Bharti Infratel Ltd (NSE:BHIN) Q1 2020 Earnings Conference Call Transcript
Jul 25, 2019 • 06:00 am ET
Use Asset represents its present value of future lease payment over the lease term from the commencement of the lease.
Going forward, the Right of Use Asset are amortized over the lease term on straight-lined basis and reflected in the financial under depreciation and amortization. The company has also recognized lease liabilities as on April 1, 2019 on consolidated basis, representing the present value of remaining lease payments from April 1, 2019 to the end of the lease term. Interest is charged on the outstanding lease liabilities at the end of each period. As on April 1, 2019, the company has charged to the retained earnings on amount of INR9,452 million net of tax, being the difference between Lease Liabilities and Right of Use Assets which represents the depreciation on such Right of Use Assets, till March 31, 2019.
Rental expenses paid to landlords will no longer be shown as operating expenses and accordingly EBITDA will be higher on this account.The actual amount towards rentals will be reduced from the lease liabilities. With the above changes the financial statements and related ratios are not comparable with the previous period. For the better understanding and for the benefit of the reader, detailed information has been provided under the Section D.
Thank you. With this, we can open the floor for questions now.