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A Dissertation Report On

A STUDY 0F COMPARTIVE ANALYSIS OF TELECOM SECTOR COMPANIES (BHARTI


AIRTEL ,RELIANCE COMMUNICATION & IDEA CELLULAR) ON THE BASIS OF NETWORH ,EPS,CURRENT RATIO& DEBT EQUITY RATIO FOR LAST FIVE YEARS (200509)

SUBMITTED TO:
KURUKSHETRA UNIVERSITY, KURUKSHETRA

In Partial Fulfilment for the Degree of Masters in Business Administration (Session 2008-2010)

Under Guidance of:


Mrs.Shaili Gupta Faculty, MBA TIMT

Submitted By:Dharamveer S/O Sh. Sunehra Ram Uni. Regn. No. 04-UC-128 Roll No 1106/08 Univ.RollNo.___________

Tilak Raj Chadha Institute of Management & Technology (TIMT)


(Affiliated to Kurukshetra University, Kurukshetra and Approved By AICTE)
MLN College Educational Complex, Yamuna Nagar- 135001 (Haryana) Ph. 01732-220103, 234110. Fax:+91-1732-220103 E-mail: info@timt.ac.in, Web Site: www.timt.ac.in

PREFACE
The conceptual knowledge acquired by management students is best manifested in the projects and training they undergo. As a part of curriculum of MBA, I have got a chance to undergo to make a research report on telecom sector . The present research project give a perfect knowledge to my understanding of the TELECOME SECTOR specially the most modern concept of comparative analysis. Theoretical knowledge without the practical exposure is of little value. Theoretical studies in classroom are not sufficient to understand the functioning and nature of research. Therefore it becomes necessary to undergo any research project work. Practical project supplements the theoretical studies i.e. it covers what is left uncovered in the classroom. It exposes a student to invaluable pleasure of experiences. I choose my dissertation topic. A STUDY 0F COMPARTIVE ANALYSIS OF TELECOM SECTOR COMPANIES (BHARTI AIRTEL ,RELIANCE COMMUNICATION & IDEA CELLULAR) ON THE BASIS OF NETWORH ,EPS,CURRENT RATIO& DEBT EQUITY RATIO FOR LAST FIVE YEARS (2005-09) During the research project I got an opportunity to learn valuable things, which I could have been able to learn from theory classes. In nutshell, whole of my project was invaluable experience in the pursuit of knowledge .In the forthcoming pages attempt has been made to present a comprehensive report concerning different aspects of my research. The overall gain to me will be reflected in the report it self.

Acknowledgement
I take this opportunity to express my profound debts of gratitude and obligation, to my esteemed guide Mrs. Shaili Gupta faculty of Tilak Raj Chadha Institute Of Mgt. & Technology, Yamuna Nagar, for her most valuable help and creative suggestions at all stages of my work. Her learned advice and guidance always kindled inspiration in the face of difficulties encountered in the course of this research work. I am also thankful to my mentor Dr. Vikas Daryal, (Director), Tilak Raj Chadha Institute of Mgt. & Technology, Yamuna Nagar, for allowing me to work on this project work and for his kind help always. I am also thankful to my HOD Mrs.Vandana Madan Tilak Raj Chadha Institute of Mgt. & Technology, Yamuna Nagar, for allowing me to work on this project work and for his kind help always.I am highly grateful to my all lecturers and dedicated staff of Tilak Raj Chadha Institute of Mgt. & Technology, Yamuna Nagar for their kind help from time to time. I am also thankful to the respondents, all my friends and also to various experts for their kind and valuable guidance, whom I consulted for my present work.

(Dharamveer)

Executive summary

Management ideas without any action based on them mean nothing. That is why practical experience is vital for any management studies. Theoretical studies in the class room are not sufficient to understand the functioning climate and the real problems coming in the way of management. So, practical exposures are indispensable to such courses. Thus, practical experience acts as a supplement to the classroom studies. This report deals with A STUDY 0F COMPARTIVE ANALYSIS OF TELECOM SECTOR COMPANIES (BHARTI AIRTEL ,RELIANCE COMMUNICATION & IDEA CELLULAR) ON THE BASIS OF NETWORH ,EPS,CURRENT RATIO& DEBT EQUITY RATIO FOR LAST FIVE YEARS (2005-09)

The number of telephone subscribers in India rose to 509.03 million, according to data compiled by the Telecom Regulatory Authority of India (TRAI). Tariffs had hit all-time lows, with the telecom service providers competing to outbid each other in launching the lowest fare in the country. Low tariffs, even though would bleed the players, was a welcoming initiative to the industry and users. To the industry as it would lead to increasing telecom penetration and to users as telecom services became more affordable. The Telecom Sector at present growing at a very fast speed . There are many players in the telecom industry and they are different kind of schemes every time. At present it is very difficult for a company to survive in the market only the companies survive on the basis of the volume of sales. Bharti Airtel was on the first position on the basis of the sales in the year 2009. Reliance Communication was at the second position on the basis of sales volume & Idea Cellular was on the third position. This was the reason that is why I choose these companies. In my study i will analysis the financial position of these companies during last five years on the basis of networth of shareholders , earning per share ,current ratio & debt equity ratio. These will do with help of balance sheet & profit &loss Account of these companies. This helps the company to manufacture the product like wise for each customers expectations.

CONTENTS

Introduction

Company Profile Topic

Theoretical Frame work


Construct Variables

Literature Review Research Objective Research Methodology


Research design Type of Research Design Study Setting Measurement of Scaling Flow Chart for solution of Statistical Tools

Hypothesis Development of testing Sample and Sample design Data collection Analytical Tools Statistical tools Data Analysis Result and Finding

Policy Implications Recommendations Bibliography Annexure Introduction About Indian Telecom Sector

The Indian telecommunications industry is one of the fastest growing in the world and India is projected to become the second largest telecom market globally. According to the Telecom Regulatory Authority of India (TRAI), the number of telecom subscribers in the country increased to 562.21 million in December 2009, an increase of 3.5 per cent from 543.20 million in November 2009. With this the overall teledensity (telephones per 100 people) has touched 47.89. The telecom industry notched up US$ 8.56 billion in revenues during the quarter ended December 31, 2009 helped by a recovery in earnings from both mobile and landline services. According to Business Monitor International, India is currently adding 8-10 million mobile subscribers every month. It is estimated that by mid 2012, around half the country's population will own a mobile phone. This would translate into 612 million mobile subscribers, accounting for a tele-density of around 51 per cent by 2012. Moreover, according to a study conducted by Nokia, the communications sector is expected to emerge as the single largest component of the country's GDP with 15.4 per cent by 2014. The Indian equipment market was estimated at US$ 24 billion in FY09. Finnish giant Nokia is the market leader, with over US$ 3.4 billion revenues in 2008-09, followed by Ericsson at US$ 2.11 billion. With the availability of the 3G spectrum, about 275 million Indian subscribers will use 3G-

enabled services, and the number of 3G-enabled handsets will reach close to 395 million by 2013-end, estimates the latest report by Evalueserve. According to a Frost & Sullivan industry analyst, by 2012, fixed line revenues are expected to touch US$ 12.2 billion while mobile revenues will reach US$ 39.8 billion in India. Moreover, in an attempt to boost auction of 3G spectrum, the government has allowed prospective bidders to raise short-term funds from domestic market, which could be refinanced through external commercial borrowings (ECBs) within 12 months. The government is expected to mop up US$ 7.53 billion through the auction of 3G spectrum, which is likely to be completed by March 2010. It has fixed the reserve price at US$ 753.74 million. State-run telecom operator BSNL has rolled out 3G services in 318 cities with 856,000 subscribers. BSNL has plans to cross 400 cities by March 31, 2010 and this will be increased to 760 cities by September 2010. And even as debate on 3G continues, TRAI has started consultation on the next level of telecom services. Fourth generation or 4G offers download at faster speeds. Value-Added Services Market Currently, mobile value-added services (MVAS) in India accounts for 10 per cent of the operator's revenue, which is expected to reach 18 per cent by 2010. According to a study by Stanford University and consulting firm BDA, the Indian MVAS is poised to touch US$ 2.74 billion by 2010. In a bid to increase revenue from add-on services, India's top two mobile firms, Bharti Airtel Limited and Reliance Communications both plan to launch online mobile applications stores. Bharti Airtel will provide more than 1,250 applications across 25 categories including games, books and social networking on its applications store. Reliance Communications first version of its applications store would go live for GSM customers by the end of February 2010, and by the end of March 2010 an expanded version

would be available to its code division multiple access (CDMA) customers as well.

Telecom Sector The telecom network in India is the fifth largest network in the world meeting up with global standards. Presently, the Indian telecom industry is currently slated to an estimated contribution of nearly 1% to Indias GDP. The Indian Telecommunications network with 110.01 million connections is the fifth largest in the world and the second largest among the emerging economies of Asia. Today, it is the fastest growing market in the world and represents unique opportunities for U.S. companies in the stagnant global scenario. The total subscriber base, which has grown by 40% in 2005, is expected to reach 250 million in 2007. According to Broadband Policy 2004, Government of India aims at 9 million broadband connections and 18 million internet connections by 2007. The wireless subscriber base has jumped from 33.69 million in 2004 to 62.57 million in FY20042005. In the last 3 years, two out of every three new telephone subscribers were wireless subscribers. Consequently, wireless now accounts for 54.6% of the total telephone subscriber base, as compared to only 40% in 2003. Wireless subscriber growth is expected to bypass 2.5 million new subscribers per month by 2007. The wireless technologies currently in use are Global System for Mobile Communications (GSM) and Code Division Multiple Access (CDMA). There are primarily 9 GSM and 5 CDMA operators providing mobile services in 19 telecom circles and 4 metro cities, covering 2000 towns across the country.

Evolution of the industry-Important Milestones History of Indian Telecommunications Year 1851 First operational land lines were laid by the government near Calcutta (seat of British power) 1881 Telephone service introduced in India 1883 Merger with the postal system 1923 Formation of Indian Radio Telegraph Company (IRT) 1932 Merger of ETC and IRT into the Indian Radio and Cable Communication Company (IRCC)

1947 Nationalization of all foreign telecommunication companies to form the Posts, Telephone and Telegraph (PTT), a monopoly run by the government's Ministry of Communications 1985 Department of Telecommunications (DOT) established, an exclusive provider of domestic and long-distance service that would be its own regulator (separate from the postal system) 1986 Conversion of DOT into two wholly government-owned companies: the Videsh Sanchar Nigam Limited (VSNL) for international telecommunications 3 and Mahanagar Telephone Nigam Limited (MTNL) for service in metropolitan areas. 1997 Telecom Regulatory Authority of India created. 1999 Cellular Services are launched in India. New National Telecom Policy is adopted. 2000 DoT becomes a corporation, BSNL 4 Major Players There are three types of players in telecom services: -State owned companies (BSNL and MTNL) -Private Indian owned companies (Reliance Infocomm, Tata Teleservices,) -Foreign invested companies (Hutchison-Essar, Bharti Tele-Ventures, Escotel, Idea Cellular, BPL Mobile, Spice Communications

The Year of the Telecom Industry: 2009

The year 2009 was not all that bad for the Indian telecom industry, even though the industry had its share of troubles also. What we believe one of the major achievements for the Indian telecom industry was it added 500 million subscribers in September, at least a year in advance. The industry was expecting user numbers to cross 500 million the end of 2010. The number of telephone subscribers in India rose to 509.03 million, according to data compiled by the Telecom Regulatory Authority of India (TRAI). Tariffs had hit all-time lows, with the telecom service providers competing to outbid each other in launching the lowest fare in the country. Low tariffs, even though would bleed the players, was a welcoming initiative to the industry and users. To the industry as it would lead to increasing telecom penetration and to users as telecom services became more affordable.

Bsnl slotted down to 4th place PSU tried to buy some foreign company, later moved on at the end of the year we saw stel- shiva is back in telecom town targeting c circles then Rcom made sms tariff as low as 1p/sms to .20p/sms wondering who will follow Rcoms sms tariff we are waiting operators are you listing ..When we come to wireless internet Rcom, Tata and MTS introduced groundbreaking 3.1 Mbps wireless internet. Then new ISPs lowered down internet tariff, most of them r cable based biting BSNL a lot!! Broadband for BSNL is just one thing for what it is working, landline required for BSNL broadband!! Companies like Aircel, Bharti Airtel, Idea Cellular and Reliance Communications were among others slashed call rates during the year. Many of the companies followed Tata DoCoMo to launch per second billing in across various circles in the country, a move that resulted in further fall of telecom tariffs across the country. Many companies like Bharti Airtel, Reliance Communications, Tata Communications, Pacnet, announced new submarine cable systems. Most of the cable systems were new networks to carry data and telecom tariff to India. The year also witnessed entry of new operators like MTS, Uninor, Aircel (launching services in new circles). Disappointments The much talked about allocation of 3G and BWA spectrum, the mobile number portability were delayed to 2010, while Internet Telephony and MVNO were put off indefinitely. Bharti Airtel lost out the opportunity to acquire South Africas MTN Group, and in turn, become one of the largest mobile service provider in the world. Now, the company is in talks with Warid Telecom to acquire a majority stake in the latters Bangladesh operations. However, 2010 holds much promise and hope for the industry. Post in your comments on your predictions in 2010. Categories: GENERAL

December 2009 Adds 12.51 Million New GSM Subscribers in India India Telecom User Base Rises To 525 Million Dishnet Wireless Most Congested Network,Says Regulator

Introduction about Bharti Airtel

Bharti Airtel Ltd is a provider of telecommunication services with presence in all the 22 licensed jurisdictions in India and in Sri Lanka. The company is the largest GSM mobile service provide in India. The company offers an integrated suite of telecom solutions to enterprise customers, in addition to providing long distance connectivity both nationally and internationally. The company has fourteen subsidiary companies. The company provides all the services under the Airtel brand. The company operates in four strategic business units, namely Mobile, Telemedia, Enterprise and Digital TV. The mobile business offers services in India, Sri Lanka and Bangladesh. The Telemedia business provides broadband, IPTV and telephone services in 95 Indian cities. The Digital TV business provides Direct-to-Home TV services across India. The Enterprise business provides end-to-end telecom solutions to corporate customers and national and international long distance services to telcos. The company also provides Passive Infrastructure Services segment, through Bharti Infratel Ltd, which deploys, owns and manages passive infrastructure in 11 circles of India. The company was ranked among the six best performing technology companies in the world by BusinessWeek. Bharti Airtel Ltd was incorporated in the year 1995 with the name Bharti Tele-Ventures Ltd. The company was promoted by Bharti Telecom Ltd, a company incorporated under the laws of India. The name of the company was changed from Bharti Tele-Ventures to Bharti Airtel Ltd with effect from April 24, 2006 in order to reflect their brand essence, objective and the nature of their business activities. During the year 1995-96, the company launched mobile services under the brand name 'Airtel' for the first time in Delhi and Himachal Pradesh. During the year 1997-98, the company became the first private telecom operator to obtain a license to provide basic telephone services in the state of Madhya Pradesh. They incorporated Bharti BT VSAT Ltd and Bharti BT Internet Ltd

during the year. During the year 1999-2000, the company acquired JT Mobiles for providing cellular services operator in Punjab, Karnataka and Andhra Pradesh. Also, they acquired Skycell, Chennai and thus, they expanded their South Indian footprint. During the year 2001-02, they launched IndiaOne, India's first private sector national and international long distance service. They acquired licenses for eight new circles across India. In July 2001, the company acquired 100% equity interest in Bharti Mobitel Ltd (erstwhile Spice Cell Ltd), which provided mobile services in the Kolkata circle. During the year 2002-03, the company launched cellular mobile services in the circle of Mumbai, Maharashtra, Tamil Nadu, Kerala, Madhya Pradesh, Uttar Pradesh (West), Haryana and Gujarat, fixed line services in the circles of Tamil Nadu and Karnataka and International Long Distance Services. They also commenced commercial operations for their submarine cable landing station. During the year 2003-04, the company obtained the new licenses for providing the Unified Access Services, which include telecom circles of West Bengal (including Andaman & Nicobar and Sikkim), Bihar (including Jharkhand), Orissa, Jammu & Kashmir and UP (East). They also acquired interest in the telecom circles of Rajasthan and North Eastern States, through the acquisition of 67.5% equity stake in Bharti Hexacom Ltd. During the year 2004-05, Bharti Cellular Ltd and Bharti Infotel Ltd, subsidiaries of the company, merged with the company with effect from April 1, 2004. Prior to merger of Bharti Cellular Ltd with the company, Bharti Mobile Ltd operated in circles of Karnataka, Andhra Pradesh and Punjab merged with Bharti Cellular Ltd. The company acquired an additional stake of 1% from Fouad M T Al Ghanim Trading & Cont Co Kuwait one of the shareholder of Bharti Hexacom Ltd. During the year, the company and Videsh Sanchar Nigam Ltd entered into an agreement to share the company's national long distance network for a period of 15 years for a consideration of Rs 5,000 million. They entered into a regional mobile services agreement with six other leading mobile operators, namely Globe Telecom, Philippines; Maxis, Malaysia; Optus, Australia; SingTel, Singapore; Taiwan Cellular Corporations, Taiwan and Talkomsel, Indonesia and formed a regional alliance, namely Bridge Alliance. In April 2005, the company through their erstwhile 100% subsidiary Bharti Infotel Ltd, which was merged with the company acquired 100% equity stake in Bharti Broadband Ltd (formerly known as Comsat Max Ltd) by acquiring their holding company Satcom Broadband Equipment Ltd (formerly known as CMax Infocom Ltd). Also, Satcom Broadband Equipment Ltd and Bharti Broadband Ltd were amalgamated with the company with effect from October 1, 2005. During the year 2005-06, the company signed a managed capacity expansion contract with Ericsson for providing managed services and expands their GSM /GPRS network into rural India in 15 circles. Also, they entered into an agreement with Nokia to expand their managed GSM/ GPRS/ EDGE networks in eight circles. The company and IBM launched Managed Services

under their joint go-to-market program. During the year, Vodafone acquired 10% economic interest in the company by way of subscription of convertible debentures in Bharti Enterprises Ltd. Also, the company entered into strategic partnership outsourcing agreements for their customer care call center operations with four international BPOs - Hinduja TMT (HTMT), IBM Daksh, Mphasis and TeleTech Services. During the year 2006-07, the company incorporated seven wholly owned subsidiaries namely Bharti Airtel (USA) Ltd, Bharti Airtel (UK) Ltd, Bharti Airtel (Hong Kong) Ltd and Bharti Airtel (Canada) Ltd, Bharti Infratel Ltd, Bharti Telemedia Ltd and Bharti Airtel Lanka (Pvt) Ltd. They received letter of offer from Telecommunications Regulatory Commission of Sri Lanka for providing 2G and 3G mobile services in Sri Lanka. During the year, the company entered into agreement with Microsoft to offer software and services for the Small and Medium Business (SMB) market in India and to offer Microsoft's latest Windows Mobile 5.0 technology to its customer. They entered into agreement with Google to offer search services on Airtel Mobile. Also, they entered agreement with Adani Group to connect Mundra Port and Special Economic Zone and with IBM to deliver India's first 'Service Delivery Platform'. In July 2006, the company launched 'Airtel Mega' Fixed Wireless Phone (FWP) services. In September 14, 2006, they acquired 43,750 thousand shares of Bharti Hexacom Ltd for an aggregate consideration of Rs 875,000 thousand thereby increasing their stake from 68.5% to 68.89%. In December 2006 the company announced their foray into USA with the launch of Airtel CallHome service for Non-Resident Indians. In March 2007, they introduced BlackBerry 8800TM business phone. In April 3, 2007, Bharti Airtel (Singapore) Pvt Ltd, Singapore, was incorporated for providing Voice Interconnection, Prepaid International Calling Services, International Private Leased Circuits and VSAT Trading. During the year 2007-08, Bharti Airtel Services Ltd (erstwhile Bharti Comtel Ltd), the wholly owned subsidiary of the company, sold their entire shareholding in Bharti Telemedia Ltd to the company and Bharti Enterprise Ltd in the ratio of 40% and 60%, respectively. The company acquired 2% stake in a subsidiary of IFFCO Ltd called IFFCO Kissan Sanchar Ltd at a consideration of Rs 50,125 thousand. Also, they invested USD 1,200 thousand towards 1,200 thousand shares, of Bridge Mobile Pte Ltd, Singapore (Bridge Mobile). During the year, the company entered into a joint venture agreement with Vodafone Essar Ltd and Idea Cellular Ltd and formed an independent tower company namely, Indus Towers Ltd for providing passive infrastructure services in 16 circles of India. In September 7, 2007, the company acquired 49% of the equity in Bharti Aquanet Ltd, India, at a consideration of Rs 159,549 thousand making Bharti Aquanet Ltd a 100% subsidiary of the company. In September 28, 2007, they acquired 100% of the equity in Network i2i Ltd, Mauritius, at a consideration of USD 133,400 thousand.

In October 1, 2007, the company incorporated a new company namely, Bharti Airtel Holding (Singapore) Pte Ltd in Singapore as an investment holding company of the company. In January 2008, the company transferred the passive telecom infrastructure business of the company to Bharti Infratel Ltd. During the year 2008-09, the company made their foray into media and television by redefining home entertainment with Airtel digital TV. They launched their virtual calling card service 'Airtel CallHome' in UK, Singapore and Canada. The service is targeted at the huge Indian Diaspora, Non-Resident Indians (NRIs) and Indian students in these markets. The company launched their mobile services in Sri Lanka under the Airtel brand. They expanded their footprint by launching their Mobile Services in Lakshadweep. They also launched VeriSign Identity Protection (VIP) Services for their enterprise customers in India in partnership with VeriSign. In February 19, 2009, the company increased their stake in Bharti Hexacom Ltd by 1.11% through acquisition of 2,780,306 equity shares for an aggregate consideration of Rs 166,818 thousand. In March 4, 2009, the company subscribed 1,470,000 equity shares (49% stake) in Bharti Teleports Ltd for an aggregate consideration of Rs. 14,700 thousand. In October 2009, the company launched live mobile comic service on their mobile entertainment portal, Airtel Live. In October 23, 2009, they acquired an additional 55% equity stake in their subsidiary, Bharti Telemedia Ltd for a consideration of Rs 7.38 crore. Consequently, the total equity interest of the company in Bharti TelemediaLtd increased to 95%. In January 12, 2010, the company agreed to acquire 70% stake in Warid Telecom, Bangladesh, a wholly owned subsidiary of the Dhabi Group. Warid Telecom is offering mobile services across all the 64 districts of Bangladesh. As of January 2010, the company had an aggregate of over 131 million customers in South Asia, including 121.7 million mobile customers in India. In March 11, 2010, the company made their debut into Media & Entertainment with the launch of the Airtel Digital Media Business. With this, the company is able to offer Content Delivery Solutions for media and entertainment sector.

Incorporation Year Chairman Managing Director Company Secretary Auditor Registered Office

Bharti Airtel Ltd Industry :Telecommunications - Service Provider 1995 Sunil Bharti Mittal Vijaya Sampath S R Batliboi & Associates Aravali Crescent, 1 Nelson Mandela Road Phase II,

Telephone Fax E-mail Website Face Value (Rs) BSE Code BSE Group NSE Code Bloomberg Reuters ISIN Demat Market Lot Listing Financial Year End Book Closure Month AGM Month Registrar's Name & Address

New Delhi, 110070, New Delhi 91-11-46666100/42666500 91-11-41666137 compliance.officer@bharti.in http://www.airtel.in 5 532454 A BHARTIARTL BHARTI IN BRTI.BO INE397D01024 1 Mumbai,NSE 3 Jul/Aug Aug Karvy Computershare Pvt Ltd, Plot No 17-24, Vittal Rao Nagar, Madhapur, Hyderabad-500081. 91-040-23420815/6/7/ 91-040-23420814

Bharti Airtel Ltd Industry :Telecommunications - Service Provider Designation Name Chairman & Managing Director Sunil Bharti Mittal Non Executive Director Akhil Gupta Director Ajay Lal Director Arun Bharat Ram Director Bashir Abdulla Currimjee Director Chua Sock Koong Director Mauro Sentinelli Director N Kumar Director Pulak Chandan Prasad Director Rajan Bharti Mittal Director Rakesh Bharti Mittal Company Secretary Vijaya Sampath Joint Managing Director & CEO Manoj Kohli Additional Director Nikesh Arora Additional Director Craig Ehrlich Director Lim Chuan Poh Director Tan Yong Choo

Remunerations 228,977,242.00 21,488,690.00 1,602,755.00 1,608,050.00 1,601,850.00 2,592,750.00 2,107,750.00 1,621,850.00 25,958,292.00 656,495.00 -

Introduction About Reliance Communication Limited

Reliance Communication Ltd Industry :Telecommunications - Service Provider Reliance Communications Limited (RCL) is the flagship company of the Anil Dhirubhai Ambani Group (ADAG), is India's largest private sector information and communications company with over 48 million subscribers. It was established in the year 2004 as Reliance Infrastructure Developers Private Limited, Reliance Communications started laying 60,000 route kilometres of a pan-India fibre optic backbone with high capacity, integrated (wireless and wireline), convergent (voice, data and video) digital network and to offer services spanning the entire infocomm value chain. It is capable of delivering a range of services spanning the entire infocomm (information and communication) value chain, including infrastructure and services for enterprises as well as individuals, applications, and consulting. The Company's business encompasses a complete range of telecom services covering mobile and fixed line telephony. It includes broadband, national and international long distance services and data services along with an exhaustive range of value-added services and applications. During the year 2004, International wholesale telecommunications service provider, FLAG Telecom amalgamates with Reliance Gateway, a wholly owned subsidiary of Reliance Infocomm, the company launched RIM Prepaid with attractive offer, Reliance Infocomm introduced World Card - a Prepaid International calling card for affordable and convenient ISD calls from India, the first regional Customer Contact Centre was launched in Chennai. In the same year the company made partnership with MCI to offer India's First MPLS Global VPN Solution. Introduced Railway Ticket booking from R World data applications suite of Reliance India Mobile. In 2005, RCL only the company introduced, first e-recharge facility in CDMA in India, the

company has had joins hands with Air Deccan to offer air ticket booking facility at Reliance WebWorld. Reliance Infocomm rolls out international roaming facility across several countries to become the first Indian CDMA operator to offer its customers such a service. The company tied-up with the Bombay Stock Exchange to make available livestock quotes on its mobile phones during the same year 2005. The status of the company was changed to Public Limited in July 2005. Name of the company was changed from Reliance Infrastructure Developers Private Limited to Reliance Communication Ventures Limited in August 2005. RCL, UK launched Reliance IndiaCall service in England and Wales enabling callers to make high-quality calls to India from any landline or mobile phone at economical rates. Reliance Infocomm and China Telecom signed agreement for telecom services to provide direct telecommunication service, including a global hubbing service, to subscribers in the both two countries. India's first Talking Message Service (TMS) enabling the mobile users to send voice messages to not only other mobiles but also fixed wireless phones (FWP) and landlines in Reliance communications network were launched during the year 2006. In the same year 2006, RCL listed on the Bombay Stock Exchange and National Stock Exchange, the company ties up with Disney to offer on Reliance Mobile World India's first 3D animation on mobile, launched 'Hello Capital Plan' to enable its subscribers in 19 state capitals to call each other at the local call rate of 40 paise per minute, T-Com signs contract with FLAG Telecom for Europe-US bandwidth, Reliance Communications' FALCON Cable System was initiated in the same year. RCL launched Free Group Term Life Cover for its CDMA subscribers. RCL and Nokia have joined hands to market the Nokia 1255 mobile handset in India at a price of Rs 1,999 during the period of 2006. Reliance Infocomm Limited, Ambani Enterprises Private Limited, Reliance Business Management Private Limited, Formax Commercial Private Limited, Reliance Communications Technologies Limited, Reliance Software Solutions Private Limited, Reliance Communications Solutions Private Limited and Panther Consultants Private Limited was amalgamated and the Network division of the Reliance Communications Infrastructure Limited was demerged with the Company during the year 2006. The name of the Company was changed from Reliance Communication Ventures Limited to Reliance Communications Limited with effect from 7th June 2006. The Company joined Lenovo and Intel for 'Internet on the Move' in the year 2007. Also in the same year, RCL ties up with Naukri.com for Search Jobs & Classified Ads from Reliance Mobile World. The demerger of Passive Infrastructure division Reliance Communications & Reliance was approved in March of the year 2007. Sunny Days And Nights For Reliance Mobile Subscribers as Reliance Communications ties up with SUN TV to offer video streaming of all SUN TV programs online 24x7. In May of the year 2007, the company bagged West Bengal E-Governance Project. RCL slashed its call rate to US and Canada. It's now just Rs 1.99 per minute and also launched Lifetime Validity Recharge @ Just Rs.499. The tie up was made with Cisco to launch Business Internet Services for SMEs in Pune in the year. After, in July of the same year 2007, the company and QUALCOMM was made collaboration on CDMA2000 Expansion. The biggest acquisition deal so far, the company bought US data Communication Company Yipes Holdings' in an all-cash deal for 4300 million (Rs 1200 crore) in July 2007. RCL came forwarded to sale of equity stake in its Tower Company-Reliance Telecom Infrastructure Limited in July of the year. For air and hotel

bookings, the company has had joins hands with Yatra.com. The money transfer also available in the RCL, such facility was started in September of the year 2007. The company made strategic partnership with Vanco. As on April 2008, RCL launched Exam Guru, the educational portal, which provides information on exam result, college admissions, exam schedules, admission deadlines, mock tests and also tips for bettering performance. RCL made ties up with International Cricket Council for rankings in the next eight years. During the same month and same year, the company has acquired UK based eWave World, which offers wireless telephony services using WIMAX technology. In May 2008, Reliance Globalcom, a subsidiary of the company, has acquired London based managed network services provider, Vanco Group, for about $77 million (Rs 324 crore).

Reliance Communication Ltd Industry :Telecommunications - Service Provider Incorporation Year Chairman Managing Director Company Secretary Auditor Registered Office Telephone Fax E-mail Website Face Value (Rs) BSE Code BSE Group NSE Code Bloomberg Reuters ISIN Demat Market Lot Listing 2004 Anil D Ambani Hasit Shukla Chaturvedi & Shah / BSR & Co H Block 1st Floor, Dhirubhai Ambani Knowledg City, Navi Mumbai, 400710, Maharashtra 91-022-30386010/6286/30373333 91-022-30376622 RCOM.investors@relianceada.com http://www.rcom.co.in 5 532712 A RCOM RCOM IN RLCM.BO INE330H01018 1 Luxembourg,Mumbai,NSE,Singapore

Financial Year End Book Closure Month AGM Month Registrar's Name & Address

3 Sep Sep Karvy Computershare Pvt Ltd, Plot No 17-24, Vittal Rao Nagar, Madhapur, Hyderabad-500081. 91-040-23420815/6/7/ 91-040-23420814

Reliance Communication Ltd Industry :Telecommunications - Service Provider Designation Name Chairman Anil D Ambani Director J Ramachandran Director S P Talwar Director Deepak Shourie Company Secretary Hasit Shukla Director A K Purwar

Remunerations 300,220,000.00 1,840,000.00 1,860,000.00 1,740,000.00 1,840,000.00

Introduction About Idea Cellular Limited

Idea Cellular Ltd Industry :Telecommunications - Service Provider

IDEA Cellular Limited, a part of the Aditya Birla Group and an India's leading Global System for Mobile communication (GSM) Mobile Services operator was began its journey in the year 1995 as in the name of Birla Communications Limited for providing GSM-based services in the Gujarat and Maharashtra Circles. Later the company has licenses to operate in all 22 Service Areas. Presently, operations exist in 11 Service Areas covering Delhi, Maharashtra, Goa, Gujarat, Andhra Pradesh, Madhya Pradesh, Chattisgarh, Uttaranchal, Haryana, UP-West, Himachal Pradesh, UP-East, Rajasthan and Kerala. With a customer base of over 24 million, IDEA Cellular's footprint currently covers approximately 60% of India's telecom population. The company's operational 11 Service Areas are broken up into Established and New Service Areas. The established service areas are Delhi, Andhra Pradesh, Gujarat and Maharashtra, Haryana, Kerala, Madhya Pradesh and Uttar Pradesh (West) and the New Service Areas are Uttar Pradesh (East), Rajasthan and Himachal Pradesh. Changed its name to Birla AT&T Communications Limited followed by joint venture between Grasim Industries and AT&T Corporation in the year 1996. After a year, in 1997, commenced its operations in the Gujarat and Maharashtra. Migrated to revenues share license fee regime under New Telecommunications Policy ('NTP') Circles in the year 1999. During the year 2000, the company merged with Tata Cellular Limited, thereby acquired original license for the Andhra Pradesh Circle. IDEA acquired RPG Cellular Limited and consequently the license for the Madhya Pradesh (including Chattisgarh) Circle in the year 2001, and in the same year changed its name from Birla AT&T Communications Limited to Birla Tata AT&T Limited. Obtained license for providing GSM-based services in the Delhi Circle. Again in year later, in 2002, the company altered its name to Idea Cellular Limited and launched 'Idea' brand name and commenced its commercial operations in Delhi Circle. During the year, the company reached one million subscriber mark consecutively in the year 2003, reached two million subscriber

mark. During the year 2004, the company acquired Escotel Mobile Communications Limited (subsequently renamed as Idea Mobile Communications Limited), reached the four million subscriber mark and the first operator in India to commercially launched EDGE services 2005. Reached the five million subscriber mark in the year 2005 and IDEA won an Award for the 'Bill Flash' service at GSM Association Awards in Barcelona, Spain. The Company became a part of the Aditya Birla Group in the year 2006, subsequent to the TATA Group transferred its entire shareholding in the Company to the Aditya Birla Group. In the same year 2006, IDEA acquired Escorts Telecommunications Limited (subsequently renamed as Idea Telecommunications Limited). The Company reached the 10 million subscriber mark and also launched New Circles for obtain more and more customers. IDEA has extended its reach to 500 towns in Andhra Pradesh in August of the year 2006. Received Letter of Intent from the DoT for a new UAS License for both Mumbai and Bihar Circles. ABNL, the parent of Aditya Birla Telecom Limited, agreed to transfer its entire shareholding in Aditya Birla Telecom Limited to the Company for the consideration of Rs. 100 million. In 2007, the company won an award for the 'CARE' service in the 'Best Billing or Customer Care Solution' at the GSM Association Awards in Barcelona, Spain. The Initial Public Offering aggregating to Rs. 28,187 million and the company listed in both Bombay Stock Exchange and the National Stock Exchange during the year 2007. IDEA merged seven of its subsidiaries and reached the twenty million subscriber mark in the same year 2007. As on February 2008, IDEA Cellular Ltd tied up with Southern Biotechnologies Ltd to bio-diesel for operating IDEA's gensets at all towers in the Andhra Pradesh region. The Company with Geodesic, an innovator in communication, collaboration and entertainment applications on mobile and Internet platforms jointly announced the launch of 'Idea Radio', a truly differentiated mobile music service for IDEA customers in the same year 2008. Customer Service and Innovation are the drivers of this Cellular Brand. A brand known for their many firsts, IDEA is only the operator to launch General Packet Radio Service (GPRS) and EDGE in the country. IDEA has seen phenomenal growth since its inception, the company's footprint idea is to first achieve critical mass, then drill deep instead of spreading thin, however, does not increasing geographic footprint only, it also drills deep and successfully attempts to provide excellent network coverage in all its circles of operations.

Idea Cellular Ltd Industry :Telecommunications - Service Provider Incorporation Year 1995 Chairman Kumar Mangalam Birla Managing Director Sanjeev Aga Company Secretary Pankaj Kapdeo Auditor Deloitte Haskins and Sells Suman Tower Plot No 18, Registered Office Sector 11, Gandhinagar, 382011, Gujarat Telephone 91-79-66714000 Fax 91-79-23232251 E-mail shs@idea.adityabirla.com Website http://www.ideacellular.com Face Value (Rs) 10 BSE Code 532822 BSE Group A NSE Code IDEA Bloomberg IDEA IN Reuters IDEA.BO ISIN Demat INE669E01016 Market Lot 1 Listing Mumbai,NSE Financial Year End 3 Book Closure Month Dec AGM Month Dec Bigshare Services Pvt Ltd, E-2/3 Ansa Indl Est, Saki Vihar Road, Sakinaka Andheri(E), Mumbai - 400072. Registrar's Name & Address 91-22-28470652/53 91-22-28475207

Designation Chairman Director Managing Director

Idea Cellular Ltd Industry :Telecommunications - Service Provider Name Kumar Mangalam Birla Rajashree Birla Sanjeev Aga

Remunerations 130,000.00 100,000.00 61,860,000.00

Director Director Director Director Director Company Secretary Director Director Director Nominee Alternate Director

Arun Thiagarajan Tarjani Vakil Mohan Gyani Biswajit Anna Subramanian Gian Prakash Gupta Pankaj Kapdeo R C Bhargava P Murari Rakesh Jain Juan Villalonga Navarro Shridhir Sariputta Hansa Wijayasuriya

130,000.00 180,000.00 20,000.00 120,000.00 190,000.00 40,000.00 20,000.00 -

Idea Cellular Ltd Industry :Telecommunications - Service Provider Axis Bank Ltd Deutsche Bank HDFC Bank Ltd IDBI Bank Standard Chartered Bank

Idea Cellular Ltd Industry :Telecommunications - Service Provider

Sr.No Address 1 Suman Tower Plot No 18,Sector 11, Gandhinagar Gujarat, 382011 Tel: 91-79-66714000 Fax: 91-79-23232251

Theoretical Framework

Literature Survey & Review


LITERATURE REVIEW
Literature Review is the way to express background of ideas that come to mind during the research formulation. I asked various employees of the company about the new technological initiative taken by the company. The project being conducted was "Financial Analysis of International Tractors Ltd. Once the problem is formulated, the researcher undertakes an extensive literature review connected with the problem. Conceptual literature:Conceptual literature is that which relates with concepts and theories. Help from different books should be taken for different concepts and theories. Empirical literature:Empirical literature consists of study made by other in the same field. The published data in newspapers books & magazines available for discussion with people of organization.

Books:
1. Lev. Baruch1: In this how analysis of financial statements of organization is done and on the basis of that comment upon the financial position of the organization. 2. Kothari, C.R2: Knowledge about the quantitative techniques of scaling the data & different types of research and different types of research designs. 3. Kothari C.R2 : Knowledge about research process, sample design, research design etc. The information regarding the basics of research and research methodology, what are the different types of research designs, problem statement, sources of data collection and methods of data collection are given in this section.6 4. Kothari C.R.2: I have taken the information about the ANOVA and Principal Component Analysis (PCA), application of these tools and interpretation of these tools.

5. Gupta S.P3: The information regarding the statistical tools and their limitations in different fields the research is given in this section. This section explains, why to use correlation and the situations in which correlation can be used, and meaning of correlation. This section also explains the Trend Analysis Technique.

6. Wilkinson & Bhandarkar4: In this section various parts of research and research methodology is given which tells about the techniques of doing research. 7. Schaums: Statistical Methods5: Sultan Chand Publication The information regarding the statistical tools and their limitations in different fields the research is given in this section. This section explains why to use trend analysis and what are the situations in which correlation can be used, and what does correlation means. 8. Beri G.C.6-. - Marketing Research 3rd edition: This book helped in understanding the different research designs and analytical tools used here. 9. Luck J. David7: from this book I got light on the meaning of the marketing research. 10. Pandey I.M.8: It tells the method of preparing of comparative P/L a/c and how can we evaluate it. 11. Goel D.K9: this text book helps me out to understand the meaning of different ratios and their meaning. 12. A.Bernstein Leobold and J.wild John10: This text book helps me to understand the major concept like debt equity ratio and retained earnings. 13. Hooda R.P.11:- This text book helps me to understand the various methods of Calculation of Trend Analysis and its interpretation. 14. Maheshwari, S.N12:- It explains ratio analysis as a tool to analyze the financial statements of organization. Different ratios depict the position of firm in market. 15. Mittal.R.K13:- The knowledge I have taken is explanation about the preparing of comparative Balance Sheet and way of interpreting it. 16. Ciaran Walsh14:- I have taken the knowledge about the analysis of liquidity of any firm by calculating current & liquid ratio. 17. Gupta S.K. Accounting15:- By studying this text book I come to know about the nature, guidelines, importance and limitation of ratio analysis.

18. Jain T.R, Statistics for MBA16:- By going through this book I got information about how to make Regression Analysis and its application in the business studies. 19. Jain T.R, Statistics for MBA16:- By going through this text book I come to know the Information about how to calculate T Test & Fishers F-Test & how to apply these tests.

20. Khan M.Y, Jain P.K17:- It describes and explains the formulation of various ratios which give knowledge about the financial soundness of the business organization and their interpretation. 21. Gupta C.B.18:- By studying this text book, I come to know about the personnel at various levels in the organization & responsibilities of the key personnel towards these employees and basic knowledge about the various departments of the manufacturing unit. 22. Ashwathapa K.19:- I have taken the basic knowledge about the quality assurance, various types of production systems, process validation, production operations, material handling, rejects handling, various equipments and arrangement of the equipments. JOURNALS and MAGAZINES:1. Advance edge MBA, Oct. 2007.pg no. 51, 56-59.20: from this magazine I read growth and trend of Telecommunication sector.
2. Annual report 2007-08, RBI bulletin, Sep.2007, Page no 71-79.21: these pages give light on the

growth of different sectors in India. 3. The ICFAI Journal of telecommunication trade, Jan-2007, Page No. 24-29, 22 success of telecommunication products in India.
4.Journal of business, (2001), Page no. 13-1423. The basic terminology of telecommunication

trade market

5. ICFAI JOURNAL, page no 37-3924, Indian pharmaceutical sector 2007, and edition November 2007, K S Meshwani: I have taken the information about the overview of the Indian telecommunication sector industry. 6. Financial review, edition January 2008, page no 65-6625, performance of Indian Telecommunication companies. G global market. 7. Chartered Secretary, February 2003, V.S.Datey pp-22-2426 :- Importance of Telecom sector in Indian development: - I have taken the role and importance of the telecom industry in the development of the India. 8. Management Accountant, May 2006 pp- 35927:- I have taken the information about the accounting procedure in contractual job work. 9. Research management Jan 2004 , page 26,4728 I have taken the theory of hypothesis testing and type of data from this journal in my project. Like the theory of null hypothesis or alternative hypothesis. Ganesh: I have gotten the information about the performance of Indian telecommunication industry in the

WEBSITES:1. http://money.rediff.com/money/jsp/co_results_hy.jsp?company Code=152000029 : I got financial statement of idea cellular ltd. I 2. http://money.rediff.com/money/jsp/p_l.jsp?companyCode=1520002230: I got financial statement of Bharti airtel ltd. From this site 3. http://www.telecomtrakindia.com/reports/teleocom_sector.asp31:Introduction about telecommunication history in India 4. 5 6 http://ideacellular.com/IDEA.portal32: Introduction about idea cellular ltd.

www.naukrihub.com/india/telecommunicationl33: Overview of telecom sector www.ucp.com/insidereport/companyknowas.hts34 I have taken knowledge about working of various policies of company.

in Indian economy.

Objective of the Study

Introduction about Topic


MEANING OF FINANCIAL ANALYSIS: Financial analysis refer to such analysis which give financial information about an enterprise. They report the profitability and the financial position of the business at the end of accounting period. The term financial statement includes at least two statements which the accountant prepares at the end of an accounting period. The two statements are:1. The Balance Sheet 2. Profit And Loss Account

They provide some extremely useful information to the extent that balance Sheet mirrors the financial position on a particular date in terms of the structure of assets, liabilities and owners equity, and so on and the Profit And Loss account show s the results of operations during a certain period of time in terms of the revenues obtained and the cost incurred during the year. Thus the financial statement provides a summarized view of financial positions and operation of a firm.

ANALYSIS OF FINANCIAL STATEMENT


Financial statements present a mass of complex data in absolute terms and reveal about the liquidity, solvency and profitability of the business. Actual the figure given in financial statements do not speak anything themselves. The process of giving tongue to these mute heaps of figures is known as financial analysis. The focus of financial analysis is on key figures in the financial statement and the significant relationship that exists between them. The analysis of financial statements is a process of evaluating the relationship between components part of financial statement to obtain a better understanding of firms position and performance. The first task of financial analysis is to select the information relevant to the decision under consideration to the total information contained in the financial statement. The second step is to arrange the information in a way to highlight significant relationship. The final step is interpretation and drawing of interferences and conclusions. Financial statement is the process of selection, relation and evaluation.

PURPOSE OF FINANCIAL ANALYSIS To know the earning capacity or profitability. To know the solvency. To know the financial strengths. To know the capability of payment of interest and dividend. To make comparative study with other firms. To know the trend of business. To know the efficiency of management.

METHODS OF FINANCIAL ANALYSIS1 A numbers of methods can be used for the purpose of analysis of financial statements. These are also termed as tools and techniques of financial analysis. These are:-

1. 2. 3

Comparative financial statements Common-size statements Ratio analysis

RESEARCH METHODOLOGY
Research is a systematic and continues method of defining a problem, collecting the facts and analyzing them, reaching conclusion forming generalizations. Research methodology is a way to systematically solve the problem. It may be understood has a science of studying how research is done scientifically. In it we study the various steps that all generally adopted by a researcher in studying his research problem along with the logic behind them. 3 The scope of research methodology is wider than that of research method. Thus when we talk of research methodology we not only talk of research methods but also consider the logic behind the method we use in the context of our research study and explain why we are using a particular method. 5 So we should consider the following steps in research methodology: Problem statement Research design Sample design Data Collection Statistical tool Limitation of study

PROBLEM STATEMENT
The research problems, in general refers to some difficulty with a researcher experience in the contest of either a particular a theoretical situation and want to obtain a salutation for same, my problem statement are to The present project has been undertaken to do the Financial performance of Bharti Airtel ,Reliance Communication and Idea Cellular Ltd..

RESEARCH DESIGN
A research is the arrangement of the conditions for the collections and analysis of the data in a manner that aims to combine relevance to the research purpose with economy in procedure. In fact, the research is design is the conceptual structure within which research is conducted; it

constitutes the blue print of the collection, measurement and analysis of the data. As search the design includes an outline of what the researcher will do from writing the hypothesis and its operational implication to the final analysis of data. The design is such studies must be rigid and not flexible and most focus attention on the following: 5 o What is the study about? o Why is the study being made? o Where will the study be carried out? o What type of data is required? o Where can be required data be found? o What period of time will the study include? o What will be sample design? o What techniques of data collection will be used? o How will the data be analyzed? o In what style will the report be prepared?

Research design. has three type: Exploratory research Descriptive research Casual research

SAMPLING DESIGN:

A sample design is a definite plan for obtaining a sample from the sampling frame. It refers to the technique or the procedure that is adopted in selecting the sampling units from which inferences about the population is drawn. Sampling design is determined before the collection of the data. Several decisions have to be taken in context to the decision about the appropriate sample selection so that accurate data is obtained and efficient results are draw I chose descriptive research in my research because I use more secondary data. In this I take data from internet, books, and journals primary data is very less so it is the reason to chose the descriptive research

DATA COLLECTION
The task of data collection is begins after a research problem has been defined and research designed/ plan chalked out. Data collection is to gather the data from the population. The data can be collected of two types: Primary data Secondary data

PRIMARY DATA
The Primary data are those, which are collected afresh and for the first time, and thus happened to be original in character. Methods of collection of Primary data are as follows: o Interview o Observation Method SECONDARY DATA The Secondary data are those which have already been collected by some one else and which have already been passed through the statistical tool. Methods of collection of Secondary data are: Journals, Websites balance sheet profit & loss

Analysis and Interpretation of Data

The data collected in the aforesaid manner have been tabulated in condensed from to draw the meaningful results. The different techniques are adopted to analyze the data. All the data and material is arranged through internal resources and the last part of the project consists of the conclusions drawn from the report, a brief summary and recommendation and giving the final touch to the report by stating a conclusion.

MEANING OF RATIO ANALYSIS A Ratio: A ratio is the mathematical relationship between two quantities in the form of a fraction or percentage. Ratio analysis: - Ratio analysis is essentially concerned with the calculation of relationships which after proper identification and interpretation may provide information about the operations and state of affairs of a business enterprise. The analysis is used to provide indicators of past performance in terms of critical success factors of a business. This assistance in decision-making reduces reliance on guesswork and intuition and establishes a basis for sound judgment. Note: A ratio on its own has little or no meaning at all.

.. Steps involved in the Ratio Analysis i) Selection of relevant data from the financial statements depending upon the objective of the analysis. ii) iii) Calculation of appropriate ratios from the above data. Comparison of the calculated ratios with the ratios of the same firm in the past, or the ratios developed from projected financial statements or the ratios of some other firms or the comparison with ratios of the industry to which the firm belongs.

iv)

Interpretation of the ratios.

Significance of Ratio Analysis


i) ii) iii) iv) Helps in decision making Helps in communicating Helps in co-ordination Helps in Control

OBJECTIVE OF USING RATIO ANALYSIS:


Helpful in analyzing financial statement Simplification of accounting data Helpful in comparative study Helpful in locating the weak spots of business To estimate the trend of the business Fixation of ideal standards Effective control

GUIDELINES FOR USE OF RATIOS:


Accuracy of financial statement Purpose of analysis Selection of ratios Use of standards Caliber of Analyst

INTERPRETATION OF RATIO: The importance of Interpretation of ratio lies when they prove as useful true to financial analyst. There are four different ways in which ratios may be interpreted. 1) INDIVIDUAL RATIOS: - The single ratio by itself may have significance of its own. But one cannot draw any meaningful conclusions when a single ratio is considered in isolation. 2) GROUP RATIOS: - Ratios may be interpreted by expanding the analysis & considering a group of several related ratios. In this way the ratio whose significance is not fully understood are made more meaningful by calculating Group Ratios. 3) HISTORICAL RATIOS: - This is the third approach of interpretation of Ratio-Analysis, which involves making comparisons over time. Under this the ratios are studied and compared over a period of years with the results that significant trends indicating raise and falls on stability are indicated. 4) 1NTERFIRM RATIOS: - In this approach the ratios of any given firm may be compared with the ratios of other firms in the same industry, such comparisons are very significant where members of same industry face the similar financial problems.

MEANING OF FINANCIAL STATEMENTS: Financial statements refer to such statements which contains financial information about an enterprise. They report the profitability and the financial position of the business at the end of accounting period. The term financial statement includes at least two statements which the accountant prepares at the end of an accounting period. The two statements are:3. The Balance Sheet 4. Profit And Loss Account

They provide some extremely useful information to the extent that balance Sheet mirrors the financial position on a particular date in terms of the structure of assets, liabilities and owners equity, and so on and the Profit And Loss account show s the results of operations during a certain period of time in terms of the revenues obtained and the cost incurred during the year. Thus the financial statement provides a summarized view of financial positions and operation of a firm.

ANALYSIS OF FINANCIAL STATEMENT


Financial statements present a mass of complex data in absolute terms and reveal about the liquidity, solvency and profitability of the business. Actual the figure given in financial statements do not speak anything themselves. The process of giving tongue to these mute heaps of figures is known as financial analysis. The focus of financial analysis is on key figures in the financial statement and the significant relationship that exists between them. The analysis of financial statements is a process of evaluating the relationship between components part of financial statement to obtain a better understanding of firms position and performance. The first task of financial analysis is to select the information relevant to the decision under consideration to the total information contained in the financial statement. The second step is to arrange the information in a way to highlight significant relationship. The final step is interpretation and drawing of interferences and conclusions. Financial statement is the process of selection, relation and evaluation.

PURPOSE OF FINANCIAL STATEMENT ANALYSIS To know the earning capacity or profitability. To know the solvency. To know the financial strengths. To know the capability of payment of interest and dividend.

To make comparative study with other firms. To know the trend of business. To know the efficiency of management.

METHODS OF FINANCIAL ANALYSIS1 A numbers of methods can be used for the purpose of analysis of financial statements. These are also termed as tools and techniques of financial analysis. These are:-

3. 4. 4

Comparative financial statements Common-size statements Ratio analysis

RESEARCH METHODOLOGY
Research is a systematic and continues method of defining a problem, collecting the facts and analyzing them, reaching conclusion forming generalizations. Research methodology is a way to systematically solve the problem. It may be understood has a science of studying how research is done scientifically. In it we study the various steps that all

generally adopted by a researcher in studying his research problem along with the logic behind them. 3 The scope of research methodology is wider than that of research method. Thus when we talk of research methodology we not only talk of research methods but also consider the logic behind the method we use in the context of our research study and explain why we are using a particular method. 5 So we should consider the following steps in research methodology: Problem statement Research design Sample design Data Collection Statistical tool Limitation of study

PROBLEM STATEMENT
The research problems, in general refers to some difficulty with a researcher experience in the contest of either a particular a theoretical situation and want to obtain a salutation for same, my problem statement are to The present project has been undertaken to do the Financial performance of Bharti Airtel and Idea Cellular Ltd..

RESEARCH DESIGN
A research is the arrangement of the conditions for the collections and analysis of the data in a manner that aims to combine relevance to the research purpose with economy in procedure. In fact, the research is design is the conceptual structure within which research is conducted; it constitutes the blue print of the collection, measurement and analysis of the data. As search the design includes an outline of what the researcher will do from writing the hypothesis and its operational implication to the final analysis of data. The design is such studies must be rigid and not flexible and most focus attention on the following: 5 o What is the study about? o Why is the study being made? o Where will the study be carried out?

o What type of data is required? o Where can be required data be found? o What period of time will the study include? o What will be sample design? o What techniques of data collection will be used? o How will the data be analyzed? o In what style will the report be prepared?

Research design. has three type: Exploratory research Descriptive research Casual research

SAMPLING DESIGN: A sample design is a definite plan for obtaining a sample from the sampling frame. It refers to the technique or the procedure that is adopted in selecting the sampling units from which inferences about the population is drawn. Sampling design is determined before the collection of the data. Several decisions have to be taken in context to the decision about the appropriate sample selection so that accurate data is obtained and efficient results are draw I chose descriptive research in my research because I use more secondary data. In this I take data from internet, books, and journals primary data is very less so it is the reason to chose the descriptive research

DATA COLLECTION
The task of data collection is begins after a research problem has been defined and research designed/ plan chalked out. Data collection is to gather the data from the population. The data can be collected of two types: Primary data Secondary data

PRIMARY DATA
The Primary data are those, which are collected afresh and for the first time, and thus happened to be original in character. Methods of collection of Primary data are as follows: o Interview o Observation Method SECONDARY DATA The Secondary data are those which have already been collected by some one else and which have already been passed through the statistical tool. Methods of collection of Secondary data are: Journals, Websites balance sheet profit & loss

Analysis and Interpretation of Data


The data collected in the aforesaid manner have been tabulated in condensed from to draw the meaningful results. The different techniques are adopted to analyze the data. All the data and material is arranged through internal resources and the last part of the project consists of the conclusions drawn from the report, a brief summary and recommendation and giving the final touch to the report by stating a conclusion.

MEANING OF RATIO ANALYSIS A Ratio: A ratio is the mathematical relationship between two quantities in the form of a fraction or percentage. Ratio analysis: - Ratio analysis is essentially concerned with the calculation of relationships which after proper identification and interpretation may provide information about the operations and state of affairs of a business enterprise. The analysis is used to provide indicators of past performance in terms of critical success factors of a business. This assistance in decision-making reduces reliance on guesswork and intuition and establishes a basis for sound judgment. Note: A ratio on its own has little or no meaning at all.

.. Steps involved in the Ratio Analysis v) Selection of relevant data from the financial statements depending upon the objective of the analysis. vi) vii) Calculation of appropriate ratios from the above data. Comparison of the calculated ratios with the ratios of the same firm in the past, or the ratios developed from projected financial statements or the ratios of some other firms or the comparison with ratios of the industry to which the firm belongs. viii) Interpretation of the ratios.

Significance of Ratio Analysis


v) vi) vii) viii) Helps in decision making Helps in communicating Helps in co-ordination Helps in Control

OBJECTIVE OF USING RATIO ANALYSIS:


Helpful in analyzing financial statement Simplification of accounting data Helpful in comparative study Helpful in locating the weak spots of business To estimate the trend of the business Fixation of ideal standards Effective control

GUIDELINES FOR USE OF RATIOS:


Accuracy of financial statement Purpose of analysis Selection of ratios

Use of standards Caliber of Analyst

INTERPRETATION OF RATIO: The importance of Interpretation of ratio lies when they prove as useful true to financial analyst. There are four different ways in which ratios may be interpreted. 1) INDIVIDUAL RATIOS: - The single ratio by itself may have significance of its own. But one cannot draw any meaningful conclusions when a single ratio is considered in isolation. 2) GROUP RATIOS: - Ratios may be interpreted by expanding the analysis & considering a group of several related ratios. In this way the ratio whose significance is not fully understood are made more meaningful by calculating Group Ratios. 3) HISTORICAL RATIOS: - This is the third approach of interpretation of Ratio-Analysis, which involves making comparisons over time. Under this the ratios are studied and compared over a period of years with the results that significant trends indicating raise and falls on stability are indicated. 4) 1NTERFIRM RATIOS: - In this approach the ratios of any given firm may be compared with the ratios of other firms in the same industry, such comparisons are very significant where members of same industry face the similar financial problems.

Financial performance of Bharti Airtel,Reliance Communication & Idea cellular (2005-09)

Bharti Airtel Networth

2005/ 2006/ 2007/ 2008/ 2009/ 3 3 3 3 3 4533. 7345. 11443 20241 27643 6 56 .27 .49 .97

Bharti Airtel Debt-Equity ratio

2005/ 3 1.1

2006/ 3 0.65

2007/ 3 0.47

2008/ 3 0.33

2009/ 3 0.28

Bharti Airtel EPS

2005/ 2006/ 2007/ 2008/ 2009/ 3 3 3 3 3 6.53 10.62 21.27 32.9 40.79

Bharti Airtel current Ratio

2005/ 2006/ 2007/ 2008/ 2009/ 3 3 3 3 3 0.47 0.44 0.47 0.57 0.69

Reliance communicatio n Networth

2005/ 2006/ 2007/ 2008/ 2009/ 3 3 3 3 3 10285 15395 20525 24840 57690 .01 .05 .54 .03 .32

Reliance communicatio n Current Ratio

2005/ 3

2006/ 2007/ 2008/ 2009/ 3 3 3 3 742.8 6.26 1 1.77 0.95 1.45

Reliance communicatio n

2005/ 3

2006/ 3

2007/ 3

2008/ 3

2009/ 3

EPS

8.25

565.3 9

11.78

12.53

23.27

Reliance communicatio n Debt-Equity Ratio

2005/ 3 0.2

2006/ 3 0.32

2007/ 3 0.71

2008/ 3 0.82

2009/ 3 0.6

Idea Cellular Networth

2005/ 2006/ 2007/ 2008/ 2009/ 3 3 3 3 3 1046. 1168. 2179. 3546. 11294 79 53 15 03 .42

Idea Cellular Current Ratio

2005/ 2006/ 2007/ 2008/ 2009/ 3 3 3 3 3 2.45 0.74 0.87 0.43 0.98

Idea Cellular EPS

2005/ 2006/ 2007/ 2008/ 2009/ 3 3 3 3 3 0.1 0.56 1.94 3.96 3.23

Idea Cellular Debt Equity Ratio

2005/ 3 2.58

2006/ 3 4.96

2007/ 3 1.95

2008/ 3 1.84

2009/ 3 0.67

COMPARATIVE FINANCIAL STATEMENT


When financial statement figures for two or more years are placed side-by-side to facilitate comparison, these are called Comparative Financial Statement. Such statements not only show the absolute figures of various years but also provide for columns to indicate the increase or decrease in these from one year to another. In addition, these statements may also show the change from one year to another in % form. Such statements are of great value in forming the opinion regarding the process of the enterprise.

Importance of Comparative Statements


1. To make the data simpler and more understandable. 2. To indicate the Trend. 3. To indicate the strong points and weak points of the concern. 4. To compare the firms performance with the average performance of the industry. 5. To help in forecasting.

Limitation of Comparative Statements


1. These statements do not show the change in various items in relation to total assets, total liabilities or net sales. 2. These statements are not for useful in comparing the financial statements of two or more business because there is no common base for comparison. Various types of financial statements are prepared in comparative form for the purpose of analysis. Out of these the most important financial statements are:-

COMPARATIVE BALANCE SHEET: The comparative balance sheet as on two or more different dates can be prepared to show the increase or decrease in various assets, liabilities and capital. Such a comparative balance sheet is very useful in studying the trends in a business enterprise.

COMPARATIVE PROFIT & LOSS A/C: Profit & Loss A/C shows the net profit or net loss of a particular year whereas comparative profit and loss account for a number of years provides the following information:1. Rate of increase or decrease in transaction income 2. Rate of increase or decrease in operating profit 3 5 Rate of increase or decrease in gross profit. Rate of increase or decrease in operating profit.

Rate of increase or decrease in net profit

Networth Year Bharti Airtel Reliance Communication Idea Cellular 2005/0 3 4533.6 10285. 01 1046.7 9 2006/0 2007/0 2008/0 2009/0 3 3 3 3 7345.5 11443. 20241. 27643. 6 27 49 97 15395. 20525. 24840. 57690. 05 54 03 32 1168.5 2179.1 3546.0 11294. 3 5 3 42

EPS Year Bharti Airtel Reliance Communication Idea Cellular 2005/0 2006/0 2007/0 2008/0 2009/0 3 3 3 3 3 6.53 10.62 21.27 32.9 40.79 8.25 0.1 565.39 0.56 11.78 1.94 12.53 3.96 23.27 3.23

Current Ratio Year Bharti Airtel Reliance Communication Idea Cellular 2005/0 2006/0 2007/0 2008/0 2009/0 3 3 3 3 3 0.47 0.44 0.47 0.57 0.69 6.26 2.45 742.81 0.74 1.77 0.87 0.95 0.43 1.45 0.98

DebtEquity Ratio

Year Bharti Airtel Reliance Communication Idea Cellular

2005/0 2006/0 2007/0 2008/0 2009/0 3 3 3 3 3 1.1 0.65 0.47 0.33 0.28 0.2 2.58 0.32 4.96 0.71 1.95 0.82 1.84 0.6 0.67

Balance sheet of Bharti Airtel


Bharti Airtel
Balance Sheet Mar '05 12 mths Sources Of Funds Total Share Capital Equity Share Capital Share Application Money Preference Share Capital Reserves Revaluation Reserves Networth Secured Loans Unsecured Loans Total Debt Total Liabilities 1,853.37 1,853.37 2.72 0.00 2,675.38 2.13 4,533.60 3,959.88 1,034.41 4,994.29 9,527.89 Mar '05 12 mths Application Of Funds 1,893.88 1,893.88 12.13 0.00 5,437.42 2.13 7,345.56 2,863.37 1,932.92 4,796.29 12,141.85 Mar '06 12 mths 1,895.93 1,895.93 30.00 0.00 9,515.21 2.13 11,443.27 266.45 5,044.36 5,310.81 16,754.08 Mar '07 12 mths 1,897.91 1,897.91 57.63 0.00 18,283.82 2.13 20,241.49 52.42 6,517.92 6,570.34 26,811.83 Mar '08 12 mths 1,898.24 1,898.24 116.22 0.00 25,627.38 2.13 27,643.97 51.73 7,661.92 7,713.65 35,357.62 Mar '09 12 mths ------------------- in Rs. Cr. ------------------Mar '06 12 mths Mar '07 12 mths Mar '08 12 mths Mar '09 12 mths

Gross Block Less: Accum. Depreciation Net Block Capital Work in Progress Investments Inventories Sundry Debtors Cash and Bank Balance Total Current Assets Loans and Advances Fixed Deposits Total CA, Loans & Advances Deffered Credit Current Liabilities Provisions Total CL & Provisions Net Current Assets Miscellaneous Expenses Total Assets Contingent Liabilities Book Value (Rs)

13,240.63 3,475.64 9,764.99 994.46 931.90 31.58 715.74 174.96 922.28 1,354.85 209.17 2,486.30 0.00 4,458.80 249.32 4,708.12 -2,221.82 58.35 9,527.88 3,017.26 24.44

17,951.74 4,944.86 13,006.88 2,341.25 719.70 17.74 1,076.17 201.81 1,295.72 1,937.54 105.61 3,338.87 0.00 6,735.36 537.44 7,272.80 -3,933.93 7.94 12,141.84 4,740.34 38.71

26,509.93 7,204.30 19,305.63 2,375.82 705.82 47.81 1,418.52 239.11 1,705.44 3,160.02 541.35 5,406.81 0.00 9,809.83 1,232.84 11,042.67 -5,635.86 2.66 16,754.07 7,615.04 60.19

28,115.65 9,085.00 19,030.65 2,751.08 10,952.85 56.86 2,776.46 200.86 3,034.18 5,103.13 302.08 8,439.39 0.00 12,400.38 1,961.95 14,362.33 -5,922.94 0.20 26,811.84 7,140.59 106.34

37,266.70 12,253.34 25,013.36 2,566.67 11,777.76 62.15 2,550.05 153.44 2,765.64 5,602.83 2,098.16 10,466.63 0.00 13,832.49 634.40 14,466.89 -4,000.26 0.09 35,357.62 4,104.25 145.01

Source : Asian CERC

Profit &loss Account


Bharti Airtel Profit & Loss account Mar '05 12 mths Income Sales Turnover Excise Duty Net Sales Other Income Stock Adjustments Total Income Expenditure Raw Materials Power & Fuel Cost Employee Cost Other Manufacturing Expenses Selling and Admin Expenses Miscellaneous Expenses Preoperative Exp Capitalised Total Expenses 83.67 0.00 475.86 2,365.51 1,951.25 280.05 0.00 5,156.34 Mar '05 12 mths Operating Profit PBDIT Interest PBDT Depreciation 2,997.67 1,289.72 317.00 972.72 1,019.36 53.56 0.00 734.20 3,299.73 2,804.85 314.37 0.00 7,206.71 Mar '06 12 mths 4,038.57 4,065.51 236.81 3,828.70 1,432.34 52.16 0.00 1,076.95 5,017.27 4,030.48 444.28 0.00 10,621.14 Mar '07 12 mths 7,260.54 7,366.16 282.07 7,084.09 2,353.30 42.90 0.00 1,297.88 7,339.01 5,892.50 535.46 0.00 15,107.75 Mar '08 12 mths 10,662.41 10,766.45 393.43 10,373.02 3,166.58 17.70 0.00 1,397.54 8,627.13 9,385.68 1,409.89 0.00 20,837.94 Mar '09 12 mths 13,215.67 11,953.92 434.16 11,519.76 3,206.28 8,142.44 0.00 8,142.44 -1,707.95 11.57 6,446.06 11,259.12 0.00 11,259.12 26.94 -13.84 11,272.22 17,851.61 0.00 17,851.61 105.62 30.07 17,987.30 25,761.11 0.00 25,761.11 104.04 9.05 25,874.20 34,048.32 0.00 34,048.32 -1,261.75 5.29 32,791.86
Previous Years

------------------- in Rs. Cr. ------------------Mar '06 12 mths Mar '07 12 mths Mar '08 12 mths Mar '09 12 mths

Other Written Off Profit Before Tax Extra-ordinary items PBT (Post Extra-ord Items) Tax Reported Net Profit Total Value Addition Preference Dividend Equity Dividend Corporate Dividend Tax Per share data (annualised) Shares in issue (lakhs) Earning Per Share (Rs) Equity Dividend (%) Book Value (Rs)

161.34 -207.98 22.23 -185.75 353.60 1,210.67 5,072.66 0.00 0.00 0.00

127.39 2,268.97 17.64 2,286.61 273.68 2,012.08 7,153.15 0.00 0.00 0.00

137.80 4,592.99 9.92 4,602.91 566.79 4,033.23 10,568.98 0.00 0.00 0.00

266.07 6,940.37 -60.67 6,879.70 632.43 6,244.19 15,064.84 0.00 0.00 0.00

178.82 8,134.66 -46.15 8,088.51 321.78 7,743.84 20,820.24 0.00 379.65 64.52

18,533.67 6.53 0.00 24.44

18,938.79 10.62 0.00 38.71

18,959.34 21.27 0.00 60.19

18,979.07 32.90 0.00 106.34

18,982.40 40.79 20.00 145.01

Source : Asian CERC

Balance sheet of Reliance Communication


Reliance Communications Balance Sheet Mar '05 12 mths Sources Of Funds Total Share Capital 0.01 0.05 1,022.31 1,032.01 1,032.01
Previous Years

------------------- in Rs. Cr. ------------------Mar '06 9 mths Mar '07 15 mths Mar '08 12 mths Mar '09 12 mths

Equity Share Capital Share Application Money Preference Share Capital Reserves Revaluation Reserves Networth Secured Loans Unsecured Loans Total Debt Total Liabilities

0.01 0.00 0.00 0.00 0.00 0.01 0.00 0.00 0.00 0.01 Mar '05 12 mths

0.05 611.57 0.00 14,783.43 0.00 15,395.05 0.00 0.00 0.00 15,395.05 Dec '05 9 mths

1,022.31 0.00 0.00 19,503.23 0.00 20,525.54 5,113.57 9,454.27 14,567.84 35,093.38 Mar '07 15 mths

1,032.01 0.00 0.00 23,808.02 0.00 24,840.03 950.00 19,336.43 20,286.43 45,126.46 Mar '08 12 mths

1,032.01 0.00 0.00 50,658.31 0.00 51,690.32 3,000.00 27,903.61 30,903.61 82,593.93 Mar '09 12 mths

Application Of Funds Gross Block Less: Accum. Depreciation Net Block Capital Work in Progress Investments Inventories Sundry Debtors Cash and Bank Balance Total Current Assets Loans and Advances Fixed Deposits Total CA, Loans & Advances Deffered Credit Current Liabilities Provisions Total CL & Provisions Net Current Assets Miscellaneous Expenses Total Assets Contingent Liabilities Book Value (Rs) 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.01 0.00 0.01 0.00 0.00 0.00 0.00 0.01 0.00 0.01 0.00 10.00 198.09 31.85 166.24 0.00 12,074.10 0.00 0.00 0.05 0.05 3,158.91 0.00 3,158.96 0.00 1.68 2.57 4.25 3,154.71 0.00 15,395.05 0.00 1,478,347.67 20,625.82 2,527.37 18,098.45 2,185.60 5,434.43 98.51 802.11 28.08 928.70 19,137.97 40.37 20,107.04 0.00 6,309.33 4,422.81 10,732.14 9,374.90 0.00 35,093.38 3,781.30 100.39 21,576.32 4,688.69 16,887.63 7,117.56 13,844.14 201.22 1,093.21 192.65 1,487.08 17,028.20 0.01 18,515.29 0.00 7,214.31 4,023.85 11,238.16 7,277.13 0.00 45,126.46 4,392.73 120.35 37,941.15 6,533.38 31,407.77 3,643.86 31,364.75 253.14 1,482.22 534.89 2,270.25 23,272.50 0.26 25,543.01 0.00 5,774.74 3,590.72 9,365.46 16,177.55 0.00 82,593.93 6,555.82 250.43

Source : Asian CERC

Profit &Loss Account


Previous Years

Reliance Communications Profit & Loss account Mar '05 12 mths Income Sales Turnover Excise Duty Net Sales Other Income Stock Adjustments Total Income Expenditure Raw Materials Power & Fuel Cost Employee Cost Other Manufacturing Expenses Selling and Admin Expenses Miscellaneous Expenses Preoperative Exp Capitalised Total Expenses 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Mar '05 12 mths 0.00 0.00 1.11 0.00 0.23 0.33 0.00 1.67 Dec '05 9 mths 16.48 266.74 684.40 3,091.60 2,841.53 342.54 0.00 7,243.29 Mar '07 15 mths 15.15 91.76 858.65 4,052.45 2,622.58 978.17 0.00 8,618.76 Mar '08 12 mths 29.95 138.32 758.36 5,837.25 3,673.92 898.81 0.00 11,336.61 Mar '09 12 mths 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 13.26 0.00 13.26 12,756.30 0.00 12,756.30 231.89 0.00 12,988.19 14,792.05 0.00 14,792.05 520.53 0.00 15,312.58 15,086.66 0.00 15,086.66 4,148.13 0.00 19,234.79 ------------------- in Rs. Cr. ------------------Dec '05 9 mths Mar '07 15 mths Mar '08 12 mths Mar '09 12 mths

Operating Profit PBDIT Interest PBDT Depreciation Other Written Off Profit Before Tax Extra-ordinary items PBT (Post Extra-ord Items) Tax Reported Net Profit Total Value Addition Preference Dividend Equity Dividend Corporate Dividend Tax Per share data (annualised) Shares in issue (lakhs) Earning Per Share (Rs) Equity Dividend (%) Book Value (Rs)

0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

-1.67 11.59 0.00 11.59 2.74 0.00 8.85 0.00 8.85 3.20 5.65 1.66 0.00 0.00 0.00

5,513.01 5,744.90 456.55 5,288.35 1,836.12 0.00 3,452.23 0.00 3,452.23 1,043.38 2,408.85 7,226.81 0.00 102.23 17.37

6,173.29 6,693.82 870.05 5,823.77 1,843.66 0.00 3,980.11 0.00 3,980.11 1,393.66 2,586.45 8,603.61 0.00 154.80 26.31

3,750.05 7,898.18 1,153.24 6,744.94 1,933.51 0.00 4,811.43 3.80 4,815.23 12.56 4,802.67 11,306.66 0.00 165.12 28.06

0.10 0.00 0.00 10.00

1.00 565.39 0.00 1,478,347.67

20,446.15 11.78 10.00 100.39

20,640.27 12.53 15.00 120.35

20,640.27 23.27 16.00 250.43

Source : Asian CERC

Balance sheet of Idea Cellular


Idea Cellular Balance Sheet Mar '05 12 mths Sources Of Funds
Previous Years

------------------- in Rs. Cr. ------------------Mar '06 12 mths Mar '07 12 mths Mar '08 12 mths Mar '09 12 mths

Total Share Capital Equity Share Capital Share Application Money Preference Share Capital Reserves Revaluation Reserves Networth Secured Loans Unsecured Loans Total Debt Total Liabilities

2,742.53 2,742.53 0.00 0.00 -1,695.74 0.00 1,046.79 1,692.75 1,005.28 2,698.03 3,744.82 Mar '05 12 mths

2,742.53 2,259.53 0.00 483.00 -1,574.00 0.00 1,168.53 1,470.75 1,444.85 2,915.60 4,084.13 Mar '06 12 mths

2,592.86 2,592.86 0.00 0.00 -413.71 0.00 2,179.15 3,539.77 710.74 4,250.51 6,429.66 Mar '07 12 mths

2,635.36 2,635.36 3.76 0.00 906.91 0.00 3,546.03 5,454.43 1,060.33 6,514.76 10,060.79 Mar '08 12 mths

3,100.10 3,100.10 18.23 0.00 8,176.09 0.00 11,294.42 5,564.93 2,014.43 7,579.36 18,873.78 Mar '09 12 mths

Application Of Funds Gross Block Less: Accum. Depreciation Net Block Capital Work in Progress Investments Inventories Sundry Debtors Cash and Bank Balance Total Current Assets Loans and Advances Fixed Deposits Total CA, Loans & Advances Deffered Credit Current Liabilities Provisions Total CL & Provisions Net Current Assets Miscellaneous Expenses Total Assets Contingent Liabilities Book Value (Rs) 3,577.49 899.99 2,677.50 64.62 307.03 13.47 109.80 151.89 275.16 899.30 0.00 1,174.46 0.00 478.76 0.00 478.76 695.70 0.00 3,744.85 0.00 3.82 3,975.11 1,157.63 2,817.48 95.91 307.03 8.81 90.82 40.12 139.75 1,408.64 88.97 1,637.36 0.00 762.24 11.39 773.63 863.73 0.00 4,084.15 213.92 3.03 8,229.61 2,637.18 5,592.43 506.52 13.83 17.91 152.48 122.76 293.15 560.82 1,696.97 2,550.94 0.00 2,180.21 53.84 2,234.05 316.89 0.00 6,429.67 1,236.57 8.40 12,791.22 3,123.83 9,667.39 941.13 569.93 27.62 198.59 147.67 373.88 950.88 349.38 1,674.14 0.00 2,709.98 81.82 2,791.80 -1,117.66 0.00 10,060.79 2,308.87 13.44 15,562.75 4,739.86 10,822.89 1,721.82 4,928.81 42.73 329.59 140.86 513.18 2,278.21 2,203.57 4,994.96 0.00 3,496.04 98.65 3,594.69 1,400.27 0.00 18,873.79 2,279.41 36.37

Source : Asian CERC

Profit &loss Account


Idea Cellular Profit & Loss account Mar '05 12 mths Income Sales Turnover Excise Duty Net Sales Other Income Stock Adjustments Total Income Expenditure Raw Materials Power & Fuel Cost Employee Cost Other Manufacturing Expenses Selling and Admin Expenses Miscellaneous Expenses Preoperative Exp Capitalised Total Expenses 0.03 0.00 103.36 172.26 0.00 755.44 0.00 1,031.09 Mar '05 12 mths Operating Profit PBDIT Interest PBDT 594.33 604.00 255.04 348.96 0.04 37.86 115.08 626.41 439.02 18.22 -0.04 1,236.59 Mar '06 12 mths 770.47 775.67 308.25 467.42 4.06 109.46 251.43 1,388.33 959.34 38.69 -0.08 2,751.23 Mar '07 12 mths 1,613.97 1,641.61 478.26 1,163.35 0.01 224.40 332.88 2,643.43 974.08 53.87 0.00 4,228.67 Mar '08 12 mths 2,491.32 2,675.49 695.85 1,979.64 18.92 533.54 458.46 4,022.86 1,621.90 82.76 0.00 6,738.44 Mar '09 12 mths 3,118.59 3,520.39 1,206.35 2,314.04 1,625.42 0.00 1,625.42 9.67 0.00 1,635.09 2,007.07 0.00 2,007.07 5.20 -0.01 2,012.26 4,366.40 0.00 4,366.40 27.64 -1.20 4,392.84 6,719.99 0.00 6,719.99 184.17 0.00 6,904.16 9,857.08 0.00 9,857.08 401.80 -0.05 10,258.83
Previous Years

------------------- in Rs. Cr. ------------------Mar '06 12 mths Mar '07 12 mths Mar '08 12 mths Mar '09 12 mths

Depreciation Other Written Off Profit Before Tax Extra-ordinary items PBT (Post Extra-ord Items) Tax Reported Net Profit Total Value Addition Preference Dividend Equity Dividend Corporate Dividend Tax Per share data (annualised) Shares in issue (lakhs) Earning Per Share (Rs) Equity Dividend (%) Book Value (Rs)

237.78 84.49 26.69 -2.53 24.16 0.00 26.69 1,031.06 0.00 0.00 0.00

262.88 84.66 119.88 8.61 128.49 2.90 125.60 1,236.54 0.00 0.00 0.00

563.67 108.14 491.54 5.23 496.77 6.99 502.06 2,747.16 0.00 0.00 0.00

756.85 119.91 1,102.88 13.97 1,116.85 72.50 1,044.36 4,228.66 0.00 0.00 0.00

1,096.72 146.13 1,071.19 15.68 1,086.87 85.65 1,001.21 6,719.52 0.00 0.00 0.00

27,425.27 0.10 0.00 3.82

22,595.27 0.56 0.00 3.03

25,928.61 1.94 0.00 8.40

26,353.61 3.96 0.00 13.44

31,000.95 3.23 0.00 36.37

Source : Asian CERC

STATISTICAL TOOLS

STATISTICAL TOOLS

Introduction:An educated citizen needs an understanding of basic statistical tool to function in a world that is becoming increasingly dependant on quantitative information. Statistics means numerical description to most people. In fact the term statistics is generally used to mean numerical facts and figures such as agriculture production during a year, rate of inflation and so on. However as a subject of study, statistics refers to the body of principles and procedures developed for the collection, classification, summarization and interpretation of numerical data and for the use of such data. 4

MEANING3:Broadly speaking, the term statistics has been generally used in two senses: Plural Sense Singular Sense Plural sense refers to the numerical data. Singular Sense refers to a Science in which we deals with the techniques of collecting, classifying, presenting, analyzing and interpreting the data, the concept in its singular sense, refers to Statistical Method.

PURPOSE:Without the assistance of Statistical Method, an organization would find it impossible to make sense of the huge data. The purpose of statistics is to: Analyze Summarize Investigate Record

STATISTICAL TOOLS:Statistical tools are the basic measures, which helps in defining the relation between different items, present, past and future trend of the future trend of the particular business etc.

A wide variety of statistical tools are available and any of them can be used by any businessman depending upon the nature of his trade. Various statistical tools are:1. Correlation 2. Time Series 3. Index Numbers 4. Probability Distribution 5. Principal Component Analysis(PCA) 6. Regression 7. Analysis of Variance(ANOVA) 8. Hypothesis Testing Chi Square Test T-Test Fishers F-Test

CORRELATION
Some important definitions of correlation are given below:
Correlation analysis deals with the association between two or ore variablesSimpson and Kafka.

If two or ore quantities vary in sympathy, so that movement in one tend to be accompanied by corresponding movements in the other, then they are said to be correlated-Conner. Correlation analysis attempts to determine the degree of relationship between variables. TYPES OF CORRELATION: Correlation is classified in several different ways. Three of the most important ways are:-

Positive and Negative Correlation: When two variable X and Y move in same direction is Positive Correlation and when both variables move in opposite direction that is Negative Correlation. Simple, Partial and Multiple Correlations: When we study the relationship between two variables only that is Simple Correlation. When three or more variables are taken but relationship between any two of the variable is studied, assuming other variables as constant that is Partial Correlation and when we study the relationship among three or more variables that is Multiple Correlation. Linear and Curvi-Linear Correlation: when the ratio of change of two variables X and Y remains constant throughout, then they are said to be Linear Correlated and when the ratio of change between the two variables is not constant but changing, then correlation is said to be Curvi-Linear.

DEGREE OF CORRELATION:Sr. No. 1 2 3 4 5 Degree of correlation Perfect correlation High Degree of correlation Moderate Degree of Correlation Low Degree of Correlation Absence of Correlation Positive +1 Between +.75 to+1 Negative -1 Between -.75 to-1

Between +.25 Between -.25 to-.75 to+.75 Between 0 to+.25 Between 0 to-.25 0 0

WHY TO USE CORRELATION?


Different type of statistical tool are available but for using specifically correlation is of having a major reason i.e. Only this and this statically tool was giving the satisfactory result. I have to show the relationship between SALES and PROFITS which can be purely defined with the help of this statistical tool only. Further more with the help of Time Series Analysis we can define the future trend of the business by using Trend Analysis but my main motive is to find out the relationship between PROFIT and SALES of the company thats why I used this tool only.