Foreword

I am happy to record that Mr Rhythm Nikhra, a student of 2 nd

Year of B. Tech. from IIT, Delhi has done some interesting
study on Telecom assets management, capitalization and
valuation with change in Technology, New areas of service
and future trends in light of implication of adoption of IFRS
(converged Ind AS) on Indian Telecom Service Providers
(TSPs) Companies.
As an intern, during 8 week he has devoted time in gauging
the telecom sector in general and how fixed assets are being
capitalize while implementing new accounting standard as
focal point of study. If we go through this report, it gives a
fair idea of not only technological trends and changes, which
are happening at a faster pace but also how these changes
are going to affect asset capitalization, depreciation, fair
value assessment and
asset retirement obligations in
adoption of new accounting standards, which are in line with
IFRS.
We have broken down the study mainly in three parts. First
part of study gives you an overview of megatrends in terms
of revenue, new initiatives, data growth, Digital India
platform, bulk clientele and service offering and future
market expectations. In part-B, focus was mainly in mega
trends in technology and how sector is moving towards new
era of 3G, 4G and 5G technologies. Truly speaking, this
sector is actually mingling technology with everyday life
activities of every citizen, though their requirements are
different but platform is same. How wonderful is today
telecom!
In the part-C, focus was with core study of on adoption of
IND AS 16, these standards mainly prescribe the accounting
treatment for property, plant and equipment so that users of
the financial statements can discern information about an
entitys investment in its property, plant and equipment and
the changes in such investment. The principal issues in
accounting for property, plant and equipment are the
recognition of the assets, the determination of their carrying
amounts and the depreciation charges and impairment
losses to be recognised in relation to them.

Potential of fixed assets is discussed in this part. Why

adoptions of accounting standards in tune of international
standards are necessary in general and telecom sector in
particular are discussed with fresh thinking. Impacts of
adoption of IND AS 16 were narrated with live example of
telecom sector on issues such as Review of Useful life of the
asset, Componentization approach of the fixed assets, Asset
Retirement Obligation of Fixed Assets, Foreign Exchange
Rates changes in a financial year etc. In the report, adoption
of IFRS in BRICS nation were also touched upon, as BRICS
countries are more or less facing similar issues in telecom
sector.
I, do appreciate hard work done by Mr Nikhra in
understanding altogether a new field which I think never was
a curriculum of his study. But, this is expected from student
of IIT, Delhi to learn and understand new subject quickly in
right prospective. It is really an appreciable policy adopted
by IIT, Delhi in encouraging students to act out in non core
areas. It will be definitely make student to increase their
horizon of learning.
At the end, I extend Mr Rhythm my best wishes and hope lot
of things he may learn in future.

AKHIL GARG
VICE PRESIDENT, FINANCE
AIRTEL