two wheeler industry-india

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Worldwide telecom industry:

In the period 1950-1970 the developments in the telecom sector are best characterized bythe terms: stable, steady and predictable. In terms of change this was truly evolutionary.However, a new period started in the 80-ties: a period of revolutionary change. Initiated by de-regulation in the 70-ties1, the introduction of new technologies, such as cellular and fiber optic

communications, and fuelled by the widespread use of the Internet an e-world was emergingthat seemed unprecedented in terms of growth. The growth attracted many and big money wasflowing into the ICT sector. New e-world click & order- companies quickly surpassed theold-world bricks & mortar - companies in share value. Many new businesses were startedthrough fresh inflow of venture capital. Wave after wave of new telecom operators emerged tochallenge the status quo of the incumbents. Investments in the industry soured. Being a playerin the future of the mobile eworld became a must. Auctions for 3G radio spectrum became hugecash generators for national governments. Until the wisdom behind these huge valuationsbecame questioned; when Return on Investment was re-visited and Return on Vision becameout of vogue, the boom period came to an end. In April 2000 the Internet bubble collapsed,having started in 1995.2 To adjust company operations to the new realities of the market over

485,000 jobs have been eliminated or announced to be eliminated in the telecommunicationsindustry for the period July 2000 until February 2002 (Financial Times, 2002).3 Measured from2000 until 2002, 94 telecommunications companies defaulted (OECD, 2003 p16), including bigfirst-wave new entrants such as Global Crossing and established firms such as WorldCom, thesingle largest default at approx. US$ 31.8 billion. And the impact has not remained restricted tothe telecom and internet sector. As major institutional investors, such as mutual funds andpension funds, have participated in the bubble, the fall-out is affecting the public at large.4From the perspective of a free market economist, bubbles are to be considered as naturalmarket phenomena, and the crash is expected to provide for the necessary correction on theexcesses that were part of the boom period. Hence, the recovery should run its course withoutintervention. However, recognizing the special features of telecommunications as a networkinfrastructure, a laissez-faire attitude may not be the most desirable policy to be pursued.

Consider in this respect the high expectations that surrounded the recent liberalization of thetelecom sector. Politicians may perceive the current state of affairs in the sector as a marketfailure and may be inclined to intervene, as has been the case in other liberalized infrastructureindustries.5 Furthermore, European government leaders agreed to a long-term goal ofestablishing the EU as a leading region in the global Information Society.6 The related ActionPlan calls for the formulation and implementation of national policies that aim at the realizationof an ubiquitous broadband infrastructure with access for all European citizens. The

Telecom industry in India:

Introduction


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The telecom network in India is the fifth largest network in the world meeting upwithglobal standards. Presently, the Indian telecom industry is currently slated to an estimatedcontribution of nearly 1% to Indias GDP.

The Indian Telecommunications network with 110.01 million connections is the fifthlargest in the world and the second largest among the emerging economies of Asia. Today, it is

the fastest growing market in the world and represents unique opportunities for U.S. companiesin the stagnant global scenario. The total subscriber base, which has grown by 40% in 2005, isexpected to reach 250 million in 2007. According to Broadband Policy 2004, Government ofIndia aims at 9 million broadband connections and 18 million internet connections by 2007.The wireless subscriber base has jumped from 33.69 million in 2004 to 62.57 million inFY20042005. In the last 3 years, two out of every three new telephone subscribers werewireless subscribers. Consequently, wireless now accounts for 54.6% of the totaltelephonesubscriber base, as compared to only 40% in 2003. Wireless subscribergrowth is expected tobypass 2.5 million new subscribers per month by 2007. Thewireless technologies currently inuse are Global System for Mobile Communications(GSM) and Code Division Multiple Access(CDMA). There are primarily 9 GSM and 5CDMA operators providing mobile services in 19telecom circles and 4 metro cities,covering 2000 towns across the country.

Evolution of the industry-Important Milestones:

History of Indian Telecommunications

Year

1851 First operational land lines were laid by the government near Calcutta (seatof Britishpower)

1881 Telephone service introduced in India

1883 Merger with the postal system

1923 Formation of Indian Radio Telegraph Company (IRT)

1932 Merger of ETC and IRT into the Indian Radio and Cable CommunicationCompany(IRCC)

1947 Nationalization of all foreign telecommunication companies to form thePosts,Telephone and Telegraph (PTT), a monopoly run by the government's Ministry ofCommunications

1985 Department of Telecommunications (DOT) established, an exclusive provider ofdomestic and long-distance service that would be its own regulator (separate from the postalsystem)

1986 Conversion of DOT into two wholly government-owned companies: the VideshSanchar Nigam Limited (VSNL) for international telecommunications and MahanagarTelephone Nigam Limited (MTNL) for service in metropolitan areas.

1997 Telecom Regulatory Authority of India created.

1999 Cellular Services are launched in India. New National Telecom Policy is adopted.

2000 DoT becomes a corporation, BSNL

Scope Of Telecom Industry


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The telecom industry is growing at a great pace and the growth rate is expected to doublewith every passing year. There are many new developments in the telecomm sector, includingthe ingress of 3G technology that the Indian market is witnessing at present.

Public and Private Players:

MTNL, BSNL, VSNL are the major Public Players, whereas Airtel, Idea, Hutch, Tata,

Reliance, BPL are the leading Private Players in the country. Some of them are entering foreignmarkets as well. The Bharti Telecom will be launching its services for the NRIs in the US withthe help of Airtel CALLHOME service.

The market shares of the leading public and Private Players

INVESTMENT AND GROWTH:

In 2005-2006, the telecom industry witnessed a growth of 21% with a total revenue ofRs. 86,720 crores, and the total investment rising to Rs. 2,00,660 crores. It is projected that thetelecom industry will be enjoying over 150% growth in the next 4-6 years. The growth alsorequires a huge investment by the players in the sector. Bharti Airtel is planning to invest about$8 billion by the year 2010.

Liberalization policy and some socio-economic factors are mainly responsible for theimmense growth in the sales volumes. The lifestyle of the people has changed. They need to beconnected to the other people all the time. With the lowering down of the tariffs theaffordability of the mobile phones has increased. The finance sector has also come up withloans for handsets on 0% interest. Mobile services providers are also expanding their coveragearea by installing more and more antennas and other equipments.

The telecom sector in the country has already adopted the latest technologicaladvancements to cater to the demands of the growing market. Telecom Expo India,Convergence India, VAS India and IPTV India being organized year to year are all efforts inthis direction.

Budget 2007 has brought disappointment to the telecom sector. Mobile service providershave been asked to cut down their roaming rentals as well as their long distance andinternational call tariffs. This has led to discontent on the part of the service providers.However, Telecom Regulatory Authority of India (TRAI) is of the opinion that this will lead to


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increased use of roaming, which will ultimately lead to more revenue generation. Moreover,with cheaper handsets and lesser tariffs, it is expected that by the year 2010 there will be over500 million subscribers in the Indian telecom market.

Also, the telecom industry this year will be focusing more on rural areas to connect themwith the urban areas so that the farmers and the small-scale industries can have faster access to

information related to weather and market conditions.

EMPLOYMENT STATUS :

With the coming of more and more projects, the telecom industry is going for high scalerecruitments. There is a huge demand for software engineers, mobile analysts, and hardwareengineers for mobile handsets. Besides, there are ample opportunities for marketing people

whose services are required to capture more and more customer base.The new projects, setting up of new service bases, expansion of coverage areas, network

installations, maintenance, etc are providing more and more employment opportunities in thetelecom sector

Origan:

India is one of the fastest growing telecom networks in the world. This is due to its highpopulation and fast rate of growth.

Rural India is still inadequate in terms of connectivity for efficient telecommunication.

BSNL is one of the main public sector telecommunication companies in India. It has beenrated 7th largest in the world.

Hutch, BPL, MTNL, Bharti Telecom, Reliance and Tata Indicom are the other activetelecommunication operators in India.

Indias mobile phone industry is one of the fastest growing industries in the world.Mobile phones in India were formally launched in august 1995. For the first few years after theadvent of mobile phones, monthly subscriptions were added to the tune of 0.05 to 0.1 million inIndia. Subsequently the subscriber base stood at 10.5 million in December 2002.

The Indian mobile phone industry has entered a phase of boom due to many proactivemeasures taken by various licensors and regulators. Two Million mobiles subscribers wereadded every month in India from 2003 to 2005. The two other countries with more mobile

phones then India are USA and China.The main technologies followed by India for mobile communication are global GSM and

CDMA.GSM is the global system for mobile communication and CDMA is based on codedivision multiple access. Mobile tariffs are very low in India.

Thirty two million mobile handsets were sold in India in the year 2005. Indian ring tonesprimarily comprise of music of Indian origin like Indian film songs and bhajans.


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Total revenue generated by the telecom service sector in 2004-2005 was 86,720 crore inIndia. This meant an increase of revenue by 21% from the previous year.

Airtel covers 21.45 of subscriber base in India. Reliance is the second largest with asubscription controlling a base of 20.3%. BSNL follows closely at 18.6% and Hutch was 14.7%according to a June 2005 survey.

Growth:

Yes, thats true. Indian telecommunication Industry is one of the fastest growing telecommarket in the world. The mobile sector has grown from around 10 million subscribers in 2002to reach 150 million by early 2007 registering an average growth of over 90% yoy. The twomajor reasons that have fuelled this growth are low tariffs coupled with falling handset prices.

Surprisingly, CDMA market has increased it market share upto 30% thanks to RelianceCommunication. However, across the globe, CDMA has been loosing out numbers to popularGSM technology, contrary to the scenario in India.

The other reason that has tremendously helped the telecom Industry is the regulatorychanges and reforms that have been pushed for last 10 years by successive Indian governments.

According to Telecom Regulatory Authority of India (TRAI) the rate of market expansionwould increase with further regulatory and structural reforms.

Even though the fixed line market share has been dropping consistently, the overall (fixedand mobile) subscribers has risen to more than 200 million by first quarter of 2007. Thetelecom reforms have allowed the foreign telecommunication companies to enter Indian marketwhich has still got huge potential. International telecom companies like Vodafone have madeentry into Indian market in a big way.

Currently the Indian Telecommunication market is valued at around $100 billion (Rupees400,000 crore). Two telecom players dominate this market Bharti Airtel with 27% marketshare and Reliance Communication with 20% along with other players like BSNL (BharatSanchar Nigam Limited) and AT&T.

One segment of the market that has been puzzling is broadband Internet. Despite themanner in which the countrys Internet market has been booming, Indias move into high-speedbroadband Internet access has been distinctly slow. And, while there appears to be considerableenthusiasm amongst the population for the Internet itself, this has not been reflected inbroadband subscription numbers. In 2006 India witnessed a good surge in broadband users withthe total subscriber base in the country expanding by almost 200% to just over 2 million byyears end. Despite this surge, broadband penetration in India still remains around only 0.2%;broadband services still account for only 25% of the total Internet subscriber base, still in itselfcomparatively low.

The Ministry of Communications and Information Technology (MCIT) is has veryaggressive plans to increase the pace of growth, targeting 250 million telephone subscribers byend-2007 and 500 million by 2010. Most of the expansion in subscribers is set to occur in ruralIndia. Indias rural telephone density has been languishing at around 1.9%;

GSM and CDMA subscription numbers:

Year GSMSubscribers (millions)

GSMAnnualgrowth

CDMASubscribers (millions)

CDMAAnnualgrowth

2000 3.1 94% - -


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2001 5.05 76% - -

2002 10.5 91% 0.8 -

2003 22.0 110% 6.4 700%

2004 37.4 70% 10.9 70%

2005 58.5 57% 19.1 75%

2006 105.4 80% 44.2 131%2007 180.0 71% 85.0 92%

Achievements of National Telecom Policy 1994

Need for New Telecom Policy cropped up as a result of fast change in the overall Policy1994 and Need for New Telecom Policy cropped up since the Indian telecommunication sectorgrew very rapidly over the last decade and half. The meteoritic rise of the Indiantelecommunication industry enforced rapid amendment of the Indian telecommunication policyas drafted in the early 1990s. The 'Telecom Regulatory Authority of India' (TRAI) and'Department of Telecommunication' (DOT), the two main governing bodies of the Indian

telecommunication industry soon realized the need for an overall revamping of the Indiantelecommunication policy to The highlights of the basic telecommunication policy of India areas follows - compliment the rapid growth of this industry

To facilitate telecommunication for all

Ensuring quick availability of telephone connectivity

Achieve universal service access at affordable price covering all Indian villages, as earlyas possible

Providing world class telecommunication services Solving consumer complaints, resolve disputes, and special attention to be given to public

interface

To provide widest possible range of services at reasonable prices

To emerges as a major manufacturing base and major exporter of telecommunicationequipment

To protect the defense and security interests of the country

The tenth plan meets the need for new telecom policy of the Indian communication industry,which are as follows -

Creating world class telecommunication infrastructure to meet the communicationrequirements of IT, ITES, media and other IT based industry

Easy and affordable access to basic telecommunication services across all the states ofIndia


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Affordable and efficient basic telephony facility to each and every applicant

Provision for world class service to all uncovered and rural areas of India

Establishment of modern and efficient telecommunication infrastructure to meet therequirements of modern India

Continual upgradation of the Indian telecommunication sector and provide an equalopportunity for all the telecommunication service providers doing business in India

Strengthening R&D on telecommunication hardware and software

Efficient and unbiased spectrum management

Facilitating protection of the Indian defense and security systems

Facilitating the Indian telecommunication companies to reach global standards

Facilitate world class products and services at affordable prices

Institutionalize the Department Of Telecommunication (DOT), Government of India andhelp it function as a corporate body

To make telephone available within 48 hours of such demand To reach tele-density of 9.91 by the end of 31st March 2007 (which has been achieved)

Facilitate reliable communication relay media to all telephone exchanges

Provide high-speed data and multimedia connections using technologies like ISDN acrossall towns, having population strength of two lakh or more

The Achievements of National Telecom Policy 1994 and Need for New Telecom Policy initiatedthe following developments -

Friendly Government of India economic and telecommunication policies

Low operational cost

Availability of world class infrastructure at a much cheaper cost Availability of huge English speaking workforce

Prevalence of strong technical education amongst the majority of educated Indians

Large number of science and engineering graduates

Assurance of high quality output

Highly skilled workforce

Usage of innovative technologies

Effective and efficient entrepreneurship skills

Good client and service provider's relationships

Creation of global brands

Huge scope of business across all industries especially, in IT and ITES industries

Expansion of existing relationships

Ever growing domestic market, especially the rural market

Huge success in overseas markets

Increased electronics and hardware manufacturing in India


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Aggressive promotion of R&D in telecommunication

Increased penetration of computers

Increased utilization of Internet

Growth of domestic software market

Development of local language software, especially for the use in rural- India Use of Information Technology to increase productivity

Use of Information Technology as a means of generating employment

Increased number and quality of training facilities across India

Vision:

NEW DELHI: In May 2008, Bharti Airtel had come very close to taking over Africas largest

telecom provider MTN, but couldnt clinch a deal. Now,

as the world battles a deep recession, the Bharti brass must be pleased that the talks withMTN broke down. The global markets have crashed and MTNs market value has fallen 28%since then. MTN, which was also in talks with Reliance Communications, has a history of beingcourted by suitors but shying away from a deal.

Bharti has had lady luck smile on it before too, but its not by chance that Indias largesttelecom operator has been coursing through the economic slowdown without showing any signsof strain, posting strong profits and expanding its user base rapidly.

Bharti did it the hard way, through far-sighted strategy and sound execution, backed byits unmatched ability to innovate constantly and set industry benchmarks, the same way Sunil

Mittal, who started off making bicycle parts, built up the company from near-obscurity in 1995when it had launched its mobile services in Delhi and then went on to become the countrys toptelco, ahead of state-owned BSNL, Reliance Communications (RCOM) and Vodafone.

The benefits of the business model that we have put in place over the last few years arekicking in. We are reaping the benefits now, says Bharti Airtel CEO and joint MD ManojKohli. True, the Indian telecom industry mostly shrugged off the global downturn. But Bharti didit better than its peers. During October-December, its net profit jumped 25% y-o-y, while rivalRCOM managed only a 2.7% rise. And it increased its market share from 23.6% at the start of2008 to 24.7% by year end.

In the stock market also, Bharti outperformed industry peers. While its share price fell byabout 28% during the market meltdown, its primary competitors fared worse Ideas shareshave fallen 52% during the same period, while RCOMs fell by nearly 70% during the sameperiod. According to Mr Kohli, Bhartis current business model has been in the making since2004, when it stunned the telecom world by outsourcing network operations, IT and call centrefunctions. It was an audacious move then. Today, outsourcing is a standard practice in theindustry, in India and elsewhere. Bharti adopted the reverse outsourcing model where it gave outcontracts to global majors rather than go in for Indian companies to save on costs. Bhartibelieved that outsiders could manage its core functions better than they could ever do and


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outsourced its networks to Ericsson and Nokia Siemens, its IT functions to IBM and its callcentre operations to six leading BPOs, each of which are long-term multi-million dollar deals.Only to be copied by fascinated industry peers. Mr Kohli said, Bharti succeeded in anticipatingthe changes in the market and preparing for them. Bhartis principle to proactively look at thefuture has helped the company improve on its productivity and efficiency quarter after quarterand year after year, Mr Kohli added.

Its rural drive is an example. With urban markets showing signs of stagnation, expertspredict that rural India will be the new battleground for mobile market share. Ready for the task,Bharti recently launched a project to set up Airtel service centres in 4,00,000 villages across thecountry. In the last three months, it has set up 20,000 such outlets.

Mr Kohli said Bharti owes its success to its talent. The company is no longer dependenton a single person as we have built a leadership pipeline, he said.

The recent elevation of Sanjay Kapoor as deputy CEO is a case in point. Bharti has alsodecided to restructure its businesses into several new divisions under different CEOs. Thecompanys overall structure as such will not change as these new divisions will be under theexisting three verticals mobility, telemedia (DTH, broadband & fixed lines) and enterprise

which oversees the undersea cable business, national and international long-distance services andalso services large companies.

Bharti has identified mobile commerce, entertainment, media, internet, enterpriseservices and small and medium businesses, among others to boost its non-voice services, whichaccount for just about 10% of its mobile revenues. It has also developed a $100-million servicedevelopment platform in a tie-up with IBM for companies to develop and offer applications toAirtel customers across mobile, landline, broadband and DTH service.

Bharti has also roped in global experts like Joachim Horn, who was the chief technologyofficer of German communications major T-Mobile. Just prior to that, the telco had recentlyroped in B Srikanth from Unilever UK as its CFO and Shireesh Joshi from beverages and chipsmaker PepsiCo China to be its chief marketing head.

Analysts believe this shows the company is aiming for a big-ticket acquisition in theglobal market. Bharti is looking for seasoned hands who can handle the complexity of businessnot just within India, where the companys achieved a near global scale, but also in the globalmarket, said BK Syngal, former CMD of Videsh Sanchar Nigam and senior principal at DuaConsulting.

Telecom Policy Environment:

Indian telecommunications today benefits from among the most enlightened regulation inthe region, and arguably in the world. The sector, sometimes considered the poster-boy foreconomic reforms, has been among the chief beneficiaries of the post-1991 liberalization.Unlike electricity, for example, where reforms have been stalled, telecommunications hasgenerally been seen as removed from mass concerns, and thus less subject to electoralcalculations. Marketoriented reforms have also been facilitated by lobbying from Indiasbooming technology sector, whose continued success of course depends on the quality of


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communications infrastructure. Despite several hiccups along the way, the TelecomRegulatory Authority of India (TRAI), the independent regulator, has earned a reputation fortransparency and competence. With the recent resolution of a major dispute between cellular andfixed operators (see below), Indian telecommunications, already among the most competitivemarkets in the world, appears set to continue growing rapidly. While telecom liberalization isusually associated with the post-1991 era, the seeds of reform were actually planted in the1980s. At that time, Rajiv Gandhi proclaimed his intention of leading India into the21stcentury, and carved the Department of Telecommunications (DOT) out of the Departmentof Posts and Telegraph. For a time he also even considered corporatizing the DOT, beforesuccumbing to union pressure. In a compromise, Gandhi created two DOT-owned corporations:Mahanagar Telephone Nigam Limited (MTNL), to serve Delhi and Bombay, and VideshSanchar Nigam Limited (VSNL), to operate international telecom services. He also introducedprivate capital into the manufacturing of telecommunications

equipment, which had previously been a DOT monopoly. These and other reforms werelimited by the unstable coalition politics of the late 1980s. It was not until the early 1990s,when the political situation stabilized, and with the general momentum for economic reforms,that telecommunications liberalization really took off. In 1994, the government released itsNational Telecommunications Policy (NTP-94), which allowed private fixed operators to takepart in the Indian market for the first time (cellular operators had been allowed into the fourlargest metropolitan centers in 1992). Under the governments new policy, India was dividedinto 20 circles roughly corresponding to state boundaries, each of which would contain twofixed operators (including the incumbent), and two mobile

operators:

As ground-breaking as NTP-94 was, its implementation was unfortunately marred byregulatory uncertainty and over-bidding. A number of operators were unable to live up to theirprofligate bids and, confronted with far less lucrative networks than they had supposed, pulled

out of the country. As a result, competition in Indias telecom sector did not really become areality until 1999. At that time the governments New Telecommunications Policy (NTP-99)switched from a fixed fee license to a revenuesharing regime of approximately 15%. This figurehas subsequently been lowered (to 10%-12%), and is expected to be reduced even further overthe coming years. Still, India continues to derive substantial revenue from license fees ($800million in 2001-2002), leading some critics to suggest that the government has abrogated itsresponsibilities as a regulator to those as a seller. Another, perhaps even more significant,problem with Indias initial attempts to introduce competition was the lack of regulatory clarity.Private operators complained that the licensor the DOT was also the incumbent operator.The many stringent conditions attached to licenses were thus seen by many as the DOTsattempt to limit competition. It was in response to such concerns that the government in 1997set up the Telecom Regulatory Authority of India (TRAI), the nations first independenttelecom regulator. Over the years, TRAI has earned a growing reputation for independence,transparency and an increasing level of competence. Early on, however, the regulator wasbeleaguered on all fronts. It had to contend with political interference, the incumbents manychallenges to its authority, and accusations of ineptitude by private players. Throughout the late1990s, TRAIs authority was steadily whittled away in a number of cases, when the courtsrepeatedly held that regulatory power


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lay with the central government. It was not until 2000, with the passing of the TRAIAmendment Act, that the regulatory body really came into its own. Coming just a year afterNTP-99, the act marks something of a watershed moment in the history of India telecomliberalization. It set the stage for several key events that have enabled the vigorous competitionwitnessed today. Some of these events include:

The corporatization of the DOT and the creation of a new state-owned telecom company,Bharat Sanchar Nigam Ltd (BSNL), in 2000;

The opening up of Indias internal long-distance market in 2000, and the subsequent drop inlong-distance rates as part of TRAIs tariff rebalancing exercise;

The termination of VSNLs monopoly over international traffic in 2002, and the partialprivatization of the company that same year, with the Tata group assuming a 25% stake andmanagement control;

The gradual easing of the original duopoly licensing policy, allowing a greater number ofoperators in each circle;

The legalization, in 2002, of IP telephony (a move that many believe was held up due to

lobbying by VSNL, which feared the consequences on its international monopoly);The introduction in 2003 of a Calling Party Pays (CPP) system for cell phones, despite

considerable opposition (including litigation) by fixed operators;

And, more generally, the commencement of more stringent interconnection regulation byTRAI, which has moved from an interoperator negotiations-based approach (often used bythe stronger operator to negotiate ad infinitum) to a more rules-based approach. All of theseevents have created an impressive forward-momentum in Indian telecommunications, resultingin a vigorously competitive and fast-growing sector. India has also suffered from its fair shareof regulatory hiccups. Many operators (mobile players in particular) still complain about thedifficulties of gaining access to the incumbents (BSNL) network, and the governmentsinsistence on capping FDI in the telecom sector to 49% (a move made in the name of national

security) limits capital availability and thus network rollout. In addition, ISPs, who wereallowed into the market under a liberal licensing regime in 1998, continue to hemorrhagemoney, and have been pleading with the government for various forms of relief, including.

the provision of unmetered phone numbers for Internet access. Despite initiallyimpressive results, the growth of Internet in the country has recently stalled, with only 8 millionusers. Broadband penetration, too, remains tiny. Unified Licensing

But perhaps the biggest and, until recently, most intractable regulatory problem hasbeen the drawn-out battle over limited mobility telephony. This imbroglio began in 1999,when MTNL sought permission from TRAI to provide CDMA-based WLL services withlimited mobility. GSM cellular operators were soon up in arms, arguing that limitedmobility was simply a backdoor entry into their business. Moreover, fixed operators had paidlower license and spectrum fees than cellular ones; were not required to pay access charges forcell-to-fixed calls (unlike their cellular counterparts); and, amidst accusations of cross-subsidization, were charging considerably lower rates than the cellular operators. The resultingconflict dragged on in the courts and in the political arena for years. Fixed operators includingnew entrants Reliance and Tata Teleservices claimed that they were being prevented fromproviding a cheap service that would drive penetration and be of benefit to the common man;cellular players bitterly opposed what they perceived as unequal regulatory treatment for twokinds of operators who were in fact offering the same service. The real victim, of course, was


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the Indian telecommunications market, which suffered from investor perceptions of regulatoryconfusion and operator in-fighting. In late 2002, for example, thousands of mobile users in NewDelhi were for a time cut off from the fixed-line network when MTNL shut downinterconnection for cellular companies. (MTNL later attributed the incident to a technicalsnag.)

It was not until late 2003 that the issue was finally resolved, under considerablegovernment pressure, when cellular operators agreed to withdraw their many cases against thefixed-line operators. Fixed operators would in effect be allowed to enter the mobile business; inreturn, the government granted cellular players several concessions, including lower revenue-share arrangements estimated to total over $210 million. Perhaps most notably, the governmentannounced its intention to adopt a unified access licensing regime, which would in the futureprovide a single, technology-neutral license for fixed and cellular operators. The hope is thatthis new license category will prevent a repeat of the recent controversy, and allow newtechnologies to enter the Indian market without requiring a wholesale rewrite of licensing laws.

MAJOR MARKET TRENDS:

The telecoms trends in India will have a great impact on everything from the humble PC,internet, broadband (both wireless and fixed), cable, handset features, talking SMS, IPTV, softswitches, and managed services to the local manufacturing and supply chain. This reportdiscusses key trends in the Indian telecom industry, their drivers and the major impacts of suchtrends affecting mobile operators, infrastructure and handset vendors.

Higher acceptance for wireless services:

Indian customers are embracing mobile technology in a big way (an average of fourmillion subscribers added every month for the past six months itself). They prefer wirelessservices compared to wire-line services, which is evident from the fact that while the wirelesssubscriber base has increased at 75 percent CAGR from 2001 to 2006, the wire-line subscriber

base growth rate is negligible during the same period. In fact, many customers are returningtheir wire-line phones to their service providers as mobile provides a more attractive andcompetitive solution. The main drivers for this trend are quick service delivery for mobileconnections, affordable pricing plans in the form of pre-paid cards and increased purchasingpower among the 18 to 40 years age group as well as sizeable middle class a prime market forthis service.

Some of the positive impacts of this trend are as follows. According to a study, 18percent of mobile users are willing to change their handsets every year to newer models withmore features, which is good news for the handset vendors. The other impact is that while theoperators have only limited options to generate additional revenues through value-addedservices from wire-line services, the mobile operators have numerous options to generate non-

voice revenues from their customers. Some examples of value-added services are ring tonesdownload, coloured ring back tones, talking SMS, mobisodes (a brief video programme episodedesigned for mobile phone viewing) etc. Moreover, there exists great opportunity for contentdevelopers to develop applications suitable for mobile users like mobile gaming,

location based services etc. On the negative side, there is an increased threat of virus spread through mobile data connections and Bluetooth technology in mobile phones, makingthem unusable at times. This is good news for anti-virus solution providers, who will gain fromthis trend.


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MERGERS:

Demand for new spectrum as the industry grows and the fact the spectrum allocation indone on the basis of number of subscribers will force companies to merge so as to claim largenumber of subscribers to gain more spectrum as a precursor to the launch of larger andexpanded services. However it must also be noted that this may very well never happen onaccount of low telecom penetration.

NEW CIRCLES:

As mentioned earlier there is a significant number of tier-2 and tier 3 cities that canaccommodate more players we expect aggressive response by the companies to suchopportunities as and when they are created.

Constraints:* Slow pace of the reform process .

* It would be difficult to make in-roads into the semi-rural and rural areas because of the lack ofinfrastructure. The service providers have to incur a huge initial fixed cost to make inroads intothis market. Achieving break-even under these circumstances may prove to be difficult.

* The sector requires players with huge financial resources due to the above mentionedconstraint. Upfront entry fees and bank guarantees represent a sizeable share of initialinvestments. While the criteria are important, it tends to support the existing big and olderplayers. Financing these requirements require a little more liberal approach from the policyside.

* Problem of limited spectrum availability and the issue of interconnection charges between theprivate and state operators.

Major Players :

There are three types of players in telecom services:

-State owned companies (BSNL and MTNL)

-Private Indian owned companies (Reliance Infocomm, Tata Teleservices,)


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-Foreign invested companies (Hutchison-Essar, Bharti Tele-Ventures, Escotel, Idea Cellular,BPL Mobile, Spice Communications)

BSNL:

On October 1, 2000 the Department of Telecom Operations, Government of Indiabecame a corporation and was renamed Bharat Sanchar Nigam Limited (BSNL). BSNL is now

Indias leading telecommunications company and the largest public sector undertaking. It has anetwork of over 45 million lines covering 5000 towns with over 35 million telephoneconnections.

The state-controlled BSNL operates basic, cellular (GSM and CDMA) mobile, Internetand long distance services throughout India (except Delhi and Mumbai). BSNL will beexpanding the network in line with the Tenth Five-Year Plan (1992-97). The aim is to provide atelephone density of 9.9 per hundred by March 2007. BSNL, which became the third operatorof GSM mobile services in most circles, is now planning to overtake Bharti to become thelargest GSM operator in the country. BSNL is also the largest operator in the Internet market,with a share of 21 per cent of the entire subscriber base

BHARTI:

Established in 1985, Bharti has been a pioneering force in the telecom sector with manyfirsts and innovations to its credit, ranging from being the first mobile service in Delhi, first private basic telephone service provider in the country, first Indian company to providecomprehensive telecom services outside India in Seychelles and first private sector serviceprovider to launch National Long Distance Services in India. Bharti Tele-Ventures Limited wasincorporated on July 7, 1995 for promoting investments in telecommunications services. Itssubsidiaries operate telecom services across India. Bhartis operations are broadly handled bytwo companies: the Mobility group, which handles the mobile services in 16 circles out of atotal 23 circles across the country; and the Infotel group, which handles the NLD, ILD, fixedline, broadband, data, and satellite-based services. Together they have so far deployed around23,000 km of optical fiber cables across the country, coupled with approximately 1,500 nodes,

and presence in around 200 locations. The group has a total customer base of 6.45 million, ofwhich 5.86 million are mobile and 588,000 fixed line customers, as of January 31, 2004. Inmobile, Bhartis footprint extends across 15 circles. Bharti Tele-Ventures' strategic objective isto capitalize on the growth opportunities the company believes are available in the Indiantelecommunications market and consolidate its position to be the leading integrated.

MTNL:

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


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telecom development needs of Indias key metros Delhi, the political capital, and Mumbai,the business capital. In the past 17 years, the company has taken rapid strides to emerge asIndias leading and one of Asias largest telecom operating companies. The company has alsobeen in the forefront of technology induction by converting 100% of its telephone exchangenetwork into the state-of-the-art digital mode. The Govt. of India currently holds 56.25% stakein the company. In the year 2003-04, the company's focus would be not only consolidating thegains but also to focus on new areas of enterprise such as joint ventures for projects outsideIndia, entering into national long distance operation, widening the cellular and CDMA-basedWLL customer base, setting up internet and allied services on an all India basis. MTNL hasover 5 million subscribers and 329,374 mobile subscribers. While the market for fixed wirelinephones is stagnating, MTNL faces intense competition from the private playersBharti,Hutchison and Idea Cellular, Reliance Infocommin mobile services. MTNL recorded sales ofRs. 60.2 billion ($1.38 billion) in the year 2002-03, a decline of 5.8 per cent over the previousyears annual turnover of Rs.63.92 billion.

RELIANCE INFOCOMM:

Reliance is a $16 billion integrated oil exploration to refinery to power and textiles

conglomerate. It is also an integrated telecom service provider with licenses for mobile, fixed,domestic long distance and international services. Reliance Infocomm offers a complete rangeof telecom services, covering mobile and fixed line telephony including broadband, nationaland international long distance services, data services and a wide range of value added servicesand applications. Reliance IndiaMobile, the first of Infocomm's initiatives was launched onDecember 28, 2002. This marked the beginning of Reliance's vision of ushering in a digitalrevolution in India by becoming a major catalyst in improving quality of life and changing theface of India. Reliance Infocomm plans to extend its efforts beyond the traditional value chainto develop and deploy telecom solutions for India's farmers, businesses, hospitals, governmentand public sector organizations. Until recently, Reliance was permitted to provide only limitedmobility services through its basic services license. However, it has now acquired a unifiedaccess license for 18 circles that permits it to provide the full range of mobile services. It has

rolled out its CDMA mobile network and enrolled more than 6 million subscribers in one yearto become the countrys largest mobile operator. It now wants to increase its market share andhas recently launched pre-paid services. Having captured the voice market, it intends to attackthe broadband market.

TATA TELESERVICES:

Tata Teleservices is a part of the $12 billion Tata Group, which has 93 companies, over200,000 employees and more than 2.3 million shareholders. Tata Teleservices provides basic(fixed line services), using CDMA technology in six circles: Maharashtra (including Mumbai), New Delhi, Andhra Pradesh, Tamil Nadu, Gujarat, and Karnataka. It has over 800,000subscribers. It has now migrated to unified access licenses, by paying a Rs. 5.45 billion ($120million) fee, which enables it to provide fully mobile services as well.

The company is also expanding its footprint, and has paid Rs. 4.17 billion ($90 million)to DoT for 11 new licenses under the IUC (interconnect usage charges) regime. The newlicenses, coupled with the six circles in which it already operates, virtually gives the CDMAmobile operator a national footprint that is almost on par with BSNL and Reliance Infocomm.The company hopes to start off services in these 11 new circles by August 2004. These circlesinclude Bihar, Haryana, Himachal Pradesh, Kerala, Kota, Orissa, Punjab, Rajasthan, UttarPradesh (East) & West and West Bengal.


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VSNL:

On April 1, 1986, the Videsh Sanchar Nigam Limited (VSNL) - a wholly Governmentowned corporation - was born as successor to OCS. The company operates a network of earthstations, switches, submarine cable systems, and value added service nodes to provide a rangeof basic and value added services and has a dedicated work force of about 2000 employees.

VSNL's main gateway centers are located at Mumbai, New Delhi, Kolkata and Chennai. Theinternational telecommunication circuits are derived via Intelsat and Inmarsat satellites andwide band submarine cable systems e.g. FLAG, SEA-ME-WE-2 and SEA-ME-WE-3.

The company's ADRs are listed on the New York Stock Exchange and its shares arelisted on major Stock Exchanges in India. The Indian Government owns approximately 26 percent equity, M/s Panatone Finvest Limited as investing vehicle of Tata Group owns 45 per centequity and the overseas holding (inclusive of FIIs, ADRs, Foreign Banks) is approximately 13per cent and the rest is owned by Indian institutions and the public. The company providesinternational and Internet services as well as a host of value-added services. Its revenues havedeclined from Rs. 70.89 billion ($1.62 billion) in 2001-02 to Rs. 48.12 billion ($1.1 billion) in2002-03, with voice revenues being the mainstay. To reverse the falling revenue trend, VSNL

has also started offering domestic long distance services and is launching broadband services.For this, the company is investing in Tata Telservices and is likely toacquire Tata Broadband.

HUTCH:

Hutchs presence in India dates back to late 1992, when they worked with local partnersto establish a company licensed to provide mobile telecommunications services in Mumbai.Commercial operations began in November 1995. Between 2000 and March 2004, Hutchacquired further operator equity interests or operating licences. With the completion of theacquisition of BPL Mobile Cellular Limited in January 2006, it now provides mobile services in16 of the 23 defined licence areas across the country. Hutch India has benefited from rapid andprofitable growth in recent years. it had over 17.5 million customers by the end of June 2006.

IDEA:

Indian regional operator IDEA Cellular Ltd. has a new ownership structure and granddesigns to become a national player, but in doing so is likely to become a thorn in the side ofReliance Communications Ltd. IDEA operates in eight telecom circles, or regions, inWestern India, and has received additional GSM licenses to expand its network into threecircles in Eastern India -- the first phase of a major expansion plan that it intends to fundthrough an IPO, according to parent company Aditya BirlaGroup .


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TOP TEN PLAYERS IN INDIA:

The telecom industry of India has registered manifold growth in the recentyears.Personalized telecom access is essential necessity of life for increasing number of thepeople. The sector offers unlimited prospects when we consider future growth. Both PublicPlayers and Private Players are enhancing their technologies and taking the telecom industry to amuch higher growth state. Not only service providers but also handset manufacturers arecontributing significantly to the industry and economy of India.

1) Reliance Communications Limited

2) Bharti Airtel Limited

3) BSNL

4) MTNL

5) Hutchison Essar

6) Ericsson

7) Nokia

8) Siemens Communications

9) Idea Cellular Limited

10) Tata Teleservice

Telecom Industry In A.P:

Land line numbers are 8 digits long, and GSM / CDMA cellular operators are 10 digits. Landlineoperators

Bharat Sanchar Nigam Limited (BSNL): The oldest operator in the telephone business. BSNLphone numbers start with the prefix '2'. (27, 23)

Tata Indicom: Formerly Tata Teleservices. Numbers start with '6'.


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Reliance Infocomm: Reliance Infocomm is part of the Reliance - Anil Dhirubhai AmbaniGroup. Numbers start with 3.

Airtel: Newest of the landline operators. Airtel numbers start with 4.

GSM operators:

Airtel: Airtel is the largest GSM operator. Airtel is the most prominent of all the GSM networksin tamilnadu. Airtel is owned by Bharti Group. Airtel numbers start with '9849', '9866', '9949','9989', '9959'.

Hutch: Hutchisson Essar group owned Hutch has a pretty good user base because of the manyattractive packages it offers. Hutch numbers start with '9885' or '9985' or '9966'

IDEA: Idea Cellular Limited is part of Birla [previously TATA & AT&T were also partners]Limited. IDEA numbers start with 9848, '9948', '9912'.

Cellone: BSNL's mobile arm Cellone has a very good rural and suburban user base. Pre-paidcards are sold as Excel. BSNL numbers start with '9440' or '9441'.

Reliance GSM : Introduced in jan 2009,3g ready network and very good innovative offers

Aircel: Already a prominent operator in tamilnadu enters ap.3G ready network and good offers.TATA DOCOMO: India's one of the leading CDMA operator Tata teleservices Ltd.,(TTSL) inassociation with Japan's leading gsm operator NTT DOCOMO Launched its operations inAndhrapradesh on July 16, 2009.

CDMA operators

CDMA make use of wireless local loop.

Reliance Infocomm: Numbers start with '93' and are 10 digits long.

Tata Indicom: Tata Indicom, like Reliance also offers CDMA connections. Tata now hasoperations on a national scale. Numbers start with '924','929.

Tata (by the name Walky) and Reliance (by the name Fixed Wireless Phone) alsooffer a landline hybrid phone. The phone is like a normal instrument, but instead of the phonecable it has an antenna which connects to the network like any mobile phone. Internet connectionalso is possible though this via dialup and using broadband. The call rates are also comparable tolandline rates.

Telecom industry-Growth I N A.P :

1998 Nov 24, 1998 - Satyam Infoway is one of the first companies in India to havereceived the category 'A' license from the Department of Telecommunications to ... Vajpayee

complimented the Andhra Pradesh government for uniquely combining the strength of thegovernment and the IT industry for setting up ...

1999 Mar 11, 1999 - The move has thrown the telecom industry into confusion on futurebusiness projections and the status of its regulator vis-a-vis the government. ... The High Courtordered Tata Teleservices, the licence holder for Andhra Pradesh basic telecom circle, to payabout Rs 24 crore (20 per ...

2000 May 21, 2000 - Consolidation through mergers and acquisitions (M&A) willbecome inevitable just as they have been in the telecom industry globally. ... The Tatas and Birla


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AT&T have come together for a joint venture in Andhra Pradesh. AT&T may establish anotherdirect presence in India when it takes ...

2001 Jul 15, 2001 - Out of its two circles, Karnataka contributed 57.1 percent and AndhraPradesh contributed 42.9 percent of revenue. ... In Andhra Pradesh, it is aggressively marketingits prepaid card Magic, which it launched in June 2000 and wants to make it its growth

vehicle. ...2002 Jul 1, 2002 - ... ... well as rental value, however, with a few industry segments

spurring fresh activity which include telecom companies, insurance and retail businesses. ...And not to be left behind and to latch on to the emerging business opportunity, the State-ownedAndhra Pradesh Housing Board, ...

2003 Feb 1, 2003 - In effect, the inequality in incomes, characteristic of Indian society, ismirrored in the operations of the industry. ... The six private operators - Bharti in MadhyaPradesh, Tata Teleservices in Andhra Pradesh, Hughes Telecom in Maharashtra, ShyamTelelink, HFCL Infotel in Punjab ...

2004 Oct 4, 2004 - Srinivasahalli, who joined Airtel's Andhra Pradesh circle as the chiefoperating officer, was heading Hindustan Lever's Project Vindhya and Singh joined the telecomcompany's Kerala operations after leading Hindustan Lever's tea and coffee vending business.According to industry ...

2005 Apr 28, 2005 - After the central government declared the telecom policy in 1999,investments started flowing into the Indian telecom industry and the operators started ... Thecompany has to its credit the feat of setting up one of the largest shelters in India on a 2000 feethill in Andhra Pradesh.

2006 May 17, 2006 - With as much as 73 per cent of the population still concentrated inthe rural areas of Andhra Pradesh, Reliance was making easy inroads, thanks to the faith reposedin it by customers, he claimed. One important reason for this was that unlike other telecom

companies which had one ...

2008 Aug 31, 2008 - What's more, telcos have been pumping money into the industry tomeet the growing demand of the expanding telecom industry. According to reports, telecomcompanies ... Spectrum has already been allotted in six circles Tamil Nadu, Chennai,Karnataka, Kerala, Andhra Pradesh and Orissa. ...


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Comparative balance sheet :

Introduction :

comparative balancesheet helps you to compare the financial position (statement of assets& liabilities)of an organization as it stands at the end of a period. generally such a period is ayear, half yearly or quaterly.

you can compare the balancesheets of an org. for different periods or balancesheet ofdifferent org. within an industry.

Cash flow statement is very important. though an org. may b interested in profits, it iscash profits which one is real interested in. cash flow statement shows the sources of reciept andpayment in basic terms.

In india a company has to prepare cash flow, if it is listed in an stock exchange. i guess

similar is the position as sarbenes oxley in US. one of two or more financial statements preparedon different dates that lend themselves to a comparative analysis of the financial condition of anorganization

A comparative balance sheet is designed to show financial differences between severalaccounting periods. A balance sheet is a detailed account of everything lost and gainedfinancially during a certain time, containing both physical and abstract data. A comparativebalance sheet is useful because a business can instantly compare profits and losses betweendifferent time periods. Most businesses use comparative balance sheets to help increase profitsand functionality of a company

Features:

A comparative balance sheet will include several different types of accounting data. Firstthere will be the income received and money spent. There will also be a list of credits and debitsto the company. A list of assets and liabilities is also included. All of these factors are necessaryto see what the total worth of the company is through the balance sheet. The comparative balancesheet allows the company or business to see at a glance how its profits differ from one year toanother. These comparative balance sheets are aligned so that business people can see at a glancethe financial differences from year to year.

Function:

A balance sheet is designed to help keep a business or company aware of every expenseand profit that it is receiving. It also allows the company to see which times of the year are mostprofitable, and which years they did the best. This knowledge is important so that the company

can adapt to the information to build the best business possible. If the business did better threeyears ago, they can look at that data and try to decide what it was that made them do so well thatyear. Then they can change what they are doing in the present to help boost current profits.

Benefits:

The main benefit of a comparative balance sheet is that profits and losses can be seen at aglance. It is also possible to see the increase or decrease of assets that the business has. The


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company will be able to tell what the biggest money suckers in the business are, and try to thinkof ways to cut down losses in that area.

Significance:

Without a comparative balance sheet, businesses would not know how to change theirstrategy from year to year. All they would have to go on would their current balance statements.

This would be detrimental to most businesses. It is very important to be able to look at past profitinformation to judge how to act for the future.

Expert Insight:

Most businesses and companies use comparative balance sheets. It would be a very poorbusiness decision not to use them. A lot of times these comparative balance sheets are used whenproposing new additions or changes to a business. The company can go back as many as 10 or 20years to identify trends, and to judge if a new project is right for the company. Comparativebalance sheets are a necessity in the business world.

This comparative balance sheet serves as a financial comparison from year to year.Prepare this analysis at least once a year to see what kinds of trends are developing. Your future

financial security could very well depend on how well you grow and maximize your net worth.Percentage totals may...

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Tools & templates 2007-09-01

Strayer Education Inc. NASDAQ: STRA Consolidated Balance Sheet For FirstQuarter Ended March 31, 1998

WASHINGTON--BUSINESS WIRE--May 1, 1998--Strayer Education Inc. (NASDAQ:STRA)Friday released a comparative balance sheet for first quarter, ended March 31, 1998. The balancesheet supplements first quarter earnings released earlier this week.-0- CONDENSED

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Avocent Corporation Q1 2008 Earnings Call Transcript

Question-and-Answer SessionOperator Operator Instructions Well go first to MarkKelleher with Canaccord Adams. Mark Kelleher- Cannacord Adams Hi Guys. Very nice quarter.

A couple of numbers questions. What was the cash flow from operations in the quarter? TeddyBlankenship ... ?

In the world of MDC Partners CEO Miles Nadal, everything only seems to go up. In hislast conference call with investors, he predicted MDC's revenues will rise in 2009 by 1-3 percentand profits will grow 3-6 percent. Could happen. But there's another growing thing on...


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Comparative balance sheets of BSNL company:

particulars 2008Previous year

2009Current year

absolnt %of different

Assets

Current assets

Inventories 242847 322006 79159 32.5962

Sundry debtors 558066 546551 -11515 -2.0633Cash &bank balance 3745279 4055158 309862 8.2733Other current assets 114148 137687 23539 20.6214Loans advances 714431 744441 30010 4.2005Total current assets 5374788 5805843 431055 8.0199

Fixed assets

Gross block 11864901 12457823 592922 4.9972(-)depreciation 6071511 6987974 916463 15.0944Net block 5793390 5469849 -323541 -5.5846Capital workingprogress

256860 266562 9702 3.7771

Decommissionedassets

64443 389 -6055 -93.9633

Invest ments 20000 20000 - -Total fixed assets 6076694 5756800 -319894 -5.2816

Liabilities&capital

Currentliabilities&provisions

Current liabilities 1667919 1739788 71869 4.3089


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provisions 514858 606321 91463 17.7647Total currentliabilities

2346109 2182777 -163332 -6.9618

Long term liabilities

Un secured loans 554366 338887 -215479 -38.8694

Deffered tax liabilities 124605 131053 6448 5.1747Total long termliabilities

678971 469940 209031 -33.6947

Capital &reserves

Capital 1250000 1250000 - -Reserve&sur plus 7444802 7562825 118023 1.5853Totalcapital&reserve

8694802 8812825 118023 1.5853

Interpretation:

The above table indicates the 2008&2009 comparative balance sheet of the BSNL. The BSNL company current assets are increased by comparison of the 2008&2009. The BSNL company fixed assets are decreased and investments are same. The BSNL company current liabilities are increased because the company liabilities

provisions are increased.

The BSNL loan funds are decreased. And the sources of funds are increased. Finally the company capital is no chaing.


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Comparative balance sheet of the airtel company:

Particulars 2008previousyear

2009Currentyear

Absolute %of different

Assets

Current assets

Current Assets, loansadvances

8439.38 10466.63 2027.25 24.0213

Miscellaneaexpenecess 0.20 0.09 -0.11 -55

Total 8439.58 10466.63 2027.14 30.9787Fixed assets

Gross block 28115.65 37266.70 9151.05 32.5478(-)revaluation reserve 2.13 2.13 _ _ (-)accumulateddepreciation

9085.00 12253.34 3168.34 34.8744

Net block 19025.52 25011.23 5982.71 31.4407Capital workingprogress

2751.08 2566.67 -184.41 -6.7031

Invest ments 10952.85 11777.76 824.91 7.5314Total 699935.23 88877.83 18942.6 2.7063Liabilities&capital

Currentliabilities&provisions

14362.33 14466.89 104.56 0.7280

Long term libilities

Secured loans 52.42 51.73 -0.69 -1.3162Un secured loans 6517.92 7661.92 1144 17.5516


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total 6570.34 7713.65 11439.31 0.2354Source of funds

Owners fundsEquity capital 1897.91 1898.24 0.33 0.0173Share application

money

57.63 116.22 58.59 101.66

Preference capital _ _ _ _ Reserves&surpluse 18283.82 28627.38 7343.56 40.1642total 20239.36 30641.84 10402.48 51.3981Notes

Book value of unquotedinvestments

379.62 9898.56 518.94 5.532

Marketed value ofinvestment

1574.29 1887.76 313.47 19.91

Contingent liabilities 7140.59 18982.40 -3036.34 -42.5222

Interpretation: The above table indicates the 2008&2009comparitive balance sheets of the airtel. The airtel company current assets are increased comparing between 2008&2009. And the airtel company fixed assets are increased. The airtel company current liabilities are increased so the company financial

passion is not good. The airtel company long term liabilities are also increased. And the airtel company source of fund s are also increased.


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Findings&suggessions:

Findings :Findings of the BSNL company:

the BSNL company current assets are increased because the company because thecompany cash&bank balances ,and sundry debtors .

the BSNL company fixed assets are decrease because the company net block isdecreased comparing between 2008&2009and the company accumulateddepreciation is also increased.

And the BSNL company current liabilities are increased because the company thecompany current liabilities and provisions are increased.

The company loan funds are also decreased because the company un secured loans

are decreased -38%. The BSNL company source of funds are also increased because the company

reserves&surpluse are increased .

Findings of the airtel company: the airtel company current assets are increased . the airtel company fixed assets are increased because the company the company

fixed assets are increased yearly and the company working in progrease isdecreased comparing between 2008&2009.

The airtel company current liabilities are increased because the company short

term liabilities and provisions are increased comparing between 2008&2009. And the company long term loans are increased but the company secured loans are

decreased and un secured loans are increased. The airtel company source of funds are increased because the company equity

capital,share application money and reserves&surplues are increased comparingbetween 2008&2009.


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SuggestionsSuggestions of the BSNL company:

The BSNL company current assets are increased comparing between 2008&2009its good so the company try to increase the current assets.

The BSNL company fixed assets are decrease because the company fixed assets arehave the high depreciation so the company try to decrease the depreciation of fixedassets.

The BSNL company current liabilities are increased because the company currentliabilities&provisions are increased thetsfy the company decreased the provisionsand short term liabilities.

The BSNL company loan funds are decreased but the company try to decreased the

loan funds. And the company source of funds are also decreased and try to follow this

decrease. The company capital does not chaig so the company try to increase the capital of

the company.

Suggestions of the airtel company:

The airtel company current assets are increased but the company miscellaneousexpenses are very decreased so the company try to increase the companymiscellaneous expenses.

The company fixed assets are increased but the company try to increase thecompany fixed assets of the company.

The company current liabilities are increased because the company try to decreasethe company short term liabilities and provisions also.

The airtel company loan funds are increased but the secured loans are decreased butthe company try to decrease the un secured loans.

The company source of funds are increased so the company try to decrease thesource of funds.


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two wheeler industry-india

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