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A study on Analysis of Financial Statements of Bharti Airtel

HISTORY AND BACKGROUND OF THE COMPANY:Sunil Bharti Mittal founded the Bharti Group. In 1983, Sunil Mittal was 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 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 Sky cell 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 Bombay 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 Hexagon and entered Rajasthan. In 2005, Bharti extended its network to Andaman and Nicobar.2009; Airtel launched its first international mobile network in Sri Lanka. In 2010, Airtel began operating in Bangladesh. Today, Airtel is the largest cellular service provider in India and fifth largest in the world.

3.2 Type of Organizational Structure:The organizational structure that existed till recently concentrated on the hierarchy of the operations (not services) inside the company as a whole. The structure depicts the corresponding operation/region of different in-charges and hence it didn't hold anyone responsible for each of its services. So, the company found it better to restructure its organizational chart and it came into implementation from 1 August. The transformed organizational structure will have two distinct Customer Business Units (CBU) with clear
1|Page S. R. Luthra Institute Of Management

A study on Analysis of Financial Statements of Bharti Airtel

focus on B2C (Business to Customer) and B2B (Business to Business) segments. Bharti Airtel's B2C business unit will comprehensively service the retail consumers, homes and small offices, by combining the erstwhile business units Mobile, Telemedia, Digital TV, and other emerging businesses (like M-commerce, M-health, M-advertising etc.). The B2C organization will consist of Consumer Business and Market Operations.

3.3 BOARD OF DIRECTORS:Sunil Bharti Mittal Ajay Lal Chua Sock Koong Lord Evan Mervyn Davies N Kumar Pulak Prasad Rakesh Bharti Mittal Tan Yong Choo Manoj Kohli Akhil Gupta Craig Ehrlich Hui Weng Cheong Nikesh Arora Rajan Bharti Mittal Chairman and Managing Director Non Executive Director Non Executive Director Non Executive Director Non Executive Director Non Executive Director Non Executive Director Non Executive Director Joint Managing Director and CEO Non Executive Director Non Executive Director Non Executive Director Non Executive Director Non Executive Director

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A study on Analysis of Financial Statements of Bharti Airtel

Salim Ahmed Salim Tsun-Yan Hsieh

Non Executive Director Non Executive Director

3.4 AWARDS AND ACHIVEMENTS:Airtel has won the Most Preferred Cellular Service Provider Brand award at the CNBC Awaaz Consumer Awards in Mumbai. This is 6th year in a row that Airtel has won the award in this category. This year, the awards were based on an exhaustive consumer survey done by The Nielsen Company. Over 3,000 consumers, spanning 19 cities and 16 states in India, rated brands across different categories to choose brands which delivered true value for money. Bharti Airtel has received the prestigious Business world-FICCI-SEDF Corporate Social Responsibility Award 2009-2010. The FICCI Socio Economic Development Foundation (FICCI-SEDF) and Business world CSR award was instituted in 1999 to recognize exemplary responsible business practices by the Indian industry.

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A study on Analysis of Financial Statements of Bharti Airtel

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