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

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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

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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 COLLECTION…………………56

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1) DEUTSCHE BANK DEVIATION (ACTUALVs FORECAST)………………….A.A.....2) HDFC BANK DEVIATION INTEREST LOSS………………………………………….A.2) S....3......5..2.5..A.A....A.1) ICICI BANK DEVIATION (ACTUALVs FORECAST)………………………….........55 5..1.A.2) CITI BANK INTEREST LOSS……………………………………………………..1) CITI BANK DEVIATION (ACTUALVs FORECAST)………………………………………53 5...1) S.65 5..A.1) HDFC BANK DEVIATION (ACTUALVs FORECAST)………………………………….57 5...C.........C...………………51 5...2) DEUTSCHE BANK INTEREST LOSS………………………………………………………59 5......2) ICICI BANK INTEREST LOSS………………………………………………………………66 4 .2..3.4..63 5.LIST OF FIGURES 5..A..4.. BANK DEVIATION (ACTUALVs FORECAST)………………………………………49 5.1.. BANK INTEREST LOSS………………………………………………..61 5...A.

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CHAPTER 1 INTRODUCTION 6 .

The mobility division does not require for the working capital as it earns the cash in the advance from the distributers for Pre-Paid. figuring out the relevance of the project assigned. For this purpose I decided to choose the most successful company in the mobility sector i. 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 . The cash is obviously the most important current asset. 7 . 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. Hence I decided to study that How Airtel manage the cash on daily basis. formulating its objectives and finally deciding the key deliverables from the project. there will be coverage of the project description. From the study I found that there is a big Interest loss (opportunity cost) beard by the Airtel. BHARTI AIRTEL LTD. Insufficiency of cash at any stage may prevent a firm from discharging its liabilities or force it to sell its other assets immediately. extreme liquidity may take the firm to make uneconomic investments.In the Introduction part. and receive the payment from post-paid on the daily basis. On the other hand.e. BACKGROUND OF THE STUDY The current economic crisis is calling into question business model fundamentals and putting all companies under stress.

This in-depth study will be financial decision. invest the Daily cash collection for short term. In this recession Period every enterprise is focusing to maximize the profit . irrespective of how many books.2 NEED FOR STUDY No one can be a competent person in the absence of practical exposure. I observed that there is a big difference in between forecast Vs Actual cash collection.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. who target to collect the cash from Pre-paid.On the basis of this cash collection Airtel President Office (APO). this can be replicated to all other circles as well. To increase its market share continuously Airtel invest its daily earning for short term. The most important of all activities is managing the cash and keeping an eye on that and reducing them wherever possible. relevant for 8 . Hence there should be minimum Deviation between the Forecast and Actual cash collection. 1. this is done by the Banks for Airtel. The need for this study arises because each company want to maximize its revenue .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. The Study has been done for the Delhi circle. The firm’s efficiency depends on the strategy followed by a company 1. In order to become a perfect manager in near future I was also required to apply all of my learning in actual practice. Therefore I chose to learn how a company manages its cash on daily basis. theories he has gone through. The project will focus on finding the various reasons and there solutions for this Deviation. .1. Post paid and roaming .

5 PROJECT OBJECTIVES The study focuses on the cash inflow forecasting process of various modes and effect associated with them. Hence the focus area is to minimize the cash collection deviation. 9 . 1.  Less Interest loss.  To study interest loss incurred by Airtel  To minimize the cash collection deviation which will help company to minimize the Interest loss.  To examine the parameters or the way followed by Airtel to forecast the cash inflow. In the second chapter I will discuss about the conceptual support required for the understanding of the project.6 KEY DELIVERABLES The Key Deliverables from the project are-:  less deviation in between forecasted and actual cash flow. It will cover cash flow process with surplus and deficit conditions.1. Now after finalizing the objectives of the project and deciding the key deliverables expected from the project.

CHAPTER 2 ORGANIZATION INFORMATION 10 .

Now people can instantly talk to each other. people used to communicate through a trunk call with the operator. MMS. Now. TELECOMMUNICATION The word ‘Telecommunication’ was adapted from the French word. Additional features were added like SMS.1TELECOM INDUSTRY:Previously. Tata Teleservices. came the mobile phones. carrying mobile phones is more a fun and not only a talking device. and GPRS. Then. and can feel the presence. The growth started with the invention of a telephone on 10th March. Later. But.2. They used the conventional methods of sending pigeon with the message to the loved ones or sending a post card. 1876 by a great scientist Alexander Graham Bell. A receiver that receives the signal and converts it into the useful information. With this advent of first talking device people got connected to each other remotely. The wire lines phones were in full swings as more and more people were getting used to this technology. mobiles phones were very costly to afford as they had huge rental charges and also payment has to be made for received calls. It is a compound of the Greek prefix ‘Tele’ which means ‘far off’ and the Latin ‘communicate’ which means ‘to share’. Initially. 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. With the help of these mobile phones one can move around with lot of coverage area. can hear their voices. now Telecom Industry has shown a tremendous change.) 11 . 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. many companies evolved and offered many schemes which made the affordability of mobile phones cheaper.

first Indian company to provide comprehensive telecom services outside India and first private sector service provider to launch National Long Distance Services in India. expand the telecom network. and introduce new services to raise revenue for telecom development. Government of India became a corporation and was renamed Bharat Sanchar Nigam Limited (BSNL). Tamil Nadu. which handles the mobile services in 16 circles out of a total 23 circles across the country. Gujarat.• -Foreign invested companies (Hutchison-Essar. 1995 for promoting investments in telecommunications services.000 fixed line customers. Bharti has been a pioneering force in the telecom sector. first private basic telephone service provider in the country. national and international long distance services. Spice Communications) BSNL On October 1. covering mobile and fixed line telephony including broadband. 2000 the Department of Telecom Operations. fixed. Reliance Infocomm offers a complete range of telecom services. data. Bharti’s operations are broadly handled by two companies: the Mobility group. New Delhi. and the Infotel group. Escotel. data services and a wide range of value added services and applications. Idea Cellular.86 million are mobile and 588. broadband. BSNL is now India’s leading Telecommunications Company and the largest public sector undertaking. of which 5. being the first mobile service in Delhi. MTNL MTNL was set up on 1st April 1986 by the Government of India to upgrade the quality of telecom services. which has 93 companies. which handles the fixed line. using CDMA technology in six circles: Maharashtra (including Mumbai).3 million shareholders.000 subscribers. and satellite-based services. domestic long distance and international services. Bharti Tele-Ventures. TATA TELESERVICES Tata Teleservices is a part of the $12 billion Tata Group. over 200. The company has a total customer base of 6. Bharti Tele-Ventures Limited was incorporated on July 7. BPL Mobile. It has over 800. RELIANCE INFOCOMM It is also an integrated telecom service provider with licenses for mobile.45 million. 12 . BHARTI Established in 1985. Andhra Pradesh. and Karnataka.000 employees and more than 2. It has a network of over 45 million lines covering 5000 towns with over 35 million telephone connections. Tata Teleservices provides basic (fixed line services).

2. manufacturing of telephone equipment. The group is also entering the fast-growing retail business very shortly. From introducing push-button telephones into India. In 1983. This first-mover advantage allowed Sunil Mittal to expand his manufacturing capacity 13 . to becoming the largest manufacturer of telecom handsets (outside China) to founding India's largest integrated private telecom operator. In 1986. horticulture exports.2BHARTI GROUP Bharti Enterprises is an Indian conglomerate with interests in diverse fields including telecommunication services. realty. BPO. 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. BPO. Bharti has created a significant position for itself in the global telecommunications sector. etc. Bharti Enterprises' dynamic diversification has continued with the company venturing into telecom software development. 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. horticulture exports. realty and insurance. Sunil Bharti Mittal incorporated Bharti Telecom Limited (BTL) and his company became the first in India to offer push-button telephones. insurance. . Founder of Bharti Group is Sunil Mittal. Sunil Mittal entered into an agreement with Germany's Siemens to manufacture the company's push-button telephone models for the Indian market. Bharti Enterprises has created a vantage position for itself in the global telecommunications sector. establishing the basis of Bharti Enterprises.Bharti Enterprises has successfully focused its strategy on telecom while spanning diverse fields of business. software.

In 2004. connectivity to Internet Services. Cordless Phones. The company's product range include Basic Telephones. 2. Sunil Mittal won a bid to build a cellular phone network in Delhi. and Set Top Boxes. Bharti Enterprises went public in 2002. Maritime Telecom Services (INMARSAT) and International Collect and Credit Card calling. cellular service was extended to Himachal Pradesh.elsewhere in the telecommunications market. the cellular phone operations were rebranded under the single AirTel brand. In 1996. under the brand 'Airtel. Sunil Mittal incorporated the cellular operations as Bharti Tele-Ventures and launched service in Delhi. In 2003. DECT 1.8 GHz Phones. Airtel is the laegest cellular service provider in India. In 2000. in Seychelles. Sunil Mittal had also launched the country's first fax machines and its first cordless telephones. By the early 1990s. In 1999. Bharti extended its network to Andaman and Nicobar. In 2005. In 1992. International Roaming. In 1995. Fax and Data.4 GHz Digital Cordless Phones. Telecom Seychelles Ltd: Telecom Seychelles Ltd provides comprehensive telecom services including GSM Cellular. Bharti Teletech Ltd. and extended cellular operations to Karnataka and Andhra Pradesh.: 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. and the company was listed on Mumbai Stock Exchange and National Stock Exchange of India. The company provides GSM mobile services across India in 23 telecom circles and broadband & telephone services in 90 cities.1COMPANIES OF BHARTI ENTERPRISES:Bharti Airtel: Bharti Airtel is India's leading provider of telecommunications services.2. the company acquired control of Spice Cell in Calcutta. Bharti acquired control of Hexacom and entered Rajasthan. Caller ID Boxes. Caller ID Phones. PSTN (Fixed Lines). Bharti Enterprises acquired control of JT Holdings. Bharti acquired control of Skycell Communications. Today. 2. Bharti Telesoft Ltd: Bharti Telesoft Ltd provides value added services and solutions to wireless 14 . In 2001. in Chennai.

an investment company of the Rothschild family. is a 100% subsidiary of Bharti Enterprises. and has a customer base of 150 million across 5 continents. application processing. 15 . marketing support. The company offers offer the entire spectrum of front-to-back-office business processes ranging from voice and non-voice customer support.. world's leading full-service provider of business process outsourcing and Bharti TeleTech Ltd. asset management.).) to global customers. Bharti Retail is planning to launch its retail outlets in multiple consumer friendly formats in several cities across India. claims processing. account maintenance. document management etc. FieldFresh Foods Pvt Ltd: FieldFresh Foods (P) Ltd is an equal partnership venture between Bharti Enterprises and ELRo Holdings India Ltd. Inc. Bharti Retail Pvt Ltd: Bharti Retail Pvt Ltd. web sales and marketing etc. back office administration (including credit and collections. progressive farming techniques & identification and adoption of appropriate technologies. sales and marketing (including database marketing. The company provides premium quality fresh produce to the markets worldwide and promotes world class standards for agricultural practices.and wireline carriers worldwide. Bharti Telesoft Ltd ha deployed products and solutions in 25 countries to over 100 network. TeleTech Services (India) Ltd: TeleTech Services (India) Ltd is a joint venture between TeleTech Holdings.

000 are fixed line customers. The businesses at Bharti Airtel have been structured into three individual strategic business units (SBU’s) . which handles the mobile services in 16 circles out of a total 23 circles across the country. Bharti Tele-Ventures Limited was incorporated on July 7. Bharti’s operations are broadly handled by two companies: the Mobility group. of which 5. 16 . broadband.86 million are mobile and 588.45 million. 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.3.3BHARTI AIRTEL LIMITED 2. while the Infotel business group provides telephone services and internet access in 15 circles. which handles the fixed line. The company implements its mobile. The mobility business provides GSM mobile services in all 23 telecommunications circles in India. Airtel digital TV. It has over 21 million satisfied customers. data. 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. and telephone services with national and international long distance services. Airtel telemedia services & Enterprise services.Mobile services. being the first mobile service in Delhi.1HISTORY:Established in 1985. broadband. 1995 for promoting investments in telecommunications services. and satellite-based services.2. Bharti has been a pioneering force in the telecom sector. The company has a total customer base of 6. and the Infotel group.

51 100. COMPANY MILLION SUBSCRIBERSTOTAL MARKET SHARE 0 0 ( IN PERCENTAGE) Bharti Airtel 100.10 1.71 1.57 16.37 RELIANCE 59.80 Aircel 15.28 12.in/tid_special_detail.00 (Source: http://www.telecomindiadaily.31 Tata Teleservice 31.81 9.3.php?TID=28) 17 .38 4.53 Total 352.16 Spice Telecom 3.00 28.88 0.85 IDEA Cellular 32.67 BSNL 45.36 Mtna 4.76 16.2.2MARKET SHARE:The table below shows the market share of telecom companies in May-2011 in India.05 BPL 1.90 Voda fone 58.02 8.

3.3BHARTI AIRTEL-ORGANIZATION STRUCTURE :- 18 .2.

words to every feeling.2. The service helps to give. based on the number of customers.4BUSINESS DIVISIONS:MOBILE. There are two types of customers pre-paid and post-paid. The exciting features that can be enjoyed with an Airtel postpaid connection: 19 . 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.3.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. PREPAID Airtel pre-paid provides limitless possibilities for customers. an expression to every emotion.

• • • • • • • Easy billing Easy payment options anytime. ENTERPRISE SERVICES Enterprise services provides a broad portfolio of services to large Enterprise and Carrier customers. 20 . AIRTEL TELEMEDIA SERVICES Airtel offers high speed broadband internet with a best in class network. Credit limit Strong network coverage Long distance calling facility Widest roaming (National and International) It provides the GPRS facility. With Landline services in 94 cities its helps to stay in touch with friends & family and the world. anywhere. This division comprises of the Carrier and Corporate business unit. digital TV in more than 150 cities. It provides world class entertainment with India’s best Direct to Home (DTH) service. Enterprise services is regarded as the trusted communications partner.

5 THE BRAND Airtel was born free. A spirit charged with energy. UK and Canada with its call home service. As India's leading telecommunications company Airtel brand has played the role as a major catalyst in India's reforms. in just ten years of operations. rose to the pinnacle to achievement and continues to lead. Airtel. Telemedia services.3. 21 . to connecting India's leading 1000+ corporates. a force unleashed into the market with a relentless and unwavering determination to succeed. Today Airtel touch peoples lives with its Mobile services. contributing to its economic resurgence. Airtel also connect Indians living in USA. creativity and a team driven “to seize the day” with an ambition to become the most globally admired telecom service.2.

Experience a world class service and cutting edge technology with Airtel landline and its feature rich Wireless fixed line.3. Explore the world with its roaming services and get absolutely cool offers with Airtel Live.6AIRTEL SERVCES Experience total cost control. 22 .2. calling is made more fun and convenient with services and entertainment on Airtel. What’s more. Airtel welcomes us to the world of telephony services for our home. no rentals and easy billing with its postpaid and prepaid services.

requirement and suitability. fun.0 depending upon the usage patterns. It is fast. We can choose from BlackBerry and Windows Mobile 5. Airtel calling card services connect us to the world from India and allow a better way to call back India. BlackBerry from Airtel is an 'always connected' wireless solution providing easy and secure access to our email and data. India's most preferred high-speed Internet service. Want to access information on our mobile? Airtel brings us Email on the go. 23 .Airtel Broadband Services. redefines our Internet experience. convenient and cost effective.

our TV viewing experience change forever with digital TV from Airtel! 24 . From DVD quality picture and sound. Discover the magical experience of digital entertainment with Airtel. Email. the best and widest variety of channels and programmes to the best on-demand content on Airtel Live. we have the freedom to access the Internet anytime. It enables Internet.With Airtel’s Wireless Internet. anywhere across India. and Office applications with real-time secure VPN access to corporate applications whilst on the move.

Airtel will stick through thick and thin. 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. Airtel’s solutions are tailored to fit your particular needs. working for them to meet the challenges of growth. Beyond India. Airtel’s people are committed to helping you succeed. Airtel offer a full suite of business communication services across data.3. 25 . voice and managed services.7Airtel Business Services:- Airtel is proud to be the trusted communications partner to India’s leading organisations.2. Across India.

dual PoPs or higher uptimes. they work with us to give us the best. Internet Access Our browsing needs are varied. Data and IP Solutions Airtel. 26 .3. It provide us with a host of customised services that fit our particular needs. adapted or migrated as your business changes. better latencies to other countries. From keeping our mission critical applications running to managing the flow of information across the globe.2. Airtel services will give us peace of mind and more reasons to expand further. so Airtel will never suggest a one-sizefits-all system. DataTransport Solution Whether we need site-to-site connectivity or WAN integration with optical network that provides digital transmission. Airtel will work with you to identify your specific needs. Airtel’s comprehensive suite of data technologies and infrastructure support does it all for us.8WHAT AIRTEL OFFERS:- Airtel know that the needs of every business are different. need based Internet capabilities. then tailor an effective solution that can be scaled. Be it managing our Internet.s portfolio of Data and IP services helps us do business at ease.

This can be used as a part of TDM or IP circuits. Managed Network Solutions Make our network efficient. It offer endto-end comprehensive solutions for network connectivity. Collaborative Services Now let technology and innovation bring about a paradigm change in our enterprise through increased revenue generation and efficiency. Satellite Services Airtel Satellite services provide reliable network connectivity to run our mission critical applications. Its collaborative services empower our business to automate response from sales team. audio and video applications on-demand suiting our transmission requirements. The solution supports voice. This service is available both in India and abroad. thus giving us flexibility through customised solutions and increased coverage. scalable and reliable with its Managed Network solutions.Access Services Airtel’s 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. track our fleet and enables call centres to save time and effort. Online Desktop 27 .

we can stay connected wherever we are and continue to perform all the tasks using our handheld device. Fixed Line and Broadband Our business needs to be in touch with its customers . back up our data in a safe and secure location. Get the latest and original software on a monthly ent. Enterprise VAS With Airtel portfolio of Enterprise value added services. our business. proactively respond to the evolving customer needs and extend a uniform customer experience. without having to buy anything upfront. Airtel voice solutions help us communicate and collaborate within and beyond our organization. Voice Solutions Businesses need to invest in resources in a multimodal communication environment to offer seamless customer experience. Not only that. Access.Now. helping us meet the demands of growth. edit and share this data from anywhere in the world. we create a price plan that works for our business along with a range of features or services to meet our needs. Mobility Solutions Airtel offer us mobile solutions that are developed with one thing in mind. Whether we are a single or a large operator. Conferencing 28 .

Meet face to face virtually. giving us the benefit of real meeting. this service can be used to share documents. With Airtel’s Conferencing services. Airtel Video conference service provides a virtual meeting environment. Now we can stay connected with your colleagues and business partners without even being there. Besides the audio and visual transmission of meeting activities. we can now change the office space forever. we will no more be constrained by geographies or time zones. computer-displayed information. 29 . and whiteboards. Video Conference Service Now we and our colleagues at geographically distant locations can interact in real-time with fullmotion video and audio. This service provides us the convenience of holding conversations with our team members at different locations through a phone. Audio Conference Service With Airtel Audio conference service.

” LEARNING: “We will continuously improve our services – innovatively and expeditiously. Our size gives us the unique ability to provide fast growth and high responsibility early in one’s career as well as multiple avenues to reach the top.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.” 30 . 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.” COMMUNITY: “We will be transparent and sensitive in our dealings with all stakeholders.” OPPORTUNITIES: “Imagine having the resources to influence tomorrow’s reality – today. At Airtel we are seeking people whose ideas can make a difference.

It incorporates two solid. red rectangular forms whose counter form creates an open doorway. always ‘In-touch’ and on customer’s side. 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. The logo is a reflection of the company’s identity – a confident symbol of a brand that is always ahead of the rest. The case lettering with its capital ‘A’ reinforces our leadership position.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. 31 . The red dot cues in the company’s focus on innovation.

• BHARTI announces agreement with VODAFONE marking the entry of the World’s Largest Telecom Operator into India.2. • First operator to revolutionaries the concept of retailing with the inauguration of Airtel Connect (exclusive showrooms) in 1995. UK etc with 284 partners networks. Enjoying the mobile roaming across 38 partners network & above 700 cities moreover roam across international destinations in 119 countries including USA. • First to provide roaming facility in USA. • First to introduce push button phone in India • First to expand its network with the installation for second mobile switching center in April. 32 .4 ACHIEVEMENTS • First to launch Cellular Service on November 1995. Canada . 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.

700 crores (approx around 10/5 in Bharti Tele-Ventures Ltd UDS 1. 600 million people.Centers of innovation to Incubate Pioneering Mobile Applications.) to acquire • Bharti Enterprises. • Airtel Launches future factory. SingTel and Vodafone to take Bhati Tele-ventures Ltd. • Bharti establishes its supremacy in the Indian Telecom market. Only India’s leading mobile services offers you the truly ‘freedom-packed ‘prepaid! • It is also the first company to export its products to the USA. To unassailable Leadership position in India.SingTel and now world’s best Vodafone. having attracted Asia’s best. • • The Largest single foreign investment ever in the history of India The largest investment in the Indian Telecom Sector. • Vodafone to invest approximately Rs. 6.• Bharti Enterprise and AXA Asia Pacific Holdings Limited announce Partnership for a life insurance joint venture in India. • 16 states.5 bn. 33 . BAHRTI announces agreement with VODAFONE marking the entry of the World’s Largest Telecom Operator into India.

TV India Business Leader Award for the Outstanding Company of the year 2007.B Pant University 34 . • 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.• Bharti set to gain global leadership in the telecom sector. Sunil Bharti Mittal conferred Degree of Doctor of Science by G. • Bharti Enterprise continues to hold shareholding and management control in Bharti TeleVentures. AWARDS FOR THE YEAR 2007-2008 • Bharti Airtel has won the CNBC.

Post-Paid. It means the cash through various sources like Pre-paid. On the basis of there reports banks invest this money on behalf of Airtel for short term.CHAPTER-3 LITERATURE REVIEW/ CONCEPTUAL SUPPORT 3.1 CASH COLLECTION:In The respective Airtel Mobility Head Office cash collection is forecasted. Lapu ( e-recharge) and Roaming is estimated for the next day. And the interest is 35 . 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). And this forecasted value is send to the APO (Airtel President Office) at 3:30pm.

DEUTSCHE Bank and ICICI Bank. then Actual cash is send to the respective Bank) This difference is called Deviation. 3. Due to this deviation Airtel bear Interest Loss.given to Airtel by banks for that money. These Banks are SBC Bank. 36 DEVIATION 5 Million Rs. ACTUAL 70 Million Rs.1 FROM COLLECTION POINT OF VIEW:Under this those bank comes in which the collected cash is kept. CITI Bank. This interest loss can be understood under two prospective(I)From COLLECTION point of view . (II)From PAYMENT point of view. (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.there occur the difference between the forecasted amount of cash and the actual amount of cash received.1. Next day the actual cash is collected at 2:00pm . SURPLUS . For Example:- FORCASTED 65 Million Rs.

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 Bank’s 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 it’s 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. The various modes of payment are cash. 3. Customer uses the number for whole month and then bill statement in the form of printed paper is delivered to the post-paid customer’s residence at the end of the month through the medium of registered post. these are: 1) BY PICK UP AGENCY (SECURTANS) 2) BY PSBC (PRE-SIGNED BLANK CHEQUES) SYSTEM Currently there are 62 ARC’s in various locations of Delhi and NCR regions. Then. He then buys a number and becomes customer of Airtel. for this he goes to the Airtel Relationship Centre (ARC) and pay their bill by cash.” A customer goes to the Airtel Resource Centre. credit card. These ARC’s receives the cash on behalf of the company by two modes. 40 . The customer can pay his bill in whichever way he is convenient.3DIFFERENT MODES OF PAYMENT A) CASH Customer can pay their post-paid bills by cash. interacts with the executive and selects a post-paid plan. cheque. the customer pays off the whole amount of the bill before due date of the bill. electronic transfer etc. These ARC’s are collecting cash from the subscriber on behalf of the company. Every mode has its own well defined process and company incurs certain costs associated with it.

Collection team deposits the cash collected. CAD (Customer Accounting Department) has the pre-signed blank cheques of ARC’s. . to the POS report generated the CAD prepares the cheques as well as the deposit slips and deposits these cheques into the bank. CAD (Customer Accounting Department) generates the POS report. on (day2). This report is prepared on daily basis. the bank prepares the MIS Statement which it sends to the company. 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. ACCOUNTING PROCESS A entry is passed with crediting the amount as per the DCR (Daily Collection Report) prepared by the ARC. Cash collection team collects cash from ARC the next day on (day1). Similarly. Now. The PSBC system is not in use by the company. so the company decided to discard this system. the company uses 41 Customer pays cash to ARC (Airtel Relationship Center) for their post. the collection which ARC’s receives. The amount which is debited is the debit notes prepared by the CAD according to the POS reports in the oracle. Further. Finance department maintains a daily ARC wise tracker through which outstanding & balance to be recovered can be analyzed. According. For. the agents appointed by the ICICI deposits in the ICICI bank. • • • • . 2) PSBC SYSTEM In PSBC. The company was incurring huge amount of costs in this system. The deposit slips are kept with the CAD for reference.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. The bank makes the entry and credit’s the amount in the Airtel’s bank account.paid bill payment or for the security deposit (day 0). in airtel bank account the next day that is.

ICICI bank appoints the agent. Payments by cards are directly 42 . 1) PROCESS FOR CARDS PAYMENT Airtel has four cards swapping collaborations with the banks. such as: 1) By visiting the ARC and swapping the credit cards 2) By visiting the airtel world and pay online by credit cards. The companies have two types of active agents working for the company. and CITI. The Secutrans deposits the cash in Standard Chartered Bank.only PICK UP AGENCY system. for this he can pay by different modes. AMEX. The Secutrans and agents appointed by the ICICI bank. who picks up the cash directly from the ARC’s. B) CREDIT CARDS Customers can pay their post-paid bills via credit cards also. via HDFC. 3) By directly transferring the amount in airtel bank account. ICICI. 4) By choosing the facility of ECS and SI 5) By non-conventional mode. Customer visits ARC and pays their bills by cards.

CAD prepares the POS report and provides information to the finance department. CITI banks. The company has tie-up with three banks. The information of MIS is provided by the CAD to the finance department. who in turn checks the credit in the bank and passes the entry: Bank account ……. After the registration.Dr. ACCOUNTING PROCESS All the banks which receive the amount through this mode prepare the MIS and sent to the CAD. Customer has to register his airtel mobile number for accessing his account on the site.com). ICICI. To Subscriber’s account 2) PAYMENT ON AIRTEL WORLD Customer can pay their post-paid bills by visiting the airtel world website (www. All these banks provide the MIS statement for the swapping of cards on the daily basis.received in airtel bank account as there is direct tie with the card agency after deducting their commission. To Subscribers account 43 . the customer can access his account on the site. via HDFC. After logging in site. customer can pay their bills via debit and credit cards.airtel. who checks the credit in the bank and passes the entry: Bank account ……Dr. The CAD consolidates all the MIS from all banks and prepares the POS report.

bank prepares the MIS statement and forwards to the CAD. When the amount is credited in the Airtel’s bank account. Bank account………Dr. Here. The bank prepares the MIS for the same and sends to the company. To subscribers account 4) ECS/SI FACILITY Payment through this mode is made on prior instructions received by the customers. The finance department checks the credit in the bank and passes the entry: Bank account ……. After that. The finance checks the credit in the bank and passes the entry. ECS/SI database is prepared for all those customers who give the instructions.. and cheques. To Subscribers account 5) NON-CONVENTIONAL MODE In this process of payment.Dr. the customer makes the payment of their post-paid bills by other modes than cash. The bank 44 . The payment of bills is deducted from the account balance of the customers and the record is maintained by the bank. the customer visits his own bank site and clicks on the option of payment of mobile bill online. the online payment window opens asking for the details of the customers that is. credit cards.3) DIRECT TRANSFER IN BANK ACCOUNT Customer can also pay their post-paid bills by directly transferring the amount to the Airtel’s bank account. The database file is sent to the bank in which customers holds the account. the ID and the password. CAD prepares the POS report and provides information to the finance department. CAD prepares the POS report and passes the information to the finance.

which is same as the MIS statement. the bank person checks that all the details on the cheque are correct.prepares the MIS and provides to the CAD. the same bank provides the cheque bouncing MIS on the daily basis to CAD. The finance checks the credit in the bank and passes the entry. CAD prepares the POS report for the same and passes to the finance. The finance department after receiving the information passes the entry Subscribers account………. 45 . The finance checks the amount in the bank and passes the entry. CAD reverses all the bounce cheques in the POS report and all the details relating to the cheque bounce are intimated to finance. Bank account ……. Bank excludes all those cheques which have incomplete details.Dr. CAD prepares the POS report and passes on the information to the finance. To Subscribers account CHEQUE BOUNCING PROCESS The cheques through which the customer makes the payment are sometimes bounced.. Bank prepares the LBX file for the cheque for the bill payment. Bank account……. Airtel has already provided data base for the post-paid subscriber to the bank. Bank passes on the LBX file to the company. For.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.Dr. Bank clears all drop boxes on daily basis. While preparing the LBX file.

To Bank account CHAPTER -4 RESEARCH METHODOLOGY 46 .

a methodology has to be prepared for how to complete the project successfully.  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.1)RESEARCH DESIGN The research Designs adopted in this study are Exploratory and Causal. 4. 47 .Now after going through the conceptual support required for understanding the project.

Step 2-: The process of forecasting and the process of collection for each bank was described by my mentor .After that I calculated the deviation and interest loss for the month of May 2009. Step3:. Step 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.4.After that I calculated the deviation and the interest loss bank wise for April 2011 . 48 ..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. 4. Step 5:. 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.I Understood the approach adopted by the employee for forecasting the cash inflow via various modes. Secondary Data has been collected from the company.

Step 6-: Then I found out the trend and the reasons behind this deviation. The project is conducted over the Delhi circle pertaining to Mobility division of Bharti Airtel Ltd. Deviation between Forecasted Vs Actual is minimized. There are three divisions of Bharti Airtel Ltd. 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. CHAPTER-5 DATA ANALYSIS 49 . Cyber Park.4)LOCALE OF THE PROJECT There are 23 Circle Offices of Bharti Airtel across India and one Corporate Office located in Gurgaon. Telemedia services and Enterprise services. 4. Mobile services.

99 1.Mn.32 2.71) 0.61 1.72 4. Actual 4.5.30 2.90 1.35 (0.67 7.30 1.71 0.40 2.40 Deviation 2.40 2.32 1.11 50 Rs.19 (0.30 2.80 2.1) 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.23 2.A.65 1.59 2.92 (0.80 2.63) 5. 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 1.43 0.29) .

25% /365*1000000.76 2.44) (0.31) (0.1)- 5.1.40 2.17 18 19 20 21 22 23 24 25 26 27 28 29 30 =3.D*10.60 2.20 1.51) (0.84) (0.23) 0.04 1.10) 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<0.17 2.86 2.2) 51 .487 Fri Sat Sun Mon Tue Wed Thu Fri Sat Sun Mon Tue Wed Thu 2.1.53 2.54 (0.05 1.15) (0.30 2.30 2.76 1.84 1.46) (0.A.89 2.30 1.40 2.30 2.40 2.98 1.80 2.50 2. D*6% /365* 1000000)) (D represents Deviation) GRAPHICAL EVALUATION:5.42) (0.79 1.A.20 (0.20 2.27) (0.64) (0.

00 65. On the particular day.72 (9. Deviation 36.2)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. Deviation .00 8.00 75.00 80.368 2.18 9.39 69.506 2.379 - 52 .21 19.Mn.00 100. 5. hence Airtel had interest loss of = 879 Rs.79) (5.A.72 90.00 25.16 92.947 1.037 776 3.00 Actual 101.889 2.04 89.47 - Rs. Interest 5.39 4.From the graph it is clear that on 8th April there occurred the max.96) 14.47 - Rs.16 12.18 17.

35) 199 6.00 65.783 1.00 65.04 61.2.85) 0.00 65.916 6.42 66.60 40.00 74.00 65.17 40.00 65.89 62.549 1.2.11) (2.95) (0.15 65.00 65.2)- 53 .10 61.04 47.96) (17. D*6% /365* 1000000)) 74.50% /365*1000000.059 (D represents Deviation) GRAPHICAL EVALUATION:5.54) (19.46 45.60 (24.00 65.878 9.00 10.71 (1.36) (22.96) (3.00 65.83) (24.D*14.50 49.1)- 5.A.A.406 7.58) 1.00 65.50) (15.71 8.65 (0.64 42.15 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 75.673 Total Interest Loss = For CITI Bank interest loss formula is=ABS (IF(D<0.00 10.90) (3.00 65.189 281 735 99 9.172 381 1.896 8.00 65.05 9.

60 5. 6th. 5.From the graph it is clear that on 2nd.32 Rs. 21st.00 1. 11th.A.00 1.25) 5.21 1.32 Rs.09 4.3) 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 1.23 17. 27th.589 Rs.00 1.24 0. hence Airtel had suffered interest loss of = 71.09 3.00 1.Mn.94 13. 29thand on 30th April there occurred the max. 22nd. Deviation 3. 28th.86 3. Interest 533 0 92 0 860 0 2645 592 0 856 0 155 0 2114 546 54 .00 1. Deviation .24 (0.00 Actual 4.94 12.00 1. 4th .60 6. 13th.00 1.23 16. 23rd.86 4.21 0. 24th.75 6. On the particular days. 16th.

17 2.00 1.2)- 55 .43 16.00 58.003 For DEUTSCHE Bank interest loss formula is=ABS (IF(D<0.27 (0.00 1.31 0.50 4.23) 23.50 5.66 (0.00 1.00 1.00 1.31 1.00 1.00 1.00 1.D*13.3.00 1.73) (0.A.14 1.A.1)- 5.85 1.27 0.83) 1.78 9478 270 0 85 3822 516 82 728 2681 0 44 307 304 293 Total Interest Loss = 27.85 2.14 0.17 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. D*6% /365* 1000000)) (D represents Deviation) GRAPHICAL EVALUATION:5.78 57.43 17.66 0.5% /365*1000000.3.25 3.00 1.25 4.00 1.27 0.77 24.

66 (6.4)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 7.19 (2.00 7.00 7. Deviation 29.36 3.70) Rs .A.79 7.71 7.00 7.20) (3.00 15.80 11.30 20. Deviation . 17th. 15th.00 7.66 0. Interest 0 9597 0 376 0 260 0 217 1039 0 927 0 526 0 561 773 . On the particular days.00 7.00 7.64) (3. 25thApril there occurred the max. 5.19 4.41) (4. Mn.29) 0.From the graph it is clear that on 8th . 21st.89 15.00 56 Actual 36.79 0.32) (5. hence Airtel had suffered interest loss of = 20740 Rs.68 1.30 Rs.

4.00 16.70 17.047 For CITI Bank interest loss formula is=ABS (IF(D<0.00 34.30 1.2)- 57 .12 26.03 1.90 0.10 13.4.00 1.A.27 13.D*6% /365*1000000.11) (6.01 7.00 7.50 7.05 (20.15) 893 526 0 28 1414 967 6263 3306 1146 0 957 2390 4530 353 Total Interest Loss = 37.30 17.05 13.A.33 11.00 7.88) 19.17) 4.18 23. D*12% /365* 1000000)) (D represents Deviation) GRAPHICAL EVALUATION:5.30 (5.97) (5.82) 7.43) 1.00 7.1)- 5.00 7.78 (2.78 4.37 26.57 3.00 1.85 (5.17 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 7.60 (0.

24th .00 35.30) (0.00 35.00 30.66 57.00 40.689 592 5.63) (14.25th . On the particular days.18 25.57 Rs.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 35.23rd .217 . Deviation 4.34) 22.18 (4.9th .29th April there occurred the max.122 3.00 58 Actual 39.00 30. hence Airtel had suffered interest loss of = 29684 Rs. Rs.28th .00 35.60) 19. Mn.57 Interest 687 1. Deviation .43) (8.191 156 3.00 35.From the graph it is clear that on 2nd.44 33.40 54.575 3. 5. 21st.70 29.A.57 26.37 25.44 (1.

00 29.86 Thu Fri Sat Sun Mon Tue Wed Thu Fri Sat Sun Mon Tue Wed Thu 35.00 30.22) (6.78) 4.5.22 39.81 19.00 32.2)59 .78 36.77) 4.1)- 5.425 5.45 3.25% /365*1000000.40) 1.37 24.16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 44.D*13.23 (12.91 29.A.794 2.49 13.00 32.19) (15.00 22.00 35.434.49 43.11 34.00 35.00 30.00 35.33 25.A.00 35.45 38.91 (5.00 35. D*6% /365* 1000000)) (D represents Deviation) GRAPHICAL EVALUATION:5.00 35.098 738 2.169 2.96) 13.211 621 182 229 3.323 314 2.63) (10.33 (3.78 1.78 25.910 Total Interest Loss = For ICICI Bank interest loss formula is=ABS (IF(D<0.04 43.11 (0.60 33.191 1.5.00 35.

6th. 20th .18th . TOTAL INTEREST LOSS BEARED BY AIRTEL IN THE MONTH OF APRIL= = ( 3. 25th and on 30th April there occurred the max.15th .227 Rs.From the graph it is clear that on 4th . hence Airtel had suffered interest loss of = 37.059+ 27003+ 37047+ 44. 5. 16th.487 + 74.17th .B)COMAPARATIVE STUDY OF INTEREST LOSS BANK WISE FOR THE MONTH OF APRIL AND MAY:- 60 . 23rd. 13th.434) =1. On the particular days. 9th.86031 Rs. Deviation . 21st.

8 5 6 .2 0 3 .2 3 .1 Ga dT t l r n oa My a R wL b ls o ae Sn u 0 Mn o 5 .3 0 0 .2 8 .9 5 5 .3 2 9 1 .1 1 0 .7 1 .4 0 1 .4 0 0 .5 0 2 .9 0 2 .4 Wd e 0 0 .3 Tu h 0 .9 5 St a 5 0 .2 0 4 .9 1 5 .9 9 6 .3 ( la k b n) (b n ) la k The yellow box indicate major deviations 61 .5 Te u 0 0 .9 1 Tu h 2 .5 Wd e 0 0 4 .8 1 2 .7 2 1 .6 8 .4 4 1 .6 3 .6 2 .8 9 3 (b n ) la k Tu h 9 9 .8 7 3 .7 St a 0 0 .9 1 .9 St a 0 6 .5 4 2 .2 7 .9 1 .5 6 .2 0 0 .4 0 0 .7 1 .3 4 5 3 .6 0 1 .7 Fi r 0 0 5 .5 2 .3 7 6 1 .4 4 7 Te u 0 3 4 .7 4 Wd e 3 .7 2 5 .9 4 6 Wd e 0 .4 St a 0 9 .1 6 8 Fi r 0 1 1 .2 0 0 .2 Fi r 0 0 .1 0 0 .5 1 .5 5 8 2 .9 0 0 .3 0 2 .7 3 Fi r 1 .3 0 0 .5 6 .1 0 0 .1 0 7 .3 0 0 .3 0 0 .5 Ga dT t l r n oa My a R wL b ls o ae Sn u Mn o 0 0 .2 0 1 .3 0 3 .1 0 0 .1 2 1 2 .1 0 2 .2 0 2 .1 0 Te u 6 .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 .4 0 4 .4 0 4 .3 0 2 .6 2 .2 3 .1 0 9 .7 Tu h 0 0 .6 6 .S BN C A K Ar pil R wL b ls o ae Sn u 0 Mn o 0 3 .2 0 0 .6 Te u 0 0 6 .

7 1 1 .5 6 Te u Te u 0 .7 6 .2 3 St a 1 .6 Te u 3 6 0 Te u 03 .2 Ga dT t l r n oa 7 . In HDFC Bank the major deviation occurred on Monday.6 0 .1 1 .2 15 . i.7 1 2 .4 1 .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 .6 8 Tu h Tu h 25 .7 1 34 . 5.2 St a 03 . But as for as CITI BANK is concern mainly deviation has been occurred on Tuesday.6 1 03 .8 1 .6 77 .7 5 1 .1 99 Fi r Fi r 0 .5 2 Te u Te u 0 3 .9 53 .1 0 4 .9 58 .1 01 1 .9 3 .8 5 St a 3 .5 1 .4 1 .9 0 Wd e 06 .2 Wd e 5 .7 2 .6 09 .5 1 .8 6 Tu h Tu h 48 .3 61 0 .2 Wd e 8 . after 12th .9 62 .6 3 .2 35 1 .7 07 2 .2 53 .7 6 St a 1 .2 3 .6 St a 29 .3 1 .7 5 .6 1 .8 1 .4 2 52 .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 .1 38 .5 97 1 .8 Wd e 34 .6 76 1 .2 6 .4 6 .4 (b n ) la k 3 .8 1 . Tuesday . But In ICICI Bank there was no trend In this bank both months gave different figures.0 95 3 . Thursday and on Wednesday.6 2 60 .6 1 .1 1 .7 0 51 .8 1 .7 8 3 .2 1 .8 0 .C)Trend of Cash Inflow:62 .2 2 .5 58 .2 1 .6 2 .9 4 .2 4 .0 69 1 .2 04 . Hence I decided to find out a trend on the basis of Actual cash inflow Day wise .9 7 Wd e 03 .5 67 .7 1 .6 2 .2 5 .3 43 .8 1 . But the one thing I got was the Major Deviations occurred after 2 nd half of each month.8 26 0 .6 1 .5 80 .6 Fi r Fi r 1 .3 4 .1 5 .4 24 1 .4 6 .2 1 .5 0 3 .4 St a 44 .3 2 .2 32 .8 2 ( la k b n) From the above study it is clear that in case of SCB there occur very less deviation.9 56 1 .1 11 .4 1 .4 11 .4 0 3 .1 0 2 .9 18 .5 2 .7 31 .9 8 .8 4 Wd e 1 .6 9 05 .1 0 .4 54 .3 33 2 .3 49 .9 4 .5 0 .13th …… of each month.4 35 8 Ga dT t l r n oa 8 .7 38 2 .5 (b n ) la k 6 .1 1 .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 .7 Tu h Tu h 0 .1 5 .1 29 1 4 1 .Friday and on Saturday in the month of May.2 2 .2 0 .9 2 .3 13 .3 40 Fi r Fi r 3 .4 3 .e.3 0 1 .

3 0 0 4 .4 2 0 St a St a St a St a St a St a St a St a 1 .6 0 5 4 . Saturday:.3 2 9 8 .8 4 0 4 .7 4 0 4 .11Mn.5 4 0 4 . Wednesday:.5 8 0 T hu T hu T hu T hu T hu T hu T hu T hu 11 8 0 .1 5 0 5 . Friday:.5 0 0 8 .6 5 0 W ed W ed W ed W ed W ed W ed W ed W ed 6 .63Mn.0 9 4 8 5 .55Mn.0 9 0 .1 3 0 5 .1 4 0 4 .6 7 4 4 .1 1 0 7 .4 9 7 6 . Thursday:44Mn.1 9 0 6 .7 9 2 7 .8 8 0 6 .2 7 0 3 .1 7 0 5 . Tuesday:. for each day is as follow:Monday:.4 1 6 4 .4 8 0 5 .7 6 1 6 .2 0 1 4 .8 7 0 Fri Fri Fri Fri Fri Fri Fri Fri 6 . 63 .5 8 0 4 .6 5 0 6 .1 5 7 5 .62Mn.45Mn.6 6 0 5 .1 9 .1 7 6 1 .8 1 .4 6 0 T ue T ue T ue T ue T ue T ue T ue T ue 4 .3 5 0 1 .Mon Mon Mon Mon Mon Mon Mon Mon 9 .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-2009.8 2 9 4 .3 1 0 4 .From the above study I got a result that the Pre-paid executive should give the forecast on an average basis .The avg.0 0 4 6 .1 9 4 .0 2 5 4 .4 9 2 4 .2 1 0 1 .

CHAPTER-6 CONCLUSION 64 .

different banks for different modes of the payment collection.86031. which is very convenient for the customers but it has become complicated for Airtel to forecast. 65 . Airtel not only generate the income from Pre-Paid. Lapu and Roaming But it also earn a the profit by investing this money for short term.Bharti Airtel is a the most revenue generating source of Bharti. Post-Paid . 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 . So it is the responsibility of Airtel to Maximize its Profit.86 Rs. Airtel has assigned From the above study I have concluded that in the month of April2011 Airtel suffered interest loss of amount = 1.

few observations are and resultants are as follow:-  There is not a proper communication between prepaid forecast Executive and Sales Manager of Airtel.2 business days 66 .000) yearly.This is the interest loss only for the month of April 2011.due to which a big Difference accrue as it is not decided that in how many days the cheque will clear.000. Because Different Banks have different payment days .  One of the way for payment for Post-Paid is through cheque .3 business days HDFC-2 business days DB . The cash clearing days for different Banks are as follow:ICICI.  There should be some follow –up or trend to fore cast.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.It is clear from the above study that the most deviation accrue in CITI Bank which collects the credit card payments.  The big deviation accrue due to payment through Credit card .

4 to 7 business days SBI . There is a midway agency i. 67 . due to this also Airtel has to bear a big deviation.UTI .5 business days  There is not proper audit of ARC’s. 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.e.  In case of IUC and Roaming it is not certain that on what date the other telecom industries will do the payment. the audit takes place once in a month.2 to 3 business days PNB .

CHAPTER-7 RECOMMENDATIONS :- 68 .

So that it will be easy for Airtel to minimize the deviation. Sales Manager should send the right collections from all  For pre-paid forecast the forecast should follow the follow-up as below:Monday:. 69 .  There should be audit of the ARC’s on weekly basis.63Mn. as per the law Or on the requirement of the company.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. hence There should be the fix cash clearing time through the all credit cards.  As different customers have different bank’s credit card . Saturday:. Tuesday:. Wednesday:. Friday:.55Mn. Thursday:44Mn.  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. The Pre-paid executive followed the above trend and interest loss have become 1/10 of previous trend.62Mn.11Mn.  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.45Mn. sources.

CHAPTER-8 REFERENCES 70 .

com http://www.in/tid_special_detail.in www.telecomindiadaily.Websites:• • • www.airtel.google.php?TID=28 71 .

CHAPTER-9 APPENDICES 72 .

Daily Cash Forecast-Airtel:- 73 .

74 .

Daily Actual Cash Flow Statement:- 75 .

ABBREVIATIONS ARC POS PSBC CAD DCR Airtel Relationship Center Payment Online System Pre Signed Bank Cheque Customer Accounting Department Daily collection Report 76 .

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