H.R. COLLEGE OF COMMERCE & ECONOMICS

123, Dinshaw Wachha Road, Churchgate, Mumbai - 400020

A PROJECT

ON

“BHARTI AIRTEL- ANNUAL REPORT 2012-13 ANALYSIS”

in the subject of

ADVANCED FINANCIAL ACCOUNTING

SUBMITTED TO

UNIVERSITY OF MUMBAI

FOR (SEM-I ) OF

MASTER OF COMMERCE

BY

Name: Kunal Obhan

Roll No: 68

UNDER THE GUIDANCE OF

Prof. Anjali Vachhani

YEAR 2013-14

1

H.R. COLLEGE OF COMMERCE & ECONOMICS

INTERNAL ASSESSMENT

PROJECT (40 Marks)

Name of the Student Class R. No.

First name : Kunal

Father’s Name : Tavinder

Surname : Obhan

MCOM

PART- I

ACCOUNTS 68

Subject: ADVANCED FINANCIAL ACCOUNTING

Topic for the Project:BHARTI AIRTEL- ANNUAL REPORT 2012-13 ANALYSIS

Marks Awarded Signature

DocumentationInternal Examiner(10 Marks)External Examiner(10 Marks)Presentation(10 Marks)Viva and Interaction(10 Marks)TOTAL MARKS (40 Marks)

2

H.R. COLLEGE OF COMMERCE & ECONOMICS

123, Dinshaw Wachha Road, Churchgate, Mumbai - 400020

DECLARATION BY THE STUDENT

I, Kunal Obhan student of M Com Part-I Roll Number 68 hereby declare that the

project for the Paper Strategic Management titled,

“ BHARTI AIRTEL- ANNUAL REPORT 2012-13 ANALYSIS “

submitted by me for Semester-I during the academic year 2013-14, is based on

actual work carried out by me.

I further state that this work is original and not submitted anywhere else for any

examination.

Signature of Student

3

CONTENTS

Sr. No Particulars Page Nos.

1. About Bharti Airtel 5 – 7

2. Corporate Information 8

3. Contents of Annual Report 9

4. Performance at a glance 10 – 13

5. Balance Sheet 14

6. Statement of Profit and Loss 15

7. Cash Flow Statement 16

8. Financial Results 17

9. Primary Assets of the company 18 – 21

10. Company’s Performance 22 – 23

11. New products and initiatives 24 - 26

12. Corporate Social Responsibility 27 – 34

13. Bibliography 35

4

ABOUT BHARTI AIRTEL

Bharti Airtel Limited is a leading global telecommunications company with operations

in 20 countries across Asia and Africa. Headquartered in New Delhi, India, the

company ranks amongst the top 4 mobile service providers globally in terms of

subscribers. In India, the company's product offerings include 2G, 3G and 4G wireless

services, mobile commerce, fixed line services, high speed DSL broadband, IPTV,

DTH, enterprise services including national & international long distance services to

carriers. In the rest of the geographies, it offers 2G, 3G wireless services and mobile

commerce. Bharti Airtel had over 269 million customers across its operations at the end

of March 2013.

In the 3G and BWA auctions closed last year, Airtel won 13 circles in 3G and 4 circles

in BWA - with a right mix of Urban and Rural markets, complementing our strategy of

focusing on markets with high revenue and high growth potential. We are committed to

give a pan India 3G experience to our customer base in collaboration with leading

telecom operators. We firmly believe that ‘data’ would be the growth driver for India in

the next decade as ‘voice’

was in the last. While 3G will aid in ushering in the data revolution, where the first

internet experience for masses will be through the mobile devices; 4G will add

another dimension to data communication by further enriching the customer

experience.

5

6

New Delhi, October 22nd 2012: Bharti Airtel, a leading telecommunications service

provider with operations in 20 countries across South Asia and Africa moved up one

notch in the world wide ranking to be the fourth largest mobile operator in the world in

terms of subscribers. (Source: Wireless Intelligence 'Scoreboard').

Top Five Operators Globally:

Operator Connections

(millions)*

YoY Growth,

connections

China Mobile 683.08 11 %

Vodafone Group 386.88 5 %

America Movil

Group

251.83 7 %

Bharti Airtel 250.04 13 %

Telefonica Group 243.51 7 %

 

Bharti Airtel had become the fifth largest mobile operator in the world following its

acquisition of Zain Group's mobile operations across 15 African nations in June 2010.

 

Bharti Airtel is:

3rd largest in-country mobile operator in the world

6th largest in-country integrated telecom operator in the world

Ranked number 5 in the best performing technology companies in the world by

business week

India’s most innovative company by Wall Street Journal

Winner of gallup great workplace for being one of the best places to work

worldwide

Ranked 188 in the FT 500 world’s largest companies 2009 ranked by financial

7

times

Corporate information

8

Board of directors

CEO (India & South

Asia) Group General

Counsel &Company Secretary

Mr. Sunil Bharti Mittal Mr. Ajay LalChairman & Managing DirectorMr. Akhil Gupta Ms. Chua Sock Koong

Mr. Craig Ehrlich Lord Evan Mervyn Davies

Mr. Hui Weng Cheong Mr. N. Kumar

Mr. Nikesh Arora Mr. Pulak Prasad

Mr. Rajan Bharti Mittal Mr. Rakesh Bharti Mittal

H.E. Dr. Salim Ahmed Salim Ms. Tan Yong Choo

Mr. Tsun-yan Hsieh Mr. Manoj KohliCEO (International) & Joint Managing Director

Mr. Sanjay Kapoor

Mr. Mukesh Bhavnani

Statutory Auditors

Internal Auditors

Registered & Corporated Office

website

M/s. S. R. Batliboi & AssociatesChartered Accountants

M/s. PricewaterhouseCoopers Private LimitedM/s. ANB Consulting Private Limited

Bharti Crescent, 1, Nelson Mandela Road,Vasant Kunj, Phase – II, New Delhi – 110 070, India

www.airtel.com

9

CONTENTS OF ANNUAL REPORT

An annual report is a comprehensive report on a company's activities throughout the

preceding year.  Annual reports are intended to give shareholders and other interested

people information about the company's activities and financial performance.

An annual publication that public corporations must provide to shareholders to

describe their operations and financial conditions. The front part of the report often

contains an impressive combination of graphics, photos and an accompanying

narrative, all of which chronicle the company's activities over the past year. The

back part of the report contains detailed financial and operational information.

The following are the main contents of the Annual Report of BHARTI AIRTEL:

1. Message from Chairman and Managing Director

2. Details of Board of Directors and Board Committees

3. Directors Report

4. Auditors Certificate of Corporate Governance

5. Business Overview

6. Management discussion and analysis

7. Key Financial Indicators

8. Financials (Including Auditors Report)

9. Notice of AGM (Including Attendance Slip and Proxy Form)

PERFORMANCE AT A GLANCE

Particulars

Total customer base

Mobile services

Telemedia services

Digital TV services

Based on statement of operations

Revenue

EBITDA

Cash profit from operations

Earnings before taxation

Profit after tax

Based on balance sheet

Stockholders’ equity

Net debt

Capital employed

Key ratios

EBITDA margin

Net profit margin

Return on stockholders’ equity

Return on capital employed

Net debt to EBITDA

Interest coverage ratio

Book value per equity share*

Net debt to stockholders’ equity

Earnings per share (basic)*

Units

000’s

000’s

000’s

000’s

` Mn

` Mn

` Mn

` Mn

` Mn

` Mn

` Mn

` Mn

%

%

%

%

Times

Times

`

Times

`

Financial Year Ended March 31,

2008

39,012

37,141

1,871

-

184,202

74,407

73,037

46,784

40,621

114,884

42,867

157,750

40.39

22.05

43.10

31.57

0.58

26.47

30.30

0.37

10.72

2009

64,268

61,985

2,283

-

270,122

114,018

111,535

73,115

63,954

217,244

40,886

258,130

42.21

23.68

38.51

33.29

0.36

29.51

57.23

0.19

17.12

2010

97,593

94,462

2,726

405

373,521

152,858

135,769

85,910

78,590

291,279

84,022

375,301

40.92

21.04

30.91

30.69

0.55

30.38

76.72

0.29

20.70

2012

137,013

131,349

3,067

2,597

418,472

167,633

167,455

105,091

89,768

421,940

23,920

445,860

40.06

21.45

24.50

24.39

0.14

30.56

111.13

0.06

23.67

2013

220,878

211,919

3,296

5,663

594,672

199,664

177,851

76,782

60,467

487,668

599,512

1,087,180

33.58

10.17

13.30

10.79

3.00

11.14

128.41

1.23

15.93

Key Performance Indicators

1. Voice (wire-line) and Data (DSL) Presence in 87 top cities of India.

2. Target Segment : Retail and Small and Medium Enterprises.

3. Customer base: 3.3 million (end December2012)

4. Broadband (DSL with speeds>256 kbps) penetration at 42.2% of customer base.

5. Average ARPU for Quarter ended Dec’11 $ 17.9 per month.

6. Segment contributing to 7%of overall revenues of the company.

7. EBITDA margin of over 42.2%

Factors affecting the Financial Performance0

1. Diversified telecoms

• Presence in growth markets with good profit potential;

• Revenue diversification across wireline, wireless, and DSL/broadband;

• Ability to invest in geographic coverage and quality of reception;

• Investment in technology, providing bandwidth for high-quality multimedia and

wire and wireless Internet

capabilities;

• Ability to adjust service plan structure and pricing, and bundling where

appropriate, to provide revenue growth

2. Geographic and demographic footprint . In assessing a company's footprint--its

licensed and developed geographic territory--we primarily consider the market type:

international, national, regional, major metropolitan, suburban, or rural. The capital

costs of building and upgrading network infrastructure, the economies of scale that

can be realized in providing service, income levels and spending patterns of the

market, and the degree of competition are key factors in determining a market's

desirability. The value of any given customer or potential customer varies from one

geographic region to the next.

3. Diversification and market share . We analyze diversification by geography and

demographics, product, customer base, and segment. High market shares let companies

spread out costs and enjoy more economies of scale than their competitors. Strong

market positions enable companies to reinvest in fixed assets and develop new services,

to maintain leadership. Size often is closely correlated with, and is an outgrowth of,

diversification:

To reach a large size, companies need multiple products and revenue streams across

broad areas. Small- and medium-size companies usually are precluded from reaching

the highest ratings levels, despite having strong profitability and financials

characteristics, because of a lack of product, market, and geographic diversification.

4. Scope of service offerings/business lines . For wireless, it is important to break revenue

out into its various service components, including monthly fees, postpaid and prepaid

services, roaming, surcharges, and non-voice services. For cable, we analyze basic-TV

service, premium-channel charges, pay-per-view, Internet access, and VoIP revenues to

understand which products are mature rather than high-growth, and, if data are

available, their respective profit contribution. More mature products, while no longer

contributing significantly to top-line growth, may be critical cash cows to fund the

buildout of new networks and services.

5. Market penetration . The measurement of market penetration is particular to specific

industries. The industry that measures wireless penetration as a percentage of POPs,

which is the total population within a licensed wireless area. For cable television, the

industry historically has measured penetration as the number of subscribers as a

percentage of homes passed by cable. But the total amount of services per customer has

also evolved into a key parameter since the introduction of services beyond basic cable

including digital, Internet connectivity, and telephone.

6. Market maturity and growth potential. The level of a market's maturity and growth

potential is closely correlated with the level of economic development and growth

prospects in an economy, as well as the extent of competition and regulation (see

below). In the past few years, for example, wireless operators have adjusted their growth

strategies. As markets mature, rather than seek market penetration at any cost, operators

generally seek growth through higher customer retention and more focus on market

segmentation and increasing ARPU.

7. Technology--opportunity and risk. In order to remain competitive, telecom and cable

companies must continually invest in new features and service capabilities, which

are often based on new technologies that in some instances may not be fully proven.

A company's decisions on the type of technology it employs, and the degree to

which is ultimately creates a competitive advantage or disadvantage, is a key

consideration.

8. Quality of (customer) service. Quality of service is a key ingredient in

telecommunications, cable, and satellite. Because the market has become more

competitive in recent years, customer satisfaction and retention are key to fostering

long-term revenue growth. Minimizing churn is just as important as securing

customers and retaining them. Churn is the percentage of total subscribers that

terminate service with a carrier on a monthly basis, and it is an indicator of customer

satisfaction. Product and service innovation is also crucial to minimizing churn.

Capital expenditures merits close attention in the telecommunications, cable, and

satellite broadcast industries. In deregulated, competitive, and mature market

environments, a company's long-term growth prospects increasingly depend on

ongoing investment in new technologies and network maintenance and upgrades.

9. Management evaluation. We assess management on its ability to run and expand the

business efficiently while mitigating inherent business and financial risks. Our

evaluation also focuses on the credibility of management's strategy and

plans/projections, its operating and financial track records, and its appetite for

assuming business and financial risks. Telecom, cable, and satellite broadcast

companies are highly competitive businesses requiring experienced and successful

management

FINANCIAL RESULTS AND RESULTS OF OPERATIONS Financial Highlights of Consolidated Statement of Operations of the Company as per International Financial Reporting Standards.

In line with the statutory guidelines, the Company has adopted International Financial Reporting Standards (IFRS) for accounts consolidation from FY 2010-11. Consolidated

and standalone financial highlights of the Company’s operations are as follows:

Amount in ` Mn

Financial Highlights of Standalone Statement of Operations of theCompany as per Indian Generally Accepted Accounting Principles.

Amount in ` Mn

PRIMARY ASSETS OF THE COMPANY

A corporation's operating value is made up of its working capital, fixed assets,

identifiable intangible assets and goodwill. In large M&A transactions, the share

represented by intangible assets has gotten progressively larger. This is because, in the

knowledge economy era, intellectual property has become such an important factor

behind companies' competitive strength.

In the case of Airtel too a major chunk of the fixed assets is composed of Intangible

Assets. The intangible assets in case of a telecom company are the most important asset

as it is through these assets that the company performs its day-to-day activities.

The Accounting treatment for these intangibles by Airtel is explained further.

Identifiable intangible assets are recognised when the Company controls the asset, it is

probable that future economic benefits attributed to the asset will flow to the Company

and the cost of the asset can be reliably measured. At initial recognition, the separately

acquired intangible assets are recognised at cost. Following initial recognition, the

intangible assets are carried at cost less any accumulated amortisation and accumulated

impairment losses, if any. Amortisation is recognised in the statement of profit and loss

on a straight-line basis over the estimated useful lives of intangible assets from the date

they are available for use. The amortisation period and the amortisation method for an

intangible asset are reviewed at least at each financial year end. Changes in the expected

useful life or the expected pattern of consumption of future economic benefits embodied

in the asset is accounted for by changing the amortisation period or method, as

appropriate, and are treated as changes in accounting estimates.

The three major intangible assets of Airtel are:

1. Software

2. Licenses

3. Bandwidth

The Intangible Assets include:

1. Software

Software is capitalised at the amounts paid to acquire the respective license for use and

is amortised over the period of license, generally not exceeding three years. Software up

to ` 500 thousand is amortised over a period of one year from the date of place in

service.

Software held for licensing or rental to others should be recognized as an intangible

asset. On the other hand, cost of software purchased by an enterprise for its own use

and which is integral to the hardware (because without that software the equipment

cannot operate), would be treated as part of cost of the hardware and capitalized as

property, plant, or equipment. Thus, the cost of an operating system purchased for an

in-house computer, or cost of software purchased for computer-controlled machine tool,

are treated as part of the related hardware.

Cost of other software programs should be treated as intangible assets (as opposed to

being capitalized along with the related hardware), as they are not an integral part of the

hardware. For example, the cost of payroll or inventory software (purchased) may be

treated as an intangible asset provided it meets the capitalization criteria under IAS 38

2. Licenses

Acquired licenses (including spectrum) are initially recognised at cost. Subsequently,

licenses are measured at cost less accumulated amortisation and accumulated

impairment loss, if any. Amortisation is recognised in the statement of profit and loss on

a straight-line basis over the unexpired period of the license commencing from the date

when the related network is available for intended use in the respective jurisdiction.

Intangible assets under development are valued at cost.

3. Bandwidth

Payment for bandwidth capacitites are classified as pre-payments in service

arrangements or under certain conditions as an acquisition of a right. In the latter case it

is accounted for as intangible assets and the cost is amortised over the period of the

agreements,which may exceed a period of ten years depending on the tenor of the

agreement.

Bandwidth sometimes defines the net bit rate (aka. peak bit rate, information rate, or

physical layer useful bit rate), channel capacity, or the maximum throughput of a logical

or physical communication path in a digital communication system. For

example, bandwidth tests measure the maximum throughput of a computer network.

The reason for this usage is that according to Hartley's law, the maximum data rate of a

physical communication link is proportional to its bandwidth in hertz, which is

sometimes called frequency bandwidth, spectral bandwidth, RFbandwidth, signal

bandwidth or analog bandwidth.

COMPANY’S PERFORMANCE:

The last year has seen a lot of flux for Airtel and the industry. In a difficult environment,

we gained revenue share as well as new customers. Besides our operational successes,

we also ushered in some key initiatives to reinforce our leadership in the marketplace.

Here are some highlights. Over the course of the year, data usage doubled and continues

to grow at this pace. We created a world class Network Experience Centre in order to

deliver a brilliant data experience. We were the first operator to launch 4G in four cities

helping us learn and understand this emerging technology. We launched the Airtel

Money Super Account in partnership with Axis Bank that allows customers to save and

earn interest as well as take cash out as per their needs. Today, our services have the

power to transform lives. Whether it is helping the urban homemaker stay in touch with

her family and friends, the migrant labour enjoy the little dose of entertainment and fun

after a hard day’s work or indeed businesses that can dramatically improve their

productivity, telecom has an increasingly transformative impact. This is made even

more exciting due to rapid changes in customer behaviour. Over the last few months, I

have met several of these customers. Take the case of three 25-year-olds in a village

near Allahabad, who took barely 5 minutes to understand how airtel money works and

signed up. Or, a villager near Hyderabad who did not know English but had taught

himself enough to download over 200 songs onto his phone. These are the customers of

today and tomorrow. The only internet they know is the mobile internet. The only

digital payment they know is through the mobile.

The last financial year saw softening of the mobile market, especially the voice revenues

amid increased competitive intensity in Africa. However, we recorded notable successes

in our operations and continued to successfully launch key initiatives, such as airtel

money, 3G network and the most innovative youthful campaigns across many markets.

This year, the political and regulatory environment was challenging across some of our

markets in Africa. On the political front, we experienced some insecurity and violence

in two of our largest markets of Nigeria and DRC, resulting in the loss of property and

disruption of business operations. On the regulatory front, the regulators are

increasingly becoming stringent on the quality of service in a number of countries. We

also saw increased demands on additional taxes and levies from regulators as the

telecom sector is now increasingly being perceived as the ‘cash cow’ sector in these

economies. We saw an increase in competitive intensity across the markets, for example

in Nigeria; where the market leader dropped tariffs by around 30%. However, despite

these challenges we have still consistently outpaced market growth and steadily grew

our revenue market share every quarter. On network transformation, we continued to

drive the deployment of 3G (now launched in 14 countries) and also focus on 2G

network quality. We are also aggressively driving device penetration, including tablets,

smartphones and dongles to ensure that our customers have access to our 3G data

services. In order to ensure the delivery of high quality devices to our customers, we

also concluded tie-ups with all the major device manufacturers. The unbanked

population of Africa remains high (in most countries over 90%) and we are leveraging

this opportunity through airtel money. This product enables our customers even in the

rural areas to be connected to the financial world. We have now successfully launched

airtel money across 16 markets and our objective is to become Africa’s largest mobile

bank.

NEW PRODUCTS/ INITIATIVES

During the year, the Company launched various new and innovative products and

services, directly and through its subsidiaries, which enabled it to strengthen its

leadership in an intensely competitive market. Some of the key launches of the year

included:

3G Services in 9 of 13 circles with 3G spectrum, empowering all 3G

customers to manage their data usage and avoid ‘bill shock’ with

proactive, personalised and timely data usage alerts coupled with

introduction of easy-to-understand intuitive tariffs with personalised

data usage limits.

airtel money - India’s first mobile wallet service by a telecom operator.

It offers customers an efficient alternative to cash transactions,

providing Airtel customers across the country with a convenient and

secure way of making payments through the ubiquitous mobile platform

anytime, anywhere!

airtel call manager, a service that enables a customer to keep his/her

callers informed (when he is in a meeting or driving and is not able to

take calls) by choosing the meeting or the driving profiles.

airtel voice blog, world’s first voice blogging service, enabling

customers to share recorded voice updates with their followers

– fans, friends or family.

airtel world SIM for international travellers enabling

outbound travellers to retain their local number while roaming

internationally at a fraction of the cost, allowing customers to save

upto 85 percent on international calls.

Live Aarti on mobile, India’s first service on mobile offering daily

live Pujas and Aartis directly from the shrines including Tirupati

Balaji, Siddhivinayak, Shri Sai Baba from Shirdi and Bangla Sahib.

LearnNext an e-Learning website for the Company’s broadband users. It

is a complete computer based interactive CBSE study module, for

students studying in Class VI to X.

IPTV services in Bangalore, the 2nd city after Delhi – NCR to get airtel

IPTV services.

airtel broadband TV, allows the broadband customers to watch live TV

on their computers or laptops without having to buy an extra TV set or

cable connection/set top box or an air antenna by simply subscribing to

airtel broadband TV.

Unified Service Management Centre (uSMC), to enhance the

quality of customer experience and provide best in class services to

the customers.

Global Data Services in Thailand and Malaysia in association with

TRUE International Gateway Co. and Telecom Malaysia respectively

to serve the growing bandwidth demands of customers in the

region.

airtel digital TV recorder, an enhanced Set Top Box (STB) with

capability to record live television, anytime, anywhere using mobile

phone. After pioneering the initiative of recording television

programmes through mobile, the recording facility was extended

through internet for airtel digital TV recorder customers.

MAMO (My Airtel My Offer) is Africa's first marketing tool offering

segmented and personalised offers to both active and inactive

customers. A single number, '141' is being advertised inviting

customers to listen to their customised offers with the option of

fulfillment. The offers range from voice (local and international), SMS,

VAS and data depending on customers' usage and activity

i-Care was deployed across all countries of operation – the

objective of the programmes is to bring about a cultural

transformation across the Company by putting the customer as the

first priority and taking personal ownership to resume customer

issues.

CORPORATE SOCIAL RESPONSIBILITY

Bharti Airtel partners organisations across countries of its operation to foster inclusive

growth. The Company is actively pursuing its socio-economic priorities across multiple

platforms. Its individual business units, spread across different geographies, have

consistently tried to promote social inclusion in an environmentally sustainable manner.

1. Bharti Foundation: Towards delivering quality education

Bharti Foundation was established in 2000 with a vision ‘to help underprivileged

children and young people of the country realise their potential’. Its flagship initiative,

the Satya Bharti School Programme, was launched in 2006.

Flashback 2012-13:

Initiated a new programme to provide bridge courses to ‘out of school children’

to induct them into mainstream government schools (Satya Bharti Learning

Centres)

Launched a holistic pilot programme to improve the quality of education

imparted in government schools (Quality Support Programme)

Objectives of Satya Bharti School Programme

Provide free and quality education to rural, underprivileged children, with

special focus on girls

Help students emerge as educated, confident, responsible and self-reliant

employable citizens, who are deeply committed to society

Encourage active involvement with the community, parents and like-minded

organisations

Make a lasting and sustainable impact on the community, where schools are

present

Find innovative solutions through its primary, elementary and senior secondary

schools to create replicable and scalable components in the programme to

impart quality education

A. Enhancing the Quality of Teachers

Every teacher at the Satya Bharti School gets ample opportunities to learn and grow

through classroom-based trainings, on-the- job coaching, and self-learning

opportunities through teacher resource material and curriculum guides. They also

receive substantial exposure to best practices through peer-learning and group-

discussions.

Refresher trainings were planned last year to teachers

B. Holistic Development of Children

Satya Bharti Schools follow an institutional and holistic child development model. A

detailed framework has been designed to guide teachers in focussing on critical

areas in the personal, cognitive, social, emotional and physical domains of student

development.

C. Community Engagement

Community concerns and needs are integrated into the programme at a very

early stage. The school’s activities and calendar include enough opportunity for

the community to understand the programme and its ramifications and engage

with it. Several contact points are arranged for teachers and field staff to discuss

school activities and students’ performance with the community members.

D. Measurement Tools – School Improvement Programme

The School Improvement Programme was a special initiative launched last year to

address the problem of student transition and high drop-out rates. Over time it evolved

into a larger and more comprehensive initiative of identifying and addressing school-

related issues through detailed ground-level strategy

2. Community Service and Support

Several initiatives in the areas of health, environment and disaster management

support are also adopted by our local offices in India to improve the living standards

of their respective communities.

Last year, Villupuram and Cudaloor districts in the central zone of Tamil Nadu

were badly affected, having received rainfall 70% above the average level. Bharti

Airtel employees together with the support of local village heads collected old and

new blankets, made arrangements for food packets, torches and other basic

essentials and got them distributed to 300 affected families. Helpline centres were

installed with PCOs for connectivity.

Similar to previous years, our circle offices organized child safety awareness

campaigns, traffic awareness campaigns, eye donation and blood donation camps

regularly for the employees and general public.

We harnessed our products and services for various community based activities.

Some of these include a virtual blood bank; blood donation alerts through SMS;

PCOs for the visually impaired and differently-abled; bus route information

availability on mobile phones; the launch of a Cancer Helpline with some

NGOs and the launch of an eye donation helpline in collaboration with the

Ophthalmology Department of a Medical College.

3. Farmers and Fishermen

IFFCO Kisan Sanchar Limited (IKSL), the joint venture with the Indian Farmers

Fertiliser Cooperative Limited (IFFCO), functioned along with Agricultural Technology

Management Agency (ATMA) in different states to provide technical information

related to education, government schemes, health, loans from banks and so on.

In Odisha, IKSL teamed up with The National Federation of Fishermen’s Cooperatives

Ltd. (FISHCOPFED) and the state government to provide customised content to

fishermen. The services included information on Potential Fishing Zone (PFZ), advance

weather forecasting, tidal wavelength, fishing regulatories, basic hygiene on fishing,

health, fishing tips and government schemes.

4. Cyber Security

The Company regularly supports government agencies like CERT.in, IB, NTRO and

NATGRID to provide services, including threat mitigation like botnet threat, stuxnet

propagation and others; proactively mitigate threats to national critical services (attack

simulation exercises). The Company also works closely with DSCI to evolve the privacy

framework.

5. Green Initiatives

Airtel constantly explore ways and means to reduce our carbon footprint. We

have been running power saving programmes in our offices and network

operations for over six years now. These programmes have helped conserve

energy, reduce green house gas emission, and reduce costs.

A. Green Shelter for BTSs

We have pioneered the Green Shelter concept for BTS. This unique shelter comes

with optimal cooling, power and thermal management systems, thereby

minimizing the running of backup systems like diesel generator sets. The

solution reduces the operational cost by as much as 40% as compared to

conventional shelters and avoids contributing to global warming by minimizing

greenhouse gas emissions.

B. Programme GOOD (Get out of Diesel)

To reduce diesel consumption at our sites we pursued programme ‘GOOD’

during the year. Under this programme,

500 sites in Bihar have been taken up for Solar PV technology implementation

despite a Non-Favourable Financial Model. Similarly, other technological

interventions like DG Optimisation, IPMS (Integrated Power Management

Solution), and DCDG were implemented to reduce the diesel footprint at our

network sites. IPMS and variable speed DC Generators (DCDG) has led to an annual

reduction of 1.2 Mn litres in Diesel Consumption across 900 sites.

C. Green Energy

A 100 kwp solar power plant was commissioned at one of the Main Switching Centres

(MSCs) of the Company in India. This is the largest rooftop installation in India’s entire

telecom sector, generating 1.5 Lakh units of green energy annually; moreover, planning

to replicate this in its other MSC locations with 300 kwp solar power plants.

D. Green Networks

Conversion of Indoor Sites into Outdoor Ones This year, Bharti Airtel converted about

1,680 base stations from indoor to outdoor sites, eliminating the use of air conditioner at

these locations. This is over and above its initiative to deploy 81% new sites as outdoors

Network Deployment with Low Power Consuming BTS The Company endeavours to

build the network with power-efficient electronics. The new family of BTS consumes

0.8-1.0 KW power. Its diligent efforts in the last five years helped to reduce power

consumption per BTS by 60%

E. e- Annual Report

Bharti Airtel has started distributing annual reports through email, thus helping reduce

paper consumption. The Company has sent the electronic version of the Annual Report

to more than 2 Lakhs shareholders, saving over 2 Cr. pages.

F. e-Bills

The Company was successful in its endeavour to launch e-bills for its post-paid and

fixed-line customers. Today, over 50 Mn of its customers use e-bills. This go-green

drive enabled the Company to save 21,400 trees annually. Moreover, the process of

address verification of post- paid acquisitions also went digital. eWaivers, introduced

nationally for getting waivers approved, is another key initiative aimed at ushering in

paperless processes

BIBLIOGRAPHY

A) REFRENCE BOOKS/DOCUMENTS

ANNUAL REPORT OF AIRTEL FOR F.Y 2012-13

BOOKS PUBLISHED BY AIRTEL.

MAGZINES BY AIRTEL.

BUSINESS MAGZINES

B) NEWSPAPERS

MINT

ECONOMIC TIMES

FINANCIAL EXPRESS

C) WEB SITES

WWW.GOOGLE.COM

WWW.MONEYCONTROL.COM

WWW.ECONOMICTIMES.COM

WWW.BLOOMBERG.COM