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A

REPORT

ON

RELIANCE JIO INFOCOMM LIMITED


BHARTI AIRTEL LIMITED

SUBMITTED BY

VISHNU DHANRAJ , VAIBHAV KUMAR


SHIVAM TRIPATHI, SHUBHAM SHIRKE, PRATHMESH
KULKARNI

ROLL NOs:
178, 176
166, 111, 78

SUBMITTED TO: Prof. Shraddha Shinde

Dr. D. Y. Patil Unitech Society's


Dr. D. Y. Patil Institute of Management & Research,
Sant Tukaram Nagar, Pimpri, Pune – 411018

In the partial fulfillment of the requirements for the subject


Enterprise Analysis - Desk Research (115)

BATCH 2018- 20

1
STUDENT DECLARATION

We the undersigned hereby declare that the project report


titled RELIANCE JIO INFOCOMMLTD And BHARTI AIRTEL
LTD.which has been submitted by us to DYPIM, in partial
fulfillment of requirement for the Enterprise Analysis - Desk
Research (115) under the guidance of Prof. Shraddha Shinde, is an
original work of the undersigned and has not been reproduced from
any other source.

Vishnu Dhanraj Vaibhav Kumar Shivam Tripathi

Shubham Shirke Prathmesh kulkarni

Date: OCTOBER 24th, 2018

Place: Pimpri, PUNE

2
INDEX

Sr. Topic / Title Page


No no

1 Chapter 1: Enterprise History & Background 4 – 12

2 Chapter 2 : Organizations 13 – 24

3 Chapter 3 : Markets 25 - 45

4 Chapter 4 : Financials 45 – 68

5 Chapter 5: Governance 69 – 85

BIBLIOGRAPHY - (List of reference books / articles , 86


journals , web-sites etc. used)

3
ENTERPRISE
HISTORY
&
BACKGROUND

RELIANCE JIO INFOCOM LIMITED

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In June 2010, Reliance Industries (RIL) bought a 96% stake in Infotel Broadband
Services Limited (IBSL) for ₹4,800 crore (US$670 million). Although unlisted, IBSL
was the only company that won broadband spectrum in all 22 circles in India in the 4G
auction that took place earlier that year.[7] Later continuing as RIL's telecom subsidiary,
Infotel Broadband Services Limited was renamed as Reliance Jio Infocomm Limited
(RJIL) in January 2013.[8]

In June 2015, Jio announced that it would start its operations all over the country by the
end of 2015.[9] However, four months later in October, the company's spokesmen sent out
a press release stating that the launch was postponed to the first quarter of the financial
year 2016–2017.[10]

Later in July, a PIL filed in the Supreme Court by an NGO called the Centre for Public
Interest Litigation, through Prashant Bhushan, challenged the grant of pan-India license
to Jio by the Government of India. The PIL also alleged that Jio was allowed to provide
voice telephony along with its 4G data service, by paying an additional fees of
just ₹165.8 crore (US$23 million) which was arbitrary and unreasonable, and contributed
to a loss of ₹2,284.2 crore (US$320 million) to the exchequer.[11][12]

The Indian Department of Telecom (DoT), however, refuted all of CAG's claims. In its
statement, DoT explained that the rules for 3G and BWA spectrum didn't restrict BWA
winners from providing voice telephony. As a result, the PIL was revoked, and the
accusations were dismissed.[13]

 ESTABLISHMENT

 15 feb. 2007
 PARENT ORGANIZATION

o Reliance Industries

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 INDUSTRY

Telecommunication

 PROMOTERS AND CHAIRMAN

o Mukesh Ambani

CIN NO. U72900MH2007PLC234712


PAN Number AABCI6363G
CIN NO.- Cin number is basically the corporate identification number(CIN). When
company is incorporated
a unique number is given to the company for identification purpose. The
number itself gives the
meaning that weather it is a public ltd. Company or private ltd. Company and
where the main
headquarters are and what is the registration number.

PROMOTERS AND BUSINESS GROUPS

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INDUSTRY - TELECOMMUNICATION INDUSTRY.

PARENT ORGANISATION - RELIANCE INDUSTRIES.

PROMOTER AND CHAIRMAN - MUKESH AMBANI.

SUBSIDIARIES - LYF.

MISSION AND RELIANCE JIO VISION OF

MISSION :

“Reliance’s activities shall be of benefits for both our clients, collaboration partner,

Employees and shareholders.”

VISION :

“ To be our clientsfirst call and preferred collaboration partners within our business
areas.”“To consistently exceed our clients expectations for professional and value-adding
advice”

BOARD OF DIRECTORS

MUKESH AMBANI- CHAIRMAN

SANJAY MASHRUWALA-MANAGING DIRECTOR(M.D)

MATHEW OOMMEN-PRESIDENT OF NETWORK

ADIL ZAINULBHAI-MEMBER OF B.O.D

MAHENDRA NAHATA-MEMBER OF B.O.D

PANKAJ PAWAR-MEMBER OF B.O.D

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MANOJ MODI-MEMBER OF B.O.D

AKASH AMBANI-MEMBER OF B.O.D

ISHA AMBANI-MEMBER OF B.O.D

DIPAK JAIN-MEMBER OF B.O.D

MOHANBIR SAWHNEY-MEMBER OF B.O.D

RANJIT PANDIT-MEMBER OF B.O.D

SHUMEET BANERJII-MEMBER OF B.O.D

CORPORATE SOCIAL RESPONCIBILITY


The Ministry of Corporate Affairs has notified Section 135 and Schedule VII of the Companies Act
2013 as well as the provisions of the Companies (Corporate Social Responsibility Policy) Rules,
2014 to come into effect from April 1, 2014.

With effect from April 1, 2014, every company, private limited or public limited, which either has
a net worth of Rs 500 crore or a turnover of Rs 1,000 crore or net profit of Rs 5 crore, needs to
spend at least 2% of its average net profit for the immediately preceding three financial years on
corporate social responsibility activities.

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CSR ACTIVITIES OF RELIANCE JIO

 RELIANCE JIO OFFERS 4G TO TRAFFIC POLICE AS PER


CSR ACTIVITY

Much awaited 4G internet facility has been started in he city by reliance


jioinfocom ltd. As its csr activity.

The company is offering its services free of cost to the traffic departments.its
plan is to extend its reach to

Government hospitals and schools.

 ENVIRONMENT PROTECTION DRIVES

Environmental impact assessment and qualitative risk analysis are central to all our new
projects.

We have converted areas of arid land into major green zones.

 WOMEN AND YOUTH EMPOWERMENT PROGRAMMES

Reliance nurtures and sponcers many project designed to educate, employ

And empower women and youth in and around the catchment areas of its

Operations.

 RELIANCE HIV/DOTS THERAPY CENTRE

This centres programme for the underprivileged is run with the support from

Various governmental and non-governmental organizations.

9
BHARTI AIRTEL LIMITED
From the humble beginnings in the Indian telecom industry in 1986; Airtel has its roots in
Bharti Telecom Limited. Founded in 1986 by Sunil Bharti Mittal, the company was the
first in India to offer push button telephones, when the rest of the country was still using
rotary phones. The first partnership they had was with Siemens AG of Germany, and they
started making push-button landlines in India rather than importing it from Taiwan, as it
used to be before.The company then went on to launch various telecom technologies to
the Indian market and had innovation at its heart. Going on to acquire license to build a
cellular network in Delhi, Bharti Telecom Limited laid the ground work for the mobile
operations of the company in the year 1992. It began operations in Delhi in the year 1995
as Bharti Tele-Ventures. The service was extended to various other states by various
acquisitions and partnerships. Founder

 ESTABLISHMENT

7 July 1995

 PARENT ORGANIZATION
 Bharti Enterprises
 INDUSTRY
 Telecommunication
 PROMOTERS AND CHAIRMAN

Sunil Bharti Mittal

CIN NUMBER- L74899DL1995PLC070609

PAN NUMBER- AAACB2894C

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PROMOTERS AND CHAIRMAN

CHAIRMAN - Sunil bharti mittal

MANAGING DIRECTOR - Gopi vital

• BOARD MEMBERS-

• FAISAL THANI

• BERNARDUS JOHANNES

• SHISHIR PRIYADARSHI

• CRAIG EDWARD

• DINESH KUMAR MITTAL

• RAKESH BHARTI MITTAL

• VEGULLAPA KASI

• MANISH KEJRIWAL

• TAN YONG CHOO

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MISSION

“ Hunger to win customer for life.”

VISION

“ to enrich the lives of our


customers. Our obsession is to win
customers for life through an
exceptional experience”

CSR ACTIVITY OF BHARTI AIRTEL

Satya Bharti Abhiyan


Bharti Foundation launched the Satya Bharti Abhiyan to improve sanitation
facilities in rural Ludhiana district and support the Governments agenda of
Swachh Bharat Mission. Through this initiative, it provides individual toilets in
households lacking suc h facilities, across 900+ villages.
*E-waste
The increasing volume of waste generated by the telecommunication sector has
been a matter of grave concern. Airtel, as one of the leading companies of
telecommunication sector, manages both physical and e-waste, generated from its
premises. The Company has adopted a proactive approach by ensuring end-to-end
traceability and recycling of waste. Airtel continuously monitors the waste
generation at each stage, and track the procedure of waste disposal.
Young Leader Program
It is a two-week program (part of corporate induction) in which new team
members of Bharti Airtel engage as volunteers to support various initiatives of
Bharti Foundation. This year 43 Young Leaders volunteered in 43 Satya Bharti
Schools in Punjab, Haryana and Uttar Pradesh.

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ORGANIZATIO
N STRUCTURE

1. ORGANIZATION STRUCTURE
2. FOOT PRINT
3. HEADQUARTERS

13
4. CORPORATE OFFICE IN INDIA
5. PARNET COMPANY
6. CERTIFICATION

ORGANIZATION STRUCTURE

Organizational structure is a system used to define a hierarchy within an


organization. It identifies each job, its function and where it reports to within the
organization. This structure is developed to establish how an organization
operates and assists an organization in obtaining its goals to allow for future
growth. The structure is illustrated using an organizational chart.

TYEPS OF ORGANIZATION STRUCTURE

1. Functional

Also commonly called a bureaucratic organizational structure, the functional structure


divides the company based on specialty. This is your traditional business with a sales
department, marketing department, customer service department, etc.

The advantage of a functional structure is that individuals are dedicated to a single


function. These clearly defined roles and expectations limit confusion. The downside is
that it’s challenging to facilitate strong communication between different departments

2. Divisional

The divisional structure refers to companies that structure leadership according to


different products or projects. Gap Inc. is a perfect example of this. While Gap is the
company, there are three different retailers underneath the heading: Gap, Old Navy, and
Banana Republic. Each operates as an individual company, but they are all ultimately
underneath the Gap Inc. brand.Another good example is GE, which owns dozens of
different companies, brands, and assets across many industries. GE is the larger brand,
but each division functions as its own company. While somewhat dated and

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abbreviated, this diagram gives you an idea of what GE’s basic organizational structure
looks like.

3. Matrix

The matrix structure is a bit more confusing, but pulls advantages from a couple of
different formats. Under this structure, employees have multiple bosses and reporting
lines. Not only do they report to a divisional manager, but they also typically have project
managers for specific projects

While matrix structures come with a lot of flexibility and balanced decision-making, this
model is also prone to confusion and complications when employees are asked to fulfill
conflicting responsibilities.

4. Flatarchy

While large businesses have traditionally followed a tall structure, it’s becoming
increasingly common to see flatarchies in smaller businesses and new startups.

“Unlike the traditional hierarchy which typically sees one-way communication and
everyone at the top with all the information and power, a ‘flatter’ structure seeks
to open up the lines of communication and collaboration while removing layers
within the organization.

This flatarchy structure essentially removes unnecessary levels and spreads


power across multiple positions. This leads to better decision-making, but can
also be confusing and cumbersome when everyone doesn’t agree. In other
words, it comes with pros and cons just like the other structures

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AIRTEL

16
RELIANCE JIO

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OOTPRINT OF BHARTI AIRTEL

Presence in 17 countries in Asia and Africa

AFRICA

1. KENYA
2. GHANA
3. SIERRA LEONE
4. TANZANIA
5. ZAMBIA
6. UGANDA
7. MALAWI
8. DRC
9. NIGER
10. BURKINA FASO
11. GABON
12. CHAND
13. CONGO B
14. MADAGSCAR
15. SEYCHELLES
16. NIGERIA
17. AFRICA HQ
18. RWANDA

ASIA

1. INDIA
2. BANGLADESH
3. SHRILANKA

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HEADQUARTERS\CORPORATE OFFICEOF RELIANCE JIO

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HEADQUARTERS\ CORPORATE OFFICE OF BHARTI
AIRTEL

PARENT COMPANY

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A parent company is a company that has a controlling interest in
another company, giving it control of its operations. Parent companies can be
either hands-on or hands-off owners of its subsidiaries, depending on the amount
of managerial control given to subsidiary managers

SUBSIDIARY COMPANY
A subsidiary company is a company owned and controlled by
another company. ... A subsidiary's parent company may be the sole owner or
one of several owners. If a parent company or holding company owns 100% of
another company, that company is called a "wholly owned subsidiary."

HOLDING COMPANY
A holding company is a company that owns other companies' outstanding stock.
A holding company usually does not produce goods or services itself; rather, its
purpose is to own shares of other companies to form a corporate group

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CERTIFICATION

ISO 9001:2008 became obsolete effective September 2018 and was replaced by ISO
9001:2015.  9001:2015 is the standard that outlines the requirements an organization
must maintain in their quality system for ISO 9001:2015 certification. There are several
different documents in the ISO 9000 family of standards, but ISO 9001 is the only ISO
standard that requires certification

Reliance Infocomm Bags Iso 9001


Driven by its customer care commitment, Reliance Infocomm has achieved yet another
feat - the company has conferred with ISO 9001 certification for its billing processes with
the objective of making the billing experience for its over 1 crore customers almost zero
error free. Thus, Reliance Infocomm has become the first Indian telecom operator to
achieve this international process quality hallmark certification. What’s more, Reliance
Infocomm bagged this certification in a period of less than four months beginning
December 2004.

Reliance Infocomm has also implemented six-sigma process which along with the ISO
9001 means that Reliance IndiaMobile customers will get their monthly telephone bills
on schedule and they are charged the correct amount for their phone usage – all with the
utmost levels of speed and efficiency

Every telecom operator has had to live with the reality of teething problems with billing
issues while scaling-up customer acquisitions, which is a cause of inconvenience to
customers on issues pertaining to monthly billings.

With its aggressive customer acquisition drive, Reliance Infocomm too was not an
exception to this. But it has faced the issues head on and has risen splendidly to the
challenging situation, speedily correcting the lacunae in its billing processes and systems.
A senior official of the company said, “It was indeed an overwhelming experience last
year when our marketing and distribution strategies resulted in huge customer

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acquisition. Although, the company has huge installed network capacity to meet such
high traffic, nevertheless our customers unfortunately experienced some teething
problems on the billing front.”

“We established a core team of senior officials across the country to identify and rectify
all possible lacunae in our billing processes and systems”, the official explained. To give
the best possible service to our customers, we implemented six-sigma with one aim:
“Zero defect and timely bill delivery to customer. The results are indeed encouraging.”
Thus, the Indian CDMA telecom major has set bench marks for other telecom operators
to follow suit.

BHARTI AIRTEL COMPANY CERTIFICATION

BANGALORE/NEW DELHI: India's biggest mobile phone firm Bharti Airtel has
become one of the first enterprises globally to have received ISO 27001 certification for
its information security management system, across300locations and over 40,000
information assets.

The certification will help the company become India's most trusted brand by 2010, said
Jai Menon, director customer service and technology of Bharti Airtel. "As we expand
beyond traditional voice-based services to areas such as mobile commerce, ISO 27001
will play a critical role," he said. 

The ISO 27001 standard replaced BS7799 few years ago, which had over 2,500
organisations worldwide certified against it. 

Bharti has almost 2,500 computer servers and around 2,500 terabytes of data. "Apart
from securing digital data, we are also including physical data security as part of this
initiative," Mr Menon added. Bharti started rolling out its comprehensive information
security policy in 2003, received its first certifications two years ago. "We will need to
sustain this intiative through continued compliance," he said.

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"While it took tremendous involvement from the entire organisation to achieve this feat,
what makes it extra special is the sheer extent of its scope, which encompassed all the
strategic Business units of Bharti Airtel, viz. all the circles of mobile services and all the
hubs of both, Telemedia Services and Enterprise Services. 

The scope also included all Data Centers, network zones, landing stations, switch
locations and Airtel Center. The geographical extent of the scope covered around 300
locations spread across the entire country. In terms of personnel, the scope covered all the
employees of Bharti Airtel," Mr Menon added.

The telco said that it has been awarded awarded 29 ISO 27001:2005 certificates by the
British Standards Institute. According to the data available in the International Register of
ISMS Certificates, this is the largest number of ISO 27001:2005 certificates awarded to
any single company in India across all sectors and one of the largest in the world.

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Marketing

25
Reliance Jio

Products of jio :-

Wireless router – JioFi

Transfer content – JioSwitch

Wallet app – JioMoney Wallet

Backup tool that is cloud based – JioDrive

Magazines and news aggregator – JioExpressNews

Magazine E- Reader – JioMags

VoLTE phone – stimulator – Jio4GVoice

Music player – JioMusic

Instant – Messaging app – JioChat Messenger

HD online video library – Jiocimena

TV Channel live service – JioTV

Manage digital services and Jio account – MyJio

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Product line : Reliance Jio

1 :- Jiofi - The JioFi is a personal hotspot - the kind of thing you've seen some all mobile
carriers. The Reliance JioFi is a small device that will fit into your pocket, and acts as a
bridge between the 4G network and a local Wi-Fi network that it creates, which your
phone, laptop, and other devices can connect to. It's a very simple way of getting your
home online, and it comes with a rechargable battery - that means that you can plug it in
at home, or put it in your pocket and take your connection with you when you head out.

2 :- Jio Switch - Jio Switch being one of the most important features of the Jio Phone
allows a user to transfer files from an android mobille phone to the Jio phone or from an
Iphone to a Jio Phone or from a Jio Phone to another Jio Phone and vice versa.

3 :- Jiomoney Wallet -JioMoney is a semi-closed prepaid wallet that aims to enable


mobile-based transactions, where customers can store money and use it for purchasing
goods and services. With its Jio Money digital wallet, the company aims to enable mom-
and-pop shops to accept cashless payments through smartphones.

4 :- JioDrive- JioCloud is a cloud storage app for all your photos, videos, documents,
audio, contacts and messages. JioCloud lets you auto backup your content on cloud and
your content across all your devices. You can access your files from any smartphone,
computer or even your TV using JioCloud app.

5 :- JioXpress News - JioXpressNews provides breaking news in your preferred


language from leading news sources of India. Your one stop destination for all the latest
news updates from around the world. Get National News, Politics, World news, Local
news, Headlines, Cricket, Business, Bollywood & entertainment, Technology &
automobile on your mobile phone – anytime, anywhere on the go.

6 :- JioMags - The No.1 Magazine app in India with the most Premium and Popular
Magazines like PratiyogitaDarpan, Forbes India, India Today, Maxim, Filmfare, Current
Affairs, Fortune, AutoCar, Business Today, Champak, Grihshobha, India Today Hindi,

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Readers Digest, Chitralekha Gujarati, Vogue, Webuser, General Knowledge, Stardust
India.

7 :- Jio4GVoice - Jio4GVoice brings TRUE 4G/ VoLTE high-definition voice and video
calling on your existing 2G, 3G, 4G smartphone. You can use Jio4GVoice with a Jio SIM
either in the phone or in a JioFi connected to your phone. To turn your device from
‘smart’ to ‘super’ all you need is a Jio SIM... Jio4GVoice will do the rest.

8 :- JioMusic - JioMusic provides truly Unlimited Ad-Free access to HD music in your


favorite language without any barriers. Listen & Download your favorite HD Songs
without any additional charges unlike other music apps. Listen it anytime, anywhere.

9 :- JioChat Messenger - Experience enhanced messaging, high quality voice & video
calls. Express yourself in a fun way with instant videos, stickers, doodle and emoticons.
Follow channels from top brands to stay updated and enjoy bite-sized videos on Stories.

10:- JioCinema :- Your on-demand video streaming platform with over 1 lakh+ hours of
exciting content: Movies, TV Shows, Music videos, Clips, Trailers & more. Exclusively for Jio
users only.

11 :- JioTV - Enjoy the best of entertainment in your preferred language across English,
Hindi, Malayalam, Kannada, Tamil, Telugu, Bengali, Gujarati, Bhojpuri, Punjabi, Assamese,
Odia & Urdu with the best streaming quality. All of this is absolutely free.

12 :- MyJio - Recharge your Jio number, view real time balance, link & manage multiple
accounts and much more.

Market Share Of Reliance Jio

Reliance Jio third-largest telecom by revenue market share

Reliance JioInfocomm has become India’s third-largest telecom operator by revenue


market share, dislodging Kumar Birla-led Idea CellularNSE -3.23 % and closing in on
Vodafone India as its aggressive pricing strategy left rivals struggling.

28
Just 19 months since starting services, MukeshAmbani-controlled Jio’s revenue market
share widened to almost 20% as of March end, according to financial data put out by the
Telecom Regulatory Authority of India (Trai).

Jio, which started operations in September 2016 with a nationwide 4G network, reported
an over 18% sequential jump in adjusted gross revenue (including national long distance
revenue) to Rs 6,300 crore the quarter ended March, while Airtel, Vodafone India and
Idea suffered sequential falls of 5.5%, 4.8% and 8.8% on this score to Rs 10,100 crore,
Rs 6,700 crore and Rs 5,200 crore, respectively, ICICI Securities said in a note analysing
the data collated by Trai, a copy of which was seen by ET.

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Competit ors Of Reliance Jio

Bharti Airtel :-Bharti Airtel Limited is an Indian global telecommunications services


company based in New Delhi, India. It operates in 20 countries across South Asia and
Africa. Airtel provides GSM, 3G, 4G LTE and VoLTE mobile services, fixed line
broadband and voice services depending upon the country of operation.

Idea :-Vodafone Idea Limited is India's largest telecom operator, with its headquarter
based in Mumbai, Maharashtra. Vodafone Idea is a pan-India integrated GSM operator
offering 2G, 3G and 4G mobile services under two brands named Vodafone and Idea.

Vodafone :-Vodafone Group plc is a British multinational telecommunications


conglomerate, with headquarters in London. It predominantly operates services in the
regions of Asia, Africa, Europe, and Oceania. Among mobile operator groups globally,
Vodafone ranked 4th in the number of mobile customers as of 2018.

Advertising agency
McCann leads race for Reliance Jio ad account

The contours of one of the most anticipated telecom launches in India is slowly but
steadily falling in place. Ad agency McCann Worldgroup India is the front-runner in the
race to bag the advertising mandate for the Reliance Jio brand. The latter is the name of
the telecom business that MukeshAmbani proposes to launch in December this year.

Like most things in Reliance, the launch is expected to be a massive affair involving a
360-degree advertising and marketing campaign. Spends on promoting the Reliance Jio
brand alone is estimated to be nothing less than Rs 200-300 crore, persons in the know
say.

When contacted, Prasoon Joshi, chairman, McCann Worldgroup Asia-Pacific, declined to


comment on the issue. However, persons in the know say McCann has emerged the
favourite and that it is only a matter of time before the decision is made official.

Marketing Mix Of Reliance Jio :-

Product :- Reliance Jio is a network operator of mobiles and offers 4G LTE wireless
services. It does not offer 2G or 3G services and is the only operator to provide VoLTE-
only services. For the first time Reliance Jio launched beta services to its employees and

30
partners on December 27Th, 2015.The company launched commercial services in the
year 2016 5th September. It had a fiber-optic cable network of 250,000 km that partners
with local cable operators to receive broader connectivity for getting broadband services.
On 25th January 2016 LYF smartphones were introduced including Water 1 and later
Water 2, Flame 1 and Earth 1.

Place :-Reliance Jio is an Indian company with Pan-India presence. It has its headquarters
base at Navi Mumbai in Maharashtra. Reliance Jio has a strong and widespread
distribution channel. It is the owner of 1,800 MHz and 800 MHZ bands in 6 and 10
circles respectively amongst the total 22 circles prevalent in India. It is also the owner of
2,300 MHZ spectrum licensed for Pan-India usage till the year 2035.

Price :-At the end of the fiscal year 2015, estimated revenues of Reliance Jio were 13
million rupees compared to the earlier year of 5.8 million rupees. The company has
targeted people with smartphones who desire good services and high internet speed as its
target customers. Reliance Jio has taken several steps towards transforming India so that
it becomes a techno-savvy and digital nation. It has adopted a reasonable pricing policy
and has announced reasonable rates for all its products. These rates will be applicable
from the beginning of the fiscal year 2016-17 as it has announced free services for every
Jio-Sim since its launch till 31st March 2016.

Promotion :-Reliance Jio has undertaken an aggressive marketing strategy to create


positive brand awareness. It has launched ad campaigns on television, radio, newspapers,
magazines, and billboards and social media platforms including Instagram, Facebook,
Twitter and YouTube. Reliance Jio knows the importance of star power and has roped in
several celebrities to act in its commercials and become associated with its brand.

SWOT Analysis Of Reliance Jio

Strength :-

 Strong customer acquisition


 Strong customer base
 Innovative technology
 Strong backing of parent company
 Excellent advertising and marketing of Jio helped the brand have a strong launch

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 Jio has brand ambassadors like Shahrukh Khan, Amitabh Bachchan which has
helped reach out to masses
 Has a strong pan India presence with its operations in more than 22 cirles
 Jio apps are a unique feature offering movies, games, shopping, messenger, chat,
news etc under one roof
 LYF smartphones at affordable costs would also boost the brand Reliance Jio

Weakness :-

 Late entry into telecommunication sector :- The telecom sector had grown
exponencially in its initial phases which started around two decades earlier.
Presently market has seen only modest growth and it has become highly
competitive due to entry big players such as Vodafone, Idea etc.
 Operation of Mobile Number Portability Still not smooth :- Nowadays mobile
number has become identity of a person and hence it is difficult for anyone to
change his mobile number.MNP takes many days for its implementation and it is
hard to manage this transition period. MNP is crucial for Jio as a large number of
customer is expected through migration from existing service providers.
 Highly dependent upon data consumption: - As per the current trend around 60 to
70 percent of revenue comes from voice calling and hence there is a huge
potential loss for making voice calling free. This loss can be offset only when
consumption of data increases manifold.
 Sometimes poor data connection
 Price controversy

Opportunity :-

 Large scale availability of smart phones: In last 2 decades the number of people
using Smartphone has increased manifolds. If company is able to provide quality
service at competitive rate it can quickly grab large number of customers.
 Increasing rate of data consumption: In its earlier phase almost entire revenue of
the mobile service provider was from voice calling. However since last two years

32
the proportion of revenue from data users is increasing exponentially which has
resulted in almost 30-40% of the total revenue. Lower data tariff may further
increase data consumption and thus contribute more to the revenue of company.
 International market:-There is huge opportunity in many developing countries

Threats :-

 Saturated market:- The initial phase of rapid increase in subscriber is now over. A
new entrant like Jio needs a large customer base to cross breakeven point.
 Highly competitive market:- After the entry of big players like Vodafone,Ideaetc
the market has become highly competitive.
 Changing Government Policy:- The changing government policy like cancelling
of 2G licences ,imposition of tax with retrospective effect(on Vodafone), refund
for call drop etc, has created uncertainty in the market causing adverse impact on
the investment sentiment.
 Rapid upgradation in Technology:- From 2G to 3G and 3G to 4G changes have
occurred in very short span of time. Even next generation 5G is approaching
shortly. Each upgradation requires huge investment and it is not possible to
remain in market without it.

Awards :-
Reliance Jio along with Cisco wins Best Mobile Operator Service for Consumers award

Reliance JioInfocomm (Jio) along with its technology partner Cisco, won the “Best
Mobile Operator Service for Consumers” award at the Global Mobile (GloMo) Awards
2018 at Mobile World Congress (MWC).

Reliance Jio Gets Award for HR Impact

The Society for Human Resource Management (SHRM) conferred Reliance Jio with a
Special Award for HR Impact in People Practices.

This was in recognition for Reliance Jio creating and launching Jio services across 18,000
cities and towns and more than 200,000 villages through a network of 1,215 offices and a
formidable team of over 60,000 employees across India.

33
JioTV won in the ‘Best video mobile content’ category.

Advertising Punchline Of Reliance Jio


 JioDhanaDhan
 Dedicated To India And 1.2 Billions Indians
 JeeBharKeJiyo
 Introducing India Ka Smart Phone JioPhone

Slogan Of Reliance Jio


 Digital Life
 4G Liyo To Jio

34
Bharti Airtel

Product Of Bharti Airtel :-

Mobile Services :- cellular mobile services across 20 customer , customer and revenue
market leader in india
Telemediaservices :- offer fixed telephony and broadband internet services provided
across 87 countries
Digital TV services :- Pan india DTH operations coverage across 639 districts

Product Line Of Bharti Airtel :-


 Airtel Pre-paid services – Airtel has prepaid and postpaid calling services to the
customer. It is totally depend the income of the customer.
 Blackberry Wireless Handheld
 Airtel Post-paid services – Prepaid services of airtel is best because the can
provide very good offers in satisfied price.
 Value added services like instant balance inquiry, caller line identification, 24
hour recharge facility, multimedia messaging service, call wait & call Hold,
Caller divert, Airtel Live portal
 SMS based information services – The offers helpful to the customer for doing
messaging and chatting according to plans.
 Voice mail services – If in some situations we cant accept such call then the
company provide voice mail services to the customer in that services the if any
person have call us and we cant receive call then the another person can save and
speak his message in the call and then after the receiver can listen this message
and give reply to that specific person.
 Hello tunes, Ring tones – Hello tunes and ring tones has to set for voice calling of
the person . The company can provice all types of ringtones to the customer to
airtel hello tunes application.
 Ringtones and hello tunes offers
 Easy post-pay bill payment solutions – Airtel also has provide this service in that
system we can online pay the bills and recharge our mobile number without any
tension.
 Enterprise Solution

35
Major Brands Of Bharti Airtel :-
Mobile Services :-Bharti airtel offers GSM mobile services in all the 22-telecom circles
of India and is the largest mobile service provider in the country, based on the number of
customers. Airtel has provide many services like prepaid and postpaid services,
broadband services, value added services, voice call and hello tunes services, and also
enterprise solution. The prepaid and postpaid services airtel has provide and it totally
depend on the customer so which plan have to be selected and its also depend on the
income of the customer. From wireless broadband services we can access the intenet
anywhere from just simple machine which is look like mouse.

Telemediaservices :-The group offers high-speed broadband with the best in class
network. With fixed line services in 87 cities, we help you stay in touch with your friends
& family and keep you updated round the clock. Airtel provides broadband internet
access through DSL, internet leased lines and MPLS (multiprotocol label switching)
solutions, and fixed line telephone services. Until 18 September 2004, Bharti provided
fixed line telephony and broadband services under the Touchtel brand. Bharti now
provides all telecom services including fixed line services under the common brand airtel.
As of September 2012, Airtel provides Telemedia services to 3.3 million customers in 87
cities. As on 30 November 2012, Airtel had 1.39 million broadband subscribers.

Digital TV Services :-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, your TV viewing experience
change forever with digital TV from airtel.The Digital television business provides
Direct-to-Home (DTH) TV services across India under the brand name Airtel digital TV.
It started services on 9 October 2008 and had about 7.9 million customers at the end of
December 2012.

Airtel Business Services :-Airtel business provides a broad portfolio of services to large
Enterprise, Government, Small & Medium businesses and carrier customers. It is India's
leading and most trusted provider of communication and ICT services, offering services
that include voice, data, network integration, data center & managed services, enterprise

36
mobile applications and digital media.Airtel Business, the B2B arm of Bharti Airtel, has
rolled out a first of its kind dedicated digital platform to serve the growing connectivity,
communication and collaboration requirements of emerging businesses, including SMEs
and startups. The digital platform will offer solutions to emerging enterprises to enable
ease of business and faster time to market.

Segmentation Of Bharti Airtel :-


On the basis of Geographic variables:-

Region wise -

East Region (West Bengal, Assam, Arunachal Pradesh etc.)

West Region (Gujarat, Rajasthan, Maharashtra etc.)

South Region (Andhra Pradesh, Karnataka, Kerala etc.)

North Region (Punjab, Haryana, Himachal Pradesh etc.)

Central Region (Madhya Pradesh, Chhattisgarh, Jharkhand etc.)

Density of area -

Urban (Cities Such As Mumbai, Delhi, Pune, Jaipur etc.)

Semi-urban (Nasik, Aurangabad, Ahemadnagar etc.)

Rural (Baramati, Khed, Saswad etc.)

Income -

PREPAID & POSTPAID -

Generally the mobile service providers plan their marketing strategies according to the
prepaid market and postpaid market. So it basically depends upon the income of the
consumer that whether he selects the prepaid or postpaid. Generally the consumers with
low income choose prepaid and consumers with high income choose postpaid

On the basis of Behavioral variables -

Brand Loyalty - We can also segment it on the basis of the loyal customers and non-loyal
customers of the brand. We can provide various schemes and offers to the loyal
customers to retain him with our product.

37
Market Share Of Bharti Airtel :-

Airtel leads telecom market with 33.38% share

Bharti Airtel led the telecom market with 33.38% share as of December-end, according to
Trai’s monthly telecom subscription data. The number of telephone subscribers in India
rose from 1,185.88 million at the end of November 2017 to 1190.67 million at the end of
December.

According to the data, Reliance Jio’s market share stood at 13.71%, few points lower
than Vodafone’s and Idea Cellular’s market shares of 18.20% and 16.83% respectively.
However, Jio recorded the highest growth rate of wireless subscribers which is 5.27%,
among all telcos in the month of December. Jio was followed by Idea with 1.25% growth
rate in wireless subscribers.

38
Competitors Of Bharti Airtel

Reliance Jio :-Reliance JioInfocomm Limited, d/b/a Jio, is an Indian mobile network
operator. Owned by Reliance Industries and headquartered in Navi Mumbai,
Maharashtra, it operates a national LTE network with coverage across all 22 telecom
circles.

Idea :- Vodafone Idea Limited is India's largest telecom operator, with its headquarter
based in Mumbai, Maharashtra. Vodafone Idea is a pan-India integrated GSM operator
offering 2G, 3G and 4G mobile services under two brands named Vodafone and Idea.

Vodafone :- Vodafone Group plc is a British multinational telecommunications


conglomerate, with headquarters in London. It predominantly operates services in the
regions of Asia, Africa, Europe, and Oceania. Among mobile operator groups globally,
Vodafone ranked 4th in the number of mobile customers as of 2018.

Advertising :-

GroupM is Airte Media’s AOR

Telecom major Airtel has appointed GroupM as its media AoR (agency on record).
GroupM will handle the traditonal media and digital media duties for the brand. Dentsu
Aegis Media's outdoor agency, Milestone Brandcom, has been given the out-of-home
business of the brand.

GroupM is Airtel's Media AoR

The size of the media account is estimated to be around Rs 400 crore. This includes the
OOH spends that is estimated to be around Rs 50 crore.

The business has moved to the WPP company from Madison Media which had been
handling the media duties of Airtel for over a decade.

39
The media business will be handled from GroupM's Gurgaon office under Team Airtel, a
unit that is being set up under the leadership of MausumiKar, a senior GroupM resource,
who has over 15 years of media experience and has been part of GroupM for the past
eight years.

Marketing Mix Of Bharti Airtel :-

Product :-The company provides a wide array of products and services. In order to retain
the maximum number of customers, Airtel has tried t o provide as many products
and services as possible in order to keep the customers. The following is a list of its
products:

Airtel Pre-paid services

Blackberry Wireless Handheld

Airtel Post-paid services

Value added services like instant balance inquiry, caller line identification, 24 hour
recharge facility, multimedia messaging service, call wait & call Hold, Caller divert,
Airtel Live portal

SMS based information services

Voice mail services

Hello tunes, Ring tones,

Ringtones and hello tunes offers

Easy post-pay bill payment solutions

Enterprise Solutions

Price :-The company uses competitive pricing strategy just like any other network
providers because of the competition which is present in this sector. However, Airtel also

40
provides flexible pricing mechanism depending on the prevailing market conditions. For
instance, when the company relaxes taxation, it also reduces its prices across all affected
products. The make my plan introduced by Airtel was a smart strategy as customers
could now modify their plan as they see fit.

Place :-Airtel’s penetration in India is quite impressive because the services and networks
can be found even in India’s remotest regions. Currently, gross subscriber base has pass
the 200 million mark while the total wireless subscriber base for CDMA, GSM and WLL
is about 162 million. Clearly, the customer base of Airtel is strong in India. It is also
worth mentioning that millions of the network’s lines are added per year.Airtel enjoys a
well distributed network of distributors including even businesses like groceries and
chemist outlets. One of the things that have made Bharti Airtel a force to reckon in
telecommunication industry in India and Africa is that it has the strategy of making the
first moves and emerging as a winner. It has managed to buy Kuwait’s Zain and Tata
steel in the past, making it a top 5 wireless carrier in the world by subscription.

Promotion :-Airtel engages in aggressive marketing strategy ranging from traditional


print media to social network marketing. However, the company’s recent rebranding
efforts bombed in the market and were not received positively. The company also
engages in large scale TV and print advertising. The company frequently uses big
celebrities who endorse the services. The company also managed to create its signature
tune from Oscar winning musician A.R.Rahman which has become one of the most
downloaded tunes in India.

It is also interesting to note that even such seemingly redundant activities like providing
wallpapers and screensavers to computer users has proved a very effective marketing
strategy. The company also offers special discounts and offers to its subscribers.

Some salient points about the promotions of Airtel are

 Uses ATL and BTL activities


 Makes an effort to go regional

41
 Recent rebranding effort has failed in the market
 Has good word of mouth and a good brand image second only to Vodafone.

SWOT Analysis Of Bharti Airtel :-

Strength :-

 Users :- Airtel have overall 77 millions users and this is the biggest strength.
 Renowned Telecom company:- With its 19+ years of rich experience in telecom
industry this MNC had travelled far to become world’s 3rd largest telecom
operator overseas with operations in nearly 20 countries.
 High Brand Equity:- It is one of the pioneer brands in telecommunication having
a high brand recall and with a whopping subscriber base.
 Extensive infrastructure:- With the formation of Indus tower & due to its
partnership with Idea & Vodafone, the infrastructure of Airtel has extended in all
parts of the country resulting into nationwide penetration.
 Strategic Alliances:- The company has top notch stakeholders, namely Sony
Ericsson, Nokia and singtel, and the recent one being Apple. Such strategic
alliances boost the brand equity and the bottom line of the company.

Weakness :-

 Outsourced Operations:- Outsourcing operations helped Airtel in lowering its


cost. But on the other hand, they are running the risk of being dependent on some
other companies which may affect its operations.
 Venturing into African operations:- Although it’s been 4 years that Airtel has
acquired Zain’s Africa business, but Airtel is still struggling to turn around the
unit which was bought at a whoppy 9 billion dollars.
 High Debt:- With its acquisitions turning out to bad investment, and credit being
high and margins being low, Airtel group is under high debt. Airtel does not have
as deep pockets as Vodafone.

Till recently they did not had its own towers as compare to their own counterparts.

42
Opportunity :-

 Strategic Partnership:- Partnering with smart phone companies is going to be a


smart strategy as far as MNP (mobile number portability in India) is concerned.
This will ensure fixed cash flows in the future and a higher customer base.
 VAS:- VAS (Value Added services) is going to future of the telecommunication
industry & by specializing itself in this vertical Airtel can differentiate itself in
highly competitive market. With introduction of unique services, Airtel can avail
higher margins.
 Untapped geography of the current market:- Although it is currently providing 3G
& 4G services, but these services are limited to specific geographical locations.
Expansion of these services to most of its regions will help the company get more
margins and customers.
 LTE:- The whole wireless world is moving towards LTE (long term evolution or
4G). LTE for mobile broadband can be a good solution for India where fixed
broadband penetration is otherwise low. Airtel has taken the lead with this version
of LTE in 4 cities, but deployment needs to catch up pace. Despite a weak LTE
ecosystem in India, Airtel should portray itself as the embracer of that technology.
The company lacks nationwide 3G license with spectrum in 13 out of 22 telecom
service areas. Airtel’s LTE network for mobile broadband is still confined to only
4 cities in India.

Threats :-

 Government Regulatory Framework:- With the auction of spectrum & change in


the government policies on a regular basis, it is a potential threat to the stability &
existence of this industry thereby affecting the players.
 Competition:- Price war in the home market and declining margins due to this is
adversely affecting the overall business of the group.
 MNP (Mobile number portability):- MNP gives the customer independence to
change the service provider while retaining the number and as Airtel charges are

43
premium over other service providers, it can see slump in subscriber base in the
next fiscal year with PAN India MNP applicable from May 3rd 2015.

Awards :-

Bharti Airtel ranked third in The Economic Times and Interbrand’s ‘Best Indian Brands’
survey for 2014.

Bharti Airtel ranked fourth in Brand Finance’s survey for ‘The Most Valuable Indian
Brands of 2014.’

Bharti Airtel secured the second position in the ‘BrandZ Top 50 Most Valuable Indian
Brands 2014’. As per the survey’s brand valuation methodology.

Bharti Airtel secured the second position in the ‘BrandZ Top 50 Most Valuable Indian
Brands 2014’. As per the survey’s brand valuation methodology.

Bharti Airtel was recognised as the ‘Top Treasury Team Asia 2014’ at the Adam Smith
Awards Asia 2014 in Singapore.

Bharti Airtel won ‘Voice & Data Telecom Leadership Awards 2014’ in three categories –
‘Top Circles’, ‘Product Innovation’ and ‘Business Services’ at the Voice & Data
Telecom Leadership Forum 2015 in New Delhi.

Advertising Punchline Of Bharti Airtel :-

 Sab Kuch Try KaroPhirSahiChuno


 India’s Widest 4G Network
 Airtel – Dil Jo Chahey Pass Laye
 “Express Youself “
 Slogan Of Bharti Airtel :-
#Switch To My Plan

44
financials

45
finance

DEFINITION OF FINANCIAL ANALYSIS –

Financial analysis is the process of evaluating businesses, projects, budgets and other


finance-related entities to determine their performance and suitability. Typically,
financial analysis is used to analyse whether an entity is stable, solvent, liquid or
profitable enough to warrant a monetary investment. When looking at a specific
company, a financial analyst conducts analysis by focusing on the income
statement, balance sheet and cash flow statement.

Profit and loss a/c

The account through which annual net profit or loss of a business is ascertained, is
called profit and loss account. Gross profit or loss of a business is ascertained
through trading account and net profit is determined by deducting all indirect expenses
(business operating expenses) from the gross profit through profit and loss account. Thus
profit and loss account starts with the result provided by trading account.

The particulars required for the preparation of profit and loss account are available from
the trial balance. Only indirect expenses and indirect revenues are considered in it. This
account starts from the result of trading account (gross profit or gross loss). Gross profit
is shown on the credit side of the profit and loss account and gross loss is shown on the
debit side of this account. All indirect expenses are transferred on the debit side of this
account and all indirect revenues on credit side.  If the total of the credit side exceeds the
debit side, the result is "net profit" and if the total of the debit side exceeds the total of the
credit side, the result is net loss. As the net profit or net loss of a certain accounting
period is determined through profit and loss account, so its heading is:

Balance sheet

A balance sheet reports a company's assets, liabilities and shareholders' equity at a


specific point in time, and provides a basis for computing rates of return and evaluating

46
its capital structure. It is a financial statement that p The balance sheet adheres to the
following equation, where assets on one side, and liabilities plus shareholders' equity on
the other, balance out:

Assets = Liabilities + Shareholders' Equity

Cash flow statement

In financial accounting, a cash flow statement, also known as statement of cash


flows, is a financial statement that shows how changes in balance sheet accounts and
income affect cash and cash equivalents, and breaks the analysis down to operating,
investing and financing activities.

 Operating activities include cash activities related to net income. For example,


cash generated from the sale of goods (revenue) and cash paid for merchandise
(expense) are operating activities because revenues and expenses are included in
net income.
 Investing activities include cash activities related to noncurrent assets.
Noncurrent assets include (1) long-term investments; (2) property, plant, and
equipment; and (3) the principal amount of loans made to other entities. For
example, cash generated from the sale of land and cash paid for an investment in
another company are included in this category. (Note that interest received from
loans is included in operating activities.)
 Financing activities include cash activities related to noncurrent liabilities and
owners’ equity. Noncurrent liabilities and owners’ equity items include (1) the
principal amount of long-term debt, (2) stock sales and repurchases, and (3)
dividend payments. (Note that interest paid on long-term debt is included in
operating activities.)

47
FINIANCIAL RATIOS

A financial ratio or accounting ratio is a relative magnitude of two selected


numerical values taken from an enterprise's financial statements. Often used
in accounting, there are many standard ratios used to try to evaluate the overall
financial condition of a corporation or other organization. Financial ratios may be
used by managers within a firm, by current and potential shareholders(owners) of
a firm, and by a firm's creditors. Financial analysts use financial ratios to compare
the strengths and weaknesses in various companies.[1] If shares in a company are
traded in a financial market, the market price of the shares is used in certain
financial ratios.

Ratios can be expressed as a decimal value, such as 0.10, or given as an


equivalent percent value, such as 10%. Some ratios are usually quoted as
percentages, especially ratios that are usually or always less than 1, such
as earnings yield, while others are usually quoted as decimal numbers, especially
ratios that are usually more than 1, such as P/E ratio; these latter are also
called multiples.Given any ratio, one can take its reciprocal; if the ratio was above
1, the reciprocal will be below 1, and conversely. The reciprocal expresses the
same information, but may be more understandable: for instance, the earnings
yield can be compared with bond yields, while the P/E ratio cannot be: for
example, a P/E ratio of 20 corresponds to an earnings yield of 5%.

Activity Ratios

Activity ratios are used to measure how efficiently a company utilizes its assets.
The ratios provide investors with an idea of the overall operational performance of
a firm.

As you can see from Table 1, the activity ratios are “turnover” ratios that relate an
income statement line item to a balance sheet line item. As explained in my
previous articles, the income statement measures performance over a specified

48
period, whereas the balance sheet presents data as of one point in time. To make
the items comparable for use in activity ratios, an average figure is calculated for
the balance sheet data using the beginning and ending reported numbers for the
period (quarter or year).
The activity ratios measure the rate at which the company is turning over its assets
or liabilities. In other words, they present how many times per year inventory is
replenished or receivables are collected.

Inventory turnover
Inventory turnover is calculated by dividing cost of goods sold by average
inventory. A higher turnover than the industry average means that inventory is
sold at a faster rate, signaling inventory management effectiveness. Additionally, a
high inventory turnover rate means less company resources are tied up in
inventory. However, there are usually two sides to the story of any ratio. An
unusually high inventory turnover rate can be a sign that a company’s inventory is
too lean, and the firm may be unable to keep up with any increased demand.
Furthermore, inventory turnover is very industry-specific. In an industry where
inventory gets stale quickly, you should seek out companies with high inventory
turnover.

Receivables turnover
The receivables turnover ratio is calculated by dividing net revenue by average
receivables. This ratio is a measure of how quickly and efficiently a company
collects on its outstanding bills. The receivables turnover indicates how many
times per period the company collects and turns into cash its customers’ accounts
receivable.

49
Payables turnover
Payables turnover measures how quickly a company pays off the money owed to
suppliers. The ratio is calculated by dividing purchases (on credit) by average
payables.

Our payables turnover of 5.8x suggests that, on average, the firm used and paid off
the credit extended 5.8 times during the period or once every 63 days (365 days ÷
5.8). The payables turnover increases as more purchases are made or as a company
decreases its accounts payable.

Asset turnover
Asset turnover measures how efficiently a company uses its total assets to generate
revenues. The formula to calculate this ratio is simply net revenues divided by
average total assets. Our asset turnover ratio of 0.72x indicates that the firm
generates $0.72 of revenue for every $1 of assets that the company owns.

Liquidity Ratios
Liquidity ratios are some of the most widely used ratios, perhaps next to
profitability ratios. They are especially important to creditors. These ratios
measure a firm’s ability to meet its short-term obligations.

The level of liquidity needed varies from industry to industry. Certain industries
are more cash-intensive than others. For example, grocery stores will need more
cash to buy inventory constantly than software firms, so the liquidity ratios of
companies in these two industries are not comparable to each other. It is also
important to note a company’s trend in liquidity ratios over time.

50
Current ratio
The current ratio measures a company’s current assets against its current
liabilities. The current ratio indicates if the company can pay off its short-term
liabilities in an emergency by liquidating its current assets. Current assets are
found at the top of the balance sheet and include line items such as cash and cash
equivalents, accounts receivable and inventory, among others.

A low current ratio indicates that a firm may have a hard time paying their current
liabilities in the short run and deserves further investigation. A current ratio under
1.00x, for example, means that even if the company liquidates all of its current
assets, it would still be unable to cover its current liabilities. In our example, the
firm is operating with a very low current ratio of 0.91x. It indicates that if the firm
liquidated all of its current assets at the recorded value, it would only be able to
cover 91% of its current liabilities.

Quick ratio
The quick ratio is a liquidity ratio that is more stringent than the current ratio. This
ratio compares the cash, short-term marketable securities and accounts receivable
to current liabilities. The thought behind the quick ratio is that certain line items,
such as prepaid expenses, have already been paid out for future use and cannot be
quickly and easily converted back to cash for liquidity purposes. In our example,
the quick ratio of 0.45x indicates that the company can only cover 45% of current
liabilities by using all cash-on-hand, liquidating short-term marketable securities
and monetizing accounts receivable.

51
Cash ratio
The most conservative liquidity ratio is the cash ratio, which is calculated as
simply cash and short-term marketable securities divided by current liabilities.
Cash and short-term marketable securities represent the most liquid assets of a
firm. Short-term marketable securities include short-term highly liquid assets such
as publicly traded stocks, bonds and options held for less than one year. During
normal market conditions, these securities can easily be liquidated on an exchange.
The cash ratio in Table 1 is 0.27x, which suggests that the firm can only cover
27% of its current liabilities with its cash and short-term marketable securities.

Debt-to-equity ratio
The debt-to-equity ratio measures the amount of debt capital a firm uses compared
to the amount of equity capital it uses. A ratio of 1.00x indicates that the firm uses
the same amount of debt as equity and means that creditors have claim to all
assets, leaving nothing for shareholders in the event of a theoretical liquidation.

For our example, total debt used in the numerator includes short- and long-term
interest-bearing debt. This ratio can also be calculated using only long-term debt in
the numerator.

Interest coverage ratio


The interest coverage ratio, also known as times interest earned, measures a
company’s cash flows generated compared to its interest payments. The ratio is
calculated by dividing EBIT (earnings before interest and taxes) by interest
payments.

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53
54
55
CONCLUSION

PROFITABLITY RATIO

from the above ratio we can conclude that the profit before income and tax margin is
improving .company is not so efficient in making return on capital as it is constantly
decreasing .return on asset of the company is quite good.

56
SOLVENCY RATIO

The ability of the company to meet its liability is not so well as indicated by quick and
current ratio.the company is not capable of meeting its short term liability as the current
ratio indicates the defiency of funds , whereas the ability yo meet current obligation using
its liquid asset is quit good as expressed by quick ratio.

DEBT COVERAGE RATIO

The total debt to owners fund shows that owner are having more liability against their
assets which is not healthy .

MANAGEMENT EFFICIENCY RATIO

Company is quit good in managing its inventory as its inventory turnover ratio shows .
the company is capable of turning its inventory into cash in quite good pase. Investment
turnover ratio of the company is favourable but the company is not able to turn its debtor
into cash on time.

BSE

 Security ID : 855RJIL18
 ISIN : INE110L07013
 Security Code : 952487
 Status : listed
 Group : F

NSE

 Security ID : RELIANCE
 ISIN : INE002A01018
 Status : listed

57
58
BHARTI AIRTEL LTD.
BalanceSheet - Bharti Airtel Ltd.

Rs (in Crores)

Particulars Mar'18 Mar'17 Mar'16 Mar'15 Mar'14

Liabilities 12 Months 12 Months 12 Months 12 Months 12 Months

Share Capital 1998.70 1998.70 1998.70 1998.70 1998.70

Reserves & Surplus 100862.20 99208.60 109730.40 76272.10 64727.20

Net Worth 102860.90 101207.30 111729.10 78272.90 66728.00

Secured Loan 65415.80 9754.20 .00 -1315.20 -1841.30

Unsecured Loan .00 50340.50 42156.90 21567.80 10364.00

TOTAL LIABILITIES 168276.70 161302.00 153886.00 98525.50 75250.70

Assets

Gross Block 180754.60 163428.00 137060.80 93021.60 73949.20

(-) Acc. Depreciation 58145.20 51905.20 45135.30 39577.20 34071.00

Net Block 122609.40 111522.80 91925.50 53442.30 39876.10

Capital Work in Progress 5542.70 9600.20 3830.30 9066.90 1244.20

Investments 48128.20 45959.00 69897.30 43116.90 34523.90

Inventories 6.30 3.90 5.30 9.40 1.10

Sundry Debtors 4319.60 3211.80 3172.40 3311.00 2165.50

Cash and Bank 545.10 173.40 46.60 388.70 446.00

Loans and Advances 23786.00 21166.50 16150.60 17086.40 19945.20

Total Current Assets 28657.00 24555.60 19374.90 20795.50 22557.80

Current Liabilities 36351.40 29973.50 30800.80 26466.40 21798.60

Provisions 309.20 362.10 341.20 1431.80 1154.80

Total Current Liabilities 36660.60 30335.60 31142.00 27898.20 22953.40

NET CURRENT ASSETS -8003.60 -5780.00 -11767.10 -7102.70 -395.60

Misc. Expenses .00 .00 .00 .00 .00

59
TOTAL ASSETS(A+B+C+D+E) 168276.70 161302.00 153886.00 98525.50 75250.70

Profit & Loss - Bharti Airtel Ltd.Rs (in Crores)


  Mar'18 Mar'17 Mar'16 Mar'15 Mar'14

  12Months 12Months 12Months 12Months 12Months

INCOME:

Sales Turnover 53663.00 62276.30 60300.30 55496.40 49918.50

Excise Duty .00 .00 .00 .00 .00

NET SALES 53663.00 62276.30 60300.30 55496.40 49918.50

Other Income 0 0 0 0 0

TOTAL INCOME 53898.60 62460.60 60473.20 60689.40 50771.90

EXPENDITURE:

Manufacturing Expenses 13951.20 14536.00 28776.00 18717.60 16921.10

Material Consumed .00 .00 .00 71.40 20.50

Personal Expenses 1720.90 1738.50 1864.80 1691.50 1648.10

Selling Expenses 151.60 170.60 748.50 .00 .00

Administrative Expenses 20034.40 22138.30 6599.80 15584.80 15030.00

Expenses Capitalised .00 .00 .00 .00 .00

Provisions Made .00 .00 .00 .00 .00

TOTAL EXPENDITURE 35858.10 38583.40 37989.10 36065.30 33619.70

Operating Profit 17804.90 23692.90 22311.20 19431.10 16298.80

EBITDA 18040.50 23877.20 22484.10 24624.10 17152.20

Depreciation 13048.60 12203.40 9575.30 7559.70 7231.30

Other Write-offs .00 .00 .00 .00 .00

EBIT 4991.90 11673.80 12908.80 17064.40 9920.90

Interest 5069.00 2912.50 1974.50 1409.10 1336.40

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EBT -77.10 8761.30 10934.30 15655.30 8584.50

Taxes -760.40 1416.10 2474.10 2454.80 1777.20

Profit and Loss for the Year 683.30 7345.20 8460.20 13200.50 6807.30

Non Recurring Items -598.40 -17273.30 -683.30 .00 -207.10

Other Non Cash Adjustments .00 .00 .00 .00 .00

Other Adjustments -5.70 2.50 3.40 .00 .00

REPORTED PAT 79.20 -9925.60 7780.30 13200.50 6600.20

KEY ITEMS

Preference Dividend .00 .00 .00 .00 .00

Equity Dividend 463.60 253.80 887.20 1480.40 657.30

Equity Dividend (%) 23.19 12.69 44.38 74.06 32.88

Shares in Issue (Lakhs) 39974.00 39974.00 39974.00 39974.00 39974.00

EPS - Annualised (Rs) .20 -24.83 19.46 33.02 16.51


Rs (in Crores)

61
Cash Flow

Rs (in Crores)

Particulars Mar'18 Mar'17 Mar'16 Mar'15 Mar'14

Profit Before Tax -681.20 -8509.50 10254.40 15655.30 8377.40

Net Cash Flow from Operating Activity 15954.30 21165.50 19449.90 17939.80 16022.00

Net Cash Used in Investing Activity -19441.60 -24283.20 -21989.30 -12801.20 -17086.30

Net Cash Used in Financing Activity 3867.70 3455.70 1898.40 -5195.70 1182.20

Net Inc/Dec In Cash and Cash Equivalent 380.40 338.00 -641.00 -57.10 117.90

Cash and Cash Equivalent - Beginning of the Year 82.20 -255.80 385.20 445.80 327.90

Cash and Cash Equivalent - End of the Year 462.60 82.20 -255.80 388.70 445.80
Rs (in Crores)

From the above table we can conclude that profit after tax is decreasing continuously , and
expenses made in investing activity is also decreasing. The company is making good balance of
cash inflow and outflow. Company has increased its cash outsourse in finiansing activity.

62
63
CONCLUSION
The quick ratio and current ratio of the company is not good this means the company is
not able to turn its current assets and current obligation currently. Inventory turnover ratio
is also very good this mean company is efficient enough to turn its inventory into sales.
Dividend payout ratio has also increased which means company is competient enough to
pay dividend to share holders. Interest coverage ratio of the company has decreased
continuously which is not good as it shows that company is not having enough cash to
pay its debts. Return on asset of the company is decreasing continuously which states
that company is not competitent enough to turn its asets into cash. Total debt to equity
ratio should be 1 but it is less than 1 which is not a good sign for the affairs of the
company.

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BSE

 Security ID : BHARTIARTL
 Security Code : 532454
 ISIN : INE397D01024
 Status : listed
 Face value : 5rs.
 Group/Index : A

NSE

 Symbol : BHARTIARTL
 ISIN : INE397D01024
 Status :listed
 Face value : 5rs.

65
PRICE EARNING RATIO

The price earnings (P/E) ratio is one of the most widely used value indicators and quite
prominently used by investors while investing. Stocks with low PE ratio are perceived as having
cheaper current price, hence expected to generate higher return in the subsequent period. PE ratio
is computed by dividing the market price with the company’s earning per share. The study of the
historical trend in the PE ratio of the index gives useful information to investors on the
attractiveness of the 

The price earning raio of the company shows that the company’s share is doing quite well in
share market. It is not making much losses . also it will give good return in coming future.

DIVIDENT YIELD RATIO

A financial ratio that indicates how much a company pays out in dividends each year
relative to its share price. Dividend yield is represented as a percentage and can be
calculated by dividing the dollar value of dividends paid in a given year per share of
stock held by the dollar value of one share of stock. The formula for calculating dividend
yield may be represented as follows:

66
dividend yield ratio of the company is fair it will give quite good
divident in coming future.

67
CORPORATE
GOVERNANCE

68
In accordance with the provisions of the Securities and Exchange Board of India (Listing
Obligations and Disclosure Requirements) Regulations, 2015 (‘Listing Regulations’) .
Corporate governance is the system of rules, practices and processes by which a firm is
directed and controlled. Corporate governance essentially involves balancing the interests
of a company's many stakeholders, such as shareholders, management, customers,
suppliers, financiers, government and the community. Since corporate governance also
provides the framework for attaining a company's objectives, it encompasses practically
every sphere of management, from action plans and internal controls to performance
measurement and corporate disclosure.
. CORPORATE GOVERNANCE

It is a process set up for the firms based on certain systems and principles by which
company is governed. The guidelines provided ensure that the company is directed and
controlled in a way so as to achieve the goals and objectives to add value to the company
and also benefit the stakeholders in the long term. To understand the scope of the legal
framework and study the amendments, proxy advisory firms analyze the role of directors
and how they are impacted by changes in the amendments. Proxy firms offer analytical
data for the shareholders and corporate advisory services to companies.

Corporate governance is a process, relation and mechanism set up for the corporations
and firms based on certain guidelines and principles by which a company is controlled
and directed. The principles provided in the system ensure that the company is governed
in a way that it is able to set and achieve its goals and objectives in the context of the
social, regulatory and market environment, and is able to maximize profits and also
benefit those whose interest is involved in it, in the long run. The division and
distribution of rights and responsibilities among different participants in the corporation
(such as the board of directors, managers, shareholders, creditors, auditors, regulators,

69
and other stakeholders) and inclusion of the rules and procedures for making decisions in
corporate affairs are identified with the help of Corporate Governance mechanism and
guidelines.

The framework of corporate governance consists of:

 Express or implied contracts between the stakeholders and the company for the
distribution of rights, duties, rewards and liabilities, etc among different
participants in the corporation.
 Procedure for proper control and supervision of information flow in the
company, i.e., a proper mechanism of checks-and-balances, and Procedures for
resolving and reconciling the conflicting interests and decisions of different
participants in the corporation.
 This mechanism ensures accountability of the Board of Directors to all
stakeholders of the corporation i.e. managers, shareholders, suppliers, creditors,
auditors, regulators, employees, customers and society in general; for giving the
company a fair, clear and efficient administration. So it is not just mere company
administration but a corporate management system. It is a code of conduct that
must be followed for running and proper functioning of a corporate entity.

The Objectives of Corporate Governance

 Transparency in corporate governance is essential for the growth, profitability


and stability of any business. The need for good corporate governance has
intensified due to growing competition amongst businesses in all economic
sectors at the national, as well as international level.
 The Indian Companies Act of 2013 introduced some progressive and transparent
processes which benefit stakeholders, directors as well as the management of
companies. Investment advisory services and proxy firms provide concise
information to the shareholders about these newly introduced processes and
regulations, which aim to improve the corporate governance in India.
 Corporate advisory services are offered by advisory firms to efficiently manage
the activities of companies to ensure stability and growth of the business,

70
maintain the reputation and reliability for customers and clients. The top
management that consists of the board of directors is responsible for governance.
They must have effective control over affairs of the company in the interest of
the company and minority shareholders. Corporate governance ensures strict and
efficient application of management practices along with legal compliance in the
continually changing business scenario in India.
 To promote or to increase awareness among entrepreneurs adoption of good
corporate governance practices, which are the integral element for doing and
managing business.
 To ensure the quality of audit that is at the root of effective corporate governance
by making the Auditor accountable for the disclosure of financial information.
 To make the Board of Directors as well as the CEOs and CFOs accountable for
the discharge of their duties with the proper use of their rights within the powers.
 To form an appropriate system in order to check the Directors independence in
the board and to monitor the work of Audit firms.

 Importance of Studying Governance

 From the information learned in the discussion of governance, the people, most
especially the citizens, will be aware of the need for good governance.
Consequently, such awareness should move them to action. For their continued
empowerment and sustainable development, they have to know how to fight for
their rights by knowing what to expect from Philippine governance. Thus, what
will follow is an exposition of the basic concepts of governance, the ideal type of
governance, and the status of the Philippines vis-à-vis the indicators of good
governance.

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72
GOVERNANCE PHILOSOPHY

Governance Philosophy At Bharti Airtel, the philosophy of Corporate Governance


focuses on creating and sustaining a deep relationship of trust and transparency with all
stakeholders. We follow ethical business standards in all our operations globally. We
consider stakeholders as partners in our journey forward and we are committed to ensure
their wellbeing, despite business challenges and economic volatilities. The norms and
processes of Corporate Governance reflect our commitment to disclose timely and
accurate information regarding our financial and operational performance, as well as the
Company’s leadership and governance structure. Over the years, our stakeholder
commitment has enhanced the respect and recall of our brand nationally and
internationally. Our global stature has enabled us to attract best industry talent and
financial resources to translate our short-term and long-term strategies into a viable
business blueprint. Our Board of Directors (‘the Board’) shapes the long-term vision and
policy approach to steadily elevate the quality of governance in our organisation. We
follow a defined guideline and an established framework of corporate governance. The
objective is to emerge as a market leader in our industry, nationally and internationally
with focus on creating greater value for all those who have a stake in our progress
directly or indirectly. At the same time, the Board puts a lot of emphasis on creating a
global talent pool and helping protect the environment by following green practices and
technologies. Our enlightened Board represents a confluence of experience and expertise
across diverse areas, ranging from global finance, telecommunication, banking, general
management, administrative services and consulting. There is clear demarcation of duties
and responsibilities among the position of the Chairman and Managing Directors &
CEOs to ensure best corporate performance and socio-economic value creation. Our
governance conforms to global standards through continuous evaluation and
benchmarking. It is based on the following broad tenets whereby the Company: Adopts
transparent procedures and practices and arrives at decisions based on adequate
information. Ensures compliance with regulatory and fiduciary requirements in letter and
spirit. Offers high levels of disclosures to disseminate corporate, financial and operational
information to all stakeholders.

73
 Adopts policies on tenure of Directors, rotation of Auditors and a Code of
Conduct for Directors and Senior Management. Creates various Committees for
Audit & Risk Management, HR and Nomination, Corporate Social Responsibility,
Employee Stock Option Plans and Stakeholders’ Relationship.
 Ensures complete and timely disclosure of relevant financial and operational
information to enable the Board to play an effective role in guiding strategies.
 Organises meetings of Independent Directors without the presence of any Non-
Independent / Executive Directors and members from the management to identify
areas, where they need more clarity or information and putting the same before
the Board or management.
 Offers a formal induction schedule and provide familiarisation programme for
new Board members that enable them to meet individually with the top
management team, customers etc.
 Reviews regularly and establishes effective meeting practices that encourage
active participation and contribution from all members.
 Ensures independence of Directors in reviewing and approving corporate
strategy, major business plans and activities.
 Keeps in place a well-defined corporate structure that establishes checks, balances
and delegates decision making to appropriate levels in the organisation though the
Board always remains in effective control of affairs.

GOVERNANCE STRUCTURE OF BHARTI AIRTEL

 Governance Structure Sustaining a culture of integrity, along with high


performance orientation in today’s complex business environment needs a robust
governance structure. The Corporate Governance structure of the Company is
multi-tiered, comprising governing / management Boards at various levels, each
of which is interlinked in the following manner: At the apex level is the Board of
Directors and various committees, which collectively ensure highest standards of
Corporate Governance and transparency in the Company’s functioning. The
Board exercises independent judgement in overseeing management performance

74
on behalf of share owners and other stakeholders, and hence, plays a vital role in
the oversight and management of the Company. The Board is chaired by the
Executive Chairman, who is responsible for the overall strategy development,
alliances, leadership development, international opportunities, strengthening
governance practices and enhancing brand value and Bharti’s global image and
reputation. At one level below the Board, strategic co-ordination and direction is
provided by the Airtel Corporate Council (ACC). The ACC is headed by the
Chairman and comprises the Managing Directors & CEOs and selected senior
management personnel as its members. The key responsibilities of the ACC
Committee are provided latter in this report. The Managing Director & CEO
(India & South Asia) is responsible for strategy deployment and overall business
performance. He is supported by the Airtel Management Board (AMB). The
Company’s business in India is structured into four business units (BUs) i.e.
Mobile Services, Telemedia Services, Airtel Business and Digital TV Services,
each headed by a Business President / CEO. The Passive Infrastructure business is
deployed, owned and managed through Bharti Infratel Limited (Infratel), a listed
subsidiary company. In fratel’s operations are managed by its Managing Director
under the supervision of an Independent Board. The business transactions
between the Company and In fratel are undertaken on an arms’ length basis, since
it provides services to other telecom operators as well, on a non-discriminatory
basis. The Company’s operations in Africa are guided by the Managing Director
& CEO (Africa) of Bharti Airtel International (Netherlands) B.V., a subsidiary
company. He is responsible for strategy deployment and overall business
performance. He is supported by the Africa Executive (AEX). The AMB in India
and South Asia, and AEX in Africa provide support relating to the Company’s
business strategy and also derive operational synergies across business units.
They own and drive company-wide processes, systems, policies, and also function
as role models for leadership development and as catalysts for imbibing customer
centricity and meritocracy in the Company.

75
 GOVERNANCE PHILOSOPHY OF RELIANCE JIO

In accordance with the provisions of the Securities and Exchange Board of India
(Listing Obligations and Disclosure Requirements) Regulations, 2015 (‘Listing
Regulations’), the report containing the details of Corporate Governance systems and
processes at Reliance Industries Limited (RIL) is as follows: At RIL, Corporate
Governance is all about maintaining a valuable relationship and trust with all
stakeholders. We consider stakeholders as partners in our success, and we remain
committed to maximising stakeholders’ value, be it shareholders, employees,
suppliers, customers, investors, communities or policy makers. This approach to
value creation emanates from our belief that sound governance system, based on
relationship and trust, is integral to creating enduring value for all. We have a defined
policy framework for ethical conduct of businesses. We believe that any business
conduct can be ethical only when it rests on the six core values of Customer Value,
Ownership Mindset, Respect, Integrity, One Team and Excellence.

Corporate Governance encompasses a set of systems and practices to ensure that


the Company’s affairs are being managed in a manner which ensures accountability,
transparency and fairness in all transactions in the widest sense. The objective is to
meet stakeholders’ aspirations and societal expectations. Good governance practices
stem from the dynamic culture and positive mindset of the organisation. We are
committed to meet the aspirations of all our stakeholders. This is demonstrated in
shareholder returns, high credit ratings, governance processes and an entrepreneurial
performance focused work environment. Additionally, our customers have benefited
from high quality products delivered at extremely competitive prices. The essence of
Corporate Governance lies in promoting and maintaining integrity, transparency and
accountability in the management’s higher echelons. The demands of Corporate
Governance require professionals to raise their competence and capability levels to
meet the expectations in managing the enterprise and its resources effectively with the
highest standards of ethics. It has thus become crucial to foster and sustain a culture
that integrates all components of good governance by carefully balancing the
complex inter-relationship among the Board of Directors, Audit Committee,

76
Corporate Social Responsibility and Governance Committee, Finance, Compliance
and Assurance teams, Auditors and the senior management. Our employee
satisfaction is reflected in the stability of our senior management, low attrition across
various levels and substantially higher productivity. Above all, we feel honoured to
be integral to India’s social development. Details of several such initiatives are
available in the Report on Corporate Social Responsibility. At RIL, we believe that as
we move closer towards our aspirations of being a global corporation, our Corporate
Governance standards must be globally benchmarked.

Therefore, we have institutionalised the right building blocks for future growth.
The building blocks will ensure that we achieve our ambition in a prudent and
sustainable manner. RIL not only adheres to the prescribed Corporate Governance
practices as per the Listing Regulations, but is also committed to sound Corporate
Governance principles and practices. It constantly strives to adopt emerging best
practices being followed worldwide. It is our endeavour to achieve higher standards
and provide oversight and guidance to the management in strategy implementation,
risk management and fulfilment of stated goals and objectives. Over the years, we
have strengthened governance practices. These practices define the way business is
conducted and value is generated. Stakeholders’ interests are taken into account,
before making any business decision. RIL has the distinction of consistently
rewarding its shareholders for four eventful decades from its first IPO. Since then,
RIL has moved from one big idea to another and these milestones continue to fuel its
relentless pursuit of ever-higher goals

77
GOVERNANCE STRUCTURE OF RELIANCE JIO

The Company has put in place an internal governance structure with defined roles and
responsibilities of every constituent of the system. The Company’s shareholders
appoint the Board of Directors, which in turn governs the Company. The Board has
established seven Committees to discharge its responsibilities in an effective manner.
RIL’s Company Secretary acts as the Secretary to all the committees. The Chairman
and Managing Director (CMD) provides overall direction and guidance to the Board.
In the operations and functioning of the Company, the CMD is assisted by four
Executive Directors and a core group of senior level executives. The Chairman of the
Board (‘the Chairman’) is the leader of the Board. The Chairman is responsible for
fostering and promoting the integrity of the Board while nurturing a culture where the
Board works harmoniously for the long-term benefit of the Company and all its
stakeholders. The Chairman guides the Board for effective governance structure in
the Company. In doing so, the Chairman presides at the meetings of the Board and
the shareholders of the Company. The Chairman takes a lead role in managing the
Board and facilitating effective communication among Directors. The Chairman is
responsible for matters pertaining to governance, including the organisation and
composition of the Board, the organisation and conduct of Board meetings,
effectiveness of the Board, committees and individual Directors in fulfilling their
responsibilities. The Company Secretary assists the Chairman in management of the
Board’s administrative activities such as meetings, schedules, agendas,
communication and documentation. The Chairman actively works with the Human
Resources, Nomination and Remuneration Committee to plan the Board and
committees’ composition, induction of directors to the Board, plan for director
succession, participate in the Board effectiveness evaluation process and meet the
individual directors to provide constructive feedback and advice. The Chairman is
responsible for corporate strategy, brand equity, planning, external contacts and all
management matters.

78
ACTION TAKEN BY SEBI

 Bharti Airtel's promoter firm Indian Continent Investment has settled an alleged
insider trading case after paying Rs 2.17 lakh towards settlement charges to
regulator Sebi.

Indian Continent Investment had acquired 26,58,60,986 shares constituting 7 per cent
stake in the company during July 2007 to December 2010. As a result, Indian Continent
Investment's shareholding in Bharti Airtel crossed 5 per cent on April 29, 2008, requiring
it to make necessary disclosures under PIT (Prohibition of Insider Trading) Regulations.

However, it was alleged that the promoter company failed to make such disclosure,
prompting Sebi to initiate a probe. In a settlement order passed today, Sebi said it is
disposing of "the adjudication proceedings initiated against the noticee (Indian Continent
Investment).

The Securities and Exchange Board of India (Sebi) had initiated adjudication proceedings
against Indian Continent Investment over the violation of regulations.

Pending the adjudication proceedings, it had offered to settle the matter on payment of
charges. Thereafter, Sebi's High Powered Advisory Committee recommended the case
for settlement on the payment of the amount.

This was also approved by Sebi's panel of whole-time members, following which the
company remitted a little over Rs 2.17 lakh. Accordingly, Sebi has disposed of the
adjudication proceedings initiated against the entity in the matter.

It further said that enforcement actions, including commencing or reopening of the


proceedings, could be initiated if any representation made by the company is found to be
untrue. Indian Continent Investment continued to hold 6.65 per cent stake in Bharti Aitel
as on December 31, 2016.

 Regulation 34 of the SEBI (Listing Obligations and Disclosure Requirements)


Regulations, 2015. Dear Sir/ Madam, Pursuant to Regulation 34 of the SEBI
(Listing Obligations and Disclosure Requirements) Regulations, 2015, we hereby

79
submit the Integrated Report and Annual Accounts of the Company for the
financial year 2017-18.
ACTION TAKEN BY SEBI ON JIO
 Reliance Jio Infocomm Ltd has informed BSE regarding Quarterly Statement on
Investor Complaints / Grievances Redressal Mechanism for the Quarter ended
June 30, 2018, under Regulation 13(3) of SEBI (Listing Obligations and
Disclosure Requirements) Regulations, 2015.

SCAMS

 NEW DELHI: Bharti AirtelNSE 0.05 % may have to pay a fine for the alleged
violation of rules on using Aadhaar for its electronic know-your-customer (e-
KYC) verification process, according to an official of the Unique Identification
Authority of India (UIDAI). 
The country’s top telecom operator has been temporarily suspended from using
Aadhaar to authenticate connections and open new payment bank accounts by
UIDAI. The penalty will be based on the number of days for which the rules were
violated and could run upwards of Rs 2 crore, UIDAI official said. “According to
the Aadhaar Act, the penalty is a few lakhs for each day of violation,” he said. “A
notice has already been sent to the company and a final amount will be decided
after PwC — which has been engaged by us —finishes its audit.UIDAI had sent a
notice to the company in September after receiving complaints from citizens that
it was openings can confirm that we have received an interim order from the
UIDAI regarding temporary suspension of Aadhaar-linked, e-KYC services till
their satisfaction on certain processes relating to Airtel Payment Bank’s on
boarding of customers,” an Airtel spokesperson told ET in a statement. 
Bharti Airtel is engaging with the authority and is hopeful of an early resolution,
it added. “We are also undertaking to complete the said actions on priority and
have commenced thorough checks of our proc .. d and subsidies redirected,
according to the UIDAI official. 
“Many customers were not aware of the change in bank account and thought that

80
government had stopped their subsidies,” said the UIDAI official. Subsidies of
almost 4.7 million LPG customers amounting to Rs 167 crore is said to have been
transferred to such accounts. 

SPECTRUM SCAM: BHARTI AIRTEL CMD SUNIL MITTAL

Bharti Cellular chairman Sunil Mittal Monday moved the Supreme Court for quashing
summons issued by a lower court, asking him to appear before it on April 11, in a case
related to alleged irregularities and losses inallocation of airwaves when BJP-led National
Democratic Alliance was in power. Last month, the Central Bureau of Investigation
(CBI) Special Court had ‘summoned as accused’ Mittal, along with Essar Group
promoter Ravi Ruia and former managing director of Hutchis. The CBI had had not
named any company executives nor levied any chargesagainst them when it filed the
charge sheet in December. But Judge OP Saini said the three executives ‘used to chair
board meetings’ and controlled their respective companies’ affairs and added that there
was ‘enough material on the record top proceed against them. According to Supreme
Court advocate Gopal Jain, the Bharti group chairman is learnt to have challenged the
special court’s summons on four issues.

81
SCAMS

 Reliance Jio denies involvement in so-called JioCoin In what will fail to be a


shock for watchers of the cryptocurrency scene, it appears that a bunch of dodgy
people might be doing dodgy stuff, again. This time the victim is upstart Indian
telco Reliance Jio, which overnight denied it was involved with a digital currency
called JioCoin. "There are no such apps offered by the company or its
affiliates/associates," the company said in a statement. "Any such apps using the
JioCoin name are fake and people are advised to refrain from dealing with any of
them." "Reliance Jio takes a serious note of such fraudulent attempts by
unscrupulous persons to misguide the public in the name of Jio and reserves the
right to take appropriate legal recourse.

 50th Anniversary Advertising Scam: Warning Concerning a Fraudulent Letter


Circulating in the Name of Reliance Industries Limited (RIL).It has come to RIL's
attention that a fraudulent letter, allegedly sent in the name of company Chairman
& Managing Director Sh Mukesh D. Ambani and Director Sh PMS Prasad, has
recently been circulating through fax. The fake fax purports to recommend
placing advertising in a business publication named "The Industrial World
Business."RIL has no connection whatsoever with the fraudulent fax and has
made no recommendations. The signatures of Chairman & Managing Director Sh
Mukesh D. Ambani and Director Sh PMS Prasad on the fax are forgeries.By this
categorical disclaimer and warning, RIL cautions the recipients of the fax not to
be deceived by its contents.

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CRISIL RATINGS

CRISIL has revised the symbols and definitions of its long-term and short-term credit
ratings on debt instruments, structured finance instruments, and debt mutual fund
schemes. This is in compliance with a June 15, 2011, Securities and Exchange Board of
India (SEBI) circular, “Standardisation of Rating Symbols and Definitions,” which
mandates the use of common rating symbols and rating definitions by all credit rating
agencies (CRAs). As per the circular, all CRAs are required to revise their rating symbols
and definitions as recommended by SEBI. Accordingly, CRISIL has effected changes in
rating symbols and definitions with effect from July 11, 2011. The rating symbols and
definitions of the following class of instruments have been revised:

a) Long-term debt instruments

b) Short-term debt instruments

c) Long-term structured finance instruments

d) Short-term structured finance instruments

e) Long-term mutual fund schemes

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CRISIL has assigned its 'CRISIL AAA/Stable' rating to the Rs. 15,000 crore Non-
Convertible Debentures (NCD) of Reliance Jio Infocomm Limited (RJIL) while
reaffirming the ratings on RJIL's existing non-guaranteed and guaranteed NCDs at
'CRISIL AAA/Stable' and 'CRISIL AAA(SO)/Stable' respectively, and its commercial
paper at 'CRISIL A1+

84
CRISIL has reaffirmed its 'CRISIL AA+/Stable/CRISIL A1+' ratings on the bank
facilities and debt programmes of Bharti Airtel Ltd (Bharti Airtel).The ratings continue to
reflect the company's leadership position in the mobile telephone segment in India,
improving operations in Africa and non-mobile businesses in India, and adequate
financial risk profile. These strengths are partially offset by exposure to regulatory
changes and technological risks, and the changing competitive landsc

85
BIBILIOGRAPHY

 Times of India

 Business standards

 Press release

 Company law 2013(ICAI book)

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