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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...A.A.......A......61 5.1) S..5..2) HDFC BANK DEVIATION INTEREST LOSS………………………………………….......1) CITI BANK DEVIATION (ACTUALVs FORECAST)………………………………………53 5.. BANK INTEREST LOSS……………………………………………….4.1) DEUTSCHE BANK DEVIATION (ACTUALVs FORECAST)………………….1...57 5..C.1) HDFC BANK DEVIATION (ACTUALVs FORECAST)…………………………………..3..………………51 5..1) ICICI BANK DEVIATION (ACTUALVs FORECAST)………………………….....2) CITI BANK INTEREST LOSS……………………………………………………..1.LIST OF FIGURES 5....2) S.A...55 5.2) ICICI BANK INTEREST LOSS………………………………………………………………66 4 .65 5.C. BANK DEVIATION (ACTUALVs FORECAST)………………………………………49 5......4..2) DEUTSCHE BANK INTEREST LOSS………………………………………………………59 5....5.2....A.A.A..2.....A.63 5.A..3..A.

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CHAPTER 1 INTRODUCTION 6 .

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

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

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

CHAPTER 2 ORGANIZATION INFORMATION 10 .

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

which handles the mobile services in 16 circles out of a total 23 circles across the country. BHARTI Established in 1985. expand the telecom network. 2000 the Department of Telecom Operations.• -Foreign invested companies (Hutchison-Essar. Escotel. which has 93 companies. MTNL MTNL was set up on 1st April 1986 by the Government of India to upgrade the quality of telecom services. Government of India became a corporation and was renamed Bharat Sanchar Nigam Limited (BSNL). fixed. Bharti has been a pioneering force in the telecom sector. broadband. first Indian company to provide comprehensive telecom services outside India and first private sector service provider to launch National Long Distance Services in India. Idea Cellular.000 fixed line customers. Bharti Tele-Ventures.000 subscribers. and the Infotel group. data. data services and a wide range of value added services and applications. Tata Teleservices provides basic (fixed line services). Tamil Nadu. BSNL is now India’s leading Telecommunications Company and the largest public sector undertaking. national and international long distance services. RELIANCE INFOCOMM It is also an integrated telecom service provider with licenses for mobile. and Karnataka. first private basic telephone service provider in the country.000 employees and more than 2. Bharti’s operations are broadly handled by two companies: the Mobility group. which handles the fixed line. of which 5. over 200.3 million shareholders. The company has a total customer base of 6. Bharti Tele-Ventures Limited was incorporated on July 7. 12 . using CDMA technology in six circles: Maharashtra (including Mumbai). Spice Communications) BSNL On October 1. Andhra Pradesh. It has over 800. TATA TELESERVICES Tata Teleservices is a part of the $12 billion Tata Group. Reliance Infocomm offers a complete range of telecom services. 1995 for promoting investments in telecommunications services. being the first mobile service in Delhi. and introduce new services to raise revenue for telecom development. It has a network of over 45 million lines covering 5000 towns with over 35 million telephone connections. Gujarat. domestic long distance and international services.86 million are mobile and 588. New Delhi. BPL Mobile. and satellite-based services.45 million. covering mobile and fixed line telephony including broadband.

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

In 2000. International Roaming.elsewhere in the telecommunications market. The company's product range include Basic Telephones. Bharti Telesoft Ltd: Bharti Telesoft Ltd provides value added services and solutions to wireless 14 . In 2005. By the early 1990s. 2. in Chennai. in Seychelles. DECT 1. Caller ID Phones. Caller ID Boxes. and the company was listed on Mumbai Stock Exchange and National Stock Exchange of India. Bharti acquired control of Skycell Communications. In 1995. It is the only Indian telephone company to be present in 30 countries mapping 5 continents.1COMPANIES OF BHARTI ENTERPRISES:Bharti Airtel: Bharti Airtel is India's leading provider of telecommunications services. In 1992. Sunil Mittal incorporated the cellular operations as Bharti Tele-Ventures and launched service in Delhi. Cordless Phones. In 2003.: Bharti TeleTech manufactures and exports world-class telecom equipment under the brand Beetel'. cellular service was extended to Himachal Pradesh. Bharti acquired control of Hexacom and entered Rajasthan. PSTN (Fixed Lines). connectivity to Internet Services. Airtel is the laegest cellular service provider in India.2. In 1996. the company acquired control of Spice Cell in Calcutta. 2. Bharti extended its network to Andaman and Nicobar. under the brand 'Airtel.8 GHz Phones. In 2001. Today. and Set Top Boxes.4 GHz Digital Cordless Phones. Bharti Enterprises acquired control of JT Holdings. In 2004. In 1999. Bharti Enterprises went public in 2002. Sunil Mittal won a bid to build a cellular phone network in Delhi. Bharti Teletech Ltd. The company provides GSM mobile services across India in 23 telecom circles and broadband & telephone services in 90 cities. Telecom Seychelles Ltd: Telecom Seychelles Ltd provides comprehensive telecom services including GSM Cellular. Fax and Data. Maritime Telecom Services (INMARSAT) and International Collect and Credit Card calling. the cellular phone operations were rebranded under the single AirTel brand. and extended cellular operations to Karnataka and Andhra Pradesh. Sunil Mittal had also launched the country's first fax machines and its first cordless telephones.

) to global customers. progressive farming techniques & identification and adoption of appropriate technologies. sales and marketing (including database marketing. document management etc.and wireline carriers worldwide.). 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. The company provides premium quality fresh produce to the markets worldwide and promotes world class standards for agricultural practices. web sales and marketing etc. application processing. 15 . and has a customer base of 150 million across 5 continents. marketing support. 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. claims processing. is a 100% subsidiary of Bharti Enterprises. account maintenance. Bharti Retail is planning to launch its retail outlets in multiple consumer friendly formats in several cities across India. FieldFresh Foods Pvt Ltd: FieldFresh Foods (P) Ltd is an equal partnership venture between Bharti Enterprises and ELRo Holdings India Ltd.. back office administration (including credit and collections. an investment company of the Rothschild family. asset management. Bharti Retail Pvt Ltd: Bharti Retail Pvt Ltd.

The mobility business provides GSM mobile services in all 23 telecommunications circles in India.000 are fixed line customers. broadband. Airtel digital TV. The company implements its mobile. which handles the mobile services in 16 circles out of a total 23 circles across the country. first private basic telephone service provider in the country. It has over 21 million satisfied customers.1HISTORY:Established in 1985. broadband. of which 5. Bharti Tele-Ventures Limited was incorporated on July 7. Airtel telemedia services & Enterprise services.3BHARTI AIRTEL LIMITED 2.Mobile services.86 million are mobile and 588. and telephone services with national and international long distance 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. being the first mobile service in Delhi. and the Infotel group. Bharti has been a pioneering force in the telecom sector. which handles the fixed line.45 million. The businesses at Bharti Airtel have been structured into three individual strategic business units (SBU’s) . 1995 for promoting investments in telecommunications services. The company has a total customer base of 6.2. and satellite-based services. 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’s operations are broadly handled by two companies: the Mobility group.3. while the Infotel business group provides telephone services and internet access in 15 circles. 16 . data.

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 100.10 1.28 12.51 100.80 Aircel 15.php?TID=28) 17 .85 IDEA Cellular 32.76 16.2.90 Voda fone 58.05 BPL 1.36 Mtna 4.37 RELIANCE 59.53 Total 352.16 Spice Telecom 3.57 16.67 BSNL 45.in/tid_special_detail.02 8.telecomindiadaily.31 Tata Teleservice 31.71 1.00 (Source: http://www.88 0.3.81 9.38 4.00 28.

2.3.3BHARTI AIRTEL-ORGANIZATION STRUCTURE :- 18 .

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

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

A spirit charged with energy.2.5 THE BRAND Airtel was born free. rose to the pinnacle to achievement and continues to lead. UK and Canada with its call home service.3. Airtel. a force unleashed into the market with a relentless and unwavering determination to succeed. contributing to its economic resurgence. 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. Today Airtel touch peoples lives with its Mobile services. to connecting India's leading 1000+ corporates. creativity and a team driven “to seize the day” with an ambition to become the most globally admired telecom service. 21 . Telemedia services. Airtel also connect Indians living in USA.

6AIRTEL SERVCES Experience total cost control. calling is made more fun and convenient with services and entertainment on Airtel. 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.2.3. 22 . Experience a world class service and cutting edge technology with Airtel landline and its feature rich Wireless fixed line. What’s more.

0 depending upon the usage patterns. requirement and suitability. It is fast. Want to access information on our mobile? Airtel brings us Email on the go.Airtel Broadband Services. Airtel calling card services connect us to the world from India and allow a better way to call back India. convenient and cost effective. We can choose from BlackBerry and Windows Mobile 5. redefines our Internet experience. fun. 23 . 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.

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

voice and managed services. Beyond India. Across India. working for them to meet the challenges of growth. Airtel’s solutions are tailored to fit your particular needs. Airtel is a part of the Bharti Group. Airtel offer a full suite of business communication services across data.2.7Airtel Business Services:- Airtel is proud to be the trusted communications partner to India’s leading organisations.3. Airtel has always been challenging the limits of innovation and striving to find new and better ways of doing things. 25 . Airtel will stick through thick and thin. Airtel’s people are committed to helping you succeed.

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

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. thus giving us flexibility through customised solutions and increased coverage. Managed Network Solutions Make our network efficient. audio and video applications on-demand suiting our transmission requirements. 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. This service is available both in India and abroad. Online Desktop 27 . 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. Its collaborative services empower our business to automate response from sales team. The solution supports voice. track our fleet and enables call centres to save time and effort. scalable and reliable with its Managed Network solutions.

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

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

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. 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.” COMMUNITY: “We will be transparent and sensitive in our dealings with all stakeholders. 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.” 30 .” LEARNING: “We will continuously improve our services – innovatively and expeditiously. At Airtel we are seeking people whose ideas can make a difference.” PEOPLE: “We will trust and respect our employees.” OPPORTUNITIES: “Imagine having the resources to influence tomorrow’s reality – today.

31 . The red dot cues in the company’s focus on innovation. red rectangular forms whose counter form creates an open doorway. always ‘In-touch’ and on customer’s side. It incorporates two solid.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. The case lettering with its capital ‘A’ reinforces our leadership position. 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.

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

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

• Bharti set to gain global leadership in the telecom sector. AWARDS FOR THE YEAR 2007-2008 • Bharti Airtel has won the CNBC. • Bharti draws top honours at the NDTV profit Business leadership Awards 2007. • Bharti Enterprise continues to hold shareholding and management control in Bharti TeleVentures.B Pant University 34 . Sunil Bharti Mittal conferred Degree of Doctor of Science by G.TV India Business Leader Award for the Outstanding Company of the year 2007. • Bharti Airtel Ranked 3rd on Shareholder Returns in Business Week IT 100 List.

Post-Paid. And the interest is 35 .CHAPTER-3 LITERATURE REVIEW/ CONCEPTUAL SUPPORT 3. And this forecasted value is send to the APO (Airtel President Office) at 3:30pm. It means the cash through various sources like Pre-paid.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. 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.

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

37

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

for this he goes to the Airtel Relationship Centre (ARC) and pay their bill by cash. These ARC’s receives the cash on behalf of the company by two modes. He then buys a number and becomes customer of Airtel.POST-PAID PROCESS:“A commonly referred to in and across India with telecom service providers for customers who use and pay. electronic transfer etc. Every mode has its own well defined process and company incurs certain costs associated with it. cheque. Then. 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. These ARC’s are collecting cash from the subscriber on behalf of the company. 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. 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.” A customer goes to the Airtel Resource Centre. 40 . The various modes of payment are cash. 3. interacts with the executive and selects a post-paid plan. credit card. the customer pays off the whole amount of the bill before due date of the bill.

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

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

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

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

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

To Bank account CHAPTER -4 RESEARCH METHODOLOGY 46 .

 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.Now after going through the conceptual support required for understanding the project. 47 . 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.

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

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

72 4.Mn. 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 1.59 2.A.29) .30 2.19 (0.90 1.67 7.23 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.63) 5.65 1.11 50 Rs.71) 0.30 2.61 1. Actual 4.99 1.32 2.40 2.40 2.5.71 0.35 (0.43 0.30 1.92 (0.80 2.32 1.40 Deviation 2.80 2.

84) (0.80 2.40 2.86 2.60 2. D*6% /365* 1000000)) (D represents Deviation) GRAPHICAL EVALUATION:5.A.D*10.40 2.42) (0.25% /365*1000000.17 18 19 20 21 22 23 24 25 26 27 28 29 30 =3.40 2.487 Fri Sat Sun Mon Tue Wed Thu Fri Sat Sun Mon Tue Wed Thu 2.30 2.17 2.51) (0.20 1.30 2.89 2.84 1.05 1.15) (0.46) (0.20 2.98 1.64) (0.50 2.1.27) (0.54 (0.23) 0.1)- 5.53 2.76 1.2) 51 .20 (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<0.79 1.30 1.76 2.30 2.A.44) (0.1.31) (0.04 1.

18 9. On the particular day.037 776 3.39 4.From the graph it is clear that on 8th April there occurred the max.16 92.00 80.A.379 - 52 .72 90.947 1.47 - Rs.21 19.39 69.Mn.18 17.00 100. Deviation 36.96) 14.00 75.889 2.79) (5.00 8.47 - Rs.72 (9.00 25. Deviation .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. Interest 5.368 2.16 12.00 65.00 Actual 101. hence Airtel had interest loss of = 879 Rs.506 2.04 89. 5.

00 74. D*6% /365* 1000000)) 74.90) (3.00 65.00 65.00 65.406 7.896 8.00 65.059 (D represents Deviation) GRAPHICAL EVALUATION:5.2.00 65.15 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 75.04 61.00 65.96) (17.15 65.878 9.2.58) 1.54) (19.D*14.00 65.A.42 66.60 40.50) (15.189 281 735 99 9.50% /365*1000000.71 (1.04 47.A.2)- 53 .00 10.10 61.00 65.05 9.36) (22.11) (2.50 49.916 6.783 1.00 10.89 62.35) 199 6.673 Total Interest Loss = For CITI Bank interest loss formula is=ABS (IF(D<0.00 65.85) 0.172 381 1.96) (3.95) (0.60 (24.83) (24.17 40.00 65.71 8.00 65.1)- 5.46 45.65 (0.64 42.549 1.

24 (0.32 Rs.00 1. 4th . 28th. On the particular days.23 16.Mn.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. 16th.00 Actual 4.09 4. 21st.00 1.00 1.60 5. hence Airtel had suffered interest loss of = 71.A. 6th.86 3.00 1.09 3.25) 5. 11th. Interest 533 0 92 0 860 0 2645 592 0 856 0 155 0 2114 546 54 .00 1.94 12. 27th. 24th.From the graph it is clear that on 2nd.94 13.00 1. 23rd. Deviation .589 Rs.21 1.75 6. 29thand on 30th April there occurred the max. 5. Deviation 3.60 6.21 0.23 17.86 4.00 1.24 0.32 Rs. 13th. 22nd.00 1.

003 For DEUTSCHE Bank interest loss formula is=ABS (IF(D<0.85 2.00 1.00 1.00 1.66 0.A.14 0.50 4.23) 23.00 58.1)- 5.A.31 1.00 1.00 1.73) (0. D*6% /365* 1000000)) (D represents Deviation) GRAPHICAL EVALUATION:5.3.50 5.43 16.27 0.27 0.D*13.78 9478 270 0 85 3822 516 82 728 2681 0 44 307 304 293 Total Interest Loss = 27.00 1.31 0.00 1.17 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 1.25 3.27 (0.2)- 55 .78 57.00 1.66 (0.00 1.14 1.85 1.83) 1.77 24.43 17.00 1.00 1.25 4.17 2.3.5% /365*1000000.

19 (2.79 0.00 15.00 7.00 7.89 15. 5.00 7.30 Rs.71 7.36 3.64) (3. Interest 0 9597 0 376 0 260 0 217 1039 0 927 0 526 0 561 773 .A.66 0. 21st.68 1. Deviation 29. hence Airtel had suffered interest loss of = 20740 Rs.41) (4.29) 0.From the graph it is clear that on 8th .00 56 Actual 36.4)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. 17th.19 4.66 (6.00 7.00 7.80 11. 25thApril there occurred the max.30 20.20) (3. Mn.00 7.70) Rs . Deviation .79 7.32) (5. On the particular days. 15th.

01 7.00 7.00 7.17) 4.43) 1.30 (5.97) (5.90 0.15) 893 526 0 28 1414 967 6263 3306 1146 0 957 2390 4530 353 Total Interest Loss = 37.D*6% /365*1000000.00 7.4.85 (5.4.00 34.70 17.30 17.03 1.27 13.047 For CITI Bank interest loss formula is=ABS (IF(D<0.00 1. D*12% /365* 1000000)) (D represents Deviation) GRAPHICAL EVALUATION:5.A.00 7.05 (20.18 23.11) (6.A.50 7.78 (2.1)- 5.12 26.37 26.10 13.05 13.57 3.60 (0.2)- 57 .78 4.33 11.00 1.30 1.88) 19.00 16.82) 7.17 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 35.00 30.63) (14.From the graph it is clear that on 2nd.00 35.689 592 5. Deviation 4.122 3.575 3.60) 19.24th . Mn.30) (0.44 (1.18 (4.217 .9th .A. 5.18 25.40 54.37 25.28th .57 Rs.00 35.25th .44 33.34) 22. hence Airtel had suffered interest loss of = 29684 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 .70 29.57 Interest 687 1.43) (8. 21st. Deviation . On the particular days.66 57.00 40.00 58 Actual 39.29th April there occurred the max. Rs.00 35.191 156 3.57 26.00 30.

D*6% /365* 1000000)) (D represents Deviation) GRAPHICAL EVALUATION:5.00 35.33 (3.00 35.00 32.169 2.19) (15.16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 44.22 39.60 33.191 1.40) 1.00 22.00 35.78 36.23 (12.00 35.1)- 5.37 24.96) 13.00 35.910 Total Interest Loss = For ICICI Bank interest loss formula is=ABS (IF(D<0.794 2.33 25.63) (10.5.78 1.04 43.11 34.434.25% /365*1000000.A.45 3.22) (6.A.11 (0.425 5.91 29.2)59 .45 38.49 13.78 25.5.91 (5.D*13.00 30.00 30.81 19.00 32.323 314 2.00 35.098 738 2.211 621 182 229 3.49 43.78) 4.00 35.77) 4.00 29.86 Thu Fri Sat Sun Mon Tue Wed Thu Fri Sat Sun Mon Tue Wed Thu 35.

13th. On the particular days. 5.059+ 27003+ 37047+ 44.From the graph it is clear that on 4th .227 Rs. 9th.15th .434) =1.86031 Rs. 20th . 21st.18th . 16th. 6th. Deviation . hence Airtel had suffered interest loss of = 37.17th . 23rd. TOTAL INTEREST LOSS BEARED BY AIRTEL IN THE MONTH OF APRIL= = ( 3.B)COMAPARATIVE STUDY OF INTEREST LOSS BANK WISE FOR THE MONTH OF APRIL AND MAY:- 60 . 25th and on 30th April there occurred the max.487 + 74.

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

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

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

CHAPTER-6 CONCLUSION 64 .

Bharti Airtel is a the most revenue generating source of Bharti. Airtel not only generate the income from Pre-Paid. Post-Paid .86 Rs. 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. which is very convenient for the customers but it has become complicated for Airtel to forecast.86031. Lapu and Roaming But it also earn a the profit by investing this money for short term. So it is the responsibility of Airtel to Maximize its Profit. 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 . 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. 65 .

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

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

CHAPTER-7 RECOMMENDATIONS :- 68 .

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

CHAPTER-8 REFERENCES 70 .

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

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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