Csr on Airtel

8/3/2019 Csr on Airtel

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HEADQUARTER:-New Delhi, India

AREA SERVED:-Asia &African Countries

ADDRESS:-

Bharti Cresent

1, Nelson Mandela Road, Vasant kunj

New Delhi,

Delhi-110070Tel-011-46666100 011-46666500

Fax- 011-4666100 011-41666149

Email- [email protected]

Website- http//www.airtel.com

Group- Bharti Group

KEY PEOPLE:-Sunil Bharti Mital (chairman&MD)

Sanjay Kapoor (CEO)SHAMINIRAMALINGAM ( Director internal assurance of bharti airtel limited.)S. ASOKAN (Executive director - supply chain)SRIKANTH BALA CHANDER (Chief financial officer )

ATUL BINDAL (President mobile services)

JYOTI PAWAR ( Director legal and regulatory of bharti airtel limited)

JOACHIM HORN (Executive director network services group)


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PRODUCT:-Wireless

Telephone

Internet

Satellite Television

LIST OF COUNTRIES IN WHICH AIRTEL OPERATE:-

Bangladesh

Burkina Faso

Ghana

India

Kenya

Malawi

Sri Lanka

Uganda

Tanzania

HISTORY OF BHARTI AIRTEL:-

Each year of Airtels existence has been marked by historic and far reaching

milestones including many firsts, all to which have been stepping stones to their

success and performance. A brief history of the Companys major events is:

1995-96

Mobile services under the brand name Airtel launched for the first time in Delhi

and Himachal Pradesh

1997-1998


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The first private telecom service provider to obtain a license fro landline telephony

in Madhya Pradesh Incorporation of Bharti BT VSAT Ltd. For providing VSAT solutions

across India and Bharti BT Internet Ltd.

1999-2000

The larges private sector telecom operator in India after acquiring JT Mobile for

providing cellular services in Punjab, Karnataka and Andhra Pradesh Acquires

Skycell, Chennai and expands its south Indian foot print Singapore

Telecommunications Ltd. (SingTel) acquires Telecom Italias equity stake in the Company.

2001-2002

India One, Indias first private sector national and international long distance

service launched. Eastern foray through acquisition and new licenses for eight new

circles across India .Indias first private submarine cable landing station in a joint

venture with Singtel. Initial Public offering through Indias first 100% book-building

issue. First private operator to offer basic telephone services in Haryana Delhi

Tamil Nadu and Karnataka

2003-2004

Join the US $1 billion revenue club Strategic partnerships with IBM and Ericsson

for outsourcing of the companys core IT and network activities. Acquires a

controlling stake in Hexacom, the leading mobile operator in Rajasthan and holding

a license to offer services in the North East. First private operator to launch mobile

services in Jammu and Kashmir . Founding member of the Bridge Mobile

Alliance, a consortium of seven leading mobile operators in the region.

2005-2006

All-India foot print with the launch of mobile services in Assam. Becomes Indias

largest intergrated private operator based on the total customer base

2006-2008

Profit crosses US $ billion. Receives license for providing 2G and 3G mobile

services in Srilanka Launch of Airtel Call Home service, a calling card service for

various countries aimed at the Indian diaspora. Strategic partnership with Google,

enabling search through mobile phones.Strategic tie-up with Microsoft andbecomes the first telecom operator to offer Microsoft Windows Mobile 5.0

Facility Based operator license in Singapore, enabling the company to operate

international carrier facilities from Singapore. Joins international consortia of

leading telecom companies to build 3 high bandwidth submarine cables AAG,I-ME-

WE AND Unity. Receives US $ 1.275 billion investment from leading international


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investors in Bharti Infratel, a subsidiary established with the aim to provide

passive infrastructure services to all mobile services operators in India

GROUPS OF BHARTI AIRTEL:-

Bharti Airtel

Bharti Teletech

Bharti Del Monte India

Bharti Axa General Insurance

Bharti Axa Life Insurance

Bharti Infratel

Bharti Axa Investment

Bharti Realty

Bharti Retail

BRIEF PROFILE OF COMPETITIOR:-

Bharat Sanchar Nigam Limited:-

Bharat Sanchar Nigam Limited (BSNL) keeps most of India talking. The country's

largest landline company provides local-exchange access and domestic long-

distance services through a network of more than 46 million access lines covering

most of India. (It does not provide service in Delhi and Mumbai.) Serving business

and individual customers, it also offers GSM and CDMA-based wirelesscommunications, satellite service, telegraph, data and Internet services, and

managed network services. Cellular service CellOne has 55 million subscribers on

a mostly 2G network. BSNL is one of two state-controlled telcos in India, along

with Mahanagar Telephone Nigam Limited (MTNL), which serves Delhi and Mumbai.


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Tata Communication Limited:-

Tata Communications Limited has a hold on the wholesale voice market in India

and beyond. The company, which primarily provides international long-distance

telephone service, owns and operates a network servicing more than 200

countries. It also offers network and data services to enterprises and

supplies transmission backbone and data services to other

telecommunications companies over one of the largest global IP networks. Outside

of India, Tata Communications operates from offices in Australia, Europe, Hong

Kong, North America, Russia, Singapore, and the United Arab Emirates. The

company is part of Indian industrial conglomerate Tata Group.

Reliance Communication:-

Reliance Communications has a reliable, high-capacity, integrated (both wireless

and wireline) and convergent (voice, data and video) digital network. It is capable

of delivering a range of services spanning the entire info comm (information and

communication) value chain, including infrastructure and services for

enterprises as well as individuals, applications, and consulting.

Today, Reliance Communications is revolutionising the way India communicates

and networks, truly bringing about a new way of life

Idea Cellular Limited:-

Idea Cellular Limited was incorporated in 1995. The company is among the top

four mobile telephony players in India with an 11 per cent all-India subscribersmarket share. More importantly, it ranks third in terms of wireless revenue market

share at 13.6 per cent.

Idea ranks second with 23.6-per cent revenue market share in nine service areas

where it holds 900 MHz spectrum and which derive about 41 per cent of the

industrys all-India revenues (based on gross revenues for UAS and Mobile lic


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Idea has now launched 3G services in nine service areas and is committed to

extending services into 10 new towns per day to progressively grow to cover 4,000

towns by the end of FY 2012.enses only, for March 2011 quarter, as released by

TRAI)

Idea has won numerous awards and is the only Indian GSM operator to win the

prestigious GSM Association Award consecutively in the best mobile technology

category for the Best Billing and Customer Care Solution both in 2006 and in 2007,

even in the face of international competition.

BANKERS DETAILS:-

State Bank of India:-

State Bank of India, the countrys largest commercial bank, and bharti airtel,

Indias largest telecommunications company they have entered into a joint Venture

(JV) agreement to make available banking services to Indias unbanked millions.

The newly formed entity, will harness the power of state bank's strengths and

airtels mobile telephony to add value to the banking and financial services sector

and empower millions of financially excluded in the country to enhance their

livelihood and quality of life. The Joint Venture will become the Business

Correspondent of SBI and offer banking products and services at affordable cost to

the citizens in unbanked and other areas.

Mr. Sunil Bharti Mittal, Chairman and Managing Director, Bharti airtel said, "This

historic collaboration between SBI and airtel brings together two sectors that have

made the most impact in addressing inclusive growth. The services offered by the

JV will enable financial inclusion and economic empowerment for people across

India. This will be a complete game changer, leveraging SBIs expertise in the

banking sector along with airtels 150 million strong customer base and ecosystem

of over 1.5 million retailers and distributors across India. Together, we will create

a scalable operation that will address the banking requirements of millions of

Indians through the mobile platform


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HDFC Bank:-

Airtel Corporate connection (postpaid no 9818691553), which is also an eye-opener

on the practices followed by this reputed corporate, the dadagiri they impose on

customers; the sheer negligence on part of HDFC Bank in resolving net-banking

issues and the unprofessional behavior of customer cares on both sides

Standard Chartered Bank:-

Standard Chartereds Connect N Save Account is a revolutionary product offering

that helps you save upto 30%** on your Airtel mobile bills - Smarter Banking,

Lighter Phone Bills!

HUMAN RESOURCE MANAGEMENT:-

HR Practices in Airtel. HR helps the organization to manage its human assets

more strategically so that it can attain higher levels of performance and greater

profitability. The HR manager assists employees in finding ways to increase

productivity and to reinforce the organization's core competencies by teaching

skills that contribute to organizational growth. Additionally, HR works to develop

an environment that encourages affiliation, responsibility and commitment.

Human Resource management functions:-

Analyses jobs and skills needed in the organization.

Assesses, develops and implements policies, procedures and systems.

Recruits and selects workers- Appraises performance.

Rewards workers through the implementation of compensation systems.

Designs and delivers training, development and educational programsfor employees to provide the organization with the skilled resources it needs


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There are two process in HRM:-

RECRUITMENT

Recruitment is the process concerned with the identification of sources fromwhere the personnel can be employed and motivating them to offer them selves for

employment. Werther and Davis have defined this as follows; Recruitment is the

process of finding and attracting capable applicants for employment.

The Process begins when new recruits are sought and ends when their applicants

are submitted. The result is a pool of applicants from which new employees are

selected. Lord has defined, Recruitment is a form of competition. Just as

corporations compete to develop, manufacture, and market the best product or

service, so they must also compete to identify, attract and hire the most qualified

people.

Recruitment is a business, and it is big business. Thus, recruitment process is

concerned with the identification of possible sources of human resource supply

and tapping those sources

SELECTION

Selection can be conceptualized in terms of either choosing the fit candidates,

or rejecting the unfit candidates, or a combination of both. Selection involves

both because it picks up the fits and rejects the unfits. In fact, in Indian context,

there are more candidates who are rejected than those who are selected in most

of the selected processes.

Therefore, sometimes, it is called a negative process in contrast to positive

program of recruitment. Stone has given a formal definition; Selection is the

process of differentiating between applicants in order to identify (and hire) those

with a greater likelihood of success in a job.

Difference between Recruitment and Selection At this stage, it is worthwhile tounderstand difference between recruitment and selection as both these terms are

often used together or sometimes inter changeably .Flippo described in the

following statement:

Recruitment is a process of searching for prospective employees and stimulating

and encouraging them to apply for jobs in an organization. It is often termed

positive in that it stimulates people to apply for jobs to increase the hiring ratio,


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i.e., the number of applicants for a job. Selection, on the other hand, tends to be

negative because it rejects a good number of those who apply, leaving only the

best to be hiredGOALS OF RECRUITMENT:-

To attract highly qualified individuals.

To provide an equal opportunity for potential candidates to apply for vacancies.

GOALS OF SELECTION:-

To systematically collect information about to meet the requirements of the

advertised position.

To select a candidate that will be successful in performing the tasks and meeting

the responsibilities of the position.

To engage in hiring activities that will result in eliminating the under utilization of

women and minorities in particular departments.

To emphasize active recruitment of traditionally under represented groups i.e.

individuals with disabilities, minority group members, women, and veterans.

MARKETING MANAGEMENT:-

Bill Generation:

Bill generation can be of three types: ad-hoc billing, warm (HOT) billing and cycle

wise billing. The system takes care of multiple billing cycles and multiple billing

groups.

Pre-bill processing:

This process is mainly used for calculating the recurring amount of each bill cycle.

Final bill generation:

This process starts after pre-bill processing and it calculates the total bill and its

corresponding discounts for every subscriber. Other than total bill calculation, it

takes care of volume pricing, flat discount, and volume discount.


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Bill Posting:

Records are posted to their corresponding subscriber's account after bill

generation.

Bill Printing:

Printing can be distributed over various printers in the network. In addition,

printing can be selective depending on the account a Accounts & Payment

Online Payment:

Payment can be done over the counter, which is online.

Offline Payment:

Payment can be collected manually and it can be entered into the system

collectively (in batch).

Payment Adjustment:

Adjustment can be made against accounts in case of both online and offline

payment.

Refund:

The Billing System is capable of providing refunds to its customers.

Bill Follow-up:

In case of late payment, bill follow-up is necessary. System is capable of

generating reminders in case of late paymentnd subscriber number.


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Packaging:-

This supports the following four types of packages:

Primary Package: This package is mainly for basic services. It contains four types

of plans: one-time, deposit, recurring, and service usage time.

Value-added Package: This package is designed for all value-added services like

call forwarding, call waiting, busy transfer, STD, ISD etc. It contains four types of

plans: one-time, deposit, recurring, and service usage.

Free Service Package: This package is designed for free minutes or units of calls

only. A particular package can be attached to the customer or a specific free

service can be provided.

Discount Package: This package is designed for discount only. A particular

discount package can be attached to the customer. Discount can be two types--flat

and volume

Voice Plans: Each package is attached to various plans. There are five differentplans:

One-time Charge Plan: This plan is used for one-time charges only.

Deposit Charge Plan: This plan is used for deposit charges only.

Recurring/monthly Charge Plan: This plan is used for recurring charges only.

Service Charge Plan: This plan is used for service charge only.


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Long Distance (National and International) Charge Plan: This plan is used for any

national and international long distance call charge

Customer Care and Administration:

It strives to understand the customer intimately in order to provide services that

match their specific needs. To be successful, Bharti develops long-term

relationships and retain customers that share this model.

For a comprehensive definition of the model for customer excellence, Bhartis plan

includes:

Develop long-term relationships with our customers.

Steer clear of pure transactions or one-time deals.

Do whatever it takes to please the customer.

Educate employees to be adaptable, flexible, and multi-talented.

Create an unmatched value proposition of best total solution for our clients.

Marketing Mix:

The following sections outline the marketing mix for Bharti Airtel. Bharti Airtel has

strategically built this marketing mix to compete effectively and promote a strong

value proposition in the marketplace.


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Price: Bharti Airtel maintains a price that is competitive for quality of services and

service level agreements. Coupled with our strong product and service road map, it

believes that this forms the core of a very strong value proposition.

Features: Within the given service module, Bharti Airtel offers features that meet

or exceed and maintains as per customer expectation.

Service Offering: While service offerings to operators, enterprise and retail

customers Bharti offers a complete package of services at affordable prices.

Product Flexibility: It strives to maintain a lead in the all segments of the market.

In addition, it maintains an open environment.

Scalability: Bharti Airtel continues to engineer scalability into its services.

Promotion:-

One of the key responsibilities of marketing is lead generation. The following

methods are used:-

for lead generation:

Advertising in trade journals;

Trade shows and conferences;

Telemarketing;

User group;

Direct mailing;

Targeted sales calls;

FINANCIAL INDICATOR:-

Director Report:-

OVERVIEW:-


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Bharti Airtel is one of the world''s leading providers of telecommunication services with

presence in 19 countries including India & South Asia and Africa.

The Company served an aggregate of 220.9Mn customers as on March 31, 2011. The

Company is the largest wireless service provider in India, based on the number of

customers as of March 31, 2011.

The Company offers an integrated suite of telecom solutions to its enterprise customers, in

addition to providing long distance connectivity both nationally and internationally.

The Company alsooffers Digital TV and IPTV Services. All these services are rendered

under a unified brand airtel either directly or through subsidiary companies.

The Company also deploys, owns and manages passive infrastructure pertaining to telecom

operations under its subsidiary Bharti Infratel Limited. Bharti Infratel owns 42% of Indus

Towers. Limited. Bharti Infratel and Indus Towers are the largest passive infrastructureservice providers for telecom services in India.

MAJOR AGREEMENTS AND ALLIANCES:-

During the year, the Company signed the following major agreements relating to

operations, customer service, innovation and technology:

- With Ericsson, Nokia Siemens Networks and Huawei for the launch of 3Gservices in India.

These partners will plan, design, deploy and maintain a state of the art 3G HSPA Network in

the Company''s 3G license

AUDITORS REPORT:-

The Board has duly examined the Statutory Auditors'' report to accounts which is self

explanatory and clarifi cations wherever necessary, have been included in the Notes to

Accounts section of the annual report.

As regards the comment under para i (a) of the annexure A to the Auditors'' Report

regarding the updation of quantitative and situation details relating to certain fixed assets

in the Fixed Assets Register, the Company is further strengthening its process for updation

of requisite details at frequent intervals.

As regards the comment under para xxi of the annexure to the Auditors ''Report, to

address the issues of fraud by employees and external parties, the Company has taken

appropriate steps including issuance of warning letters, termination of service of the errant


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employees, termination of the contract/agreements with the external parties, legal action

against the external parties involved, blacklisting the contractors, etc. The Company is

further strengthening its internal control systems to reduce the probability of occurrence of

such events in future.

Profit-Loss Statement:-

In crore---------

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

12 mths 12 mths 12 mths 12 mths 12 m

IncomeSales Turnover 38,015.80 35,609.54 34,048.32 25,761.11 17,851Excise Duty 0.00 0.00 0.00 0.00 0

Net Sales 38,015.80 35,609.54 34,048.32 25,761.11

Other Income 218.20 1,118.46 -1,261.75 104.04 105Stock Adjustments 7.20 -34.91 5.29 9.05 30Total Income 38,241.20 36,693.09 32,791.86 25,874.20 17,987

ExpenditureRaw Materials 251.30 278.72 286.94 42.90 52

Power & Fuel Cost 0.00 0.00 0.00 0.00 0Employee Cost 1,304.50 1,401.66 1,397.54 1,297.88 1,076

Other Manufacturing Expenses 14,204.20 11,882.41 8,627.13 7,339.01 5,017Selling and Admin Expenses 8,137.70 6,856.42 9,385.68 5,892.50 4,030

Miscellaneous Expenses 699.60 1,482.39 1,409.89 535.46 444Preoperative Exp Capitalised 0.00 -293.31 -269.25 0.00 0

Total Expenses 24,597.30 21,608.29 20,837.93 15,107.75 10,621Mar '11 Mar '10 Mar '09 Mar '08 Mar


Operating Profit 13,425.70 13,966.34 13,215.68 10,662.41 7,260PBDIT 13,643.90 15,084.80 11,953.93 10,766.45 7,366

Interest 296.70 283.35 434.16 393.43 282PBDT 13,347.20 14,801.45 11,519.77 10,373.02 7,084

Depreciation 4,193.70 3,890.08 3,206.28 3,166.58 2,353Other Written Off 417.90 207.84 178.82 266.07 137

Profit Before Tax 8,735.60 10,703.53 8,134.67 6,940.37 4,592

Extra-ordinary items 11.80 -50.78 -46.15 -60.67 9PBT (Post Extra-ord Items) 8,747.40 10,652.75 8,088.52 6,879.70 4,602Tax 1,007.60 1,177.87 321.78 632.43 566

Reported Net Profit 7,716.90 9,426.15 7,743.84 6,244.19 4,033Total Value Addition 24,346.00 21,329.56 20,551.00 15,064.84 10,568

Preference Dividend 0.00 0.00 0.00 0.00 0Equity Dividend 379.80 379.79 379.65 0.00 0

Corporate Dividend Tax 60.10 64.55 64.52 0.00 0


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Per share data (annualised)Shares in issue (lakhs) 37,975.30 37,975.30 18,982.40 18,979.07 18,959

Earning Per Share (Rs) 20.32 24.82 40.79 32.90 21Equity Dividend (%) 20.00 20.00 20.00 0.00 0

Book Value (Rs) 115.42 96.24 145.01 106.34 60

Analysis:-

According to Profit Loss statement profit is increasing year by year but Earning

Per Share is fluctuating year by year.

Balance Sheet:-

In crore---------

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


Sources Of Funds

Total Share Capital 1,898.80 1,898.77 1,898.24 1,897.91 1,895Equity Share Capital 1,898.80 1,898.77 1,898.24 1,897.91 1,895

Share Application Money 278.60 186.09 116.22 57.63 30Preference Share Capital 0.00 0.00 0.00 0.00 0

Reserves 41,932.10 34,650.19 25,627.38 18,283.82 9,515Revaluation Reserves 2.10 2.13 2.13 2.13 2

Networth 44,111.60 36,737.18 27,643.97 20,241.49 Secured Loans 17.10 39.43 51.73 52.42 266

Unsecured Loans 11,880.40 4,999.49 7,661.92 6,517.92 5,044Total Debt 11,897.50 5,038.92 7,713.65 6,570.34 5,310

Total Liabilities 56,009.10 41,776.10 35,357.62 26,811.83 16,754Mar '11 Mar '10 Mar '09 Mar '08 Mar


Application Of FundsGross Block 61,437.50 44,212.53 37,266.70 28,115.65 26,509

Less: Accum. Depreciation 20,736.70 16,187.56 12,253.34 9,085.00 7,204

Net Block 40,700.80 28,024.97 25,013.36 19,030.65 Capital Work in Progress 6,497.60 1,594.74 2,566.67 2,751.08 2,375Investments 11,813.00 15,773.32 11,777.76 10,952.85 705

Inventories 34.40 27.24 62.15 56.86 47Sundry Debtors 2,375.80 2,104.98 2,550.05 2,776.46 1,418

Cash and Bank Balance 126.60 54.89 153.44 200.86 239Total Current Assets 2,536.80 2,187.11 2,765.64 3,034.18 1,705

Loans and Advances 11,186.10 7,072.42 5,602.83 5,103.13 3,160


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Fixed Deposits 7.20 761.86 2,098.16 302.08 541Total CA, Loans & Advances 13,730.10 10,021.39 10,466.63 8,439.39 5,406

Deffered Credit 0.00 0.00 0.00 0.00 0Current Liabilities 16,104.80 12,979.55 13,832.49 12,400.38 9,809

Provisions 627.60 658.75 634.40 1,961.95 1,232

Total CL & Provisions 16,732.40 13,638.30 14,466.89 14,362.33 11,042 Net Current Assets -3,002.30 -3,616.91 -4,000.26 -5,922.94 Miscellaneous Expenses 0.00 0.00 0.09 0.20 2

Total Assets 56,009.10 41,776.12 35,357.62 26,811.84 16,754

Contingent Liabilities 49,771.40 3,921.50 4,104.25 7,140.59 7,615

Book Value (Rs) 115.42 96.24 145.01 106.34 60

RATIOS:-

Turnover Ratios:-

The percentage of a mutual fund or other investment vehicle's holdings that have

been "turned over" or replaced with other holdings in a given year. The type

of mutual fund, its investment objective and/or the portfolio manager's investing

style will play an important role in determining its turnover ratio .

Total Asset Turn over Ratio= Net Sales/ Total Asset

YEAR CALCULATION RATIOS

2007 17851.61/16754.07 1.065

2008 25761.11/26811.84 0.960

2009 34048.32/35357.62 0.962

2010 35609.54/41776.12 0.852

2011 38015.80/56009.10 0.678

Analysis:-

Total asset turn over ratio is decreasing from year 2007 to 2011. In 2007 company

used more asset which is good for company.

Liquidity Ratios:-


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A class of financial metrics that is used to determine a company's ability to pay off

its short-terms debts obligations. Generally, the higher the value of the ratio,

the larger the margin of safety that the company possesses to cover short-term

debts.

Current Ratio = Current Asset/Current Liabilities


2007 1705.44/9809.83 0.173

2008 3034.18/12400.38 0.244

2009 2765.64/13832.49 0.199

2010 2187.11/12979.55 0.168

2011 2536.80/16104.80 0.157

Analysis:-

Current ratio of the company is fluctuating from year 2007 to 2011. In 2008

company in strong position to pay their short term liabilities.

Quick Ratio = Current asset - Inventory/Current Liabilities


2007 1705.44-47.81/9809.83 0.168

2008 3034.18-56.86/12400.38 0.240

2009 2765.64-62.15/13832.49 0.195

2010 2187.11-27.24/12979.55 0.166

2011 2536.80-34.40/16104.80 0.155

Analysis:-

Quick ratio of the company is fluctuating from year 2007 to 2011. In 2008 company

is in good condition to pay their short term liabilities.


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Net working capital = Total CA Total CL


2007 1705.44-9809.83 -8104.392008 3034.18-12400.38 -9366.2

2009 2765.64-13832.49 -11066.85

2010 2187.11-12979.55 -10792.44

2011 2536.80- 16104.80 -13568

Analysis:-

This company balance sheet shows negative working capital which means

company currently unable to meet its short term liabilities with its current asset.

CONCLUSION:-

From the above interpretation we can say that Bharti Airtel Limited consolidated

its position as one of the largest business group in sector in all major financial

parameter including sales , networth, and assets.

As compared to year 2007 to 2011, through the sales have increased, the fixedassets is also increased, which means that the company is not utilised the assets

to brings down the cost.

The companies current assets has also increased, which shows the improved

liquidity position in the year 2011 as compared to 2007.

But, the earning per share of the company as similar from 2007 to 2011.

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Csr on Airtel