Emirates Telecommunications has reported a fall of 65 per cent in profits in the fourth quarter mainly as it incurred huge impairment charges for its Indian business.

The Abu Dhabi based company earned 705 million U. A. E. dirhams ($192 million) in the quarter, according to estimates. It reported a yearly profit of AED5.84 billion, compared with AED7.63 billion in the previous year.

The company said that it recognized the whole of impairment charges of AED3.04 billion in its financial accounts this year against the value of goodwill that amounted to AED1.2 billion as well as net assets including its licenses for the Indian operations.

"The net impact of this charge on our consolidated net profit after Federal Royalty amounts to AED1.02 billion," the company said in a statement.

The company’s Indian operations, Etisalat DB Telecom Pvt is one of a number of companies that are affected by the announcement by the supreme court of India to cancel all the telecom licenses issues earlier under the a minister who is facing corruption charges.

The Supreme Court of India had scrapped the validity of quashed all 122 spectrum licenses that were granted to firms during the former communications minister A Raja’s time in office.

The court cancelled all the licenses on the ground they were issued in a “totally arbitrary and unconstitutional” manner. It also imposed a fine on three telecom companies that offloaded their shares after getting the licenses.