Accounts of Airtel
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Transcript of Accounts of Airtel
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Indian Institute of Management, Lucknow
BHARTI AIRTELFinancial Analysis and Accounting Policies
Submitted to: Prof. Madhumita Chakraborty
On th Se!tember "##
Submitted by
Hashim S (PGP!"#$%
Himanshu Ag&awal (PGP!"#!%
Saba&eesh 'enugoal (PGP!")!%
Saumya *ai& (PGP!"$%
S&a+ani Polina (AM"-"")%
Section .A/ G&ou
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Tab$e of Content%AS01A20................................................................................................................................................3
A23G145*6.............................................................................................................................................4
I NTRODUCTION TO AIRTEL.........................................................................................................................5
A2245*0I*G P4LI2I7S.......................................................................................................................6
Depreciation / Amortization....................................................................................................................6
Revenue Reconition an! Receiva"#e$....................................................................................................6
Inventor%& Ratio$ an! Co$tin 'et(o!o#o%...........................................................................................)
Inve$tment................................................................................................................................................)
Licen$e *ee$+ Revenue ,(are..................................................................................................................)
*orein Currenc% Tran$#ation an! Accountin........................................................................................)
Operatin Lea$e$.....................................................................................................................................-
Taation...................................................................................................................................................-
orro0in Co$t........................................................................................................................................1
2arrant% rovi$ion$.................................................................................................................................1
ALA*27 SH770 A*AL8SIS................................................................................................................1
Tota# ,(are(o#!er$ *un!$.....................................................................................................................
Lon Term Loan$...................................................................................................................................
Tota# Lia"i#itie$......................................................................................................................................
,(are Capita#..........................................................................................................................................
Tota# Re$erve Ec#u!in Retaine! Earnin$.........................................................................................7
#ant an! 'ac(iner% 89ro$$ #oc:;......................................................................................................3
9ro$$ #oc:...........................................................................................................................................3
Current A$$et$........................................................................................................................................4
De
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Operatin ro
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ABSTRACT
*inancia# ana#%$i$ i$ a u$e
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BAC&'RO()*
T(e In!ian te#ecommunication$ in!u$tr% i$ one o< t(e
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INTRODUCTION TO AIRTEL
(arti Airte# Lt! i$ a provi!er o< te#ecommunication $ervice$ 0it( pre$ence in a## t(e 77 #icen$e!
uri$!iction$ in In!ia an! in ,ri Lan:a. T(e compan% i$ t(e #are$t 9,' mo"i#e $ervice provi!er in
In!ia. T(e compan% o
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ACCO()TI)' POLICIES
*e!re+iation , Amorti-ation
• Depreciation on
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• ACTIVATION INCOME + Activation revenue an! re#ate! !irect activation co$t$ not ecee!in t(e
activation revenue are !e
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C!versi!
*orein currenc% monetar% item$ are reporte! u$in t(e c#o$in rate. Non+monetar% item$ 0(ic( are
carrie! in term$ o< (i$torica# co$t !enominate! in a
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a$$et$ are reconize! on#% i< t(ere i$ virtua# certaint% $upporte! "% convincin evi!ence t(at t(e% can
"e rea#ize! aain$t
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! De
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$ca#e$ "ot(
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Tota$ Re%ere E2+$udin/ Retained Earnin/%
6ebentu&e 1edemtion
1ese&+e
2aital 1ese&+es
040AL 17'AL5A0I4*
17S71'7
Gene&al 1ese&+es Sha&e P&emium 6ebentu&e 1edemtion 1ese&+e
2aital 1ese&+es
P&o=t > Loss Account
alance
0otal 1ese&+es
T(e t(ree p#ot$ $(o0 t(at Retaine! Earnin$
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P$ant and Ma+hinery 7'ro%% B$o+k8
G&oss lock
Less ? Accumulated6e&eciation
*et lock
T(e rapi! increa$e in 9ro$$ #oc: come$ 0it( t(e M9oo!0i## Intani"#e a$$et 874 cr. Increa$e; comin
out o< t(e ac=ui$ition o< C'a In
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Goodwill
2omute&s
F&eehold Landuildings
T(e p#ot $(o0$ t(e $ini
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T(e compan%
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T(e Ana#%$i$ i$ !one on a common+$ize ro
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O!eratin/ Pro9t
0otal Income 0otal 7@enditu&e
It i$ $een t(at t(e ro
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T(e Ca$( *#o0 ,tatement
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Ca%h 0$o3 from 0inan+in/ A+tiitie%
P&oceed f&om "the& Long
0e&m o&&owings
1eayment 4f the Long
0em o&&owings
6i+idend Paid
T(e *inancin Activitie$ $(o0 a net neative ca$(
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""$D" ""!D" ""-D" ""D" ""D" "#"D"
"D""
"D"$
"D#"
"D#$
"D"
"D$
"DE"
"DE$
ha&ti Ai&tel
T(e Operatin pro
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""$D" ""!D" ""-D" ""D" ""D" "#"D"
"
"D
"D)
"D!
"D
#
#D
#D)
ha&ti Ai&tel
1eliance 2ommunications
T(i$ ratio ive$ an in!ication o< (o0 e
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ha&ti Ai&tel
1eliance 2ommunications
De"tor$ turnover ratio in!icate$ t(e e
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Intere%t Coer
Intere$t Coverae Ratio IT / Intere$t Epen$e
ha&ti Ai&tel
1eliance 2ommunications
A ratio u$e! to !etermine (o0 ea$i#% a compan% can pa% intere$t on out$tan!in !e"t. T(e #o0er t(e
ratio t(e more t(e compan% i$ "ur!ene! "% !e"t epen$e. An intere$t coverae ratio "e#o0 in!icate$
t(e compan% i$ not eneratin $u
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THE *(PO)T RATIO Ana$y%i%T(e t(ree component$ o< t(e Duont ratio a$ repre$ente! in e=uation cover t(e area$ o< pro
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Leera/e: The Leera/e Mu$ti!$ier 7Tota$ A%%et%,Ca!ita$ Em!$oyed8
Leverae ratio$ mea$ure t(e etent to 0(ic( a compan% re#ie$ on !e"t
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MA?OR AC
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Assuming ma&ket g&ows by ", *etaddition of Subsc&ibe&s E mn
Assuming 9a&id catu&es " of newsubsc&ibe&s !D) mn
A1P5 D$
Annual 1e+enue # mnha&tiJs 2u&&ent 1ese&+e -D) bn
9a&id &e+enue, as of Ai&telJs2u&&ent 1e+enue D$"
Even i< 0e a$$ume t(at an#a!e$( ac(ieve$ 5 penetration "% *Q7 an! 2ari! a!!$ 7 o
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@ain A
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0it( mar:et $(are$ 0e## in ece$$ o< 3 per cent. Operatin pro
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CO)CL(SIO)
T(e Ana#%$i$ o< t(e *inancia# ,tatement$ o< Airte# revea#$ a $tor% o< a compan% 0(o (a$ 0eat(ere!
$ucce$$