Final Fsa Project

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B.K. MAJUMDAR INSTITUTE OF BUSINESSADMINISTRATION

FINANCIAL STATEMENT ANALYSIS

BHARTI AIRTEL&

IDEA CELLULAR

BY: CHARANJIT SIKHSYBBA-III (#359)

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INDEX

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INDEX

Particulars Page No

BRIEF ANALYSIS OF INDUSTRY & INDUSTRY TREND 4

BRIEF INTRODUCTION TO THE COMPANY 7

FINANCIAL HIGHLIGHTS 19

ACCOUNTING POLICIES 28

CAPITAL STRUCTURE ANALYSIS 46

SHARE HOLDING PATTERN 52

CASH FLOW STATEMENT ANALYSIS 56

COMMON SIZE STATEMENT 60

AWARDS , ACHIEVEMENT & CSR 66

HUMAN RESOURCE ANALYSIS 74

BIBLIOGRAPHY 76

ANNEXURE (P & L A/C & BALANCE SHEET FOR LAST 3 YEARS) 78

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BRIEF ANALYSISOF INDUSTRY &INDUSTRYTREND

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BRIEF ANALYSIS OF INDUSTRY & INDUSTRYTREND

Telecom industry in Indiahas a big market potentiality and is a fast growing sector.

Government of India is eager to reconstitute this telecom industry by enactingeffective policies for more investments from foreign companies, which results in avery competitive and deregulated market in the world.

Major services and market potentiality of Telecom industry in India

Telecommunication sector in India is primarily subdivided into two segments, which

are Fixed Service Provider (FSPs) and Cellular Services. Telecom industry in India

constitutes some essential telecom services like telephone, radio, television and

Internet. Telecom industry in India is specifically emphasizing on latest technologies

like GSM( Global System for Mobile Communications), CDMA(Code Division

Multiple Access), PMRTS(Public Mobile Radio Trunking Services), Fixed Line andWLL(Wireless Local Loop ). India has a prospering market specifically in GSM

mobile service and the number of subscribers is growing very fast.

Economic perspective of telecom industry in India

Telecom industry in India has a major role in Indian economy. The Indian

government is also enforcing some effective telecom policies and regulations for the

infrastructural growth of this industry. Indian telecom market provides a tele-density

of 8.5 percent as registered in the year 2004. A number of leading multinational

telecommunication companies are approaching and showing their interest to investfor the telecom industry in India. Telecommunication industry of India ranked sixth

among all the telecommunication sectors in the world. In the year 2004, the total

number of telephone subscriptions were US$93.2.

Leading telecommunication service providers of telecom industry in India

Bharat Sanchar Nigam Limited, Mahanagar Telephone Nigam Limited (MTNL),

Videsh Sanchar Nigam Limited (VSNL), Bharti Airtel, Tata Teleservices, SIFY Ltd.

are the major telecommunications service providers in India.

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Bharti Airtel is one of the most valued company of India. It is also the leading

telecom provider in India. Reliance Communications follows Airtel in

market capitalization. Interestingly the same order holds good for the total

number of subscribers these telecom companies has.

Bharti has a subscriber base of 91.1 million and added

2.7 million subscribers in Feb 2009. Reliance added 3.3

million new subscribers in FEB 2009 to take the total to 69.6

million. Reliance rolled out its GSM operations late last year

following which there was a surge in the number of new

subscribers. It also added more subscribers than Airtel in a month.

Following MTNL is the list of other telecom providers in infrastructure,

equipment and value added services.Vodafone-Essar which has 66 million

subscribers is not listed on the Indian Bourses.

BSNL is also not listed and that is the reason why it is not in the list. If listed it

could be one of the top companies. There is a lot of things happening around

BSNLs IPO even before the recession started. Now, that the recession has started

the IPO plans were postponed. But, BSNL will dilute 10% stake sooner than later.

*Market valuations as on 20 MAR 2009.

TOP 10 TELECOM CO. IN INDIA

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7

Company Name Market Cap in Crores

Bharti Airtel 108066.23

Reliance Communications 32683.44

Idea Cellular 14368.92

Tata Communications 13181.25Tata Teleservices 4393.06

Spice Communications 4136.13

MTNL 4044.6

GTL 2475.12

GTL Infrastructure 2210.49

OnMobile Global 1403.52
http://www.airtel.in/http://www.rcom.co.in/http://www.ideacellular.com/http://www.tatacommunications.com/http://www.tatateleservices.com/http://www.spiceindia.com/spice/aboutus.asphttp://www.mtnl.net.in/http://www.gtllimited.com/http://www.gtlinfra.com/http://www.onmobile.com/http://www.rcom.co.in/http://www.ideacellular.com/http://www.tatacommunications.com/http://www.tatateleservices.com/http://www.spiceindia.com/spice/aboutus.asphttp://www.mtnl.net.in/http://www.gtllimited.com/http://www.gtlinfra.com/http://www.onmobile.com/http://www.airtel.in/


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BRIEF

INTRODUCTIONTO BHARTIAIRTEL

Managing director of Bharti Airtel.

BRIEF INTRODUCTION TO THE COMPANY

BHARTI AIRTEL

Sunil Bharti Mittal founded the Bharti Group. In 1983, Sunil Mittal was

into an agreement with Germany's Siemens to manufacture the company's

push-button telephone models for the Indian market.

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In 1986, Sunil Bharti Mittal incorporated Bharti Telecom Limited (BTL)

and his company became the first in India to offer push-button telephones,

establishing the basis of Bharti Enterprises.

This first-mover advantage allowed Sunil Mittal to expand his

manufacturing capacity elsewhere in the telecommunications market.

By the early 1990s, Sunil Mittal had also launched the country's first faxmachines and its first cordless telephones.

In 1992, Sunil Mittal won a bid to build a cellular phone network in Delhi.

In 1995, Sunil Mittal incorporated the cellular operations as Bharti Tele-

Ventures and launched service in Delhi.

In 1996, cellular service was extended to Himachal Pradesh.

In 1999, Bharti Enterprises acquired control of JT Holdings, and extended

cellular operations to Karnataka and Andhra Pradesh.

In 2000, Bharti acquired control of Skycell Communications, in Chennai.

In 2001, the company acquired control of Spice Cell in Calcutta.

Bharti Enterprises went public in 2002, and the company was listed onBombay Stock Exchange and National Stock Exchange of India.

In 2003, the cellular phone operations were rebranded under the single

Airtel brand.

In 2004, Bharti acquired control of Hexacom and entered Rajasthan.

In 2005, Bharti extended its network to Andaman and Nicobar.'2009,

Airtel launched its first international mobile network in Sri Lanka.

In 2010, Airtel began operating end

Today, Airtel is the largest cellular service provider in India and fifth largest in the

world.

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ISTING DETAILS

Year Ending Month Mar

AGM Date (Month) Sep

Book Closure Date (Month) Aug/Sep

Face Value Of Equity Shares 5

Market Lot Of Equity Shares 1

BSE Code 532454

NSE Code BHARTIARTL

BSE Group A

Sensex Yes

Nifty Yes

BSE-100 Yes

BSE-200 Yes

S&P CNX 500 Yes

CNX Midcap No

CNX FMCG No

Listed On The Stock Exchange, Mumbai, National Stock Exchange of India Ltd.

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Registered Address

Bharti Cresent,

1, Nelson Mandela Road,,Vasant Kunj,

New Delhi

Delhi

110070

Tel: 011-46666100 011-46666500

Fax: 011-46666137 011-41666149

Email:[email protected]

Website:http://www.airtel.com

Group: Bharti Group

Management - Bharti AirtelName Designation

Sunil Bharti Mittal Chairman and Managing director

Ajay Lal Non Executive Director

Chua Sock Koong Non Executive Director

Lord Evan Mervyn Davies Non Executive Director

N Kumar Non Executive Director

Pulak Prasad Non Executive Director

Rakesh Bharti Mittal Non Executive Director

Tan Yong Choo Non Executive Director

Name Designation

Manoj Kohli Joint Managing Director & CEOAkhil Gupta Non Executive Director

Craig Ehrlich Non Executive Director

Hui Weng Cheong Non Executive Director

Nikesh Arora Non Executive Director

Rajan Bharti Mittal Non Executive Director

Salim Ahmed Salim Non Executive Director

Tsun-yan Hsieh Non Executive Director

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LOCATION DETAIL

LOCATION TYPE

Registered & Corporate Office Qutab Ambience H-5/12 Mehrauli RoadNew Delhi - 110030Delhi - IndiaPhone : 41666000Fax : 41666011/ 12Email : [email protected] : N.A.

Registered Office Qutab Ambience H-5/12 Mehrauli RoadNew Delhi - 110030Delhi - IndiaPhone : 41666000Fax : 41666011/ 12Email : [email protected] : N.A.

Registered Office Aravali Crescent, 1, Nelson Mandela Road, Vasant Kunj, Phase 2,New Delhi - 110070Delhi - IndiaPhone : 41666111Fax : 41666137, 41666146Email : [email protected] : N.A.

Registered & Corporate Office Aravali Crescent, 1, Nelson Mandela Road, Vasant Kunj, Phase 2,New Delhi - 110070Delhi - IndiaPhone : 46666100Fax : 46666137Email : [email protected] : N.A.

Registered & Corporate Office Bharti Cresent, 1, Nelson Mandela Road, Vasant Kunj, Phase - IINew Delhi - 110070Delhi - IndiaPhone : 46666100, 46666500, 46666255Fax : 46666137, 41666149Email : [email protected] : N.A.

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BRIEFINTRODUCTION

TO IDEACELLULAR

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CEO of the Idea Cellular.

IDEA CELLULAR

Idea cellular was initially incorporated as Birla Communications

Limited on March 14, 1995 & granted a certificate of commencement

of business on August 11, 1995.

Their registered office was in Mumbai, Maharashtra.

The name was then changed to Birla AT&T Communications Ltd. On

May 30, 1996.

In 2000, Tata Cellular was a company providing mobile services in

Andhra Pradesh. When Birla-AT&T brought Maharashtra and Gujarat

to the table, the merger of these two entities was a reality. Thus Birla-

Tata-AT&T, popularly known as Batata, was born and was later

branded as !dea.

Idea is the 4th largest wireless carrier in Indian market with over 100

million customers and also provides broadband Internet to its

customers.

About IDEA

IDEA Cellular is a publicly listed company, having listed on BSE& NSE in March 2007. It is the 3rd largest mobile servicesoperator in India with wireless revenue market share at 13.9 %in Q1 FY2012. Idea has join the select global operators clubservicing over 100 million subscribers, as of September 2011.Idea is a pan-India integrated GSM operator and has its ownNLD and ILD operations, and ISP license.With traffic in excess of a billion minutes a day, Idea ranks

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among the Top 10 country operators in the world. Idea operatesacross all 22 service areas with 2G services, and 3G servicesare being progressively rolled out to cover over 3,000 towns byFY 2012.

Idea has a network of over 70,000 cell sites covering the entirelength and breadth of the country. Idea has over 3,000 ServiceCentres servicing Idea subscribers across the country, including450 special Experience Zones for 3G promotion. Ideas servicedelivery platform is ISO 9001:2008 certified, making it the onlyoperator in the country to have this standard certification for all22 service areas and the corporate office.

Ideas strong growth in the Indian telephony market comes fromits deep penetration in non-urban & rural markets. It has thehighest share of rural subscribers as a percentage of totalsubscribers, amongst other GSM players. In fact, 2 out of every3 new Idea subscribers come from rural/ semi-urban India.Idea is the winner of The Emerging Company of the YearAward at The Economic Times Corporate Excellence Awards2009. IDEA Cellular also received the prestigious AvayaGlobalConnect Award for being the Most Customer ResponsiveCompany in the Telecom sector in the year 2010. The companyhas received several other national and internationalrecognitions for its path-breaking innovations in mobiletelephony products & services. It won the GSM AssociationAward for Best Billing and Customer Care Solution for 2consecutive years. It was awarded Mobile Operator of the YearAward India for 2007 and 2008 at the Annual Asian MobileNews Awards.IDEA Cellular is an Aditya Birla Group Company, Indias firsttruly multinational corporation. The group operates in 33countries, and is anchored by more than 132,000 employeesbelonging to 42 nationalities.

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LISTING DETAILS

Year Ending MonthMar

AGM Date (Month) Sep

Book Closure Date (Month) Sep

Face Value Of Equity Shares 10

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Market Lot Of Equity Shares 1

BSE Code 532822

NSE Code IDEA

BSE Group A

Sensex No

Nifty No

BSE-100 Yes

BSE-200 Yes

S&P CNX 500 Yes

CNX Midcap No

CNX FMCG No

Listed On The Stock Exchange, Mumbai, National Stock Exchange of India Ltd.

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Registered Address

Suman Tower,

Plot No. 18,,Sector-11

GandhinagarGujarat

382011

Tel: 02712-66714000

Fax: 02712-23232251

Email:[email protected]

Website:http://www.ideacellular.com

Group: Birlas (Aditya Vikram) Group

Management - Idea CellularName Designation

Kumar Mangalam Birla Chairman / Chair Person

Rajashree Birla Non Executive Director

Biswajit A Subramanian Non Executive Director

Sanjeev Aga Non Executive Director

Gian Prakash Gupta Independent Director

Tarjani Vakil Independent Director

P Murari Independent Director

Madhabi Puri Buch Independent Director

Name Designation

Himanshu Kapania Managing Director

Rakesh Jain Non Executive Director

Juan Villalonga Navarro Non Executive Director

Arun Thiagarajan Independent Director

Mohan Gyani Independent Director

R C Bhargava Independent Director

Shridhir Sariputta Hansa Wijayasuriya Alternate Director

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LOCATION DETAIL

LOCATION TYPES

Registered Office Suman Tower Plot No. 18Gandhinagar - 382011Gujarat - IndiaPhone : 66714000Fax : 23232251Email : [email protected] : N.A.

Corporate Office 11/1, Sharada Center Off Karve RoadPune - 411004Maharashtra - IndiaPhone : M - 9850003222 ,Fax : 9850003999

Email : [email protected] : N.A.

Registered Office Suman Tower, Plot No. 18, Sector-11Gandhinagar - 382011Gujarat - IndiaPhone : 66714000Fax : 23232251Email : [email protected] : N.A.

Corporate Office Windsor, 5th Floor, Off CST Road, Near Vidya Nagari, Kalina, Santacruz (East)Mumbai - 400098Maharashtra - IndiaPhone : 66820000Fax : 66820499

Email : [email protected] : N.A.

Corporate Office Windsor, 5th Floor, Off CST Road, Near Vidya Nagari, Kalina, Santacruz (East)Mumbai - 400098Maharashtra - IndiaPhone : 66820000Fax : 66820499Email : [email protected] : N.A.

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FINANCIAL

HIGHLIGHTS

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FINANCIAL HIGHLIGHTS

1. TOTAL INCOME

ANALYSIS

In the above graph we can see that the total incomeof Bharti Airtel is more than Idea Cellular since2005 and has grown steeply as compared to the totalincome of Idea Cellular.

At present there s a difference of almost 22000 Rs.(in crores) between the total income of Idea Cellularand Bharti Airtel

We can also say that by the time IDEA is alsorecovering its position in the market .

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2. PROFIT BEFORE DEPRECIATION, INTEREST & TAX

ANALYSIS

The PBDIT ( Profit Before Interest, Depreciation &

Tax) is more of Bharti Airtel than of Idea Cellular.

There is a difference of almost 10000 (in Rs. Cr.)between the PBDIT of Bharti Airtel & IdeaCellular.

In 2008 the IDEA tried to get through it but again in2010 it went down .

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3. PROFIT BEFORE DEPRECIATION & TAX

ANALYSIS

The difference between PBDIT & PBDT of Bharti

Airtel is less than that of Idea Cellular which showsthat the interest paid by BA is less than IC andhence the profit before depreciation and tax of BAis more than that of IC.

The PBDT for AIRTEL is higher than the other thatmeans Airtel can be highly getting profit beforedepereciation and tax.

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4. PROFIT AFTER TAX

ANALYSIS

The PAT of Bharti Airtel is more than the PAT ofIdea Cellular as there is a clear difference of almost6000 (in Rs. Cr.) between their respective PAT.

And this can be a huge amount for the beginnercompany like IDEA in oppose to AIRTEL.

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5. EARNINGS PER SHARE

ANALYSIS

Earning per Share is more for the share holders ofBharti Airtel than that for the share holders of Idea

Cellular.

There is a clear difference of almost 15-17 Rs pershare between the EPS of IC & BA.

From this EPS we can see that the AIRTEL is thestrongest in compare to any brand and it have such

amount of EPS.

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6. BOOK VALUE PER SHARE

ANALYSIS

The book value of BA has been more than IC in allthe years but between 2009-10 there was a visibledecrease in the book value of BA.

But then to Idea cant make close to Airtel as sinceits a such experienced company in this market .

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7. NET WORTH

ANALYSIS

THE Net Worth of BA is more than the Net Worthof IC.

This thing only make Airtel a better company thanthe Idea .

But also Idea can manage to do good in future .

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8. TOTAL ASSETS

ANALYSIS

The total assets of Bharti Airtel is more than the totalasstes of Idea Cellular that shows the total investmentdone by Bharti Airtel is more than the total investment

done by Idea Cellular.

As AIRTEL is older than the Idea its total assets arehigher than idea but here idea did a good try tocome over in a short period of time .

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ACCOUNTINGPOLICIES FOR

BHARTI AIRTEL

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ACCOUNTING POLICIES

ACCOUNTING POLICIES OF AIRTEL

1. BASIS OF PREPARATIONThe financial statements have been prepared to comply in all materialrespects with the Notifi ed accounting standards issued by Companies(Accounting Standards) Rules, 2006, (''as amended'') and the relevantprovisions of the Companies Act, 1956. The financial statements havebeen prepared under the historical cost convention on an accrual basisexcept in case of assets for which revaluation is carried out. Theaccounting policies have been consistently applied by the Company andare consistent with those used in the previous year.

2. USE OF ESTIMATES

The preparation of financial statements in conformity with generallyaccepted accounting principles requires management to make estimatesand assumptions that affect the reported amounts of assets andliabilities and disclosure of contingent liabilities at the date of thefinancial statements and the results of operations during thereporting year end. Although these estimates are based uponmanagement''s best knowledge of current events and actions, actualresults could differ from these estimates.

3. FIXED ASSETS

Fixed Assets are stated at cost of acquisition and subsequentimprovements thereto, including taxes and duties (net of cenvatcredit), freight and other incidental expenses related to acquisitionand installation. Capital work-in-progress is stated at cost.

Site restoration cost obligations are capitalised when it is probablethat an outfl ow of resources will be required to settle the obligationand a reliable estimate of the amount can be made.

The intangible component of license fee payable by the Company forcellular and basic circles, upon migration to the National TelecomPolicy (NTP 1999), i.e. Entry Fee, has been capitalised as an asset andthe one time license fee paid by the Company for acquiring new licences(post NTP 1999) (basic, cellular, national long distance andinternational long distance services) has been capitalised as an

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intangible asset.4. DEPRECIATION/AMORTISATION

Depreciation on fixed assets is provided on the straight line method

based on useful lives of respective assets as estimated by themanagement or at the rates prescribed under Schedule XIV of theCompanies Act, 1956, whichever is higher. Leasehold land is amortisedover the period of lease. Depreciation rates adopted by the Company areas follows:

Useful lives

Leasehold Land Period of lease

Building 20 years

Building on Leased Land 20 yearsLeasehold Improvements Period of lease or 10 years

whichever is less

Plant and Machinery 3 years to 20 years

Computer and Software 3 years

Offi ce Equipment 2 years/5 years

Furniture and Fixtures 5 years

Vehicles 5 years

Software up to Rs. 500 thousand is fully amortised within one year fromthe date it is placed in service.

Bandwidth capacity is amortised on straight-line basis over the periodof the agreement subject to a maximum of 18 years i.e. estimated usefullife of bandwith.

The Entry Fee capitalised is amortised over the period of the licenseand the one time licence fee is amortised over the balance period oflicence from the date of commencement of commercial operations.

3G spectrum fees is being amortised over the period of license from theeffective date of launch of 3G services.

The site restoration cost obligation capitalised is depreciated overthe period of the useful life of the related asset.

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Fixed Assets costing up to Rs. 5 thousand (other than identifi ed CPE)are being fully depreciated within one year from the date ofacquisition.

5. REVENUE RECOGNITION AND RECEIVABLESMobile Services

Service revenue is recognised on completion of provision of services.Service revenue includes income on roaming commission and an accesscharge recovered from other operators, and is net of discounts andwaivers. Revenue, net of discount, is recognised on transfer of allsignifi cant risks and rewards to the customer and when no signifi cantuncertainty exists regarding realisation of consideration.

Processing fees on recharge is being recognised over the estimatedcustomer relationship period or voucher validity period, as applicable.Revenue from prepaid calling cards packs is recognised on the actualusage basis.

Telemedia Services

Service revenue is recognised on completion of provision of services.Revenue is recognised when no signifi cant uncertainty exists regardingrealisation of consideration. Service Revenue includes access chargesrecovered from other operators, and is net of discounts and waivers.

Enterprise Services

Revenue, net of discount, from sale of goods is recognised on transferof all signifi cant risks and rewards to the customer and when nosignifi cant uncertainty exists regarding realisation of consideration.Revenue on account of bandwidth service is recognised on timeproportion basis in accordance with the related contracts.

Service Revenue includes access charges recovered from other operators,revenues from registration, installation and provision of Internet and

Satellite services. Registration fees is recognised at the time ofdispatch and invoicing of Start up Kits. Installation charges arerecognised as revenue on satisfactory completion of installation ofhardware and service revenue is recognised from the date ofsatisfactory installation of equipment and software at the customersite and provisioning of Internet and Satellite services.

Activation Income

Activation revenue and related direct activation costs, not exceeding

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the activation revenue, are deferred and amortised over the relatedestimated customer relationship period, as derived from the estimatedcustomer churn period.

Investing and other Activities

Income on account of interest and other activities are recognised on anaccrual basis. Dividends are accounted for when the right to receivethe payment is established.

Provision for doubtful debts

The Company provides for amounts outstanding for more than 90 days incase of active subscribers, roaming receivables, receivables for dataservices and for entire outstanding from deactivated customers net offsecurity deposits or in specifi c cases where management is of the view

that the amounts from certain customers are not recoverable.For receivables due from the other operators on account of theirNational Long Distance (NLD) and International Long Distance (ILD)traffi c for voice and Interconnect Usage charges (IUC), the Companyprovides for amounts outstanding for more than 120 days from the dateof billing, net of any amounts payable to the operators or in specifi ccases where management is of the view that the amounts from theseoperators are not recoverable.

Accrued Billing revenue

Accrued billing revenue represent revenue recognized in respect ofMobile, Broadband and Telephone, and Long Distance services providedfrom the bill cycle date to the end of each month. These are billed insubsequent periods as per the terms of the billing plans.

6. INVENTORY

Inventory is valued at the lower of cost and net realisable value.Cost is determined on First-in-First-out basis. Net realisable value isthe estimated selling price in the ordinary course of business, lessestimated costs of completion and the estimated costs necessary to make

the sale.The Company provides for obsolete and slow-moving inventory based onmanagement estimates of the usability of inventory.

7. INVESTMENT

Current Investments are valued at lower of cost and fair market valuedetermined on individual basis.

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Long-term Investments are valued at cost. Provision is made fordiminution in value to recognise a decline, if any, other than that oftemporary nature.

8. LICENSE FEES REVENUE SHARE

With effect from August 1, 1999, the variable Licence fee computed atprescribed rates of revenue share is charged to the Profit and LossAccount in the year in which the related revenues are recognised.Revenue for this purpose identifi ed as adjusted gross revenue as perthe respective license agreements.

9. FOREIGN CURRENCY TRANSLATION, ACCOUNTING FOR FORWARD

CONTRACTS ANDDERIVATIVES

Initial RecognitionForeign currency transactions are recorded in the reporting currency,by applying to the foreign currency amount the exchange rate betweenthe reporting currency and the foreign currency at the date of thetransaction.

Conversion

Foreign currency monetary items are reported using the closing rate.Non-monetary items which are carried in terms of historical costdenominated in a foreign currency are reported using the exchange rateat the date of the transaction; and non-monetary items which arecarried at fair value or other similar valuation denominated in aforeign currency are reported using the exchange rates that existedwhen the values were determined.

Exchange Differences

Exchange differences arising on the settlement of monetary items or onrestatement of the Company''s monetary items at rates different fromthose at which they were initially recorded during the year, orreported in previous financial statements, are recognised as income or

as expenses in the year in which they arise as mentioned below.Forward Exchange Contracts covered under AS 11, ''The Effects of Changesin Foreign Exchange Rates''

Exchange differences on forward exchange contracts and plain vanillacurrency options for establishing the amount of reporting currency andnot intended for trading and speculation purposes, are recognised inthe Profit and Loss account in the year in the which the exchange ratechanges. The premium or discount arising at the inception of forward

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exchange contracts is amortised as expense or income over the life ofthe contract. Any Profit or loss arising on cancellation or renewalof such forward exchange contract is recognised as income or expensefor the year.

Exchange difference on forward contracts which are taken to establishthe amount other than the reporting currency arising due to thedifference between forward rate available at the reporting date for theremaining maturity period and the contracted forward rate (or theforward rate last used to measure a gain or loss on the contract for anearlier period) are recognised in the Profit and loss account for theyear.

Other Derivative Instruments, not in the nature of AS 11, ''The Effectsof Changes in Foreign Exchange Rates''

The Company enters into various foreign currency option contracts andinterest rate swap contracts that are not in the nature of forwardcontracts designated under AS 11 as such and contracts that are notentered to establish the amount of the reporting currency required oravailable at the settlement date of a transaction; to hedge its riskswith respect to foreign currency fl uctuations and interest rateexposure arising out of import of capital goods using foreign currencyloan. At every year end all outstanding derivative contracts are fairvalued on a mark-to-market basis and any loss on valuation isrecognised in the Profit and loss account, on each contract basis. Anygain on mark-to-market valuation on respective contracts is notrecognised by the Company, keeping in view the principle of prudence asenunciated in AS 1, ''Disclosure of Accounting Policies''. Any reducti onto fair values and any reversals of such reductions are included inProfit and loss statement of the year.

Embedded Derivative Instruments

The Company occasionally enters into contracts that do not in theirentirety meet the defi nition of a derivative instrument that maycontain embedded derivative instruments implicit or explicit termsthat affect some or all of the cash fl ow or the value of otherexchanges required by the contract in a manner similar to a derivative

instrument. The Company assesses whether the economic characteristicsand risks of the embedded derivative are clearly and closely related tothe economic characteristics and risks of the remaining component ofthe host contract and whether a separate, non-embedded instrument withthe same terms as the embedded instrument would meet the defi nition ofa derivative instrument. When it is determined that (1) the embeddedderivative possesses economic characteristics and risks that are notclearly and closely related to the economic characteristics and risksof the host contract and (2) a separate, standalone instrument with thesame terms would qualify as a derivative instrument, the embedded

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derivative is separated from the host contract, carried at fair valueas a trading or non-hedging derivative instrument. At every year end,all outstanding embedded derivative instruments are fair valued onmark-to-market basis and any loss on valuation is recognised in theProfit and loss account for the year. Any reduction in mark to market

valuations and reversals of such reductions are included in Profit andloss statement of the year.

Translation of Integral and Non-Integral Foreign Operation

The financial statements of an integral foreign operation aretranslated as if the transactions of the foreign operation have beenthose of the Company itself.

In translating the financial statements of a non-integral foreignoperation for incorporation in financial statements, the assets and

liabilities, both monetary and non-monetary are translated at theclosing rate; income and expense items are translated at exchange rateat the date of transaction for the year; and all resulting exchangedifferences are accumulated in a foreign currency translation reserveuntil the disposal of the net investment.

Foreign exchange contracts for trading and speculation purpose

Foreign exchange contracts intended for trading and/or speculation arefair valued on a mark-to-market basis and any gain or loss on suchvaluation is recognised in the Profit and Loss Account for the year.

10. EMPLOYEE BENEFITS

(a) Short-term employee benefi ts are recognised in the year duringwhich the services have been rendered.

(b) All employees of the Company are entitled to receive benefi tsunder the Provident Fund, which is a defi ned contribution plan. Boththe employee and the employer make monthly contributions to the plan ata predetermined rate (presently 12%) of the employees'' basic salary.These contributions are made to the fund administered and managed bythe Government of India. In addition, some employees of the Company

are covered under the employees'' state insurance schemes, which arealso defi ned contribution schemes recognised and administered by theGovernment of India.

The Company''s contributions to both these schemes are expensed in theProfit and Loss Account. The Company has no further obligations underthese plans beyond its monthly contributions.

(c) Some employees of the Company are entitled to superannuation, adefi ned contribution plan which is administered through Life Insurance

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Corporation of India (LIC). Superannuation benefi ts are recorded asan expense as incurred.

(d) Short-term compensated absences are provided for, based onestimates. Long-term compensated absences are provided for based on

actuarial valuation. The actuarial valuation is done as per projectedunit credit method at the end of each period/year.

(e) The Company provides for gratuity obligations through a defi nedbenefi t retirement plan (the ''Gratuity Plan'') covering all employees.The Gratuity Plan provides a lump sum payment to vested employees atretirement or termination of employment based on the respectiveemployee salary and years of employment with the Company. The Companyprovides for the Gratuity Plan based on actuarial valuations as per theProjected Unit Credit Method at the end of each period/year inaccordance with Accounting Standard 15, Employee Benefi ts. The

Company makes annual contributions to the LIC for the Gratuity Plan inrespect of employees at certain circles.(f) Other Long-term employee benefi ts are provided based on actuarialvaluation made at the end of each period/ year. The actuarial valuationis done as per projected unit credit method.

(g) Actuarial gains and losses are recognised as and when incurred.

11. PRE-OPERATIVE EXPENDITURE

Expenditure incurred by the Company from the date of acquisition oflicense for a new circle or from the date of start-up of new venture orbusiness, up to the date of commencement of commercial operations ofthe circle or the new venture or business, not directly attributable tofixed assets are charged to the Profit and Loss account in the yearin which such expenditure is incurred.

12. LEASES

a) Where the Company is the lessee

Leases where the lessor effectively retains substantially all the risks

and benefi ts of ownership of the leased term, are classifi ed asoperating leases. Lease Rentals with respect to assets taken on''Operating Lease'' are charged to the Profit and Loss Account on astraight-line basis over the lease term.

Leases which effectively transfer to the Company substantially all therisks and benefi ts incidental to ownership of the leased item areclassifi ed as fi nance lease. Assets acquired on ''Finance Lease''which transfer risk and rewards of ownership to the Company arecapitalised as assets by the Company at the lower of fair value of the

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leased property or the present value of the minimum lease payments.Amortisation of capitalised leased assets is computed on the StraightLine method over the useful life of the assets. Lease rental payableis apportioned between principal and fi nance charge using the internal

rate of return method. The fi nance charge is allocated over the leaseterm so as to produce a constant periodic rate of interest on theremaining balance of liability.

b) Where the Company is the lessorLease income in respect of ''Operating Lease'' is recognised in the Profit and Loss Account on a straight-line basis over the lease term.

Finance leases as a dealer lessor are recognized as a sale transactionin the Profit and Loss Account and are treated as other outright

sales.Finance Income is recognised based on a pattern refl ecting a constantperiodic rate of return on the net investment of the lessor outstandingin respect of the lease.

c) Initial direct costs are expensed in the Profit and Loss Account atthe inception of the lease.

13. TAXATION

Current Income tax is measured at the amount expected to be paid to thetax authorities in accordance with Indian Income Tax Act, 1961.

Deferred income taxes refl ects the impact of current year timingdifferences between taxable income and accounting income for the yearand reversal of timing differences of earlier years. Deferred tax ismeasured based on the tax rates and the tax laws enacted orsubstantively enacted at the balance sheet date. Deferred tax assetsare recognised and reviewed at each balance sheet date, only to theextent that there is reasonable certainty that sufficient futuretaxable income will be available against which such deferred tax assetscan be realised. In situations where the Company has unabsorbed

depreciation or carry forward tax losses, all deferred tax assets arerecognised only if there is virtual certainty supported by convincingevidence that they can be realised against future taxable Profits. Ateach balance sheet date, unrecognised deferred tax assets of earlieryears are re-assessed and recognised to the extent that it has becomereasonably or virtually certain, as the case may be, that futuretaxable income will be available against which such deferred tax assetscan be realised.

Minimum Alternative Tax (MAT) credit is recognised as an asset only

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when and to the extent there is convincing evidence that the Companywill pay normal income tax during the specifi ed period. In the year inwhich the MAT credit becomes eligible to be recognised as an asset inaccordance with the recommendations contained in Guidance Note issuedby the ICAI, the said asset is created by way of a credit to the Profi

t and Loss account and shown as MAT Credit Entitlement. The Companyreviews the same at each balance sheet date and writes down thecarrying amount of MAT Credit Entitlement to the extent there is nolonger convincing evidence to the effect that Company will pay normalIncome Tax during the specifi ed period.

14. BORROWING COST

Borrowing cost attributable to the acquisition or construction of fixed assets which takes substantial period of time to get ready for itsintended use is capitalised as part of the cost of that asset. Other

borrowing costs are recognised as an expense in the year in which theyare incurred. The interest cost incurred for funding a qualifying assetduring the acquisition/construction period is capitalised based onactual investment in the asset at the average interest rate.

15. IMPAIRMENT OF ASSETS

The carrying amounts of assets are reviewed at each balance sheet datefor impairment whenever events or changes in circumstances indicatethat the carrying amount may not be recoverable. An impairment loss isrecognised for the amount by which the assets'' carrying amount exceedsits recoverable amount. The recoverable amount is the higher of theassets'' fair value less costs to sell and value in use.

For the purpose of assessing impairment, assets are grouped at thelowest levels for which there are separately identifi able cash flows(cash generating units).

16. SEGMENTAL REPORTING

a) Primary Segment

The Company operates in three primary business segments viz. Mobile

Services, Telemedia Services and Enterprise Services.b) Secondary SegmentThe Company has operations within India as well as in other countriesthrough entities located outside India. The operations in Indiaconstitute the major part, which is the only reportable segment, theremaining portion being attributable to others.

17. EARNINGS PER SHARE

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The earnings considered in ascertaining the Company''s Earnings PerShare (''EPS'') comprise the net Profit after tax. The number of sharesused in computing basic EPS is the weighted average number of sharesoutstanding during the period. The weighted average number of equity

shares outstanding during the year is adjusted for events of sharesplits/bonus issue post year end and accordingly, the EPS is restatedfor all periods presented in these financial statements. The dilutedEPS is calculated on the same basis as basic EPS, after adjusting forthe effects of potential dilutive equity shares unless impact is antidilutive.

The weighted average number of equity shares outstanding during theyear are adjusted for events of bonus issue; bonus element in a rightsissue to existing shareholders; share split; and reverse share split(consolidation of shares).

18. ASSET RETIREMENT OBLIGATIONS (ARO)Provision for ARO is based on past experience and technical estimates.

19. PROVISIONS

Provisions are recognised when the Company has a present obligation asa result of past event; it is more likely than not that an outfl ow ofresources will be required to settle the obligation, in respect ofwhich a reliable estimate can be made. Provisions are not discounted toits present value and are determined based on best estimate required tosettle the obligation at the balance sheet date. These are reviewed ateach balance sheet date and adjusted to refl ect the current bestestimates.

20. EMPLOYEE STOCK OPTIONS OUTSTANDING

Employee Stock options outstanding are valued using Black Scholes/Monte Carlo/ Lattice valuation option pricing model and the fairvalue is recognised as an expense over the period in which the optionsvest. The difference between the actual purchase cost of shares issuedupon exercise of options and the sum of fair value of the option and

exercise price is adjusted against General Reserve.21. CASH AND CASH EQUIVALENTS

Cash and Cash equivalents in the Balance Sheet comprise cash in handand at bank and short-term investments.

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ACCOUNTINGPOLICIES FORIDEA CELLULER

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ACCOUNTING POLICIES OF IDEA CELLULAR

1. Basis of Preparation of Financial Statements:The Financial Statements have been prepared under the historical costconvention on accrual basis. The mandatory applicable accountingstandards in India and the provisions of the Companies Act, 1956 havebeen followed in preparation of these financial statements.

2. Fixed Assets:

Fixed assets are stated at cost of acquisition and installation lessaccumulated depreciation. Cost is inclusive of freight, duties, levies

and any directly attributable cost of bringing the assets to theirworking condition for intended use.

Asset retirement obligations are capitalized based on a constructiveobligation as a result of past events, when it is probable that anoutflow of resources will be required to settle the obligation and areliable estimate of the amount can be made. Such costs are depreciatedover the remaining useful life of the asset.

3. Expenditure during pre-operative period of license:

Expenses incurred on project and other charges during constructionperiod are included under pre-operative expenditure (grouped underCapital Work in Progress) and are allocated to the cost of Fixed Assetson the commencement of commercial operations.

4. Depreciation and Amortisation:

Depreciation on fixed assets is provided on straight-line method(except stated otherwise) on the basis of estimated useful economiclives as given below: -

i) Cost of Rights, Licences including the fees paid on fixed basisprior to revenue share regime and Spectrum fee is amortised onstraight-line method on commencement of operations over the validityperiod.

ii) Software, which is not an integral part of Hardware, is treated asIntangible asset and is amortized over their useful economic lives asestimated by the management between 3 to 5 years.

iii) Bandwidth / Fibre taken on Indefeasible Right of Use (IRU) isamortised over the agreement period.

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Assets costing upto Rs. 5,000/- are depreciated fully in the month ofpurchase.

5. Inventories:

Inventories are valued at cost or net realisable value, whichever islower. Cost is determined on weighted average basis.

6. Foreign currency transactions:

Transactions in foreign currency are recorded at the exchange ratesprevailing at the dates of the transactions. As per the transitionalprovisions given in the notification issued by Ministry of CorporateAffairs dated 31st March, 2009, the company has opted for the option ofadjusting the exchange difference on long term foreign currency

monetary items to the cost of the assets acquired out of these foreigncurrency monetary items. The company has aligned its accounting policybased on this notification.

Exchange difference arising out of fluctuation in exchange rates onsettlement / period end is accounted based on the nature of transactionas under:

1) Short term foreign currency monetary assets and liabilities:recognised in the Profit and Loss account.

2) Long term foreign currency monetary liabilities used for acquisitionof fixed assets: adjusted to the cost of the fixed assets and amortisedover the remaining useful life of the asset.

3) Other long term foreign currency monetary liabilities: recognised inForeign Currency Monetary Item Translation Difference Account andamortised over the period of liability not exceeding 31st March, 2012.

7. Taxation:

a) Current Tax: Provision for current income tax is made on the taxableincome using the applicable tax rates and tax laws.

b) Deferred Tax: Deferred tax arising on account of timing differencesand which are capable of reversal in one or more subsequent periods isrecognised using the tax rates and tax laws that have been enacted orsubstantively enacted. Deferred tax assets are not recognised unlessthere is virtual certainty with respect to the reversal of the same infuture years.

c) Minimum Alternative Tax (MAT) credit: MAT credit is recognised as anasset only when and to the extent there is convincing evidence that the

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Company will pay normal income tax during the specified period. In theyear in which the MAT credit becomes eligible to be recognized as anasset in accordance with the recommendations contained in Guidance Noteissued by the ICAI, the said asset is created by way of a credit to theProfit and Loss account and shown as MAT credit entitlement. The

Company reviews the same at each balance sheet date and writes down thecarrying amount of MAT credit entitlement to the extent there is nolonger convincing evidence to the effect that Company will pay normalincome tax during the specified period.

8. Retirement Benefits:

Contributions to Provident and Pension funds are funded with theappropriate authorities and charged to the Profit and Loss Account.

Contributions to superannuation are funded with the Life Insurance

Corporation of India and charged to the profit and loss account.Liability for gratuity as at the year end is provided on the basis ofactuarial valuation and funded with Life Insurance Corporation ofIndia.

Provision in accounts for leave benefits to employees is based onactuarial valuation done by projected accrued benefit method at theperiod end.

9. Revenue Recognition and Receivables:

Revenue on account of telephony services (mobile & long distance) andsale of handsets and related accessories is recognized net of rebates,discount, service tax etc. on rendering of services and supply of goodsrespectively. Recharge fees on recharge vouchers is recognized asrevenue as and when the recharge voucher is activated by thesubscriber.

Service income from passive infrastructure is recognized on accrualbasis (net of reimbursements) as per the contractual terms on straightline method over the contract period.

Unbilled receivables represent revenues recognized from the bill cycledate to the end of each month. These are billed in subsequent periodsas per the terms of the billing plans.

Debts (net of security deposits outstanding there against) due fromsubscribers, which remain unpaid for more than 90 days from the date ofbill and/or other debts which are otherwise considered doubtful, areprovided for.

Provision for doubtful debts on account of interconnect usage charges

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(IUC), roaming charges and passive infrastructure sharing from othertelecom operators is made for dues outstanding more than 180 days fromthe date of billing other than cases when an amount is payable to thatoperator or in specific case when management is of the view that theamount is recoverable.

10. Investments:

Current investments are stated at lower of cost or fair value inrespect of each separate investment.

Long-term investments are stated at cost less provision for diminutionin value other than temporary, if any.

11. Borrowing Cost:

Interest and other costs incurred in connection with the borrowing ofthe funds are charged to revenue on accrual basis except thoseborrowing costs which are directly attributable to the acquisition orconstruction of those fixed assets, which necessarily take asubstantial period of time to get ready for their intended use. Suchcosts are capitalized with the fixed assets.

12. Licence Fees Revenue Share:

With effect from 1st August, 1999 the variable licence fee computed atprescribed rates of revenue share is being charged to the profit andloss account in the period in which the related revenue arises. Revenuefor this purpose comprises adjusted gross revenue as per the licenceagreement of the licence area to which the licence pertains.

13. Use of Estimate:

The preparation of financial statements in conformity with generallyaccepted accounting principles requires estimates and assumptions to bemade that affect the reported amounts of assets and liabilities anddisclosure of contingent liabilities on the date of the financialstatements and the reported amounts of revenues and expenses during thereporting year. Differences between actual results and estimates are

recognised in the periods in which the results are known / materialise.14. Leases:

a) Operating: Lease of assets under which significant risks and rewardsof ownership are effectively retained by the lessor are classified asoperating leases. Lease payments under an operating lease arerecognised as expense in the profit and loss account, on astraight-line or other systematic basis over the lease term.

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b) Finance: Leased assets acquired on which significant risk and rewardof ownership effectively transferred to the Company are capitalised atlower of fair value or the amounts paid under such lease arrangements.Such assets are amortised over the period of lease or estimated life ofsuch assets whichever is less.

15. Earnings Per Share:

The earnings considered in ascertaining the Company''s EPS comprises thenet profit after tax, after reducing dividend on Cumulative PreferenceShares for the period (irrespective of whether declared, paid or not),as per Accounting Standard 20 on Earnings Per Share, issued by theInstitute of Chartered Accountants of India. The number of shares usedin computing basic EPS is the weighted average number of sharesoutstanding during the period. The diluted EPS is calculated on thesame basis as basic EPS, after adjusting for the effects of potential

dilutive equity shares unless the effect of the potential dilutiveequity shares is anti-dilutive.16. Impairment of Assets:

Assets are reviewed for impairment whenever events or changes incircumstances indicate that the carrying amount may not be recoverable.An impairment loss is recognized in accordance for AS-28 Impairment ofAssets, for the amount by which the asset''s carrying amount exceedsits recoverable amount as on the carrying date. The recoverable amountis higher of the asset''s fair value less costs to sell vis--vis valuein use. For the purpose of impairment, assets are grouped at the lowestlevels for which there are separately identifiable cash flows.

17. Provisions & Contingent Liability:

Provisions are recognized when the Company has a present obligation asa result of past events; it is more likely than not that an outflow ofresources will be required to settle the obligation; and the amount hasbeen reliably estimated. A contingent liability is disclosed wherethere is a possible obligation or a present obligation that may, butprobably will not, require an outflow of resources.

18. Issue Expenditure:Expenses incurred in connection with issue of equity shares areadjusted against share premium.

19. Employee Stock Option:

In respect of stock options granted pursuant to the company''s EmployeeStock Option Scheme, the intrinsic value of the option is treated asdiscount and accounted as employee compensation cost over the vesting

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period.In respect of re-pricing of existing stock option, the incrementalintrinsic value of the option is accounted as employee cost over theremaining vesting period.

CAPITAL

STRUCTUREANALYSIS OF

BHARTI AIRTEL

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CAPITALSTRUCTURE

ANALYSIS OFIDEA CELLULER

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SHARE HOLDINGPATTERN OF

BHARTI AIRTEL

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SHARE HOLDING

PATTERN OFIDEA CELLULER

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CASH FLOW

STATEMENT OFBHARTI AIRTEL

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CASH FLOW STATEMENT ANALYSIS FORBHARTI AIRTEL

Types of Cash

Flows 2008-09 2009-10 2010-11

Operating

activities

11853.1

5

12692.6

3 13215.4

Investing

activities -10894.3 -10601.6 -19075

Financing

activities -672 -2539.3 5646.5

TOTAL 286.77 -448.35 -213.1

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CASH FLOWSTATEMENT OFBHARTI AIRTEL

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CASH FLOW STATEMENT ANALYSIS FORIDEA CELLULER

Types of Cash

Flows 2008-09 2009-10 2010-11

Operating

activities 1863.74 1985.14 4500.7

Investing

activities -7655.3 -2095.9 -7644.4

Financing

activities 7639 -2530.5 3314.83

TOTAL 1847.37 -2641.3 171.09

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COMMON SIZESTATEMENTANALYSIS OFBHARTI AIRTEL

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COMMON SIZE STATEMENTS

P&L A/C of AIRTEL

March '09 % March'10 % March'11 %

Income

Sales Turnover 34,048.32 35,609.54 38,015.80

Excise Duty 0 0 0

Net Sales 34,048.32 35,609.54 38,015.80

Other Income -1,261.75 1,118.46 218.2

Stock Adjustments 5.29 -34.91 7.2

Total Income 32,791.86 100.00 36,693.09 100 38,241.20

Expenditure

Raw Materials 286.94 0.88 278.72 0.76 251.3

Power & Fuel Cost 0 0 0

Employee Cost 1,397.54 4.26 1,401.66 3.82 1,304.50

Other Manufacturing Expenses 8,627.13 26.31 11,882.41 32.38 14,204.20

Selling and Admin Expenses 9,385.68 28.62 6,856.42 18.69 8,137.70

Miscellaneous Expenses 1,409.89 4.3 1,482.39 4.04 699.6

Preoperative Exp Capitalised -269.25 -0.82 -293.31 -0.8 0

Total Expenses 20,837.93 63.55 21,608.29

58.89

24,597.30

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BALANCE SHEET OF AIRTELSources Of Funds

March'09

%March

'10%

March'11 %

Total Share Capital 1,898.24 5.37 1,898.77 4.55 1,898.80 3.39

Equity Share Capital 1,898.24 1,898.77 1,898.80 Share Application Money 116.22 186.09 278.6

Preference Share Capital 0 0 0

Reserves25,627.3

8 72.4834,650.1

9

41,932.10 74.87

Revaluation Reserves 2.13 0.006 2.13 2.1 0.004

Networth27,643.9

736,737.1

8

44,111.60

Secured Loans 51.73 0.15 39.43 0.094 17.1 0.03

Unsecured Loans 7,661.92 21.67 4,999.49 11.9711,880.4

0 21.21

Total Debt 7,713.65 21.82 5,038.92 12.0611,897.5

021.24

Total Liabilities35,357.6

241,776.1

0

56,009.10

Application Of Funds

Gross Block37,266.7

044,212.5

3

61,437.50

Less: Accum. Depreciation12,253.3

416,187.5

6

20,736.70

Net Block25,013.3

628,024.9

7

40,700.80

Capital Work in Progress 2,566.67 7.26 1,594.74 3.82 6,497.60 11.6

Investments 11,777.76 33.31 15,773.32 37.76 11,813.00 21.09

Inventories 62.15 0.18 27.24 0.065 34.4 0.06

Sundry Debtors 2,550.05 7.21 2,104.98 5.04 2,375.80 4.24

Cash and Bank Balance 153.44 0.43 54.89 0.13 126.6 0.23

Total Current Assets 2,765.64 7.82 2,187.11 5.23 2,536.80 4.53

Loans and Advances 5,602.83 15.85 7,072.42 16.9311,186.1

0 19.97

Fixed Deposits 2,098.16 5.93 761.86 1.82 7.2 0.14

Total CA, Loans & Advances10,466.6

3 29.610,021.3

923.99

13,730.10 24.51

Deffered Credit 0 0 0

Current Liabilities 13,832.49 39.12

12,979.55

31.07 16,104.80 28.75

Provisions 634.4 1.79 658.75 1.58 627.6 1.12

Total CL & Provisions14,466.8

9 40.9213,638.3

032.65

16,732.40 29.87

Net Current Assets -4,000.26 -11.31 -3,616.91 -8.66 -3,002.30 -5.36

Miscellaneous Expenses 0.09 0.0003 0 0

Total Assets35,357.6

241,776.1

2

56,009.10

Contingent Liabilities4,104.25 3,921.50

49,771.40

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Book Value (Rs) 145.01 96.24 115.42

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COMMON SIZESTATEMENT

ANALYSIS OFIDEA CELLULER

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P&L A/C of AIRTEL

March '09 % March'10 % March'11 %

Income

Sales Turnover 34,048.32 35,609.54 38,015.80

Excise Duty 0 0 0

Net Sales 34,048.32 35,609.54 38,015.80

Other Income -1,261.75 1,118.46 218.2

Stock Adjustments 5.29 -34.91 7.2

Total Income 32,791.86 100.00 36,693.09 100 38,241.20

Expenditure

Raw Materials 286.94 0.88 278.72 0.76 251.3

Power & Fuel Cost 0 0 0

Employee Cost 1,397.54 4.26 1,401.66 3.82 1,304.50

Other Manufacturing Expenses 8,627.13 26.31 11,882.41 32.38 14,204.20

Selling and Admin Expenses 9,385.68 28.62 6,856.42 18.69 8,137.70

Miscellaneous Expenses 1,409.89 4.3 1,482.39 4.04 699.6

Preoperative Exp Capitalised -269.25 -0.82 -293.31 -0.8 0

Total Expenses 20,837.93 63.55 21,608.29

58.89

24,597.30

BALANCE SHEET OF AIRTEL

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Sources Of FundsMarch'09

%March

'10%

March'11 %

Total Share Capital 1,898.24 5.37 1,898.77 4.55 1,898.80 3.39

Equity Share Capital 1,898.24 1,898.77 1,898.80

Share Application Money 116.22 186.09 278.6

Preference Share Capital 0 0 0 Reserves

25,627.38 72.48

34,650.19

41,932.1

0 74.87


Networth27,643.9

736,737.1

8

44,111.60

Secured Loans 51.73 0.15 39.43 0.094 17.1 0.03

Unsecured Loans 7,661.92 21.67 4,999.49 11.9711,880.4

0 21.21

Total Debt 7,713.65 21.82 5,038.92 12.0611,897.5

0 21.24


241,776.1

0

56,009.10


Gross Block37,266.7

044,212.5

3

61,437.50


416,187.5

6

20,736.70

Net Block25,013.3

628,024.9

7

40,700.80

Capital Work in Progress 2,566.67 7.26 1,594.74 3.82 6,497.60 11.6

Investments11,777.7

6 33.3115,773.3

237.76

11,813.00 21.09

Inventories 62.15 0.18 27.24 0.065 34.4 0.06

Sundry Debtors 2,550.05 7.21 2,104.98 5.04 2,375.80 4.24Cash and Bank Balance 153.44 0.43 54.89 0.13 126.6 0.23

Total Current Assets 2,765.64 7.82 2,187.11 5.23 2,536.80 4.53

Loans and Advances 5,602.83 15.85 7,072.42 16.9311,186.1

0 19.97

Fixed Deposits 2,098.16 5.93 761.86 1.82 7.2 0.14


3 29.610,021.3

923.99

13,730.10 24.51

Deffered Credit 0 0 0

Current Liabilities13,832.4

9 39.1212,979.5

531.07

16,104.80 28.75

Provisions 634.4 1.79 658.75 1.58 627.6 1.12

Total CL & Provisions 14,466.89 40.92

13,638.30

32.65 16,732.40 29.87

Net Current Assets -4,000.26 -11.31 -3,616.91 -8.66 -3,002.30 -5.36

Miscellaneous Expenses 0.09 0.0003 0 0


241,776.1

2

56,009.10

Contingent Liabilities4,104.25 3,921.50

49,771.40

Book Value (Rs) 145.01 96.24 115.42

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CSR ACTIVITIESOF BHARTIAIRTEL

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CSR ACTIVITIES OF AIRTEL.Trust / Foundation

for CSRBharti Foundation

CSR Areas 1. Children2. Community Welfare3. Disaster Relief

4. Education5. Energy6. Environment7. Girl Child8. Healthcare9. Poverty Eradication10. Rural Development11. Vocational Training

Three mainCSR activities 1. Education2. Community Welfare3. Environment

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AWARDS &ACHIEVEMENTSOF BHARTIAIRTEL

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AWARDS OF AIRTEL

Bharti Airtel awarded the prestigious QCI-DL Shah Award on Economics of Quality

Award is recognition of the initiatives taken by the organization toenhance customer delight using Six Sigma methodology

Honble President of India Dr. A.P.J. Abdul Kalam presented theaward.

Bangalore, Dec 11, DHNS:Bharti Airtel has been awarded the Telecom Centre of Excellence(TCOE) Award for service provider with customer focus for bestdelivery of Network Services for the year 2011.

Telecom Centres of Excellence (TCOE), in association with theDepartment of Telecommunications (DOT), etc has instituted thisnational award.

NEW DELHI: Bharti Airtel, the country's top telecom company, hasbagged the "Best Global Wholesale Carrier for 2009" award at theTelecoms World Awards Middle East held in Dubai.

Telecoms World is an annual award function of Terrapinn, a businessmedia organisation for global telecom carriers and services provider.

Bharti Airtel ranked Best Telecom Company in Gujarat at GESIA Annual Awards

Bharti Airtel one of the Asia's leading integrated telecom serviceprovider was recognised as the Best telecom company in Gujarat at the3rd edition of GESIA Annual awards, given away in Ahmedabadrecently.

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CSR ACTIVITIESOF IDEACELLULAR

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CSR ACTIVITIES OF IDEA

Trust / Foundation for CSRAditya Birla Centre for Community Initiativesand Rural Development

CSR Areas 1. Community Welfare2. Education3. Environment

Three main CSR activities 1. Environment

2. Community Welfare3. Education

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AWARDS &ACHIEVEMENTSOF IDEACELLULAR

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AWARDS OF IDEA

1) New Delhi, 3rd January 2012: Idea Cellular, Indias 3rd largest mobileoperator and one of the top brands in the country recently won awards for its

brand campaign at the Effies. Idea bagged the Effies Gold and Silver 2011for the No Idea-Get Idea and Break the language Barrier brandcampaigns respectively.

.2) Both these campaigns also won the industry revered Best Brand Campaign

of the year at the World Communication Awards 2011, held in Londonlast month. Idea is the only Indian company to have won at the AnnualAwards ceremony, which witnessed participation from the worlds biggestcommunications providers.

3) Idea Cellular also won the Advertiser of the Year title at the grandexchange4medias Golden Mikes Radio Advertising Awards 2011.

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HUMANRESOURCEANALYSIS FORBHARTI AIRTEL

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HUMAN RESOURCE ANALYSIS AIRTEL

Talent Acquistion

Building supply chain of talented workforce

In-sourcing large number of employees with Airtels channel partners andassociates

Establishing and implementing objective recruitment tools such as conducting on-line tests based on psychometric profile, aptitude and skills assessment

Conducting competency mapping of every role holder

Employee Engagement and Development

Offering Study while Work programmes

Setting benchmarks in employee reward and recognition

Implementing employee friendly HR policies

Interacting with employees through open houses, employee forums and helplines

etc.

Developing role competency matrix

Developing robust communication vehicles

Managing employees lifecycle

Attrition Management

Following a multi pronged approach to address high attrition rates

Developing a strong Bharti Airtel Services community

Defining a clear growth path for all employees

Creating a uniform frontline Sales/ Service Management structure

Creating and implementing effective processes to enhance productivity

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Employee Service Assurance

Educating employees on organisations HR policies and processes

Complying with statutory regulations and company policies

Standardising hygiene factors across various role holders

Conducting employee satisfaction surveys periodically for taking corrective action

BIBLIOGRAPHY

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BIBLIOGRAPHY

WWW.MONEYCONTROL.COMWWW.GOOGLE.COMWWW.KARMAYOG.COMWWW.BHARTIAIRTE.COMWWW.IDEACELLULAR.COM

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http://www.moneycontrol.com/http://www.google.com/http://www.karmayog.com/http://www.bhartiairte.com/http://www.ideacellular.com/http://www.moneycontrol.com/http://www.google.com/http://www.karmayog.com/http://www.bhartiairte.com/http://www.ideacellular.com/


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ANNEXURE(P & L A/C & BALANCE SHEET

FOR THE LAST 5 YRS IN A

SINGLE SPREAD SHEET)

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P & L A/C OF AIRTE

Balance Sheet of Bharti Airtel ------------------- in Rs. Cr. -------------------

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83

Mar '11 Mar '10 Mar '09 Mar '08 Mar '07

12 mths 12 mths 12 mths 12 mths 12 mths

Sources Of Funds

Total Share Capital 1,898.80 1,898.77 1,898.24 1,897.91 1,895.93

Equity Share Capital 1,898.80 1,898.77 1,898.24 1,897.91 1,895.93

Share Application Money 278.60 186.09 116.22 57.63 30.00

Preference Share Capital 0.00 0.00 0.00 0.00 0.00

Reserves41,932.1

034,650.19 25,627.38 18,283.82 9,515.21


Networth44,111.6

036,737.18 27,643.97 20,241.49 11,443.27

Secured Loans 17.10 39.43 51.73 52.42 266.45

Unsecured Loans11,880.4

04,999.49 7,661.92 6,517.92 5,044.36

Total Debt 11,897.50

5,038.92 7,713.65 6,570.34 5,310.81


041,776.10 35,357.62 26,811.83 16,754.08




Gross Block61,437.5

044,212.53 37,266.70 28,115.65 26,509.93


016,187.56 12,253.34 9,085.00 7,204.30

Net Block 40,700.80

28,024.97 25,013.36 19,030.65 19,305.63

Capital Work in Progress 6,497.60 1,594.74 2,566.67 2,751.08 2,375.82

Investments11,813.0

015,773.32 11,777.76 10,952.85 705.82

Inventories 34.40 27.24 62.15 56.86 47.81

Sundry Debtors 2,375.80 2,104.98 2,550.05 2,776.46 1,418.52

Cash and Bank Balance 126.60 54.89 153.44 200.86 239.11

Total Current Assets 2,536.80 2,187.11 2,765.64 3,034.18 1,705.44

Loans and Advances11,186.1

07,072.42 5,602.83 5,103.13 3,160.02

Fixed Deposits 7.20 761.86 2,098.16 302.08 541.35


010,021.39 10,466.63 8,439.39 5,406.81

Deffered Credit 0.00 0.00 0.00 0.00 0.00


012,979.55 13,832.49 12,400.38 9,809.83

Provisions 627.60 658.75 634.40 1,961.95 1,232.84


013,638.30 14,466.89 14,362.33 11,042.67

Net Current Assets -3,002.30 -3,616.91 -4,000.26 -5,922.94 -5,635.86

Miscellaneous Expenses 0.00 0.00 0.09 0.20 2.66


41,776.12 35,357.62 26,811.84 16,754.07


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BALANCE SHEET OF AIRTEL

Balance Sheet of Bharti Airtel ------------------- in Rs. Cr. -------------------

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Sources Of Funds





Reserves41,932.1

034,650.19 25,627.38 18,283.82 9,515.21


Networth44,111.6

036,737.18 27,643.97 20,241.49 11,443.27

Secured Loans 17.10 39.43 51.73 52.42 266.45

Unsecured Loans11,880.4

04,999.49 7,661.92 6,517.92 5,044.36

Total Debt 11,897.50

5,038.92 7,713.65 6,570.34 5,310.81


041,776.10 35,357.62 26,811.83 16,754.08




Gross Block61,437.5

044,212.53 37,266.70 28,115.65 26,509.93


016,187.56 12,253.34 9,085.00 7,204.30

Net Block 40,700.80

28,024.97 25,013.36 19,030.65 19,305.63

Capital Work in Progress 6,497.60 1,594.74 2,566.67 2,751.08 2,375.82

Investments11,813.0

015,773.32 11,777.76 10,952.85 705.82

Inventories 34.40 27.24 62.15 56.86 47.81

Sundry Debtors 2,375.80 2,104.98 2,550.05 2,776.46 1,418.52


Total Current Assets 2,536.80 2,187.11 2,765.64 3,034.18 1,705.44

Loans and Advances11,186.1

07,072.42 5,602.83 5,103.13 3,160.02

Fixed Deposits 7.20 761.86 2,098.16 302.08 541.35


010,021.39 10,466.63 8,439.39 5,406.81

Deffered Credit 0.00 0.00 0.00 0.00 0.00


012,979.55 13,832.49 12,400.38 9,809.83

Provisions 627.60 658.75 634.40 1,961.95 1,232.84


013,638.30 14,466.89 14,362.33 11,042.67

Net Current Assets -3,002.30 -3,616.91 -4,000.26 -5,922.94 -5,635.86



41,776.12 35,357.62 26,811.84 16,754.07


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P&L A/C of IDEA

Profit & Loss account of Idea Cellular ------------------- in Rs. Cr. -------------------



Income

Sales Turnover15,332.8

011,850.24 9,857.08 6,719.99 4,366.40

Excise Duty 0.00 0.00 0.00 0.00 0.00

Net Sales15,332.8

011,850.24 9,857.08 6,719.99 4,366.40

Other Income 109.23 383.83 401.80 184.17 27.64

Stock Adjustments 0.00 0.00 -0.05 0.00 -1.20

Total Income15,442.0

312,234.07 10,258.83 6,904.16 4,392.84

Expenditure

Raw Materials 0.02 0.02 18.92 0.01 4.06

Power & Fuel Cost 1,392.66 942.27 533.54 224.40 109.46

Employee Cost 719.38 561.17 458.46 332.88 251.43

Other Manufacturing Expenses 7,412.44 5,187.63 4,022.86 2,643.43 1,388.33

Selling and Admin Expenses 2,082.93 1,823.48 1,621.90 974.08 959.34


Preoperative Exp Capitalised 0.00 0.00 0.00 0.00 -0.08

Total Expenses 11,715.35

8,606.15 6,738.44 4,228.67 2,751.23



Operating Profit 3,617.45 3,244.09 3,118.59 2,491.32 1,613.97

PBDIT 3,726.68 3,627.92 3,520.39 2,675.49 1,641.61

Interest 894.82 982.44 1,206.35 695.85 478.26

PBDT 2,831.86 2,645.48 2,314.04 1,979.64 1,163.35

Depreciation 1,723.00 1,366.61 1,096.72 756.85 563.67

Other Written Off 250.02 184.59 146.13 119.91 108.14

Profit Before Tax 858.84 1,094.28 1,071.19 1,102.88 491.54

Extra-ordinary items 47.46 91.61 15.68 13.97 5.23

PBT (Post Extra-ord Items) 906.30 1,185.89 1,086.87 1,116.85 496.77

Tax 61.72 115.08 85.65 72.50 6.99

Reported Net Profit 844.60 1,053.66 1,001.21 1,044.36 502.06

Total Value Addition11,715.3

28,606.12 6,719.52 4,228.66 2,747.16

Preference Dividend 0.00 0.00 0.00 0.00 0.00

Equity Dividend 0.00 0.00 0.00 0.00 0.00

Corporate Dividend Tax 0.00 0.00 0.00 0.00 0.00

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Per share data (annualised)

Shares in issue (lakhs)33,032.7

232,998.38 31,000.95 26,353.61 25,928.61

Earning Per Share (Rs) 2.56 3.19 3.23 3.96 1.94

Equity Dividend (%) 0.00 0.00 0.00 0.00 0.00

Book Value (Rs) 37.18 34.59 36.37 13.44 8.4

BALANCE SHEET of IDEA

Balance Sheet of Idea Cellular ------------------- in Rs. Cr. -------------------



Sources Of Funds





Reserves 8,979.62 8,112.95 8,176.09 906.91 -413.71


Networth12,330.7

011,457.24 11,294.42 3,546.03 2,179.15

Secured Loans 7,760.04 5,988.61 5,564.93 5,454.43 3,539.77

Unsecured Loans 2,797.42 537.81 2,014.43 1,060.33 710.74

Total Debt10,557.4

66,526.42 7,579.36 6,514.76 4,250.51


617,983.66 18,873.78 10,060.79 6,429.66




Gross Block28,938.7

522,834.40 15,562.75 12,791.22 8,229.61

Less: Accum. Depreciation 9,807.13 7,907.34 4,739.86 3,123.83 2,637.18

Net Block19,131.6

214,927.06 10,822.89 9,667.39 5,592.43

Capital Work in Progress 3,594.05 462.58 1,721.82 941.13 506.52

Investments 2,572.81 2,755.13 4,928.81 569.93 13.83

Inventories 52.22 46.70 42.73 27.62 17.91

Sundry Debtors 461.45 430.12 329.59 198.59 152.48


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Total Current Assets 561.14 605.95 513.18 373.88 293.15

Loans and Advances 2,941.45 3,533.15 2,278.21 950.88 560.82

Fixed Deposits 404.07 151.31 2,203.57 349.38 1,696.97

Total CA, Loans & Advances 3,906.66 4,290.41 4,994.96 1,674.14 2,550.94

Deffered Credit 0.00 0.00 0.00 0.00 0.00

Current Liabilities 6,187.79 4,313.76 3,496.04 2,709.98 2,180.21

Provisions 129.17 137.76 98.65 81.82 53.84

Total CL & Provisions 6,316.96 4,451.52 3,594.69 2,791.80 2,234.05

Net Current Assets -2,410.30 -161.11 1,400.27 -1,117.66 316.89



817,983.66 18,873.79 10,060.79 6,429.67

Contingent Liabilities 3,409.89 1,960.75 2,279.41 2,308.87 1,236.57

Book Value (Rs) 37.18 34.59 36.37 13.44 8.40

Final Fsa Project

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