Vodafone India company is actually merged with the Idea Cellular for forming the new entity

and named it as Vodafone Idea Limited. It is pan India that has integrated with GSM
operator by offering the 2G, 3G, and 4G+, 4G, and also VoLTE.

Ans 1. The type merger and acquisition used in Vodafone India company is Horizontal
merger / acquisition. This type of the merger is defined as the two companies with the
similar products or services by merging and then expanding their range by lowering the
costs and introducing their integrated services.

Ans 2. Vodafone and Idea have been merged for the strategic response to the important
move towards of Jio. According to the analysts, it used to quote in the different media
reports. As these two companies used to be agreed for merging their operations as per the
swap ratio of 1:1, which means that every Idea used to share with an exchange with their
share in their merger company.
The main reason behind this merger is to tackle for increasing the dominance of the
Reliance Jio in an Indian Telecom sector, which used to result for the brutal price that has
the war, which was between all the telecom companies. At the time merging companies
used to have quite confident regarding the synergy advantages, where the most analysts by
agreeing the Vodafone Idea company that actually holds for the potential importance of the
cost savings. Larger scale as well as elimination of the duplication of the costs, margin that
used to increase by combining an entity that used to become for the largest cellular services
operator.

Ans 3. Conditions behind this merger are:-

1) Merger is the stock deal that is not have been cash buyout. Vodafone used to hold for
45.1% to form the new entity. Idea used to make payment of Rs. 3,874 crores to the
Vodafone company for 4.9% of the corporation.

2) Idea company used to have 26% along with the public. Idea used to have the sole
authority regarding an appointment of the Chairman.

3) Vodafone company used to be 205 million connections as well as Idea has 192 million
connections, which leads to merged entity now has the 400 million connections.

4) The merging company used to have 35% customer market shares and also 41% of
revenue market share.

5) After the merging of the two entities, Vodafone Idea company has become now the
biggest telecom operator in this country India. As they have been increased the customers
and revenue. As the other competitors are have the subscribers like - Airtel have 266 million
subscribers, and Jio has crossed 100 million subscribers.

6) According to the marketshare, as COAI used to say that Airtel used to have 32.82% pie
in order to segment in the month of December, while Vodafone has 25.27% share as well
as 23.52% share, which used to mean for Vodafone Idea company for merging with an
entity with the share of 49%. Mergers in the telecom sector by the new business market that
have not crossed 50%.
7) Vodafone Idea merger used to exclude the operator of British telecom about 42% stake
in Indus towers for joint venture that is between the Vodafone, Idea, and also Airtel.

8) According to Bloomberg Quint report by merging with the unit, which have 1120 MHZ
spectrum that is across along with 5 bands that has biggest holder for the spectrum in the
country.

9) Bharti Airtel chairman that used to have 47th World Economic Forum, which has the
perfect matching of the Vodafone Idea mergers.

10) An analysts used to new entity for forming the better competition over the war of the
new prices.

Explanation:
Ans 4. This merger and acquisition used to make consideration to the shareholders,
stakeholders, customers, competitors, where the two companies used to be merged along
with swap ratio of 1:1. It used to mean that Idea share have been exchanged along with the
new share for merging company. It used to suggest for an operational activities for the
merging the companies. Therefore, an independent valuation of the two corporation that
used to suggest for the business of Vodafone. An assessment used to suggest for the
business for Vodafone India that has amount Rs. 82,800 crore at the time of the business of
Idea that valued to be Rs. 72,200 crore. An analysts, shareholders, stakeholders, and other
users are used to be positive regarding the merger of these two corporation. In long term,
consolidation of the future profit margins that is suggested by an analysts.

Ans 5. Merger used to have the cause for the mergers as well as acquisition for the telecom
companies. As an assets have Telenor India as well as Reliance Communication that has
been thought by the Bharti Airtel. As in prior, Tata Teleservices customers used to have the
start with the migration of Airtel network as per Intra Circle Roaming arrangements. As
different initiatives has taken through the merger entity such as renewal of the price
because of the troublesome entry of the Jio that used cause have the serious imbalance.
Huge number of the customers in India became the fastest growing market as well as
merging of the telecom players along with the health as well as life. Merger used to provide
for supporting an overcoming of the debt for the Idea Cellular as well as Vodafone Idea and
also the large sum of credit that have been infused in joint venture. An impact of the merger
that have been observes in the different service providers as per the quality of the telecom
services, which used to impact the savings, spectrums, and synergies for the rapid growth.
Cost as well as capex synergies that have been creating the two companies that have been
estimated for $10 billion after an integration costs. Major cost as well as capex synergies
that has the network infrastructure, operational efficiencies, service centers, low
maintenance expenses, etc.,. Merger have been decreased with the operation costs that
have incurred regarding the 60% of total cost that aids with an improvement of an quality as
well as performance of services by the corporation.

Vodafone Idea merger have been resulted in the duplication of the resources, which used to
require for job cutting. Combination of the companies that have been laid off the employees
on the large scale. When the major goal or objectives for telecom companies for reducing
the indebtedness through the mergers, then the cut downs that have been expected. As
CEO of Vodafone that has not been laid off, but the analysts used to be predicted for the 5-
10% for labor pool from merger of an entity by asking him to resign. Merger results in
pooling of the vital resources as well as infrastructure that leads the better service quality
and also customer experience, which have the merged company that decreases the
financial challenges of the company as per the investment of the quality of service.

Ans 6. Reporting, accounting and disclosures for the Vodafone-Idea Company in merger
and acquisition for the auditing of the standalone for the financial statements that used to
combine the balance sheet, statement of profit and loss, cash flow statement, statement of
changes in an equity, statement of comprehensive income, etc.,. for the company. As per
the explanations, aforesaid standalone Ind AS financial statements used to give the
information, which used to require through the company act 2013 for the requirement and
also make the true as well as fair view along with the conformity as per the GAAP in India
by loss that includes the comprehensive income for their cash flows.

Opinion based reporting - Here, the company has conducted an audit for the standalone
Accounting Standards as per the standards on an Auditing as per the section 143(10) of
Act, where the responsibilities of the company have the standards by explaining an auditor's
responsibilities regarding an auditing of the standalone financial statements for reporting. As
per the code of ethics, which have been issued through the Institute of Chartered
Accountants of India along with an ethical requirements, which is relevant for an auditing of
the financial statements as per the provision act as well as rules as we have fulfilled for our
ethical responsibilities as per the requirements as well as code of ethics. As we used to
believe with an auditing evidence for obtaining appropriateness, and also sufficient for
providing the audit based opinions on financial statements.