Good afternoon, ladies and gentlemen, I'm Radhika, the moderator for this conference. Welcome to the Bharti Infratel Limited First Quarter Ended June 30th, 2019 Earnings Call. For the duration of the presentation, all participant lines will be in the listen-only mode. After the presentation, the question-and-answer session will be conducted for all the participants on this call. In case of a natural disaster, the conference call will be culminated post an announcement. Present with us on the call today, is the Senior Leadership team of Bharti Infratel Limited.
Before I hand over the call, I must remind you that the overview and discussions today may include certain forward-looking statements that must reviewed in conjunction with the risks that we face.
I'll now hand over the call to our first speaker of the day, Mr. Akhil Gupta. Thank you, and over to you Mr.Gupta.
Thank you very much, and a warm welcome to all of you and thanks for joining us on the earning call of Bharti Infratel for the first quarter ended June 30, 2019. I think, before I talk about the quarter and the key developments, let me quickly update you on the merger process with Indus Towers.
As on date, we have received all the permissions, including the final NCLT order. We've only now await the approval for enhancement of Foreign Direct Investment limit from BOP. We do expect that overall, we should complete the merger in all respect within August 2019. A major development for us for the quarter like, for all the Indian companies has been the change in the accounting policy and financial reporting. We have adopted the new accounting standard Ind AS 116 on leases from April 1, 2019. Most of you would be familiar in IFRS 16, and this standard replicates a global standard. This new standard primarily affects us on two counts: first is on the revenues, where the rental revenues, which we receive from our customers will be straight lined over the remaining period of the contract. And the second is on the cost side, where the rentals that -- with [Indecipherable] landlords will now be treated similar to the financial leases.
We have adopted, what's called the modified retrospective method, the prime [Phonetic] business standard and we believe that has been done by most of the large corporates in India. This approach does not require restatement of previous periods with respect to these standards, however, maintaining the highest level of reporting standards and transparency, we have made various disclosures in what we report under section B to provide a like-to-like comparison with the last year. I will request our CFO, Bala to give us short of that later on specifics of the standards for a better understanding.
Moving on to the developments on the business side. The telecom industry in India clearly seems to be stabilizing. After a very rocking period which I've seen adjusted gross revenues decline by over 30% between financial year '16 and '19. This has been despite
Chief Financial Officer
Devender Singh Rawat
Managing Director and Chief Executive Officer
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