CMYK

IDEA CELLULAR SERVICES LIMITED

ANNUAL REPORT 2009-10

IDEA CELLULAR SERVICES LIMITED

Directors’ Report
Dear Shareholders,
Your Directors have pleasure in presenting the Third Annual
Report together with the Audited Accounts of your Company
for the financial year ended March 31, 2010.
• in the preparation of the Annual Accounts, the
applicable Accounting Standards have been followed
alongwith proper explanation relating to material
departures, if any;

Financial Results • the accounting policies selected have been applied

consistently and judgments and estimates are made
The financial results of the operations of your Company for the that are reasonable and prudent so as to give a true
year 2009-10 are as under: and fair view of the state of affairs of your Company
(Rupees in ’000) as at 31st March, 2010 and of the loss for the year
ended on that date;
Particulars 2009-10 2008-09
• proper and sufficient care has been taken for the
Total Revenue 368,281 239,173
maintenance of adequate accounting records in
Operating Expenses 367,665 235,281 accordance with the provisions of the Companies Act,
Profit / (Loss) before 1956 for safeguarding the assets of the Company and
Depreciation and Tax 616 3,891 for preventing and detecting fraud and irregularities;
Depreciation 1,055 841 • the Annual Accounts have been prepared on a going
Profit / (Loss) before Tax (439) 3,050 concern basis.
Taxes (215) 2,939
Directors
Profit/ (Loss) after Tax (224) 111
Balance brought forward In accordance with the provisions of the Companies Act, 1956
and Articles of Association of the Company, Mr. A.J.S. Jhala,
from previous year (1,860) (1,972)
Director of your Company, retires by rotation and being eligible,
Balance carried forward (2,085) (1,860) offers himself for re-appointment at the ensuing Annual General
Meeting. Your directors recommend appointment of Mr. Jhala
Overview as a Director of the Company.
Your Company is engaged in providing manpower services in Auditors
the areas of the subscriber acquisition and servicing required
by the mobility circles of the Idea Cellular Limited, the Holding M/s. Deloitte Haskins & Sells, Chartered Accountants retire as
Company. During the year under review your Company recorded the Statutory Auditors of the Company at the conclusion of the
total revenue of Rs. 368,281 thousand against Rs. 239,173 ensuing Annul General Meeting. The Statutory Auditors have
thousand in the previous year. The Company incurred a Net confirmed their eligibility and willingness to accept the office
Loss of Rs. 224 thousand for the financial year ended March 31, on re-appointment. The necessary resolution seeking your
2010 as against a Net Profit of Rs. 111 thousand in the previous approval for re-appointment has been incorporated in the Notice
year. convening the Annual General Meeting.
Dividend Conservation of Energy, Technology Absorption, Foreign
As your Company is yet to recoup the accumulated losses, your Exchange Earnings & Outgo
Directors do not recommend any dividend for the year. As the Company is not engaged in any manufacturing activity,
Deposits particulars required to be disclosed under the Companies
(Disclosure of Particulars in the Report of the Board of Directors)
Your Company has not accepted any fixed deposits and as such, Rules, 1988 pursuant to section 217(1)(e) with regard to
no amount of principal or interest was outstanding as on the Conservation of Energy and Absorption of Technology are not
Balance Sheet date. applicable to your Company.
Personnel There was no earning or outgo in foreign exchange during the
As on March 31, 2010, the Company had 2,290 employees on period under review.
its rolls to handle the subscriber acquisition and servicing Acknowledgement
required by Idea Cellular Limited, the Holding Company in rural
areas. The Company has registered itself under the various Your Directors sincerely appreciate the strenuous efforts of the
statutes across all states to carry out its activities. employees towards the excellent performance of the Company.
Directors also wish to place on record their sincere appreciation
Particulars of Employees
for the continued co-operation and support provided by the
During the year under review there were no employees Bankers, Central and State Government Departments and Local
employed by the Company to whom the provisions of Section Authorities.
217(2A) of the Companies Act, 1956 read with Companies
(Particular of Employees) Rules, 1975 are applicable for the
financial year 2009-10. For and on behalf of the Board
Directors’ Responsibility Statement
Pursuant to Section 217(2AA) of the Companies Act, 1956, your Place: Mumbai Sanjeev Aga M. R. Prasanna
Directors confirm that: Date: April 29, 2010 Director Director

ANNUAL REPORT 2009-2010 1

IDEA CELLULAR SERVICES LIMITED
Auditors’ Report
To the Members of
Idea Cellular Services Limited
1. We have audited the attached Balance Sheet of Idea
Cellular Services Limited (“the Company”) as at March 31,
2010, the Profit and Loss Account and the Cash Flow
Statement of the Company for the year ended on that date,
both annexed thereto (together referred to as ‘financial
statements’). These financial statements are the
responsibility of the Company’s Management. Our
responsibility is to express an opinion on these financial
statements based on our audit.
2. We conducted our audit in accordance with the auditing
standards generally accepted in India. Those Standards
require that we plan and perform the audit to obtain
reasonable assurance about whether the financial
statements are free of material misstatements. An audit
includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements.
An audit also includes assessing the accounting principles
used and the significant estimates made by the
Management, as well as evaluating the overall financial
statement presentation. We believe that our audit provides
a reasonable basis for our opinion.
3. As required by the Companies (Auditor’s Report) Order,
2003, (‘the said Order’ / ‘CARO’) issued by the Central
Government in terms of Section 227(4A) of the Companies
Act, 1956, we enclose in the Annexure a statement on the
matters specified in the paragraphs 4 and 5 of the said
Order.
4. Further to our comments in the Annexure referred to in
paragraph 3 above, 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;
(b) in our opinion, 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;
(c) the Balance Sheet, the Profit and Loss Account and the
Cash Flow Statement dealt with by this report are in
agreement with the books of account;
2 ANNUAL REPORT 2009-2010
(d) in our opinion, the Balance Sheet, 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, 1956;
(e) in our opinion and to the best of our information and
according to the explanations given to us, the said
financial statements give the information required by
the Companies Act, 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, of the state of
affairs of the Company as at March 31, 2010;
(ii) in the case of the Profit and Loss Account, of the
loss of the Company for the year ended on that
date and
(iii) in the case of the Cash Flow Statement, of the
cash flows of the Company for the year ended on
that date.
5. On the basis of the written representations received from
the Directors as on March 31, 2010 taken on record by the
Board of Directors, none of the Directors is disqualified
as on 31 st March, 2010 from being appointed as a
director in terms of Section 274(1) (g) of the Companies
Act, 1956.
For Deloitte Haskins & Sells
Chartered Accountants
(Registration No. 117 366W)
Hemant M. Joshi
Partner
Membership No: 38019
Place : Mumbai
Date : April 29, 2010
IDEA CELLULAR SERVICES LIMITED
Annexure to the Auditors’ Report
(Referred to in paragraph 3 of our report of even date)
1. Having regard to the nature of the Company’s business/
activities/result, clauses (ii), (x), (xi), (xiii), (xiv), (xv), (xvi),
(xviii), (xix) and (xx) of CARO are not applicable.
2. In respect of its fixed assets:
a) The Company has maintained proper records showing
full particulars, including quantitative details and
situation of the fixed assets.
b) The fixed assets were physically verified during the
year by the Management in accordance with a regular
programme of verification which, in our opinion,
provides for physical verification of all the fixed assets
at reasonable intervals. According to the information
and explanation given to us, no material discrepancies
were noticed on such verification.
c) The Company has not disposed off any fixed assets
during the year.
3. The Company has neither granted nor taken any loans,
secured or unsecured, to/from companies, firms or other
parties listed in the Register maintained under Section 301
of the Companies Act, 1956.
4. In our opinion and according to the information and
explanations given to us, there is an adequate internal
control system commensurate with the size of the Company
and the nature of its business with regard to sale of services.
During the current year, the Company had no transactions
of purchase of fixed assets, inventory and sale of goods.
During the course of our audit, we have not observed any
major weaknesses in such internal control systems.
5. In our opinion and according to the information and
explanations given to us, there were no contracts,
particulars of which needed to be entered in the register
maintained under section 301 of the Companies Act, 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.
6. According to the information and explanations given to us,
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, 1956 and the rules framed there under are
applicable.
7. In our opinion, the Company has an adequate internal audit
system commensurate with the size and naure of its
business.
8. To the best of our knowledge and according to the
information and explanations given to us, the Central
ANNUAL REPORT 2009-2010
Government has not prescribed maintenance of cost records
under section 209(1)(d) of the Companies Act, 1956 for
any of the activities of the Company and accordingly, the
provisions of paragraph 4 (viii) of the said order are not
applicable.
9. According to the information and explanations given to us
in respect of statutory dues:
a) The Company has generally been regular in depositing
the undisputed statutory dues including Provident
Fund, Employees’ State Insurance, Income-tax, Service
Tax, Cess and other material statutory dues applicable
to it with the appropriate authorities. As explained to
us, the Company did not have any dues on account of
Investor Education and Protection Fund, Sales Tax,
Wealth Tax, Custom Duty, Excise Duty and Cess.
b) There were no undisputed amount payable in respect of
Income-tax, Cess and other material statutory dues in
arrears as at March 31, 2010 for a period of more than
six months from the date they became payable.
c) There are no dues of Income-tax and Service Tax which
have not been deposited on account of any dispute.
10. According to the information and explanations given to us,
the Company has not granted loans and advances on the
basis of security by way of pledge of shares, debentures
and other securities.
11. In our opinion and according to the information and
explanations given to us and on an overall examination of
the Balance Sheet, we report that funds raised on short-
term basis have not been used during the year for long-
term investment.
12. To the best of our knowledge and according to the
information and explanations given to us, no fraud by the
Company and no material fraud on the Company has been
noticed or reported during the year.
For Deloitte Haskins & Sells
Chartered Accountants
(Registration No. 117 366W)
Hemant M. Joshi
Partner
Membership No: 38019
Place : Mumbai
Date : April 29, 2010
3
IDEA CELLULAR SERVICES LIMITED

Balance Sheet as at March 31, 2010

(Rupees in ‘000)

As at As at
Schedules March 31, 2010 March 31, 2009
SOURCES OF FUNDS
Shareholders’ Funds
Share Capital 1 500 500
500 500
TOTAL 500 500

APPLICATION OF FUNDS
Fixed Assets
Gross Block (At Cost) 2 3,906 3,906
Less: Depreciation 1,988 933
Net Block 1,917 2,972
Capital Work-in-Progress - -
1,917 2,972
Deferred Tax Assets 3,998 3,783
Current Assets, Loans and Advances
Current Assets
Sundry Debtors 3 7,475 13,296
Cash and Bank Balances 4 304 265
Loans and Advances 5 15,726 5,417

23,506 18,977
Less:Current Liabilities and Provisions 6
Current Liabilities 24,778 22,266
Provisions 6,229 4,827
31,007 27,094
Net Current Assets (7,501) (8,117)
Profit and Loss Account 2,085 1,860
TOTAL 500 500

Significant Accounting Policies and Notes to Accounts 10

The Schedules referred to above form an integral part of Accounts

In terms of our report attached

For Deloitte Haskins & Sells For and on behalf of the Board
Chartered Accountants

Hemant M. Joshi Sanjeev Aga M. R. Prasanna

Partner Director Director
Membership No.: 38019
Place: Mumbai
Date: April 29, 2010
4 ANNUAL REPORT 2009-2010
IDEA CELLULAR SERVICES LIMITED

Profit and Loss Account for the year ended March 31, 2010
(Rupees in ‘000)
Schedules For the year ended For the year ended
March 31, 2010 March 31, 2009
INCOME

Service Revenue 367,379 235,350

Other Income 7 902 3,822

TOTAL 368,281 239,173

OPERATING EXPENDITURE

Personnel Expenditure 8 313,975 201,867

Administration & other Expenses 9 53,690 33,415

367,665 235,281

PROFIT / (LOSS) BEFORE DEPRECIATION AND TAXES 616 3,891

Depreciation 2 1,055 841

PROFIT / (LOSS) BEFORE TAX (439) 3,050

Provision for taxation - Current - 3,730

- Deferred (215) (2,953)

- Fringe Benefit tax - 2,162

PROFIT / (LOSS) AFTER TAX (224) 111

Balance brought forward from previous year (1,860) (1,972)
BALANCE CARRIED FORWARD TO BALANCE SHEET (2,085) (1,860)
Basic and Diluted Earning Per Share (Refer Note B7 to Schedule 10) (4.48) 2.23

Significant Accounting Policies and Notes to Accounts 10

The Schedules referred to above form an integral part of Accounts

In terms of our report attached

For Deloitte Haskins & Sells For and on behalf of the Board
Chartered Accountants

Hemant M. Joshi Sanjeev Aga M. R. Prasanna

Partner Director Director
Membership No.: 38019
Place: Mumbai
Date: April 29, 2010

ANNUAL REPORT 2009-2010 5

IDEA CELLULAR SERVICES LIMITED

Schedules forming part of the Accounts

(Rupees in ‘000)

As at As at
March 31, 2010 March 31, 2009
SCHEDULE 1
SHARE CAPITAL
Authorised
50,000 Equity Shares of Rs. 10/- each 500 500

500 500

Issued, Subscribed and Paid-Up

Equity Share Capital
50000 Equity Shares of Rs.10/- Each Fully Paid up (The entire Share Capital 500 500
is held by Holding Company-Idea Cellular Limited and it’s nominees.)
(Previous Year 50000 Equity Shares of Rs.10/- Each Fully Paid up )

500 500

SCHEDULE 2 - FIXED ASSETS (Rupees in ‘000)

Gross Block Depreciation Net Block

Particulars As at Additions Sale/Adjustments As at As at For the Sale/Adjustments As at As at As at
1-Apr-2009 during the year during the year 31-Mar-2010 1-Apr-2009 year during the year 31-Mar-2010 31-Mar-2010 31-Mar-2009

Office Equipment 3,906 - - 3,906 933 1,055 - 1,988 1,917 2,972

TOTAL 3,906 - - 3,906 933 1,055 - 1,988 1,917 2,972

Previous Year 1,981 1,925 - 3,906 92 841 - 933 2,972

(Rupees in ‘000)

As at As at
March 31, 2010 March 31, 2009
SCHEDULE 3
SUNDRY DEBTORS
Debts outstanding for over six months
Unsecured - Considered good - -
- Considered doubtful - -

- -

Other Debts
Unsecured - Considered good 7,475 13,296
- Considered doubtful - -

7,475 13,296
Less: Provision for doubtful debts - -

Total 7,475 13,296

6 ANNUAL REPORT 2009-2010

IDEA CELLULAR SERVICES LIMITED

Schedules forming part of the Accounts

(Rupees in ‘000)

As at As at
March 31, 2010 March 31, 2009
SCHEDULE 4
CASH AND BANK BALANCES
Cash and Cheques on Hand 5 5
Balances with Scheduled Banks
- on Current Accounts 299 259

304 259

SCHEDULE 5
LOANS AND ADVANCES
(Unsecured, considered good unless otherwise stated)
Advances recoverable in cash or kind or for value to be received 2,846 1,447

2,846 1,447

Deposits and Balances with Govt. Authorities 187 97

Advance Income Tax (Net of Provision Rs. 3,730/-) (Previous Year Rs.3,730/-) 12,602 3,781
Advance FBT (Net of Provision Rs. 2,148/-) (Previous Year Rs.2,162/-) 92 92

15,726 5,417
SCHEDULE 6
CURRENT LIABILITIES AND PROVISIONS
CURRENT LIABILITIES
Sundry Creditors (Refer Note B2 to Schedule 10) 21,199 19,191
Other Liabilities 3,579 3,075
24,778 22,266
Provisions
Gratuity - 1,438
Leave Encashment 6,229 3,389
Provision for Fringe Benefit Tax - -

6,229 4,827
31,007 27,094

(Rupees in ‘000)
For the For the
year ended year ended
March 31, 2010 March 31, 2009
SCHEDULE 7
OTHER INCOME
Liabilities/Provisions no longer required written back - 3,533
Miscellaneous Receipts-(Notice Pay Recovery) 902 289

902 3,822

ANNUAL REPORT 2009-2010 7

IDEA CELLULAR SERVICES LIMITED

Schedules forming part of the Accounts

(Rupees in ‘000)
For the For the
year ended year ended
March 31, 2010 March 31, 2009
SCHEDULE 8
PERSONNEL EXPENDITURE
Salaries and Allowances etc. 288,367 166,756
Contribution to Provident and Other Funds 21,443 16,631
Staff Welfare 4,104 2,337
Recruitment and Training 61 16,143

313,975 201,867

SCHEDULE 9
ADMINISTRATION & OTHER EXPENSES
Rates and Taxes 38 37
Printing and Stationery 90 40
Communication Expenses 21 15
Travelling and Conveyance 51,883 32,003
Bank Charges 66 58
Legal and Professional Charges 1,514 1,167
Audit Fees (Refer note B 1 to schedule 10) 50 75
Miscellaneous expenses 28 19

53,690 33,415

8 ANNUAL REPORT 2009-2010

IDEA CELLULAR SERVICES LIMITED
Schedules forming part of the Accounts
SCHEDULE 10
A. SIGNIFICANT ACCOUNTING POLICIES
1. Basis of Preparation of Financial Statements:
The Financial Statements have been prepared under
the historical cost convention on accrual basis. The
mandatory applicable Accounting Standards in India
and the provisions of the Companies Act, 1956 have
been followed in preparation of these Financial
Statements.
2. Fixed Assets:
Fixed Assets are stated at cost of acquisition and
installation less accumulated depreciation. Cost is
inclusive of freight, duties, levies and any directly
attributable cost of bringing the assets to their working
condition for intended use.
3. Depreciation:
Depreciation on Fixed assets is provided on straight-
line method on the basis of estimated useful economic
lives as given below: -
Tangible Assets Years
Office Equipments 3-5
4. Taxation:
a) Current Tax: Provision for current income tax is
made on the taxable income using the applicable
tax rates and tax laws.
b) 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.
Deferred tax assets are not recognised unless there
is virtual certainty with respect to the reversal of
the same in future years.
5. Employee 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 by Projected unit credit
method.
Provision in accounts for leave encashment
(compensated absence) to employees is based on
actuarial valuation done by Projected accrued benefit
method at the period end.
6. Revenue Recognition:
Revenue on account of Manpower Services rendered
is recognised as services are rendered based on
agreements / arrangements.
ANNUAL REPORT 2009-2010
7. Investments:
Current Investments are stated at lower of cost or fair
value in respect of each separate investment.
Long-term investments are stated at cost less provision
for diminution in value other than temporary, if any.
8. 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, which necessarily
take a substantial period of time to get ready for their
intended use. Such costs are capitalized with the fixed
assets.
9. Earnings Per Share (EPS):
The earnings considered in ascertaining the Company’s
EPS comprises the net profit after tax, after reducing
dividend on Cumulative Preference Shares for the
Period (irrespective of whether declared, paid or not),
as per Accounting Standard 20 on “Earning Per Share”,
issued by the Institute of Chartered Accountants of
India. The number of shares used in computing basic
EPS is the weighted average number of shares
outstanding during the Period. The diluted EPS is
calculated on the same basis as basic EPS, after
adjusting for the effects of potential dilutive equity
shares unless the effect of the potential dilutive equity
shares is anti-dilutive.
10. Contingent Liability:
Disclosures for contingent liabilities are considered to
the extent of notices/demands received by the
Company.
11. Impairment of Assets:
Assets that are subject to impairment are reviewed
for impairment whenever events or changes in
circumstances indicate that the carrying amount may
not be recoverable. An impairment loss is recognised
in accordance with AS-28 “Impairment of Assets” for
the amount by which the assets carrying amount
exceeds its recoverable amount. The recoverable
amount is higher of the assets fair value less costs to
sell and value in use. For the purpose of impairment,
assets are grouped at the lowest levels for which there
are separately identified cash flows.
12. Provisions:
Provisions are recognised when the Company has a
present obligation as a result of past events; it is more
likely that an outflow of resources will be required to
settle the obligation; and the amount has been reliably
estimated.
9
IDEA CELLULAR SERVICES LIMITED

Schedules forming part of the Accounts

Schedule 10
B. Notes to Accounts
1 Auditor’s Remuneration (exclusive of service tax):
(Rupees in ‘000)
Particulars For the year For the year
ended ended
March 31, 2010 March 31, 2009
Statutory Audit Fees 50 75
2 There is no outstanding amount due to Micro, Small and Medium Enterprises defined under The Micro, Small, Medium
Enterprises Development Act, 2006 as identified by management and relied upon by the auditors.
3 Details of Employee Benefits as required by the Accounting Standard 15 (Revised) Employee benefits are as under:
a) Defined Benefit Plan: The Company provides for its liability towards gratuity as per the actuarial valuation. The present
value of the accrued gratuity minus fund value is provided in the books of accounts.
(Rupees in ‘000)
Sr. No. Particulars As at As at
March 31, 2010 March 31, 2009
1 Assumptions
Discount Rate 8.00% 7.00%
Salary Escalation 5.00% 6.00%
2 Table showing changes in present value of obligations
Present value of obligations as at beginning of the year 1,076
Interest cost 86 70
Current Service cost 1,645 908
Benefits paid 12
Actuarial Losses / (Gain) 55 460
Present value of obligations at end of the year 2,852 1,438
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 129 -
Contributions 3,329 -
Benefits paid 12 -
Actuarial Gain on Plan assets - -
Fair value of plan assets at end of the year 3,446 -
4 Table showing fair value of plan assets
Fair value of plan assets at beginning of the year - -
Actual return on plan assets 129 -
Contributions 3,329 -
Benefits paid 12 -
Fair value of plan assets at end of the year 3,445 -
Funded status 594 -
Excess of Actual over estimate return on plan assets - -

10 ANNUAL REPORT 2009-2010

IDEA CELLULAR SERVICES LIMITED

Schedules forming part of the Accounts

(Rupees in ‘000)
Sr. No. Particulars As at As at
March 31, 2010 March 31, 2009
5 Actuarial Gain/(Loss) recognized
Actuarial Gain/(Loss) for the year-Obligation (55) -
Actuarial Gain for the year-Plan assets - -
Actuarial Gain/(Loss) for the year (55) -
Actuarial Gain/(Loss) recognized in the year (55) -
6 The amounts to be recognized in Balance Sheet and
statement of Profit and Loss
Present value of obligations as at end of the year 2,852 1,438
Fair value on plan assets as at the end of the year 3,445 -
Funded status 594 -
Net Asset / (liability) recognized in Balance Sheet 594 1,438
7 Expenses Recognized in statement of Profit & Loss
Current Service cost 1,646 908
Interest cost 86 70
Expected return on plan assets 129 -
Net Actuarial (Loss) / Gains Recognized in the year (55) 460
Expenses recognized in the Statement of Profit & Loss Account 1,658 1,438
8 Investment Details of Plan Assets (% Allocation)
Insurer Managed Funds 100% -

The estimates of future salary increases, considered in actuarial valuation, take account of inflation, seniority, promotion and
other relevant factors, such as supply and demand in the employment market.
b) Defined Contribution Plan : During the year, the Company has recognised the following amounts in the Profit and Loss
account :
(Rupees in ‘000)
Particulars For the year For the year
ended ended
March 31, 2010 March 31, 2009
Employers’ Contribution to Provident Fund 12,746.01 7,920.94
Employers’ Contribution to Superannuation Fund 98.51 118.49

4 Segment Reporting
The Company operates in only one business segment. In the circumstances, segment information required by Accounting
Standard 17, has not been furnished.

ANNUAL REPORT 2009-2010 11

IDEA CELLULAR SERVICES LIMITED

Schedules forming part of the Accounts

5 Related Party Transactions:
a) As per Accounting Standard-18 on “Related Party Disclosure”, the related parties of the Company are disclosed below :
List of related Parties:
Promoters:
Hindalco Industries Limited
Grasim Industries Limited
Aditya Birla Nuvo Limited
Birla TMT Holding Pvt. Limited
Holding Company:
Idea Cellular Limited
Fellow Subsidiaries:
Aditya Birla Telecom Limited
Swinder Singh Satara & Co. Limited
Idea Cellular Infrastructure Services Limited
Idea Cellular Towers Infrastructure Limited
Joint Venture of Holding Company:
Spice Communications Limited (up to 28th February 10)
Disclosure in respect of Related Parties:
b) Transctions with Related Parties
During the period ended March 31, 2010 following transactions were carried out with the related parties in the ordinary
course of business:
(Rupees in ‘000)
Nature of Relationship

Particulars Holding Company Fellow Subsidiaries Joint Venture of Holding

Company

Idea Cellular Limited Aditya Birla Telecom Spice Communications

Limited Limited

Sale of Services 341,339 - 26,040

(228,017) (4,303) (3,030)

Outstanding Balance as on March 31, 2010

(Rupees in ‘000)
Holding Company Joint Venture of Holding Company
Particulars
Idea Cellular Limited Spice Communications Limited

Sundry Debtors 7,475 -

(13,296) (-)

Notes:
1. Figures in brackets represent corresponding amount of previous year.
2. No amount in respect of the related parties has been written back/off is provided during the year.
3. Related party relationship have been identified by the Management and relied upon by the Auditor.
12 ANNUAL REPORT 2009-2010
IDEA CELLULAR SERVICES LIMITED

Schedules forming part of the Accounts

6 Deferred Tax
(Rupees in ‘000)
Particulars As at As at
March 31, 2010 March 31, 2009

Deferred Tax Liability:

Depreciation of Fixed Assets 120 259

Total Deferred Tax Liability 120 259

Deferred Tax Asset:

Preliminary Expenses 6 9

Provision for Leave Encashment 2,117 1,152

Provision for Gratuity - 489

Provision for Bonus 1,995 2,392

Total Deferred Tax Asset 4,118 4,042

Net Deferred Tax Asset 3,998 3,783

7 Earnings Per Share is calculated as under:

Particulars As at As at
March 31, 2010 March 31, 2009

Nominal value of Shares (in Rs.) 10 10

Profit / (Loss) as disclosed in Profit & Loss Account (Rs. In ‘000) (224) 111

Weighted average number of equity shares during the year (Nos.) 50,000 50,000

Basic & Diluted Earning per Share (in Rs) (4.48) 2.23

8 Estimated amount of contract remaining to be executed on capital account and not provided for (net of advance) Rs. Nil.
(Previous year Rs. Nil).
9 The Company is in a business of rendering services, information as required pursuant to para 3, 4C, 4D, of part II of Schedule
VI of the Companies Act, 1956 is given to the extent applicable.
10 Previous year’s figures have been regrouped/rearranged wherever necessary to confirm to the current year grouping.

For and on behalf of the Board

Sanjeev Aga M.R. Prasanna

Director Director

Place: Mumbai
Date: April 29, 2010

ANNUAL REPORT 2009-2010 13

IDEA CELLULAR SERVICES LIMITED

Cash Flow Statement for the year ended March 31, 2010
(Rupees in ‘000)
Particulars For the year ended For the year ended
March 31, 2010 March 31, 2009

A. Cash flows from operating activities

Net Profit/(loss) after Tax (224) 111
Adjustments for
Depreciation 1,055 841
Provision for Income Tax - 3,730
Provision for Fringe Benefit Tax - 2,162
Deferred Tax Provision (215) (2,953)
Operating Profit before Working capital changes 616 3,891
Adjustments for
Decrease/ (increase) in Sundry Debtors 5,820 9,615
Decrease/ (increase) in Loans and Advances (1,489) (936)
Increase/ (decrease) in Sundry Creditors 3,913 10,747
8,245 19,425
Cash generated from operations 8,861 23,317
Tax (paid) / Refund (Including FBT & TDS) (8,821) (8,518)
40 14,799
B. Cash flows from Investing activities
Purchase of fixed assets - (3,906)
- (3,906)
C. Cash flows from financing activities
Proceeds from/(Repayment of) Unsecured
Short Term Loan - (10,769)
- (10,769)
Net increase/(decrease) in cash and cash
equivalents (A+B+C) 40 124
Cash and cash equivalents at beginning of the year 265 141
Cash and cash equivalents at the close of the year 304 265
Notes:
1. Cash and Cash Equivalents includes
Cash in hand 5 5
Balances with Scheduled Banks -
- In Current Account 299 304 259 265
2. The above cashflow statement has been prepared under the indirect method as set out in Accounting Standard 3 on cash flow
statement.
3. Previous year’s figures have been rearranged / regrouped wherever necessary.

In terms of our report attached

For Deloitte Haskins & Sells For and on behalf of the Board
Chartered Accountants

Hemant M. Joshi Sanjeev Aga M. R. Prasanna

Partner Director Director
Membership No.: 38019
Place: Mumbai
Date: April 29, 2010

14 ANNUAL REPORT 2009-2010

IDEA CELLULAR SERVICES LIMITED

Balance Sheet Abstract and Company’s General Business Profile

I Registration Details
Registration No. 0 5 1 8 8 1 State Code 0 4

Balance Sheet Date 3 1 0 3 1 0

Date Month Year
II Capital raised during the year (Amount in Rs. Thousands)
Public Issue Rights Issue
N I L N I L
Bonus Issue Private Placement
N I L N I L
III Position of Mobilisation and Deployment of Fund (Amount in Rs. Thousands)
Total Liabilities Total Assets
5 0 0 5 0 0
Source of Funds
Paid up Capital Reserves and Surplus
5 0 0 N I L
Secured Loans Unsecured Loans
N I L N I L
Application of Funds
Net Fixed Assets Investments
1 9 1 7 N I L
Net Current Assets/(Liability) Misc. Expenditure
- 7 5 0 1 N I L
Accumulated Losses
- 2 0 8 5
IV Performance of Company (Amount in Rs. Thousands)
Turnover Total Expenditure
3 6 8 2 8 1 3 6 8 7 2 0
+ - Profit/Loss before tax + - Profit/Loss after tax
 4 3 9  2 2 4
(Please tick appropriate box + for profit, - for loss)
Earnings per share in Rs. Dividend Rate
- 4 . 4 8 0 0
V Generic names of the three principal products/Services of company (as per monetary terms)
Items Code No. N O T A P P L I C A B L E
(ITC Code)
Product M A N P O W E R S E R V I C E S
Description

For and on behalf of the Board

Place: Mumbai Sanjeev Aga M. R. Prasanna

Date: April 29, 2010 Director Director

ANNUAL REPORT 2009-2010 15