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BHARTI AIRTEL Introduction Bharti Airtel is India’s leading provider of telecommunications services. The company has 27 million customers across India. It is a part of Bharti Enterprises, which manufactures and exports telecom equipment, provides telecom services in Seychelles, delivers products and services to telecom carriers, offers a range of Customer Management Services (CMS) and exports fresh agricultural products exclusively to markets in Europe and the USA. Business The business has been structured into three individual strategic business units (SBUs) ??? mobile services, broadband and telephone services (B) and enterprise services.
The last group has two sub-units ??? carriers (long distance services) and services to corporates. Brands All the services of the company are bundled under the Airtel brand. Location The company is headquartered in New Delhi. The mobile services group provides GSM mobile services across India in 23 telecom circles, while the B business group provides broadband & telephone services in 90 cities P/L account of Bharti Airtel YearMar 07(12) Mar 06(12) Mar 05(12) Mar 04(12) Mar 03(12) budgeted/mar08 INCOME : Sales Turnover + 17,851. 6011,231. 477,903. 030039,808. 33 Excise Duty000000 Net Sales17,851. 011,231. 477,903. 030039,808. 33 Other Income + 148. 4994. 3122. 0263. 1572. 9628. 11 Stock Adjustments + 30. 07-13. 8411. 570092. 31 Total Income18,030. 1611,311. 938,036. 6263. 1572. 940,528. 75 EXPENDITURE : Raw Materials + 53. 9554. 4283. 70086. 85 Power & Fuel Cost+ 39. 7226. 9816. 690. 380. 171. 89 Employee Cost + 1,102. 03754. 99488. 1316. 8418. 943460. 03 Other Manufacturing Expenses + 6,709. 584,404. 783,139. 481. 292. 418990. 83 Selling and Administration Expenses + 1,973. 641,330. 07869. 691510. 56927. 22 Miscellaneous Expenses + 801. 13671. 92538. 324. 165. 853036. 28
Less: Pre-operative Expenses Capitalised+ 1. 80. 850. 03005. 22 Total Expenditure10,678. 257,242. 315,135. 9837. 6737. 822578. 32 Operating Profit7,351. 914,069. 622,900. 6425. 4835. 117950. 18 Interest + 282. 07236. 8131721. 3631. 231052. 12 Gross Profit7,069. 843,832. 812,583. 644. 123. 8719002. 3 Depreciation+ 2,468. 471,547. 021,019. 363. 873. 67602. 88 Profit Before Tax4,601. 372,285. 791,564. 280. 250. 2726605. 18 Tax+ 520. 53185. 578. 61-0. 120. 05967. 18 Deferred Tax+ 47. 6188. 1434500151. 61 Reported Net Profit4,033. 232,012. 081,210. 670. 370. 2227723. 97 Extraordinary Items + 31. 1612. 728. 2213. 2923. 1393. 5 Adjusted Net Profit4,002. 071,999. 511,182. 45-12. 92-22. 9127817. 47 Preference Dividend000000 Equity Dividend %000000 In this project we have analyzed the change in telecom industry and did the changes for preparing the budget for Bharti Airtel for year ending 2007-08 Balance sheet of Bhartiairtel YearMar 07 Mar 06 Mar 05 Mar 04 Mar 03 budgeted/mar08 SOURCES OF FUNDS : Share Capital + 1,895. 931,893. 881,856. 091,853. 371,853. 3710,010. 51 Reserves Total + 9,517. 335,439. 552,677. 512,971. 492,971. 1222,651. 24 Total Shareholders Funds11,413. 267,333. 434,533. 604,824. 64,824. 4932,661. 75 Secured Loans + 266. 452,863. 373,959. 881. 361. 18852. 64 Unsecured Loans + 5,044. 361,932. 921,034. 41625010,290. 50 Total Debt5,310. 814,796. 294,994. 29626. 361. 1811143. 14 Total Liabilities16,724. 0712,129. 729,527. 895,451. 224,825. 6743,804. 90 APPLICATION OF FUNDS : Gross Block + 26,509. 9317,951. 7413,240. 6331. 8430. 6287,217. 70 Less : Accumulated Depreciation + 7,204. 304,944. 863,475. 6417. 2813. 7939,767. 70 Net Block + 19,305. 6313,006. 889,764. 9914. 5616. 8347,450. 00 Lease Adjustment 000000. 00 Capital Work in Progress+ 2,375. 822,341. 25994. 460. 104,490. 0 Investments + 705. 82719. 7931. 91,762. 671,467. 791,009. 32 Current Assets, Loans & Advances Inventories + 51. 5518. 5931. 5800432. 50 Sundry Debtors + 1,418. 521,076. 17715. 74003,915. 20 Cash and Bank+ 780. 46307. 43384. 140. 130. 349,654. 30 Loans and Advances + 3,042. 031,857. 821,204. 943,693. 013,347. 434,410. 94 Total Current Assets5,292. 563,260. 012,336. 403,693. 143,347. 7718,412. 94 Less : Current Liabilities and Provisions Current Liabilities + 9,459. 436,477. 714,207. 9913. 563. 4217,689. 13 Provisions + 1,262. 33539. 3249. 316. 998. 043,345. 17 Total Current Liabilities10,721. 67,017. 014,457. 3020. 5511. 4621034. 30 Net Current Assets-5,429. 20-3,757. 00-2,120. 903,672. 593,336. 31-2,621. 36 Miscellaneous Expenses not written off + 2. 667. 9458. 341. 34. 7427. 61 Deferred Tax Assets143. 7580. 73168. 23001,016. 80 Deferred Tax Liability380. 41269. 78269. 1300295. 57 Net Deferred Tax-236. 66-189. 05-100. 900-584. 50 Total Assets16,724. 0712,129. 729,527. 895,451. 224,825. 6743,804. 90 Contingent Liabilities+ 1,615. 171,501. 511,594. 474,874. 994,085. 381708. 5 Industry ;; Finance ;; Aggregate Profit & Loss Industry – Telecommunications – Service Provider [Rs. n Crs. ] YearLatest 2007 2006 2005 2004 2003 No. of Companies63921303549 INCOME : Sales Turnover 94,043. 0542,089. 3365,809. 1858,487. 3751,623. 8945,006. 75 Excise Duty0. 000. 000. 000. 000. 000. 00 Net Sales94,043. 0542,089. 3365,809. 1858,487. 3751,623. 8945,006. 75 Other Income 6,543. 221,544. 995,604. 035,902. 436,216. 114,591. 97 Stock Adjustments 80. 7026. 5646. 7162. 0135. 14-448. 57 Total Income100,666. 9743,660. 8871,459. 9264,451. 8157,875. 1449,150. 15 EXPENDITURE : Raw Materials 1,104. 08685. 91619. 48735. 41628. 28391. 44 Power & Fuel Cost705. 60388. 79420. 03393. 61,503. 151,372. 17 Employee Cost 12,470. 573,966. 7210,939. 6511,499. 909,511. 989,752. 41 Other Manufacturing Expenses 20,578. 5215,259. 9210,886. 769,833. 1613,381. 1312,606. 18 Selling and Administration Expenses 22,006. 846,265. 9917,048. 0114,500. 984,835. 024,170. 34 Miscellaneous Expenses 6,527. 511,720. 714,920. 642,857. 734,446. 323,963. 12 Less: Pre-operative Expenses Capitalised5. 221. 8065. 2396. 82520. 011,207. 73 Total Expenditure63,387. 9028,286. 2444,769. 3439,724. 2233,785. 8731,047. 93 Operating Profit37,279. 0715,374. 6426,690. 5824,727. 5924,089. 2718,102. 2 Interest 3,743. 251,001. 842,332. 291,461. 451,519. 741,968. 02 Gross Profit33,535. 8214,372. 8024,358. 2923,266. 1422,569. 5316,134. 20 Depreciation18,336. 185,943. 9714,269. 8813,448. 2712,509. 0912,651. 01 Profit Before Tax15,199. 648,428. 8310,088. 419,817. 8710,060. 443,483. 19 Tax2,034. 041,092. 931,382. 72-10. 352,598. 61956. 76 Deferred Tax-1,376. 7365. 52-1,227. 07-1,311. 63957. 271,133. 12 Reported Net Profit14,542. 337,270. 389,932. 7611,139. 856,504. 561,393. 31 Extraordinary Items 486. 9116. 55427. 991,906. 141,468. 191,288. 72 Adjusted Net Profit14,055. 427,253. 39,504. 779,233. 715,036. 37104. 59 BALANCE SHEET Industry – Telecommunications – Service Provider [Rs. in Crs. ] YearLatest 2007 2006 2005 2004 2003 No. of Companies63921303549 SOURCES OF FUNDS : Share Capital 33,658. 886,367. 6928,097. 6626,714. 7126,295. 4325,923. 09 Reserves Total 103,514. 1243,463. 4083,609. 6685,904. 7961,518. 5553,293. 75 Total Shareholders Funds137,173. 0049,831. 09111,707. 32112,619. 5087,813. 9879,216. 84 Secured Loans 25,146. 377,844. 2813,935. 3614,922. 1812,379. 3611,265. 01 Unsecured Loans 30,874. 5615,105. 1212,342. 5013,050. 4415,581. 3315,819. 57
Total Debt56,020. 9322,949. 4026,277. 8627,972. 6227,960. 6927,084. 58 Total Liabilities193,193. 9372,780. 49137,985. 18140,592. 12115,774. 67106,301. 42 APPLICATION OF FUNDS : Gross Block 209,676. 2463,592. 68172,144. 56157,531. 46136,473. 23123,164. 20 Less : Accumulated Depreciation 74,629. 2913,502. 4273,215. 5961,075. 2746,765. 1134,858. 73 Net Block 135,046. 9550,090. 2698,928. 9796,456. 1989,708. 1288,305. 47 Lease Adjustment -0. 200. 00-0. 20-2. 36-2. 17-6. 26 Capital Work in Progress11,445. 316,033. 148,119. 128,301. 948,397. 6011,194. 42 Investments 13,354. 169,336. 745,424. 515,893. 776,462. 955,364. 31 Current Assets, Loans & Advances Inventories 3,349. 25398. 813,062. 982,614. 022,718. 503,384. 91 Sundry Debtors 12,845. 064,645. 3110,795. 2510,819. 007,741. 386,310. 60 Cash and Bank36,591. 032,956. 2835,627. 0127,396. 3016,443. 758,607. 89 Loans and Advances 50,364. 2534,652. 8426,162. 2826,246. 8027,260. 6224,100. 10 Total Current Assets103,149. 5942,653. 2475,647. 5267,076. 1254,164. 2542,403. 50 Less : Current Liabilities and Provisions Current Liabilities 53,545. 2528,489. 7433,680. 0930,665. 5226,701. 6829,156. 20 Provisions 16,282. 866,138. 0415,187. 213,963. 9411,707. 999,164. 11 Total Current Liabilities69,828. 1134,627. 7848,867. 8144,629. 4638,409. 6738,320. 31 Net Current Assets33,321. 488,025. 4626,779. 7122,446. 6615,754. 584,083. 19 Miscellaneous Expenses not written off 2,330. 06224. 381,320. 361,284. 32619. 471,865. 57 Deferred Tax Assets7,053. 46274. 587,192. 866,909. 896,203. 652,542. 44 Deferred Tax Liability9,357. 291,204. 079,780. 2910,698. 2911,369. 537,047. 72 Net Deferred Tax-2,303. 83-929. 49-2,587. 43-3,788. 40-5,165. 88-4,505. 28 Total Assets193,193. 9372,780. 49137,985. 18140,592. 12115,774. 67106,301. 42