CONTENTSCONTENTS...................................................................................................................................................1

LIST OF TABLES............................................................................................................................................2

LIST OF FIGURES..........................................................................................................................................2

CHAPTER 1-INTRODUCTION.......................................................................................................................5

1.1BACKGROUND OF THE STUDY............................................................................................................2

1.2 NEED FOR STUDY...............................................................................................................................7

1.3 DEFINATION OF THE PROBLEM..........................................................................................................7

1.4 SCOPE OF STUDY................................................................................................................................7

1.5 PROJECT OBJECTIVES........................................................................................................................8

1.6 KEY DELIVERABLES............................................................................................................................8

CHAPTER 2-ORGANIZATION INFORMATION..............................................................................................9

2.1 TELECOM INDUSTRY……………...…………………………………………………………….10

2.2 BHARTI GROUP…………………….…………………………………………...……………….11

2.3BHARTI AIRTEL LIMITED....................................................................................................................15

CHAPTER-3LITERATURE REVIEW/ CONCEPTUAL SUPPORT………………………………33

3.1 CASH COLLECTION:-.........................................................................................................................34

3.1.1 FROM COLLECTION POINT OF VIEW.............................................................................................34

3.1.2 FROM PAYMENT POINT OF VIEW:-...............................................................................................35

3.2 BANKS HAVING COLLEBOTATION WITH AIRTEL ARE:-......................................................................37

3.3DIFFERENT MODES OF PAYMENT.....................................................................................................39

CHAPTER -4 RESEARCH METHODOLOGY.................................................................................................44

4.1 RESEARCH DESIGN………………………………………………………………………….......45

4.2 DATA COLLECTION……………………………………………………………………………..45

4.3)PROJECT METHODOLOGY...............................................................................................................46

4.4)LOCALE OF THE PROJECT.................................................................................................................46

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CHAPTER-5 DATA ANALYSIS………..……………………………………………………………...47

CHAPTER-6 CONCLUSION.........................................................................................................................21

CHAPTER-7 RECOMMENDATIONS..............................................................................................................2

CHAPTER-8 REFERENCES.............................................................................................................................2

CHAPTER-9 APPENDICES.............................................................................................................................2

ABBREVIATIONS....................................................................................................................................... ..71

2

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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LIST OF FIGURES

5.A.1.1) S.C. BANK DEVIATION (ACTUALVs FORECAST)………………………………………49

5.A.1.2) S.C. BANK INTEREST LOSS……………………………………………….………………51

5.A.2.1) CITI BANK DEVIATION (ACTUALVs FORECAST)………………………………………53

5.A.2.2) CITI BANK INTEREST LOSS……………………………………………………................55

5.A.3.1) DEUTSCHE BANK DEVIATION (ACTUALVs FORECAST)…………………...................57

5.A.3.2) DEUTSCHE BANK INTEREST LOSS………………………………………………………59

5.A.4.1) HDFC BANK DEVIATION (ACTUALVs FORECAST)…………………………………....61

5.A.4.2) HDFC BANK DEVIATION INTEREST LOSS………………………………………….......63

5.A.5.1) ICICI BANK DEVIATION (ACTUALVs FORECAST)………………………….................65

5.A.5.2) ICICI BANK INTEREST LOSS………………………………………………………………66

4

5

CHAPTER 1

INTRODUCTION

6

In the Introduction part, there will be coverage of the project description, figuring out the

relevance of the project assigned, formulating its objectives and finally deciding the key

deliverables from the project.

1.1 BACKGROUND OF THE STUDY

The current economic crisis is calling into question business model fundamentals and

putting all companies under stress. The cash is obviously the most important current asset.

Insufficiency of cash at any stage may prevent a firm from discharging its liabilities or force

it to sell its other assets immediately. On the other hand, extreme liquidity may take the firm

to make uneconomic investments. The mobility division does not require for the working

capital as it earns the cash in the advance from the distributers for Pre-Paid. and receive the

payment from post-paid on the daily basis. financial manager is required to identify the

sources from where cash may be procured on a short term basis or the outlets where excess

cash may be invested for a short term . For this purpose I decided to choose the most

successful company in the mobility sector i.e. BHARTI AIRTEL LTD.

Hence I decided to study that How Airtel manage the cash on daily basis.

From the study I found that there is a big Interest loss (opportunity cost) beard by the Airtel.

Hence I decided to work on a project on what I can apply my knowledge and skills to

minimize this interest loss for the contributions towards Airtel.

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1.2 NEED FOR STUDYNo one can be a competent person in the absence of practical exposure, irrespective of how

many books, theories he has gone through. In order to become a perfect manager in near

future I was also required to apply all of my learning in actual practice.

The most important of all activities is managing the cash and keeping an eye on that and

reducing them wherever possible. Therefore I chose to learn how a company manages its

cash on daily basis.

The need for this study arises because each company want to maximize

its revenue . The firm’s efficiency depends on the strategy followed by a company

1.3 DEFINATION OF THE PROBLEMBharti Airtel Limited a major player in the telecom sector has reached a substantial mark of

100 million subscribers on 15th May 2009. To increase its market share continuously Airtel

invest its daily earning for short term. who target to collect the cash from Pre-paid, Post paid

and roaming .On the basis of this cash collection Airtel President Office (APO), invest the

Daily cash collection for short term, this is done by the Banks for Airtel.

I observed that there is a big difference in between forecast Vs Actual cash collection. In

this recession Period every enterprise is focusing to maximize the profit . Hence there

should be minimum Deviation between the Forecast and Actual cash collection. . The

project will focus on finding the various reasons and there solutions for this Deviation.

1.4 SCOPE OF STUDY The successful completion of the project will help the company in maximizing the profit by

in-depth study of the various reasons for this deviation. This in-depth study will be relevant

for financial decision.

The Study has been done for the Delhi circle, this can be replicated to all other circles as well.

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1.5 PROJECT OBJECTIVES The study focuses on the cash inflow forecasting process of various modes and effect

associated with them.

To examine the parameters or the way followed by Airtel to forecast the cash inflow.

To study interest loss incurred by Airtel

To minimize the cash collection deviation

which will help company to minimize the Interest loss. Hence the focus area is to minimize

the cash collection deviation.

1.6 KEY DELIVERABLES The Key Deliverables from the project are-:

less deviation in between forecasted and actual cash flow.

Less Interest loss.

Now after finalizing the objectives of the project and deciding the key deliverables expected

from the project, In the second chapter I will discuss about the conceptual support required

for the understanding of the project. It will cover cash flow process with surplus and deficit

conditions.

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CHAPTER 2

ORGANIZATION INFORMATION

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2.1TELECOM INDUSTRY:-

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

TELECOMMUNICATION

The word ‘Telecommunication’ was adapted from the French word. It is a compound of the Greek prefix ‘Tele’ which means ‘far off’ and the Latin ‘communicate’ which means ‘to share’.Telecommunication is the assisted transmission of signals over a distance for the purpose of communication.

The basic telecommunication system consists of three elements:

A transmitter that takes the information and converts it to a signal

A transmission medium that carries the signal and,

A receiver that receives the signal and converts it into the useful information.

MAJOR PLAYERS IN THE MARKET

There are three types of players in telecom services: • -State owned companies (BSNL and MTNL) • -Private Indian owned companies (Reliance Infocomm, Tata Teleservices,) • -Foreign invested companies (Hutchison-Essar, Bharti Tele-Ventures, Escotel, Idea Cellular, BPL Mobile, Spice Communications)

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

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

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

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

BHARTI Established in 1985, Bharti has been a pioneering force in the telecom sector, being the first mobile service in Delhi, first private basic telephone service provider in the country, first Indian company to provide comprehensive telecom services outside India and first private sector service provider to launch National Long Distance Services in India.

Bharti Tele-Ventures Limited was incorporated on July 7, 1995 for promoting investments in telecommunications services. Bharti’s operations are broadly handled by two companies: the Mobility group, which handles the mobile services in 16 circles out of a total 23 circles across the country; and the Infotel group, which handles the fixed line, broadband, data, and satellite-based services. The company has a total customer base of 6.45 million, of which 5.86 million are mobile and 588,000 fixed line customers.

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2.2BHARTI GROUP

Bharti Enterprises is an Indian conglomerate with interests in diverse fields including

telecommunication services, manufacturing of telephone equipment, horticulture exports, BPO,

software, realty and insurance.Bharti Enterprises has successfully focused its strategy on telecom

while spanning diverse fields of business. From introducing push-button telephones into India, to

becoming the largest manufacturer of telecom handsets (outside China) to founding India's

largest integrated private telecom operator, Bharti has created a significant position for itself in

the global telecommunications sector.

Bharti Enterprises' dynamic diversification has continued with the

company venturing into telecom software development, insurance, horticulture exports, BPO,

realty, etc. The group is also entering the fast-growing retail business very shortly.

Bharti Enterprises is a pioneer in telecom sector and the group is widening its horizons by

entering new business areas such as insurance and retail. Bharti Enterprises has created a vantage

position for itself in the global telecommunications sector. Bharti Airtel Limited occupies

numero uno status in mobile telephony in India while its brand 'Beetel' is the largest

manufacturer and exporter of world class telecom terminals.

.

Founder of Bharti Group is Sunil Mittal. In 1983, Sunil Mittal entered into an agreement with

Germany's Siemens to manufacture the company's push-button telephone models for the Indian

market. In 1986, Sunil Bharti Mittal incorporated Bharti Telecom Limited (BTL) and his

company became the first in India to offer push-button telephones, establishing the basis of

Bharti Enterprises. This first-mover advantage allowed Sunil Mittal to expand his manufacturing

capacity elsewhere in the telecommunications market. By the early 1990s, Sunil Mittal had also

launched the country's first fax machines and its first cordless telephones. In 1992, Sunil Mittal

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won a bid to build a cellular phone network in Delhi. In 1995, Sunil Mittal incorporated the

cellular operations as Bharti Tele-Ventures and launched service in Delhi. In 1996, cellular

service was extended to Himachal Pradesh. In 1999, Bharti Enterprises acquired control of JT

Holdings, and extended cellular operations to Karnataka and Andhra Pradesh. In 2000, Bharti

acquired control of Skycell Communications, in Chennai. In 2001, the company acquired control

of Spice Cell in Calcutta. Bharti Enterprises went public in 2002, and the company was listed on

Mumbai Stock Exchange and National Stock Exchange of India. In 2003, the cellular phone

operations were rebranded under the single AirTel brand. In 2004, Bharti acquired control of

Hexacom and entered Rajasthan. In 2005, Bharti extended its network to Andaman and Nicobar.

Today, Airtel is the laegest cellular service provider in India.

2.2.1COMPANIES OF BHARTI ENTERPRISES:-

Bharti Airtel: Bharti Airtel is India's leading provider of telecommunications services. The

company provides GSM mobile services across India in 23 telecom circles and broadband &

telephone services in 90 cities.

Bharti Teletech Ltd.: Bharti TeleTech manufactures and exports world-class telecom

equipment under the brand Beetel'. It is the only Indian telephone company to be present in 30

countries mapping 5 continents. The company's product range include Basic Telephones, Caller

ID Phones, Caller ID Boxes, Cordless Phones, 2.4 GHz Digital Cordless Phones, DECT 1.8 GHz

Phones, and Set Top Boxes.

Telecom Seychelles Ltd: Telecom Seychelles Ltd provides comprehensive telecom services

including GSM Cellular, PSTN (Fixed Lines), Fax and Data, International Roaming,

connectivity to Internet Services, Maritime Telecom Services (INMARSAT) and International

Collect and Credit Card calling, in Seychelles, under the brand 'Airtel.

Bharti Telesoft Ltd: Bharti Telesoft Ltd provides value added services and solutions to wireless

and wireline carriers worldwide. Bharti Telesoft Ltd ha deployed products and solutions in 25

countries to over 100 network, and has a customer base of 150 million across 5 continents.

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TeleTech Services (India) Ltd: TeleTech Services (India) Ltd is a joint venture between

TeleTech Holdings, Inc., world's leading full-service provider of business process outsourcing

and Bharti TeleTech Ltd. The company offers offer the entire spectrum of front-to-back-office

business processes ranging from voice and non-voice customer support, back office

administration (including credit and collections, account maintenance, application processing,

claims processing, asset management, document management etc.), sales and marketing

(including database marketing, marketing support, web sales and marketing etc.) to global

customers.

FieldFresh Foods Pvt Ltd: FieldFresh Foods (P) Ltd is an equal partnership venture between

Bharti Enterprises and ELRo Holdings India Ltd, an investment company of the Rothschild

family. The company provides premium quality fresh produce to the markets worldwide and

promotes world class standards for agricultural practices, progressive farming techniques &

identification and adoption of appropriate technologies.

Bharti Retail Pvt Ltd: Bharti Retail Pvt Ltd. is a 100% subsidiary of Bharti Enterprises. Bharti

Retail is planning to launch its retail outlets in multiple consumer friendly formats in several

cities across India.

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2.3BHARTI AIRTEL LIMITED

2.3.1HISTORY:-

Established in 1985, Bharti has been a pioneering force in the telecom sector, being the first

mobile service in Delhi, first private basic telephone service provider in the country, first Indian

company to provide comprehensive telecom services outside India and first private sector service

provider to launch National Long Distance Services in India.

Bharti Tele-Ventures Limited was incorporated on July 7, 1995 for promoting investments in

telecommunications services. Bharti’s operations are broadly handled by two companies: the

Mobility group, which handles the mobile services in 16 circles out of a total 23 circles across

the country; and the Infotel group, which handles the fixed line, broadband, data, and satellite-

based services. The company has a total customer base of 6.45 million, of which 5.86 million are

mobile and 588,000 are fixed line customers.

The mobility business provides GSM mobile services in all 23 telecommunications circles in

India, while the Infotel business group provides telephone services and internet access in 15

circles. The company implements its mobile, broadband, and telephone services with national

and international long distance services. It has over 21 million satisfied customers. The

businesses at Bharti Airtel have been structured into three individual strategic business units

(SBU’s) - Mobile services, Airtel telemedia services & Enterprise services. The mobile business

provides mobile & fixed wireless services using GSM technology across 23 telecom circles

while the Airtel telemedia services business offers broadband & telephone services in 95 cities

and has recently launched India's best Direct-to-Home (DTH) service, Airtel digital TV.

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2.3.2MARKET SHARE:-

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

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

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2.3.3BHARTI AIRTEL-ORGANIZATION STRUCTURE :-

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2.3.4BUSINESS DIVISIONS:-

MOBILE.SERVICES

Bharti Airtel offers GSM mobile services in all the 23-telecom circles of India and is the largest mobile service provider in the country, based on the number of customers. There are two types of customers pre-paid and post-paid.

PREPAID

Airtel pre-paid provides limitless possibilities for customers. The service helps to give, words to every feeling, an expression to every emotion. Here are some advantages that new Airtel pre-paid brings:-

Total cost control Pre activated STD/ISD without deposits or rentals Strong network coverage Instant balance and validity enquiry Recharge the Airtel pre-paid Pre-paid roaming More with Airtel pre-paid Reaches anytime anywhere

POSTPAID

Life becomes much simpler with Airtel post-paid. It gives the unlimited freedom to reach out to people in a special way. The exciting features that can be enjoyed with an Airtel postpaid connection:

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Easy billing Easy payment options anytime, anywhere. Credit limit Strong network coverage Long distance calling facility Widest roaming (National and International) It provides the GPRS facility.

AIRTEL TELEMEDIA SERVICES

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

ENTERPRISE SERVICES

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

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2.3.5 THE BRAND

Airtel was born free, a force unleashed into the market with a relentless and unwavering

determination to succeed. A spirit charged with energy, creativity and a team driven “to seize the

day” with an ambition to become the most globally admired telecom service. Airtel, in just ten

years of operations, rose to the pinnacle to achievement and continues to lead.

As India's leading telecommunications company Airtel brand has played the role as a major

catalyst in India's reforms, contributing to its economic resurgence.

Today Airtel touch peoples lives with its Mobile services, Telemedia services, to connecting

India's leading 1000+ corporates. Airtel also connect Indians living in USA, UK and Canada

with its call home service.

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2.3.6AIRTEL SERVCES

Experience total cost control, no rentals and easy billing with its postpaid and prepaid services.

Explore the world with its roaming services and get absolutely cool offers with Airtel Live.

Airtel welcomes us to the world of telephony services for our home. Experience a world class

service and cutting edge technology with Airtel landline and its feature rich Wireless fixed line.

What’s more, calling is made more fun and convenient with services and entertainment on Airtel.

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Airtel Broadband Services, India's most preferred high-speed Internet service, redefines our

Internet experience. It is fast, fun, convenient and cost effective.

BlackBerry from Airtel is an 'always connected' wireless solution providing easy and secure

access to our email and data.

Want to access information on our mobile? Airtel brings us Email on the go. We can choose

from BlackBerry and Windows Mobile 5.0 depending upon the usage patterns, requirement and

suitability.

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

India.

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With Airtel’s Wireless Internet, we have the freedom to access the Internet anytime, anywhere

across India. It enables Internet, Email, and Office applications with real-time secure VPN access

to corporate applications whilst on the move.

Discover the magical experience of digital entertainment with Airtel.

From DVD quality picture and sound, the best and widest variety of channels and programmes to

the best on-demand content on Airtel Live, our TV viewing experience change forever with

digital TV from Airtel!

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2.3.7Airtel Business Services:-

Airtel is proud to be the trusted communications partner to India’s leading organisations,

working for them to meet the challenges of growth. Across India. Beyond India. Airtel offer a

full suite of business communication services across data, voice and managed services. Airtel’s

solutions are tailored to fit your particular needs. Airtel is a part of the Bharti Group. Airtel has

always been challenging the limits of innovation and striving to find new and better ways of

doing things. Airtel’s people are committed to helping you succeed. Airtel will stick through

thick and thin.

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2.3.8WHAT AIRTEL OFFERS:-

Airtel know that the needs of every business are different, so Airtel will never suggest a one-

size-fits-all system. Airtel will work with you to identify your specific needs, then tailor an

effective solution that can be scaled, adapted or migrated as your business changes.

Data and IP Solutions

Airtel,s portfolio of Data and IP services helps us do business at ease. From keeping our mission

critical applications running to managing the flow of information across the globe, Airtel’s

comprehensive suite of data technologies and infrastructure support does it all for us.

Internet Access

Our browsing needs are varied. It provide us with a host of customised services that fit our

particular needs. Be it managing our Internet, better latencies to other countries, need based

Internet capabilities, dual PoPs or higher uptimes, they work with us to give us the best.

DataTransport Solution

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Whether we need site-to-site connectivity or WAN integration with optical network that provides

digital transmission, Airtel services will give us peace of mind and more reasons to expand

further.

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.

This can be used as a part of TDM or IP circuits.

Satellite Services

Airtel Satellite services provide reliable network connectivity to run our mission critical

applications. The solution supports voice, audio and video applications on-demand suiting our

transmission requirements. This service is available both in India and abroad.

Managed Network Solutions

Make our network efficient, scalable and reliable with its Managed Network solutions. It offer

end-to-end comprehensive solutions for network connectivity, thus giving us flexibility through

customised solutions and increased coverage.

Collaborative Services

Now let technology and innovation bring about a paradigm change in our enterprise through

increased revenue generation and efficiency. Its collaborative services empower our business to

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automate response from sales team, track our fleet and enables call centres to save time and

effort.

Online Desktop

Now, back up our data in a safe and secure location. Access, edit and share this data from

anywhere in the world. Not only that, Get the latest and original software on a monthly ent,

without having to buy anything upfront.

Voice Solutions

Businesses need to invest in resources in a multimodal communication environment to offer

seamless customer experience. Airtel voice solutions help us communicate and collaborate

within and beyond our organization, helping us meet the demands of growth.

Mobility Solutions

Airtel offer us mobile solutions that are developed with one thing in mind, our business. Whether

we are a single or a large operator, we create a price plan that works for our business along with

a range of features or services to meet our needs.

Fixed Line and Broadband

Our business needs to be in touch with its customers , proactively respond to the evolving

customer needs and extend a uniform customer experience.

Enterprise VAS

With Airtel portfolio of Enterprise value added services, we can stay connected wherever we are

and continue to perform all the tasks using our handheld device.

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Conferencing

Meet face to face virtually. With Airtel’s Conferencing services, we will no more be constrained

by geographies or time zones. Now we can stay connected with your colleagues and business

partners without even being there.

Audio Conference Service

With Airtel Audio conference service, we can now change the office space forever. This service

provides us the convenience of holding conversations with our team members at different

locations through a phone.

Video Conference Service

Now we and our colleagues at geographically distant locations can interact in real-time with full-

motion video and audio. Airtel Video conference service provides a virtual meeting environment,

giving us the benefit of real meeting. Besides the audio and visual transmission of meeting

activities, this service can be used to share documents, computer-displayed information, and

whiteboards.

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MISSION

To meet the global standards for telecom services that delight customers through:

Customer service focus

Empowered employees

Innovative services

Cost Efficiency

VALUES

CUSTOMER: “We will be responsible to the needs of our customers.”

PEOPLE: “We will trust and respect our employees.”

LEARNING: “We will continuously improve our services – innovatively and

expeditiously.”

COMMUNITY: “We will be transparent and sensitive in our dealings with all stakeholders.”

OPPORTUNITIES: “Imagine having the resources to influence tomorrow’s reality – today.

At Airtel we are seeking people whose ideas can make a difference, individuals who thrive

on the opportunity to think creatively and be empowered to deliver.We are proud of our

ability to nurture individuals and provide them the space and empowerment they need to

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home their talents. 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.”

VISION AND PROMISES

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

Loved by more customers

Targeted by top talent

Benchmarked by more businesses

We at Airtel always think in fresh and innovative ways about the needs of our customers

and how we want them to feel. We deliver what we promise and go out of our way to

delight the customer with a little bit more

LOGO

The Airtel logo is a specially drawn woodmark. It incorporates two solid, red rectangular forms

whose counter form creates an open doorway. The case lettering with its capital ‘A’ reinforces

our leadership position. The red dot cues in the company’s focus on innovation. The logo is a

reflection of the company’s identity – a confident symbol of a brand that is always ahead of the

rest, always ‘In-touch’ and on customer’s side.

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2.4 ACHIEVEMENTS

First to launch Cellular Service on November 1995.

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

Connect (exclusive showrooms) in 1995.

First to introduce push button phone in India

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

April, 1997 and the first to introduce the Intelligent Network Platform First to provide

Roaming to its subscribers by forming an association called World 1 Network.

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

network & above 700 cities moreover roam across international destinations in 119 countries

including USA, Canada , UK etc with 284 partners networks.

BHARTI announces agreement with VODAFONE marking the entry of the World’s

Largest Telecom Operator into India.

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

insurance joint venture in India.

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

Applications.

16 states, 600 million people. Only 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.

BAHRTI announces agreement with VODAFONE marking the entry of the World’s Largest Telecom Operator into India.

Vodafone to invest approximately Rs. 6,700 crores (approx UDS 1.5 bn.) to acquire around 10/5 in Bharti Tele-Ventures Ltd

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

The Largest single foreign investment ever in the history of India

The largest investment in the Indian Telecom Sector.

Bharti establishes its supremacy in the Indian Telecom market, having attracted Asia’s best- SingTel and now world’s best Vodafone.

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Bharti set to gain global leadership in the telecom sector.

Bharti Enterprise continues to hold shareholding and management control in Bharti Tele-Ventures.

AWARDS FOR THE YEAR 2007-2008

Bharti Airtel has won the CNBC- TV India Business Leader Award for the Outstanding Company of the year 2007.

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

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

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

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CHAPTER-3

LITERATURE REVIEW/ CONCEPTUAL SUPPORT

3.1 CASH COLLECTION:-

In The respective Airtel Mobility Head Office cash collection is forecasted. It means the

cash through various sources like Pre-paid,Post-Paid, Lapu ( e-recharge) and Roaming is

estimated for the next day. And this forecasted value is send to the APO (Airtel President

35

Office) at 3:30pm. accordingly the APO send the report of total forecast cash inflow(cash

inflow-cash out flow) to the different banks according to there prospective Job (described

below). On the basis of there reports banks invest this money on behalf of Airtel for short

term. And the interest is given to Airtel by banks for that money. Next day the actual cash is

collected at 2:00pm ,there occur the difference between the forecasted amount of cash and

the actual amount of cash received.

(For example on 1 st April the total cash inflow is forecasted for 2nd April

at 3:30pm this forecasted amount report is send to APO and on 2nd April at 2:00pm the total

actual cash collected is send to the APO, then Actual cash is send to the respective Bank)

This difference is called Deviation. Due to this deviation Airtel bear Interest Loss. This

interest loss can be understood under two prospective-

(I)From COLLECTION point of view .

(II)From PAYMENT point of view.

3.1.1 FROM COLLECTION POINT OF VIEW:-

Under this those bank comes in which the collected cash is kept.

These Banks are SBC Bank, CITI Bank, DEUTSCHE Bank and ICICI Bank.

For Example:-

36

FORCASTED ACTUAL DEVIATION

65 Million Rs. 70 Million Rs. 5 Million Rs. SURPLUS

65 Million Rs. 62 Million Rs. 3 Million Rs. DEFICIT

Here when actual cash collected is more than the forecasted one then the Airtel have extra

cash on that extra cash the Airtel has to bear the Interest Loss .

Explanation:- Because APO sends the report to the bank in advance and bank invest the pre

decided amount for short term . and Airtel losses the interest on the extra earning . This extra

earning remain no income generating because on current account there is no interest.

And when actual cash collected is less than the forecasted one then the Airtel has to bear

again interest loss on that money.

Explanation: :- Because APO sends the report to the bank in advance and bank invest the

pre-decided 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 the Airtel

expenses for the different purposes.

(i)Vender payment (iv) Rent

(ii) Stationary payment (v) Network expences

37

(iii) Employee payments (vi) Roaming payment

For Example:-

FORCASTED ACTUAL DEVIATION

7 Million Rs. 6.3 Million Rs. 0.7 Million Rs. SURPLUS

7Million Rs. 7.8Million Rs. 0.8 Million Rs. 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

38

2).SCB:-

(i) CASH COLLECTION

3).ICICI BANK :-

(i)CASH COLLECTION (FOR POST PAID)

4) DEUTSCHE BANK:-

(i) ROAMING COLLECTION

5).HDFC BANK:-

(i) VENDER PAYMENTS (v) NETWORK EXPENCES

(ii) STAIONARY PAYMENTS (vi) ROAMING PAYMENT

(iii) EMPLOYEE PAYMENTDS

(iv) RENT

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.

39

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)

POST-PAID PROCESS:-

“A commonly referred to in and across India with telecom service providers for

customers who use and pay.” A customer goes to the Airtel Resource Centre, interacts with

the executive and selects a post-paid plan. He then buys a number and becomes customer of

Airtel. Customer uses the number for whole month and then bill statement in the form of

printed paper is delivered to the post-paid customer’s residence at the end of the month

through the medium of registered post. Then, the customer pays off the whole amount of the

bill before due date of the bill. The customer can pay his bill in whichever way he is

convenient. The various modes of payment are cash, cheque, credit card, electronic transfer

etc. Every mode has its own well defined process and company incurs certain costs

associated with it.

3.3DIFFERENT MODES OF PAYMENT

A) CASH

Customer can pay their post-paid bills by cash, for this he goes to the Airtel Relationship

Centre (ARC) and pay their bill by cash. These ARC’s receives the cash on behalf of the

company by two modes, these are:

40

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. These ARC’s

are collecting cash from the subscriber on behalf of the company.

1) PICK UP AGENCY

In Cash pick process Securtans comes to ARC and pick the cash and deposits that in Airtel

Standard chartered bank account. Similarly, the agents appointed by the ICICI deposits in the

ICICI bank.

• Customer pays cash to ARC (Airtel Relationship Center) for their post- paid bill payment

or for the security deposit (day 0).

• Cash collection team collects cash from ARC the next day on (day1).

• Collection team deposits the cash collected, in airtel bank account the next day that is, on

(day2).

• Finance department maintains a daily ARC wise tracker through which outstanding &

balance to be recovered can be analyzed.

.

2) PSBC SYSTEM

In PSBC, CAD (Customer Accounting Department) has the pre-signed blank cheques of

ARC’s. For, the collection which ARC’s receives, CAD (Customer Accounting Department)

generates the POS report. This report is prepared on daily basis. According, to the POS report

generated the CAD prepares the cheques as well as the deposit slips and deposits these

cheques into the bank. The deposit slips are kept with the CAD for reference. The bank

makes the entry and credit’s the amount in the Airtel’s bank account. Further, the bank

prepares the MIS Statement which it sends to the company.

ACCOUNTING PROCESS

41

A entry is passed with crediting the amount as per the DCR (Daily Collection Report)

prepared by the ARC, receipts provided with the bank for depositing the cash in bank by

agents and MIS which is received from the bank for depositing the PSBC cheques. The

amount which is debited is the debit notes prepared by the CAD according to the POS reports

in the oracle.

The PSBC system is not in use by the company. The company was incurring huge amount of

costs in this system, so the company decided to discard this system. Now, the company uses

only PICK UP AGENCY system. The companies have two types of active agents working

for the company, The Secutrans and agents appointed by the ICICI bank. ICICI bank

appoints the agent, who picks up the cash directly from the ARC’s. The Secutrans deposits

the cash in Standard Chartered Bank.

B) CREDIT CARDS

Customers can pay their post-paid bills via credit cards also, for this he can pay by different

modes, such as:

1) By visiting the ARC and swapping the credit cards

2) By visiting the airtel world and pay online by credit cards.

3) By directly transferring the amount in airtel bank account.

4) By choosing the facility of ECS and SI

5) By non-conventional mode.

42

1) PROCESS FOR CARDS PAYMENT

Airtel has four cards swapping collaborations with the banks, via HDFC, ICICI, AMEX, and

CITI. Customer visits ARC and pays their bills by cards. Payments by cards are directly

received in airtel bank account as there is direct tie with the card agency after deducting their

commission. The company has tie-up with three banks, via HDFC, ICICI, CITI banks. All

these banks provide the MIS statement for the swapping of cards on the daily basis. The

CAD consolidates all the MIS from all banks and prepares the POS report. The information

of MIS is provided by the CAD to the finance department, who checks the credit in the bank

and passes the entry:

Bank account ……Dr.

To Subscriber’s account

2) PAYMENT ON AIRTEL WORLD

Customer can pay their post-paid bills by visiting the airtel world website (www.airtel.com).

Customer has to register his airtel mobile number for accessing his account on the site. After

the registration, the customer can access his account on the site. After logging in site,

customer can pay their bills via debit and credit cards.

ACCOUNTING PROCESS

43

All the banks which receive the amount through this mode prepare the MIS and sent to the

CAD. CAD prepares the POS report and provides information to the finance department,

who in turn checks the credit in the bank and passes the entry:

Bank account …….Dr.

To Subscribers account

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. When the amount is credited in the Airtel’s bank account, bank prepares the

MIS statement and forwards to the CAD. CAD prepares the POS report and provides

information to the finance department. The finance department checks the credit in the bank

and passes the entry:

Bank account ……..Dr.

To subscribers account

4) ECS/SI FACILITY

Payment through this mode is made on prior instructions received by the customers. ECS/SI

database is prepared for all those customers who give the instructions. The database file is

sent to the bank in which customers holds the account. The payment of bills is deducted from

the account balance of the customers and the record is maintained by the bank. The bank

prepares the MIS for the same and sends to the company. CAD prepares the POS report and

44

passes the information to the finance. The finance checks the credit in the bank and passes

the entry.

Bank account………Dr.

To Subscribers account

5) NON-CONVENTIONAL MODE

In this process of payment, the customer makes the payment of their post-paid bills by other

modes than cash, credit cards, and cheques. Here, the customer visits his own bank site and

clicks on the option of payment of mobile bill online. After that, the online payment window

opens asking for the details of the customers that is, the ID and the password. The bank

prepares the MIS and provides to the CAD. CAD prepares the POS report and passes on the

information to the finance. The finance checks the credit in the bank and passes the entry.

Bank account ……..Dr.

To Subscribers account

C) CHEQUES

Customer can pay their bills by dropping the cheque in drop box of any location in Delhi and

NCR. Bank clears all drop boxes on daily basis. Airtel has already provided data base for the

post-paid subscriber to the bank. Bank prepares the LBX file for the cheque for the bill

payment, which is same as the MIS statement. While preparing the LBX file, the bank person

checks that all the details on the cheque are correct. Bank excludes all those cheques which

have incomplete details. Bank passes on the LBX file to the company. CAD prepares the

POS report for the same and passes to the finance. The finance checks the amount in the bank

and passes the entry.

45

Bank account…….Dr.

To Subscribers account

CHEQUE BOUNCING PROCESS

The cheques through which the customer makes the payment are sometimes bounced. For,

the same bank provides the cheque bouncing MIS on the daily basis to CAD. CAD reverses

all the bounce cheques in the POS report and all the details relating to the cheque bounce are

intimated to finance. The finance department after receiving the information passes the entry

Subscribers account……….Dr.

To Bank account

46

CHAPTER -4

RESEARCH METHODOLOGY

47

Now after going through the conceptual support required for understanding the project, a

methodology has to be prepared for how to complete the project successfully.

4.1)RESEARCH DESIGN

The research Designs adopted in this study are Exploratory and Causal.

Exploratory Research Design has been use

• To gain background information

• To define terms

• To clarify problems

• To develop questions to be answered

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

by me (as a dependent variable)extraneous variables.

4.2)DATA COLLECTION

This research work has been completed on the basis of secondary data only as no instrument

for primary data collection is used.

Secondary Data has been collected from the company, where all the data

of “Daily Cash Forecast” and “ Daily Actual Cash Flow Statement” has been provided Apart

of this Experience Surveys, various printed materials from internal and external sources are

used.

48

4.3)PROJECT METHODOLOGY

The methodology adopted for the accomplishment of project is explained in the below

enlisted steps-:

Step 1-: The excel base calculation structure of Daily Cash Forecast was provided to me for

the month of April-2011.

Step 2-: The process of forecasting and the process of collection for each bank was described

by my mentor ,.

Step3:- I Understood the approach adopted by the employee for forecasting the cash inflow

via various modes.

Step 4:- After that I calculated the deviation and the interest loss bank wise for April 2011 .

Step 5:- After that I calculated the deviation and interest loss for the month of May 2009.

Step 6-: Then I found out the trend and the reasons behind this deviation.

On the basis of this result some suggestion were applied for the pre-paid and the deviation

was calculated for the month of June And the big improvement was seen.

4.4)LOCALE OF THE PROJECT

There are 23 Circle Offices of Bharti Airtel across India and one Corporate Office located in

Gurgaon, Cyber Park. There are three divisions of Bharti Airtel Ltd. Mobile services,

Telemedia services and Enterprise services. The project is conducted over the Delhi circle

pertaining to Mobility division of Bharti Airtel Ltd. Deviation between Forecasted Vs Actual

is minimized.

49

CHAPTER-5

DATA ANALYSIS

50

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

SCB Rs.Mn. Rs.MonthApril Day Forecast Actual Deviation Interest

1 Wed2 Thu 1.90 4.61 2.71 4453 Fri - - - -4 Sat 1.80 1.99 0.19 315 Sun - - - -6 Mon 2.30 1.67 (0.63) 1777 Tue - - - -8 Wed 2.30 7.65 5.35 8799 Thu 2.30 1.59 (0.71) 19910 Fri - - - -11 Sat 1.80 2.23 0.43 7112 Sun - - - -13 Mon 2.40 2.72 0.32 5314 Tue - - - -15 Wed 2.40 4.32 1.92 31616 Thu 2.40 2.11 (0.29) 7717 Fri 2.40 1.98 (0.42) 11218 Sat 2.30 1.79 (0.51) 13619 Sun - - - -20 Mon 2.20 1.89 (0.31) 8321 Tue 2.50 2.04 (0.46) 12322 Wed 2.60 1.76 (0.84) 22423 Thu 2.40 1.76 (0.64) 17124 Fri 2.20 2.05 (0.15) 4025 Sat 1.80 1.53 (0.27) 7226 Sun - - - -27 Mon 2.40 2.17 (0.23) 6128 Tue 2.30 2.84 0.54 8929 Wed 2.30 1.86 (0.44) 11830 Thu 2.30 2.20 (0.10) 27

Total Interest loss =3,487

For SBC Bank interest loss formula is-

=ABS (IF(D<0,D*10.25% /365*1000000, D*6% /365* 1000000)) (D represents Deviation)

51

GRAPHICAL EVALUATION:-

5.A.1.1)-

5.A.1.2)

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

52

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

CITI BANK Rs.Mn. Rs.

Month

April Day Forecast Actual Deviation Interest

1 Wed - -2 Thu 65.00 101.18 36.18 5,9473 Fri - - - -4 Sat 8.00 17.16 9.16 1,5065 Sun - - - -6 Mon 80.00 92.39 12.39 2,0377 Tue - - -8 Wed 65.00 69.72 4.72 7769 Thu 100.00 90.21 (9.79) 3,889

10 Fri - - - -11 Sat 25.00 19.04 (5.96) 2,36812 Sun - - - -13 Mon 75.00 89.47 14.47 2,37914 Tue - - - -15 Wed 75.00 74.50 (0.50) 19916 Thu 65.00 49.42 (15.58) 6,18917 Fri 65.00 66.71 1.71 28118 Sat 10.00 8.15 (1.85) 73519 Sun - - - -20 Mon 65.00 65.60 0.60 9921 Tue 65.00 40.04 (24.96) 9,91622 Wed 65.00 47.64 (17.36) 6,89623 Thu 65.00 42.89 (22.11) 8,78324 Fri 65.00 62.05 (2.95) 1,17225 Sat 10.00 9.04 (0.96) 38126 Sun - - - -27 Mon 65.00 61.10 (3.90) 1,54928 Tue 65.00 61.46 (3.54) 1,40629 Wed 65.00 45.17 (19.83) 7,87830 Thu 65.00 40.65 (24.35) 9,673

Total Interest Loss = 74,059

For CITI Bank interest loss formula is-

=ABS (IF(D<0,D*14.50% /365*1000000, D*6% /365* 1000000)) (D represents Deviation)

53

GRAPHICAL EVALUATION:-

5.A.2.1)-

5.A.2.2)-

From the graph it is clear that on 2nd, 4th , 6th, 11th, 13th, 16th, 21st, 22nd, 23rd, 24th, 27th, 28th, 29thand on 30th April there occurred the max. Deviation , hence Airtel had suffered interest loss of =

71,589 Rs. On the particular days.

5.A.3) INTEREST LOSS BEARED BY AIRTEL ON DEUTSCHE BANK COLLECTION:-

54

Deutsche Bank Rs.Mn. Rs.

MonthApril Day Forecast Actual Deviation Interest

1 Wed2 Thu 1.00 4.24 3.24 5333 Fri - - - 04 Sat 1.00 0.75 (0.25) 925 Sun - - - 06 Mon 1.00 6.23 5.23 8607 Tue 08 Wed 1.00 17.09 16.09 26459 Thu 1.00 4.60 3.60 592

10 Fri - - - 011 Sat 1.00 6.21 5.21 85612 Sun - - - 013 Mon 1.00 1.94 0.94 15514 Tue - - - 015 Wed 1.00 13.86 12.86 211416 Thu 1.00 4.32 3.32 54617 Fri 1.00 58.66 57.66 947818 Sat 1.00 0.27 (0.73) 27019 Sun - - - 020 Mon 1.00 0.77 (0.23) 8521 Tue 1.00 24.25 23.25 382222 Wed 1.00 4.14 3.14 51623 Thu 1.00 1.50 0.50 8224 Fri 1.00 5.43 4.43 72825 Sat 1.00 17.31 16.31 268126 Sun - - - 027 Mon 1.00 1.27 0.27 4428 Tue 1.00 0.17 (0.83) 30729 Wed 1.00 2.85 1.85 30430 Thu 1.00 2.78 1.78 293

Total Interest Loss = 27,003

For DEUTSCHE Bank interest loss formula is-

=ABS (IF(D<0,D*13.5% /365*1000000, D*6% /365* 1000000)) (D represents Deviation)

GRAPHICAL EVALUATION:-

5.A.3.1)-

55

5.A.3.2)-

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

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

56

HDFC Bank Rs. Mn. Rs .

57

Month

April Day Forecast Actual Deviation Interest

1 Wed - - - 02 Thu 7.00 36.19 29.19 95973 Fri - - - 04 Sat 7.00 4.71 (2.29) 3765 Sun - - - 06 Mon 7.00 7.79 0.79 2607 Tue - 08 Wed 7.00 7.66 0.66 2179 Thu 7.00 0.68 (6.32) 1039

10 Fri - - - 011 Sat 7.00 1.36 (5.64) 92712 Sun - - - 013 Mon 7.00 3.80 (3.20) 52614 Tue - - - 015 Wed 15.30 11.89 (3.41) 56116 Thu 20.00 15.30 (4.70) 77317 Fri 7.00 1.57 (5.43) 89318 Sat 1.70 3.30 1.60 52619 Sun - - - 020 Mon 17.50 17.33 (0.17) 2821 Tue 7.00 11.30 4.30 141422 Wed 7.00 1.12 (5.88) 96723 Thu 7.00 26.05 19.05 626324 Fri 34.01 13.90 (20.11) 330625 Sat 7.00 0.03 (6.97) 114626 Sun - - - 027 Mon 7.00 1.18 (5.82) 95728 Tue 16.10 23.37 7.27 239029 Wed 13.00 26.78 13.78 453030 Thu 7.00 4.85 (2.15) 353

Total Interest Loss = 37,047

For CITI Bank interest loss formula is-

=ABS (IF(D<0,D*6% /365*1000000, D*12% /365* 1000000)) (D represents Deviation)

GRAPHICAL EVALUATION:-

5.A.4.1)-

58

5.A.4.2)-

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

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

59

ICICI Bank Rs. Mn. Rs.

60

Month

April Day Forecast Actual Deviation Interest

1 Wed - - -2 Thu 35.00 39.18 4.18 6873 Fri - - -4 Sat 30.00 25.66 (4.34) 1,5755 Sun - - - -6 Mon 35.00 57.44 22.44 3,6897 Tue - -8 Wed 35.00 33.37 (1.63) 5929 Thu 40.00 25.70 (14.30) 5,191

10 Fri - - - -11 Sat 30.00 29.57 (0.43) 15612 Sun - - - -13 Mon 35.00 26.40 (8.60) 3,12214 Tue - - - -15 Wed 35.00 54.57 19.57 3,21716 Thu 35.00 22.81 (12.19) 4,42517 Fri 35.00 19.04 (15.96) 5,79418 Sat 30.00 43.33 13.33 2,19119 Sun - - - -20 Mon 29.00 25.78 (3.22) 1,16921 Tue 32.00 25.60 (6.40) 2,32322 Wed 32.00 33.91 1.91 31423 Thu 35.00 29.22 (5.78) 2,09824 Fri 35.00 39.49 4.49 73825 Sat 30.00 43.45 13.45 2,21126 Sun - - - -27 Mon 35.00 38.78 3.78 62128 Tue 35.00 36.11 1.11 18229 Wed 35.00 34.37 (0.63) 22930 Thu 35.00 24.23 (10.77) 3,910

Total Interest Loss = 44,434.86

For ICICI Bank interest loss formula is-

=ABS (IF(D<0,D*13.25% /365*1000000, D*6% /365* 1000000)) (D represents Deviation)

GRAPHICAL EVALUATION:-

61

5.A.5.1)-

5.A.5.2)-

From the graph it is clear that on 4th , 6th, 9th, 13th,15th , 16th,17th ,18th , 20th , 21st, 23rd, 25th and on 30th April there occurred the max. Deviation , hence Airtel had suffered interest loss of =

37,227 Rs. On the particular days.

TOTAL INTEREST LOSS BEARED BY AIRTEL IN THE MONTH OF APRIL=

= ( 3,487 + 74,059+ 27003+ 37047+ 44,434) =1,86031 Rs.

62

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

CITI BANKApril May April MayRow Labels Row Labels Row Labels Row Labels

Sun Sun Sun Sun0 - 0 0

Mon Mon Mon Mon0.23 - 0.6 5.50.31 0.20 3.9 6.60.32 0.40 12.39 8.60.63 0.50 14.47 20.1

Tue Tue Tue Tue0 0.10 0 6.60.46 0.30 3.54 20.30.54 0.40 24.96 20.9

Wed Wed Wed 24.70 - 0.5 Wed0.44 0.20 4.72 3.50.84 0.30 17.36 6.51.92 0.70 19.83 17.85.35 Thu (blank) 31.9

Thu - Thu Thu0.1 0.10 9.79 2.50.29 0.10 15.58 00.64 1.20 22.11 20.20.71 Fri 24.35 23.72.71 - 36.18 Fri

Fri 0.20 Fri 1.60 0.30 0 6.20.15 0.30 1.71 7.90.42 0.70 2.95 14.4

Sat Sat Sat 15.90.19 - 0.96 Sat0.27 0.10 1.85 50.43 0.40 5.96 0.20.51 0.90 9.16 3.2

Grand Total 0.90 Grand Total 3.2(blank) 8.3

- (blank)Grand Total (blank)

SC BANK

The yellow box indicate major deviations

63

April May April May April MayRow Labels Row Labels Row Labels Row Labels Row Labels Row Labels

Sun Sun Sun Sun Sun Sun0 0 0 0 - 0

Mon (blank) Mon Mon Mon Mon0 Mon 0.17 5.6 3.22 2.10.27 1.2 0.79 8 3.78 6.50.94 3.2 3.2 12.4 8.60 11.75.23 4.6 5.82 12.5 22.44 16.5

Tue 36 Tue Tue Tue Tue0 Tue 0 3.9 - 0.40.83 0.6 4.3 4.6 1.11 12.623.25 1.4 7.27 6.2 6.40 14.8(blank) 3.2 Wed 8.9 Wed 17.9

Wed 5.2 0 Wed - Wed1.85 Wed 0.66 1.7 0.63 0.33.14 0.5 3.41 1.9 1.63 2.112.86 0.8 5.88 11.7 1.91 8.816.09 1.5 13.78 28.6 19.57 16.8(blank) 6.7 Thu Thu Thu Thu

Thu Thu 2.15 0 4.18 1.50.5 0.9 4.7 1.9 5.78 2.41.78 1 6.32 2.8 10.77 2.63.24 5.2 19.05 3.2 12.19 143.32 10.5 29.19 Fri 14.30 Fri3.6 Fri Fri 0.1 Fri 3.1

Fri 1.4 0 2.9 - 5.30 3.3 5.43 6.5 4.49 6.24.43 3.7 20.11 13.2 15.96 15.857.66 16.7 Sat 15.7 Sat 31.6

Sat 19.6 1.6 Sat 0.43 Sat0.25 Sat 2.29 3.4 4.34 00.73 0 5.64 3.5 13.33 2.55.21 0.1 6.97 4.2 13.45 816.31 0.2 Grand Total 7.6 Grand Total 8.9

Grand Total (blank) 17 22.8(blank) (blank) (blank)

Deutsche bank HDFC BANK ICICI BANK

From the above study it is clear that in case of SCB there occur very less deviation, But as for as

CITI BANK is concern mainly deviation has been occurred on Tuesday, Thursday and on

Wednesday. In HDFC Bank the major deviation occurred on Monday, Tuesday ,Friday and on

Saturday in the month of May. But In ICICI Bank there was no trend In this bank both months

gave different figures, But the one thing I got was the Major Deviations occurred after 2 nd half of

each month. i.e. after 12th ,13th …… of each month. Hence I decided to find out a trend on the

basis of Actual cash inflow Day wise .

5.C)Trend of Cash Inflow:-

64

Mon 92.39 Tue Wed 69.72 Mon 89.47 Tue Wed 74.50 Mon 65.60 Tue 40.04 Wed 47.64 Mon 61.10 Tue 61.46 Wed 45.17 Mon 70.50 Tue 44.10 Wed 58.50 Mon 85.10 Tue 44.70 Wed 47.20 Mon 58.40 Tue 40.30 Wed 33.10 Mon 56.40 Tue 45.60 Wed 58.50

Thu 101.18 Fri Sat 17.16 Thu 90.21 Fri 66.71 Sat 19.04 Thu 49.42 Fri 62.05 Sat 8.15 Thu 42.89 Fri 49.10 Sat 9.04 Thu 40.65 Fri 66.60 Sat 9.80 Thu 44.80 Fri 57.10 Sat 15.30 Thu 41.30 Fri 58.80 Sat 11.20 Thu 47.80 Fri 62.40 Sat 13.20

This data has been taken from the actual cash in flow on each day for the month of April-2009

and May-2009.From the above study I got a result that the Pre-paid executive should give the

forecast on an average basis .The avg. for each day is as follow:-

Monday:- 62Mn. Wednesday:- 55Mn. Friday:- 63Mn.

Tuesday:- 45Mn. Thursday:- 44Mn. Saturday:- 11Mn.

65

CHAPTER-6

CONCLUSION

66

Bharti Airtel is a the most revenue generating source of Bharti. So it is the responsibility of

Airtel to Maximize its Profit.

Airtel not only generate the income from Pre-Paid, Post-Paid , Lapu and

Roaming But it also earn a the profit by investing this money for short term. So Airtel has to

forecast the collection so that it can invest in such a manner that it will have to bear minimum

interest loss. Because it is not easy to estimate that how many people will get there phone

recharged and how many post paid customers will be paying the bill on the next day and on

what via?

There are various modes of bill payment , which is very convenient for

the customers but it has become complicated for Airtel to forecast. Airtel has assigned

different banks for different modes of the payment collection.

From the above study I have concluded that in the month of April2011 Airtel suffered

interest loss of amount = 1,86031.86 Rs.

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This is the interest loss only for the month of April 2011,and only from

the five banks but Airtel president office handles nearly tow hundred banks and suffers the

interest loss nearly on Eight hundred million (800,000,000) yearly.

few observations are and resultants are as follow:-

There is not a proper communication between prepaid forecast Executive and Sales

Manager of Airtel.

There should be some follow –up or trend to fore cast.

One of the way for payment for Post-Paid is through cheque ,due to which a big

Difference accrue as it is not decided that in how many days the cheque will clear.

The big deviation accrue due to payment through Credit card . Because Different

Banks have different payment days .It is clear from the above study that the most

deviation accrue in CITI Bank which collects the credit card payments.

The cash clearing days for different Banks are as follow:-

ICICI- 3 business days

HDFC-2 business days

DB - 2 business days

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UTI - 4 to 7 business days

SBI - 2 to 3 business days

PNB - 5 business days

There is not proper audit of ARC’s. the audit takes place once in a month.

In case of IUC and Roaming it is not certain that on what date the other telecom industries

will do the payment. due to this also Airtel has to bear a big deviation.

There is a midway agency i.e. MACK (whose work is to flow the information from one

telecom industry to another about the roaming collection) do not flow the information to the

Airtel.

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CHAPTER-7

RECOMMENDATIONS :-

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After the research I have reached to following recommendations:-

There should be a proper information flow between prepaid forecast Executive and

Sales manager of Airtel. Sales Manager should send the right collections from all

sources.

For pre-paid forecast the forecast should follow the follow-up as below:-

Monday:- 62Mn. Wednesday:- 55Mn. Friday:- 63Mn.

Tuesday:- 45Mn. Thursday:- 44Mn. Saturday:- 11Mn.

The Pre-paid executive followed the above trend and interest loss have become 1/10 of

previous trend.

The cheque should be categorized in to 3 category:-

(i) High value (Which clears in 2 days)

(ii) Local cheque (which clear on next day)

(iii) Outstation (which clear in 3to 7 days)

If the cheques will be categorized then it would be easy to forecast that how much cash

would be collected on next day.

As different customers have different bank’s credit card , hence There should be the fix

cash clearing time through the all credit cards, as per the law Or on the requirement of the

company.

There should be audit of the ARC’s on weekly basis.

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There should be a proper follow up or the other telecom industries should inform in

advance that on what date it is going for payment for IUC and Roaming. Mack should flow

the information in the advance. So that it will be easy for Airtel to minimize the deviation.

CHAPTER-8

REFERENCES

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Websites:-

www.airtel.in

www.google.com

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

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CHAPTER-9

APPENDICES

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Daily Cash Forecast-Airtel:-

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Daily Actual Cash Flow Statement:-

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ABBREVIATIONS

ARC Airtel Relationship Center

POS Payment Online System

PSBC Pre Signed Bank Cheque

CAD Customer Accounting Department

DCR Daily collection Report

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