CONTENTS

CONTENTS.................................................................................................................. 1 LIST OF TABLES .......................................................................................................... 3 LIST OF FIGURES......................................................................................................... 4 CHAPTER 1.................................................................................................................. 6 INTRODUCTION........................................................................................................ 6 BACKGROUND OF THE STUDY..................................................................................7 1.2 NEED FOR STUDY..................................................................................................8 1.3 DEFINATION OF THE PROBLEM..............................................................................8 1.4 SCOPE OF STUDY.................................................................................................. 8 1.5 PROJECT OBJECTIVES ...........................................................................................9 1.6 KEY DELIVERABLES.............................................................................................. 9 CHAPTER 2................................................................................................................ 10 ORGANIZATION INFORMATION..................................................................................10 2.3BHARTI AIRTEL LIMITED ...................................................................................16 2.3.4BUSINESS DIVISIONS:-.......................................................................................19 2.3.5 THE BRAND......................................................................................................21 2.4 ACHIEVEMENTS................................................................................................32 LITERATURE REVIEW/ CONCEPTUAL SUPPORT.......................................................35 3.1 CASH COLLECTION:- ..........................................................................................35 FORCASTED ACTUAL DEVIATION ..............................................36

3.1.2 FROM PAYMENT POINT OF VIEW:-.....................................................................37 FORCASTED ACTUAL DEVIATION .................................................38

3.2 BANKS HAVING COLLEBOTATION WITH AIRTEL ARE:-...........................................38 1).CITI BANK:- ...........................................................................................................38 2).SCB:- .................................................................................................................... 38

3).ICICI BANK :-

..................................................................................................... 39

4) DEUTSCHE BANK:-.................................................................................................39 5).HDFC BANK:-.........................................................................................................39 3.3DIFFERENT MODES OF PAYMENT..........................................................................40 CHAPTER -4............................................................................................................... 46 RESEARCH METHODOLOGY......................................................................................46 4.3)PROJECT METHODOLOGY.................................................................................48 4.4)LOCALE OF THE PROJECT.................................................................................49 CHAPTER-6................................................................................................................64 CONCLUSION............................................................................................................. 64 CHAPTER-7................................................................................................................68 RECOMMENDATIONS :-..............................................................................................68 CHAPTER-8................................................................................................................70 REFERENCES............................................................................................................. 70 CHAPTER-9................................................................................................................72 APPENDICES..............................................................................................................72 ABBREVIATIONS........................................................................................................ 76

LIST OF TABLES
5.A.1) INTEREST LOSS BEARED BY AIRTEL ON S.C BANK COLLECTION.48 5.A.2)INTEREST LOSS BEARED BY AIRTEL ON CITY BANK COLLECTION .50 5.A.3) INTEREST LOSS BEARED BY AIRTEL ON DEUTSCHE BANK COLLECTION..52 5.A.4)INTEREST LOSS BEARED BY AIRTEL ON HDFC BANK COLLECTION...54 5.A.5)INTEREST LOSS BEARED BY AIRTEL ON ICICI BANK COLLECTION56

LIST OF FIGURES

5.A.1.1) S.C. BANK DEVIATION (ACTUALVs FORECAST)49 5.A.1.2) S.C. BANK INTEREST LOSS.51 5.A.2.1) CITI BANK DEVIATION (ACTUALVs FORECAST)53 5.A.2.2) CITI BANK INTEREST LOSS................55 5.A.3.1) DEUTSCHE BANK DEVIATION (ACTUALVs FORECAST)...................57 5.A.3.2) DEUTSCHE BANK INTEREST LOSS59 5.A.4.1) HDFC BANK DEVIATION (ACTUALVs FORECAST)....61 5.A.4.2) HDFC BANK DEVIATION INTEREST LOSS.......63 5.A.5.1) ICICI BANK DEVIATION (ACTUALVs FORECAST).................65 5.A.5.2) ICICI BANK INTEREST LOSS66

CHAPTER 1 INTRODUCTION

In the Introduction part, there will be coverage of the project description, figuring out the relevance of the project assigned, formulating its objectives and finally deciding the key deliverables from the project.

BACKGROUND OF THE STUDY The current economic crisis is calling into question business model fundamentals and putting all companies under stress. The cash is obviously the most important current asset. Insufficiency of cash at any stage may prevent a firm from discharging its liabilities or force it to sell its other assets immediately. On the other hand, extreme liquidity may take the firm to make uneconomic investments. The mobility division does not require for the working capital as it earns the cash in the advance from the distributers for Pre-Paid. and receive the payment from post-paid on the daily basis. financial manager is required to identify the sources from where cash may be procured on a short term basis or the outlets where excess cash may be invested for a short term . For this purpose I decided to choose the most successful company in the mobility sector i.e. BHARTI AIRTEL LTD. Hence I decided to study that How Airtel manage the cash on daily basis. From the study I found that there is a big Interest loss (opportunity cost) beard by the Airtel. Hence I decided to work on a project on what I can apply my knowledge and skills to minimize this interest loss for the contributions towards Airtel.

1.2 NEED FOR STUDY

No one can be a competent person in the absence of practical exposure, irrespective of how many books, theories he has gone through. In order to become a perfect manager in near future I was also required to apply all of my learning in actual practice. The most important of all activities is managing the cash and keeping an eye on that and reducing them wherever possible. Therefore I chose to learn how a company manages its cash on daily basis. The need for this study arises because each company want to maximize its revenue . The firms efficiency depends on the strategy followed by a company

1.3 DEFINATION OF THE PROBLEM Bharti Airtel Limited a major player in the telecom sector has reached a substantial mark of 100 million subscribers on 15th May 2009. To increase its market share continuously Airtel invest its daily earning for short term. who target to collect the cash from Pre-paid, Post paid and roaming .On the basis of this cash collection Airtel President Office (APO), invest the Daily cash collection for short term, this is done by the Banks for Airtel. I observed that there is a big difference in between forecast Vs Actual cash collection. In this recession Period every enterprise is focusing to maximize the profit . Hence there should be minimum Deviation between the Forecast and Actual cash collection. . The project will focus on finding the various reasons and there solutions for this Deviation.

1.4 SCOPE OF STUDY The successful completion of the project will help the company in maximizing the profit by indepth study of the various reasons for this deviation. This in-depth study will be financial decision. The Study has been done for the Delhi circle, this can be replicated to all other circles as well. relevant for

1.5 PROJECT OBJECTIVES The study focuses on the cash inflow forecasting process of various modes and effect associated with them.
To examine the parameters or the way followed by Airtel to forecast the cash inflow. To study interest loss incurred by Airtel

To minimize the cash collection deviation which will help company to minimize the Interest loss. Hence the focus area is to minimize the cash collection deviation.

1.6 KEY DELIVERABLES

The Key Deliverables from the project are-:

less deviation in between forecasted and actual cash flow. Less Interest loss. Now after finalizing the objectives of the project and deciding the key deliverables expected from the project, In the second chapter I will discuss about the conceptual support required for the understanding of the project. It will cover cash flow process with surplus and deficit conditions.

CHAPTER 2 ORGANIZATION INFORMATION

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2.1TELECOM INDUSTRY:Previously, people used to communicate through a trunk call with the operator. They used the conventional methods of sending pigeon with the message to the loved ones or sending a post card. But, now Telecom Industry has shown a tremendous change. The growth started with the invention of a telephone on 10th March, 1876 by a great scientist Alexander Graham Bell. With this advent of first talking device people got connected to each other remotely. Now people can instantly talk to each other, can hear their voices, and can feel the presence. The wire lines phones were in full swings as more and more people were getting used to this technology. Then, came the mobile phones. With the help of these mobile phones one can move around with lot of coverage area. Initially, mobiles phones were very costly to afford as they had huge rental charges and also payment has to be made for received calls. Later, many companies evolved and offered many schemes which made the affordability of mobile phones cheaper. Additional features were added like SMS, MMS, and GPRS. Now, carrying mobile phones is more a fun and not only a talking device.

TELECOMMUNICATION
The word Telecommunication was adapted from the French word. It is a compound of the Greek prefix Tele which means far off and the Latin communicate which means to share. Telecommunication is the assisted transmission of signals over a distance for the purpose of communication. The basic telecommunication system consists of three elements: A transmitter that takes the information and converts it to a signal A transmission medium that carries the signal and, A receiver that receives the signal and converts it into the useful information.

MAJOR PLAYERS IN THE MARKET

There are three types of players in telecom services: -State owned companies (BSNL and MTNL) -Private Indian owned companies (Reliance Infocomm, Tata Teleservices,)

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 -Foreign invested companies (Hutchison-Essar, Bharti Tele-Ventures, Escotel, Idea Cellular, BPL Mobile, Spice Communications)

BSNL
On October 1, 2000 the Department of Telecom Operations, Government of India became a corporation and was renamed Bharat Sanchar Nigam Limited (BSNL). BSNL is now Indias leading Telecommunications Company and the largest public sector undertaking. It has a network of over 45 million lines covering 5000 towns with over 35 million telephone connections.

MTNL
MTNL was set up on 1st April 1986 by the Government of India to upgrade the quality of telecom services, expand the telecom network, and introduce new services to raise revenue for telecom development.

TATA TELESERVICES
Tata Teleservices is a part of the $12 billion Tata Group, which has 93 companies, over 200,000 employees and more than 2.3 million shareholders. Tata Teleservices provides basic (fixed line services), using CDMA technology in six circles: Maharashtra (including Mumbai), New Delhi, Andhra Pradesh, Tamil Nadu, Gujarat, and Karnataka. It has over 800,000 subscribers.

RELIANCE INFOCOMM
It is also an integrated telecom service provider with licenses for mobile, fixed, domestic long distance and international services. Reliance Infocomm offers a complete range of telecom services, covering mobile and fixed line telephony including broadband, national and international long distance services, data services and a wide range of value added services and applications.

BHARTI
Established in 1985, Bharti has been a pioneering force in the telecom sector, being the first mobile service in Delhi, first private basic telephone service provider in the country, first Indian company to provide comprehensive telecom services outside India and first private sector service provider to launch National Long Distance Services in India. Bharti Tele-Ventures Limited was incorporated on July 7, 1995 for promoting investments in telecommunications services. Bhartis operations are broadly handled by two companies: the Mobility group, which handles the mobile services in 16 circles out of a total 23 circles across the country; and the Infotel group, which handles the fixed line, broadband, data, and satellite-based services. The company has a total customer base of 6.45 million, of which 5.86 million are mobile and 588,000 fixed line customers.

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2.2BHARTI GROUP
Bharti Enterprises is an Indian conglomerate with interests in diverse fields including telecommunication services, manufacturing of telephone equipment, horticulture exports, BPO, software, realty and insurance.Bharti Enterprises has successfully focused its strategy on telecom while spanning diverse fields of business. From introducing push-button telephones into India, to becoming the largest manufacturer of telecom handsets (outside China) to founding India's largest integrated private telecom operator, Bharti has created a significant position for itself in the global telecommunications sector. Bharti Enterprises' dynamic diversification has continued with the company venturing into telecom software development, insurance, horticulture exports, BPO, realty, etc. The group is also entering the fast-growing retail business very shortly. Bharti Enterprises is a pioneer in telecom sector and the group is widening its horizons by entering new business areas such as insurance and retail. Bharti Enterprises has created a vantage position for itself in the global telecommunications sector. Bharti Airtel Limited occupies numero uno status in mobile telephony in India while its brand 'Beetel' is the largest manufacturer and exporter of world class telecom terminals. . Founder of Bharti Group is Sunil Mittal. In 1983, Sunil Mittal entered into an agreement with Germany's Siemens to manufacture the company's push-button telephone models for the Indian market. In 1986, Sunil Bharti Mittal incorporated Bharti Telecom Limited (BTL) and his company became the first in India to offer push-button telephones, establishing the basis of Bharti Enterprises. This first-mover advantage allowed Sunil Mittal to expand his manufacturing capacity

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elsewhere in the telecommunications market. By the early 1990s, Sunil Mittal had also launched the country's first fax machines and its first cordless telephones. In 1992, Sunil Mittal won a bid to build a cellular phone network in Delhi. In 1995, Sunil Mittal incorporated the cellular operations as Bharti Tele-Ventures and launched service in Delhi. In 1996, cellular service was extended to Himachal Pradesh. In 1999, Bharti Enterprises acquired control of JT Holdings, and extended cellular operations to Karnataka and Andhra Pradesh. In 2000, Bharti acquired control of Skycell Communications, in Chennai. In 2001, the company acquired control of Spice Cell in Calcutta. Bharti Enterprises went public in 2002, and the company was listed on Mumbai Stock Exchange and National Stock Exchange of India. In 2003, the cellular phone operations were rebranded under the single AirTel brand. In 2004, Bharti acquired control of Hexacom and entered Rajasthan. In 2005, Bharti extended its network to Andaman and Nicobar. Today, Airtel is the laegest cellular service provider in India.

2.2.1COMPANIES OF BHARTI ENTERPRISES:Bharti Airtel: Bharti Airtel is India's leading provider of telecommunications services. The company provides GSM mobile services across India in 23 telecom circles and broadband & telephone services in 90 cities. Bharti Teletech Ltd.: Bharti TeleTech manufactures and exports world-class telecom equipment under the brand Beetel'. It is the only Indian telephone company to be present in 30 countries mapping 5 continents. The company's product range include Basic Telephones, Caller ID Phones, Caller ID Boxes, Cordless Phones, 2.4 GHz Digital Cordless Phones, DECT 1.8 GHz Phones, and Set Top Boxes. Telecom Seychelles Ltd: Telecom Seychelles Ltd provides comprehensive telecom services including GSM Cellular, PSTN (Fixed Lines), Fax and Data, International Roaming, connectivity to Internet Services, Maritime Telecom Services (INMARSAT) and International Collect and Credit Card calling, in Seychelles, under the brand 'Airtel. Bharti Telesoft Ltd: Bharti Telesoft Ltd provides value added services and solutions to wireless
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and wireline carriers worldwide. Bharti Telesoft Ltd ha deployed products and solutions in 25 countries to over 100 network, and has a customer base of 150 million across 5 continents.

TeleTech Services (India) Ltd: TeleTech Services (India) Ltd is a joint venture between TeleTech Holdings, Inc., world's leading full-service provider of business process outsourcing and Bharti TeleTech Ltd. The company offers offer the entire spectrum of front-to-back-office business processes ranging from voice and non-voice customer support, back office administration (including credit and collections, account maintenance, application processing, claims processing, asset management, document management etc.), sales and marketing (including database marketing, marketing support, web sales and marketing etc.) to global customers. FieldFresh Foods Pvt Ltd: FieldFresh Foods (P) Ltd is an equal partnership venture between Bharti Enterprises and ELRo Holdings India Ltd, an investment company of the Rothschild family. The company provides premium quality fresh produce to the markets worldwide and promotes world class standards for agricultural practices, progressive farming techniques & identification and adoption of appropriate technologies. Bharti Retail Pvt Ltd: Bharti Retail Pvt Ltd. is a 100% subsidiary of Bharti Enterprises. Bharti Retail is planning to launch its retail outlets in multiple consumer friendly formats in several cities across India.

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2.3BHARTI AIRTEL LIMITED

2.3.1HISTORY:Established in 1985, Bharti has been a pioneering force in the telecom sector, being the first mobile service in Delhi, first private basic telephone service provider in the country, first Indian company to provide comprehensive telecom services outside India and first private sector service provider to launch National Long Distance Services in India. Bharti Tele-Ventures Limited was incorporated on July 7, 1995 for promoting investments in telecommunications services. Bhartis operations are broadly handled by two companies: the Mobility group, which handles the mobile services in 16 circles out of a total 23 circles across the country; and the Infotel group, which handles the fixed line, broadband, data, and satellite-based services. The company has a total customer base of 6.45 million, of which 5.86 million are mobile and 588,000 are fixed line customers. The mobility business provides GSM mobile services in all 23 telecommunications circles in India, while the Infotel business group provides telephone services and internet access in 15 circles. The company implements its mobile, broadband, and telephone services with national and international long distance services. It has over 21 million satisfied customers. The businesses at Bharti Airtel have been structured into three individual strategic business units (SBUs) - Mobile services, Airtel telemedia services & Enterprise services. The mobile business provides mobile & fixed wireless services using GSM technology across 23 telecom circles while the Airtel telemedia services business offers broadband & telephone services in 95 cities and has recently launched India's best Direct-to-Home (DTH) service, Airtel digital TV.

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2.3.2MARKET SHARE:The table below shows the market share of telecom companies in May-2011 in India.

COMPANY

MILLION SUBSCRIBERSTOTAL MARKET SHARE 0 0 ( IN PERCENTAGE) Bharti Airtel 100.00 28.37 RELIANCE 59.57 16.90 Voda fone 58.76 16.67 BSNL 45.28 12.85 IDEA Cellular 32.81 9.31 Tata Teleservice 31.02 8.80 Aircel 15.38 4.36 Mtna 4.10 1.16 Spice Telecom 3.71 1.05 BPL 1.88 0.53 Total 352.51 100.00

(Source: http://www.telecomindiadaily.in/tid_special_detail.php?TID=28)

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2.3.3BHARTI AIRTEL-ORGANIZATION STRUCTURE :-

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2.3.4BUSINESS DIVISIONS:MOBILE.SERVICES

Bharti Airtel offers GSM mobile services in all the 23-telecom circles of India and is the largest mobile service provider in the country, based on the number of customers. There are two types of customers pre-paid and post-paid. PREPAID Airtel pre-paid provides limitless possibilities for customers. The service helps to give, words to every feeling, an expression to every emotion. Here are some advantages that new Airtel pre-paid brings: Total cost control Pre activated STD/ISD without deposits or rentals Strong network coverage Instant balance and validity enquiry Recharge the Airtel pre-paid Pre-paid roaming More with Airtel pre-paid Reaches anytime anywhere

POSTPAID Life becomes much simpler with Airtel post-paid. It gives the unlimited freedom to reach out to people in a special way. The exciting features that can be enjoyed with an Airtel postpaid connection:
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Easy billing Easy payment options anytime, anywhere. Credit limit Strong network coverage Long distance calling facility Widest roaming (National and International) It provides the GPRS facility.

AIRTEL TELEMEDIA SERVICES

Airtel offers high speed broadband internet with a best in class network. With Landline services in 94 cities its helps to stay in touch with friends & family and the world. It provides world class entertainment with Indias best Direct to Home (DTH) service, digital TV in more than 150 cities.

ENTERPRISE SERVICES

Enterprise services provides a broad portfolio of services to large Enterprise and Carrier customers. This division comprises of the Carrier and Corporate business unit. Enterprise services is regarded as the trusted communications partner.

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2.3.5 THE BRAND

Airtel was born free, a force unleashed into the market with a relentless and unwavering determination to succeed. A spirit charged with energy, creativity and a team driven to seize the day with an ambition to become the most globally admired telecom service. Airtel, in just ten years of operations, rose to the pinnacle to achievement and continues to lead.

As India's leading telecommunications company Airtel brand has played the role as a major catalyst in India's reforms, contributing to its economic resurgence.

Today Airtel touch peoples lives with its Mobile services, Telemedia services, to connecting India's leading 1000+ corporates. Airtel also connect Indians living in USA, UK and Canada with its call home service.

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2.3.6AIRTEL SERVCES

Experience total cost control, no rentals and easy billing with its postpaid and prepaid services. Explore the world with its roaming services and get absolutely cool offers with Airtel Live.

Airtel welcomes us to the world of telephony services for our home. Experience a world class service and cutting edge technology with Airtel landline and its feature rich Wireless fixed line. Whats more, calling is made more fun and convenient with services and entertainment on Airtel.

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Airtel Broadband Services, India's most preferred high-speed Internet service, redefines our Internet experience. It is fast, fun, convenient and cost effective.

BlackBerry from Airtel is an 'always connected' wireless solution providing easy and secure access to our email and data.

Want to access information on our mobile? Airtel brings us Email on the go. We can choose from BlackBerry and Windows Mobile 5.0 depending upon the usage patterns, requirement and suitability.

Airtel calling card services connect us to the world from India and allow a better way to call back India.

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With Airtels Wireless Internet, we have the freedom to access the Internet anytime, anywhere across India. It enables Internet, Email, and Office applications with real-time secure VPN access to corporate applications whilst on the move.

Discover the magical experience of digital entertainment with Airtel. From DVD quality picture and sound, the best and widest variety of channels and programmes to the best on-demand content on Airtel Live, our TV viewing experience change forever with digital TV from Airtel!

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2.3.7Airtel Business Services:-

Airtel is proud to be the trusted communications partner to Indias leading organisations, working for them to meet the challenges of growth. Across India. Beyond India. Airtel offer a full suite of business communication services across data, voice and managed services. Airtels solutions are tailored to fit your particular needs. Airtel is a part of the Bharti Group. Airtel has always been challenging the limits of innovation and striving to find new and better ways of doing things. Airtels people are committed to helping you succeed. Airtel will stick through thick and thin.

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2.3.8WHAT AIRTEL OFFERS:-

Airtel know that the needs of every business are different, so Airtel will never suggest a one-sizefits-all system. Airtel will work with you to identify your specific needs, then tailor an effective solution that can be scaled, adapted or migrated as your business changes. Data and IP Solutions Airtel,s portfolio of Data and IP services helps us do business at ease. From keeping our mission critical applications running to managing the flow of information across the globe, Airtels comprehensive suite of data technologies and infrastructure support does it all for us. Internet Access Our browsing needs are varied. It provide us with a host of customised services that fit our particular needs. Be it managing our Internet, better latencies to other countries, need based Internet capabilities, dual PoPs or higher uptimes, they work with us to give us the best. DataTransport Solution Whether we need site-to-site connectivity or WAN integration with optical network that provides digital transmission, Airtel services will give us peace of mind and more reasons to expand further.

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Access Services Airtels local loop is a digital network service that provides an optical transmission path on its extensive access network in most of the top cities in India for private point-to-point connectivity. This can be used as a part of TDM or IP circuits.

Satellite Services Airtel Satellite services provide reliable network connectivity to run our mission critical applications. The solution supports voice, audio and video applications on-demand suiting our transmission requirements. This service is available both in India and abroad.

Managed Network Solutions Make our network efficient, scalable and reliable with its Managed Network solutions. It offer endto-end comprehensive solutions for network connectivity, thus giving us flexibility through customised solutions and increased coverage.

Collaborative Services Now let technology and innovation bring about a paradigm change in our enterprise through increased revenue generation and efficiency. Its collaborative services empower our business to automate response from sales team, track our fleet and enables call centres to save time and effort.

Online Desktop
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Now, back up our data in a safe and secure location. Access, edit and share this data from anywhere in the world. Not only that, Get the latest and original software on a monthly ent, without having to buy anything upfront. Voice Solutions Businesses need to invest in resources in a multimodal communication environment to offer seamless customer experience. Airtel voice solutions help us communicate and collaborate within and beyond our organization, helping us meet the demands of growth.

Mobility Solutions Airtel offer us mobile solutions that are developed with one thing in mind, our business. Whether we are a single or a large operator, we create a price plan that works for our business along with a range of features or services to meet our needs.

Fixed Line and Broadband Our business needs to be in touch with its customers , proactively respond to the evolving customer needs and extend a uniform customer experience.

Enterprise VAS With Airtel portfolio of Enterprise value added services, we can stay connected wherever we are and continue to perform all the tasks using our handheld device.

Conferencing

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Meet face to face virtually. With Airtels Conferencing services, we will no more be constrained by geographies or time zones. Now we can stay connected with your colleagues and business partners without even being there.

Audio Conference Service With Airtel Audio conference service, we can now change the office space forever. This service provides us the convenience of holding conversations with our team members at different locations through a phone.

Video Conference Service Now we and our colleagues at geographically distant locations can interact in real-time with fullmotion video and audio. Airtel Video conference service provides a virtual meeting environment, giving us the benefit of real meeting. Besides the audio and visual transmission of meeting activities, this service can be used to share documents, computer-displayed information, and whiteboards.

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MISSION
To meet the global standards for telecom services that delight customers through: Customer service focus Empowered employees Innovative services Cost Efficiency

VALUES
CUSTOMER: We will be responsible to the needs of our customers. PEOPLE: We will trust and respect our employees. LEARNING: We will continuously improve our services innovatively and expeditiously. COMMUNITY: We will be transparent and sensitive in our dealings with all stakeholders. OPPORTUNITIES: Imagine having the resources to influence tomorrows reality today. At Airtel we are seeking people whose ideas can make a difference, individuals who thrive on the opportunity to think creatively and be empowered to deliver.We are proud of our ability to nurture individuals and provide them the space and empowerment they need to home their talents. Our size gives us the unique ability to provide fast growth and high responsibility early in ones career as well as multiple avenues to reach the top.

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VISION AND PROMISES

By 2011 Airtel will be the most admired brand in India:

Loved by more customers Targeted by top talent Benchmarked by more businesses

We at Airtel always think in fresh and innovative ways about the needs of our customers and how we want them to feel. We deliver what we promise and go out of our way to delight the customer with a little bit more

LOGO
The Airtel logo is a specially drawn woodmark. It incorporates two solid, red rectangular forms whose counter form creates an open doorway. The case lettering with its capital A reinforces our leadership position. The red dot cues in the companys focus on innovation. The logo is a reflection of the companys identity a confident symbol of a brand that is always ahead of the rest, always In-touch and on customers side.

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2.4 ACHIEVEMENTS
First to launch Cellular Service on November 1995.

First operator to revolutionaries the concept of retailing with the inauguration of Airtel

Connect (exclusive showrooms) in 1995.

First to introduce push button phone in India

First to expand its network with the installation for second mobile switching center in

April, 1997 and the first to introduce the Intelligent Network Platform First to provide Roaming to its subscribers by forming an association called World 1 Network.

First to provide roaming facility in USA. Enjoying the mobile roaming across 38 partners

network & above 700 cities moreover roam across international destinations in 119 countries including USA, Canada , UK etc with 284 partners networks.

BHARTI announces agreement with VODAFONE marking the entry of the Worlds

Largest Telecom Operator into India.

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Bharti Enterprise and AXA Asia Pacific Holdings Limited announce Partnership for a life

insurance joint venture in India.

Airtel Launches future factory- Centers of innovation to Incubate Pioneering Mobile

Applications.

16 states, 600 million people. Only Indias leading mobile services offers you the truly

freedom-packed prepaid!

It is also the first company to export its products to the USA.

BAHRTI announces agreement with VODAFONE marking the entry of the Worlds Largest Telecom Operator into India.

Vodafone to invest approximately Rs. 6,700 crores (approx around 10/5 in Bharti Tele-Ventures Ltd

UDS 1.5 bn.) to acquire

Bharti Enterprises, SingTel and Vodafone to take Bhati Tele-ventures Ltd. To unassailable Leadership position in India.

The Largest single foreign investment ever in the history of India The largest investment in the Indian Telecom Sector.

Bharti establishes its supremacy in the Indian Telecom market, having attracted Asias best- SingTel and now worlds best Vodafone.

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Bharti set to gain global leadership in the telecom sector.

Bharti Enterprise continues to hold shareholding and management control in Bharti TeleVentures.

AWARDS FOR THE YEAR 2007-2008 Bharti Airtel has won the CNBC- TV India Business Leader Award for the Outstanding Company of the year 2007.

Bharti draws top honours at the NDTV profit Business leadership Awards 2007.

Bharti Airtel Ranked 3rd on Shareholder Returns in Business Week IT 100 List.

Sunil Bharti Mittal conferred Degree of Doctor of Science by G.B Pant University

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CHAPTER-3 LITERATURE REVIEW/ CONCEPTUAL SUPPORT

3.1 CASH COLLECTION:In The respective Airtel Mobility Head Office cash collection is forecasted. It means the cash through various sources like Pre-paid,Post-Paid, Lapu ( e-recharge) and Roaming is estimated for the next day. And this forecasted value is send to the APO (Airtel President Office) at 3:30pm. accordingly the APO send the report of total forecast cash inflow(cash inflow-cash out flow) to the different banks according to there prospective Job (described below). On the basis of there reports banks invest this money on behalf of Airtel for short term. And the interest is

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given to Airtel by banks for that money. Next day the actual cash is collected at 2:00pm ,there occur the difference between the forecasted amount of cash and the actual amount of cash received. (For example on 1 st April the total cash inflow is forecasted for 2nd April at 3:30pm this forecasted amount report is send to APO and on 2nd April at 2:00pm the total actual cash collected is send to the APO, then Actual cash is send to the respective Bank) This difference is called Deviation. Due to this deviation Airtel bear Interest Loss. This interest loss can be understood under two prospective(I)From COLLECTION point of view . (II)From PAYMENT point of view.

3.1.1 FROM COLLECTION POINT OF VIEW:Under this those bank comes in which the collected cash is kept. These Banks are SBC Bank, CITI Bank, DEUTSCHE Bank and ICICI Bank. For Example:-

FORCASTED
65 Million Rs.

ACTUAL
70 Million Rs.
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DEVIATION
5 Million Rs. SURPLUS

65 Million Rs.

62 Million Rs.

3 Million Rs.

DEFICIT

Here when actual cash collected is more than the forecasted one then the Airtel have extra cash on that extra cash the Airtel has to bear the Interest Loss . Explanation:- Because APO sends the report to the bank in advance and bank invest the pre decided amount for short term . and Airtel losses the interest on the extra earning . This extra earning remain no income generating because on current account there is no interest. And when actual cash collected is less than the forecasted one then the Airtel has to bear again interest loss on that money. Explanation: :- Because APO sends the report to the bank in advance and bank invest the predecided amount for shot term . and Airtel losses the interest on the shortfall money . i.e. bank Invest the money from his side on behalf of Airtel and charge the interest on the Banks money from Airtel.

3.1.2 FROM PAYMENT POINT OF VIEW:Under this only HDFC bank comes under which we keep that cash which for the different purposes. (i)Vender payment (ii) Stationary payment (iii) Employee payments (iv) Rent (v) Network expences (vi) Roaming payment the Airtel expenses

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For Example:-

FORCASTED
7 Million Rs. 7Million Rs.

ACTUAL
6.3 Million Rs. 7.8Million Rs.

DEVIATION
0.7 Million Rs. 0.8 Million Rs.

SURPLUS DEFICIT

Here when actual cash payment is less than the forecasted one then the Airtel has extra money. On that extra money Airtel has to bear interest loss. Explanation:- As actual payment is less than the forecasted one it means Airtel will have to pay less cash for the various expenses occur by the Airtel hence Airtel has to bear Interest loss on that extra saving which he could get by investing for short term. And when actual cash payment is more than the forecasted one then the APO has to bear again Interest Loss. Explanation:- As actual payment is more than the forecasted one it means Airtel will have to pay more money from its actual collection for the various expenses occur by the Airtel. Because Airtel pays less cash to the Bank which it has already promised , then Bank invest the money from its side on behalf of Airtel and charges double Interest from Airtel.

3.2 BANKS HAVING COLLEBOTATION WITH AIRTEL ARE:1).CITI BANK:(i) LAPU (ii) CREDIT CARD

2).SCB:(i) CASH COLLECTION

38

3).ICICI BANK :-

(i)CASH COLLECTION (FOR POST PAID)

4) DEUTSCHE BANK:-

(i) ROAMING COLLECTION

5).HDFC BANK:(i) VENDER PAYMENTS (ii) STAIONARY PAYMENTS (iii) EMPLOYEE PAYMENTDS (iv) RENT (v) NETWORK EXPENCES (vi) ROAMING PAYMENT

The company receives its collection from two types of customers, via post-paid and pre-paid subscribers. PRE-PAID PROCESS:Pre-paid refers to services paid for in advance. Pre-paid accounts are the pay and use, All collections in case of pre-paid business is from pre-paid distributors. For pre-paid distributors, the payment is received in advance prior to dispatch of recharge coupons, etc. For this purpose, the pre-paid distributor makes the payment by either of the following modes: (1)Real Time Gross Settlement (RTGS) (2)National Electronic Fund Transfer (NEFT)

39

POST-PAID PROCESS:A commonly referred to in and across India with telecom service providers for customers who use and pay. A customer goes to the Airtel Resource Centre, interacts with the executive and selects a post-paid plan. He then buys a number and becomes customer of Airtel. Customer uses the number for whole month and then bill statement in the form of printed paper is delivered to the post-paid customers residence at the end of the month through the medium of registered post. Then, the customer pays off the whole amount of the bill before due date of the bill. The customer can pay his bill in whichever way he is convenient. The various modes of payment are cash, cheque, credit card, electronic transfer etc. Every mode has its own well defined process and company incurs certain costs associated with it.

3.3DIFFERENT MODES OF PAYMENT A) CASH

Customer can pay their post-paid bills by cash, for this he goes to the Airtel Relationship Centre (ARC) and pay their bill by cash. These ARCs receives the cash on behalf of the company by two modes, these are: 1) BY PICK UP AGENCY (SECURTANS) 2) BY PSBC (PRE-SIGNED BLANK CHEQUES) SYSTEM Currently there are 62 ARCs in various locations of Delhi and NCR regions. These ARCs are collecting cash from the subscriber on behalf of the company.

40

1) PICK UP AGENCY In Cash pick process Securtans comes to ARC and pick the cash and deposits that in Airtel Standard chartered bank account. Similarly, the agents appointed by the ICICI deposits in the ICICI bank. . 2) PSBC SYSTEM In PSBC, CAD (Customer Accounting Department) has the pre-signed blank cheques of ARCs. For, the collection which ARCs receives, CAD (Customer Accounting Department) generates the POS report. This report is prepared on daily basis. According, to the POS report generated the CAD prepares the cheques as well as the deposit slips and deposits these cheques into the bank. The deposit slips are kept with the CAD for reference. The bank makes the entry and credits the amount in the Airtels bank account. Further, the bank prepares the MIS Statement which it sends to the company. ACCOUNTING PROCESS A entry is passed with crediting the amount as per the DCR (Daily Collection Report) prepared by the ARC, receipts provided with the bank for depositing the cash in bank by agents and MIS which is received from the bank for depositing the PSBC cheques. The amount which is debited is the debit notes prepared by the CAD according to the POS reports in the oracle. The PSBC system is not in use by the company. The company was incurring huge amount of costs in this system, so the company decided to discard this system. Now, the company uses
41

Customer pays cash to ARC (Airtel Relationship Center) for their post- paid bill payment or for the security deposit (day 0). Cash collection team collects cash from ARC the next day on (day1). Collection team deposits the cash collected, in airtel bank account the next day that is, on (day2). Finance department maintains a daily ARC wise tracker through which outstanding & balance to be recovered can be analyzed.

only PICK UP AGENCY system. The companies have two types of active agents working for the company, The Secutrans and agents appointed by the ICICI bank. ICICI bank appoints the agent, who picks up the cash directly from the ARCs. The Secutrans deposits the cash in Standard Chartered Bank.

B) CREDIT CARDS
Customers can pay their post-paid bills via credit cards also, for this he can pay by different modes, such as: 1) By visiting the ARC and swapping the credit cards 2) By visiting the airtel world and pay online by credit cards. 3) By directly transferring the amount in airtel bank account. 4) By choosing the facility of ECS and SI 5) By non-conventional mode.

1) PROCESS FOR CARDS PAYMENT Airtel has four cards swapping collaborations with the banks, via HDFC, ICICI, AMEX, and CITI. Customer visits ARC and pays their bills by cards. Payments by cards are directly
42

received in airtel bank account as there is direct tie with the card agency after deducting their commission. The company has tie-up with three banks, via HDFC, ICICI, CITI banks. All these banks provide the MIS statement for the swapping of cards on the daily basis. The CAD consolidates all the MIS from all banks and prepares the POS report. The information of MIS is provided by the CAD to the finance department, who checks the credit in the bank and passes the entry:

Bank account Dr. To Subscribers account

2) PAYMENT ON AIRTEL WORLD Customer can pay their post-paid bills by visiting the airtel world website (www.airtel.com). Customer has to register his airtel mobile number for accessing his account on the site. After the registration, the customer can access his account on the site. After logging in site, customer can pay their bills via debit and credit cards.

ACCOUNTING PROCESS All the banks which receive the amount through this mode prepare the MIS and sent to the CAD. CAD prepares the POS report and provides information to the finance department, who in turn checks the credit in the bank and passes the entry: Bank account .Dr. To Subscribers account

43

3) DIRECT TRANSFER IN BANK ACCOUNT Customer can also pay their post-paid bills by directly transferring the amount to the Airtels bank account. When the amount is credited in the Airtels bank account, bank prepares the MIS statement and forwards to the CAD. CAD prepares the POS report and provides information to the finance department. The finance department checks the credit in the bank and passes the entry: Bank account ..Dr. To subscribers account

4) ECS/SI FACILITY Payment through this mode is made on prior instructions received by the customers. ECS/SI database is prepared for all those customers who give the instructions. The database file is sent to the bank in which customers holds the account. The payment of bills is deducted from the account balance of the customers and the record is maintained by the bank. The bank prepares the MIS for the same and sends to the company. CAD prepares the POS report and passes the information to the finance. The finance checks the credit in the bank and passes the entry. Bank accountDr. To Subscribers account 5) NON-CONVENTIONAL MODE In this process of payment, the customer makes the payment of their post-paid bills by other modes than cash, credit cards, and cheques. Here, the customer visits his own bank site and clicks on the option of payment of mobile bill online. After that, the online payment window opens asking for the details of the customers that is, the ID and the password. The bank

44

prepares the MIS and provides to the CAD. CAD prepares the POS report and passes on the information to the finance. The finance checks the credit in the bank and passes the entry.

Bank account ..Dr. To Subscribers account

C) CHEQUES
Customer can pay their bills by dropping the cheque in drop box of any location in Delhi and NCR. Bank clears all drop boxes on daily basis. Airtel has already provided data base for the post-paid subscriber to the bank. Bank prepares the LBX file for the cheque for the bill payment, which is same as the MIS statement. While preparing the LBX file, the bank person checks that all the details on the cheque are correct. Bank excludes all those cheques which have incomplete details. Bank passes on the LBX file to the company. CAD prepares the POS report for the same and passes to the finance. The finance checks the amount in the bank and passes the entry. Bank account.Dr. To Subscribers account CHEQUE BOUNCING PROCESS The cheques through which the customer makes the payment are sometimes bounced. For, the same bank provides the cheque bouncing MIS on the daily basis to CAD. CAD reverses all the bounce cheques in the POS report and all the details relating to the cheque bounce are intimated to finance. The finance department after receiving the information passes the entry

Subscribers account.Dr.
45

To Bank account

CHAPTER -4 RESEARCH METHODOLOGY

46

Now after going through the conceptual support required for understanding the project, a methodology has to be prepared for how to complete the project successfully.

4.1)RESEARCH DESIGN The research Designs adopted in this study are Exploratory and Causal. Exploratory Research Design has been use

To gain background information To define terms To clarify problems To develop questions to be answered

Causal Research Design has been used in finding the affects of recommendation given by

me (as a dependent variable)extraneous variables.

47

4.2)DATA COLLECTION This research work has been completed on the basis of secondary data only as no instrument for primary data collection is used. Secondary Data has been collected from the company, where all the data of Daily Cash Forecast and Daily Actual Cash Flow Statement has been provided Apart of this Experience Surveys, various printed materials from internal and external sources are used.

4.3)PROJECT METHODOLOGY The methodology adopted for the accomplishment of project is explained in the below enlisted steps-: Step 1-: The excel base calculation structure of Daily Cash Forecast was provided to me for the month of April-2011. Step 2-: The process of forecasting and the process of collection for each bank was described by my mentor ,. Step3:- I Understood the approach adopted by the employee for forecasting the cash inflow via various modes. Step 4:- After that I calculated the deviation and the interest loss bank wise for April 2011 . Step 5:- After that I calculated the deviation and interest loss for the month of May 2009.

48

Step 6-: Then I found out the trend and the reasons behind this deviation. On the basis of this result some suggestion were applied for the pre-paid and the deviation was calculated for the month of June And the big improvement was seen.

4.4)LOCALE OF THE PROJECT There are 23 Circle Offices of Bharti Airtel across India and one Corporate Office located in Gurgaon, Cyber Park. There are three divisions of Bharti Airtel Ltd. Mobile services, Telemedia services and Enterprise services. The project is conducted over the Delhi circle pertaining to Mobility division of Bharti Airtel Ltd. Deviation between Forecasted Vs Actual is minimized.

CHAPTER-5 DATA ANALYSIS

49

5.A.1) INTEREST LOSS BEARED BY AIRTEL ON STANDERD CHARTED BANK COLLECTION :-

SCB Month April

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16

Rs.Mn. Actual
4.61 1.99 1.67 7.65 1.59 2.23 2.72 4.32 2.11 50

Rs. Interest
445 31 177 879 199 71 53 316 77

Day
Wed Thu Fri Sat Sun Mon Tue Wed Thu Fri Sat Sun Mon Tue Wed Thu

Forecast
1.90 1.80 2.30 2.30 2.30 1.80 2.40 2.40 2.40

Deviation
2.71 0.19 (0.63) 5.35 (0.71) 0.43 0.32 1.92 (0.29)

17 18 19 20 21 22 23 24 25 26 27 28 29 30 =3,487

Fri Sat Sun Mon Tue Wed Thu Fri Sat Sun Mon Tue Wed Thu

2.40 2.30 2.20 2.50 2.60 2.40 2.20 1.80 2.40 2.30 2.30 2.30

1.98 1.79 1.89 2.04 1.76 1.76 2.05 1.53 2.17 2.84 1.86 2.20

(0.42) (0.51) (0.31) (0.46) (0.84) (0.64) (0.15) (0.27) (0.23) 0.54 (0.44) (0.10)

112 136 83 123 224 171 40 72 61 89 118 27 Total Interest loss

For SBC Bank interest loss formula is=ABS (IF(D<0,D*10.25% /365*1000000, D*6% /365* 1000000)) (D represents Deviation)

GRAPHICAL EVALUATION:5.A.1.1)-

5.A.1.2)

51

From the graph it is clear that on 8th April there occurred the max. Deviation , hence Airtel had interest loss of = 879 Rs. On the particular day.

5.A.2)INTEREST LOSS BEARED BY AIRTEL ON CITY BANK COLLECTION :-

CITI BANK Month April 1 2 3 4 5 6 7 8 9 10 11 12 13 14 Day Wed Thu Fri Sat Sun Mon Tue Wed Thu Fri Sat Sun Mon Tue Forecast 65.00 8.00 80.00 65.00 100.00 25.00 75.00 Actual 101.18 17.16 92.39 69.72 90.21 19.04 89.47 -

Rs.Mn. Deviation 36.18 9.16 12.39 4.72 (9.79) (5.96) 14.47 -

Rs. Interest 5,947 1,506 2,037 776 3,889 2,368 2,379 -

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15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30

Wed Thu Fri Sat Sun Mon Tue Wed Thu Fri Sat Sun Mon Tue Wed Thu

75.00 65.00 65.00 10.00 65.00 65.00 65.00 65.00 65.00 10.00 65.00 65.00 65.00 65.00

74.50 49.42 66.71 8.15 65.60 40.04 47.64 42.89 62.05 9.04 61.10 61.46 45.17 40.65

(0.50) (15.58) 1.71 (1.85) 0.60 (24.96) (17.36) (22.11) (2.95) (0.96) (3.90) (3.54) (19.83) (24.35)

199 6,189 281 735 99 9,916 6,896 8,783 1,172 381 1,549 1,406 7,878 9,673

Total Interest Loss = For CITI Bank interest loss formula is=ABS (IF(D<0,D*14.50% /365*1000000, D*6% /365* 1000000))

74,059

(D represents Deviation)

GRAPHICAL EVALUATION:5.A.2.1)-

5.A.2.2)-

53

From the graph it is clear that on 2nd, 4th , 6th, 11th, 13th, 16th, 21st, 22nd, 23rd, 24th, 27th, 28th, 29thand on 30th April there occurred the max. Deviation , hence Airtel had suffered interest loss of = 71,589 Rs. On the particular days. 5.A.3) INTEREST LOSS BEARED BY AIRTEL ON DEUTSCHE BANK COLLECTION:-

Deutsche Bank Month April 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 Day Wed Thu Fri Sat Sun Mon Tue Wed Thu Fri Sat Sun Mon Tue Wed Thu Forecast 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 Actual 4.24 0.75 6.23 17.09 4.60 6.21 1.94 13.86 4.32

Rs.Mn. Deviation 3.24 (0.25) 5.23 16.09 3.60 5.21 0.94 12.86 3.32

Rs. Interest 533 0 92 0 860 0 2645 592 0 856 0 155 0 2114 546

54

17 18 19 20 21 22 23 24 25 26 27 28 29 30

Fri Sat Sun Mon Tue Wed Thu Fri Sat Sun Mon Tue Wed Thu

1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00

58.66 0.27 0.77 24.25 4.14 1.50 5.43 17.31 1.27 0.17 2.85 2.78

57.66 (0.73) (0.23) 23.25 3.14 0.50 4.43 16.31 0.27 (0.83) 1.85 1.78

9478 270 0 85 3822 516 82 728 2681 0 44 307 304 293

Total Interest Loss =

27,003
For DEUTSCHE Bank interest loss formula is=ABS (IF(D<0,D*13.5% /365*1000000, D*6% /365* 1000000)) (D represents Deviation)

GRAPHICAL EVALUATION:5.A.3.1)-

5.A.3.2)-

55

From the graph it is clear that on 8th , 15th, 17th, 21st, 25thApril there occurred the max. Deviation , hence Airtel had suffered interest loss of = 20740 Rs. On the particular days.

5.A.4)INTEREST LOSS BEARED BY AIRTEL ON HDFC BANK COLLECTION :-

HDFC Bank Month April 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 Day Wed Thu Fri Sat Sun Mon Tue Wed Thu Fri Sat Sun Mon Tue Wed Thu Forecast 7.00 7.00 7.00 7.00 7.00 7.00 7.00 15.30 20.00 56 Actual 36.19 4.71 7.79 7.66 0.68 1.36 3.80 11.89 15.30

Rs. Mn. Deviation 29.19 (2.29) 0.79 0.66 (6.32) (5.64) (3.20) (3.41) (4.70)

Rs . Interest 0 9597 0 376 0 260 0 217 1039 0 927 0 526 0 561 773

17 18 19 20 21 22 23 24 25 26 27 28 29 30

Fri Sat Sun Mon Tue Wed Thu Fri Sat Sun Mon Tue Wed Thu

7.00 1.70 17.50 7.00 7.00 7.00 34.01 7.00 7.00 16.10 13.00 7.00

1.57 3.30 17.33 11.30 1.12 26.05 13.90 0.03 1.18 23.37 26.78 4.85

(5.43) 1.60 (0.17) 4.30 (5.88) 19.05 (20.11) (6.97) (5.82) 7.27 13.78 (2.15)

893 526 0 28 1414 967 6263 3306 1146 0 957 2390 4530 353

Total

Interest

Loss

37,047
For CITI Bank interest loss formula is=ABS (IF(D<0,D*6% /365*1000000, D*12% /365* 1000000)) (D represents Deviation)

GRAPHICAL EVALUATION:5.A.4.1)-

5.A.4.2)-

57

From the graph it is clear that on 2nd,9th , 21st,23rd ,24th ,25th ,28th ,29th April there occurred the max. Deviation , hence Airtel had suffered interest loss of = 29684 Rs. On the particular days.

5.A.5) INTEREST LOSS BEARED BY AIRTEL ON ICICI BANK COLLECTION:-

ICICI Bank Month April 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Day Wed Thu Fri Sat Sun Mon Tue Wed Thu Fri Sat Sun Mon Tue Wed Forecast 35.00 30.00 35.00 35.00 40.00 30.00 35.00 35.00 58 Actual 39.18 25.66 57.44 33.37 25.70 29.57 26.40 54.57

Rs. Mn.

Rs.

Deviation 4.18 (4.34) 22.44 (1.63) (14.30) (0.43) (8.60) 19.57

Interest 687 1,575 3,689 592 5,191 156 3,122 3,217

16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 44,434.86

Thu Fri Sat Sun Mon Tue Wed Thu Fri Sat Sun Mon Tue Wed Thu

35.00 35.00 30.00 29.00 32.00 32.00 35.00 35.00 30.00 35.00 35.00 35.00 35.00

22.81 19.04 43.33 25.78 25.60 33.91 29.22 39.49 43.45 38.78 36.11 34.37 24.23

(12.19) (15.96) 13.33 (3.22) (6.40) 1.91 (5.78) 4.49 13.45 3.78 1.11 (0.63) (10.77)

4,425 5,794 2,191 1,169 2,323 314 2,098 738 2,211 621 182 229 3,910

Total Interest Loss = For ICICI Bank interest loss formula is=ABS (IF(D<0,D*13.25% /365*1000000, D*6% /365* 1000000)) (D represents Deviation)

GRAPHICAL EVALUATION:5.A.5.1)-

5.A.5.2)59

From the graph it is clear that on 4th , 6th, 9th, 13th,15th , 16th,17th ,18th , 20th , 21st, 23rd, 25th and on 30th April there occurred the max. Deviation , hence Airtel had suffered interest loss of = 37,227 Rs. On the particular days. TOTAL INTEREST LOSS BEARED BY AIRTEL IN THE MONTH OF APRIL= = ( 3,487 + 74,059+ 27003+ 37047+ 44,434) =1,86031 Rs.

5.B)COMAPARATIVE STUDY OF INTEREST LOSS BANK WISE FOR THE MONTH OF APRIL AND MAY:-

60

S BN C A K Ar pil R wL b ls o ae Sn u 0 Mn o 0 3 .2 0 1 .3 0 2 .3 0 3 .6 Te u 0 0 6 .4 0 4 .5 Wd e 0 0 4 .4 0 4 .8 1 2 .9 5 5 .3 Tu h 0 .1 0 9 .2 0 4 .6 0 1 .7 2 1 .7 Fi r 0 0 5 .1 0 2 .4 St a 0 9 .1 0 7 .2 0 3 .4 0 1 .5 Ga dT t l r n oa My a R wL b ls o ae Sn u Mn o 0 0 .2 0 0 .4 0 0 .5 Te u 0 0 .1 0 0 .3 0 0 .4 Wd e 0 0 .2 0 0 .3 0 0 .7 Tu h 0 0 .1 0 0 .1 1 0 .2 Fi r 0 0 .2 0 0 .3 0 0 .3 0 0 .7 St a 0 0 .1 0 0 .4 0 0 .9 0 0 .9 ( la k b n) Ga dT t l r n oa

C IB N IT A K Ar pil R wL b ls o ae Sn u 0 Mn o 0 .6 3 .9 1 .3 2 9 1 .4 4 7 Te u 0 3 4 .5 2 .9 4 6 Wd e 0 .5 4 2 .7 1 .3 7 6 1 .8 9 3 (b n ) la k Tu h 9 9 .7 1 .5 5 8 2 .1 2 1 2 .3 4 5 3 .1 6 8 Fi r 0 1 1 .7 2 5 .9 St a 0 6 .9 1 5 .8 5 6 .9 9 6 .1 Ga dT t l r n oa My a R wL b ls o ae Sn u 0 Mn o 5 .5 6 .6 8 .6 2 .1 0 Te u 6 .6 2 .3 0 2 .9 0 2 .7 4 Wd e 3 .5 6 .5 1 .8 7 3 .9 1 Tu h 2 .5 0 2 .2 0 2 .7 3 Fi r 1 .6 6 .2 7 .9 1 .4 4 1 .9 5 St a 5 0 .2 3 .2 3 .2 8 .3 ( la k b n) (b n ) la k

The yellow box indicate major deviations

61

D u c eb n e ts h a k Ar pil My a Rw a e o L b ls Rw a e o L b ls Sn u Sn u 0 0 Mn o (b n ) la k 0 Mn o 07 .2 1 .2 04 .9 3 .2 53 .2 4 .6 Te u 3 6 0 Te u 03 .8 0 .6 2 .2 35 1 .4 (b n ) la k 3 .2 Wd e 5 .2 15 .8 Wd e 34 .1 0 .5 1 .8 26 0 .8 1 .0 69 1 .5 (b n ) la k 6 .7 Tu h Tu h 0 .5 0 .9 18 .7 1 34 .2 5 .2 32 .3 1 .5 0 3 .6 Fi r Fi r 1 .4 0 3 .3 43 .4 3 .7 5 .6 76 1 .7 6 St a 1 .6 9 05 .2 St a 03 .7 0 51 .2 0 .1 1 .3 61 0 .2 Ga dT t l r n oa ( la k b n) (b n ) la k

HF BN DC A K Ar pil My a Rw a e o L b ls Rw a e o L b ls Sn u Sn u 0 0 Mn o Mn o 07 .1 5 .6 09 .7 8 3 .2 1 .4 2 52 .8 1 .5 2 Te u Te u 0 3 .9 4 .3 4 .6 77 .2 6 .2 Wd e 8 .9 0 Wd e 06 .6 1 .7 31 .4 1 .9 58 .8 1 .7 1 1 .7 38 2 .6 8 Tu h Tu h 25 .1 0 4 .7 1 .9 62 .3 2 .8 1 .0 95 3 .2 2 .1 99 Fi r Fi r 0 .1 0 2 .9 53 .4 6 .5 2 .1 01 1 .2 3 St a 1 .7 5 1 .6 St a 29 .2 3 .4 54 .6 3 .5 67 .9 4 .2 Ga dT t l r n oa 7 .6 1 7 ( la k b n)

IC I B N IC A K Ar pil My a Rw a e o L b ls Rw a e o L b ls Sn u Sn u 0 Mn o Mn o 32 .2 2 .1 38 .7 6 .5 80 .6 1 .7 1 2 .4 24 1 .5 6 Te u Te u 0 .4 11 .1 1 .6 2 60 .4 1 .8 4 Wd e 1 .9 7 Wd e 03 .6 0 .3 13 .6 2 .1 11 .9 8 .8 1 .5 97 1 .8 6 Tu h Tu h 48 .1 1 .5 58 .7 2 .4 1 .7 07 2 .6 1 .1 29 1 4 1 .3 40 Fi r Fi r 3 .1 5 .3 49 .4 6 .2 1 .9 56 1 .8 5 St a 3 .6 1 03 .4 St a 44 .3 0 1 .3 33 2 .5 1 .4 35 8 Ga dT t l r n oa 8 .9 2 .8 2 ( la k b n)

From the above study it is clear that in case of SCB there occur very less deviation, But as for as CITI BANK is concern mainly deviation has been occurred on Tuesday, Thursday and on Wednesday. In HDFC Bank the major deviation occurred on Monday, Tuesday ,Friday and on Saturday in the month of May. But In ICICI Bank there was no trend In this bank both months gave different figures, But the one thing I got was the Major Deviations occurred after 2 nd half of each month. i.e. after 12th ,13th of each month. Hence I decided to find out a trend on the basis of Actual cash inflow Day wise .

5.C)Trend of Cash Inflow:62

Mon Mon Mon Mon Mon Mon Mon Mon

9 .3 2 9 8 .4 9 7 6 .6 5 0 6 .1 1 0 7 .5 0 0 8 .1 5 0 5 .4 8 0 5 .4 6 0

T ue T ue T ue T ue T ue T ue T ue T ue

4 .0 0 4 6 .4 1 6 4 .1 4 0 4 .7 4 0 4 .3 0 0 4 .6 5 0

W ed W ed W ed W ed W ed W ed W ed W ed

6 .7 9 2 7 .5 4 0 4 .6 7 4 4 .1 5 7 5 .5 8 0 4 .2 7 0 3 .1 3 0 5 .5 8 0

T hu T hu T hu T hu T hu T hu T hu T hu

11 8 0 .1 9 .2 0 1 4 .4 9 2 4 .8 2 9 4 .6 0 5 4 .8 4 0 4 .3 1 0 4 .8 7 0

Fri Fri Fri Fri Fri Fri Fri Fri

6 .7 6 1 6 .0 2 5 4 .1 9 0 6 .6 6 0 5 .1 7 0 5 .8 8 0 6 .4 2 0

St a St a St a St a St a St a St a St a

1 .1 7 6 1 .0 9 4 8 5 .1 9 4 .0 9 0 .8 1 .3 5 0 1 .2 1 0 1 .2 3 0

This data has been taken from the actual cash in flow on each day for the month of April-2009 and May-2009.From the above study I got a result that the Pre-paid executive should give the forecast on an average basis .The avg. for each day is as follow:Monday:- 62Mn. Tuesday:- 45Mn. Wednesday:- 55Mn. Thursday:44Mn. Friday:- 63Mn. Saturday:- 11Mn.

63

CHAPTER-6 CONCLUSION

64

Bharti Airtel is a the most revenue generating source of Bharti. So it is the responsibility of Airtel to Maximize its Profit. Airtel not only generate the income from Pre-Paid, Post-Paid , Lapu and Roaming But it also earn a the profit by investing this money for short term. So Airtel has to forecast the collection so that it can invest in such a manner that it will have to bear minimum interest loss. Because it is not easy to estimate that how many people will get there phone recharged and how many post paid customers will be paying the bill on the next day and on what via? There are various modes of bill payment , which is very convenient for the customers but it has become complicated for Airtel to forecast. different banks for different modes of the payment collection. Airtel has assigned

From the above study I have concluded that in the month of April2011 Airtel suffered interest loss of amount =

1,86031.86 Rs.

65

This is the interest loss only for the month of April 2011,and only from the five banks but Airtel president office handles nearly tow hundred banks and suffers the interest loss nearly on Eight hundred million (800,000,000) yearly. few observations are and resultants are as follow:-

There is not a proper communication between prepaid forecast Executive and Sales Manager of Airtel. There should be some follow up or trend to fore cast. One of the way for payment for Post-Paid is through cheque ,due to which a big Difference accrue as it is not decided that in how many days the cheque will clear.

The big deviation accrue due to payment through Credit card . Because Different Banks have different payment days .It is clear from the above study that the most deviation accrue in CITI Bank which collects the credit card payments. The cash clearing days for different Banks are as follow:ICICI- 3 business days HDFC-2 business days DB - 2 business days
66

UTI - 4 to 7 business days SBI - 2 to 3 business days PNB - 5 business days There is not proper audit of ARCs. the audit takes place once in a month.
In case of IUC and Roaming it is not certain that on what date the other telecom industries

will do the payment. due to this also Airtel has to bear a big deviation. There is a midway agency i.e. MACK (whose work is to flow the information from one telecom industry to another about the roaming collection) do not flow the information to the Airtel.

67

CHAPTER-7 RECOMMENDATIONS :-

68

After the research I have reached to following recommendations: There should be a proper information flow between prepaid forecast Executive and

Sales manager of Airtel. Sales Manager should send the right collections from all For pre-paid forecast the forecast should follow the follow-up as below:Monday:- 62Mn. Tuesday:- 45Mn. Wednesday:- 55Mn. Thursday:44Mn. Friday:- 63Mn. Saturday:- 11Mn.

sources.

The Pre-paid executive followed the above trend and interest loss have become 1/10 of previous trend. The cheque should be categorized in to 3 category:(i) High value (Which clears in 2 days) (ii) Local cheque (which clear on next day) (iii)Outstation (which clear in 3to 7 days) If the cheques will be categorized then it would be easy to forecast that how much cash would be collected on next day. As different customers have different banks credit card , hence There should be the fix

cash clearing time through the all credit cards, as per the law Or on the requirement of the company. There should be audit of the ARCs on weekly basis. There should be a proper follow up or the other telecom industries should inform in advance that on what date it is going for payment for IUC and Roaming. Mack should flow the information in the advance. So that it will be easy for Airtel to minimize the deviation.

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CHAPTER-8 REFERENCES

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Websites:

www.airtel.in www.google.com http://www.telecomindiadaily.in/tid_special_detail.php?TID=28

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CHAPTER-9 APPENDICES

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Daily Cash Forecast-Airtel:-

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Daily Actual Cash Flow Statement:-

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ABBREVIATIONS
ARC POS PSBC CAD DCR Airtel Relationship Center Payment Online System Pre Signed Bank Cheque Customer Accounting Department Daily collection Report

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