.48) 12.22 0.31 (1.876.73) 0.29) Later than five years 31.65 (13.42 (20.117.30) 0.26 (3.30 Mn (Previous year ` 12.68 710.75 191.22 (88.13) 8.86) 26.290.

62 463.770. Correspondingly.702.72 432. Basic & Diluted Earnings Per Share: Particulars Nominal value of Equity Shares (`) Profit after Tax (` Mn) Profit attributable to equity shareholders (` Mn) Weighted average number of equity shares outstanding during the year Basic Earnings Per Share (`) Dilutive effect on weighted average number of equityshares outstanding during the year Weighted average number of diluted equity shares Diluted Earnings Per Share (`) 22.256.309.38 938.36) Later than five years 0.67 4.38 As at March 31. the Company has deferred tax liability of ` 8.97 3.55 3.59 (88.55 For the year ended March 31.870. 21.53 (5.38 Not later than one year 39.39 (28. 2011 10/8.952 3. The future minimum lease receivables in respect of the above are as follows: ` Mn Particulars Minimum lease receivables (Figures in bracket are as of March 31.98 67.341.55 10. As at 31st March. accumulated depreciation and depreciation expense of the assets given on IRU basis is not separately identifiable and hence not disclosed.796 3.14 62.445.77 484.74 5. 2010) 20.445. 2011 As at March 31.11 4.56 8.640.220.676 3.85 Mn) in respect of such leases has been recognized in the profit and loss account during the current year.59 2. 2010 For the year ended March 31.18 Mn towards the supply of fixed assets during the year stands outstanding and will be paid during financial year 2011-12.906.085.640.45 Mn (Previous year ` 17. The gross block.318.770. 2011.115.59 2.856.02 2.103 2. Rental income of ` 56.307 2.36 7.276 3.496.230.74 Mn and deferred tax asset of ` 5. such assets are recorded at fair value of these assets at the time of receipt and depreciated on the stated useful life applicable to similar assets of the company. Such fixed assets received have been accounted for as a finance lease.39 7.989.536.36 8.195.108.61 6.59 Mn as under: ` Mn Particulars Deferred Tax Liability: Depreciation of fixed assets Amortisation of entry & licence fee (Net) Total Deferred Tax Liability Deferred Tax Asset: Provision for doubtful debts Expenses allowable on payment basis Brought forward losses Others Total Deferred Tax Asset Net Deferred Tax Liability 773.281. During the financial year 2007-08. 2010 10/10.599.78 5.86) Later than one year but not later than five years 67.00) 60 .15 652. an amount of ` 1.536. company had entered into a composite IT outsourcing agreement wherein fixed assets and services related to IT has been supplied by the vendor. 2011.IDEA CELLULAR LIMITED Operating Lease: As a Lessor The Company has leased under operating lease arrangements certain Optical Fibre Cables (OFC) on Indefeasible Rights of Use (“IRU”) basis.300. Deferred Tax: As of March 31.97 8.

70 (16.50) 439. 2010 470. Figures for the current year are not comparable with that of the previous year due to merger of Spice Communications Limited during the previous year. The movement in the Asset Retirement Obligation is set out as follows: ` Mn Particulars Opening Balance Additional Provision Utilisation Closing Balance For the year ended March 31. 2011 455.20 For the year ended March 31.19) 455. For and on behalf of the Board Gian Prakash Gupta Director Akshaya Moondra Chief Financial Officer Place: Mumbai Date: July 29.89 (15.70 24. 2011 Arun Thiagarajan Director Pankaj Kapdeo Company Secretary Himanshu Kapania Managing Director 61 .Annual Report 2010-11 23. Previous year's figures have been regrouped / rearranged wherever necessary to conform to the current year grouping.

46) 1.79 3.65) 172.868.34) (2.45 (474.55) (652. 2011 A) Cash Flow from Operating Activities Net Profit after Tax Adjustments For Depreciation Amortisation of Intangible Assets Surplus on Prepayment of Loan Interest and Financing Charges Profit on Sale of Current Investment Provision for Bad & Doubtful Debts/Advances Employee Stock Option Cost Provision for Gratuity.858.708.845.502.823.IDEA CELLULAR LIMITED Cash Flow Statement for the year ended March 31.851.179.15 3.34 218.666.229.73) (7.91 73.271.54 (448.318.71) 472.94) 5.360.444.53 613.35) 10.536.006.77 (744.45 29. 2010 62 .77) 1.17) 10.72 1.95 2.87 18.19) 30.83 (33.99 (20.41 150.90 (316.55 For the year ended March 31.959.144. 2011 ` Mn For the year ended March 31.97 10.558.04 (148.20 13.07 1.208.57 15.20) 83.70 2.09 (757.25) 45.50) 2.00 (2.843.65) 19.716.36 (878.422.23 (2.664.201.243.00) 21.50 (76.98 (889.69 9.89 282.445.42) (80.23 31.35 17.64 6.340.30 23. Leave Encashment Provision for Deferred Tax Provision for Current Tax (Net of MAT Credit entitlement) Liability no longer required written back Interest Income (Profit) / Loss on sale of Fixed Assets / Assets Discarded Operating Profit Before Working Capital Changes Adjustments for changes in Working Capital (Increase)/Decrease in Sundry Debtors (Increase)/Decrease in Inventories (Increase)/Decrease in Other Current Assets (Increase)/Decrease in Loans and Advances Increase /(Decrease) in Current Liabilities Cash Generated from Operations Tax Paid (including FBT & TDS) Net Cash from Operating Activities B) Cash Flow from Investing Activities Purchase of Fixed Assets & Intangible Assets (including CWIP) Proceeds from Sale of Fixed Assets Additional Investment in Idea Mobile Commerce Services Limited Sale/ (Purchase) of Other Investments Interest Received Net Cash from / (used in) Investing Activities (0.70) (55.425.86 1.150.03) 444.651.03 47.00 8.500.006.90) 319.92 (7.148.

2010 The above Cash Flow Statement has been prepared under the indirect method as set out in Accounting Standard 3 on Cash Flow Statement.731.27 (13.515.10 2.804.41 4.40 2.99) (25.18 4. 1. Cash and Cash Equivalent includes Cash and Cheques on Hand Balances with Scheduled Banks .77) 23.02 (7.Annual Report 2010-11 Cash Flow Statement for the year ended March 31.00) (7.507.41 For the year ended March 31.515.305.804. 2011 C) Cash Flow from Financing Activities Proceeds from Issue of Share Capital Proceeds from Long Term Borrowings Repayment of Long Term Borrowings Proceeds from Short Term Loan Repayment of Short Term Loan Interest Paid Net Cash from / (used in) Financing Activities Net Increase / (Decrease) in Cash and Cash Equivalent Cash and Cash Equivalent at the Beginning Add: Cash and Cash Equivalents Acquired on Merger of Telecom Business of ABTL Add: Cash and Cash Equivalents Acquired on Merger of Spice Communications Ltd.18 1.513.00) (6. 2011 ` Mn For the year ended March 31.923.13 138. 2011 1.000.in Current Accounts .710. Previous year’s figures have been rearranged/regrouped wherever necessary.49 134.199.49 266.91) 28.35 23.35 2.in Deposit Accounts 338. 2011 Gian Prakash Gupta Director Arun Thiagarajan Director Himanshu Kapania Managing Director Akshaya Moondra Chief Financial Officer Pankaj Kapdeo Company Secretary 63 . Joshi Partner Membership No.36 37. 3.74) 33.31 1.: 38019 Place: Mumbai Date: July 29.696. In terms of our report attached For Deloitte Haskins & Sells Chartered Accountants For and on behalf of the Board Hemant M.14) (15.919.68 4.29 5.804.157.148.41 136.040. Cash and Cash Equivalent at the end Notes to Cash flow Statement for the Year ended 31st March.959.94 2.794.444.70) (26.33 (11.41 3.924.413.

3 0 9 7 3 6 1 0 3 1 1 Date II Public Issue N Bonus Issue N III Total Liabilities 2 3 1 7 5 1 7 7 0 Source of Funds Paid up Capital 3 7 3 7 0 6 3 0 2 0 7 3 2 9 0 0 Secured Loans Application of Funds Net Fixed Assets 2 2 2 7 1 2 2 N IV Turnover 1 + 5 3 8 8 9 9 0 9 6 7 3 0 2 1 0 Dividend Rate . (ITC Code) Product Description For and on behalf of the Board Gian Prakash Gupta Director Akshaya Moondra Chief Financial Officer Place: Mumbai Date: July 29. . Expenditure Reserves and Surplus 8 2 9 7 7 9 9 7 6 4 2 2 1 1 0 0 Unsecured Loans I L Total Assets 2 3 1 7 5 1 7 7 0 I L Month Year Rights Issue N Private Placement 3 4 3 4 0 I L State Code 0 4 Balance Sheet Date Capital raised during the year (Amount in ` Thousands) Position of Mobilisation and Deployment of Fund (Amount in ` Thousands) (Please tick appropriate box + for profit.IDEA CELLULAR LIMITED Balance Sheet Abstract and Company’s General Business Profile I Registration Details Registration No. 2 V Items Code No. 2011 Arun Thiagarajan Director Pankaj Kapdeo Company Secretary Himanshu Kapania Managing Director T E N O Generic names of the three principal products/Services of Company (as per monetary terms) 64 . T L E 5 6 A C P O P M L I S C E A R 0 B V 0 L I E C E S Profit/Loss before tax 5 3 I 6 3 L Total Expenditure 1 + 4 4 8 2 8 6 4 7 4 6 5 0 9 7 0 Profit/Loss after tax 7 0 5 5 0 0 Net Current Assets/(Liability) Accumulated Losses Performance of Company (Amount in ` Thousands) Investments 2 5 7 2 N 8 I 0 L 7 0 Misc.for loss) Earnings per share in Rs.

We did not audit the financial statements of Indus Towers Limited. of the state of affairs of the Group as at March 31. Joshi Partner Membership No. Our responsibility is to express an opinion on these Consolidated Financial Statements based on our audit.01 million for the year ended on that date as considered in the consolidated financial statements. An audit also includes assessing the accounting principles used and the significant estimates made by the Management. the Consolidated Profit and Loss Account and the Consolidated Cash Flow Statement of the Group for the year ended on that date. 3. Based on our audit. These financial statements have been audited by another auditor whose report have been furnished to us and our opinion in so far as it relates to the amounts included in respect of Indus Towers Limited is based solely on the report of an another auditor. 6. 117 366W) Hemant M.891. Those Standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatements.36 million as at March 31.The Appellate Bench of Hon’ble High Court of Delhi through interim order has directed DOT to maintain status quo in respect of the two operational licenses for Punjab & Karnataka and not to take any coercive action for remaining four nonoperational licenses. 2010 sanctioning the Scheme of Amalgamation of Spice Communications Limited (Spice) with the Company. both annexed thereto (all together referred to as “the consolidated financial statements”). We have audited the attached Consolidated Balance Sheet of Idea Cellular Limited (‘the Company’).Annual Report 2010-11 Auditors’ Report on the Consolidated Financial Statements To the Board of Directors of Idea Cellular Limited 1. challenging the above judgment dated July 4. we draw attention to note 2 of schedule 22 B to the consolidated financial statements. the Consolidated Financial Statements give a true and fair view in conformity with the accounting principles generally accepted in India: a) in the case of the Consolidated Balance Sheet.29 million and net cash outflow amounting to ` 43. 2011 65 . on a test basis. and on consideration of the separate audit reports on the individual financial statements of the Company. The Company has filed an appeal before the Appellate Bench of Hon’ble High Court of Delhi. However the judgment transferred & vested unto the Department of Telecommunications (DoT). as well as evaluating the overall financial statement presentation. total revenue of ` 11.137. 2011. till the next date of hearing. b) c) For Deloitte Haskins & Sells Chartered Accountants (Registration No. 5. 2011. We conducted our audit in accordance with the auditing standards generally accepted in India.: 38019 Place: Mumbai Date: July 29. on the consolidated financial statements. 2011 has reaffirmed its order dated February 5. We report that the consolidated financial statements have been prepared by the Company in accordance with the requirements of Accounting Standard 21 (Consolidated Financial Statements) and Accounting Standard 27 (Financial Reporting of Interests in Joint Ventures) as notified under the Companies (Accounting Standards) Rules.These financial statements are the responsibility of the Company’s Management and have been prepared on the basis of separate financial statements and other information regarding components. 2011. Since the matter is sub judice. and to the best of our information and according to the explanations given to us and read with our comments in Para 3 above. Without qualifying our opinion. its subsidiaries and joint venture (the Company. evidence supporting the amounts and the disclosures in the financial statements. of the profit of the Group for the year ended on that date and in the case of the Consolidated Cash Flow Statement. 2011. its subsidiaries and joint ventures constitute “the Group”) as at March 31. the outcome of which is uncertain at this stage. 2006. We believe that our audit provides a reasonable basis for our opinion. 2006. 4. The Consolidated Financial Statements include joint ventures accounted in accordance with Accounting Standard 27 (Financial Reporting of Interests in Joint Ventures) as notified under the Companies (Accounting Standards) Rules. if any. the Hon’ble High Court of Delhi on July 4. we are unable to comment on the consequential impact. and the aforesaid subsidiaries and joint ventures. the six telecom licenses granted to erstwhile Spice along with the spectrum (including two operational licenses for Punjab & Karnataka service areas) till the time permission of DoT is granted for transfer thereof upon an application from the Company to that effect. 2. of the cash flows of the Group for the year ended on that date. joint venture of Aditya Birla Telecom Limited whose financial statements reflect total assets (net) of ` 18. An audit includes examining. in our opinion. in case of the Consolidated Profit and Loss Account.

980.773.466.59 5.200.127.789.26 36.86 61.34 (24.142.38 120.61 2.099.803.299.049.25 91.232.09 89.585.559.557.07 19.: 38019 Place: Mumbai Date: July 29.303.20 10.593.85 2.60 536.06 4.74 187.12 3 4 5 6 336.64) 5.906.00 270. Loans and Advances Current Assets Inventories Sundry Debtors Cash and Bank Balances Other Current Assets Loans and Advances Less: Current Liabilities and Provisions Current Liabilities Provisions Net Current Assets Profit and Loss Account TOTAL Significant Accounting Policies and Notes to the Financial Statements The Schedules referred to above form an integral part of Balance Sheet In terms of our report attached For Deloitte Haskins & Sells Chartered Accountants Hemant M.26 122.032. 2011 Schedules SOURCES OF FUNDS Shareholders’ Funds Share Capital Outstanding Employee Stock Options Reserves and Surplus Compulsorily Convertible Preference Shares issued by Subsidiary Company Loan Funds Secured Unsecured Deferred Tax Liability (Net) (Refer note B 16 to Schedule 22) TOTAL APPLICATION OF FUNDS Fixed Assets Gross Block (At Cost) Less: Depreciation and Amortisation Net Block Capital Work-in-Progress Goodwill on Consolidation Investments Current Assets.803.45 85.143.70 7 8 9 10 11 12 659.998.496.037.848. 2011 For and on behalf of the Board Gian Prakash Gupta Director Akshaya Moondra Chief Financial Officer Arun Thiagarajan Director Pankaj Kapdeo Company Secretary Himanshu Kapania Managing Director ` Mn As at As at March 31.331.13 38.426.577.20 11.88 53.IDEA CELLULAR LIMITED Consolidated Balance Sheet as at March 31.73 181.95 36.81 1.704.02 2.756.02 199. 2010 1 2 33.23 5.496.679.741.78 224.02 30.776.12 2.166.630.12 22 66 .469.33 246.678.95 3.73 112.18 4.38 444.979.760.976.315.91 261.65 40.53 199. 2011 March 31.00 118.79 78.944.899.655.44 776.18 19.464.554.53 55.25 73.32 88.57 28.447.33 61. Joshi Partner Membership No.83 19.72 478.60 32.46) 246.06 25.35 4.77 (4.

Annual Report 2010-11 Consolidated Profit and Loss Account for the year ended March 31, 2011
` Mn
For the year ended Schedules INCOME Service Revenue Sale of Trading Goods Other Income TOTAL OPERATING EXPENDITURE Cost of Trading Goods Sold Personnel Expenditure Network Operating Expenditure License and WPC Charges Roaming & Access Charges Subscriber Acquisition & Servicing Expenditure Advertisement and Business Promotion Expenditure Administration & Other Expenses PROFIT BEFORE FINANCE CHARGES, DEPRECIATION, AMORTISATION & TAX Finance and Treasury Charges (Net) Depreciation Amortisation of Intangible Assets Surplus from Prepayment of Loan PROFIT BEFORE TAX FROM OPERATING ACTIVITIES Impairment in license value Less: Amount withdrawn from Securities Premium Loss on impairment and expenses relating to Spice Amalgamation Scheme Less: Amount withdrawn from Business Restructuring Reserve PROFIT BEFORE TAX Provision for Taxation - Current - Deferred - MAT Credit PROFIT AFTER TAX Balance of Loss brought forward from Previous year Accumulated Losses on Amalgamation of Spice Communications Limited Withdrawal from General Reserve Deferred tax on Amalgamation of Spice Communications Limited BALANCE OF PROFIT / (LOSS) CARRIED FORWARD TO BALANCE SHEET EARNINGS PER SHARE (in `) (Refer Note B 15 to Schedule 22) Basic Diluted Significant Accounting Policies and Notes to the Financial Statements The Schedules referred to above form an integral part of Profit & Loss Account

March 31, 2011
153,965.51 418.47 648.18 155,032.16 412.24 8,055.51 40,130.86 17,728.00 24,754.48 15,884.53 3,858.16 6,301.84 117,125.62 37,906.54 3,964.54 21,452.86 2,520.55 9,968.59 9,968.59 1,802.41 957.32 (1,778.21) 8,987.07 (5,037.53) 3,949.54 2.72 2.72

For the year ended

March 31, 2010
123,650.40 328.43 1,011.39 124,990.22 304.79 6,450.71 31,269.73 13,468.13 18,001.30 11,572.75 4,244.78 5,087.14 90,399.33 34,590.89 4,005.22 18,123.31 2,025.79 (316.94) 10,753.51 3,585.80 (3,585.80) 831.33 (831.33) 10,753.51 2,167.22 1,183.83 (2,136.93) 9,539.39 (5,263.40) 14,329.83 (4,844.60) (171.71) (5,037.53) 3.07 3.06

13

14 15 16 17 18 19 20

21 5 5

22

In terms of our report attached For Deloitte Haskins & Sells Chartered Accountants Hemant M. Joshi Partner Membership No.: 38019 Place: Mumbai Date: July 29, 2011 For and on behalf of the Board Gian Prakash Gupta Director Akshaya Moondra Chief Financial Officer Arun Thiagarajan Director Pankaj Kapdeo Company Secretary Himanshu Kapania Managing Director

67

IDEA CELLULAR LIMITED Schedules forming part of the Consolidated Accounts
` Mn As at As at March 31, 2011 March 31, 2010 SCHEDULE 1 SHARE CAPITAL Authorised 6,775,000,000 (Previous year 6,775,000,000) Equity Shares of ` 10/- each 1,500 (Previous year 1,500) Redeemable Cumulative Non Convertible Preference Shares of ` 10 Mn each Issued, Subscribed and Paid-up Equity Share Capital 3,303,271,505 (Previous year 3,299,837,792) Equity Shares of ` 10/- each fully paid up Out of the above 199,153,469 Equity Shares are allotted as fully paid up under the Scheme of Amalgamation of Spice Communications Limited without payments being received in cash SCHEDULE 2 RESERVES AND SURPLUS Amalgamation Reserve Extinguishment as per Spice Amalgamation Scheme Capital Reserve Extinguishment as per Spice Amalgamation Scheme Securities Premium Account Opening Balance Add: Premium on issue of shares under ESOP scheme Add: Addition on Amalgamation of Spice Communications Limited Less: Utilisation/appropriation as per Spice Amalgamation Scheme i) to Business Restructuring Reserve ii) to Profit and Loss Account iii) to General Reserve Reserve for Business Restructuring Opening Balance Add: Transfer from Securities Premium Account Less: Transferred to Profit and Loss Account during the year General Reserve Opening Balance Transfer from Securities Premium Account Transfer from Reserves (Amalgamation and Capital) Adjustment on Amalgamation of Spice Communications Limited Transfer to Profit and Loss Account Balance in Profit and Loss Account

67,750.00 15,000.00 82,750.00

67,750.00 15,000.00 82,750.00

33,032.72

32,998.38

33,032.72

32,998.38

85,130.33 220.72 85,351.05 168.67 168.67 3,949.54 89,469.26

643.57 (643.57) 1,414.56 (1,414.56) 104,655.86 38.30 4,942.59 (1,000.00) (3,585.80) (19,920.62) 85,130.33 1,000.00 (831.33) 168.67 19,920.62 2,058.13 (17,134.15) (4,844.60) 85,299.00

68

Annual Report 2010-11 Schedules forming part of the Consolidated Accounts
` Mn As at As at March 31, 2011 March 31, 2010 SCHEDULE 3 SECURED LOANS Term Loan Foreign Currency Loan From Banks From Financial Institutions (Repayable within one year ` 2,352.48 Mn, Previous year Nil) Rupee Loan From Banks From Financial Institutions From Others (Repayable within one year ` 8,833.09 Mn, Previous year ` 6,952.48 Mn) Vehicle Loan (Repayable within one year ` 143.15 Mn, Previous year ` 151.12 Mn) Vendor Finance (Repayable within one year Nil, Previous year ` 2,886.84 Mn) SCHEDULE 4 UNSECURED LOANS Term Loan Foreign Currency Loan From Banks (Repayable within one year ` 169.35 Mn, Previous year Nil) Short Term Loan Rupee Loan from Banks Buyers Credit in Foreign Currency from Banks Commercial Papers from Banks (Maximum amount outstanding during the year ` 15,000.00 Mn) Others Vendor Finance (Repayable within one year ` 885.17 Mn, Previous year ` 1,141.86 Mn)

6,695.54 14,080.68

6,525.34 7,523.62

63,310.73 3,861.42 3,520.00 292.20 91,760.57

49,267.09 3,579.47 3,040.00 309.05 2,921.66 73,166.23

10,149.28

3,386.98

8,156.77 3,789.73 5,000.00 957.43 891.17 28,944.38

48.74 1,991.07 5,426.79

69

16 Mn (Previous year `1.850.149.46 7.07 Total Intangible Assets 36.55 368.39 45.36 As at March 31.83 193.78 Net Block As at March 31.525.59 3.95 ` Mn As at March 31.10 1.17 Sale/ Adjustment during the year As at March 31 2011 As at Additions on April 1.55 56.425. 3.476.20 35.68 140.206.51 Mn (Previous year ` 234.87 4.70 88.491.61 121.54 165.51 462.894.07 165.37 7.320.32 95.831.16 Particulars As at Additions on April 1.72 Mn).78 902.445.309.90 Mn) on account of change in estimate with respect to site restoration cost obligation by Joint Venture of the Company (Refer note B 19 to Schedule 22).919.104.700.37 Computer .80 Grand Total 270.TANGIBLE ASSETS Particulars As at Additions on April 1.805.81 71.93 336.705.49 Bandwidth 1.07 1.26 1.171.444.76 89.73 2.737.43 Sale/ Adjustment during the year As at March 31.54 2.986.34 36.98 Mn (Previous year .206.10 155. account of 2010 Amalgamation 5.660.09 5.68 591.285.43 83.11 - Entry/License Fees 31.957.520.83 127.51 Leasehold Land 191.48 1.33 323.Software 3.00 673.729. Exchange gain amounting to ` 75.38 4.976.90 65.430.398. account of 2010 Amalgamation 3.24 162.07 Mn).73 945.62 32.386. 2011 As at March 31.47 348. 2011 ranges between 5 to 20 years based on the respective Telecom Service License period.423. 36. Plant & Machinery includes Gross Block of assets capitalised under finance lease ` 5.620. account of 2010 Amalgamation Additions during the year Sale/ Adjustment during the year As at March 31.031.40 Mn) (Includes capital advances ` 461.Gross Block ` 175.318.85 0.957. The remaining amortisation period of license / spectrum fees as at March 31.491. 2011 Depreciation Net Block As at March 31.71 4.50 282.85 8.96 21.28 Mn) . 2011 As at Additions on April 1.984.140.62 Furniture & Fixture 1.13 258.23 Mn) and Net Block ` 1.96 734.202.266. 2010 151.87 751.322.35 1.54 Mn (Previous year ` 976.91 5.087.38 53.973.32 68.34 1.194. issued by Ministry of Corporate Affairs.70 ` Mn Gross Block Additions during the year 0.63 65.16 257.71 22.585.839.` 10.81 1.68 65.698.21 *1.87 Mn) de-capitalised as per transitional provisions of notification under AS-11.16 Mn (Previous year Nil). Depreciation charge for the year includes accelerated depreciation of ` 613.48 117.39 Previous year 178.233.452.87 Mn.43 13.848.64 2.927.42 704.62 Schedules forming part of the Consolidated Accounts SCHEDULE 5 .35 Office Equipment 2.62 85.71 IDEA CELLULAR LIMITED Total Tangible Assets 234.26 23.45 578.093.26 171.86 7. 2011 19.46 20.60 2.906.20 960.464.86 Mn) and corresponding Accumulated Depreciation being ` 758.713.27 4. Previous year ` 242.69 20.73 12.39 234.482.351.61 1.16 224.54 173.33 340.842.30 76.46 17.621.FIXED ASSETS A . * Includes adjustments aggregating to ` 441.876.99 19.02 885.10 48.85 Mn) and corresponding Accumulated Depreciation being ` 3.93 Previous year 26.61 68.81 Mn (Previous year ` 304.Software include Gross Block of assets capitalised under finance lease ` 1.68 1.39 68.77 14. B .751.92 20.509. account of 2010 Amalgamation Land 151.83 193. 2.17 200. Plant & Machinery includes assets held for disposal.43 Notes: 1.657.656.500.68 32.620.407.45 Plant & Machinery 227.88 16.05 1.59 73.932.70 Mn due to change in estimated useful life of certain fixed assets.INTANGIBLE ASSETS Gross Block Additions during the year 33.46 114.998.57 1.285.54 644.472.171.26 1.76 18.472. Computer .969.15 16.191.00 95.41 Sale/ Adjustment during the year 0.94 Building 1.489.71 752. 2.21 Mn (Previous year ` 863.405.51 138.74 Capital Work in Progress (Net of impairment provision of ` 8.127.703.13 18.093.37 1.04 1.84 1.32 Notes: 1.77 565.466.097. 2010 13.34 265.81 Vehicles 830.53 Mn (Previous year ` 3.58 175.429.61 46.055.689.306.52 Amortisation Additions during the year 1.480.40 63.77 112. 2011 45.288.21 421. 4.

53 4.Considered good . (Previous year ` 263.85 71 .045.70 11.44 152.573.431.00 10.11 2.99 Mn) have been taken and are lying with the company] SCHEDULE 9 CASH AND BANK BALANCES Cash and Cheques on Hand Balances with Scheduled Banks .08 4.in Current Accounts .46 4.64 Mn. 2010 SCHEDULE 6 INVESTMENTS Current Investment Investments in Units of Mutual Funds (Refer note B 7 to Schedule 22) SCHEDULE 7 INVENTORIES (At lower of cost or estimated realisable value) Trading Goods Sim Cards and Others SCHEDULE 8 SUNDRY DEBTORS Debts outstanding for over six months Unsecured .88 4.789.18 69.54 266.303. (Previous year ` 292.57 390.19 Mn)] 10.76 Mn.717.650.59 4.73 4.06 224.941.76 1.35 237.16 659.61 141.55 1. 2011 March 31.402.07 1.41 2.200.655.95 98.46 1.899.02 522.551.in Deposit Accounts [Includes margin money ` 39.697.983.Annual Report 2010-11 Schedules forming part of the Consolidated Accounts ` Mn As at As at March 31.577.Considered doubtful Other Debts Unsecured .62 2.99 536.540.303.42 4.173.200.70 137.28 4.Considered doubtful Less: Provision for doubtful debts Total [Sundry Debtors include certain parties from whom Security Deposits of ` 200.54 2.Considered good .96 1.303.00 11.36 466.

89 4.53 55. considered good unless otherwise stated) Advances recoverable in cash or kind or for value to be received .06 7.70 38.51 585.232.73 3.282.331.49 9.559.35 451.06 1.08 499.85 5.24 1.Considered good .84 333.554.IDEA CELLULAR LIMITED Schedules forming part of the Consolidated Accounts ` Mn As at As at March 31.98 578. 2010 SCHEDULE 10 OTHER CURRENT ASSETS Unbilled Revenue Interest Receivable on Deposits SCHEDULE 11 LOANS AND ADVANCES (Unsecured.51 7.03 317.509.01 1.546.20 0.831.671.98 8.38 3.729.69 539.79 8.23 693.56 2.259.339.979.77 72 .42 490.37 1.12 776.04 53.383.967.439.01 585.467.467. 2011 March 31.166.65 40.19 2.10 1.34 24.Considered doubtful Less: Provision for doubtful advances Deposits with Body Corporates Deposits and Balances with Govt.04 888.59 890.90 1.756.02 8.681.10 1.12 116.38 553.05 7.98 2.134.479.686.25 25.719.447.51 2.679.95 655.609.282.776.46 19.26 37.49 578.776.18 2. Authorities Deposit with others Advance Income Tax MAT Credit Entitlement SCHEDULE 12 CURRENT LIABILITIES AND PROVISIONS Current Liabilities Sundry Creditors Book Bank Overdraft Advances from Customers and Unearned Income Deposits from Customers and Others Other Liabilities Interest accrued but not due Provisions Gratuity (Refer note B 10 to Schedule 22) Leave Encashment Asset Retirement Obligation (Refer note B 19 to Schedule 22) Provision for Direct Tax Total 768.06 8.81 195.

71 69.84 8.25 4.449.18 941.486.445.245.86 1.728.112.13 1.86 4.98 50.130.50 69.03 1.84 228.90 137.654.89 6.73 7.Plant and Machinery Switching & Cellsites Rent Lease Line and Connectivity Charges Network Insurance Passive Infrastructure Charges Other Network Operating expenses SCHEDULE 17 LICENSE AND WPC CHARGES License Fees WPC and Spectrum Charges SCHEDULE 18 ROAMING & ACCESS CHARGES Roaming Charges Access Charges 705.48 628.50 308.049.39 73 .36 70.90 3.42 3.184.055.66 334.02 412.73 89.385.25 24.75 11. 2011 March 31.27 13.076. 2010 SCHEDULE 13 OTHER INCOME Liabilities/Provisions no longer required written back Miscellaneous Receipts SCHEDULE 14 COST OF TRADING GOODS SOLD Opening Stock Add: Purchases Less: Closing Stock SCHEDULE 15 PERSONNEL EXPENDITURE Salaries and Allowances etc.50 31.23 40.30 11.98 9.110.81 5.Annual Report 2010-11 Schedules forming part of the Consolidated Accounts ` Mn For the year ended For the year ended March 31.88 104.782.450.651.212.022.36 6.56 17.496.197.79 558.23 24.36 479.51 5.33 14.468.57 18.44 6.216.754.00 9.11 272.011.066.45 648.36 304. Contribution to Provident and Other Funds Staff Welfare Recruitment and Training SCHEDULE 16 NETWORK OPERATING EXPENDITURE Security Service Charges Power and Fuel Repairs and Maintenance .73 17.001.65 327.07 428.10 408.33 6.372.269.24 46.49 4.10 59.49 109.

Building .14 1.24 323.32 49.428.40 323.157.54 1.91 132.46 1.02 6.599.733.814.43 834.33 (1.59 32.91 257.301.63 147.75 74 .225.95 269.77 1.34) 1.68 271. 2010 SCHEDULE 19 SUBSCRIBER ACQUISITION & SERVICING EXPENDITURE Cost of Sim and Other Cards Commission and Discount to dealers & recharge expenses Customer Verification Expenses Collection & Telecalling Expenses Customer Retention & Customer loyalty Expenses SCHEDULE 20 ADMINISTRATION & OTHER EXPENSES Repairs and Maintenance Other Insurance Non Network Rent Rates and Taxes Electricity Printing and Stationery Communication Expenses Travelling and Conveyance Provision for bad and doubtful debts / advances Bad Debts written off Bank Charges Directors Sitting Fees Legal and Professional Charges Audit Fees Loss on Sale of Fixed Assets / Asset disposed off Miscellaneous expenses SCHEDULE 21 FINANCE AND TREASURY CHARGES (NET) Interest .Others Financing Charges Less: Interest Received Profit on Sale of Current Investments Gain / (Loss) on foreign exchange fluctuation (Net) 645.585.651.63 30.615.55 362.91 37.964.96 730.14 472.33 42.858.04 86.88 579.99 90.Others 47.31 886.16 3.005.84 39.IDEA CELLULAR LIMITED Schedules forming part of the Consolidated Accounts ` Mn For the year ended For the year ended March 31.462.13 Mn capitalised.68 15. Previous year Nil) .22 4.89 623.572.86 75.38 3.51 247.57 6.18 1.46 121.86 74.884.00 540.82 85.78 1.11 91.92 5.53 1.47 .83 522.24 86.404.73 77.73 250.560.On Fixed Period Loan (Net of ` 4.11 387.92 629.68 8.20 445. 2011 March 31.85 5.087.590.95 672.54 4.04 11.79 6.093.15 5.35 2.48 3.159.635.

00 16. Principles of Consolidation: The basis of preparation of the Consolidated Financial Statements is as follows: The Financial Statements (The Balance Sheet and the Profit and Loss Account) of the Company. duties.00 100. 4. Fixed Assets: Fixed assets are stated at cost of acquisition and installation less accumulated depreciation. Asset retirement obligations are capitalised based on a constructive obligation as a result of past events. its subsidiary companies and Joint Ventures (together referred to as the “Group”) have been prepared in accordance with Accounting Standard 21 on “Consolidated Financial Statements” and Accounting Standard 27 on “Financial Reporting of Interests in Joint Ventures” issued by the Institute of Chartered Accountants of India (“ICAI”). The list of subsidiaries.CONSOLIDATED 1. is as under: Sr. when it is probable that an outflow of resources will be required to settle the obligation and a reliable estimate of the amount can be made.00 100. 2011. the same reporting date as that of the Company The differential with respect to the cost of investments in the subsidiaries over the Company’s portion of equity is recognised as Goodwill or Capital Reserve. liabilities. as the case may be. is as under: Sr. income and expenses.00 100.00 1 Indus Towers Limited (Indus)* *entire shareholding is held by Aditya Birla Telecom Limited 3. Voting Power % as at March 31. Basis of Preparation of Financial Statements: The Consolidated Financial Statements of Idea Cellular Limited (“the Company”). Such costs are depreciated over the remaining useful life of the asset. March 31.00 100. which is included in this Consolidated Financial Statements along with Company’s holding therein. transactions and the resulting unrealised profit or losses. Cost is inclusive of freight. Expenditure during pre-operative period of licence: Expenses incurred on project and other charges during construction period are included under pre-operative expenditure (grouped under capital work in progress) and are allocated to the cost of fixed assets on the commencement of commercial operations. 2011 2010 16. 2011 2010 100.00 100. 75 . SIGNIFICANT ACCOUNTING POLICIES . 2. The mandatory applicable accounting standards have been followed in preparation of these financial statements.00 100.00 100. The Consolidated Financial Statements are prepared under historical cost convention on accrual basis. after eliminating intra-group balances. 1 2 3 4 5 6 Swinder Singh Satara and Company Limited (SSS) Aditya Birla Telecom Limited (ABTL) Idea Cellular Services Limited (ICSL) Idea Cellular Infrastructure Services Limited (ICISL) Idea Cellular Towers Infrastructure Limited* (ICTIL) Idea Mobile Commerce Services Limited (IMCSL) [Formerly Carlos Towers Limited] The Joint Venture.00 All the above subsidiaries are incorporated in India. levies and any directly attributable cost of bringing the assets to their working condition for intended use.00 100.00 100. Depreciation and Amortisation: Depreciation on fixed assets is provided on straight line method (except stated otherwise) on the prorata basis of estimated useful economic lives as given below:Tangible Assets Buildings Network Equipments Optical Fibre Other Plant and Machineries Office Equipment Computers Furniture and Fixtures Motor Vehicles Leasehold improvements Leasehold Land Years 9 to 30 10 to 20 15 3 to 5 3 to 9 3 to 5 3 to 10 Upto 5 Period of Lease Period of Lease Voting Power % as at March 31. which are included in this Consolidated Financial Statements along with Company’s holding therein. The Consolidated Financial Statements are prepared using uniform accounting policies for like transactions and other events in similar circumstances except where stated otherwise. Name of the Company No. 5. The Financial Statements of the subsidiaries used in the consolidation are drawn upto March 31. its subsidiaries and joint venture have been combined on a line-by-line basis by adding together the book values of like items of assets.00 100. March 31.Annual Report 2010-11 Schedules forming part of the Consolidated Accounts SCHEDULE 22 A. Name of the Company No.00 100.

Roaming Charges and passive infrastructure sharing from other telecom operators is made for dues outstanding more than 180 days from the date of billing other than cases when an amount is payable to that operator or in specific case when management is of the view that the amount is recoverable. The Company reviews the same at each balance sheet date and writes down the carrying amount of MAT credit entitlement to the extent there is no longer convincing evidence to the effect that Company will pay normal income tax during the specified period. Provision in accounts for leave benefits to employees is based on actuarial valuation done by projected accrued benefit method at the period end. Cost is determined on weighted average basis. Current Tax: Provision for current Income tax is made on the taxable income using the applicable tax rates and tax laws. Revenue Recognition and Receivables: Revenue on account of telephony services (mobile & long distance) and sale of handsets and related accessories is recognised net of rebates. 11. Investments: Current investments are stated at lower of cost or fair value in respect of each separate investment.000/. discount. which is not an integral part of hardware. Revenue from provision of passive infrastructure services is recognised on accrual basis (net of reimbursements) as per the contractual terms with the recipients. Licences including the fees paid on fixed basis prior to revenue share regime and Spectrum Fee is amortised on commencement of operations over the validity period. Long term foreign currency monetary liabilities used for acquisition of fixed assets: adjusted to the cost of the fixed assets and amortised over the remaining useful life of the asset. Exchange difference arising out of fluctuation in exchange rates on settlement / period end is accounted based on the nature of transaction as under: 1) 2) Short term foreign currency monetary assets and liabilities: recognised in the Profit and Loss account. Other Long term foreign currency monetary liabilities: recognised in “Foreign Currency Monetary Item Translation Difference Account” and amortised over the period of liability not exceeding 31st March 2012. are provided for. As per the transitional provisions given in the notification issued by Ministry of Corporate Affairs dated 31st March 2009. 12. Borrowing Cost: Interest and other costs incurred in connection with the borrowing of the funds are charged to revenue on accrual ii) iii) Assets costing upto ` 5. Liability for gratuity as at the period end is provided on the basis of actuarial valuation and funded with Life Insurance Corporation of India. is treated as intangible asset and is amortised over their useful economic lives as estimated by the management between 3 to 5 years. represent revenues recognised from the bill cycle date to the end of each month. Contributions to superannuation are funded with the Life Insurance Corporation of India and charged to the Profit and Loss account. Foreign Currency Transactions: Transactions in foreign currency are recorded at the exchange rates prevailing at the dates of the transactions. the said asset is created by way of a credit to the Profit and Loss account and shown as MAT credit entitlement. Deferred Tax: Deferred tax arising on account of timing differences and which are capable of reversal in one or more subsequent periods is recognised using the tax rates and tax laws that have been enacted or substantively enacted. Taxation: a) b) c) 76 . 10. Deferred tax assets are not recognised unless there is virtual certainty with respect to the reversal of the same in future years. Retirement Benefits: Contributions to Provident and Pension funds are funded with the appropriate authorities and charged to the Profit and Loss account. Long-term investments are stated at cost less provision for diminution in value other than temporary. 6. the company has opted for the option of adjusting the exchange difference on long term foreign currency monetary items to the cost of the assets acquired out of these foreign currency monetary items. In the year in which the MAT credit becomes eligible to be recognized as an asset in accordance with the recommendations contained in Guidance Note issued by the ICAI.IDEA CELLULAR LIMITED Intangible Assets: i) Cost of Rights. Debts (net of security deposits outstanding there against) due from subscribers. Unbilled receivables. The company has aligned its accounting policy based on this notification. Bandwidth / Fibre taken on Indefeasible Right of Use (IRU) is amortised over the agreement period. Software. Minimum Alternative Tax (MAT) credit: MAT credit is recognised as an asset only when and to the extent there is convincing evidence that the Company will pay normal Income tax during the specified period. Recharge fees on recharge vouchers is recognised as revenue as and when the recharge voucher is activated by the subscriber. which remain unpaid for more than 90 days from the date of bill and/or other debts which are otherwise considered doubtful. 3) 8. 7. etc.are depreciated fully in the month of purchase. Inventories: Inventories are valued at cost or net realisable value. These are billed in subsequent periods as per the terms of the billing plans. if any. service tax. Provision for doubtful debts on account of Interconnect Usage Charges (IUC). on rendering of services and supply of goods respectively. whichever is lower. 9.

For the purpose of impairment. Finance: Leased assets acquired on which significant risk and reward of ownership effectively transferred to the Company are capitalised at lower of fair value or the amounts paid under such lease arrangements. In respect of re-pricing of existing stock option. Leases: a) Operating: Lease of assets under which significant risks and rewards of ownership are effectively retained by the lessor are classified as operating leases.Annual Report 2010-11 basis except those borrowing costs which are directly attributable to the acquisition or construction of those fixed assets. on a straight-line or other systematic basis over the lease term. A contingent liability is disclosed where there is a possible obligation or a present obligation that may. (irrespective of whether declared. The diluted EPS is calculated on the same basis as basic EPS. and the amount has been reliably estimated. 14. Such assets are amortised over the period of lease or estimated life of such assets whichever is less. as per Accounting Standard 20 on “Earnings Per Share” issued by the Institute of Chartered Accountants of India. Impairment of Assets: Assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. it is more likely than not that an outflow of resources will be required to settle the obligation. 20. after reducing dividend on Cumulative Preference Shares for the period 77 . Differences between actual results and estimates are recognised in the periods in which the results are known / materialise. The number of shares used in computing basic EPS is the weighted average number of shares outstanding during the period. An impairment loss is recognized in accordance for Accounting Standard-28 on “Impairment of Assets”. after adjusting for the effects of potential dilutive equity shares unless the effect of the potential dilutive equity shares is anti-dilutive. paid or not). 1999 the variable licence fee computed at prescribed rates of revenue share is being charged to the Profit and Loss account in the period in which the related revenue arises. for the amount by which the asset’s carrying amount exceeds its recoverable amount as on the carrying date. Issue Expenditure: Expenses incurred in connection with issue of equity shares are adjusted against share premium. Provisions & Contingent Liability: Provisions are recognized when the Company has a present obligation as a result of past events. the intrinsic value of the option is treated as discount and accounted as employee compensation cost over the vesting period. which necessarily take a substantial period of time to get ready for their intended use. but probably will not. Earnings Per Share: The earnings considered in ascertaining the Group’s EPS comprises the net profit after tax. Employee Stock Option: In respect of stock option granted pursuant to the company’s Employee Stock Option Scheme. 18. assets are grouped at the lowest levels for which there are separately identifiable cash flows. Lease payments under an operating lease are recognised as expense in the Profit and Loss account. 17. Licence Fees – Revenue Share: With effect from 1st August. Use of Estimate: The preparation of financial statements in conformity with generally accepted accounting principles requires estimates and assumptions to be made that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities on the date of the financial statements and the reported amounts of revenues and expenses during the reporting year. require an outflow of resources. Such costs are capitalized with the fixed assets. 19. The recoverable amount is higher of the asset’s fair value less costs to sell vis-à-vis value in use. the incremental intrinsic value of the option is accounted as employee cost over the remaining vesting period. b) 16. Revenue for this purpose comprises adjusted gross revenue as per the license agreement of the license area to which the license pertains. 15. 13.

maintain status quo in relation to the aforesaid two operating licenses and no coercive steps in relation to any demand pertaining to the four non operating licenses.685. (ii) Till the next date of hearing. 3G services in select towns have been launched in April. reaffirmed the amalgamation of Spice with the Company. NOTES TO ACCOUNTS The Company successfully bid for 11 service areas in the 3G Spectrum auction held by the Department of Telecommunications (DoT) during the year for a total cost of ` 57. Kerala. 2011. till the time permission of DoT is granted for transfer thereof upon an application from the Company to that effect. which have not been rolled out. challenging the above judgment of 4th July. Uttar Pradesh (East). the company has received the following demands / notices : (i) Demand notices dated 24th February. Dated 24th February. Kerala and Uttar Pradesh (East). 78 . has filed a scheme of arrangement with an appointed date of 1st April. the said judgment transferred and vested unto the DoT. 2011 of ` 500 Mn each in respect of UAS licenses for Punjab and Karnataka service areas respectively held by erstwhile Spice Communications Limited. Dated 1st June. Effects of the scheme on the consolidated financial statements will be given in the accounting period in which the scheme is sanctioned and made effective. the Company has not been given clearance for commercial use of the allotted spectrum band. 2011. 2011 for violation of license conditions in respect of Delhi. Punjab. cannot be ascertained. However. Himachal Pradesh and Jammu & Kashmir. if required. 2011 and dated 1st June. 2009 for merger with Indus Towers Limited before the Hon’ble High Court of Delhi. 2011.90 Mn Spectrum in the 2100 MHz band has been allotted to the Company for a period of twenty years in the 11 service areas. 2010 pursuant to sanction of the Scheme of Amalgamation by Hon’ble High Court of Gujarat and Hon’ble High Court of Delhi. as the Company is continuing to operate the licenses for Punjab & Karnataka service areas granted to erstwhile Spice. a. viz. if any. The Hon’ble TDSAT has directed the Company to approach it again. b. As of 31st March. Andhra Pradesh. 2010. In the service areas of Andhra Pradesh. sanctioning the above scheme. Haryana. 4. Appellate Bench has directed DoT to :(i) Accept the License Fee from the Company without prejudice. The Company then filed an appeal. Demand notices dated 1st June. 2011 and 1st June. 2011. before the Appellate Bench of the Hon’ble High Court of Delhi. Maharashtra and Uttar Pradesh (West). 3. upon the final disposal of the matters mentioned in point 2 below by the Appellate Bench of Hon’ble High Court of Delhi. Through interim orders. 1. In respect of demand notices dated 1st June. In respect of demand notice dated 24th February. Contingent Liabilities a) Due to the DoT’s alleged contention that the acquisition of erstwhile Spice Communication Limited and its subsequent amalgamation with the company violates certain license conditions/guidelines.IDEA CELLULAR LIMITED Schedules forming part of the Consolidated Accounts SCHEDULE 22 B. upon an application made by DoT on 30th March. Madhya Pradesh & Chattisgarh. Uttar Pradesh (West). 2. a wholly owned subsidiary of the Company. In the Punjab service area. 2011 for recall of the order dated 5th February. the Hon’ble High Court of Delhi while pronouncing its judgment on 4th July. 2011. However. Haryana. 2011 of ` 500 Mn each in respect of CMTS licenses of Delhi. the order on Company’s interim prayer seeking stay on demand has been reserved and DoT has been directed not to take any coercive action till then. Idea Cellular Towers Infrastructure Limited. The above demands have been challenged by the Company before the Hon’ble TDSAT. Haryana and Andhra Pradesh service areas granted to erstwhile Spice Communications Limited. Andhra Pradesh. which have not been rolled out. Madhya Pradesh & Chattisgarh. Haryana and Maharashtra service areas held by the company. stay has been granted. the six licenses granted to erstwhile Spice along with the spectrum (including the two operational licenses for Punjab & Karnataka service areas). Maharashtra. 2011. Pending the final disposal of the appeal. 2011 for violation of license conditions in respect of Punjab & Karnataka service areas respectively granted to the Company. the consequential financial impact. The erstwhile Spice Communications Limited (Spice) was amalgamated with the Company effective 1st March. The Company had approached Hon’ble TDSAT for direction to DoT to allow commercial use of the allotted 3G spectrum band. the Company has launched 3G services in select towns in the service areas of Gujarat. Himachal Pradesh. Gujarat. Maharashtra. (ii) Show cause notices for termination of six UAS licenses issued in 2008.

The same has been disposed off by Hon’ble TDSAT.79 ` Mn As on March 31. the Hon’ble TDSAT has directed the Company to deposit 60% of the amount within a week for securing interest of both the parties without prejudice to their respective rights and contentions. Vide interim orders dated 8th June.441. Following the favourable decision of TDSAT on petition No. prepaid cards and recharge coupons. 2011 mainly relates to the following matters: • • • Interpretation issues arising out of Rule 6(3) of the Cenvat Credit Rules.72 353. The Company had challenged the show cause notice dated 24th February. Dated 11th May. (iii) Demands for liquidated damages amounting to ` 276.22 3. 2011 & 11th May. As on March 31.Annual Report 2010-11 c. 2011 765. 2011. the WPC wing of DoT had raised demands towards monthly compounded interest and penalty on WPC charges for the period upto financial year 2002-03 in respect of the telecom service areas of the erstwhile Idea Mobile Communications Limited. However. 2011. the Company has challenged the constitutional validity of the levy.346. these amounts have been adjusted against subsequent spectrum dues. DoT has filed an appeal against this order in the Supreme Court.306. the Company is in the process of addressing these suitably within the given timelines. which were deposited under protest and reflected as advances. 2010 727. iii.505. Haryana and Andhra Pradesh. BTA Cellcom Limited and Spice Communications Limited amounting to ` 844.82 c) iv.84 2. non deduction of tax on roaming charges etc. Income Tax matters: The appeals which are pending before various Appellate Authorities includes mainly the appeals filed by the company against the demands raised by various income tax authorities on account of non deduction of tax on discount allowed to prepaid distributors.91 2. airtime revenue etc.468.21 2. The company has filed appropriate petitions before the Hon’ble TDSAT for quashing these demands. on which the Company has already paid Service Tax. 2011 above before Hon’ble TDSAT. 123 of 2008. in case the company is aggrieved by any final orders of DoT in this matter. which the Company has since complied with. ii.50 Mn for non fulfillment of roll out obligations in respect of UAS licenses issued in 2008 to the Company for Punjab and Karnataka service areas and to the erstwhile Spice Communications Limited for the service areas of Maharashtra. Entry Tax: In certain states entry tax is being demanded on receipt of material from outside the state.34 115. With respect to show cause notices dated 1st June.38 3. 2011 mainly relates to the demands raised by the VAT/Sales Tax authorities at few states on SIM cards. 2011 for termination due to non fulfillment of rollout obligations in respect of UAS license for Karnataka service area granted to Company and for Andhra Pradesh service area granted to erstwhile Spice Communications Limited. b) During the financial year 2006-07. Subsequently. 2004 Denial of Cenvat Credit related to Towers & Shelters Disallowance of Cenvat Credit on input services viewed as not related to output service.906. Sales Tax: The Sales Tax demands as at 31st March.09 3. Service Tax: The service tax demands as at 31st March.88 Mn. terming it as premature with a liberty to approach the Hon’ble TDSAT afresh. Other Matters not provided for: Particulars Income Tax matters not acknowledged as debts (see i below) Sales Tax matters not acknowledged as debts (see ii below) Service Tax matters not acknowledged as debts (see iii below) Entry Tax and Custom matters not acknowledged as debts (see iv below) Other claims not acknowledged as debts i. 79 .

552 3.I Institutional Growth ICICI Prudential Ultra Short Term Plan .Growth Kotak Quarterly Interval Plan Series 6 .825 16 6. from the holder at the original issue price of ` 20. 2011 the closing balance in units are as follows: Particulars As on March 31.29 Growth Kotak Floater .Super IP . fully paid up.005 11 19 916.064 59.077 200 8.21 ` Mn As on March 31.304 Birla Sun Life Cash plus .Growth IDFC Cash Fund IDFC Cash Fund .104 3.373 93.Institutional Growth Plan UTI Liquid Cash Plan UTI Liquid Cash Plan Institutional UTI Treasury advantage fund .Plan C . 2010 20.500 options have been granted as ‘Tranche IV’ to the eligible employees as on 24th January 2011.985 24. d) Estimated amount of contracts (net of advance) remaining to be executed on capital account and not provided for.643 857 87.996 96.087 494.IDEA CELLULAR LIMITED v.Institutional. Other claims not acknowledged as debts: Mainly include matters appealed by BSNL in Hon’ble Supreme Court.24.Growth IDFC Fixed Maturity .Installment Premium .630 531 250 250 1.982.Growth Birla Sun Life Short Term Fund .22 As on March 31. ` Mn Particulars Estimated amount of contracts (net of advance) 5.249 50.000 2.545 4.Series I.307.each.IP – Growth Birla Sun Life Cash Plus .Series II .82 7. commitments under EPCG. 2011 21.794 1.000 500 16 24 11.845.Super IP Growth ICICI Prudential Interval Fund . As on 31st March.Plan C .Growth Kotak Liquid (Installment Premium) .261 1.Monthly Series . 2010 11.183. of the 80 . 25.012 7.562 16.746 551.Fixed Income Interval Fund .960.Growth ICICI Prudential Institutional Liquid Plan .Growth HDFC Cash Management Saving Plan HDFC Quarterly Interval Fund .216 48.650 40 160 40 120 710 40 40 120 40 40 10. During the year. Each option when exercised would be converted into one equity share of ` 10/.Long-term .Growth Total 8.023 24 1.000 24 16 1.01 The Company has a Contingent obligation to buy compulsoriy convertible preference shares issued by ABTL.50 Mn Details of guarantees given: Particulars Bank guarantees given As on March 31. 2010 Qty in ‘000 ` in Mn Units Value 1.Growth Birla Sun Life Floating Rate Short Term Plan .953 1.Quarterly Interval Plan V .028 1. 6.018 25 657.IP . miscellaneous disputed matters with DoT and other consumer court cases.Monthly Interval Plan .Institutional Growth Option UTI.Installment .200 As on March 31.Growth Birla Sun Life Savings Fund .Sup Prem .IP . under ESOS 2006. 2011 16.797 10.Whole Sale Plan .Institutional Premium Plan .Growth Reliance Liquid Fund Cash Plan Growth Option Reliance Monthly Interval Fund . As on March 31.Growth Birla Sun Life Saving Fund . 2011 Qty in ‘000 ` in Mn Units Value 12.

45 On the date of Re-pricing Tranche I Nil 4 yrs 6 months 7.925 47.14 50.97 Net profit after tax but before exceptional items Add: Total stock-based employee compensation expense determined under intrinsic value base method Less: Total stock-based employee compensation expense determined under fair value base method Adjusted Net Profit Basic earnings per share (in `) .06 2.54 Tranche II Nil 5 yrs 9 months 7.524.As reported .433.693.98 3. 2011 March 31. 2011.33 2.Adjusted Diluted earnings per share (in `) .162.500 1. 2011 8.119.39 282.04-8.85 Mn) and earnings per share as reported would be lower as indicated below: ` Mn Particulars For the year ended March 31.500 6.50 45. Summary of Stock Options: Particulars Options outstanding at beginning of the year Options granted during the year Options forfeited/lapsed during the year Options exercised during the year Options outstanding at end of the year Weighted average exercise price of outstanding options (`) No.539.54 Tranche IV Nil 6 yrs 6months 8.Adjusted The fair value of each option is estimated on the date of grant / re-pricing based on the following assumptions: Particulars Tranche I Dividend yield (%) Expected life Risk free interest rate (%) Volatility (%) Nil 6 yrs 6 months 7.918.36 54.65 For the year ended March 31.713 24.516.34 Mn (Previous year ` 282.76 9.00 On the date of Grant Tranche II Nil 6 yrs 6 months 7.34 380.65 2.08 8.36 54.Annual Report 2010-11 Company. Had the compensation cost for the Company’s stock based compensation plan been determined as per fair value approach (calculated using Black & Scholes Option Pricing Model). The compensation costs of stock options granted to employees have been accounted by the Company using the intrinsic value method.311 3.114 27.74 Mn (Previous year ` 284.As reported .449 44.72 2.36 54.254.07 150.687 589.07 2.750 2.80 Tranche III Nil 6 yrs 6 months 7. the Company’s net income would be lower by ` 229.72 2.91 567.54 81 .78 40. The options will vest in 4 equal annual installments after one year of the grant.952. The maximum period of exercise is 5 years from the date of vesting.84 Personnel expenditure includes ` 150. 2010 27.757. 2010 9.449 2.119.65 22.91 Mn) being the amortisation of intrinsic value for the period ending 31st March. of Stock Options March 31.54 3.987.

73 49.16 375. 2010 17.64 296.79 17.25 0. 2011 Amount in Mn As on March 31.20 0.47 23.228.07 722.046.03 13. 2010 82 .231.60 18.04 198.52 327.53 128. 2011 As on March 31.89 15. Details of foreign currency exposures: a) Hedged by a derivative instrument: Particulars Foreign Currency Loan* Foreign currency loan in USD^ Vendor finance in USD Foreign currency loan in JPY Sundry Creditors Sundry creditors in USD Interest accrued but not due on foreign currency loans in USD The Equivalent INR of Foreign Currency Loans & Creditors * Fully hedged for interest and principal repayments.86 17.222.IDEA CELLULAR LIMITED 9.727.06 0.91 0.727.73 As on March 31.02 5.32 93.64 0.12 10.01 4.74 24.28 12.914.75 0.31 0.67 43. ^ Includes USD 68.10 0.06^ 49. b) Not hedged by a derivative instrument or otherwise: Amount in Mn Particulars Foreign Currency Loan: Foreign currency loan in USD Vendor finance in USD Equivalent INR Sundry Creditors: in USD Interest accrued on foreign currency loans in USD in EURO Equivalent INR Sundry Debtors: in USD in EURO Equivalent INR 8.10 As on March 31.29 Mn(Previous year USD 18 Mn) fully hedged for principal repayments only.741.

36 23. The present value of the accrued gratuity minus fund value is provided in the books of accounts.36 86.85 (9. 2011 8.00% 7.76 100% 2 3 4 5 6 7 83 .87 23.77 14.62 (39.41 39.23 110.55 9.00% 258.13 57.50% 7.75) 4.58 4.13) 52.13 (186.13) 57.57) 43.36 124.13 9.69 258.57 183.79 39. 1 Assumptions Discount rate Expected rate of return on plan assets Salary escalation Table showing changes in present value of obligations Present value of obligations as at beginning of the year Interest cost Current service cost Benefits paid Liabilities assumed on acquisition Actuarial (gain)/loss on obligations Present value of obligations as at end of the year Table showing changes in the fair value of plan assets Fair value of plan assets at beginning of the year Expected return on plan assets Contributions Assets acquired on acquisition Benefits paid Actuarial gain/(loss) on plan assets Fair value of plan assets at end of the year Funded status Actual return on plan assets Actuarial Gain/Loss recognised Actuarial gain/(loss) for the year –obligation Actuarial (gain)/loss for the year .36 148.23 110.91 52.00 (9.70 186. i) Changes in benefit obligation for the Company and its Subsidiaries: ` Mn Sr.28) 39.85 14. Particulars No.47 28.47 19.22) (4.22 369.50% 5.65 43.65 369.12 17.plan assets Total (gain)/loss for the year Actuarial (gain)/loss recognised in the year Amounts to be recognised in the Balance Sheet Present value of obligations as at end of the year Fair value of plan assets as at end of the year Funded status Net Asset/(Liability) recognized in the Balance Sheet Expenses recognised in statement of Profit & Loss Current service cost Interest cost Expected return on plan assets Net Actuarial (Gain)/Loss recognised in the year Expenses recognised in statement of Profit & Loss under “Contribution to Provident and other funds” Investment Details of Plan Assets (% Allocation) Insurer Managed Funds* For the year ended March 31.7.75) 48.62 36.62) 43.23 12.03 100% For the year ended March 31.50% 6.91 9. Employee Benefits: a) Defined Benefit Plan: The Group provides for its liability towards gratuity as per the actuarial valuation.70 186.13 (110.83 148.13 (12.60 (48.65 112. 2010 7.00% 133.83 183.Annual Report 2010-11 10.65) 26.65) 0.28 148.00% .41 258.69) (0.03 (17.87 (17.

10 For the year ended March 31.83 183. March 31.21 2.23 (110.22) 14. considered in actuarial valuation.70 (186.33 258.55 (9.21 2. 2010 1.11 84.41 0.16) 9. promotion and other relevant factors.79) 5. 2011 2010 2009 2008 2007 369. 2011 5.13) 57.97 61.30 (1.92 80. 2010 4. take account of inflation. March 31.63 0.54 ` Mn For the year ended March 31.36 148.77 124. 2011 9. 2011 3.25 5.96) 0. Particulars No For the year For the year For the year For the year For the year ended ended ended ended ended March 31.02 0.IDEA CELLULAR LIMITED ` Mn Sr. seniority. March 31.96 (5. The estimates of future salary increases.54 (0.92 0.33 (4.13) 26.74 For the year ended March 31.10) 0. 2010 5.21 (4.28 133.17) - 8 Experience Adjustments Defined benefit obligation Plan assets Surplus / (Deficit) Experience adjustments on plan liabilities Experience adjustments on plan assets *The funds are managed by LIC and LIC does not provide breakup of plan assets by investment type.21 ` Mn For the year ended March 31.10 (9. 2009 4. ii) Disclosure of benefit obligation in respect of Company’s share in Joint Ventures: a) Gratuity cost for the year: For the year ended March 31.59) 81.96 Particulars Current service cost Interest cost Actuarial losses Total amount recognised in Profit and Loss Account b) Amount recognised in the Balance Sheet: Particulars Opening defined benefit obligation Liability taken over from joint venturers Total amount recognised in Profit and Loss Account Benefits paid during the year Amount recognised in the Balance Sheet c) Experience Adjustments: For the year ended March 31.07 0.21) - Particulars Defined benefit obligation Surplus / (Deficit) Experience adjustments on plan liabilities 84 .60 4.30 ` Mn For the year ended March 31.80 (20. such as supply and demand in the employment market. March 31.96 4. Experience adjustments have been disclosed for the year ended 31st March 2008 onwards for which information is available on Accounting Standard 15 (Revised 2005) “Employee Benefits”.

543.76 33.833.393.66 302. Primary Business Information (Business Segments) for the year ended March 31.76 34.908.751.85 20.20 2.93 24.62 99.524.13 3.Annual Report 2010-11 d) Financial Assumptions: As on March 31.90 182.502.44 2.38) 155.287.77) 278.00 1. 2010 7.54 9.90% First 3 years-10% and 7% thereafter As on March 31. Passive Infrastructure (PI): providing passive infrastructure services.36 271.23 3.577.751. Segment Reporting 1.242.106.08 154.215.33 38. 2011: ` Mn Particulars Revenue External Revenue Inter-segment Revenue Total Revenue Segment Result Interest & financing charges (Net) Profit before Tax Provision for Tax (Net) Profit after Tax Other information Segment Assets Unallocated Corporate Assets Total Assets Segment Liabilities Unallocated Corporate Liabilities Total Liabilities Capital Expenditure Depreciation & Amortisation 271.353.973.908.06 4.60% First 4 years-10% and 7% thereafter Particulars Discount rate Salary escalation rate b) Defined Contribution Plan: During the year.036.47 40.99 (32.93 38. 2011 237.134.381.07 Business Segments Mobility LD PI Elimination Total 85 . Mobility Services: providing GSM based mobile and related telephony services.44 155.04 34.09 12.287.919.36 192. 2011 7.36 24. 2010 184.878.16 155.11 11.61 718.74 192.53 414.878.502.968.135.41 153.126.964.900.459.36 5.939.596.90 24.032. the Company has recognised the following amounts in the Profit and Loss account: ` Mn Particulars For the year ended March 31.596.502.099.51 19. Primary Segment: The Group operates in three business segments: a) b) c) 2. Secondary Segment: The Group caters only to the needs of Indian market representing a singular economic environment with similar risks and rewards and hence there are no reportable geographical segments.90 9.032.833.65 23.05 19.39 179.77) (66.007.76 24. Long Distance (LD): providing national and international long distance services.74 93.987.77) (66.16 13.38) (32.459.026.04 (66.502.111.39 Employers’ contribution to Provident & Pension Fund Employers’ contribution to Superannuation Fund 11.52 8.933.94 176.85 For the year ended March 31.77) (66.28 23.59 981.400.

459.539.681.89 16. Related Party Transactions As per Accounting Standard.787.636.482.81 38.54 202.482. Sanjeev Aga. TMI India Ltd.25 131.88) (37.10 Elimination Total 86 .949.08 11.88) (37.214.857.04 25.94 1.768.60 PI 677.838.857. Limited (Birla TMT) Entities having significant Influence TMI Mauritius Ltd. List of Related Parties: Promoters Hindalco Industries Limited (Hindalco) Grasim Industries Limited (Grasim) Aditya Birla Nuvo Limited (ABNL) Birla TMT Holdings Pvt. Akshaya Moondra.33 131.298.33 202.018.810.804.81) (21.76 14.89 11.787.36 118. 2010: ` Mn Particulars Revenue External Revenue Inter-segment Revenue Total Revenue Segment Result Add: Unallocated Income Interest & financing charges (Net) Profit before Tax Provision for Tax (Net) Profit after Tax Segment Assets Unallocated Corporate Assets Total Assets Segment Liabilities Unallocated Corporate Liabilities Total Liabilities Capital Expenditure Depreciation & Amortisation 12.03 16.839.29 (21.239.415.53 9.731.949.964.57 12.21 LD 858.12 9.33 519.146.23 2.018.987.190.85 11. (TMI) Axiata Group Berhad Key Management Personnel Mr.40 4.85 7.88) 124.681.25 30.22 10.71 124.298. CFO Business Segments Mobility 123.398.46 5.41 8.04 12.18 on “Related Party Disclosures”.10 97.753.01 7. related parties of the Company are disclosed below: A.58 121.005.768.955.79 235.150.59 3.45 1.16 7.88) (37.72 20.515.414.90 25.804.IDEA CELLULAR LIMITED Primary Business Information (Business Segments) for the year ended March 31.57 27.138.872.116.149.931. MD Mr.08 16.39 207.76 124.01 12.51 1.298.298.251.81) (37.

47 (1.03 (-) 0.Annual Report 2010-11 B.37) TMI KMP 29.800.31 (1.656.13) 7. 2010) C. The Company has entered into non-cancellable operating leases for offices switches and cell sites for periods ranging from 36 months to 240 months. Outstanding as on March 31.42 (20.379.66 (0.511. accumulated depreciation and depreciation expense of the assets given on IRU basis is not separately identifiable and hence not disclosed. The future lease payments in respect of the above are as follows: ` Mn Particulars Not later than one year 13.818.85) 0.74 (-) 0.51) Promoter Grasim ABNL 26. For the current year.87) KMP 0.65) 5. 2010) Operating Lease: As a Lessor The Company has leased under operating lease arrangements certain Optical Fibre Cables (OFC) on Indefeasible Rights of Use (“IRU”) basis.41 (0.36 (21.889.43 (0.06 (41.00 (0.15) (0.38 (0.32 Mn (Previous year ` 14.37 (0.63) 0.64 (16.33 (7.60 (-) 21.57) 0. total minimum lease payments amounting to ` 24.51*) Minimum lease payments (Figures in bracket are as of March 31.28 Mn) is charged to Profit & Loss Account.57 (0.03 (72. 2010) 13.82) 2.01) (1. 2011: ` Mn Particulars Hindalco Remuneration payable Accounts receivable (Figures in bracket are as of March 31.580. Transactions with Related Parties: ` Mn Particulars Hindalco Remuneration Purchase of fixed assets Sale of fixed assets Purchase of service / goods Sale of service / goods Advances given Expense incurred by Company on behalf of Expenses incurred on Company’s behalf by Issue of shares * Shares issued pursuant to amalgamation of Spice Communications Limited (Figures in bracket are for the year ended March 31.33) Promoters Grasim ABNL 90. 87 .75) 0.98) 0.50) (0.932. the gross block.73) 0.29) Later than five years 35.31 (0.42 (12.58) 7.422.09) Later than one year but not later than five years 43.

44 170.989.19 97.099. 15.142. 2010 10/9.92 4.06 88 .300. 2011.883.952 3.987.64 3.357.539. 2010) 14.21 788. the Company has deferred tax liability of ` 9.792.103 2. company had entered into a composite IT outsourcing agreement wherein fixed assets and services related to IT has been supplied by the vendor.02 9. Correspondingly.18 Mn towards the supply of fixed assets during the year stands outstanding and will be paid during financial year 2011-12.357.307 2.88 674.356.78 9.258.57 2.53 (5. During the financial year 2007-08.64 Mn as under: ` Mn Particulars Deferred Tax Liability: Depreciation and Amortisation Others Total Deferred Tax Liability Deferred Tax Asset: Brought forward loss Provision for doubtful debts Expenses allowable on payment basis Others Total Deferred Tax Asset Net Deferred Tax Liability 4.39 9.195.86) Later than year but not later than five years 67.59 As on March 31.45 Mn (Previous year ` 17.85 Mn) in respect of such leases has been recognized in the profit and loss account during the current year.115. an amount of ` 1.792.539.97 Mn and deferred tax asset of ` 6.72 For the year ended March 31.797 3.07 8.230. 2011 10/8.59 (88.00) Minimum lease payments (Figures in bracket are as of March 31.220.108.39 455. such assets are recorded at fair value of these assets at the time of receipt and depreciated on the stated useful life applicable to similar assets of the company.38 142.IDEA CELLULAR LIMITED Rental income of ` 56.39 (28. Future lease rentals in respect of the above are as follows: ` Mn Particulars Not later than one year 39.260.318.276 3.39 3.934.676 3.97 6. Such fixed assets received have been accounted for as a finance lease.987.72 8.07 3.33 3.258.21 6. Basic & Diluted Earnings Per Share: Particulars Nominal value of Equity Shares (`) Profit after Tax (` Mn) Profit attributable to equity shareholders (` Mn) Weighted average number of equity shares outstanding during the year Basic Earnings Per Share (`) Dilutive effect on weighted average number of equity Shares outstanding during the year Weighted average number of diluted equity shares Diluted Earnings Per Share (`) 16. 2011.32 590.07 7.309.84 131.20 6. Deferred Tax: As of March 31.281. As at 31st March. 2011 As on March 31. 2010 For the year ended March 31.36) Later than five years 0.599.

Annual Report 2010-11 17.784.40 377.245.96 3.52 15. 2011 and its percentage holding is given below: Name of the Joint Venture Percentage holding As on March 31.04 For the year ended March 31.01 154. 2010 Revenues Operating Costs EBIDTA Finance Cost Depreciation & Amortisation PBT Taxes PAT Contingent Liability Capital Commitment * Since Spice amalgamated into the company effective 1st March 2010. P&L figures for the year ended 31st March 2010 includes 41.22 ` Mn Particulars For the year ended March 31.706.172. 2010 16.481.979. 2011 As on March 31. The Company has the following joint ventures as on 31st March.09% of Spice P&L from 1st April 2009 to 28th February 2010. liabilities.39 1.78 6. 2011 Indus Towers Limited (Indus) 16.77 609.21 5.80 2.84 992.68 15. 2010* 13.038.644. income.72 922.15 18.60 840.401.460.56 5.06) 32.276.53 10.94 17.00% As on March 31.57 1.07 4.794.60) (759.534.51 1.00 5.298.475.15 As on March 31.10 422.942.66) (10.46 6.07 159.87 313.00% The proportionate share of assets.00 2. 2011 11.23 (769. contingent liabilities and capital commitment of the above joint venture companies included in these consolidated financial statements are given below: ` Mn Particulars Assets Net Block (including CWIP) Investment Deferred Tax Assets Current Assets Profit and Loss Account Liabilities Reserves & Surplus Loans Deferred Tax Liability Current Liabilities 231. 89 .879.045.42 120.262. expenditure.

63 218.921.651.45) (114.03 87.259.97 73.86 0.19 (458.90 Mn).26 Mn (Previous year ` 16.20) - Capital Reserves Total Assets Total Liabilities Investments other than Investments in subsidiary Turnover Profit/(Loss) before Taxation Provision for Taxation Profit/(Loss) after Taxation Proposed Dividend 19.51 Mn (Previous year ` 234.173. Previous year’s figures have been regrouped / rearranged wherever necessary to conform to the current year grouping and are not comparable with the current period due to the amalgamation of Spice.00 (0.02) 888.Satara & Co Services Services structure Limited Limited Limited Limited 119.14 3.91) 0.43 3.24 48.48 (114. The Movement in the Asset Retirement Obligation is set out as follows: ` Mn Particulars Opening Balance Additional Provision Utilisation / Adjustment * Closing Balance For the year ended March 31.28 2.04) 0.25 39.50 15. Joint venture of the company updated its estimate regarding the cost to be incurred for restoration of sites.61 (0.97 0.19) 1.818.20 For the year ended March 31. which resulted in a decrease in the estimated obligation by ` 441.38 47.34) 0. 20. Information with respect to Subsidiaries as on March 31.83 (1.40 15.IDEA CELLULAR LIMITED 18. 2011 Arun Thiagarajan Director Pankaj Kapdeo Company Secretary Himanshu Kapania Managing Director 90 .21 932.50 102. Had the Joint venture of the company not changed its estimate regarding the cost to be incurred for restoration of sites.50 15.48 233.08 (250.31 (0.50 (5.307.01) 35. the depreciation for the year ended 31st March 2011 would have been higher by ` 27.41 1.74 16.25 73.19 96. 2010 1.56 9.188.72 (2.10) 1.45) 0. 2011: ` Mn Particulars Aditya Birla Idea Cellular Idea Cellular Idea Cellular Swinder Idea Mobile Telecom Services InfraTowers Singh Commerce Limited Limited structure Infra.72 438.37 Mn).36 1. 2011 1.870.05 336.20) (0.77 15.561.76 541.26 249.03 * During the year ended 31st March 2011.04) (0.74 1.15 0. For and on behalf of the Board Gian Prakash Gupta Director Akshaya Moondra Chief Financial Officer Place: Mumbai Date: July 29.259.

02 9.420.28 1.83 (941.73) (645.86 2.025.52 18.35 8.41) (7.43 1.83 25.123.00 (82.768.28 5.327.323.02) (41.45 38.13) (3.136.452.906.31) (122.31 2.778.77 282.159.86 150.514.32 (558.288.472.501.95 (3.14) 247.07 9.576. 2011 ` Mn For the year ended March 31.73) 445.06) 25.814.48 10.03) 50.21) 957.167.Annual Report 2010-11 Consolidated Cash Flow Statement for the year ended March 31.92 29.39 For the year ended March 31.036. 2011 A) Cash Flow from Operating Activities Net Profit after Tax Adjustments For Depreciation Amortisation of Intangible assets Interest Charge Profit on sale of Current Investment Provision for Bad & Doubtful Debts/Advances Employee Stock Option Cost Provision for Gratuity and Leave Encashment Provision for Current Tax MAT Credit entitlement Provision for Deferred Tax Liability no longer required written back Interest Income (Profit)/Loss on sale of Fixed Assets/ Assets Discarded Operating Profit before Working Capital Changes Adjustments for changes in Working Capital (Increase)/Decrease in Sundry Debtors (Increase)/Decrease in Inventories (Increase)/Decrease in Other Current Assets (Increase)/Decrease in Loans and Advances Increase /(Decrease) in Current Liabilities Cash Generated from Operations Tax Paid (including Current Tax & TDS) Net Cash from Operating Activities B) Cash Flow from Investing Activities Purchase of Fixed Assets & Intangible Assets (including CWIP) Proceeds from Sale of Fixed Assets Sale/ (purchase) of Other Investments (Net) Interest Received Net Cash from/(used in) Investing Activities (85.47 (886.488.96 35.987.531.36) (1.536.41 (1.27 15.43 54.22 (2.18 (29.25) 106.06 1.34) 27.92 (1.79 6.83 2.520.93) 1.55 5.539.83) 1.802.037.84) (1. 2010 91 .555.87) (276.732.79 (472.21 1.137.95 21.599.183.710.504.31) 42.73) 271.380.53) (579.91 80.01 (2.204.347.580.40) 575.272.09) (4.34 232.711.

In terms of our report attached For Deloitte Haskins & Sells Chartered Accountants For and on behalf of the Board Hemant M.54 2.85 141. 2010 The above cash flow statement has been prepared under the indirect method as set out in Accounting Standard 3 on Cash Flow Statement Previous year’s figures have been rearranged / regrouped wherever necessary. 2011 C) Cash Flow from Financing Activities Proceeds from issue of Share Capital Proceeds from Long Term borrowings Repayment of Long Term Borrowings Proceeds from Short Term Loan Repayment of Short Term Loan Interest Paid Net Cash from/(used in) Financing Activities Net Increase/(Decrease) in Cash and Cash Equivalent Cash and Cash Equivalent at the Beginning Add: Cash and Cash Equivalents on amalgamation of Spice Communications Limited Cash and Cash Equivalent at the end Notes to Cash flow Statement for the year ended 31st March 2011 1.44 2.899.454. 2011 ` Mn For the year ended March 31.55 1.44 23.00 (15.677.28 4. Joshi Partner Membership No.on Current Accounts .on Deposit Accounts 390.045.41 14.59 4.863.10) (24.: 38019 Place: Mumbai Date: July 29.05) 30.255.85 4.76 138.96 156.173.94 2.226. Cash and Cash Equivalent includes Cash and Cheques on Hand Balances with Scheduled Banks .078.47) (28.577.57 152.899.737.577.36 38.573.531.000.IDEA CELLULAR LIMITED Consolidated Cash Flow Statement for the year ended March 31.85 For the year ended March 31.309.59 2.91) 29.919.00) (8. 3.80) 33. 2011 Gian Prakash Gupta Director Arun Thiagarajan Director Himanshu Kapania Managing Director Akshaya Moondra Chief Financial Officer Pankaj Kapdeo Company Secretary 92 .804.27) (9.899.69 1.010.121.02 (12.77) (15.29 (13. 1.

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